National City Corporation 8-K

0000950123-05-014655.txt : 20051213 0000950123-05-014655.hdr.sgml : 20051213 20051213061126 ACCESSION NUMBER: 0000950123-05-014655 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20051213 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051213 DATE AS OF CHANGE: 20051213 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL CITY CORP CENTRAL INDEX KEY: 0000069970 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 341111088 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07229 FILM NUMBER: 051259710 BUSINESS ADDRESS: STREET 1: 1900 E NINTH ST CITY: CLEVELAND STATE: OH ZIP: 44114 BUSINESS PHONE: 2165752000 MAIL ADDRESS: STREET 1: 1900 EAST NINTH STREET CITY: CLEVELAND STATE: OH ZIP: 44114 8-K 1 l17410ae8vk.htm NATIONAL CITY CORPORATION 8-K National City Corporation 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

December 13, 2005

Date of Report (Date of earliest event reported)

NATIONAL CITY CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	1-10074	34-1111088

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


1900 East Ninth Street, Cleveland, Ohio		44114-3484

(Address of principal executive offices)		(Zip Code)

(216) 222-2000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

    o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

    o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

    o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

    o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01. REGULATION FD DISCLOSURE.

On December 13, 2005, National City Corporation (“National City”) included on its Web site at www.NationalCity.com the Mid-Quarter Update to its Financial Supplement that contains additional information through November 30, 2005. The purpose of this update is to assist investors, analysts, and other interested parties in their analysis of National City.

Reference is made to the Mid-Quarter Update to National City’s Financial Supplement, dated November 30, 2005, a copy of which is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information in this Form 8-K and the Mid-Quarter Update to National City’s Financial Supplement, incorporated herein by reference, is being furnished, not filed, under Item 7.01 of this Form 8-K.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

   a)   Financial statements of businesses acquired: None

   b)   Pro forma financial information: None

   c)   Exhibit 99.1 — Mid-Quarter Update to Financial Supplement of National City Corporation, dated November 30, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	National City Corporation

	(Registrant)
Dated: December 13, 2005	By	/s/ David L. Zoeller

		David L. Zoeller Executive Vice President and General Counsel

EX-99.1 2 l17410aexv99w1.htm EXHIBIT 99.1 MID-QUARTER UPDATE TO FINANCIAL SUPPLEMENT Exhibit 99.1

Exhibit 99.1

Unaudited
Mid-Quarter Update to Financial Supplement
November 30, 2005

Table of Contents


REVIEW OF FINANCIAL TRENDS			3
CONSOLIDATED SELECTED AVERAGE BALANCES			5
CAPITALIZATION			6
FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS			6
CONSUMER AND SMALL BUSINESS FINANCIAL SERVICES PERFORMANCE MEASURES			7
ASSET MANAGEMENT PERFORMANCE MEASURES			8
MORTGAGE BANKING STATISTICS			8
FIRST FRANKLIN ORIGINATION AND PORTFOLIO STATISTICS			9

Table of Contents (continued)
Mid-Quarter Update to Financial Supplement
SUMMARY OF PRESENTATION CHANGES

Presentation changes made to this Mid-Quarter Update to Financial Supplement are as follows:

Home Equity Lines of Credit reclassification

During November 2005, the Corporation reclassified $168 million of net deferred origination costs from other liabilities to home equity lines of credit. Prior period financial information has been updated to reflect this reclassification. The specific line items affected by the reclassification are noted with an asterisk (*).

First Franklin reclassification

During November 2005, the Corporation reclassified certain SFAS 91 expenses from third-party services and salaries, benefits, and other personnel expenses to mortgage banking revenue. Prior period financial information has been updated to reflect this reclassification. The specific line items affected by the reclassification are noted with a double asterisk (**).

Consolidated Selected Average Balances — page 5

Interest bearing home equity lines of credit custodial balances have been added to the memo section.

National City Corporation
Review of Financial Trends

This review contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Although management believes the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation’s business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements is available in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2004, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC’s Web site at www.sec.gov or on the Corporation’s Web site at www.NationalCity.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so.

Earning Assets, Net Interest Margin, and Net Interest Income

Both earning assets and net interest margin are showing a slight decline through November. Commercial loan growth continues, but at a slower pace compared to earlier in the year. Asset-based lending, leasing, and commercial real estate are the main drivers of growth. The new business pipeline in the middle market is healthy, but payoffs and paydowns have caused overall volumes to be relatively flat. Growth in the consumer portfolio has slowed due to the decision to begin selling a portion of home equity production and to exit the indirect auto lending business. Deposit account acquisition trends remain favorable, and retail core deposit growth is expected to be comparable to that of the third quarter.

Noninterest Income and Expense

In November, the Corporation completed its first sale of $1.5 billion of home equity lines for a net gain of approximately $20 million. Formerly, all home equity originations were retained in portfolio. Mortgage servicing right (MSR) net hedging results were positive through the first two months of the quarter. National City Mortgage results for the fourth quarter on an operating basis are expected to be up modestly from the third quarter, aided by lower noninterest expenses. Gain-on-sale margins at First Franklin are running slightly below third quarter levels. In conjunction with the previously announced decision to exit the indirect retail auto lending business, management has reclassified that portfolio to held for sale or securitization and recorded a writedown of $27 million to estimated sale value. No other unusual fee income trends are evident.

On an operating basis, no unusual expense trends are evident in the quarter. As previously disclosed, non-interest expenses for the fourth quarter will include severance costs, lease terminations, and other charges associated with implementing the Best-in-Class program to enhance revenue growth and improve operating efficiency. These charges are expected to total between $60 million and $70 million. In addition, the Corporation has disposed of a portion of its bank stock fund investments, both by sale and through donations to its charitable foundation, resulting in incremental charitable contributions expense of $30 million in the fourth quarter, and securities gains of approximately $12 million.

Credit Quality

The change in bankruptcy laws which became effective in mid-October precipitated an unusually large number of personal bankruptcy filings in anticipation of that change. As a result, losses on unsecured consumer credit related to those specific filings increased in October and November. Management anticipates that losses on secured credits involved in these bankruptcies will be realized over the next several months, on the order of magnitude of $20 million to $30 million, and will provide for those losses in the fourth quarter. Commercial credit quality trends are stable to modestly improving.

Capital

In October and November, a total of 14.3 million shares were repurchased in the open market. Through December 9, an additional 217,000 shares were repurchased. Management intends to continue repurchasing shares, subject to market conditions and applicable laws and regulations, in the context of maintaining a tangible equity to tangible assets ratio of at least 6.5 percent.

Other

During the fourth quarter, the amortization of certain deferred loan origination fees and costs associated with home equity lines of credit was reclassified from card-related fees in noninterest income to interest income. The effect of the reclassification is to increase noninterest income and reduce net interest income by $79 million for the first nine months of 2005, with no effect on net income, and a reduction in reported net interest margin of approximately 10 basis points per quarter. All prior period amounts will be restated to conform to this new presentation.

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
CONSOLIDATED SELECTED AVERAGE BALANCES
($ in millions)


	November		October		September		August		July		June		May		April		March		February		January		December		November
	2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2004		2004

ASSETS

Available for sale securities, at cost	$	7,698	$	7,478	$	7,409	$	7,447	$	7,493	$	7,582	$	7,749	$	7,907	$	8,021	$	8,130	$	8,424	$	8,832	$	9,074

Portfolio loans:
Commercial	$	27,586	$	27,326	$	27,437	$	27,375	$	27,467	$	27,542	$	27,226	$	26,686	$	26,042	$	25,405	$	25,198	$	25,147	$	25,171
Commercial construction		3,295		3,202		3,077		3,058		3,112		3,056		2,996		2,944		2,904		2,917		2,906		2,926		2,957
Real estate — commercial		12,064		12,138		12,036		12,142		12,027		11,758		11,727		11,863		11,906		12,274		12,217		12,063		11,976
Real estate — residential		32,809		32,882		33,459		33,872		33,278		32,096		31,585		31,329		30,920		30,330		30,277		30,743		30,551
Home equity lines of credit*		21,345		22,630		22,450		22,180		21,861		21,491		21,024		20,331		19,813		19,563		19,186		18,708		18,201
Credit card and other unsecured lines of credit		2,436		2,453		2,421		2,409		2,369		2,303		2,295		2,312		2,315		2,338		2,400		2,393		2,327
Other consumer		5,771		7,990		7,934		7,704		7,504		7,615		8,232		8,307		8,290		8,325		8,309		7,966		7,911

Total portfolio loans*	$	105,306	$	108,621	$	108,814	$	108,740	$	107,618	$	105,861	$	105,085	$	103,772	$	102,190	$	101,152	$	100,493	$	99,946	$	99,094

Loans held for sale or securitization:
Commercial	$	33	$	27	$	17	$	25	$	12	$	9	$	20	$	9	$	9	$	17	$	21	$	22	$	13
Commercial real estate		174		72		49		66		136		197		295		345		397		214		315		384		371
Mortgage:
National City Mortgage		7,069		7,442		8,271		8,334		8,277		7,360		7,536		8,194		8,238		8,170		9,092		9,259		9,289
First Franklin		2,920		3,408		3,314		2,688		2,665		2,488		1,682		1,997		2,491		2,773		2,658		2,123		1,958
National City Home Loan Services (formerly Altegra)		—		—		—		—		—		—		—		—		—		—		71		144		—
Provident PCFS		—		—		—		—		—		—		—		—		2		2		3		3		—

Total mortgage loans held for sale		9,989		10,850		11,585		11,022		10,942		9,848		9,218		10,191		10,731		10,945		11,824		11,529		11,247
Automobile loans held for securitization		2,178		—		—		—		—		—		—		—		—		—		—		—		—
Credit card loans		207		—		—		426		420		214		—		—		—		—		—		—		—
Home equity lines of credit		—		47		—		—		—		—		—		—		—		—		—		—		—
Student loans		3		4		8		6		2		—		—		—		—		—		—		—		—

Total loans held for sale or securitization	$	12,584	$	11,000	$	11,659	$	11,545	$	11,512	$	10,268	$	9,533	$	10,545	$	11,137	$	11,176	$	12,160	$	11,935	$	11,631

LIABILITIES

Deposits:
Noninterest bearing	$	17,809	$	17,844	$	18,336	$	18,905	$	18,865	$	18,483	$	17,949	$	18,885	$	18,475	$	17,686	$	18,203	$	18,726	$	19,309
NOW and money market accounts		28,115		27,963		28,046		28,237		28,409		28,522		28,571		29,093		29,345		29,145		29,260		29,730		29,893
Savings accounts		2,185		2,211		2,250		2,303		2,356		2,402		2,418		2,456		2,478		2,548		2,567		2,634		2,744
Consumer time		20,115		19,688		19,567		19,332		18,770		18,479		18,126		17,819		17,459		17,197		16,914		16,739		16,669

Core deposits		68,224		67,706		68,199		68,777		68,400		67,886		67,064		68,253		67,757		66,576		66,944		67,829		68,615
Other		6,753		7,253		7,352		7,105		6,612		6,190		5,156		5,053		4,908		4,895		4,821		4,822		5,183
Foreign		9,479		9,510		8,680		9,612		9,523		7,569		7,861		6,851		7,714		8,882		11,957		11,882		9,983

Total deposits	$	84,456	$	84,469	$	84,231	$	85,494	$	84,535	$	81,645	$	80,081	$	80,157	$	80,379	$	80,353	$	83,722	$	84,533	$	83,781


Federal funds borrowed and security repurchase agreements	$	8,986	$	7,953	$	7,645	$	8,200	$	8,072	$	6,353	$	5,902	$	5,981	$	6,839	$	6,984	$	7,553	$	7,623	$	6,846
Borrowed funds		2,401		3,124		3,585		1,514		1,318		2,232		2,523		2,820		1,563		1,607		1,298		1,270		1,507
Long-term debt		31,394		32,501		33,105		33,094		33,311		33,663		34,938		34,470		33,435		32,190		29,475		28,527		29,284
Memo:
Noninterest bearing mortgage escrow principal and interest (P&I) balances	$	2,530	$	2,680	$	2,955	$	3,194	$	3,022	$	2,815	$	2,599	$	2,928	$	2,781	$	2,462	$	2,673	$	3,017	$	3,168
Noninterest bearing mortgage escrow taxes and insurance (T&I) balances		1,460		1,569		1,536		1,524		1,519		1,467		1,394		1,358		1,293		1,210		1,159		1,202		1,436
Noninterest bearing mortgage escrow replacement reserve (NRR) balances		122		121		118		122		123		119		114		114		99		108		102		107		118
Interest bearing mortgage escrow replacement reserve (IRR) balances		134		134		132		152		129		147		124		139		132		143		139		132		126
Interest bearing home equity lines of credit (HELOC) custodial balances		18		—		—		—		—		—		—		—		—		—		—		—		—
Noninterest bearing deposits excluding P&I, T&I, and NRR balances		13,697		13,474		13,727		14,065		14,201		14,082		13,842		14,485		14,302		13,906		14,269		14,400		14,587
Core deposits excluding P&I, T&I, NRR, IRR, and HELOC custodial balances		63,960		63,202		63,458		63,785		63,607		63,338		62,833		63,714		63,452		62,653		62,871		63,371		63,767


*		See note on Summary of Presentation Changes

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
CAPITALIZATION (Period End)

(In millions, except per share and employee data)


	November			October			September			August			July			June			May			April			March			February			January			December			November
	2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2004			2004

COMMON STOCK ROLLFORWARD

Beginning balance		619.3			628.9			634.8			637.6			636.7			636.4			636.7			637.8			640.1			646.0			646.7			651.5			655.4
Shares issued under stock award plans		.4			.1			.4			.7			1.4			.9			.6			.4			.6			.2			.7			.4			.5
Shares issued for PRIDES conversions		—			—			—			.4			—			1.2			.2			.8			2.1			—			1.7			—			—
Shares repurchased under repurchase authorizations		(4.6	)		(9.7	)		(6.3	)		(3.9	)		—			(1.4	)		(1.1	)		(2.2	)		(5.0	)		(6.0	)		(2.9	)		(5.1	)		(4.4	)
Shares exchanged for stock award plans		(.1	)		—			—			(.1	)		(.5	)		(.4	)		—			—			(.1	)		(.1	)		(.2	)		(.1	)		—
Other		—			—			—			.1			—			—			—			(.1	)		.1			—			—			—			—

Ending Balance		615.0			619.3			628.9			634.8			637.6			636.7			636.4			636.7			637.8			640.1			646.0			646.7			651.5


COMMON STOCK REPURCHASE ACTIVITY

Number of common shares repurchased		4.6			9.7			6.3			3.9			—			1.4			1.1			2.2			5.0			6.0			2.9			5.1			4.4
Average price per share of repurchased common shares	$	32.70		$	32.64		$	34.79		$	36.12			—		$	33.85		$	33.94		$	33.55		$	34.75		$	35.90		$	35.86		$	37.10		$	38.33
Total cost	$	150.4		$	315.5		$	216.2		$	142.4			—		$	49.0		$	36.4		$	73.8		$	173.2		$	216.8		$	104.0		$	189.3		$	168.2
Common shares remaining under authorization⁽¹⁾		34.0			38.6			8.3			14.6			18.5			18.5			19.9			21.0			23.2			28.2			34.2			37.1			17.2
Shares outstanding:
Average basic		615.7			623.8			633.0			637.3			637.2			636.8			636.4			637.4			638.4			642.8			647.8			648.4			653.4
Average diluted		622.8			630.4			641.6			646.5			645.9			644.0			644.1			644.2			646.5			652.9			658.2			660.8			667.2


⁽¹⁾		In October 2005, National City’s Board of Directors authorized the repurchase of an additional 40 million shares of issued and outstanding common stock. This new authorization is incremental to the December 2004 share repurchase authorization, for 25 million shares, which replaced all previous share authorizations.

FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS⁽¹⁾


	November		October		September		August		July		June		May		April		March		February		January		December		November
	2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2004		2004

Line of business staff:
Consumer and Small Business Financial Services		12,617		12,707		13,048		13,267		13,272		13,344		13,204		13,140		13,183		13,253		13,102		13,079		12,791
Wholesale Banking		2,425		2,416		2,415		2,415		2,402		2,388		2,342		2,334		2,350		2,328		2,296		2,282		2,280
National City Mortgage		7,703		7,749		7,831		7,929		7,956		7,956		7,939		7,936		7,970		7,945		7,904		7,814		7,761
National Consumer Finance
First Franklin Financial Corporation		2,676		2,681		2,716		2,733		2,696		2,598		2,483		2,429		2,392		2,388		2,376		2,391		2,492
National City Home Loan Services		510		447		442		437		413		398		372		347		341		333		325		325		326
National Home Equity		504		507		514		525		517		497		480		460		448		429		431		415		412
National City Warehouse Resources		82		83		84		86		83		80		84		84		68		67		68		69		70

Total National Consumer Finance		3,772		3,718		3,756		3,781		3,709		3,573		3,419		3,320		3,249		3,217		3,200		3,200		3,300
Asset Management		1,526		1,519		1,518		1,538		1,551		1,568		1,529		1,518		1,524		1,527		1,530		1,517		1,514
Corporate support staff⁽²⁾		6,427		6,479		6,565		6,645		6,708		6,664		6,581		6,622		6,832		7,042		7,020		7,338		7,500

Total Employees		34,470		34,588		35,133		35,575		35,598		35,493		35,014		34,870		35,108		35,312		35,052		35,230		35,146


⁽¹⁾		Represents period-end, active, full-time equivalent employees

⁽²⁾		Personnel expense associated with corporate staff are allocated to the lines of business either directly based on usage or indirectly as part of the general overhead allocation process

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
CONSUMER AND SMALL BUSINESS FINANCIAL SERVICES PERFORMANCE MEASURES

($ in millions)


	November		October		September		August		July		June		May		April		March		February		January		December		November
	2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2005		2004		2004

Average Total Deposits⁽¹⁾	$	54,430	$	53,893	$	53,905	$	53,884	$	53,638	$	53,369	$	53,032	$	53,053	$	52,694	$	52,115	$	51,988	$	52,062	$	51,611
DEPOSIT ACCOUNT METRICS⁽¹⁾⁽²⁾

Personal Deposits:
Noninterest Bearing Checking
Average total balance	$	3,094	$	3,134	$	3,185	$	3,191	$	3,282	$	3,264	$	3,338	$	3,497	$	3,430	$	3,355	$	3,343	$	3,296	$	3,218
Number of accounts⁽³⁾		1,747		1,759		1,765		1,770		1,762		1,764		1,752		1,753		1,753		1,833		1,831		1,748		1,734

Interest Bearing Checking
Average total balance	$	7,893	$	7,845	$	7,862	$	7,881	$	7,954	$	7,992	$	8,012	$	8,210	$	8,088	$	7,995	$	8,084	$	8,150	$	8,009
Number of accounts⁽³⁾		960		947		938		922		909		897		884		868		856		907		897		844		836

Money Market Savings
Average total balance	$	13,256	$	13,254	$	13,343	$	13,531	$	13,705	$	13,765	$	13,893	$	13,936	$	14,078	$	14,090	$	14,055	$	14,060	$	14,117
Number of accounts⁽³⁾		768		757		748		739		728		710		691		675		659		643		622		584		557

Regular savings
Average total balance	$	1,896	$	1,923	$	1,955	$	2,011	$	2,065	$	2,114	$	2,143	$	2,163	$	2,170	$	2,140	$	2,155	$	2,154	$	2,155
Number of accounts⁽³⁾		642		652		663		673		686		696		707		717		728		776		786		760		766

Business Deposits:
Average total balance	$	8,569	$	8,467	$	8,392	$	8,299	$	8,199	$	8,101	$	7,861	$	7,754	$	7,786	$	7,675	$	7,771	$	8,045	$	7,974
Number of accounts⁽³⁾		384		383		382		381		380		379		376		374		373		397		395		376		372

Time Deposits:
Average total balance	$	19,464	$	19,020	$	18,907	$	18,701	$	18,160	$	17,874	$	17,524	$	17,237	$	16,888	$	16,629	$	16,338	$	16,106	$	15,886
Number of accounts⁽³⁾		1,004		996		985		989		976		967		960		947		930		992		981		902		887

CONSUMER LOAN PRODUCTION METRICS (# of loans)⁽²⁾

Installment loan originations:
Home equity⁽⁴⁾		1,879		2,148		1,939		3,556		2,676		2,020		1,675		1,339		2,216		1,793		1,335		2,485		2,065
Other⁽⁵⁾		969		1,075		1,253		1,673		1,405		1,616		1,527		1,277		1,258		1,368		1,340		1,288		1,584
Home equity and other lines of credit		5,527		6,466		7,326		7,016		7,261		7,667		6,840		7,642		7,361		4,998		4,635		7,477		6,061

Total consumer loan originations		8,375		9,689		10,518		12,245		11,342		11,303		10,042		10,258		10,835		8,159		7,310		11,250		9,710


BANK BRANCHES AND OTHER

Total bank branches		1,220		1,221		1,217		1,216		1,220		1,221		1,221		1,222		1,217		1,226		1,226		1,222		1,222
ATMs		1,934		1,933		1,930		1,933		1,931		1,933		1,931		1,938		1,928		1,937		1,958		1,948		1,948
Online banking customers		1,261,859		1,242,613		1,224,089		1,197,112		1,163,100		1,135,539		1,106,901		1,085,084		1,062,707		1,038,882		1,023,818		1,014,403		1,005,659


⁽¹⁾		Restated to reflect the reassignment of certain deposits to the Wholesale Banking line of business and the reclassification of certain Wayne Bancorp deposit balances into the fourth quarter of 2004 results of Consumer and Small Business Financial Services.

⁽²⁾		Excludes Dealer Finance, Education Finance, and National City Card Services. Additionally, home equity loans generated by the National Home Equity division of the National Consumer Finance line of business are excluded from the consumer loan production metrics.

⁽³⁾		Represents period-end number of accounts in thousands.

⁽⁴⁾		Represents closed-end home equity installment loans included in real estate residential portfolio loans on the consolidated balance sheet.

⁽⁵⁾		Includes automobile, truck, boat, recreational vehicle, and other secured installment loans.

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
ASSET MANAGEMENT PERFORMANCE MEASURES

($ in millions)


	November			October			September			August			July			June			May			April			March			February		January			December			November
	2005			2005			2005			2005			2005			2005			2005			2005			2005			2005		2005			2004			2004

ASSETS UNDER ADMINISTRATION

Managed assets:
Value at beginning of period	$	63,914		$	65,084		$	64,831		$	64,298		$	63,288		$	63,235		$	62,480		$	63,606		$	65,047		$	63,717	$	65,649		$	64,533		$	64,345
Acquisition		—			—			—			—			—			—			—			—			—			—		—			—			—
Estimated change due to market impact		1,146			(488	)		243			(122	)		821			228			960			(65	)		(591	)		809		(619	)		944			994
Other activity, net		(770	)		(682	)		10			655			189			(175	)		(205	)		(1,061	)		(850	)		521		(1,313	)		172			(806	)

Value at end of period		64,290			63,914			65,084			64,831			64,298			63,288			63,235			62,480			63,606			65,047		63,717			65,649			64,533


Non-managed assets:
Value at beginning of period		41,546			42,151			42,439			43,020			42,239			42,383			41,991			42,490			43,311			42,528		43,128			43,237			43,992
Acquisition		—			—			—			—			—			—			—			—			—			—		—			—			—
Estimated change due to market impact		896			(713	)		(299	)		(159	)		1,128			(24	)		738			(347	)		(604	)		630		(844	)		866			820
Other activity, net		(213	)		108			11			(422	)		(347	)		(120	)		(346	)		(152	)		(217	)		153		244			(975	)		(1,575	)

Value at end of period		42,229			41,546			42,151			42,439			43,020			42,239			42,383			41,991			42,490			43,311		42,528			43,128			43,237

Total assets at end of period	$	106,519		$	105,460		$	107,235		$	107,270		$	107,318		$	105,527		$	105,618		$	104,471		$	106,096		$	108,358	$	106,245		$	108,777		$	107,770


Proprietary mutual fund assets (included above)	$	11,567		$	11,653		$	11,900		$	11,953		$	11,936		$	12,254		$	12,084		$	12,058		$	12,444		$	12,763	$	12,794		$	13,483		$	13,450

MORTGAGE BANKING STATISTICS
($ in millions)


	November			October			September			August			July			June			May			April			March			February			January			December			November
	2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2004			2004

PRODUCTION DATA

Applications:⁽¹⁾
National City Mortgage (NCM)	$	6,029		$	6,330		$	7,244		$	8,023		$	8,113		$	9,956		$	8,349		$	8,419		$	8,346		$	8,585		$	7,469		$	7,694		$	7,984
First Franklin		3,711			4,100			4,737			4,811			4,665			5,813			4,814			3,601			4,420			3,225			3,088			3,607			3,748

Total Applications	$	9,740		$	10,430		$	11,981		$	12,834		$	12,778		$	15,769		$	13,163		$	12,020		$	12,766		$	11,810		$	10,557		$	11,301		$	11,732


Percentage of NCM applications represented by refinances		50	%		53	%		55	%		52	%		52	%		56	%		49	%		45	%		47	%		56	%		56	%		57	%		55	%

Originations:
NCM Retail	$	2,462		$	2,710		$	2,828		$	3,378		$	3,078		$	3,346		$	2,993		$	2,693		$	2,874		$	2,231		$	2,149		$	2,684		$	2,729
NCM Wholesale		1,392			1,790			2,118			2,705			2,511			2,370			1,962			2,024			2,784			2,337			2,599			2,980			2,892
Less: portfolio loan originations⁽²⁾		(423	)		(465	)		(460	)		(584	)		(494	)		(583	)		(566	)		(522	)		(496	)		(378	)		(353	)		(437	)		(457	)

Total NCM originations for sale		3,431			4,035			4,486			5,499			5,095			5,133			4,389			4,195			5,162			4,190			4,395			5,227			5,164
Total First Franklin loan originations		2,203			2,580			2,764			3,005			3,017			3,430			2,479			2,150			2,335			1,685			1,585			2,234			2,347
Less: portfolio loan originations		(654	)		(560	)		(295	)		(319	)		(1,244	)		(1,388	)		(992	)		(855	)		(846	)		(152	)		(664	)		(772	)		(813	)

Total First Franklin originations for sale		1,549			2,020			2,469			2,686			1,773			2,042			1,487			1,295			1,489			1,533			921			1,462			1,534


Total Loans Originated For Sale	$	4,980		$	6,055		$	6,955		$	8,185		$	6,868		$	7,175		$	5,876		$	5,490		$	6,651		$	5,723		$	5,316		$	6,689		$	6,698


Percentage of NCM originations represented by refinances		51	%		54	%		51	%		53	%		51	%		47	%		47	%		49	%		57	%		58	%		57	%		55	%		57	%
Percentage of First Franklin originations represented by refinances		33	%		33	%		27	%		29	%		28	%		28	%		31	%		34	%		36	%		39	%		39	%		34	%		37	%

LOAN SALES

NCM loans sold servicing retained	$	2,863		$	4,579		$	4,558		$	4,382		$	4,174		$	4,065		$	3,813		$	4,451		$	3,999		$	4,302		$	4,787		$	4,341		$	4,451
NCM loans sold servicing released		242			164			177			159			162			163			183			127			130			126			162			136			154

Total NCM loan sales		3,105			4,743			4,735			4,541			4,336			4,228			3,996			4,578			4,129			4,428			4,949			4,477			4,605
First Franklin loans sold servicing retained		1,530			3,020			3,219			415			1,944			1,481			—			847			1,080			—			796			970			949
First Franklin loans sold servicing released		—			—			—			—			—			—			1,259			559			1,455			—			1,141			330			382

Total First Franklin loan sales		1,530			3,020			3,219			415			1,944			1,481			1,259			1,406			2,535			—			1,937			1,300			1,331

Total Mortgage Loan Sales	$	4,635		$	7,763		$	7,954		$	4,956		$	6,280		$	5,709		$	5,255		$	5,984		$	6,664		$	4,428		$	6,886		$	5,777		$	5,936


SERVICING DATA

NCM mortgage loans serviced for third parties	$	159,040		$	159,230		$	158,039		$	157,067		$	157,159		$	156,938		$	157,082		$	156,646		$	155,087		$	155,781		$	154,142		$	152,367		$	152,365
First Franklin mortgage loans serviced for third parties		15,105			13,799			10,958			7,895			7,633			5,804			4,437			4,506			3,722			2,677			2,697			1,913			949

Total Mortgage Loans Serviced for Third Parties	$	174,145		$	173,029		$	168,997		$	164,962		$	164,792		$	162,742		$	161,519		$	161,152		$	158,809		$	158,458		$	156,839		$	154,280		$	153,314


⁽¹⁾		Includes loans originated for sale and to be held in portfolio

⁽²⁾		Primarily represents home equity loans originated for the National Home Equity business unit

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
FIRST FRANKLIN ORIGINATION AND PORTFOLIO STATISTICS⁽¹⁾

($ in millions)


	November			October			September			August			July			June			May			April			March			February			January			December			November
	2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2005			2004			2004

PRODUCTION DATA

Originations:
Total First Franklin originations	$	2,203		$	2,580		$	2,764		$	3,005		$	3,017		$	3,430		$	2,479		$	2,150		$	2,335		$	1,685		$	1,585		$	2,234		$	2,347
Weighted-average note rate		7.83	%		7.52	%		7.37	%		7.25	%		6.99	%		6.96	%		7.07	%		7.13	%		6.97	%		7.04	%		7.01	%		6.95	%		6.88	%
Weighted-average credit score⁽²⁾		652			654			657			658			659			658			655			654			654			651			651			653			652

Sales:
Total sales of First Franklin loans to third parties	$	1,530		$	3,020		$	3,219		$	415		$	1,944		$	1,481		$	1,259		$	1,406		$	2,535			—		$	1,937		$	1,300		$	1,331
Total production revenue**		18			23			7			14			20			30			24			25			52		$	(6	)		29			14			18

PORTFOLIO STATISTICS⁽³⁾

Period-end portfolio balance	$	18,801		$	19,046		$	19,490		$	19,947		$	19,560		$	18,880		$	18,621		$	18,344		$	18,131		$	18,706		$	18,519		$	18,260		$	18,597
Weighted-average note rate		7.12	%		7.04	%		6.97	%		6.89	%		6.85	%		6.81	%		6.79	%		6.77	%		6.77	%		6.75	%		6.74	%		6.76	%		6.85	%
Weighted-average loan size	$	111,752		$	113,700		$	116,404		$	119,340		$	120,756		$	122,336		$	123,469		$	124,351		$	124,384		$	126,423		$	127,577		$	126,680		$	121,520
Weighted-average credit score⁽²⁾⁽⁴⁾		652			652			652			652			651			651			651			650			648			648			648			648			649
First-lien weighted-average loan-to-value ratio⁽⁵⁾		77.58	%		77.60	%		77.66	%		77.71	%		77.69	%		77.66	%		77.64	%		77.65	%		77.64	%		77.76	%		77.76	%		77.78	%		77.79	%


⁽¹⁾		First Franklin loans are nonconforming residential real estate loans originated by First Franklin Financial Corp., a wholly-owned subsidiary of National City Corporation and a division of the National Consumer Finance line of business.

⁽²⁾		Represents the Fair Isaac Corporation FICO® score, a benchmark credit rating system used by most financial companies and National City Corporation. National City is not affiliated with Fair Isaac Corporation and obtains FICO® scores from third-party credit bureaus.

⁽³⁾		These loans are retained in the residential real estate portfolio.

⁽⁴⁾		Based upon most recent available FICO® score for borrowers. FICO® scores are updated quarterly.

⁽⁵⁾		Based upon period-end first-lien mortgage loan balance divided by the most recent obtained value of the underlying mortgaged property.

**		See note on Summary of Presentation Changes

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	o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

	a) Financial statements of businesses acquired: None

	b) Pro forma financial information: None

	c) Exhibit 99.1 — Mid-Quarter Update to Financial Supplement of National City Corporation, dated November 30, 2005