This Session: Financial Status of Bank

This Session
Partner in Building Corporate & Personal EQuity
EQuity Consulting
 Financial status of bank

• Risk
 Type
 Measure
• Manipulation?
©EQCC 1
HKMA… key risks
EQuity Consulting
©EQCC
2
Credit risk
EQuity Consulting
…the potential variation in net income and market value of equity resulting from
nonpayment or delayed payment on loans and securities
 Three Question need to be addressed:
• What has been the loss experience?
• What amount of losses do we expect?
• How prepared is the bank?
©EQCC 3
Credit ratios to consider
EQuity Consulting
 What has been the loss experience?

• Net loss to average total LN&LS
 Gross losses to average total LN&LS
 Recoveries to avg. total LN&LS (30% ~ 40% commercial loans)
• Recoveries to prior period losses
• Net losses by type of LN&LS (e.g., mortg v. commercial v. credit card)
 What amount of losses do we expect?

• Non-current LN&LS to total loans
• Total Past/Due LN&LS - including nonaccrual
• Non-current & restructure LN&LS / Gross LN&LS
• Current - Non-current & restruc/ Gr LN&LS
• Past due loans by loan type
©EQCC 4
Credit ratios to consider (continued)
EQuity Consulting
 How prepared are we?

• Provision for loan loss to: average assets and average total LN&LS
• LN&LS Allowance to: net losses and total LN&LS
• Earnings coverage of net loss
©EQCC 5
Credit risk ratios :
PNC and Community National
EQuity Consulting
PNC BANK, NATIONAL ASSOCIATION COMMUNITY NATIONAL BANK

Dec-03 Dec-04 Dec-03 Dec-04
RISK RATIOS Pg # CALC BANK PG 1 CALC BANK PG 1 CALC BANK PG 4 CALC BANK PG 4
Credit Risk
Gross loss / Avg. tot LN&LS 7 0.73% 0.73% 0.53% 0.40% 0.40% 0.36% 0.54% 0.54% 0.26% 0.21% 0.21% 0.20%
Net loss / Avg. tot LN&LS 7 0.59% 0.59% 0.41% 0.28% 0.28% 0.25% 0.53% 0.53% 0.21% 0.20% 0.20% 0.16%
Recoveries / Avg. tot LN&LS 7 0.13% 0.13% 0.12% 0.12% 0.12% 0.11% 0.01% 0.01% 0.06% 0.02% 0.02% 0.05%
Recoveries to prior credit loss 7 19.0% 19.03% 22.26%
0.00% 19.5% 19.52% 23.76%
#NA 0.00% #NA 6.7%
0.00% 6.75% 29.21% 3.1% 3.08%
#NA 0.00% 24.53%
#NA
90 days past due / EOP LN&LS 8A 0.21% 0.21% 0.13% 0.13% 0.13% 0.10% 0.16% 0.16% 0.13% 0.00% 0.00% 0.10%
total Nonaccrual LN&LS / EOP LN&LS 8A 0.79% 0.79% 0.66% 0.33% 0.33% 0.46% 0.19% 0.19% 0.47% 0.16% 0.16% 0.41%
total Noncurrent / EOP LN&LS 8A 1.00% 1.00% 0.83%
#NA 0.46% 0.46% 0.59%#NA 0.35% 0.35% 0.66%
#NA 0.16% 0.16% 0.55%
#NA
LN&LS Allowance to total LN&LS 7 1.77% 1.78% 1.44% 1.34% 1.35% 1.27% 1.07% 1.07% 1.25% 1.23% 1.23% 1.20%
LN&LS Allowance / Net losses 7 2.9x 2.92x 4.18x 5.2x 5.23x 7.51x 2.1x 2.08x 11.89x 6.7x 6.71x 14.52x
LN&LS Allowance / total nonaccural LN&LS7 1.77x 2.24x 2.73x 2.92x 4.12x 3.73x 3.05x 5.49x 4.35x 7.77x 7.77x 5.63x
Earn Coverage of net losses 7 7.44x 7.44x 10.92x 11.61x 11.61x 19.94x 2.57x 2.57x 23.89x 10.38x 10.38x 30.80x
Net Loan and lease growth rate 1 -4.55%
0.00% -4.55% 10.14% 27.51%
0.00% 27.51% 17.96% 2.16%
0.00% 2.16% 11.61% 11.49%
0.00% 11.49% 14.24%
©EQCC 6
Liquidity risk
EQuity Consulting
…the variation in net income and market value of equity caused by a bank's difficulty
in obtaining cash at a reasonable cost from either the sale of assets or new
borrowings
 Banks can acquire liquidity in two distinct ways:
• By liquidation of assets
 Composition of loans & investments
 Maturity of loans & investments
 Percent of loans and investments pledged as collateral
• By borrowing (liabilities)
 Core deposits
 Volatile deposits
 Asset quality & stockholders’ equity
©EQCC 7
Liquidity risk ratios :
EQuity Consulting

RISK RATIOS Pg # CALC
0.00% BANK PG 1 CALC
0.00% BANK PG 4
Liquidity Risk
%Total (EOP) Assets (except where noted)
Total equity 11 9.07% 9.07% 8.95% 8.26% 8.26% 9.74% 7.29% 7.29% 9.28% 7.23% 7.23% 9.42%
Core deposits 10 67.41% 66.75% 53.75% 64.84% 63.23% 54.19% 84.26% 84.95% 71.85% 85.00% 85.04% 71.10%
S.T Non-core funding 10 #N/A 11.47% 23.24% #N/A 12.11% 23.42% #N/A 4.10% 11.90% #N/A 4.84% 12.21%
Net loans & leases / Total Deposits 10 73.73% 73.73% 87.72% 81.00% 81.00% 88.28% 65.90% 65.90% 78.94% 67.35% 67.35% 81.42%
Net loans & leases / Core Deposits 10 81.11% 81.11% 115.16% 91.76% 91.76% 116.10% 71.36% 71.36% 93.85% 72.89% 72.89% 97.58%
Avg. Available for sale securities / aTA 6 21.41% 21.90% 21.11% 22.12% 22.03% 21.00% 14.44% 13.39% 15.88% 19.38% 19.04% 15.80%
Short-term investments 10 #N/A 2.73% 6.25% #N/A 3.02% 5.23% #N/A 5.99% 5.41% #N/A 5.72% 5.26%
Pledged securities 10 #N/A
0.00% 46.50% 49.08% #N/A
0.00% 51.76% 54.78% #N/A
0.00% 29.25% 40.34% #N/A
0.00% 28.49% 41.20%
©EQCC 8
Market risk
EQuity Consulting
 …the risk to a financial institution’s condition resulting from adverse movements

in market rates or prices
 Market risk arises from changes in:
• Interest rates
• Foreign exchange rates
• Equity, commodity and security prices
©EQCC 9
Interest rate risk = bank's net interest income and
market value of equity
EQuity Consulting
Example: $10,000 Car loan

4 year fixed-rate car loan at 8.5%
1 year CD at 4.5%
Spread 4.0%
But for How long?
Funding GAP
GAP = $RSA - $RSL,
where $RSA = $ amount of assets expected to reprice in a give period of time.
In this example:
GAP1yr = $0 - $10,000 = - $10,000
This is a negative GAP.
©EQCC 10
Foreign exchange risk
EQuity Consulting
… the risk to a financial institution’s condition resulting from adverse movements in

foreign exchange rates
 Foreign exchange risk arises from changes in foreign exchange rates that affect
the values of assets, liabilities, and off-balance sheet activities denominated in
currencies different from the bank’s domestic (home) currency.
 This risk is also often found in off-balance sheet loan commitments and guarantees
denominated in foreign currencies; foreign currency translation risk
©EQCC 11
Equity and security price risk
EQuity Consulting
 …change in market prices, interest rates and foreign exchange rates affect the
market values of equities, fixed income securities, foreign currency holdings, and
associated derivative and other off-balance sheet contracts
 Large banks must conduct value-at-risk analysis to assess the risk of loss with
their trading account portfolios.
©EQCC 12
Operational risk (people and systems)
EQuity Consulting
 …measures the cost efficiency of the bank's activities; i.e., expense control or
productivity; also measures whether the bank has the proper procedures and
systems in place .
 Typical ratios focus on:
• total assets per employee
• total personnel expense per employee
• Non-interest expense ratio
 There is no meaningful way to estimate the likelihood of fraud or other

contingencies from published data.
 A bank’s operating risk is closely related to its operating policies and processes
and whether is has adequate controls.
©EQCC 13
Operational risk (straight definition)
EQuity Consulting
 The risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events (Basel II, also see EU Solvency II Directive for
insurers)
 also include other classes of risk, such as fraud, security, terrorism, privacy
protection, legal risks, physical (e.g. infrastructure shutdown) or environmental
risks… as well as country, political etc.
 … as such, op risks affect client satisfaction, reputation and shareholder value, all
while increasing business volatility
 Contrary to credit risk and market risk, op risks: usually not willingly incurred,
nor revenue driven. Also, they are not diversifiable and cannot be eliminated, as
long as people, systems and processes remain imperfect, e.g., 911, rogue trading
losses at SocGen, Barings, UBS etc.
 Increasing due to globalization, the rise of social media
©EQCC
14
Operational risk (wide definition and exclusions)
EQuity Consulting
 Basel recognizes that op risk has a variety of meanings
• CS (2014), “operational risk is a broad discipline, close to good management and quality
management”
 …therefore, for internal purposes, banks are permitted to adopt their own
definitions of op risk, provided that the min. elements in the Committee's
definition are included, e.g. reputational risk arising from op. failures
 Basel II definition of op risk excludes, for example, strategic risk – the risk of a
loss arising from a poor strategic business decision.
©EQCC
15
Types of Op. risk (Basel II)
EQuity Consulting
 Internal Fraud, e.g., intentional mismarking of positions

 External Fraud, e.g., theft of info, hacking, forgery
• A key example these days: AML
 Employment Practices/Workplace, e.g., discrimination

 Client, Products and Bus., e.g., market manipulation
 Damage to Physical Assets, e.g., vandalism
 Bus. Disruption/Systems Failure, e.g., power
 Execution, Delivery and Process, e.g., fat fingers
©EQCC
16
Op: People
EQuity Consulting
©EQCC
17
EQuity Consulting
©EQCC
18
EQuity Consulting
©EQCC
19
Who’s in WTC-1, Fl 68 - 74
EQuity Consulting
©EQCC
20
EQuity Consulting
©EQCC
21
EQuity Consulting
©EQCC
22
Operational risk (e-bankng)
EQuity Consulting
 E-banking: a key risk associated with operations, usually

• frauds,
• cyber threats,
• information leakages,
• service disruptions or
• system processing errors.
©EQCC
23
Operational risk (e-bankng)
EQuity Consulting
 Especially when e-banking usually entails
 (i) provision of services to a sizeable group over
 a network or
 via terminals or devices that are beyond AIs’ direct control
 (ii) reliance on multiple service providers (e.g., vendors of the terminals or devices,
telecommunication network etc.)
 (iii) complicated system architecture or processing logics that supports real-time transactions
around the clock  s.t. the threat of cyber-attack
©EQCC
24
Operational risk measurements
EQuity Consulting
 no meaningful way to estimate the likelihood of fraud or other contingencies from

published data.
 BIS: size driven, e.g.,
• Gross Income (for IB, brokers,)
• An. Ave. Assets (for Banks,)
• AUM (for AM) etc.
 Internal mgmt: efficiency (cost) of activities, also measures whether the bank has
proper procedures and systems in place. Typical ratios focus on:
• total assets per employee
• total personnel expense per employee
• Non-interest expense ratio
©EQCC
25
Operational risk ratios:
EQuity Consulting

RISK RATIOS Pg # CALC
0.00% BANK PG 1 CALC0.00% BANK PG 1 CALC
0.00% BANK PG 4
Operational Risk
Total Assets / Number of employees 3 $4.09 $ 4.02 $ 5.17 $4.71 $ 4.44 $ 6.09 $3.00 $ 2.75 $ 2.95 $2.98 $ 2.84 $ 3.08
Personnel expense / number of employees 3 73.43x 72.06x 60.48x 90.68x 85.48x 65.26x 65.46x 60.03x 48.27x 61.47x 58.58x 50.10x
Efficiency ratio 3 60.93% 60.86% 57.73% 68.01% 67.97% 57.92% 82.72% 82.75% 66.06% 75.35% 75.34% 65.99%
©EQCC 26
Legal Risk
EQuity Consulting
…the potential that unenforceable contracts, lawsuits, or adverse judgments can

disrupt or otherwise negatively affect the operations or condition of the banking
organization
Legal risk includes:
 Compliance risks
 Strategic risks
 General liability issues
©EQCC
27
Legal Risk
EQuity Consulting
©EQCC
28
Reputational Risk
EQuity Consulting
 Reputational risk is the potential that negative publicity regarding an institution’s

business practices, whether true or not, will cause a decline in the customer base,
costly litigation, or revenue reductions.
©EQCC
29
Reputational Risk
EQuity Consulting
©EQCC
30
Reputational Risk
EQuity Consulting
©EQCC
31
Strategic Risk
EQuity Consulting
 arising from poor business decisions, improper implementation of decisions or

lack of response to industry, economic or technological changes.
 This risk is a function of the incompatibility for an organization’s directionS
and/or the resources deployed with significant current and prospective impacts on
earnings, capital, reputation or standing
©EQCC
32
Strategic Risk
EQuity Consulting
©EQCC
33
Bank Risk Measures by Size
EQuity Consulting
All
$100M - $1B - Trend Commercial
Assets Size < $100M $1B $10B > $10B with Size Banks
Asset Quality 
Net charge-offs to LN&LS 0.27 0.31 0.43 0.73  0.63
Loss allow to Noncurr LN&LS 151.5 196.2 206.0 168.0  then  174.6
LN&LS provision to net charge-offs 134.2 125.7 125.5 83.0  89.9
Loss allowance to LN&LS 1.44 1.39 1.47 1.53  1.50
Net LN&LS to deposits 72.67 82.11 92.82 86.68  then  86.38
Capital Ratios 
Core capital (leverage) ratio 11.31 9.47 9.36 7.23  7.83
Tier 1 risk-based capital ratio 16.83 12.85 12.34 9.11  10.04
Total risk-based capital ratio 17.93 14.06 13.92 12.07  12.62
Structural Changes
New Charters 118 2 1 1  122
Banks absorbed by mergers 102 125 30 7  264
Failed banks 3 0 0 0  3

©EQCC 34
Strategies for Maximizing Shareholder Wealth
EQuity Consulting
 Asset Management
• Composition and Volume
 Liability Management
• Composition and Volume
 Management of off-balance sheet activities

 Net interest margin management
 Credit risk management
 Liquidity management
 Management of non-interest expense
 Securities gains/losses management
 Tax management
©EQCC 35
CAMELS
EQuity Consulting
 Capital Adequacy
• Measures bank’s ability to maintain capital commensurate with the bank’s risk
 Asset Quality
• Reflects the amount of credit risk with the loan and investment portfolios
 Management Quality
• Reflects management’s ability to identify, measure, monitor, and control risks
 Earnings
• Reflects the quantity, trend, and quality of earnings
 Liquidity
• Reflects the sources of liquidity and funds management practices
 Sensitivity to market risk

• Reflects the degree to which changes in market prices and rates adversely affect earnings and
capital
©EQCC 36
CAMELS Ratings
EQuity Consulting
 Regulators assign a rating of 1 (best) to 5 (worst) in each of the six categories and
an overall composite rating
• 1 or 2 indicates a fundamentally sound bank
• 3 indicates that a bank shows some underlying weakness that should be corrected
• 4 or 5 indicates a problem bank
©EQCC 37
Performance Characteristics of Banks by Business
Concentration and Size
EQuity Consulting
 Wholesale Banks
• Focus on loans for the largest commercial customers and purchase substantial funds from
corporate and government depositors
 Retail Banks
• Focus on consumer, small business, mortgage, and agriculture loans and obtain deposits form
individuals and small businesses
©EQCC 38
Profitability Measures of Banks by Business
Concentration
EQuity Consulting
Asset Concentration Groups

All Comm- Con – Other All All
Credit Inter - Ag. Mort -
Institu ercial summer spec. < Other Other
Card national Lending gage
Lending Lending $1B <$1B > $1B
# of institutions reporting 8,975 34 5 1,730 4,424 990 132 465 1,120 75
Commercial banks 7,630 30 5 1,725 4,019 250 101 414 1,026 60
Savings institutions 1,345 4 0 5 405 740 31 51 94 15
Performance ratios (%)
Return on equity 13.28 22.16 10.35 11.45 13.48 11.61 16.81 10.03 10.18 13.69
Return on assets 1.29 4.01 0.76 1.23 1.30 1.18 1.66 1.66 1.10 1.35
Pretax ROA 1.90 6.21 1.09 1.51 1.89 1.81 2.56 2.43 1.41 1.98
Equity capital ratio 10.28 20.52 8.05 10.79 10.09 10.55 11.36 16.94 10.79 10.25
Net interest margin 3.53 9.05 2.50 4.07 3.86 3.05 4.71 3.20 3.86 3.27
Yield on earning assets 5.02 11.25 4.02 5.68 5.26 4.80 6.88 4.54 5.40 4.54
Cost of funding earn assets 1.49 2.20 1.52 1.61 1.40 1.75 2.17 1.33 1.53 1.27
Earning assets to total assets 87.13 82.95 81.47 91.91 90.18 92.17 90.73 88.93 92.11 84.36
Efficiency ratio 58.03 45.29 70.16 62.07 57.10 56.46 45.53 72.42 66.92 57.71
Burden 0.97 -2.15 0.75 2.08 1.40 1.07 0.78 0.34 2.01 0.84
Noninterest inc to earn assets 2.13 11.18 2.51 0.69 1.51 1.20 2.26 6.55 1.16 1.96
Noninterest exp to earn assets 3.10 9.03 3.26 2.77 2.91 2.27 3.04 6.89 3.17 2.80
LN&LS loss provision to assets 0.30 3.96 0.25 0.16 0.22 0.08 1.05 0.11 0.17 0.07
©EQCC 39
Risk Measures of Banks by Business Concentration
EQuity Consulting
Asset Concentration Groups

All Comm- Con – Other All All
Credit Inter - Ag. Mort -
Institu ercial summer spec. < Other Other
Card national Lending gage
Lending Lending $1B <$1B > $1B
Asset Quality
Net charge-offs to LN&LS 0.56 4.67 0.91 0.21 0.30 0.12 1.57 0.59 0.31 0.25
Loss allow to Noncurr LN&LS 167.8 215.8 135.3 156.7 206.3 97.1 259.4 168.4 155.3 156.3
LN&LS provs. to net charge-offs 90.6 108.8 63.1 118.3 105.2 100.2 85.5 67.3 99.4 52.0
Loss allowance to LN&LS 1.34 4.27 1.74 1.43 1.30 0.53 1.66 1.66 1.34 1.16
Net LN&LS to deposits 91.69 239.79 69.91 76.64 93.90 120.82 135.96 33.54 67.56 80.51
Capital Ratios
Core capital (leverage) ratio 8.12 16.64 6.05 10.37 8.29 9.10 8.82 15.17 10.38 7.20
Tier 1 risk-based capital ratio 10.76 14.59 8.38 14.71 10.14 15.36 13.07 34.70 17.32 9.45
Total risk-based capital ratio 13.19 17.34 12.03 15.82 12.18 16.86 14.62 35.95 18.55 12.12
Structural Changes
New Charters 128 0 0 5 35 4 1 77 5 1
Banks absorbed by mergers 322 1 2 24 210 26 13 6 20 20
Failed institutions 4 0 0 0 3 0 0 0 1 0
SOURCE: FDIC Quarterly Banking Profile, http://www.fdic.gov/, http://www2.fdic.gov/qbp.
©EQCC 40
Financial Statement Manipulation
EQuity Consulting
 Off-balance sheet activities

• Enron and “Special-Purpose Vehicles”
 Window dressing
• Eliminate Fed borrowing prior to financial statement reporting date
• Increase asset size prior to year-end
 Preferred stock
• Meets capital requirements but causes NIM, NI, ROE, and ROA to be overstated
©EQCC 41
Financial Statement Manipulation (continued)
EQuity Consulting
 Non-performing loans
• Banks may lend borrower funds to make payments on past due loans, understating non-
performance status
 Allowance for loan losses

• Management discretion and IRS regulations may be in conflict
©EQCC 42
Financial Statement Manipulation (continued)
EQuity Consulting
 Securities gains and losses

• Banks often classify all investment securities as “available for sale,” overstating any true
“gains or losses”
 Non-recurring sales of assets

• This type of transaction is not part of the bank’s daily activities and typically cannot be
repeated; thus it overstates earnings
©EQCC 43
(UBPR users manual)
UBPR format http://www.ffiec.gov/UBPR.htm
EQuity Consulting
 Cover page 00
• Contains basic descriptive information on the bank, its location, charter and certification numbers,
and a brief description of the peer group included.
 Summary Ratios01
• Basic summary information on the bank include return on assets; interest and non-interest income
and expenses as a percentage of assets.
• Risk summary measures on the loan portfolio; liquidity; capitalization; and growth rates are also
included.
 Income Information
• Income Statement - Revenues and Expenses 02
 Detailed income statement, in $1,000 of dollars.
• Noninterest Income and Expenses and Yields 03
 On this page the FDIC mixes additional detail on noninterest income and expenses in $1,000
of dollars with ratio (% of assets) of these same numbers.
 In addition, the average rates on, or yields of assets and costs of liabilities, are include in the
bottom half of the page.
©EQCC 44
UBPR format
EQuity Consulting
 Balance Sheet Information:
• Balance Sheet - Assets, Liabilities & Capital 04
 Basic balance sheet detail in $1,000 of dollars.
• Off-Balance Sheet Items 05
 Both dollar amounts and ratios, each off-balance sheet item as a percent of total off-balance
sheet items.
• Derivatives Analysis 05A
 This is one of many pages that provide additional detail for items from the previous page.
 Dollar amounts of derivative contracts and percent of total ratios are provided.
• Derivatives Analysis 05B
 notional value of derivatives.
• Balance Sheet - % Composition of Assets & Liab.06
 Basic common size analysis.
 The balance sheet is presented in percentage of total assets.
 Very useful for evaluating the mix of assets and liabilities.
©EQCC 45
UBPR format
EQuity Consulting
• Analysis of Loan & Lease Allowance and Loan Mix 07
 Reconciliation of the Loan and Lease (LN&LS) allowance is provided in $1,000 of dollars.
 Ratios on the provisions for loan losses (loss provision), LN&LS allowance, gross losses,
recoveries, and net losses by loan type are provided as well.
• Analysis of Loan & Lease Allowance and Loan Mix 07A
 Ratios detailing the loan mix (each loan category as a percentage of total loans) as well as
information on mortgage serving assets.
• Analysis of Past Due, Nonaccrual & Restructured LN&LS 08
 The dollar amount of past due, nonaccrual, restructured and other real estate owned (OREO) is
provided.
 Ratios, detailing the percentage of non-current loans, by type, for past due and nonaccrual
loans is provided.
• Analysis of Past Due, Nonaccrual & Restructured LN&LS 08A
 Memoranda Information
 Additional detail in dollars and percentage of non-current real estate loans.
©EQCC 46
UBPR format
EQuity Consulting
• Interest Rate Risk Analysis as a Percent of Assets 09
 Basic interest rate risk information.
 Total interest bearing assets and liabilities and the net position (GAP) for three month and one year
repricing.
• Liquidity and Investment Portfolio 10
 Dollar amount of short term investments, debt securities and high risk mortgage securities.
 Liquidity ratios and the securities mix (percentage of total securities) is provided as well.
• Capital Analysis 11
 Reconciliation of stockholders equity and the dollar amounts of equity components.
 Capital ratios, including return on equity (ROE), dividend payout, and growth rates in capital
components.
• Risk-Based Capital Analysis 11A
 The dollar amount of tier one and tire two capital and its components.
 Dollar amount of risk-weighted assets and adjustments to risk-weighted assets.
 Risk-based capital and leverage capital ratios are provided as well.
©EQCC 47
UBPR format
EQuity Consulting

• Last-Four Quarters Income Analysis 12
 Four quarter summary information which combines information from page 01 and 03 on
yield or cost of assets and liabilities.
• State Average Summary STAVG
 Summary ratios, similar to page 01 for state averages.
©EQCC 48
SUMMARY RATIOS Page 01
CERT # 6384 PNC BANK, NATIONAL ASSOCIATION PITTSBURGH, PA PAGE 01
CHARTER # 1316 SUMMARY RATIOS
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
AVERAGE ASSETS ($000) 69,596,163 60,890,137 59,488,016 63,486,660 66,975,064
NET INCOME ($000) 913,426 970,278 1,061,504 491,731 1,007,226
NUMBER OF BANKS IN PEER GROUP 170 163 166 158 157
EARNINGS AND PROFITABILITY BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
PERCENT OF AVERAGE ASSETS:
INTEREST INCOME (TE) 3.77 4.46 18 4.12 4.57 25 4.92 5.33 28 6.10 6.55 6.65 7.41
- INTEREST EXPENSE 1.08 1.20 40 0.90 1.29 25 1.33 1.76 25 2.62 3.04 3.49 3.88
NET INTEREST INCOME (TE) 2.68 3.23 23 3.22 3.23 41 3.59 3.52 46 3.47 3.52 3.16 3.53
+ NONINTEREST INCOME 3.18 1.73 85 3.32 1.83 84 3.27 1.77 87 2.80 1.83 2.56 1.79
- NONINTEREST EXPENSE 3.99 2.89 84 3.98 2.95 82 3.75 3.05 77 3.84 3.22 3.27 3.25
- PROVISION: LOAN&LEASE LOSSES 0.07 0.14 34 0.29 0.27 64 0.49 0.38 73 1.42 0.40 0.20 0.33
= PRETAX OPERATING INCOME (TE) 1.80 1.97 38 2.26 1.89 71 2.62 1.90 83 1.02 1.75 2.26 1.80
+ REALIZED GAINS/LOSSES SEC 0.07 0.02 84 0.15 0.05 84 0.13 0.07 77 0.20 0.06 0.03 -0.04
= PRETAX NET OPERATING INC (TE) 1.87 2.00 41 2.41 1.95 76 2.75 1.98 84 1.21 1.83 2.29 1.74
NET OPERATING INCOME 1.31 1.31 52 1.59 1.28 77 1.78 1.29 84 0.78 1.18 1.50 1.11
ADJUSTED NET OPERATING INCOME 1.23 1.29 43 1.54 1.29 71 1.92 1.34 86 0.71 1.25 1.50 1.20
NET INCOME ADJUSTED SUB S 1.31 N/A 1.28 N/A 1.29 N/A 1.19 1.11
NET INCOME 1.31 1.31 52 1.59 1.28 77 1.78 1.29 84 0.77 1.19 1.50 1.11
MARGIN ANALYSIS:
AVG EARNING ASSETS TO AVG ASSETS 84.35 91.97 7 84.38 92.14 6 87.27 91.97 14 88.50 91.76 88.42 91.71
AVG INT-BEARING FUNDS TO AVG AST 74.97 80.65 18 70.78 80.81 10 72.22 80.17 14 75.29 80.54 79.02 80.57
INT INC (TE) TO AVG EARN ASSETS 4.46 4.88 23 4.89 4.98 34 5.64 5.82 34 6.89 7.17 7.52 8.12
INT EXPENSE TO AVG EARN ASSETS 1.28 1.31 48 1.07 1.41 26 1.53 1.92 24 2.97 3.32 3.94 4.23
NET INT INC-TE TO AVG EARN ASSET 3.18 3.52 30 3.82 3.51 57 4.11 3.85 55 3.92 3.86 3.58 3.88
LOAN & LEASE ANALYSIS

NET LOSS TO AVERAGE TOTAL LN&LS 0.28 0.25 60 0.59 0.41 71 0.54 0.56 62 2.11 0.56 0.26 0.39
EARNINGS COVERAGE OF NET LOSS(X) 11.61 19.94 50 7.44 10.92 45 8.89 9.33 56 1.62 8.81 12.32 12.65
LN&LS ALLOWANCE TO NET LOSSES(X) 5.23 7.51 51 2.92 4.18 41 3.12 3.60 47 0.64 3.66 4.90 5.14
LN&LS ALLOWANCE TO TOTAL LN&LS 1.35 1.27 61 1.78 1.44 75 1.80 1.52 77 1.49 1.54 1.30 1.49
NON-CUR LN&LS TO GROSS LN&LS 0.46 0.59 40 1.00 0.83 64 1.41 1.06 73 1.05 1.12 0.96 0.89
LIQUIDITY
NET NON CORE FUND DEPENDENCE 18.27 32.55 25 15.25 33.01 18 9.49 30.57 14 20.10 31.86 24.15 34.13
NET LOANS & LEASES TO ASSETS 58.02 59.94 38 54.15 58.37 34 59.00 58.77 43 63.65 60.31 78.03 62.63
CAPITALIZATION
TIER ONE LEVERAGE CAPITAL 7.14 7.71 40 8.37 7.67 76 8.99 7.50 86 7.62 7.34 8.77 7.17
CASH DIVIDENDS TO NET INCOME 87.58 46.73 82 77.30 57.57 62 37.68 56.79 35 213.53 66.20 64.53 65.35
RETAIN EARNS TO AVG TOTAL EQUITY 1.90 6.53 22 3.76 5.09 45 12.14 5.16 82 -10.64 3.75 6.72 3.21
RESTR+NONAC+RE ACQ TO EQCAP+ALLL 2.34 3.25 38 4.57 4.73 56 5.51 5.87 55 4.80 6.24 6.27
GROWTH RATES
ASSETS 19.01 15.00 69 4.00 10.78 35 -4.75 11.73 6 -0.91 15.79 -7.33 18.63
TIER ONE CAPITAL -0.90 14.11 9 -0.49 11.43 15 9.71 11.97 55 -12.94 16.37 6.02 17.35
NET LOANS & LEASES 27.51 17.96 77 -4.55 10.14 14 -11.71 9.74 10 -19.18 11.90 -5.23 19.60
SHORT TERM INVESTMENTS 31.73 39.92 63 -36.62 21.85 23 476.17 41.81 94 11.84 71.51 -41.42 71.88
SHORT TERM NON CORE FUNDING 25.67 21.27 68 73.50 13.12 91 -32.80 8.86 8 -32.83 11.84 -41.28 19.49
##ONE OR MORE MERGERS, CONSOLIDATIONS OR PURCHASES HAVE OCCURRED DUR ING THE PERIOD. 49
12/31/2000 12/31/2001
INCOME STATEMENT - REVENUES AND EXPENSES ($000) Page 02
CHARTER # 1316 INCOME STATEMENT - REVENUE AND EXPENSES ($000)
PERCENT
CHANGE1
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 YEAR
INTEREST AND FEES ON LOANS 1,875,058 1,730,575 2,097,264 2,992,253 3,845,374 8.35
INCOME FROM LEASE FINANCING 132,839 189,910 239,200 258,790 208,494 -30.05
TAX-EXEMPT 14,229 14,703 19,792 26,649 31,944 -3.22
ESTIMATED TAX BENEFIT 5,711 7,347 10,166 13,394 15,701
INCOME ON LOANS & LEASES (TE) 2,013,608 1,927,832 2,346,630 3,264,437 4,069,569 4.45
U S TREAS & AGENCY (EXCL MBS) 110,614 34,418 23,225 65,970 NA 221.38
MORTGAGE BACKED SECURITIES 337,110 366,877 369,396 446,662 NA -8.11
ESTIMATED TAX BENEFIT 3,352 504 499 635 792
ALL OTHER SECURITIES 81,129 117,866 139,281 54,082 NA -31.17
TAX EXEMPT SECURITIES INCOME 8,350 1,008 972 1,263 1,611 728.37
INVESTMT INTEREST INCOME (TE) 532,205 519,665 532,401 567,349 330,813 2.41
INTEREST ON DUE FROM BANKS 3,638 4,835 3,363 5,447 8,137 -24.76
INT ON FED FUNDS SOLD & RESALES 29,503 18,682 27,653 12,664 44,290 57.92
TRADING ACCOUNT INCOME 20,575 805 254 1,467 2,374 2,455.90
OTHER INTEREST INCOME 20,847 39,447 17,361 19,998 NA -47.15
TOTAL INTEREST INCOME (TE) 2,620,376 2,511,266 2,927,663 3,871,362 4,455,183 4.34
INT ON DEPOSITS IN FOREIGN OFF 42,290 17,335 20,321 53,928 111,622 143.96
INTEREST ON TIME DEP OVER $100M 72,032 67,714 95,996 151,082 211,127 6.38
INTEREST ON ALL OTHER DEPOSITS 376,244 369,702 531,721 993,952 1,286,558 1.77
INT ON FED FUNDS PURCH & REPOS 40,432 13,260 12,969 99,507 168,549 204.92
INT TRAD LIAB & OTH BORROWINGS 137,637 26,001 63,452 292,561 473,858 429.35
INT ON MORTGAGES & LEASES NA NA NA NA NA NA
INT ON SUB NOTES & DEBENTURES 84,340 55,449 67,521 75,145 84,270 52.10
TOTAL INTEREST EXPENSE 752,975 549,461 791,980 1,666,175 2,335,984 37.04
NET INTEREST INCOME (TE) 1,867,401 1,961,805 2,135,683 2,205,187 2,119,199 -4.81
NONINTEREST INCOME 2,216,264 2,018,779 1,946,676 1,776,499 1,717,828 9.78
ADJUSTED OPERATING INCOME (TE) 4,083,665 3,980,584 4,082,359 3,981,686 3,837,027 2.59
NON-INTEREST EXPENSE 2,777,489 2,425,253 2,233,665 2,435,920 2,188,675 14.52

PROVISION: LOAN & LEASE LOSSES 51,553 176,612 290,050 898,743 133,000 -70.81
PRETAX OPERATING INCOME (TE) 1,254,623 1,378,719 1,558,644 647,023 1,515,352 -9.00
REALIZED G/L HLD-TO-MATURITY SEC 0 0 0 0 0 NA

REALIZED G/L AVAIL-FOR SALE SEC 49,792 89,786 79,766 123,985 19,561 -44.54
PRETAX NET OPERATING INC (TE) 1,304,415 1,468,505 1,638,410 771,008 1,534,913 -11.17
APPLICABLE INCOME TAXES 381,926 490,376 566,240 260,608 511,194

CURRENT TAX EQUIV ADJUSTMENT 9,063 7,851 10,666 14,029 16,493
OTHER TAX EQUIV ADJUSTMENTS 0 0 0 0 0
APPLICABLE INCOME TAXES(TE) 390,989 498,227 576,906 274,637 527,687
NET OPERATING INCOME 913,426 970,278 1,061,504 496,371 1,007,226 -5.86
NET EXTRAORDINARY ITEMS 0 0 0 -4,640 0

NET INCOME 913,426 970,278 1,061,504 491,731 1,007,226 -5.86
CASH DIVIDENDS DECLARED 800,000 750,000 400,000 1,050,000 650,000 6.67

RETAINED EARNINGS 113,426 220,278 661,504 -558,269 357,226 -48.51 50
MEMO: NET INTERNATIONAL INCOME 0 0 0 0 0 NA
NONINTEREST INCOME AND EXPENSE ($000) AND YIELDS Page 03
C E R T # 6 384 P N C B A N K , N A T IO N A L A S S O CIA T IO N P IT T SB U R G H , P A PA G E 03
C H A R T E R # 1 316 N O N IN T E R E ST IN C O M E A N D E X P E N S E S ($ 000 ) A N D Y IE L D S
1 2/31 /200 4 12/31 /200 3 1 2/31 /200 2 1 2/31 /200 1 1 2/31 /200 0
N O N IN T E R ES T IN C O M E & E X P E N S E S
F ID U CIA R Y A C T IV IT IE S 296 ,2 26 291 ,5 82 308 ,2 91 365 ,434 771 ,4 56
D E P O SIT SE R V IC E C H A R G E S 431 ,1 69 422 ,1 00 402 ,7 50 355 ,931 335 ,7 20
T R A D IN G ,V E N T C A P ,S E C U R T Z IN C 67 ,26 7 88,98 5 54 ,99 0 82 ,59 1 34 ,22 5
IN V B A N K IN G ,A D V IS O R Y IN C 746 ,4 75 562 ,4 82 543 ,6 72 510 ,905 N /A
IN S U R A N C E C O M M & F E E S 11 ,85 6 -660 -2,623 7 ,554 N /A
N E T S E R V IC IN G F E E S 51 ,21 2 35,24 5 38 ,27 4 36 ,10 1 N /A
L O A N & L S E N E T G A IN /L O S S 130 ,9 53 134 ,9 69 155 ,7 68 32 ,24 8 N /A
O T H E R N E T G A IN S/L O S SE S 1 ,124 10,03 6 16 ,48 0 -3,838 N /A
O T H E R N O N IN T E R E ST IN C O M E 479 ,9 82 474 ,0 40 429 ,0 74 389 ,573 576 ,4 27
N O N IN T E R E S T IN C O M E 2 ,216 ,26 4 2 ,018 ,77 9 1,946 ,67 6 1 ,776 ,49 9 1 ,717 ,82 8
P E R SO N N E L E X P E N S E 1 ,421 ,34 1 1 ,112 ,20 8 1,051 ,76 6 1 ,055 ,51 5 978 ,4 46
O CCUPANC Y EXPEN SE 350 ,5 50 352 ,5 06 315 ,1 89 303 ,353 279 ,1 44
G O O D W IL L L IM P A IR M E N T 0 0 0 N /A N /A
O T H E R IN T A N G IB L E A M O R T IZ 11 ,47 6 4 ,006 4 ,197 N /A N /A
O T H E R O P E R E X P (IN C L IN T A N G IB L E S ) 994 ,1 22 956 ,5 33 862 ,5 13 1 ,077 ,05 2 931 ,0 85
T O T A L O VE R H E A D E X P E N SE 2 ,777 ,48 9 2 ,425 ,25 3 2,233 ,66 5 2 ,435 ,92 0 2 ,188 ,67 5
D O M E S T IC B A N K IN G O FF IC E S(# ) 737 684 680 680 698
F O R E IG N B R A N C H E S (# ) 8 8 8 8 8
A S S E T S P E R D O M ES T IC O F F IC E 98 ,00 6 88,83 1 86 ,09 4 90 ,88 3 89 ,99 6
P E R C E N T O F A V E R A G E A S SE T S BANK PG 1 PCT B ANK PG 1 PCT B ANK PG 1 PCT B ANK PG 1 B ANK PG 1

P E R SO N N E L E X P E N S E 2 .04 1 .38 85 1 .83 1.37 80 1 .77 1 .40 76 1 .66 1 .36 1 .46 1 .37
O CCUPANC Y EXPEN SE 0 .50 0 .36 81 0 .58 0.38 89 0 .53 0 .40 80 0 .48 0 .41 0 .42 0 .42
O T H E R O P E R E X P (IN C L IN T A N G IB L E S ) 1 .44 1 .08 78 1 .58 1.13 83 1 .46 1 .23 73 1 .70 1 .40 1 .39 1 .41
TO TAL O VERHEAD EXPENSE 3 .99 2 .89 84 3 .98 2.95 82 3 .75 3 .05 77 3 .84 3 .22 3 .27 3 .25
O V E R H E A D L E S S N O N IN T IN C 0 .81 1 .10 25 0 .67 1.06 23 0 .48 1 .23 14 1 .04 1 .34 0 .70 1 .37
O T H E R IN C O M E & E X P E N S E R A T IO S :
E F F IC IE N C Y R A T IO 68 .01 57 .01 81 60.93 57 .24 66 54 .72 57 .09 46 61 .18 59 .15 57 .04 59 .35
A V G P E R S O N N E L E X P P E R E M P L ($0 00 ) 85 .48 65 .26 81 72.06 60 .48 76 68 .03 57 .00 76 66 .14 55 .37 59 .40 54 .12
A S S E T S P E R E M P L O Y E E ($M IL L IO N ) 4 .44 6 .09 43 4 .02 5.17 38 3 .86 5 .00 39 3 .92 4 .79 3 .84 4 .50
Y IE L D O N O R C O ST O F :
T O T A L L O A N S & L E A S E S (T E ) 5 .04 5 .47 25 5 .48 5.66 37 6 .09 6 .42 29 7 .29 7 .74 7 .90 8 .73
L O A N S IN D O M E ST IC O F F IC E S 5 .00 5 .42 24 5 .41 5.62 36 6 .01 6 .38 27 7 .28 7 .71 7 .89 8 .76
REA L ESTATE 5 .00 5 .40 27 5 .47 5.69 32 6 .37 6 .56 36 7 .41 7 .84 7 .36 8 .61
C O M M E R C IA L & IN D U S T R IA L 5 .43 5 .23 61 6 .05 5.20 76 6 .20 5 .79 62 7 .38 7 .57 8 .49 9 .18
IN D IV ID U A L 4 .21 6 .64 13 4 .25 6.80 13 5 .34 7 .68 13 7 .52 8 .63 9 .15 9 .73
C R E D IT C A R D 3 .10 4 .86 52 0 .00 4.69 52 0 .00 5 .17 53 0 .00 6 .09 N /A 0 .00
A G R IC U L T U R A L 5 .65 3 .37 76 5 .06 3.54 54 5 .74 4 .21 55 7 .10 5 .76 8 .76 6 .86
L O A N S IN F O R E IG N O F F IC E S 19 .35 0 .53 99 8 .94 0.70 98 10 .09 0 .70 98 8 .69 1 .11 8 .70 1 .49
T O T A L IN V E ST M E N T S E C U R IT IE S (T E ) 3 .51 3 .98 25 3 .81 4.18 31 5 .05 5 .33 32 5 .55 6 .27 4 .98 6 .70
T O T A L IN V E ST M E N T S E C U R IT E S (B O O K ) 3 .48 3 .84 28 3 .81 4.00 34 5 .04 5 .15 40 5 .54 6 .08 4 .97 6 .54
U S T R E A S & A G E N C Y (E X C L M B S ) 2 .82 2 .93 36 2 .42 3.08 25 3 .59 4 .18 26 4 .54 5 .81 N /A 0 .00
M O R T G A G E B A C K E D S E C U R IT IE S 3 .91 4 .14 32 4 .18 4.18 51 5 .48 5 .49 43 6 .17 6 .35 N /A 0 .00
A L L O T H E R SE C U R IT IE S 3 .08 3 .88 25 3 .43 4.25 26 4 .41 4 .74 39 3 .54 5 .54 N /A 0 .00
IN T E R E S T -B E A R IN G B A N K B A L AN C E S 1 .39 1 .45 50 2 .80 1.42 87 2 .43 1 .93 72 5 .33 3 .93 7 .02 5 .32
F E D E R A L F U N D S SO L D & R E S A L E S 2 .00 1 .24 92 1 .60 1.09 89 1 .63 1 .73 32 3 .86 3 .88 6 .30 6 .30
T O T A L -IN T B E A R IN G D E P O S IT S 1 .14 1 .25 39 1 .22 1.39 40 1 .77 1 .97 36 3 .18 3 .50 4 .23 4 .34
T R A N S A C T IO N A C C O U N T S 0 .86 0 .62 67 0 .90 0.60 76 1 .13 0 .96 66 2 .17 1 .94 2 .98 2 .12
O T H E R S A V IN G S D E P O SIT S 0 .60 0 .69 40 0 .57 0.70 37 0 .96 1 .09 41 2 .08 2 .09 1 .62 1 .92
T IM E D E P S O V E R $100M 2 .81 2 .17 81 3 .66 2.38 91 3 .91 3 .13 80 5 .46 5 .03 6 .30 5 .82
A L L O T H E R T IM E D E P O SIT S 2 .78 2 .03 81 3 .12 2.41 75 3 .67 3 .45 62 5 .21 5 .21 5 .82 5 .61
F O R E IG N O F F IC E D E P O SIT S 1 .36 0 .43 82 1 .12 0.38 82 1 .61 0 .60 75 4 .13 1 .46 6 .31 2 .77
FEDERAL FUNDS PURCHASED & REPOS 1 .37 1 .41 57 1 .10 1.15 47 1 .49 1 .83 33 4 .19 3 .83 7 .37 6 .04
O TH ER BO RROW ED M ONEY
SU BO RD NOTES & DEB ENTURES
2 .95
5 .69
2 .64
1 .91
55
80
0 .72
5 .10
3.00
2.03
5
76
1 .48
5 .85
3 .77
2 .10
7
79
4 .46
6 .52
5 .29
3 .09
4 .14
7 .31
5 .92
3 .85
51
A L L IN T E R E ST -B E A R IN G F U N D S 1 .44 1 .51 44 1 .27 1.62 28 1 .84 2 .22 25 3 .49 3 .79 4 .41 4 .85
BALANCE SHEET - ASSETS, LIABILITIES AND CAPITAL ($000) Page 04
CHARTER # 1316 BALANCE SHEET - ASSETS, LIABILITIES AND CAPITAL ($000)
PERCENT CHANGE
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 1 QTR 1 YEAR
ASSETS:
REAL ESTATE LOANS 20,701,904 15,639,089 15,453,881 17,136,390 23,403,724 2.75 32.37
COMMERCIAL LOANS 14,707,458 11,879,285 12,965,958 14,616,251 18,180,941 2.10 23.81
INDIVIDUAL LOANS 3,816,861 2,501,847 2,616,335 3,261,827 3,529,627 7.88 52.56
AGRICULTURAL LOANS 1,545 984 901 1,096 1,717 12.86 57.01
OTHER LN&LS IN DOMESTIC OFFICES 2,999,113 3,022,795 3,802,413 4,710,235 4,588,422 -1.24 -0.78
LN&LS IN FOREIGN OFFICES 1,222,904 1,190,025 1,029,389 777,443 347,421 1.30 2.76
GROSS LOANS & LEASES 43,449,785 34,234,025 35,868,877 40,503,242 50,051,852 2.63 26.92
LESS: UNEARNED INCOME 44,949 44,867 41,538 51,223 96,913
LN&LS ALLOWANCE 583,915 606,886 644,475 602,790 648,833 4.61 -3.79
NET LOANS & LEASES 42,820,921 33,582,272 35,182,864 39,849,229 49,306,106 2.61 27.51
U S TREASURY & AGENCY SECURITIES 6,460,936 5,574,108 2,924,045 3,451,036 1,887,310 -6.53 15.91
MUNICIPAL SECURITIES 131,685 7,719 14,538 18,679 45,237 -1.35 1,605.99
FOREIGN DEBT SECURITIES 0 0 12,095 25,835 27,401 N/A N/A
ALL OTHER SECURITIES 9,064,146 8,804,028 8,706,948 8,805,746 2,971,309 3.10 2.95
INTEREST-BEARING BANK BALANCES 393,713 259,318 222,788 157,670 167,916 17.28 51.83
FEDERAL FUNDS SOLD & RESALES 1,728,372 1,106,733 2,440,012 301,986 217,241
TRADING ACCOUNT ASSETS 1,667,330 935,042 1,028,769 487,251 168,345 -4.52 78.32
TOTAL INVESTMENTS 19,446,182 16,686,948 15,349,195 13,248,203 5,484,759
TOTAL EARNING ASSETS 62,267,103 50,269,220 50,532,059 53,097,432 54,790,865
NONINT CASH & DUE FROM BANKS 3,174,493 2,926,330 3,142,917 4,156,160 3,565,214 8.59 8.48
PREMISES, FIX ASSTS, CAP LEASES 1,066,028 1,039,603 835,429 800,451 800,722 -0.10 2.54
OTHER REAL ESTATE OWNED 14,301 14,208 11,663 9,325 15,047 -11.74 0.65
INV IN UNCONSOLIDATED SUBS 15,223 17,386 4,934 6,400 4,320
ACCEPTANCES & OTH ASSETS 7,272,017 7,754,149 5,108,659 4,540,012 4,009,735 7.90 -6.22
TOTAL ASSETS 73,809,165 62,020,896 59,635,661 62,609,780 63,185,903 2.87 19.01
AVERAGE ASSETS DURING QUARTER 73,391,052 62,719,462 58,731,693 62,838,680 62,706,833 4.52 17.01
LIABILITIES
DEMAND DEPOSITS 8,488,607 7,070,434 6,888,749 8,024,609 6,581,761 11.59 20.06
ALL NOW & ATS ACCOUNTS 1,666,003 1,529,861 1,391,811 1,426,841 1,228,615 15.25 8.90
MONEY MARKET DEPOSIT ACCOUNTS 26,665,024 24,502,371 22,938,491 22,173,721 19,973,653 1.22 8.83
OTHER SAVINGS DEPOSITS 2,782,931 2,055,659 1,957,041 1,889,720 1,856,609 3.25 35.38
TIME DEP UNDER $100M 7,063,499 6,242,628 7,426,968 8,243,535 10,549,034 3.24 13.15
CORE DEPOSITS 46,666,064 41,400,953 40,603,060 41,758,426 40,189,672 3.86 12.72
TIME DEP OF $100M OR MORE 3,205,331 1,775,943 2,155,690 2,320,116 3,412,724 5.83 80.49
DEPOSITS IN FOREIGN OFFICES 2,994,623 2,371,548 1,382,555 2,306,590 2,397,676 -4.21 26.27
TOTAL DEPOSITS 52,866,018 45,548,444 44,141,305 46,385,132 46,000,072 3.48 16.07
FEDERAL FUNDS PURCH & RESALE 1,606,647 499,232 398,639 582,306 1,586,709
FED HOME LOAN BOR MAT < 1 YR 0 1,000,000 100,178 251,487 0 N/A -100.00
FED HOME LOAN BOR MAT > 1 YR 88,508 115,406 1,156,185 1,795,156 0 -8.20 -23.31
OTH BORROWING MAT < 1 YR 3,046,632 2,264,921 1,136,140 1,522,016 2,496,693 8.62 34.51
OTH BORROWING MAT > 1 YR 3,624,223 1,765,851 1,819,091 2,660,077 3,793,924 26.71 105.24
ACCEPTANCES & OTHER LIABILITIES 4,585,994 3,864,388 3,867,803 3,372,710 2,904,691 13.75 18.67
TOTAL LIABILITIES (INCL MORTG) 65,818,022 55,058,242 52,619,341 56,568,884 56,782,089 2.31 19.54
SUBORD NOTES AND DEBENTURES 1,895,482 1,340,133 1,153,771 1,153,235 1,152,698 36.31 41.44
ALL COMMON & PREFERRED CAPITAL 6,095,661 5,622,521 5,862,549 4,887,661 5,251,116 1.10 8.42
TOTAL LIBILITIES & CAPITAL 73,809,165 62,020,896 59,635,661 62,609,780 63,185,903 2.87 19.01
MEMORANDA:
OFFICER, SHAREHOLDER LOANS (#) 3 2 2 4 4
OFFICER, SHAREHOLDER LOANS ($) 22,449 14,211 17,628 20,933 19,539 -0.96 57.97
NON-INVESTMENT ORE 14,301 14,208 11,663 9,325 15,047 -11.74 0.65
LOANS HELD FOR SALE 1,667,154 1,378,603 1,535,037 3,900,766 1,655,003 5.81 20.93
HELD-TO-MATURITY SECURITIES 0 2,114 0 0 0 N/A -100.00 52
AVAILABLE-FOR-SALE-SECURITIES 15,656,767 14,383,741 11,657,626 12,301,296 4,931,257 -1.14 8.85
ALL BROKERED DEPOSITS 2,289,151 1,533,123 1,342,871 1,175,114 586,684 10.23 49.31
OFF-BALANCE SHEET ITEMS PAGE 05
CHARTER # 1316 OFF BALANCE SHEET ITEMS & DERIVATIVES ANALYSIS
PERCENT CHANGE
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 1 QTR 1 YEAR
OUTSTANDING ($000)
HOME EQUITY (1-4 FAMILY) 5,741,792 4,184,431 3,951,448 3,578,540 3,137,699 3.35 37.22
CREDIT CARD 0 0 0 0 0
COMMERCIAL RE SECURED BY RE 1,411,906 927,004 904,057 925,314 1,302,778 18.51 52.31
COMMERCIAL RE NOT SECURED BY RE 2,326,566 1,697,883 1,626,243 1,709,755 1,675,731 16.26 37.03
ALL OTHER 19,679,421 17,239,929 19,883,135 24,662,036 25,628,908 2.68 14.15
SECURITIES UNDERWRITING 0 0 0 0 0
MEMO: UNUSED COMMIT W/MAT GT 1 YR 15,777,807 11,712,882 11,406,341 12,425,899 14,169,017 12.12 34.7
STANDBY LETTERS OF CREDIT 5,163,716 5,076,720 4,503,773 4,122,020 4,061,186 6.46 1.71
AMOUNT CONVEYED TO OTHERS 1,409,679 1,115,781 723,492 290,210 244,260 3.08 26.34
COMMERCIAL LETTERS OF CREDIT 142,835 94,477 97,971 119,809 108,349 -21.06 51.18
ASSETS SECURITIZED OR SOLD W REC 2,872,742 3,203,446 3,529,593 4,122,870 0 -3.59 -10.32
AMOUNT OF RECOURSE EXPOSURE 40,365 47,115 57,364 106,779 0 2.64 -14.33
CREDIT DERIVS BANK AS GTR 0 0 109,389 0 0

CREDIT DERIVS BANK AS BENEF 381,710 165,625 227,448 197,550 4,390,723 18.24 130.47
ALL OTH OFF-BALANCE SHEET ITEMS 2,075,779 4,102,836 2,906,089 9,233,190 8,909,432 -46.27 -49.41
OFF-BALANCE SHEET ITEMS 39,796,467 36,692,351 37,739,146 48,671,084 49,214,806 -0.78 8.46
OUTSTANDING (% OF TOTAL) BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
HOME EQUITY (1-4 FAMILY) 7.78 3.44 83 6.75 3.10 81 6.63 2.83 85 5.72 2.58 4.97 2.32
CREDIT CARD 0.00 1.59 48 0.00 1.42 48 0.00 1.02 51 0.00 1.15 0.00 1.78
COMMERCIAL RE SECURED BY RE 1.91 3.11 38 1.49 2.45 43 1.52 2.24 43 1.48 2.42 2.06 2.43
COMMERCIAL RE NOT SECURED BY RE 3.15 0.11 96 2.74 0.12 96 2.73 0.15 96 2.73 0.26 2.65 0.25
ALL OTHER 26.66 11.93 85 27.80 11.52 88 33.34 12.20 90 39.39 14.27 40.56 16.04
TOTAL LN&LS COMMITMENTS 39.51 24.71 82 38.78 22.70 84 44.21 21.41 89 49.31 23.15 50.24 25.80
SECURITIES UNDERWRITING 0.00 0.00 96 0.00 0.00 95 0.00 0.00 97 0.00 0.00 0.00 0.00
STANDBY LETTERS OF CREDIT 7.00 2.23 89 8.19 2.29 92 7.55 2.38 86 6.58 2.56 6.43 2.93
AMOUNT CONVEYED TO OTHERS 1.91 0.16 94 1.80 0.16 93 1.21 0.16 92 0.46 0.16 0.39 0.19
COMMERCIAL LETTERS OF CREDIT 0.19 0.12 77 0.15 0.12 69 0.16 0.12 70 0.19 0.13 0.17 0.16
ASSETS SECURITIZED OR SOLD W REC 3.89 1.37 84 5.17 1.91 83 5.92 2.34 81 6.59 3.10 0.00 1.02
AMOUNT OF RECOURSE EXPOSURE 0.05 0.11 72 0.08 0.14 68 0.10 0.19 70 0.17 0.22 0.00 0.26
CREDIT DERIVS BANK AS GTR 0.00 0.01 90 0.00 0.01 90 0.18 0.02 92 0.00 0.02 0.00 0.02
CREDIT DERIVS BANK AS BENEF 0.52 0.11 91 0.27 0.12 90 0.38 0.09 91 0.32 0.04 6.95 0.02
ALL OTH OFF-BALANCE SHEET ITEMS 2.81 0.59 88 6.62 1.04 87 4.87 1.57 84 14.75 2.41 14.10 1.76
OFF-BALANCE SHEET ITEMS 53.92 38.41 78 59.16 35.05 82 63.28 33.25 85 77.74 36.47 77.89 37.65 53
DERIVATIVES ANALYSIS PAGE 05A
CERT # 6384 PNC BANK, NATIONAL ASSOCIATION PITTSBURGH, PA PAGE 05A
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
NOTIONAL AMOUNT ($000)
DERIVATIVE CONTRACTS 109,507,119 47,978,882 47,551,168 50,934,116 43,924,533
INTEREST RATE CONTRACTS 99,676,621 43,682,217 43,209,041 46,904,961 38,384,632
FOREIGN EXCHANGE CONTRACTS 6,804,646 2,658,419 2,946,797 4,022,155 5,520,831
EQUITY, COMM & OTH CONTRACTS 3,025,852 1,638,246 1,395,330 7,000 19,070
DERIVATIVES POSITION
FUTURES AND FORWARDS 18,410,745 3,205,934 3,521,216 4,178,370 4,614,075
WRITTEN OPTIONS 28,165,144 2,130,957 3,390,262 5,343,653 8,282,539
EXCHANGE TRADED 20,120,000 66,388 0 0 8,070
OVER-THE-COUNTER 8,045,144 2,064,569 3,390,262 5,343,653 8,274,469
PURCHASED OPTIONS 15,977,320 1,676,050 3,476,993 8,075,266 8,989,659
EXCHANGE TRADED 8,520,000 66,147 0 0 0
OVER-THE-COUNTER 7,457,320 1,609,903 3,476,993 8,075,266 8,989,659
SWAPS 46,953,910 40,965,941 37,162,697 33,336,827 22,038,260
HELD-FOR-TRADING 105,054,536 43,254,800 43,238,184 40,968,606 31,430,645

FOREIGN EXCHANGE CONTRACTS 6,791,264 2,658,419 2,946,797 4,022,155 5,506,136
EQUITY, COMM & OTH CONTRACTS 3,025,852 1,638,246 1,395,330 7,000 19,070
NON-TRADED 4,452,583 4,724,082 4,312,984 9,965,510 12,493,888
FOREIGN EXCHANGE CONTRACTS 13,382 0 0 0 14,695
EQUITY, COMM & OTH CONTRACTS 0 0 0 0 0
MEMO: MARKED-TO-MARKET 4,452,583 4,724,082 4,312,984 9,965,510 0
DERIVATIVE CONTRACTS (RBC DEF ) 59,989,453 39,603,563 36,879,140 37,631,791 32,073,546

ONE YEAR OR LESS 19,353,979 13,556,628 13,631,800 9,525,537 9,923,739
OVER 1 YEAR TO 5 YEARS 24,250,474 16,369,026 15,744,141 22,174,113 16,977,069
OVER 5 YEARS 16,385,000 9,677,909 7,503,199 5,932,141 5,172,738
GROSS NEGATIVE FAIR VALUE 915,252 898,113 1,129,656 573,820 315,983

GROSS POSTIVE FAIR VALUE 935,454 970,681 1,276,234 711,223 338,182
HELD-FOR-TRADING 916,506 895,956 1,103,743 425,603 214,198
NON-TRADED 18,948 74,725 172,491 285,620 123,984
MEMO MARKED-TO-MARKET 18,948 74,725 172,491 285,620 0
CURR CREDIT EXP ON RBC DERIV CONTR 935,454 970,681 1,276,234 711,223 338,182
CREDIT LOSSES OFF-BS DERIVS 1,491 679 5,669 0 0
PAST DUE DERIV INSTRUMENTS:

FAIR VALUE CARRIED AS ASSETS 0 0 0 122 0
IMPACT NONTRADED DERIV CONTRACTS:

INCREASE (DECR) IN INTEREST INC 62,967 141,990 117,453 25,170 -56,473
INCREASE (DECR) IN INTEREST EXP 955 710 -369 -1,696 -1,687
INCREADE (DECR) IN NONINT ALLOC -2,220 -10,258 -24,420 -25,193 0 54
INCREASE (DECR) IN NET INCOME 61,702 132,442 92,664 -1,719 -58,160
DERIVATIVES ANALYSIS PAGE 05B
CERT # 6384 PNC BANK, NATIONAL ASSOCIATION PITTSBURGH, PA PAGE 05B
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
PERCENT OF NOTIONAL AMOUNT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
INTEREST RATE CONTRACTS 91.02 51.85 43 91.04 53.45 45 90.87 49.41 46 92.09 48.07 87.39 53.10
FOREIGN EXCHANGE CONTRACTS 6.21 5.05 75 5.54 4.17 75 6.20 3.66 79 7.90 5.21 12.57 7.12
EQUITY, COMM, & OTHER CONTR 2.76 0.37 90 3.41 0.14 94 2.93 0.18 93 0.01 0.14 0.04 0.23
FUTURES AND FORWARDS 16.81 11.23 74 6.68 11.67 56 7.41 14.69 58 8.20 14.40 10.50 14.38
WRITTEN OPTIONS 25.72 3.72 93 4.44 3.41 70 7.13 2.97 79 10.49 2.88 18.86 3.40
EXCHANGE TRADED 18.37 0.02 99 0.14 0.01 93 0.00 0.01 92 0.00 0.02 0.02 0.03
OVER-THE-COUNTER 7.35 3.25 77 4.30 3.11 70 7.13 2.66 79 10.49 2.44 18.84 3.03
PURCHASED OPTIONS 14.59 3.27 87 3.49 3.18 73 7.31 3.62 76 15.85 5.62 20.47 10.11
EXCHANGE TRADED 7.78 0.06 97 0.14 0.06 89 0.00 0.06 88 0.00 0.07 0.00 0.14
OVER-THE-COUNTER 6.81 2.77 81 3.36 2.65 74 7.31 3.04 79 15.85 4.62 20.47 8.95
SWAPS 42.88 44.77 38 85.38 44.14 67 78.15 35.63 68 65.45 34.55 50.17 36.47
HELD-FOR-TRADING 95.93 20.83 90 90.15 22.04 86 90.93 20.32 82 80.43 21.26 71.56 21.97
EQUITY, COMM & OTH CONTRACTS 2.76 0.08 94 3.41 0.07 96 2.93 0.10 95 0.01 0.08 0.04 0.10
NON-TRADED 4.07 28.13 29 9.85 26.98 33 9.07 25.05 42 19.57 22.86 28.44 24.95
EQUITY, COMM & OTH CONTRACTS 0.00 0.02 90 0.00 0.00 92 0.00 0.00 93 0.00 0.00 0.00 0.00
MEMO: MARKED-TO-MARKET 4.07 28.13 29 9.85 26.98 33 9.07 25.05 42 19.57 22.86 0.00 8.76
DERIVATIVE CONTRACTS (RBC DEF ) 54.78 58.89 26 82.54 58.52 39 77.56 49.76 40 73.88 49.82 73.02 56.26
ONE YEAR OR LESS 17.67 19.20 54 28.26 17.90 71 28.67 20.63 65 18.70 18.30 22.59 22.17
OVER 1 YEAR TO 5 YEARS 22.15 23.39 50 34.12 24.68 60 33.11 21.79 66 43.53 26.63 38.65 27.07
OVER 5 YEARS 14.96 15.98 59 20.17 15.03 68 15.78 10.93 68 11.65 8.32 11.78 8.40
GROSS NEGATIVE FAIR VALUE 0.84 0.71 60 1.87 0.90 78 2.38 1.19 79 1.13 0.74 0.72 0.66
GROSS POSTIVE FAIR VALUE 0.85 0.68 61 2.02 0.94 78 2.68 1.23 79 1.40 0.83 0.77 0.68
BY TIER ONE CAPITAL:

GROSS NEGATIVE FAIR VALUE (X) 0.18 0.03 91 0.17 0.05 87 0.22 0.05 87 0.12 0.05 0.06 0.04
GROSS POSTIVE FAIR VALUE (X) 0.18 0.03 91 0.19 0.04 89 0.25 0.06 88 0.15 0.05 0.06 0.04
HELD-FOR-TRADING (X) 20.65 1.19 94 8.42 1.36 91 8.38 1.38 91 8.71 1.93 5.82 1.67
NON TRADED (X) 0.88 1.25 60 0.92 1.19 60 0.84 1.14 59 2.12 1.23 2.31 1.32
NON-TRADED MARKED-TO-MKT(X) 0.88 1.25 60 0.92 1.19 60 0.84 1.14 59 2.12 1.23 0.00 0.21
CURR CREDIT EXPOSURE (X) 0.18 0.02 91 0.19 0.03 90 0.25 0.05 89 0.15 0.04 0.06 0.03
CREDIT LOSSES ON DERIVATIVES 0.03 0.00 95 0.01 0.00 93 0.11 0.00 96 0.00 0.00 0.00 0.00
PAST DUE DERIVATIVE INSTRUMENTS :
FAIR VALUE CARRIED AS ASSETS 0.00 0.00 98 0.00 0.00 96 0.00 0.00 97 0.00 0.00 0.00 0.00
OTHER RATIOS:
CUR CREDIT EXPOSURE/ RISK WT AST 1.54 0.24 90 1.87 0.33 89 2.41 0.43 89 1.31 0.36 0.58 0.23
CREDIT LOSSES ON DERIVS /CR ALLOW 0.26 0.00 95 0.11 0.00 95 0.88 0.00 97 0.00 0.00 0.00 0.00
IMPACT OF NONTRADED DERIV CONTRACTS:
INCR(DEC) INTEREST INC/NET INC 6.89 0.67 90 14.63 1.54 91 11.06 1.34 89 5.12 1.06 -5.61 0.18
INCR(DEC) INTEREST EXP/NET INC 0.10 1.39 63 0.07 0.49 70 -0.03 -0.83 26 -0.34 -0.24 -0.17 0.20
INCR(DEC) NONINT ALLOC/NET INC -0.24 0.23 12 -1.06 0.11 9 -2.30 0.29 5 -5.12 0.35 0.00 0.05 55
INCR(DEC) NET INCOME/NET INC 6.76 2.77 74 13.65 2.48 84 8.73 3.53 81 -0.35 1.55 -5.77 0.54
BALANCE SHEET - PERCENTAGE COMPOSITION OF ASSETS & LIABILITIES PAGE 06
CHARTER # 1316 BALANCE SHEET - PERCENTAGE COMPOSITION OF ASSETS AND LIABILITIES
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
ASSETS, PERCENT OF AVG ASSETS BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
TOTAL LOANS 53.34 58.22 32 51.89 57.69 29 57.50 58.58 42 63.88 60.83 72.59 61.20
LEASE FINANCING RECEIVABLES 3.91 1.03 88 5.28 1.19 90 6.19 1.35 92 5.81 1.55 4.28 1.78
LESS: LN&LS ALLOWANCE 0.85 0.80 51 1.03 0.86 66 1.05 0.90 68 1.02 0.91 0.96 0.90
NET LOANS & LEASES 56.40 58.91 38 56.14 58.47 40 62.64 59.53 51 68.67 62.04 75.91 62.77
INTEREST-BEARING BANK BALANCES 0.42 0.76 69 0.33 0.87 65 0.27 0.91 60 0.20 0.71 0.18 0.54
FEDERAL FUNDS SOLD & RESALES 1.98 2.37 61 2.60 2.61 64 2.81 3.09 59 0.58 2.95 1.01 2.63
TRADING ACCOUNT ASSETS 2.09 0.34 89 1.63 0.39 86 1.23 0.38 85 0.59 0.41 0.33 0.41
HELD-TO-MATURITY SECURITIES 0.00 2.03 36 0.00 1.45 43 0.00 1.44 46 0.00 1.74 0.00 2.79
AVAILABLE-FOR-SALE SECURITIES 22.03 21.00 58 21.90 21.11 56 17.98 19.39 48 15.09 17.26 9.52 16.52
TOTAL EARNING ASSETS 82.92 90.08 8 82.60 89.84 8 84.93 89.78 14 85.13 89.27 86.95 89.76
NONINT CASH & DUE FROM BANKS 4.24 2.68 83 5.40 3.13 87 5.38 3.40 83 5.50 3.87 4.16 4.02
PREMISES, FIX ASSTS & CAP LEASES 1.55 1.09 77 1.49 1.08 75 1.34 1.12 65 1.27 1.12 1.14 1.10
OTHER REAL ESTATE OWNED 0.02 0.05 43 0.02 0.05 42 0.02 0.05 42 0.02 0.04 0.03 0.03
ACCEPTANCES & OTHER ASSETS 11.26 5.82 88 10.48 5.49 89 8.34 5.24 82 8.09 5.28 7.72 4.70
SUBTOTAL 17.08 9.92 91 17.39 10.16 91 15.08 10.22 85 14.87 10.73 13.05 10.24
TOTAL ASSETS 100.00 100.00 99.99 100.00 100.01 100.00 100.00 100.00 100.00 100.00
STANDBY LETTERS OF CREDIT 7.22 2.19 89 7.68 2.25 89 7.27 2.29 86 6.50 2.51 6.49 2.83
LIABILITIES, PERCENT OF AVG ASST

DEMAND DEPOSITS 11.09 6.61 84 12.74 6.56 89 11.75 7.27 82 10.95 7.82 10.01 8.57
ALL NOW & ATS ACCOUNTS 2.15 1.92 62 2.23 1.81 62 2.11 1.63 69 1.96 1.62 1.77 1.55
MONEY MARKET DEPOSIT ACCOUNTS 37.63 24.33 83 38.84 22.00 87 36.95 21.58 86 33.11 19.12 28.31 17.99
OTHER SAVINGS DEPOSITS 3.65 8.42 35 3.31 8.73 34 3.25 8.73 32 2.95 7.75 2.97 7.55
TIME DEP LESS THAN $100M 9.76 8.36 58 11.03 9.59 59 13.06 11.14 58 14.77 12.86 15.69 13.69
CORE DEPOSITS 64.29 54.64 67 68.16 53.90 76 67.12 55.21 73 63.74 54.02 58.74 53.60
TIME DEP OF $100M OR MORE 3.76 8.99 20 3.14 9.02 17 3.98 9.12 22 4.37 9.70 4.85 9.80
DEPOSITS IN FOREIGN OFFICES 4.26 1.94 77 2.53 2.04 71 2.26 1.97 70 2.83 2.33 3.69 3.26
TOTAL DEPOSITS 72.30 68.32 56 73.84 67.79 61 73.35 69.21 57 70.93 68.98 67.28 69.23
FEDERAL FUNDS PURCH & REPOS 3.18 8.00 28 0.99 8.16 10 0.83 7.82 7 2.28 8.94 2.28 8.64
TOTAL FED HOME LOAN BORROWINGS 0.61 4.63 31 1.88 4.81 37 2.53 4.45 43 3.01 3.71 N/A 0.00
TOTAL OTH BORROWINGS 7.47 2.66 82 5.10 2.87 73 6.00 2.72 76 7.60 4.15 17.39 9.72
MEMO: SHT TER N CORE FUNDING 13.34 22.87 22 8.44 22.88 7 8.34 22.90 7 11.02 25.17 17.48 27.13
ACCEPTANCES & OTHER LIABILITIES 5.55 2.11 92 6.89 2.46 92 6.36 2.33 91 6.11 2.32 3.41 2.01
TOTAL LIABILITIES (INCL MORTG) 89.12 89.83 28 88.70 90.24 21 89.06 90.31 23 89.94 90.55 90.36 91.02
SUBORDINATED NOTES & DEBENTURES 2.16 0.62 86 1.77 0.71 80 1.91 0.76 80 1.81 0.83 1.72 0.88
ALL COMMON & PREFERRED CAPITAL 8.72 9.39 52 9.54 8.93 70 9.02 8.81 65 8.25 8.48 7.92 7.95
TOTAL LIABILITIES & CAPITAL 99.99 100.00 100.01 100.00 100.00 100.00 99.99 100.00 100.00 100.00
MEMO: ALL BROKERED DEPOSITS 3.00 2.81 67 2.19 2.29 67 2.12 1.87 71 1.41 1.82 0.60 1.83
INSURED BROKERED DEP 2.60 1.84 71 1.73 1.45 73 1.55 1.29 72 0.00 1.17 0.00 1.15
DIRECT & INDIRECT INV IN RE 0.00 0.01 81 0.00 0.00 85 0.00 0.00 84 0.00 0.01 0.00 0.00 56
LOANS HELD FOR SALE 3.87 1.32 85 4.27 2.11 80 6.73 2.27 85 4.81 2.04 8.19 1.40
ANALYSIS OF LOAN & LEASE ALLOWANCE AND LOAN MIX PAGE 07
CHARTER # 1316 ANALYSIS OF CREDIT ALLOWANCE AND LOAN MIX
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
CHANGE: CREDIT ALLOWANCE ($000)
BEGINNING BALANCE 606,886 644,475 602,790 648,833 643,905
GROSS CREDIT LOSSES 161,537 255,377 249,396 980,672 181,385
MEMO: LOANS HFS WRITEDOWN 8,558 26,060 22,857 661,594 N/A
RECOVERIES 49,849 47,453 42,639 35,886 48,917
NET CREDIT LOSSES 111,688 207,924 206,757 944,786 132,468
PROVISION FOR CREDIT LOSS 51,553 176,612 290,050 898,743 133,000

OTHER ADJUSTMENTS 37,164 -6,277 -41,608 0 4,396
ENDING BALANCE 583,915 606,886 644,475 602,790 648,833
AVERAGE TOTAL LOANS & LEASES 39,960,849 35,193,158 38,562,898 44,804,389 51,542,871
ANALYSIS RATIOS BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
LOSS PROVISION TO AVERAGE ASSETS 0.07 0.14 34 0.29 0.27 64 0.49 0.38 73 1.42 0.40 0.20 0.33
RECOVERIES TO PRIOR CREDIT LOSS 19.52 23.76 38 19.03 22.26 50 4.35 23.80 6 19.78 31.22 23.51 32.01
NET LOSS TO AVERAGE TOTAL LN&LS 0.28 0.25 60 0.59 0.41 71 0.54 0.56 62 2.11 0.56 0.26 0.39
GROSS LOSS TO AVERAGE TOT LN&LS 0.40 0.36 61 0.73 0.53 72 0.65 0.69 59 2.19 0.69 0.35 0.52
RECOVERIES TO AVERAGE TOT LN&LS 0.12 0.11 61 0.13 0.12 60 0.11 0.12 56 0.08 0.11 0.09 0.12
LN&LS ALLOWANCE TO TOTAL LN&LS 1.35 1.27 61 1.78 1.44 75 1.80 1.52 77 1.49 1.54 1.30 1.49
LN&LS ALLOWANCE TO NET LOSSES (X) 5.23 7.51 51 2.92 4.18 41 3.12 3.60 47 0.64 3.66 4.90 5.14
LN&LS ALL TO NONACCURAL LN&LS (X) 4.12 3.73 2.24 2.73 1.86 2.35 2.37 2.40 1.83 2.93
EARN COVER OF NET LN&LS LOSS (X) 11.61 19.94 50 7.44 10.92 45 8.89 9.33 56 1.62 8.81 12.32 12.65
NET LOSSES BY TYPE OF LN&LS

REAL ESTATE LOANS 0.12 0.07 74 0.11 0.11 64 0.12 0.11 59 0.28 0.14 0.04 0.08
LOANS TO FINANCE COMML REAL EST -0.01 0.00 2 0.00 0.01 91 0.00 0.00 92 0.00 0.01 -0.01 0.00
CONTRUCTION & LAND DEV 0.01 0.03 71 -0.01 0.06 9 0.15 0.09 77 -0.01 0.07 0.08 0.03
SECURED BY FARMLAND 0.00 0.01 84 -0.04 0.02 7 -0.55 0.03 2 0.00 0.09 0.26 0.00
SINGLE & MULTI FAMILY MORTGAGE 0.12 0.06 75 0.12 0.10 67 0.11 0.09 70 0.10 0.11 0.06 0.09
HOME EQUITY LOANS 0.11 0.05 77 0.11 0.07 72 0.11 0.08 68 0.07 0.13 0.05 0.09
1-4 FAMILY NON-REVOLVING 0.12 0.07 73 0.12 0.12 68 0.12 0.09 70 0.11 0.10 0.06 0.09
MULTIFAMILY LOANS 0.13 0.01 91 0.03 0.00 89 0.08 0.02 87 -0.01 0.01 -0.01 0.01
NON-FARM NON-RESIDENTIAL MTG 0.15 0.06 81 0.12 0.08 73 0.10 0.10 64 1.49 0.11 -0.06 0.03
RE LOANS IN FOREIGN OFFICES N/A 0.00 95 N/A 0.00 95 N/A 0.00 95 N/A 0.00 N/A 0.00
AGRICULTURAL LOANS 0.00 0.07 75 0.00 0.11 74 0.49 0.20 83 2.72 0.15 0.16 0.10
COMMERCIAL AND INDUSTRIAL LOANS 0.54 0.41 67 1.11 0.78 72 1.11 1.08 59 5.14 0.99 0.54 0.55
LEASE FINANCING -0.02 0.27 9 1.32 0.43 84 0.57 0.54 62 0.32 0.54 0.22 0.19
LOANS TO INDIVIDUALS 0.31 0.98 28 0.34 1.14 23 0.35 1.15 21 0.45 1.17 0.36 1.05
CREDIT CARD PLANS -0.02 1.40 5 0.00 1.54 57 0.00 1.44 62 0.00 1.79 3.02 2.93
ALL OTHER LOANS & LEASES 0.47 0.12 89 0.35 0.18 81 0.25 0.19 76 1.29 0.23 0.19 0.20 57
LOANS TO FOREIGN GOVERNMENTS N/A 0.00 98 N/A 0.00 96 N/A 0.00 97 N/A 0.00 0.00 0.00
ANALYSIS OF LOAN & LEASE ALLOWANCE AND LOAN MIX PAGE 07A
CHARTER # 1316 ANALYSIS OF LOAN AND LEASE ALLOWANCE AND LOAN MIX
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
LOAN MIX, % AVERAGE GROSS LN&LS BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
CONTRUCTION & DEVELOPMENT 2.08 6.36 27 2.45 5.55 32 3.08 5.50 36 2.74 5.37 2.31 4.46
1 - 4 FAMILY RESIDENTIAL 37.89 27.10 72 33.83 25.83 67 31.45 25.92 68 33.57 25.63 38.70 24.20
HOME EQUITY LOANS 11.31 5.38 82 9.57 4.58 82 7.60 3.96 82 4.93 3.38 3.61 2.98
OTHER REAL ESTATE LOANS 7.50 19.87 20 7.60 17.67 22 7.28 16.91 20 6.60 16.01 6.32 15.68
FARMLAND 0.02 0.35 39 0.04 0.38 43 0.05 0.38 43 0.05 0.38 0.06 0.32
MULTIFAMILY 0.86 1.95 38 0.92 1.68 41 0.94 1.45 44 0.90 1.36 0.89 1.30
NON-FARM NON-RESIDENTIAL 6.63 16.86 22 6.64 15.18 23 6.28 14.64 19 5.64 13.67 5.36 12.78
TOTAL REAL ESTATE 47.47 59.22 27 43.88 55.79 26 41.80 52.95 28 42.90 50.71 47.33 47.08
FINANCIAL INSTITUTION LOANS 0.13 0.29 74 0.67 0.75 76 0.74 0.77 75 0.18 0.69 0.25 0.42
AGRICULTURAL LOANS 0.00 0.30 37 0.00 0.39 34 0.00 0.47 30 0.00 0.51 0.01 0.48
COMMERCIAL & INDUSTRIAL LOANS 32.73 19.24 82 33.85 19.55 84 34.99 21.17 82 36.25 22.83 35.17 25.04
LOANS TO INDIVIDUALS 8.15 8.37 52 7.46 10.04 46 7.76 10.72 44 7.58 11.12 6.99 12.31
CREDIT CARD LOANS 0.47 0.52 74 0.00 0.51 52 0.00 0.41 49 0.06 0.66 0.24 1.15
MUNICIPAL LOANS 1.14 0.41 84 1.17 0.43 82 1.25 0.50 83 1.20 0.52 1.06 0.50
ACCEPTANCES OF OTHER BANKS N/A 0.00 99 N/A 0.00 99 N/A 0.00 99 0.00 0.00 0.00 0.00
FOREIGN OFFICE LOANS & LEASES 3.05 0.58 87 3.15 0.73 84 2.35 0.73 85 1.07 0.83 0.36 0.96
ALL OTHER LOANS 3.55 1.43 87 3.69 1.53 86 3.69 1.65 83 3.45 1.75 3.46 2.09
LEASE FINANCING RECEIVABLES 3.78 1.72 81 6.13 2.00 84 7.41 2.23 85 7.36 2.43 5.38 2.78
SUPPLEMENTAL:
LOANS TO FOREIGN GOVERNMENTS 0.00 0.01 85 0.00 0.01 82 0.00 0.01 82 0.00 0.02 0.00 0.03
LOANS TO FINANCE COMML REAL EST 3.24 0.36 96 3.23 0.44 95 3.05 0.62 92 2.87 0.69 2.88 0.62
MEMORANDUM (% OF AVG TOT LOANS):

LOAN & LEASE COMMITMENTS 72.18 47.58 81 75.59 44.01 85 80.86 41.24 88 82.32 42.11 68.34 46.47
OFFICER, SHAREHOLDER LOANS 0.06 0.56 29 0.04 0.58 30 0.05 0.59 32 0.06 0.60 0.04 0.65
OFFICER, SHAREH LOANS TO ASSETS 0.03 0.33 29 0.02 0.33 32 0.03 0.34 35 0.03 0.36 0.03 0.39
OTHER REAL ESTATE OWNED % ASSETS

CONSTRUCTION & LAND DEVELOPMENT 0.00 0.00 77 0.00 0.00 76 0.00 0.00 79 0.00 0.00 0.00 0.00
FARMLAND 0.00 0.00 97 0.00 0.00 96 0.00 0.00 95 0.00 0.00 0.00 0.00
1-4 FAMILY 0.01 0.01 64 0.01 0.02 59 0.01 0.02 59 0.01 0.02 0.02 0.01
MULTIFAMILY 0.00 0.00 94 0.00 0.00 96 0.00 0.00 96 0.00 0.00 0.00 0.00
NON-FARM-NON-RESID 0.01 0.01 65 0.01 0.01 64 0.01 0.02 64 0.01 0.01 0.01 0.01
FOREIGN OFFICES 0.00 0.00 97 0.00 0.00 96 0.00 0.00 97 0.00 0.00 0.00 0.00
SUBTOTAL 0.02 0.04 48 0.02 0.04 45 0.02 0.04 46 0.02 0.04 0.03 0.03
DIRECT AND INDIRECT INV 0.00 0.00 88 0.00 0.00 93 0.00 0.00 91 0.00 0.00 0.00 0.00
TOTAL 0.02 0.05 43 0.02 0.05 42 0.02 0.05 42 0.02 0.04 0.03 0.03
ASSET SERVICING % ASSETS

MORTG SERV W RECOURSE 0.00 0.08 71 0.00 0.19 67 0.00 0.21 66 0.00 0.22 N/A 0.00
MORTG SERV WO RECOURSE 0.00 7.74 42 0.00 8.52 38 0.00 8.88 43 0.00 7.22 N/A 0.00
OTHER FINANCIAL ASSETS 136.69 0.89 98 137.39 0.75 99 127.07 0.90 99 111.86 1.09 N/A 0.00 58
TOTAL 136.69 11.66 95 137.39 11.73 96 127.07 11.99 96 111.86 10.89 N/A 0.00
ANALYSIS OF PAST DUE, NONACCRUAL & RESTRUCTURED LOANS & LEASE PAGE 08
CHARTER # 1316 ANALYSIS OF PAST DUE, NONACCRUAL & RESTRUCTURED LOANS & LEASES
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
NON-CURRENT LN&LS ($000)
90 DAYS AND OVER PAST DUE 57,979 72,963 157,622 169,798 125,264
TOTAL NONACCRUAL LN&LS 141,887 270,782 347,078 253,945 354,651
TOTAL NON-CURRENT LN&LS 199,866 343,745 504,700 423,743 479,915
LN&LS 30-89 DAYS PAST DUE 94,779 126,455 251,586 332,103
RESTRUCTURED LN&LS 90+ DAYS P/D 0 0 0 0 0

RESTRUCTURED LN&LS NONACCRL 0 424 1,215 0 380
RESTRUCTURE LN&LS 30-89 DAYS PD 0 0 0 0
CURRENT RESTRUCTURED LN&LS 0 0 0 0 0

ALL OTHER REAL ESTATE OWNED 14,301 14,208 11,663 9,325 15,047
% OF NON-CURR LN&LS BY LN TYPE BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
REAL ESTATE LNS-90+ DAYS P/D 0.15 0.08 77 0.31 0.12 83 0.52 0.13 89 0.47 0.17 0.25 0.14
-NONACCRUAL 0.29 0.36 50 0.36 0.51 44 0.23 0.62 22 0.14 0.61 0.11 0.48
-TOTAL 0.44 0.45 54 0.67 0.67 56 0.75 0.85 53 0.61 0.83 0.36 0.65
-30-89 DAYS P/D 0.30 0.53 32 0.40 0.69 31 0.61 0.85 36 0.67 1.09
LNS FIN COML RE-90+ DAYS P/D 0.07 0.00 95 0.00 0.00 91 0.00 0.01 87 0.00 0.02 0.00 0.00
-NONACCRUAL 0.00 0.02 84 0.00 0.08 81 0.05 0.17 77 0.00 0.11 0.01 0.10
-TOTAL 0.07 0.03 85 0.00 0.10 79 0.05 0.19 76 0.00 0.16 0.01 0.14
-30-89 DAYS P/D 0.00 0.10 80 0.05 0.16 75 0.09 0.31 74 0.01 0.26
CONST & LAND DEV-90+ DAYS P/D 0.04 0.03 79 0.00 0.03 68 0.18 0.03 91 0.35 0.08 0.02 0.05
-NONACCRUAL 0.42 0.19 80 0.05 0.34 43 0.14 0.58 46 0.15 0.51 0.12 0.46
-TOTAL 0.47 0.25 75 0.05 0.41 40 0.32 0.65 52 0.50 0.64 0.13 0.55
-30-89 DAYS P/D 0.01 0.42 35 0.01 0.55 31 0.46 0.64 60 0.35 0.96
SINGLE & MULTI MTG-90+ DAYS P/D 0.18 0.10 76 0.37 0.16 80 0.49 0.18 82 0.53 0.23 0.26 0.20
-NONACCRUAL 0.25 0.27 56 0.31 0.40 50 0.17 0.45 23 0.08 0.46 0.04 0.38
-TOTAL 0.43 0.40 58 0.68 0.63 62 0.66 0.70 58 0.60 0.75 0.30 0.63
-30-89 DAYS P/D 0.32 0.61 32 0.47 0.82 32 0.70 1.03 35 0.76 1.26
NON-FARM/RESI MTG-90+ DAYS P/D 0.03 0.03 69 0.06 0.04 74 0.81 0.05 98 0.22 0.07 0.30 0.06
-NONACCRUAL 0.50 0.48 57 0.75 0.57 64 0.53 0.62 47 0.51 0.64 0.62 0.50
-TOTAL 0.53 0.53 52 0.81 0.66 64 1.34 0.69 82 0.74 0.74 0.92 0.59
-30-89 DAYS P/D 0.26 0.31 52 0.14 0.40 31 0.23 0.46 28 0.36 0.72
RE LNS FOR OFF-90+ DAYS P/D N/A 0.00 96 N/A 0.00 95 N/A 0.00 95 N/A 0.00 N/A 0.00
-NONACCRUAL N/A 0.00 93 N/A 0.01 92 N/A 0.00 93 N/A 0.00 N/A 0.00
-TOTAL N/A 0.00 93 N/A 0.02 92 N/A 0.00 93 N/A 0.00 N/A 0.00
-30-89 DAYS P/D N/A 0.00 93 N/A 0.03 92 N/A 0.00 94 N/A 0.00
COML & INDUST LNS-90+ DAYS P/D 0.10 0.07 73 0.13 0.08 71 0.34 0.09 89 0.36 0.12 0.20 0.11
-NONACCRUAL 0.54 0.74 39 1.72 1.13 72 2.05 1.47 68 1.53 1.44 1.68 1.14
-TOTAL 0.63 0.83 36 1.85 1.25 71 2.38 1.59 70 1.88 1.62 1.89 1.32
-30-89 DAYS P/D 0.10 0.51 18 0.33 0.64 34 0.91 0.80 61 0.99 1.00
LOANS TO INDIVDLS-90+ DAYS P/D 0.36 0.13 83 0.36 0.16 78 0.75 0.21 91 0.78 0.24 0.66 0.34
-NONACCRUAL 0.01 0.15 31 0.09 0.18 57 0.14 0.20 61 0.08 0.22 0.03 0.17
-TOTAL 0.37 0.33 66 0.45 0.39 65 0.89 0.47 81 0.86 0.52 0.69 0.59 59
-30-89 DAYS P/D 0.56 1.06 27 0.76 1.31 23 1.15 1.55 34 1.45 1.94
ANALYSIS OF PAST DUE NONACCRUAL & RESTRUCTURED LOANS & LEASES PAGE 08A
CHARTER # 1316 ANALYSIS OF PAST DUE, NONACCRUAL & RESTRUCTURED LOANS & LEASES
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
% OF NON-CURR LN&LS BY LN TYPE BANK PG 1 PCT BANK PG 1 PCT BANK PG 1PCT BANK PG 1 BANK PG 1
CREDIT CARD PLANS-90+ DAYS P/D 0.00 0.30 63 0.00 0.36 64 0.00 0.37 64 0.00 0.42 0.34 0.49
-NONACCRUAL 0.00 0.03 87 0.00 0.04 84 0.00 0.01 89 0.00 0.03 0.00 0.05
-TOTAL 0.00 0.39 59 0.00 0.51 59 0.00 0.46 62 0.00 0.58 0.34 0.59
-30-89 DAYS P/D 0.02 0.75 57 0.00 0.75 59 0.00 0.69 61 0.00 0.91
FOREIGN GOVT LNS-90+ DAYS P/D N/A 0.00 98 N/A 0.00 99 N/A 0.00 97 N/A 0.00 N/A 0.00
-NONACCRUAL N/A 0.00 97 N/A 0.00 96 N/A 0.00 95 N/A 0.00 N/A 0.00
-TOTAL N/A 0.00 96 N/A 0.00 96 N/A 0.01 93 N/A 0.00 N/A 0.00
-30-89 DAYS P/D N/A 0.00 96 N/A 0.00 96 N/A 0.00 95 N/A 0.00
LEASE FINANCING-90+ DAYS P/D 0.00 0.02 76 0.02 0.03 78 0.03 0.03 74 0.03 0.04 0.03 0.04
-NONACCRUAL 0.12 0.20 70 0.35 0.30 72 1.51 0.41 85 0.24 0.39 0.04 0.27
-TOTAL 0.00 0.28 63 0.00 0.37 68 1.00 0.49 82 0.00 0.50 0.00 0.38
-30-89 DAYS P/D 0.01 0.35 56 0.22 0.44 59 0.41 0.60 63 0.48 0.54
AGRICULTURAL LNS-90+ DAYS P/D 0.00 0.00 87 0.00 0.01 82 0.00 0.01 82 0.00 0.03 0.00 0.05
-NONACCRUAL 0.00 0.26 65 0.00 0.53 57 0.00 0.75 50 2.37 0.80 0.00 0.60
-TOTAL 0.00 0.29 61 0.00 0.57 56 0.00 0.82 48 2.37 0.87 0.00 0.74
-30-89 DAYS P/D 0.00 0.13 65 0.00 0.29 60 0.00 0.43 54 1.82 0.56
OTHER LN&LS-90+ DAYS P/D 0.06 0.02 85 0.07 0.02 85 0.79 0.03 97 0.58 0.07 0.12 0.07
-NONACCRUAL 0.07 0.10 70 0.24 0.16 76 0.18 0.25 65 0.24 0.22 0.57 0.28
-TOTAL 0.12 0.18 64 0.31 0.21 73 0.97 0.36 84 0.81 0.38 0.69 0.38
-30-89 DAYS P/D 0.04 0.28 46 0.04 0.32 41 0.06 0.35 45 0.55 0.56
GROSS LN&LS-90+ DAYS P/D 0.13 0.10 67 0.21 0.13 71 0.44 0.16 86 0.42 0.20 0.25 0.18
-NONACCRUAL 0.33 0.46 40 0.79 0.66 64 0.97 0.83 65 0.63 0.84 0.71 0.67
-TOTAL 0.46 0.59 40 1.00 0.83 64 1.41 1.06 73 1.05 1.12 0.96 0.89
-30-89 DAYS P/D 0.22 0.64 16 0.37 0.81 21 0.70 1.02 33 0.82 1.27
OTHER PERTINENT RATIOS:
NON-CUR LN&LS TO-LN&LS ALLOWANCE 34.23 48.60 34 56.64 59.80 53 78.31 70.12 66 70.30 70.77
-EQUITY CAPITAL 3.28 3.93 44 6.11 5.89 60 8.61 7.43 65 8.67 8.19
%TOTAL P/D LN&LS-INCL NONACCRUAL 0.68 1.29 21 1.37 1.71 38 2.11 2.12 55 1.87 2.45
IENC-LOANS TO TOTAL LOANS N/A 0.00 99 N/A 0.00 99 N/A 0.00 99 N/A 0.00 0.80 0.75
NON CURR LNS+OREO TO LNS+OREO 0.49 0.65 38 1.05 0.91 63 1.44 1.15 70 1.07 1.20
NON-CURR RESTRUCT DEBT/GR LN&LS 0.00 0.00 82 0.00 0.00 82 0.00 0.00 85 0.00 0.00
CURR+NON-CURR RESTRUCT/GR LN&LS 0.00 0.00 82 0.00 0.00 82 0.00 0.00 85 0.00 0.00
CURRENT RESTRUCT LN&LS 0.00 0.01 77 0.00 0.01 76 0.00 0.01 78 0.00 0.01 60
INTEREST RATE RISK ANALYSIS AS A PERCENT OF ASSETS PAGE 09
CHARTER # 1316 INTEREST RATE RISK ANALYSIS AS A PERCENT OF ASSETS
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
LONG ASSETS INSTS W/ OPTIONS BANK PG 1PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
MORTGAGE LOANS & PASS THRUS 17.68 19.25 48 11.56 19.98 31 16.77 18.58 46 20.17 18.25 25.14 17.13
LOANS & SECURITIES OVER 15 YRS 2.44 4.31 50 1.18 5.29 23 1.25 5.89 27 2.23 6.67 2.49 5.61
LOANS & SECURITIES 5-15 YRS 3.90 5.66 46 3.34 6.32 37 5.42 4.50 66 6.81 4.19 12.66 4.07
OTHER LOANS AND SECURITIES 56.47 57.33 43 55.09 56.33 39 55.21 56.69 37 57.46 57.82 57.00 60.41
LOANS & SECURITIES OVER 15 YRS 6.42 1.80 91 6.81 1.81 92 3.63 1.55 85 2.27 1.73 1.79 1.65
LOANS & SECURITIES 5-15 YRS 8.59 6.02 74 8.12 6.51 74 8.02 6.05 73 8.51 6.93 9.25 7.45
TOTAL LOANS & SECURITIES OVR 15 8.87 6.59 70 7.99 7.64 62 4.88 7.97 41 4.50 8.73 4.27 7.46
CMO`S TOTAL 5.59 5.01 57 10.86 4.35 83 6.57 4.17 70 6.04 3.67 3.66 3.43
AVG LIFE OVER 3 YEARS 1.92 2.77 49 6.56 2.48 82 4.50 1.75 81 3.88 2.09 2.77 2.22
STRUCTURED NOTES 2.54 0.09 96 3.71 0.02 97 1.71 0.00 97 3.67 0.01 0.00 0.01
MORTGAGE SERVICING 0.44 0.09 89 0.40 0.09 89 0.38 0.08 87 0.36 0.10 0.42 0.10
TOTAL 2.98 0.28 94 4.10 0.21 96 2.09 0.12 95 4.03 0.15 0.42 0.15
OVERALL RISK INDICATORS

AVAILABLE FOR SALE 21.21 19.92 57 23.19 21.08 59 19.55 19.74 53 19.65 18.31 7.80 16.03
HELD TO MATURITY 0.00 2.21 39 0.00 1.49 45 0.00 1.32 47 0.00 1.27 0.00 2.55
OFF BALANCE SHEET 53.92 38.41 78 59.16 35.05 82 63.28 33.25 85 77.74 36.47 77.89 37.65
UNREALIZED APPN/DEPN 0.00 0.01 75 0.00 0.01 71 0.00 0.03 62 0.00 0.01 0.00 0.00
UNREAL APP/DEP % TIER ONE CAP 0.00 0.09 66 0.00 0.20 60 0.00 0.41 53 0.00 0.18 0.00 -0.04
CONTRACTUAL MAT/REPRICE DATA

LOANS/SECURITIES OVER 3 YEARS 31.26 34.86 39 33.65 36.73 42 29.34 32.81 43 31.56 33.89 39.58 34.43
LIABILITIES OVER 3 YEARS 3.94 3.69 61 2.60 4.35 40 2.80 4.23 46 4.80 4.14 2.91 3.15
NET 3 YEAR POSITION 27.32 30.47 42 31.05 31.94 49 26.54 28.15 44 26.77 29.35 36.67 30.79
LOANS/SECURITIES OVER 1 YEAR 39.64 48.26 28 44.25 49.32 37 38.03 47.26 31 41.58 47.08 47.92 46.79
LIABILITIES OVER 1 YEAR 10.12 10.15 53 6.82 10.89 35 11.00 10.96 54 12.45 9.84 9.55 9.33
NET OVER 1 YEAR POSITION 29.52 37.04 34 37.43 37.97 48 27.03 35.29 28 29.13 36.51 38.37 36.59
NON-MATURITY DEPOSITS 53.66 44.45 71 56.69 43.23 79 55.63 43.48 76 53.53 41.35 46.91 38.41
NON-MATURITY DEPS % LONG ASSETS 171.62 148.12 67 168.46 137.21 74 189.59 164.25 70 169.60 149.68 118.51 132.80
NET OVER 3 YEAR POSITION -22.39 -9.97 31 -23.04 -6.76 21 -26.29 -10.93 28 -21.97 -7.77 -7.33 -4.21
AS % TIER 1 CAPITAL
STRUCTURED NOTES 36.85 1.25 97 44.79 0.26 97 19.78 0.02 97 48.87 0.11 0.00 0.20
MORTGAGE SERVICING (FV) 6.32 1.28 89 4.79 1.32 84 4.40 1.22 83 4.82 1.41 4.94 1.52 61
TOTAL 43.17 3.99 95 49.58 3.04 95 24.18 1.80 94 53.69 2.23 4.94 2.23
LIQUIDITY AND INVESTMENT PORTFOLIO
CERT # 6384 PNC BANK, NATIONAL ASSOCIATION PITTSBURGH, PA
PAGE
PAGE 10
10
CHARTER # 1316 LIQUIDITY AND INVESTMENT PORTFOLIO
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
SHORT TERM INVESTMENTS 2,229,243 1,692,295 2,670,109 463,423 414,363
SHORT TERM ASSETS 9,724,037 8,787,184 11,005,166 9,304,052 9,320,772
SHORT TERM NON CORE FUNDING 8,936,809 7,111,124 4,098,514 6,099,247 9,080,920
NON CORE LIABLILITIES 12,895,115 8,961,089 7,113,717 10,946,665 13,508,285
FED HOME LOAN BOR MAT < 1 YR 0 1,000,000 100,178 251,487 0
FED HOME LOAN BOR MAT > 1 YR 88,508 115,406 1,156,185 1,795,156 0
OTH BORROWING MAT < 1 YR 3,046,632 2,264,921 1,136,140 1,522,016 2,496,693
OTH BORROWING MAT > 1 YR 3,624,223 1,765,851 1,819,091 2,660,077 3,793,924
DEBT SECURITIES 90+ DAYS P/D 0 0 0 0 0

TOTAL NON-CURRENT DEBT SEC 0 0 0 0 0
FAIR VALUE STRUCTURED NOTES 1,870,471 2,308,446 1,091,963 2,282,713 0
PERCENT OF TOTAL ASSETS BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
SHORT TERM INVESTMENTS 3.02 5.23 52 2.73 6.25 50 4.48 6.80 52 0.74 6.66 0.66 6.42
MARKETABLE EQUITY SEC (MES) 0.14 0.13 69 0.44 0.11 89 0.56 0.14 88 0.27 0.19 0.06 0.14
CORE DEPOSITS 63.23 54.19 68 66.75 53.75 75 68.09 55.49 74 66.70 54.90 63.61 53.80
S T NON CORE FUNDING 12.11 23.42 18 11.47 23.24 18 6.87 22.36 3 9.74 24.00 14.37 26.19
LIQUIDITY RATIOS
NET S T NONCORE FUND DEPENDENCE 11.49 20.74 26 11.37 19.74 26 3.05 18.12 15 10.81 20.54 15.98 23.90
NET NON CORE FUND DEPENDENCE 18.27 32.55 25 15.25 33.01 18 9.49 30.57 14 20.10 31.86 24.15 34.13
BROKERED DEPOSITS TO DEPOSITS 4.33 4.78 63 3.37 4.04 67 3.04 3.37 68 2.53 3.01 1.28 3.04
BROKER DEP MAT < 1YR TO BKR DEPS 79.99 30.44 74 82.75 23.86 76 79.98 23.74 72 75.72 23.98 23.22 26.56
SHORT TRM INV TO S T NCORE FUND 24.94 27.31 64 23.80 31.19 65 65.15 36.36 81 7.60 31.52 4.56 27.78
SHORT TERM ASSET TO S T LIABS 79.16 84.55 57 80.23 86.18 56 138.34 85.20 85 81.85 78.07 51.86 69.20
NET S T LIAB TO ASSETS 3.47 7.44 40 3.49 6.97 37 -5.11 6.47 22 3.30 9.80 13.70 13.32
NET LOANS & LEASES TO DEPOSITS 81.00 88.28 36 73.73 87.72 28 79.71 85.95 37 85.91 88.91 107.19 90.79
NET LN&LS TO CORE DEPOSITS 91.76 116.10 28 81.11 115.16 17 86.65 111.58 26 95.43 114.98 122.68 124.76
NET LN&LS & SBLC TO ASSETS 65.01 62.79 44 62.33 61.43 46 66.55 61.96 56 70.23 63.58 84.46 65.93
SECURITIES MIX
HELD-TO-MATURITY % TOTAL SECS
US TREAS & GOVT AGENCIES 0.00 1.24 79 0.00 0.91 81 0.00 0.87 82 0.00 0.55 0.00 2.19
MUNICIPAL SECURITIES 0.00 1.17 56 0.00 0.74 59 0.00 0.89 60 0.00 0.81 0.00 1.21
PASS-THROUGH MTG BACKED SECS 0.00 1.07 63 0.00 0.53 68 0.00 0.30 69 0.00 0.42 0.00 1.28
CMO & REMIC MTG BACKED SECS 0.00 0.53 84 0.00 0.23 86 0.00 0.13 86 0.00 0.21 0.00 0.55
ASSET BACKED SECURITIES 0.00 0.00 95 0.01 0.00 95 0.00 0.00 94 0.00 0.00 N/A 0.00
OTHER DOMESTIC DEBT SECS 0.00 0.48 77 0.00 0.16 78 0.00 0.21 75 0.00 0.53 0.00 1.00
FOREIGN DEBT SECURITIES 0.00 0.01 84 0.00 0.00 83 0.00 0.00 82 0.00 0.00 0.00 0.01
TOTAL HELD-TO-MATURITY 0.00 8.01 38 0.01 5.50 45 0.00 5.12 47 0.00 5.44 0.00 10.20
AVAILABLE-FOR-SALE % TOTAL SECS

US TREASURY & GOVT AGENCIES 27.52 18.04 70 23.19 17.03 68 5.20 17.29 33 5.48 17.15 3.85 19.17
MUNICIPAL SECURITIES 0.84 3.30 51 0.05 4.11 24 0.12 3.93 29 0.15 4.47 0.92 3.78
PASS-THROUGH MTG BACKED SECS 6.41 25.79 22 2.71 29.20 15 14.05 27.74 40 20.36 28.13 26.19 23.32
CMO & REMIC MTG BACKED SECS 7.33 12.51 49 12.84 11.44 60 5.83 12.98 45 2.22 12.45 8.24 10.11
ASSET BACKED SECURITIES 11.33 1.13 94 17.00 1.29 93 20.98 1.72 94 20.33 2.07 N/A 0.00
OTHER DOMESTIC DEBT SECS 45.89 8.05 95 42.28 7.10 95 50.86 6.88 97 49.90 6.64 51.88 8.48
FOREIGN DEBT SECURITIES 0.00 0.26 64 0.00 0.26 62 0.10 0.23 81 0.21 0.34 0.56 0.53
INV MUT FND & OTH MKTBL 0.67 0.70 68 1.90 0.59 85 2.85 0.91 84 1.35 1.32 0.73 0.89
OTHER EQUITY SECURITIES N/A 0.00 99 N/A 0.00 99 N/A 0.00 99 N/A 0.00 7.65 3.02
TOTAL AVAILABLE-FOR-SALE 100.00 84.59 99 99.99 87.27 59 100.00 87.79 99 100.00 85.85 100.00 81.10
OTHER SECURITIES RATIOS:

APP (DEP) HI RISK & STRUC/T1CAP -0.09 -0.04 5 0.16 -0.03 98 1.38 0.00 98 -0.34 0.00 0.00 -0.02
APP (DEP) IN HTM SEC TO HTM SEC N/A 0.62 60 0.00 1.01 57 N/A 1.28 53 N/A 0.53 N/A 0.13
APP (DEP) IN HTM SEC TO EQY CAP 0.00 0.08 67 0.00 0.18 61 0.00 0.36 53 0.00 0.16 0.00 -0.04 62
PLEDGED SECURITIES TO TOT SEC 51.76 54.78 38 46.50 49.08 42 71.85 51.03 70 45.01 49.63 74.50 53.39
CERT # 6384
CAPITAL ANALYSIS
PNC BANK, NATIONAL ASSOCIATION
PAGE 11
PITTSBURGH, PA PAGE 11
CHARTER # 1316 CAPITAL ANALYSIS
12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000
END OF PERIOD CAPITAL ($000)
PERPETUAL PREFERRED 0 0 0 0 0
+ COMMON STOCK 218,918 218,919 218,919 218,918 218,919
+ SURPLUS 1,569,359 1,168,354 1,373,195 1,344,558 1,255,760
+ UNDIVIDED PROFITS 4,355,113 4,179,193 3,958,844 3,298,500 3,845,935
+ ACCUM OTHER COMP INCOME -47,729 56,055 311,591 25,685 -69,498
+ OTHER EQUITY CAPITAL COMP 0 0 0 0 0
TOTAL EQUITY CAPITAL 6,095,661 5,622,521 5,862,549 4,887,661 5,251,116
SUBORD NOTES & DEBENTURES 1,895,482 1,340,133 1,153,771 1,153,235 1,152,698
CHANGES IN TOTAL EQUITY ($000)

BALANCE AT BEGINNING OF PERIOD 5,622,521 5,862,549 4,887,661 5,251,116 5,541,015
+ NET INCOME 913,426 970,278 1,061,504 491,731 1,007,226
+ SALE OR PURCHASE OF CAPITAL 0 0 1,933 18,960 8,801
+ MERGER & ABSORPTIONS 754,217 0 0 70,284 142,053
+ RESTATE DUE TO ACCTG ERROR&CHG 0 0 0 0 0
+ TRANS WITH PARENT -290,719 -204,770 25,545 5,345 -969,849
- DIVIDENDS 800,000 750,000 400,000 1,050,000 650,000
+ OTHER COMPREHENSIVE INCOME -103,784 -255,536 285,906 100,225 171,870
BALANCE AT END OF PERIOD 6,095,661 5,622,521 5,862,549 4,887,661 5,251,116
INTANGIBLE ASSETS
MORTGAGE SERVICING RIGHTS 242,457 208,957 200,658 199,344 155,229
+ PURCH CRED CARD RELATION 0 0 0 0 0
+ OTHER INTANGIBLES 40,840 25,015 20,955 4,220 18,619
+ GOODWILL 1,942,558 1,330,947 1,290,209 1,016,636 1,051,192
TOTAL INTANGIBLES 2,225,855 1,564,919 1,511,822 1,220,200 1,225,040
MEMO: GRANDFATHERED INTANG 0 0 0 0 0
CAPITAL RATIOS BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 PCT BANK PG 1 BANK PG 1
PERCENT OF TOTAL EQUITY:
NET LOANS & LEASES (X) 7.02 6.44 60 5.97 6.71 30 6.00 6.84 30 8.15 7.29 9.39 7.81
SUBORD NOTES & DEBENTURES 31.10 6.96 91 23.84 8.04 81 19.68 8.56 75 23.59 10.22 21.95 11.33
LONG TERM DEBT 31.10 6.96 91 23.84 8.04 81 19.68 8.56 75 23.59 10.22 21.95 11.33
COM RE & RELATED VENTURES 84.04 175.40 28 73.59 165.00 26 78.36 160.71 29 101.51 168.29 95.98 159.49
PERCENT OF AVERAGE TOTAL EQUITY:
NET INCOME 15.26 14.55 57 16.56 14.41 64 19.48 14.95 74 9.37 14.35 18.94 14.14
DIVIDENDS 13.37 6.85 81 12.80 8.27 71 7.34 8.52 46 20.01 9.54 12.22 9.74
RETAINED EARNINGS 1.90 6.53 22 3.76 5.09 45 12.14 5.16 82 -10.64 3.75 6.72 3.21
OTHER CAPITAL RATIOS:
DIVIDENDS TO NET OPER INCOME 87.58 46.73 82 77.30 57.26 62 37.68 55.73 35 211.54 64.32 64.53 62.27
EQUITY CAPITAL TO ASSETS 8.26 9.74 40 9.07 8.95 61 9.83 8.79 76 7.81 8.48 8.31 8.03
GROWTH RATES:
TOTAL EQUITY CAPITAL 8.42 20.28 40 -4.09 10.34 10 19.95 14.57 74 -6.92 21.62 -5.23 26.75
EQUITY GROWTH LESS ASST GROWTH -10.59 4.55 10 -8.09 0.59 23 24.70 2.62 92 -6.01 4.03 2.10 4.17
INTANG ASSETS % TOTAL EQUITY
MORTGAGE SERVICING RIGHTS 3.98 0.92 84 3.72 1.04 84 3.42 0.96 84 4.08 1.10 2.96 1.13
GOODWILL 31.87 13.50 81 23.67 10.19 82 22.01 8.95 83 20.80 9.32 20.02 8.69
PURCH CREDIT CARD RELATION 0.00 0.02 82 0.00 0.02 84 0.00 0.01 85 0.00 0.01 0.00 0.02
ALL OTHER INTANGIBLES 0.67 1.54 42 0.44 1.28 39 0.36 1.16 40 0.09 1.10 0.35 1.04 63
TOTAL INTANGIBLES 36.52 18.43 74 27.83 14.50 78 25.79 12.41 80 24.96 13.17 23.33 12.24

This Session: Financial Status of Bank

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This Session: Financial Status of Bank

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This Session

Partner in Building Corporate & Personal EQuity

 Financial status of bank

 What has been the loss experience?

 What amount of losses do we expect?

 How prepared are we?

PNC BANK, NATIONAL ASSOCIATION COMMUNITY NATIONAL BANK

PNC BANK, NATIONAL ASSOCIATION COMMUNITY NATIONAL BANK

 …the risk to a financial institution’s condition resulting from adverse movements

Example: $10,000 Car loan

… the risk to a financial institution’s condition resulting from adverse movements in

 There is no meaningful way to estimate the likelihood of fraud or other

 Internal Fraud, e.g., intentional mismarking of positions

 Employment Practices/Workplace, e.g., discrimination

 E-banking: a key risk associated with operations, usually

 no meaningful way to estimate the likelihood of fraud or other contingencies from

PNC BANK, NATIONAL ASSOCIATION COMMUNITY NATIONAL BANK

…the potential that unenforceable contracts, lawsuits, or adverse judgments can

 Reputational risk is the potential that negative publicity regarding an institution’s

 arising from poor business decisions, improper implementation of decisions or

 Management of off-balance sheet activities

 Sensitivity to market risk

Asset Concentration Groups

Asset Concentration Groups

 Off-balance sheet activities

 Allowance for loan losses

 Securities gains and losses

 Non-recurring sales of assets

 Balance Sheet Information:

LOAN & LEASE ANALYSIS

TOTAL INTEREST EXPENSE 752,975 549,461 791,980 1,666,175 2,335,984 37.04

NON-INTEREST EXPENSE 2,777,489 2,425,253 2,233,665 2,435,920 2,188,675 14.52

REALIZED G/L HLD-TO-MATURITY SEC 0 0 0 0 0 NA

APPLICABLE INCOME TAXES 381,926 490,376 566,240 260,608 511,194

NET OPERATING INCOME 913,426 970,278 1,061,504 496,371 1,007,226 -5.86

NET EXTRAORDINARY ITEMS 0 0 0 -4,640 0

CASH DIVIDENDS DECLARED 800,000 750,000 400,000 1,050,000 650,000 6.67

P E R C E N T O F A V E R A G E A S SE T S BANK PG 1 PCT B ANK PG 1 PCT B ANK PG 1 PCT B ANK PG 1 B ANK PG 1

CREDIT DERIVS BANK AS GTR 0 0 109,389 0 0

HELD-FOR-TRADING 105,054,536 43,254,800 43,238,184 40,968,606 31,430,645

DERIVATIVE CONTRACTS (RBC DEF ) 59,989,453 39,603,563 36,879,140 37,631,791 32,073,546

GROSS NEGATIVE FAIR VALUE 915,252 898,113 1,129,656 573,820 315,983

PAST DUE DERIV INSTRUMENTS:

IMPACT NONTRADED DERIV CONTRACTS:

BY TIER ONE CAPITAL:

LIABILITIES, PERCENT OF AVG ASST

PROVISION FOR CREDIT LOSS 51,553 176,612 290,050 898,743 133,000

NET LOSSES BY TYPE OF LN&LS

MEMORANDUM (% OF AVG TOT LOANS):

OTHER REAL ESTATE OWNED % ASSETS

ASSET SERVICING % ASSETS

RESTRUCTURED LN&LS 90+ DAYS P/D 0 0 0 0 0

CURRENT RESTRUCTURED LN&LS 0 0 0 0 0

OTHER PERTINENT RATIOS:

OVERALL RISK INDICATORS

CONTRACTUAL MAT/REPRICE DATA

DEBT SECURITIES 90+ DAYS P/D 0 0 0 0 0

AVAILABLE-FOR-SALE % TOTAL SECS

OTHER SECURITIES RATIOS:

SUBORD NOTES & DEBENTURES 1,895,482 1,340,133 1,153,771 1,153,235 1,152,698

CHANGES IN TOTAL EQUITY ($000)

MEMO: GRANDFATHERED INTANG 0 0 0 0 0

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