<PAGE> 1
EXHIBIT 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS
On October 2, 2000, the Corporation announced that it reached a definitive
agreement for Washington Mutual, F.A. to acquire the stock of PNC's residential
mortgage banking affiliates. As a result of the pending sale, earnings for the
residential mortgage banking business are reflected as discontinued operations
throughout the Corporation's financial statements. Earnings of the residential
mortgage banking business are shown separately on one line in the income
statement for all periods presented. The following quarterly proforma income
statements represent PNC's results of operations using discontinued operations
accounting presentation for the residential mortgage banking business.
These quarterly proforma income statements do not purport to represent the
results of operations of PNC had the pending sale of the residential mortgage
banking business occurred during or prior to any of the quarters presented, or
that may be attained in the future.
<PAGE> 2
Exhibit 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS
<TABLE>
<CAPTION>
Three months ended June 30 March 31
Dollars in millions, except per share data 2000 2000
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<S> <C> <C>
INTEREST INCOME
Loans and fees on loans $1,009 $984
Securities available for sale 97 94
Loans held for sale 52 64
Other 22 19
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Total interest income 1,180 1,161
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INTEREST EXPENSE
Deposits 397 369
Borrowed funds 238 237
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Total interest expense 635 606
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Net interest income 545 555
Provision for credit losses 35 31
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Net interest income less provision for credit losses 510 524
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NONINTEREST INCOME
Asset management 196 186
Fund servicing 164 155
Service charges on deposits 50 50
Brokerage 60 71
Consumer services 51 47
Corporate services 80 82
Equity management 48 87
Net securities losses (3)
Other 79 53
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Total noninterest income 728 728
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NONINTEREST EXPENSE
Staff expense 396 411
Net occupancy 48 53
Equipment 55 56
Amortization 28 28
Marketing 19 13
Distributions on capital securities 17 16
Other 217 215
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Total noninterest expense 780 792
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Income from continuing operations before income taxes 458 460
Income taxes 159 158
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Income from continuing operations $299 $302
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Income from discontinued operations (less applicable income
taxes of $10 and $5) 16 6
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Net income $315 $308
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Income from continuing operations applicable to diluted
earnings $295 $297
Net income applicable to diluted earnings 311 303
EARNINGS PER COMMON SHARE
Continuing operations
Basic $1.01 $1.02
Diluted 1.01 1.01
Net income
Basic $1.07 $1.04
Diluted 1.06 1.03
CASH DIVIDENDS DECLARED PER COMMON SHARE .45 .45
AVERAGE COMMON SHARES OUTSTANDING
Basic 289.8 291.9
Diluted 292.2 294.1
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</TABLE>
<PAGE> 3
Exhibit 99.1
THE PNC FINANCIAL SERVICES GROUP, INC.
QUARTERLY PROFORMA INCOME STATEMENTS REFLECTING DISCONTINUED OPERATIONS
<TABLE>
<CAPTION>
Three months ended December 31 September 30 June 30 March 31
Dollars in millions, except per share data 1999 1999 1999 1999
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans and fees on loans $985 $982 $987 $1,111
Securities available for sale 96 98 94 74
Loans held for sale 43 31 23 7
Other 13 14 12 13
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Total interest income 1,137 1,125 1,116 1,205
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INTEREST EXPENSE
Deposits 345 340 333 351
Borrowed funds 230 212 207 221
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Total interest expense 575 552 540 572
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Net interest income 562 573 576 633
Provision for credit losses 30 30 25 78
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Net interest income less provision for credit losses 532 543 551 555
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NONINTEREST INCOME
Asset management 176 175 169 161
Fund servicing 89 56 54 52
Service charges on deposits 53 53 51 50
Brokerage 58 52 53 56
Consumer services 52 49 48 69
Corporate services 36 76 84 (63)
Equity management 52 22 17 9
Net securities (losses) gains (22) 2 42
Sale of subsidiary stock 64
Other 67 86 71 331
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Total noninterest income 625 571 589 665
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NONINTEREST EXPENSE
Staff expense 364 324 322 370
Net occupancy 48 47 46 83
Equipment 52 48 48 84
Amortization 23 20 21 28
Marketing 24 17 15 14
Distributions on capital securities 17 16 16 16
Other 225 184 216 155
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Total noninterest expense 753 656 684 750
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Income from continuing operations before income taxes 404 458 456 470
Income taxes 117 159 154 156
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Income from continuing operations $287 $299 $302 $314
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Income from discontinued operations (less applicable income
taxes of $12, $12, $10 and $7) 17 21 13 11
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Net income $304 $320 $315 $325
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Income from continuing operations applicable to diluted earnings $282 $294 $298 $310
Net income applicable to diluted earnings 299 315 311 321
EARNINGS PER COMMON SHARE
Continuing operations
Basic $.96 $1.00 $1.00 $1.02
Diluted .95 .99 .99 1.01
Core diluted .95 .93 .94 .90
Net income
Basic $1.02 $1.07 $1.04 $1.06
Diluted 1.01 1.06 1.03 1.05
Core diluted 1.01 1.00 .98 .94
CASH DIVIDENDS DECLARED PER COMMON SHARE .45 .41 .41 .41
AVERAGE COMMON SHARES OUTSTANDING
Basic 293.4 294.5 297.4 302.3
Diluted 296.3 297.6 300.9 305.5
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</TABLE>
