Filed by The PNC Financial Services Group, Inc.
Pursuant to Rule 425 under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934

Subject Company: Mercantile Bankshares Corporation
Commission File No. 0-5127

     On October 31, 2006, The PNC Financial Services Group, Inc. ("PNC") issued a press release and supplementary financial information announcing its earnings and business for the quarter ended September 30, 2006, and presentation materials from an accompanying presentation to investors.

     PNC subsequently amended page 10 of the original supplementary financial information. Attached is a copy of the complete supplementary financial information, as amended.

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT THIRD QUARTER 2006 UNAUDITED

AS AMENDED NOVEMBER 8, 2006

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The information contained in this Financial Supplement is preliminary, unaudited and based on data available at October 31, 2006. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our SEC filings.

BlackRock/MLIM Transaction
As further described in our Current Reports on Form 8-K dated February 15, 2006 and September 29, 2006, BlackRock, Inc. ("BlackRock"), formerly a majority-owned subsidiary of The PNC Financial Services Group, Inc., and Merrill Lynch entered into a definitive agreement pursuant to which Merrill Lynch agreed to contribute its investment management business ("MLIM") to BlackRock in exchange for 65 million shares of newly issued BlackRock common and preferred stock.

This transaction closed on September 29, 2006. For all quarterly periods presented in this Financial Supplement, our Consolidated Income Statement reflects our former majority ownership interest in BlackRock. However, our Consolidated Balance Sheet as of September 30, 2006 reflects the deconsolidation of BlackRock's balance sheet amounts and recognizes our 34% ownership interest in BlackRock as of that date as an investment to be accounted for under the equity method on a prospective basis.

Market Street
As disclosed in our 2005 Annual Report on Form 10-K, in October 2005 Market Street Funding ("Market Street"), a multi-seller asset-backed commercial paper conduit owned by an independent third party and administered by PNC Bank, N.A., was restructured. As a result, Market Street was deconsolidated from our Consolidated Balance Sheet effective October 17, 2005. This deconsolidation is reflected in the information contained in this Financial Supplement. We had previously consolidated Market Street under the provisions of FIN 46R effective July 1, 2003.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 2
Consolidated Balance Sheet (Unaudited)
		September 30		June 30		March 31		December 31		September 30
In millions, except par value		2006		2006		2006		2005		2005
Assets
Cash and due from banks		$3,018		$3,438		$3,206		$3,518		$3,474
Federal funds sold and resale agreements		2,818		675		511		350		907
Other short-term investments, including trading securities		2,718		2,005		2,641		2,543		2,553
Loans held for sale		4,317		2,165		2,266		2,449		2,377
Securities available for sale and held to maturity		19,512		21,724		21,529		20,710		20,658
Loans, net of unearned income of $815, $828, $832,
$835, and $856		48,900		50,548		49,521		49,101		50,510
Allowance for loan and lease losses		(566)		(611)		(597)		(596)		(634)
Net loans		48,334		49,937		48,924		48,505		49,876
Goodwill		3,418		3,636		3,638		3,619		3,470
Other intangible assets		590		862		844		847		755
Investment in BlackRock		3,836
Other		9,875		10,472		9,698		9,413		9,171
Total assets		$98,436		$94,914		$93,257		$91,954		$93,241
Liabilities
Deposits
Noninterest-bearing		$14,840		$14,434		$14,250		$14,988		$14,099
Interest-bearing		49,732		49,059		46,649		45,287		46,115
Total deposits		64,572		63,493		60,899		60,275		60,214
Borrowed funds
Federal funds purchased		3,475		3,320		3,156		4,128		1,477
Repurchase agreements		2,275		2,136		2,892		1,691		2,054
Bank notes and senior debt		2,177		3,503		3,362		3,875		3,475
Subordinated debt		4,436		4,329		4,387		4,469		4,506
Commercial paper		110		10		120		10		3,447
Other		2,222		2,353		2,523		2,724		3,415
Total borrowed funds		14,695		15,651		16,440		16,897		18,374
Allowance for unfunded loan commitments
and letters of credit		117		103		103		100		79
Accrued expenses		3,855		2,635		2,585		2,770		2,637
Other		4,031		3,573		3,822		2,759		3,025
Total liabilities		87,270		85,455		83,849		82,801		84,329
Minority and noncontrolling interests in consolidated entities		408		632		627		590		595
Shareholders’ Equity
Preferred stock (a)
Common stock - $5 par value
Authorized 800 shares, issued 353 shares		1,764		1,764		1,764		1,764		1,764
Capital surplus		1,679		1,385		1,349		1,358		1,358
Retained earnings		10,771		9,449		9,230		9,023		8,814
Deferred compensation expense		(51)		(60)		(44)		(59)		(64)
Accumulated other comprehensive loss		(109)		(510)		(394)		(267)		(200)
Common stock held in treasury at cost: 59, 58, 57, 60,
and 62 shares		(3,296)		(3,201)		(3,124)		(3,256)		(3,355)
Total shareholders’ equity		10,758		8,827		8,781		8,563		8,317
Total liabilities, minority and noncontrolling interests, and
shareholders’ equity		$98,436		$94,914		$93,257		$91,954		$93,241
CAPITAL RATIOS
Tier 1 risk-based (b)		10.4 %		8.8 %		8.8 %		8.3 %		8.4 %
Total risk-based (b)		13.6		12.4		12.5		12.1		12.5
Leverage (b)		9.4		7.7		7.6		7.2		7.1
Tangible common equity		7.5		5.2		5.2		5.0		4.9
Common shareholders’ equity to assets		10.9		9.3		9.4		9.3		8.9
ASSET QUALITY RATIOS
Nonperforming assets to loans,
loans held for sale and foreclosed assets		.36 %		.44 %		.40 %		.42 %		.29 %
Nonperforming loans to loans		.34		.41		.37		.39		.25
Net charge-offs to average loans (For the three months ended)		.37		.24		.15		.33		.12
Allowance for loan and lease losses to loans		1.16		1.21		1.21		1.21		1.26
Allowance for loan and lease losses to nonperforming loans		339		294		328		314		499

(a)	Less than $.5 million at each date.
(b)	The ratios for September 30, 2006 are estimated and reflect the impact of the deconsolidation of BlackRock effective September 29, 2006.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 3
Summary of Business Results and Period-end Employees(Unaudited)
Three months ended – dollars in millions (a)		September 30		June 30		March 31		December 31		September 30
Earnings		2006		2006		2006		2005		2005
Retail Banking		$206		$185		$190		$195		$176
Corporate & Institutional Banking		113		116		105		108		118
BlackRock (b) (c)		63		71		75		73		61
PFPC		40		26		27		29		28
Total business segment earnings		422		398		397		405		383
Minority interest in income of BlackRock		(20)		(21)		(23)		(22)		(19)
Other (c) (d)		1,082		4		(20)		(28)		(30)
Total consolidated net income		$1,484		$381		$354		$355		$334
Revenue (e)
Retail Banking		$791		$782		$753		$755		$740
Corporate & Institutional Banking		356		382		340		358		346
BlackRock (b) (f)		328		365		410		375		320
PFPC (g)		208		208		218		209		211
Total business segment revenue		1,683		1,737		1,721		1,697		1,617
Other		1,834		55		27		25		65
Total consolidated revenue		$3,517		$1,792		$1,748		$1,722		$1,682

(a)	This summary also serves as a reconciliation of total earnings and revenue for all business segments to total consolidated net income and revenue. Our business segment information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.
(b)	Our ownership interest in BlackRock was approximately 69% - 70% for all periods presented. Effective September 29, 2006, PNC's ownership interest in BlackRock dropped to approximately 34%.
(c)	BlackRock reported GAAP earnings of $19 million, $63 million and $71 million for the three months ended September 30, 2006, June 30, 2006 and March 31, 2006, respectively. For this PNC business segment reporting presentation, pretax integration costs incurred by BlackRock for the MLIM transaction totaling $72 million, $13 million and $6 million for the three months ended September 30, 2006, June 30, 2006 and March 31, 2006, respectively, have been reclassified from BlackRock to "Other."
(d)	"Other" for the three months ended September 30, 2006 includes the after-tax impact of the gain on the BlackRock transaction and costs associated with the securities portfolio rebalancing and mortgage loan portfolio repositioning.

(e)	Business segment revenue is presented on a taxable-equivalent basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income on other taxable investments. This adjustment is not permitted under generally accepted accounting principles (GAAP) on the Consolidated Income Statement. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):

		September 30		June 30		March 31		December 31		September 30
		2006		2006		2006		2005		2005
Total consolidated revenue, book (GAAP) basis		$3,510		$1,786		$1,741		$1,709		$1,675
Taxable-equivalent adjustment		7		6		7		13		7
Total consolidated revenue, taxable-equivalent basis		$3,517		$1,792		$1,748		$1,722		$1,682

(f)	Amounts for BlackRock represent the sum of total operating revenue and nonoperating income.
(g)	Amounts for PFPC represent the sum of servicing revenue and net nonoperating income less debt financing costs.

		September 30		June 30		March 31		December 31		September 30
Period-end Employees		2006		2006		2006		2005		2005
Full-time employees
Retail Banking		9,531		9,674		9,725		9,679		9,891
Corporate & Institutional Banking		1,925		1,899		1,892		1,861		1,740
BlackRock				2,317		2,232		2,151		2,145
PFPC		4,317		4,314		4,291		4,391		4,457
Other
Operations & Technology		4,006		3,994		3,942		3,966		4,010
Staff Services		1,595		1,593		1,560		1,545		1,568
Total Other		5,601		5,587		5,502		5,511		5,578
Total full-time employees		21,374		23,791		23,642		23,593		23,811
Total part-time employees		2,165		2,241		2,003		1,755		1,558
Total employees		23,539		26,032		25,645		25,348		25,369

The period-end employee statistics disclosed for each business segment reflect staff directly employed by the respective business segment and exclude operations, technology and staff services employees. No employees are shown for BlackRock at September 30, 2006 as we deconsolidated BlackRock effective September 29, 2006.

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THE PNC FINANCIAL SERVICES GROUP, INC.																		Page 4
Retail Banking (Unaudited)
Three months ended
Taxable-equivalent basis (a)		September 30				June 30				March 31				December 31				September 30
Dollars in millions		2006				2006				2006				2005				2005
INCOME STATEMENT
Net interest income		$427				$424				$408				$417				$407
Noninterest income
Asset management		87				87				87				86				87
Service charges on deposits		79				77				71				72				71
Brokerage		59				59				58				54				54
Consumer services		86				88				86				78				72
Other		53				47				43				48				49
Total noninterest income		364				358				345				338				333
Total revenue		791				782				753				755				740
Provision for credit losses		9				28				9				9				14
Noninterest expense		451				455				436				434				444
Pretax earnings		331				299				308				312				282
Minority interest		5				5				4
Income taxes		120				109				114				117				106
Earnings		$206				$185				$190				$195				$176
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity		$13,849				$13,816				$13,778				$13,751				$13,570
Indirect		1,069				1,019				987				980				952
Other consumer		1,221				1,202				1,248				1,264				1,205
Total consumer		16,139				16,037				16,013				15,995				15,727
Commercial		5,821				5,715				5,433				5,282				5,235
Floor plan		854				964				970				936				903
Residential mortgage		1,509				1,577				1,648				1,716				1,789
Other		250				248				236				244				247
Total loans		24,573				24,541				24,300				24,173				23,901
Goodwill and other intangible assets		1,580				1,586				1,582				1,560				1,545
Loans held for sale		1,513				1,535				1,880				1,802				1,602
Other assets		1,640				1,621				1,607				1,505				1,498
Total assets		$29,306				$29,283				$29,369				$29,040				$28,546
Deposits
Noninterest-bearing demand		$7,848				$7,908				$7,777				$7,925				$7,891
Interest-bearing demand		7,787				7,950				8,025				8,095				8,044
Money market		14,832				14,697				14,644				14,399				14,042
Total transaction deposits		30,467				30,555				30,446				30,419				29,977
Savings		1,976				2,109				2,183				2,309				2,516
Certificates of deposit		14,053				13,560				13,115				12,671				11,996
Total deposits		46,496				46,224				45,744				45,399				44,489
Other liabilities		515				537				560				392				370
Capital		2,988				2,979				2,943				2,965				2,919
Total funds		$49,999				$49,740				$49,247				$48,756				$47,778
PERFORMANCE RATIOS
Return on average capital		27		%		25		%		26		%		26		%		24		%
Noninterest income to total revenue		46				46				46				45				45
Efficiency, GAAP basis		57				58				58				57				60
Efficiency, as adjusted (b)		55				56				56				55				58

(a)	See notes (a) and (e) on page 3.
(b)	See page 11 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio on a GAAP basis.

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THE PNC FINANCIAL SERVICES GROUP, INC.																		Page 5
Retail Banking (Unaudited) (Continued)
Three months ended		September 30				June 30				March 31				December 31				September 30
Dollars in millions except as noted		2006				2006				2006				2005				2005
OTHER INFORMATION (a)
Credit-related statistics:
Nonperforming assets		$95				$104				$93				$90				$87
Net charge-offs (b)		$31				$19				$14				$12				$11
Annualized net charge-off ratio		.50		%		.31		%		.23		%		.20 %				.18		%
Home equity portfolio credit statistics:
% of first lien positions		44		%		45		%		45		%		46 %				47		%
Weighted average loan-to-value ratios		69		%		69		%		68		%		68 %				70		%
Weighted average FICO scores		728				728				727				728				721
Loans 90 days past due		.22		%		.21		%		.22		%		.21 %				.18		%
Checking-related statistics:
Retail Banking checking relationships		1,958,000				1,956,000				1,950,000				1,934,000				1,921,000
Consumer DDA households using online banking		920,000				897,000				880,000				855,000				830,000
% of consumer DDA households using online banking		52		%		51		%		50		%		49		%		48		%
Consumer DDA households using online bill payment		361,000				305,000				253,000				205,000				188,000
% of consumer DDA households using online bill payment		20		%		17		%		14		%		12		%		11		%
Small business managed deposits:
On-balance sheet
Noninterest-bearing demand		$4,370				$4,319				$4,357				$4,555				$4,499
Interest-bearing demand		1,545				1,392				1,454				1,656				1,547
Money market		2,658				2,617				2,705				2,941				3,045
Certificates of deposit		647				574				553				530				410
Off-balance sheet (c)
Small business sweep checking		1,676				1,532				1,454				1,392				1,321
Total managed deposits		$10,896				$10,434				$10,523				$11,074				$10,822
Brokerage statistics:
Margin loans		$170				$194				$205				$217				$223
Financial consultants (d)		752				775				783				779				784
Full service brokerage offices		99				100				100				100				99
Brokerage account assets (billions)		$44				$43				$43				$42				$42
Other statistics:
Gains on sales of education loans (e)		$11				$7				$4				$4				$11
Period-end full-time employees		9,531				9,674				9,725				9,679				9,891
Period-end part-time employees		1,660				1,526				1,373				1,117				934
ATMs		3,594				3,553				3,763				3,721				3,770
Branches (f)		848				846				846				839				830
ASSETS UNDER ADMINISTRATION (in billions) (g)
Assets under management
Personal		$42				$40				$40				$40				$41
Institutional		10				10				10				9				9
Total		$52				$50				$50				$49				$50
Asset Type
Equity		$32				$31				$32				$31				$31
Fixed income		12				12				12				12				13
Liquidity/Other		8				7				6				6				6
Total		$52				$50				$50				$49				$50
Nondiscretionary assets under administration
Personal		$27				$25				$28				$27				$27
Institutional		62				60				59				57				58
Total		$89				$85				$87				$84				$85
Asset Type
Equity		$32				$31				$33				$33				$32
Fixed income		27				26				26				24				25
Liquidity/Other		30				28				28				27				28
Total		$89				$85				$87				$84				$85

(a)	Presented as of period-end, except for net charge-offs, annualized net charge-off ratio, gains on sales of education loans, and small business deposits.
(b)	The increase at September 30, 2006 was primarily due to a single large overdraft fraud that occurred during the second quarter of 2006.
(c)	Represents small business balances, a portion of which are calculated on a one-month lag. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.
(d)	Financial consultants provide services in full service brokerage offices and PNC traditional branches.
(e)	Included in "Noninterest income-Other" on page 4.
(f)	Excludes certain satellite branches that provide limited products and service hours.
(g)	Excludes brokerage account assets.

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THE PNC FINANCIAL SERVICES GROUP, INC.																		Page 6
Corporate & Institutional Banking (Unaudited)
Three months ended
Taxable-equivalent basis (a)		September 30				June 30				March 31				December 31				September 30
Dollars in millions except as noted		2006				2006				2006				2005				2005
INCOME STATEMENT
Net interest income		$182				$173				$175				$184				$194
Noninterest income
Corporate services		131				133				113				118				99
Other		43				76				52				56				53
Noninterest income		174				209				165				174				152
Total revenue		356				382				340				358				346
Provision for (recoveries of) credit losses		7				17				12				23				(1)
Noninterest expense		182				192				176				177				172
Pretax earnings		167				173				152				158				175
Income taxes		54				57				47				50				57
Earnings		$113				$116				$105				$108				$118
AVERAGE BALANCE SHEET
Loans
Corporate (b)		$9,966				$9,981				$9,685				$9,829				$11,436
Commercial real estate		2,953				2,760				2,643				2,620				2,580
Commercial - real estate related		2,476				2,484				2,454				2,219				2,155
Asset-based lending		4,563				4,452				4,252				4,227				4,227
Total loans (b)		19,958				19,677				19,034				18,895				20,398
Loans held for sale		865				875				866				923				789
Goodwill and other intangible assets		1,366				1,328				1,314				1,265				1,081
Other assets		4,721				4,411				4,282				4,243				4,416
Total assets		$26,910				$26,291				$25,496				$25,326				$26,684
Deposits
Noninterest-bearing demand		$6,817				$6,353				$6,697				$6,526				$6,195
Money market		2,678				2,168				2,110				2,886				2,620
Other		995				933				777				717				720
Total deposits		10,490				9,454				9,584				10,129				9,535
Commercial paper (c)														514				2,553
Other liabilities		3,885				3,722				3,439				3,405				3,280
Capital		1,879				2,027				1,945				1,787				1,743
Total funds		$16,254				$15,203				$14,968				$15,835				$17,111
PERFORMANCE RATIOS
Return on average capital		24		%		23		%		22		%		24		%		27		%
Noninterest income to total revenue		49				55				49				49				44
Efficiency		51				50				52				49				50
COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period		$151				$140				$136				$126				$119
Acquisitions/additions		37				19				13				21				18
Repayments/transfers		(8)				(8)				(9)				(11)				(11)
End of period		$180				$151				$140				$136				$126
OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management		$108				$106				$102				$105				$105
Capital Markets		$64				$76				$64				$62				$42
Midland Loan Services		$47				$42				$42				$41				$39
Total loans (e)		$20,405				$20,057				$19,447				$18,817				$21,084
Nonperforming assets (e)		$94				$125				$112				$124				$67
Net charge-offs (recoveries)		$14				$12				$4				$28				$5
Period-end full-time employees		1,925				1,899				1,892				1,861				1,740
Net gains on commercial mortgage loan sales		$12				$18				$7				$13				$21
Net carrying amount of commercial
mortgage servicing rights (e)		$414				$385				$353				$344				$297

(a)	See notes (a) and (e) on page 3.
(b)	Includes lease financing and Market Street. Market Street was deconsolidated from our Consolidated Balance Sheet effective October 17, 2005.
(c)	Includes Market Street. See Supplemental Average Balance Sheet Information on pages 12-13.
(d)	Represents consolidated PNC amounts.
(e)	Presented as of period-end.

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THE PNC FINANCIAL SERVICES GROUP, INC.																		Page 7
BlackRock (Unaudited) (a) (b)
Three months ended
Taxable-equivalent basis (a)		September 30				June 30				March 31				December 31				September 30
Dollars in millions except as noted		2006				2006				2006				2005				2005
INCOME STATEMENT
Investment advisory and administrative fees		$275				$313				$350				$320				$255
Other income		48				47				46				49				46
Total operating revenue		323				360				396				369				301
Operating expense (c)		212				240				280				245				208
Fund administration and servicing costs		11				11				10				11				13
Total expense (c)		223				251				290				256				221
Operating income		100				109				106				113				80
Nonoperating income		5				5				14				6				19
Pretax earnings		105				114				120				119				99
Minority interest		1								1				1				1
Income taxes		41				43				44				45				37
Earnings (c)		$63				$71				$75				$73				$61
PERIOD-END BALANCE SHEET
Investment in BlackRock		$3,836
Goodwill and other intangible assets		29				$490				$492				$484				$492
Other assets						1,434				1,349				1,364				1,181
Total assets		$3,865				$1,924				$1,841				$1,848				$1,673
Liabilities (d)		$1,541				$883				$852				$926				$806
Stockholders’ equity		2,324				1,041				989				922				867
Total liabilities and stockholders’ equity		$3,865				$1,924				$1,841				$1,848				$1,673
Return on average equity		24		%		28		%		32		%		32		%		28 %

(a)	See notes (a) and (e) on page 3.
(b)	Effective September 29, 2006, we deconsolidated BlackRock from our consolidated financial statements and our investment in BlackRock was accounted for under equity method of accounting subsequent to that date. At September 30, 2006, we owned approximately 34% of BlackRock.
(c)	BlackRock reported GAAP earnings of $19 million, $63 million and $71 million for the three months ended September 30, 2006, June 30, 2006 and March 31, 2006, respectively. For this PNC business segment reporting presentation, pretax integration costs incurred by BlackRock for the MLIM transaction totaling $72 million, $13 million and $6 million for the three months ended September 30, 2006, June 30, 2006 and March 31, 2006, respectively, have been reclassified from BlackRock to "Other." The following is a reconciliation of BlackRock's earnings as reported in this PNC business segment reporting presentation to BlackRock's reported GAAP earnings (in millions):

						Three months ended
		September 30		June 30		March 31		December 31		September 30
		2006		2006		2006		2005		2005
BlackRock earnings, as reported in PNC's business reporting presentation		$63		$71		$75		$73		$61
Less: BlackRock/MLIM transaction integration costs, after-tax		44		8		4
BlackRock reported GAAP earnings		$19		$63		$71		$73		$61

(d)	Liabilities at September 30, 2006 primarily consist of income taxes payable and our total BlackRock long-term retention and incentive plan ("LTIP") funding obligation. Liabilities for each of the other periods presented include minority interest

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THE PNC FINANCIAL SERVICES GROUP, INC.																		Page 8
PFPC (Unaudited) (a)
Three months ended		September 30				June 30				March 31				December 31				September 30
Dollars in millions except as noted		2006				2006				2006				2005				2005
INCOME STATEMENT
Servicing revenue		$218				$218				$227				$217				$221
Expenses
Operating expense		163				163				170				161				168
Amortization of other intangibles, net		3				4				3				4				3
Total expense		166				167				173				165				171
Operating income		52				51				54				52				50
Debt financing		11				11				10				10				10
Net nonoperating income		1				1				1				2
Pretax earnings		42				41				45				44				40
Income taxes (b)		2				15				18				15				12
Earnings		$40				$26				$27				$29				$28
PERIOD-END BALANCE SHEET
Goodwill and other intangible assets		$1,015				$1,018				$1,022				$1,025				$1,029
Other assets		1,038				1,398				1,363				1,103				1,053
Total assets		$2,053				$2,416				$2,385				$2,128				$2,082
Debt financing		$813				$852				$890				$890				$939
Other liabilities		772				1,137				1,094				864				799
Shareholder's equity		468				427				401				374				344
Total funds		$2,053				$2,416				$2,385				$2,128				$2,082
PERFORMANCE RATIOS
Return on average equity		35		%		25		%		28		%		32		%		34 %
Operating margin (c)		24				23				24				24				23
SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions) (d)
Domestic		$695				$671				$665				$754				$726
Offshore		79				72				85				81				67
Total		$774				$743				$750				$835				$793
Asset type (in billions)
Money market		$260				$247				$238				$361				$333
Equity		331				317				338				305				284
Fixed income		111				110				107				104				114
Other		72				69				67				65				62
Total		$774				$743				$750				$835				$793
Custody fund assets (in billions)		$399				$389				$383				$476				$475
Shareholder accounts (in millions)
Transfer agency		18				18				20				19				19
Subaccounting		48				47				45				43				40
Total		66				65				65				62				59
OTHER INFORMATION
Period-end full-time employees		4,317				4,314				4,291				4,391				4,457

(a)	See notes (a) and (e) on page 3.
(b)	Income taxes for the quarter ended September 30, 2006 included the benefit of a $13.5 million reversal of deferred taxes related to foreign subsidiary earnings.
(c)	Operating income divided by servicing revenue.
(d)	Includes alternative investment net assets serviced.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 9
Details of Net Interest Income, Net Interest Margin, and Trading Revenue (Unaudited)
Taxable-equivalent basis
						Three months ended
Net Interest Income		September 30		June 30		March 31		December 31		September 30
In millions		2006		2006		2006		2005		2005
Interest income
Loans		$841		$801		$750		$730		$721
Securities available for sale and held to maturity		272		255		244		234		219
Other		97		76		79		83		62
Total interest income		1,210		1,132		1,073		1,047		1,002
Interest expense
Deposits		434		379		327		305		270
Borrowed funds		202		191		183		174		166
Total interest expense		636		570		510		479		436
Net interest income (a)		$574		$562		$563		$568		$566
(a) The following is a reconciliation of net interest income as reported in the Consolidated Income Statement (GAAP basis) to net interest income on a taxable-equivalent basis:
						Three months ended
		September 30		June 30		March 31		December 31		September 30
In millions		2006		2006		2006		2005		2005
Net interest income, GAAP basis		$567		$556		$556		$555		$559
Taxable-equivalent adjustment		7		6		7		13		7
Net interest income, taxable-equivalent basis		$574		$562		$563		$568		$566
						Three months ended
Net Interest Margin		September 30		June 30		March 31		December 31		September 30
		2006		2006		2006		2005		2005
Average yields/rates
Yield on interest-earning assets
Loans		6.59 %		6.38 %		6.14 %		5.91 %		5.75 %
Securities available for sale and held to maturity		5.01		4.76		4.66		4.49		4.29
Other		5.78		5.23		5.04		5.00		4.15
Total yield on interest-earning assets		6.09		5.84		5.64		5.44		5.23
Rate on interest-bearing liabilities
Deposits		3.43		3.11		2.81		2.58		2.33
Borrowed funds		5.40		5.06		4.65		4.23		3.79
Total rate on interest-bearing liabilities		3.88		3.56		3.27		3.01		2.73
Interest rate spread		2.21		2.28		2.37		2.43		2.50
Impact of noninterest-bearing sources		.68		.62		.58		.53		.46
Net interest margin		2.89 %		2.90 %		2.95 %		2.96 %		2.96 %
						Three months ended
Trading Revenue (b)		September 30		June 30		March 31		December 31		September 30
In millions		2006		2006		2006		2005		2005
Net interest income (expense)		$(1)		$(3)				$2		$1
Noninterest income		38		55		$57		49		47
Total trading revenue		$37		$52		$57		$51		$48
Securities underwriting and trading (c)		$8		$2		$4		$7		$2
Foreign exchange		11		17		14		12		10
Financial derivatives		18		33		39		32		36
Total trading revenue		$37		$52		$57		$51		$48

(b)	See pages 12-13 for disclosure of average trading assets and liabilities.
(c)	Includes changes in fair value for certain loans accounted for at fair value. See page 12 for disclosure of average loans at fair value.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 10
GAAP and Bank Efficiency Ratios (Unaudited)
						Three months ended
		September 30		June 30		March 31		December 31		September 30
		2006		2006		2006		2005		2005
PNC GAAP basis efficiency ratio (a)		34%		64%		67%		67%		69%
Bank efficiency ratio (b)		24%		59%		63%		64%		67%

(a)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income.
(b)	The bank efficiency ratio represents the consolidated (GAAP basis) efficiency ratio excluding the total effect of BlackRock and PFPC We believe the disclosure of this bank efficiency ratio is meaningful for investors because it provides a more relevant basis of comparison with other financial institutions that may not have significant asset management and fund processing businesses.

Reconciliation of GAAP amounts with amounts used in the calculation of the bank efficiency ratio:

						Three months ended
		September 30		June 30		March 31		December 31		September 30
Dollars in millions		2006		2006		2006		2005		2005
PNC total revenue, GAAP basis		$3,510		$1,786		$1,741		$1,709		$1,675
Less: BlackRock revenue*		325		365		409		373		320
PFPC revenue*		208		208		218		209		211
Revenue, as adjusted		$2,977		$1,213		$1,114		$1,127		$1,144
PNC noninterest expense, GAAP basis		$1,178		$1,149		$1,171		$1,145		$1,159
Less: BlackRock noninterest expense		295		264		296		256		221
PFPC noninterest expense		166		167		173		165		171
Noninterest expense, as adjusted		$717		$718		$702		$724		$767

*	These amounts differ from amounts included on pages 7 and 8 of this financial supplement due to the presentation on pages 7 and 8 of BlackRock revenue on a taxable-equivalent basis and classification differences related to BlackRock and PFPC. Note 13 Segment Reporting in our second quarter 2006 Quarterly Report on Form 10-Q provides further details on these differences.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 11
Retail Banking Efficiency Ratios (Unaudited)
						Three months ended
		September 30		June 30		March 31		December 31		September 30
		2006		2006		2006		2005		2005
Efficiency, GAAP basis (a)		57%		58%		58%		57%		60%
Efficiency, as adjusted (b)		55%		56%		56%		55%		58%

(a)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income.
(b)	Calculated by excluding the impact of Hilliard Lyons activities included within the Retail Banking business segment. Activities excluded are the principal activities of Hilliard Lyons on a management reporting basis, including client-related brokerage and trading, investment banking and investment management. Industry-wide efficiency measures for brokerage firms and asset management firms differ significantly due primarily to the highly variable compensation structure of brokerage firms. We believe the disclosure of an efficiency ratio for Retail Banking excluding the impact of these Hilliard Lyons activities is meaningful for investors as it provides a more relevant basis of comparison with other retail banking franchises.

Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted Retail Banking efficiency ratio:

						Three months ended
		September 30		June 30		March 31		December 31		September 30
Dollars in millions		2006		2006		2006		2005		2005
Revenue, GAAP basis		$791		$782		$753		$755		$740
Less: Hilliard Lyons		48		50		56		48		50
Revenue, as adjusted		$743		$732		$697		$707		$690
Noninterest expense, GAAP basis		$451		$455		$436		$434		$444
Less: Hilliard Lyons		43		45		45		44		44
Noninterest expense, as adjusted		$408		$410		$391		$390		$400

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 12
Average Consolidated Balance Sheet (Unaudited)
		September 30		June 30		March 31		December 31		September 30
Three months ended - in millions		2006		2006		2006		2005		2005
Assets
Interest-earning assets
Securities available for sale and held to maturity
Mortgage-backed, asset-backed, and other debt		$15,109		$13,771		$13,007		$12,541		$12,154
U.S. Treasury and government agencies/corporations		6,187		7,263		7,527		7,952		7,960
State and municipal		144		152		156		161		167
Corporate stocks and other		259		230		216		163		167
Total securities available for sale and held to maturity (a) (b)		21,699		21,416		20,906		20,817		20,448
Loans, net of unearned income
Commercial		20,431		20,348		19,556		19,130		19,685
Commercial real estate		3,268		3,071		3,021		2,983		2,947
Consumer		16,150		16,049		16,184		16,310		16,673
Residential mortgage		7,332		7,353		7,272		7,175		6,739
Lease financing		2,790		2,761		2,769		2,821		2,937
Other		367		354		344		364		469
Total loans, net of unearned income (a)		50,338		49,936		49,146		48,783		49,450
Loans held for sale		2,408		2,411		2,745		2,715		2,390
Federal funds sold and resale agreements		1,401		613		488		643		423
Other		2,805		2,795		3,147		3,248		3,046
Total interest-earning assets		78,651		77,171		76,432		76,206		75,757
Noninterest-earning assets
Allowance for loan and lease losses		(609)		(600)		(600)		(628)		(634)
Cash and due from banks		3,161		3,140		3,187		3,325		3,233
Other		14,142		13,736		13,110		13,167		12,720
Total assets (a)		$95,345		$93,447		$92,129		$92,070		$91,076
Supplemental Average Balance Sheet Information
Loans
Loans excluding conduit		$50,338		$49,936		$49,146		$48,353		$47,351
Market Street conduit (a)								430		2,099
Total loans (a)		$50,338		$49,936		$49,146		$48,783		$49,450
Trading Assets
Securities (c)		$1,460		$1,477		$1,797		$1,852		$1,734
Resale agreements (d)		537		378		321		593		411
Financial derivatives (e)		1,220		1,251		908		849		695
Loans at fair value (e)		168		170
Total trading assets		$3,385		$3,276		$3,026		$3,294		$2,840

(a)	We deconsolidated Market Street from our Consolidated Balance Sheet in October 2005. Assets and liabilities of Market Street, consisting primarily of securities, loans, and commercial paper, are not reflected in our Average Consolidated Balance Sheet after October 17, 2005. The deconsolidation of Market Street affected the following loan categories: commercial, consumer, lease financing and other.
(b)	Securities held to maturity totaled less than $.5 million for each of the periods presented and are included in the "Mortgage-backed, asset-backed, and other debt" category above.
(c)	Included in "Interest-earning assets-Other" above.
(d)	Included in "Federal funds sold and resale agreements" above.
(e)	Included in "Noninterest-earning assets-Other" above.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 13
Average Consolidated Balance Sheet (Unaudited) (Continued)
		September 30		June 30		March 31		December 31		September 30
Three months ended - in millions		2006		2006		2006		2005		2005
Liabilities, Minority and Noncontrolling Interests, and Shareholders' Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market		$20,565		$19,019		$18,482		$19,194		$18,447
Demand		8,075		8,229		8,304		8,378		8,343
Savings		2,021		2,177		2,250		2,377		2,589
Retail certificates of deposit		14,209		13,686		13,243		12,804		12,143
Other time		1,467		1,323		1,309		1,527		2,306
Time deposits in foreign offices		3,712		4,276		3,396		2,482		2,061
Total interest-bearing deposits		50,049		48,710		46,984		46,762		45,889
Borrowed funds
Federal funds purchased		3,831		2,715		2,594		2,518		1,704
Repurchase agreements		2,027		2,226		2,307		1,915		2,137
Bank notes and senior debt		2,801		3,145		3,824		3,558		3,271
Subordinated debt		4,436		4,437		4,437		4,438		3,996
Commercial paper (a)		153		206		219		798		3,316
Other		1,474		2,298		2,380		2,960		2,790
Total borrowed funds		14,722		15,027		15,761		16,187		17,214
Total interest-bearing liabilities		64,771		63,737		62,745		62,949		63,103
Noninterest-bearing liabilities, minority and noncontrolling
interests, and shareholders' equity
Demand and other noninterest-bearing deposits		14,549		13,926		13,966		14,057		13,738
Allowance for unfunded loan commitments
and letters of credit		104		103		101		80		84
Accrued expenses and other liabilities		6,346		6,305		6,106		6,049		5,408
Minority and noncontrolling interests in
consolidated entities		640		631		589		599		518
Shareholders' equity		8,935		8,745		8,622		8,336		8,225
Total liabilities, minority and noncontrolling
interests, and shareholders' equity		$95,345		$93,447		$92,129		$92,070		$91,076
Supplemental Average Balance Sheet Information
Deposits and Other
Interest-bearing deposits		$50,049		$48,710		$46,984		$46,762		$45,889
Demand and other noninterest-bearing deposits		14,549		13,926		13,966		14,057		13,738
Total deposits		$64,598		$62,636		$60,950		$60,819		$59,627
Transaction deposits		$43,189		$41,174		$40,752		$41,629		$40,528
Market Street commercial paper (a)								$514		$2,553
Common shareholders' equity		$8,928		$8,738		$8,615		$8,328		$8,217
Trading Liabilities
Securities sold short (b)		$867		$769		$663		$961		$806
Repurchase agreements and other borrowings (c)		708		641		886		985		933
Financial derivatives (d)		1,151		1,200		901		908		814
Borrowings at fair value (d)		40		48
Total trading liabilities		$2,766		$2,658		$2,450		$2,854		$2,553

(a)	See note (a) on page 12.
(b)	Included in "Borrowed funds-Other" above.
(c)	Included in "Borrowed funds-Repurchase agreements" and "Borrowed funds-Other" above.
(d)	Included in "Accrued expenses and other liabilities" above.

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THE PNC FINANCIAL SERVICES GROUP, INC.														Page 14
Details of Loans and Lending Statistics (Unaudited)
Loans
		September 30				June 30				March 31		December 31		September 30
Period ended - in millions		2006				2006				2006		2005		2005
Commercial
Retail/wholesale		$5,245				$5,393				$4,962		$4,854		$5,114
Manufacturing		4,318				4,164				4,113		4,045		4,321
Other service providers		2,155				2,179				2,114		1,986		2,173
Real estate related		3,000				2,903				2,845		2,577		2,492
Financial services		1,423				1,479				1,561		1,438		1,297
Health care		685				641				651		616		608
Other		3,858				3,805				3,681		3,809		4,098
Total commercial		20,684				20,564				19,927		19,325		20,103
Commercial real estate
Real estate projects		2,691				2,438				2,325		2,244		2,147
Mortgage		794				768				721		918		779
Total commercial real estate		3,485				3,206				3,046		3,162		2,926
Equipment lease financing		3,609				3,583				3,558		3,628		3,721
Total commercial lending		27,778				27,353				26,531		26,115		26,750
Consumer
Home equity		13,876				13,853				13,787		13,790		13,722
Automobile		1,061				1,008				958		938		931
Other		1,419				1,388				1,363		1,445		2,232
Total consumer		16,356				16,249				16,108		16,173		16,885
Residential mortgage		5,234				7,416				7,362		7,307		7,156
Other		347				358				352		341		575
Unearned income		(815)				(828)				(832)		(835)		(856)
Total, net of unearned income (a)		$48,900				$50,548				$49,521		$49,101		$50,510
Supplemental Loan Information
Loans excluding conduit		$48,900				$50,548				$49,521		$49,101		$47,889
Market Street conduit (a)														2,621
Total loans (a)		$48,900				$50,548				$49,521		$49,101		$50,510
		September 30				September 30
		2006				2005
Commercial Lending Exposure (b)(c)
Investment grade or equivalent		49		%		48		%
Non-investment grade
$50 million or greater		3		%		2		%
All other non-investment grade		48		%		50		%
Total		100		%		100		%

(a)	See note (a) on page 12.
(b)	Includes all commercial loans in the Retail Banking and Corporate & Institutional Banking business segments other than the loans of Market Street. We deconsolidated Market Street from our Consolidated Balance Sheet effective October 17, 2005.
(c)	Exposure represents the sum of all loans, leases, commitments and letters of credit.

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 15
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and
Net Unfunded Commitments (Unaudited)
Change in Allowance for Loan and Lease Losses
		September 30		June 30		March 31		December 31		September 30
Three months ended - in millions		2006		2006		2006		2005		2005
Beginning balance		$611		$597		$596		$634		$628
Charge-offs
Commercial		(39)		(30)		(16)		(8)		(16)
Commercial real estate		(2)						(1)
Equipment lease financing (a)								(29)
Consumer		(13)		(12)		(12)		(12)		(12)
Residential mortgage		(2)						(1)
Total charge-offs (a)		(56)		(42)		(28)		(51)		(28)
Recoveries
Commercial		6		4		6		6		8
Commercial real estate										1
Equipment lease financing				4
Consumer		3		4		4		4		4
Total recoveries		9		12		10		10		13
Net recoveries (charge-offs)
Commercial		(33)		(26)		(10)		(2)		(8)
Commercial real estate		(2)						(1)		1
Equipment lease financing (a)				4				(29)
Consumer		(10)		(8)		(8)		(8)		(8)
Residential mortgage		(2)						(1)
Total net charge-offs (a)		(47)		(30)		(18)		(41)		(15)
Provision for credit losses		16		44		22		24		16
Net change in allowance for unfunded loan
commitments and letters of credit		(14)				(3)		(21)		5
Ending balance		$566		$611		$597		$596		$634
Supplemental Information
Commercial lending net charge-offs (a) (b)		$(35)		$(22)		$(10)		$(32)		$(7)
Consumer lending net charge-offs (c)		(12)		(8)		(8)		(9)		(8)
Total net charge-offs (a)		$(47)		$(30)		$(18)		$(41)		$(15)
Net charge-offs to average loans
Commercial lending		.52 %		.34 %		.16 %		.51 %		.11 %
Consumer lending		.20		.14		.14		.15		.14

(a)	Fourth quarter 2005 amounts reflect the impact of a charge-off related to a single leasing customer during that period
(b)	Includes commercial, commercial real estate and equipment lease financing.
(c)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit
		September 30		June 30		March 31		December 31		September 30
Three months ended - in millions		2006		2006		2006		2005		2005
Beginning balance		$103		$103		$100		$79		$84
Net change in allowance for unfunded
loan commitments and letters of credit		14				3		21		(5)
Ending balance		$117		$103		$103		$100		$79
Net Unfunded Commitments		September 30		June 30		March 31		December 31		September 30
In millions		2006		2006		2006		2005		2005
Net unfunded commitments (d)		$43,804		$40,904		$40,806		$40,178		$35,261

(d)	Balances subsequent to October 17, 2005 reflect the deconsolidation of Market Street from our Consolidated Balance Sheet as of that date. Amounts related to Market Street are now considered third party net unfunded commitments.

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THE PNC FINANCIAL SERVICES GROUP, INC.																Page 16
Details of Nonperforming Assets (Unaudited)
Nonperforming Assets by Type
		September 30		June 30				March 31				December 31				September 30
Period ended - in millions		2006		2006				2006				2005				2005
Nonaccrual loans
Commercial		$112		$151				$127				$134				$86
Commercial real estate		14		12				13				14				11
Equipment lease financing		14		16				16				17				3
Consumer		14		14				11				10				11
Residential mortgage		13		14				15				15				16
Total nonaccrual loans		167		207				182				190				127
Troubled debt restructured loan				1
Total nonperforming loans		167		208				182				190				127
Nonperforming loans held for sale (a)								1				1				1
Foreclosed and other assets
Equipment lease financing		12		12				13				13				13
Residential mortgage		9		8				8				9				11
Other		3		3				3				3				4
Total foreclosed and other assets		24		23				24				25				28
Total nonperforming assets (b)		$191		$231				$207				$216				$156
Nonperforming loans to total loans		.34 %		.41		%		.37		%		.39		%		.25 %
Nonperforming assets to total loans, loans held
for sale and foreclosed assets		.36		.44				.40				.42				.29
Nonperforming assets to total assets		.19		.24				.22				.23				.17
(a) Amounts represent troubled debt restructured
loans held for sale.
(b) Excludes equity management assets carried at
estimated fair value (amounts include troubled debt
restructured assets of $4 million, $7 million, $7
million, $7 million and $16 million, respectively).		$12		$18				$21				$25				$27
Change in Nonperforming Assets
		Nine months
In millions		ended
January 1, 2006		$216
Transferred from accrual		182
Returned to performing		(15)
Principal activity including payoffs		(93)
Asset sales		(14)
Charge-offs and valuation adjustments		(85)
September 30, 2006		$191

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THE PNC FINANCIAL SERVICES GROUP, INC.										Page 17
Details of Nonperforming Assets		(Unaudited) (Continued)
Nonperforming Assets by Business
		September 30		June 30		March 31		December 31		September 30
Period ended - in millions		2006		2006		2006		2005		2005
Retail Banking
Nonperforming loans		$85		$95		$84		$81		$78
Foreclosed and other assets		10		9		9		9		9
Total		$95		$104		$93		$90		$87
Corporate & Institutional Banking
Nonperforming loans		$81		$112		$97		$108		$48
Nonperforming loans held for sale						1		1		1
Foreclosed and other assets		13		13		14		15		18
Total		$94		$125		$112		$124		$67
Other (a)
Nonperforming loans		$1		$1		$1		$1		$1
Foreclosed and other assets		1		1		1		1		1
Total		$2		$2		$2		$2		$2
Consolidated Totals
Nonperforming loans		$167		$208		$182		$190		$127
Nonperforming loans held for sale						1		1		1
Foreclosed and other assets		24		23		24		25		28
Total		$191		$231		$207		$216		$156

Largest Nonperforming Assets at September 30, 2006 - in millions (b)

Ranking		Outstandings				Industry
1		$19				Food Mfg.
2		14				Air Transportation
3		12				Computer and Electronic Mfg.
4		12				Air Transportation
5		12				Fabricated Metal Product Mfg.
6		6				Real Estate
7		4				Construction of Buildings
8		4				Transportation Equipment Mfg.
9		4				Private Households
10		3				Truck Transportation
Total		$90
As a percent of nonperforming assets
		47		%

(a)	Represents residential mortgages related to PNC's asset and liability management function.
(b)	Amounts shown are not net of related allowance for loan and lease losses, if applicable.

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Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets.

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Basis point - One hundredth of a percentage point.

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred to held for sale and the loan’s market value is less than its carrying amount.

Common shareholders’ equity to total assets - Common shareholders' equity divided by total assets. Common shareholders' equity equals total shareholders' equity less the liquidation value of preferred stock.

Custody assets - Investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

Derivatives - Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including forward contracts, futures, options and swaps.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., vulnerable to rising rates). For example, if the duration of equity is +1.5 years, the economic value of equity declines by 1.5% for each 100 basis point increase in interest rates.

Earning assets - Assets that generate income, which include: federal funds sold; resale agreements; other short-term investments, including trading securities; loans held for sale; loans, net of unearned income; securities; and certain other assets.

Economic capital - Represents the amount of resources that our business segments should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us to compare different risks on a similar basis.

Economic value of equity ("EVE") - The present value of the expected cash flows of our existing assets less the present value of the expected cash flows of our existing liabilities, plus the present value of the net cash flows of our existing off-balance sheet positions.

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency - Noninterest expense divided by the sum of net interest income and noninterest income.

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Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of our business segments. We assign these balances LIBOR-based funding rates at origination that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP - Accounting principles generally accepted in the United States of America.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

Nondiscretionary assets under administration - Assets we hold for our customers/clients in a non-discretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Noninterest income to total revenue - Noninterest income divided by the sum of net interest income and noninterest income.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, nonaccrual loans held for sale, foreclosed assets and other assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, consumer, and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include nonaccrual loans held for sale or foreclosed and other assets. We do not accrue interest income on loans classified as nonperforming.

Operating leverage - The period to period percentage change in total revenue less the percentage change in noninterest expense. A positive percentage indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative percentage implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Return on average capital - Annualized net income divided by average capital.

Return on average assets - Annualized net income divided by average assets.

Return on average common equity - Annualized net income divided by average common shareholders’ equity.

Risk-weighted assets - Primarily computed by the assignment of specific risk-weights (as defined by The Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Securitization - The process of legally transforming financial assets into securities.

Tangible common equity ratio - Period-end common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by period-end assets less goodwill and other intangible assets (excluding mortgage servicing rights).

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Taxable-equivalent interest - The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we also provide revenue on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Tier 1 risk-based capital - Tier 1 risk-based capital equals: total shareholders' equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain other intangible assets, less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for tier 1 risk-based capital purposes.

Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.

Total fund assets serviced - Total domestic and offshore fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

Total return swap - A non-traditional swap where one party agrees to pay the other the “total return” of a defined underlying asset (e.g., a loan), usually in return for receiving a stream of LIBOR-based cash flows. The total returns of the asset, including interest and any default shortfall, are passed through to the counterparty. The counterparty is therefore assuming the credit and economic risk of the underlying asset.

Total risk-based capital - Tier 1 risk-based capital plus qualifying senior and subordinated debt, other minority interest not qualified as tier 1, and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.

Transaction deposits - The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.

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Business Segment Descriptions

Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to approximately 2.5 million consumer and small business customers within our primary geographic area. Our customers are serviced through approximately 850 offices in our branch network, the call center located in Pittsburgh and the Internet – www.pncbank.com. The branch network is located primarily in Pennsylvania; New Jersey; the greater Washington, D.C. area, including Virginia and Maryland; Ohio; Kentucky and Delaware. Brokerage services are provided through PNC Investments, LLC, and J.J.B. Hilliard, W.L. Lyons, Inc. Retail Banking also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides nondiscretionary defined contribution plan services and investment options through its Vested Interest® product. These services are provided to individuals and corporations primarily within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets products and services to mid-sized corporations, government entities, and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services provided nationally.

BlackRock is one of the world’s largest publicly traded investment management firms. As of September 30, 2006, BlackRock’s assets under management, including assets under management acquired as a result of the BlackRock/MLIM transaction, were $1.1 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. In addition, BlackRock provides BlackRock Solutions^® investment system, risk management, and financial advisory services to a growing number of institutional investors. The firm has a major presence in key global markets, including the United States, Europe, Asia, Australia and the Middle East. For additional information, please visit the firm’s website at www.blackrock.com. At September 30, 2006, PNC owned approximately 34% of BlackRock and will prospectively account for its investment in BlackRock under the equity method.

PFPC is a leading full service provider of processing, technology and business solutions for the global investment industry. Securities services include custody, securities lending, and accounting and administration for funds registered under the 1940 Act and alternative investments. Investor services include transfer agency, managed accounts, subaccounting, and distribution. PFPC serviced $2.0 trillion in total assets and 66 million shareholder accounts as of September 30, 2006 both domestically and internationally through its Ireland and Luxembourg operations.

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Page 22

Additional Information About The PNC/Mercantile Transaction

The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation (“Mercantile Bankshares”) will be filing a proxy statement/prospectus and other relevant documents concerning the PNC/Mercantile merger transaction with the United States Securities and Exchange Commission (the “SEC”). SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain free copies of the proxy statement/prospectus, as well as other filings containing information about Mercantile Bankshares and PNC, without charge, at the SEC’s Internet site (http://www.sec.gov). In addition, documents filed with the SEC by The PNC Financial Services Group, Inc. will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Mercantile Bankshares will be available free of charge from Mercantile Bankshares Corporation, 2 Hopkins Plaza, P.O. Box 1477, Baltimore, Maryland 21203, Attention: Investor Relations.

Mercantile Bankshares and its directors and executive officers and certain other members of management and employees are expected to be participants in the solicitation of proxies from Mercantile Bankshares’ shareholders in respect of the proposed merger transaction. Information regarding the directors and executive officers of Mercantile Bankshares is available in the proxy statement for its May 9, 2006 annual meeting of shareholders, which was filed with the SEC on March 29, 2006. Additional information regarding the interests of such potential participants will be included in the proxy statement/prospectus relating to the merger transaction and the other relevant documents filed with the SEC when they become available.

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ADDITIONAL INFORMATION ABOUT THE PNC/MERCANTILE TRANSACTION

     The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation will be filing a proxy statement/prospectus and other relevant documents concerning the PNC/Mercantile merger transaction with the United States Securities and Exchange Commission (the “SEC”). SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER TRANSACTION OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain free copies of the proxy statement/prospectus, as well as other filings containing information about Mercantile Bankshares and PNC, without charge, at the SEC’s Internet site (http://www.sec.gov). In addition, documents filed with the SEC by The PNC Financial Services Group, Inc. will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Mercantile Bankshares will be available free of charge from Mercantile Bankshares Corporation, 2 Hopkins Plaza, P.O. Box 1477, Baltimore, Maryland 21203, Attention: Investor Relations.

     Mercantile Bankshares and its directors and executive officers and certain other members of management and employees are expected to be participants in the solicitation of proxies from Mercantile Bankshares’ shareholders in respect of the proposed merger transaction. Information regarding the directors and executive officers of Mercantile Bankshares is available in the proxy statement for its May 9, 2006 annual meeting of shareholders, which was filed with the SEC on March 29, 2006. Additional information regarding the interests of such potential participants will be included in the proxy statement/prospectus relating to the merger transaction and the other relevant documents filed with the SEC when they become available.

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