SLFI Sterling Financial (MM)

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: Sterling Financial Corporation

Commission File No. 000-16276

James

E,

Rohr,

Chairman

and

Chief

Executive

Officer

of

The

PNC

Financial

Services

Group,

Inc.

(“PNC”),

gave

a

presentation

to investors on December

12, 2007 at the Goldman Sachs Financial

Services

CEO

Conference.

This

presentation

was

accompanied

by

a series of electronic

slides

that

included

information

pertaining

to

the

financial

results

and

business

strategies

of

PNC.

The

following

slides

and

related

material

were

posted

on

PNC’s

website

on

Wednesday,

December

12,

2007.

The PNC Financial Services Group, Inc.

Goldman Sachs

Financial Services CEO Conference 2007

New York

December 12, 2007

This

presentation

contains

forward-looking

statements

regarding

our

outlook

or

expectations

relating

to

PNC’s

future

business,

operations,

financial

condition,

financial

performance

and

asset

quality.

Forward-looking

statements

are

necessarily

subject

to

numerous

assumptions,

risks

and

uncertainties,

which

change

over

time.

The

forward-looking

statements

in

this

presentation

are

qualified

by

the

factors

affecting

forward-looking

statements

identified

in

the

more

detailed

Cautionary

Statement

included

in

the

Appendix,

which

is

included

in

the

version

of

the

presentation

materials

posted

on

our

corporate

website

at

www.pnc.com/investorevents.

We

provide

greater

detail

regarding

these

factors

in

our

2006

Form

10-K,

including

in

the

Risk

Factors

and

Risk

Management

sections,

and

in

our

current

quarter

2007

Form

10-Q

and

other

SEC

reports

(accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website).

Future

events

or

circumstances

may

change

our

outlook

or

expectations

and

may

also

affect

the

nature

of

the

assumptions,

risks

and

uncertainties

to

which

our

forward-looking

statements

are

subject.

The

forward-looking

statements

in

this

presentation

speak

only

as

of

the

date

of

this

presentation.

We

do

not

assume

any

duty

and

do

not

undertake

to

update

those

statements.

In

this

presentation,

we

will

sometimes

refer

to

adjusted

results

to

help

illustrate

the

impact

of

the

deconsolidation

of

BlackRock

near

the

end

of

third

quarter

2006

and

the

impact

of

certain

types

of

items.

Adjusted

results

reflect,

as

applicable,

the

following

types

of

adjustments:

(1)

2006

and

earlier

periods

reflect

the

impact

of

the

deconsolidation

of

BlackRock

by

adjusting

as

if

we

had

recorded

our

BlackRock

investment

on

the

equity

method

prior

to

its

deconsolidation;

(2)

adjusting

the

2006

periods

to

exclude

the

impact

of

the

third

quarter

2006

gain

on

the

BlackRock/MLIM

transaction

and

losses

on

the

repositioning

of

PNC’s

securities

and

mortgage

loan

portfolios;

(3)

adjusting

fourth

quarter

2006

and

the

2007

periods

to

exclude

the

net

mark-to-market

adjustments

on

PNC’s

remaining

BlackRock

LTIP

shares

obligation

and,

as

applicable,

the

gain

PNC

recognized

in

first

quarter

2007

in

connection

with

the

company’s

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

its

BlackRock

LTIP

shares

obligation;

(4)

adjusting

all

2007

and

2006

periods

to

exclude,

as

applicable,

integration

costs

related

to

acquisitions

and

to

the

BlackRock/MLIM

transaction;

and

(5)

adjusting,

as

appropriate,

for

the

tax

impact

of

these

adjustments.

We

have

provided

these

adjusted

amounts

and

reconciliations

so

that

investors,

analysts,

regulators

and

others

will

be

better

able

to

evaluate

the

impact

of

these

items

on

our

results

for

the

periods

presented,

in

addition

to

providing

a

basis

of

comparability

for

the

impact

of

the

BlackRock

deconsolidation

given

the

magnitude

of

the

impact

of

deconsolidation

on

various

components

of

our

income

statement

and

balance

sheet.

We

believe

that

information

as

adjusted

for

the

impact

of

the

specified

items

may

be

useful

due

to

the

extent

to

which

these

items

are

not

indicative

of

our

ongoing

operations

as

the

result

of

our

management

activities

on

those

operations.

While

we

have

not

provided

other

adjustments

for

the

periods

discussed,

this

is

not

intended

to

imply

that

there

could

not

have

been

other

similar

types

of

adjustments,

but

any

such

adjustments

would

not

have

been

similar

in

magnitude

to

the

amount

of

the

adjustments

shown.

In

certain

discussions,

we

may

also

provide

revenue

information

on

a

taxable-equivalent

basis

by

increasing

the

interest

income

earned

on

tax-exempt

assets

to

make

it

fully

equivalent

to

interest

income

earned

on

taxable

investments.

We

believe

this

adjustment

may

be

useful

when

comparing

yields

and

margins

for

all

earning

assets.

This

presentation

may

also

include

a

discussion

of

other

non-GAAP

financial

measures,

which,

to

the

extent

not

so

qualified

therein

or

in

the

Appendix,

is

qualified

by

GAAP

reconciliation

information

available

on

our

corporate

website

at

www.pnc.com

under

“About PNC –

Investor Relations.”

Cautionary Statement Regarding Forward-Looking

Information and Adjusted Information

Performance validates business model

Investing for the future

Differentiation to drive growth

PNC’s Differentiation

Growing Our Balance Sheet

As of September 30

$77B

$93B

$98B

$131B

Peer

net

loan CAGR

14%

(1) Peer reflects CAGR of the average of the super-regional banks identified in the Appendix other than PNC.

$51B

$42B

$60B

$50B

$65B

$48B

$78B

$65B

Peer

deposit

CAGR

10%

Peer

asset

CAGR

11%

Net loans

Deposits

Assets

1

1

1

2004

2005

2006

2007

Delivering the Bottom Line

2004

2005

2006

2007

For the Nine Months

Ended September 30

$890MM

$970MM

$1.12B

(as adjusted,

$2.22B as reported)

$1.34B

(as adjusted,

$1.29B as reported)

(1)

As

adjusted.

As

reported

net

income

CAGR

13%;

diluted

earnings

per

share

CAGR

7%.

Adjusted

net

income

and

diluted

earnings

per

share

for

the

nine

months

ended

September

30,

2006

and

2007

are

reconciled

to

GAAP

figures

in

the

Appendix.

(2)

Peer

reflects

CAGR

of

the

average

of

the

super-regional

banks

identified

in

the

Appendix

other

than

PNC.

Peer

net

income CAGR

7%

For the Nine Months

Ended September 30

$3.13

$3.35

$3.77

(as adjusted,

$7.46 as reported)

$4.00

(as adjusted,

$3.85 as reported)

Peer

diluted

EPS CAGR

1%

Diluted Earnings Per Share

Net Income

2

2

$0

$1

$2

$3

$4

$5

$6

$7

2004

2005

2006

Revenue

9%

Creating Positive Operating Leverage

Generating Capital by Growing Revenues Faster Than Expenses

billions

Compound Annual

Growth Rate

(2004 –

2006)

Adjusted Revenue

(as reported

$5.5 billion, $6.3 billion, $8.6 billion for 2004, 2005, 2006, respectively)

Adjusted Noninterest

Expense

(as reported $3.7 billion, $4.3 billion, $4.4 billion for 2004, 2005, 2006, respectively)

Adjusted Net Income

(as reported $1.2 billion, $1.3 billion, $2.6 billion for 2004, 2005, 2006, respectively)

Net Income

12%

$1.2

$1.3

$1.5

Expense

7%

Revenue                +20%   

Expense                  +15%

Net Income            +19%

Trend Continues ¹

(1) As reported: revenue (28%), expense (11%), net income (42%).

Adjusted amounts are reconciled to GAAP in the Appendix.

Nine months ended September 30, as adjusted

2007 vs 2006

WB       

0.19 %

RF

0.27

PNC

0.30

CMA

0.32

STI

0.35

KEY

0.35

BBT

0.41

USB

0.54

NCC

0.54

FITB

0.60

WFC

1.02

USB       

318 %

PNC

251

RF

182

CMA

176

BBT

171

KEY

168

WFC

142

WB

117

FITB

117

NCC

113

STI

93

Credit Discipline Reflected in

Reserves and Losses

Proactively Assessing Credits

For the three months ended September 30, 2007.  Source: SNL DataSource, PNC as reported

3Q07

Managing the Risk

3Q07

Net Charge-offs to Average Loans

Reserves to Nonperforming Assets

PNC       

58 %

USB

52

FITB

48

WFC

46

WB

42

STI

42

BBT

42

KEY

41

RF

39

NCC

37

CMA

30

Building a Diversified Business Mix

High Fee Income Contribution

YTD07

(1) For the nine months ended September 30, 2007.  (2) As of September 30, 2007. (3) Reconciled to GAAP in the Appendix.  Source: SNL

DataSource, PNC as reported

Less Net Interest Income Dependent

Noninterest Income to Total Revenue ¹

50%

without

PFPC and

BlackRock ³

PNC  

84 %

RF

101

STI

104

BBT

104

WB

106

KEY

108

WFC

108

FITB

110

NCC

114

CMA

118

USB

121

Loans to Deposits ²

3Q07

Performance validates business model

Investing for the future

Differentiation to drive growth

PNC’s Differentiation

Projected 5-Year Population Growth

$60,949

$56,250

$69,270

$54,620

$73,965

$69,363

$66,273

Median Household Income

Improving Our Demographics

3.7%

6.0%

2.0%

3.4%

8.4%

10.0%

3.9%

2003

Proforma

Acquisitions

2003

Proforma

Acquisitions

Amounts

based

on

data

at

time

of

acquisition

announcement.

United

Trust

data

reflects

demographics

of

footprint

counties

weighted

by

households.

Mercantile,

Yardville

and

Sterling

data

reflect

demographics

of

footprint

counties

of

that

company,

or

by

MSA

in

the

case

of

Riggs,

weighted

by

deposits.

PNC

2003

and

PNC

Proforma

amounts

reflect

demographics,

weighted

by

deposits,

of

PNC’s

68

county

footprint

and

105

county

footprint,

respectively,

including

the

impact

of

PNC’s

ongoing

branch

optimization

process.

PNC

and

Mercantile

headquarter

offices

excluded

for

purposes

of

deposit

weighting.

Source:

SNL

DataSource.

*Pending.

$0

$4

$8

$12

$16

$20

1Q06

3Q07

Asset Management

Service Charges

Brokerage

Corporate Services

Consumer and Other

Executing in the Greater Washington

Area ( “ GWA ” )

40.5%

43.6%

0

25

50

75

100

125

Deepening Relationships and Growing Noninterest Income *

GWA noninterest income

to total revenue

PNC -

GWA Retail Relationships

(1) Riggs transaction completed May 2005

PNC GWA Region

*Excludes the impact of Mercantile

June 30

2005 ¹

Sept 30

2007

PNC -

GWA Fee Growth

+14%

+48%

+45%

+96%

+38%

GWA business checking relationships

GWA consumer checking relationships

1Q06

3Q07

Transforming the Business Model

High Growth Product Focus

Albridge Solutions, Inc.

To…

Integrated

Provider

Leveraging Our Global Fund Servicing

Platform

From

Processor

Unified client views

Performance reporting

$0

$100

$200

$300

$400

$500

$600

$700

Emerging Product

Revenue

Core Product

Revenue

Sept 04

Sept 07

21%

28%

72%

79%

Emerging product

revenue

3-yr CAGR 18%

For the nine months ended

Leveraging Corporate & Institutional

Relationships to Grow Noninterest Income

$0

$200

$400

$600

$800

Major Product Revenue ¹

(1) Represents consolidated PNC amounts

2006

2007

For the nine months ended

Capital Markets

Treasury Management

Midland Loan Services

Commercial Loan Servicing

CMBS Servicing Portfolio

Institutional Servicing Portfolio

Agency Servicing Portfolio

Construction Loan Administration

Government Services

Foreign exchange

Derivatives

Loan syndications

M&A advisory services

Securities underwriting

Securities sales and trading

Cash and investment management

Receivables management

Disbursement services

Funds transfer services

Information reporting

Global trade services

Deepening Relationships with Fee Based Products and Services

Leveraging Corporate & Institutional Banking

Channels to Grow Low Cost Deposits

3Q06

4Q06

3Q07

Corporate & Institutional Banking

Average Deposits

Total deposits

$13.6 billion

Treasury

Management

74%

Midland

25%

Other

1%

Midland

40%

Treasury

Management

59%

For the three months ended

$10.5B

$11.8B

$13.6B

Noninterest bearing

$7.2 billion

$0

$10

$20

$30

$40

$50

Nov Dec  Jan  Feb  Mar  Apr  May Jun  Jul  Aug  Sep  Oct  Nov

2006

CMBS Originations –

A Strategic Business with

Unprecedented Liquidity Issues and Spread Widening

Focused on risk adjusted returns, 

supports our servicing activity

High quality HFS credit portfolio

consistent with moderate risk

profile

Unprecedented market volatility

across entire non-government and

non-agency markets

As of November 30, 2007,

commercial mortgages held for

sale were approximately $1.5B

with $55 million of losses

Committed to the business

0

25

50

75

100

125

Market Volatility Impact on CMBS

10 Year, AAA Spread

over swaps, bps

CMBS Spreads

Nov ’07

+121

2001     2002    2003    2004     2005    2006     2007

US CMBS Securitizations

Context

Sept ’07

+65

Source:  Commercial Mortgage Alert

2007

Performance validates business model

Investing for the future

Differentiation to drive growth

PNC’s Differentiation

Foster

Innovation

Strengthen

the brand

Engage

Employees

Create a

sense of

urgency

PNC’s Differentiation –

Focus on

Execution

Brand Equity Contribution to Market Cap

Home

Appliances

Motor

Vehicles

Restaurants

Toiletries/

Cosmetics

Retailers

Banks

16.1%

14.8%

13.3%

13.3%

11.5%

6.8%

Source:  CoreBrand

Foster

Innovation

Strengthen

the brand

Engage

Employees

Create a

sense of

urgency

PNC’s Differentiation –

Focus on

Execution

Performance validates business model

Investing for the future

Differentiation to drive growth

Summary

Cautionary Statement Regarding

Forward-Looking Information

Appendix

We

make

statements

in

this

presentation,

and

we

may

from

time

to

time

make

other

statements,

regarding

our

outlook

or

expectations

for

earnings,

revenues,

expenses

and/or

other

matters

regarding

or

affecting

PNC

that

are

forward-looking

statements

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act. 

Forward-looking

statements

are

typically

identified

by

words

such

as

“believe,”

“expect,”

“anticipate,”

“intend,”

“outlook,”

“estimate,”

“forecast,”

“will”,

“project”

and

other

similar

words

and

expressions.

Forward-looking

statements

are

subject

to

numerous

assumptions,

risks

and

uncertainties,

which

change

over

time.

Forward-looking

statements

speak

only

as

of

the

date

they

are

made.

We

do

not

assume

any

duty

and

do

not

undertake

to

update

our

forward-looking

statements.

Because

forward-looking

statements

are

subject

to

assumptions

and

uncertainties,

actual

results

or

future

events

could

differ,

possibly

materially,

from

those

that

we

anticipated

in

our

forward-looking

statements,

and

future

results

could

differ

materially

from

our

historical

performance.

Our

forward-looking

statements

are

subject

to

the

following

principal

risks

and

uncertainties.

We

provide

greater

detail

regarding

some

of

these

factors

in

our

Form

10-K

for

the

year

ended

December

31,

2006,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

that

report,

and

in

our

current

quarter

2007

Form

10-Q

and

other

SEC

reports.

Our

forward-looking

statements

may

also

be

subject

to

other

risks

and

uncertainties,

including

those

that

we

may

discuss

elsewhere

in

this

presentation

or

in

our

filings

with

the

SEC,

accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website

at

www.pnc.com

under

“About

PNC

–

Investor

Relations

–

Financial

Information.”

•Our

businesses

and

financial

results

are

affected

by

business

and

economic

conditions,

both

generally

and

specifically

in

the

principal

markets

in

which

we

operate.

In

particular,

our

businesses

and

financial

results

may

be

impacted

by:

•Changes

in

interest

rates

and

valuations

in

the

debt,

equity

and

other

financial

markets.

•Disruptions

in

the

liquidity

and

other

functioning

of

financial

markets,

including

such

disruptions

in

the

markets

for

real

estate

and

other

assets

commonly

securing

financial

products.

•Actions

by

the

Federal

Reserve

and

other

government

agencies,

including

those

that

impact

money

supply

and

market

interest

rates.

•Changes

in

our

customers’,

suppliers’

and

other

counterparties’

performance

in

general

and

their

creditworthiness

in

particular.

•Changes

in

customer

preferences

and

behavior,

whether

as

a

result

of

changing

business

and

economic

conditions

or

other

factors.

•A

continuation

of

recent

turbulence

in

significant

portions

of

the

global

financial

markets

could

impact

our

performance,

both

directly

by

affecting

our

revenues

and

the

value

of

our

assets

and

liabilities

and

indirectly

by

affecting

the

economy

generally.

•Our

operating

results

are

affected

by

our

liability

to

provide

shares

of

BlackRock

common

stock

to

help

fund

certain

BlackRock

long-term

incentive

plan

(“LTIP”)

programs,

as

our

LTIP

liability

is

adjusted

quarterly

(“marked-to-market”)

based

on

changes

in

BlackRock’s

common

stock

price

and

the

number

of

remaining

committed

shares,

and

we

recognize

gain

or

loss

on

such

shares

at

such

times

as

shares

are

transferred

for

payouts

under

the

LTIP

programs.

•Competition

can

have

an

impact

on

customer

acquisition,

growth

and

retention,

as

well

as

on

our

credit

spreads

and

product

pricing,

which

can

affect

market

share,

deposits

and

revenues.

•Our

ability

to

implement

our

business

initiatives

and

strategies

could

affect

our

financial

performance

over

the

next

several

years.

•Legal

and

regulatory

developments

could

have

an

impact

on

our

ability

to

operate

our

businesses

or

our

financial

condition

or

results

of

operations

or

our

competitive

position

or

reputation.

Reputational

impacts,

in

turn,

could

affect

matters

such

as

business

generation

and

retention,

our

ability

to

attract

and

retain

management,

liquidity,

and

funding.

These

legal

and

regulatory

developments

could

include:

(a)

the

unfavorable

resolution

of

legal

proceedings

or

regulatory

and

other

governmental

inquiries;

(b)

increased

litigation

risk

from

recent

regulatory

and

other

governmental

developments;

(c)

the

results

of

the

regulatory

examination

process,

our

failure

to

satisfy

the

requirements

of

agreements

with

governmental

agencies,

and

regulators’

future

use

of

supervisory

and

enforcement

tools;

(d)

legislative

and

regulatory

reforms,

including

changes

to

laws

and

regulations

involving

tax,

pension,

education

lending,

and

the

protection

of

confidential

customer

information;

and

(e)

changes

in

accounting

policies

and

principles.

•Our

business

and

operating

results

are

affected

by

our

ability

to

identify

and

effectively

manage

risks

inherent

in

our

businesses,

including,

where

appropriate,

through

the

effective

use

of

third-party

insurance,

derivatives,

and

capital

management

techniques.

•Our

ability

to

anticipate

and

respond

to

technological

changes

can

have

an

impact

on

our

ability

to

respond

to

customer

needs

and

to

meet

competitive

demands.

•The

adequacy

of

our

intellectual

property

protection,

and

the

extent

of

any

costs

associated

with

obtaining

rights

in

intellectual

property

claimed

by

others,

can

impact

our

business

and

operating

results.

•Our

business

and

operating

results

can

also

be

affected

by

widespread

natural

disasters,

terrorist

activities

or

international

hostilities,

either

as

a

result

of

the

impact

on

the

economy

and

capital

and

other

financial

markets

generally

or

on

us

or

on

our

customers,

suppliers

or

other

counterparties

specifically.

•Also,

risks

and

uncertainties

that

could

affect

the

results

anticipated

in

forward-looking

statements

or

from

historical

performance

relating

to

our

equity

interest

in

BlackRock,

Inc.

are

discussed

in

more

detail

in

BlackRock’s

2006

Form

10-K,

including

in

the

Risk

Factors

section,

and

in

BlackRock’s

other

filings

with

the

SEC,

accessible

on

the

SEC’s

website

and

on

or

through

BlackRock’s

website

at

www.blackrock.com.

We

grow

our

business

from

time

to

time

by

acquiring

other

financial

services

companies,

including

our

pending

Sterling

Financial

Corporation

(“Sterling”)

acquisition.

Acquisitions

in

general

present

us

with

risks

other

than

those

presented

by

the

nature

of

the

business

acquired.

In

particular,

acquisitions

may

be

substantially

more

expensive

to

complete

(including

as

a

result

of

costs

incurred

in

connection

with

the

integration

of

the

acquired

company)

and

the

anticipated

benefits

(including

anticipated

cost

savings

and

strategic

gains)

may

be

significantly

harder

or

take

longer

to

achieve

than

expected.

In

some

cases,

acquisitions

involve

our

entry

into

new

businesses

or

new

geographic

or

other

markets,

and

these

situations

also

present

risks

resulting

from

our

inexperience

in

these

new

areas.

As

a

regulated

financial

institution,

our

pursuit

of

attractive

acquisition

opportunities

could

be

negatively

impacted

due

to

regulatory

delays

or

other

regulatory

issues.

Regulatory

and/or

legal

issues

related

to

the

pre-acquisition

operations

of

an

acquired

business

may

cause

reputational

harm

to

PNC

following

the

acquisition

and

integration

of

the

acquired

business

into

ours

and

may

result

in

additional

future

costs

arising

as

a

result

of

those

issues.

Any

annualized,

proforma,

estimated,

third

party

or

consensus

numbers

in

this

presentation

are

used

for

illustrative

or

comparative

purposes

only

and

may

not

reflect

actual

results.

Any

consensus

earnings

estimates

are

calculated

based

on

the

earnings

projections

made

by

analysts

who

cover

that

company.

The

analysts’

opinions,

estimates

or

forecasts

(and

therefore

the

consensus

earnings

estimates)

are

theirs

alone,

are

not

those

of

PNC

or

its

management,

and

may

not

reflect

PNC’s,

Sterling’s

or

other

company’s

actual

or

anticipated

results.

Cautionary Statement Regarding

Forward-Looking Information (continued)

Appendix

The

PNC

Financial

Services

Group,

Inc.

and

Sterling

Financial

Corporation

will

be

filing

a

proxy

statement/prospectus

and

other

relevant

documents

concerning

the

merger

with

the

United

States

Securities

and

Exchange

Commission

(the

“SEC”).

WE

URGE

INVESTORS

TO

READ

THE

PROXY

STATEMENT/PROSPECTUS

AND

ANY

OTHER

DOCUMENTS

TO

BE

FILED

WITH

THE

SEC

IN

CONNECTION

WITH

THE

MERGER

OR

INCORPORATED

BY

REFERENCE

IN

THE

PROXY

STATEMENT/PROSPECTUS

BECAUSE

THEY

WILL

CONTAIN

IMPORTANT

INFORMATION.

Investors

will

be

able

to

obtain

these

documents

free

of

charge

at

the

SEC’s

web

site

at

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

Sterling

Financial

Corporation

will

be

available

free

of

charge

from

Sterling

Financial

Corporation

by

contacting

Shareholder

Relations

at

(877)

248-6420.

The

directors,

executive

officers,

and

certain

other

members

of

management

and

employees

of

Sterling

Financial

Corporation

are

participants

in

the

solicitation

of

proxies

in

favor

of

the

merger

from

the

shareholders

of

Sterling

Financial

Corporation.

Information

about

the

directors

and

executive

officers

of

Sterling

Financial

Corporation

is

included

in

the

proxy

statement

for

its

May

8,

2007

annual

meeting

of

shareholders,

which

was

filed

with

the

SEC

on

April

2,

2007.

Additional

information

regarding

the

interests

of

such

participants

will

be

included

in

the

proxy

statement/prospectus

and

the

other

relevant

documents

filed

with

the

SEC

when

they

become

available.

Additional Information About The PNC/Sterling

Financial Corporation Transaction

Appendix

CMBS Supplemental Information

Appendix

PNC CMBS Portfolio

Spread Volatility

0

2

4

6

8

10

12

14

10 Year, AAA CMBS vs swaps, bps

Weekly CMBS Spread Volatility

(03/29/05 –

12/04/07)

2005      

2006                        2007

Source:  JPMorgan

08/01/07

11/19/07

High quality portfolio

- Internal assessment of 85%+

AAA equivalent

- Modest level of kick - outs

- Weighted average loan to

value of 72% with

conservative escrows

- Average debt service

coverage of 1.3x with 90%+

amortizing loans versus

common trend of extended

term interest-only financing

Non-GAAP to GAAP

Reconcilement

Earnings Summary –

Nine Months Ended

Appendix

NINE MONTHS ENDED

In millions, except per share data

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Net income, as reported

$1,289

$3.85

$2,219

$7.46

Adjustments:

  BlackRock LTIP (a)

$(1)

(1)

                  

  Integration costs (b)

72

                

49

                

.15

               

$91

39

                

.13

               

  Gain on BlackRock/MLIM transaction (c)

(2,078)

(1,293)

          

(4.35)

            

  Securities portfolio rebalancing loss (c)

196

127

              

.43

               

  Mortgage loan portfolio repositioning loss (c)

48

31

                

.10

               

Net income, as adjusted

$1,337

$4.00

$1,123

$3.77

September 30

NINE MONTHS ENDED

2004

2005

2006

2007

CAGR

Net income, as reported

$890

$970

$2,219

$1,289

13%

Net income, as adjusted

890

970

1,123

1,337

15%

Diluted earnings per share, as reported

3.13

3.35

7.46

3.85

7%

Diluted earnings per share, as adjusted

$3.13

$3.35

$3.77

$4.00

9%

(c) Included in noninterest income on a pretax basis.

September 30, 2007

September 30, 2006

(a)

Includes

the

impact

of

the

gain

recognized

in

connection

with

PNC's

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

PNC's

BlackRock

LTIP

shares

obligation

and

the

net mark-to-market adjustment on PNC's remaining BlackRock LTIP shares obligation.

(b)

In

addition

to

acquisition

integration

costs

related

to

recent

or

pending

PNC

acquisitions

reflected

in

the

2007

period

presented,

both

the

2007

and

the

2006

periods

presented

include

BlackRock/MLIM

transaction

integration

costs.

BlackRock/MLIM

transaction

integration

costs

recognized

by

PNC

for

the

first

nine

months

of

2007

were

included

in

noninterest

income

as

a

negative

component

of

the

"Asset

management"

line

item,

which

includes

the

impact

of

PNC's

equity

earnings

from

PNC's

investment

in

BlackRock. The first nine months of 2006 BlackRock/MLIM transaction integration costs were included in noninterest expense.

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

For the Nine Months Ended September 30

Appendix

NINE MONTHS ENDED

In millions

As Reported 

Adjustments

As Adjusted (a) 

As Reported 

Adjustments

As Adjusted (b)

Net interest income

$2,122

$2,122

$1,679

($10)

$1,669

Net interest income:

% Change As

Reported

% Change As

Adjusted

     Loans

806

              

806

             

682

              

(10)

             

672

           

18%

20%

     Deposits

1,316

           

1,316

          

997

              

997

           

32%

32%

Noninterest Income

2,956

           

$4

2,960

          

5,358

           

(2,777)

        

2,581

         

(45%)

15%

Total revenue

5,078

           

4

                

5,082

          

7,037

           

(2,787)

        

4,250

         

(28%)

20%

Loan net interest income as a % of total revenue

15.9%

15.9%

9.7%

15.8%

Deposit net interest income as a % of total revenue

25.9%

25.9%

14.2%

23.5%

Noninterest income as a % of total revenue

58.2%

58.2%

76.1%

60.7%

Provision for credit losses

127

127

82

82

Noninterest income

2,956

4

                

2,960

5,358

(2,777)

        

2,581

Noninterest expense

3,083

(67)

3,016

3,474

(856)

2,618

(11%)

15%

     Income before minority interest

        and income taxes

1,868

71

              

1,939

3,481

(1,931)

1,550

Minority interest in income

   of BlackRock

47

(47)

Income taxes

579

23

602

1,215

(788)

427

     Net income

$1,289

$48

$1,337

$2,219

($1,096)

$1,123

(42%)

19%

OPERATING LEVERAGE - NINE MONTHS ENDED

As Reported

As Adjusted

Total revenue

(28%)

20%

Noninterest expense

(11%)

15%

Operating leverage 

(17%)

5%

(a)

Amounts

adjusted

to

exclude

the

impact

of

the

following

pretax

items:

(1)

the

gain

of

$83

million

recognized

in

connection

with

PNC's

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

our

BlackRock

LTIP

shares

obligation,

(2)

the

net

mark-to-market

adjustment

totaling

$82

million

on

our

remaining

BlackRock

LTIP

shares

obligation,

and

(3)

acquisition

and

BlackRock/MLIM

transaction integration costs totaling $72 million.  The net tax impact of these items is reflected in the adjustment to income taxes.

(b)

Amounts

adjusted

to

exclude

the

impact

of

the

following

pretax

items:

(1)

the

gain

of

$2.078

billion

on

the

BlackRock/MLIM

transaction,

(2)

the

loss

of

$196

million

on

the

securities

portfolio

rebalancing,

(3)

BlackRock/MLIM

transaction

integration

costs

of

$91

million

for

the

first

nine

months

of

2006,

and

(4)

the

mortgage

loan

portfolio

repositioning

loss

of

$48

million.

The

net

tax

impact

of

these

items

is

reflected

in

the

adjustment

to

income

taxes.

We

believe

that

information

as

adjusted

for

the

impact

of

these

items

may

be

useful

due

to

the

extent

to

which

these

items

are

not

indicative

of

our

ongoing

operations

as

the

result

of

our

management

activities.

Additionally,

the

amounts

are

also

adjusted

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method.

We

believe

that

providing

amounts

adjusted

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method

for

all

periods

presented

helps

provide

a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact on various components of our consolidated income statement.

2006 to 2007 Change

September 30, 2007

September 30, 2006

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

For the Three Months Ended

Appendix

For the three months ended September 30, 2007

PNC

PNC

In millions

As Reported

Adjustments (a)

As Adjusted

Reported

Adjusted

Net interest income

$761

$761

Loan net interest income

294

294

5%

5%

Deposit net interest income

467

467

2%

2%

Provision for credit losses

65

65

     Net interest income less provision for credit losses

696

696

Asset management

204

$2

206

Other

786

50

836

     Total noninterest income

990

52

1,042

2%

7%

Compensation and benefits

553

(16)

537

Other

546

(25)

521

     Total noninterest expense

1,099

(41)

1,058

6%

3%

Income before income taxes

587

93

680

Income taxes

180

31

211

     Net income

$407

$62

$469

(4%)

8%

For the three months ended June 30, 2007

PNC

PNC

In millions

As Reported

Adjustments (b)

As Adjusted

Net interest income

$738

$738

Loan net interest income

280

280

Deposit net interest income

458

458

Provision for credit losses

54

54

     Net interest income less provision for credit losses

684

684

Asset management

190

$1

191

Other

785

1

786

     Total noninterest income

975

2

977

Compensation and benefits

544

(9)

535

Other

496

(6)

490

     Total noninterest expense

1,040

(15)

1,025

Income before income taxes

619

17

636

Income taxes

196

6

202

     Net income

$423

$11

$434

% Change vs. June 30, 2007

(a)

Includes

the

impact

of

the

following

items

on

a

pretax

basis:

$50

million

net

loss

related

to

our

BlackRock

LTIP

shares

obligation

and

$43

million

of

acquisition

and

BlackRock/MLIM transaction integration costs.  The net tax impact of these items is reflected in the adjustment to income taxes.

(b)

Includes

the

impact

of

the

following

items

on

a

pretax

basis:

$16

million

of

acquisition

and

BlackRock/MLIM

transaction

integration

costs

and

$1

million

net

loss

related to our BlackRock LTIP shares obligation.  The net tax impact of these items is reflected in the adjustment to income taxes.

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2006

Appendix

BlackRock

For the year ended December 31, 2006

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Adjustments (a)

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,245

$(10)

$2,235

Provision for credit losses

124

124

Noninterest income

6,327

$(1,812)

(1,087)

$144

3,572

Noninterest expense

4,443

(91)

(765)

3,587

Income before minority interest and income taxes

4,005

(1,721)

(332)

144

2,096

Minority interest in income of BlackRock

47

18

(65)

Income taxes

1,363

(658)

(130)

7

582

   Net income

$2,595

$(1,081)

$(137)

$137

$1,514

For the year ended December 31, 2005

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,154

$(12)

$2,142

Provision for credit losses

21

21

Noninterest income

4,173

(1,214)

$163

3,122

Noninterest expense

4,306

(853)

3,453

Income before minority interest and income taxes

2,000

(373)

163

1,790

Minority interest in income of BlackRock

71

(71)

Income taxes

604

(150)

11

465

   Net income

$1,325

$(152)

$152

$1,325

(a)

Includes

the

impact

of

the

following

items,

all

on

a

pretax

basis,

and

adjustment

for

the

tax

impact

thereof:

$2,078

million

gain

on

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

of

BlackRock/MLIM

transaction

integration

costs,

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12 million net loss related to our BlackRock LTIP shares obligation.

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2006 (continued)

Appendix

For the year ended December 31, 2004

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$1,969

$(14)

$1,955

Provision for credit losses

52

52

Noninterest income

3,572

(745)

$101

2,928

Noninterest expense

3,712

(564)

3,148

Income before minority interest and income taxes

1,777

(195)

101

1,683

Minority interest in income of BlackRock

42

(42)

Income taxes

538

(59)

7

486

   Net income

$1,197

$(94)

$94

$1,197

CAGR

In millions

2004

2005

2006

As Adjusted

Adjusted net interest income

$1,955

$2,142

$2,235

Adjusted noninterest income

2,928

3,122

3,572

Adjusted total revenue

4,883

5,264

5,807

9%

Adjusted noninterest expense

3,148

3,453

3,587

7%

Adjusted net income

$1,197

$1,325

$1,514

12%

In millions

2004

2005

2006

CAGR

Net interest income, as reported

$1,969

$2,154

$2,245

Noninterest income, as reported

3,572

4,173

6,327

Total revenue, as reported

5,541

6,327

8,572

24%

Noninterest expense, as reported

3,712

4,306

4,443

9%

Net income, as reported

$1,197

$1,325

$2,595

47%

Non-GAAP to GAAP

Reconcilement

Business Segments

Appendix

Nine Months Ending September 30, 2007

Dollars in millions

Retail

Banking

Corporate &

Institutional

Banking

Other

Banking and

Other

BlackRock

PFPC

Total

Net interest income (expense)

$1,517

$571

$48

$2,136

($14)

$2,122

Noninterest income

1,280

        

558

           

260

           

2,098

        

$227

631

           

2,956

        

Total Revenue

$2,797

$1,129

$308

$4,234

$227

$617

$5,078

Noninterest income as a % of

total revenue

46%

49%

84%

50%

100%

102%

58%

Dollars in millions

2007

% of Segments

2006

% Change

Retail Banking

$678

53%

$581

17%

Corporate & Institutional Banking

341

26%

328

4%

BlackRock (a)

176

14%

137

28%

PFPC

96

7%

93

3%

     Total business segment earnings

1,291

1,139

Other (a)(b)

(2)

1,080

Total consolidated net income

$1,289

$2,219

Nine Months Ending September 30

Earnings (Loss)

(a)

For

our

segment

reporting

presentation

in

management's

discussion

and

analysis,

after-tax

BlackRock/MLIM

transaction

integration

costs

totaling

$4

million

and

$56

million

for

the

nine

months

ended

September

30,

2007

and

September

30,

2006

have

been

reclassified

from

BlackRock

to

"Other."

"Other"

for

the

first

nine

months

of

2007

also

includes

$45

million

of

after-tax

Mercantile

acquisition

integration costs.

(b) "Other" for the first nine months of 2006 included the $2,078 million pre-tax, or $1,293 million after-tax, gain on the BlackRock/MLIM

transaction recorded in the third quarter of 2006.

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

National City Corporation

NCC

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wachovia Corporation

WB

Wells Fargo & Company

WFC

Ticker

Peer Group of

Super-Regional Banks

Appendix