Filed by The PNC Financial Services Group, Inc.

Pursuant to Rule 425 under the Securities Act of 1933 and

deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934

Subject Company: Mercantile Bankshares Corporation

Commission File No. 0-5127

On January 31, 2007, Joseph C. Guyaux, President of The PNC Financial Services Group, Inc. (the “Corporation”), gave a presentation to investors at the Citigroup Financial Services Conference. This presentation was accompanied by a series of electronic slides that include information pertaining to the financial results and business strategies of the Corporation. A copy of the slides follows below.

The PNC Financial Services Group, Inc.

Citigroup

Financial Services Conference

January 31, 2007

EXHIBIT 99.1

This presentation contains forward-looking statements regarding our outlook or expectations relating to PNC’s

future business, operations, financial condition, financial performance and asset quality.  Forward-looking

statements are necessarily subject to numerous assumptions, risks and uncertainties, which change over

time.

The forward-looking statements in this presentation are qualified by the factors affecting forward-looking

statements identified in the more detailed Cautionary Statement included in the Appendix, which is in the

version of the presentation materials posted on our corporate website at www.pnc.com

under “About PNC –

Investor Relations.”

We provide greater detail regarding those factors in our 2005 Form 10-K, including in the

Risk Factors and Risk Management sections, and in our 2006 Form 10-Qs and other SEC reports (accessible

on the SEC’s website at www.sec.gov and on or through our corporate website).

Future events or circumstances may change our outlook or expectations and may also affect the nature of the

assumptions, risks and uncertainties to which our forward-looking statements are subject.  The forward-

looking statements in this presentation speak only as of the date of this presentation.  We do not assume any

duty and do not undertake to update those statements.

In

this

presentation,

we

will

sometimes

refer

to

adjusted

results

to

help

illustrate

(1)

the

impact

of

BlackRock

deconsolidation

near

the

end

of

third

quarter

2006

and

the

application

of

the

equity

method

accounting

for

our

investment

in

BlackRock

and

(2)

the

impact

of

certain

significant

2006

items

due

to

the

magnitude

of

the

aggregate

of

these

items.

These

items

include

the

BlackRock/MLIM

transaction

gain

and

integration

costs

and

the

costs

of

balance

sheet

repositionings

that

we

have

disclosed

earlier.

We

provide

details

of

the

adjustments

in

the

Appendix.

While

we

have

not

provided

other

adjustments

for

the

periods

discussed,

this

is

not

intended

to

imply

that

there

could

not

have

been

other

similar

types

of

adjustments,

but

any

such

adjustments

would

not

have

been

similar

in

magnitude

to

the

amount

of

the

adjustments

shown.

This presentation may also include a discussion of non-GAAP financial measures, which, to the extent not so

qualified therein or in the Appendix, is qualified by GAAP reconciliation information available on our corporate

website at www.pnc.com under “About PNC -

Investor Relations.”

Cautionary Statement Regarding

Forward-Looking Information

Today’s Discussion

PNC overview

Retail Banking

-

High performing model

-

Our framework for winning in 2007

-

Investing to drive growth

Record net income

Closed on BlackRock/Merrill

transaction –

$1.6 billion increase

in capital

Strong client activity –

business

segment earnings* grew 9%

Balance sheet well positioned for

this interest rate environment

Overall asset quality remained

very strong

Mercantile acquisition will continue

expansion into attractive region

Total business segment earnings are reconciled to

total GAAP consolidated earnings in the attached Appendix

2006 Highlights

Net income

$2.6 billion

Net income adjusted

$1.5 billion

ROCE

28%

ROCE adjusted

16%

Noninterest income

to total revenue 

74%

Noninterest

income

to total revenue adjusted

61%

Loans to deposits

76%

Loans to deposits as of December  31, 2006

*

Adjusted net income and ROCE exclude the after-tax gain on BlackRock/MLIM

transaction of $1.293 billion, the securities portfolio rebalancing after-tax loss of

$127 million, BlackRock/MLIM integration costs of $47 million after-tax, and the

mortgage loan portfolio repositioning after-tax loss of $31 million due to the

magnitude of the aggregate of those items and are reconciled to GAAP in the

Appendix. 

(1)

(2)

(1)

(2)

(1)

2006 Financial Highlights

(3)

Reconciled to GAAP in Appendix

(3)

Regional, National and International Businesses

International investment management:

BlackRock

–

with offices in 18 countries

PNC –

A Diversified Financial

Services Company

Business Leadership

Retail Banking

-

A leading community bank in PNC major

markets

-

Top 10 SBA lender in the U.S.

-

One of the nation’s largest bank wealth

management firms

Corporate & Institutional Banking

-

Top 10 Treasury Management business

-

The nation’s second largest lead arranger

of asset-based loan syndications

-

Harris Williams -

one of the nation’s

largest M&A advisory firms for middle-

market companies

BlackRock

-

A global asset management company with

over $1.1 trillion in assets under

management

PFPC

-

Among the largest providers of mutual

fund transfer agency and accounting and

administration services in the U.S.

PNC Bank Branches

PNC Employees / Offices Outside of Retail Footprint

IN

OH

PA

KY

NJ

DE

VA

DC

MD

Winning in

the

Payments

Space

A Premier

Middle-

market

Franchise

A Leading

Global

Servicing

Platform

World Class

Asset

Manager

International fund processing:

PFPC –

with offices in U.S., Ireland & Luxembourg

$0

$200

$400

$600

$800

$1,000

Business Results –

Twelve Months Ended December 31, 2006

Retail Banking

Corporate &

Institutional Banking

BlackRock

PFPC

Business earnings, earnings growth and return on capital reconciled to GAAP net income, growth and returns in attached Appendix.

Percentage for PFPC reflects return on average equity.

Certain prior period amounts have been reclassified to conform with the current period presentation.

Business Earnings *

$ millions

*

(1)

Return on

Average

Capital

(1)

26%

23%

N/A

29%

PNC’s High Return Business Mix

Total business

segment earnings

grew 9% compared to

the twelve months

ended 12/31/05

$124

$187

$463

$765

2006 Retail Banking Revenue Generated by Product Segment

Retail Bank’s Deposit Franchise is a

Primary Source of Revenue

Trust &

Brokerage

21%

Loans

19%

Deposits

60%

Retail Banking Model is Relationship

Driven

The payments system

Acquisition, retention and growth of

checking relationships

Capturing increased share of investable

assets

Opportunistically generating value-added

loans

Focused on:

Focused on:

Retail Banking Model Has Been

Delivering Superior Results

Expanding Relationships

Growing Earnings

Improving Efficiency

$37

$39

$43

$46

$16

$20

$23

$24

2003

2004

2005

2006

Average Deposits

Average Loans

63%

62%

60%

58%

2003

2004

2005

2006

Efficiency Ratio

$566

$610

$682

$765

2003

2004

2005

2006

Earnings

Certain prior period amounts have been reclassified to conform with the current period presentation.

Retail Banking –

Framework for Winning in 2007

Deliver Our Brand Promise of

Ease and Confidence to Create

a  Sustainable Competitive

Advantage and Win for Our

Stakeholders

Empowered, Committed

Employees

Exceptional

Customer Service

Retain and Grow

Payments Business

Customer Leverage

Manage Risk

Community

Involvement

Operational Leverage

2006 DDA Customer Acquisition by Channel

Multiple Channels Drive Checking

Acquisition

Existing

Branches

63%

New

Branches

8%

Workplace &

University

28%

Web,

NFSC, etc.

1%

Expanding investment in

new branches

Upgrading our existing

branch facilities

Increasing commitment to

alternative channels

The Web as an expanded

acquisition channel

0.0

0.5

1.0

1.5

2.0

2003

2004

2005

2006

Increasing and Deepening Checking

Relationships

Retail Banking

Checking Customer Base

millions

December 31

Small Business

Consumer

Small Business

Small Business debit

card revenue ($ millions)

$12.3

+24%

Small Business online

banking users

48%

+17%

Consumer

Consumer debit card

revenue ($ millions)

$100.6    

+17%

Consumer online

banking users      

53%  

+10%

Consumer online

bill-pay users      

23%

+97%

…Provides Opportunities to

Leverage Increased Ownership

in Payments Business

Growth

(1)

Growth is for FY 2006 vs. FY 2005

Reflects growth in users

FY

2006

(2)

(2)

(2)

(1)

(2)

Differentiated Customer Experience

PNC

Bank

received

the

highest

numerical

score

in

the

proprietary

J.D.

Power

and

Associates

2006

Small

Business

Banking

Satisfaction

StudySM.

Study

based

on

4,996

total

responses,

measuring

13

financial

institutions

and

measures

opinions

of

small

business

customers

with

annual

revenues

from

$100,000

to

$10

million.

Proprietary

study

results

are

based

on

experiences

and

perceptions

of

customers

surveyed

in

July

–

September

2006.

Your

experiences

may

vary.

Visit

jdpower.com.

“Highest in Customer Satisfaction

with Small Business Banking”

PNC Ranked Highest in Inaugural J.D. Power and Associates Small Business Banking Satisfaction Study

Human Sigma program

-

Measurement, intervention and reward approach to

improving customer and employee engagement

Service excellence program

-

Focused on problem reduction and process

simplification

Employee selection, retention and development

-

Developing talented, motivated, committed and

successful employees

Initiatives to Further Differentiate the

Customer Experience

Banking made easy

Mortgage origination

Credit card

Merchant services

Private Client Group

Investing to Drive Growth

Recent Investments

Focused on Winning in the Affluent

Segment

Mass Market

Affluent

Low

High

Opportunity

Ultra-

Affluent

Mass Affluent Customer Defined:

Mass Affluent Customer Defined:

Investable

assets from

$100,000 to $1,000,000

682,000 existing PNC

households (32%)

67% of consumer deposit

base

Mass Affluent

Percentages in definition are as of December 31, 2006

Banking made easy

Mortgage origination

Credit card

Merchant services

Private Client Group

Expanded 2007 marketing

program

Enhancing pnc.com

Remote check capture

Simplified business checking

New branches

M&A activity -

Mercantile

Investing to Drive Growth

Continuing Investments

Recent Investments

Success in Greater Washington, DC Market

Highlights Scalability of Model

Demonstrating Ease of PNC

Client retention exceeded

plan

Leveraging successful

technology platform

Extended hours

Free ATMs

Established Business

Banking team

Improved Monthly Same Store

Sales  Production for

PNC’s Greater Washington Market

Increase

December ’06 vs

December ’05

Consumer

Checking relationships

+14%

Average deposits

+6%

Average home equity loans

+17%

Small Business

Checking relationships

+24%

Average deposits

+23%

Average loans

+140%

Mercantile Acquisition Will Create a

Mid-Atlantic Powerhouse

Existing PNC Mid-Atlantic Branch Locations

Existing Mercantile Branch Locations

West Virginia

West Virginia

Virginia

Virginia

Maryland

Maryland

Delaware

Delaware

New Jersey

New Jersey

New York

New York

Pennsylvania

Pennsylvania

Combined Pro forma

Combined Pro forma

Market Share

Market Share

(1)

(1)

69% of PNC Pro forma Branches Located in the Mid-Atlantic Region

Deposit market share data as of 6/30/06

(1)

Maryland

Branches

203

Deposit market share

2

nd

Virginia

Branches

59

Deposit market share

6

th

Delaware

Branches

50

Deposit market share

2

nd

Washington, DC

Branches

32

Deposit market share

4

th

Fast Growing and Affluent Region

PNC -

78 county footprint

Mercantile –

38 county footprint

Source: SNL DataSource

PNC

MRBK

PNC

MRBK

PNC

MRBK

Median Household

Median Household

Income

Income

Projected 5-Year Growth

Projected 5-Year Growth

Household

Household

Income

Income

Population

Population

$58,648

$69,363

18.8%

16.9%

2.1%

10.0%

$51,546

17.8%

6.7%

U.S.

U.S.

U.S.

Mercantile Opportunity

Distribute broader deposit product set and increase

Mercantile’s

online banking penetration

Provide enhanced consumer offerings such as home equity

and credit card lending

Leverage PNC’s small business technology capabilities across

Mercantile’s

banking footprint

Expand scale and product capability of Mercantile’s

Wealth

Management business

Deliver PNC Treasury Management, Capital Markets and other

corporate services to Mercantile’s

corporate customers

Expand the coverage of corporate customers

Retail Banking

Retail Banking

Corporate & Institutional Banking

Corporate & Institutional Banking

Integration -

Top Priority is Retaining

Leadership and Clients

November

December

January

February

March

April

May

June

July

August

September

Discovery and

Integration Strategy

Development

Systems

Testing

Mock Conversion

Weekend

Integration

Strategies

Final

Bank

Conversion

1

st

Quarter 07

Regulatory & Shareholder Approvals

Closing

Oct 06

Sep 07

Develop Go to Market Strategy

Employee Communications and Training

Ongoing Customer Communications

Key Milestones

October

Summary

Achieved remarkable 2006 results

Built a differentiated Retail Banking

franchise

Designed strategies for winning in a

difficult retail banking environment

Investing to drive growth

We

make

statements

in

this

presentation,

and

we

may

from

time

to

time

make

other

statements,

regarding

our

outlook

or

expectations

for

earnings,

revenues,

expenses

and/or

other

matters

regarding

or

affecting

PNC

that

are

forward-looking

statements

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act. 

Forward-looking

statements

are

typically

identified

by

words

such

as

“believe,”

“expect,”

“anticipate,”

“intend,”

“outlook,”

“estimate,”

“forecast,”

“project”

and

other

similar

words

and

expressions.

Forward-looking

statements

are

subject

to

numerous

assumptions,

risks

and

uncertainties,

which

change

over

time.

Forward-looking

statements

speak

only

as

of

the

date

they

are

made.

We

do

not

assume

any

duty

and

do

not

undertake

to

update

our

forward-looking

statements.

Because

forward-looking

statements

are

subject

to

assumptions

and

uncertainties,

actual

results

or

future

events

could

differ,

possibly

materially,

from

those

that

we

anticipated

in

our

forward-looking

statements,

and

future

results

could

differ

materially

from

our

historical

performance.

Our

forward-looking

statements

are

subject

to

the

following

principal

risks

and

uncertainties.

We

provide

greater

detail

regarding

some

of

these

factors

in

our

Form

10-K

for

the

year

ended

December

31,

2005

and

in

our

2006

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

those

reports. 

Our

forward-looking

statements

may

also

be

subject

to

other

risks

and

uncertainties,

including

those

that

we

may

discuss

elsewhere

in

this

presentation

or

in

our

filings

with

the

SEC,

accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website

at

www.pnc.com

under

“About

PNC

–

Investor

Relations

–

Financial

Information.”

•

Our

business

and

operating

results

are

affected

by

business

and

economic

conditions

generally

or

specifically

in

the

principal

markets

in

which

we

do

business.

We

are

affected

by

changes

in

our

customers’

financial

performance,

as

well

as

changes

in

customer

preferences

and

behavior,

including

as

a

result

of

changing

economic

conditions.

•

The

value

of

our

assets

and

liabilities

as

well

as

our

overall

financial

performance

are

affected

by

changes

in

interest

rates

or

in

valuations

in

the

debt

and

equity

markets.

Actions

by

the

Federal

Reserve

and

other

government

agencies,

including

those

that

impact

money

supply

and

market

interest

rates,

can

affect

our

activities

and

financial

results.

•

Competition

can

have

an

impact

on

customer

acquisition,

growth

and

retention,

as

well

as

on

our

credit

spreads

and

product

pricing,

which

can

affect

market

share,

deposits

and

revenues.

•

Our

ability

to

implement

our

One

PNC

initiative,

as

well

as

other

business

initiatives

and

strategies

we

may

pursue,

could

affect

our

financial

performance

over

the

next

several

years.

•

Our

ability

to

grow

successfully

through

acquisitions

is

impacted

by

a

number

of

risks

and

uncertainties

related

both

to

the

acquisition

transactions

themselves

and

to

the

integration

of

the

acquired

businesses

into

PNC

after

closing.

These

uncertainties

are

present

in

transactions

such

as

our

pending

acquisition

of

Mercantile

Bankshares

Corporation.

Cautionary Statement Regarding

Forward-Looking Information

•

Legal

and

regulatory

developments

could

have

an

impact

on

our

ability

to

operate

our

businesses

or

our

financial

condition

or

results

of

operations

or

our

competitive

position

or

reputation.

Reputational

impacts,

in

turn,

could

affect

matters

such

as

business

generation

and

retention,

our

ability

to

attract

and

retain

management,

liquidity

and

funding.

These

legal

and

regulatory

developments

could

include:

(a)

the

unfavorable

resolution

of

legal

proceedings

or

regulatory

and

other

governmental

inquiries;

(b)

increased

litigation

risk

from

recent

regulatory

and

other

governmental

developments; 

(c)

the

results

of

the

regulatory

examination

process,

our

failure

to

satisfy

the

requirements

of

agreements

with

governmental

agencies,

and

regulators’

future

use

of

supervisory

and

enforcement

tools;

(d)

legislative

and

regulatory

reforms,

including

changes

to

laws

and

regulations

involving

tax,

pension,

and

the

protection

of

confidential

customer

information;

and

(e)

changes

in

accounting

policies

and

principles.

•

Our

business

and

operating

results

are

affected

by

our

ability

to

identify

and

effectively

manage

risks

inherent

in

our

businesses,

including,

where

appropriate,

through

the

effective

use

of

third-party

insurance

and

capital

management

techniques.

•

Our

ability

to

anticipate

and

respond

to

technological

changes

can

have

an

impact

on

our

ability

to

respond

to

customer

needs

and

to

meet

competitive

demands.

•

The

adequacy

of

our

intellectual

property

protection,

and

the

extent

of

any

costs

associated

with

obtaining

rights

in

intellectual

property

claimed

by

others,

can

impact

our

business

and

operating

results.

•

Our

business

and

operating

results

can

be

affected

by

widespread

natural

disasters,

terrorist

activities

or

international

hostilities,

either

as

a

result

of

the

impact

on

the

economy

and

financial

and

capital

markets

generally

or

on

us

or

on

our

customers,

suppliers

or

other

counterparties

specifically.

•

Also,

risks

and

uncertainties

that

could

affect

the

results

anticipated

in

forward-looking

statements

or

from

historical

performance

relating

to

our

interest

in

BlackRock,

Inc.

are

discussed

in

more

detail

in

BlackRock’s

2005

Form

10-K,

including

in

the

Risk

Factors

section,

and

in

BlackRock’s

other

filings

with

the

SEC,

accessible

on

the

SEC’s

website

and

on

or

through

BlackRock’s

website

at

www.blackrock.com.

In

addition,

our

pending

acquisition

of

Mercantile

Bankshares

presents

us

with

a

number

of

risks

and

uncertainties

related

both

to

the

acquisition

transaction

itself

and

to

the

integration

of

the

acquired

businesses

into

PNC

after

closing.

These

risks

and

uncertainties

include

the

following:

•

Completion

of

the

transaction

is

dependent

on,

among

other

things,

receipt

of

regulatory

and

Mercantile

shareholder

approvals,

the

timing

of

which

cannot

be

predicted

with

precision

at

this

point

and

which

may

not

be

received

at

all.

The

impact

of

the

completion

of

the

transaction

on

PNC’s

financial

statements

will

be

affected

by

the

timing

of

the

transaction.

•

The

transaction

may

be

more

expensive

to

complete

than

anticipated,

including

as

a

result

of

unexpected

factors

or

events.

Cautionary Statement Regarding

Forward-Looking Information (continued)

•

The

integration

of

Mercantile’s

business

and

operations

with

those

of

PNC,

which

will

include

conversion

of

Mercantile’s

different

systems

and

procedures,

may

take

longer

than

anticipated,

may

be

more

costly

than

anticipated,

and

may

have

unanticipated

adverse

results

relating

to

Mercantile’s

or

PNC’s

existing

businesses.

•

The

anticipated

benefits,

including

anticipated

strategic

gains

and

anticipated

cost

savings

and

other

synergies

of

the

transaction,

may

be

significantly

harder

or

take

longer

to

be

realized

than

anticipated

or

may

not

be

achieved

in

their

entirety,

including

as

a

result

of

unexpected

factors

or

events,

and

attrition

in

key

client,

partner

and

other

relationships

relating

to

the

transaction

may

be

greater

than

expected.

•

The

anticipated

benefits

to

PNC

are

dependent

in

part

on

Mercantile’s

business

performance

in

the

future,

and

there

can

be

no

assurance

as

to

actual

future

results,

which

could

be

impacted

by

various

factors,

including

the

risks

and

uncertainties

generally

related

to

PNC’s

and

Mercantile’s

performance

(with

respect

to

Mercantile,

see

Mercantile’s

SEC

reports,

accessible

on

the

SEC’s

website)

or

due

to

factors

related

to

the

acquisition

of

Mercantile

and

the

process

of

integrating

it

into

PNC.

In

addition

to

the

pending

Mercantile

Bankshares

transaction,

we

grow

our

business

from

time

to

time

by

acquiring

other

financial

services

companies. 

Acquisitions

in

general

present

us

with

risks

other

than

those

presented

by

the

nature

of

the

business

acquired.

In

particular,

acquisitions

may

be

substantially

more

expensive

to

complete

(including

as

a

result

of

costs

incurred

in

connection

with

the

integration

of

the

acquired

company)

and

the

anticipated

benefits

(including

anticipated

cost

savings

and

strategic

gains)

may

be

significantly

harder

or

take

longer

to

achieve

than

expected.

In

some

cases,

acquisitions

involve

our

entry

into

new

businesses

or

new

geographic

or

other

markets,

and

these

situations

also

present

risks

resulting

from

our

inexperience

in

these

new

areas.

As

a

regulated

financial

institution,

our

pursuit

of

attractive

acquisition

opportunities

could

be

negatively

impacted

due

to

regulatory

delays

or

other

regulatory

issues.

Regulatory

and/or

legal

issues

related

to

the

pre-acquisition

operations

of

an

acquired

business

may

cause

reputational

harm

to

PNC

following

the

acquisition

and

integration

of

the

acquired

business

into

ours

and

may

result

in

additional

future

costs

and

expenses

arising

as

a

result

of

those

issues.

Any

annualized,

proforma,

estimated,

third

party

or

consensus

numbers

in

this

presentation

are

used

for

illustrative

or

comparative

purposes

only

and

may

not

reflect

actual

results.

Any

consensus

earnings

estimates

are

calculated

based

on

the

earnings

projections

made

by

analysts

who

cover

that

company.

The

analysts’

opinions,

estimates

or

forecasts

(and

therefore

the

consensus

earnings

estimates)

are

theirs

alone,

are

not

those

of

PNC

or

its

management,

and

may

not

reflect

PNC’s,

Mercantile’s

or

other

company’s

actual

or

anticipated

results.

Cautionary Statement Regarding

Forward-Looking Information (continued)

The

PNC

Financial

Services

Group,

Inc.

and

Mercantile

Bankshares

Corporation

have

filed

a

proxy

statement/prospectus

and

other

relevant

documents

concerning

the

merger

with

the

United

States

Securities

and

Exchange

Commission

(the

“SEC”).

WE

URGE

INVESTORS

TO

READ

THE

PROXY

STATEMENT/PROSPECTUS

AND

ANY

OTHER

DOCUMENTS

FILED

WITH

THE

SEC

IN

CONNECTION

WITH

THE

MERGER

OR

INCORPORATED

BY

REFERENCE

IN

THE

PROXY

STATEMENT/PROSPECTUS

BECAUSE

THEY

CONTAIN

IMPORTANT

INFORMATION.

Investors

may

obtain

these

documents

free

of

charge

at

the

SEC’s

website

(www.sec.gov).

In

addition,

documents

filed

with

the

SEC

by

The

PNC

Financial

Services

Group,

Inc.

are

available

free

of

charge

from

Shareholder

Relations

at

(800)

843-2206.

Documents

filed

with

the

SEC

by

Mercantile

Bankshares

are

available

free

of

charge

from

Mercantile

Bankshares

Corporation,

2

Hopkins

Plaza,

P.O.

Box

1477,

Baltimore,

Maryland

21203,

Attention:

Investor

Relations.

The

directors,

executive

officers,

and

certain

other

members

of

management

and

employees

of

Mercantile

Bankshares

Corporation

are

participants

in

the

solicitation

of

proxies

in

favor

of

the

merger

from

the

shareholders

of

Mercantile

Bankshares

Corporation.

Information

about

the

directors

and

executive

officers

of

Mercantile

Bankshares

Corporation

is

set

forth

in

the

proxy

statement

for

its

2006

annual

meeting

of

shareholders,

which

was

filed

with

the

SEC

on

March

29,

2006.

Additional

information

regarding

the

interests

of

such

participants

is

included

in

the

proxy

statement/prospectus

filed

with

the

SEC.

Additional Information About

The PNC/Mercantile Transaction

Appendix

Non-GAAP to GAAP

Reconcilement

Net interest income

$2,245

($10)

$2,235

Noninterest income

6,327

($1,824)

(1,087)

$144

3,560

Total revenue

8,572

(1,824)

(1,097)

144

5,795

Noninterest expense

4,443

(91)

(765)

3,587

Pretax, pre-provision income

4,129

(1,733)

(332)

144

2,208

Provision

124

124

Income before minority interest

and income taxes

4,005

(1,733)

(332)

144

2,084

Minority interest in income of BlackRock

47

18

(65)

-

Income taxes

1,363

(663)

(130)

7

577

Net income

$2,595

($1,088)

($137)

$137

$1,507

Reported,

GAAP

Basis

Adjustments

(b)

$ millions (except per share data)

Appendix

Income Statement and Selected Ratios

(a)

–

Year Ended December 31, 2006

BlackRock

Deconsolidation &

Other Adjustments

As Adjusted

BlackRock

Equity Method

(c)

The

table

above

represents

a

reconciliation

of

certain

GAAP

disclosures

to

adjusted

amounts

for

the

year

ended

December

31,

2006.

This

reconciliation

is

provided

for

informational

purposes

only

and

reflects

historical

consolidated

financial

information

of

PNC

(1)

with

amounts

adjusted

for

the

impact

of

certain

significant

2006

items

and

(2)

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method

for

all

of

2006.

We

have

provided

these

adjusted

amounts

and

reconciliation

so

that

shareholders,

investor

analysts,

regulators

and

otherswill

be

better

able

to

evaluate

the

impact

of

certain

significant

items

on

our

GAAP

results

for

the

twelve

months

ended

December

31,

2006

in

addition

to

providing

a

basis

of

comparability

for

the

impact

of

BlackRock.

This

information

supplements

our

results

as

reported

in

accordancewith

GAAP

and

should

not

be

viewed

in

isolation

from,

or

as

a

substitute

for,

our

GAAP

results.

The

absence

of

other

adjustments

is

not

intended

to

imply

that

there

could

not

have

been

other

similar

types

of

adjustments,

but

any

such

adjustments

would

not

have

been

similar

in

magnitude

to

the

amount

of

the

adjustments

shown.

Our

third

quarter

2006

Form

10-Q

includes

additional

information

regarding

our

BlackRock/Merrill

Lynch

Investment

Managers

transaction

accounting,

securities

portfolio

rebalancing

and

mortgage

loan

portfolio

repositioning.

Includes

the

impact

of

the

following

items,

all

on

a

pretax

basis:

$2,078

million

gain

on

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

of

BlackRock/MLIM

transaction

integration

costs,

and

$48

million

mortgage

loan

portfolio

repositioning

loss.

BlackRock

investment

revenue

represents

PNC’s

ownership

interest

in

earnings

of

BlackRock

excluding

our

share

of

pretax

BlackRock/MLIM

transaction

integration

costs

totaling

$101

million.

The

income

taxes

amount

represents

additional

income

taxes

recorded

by

PNC

related

to

BlackRock

earnings.

(a)

(b)

(c)

Non-GAAP to GAAP

Reconcilement

Noninterest

income

$6,327

($1,824)

($1,087)

$144

$3,560

Total revenue

$8,572

($1,824)

($1,097)

$144

$5,795

Net income

$2,595

($1,088)

($137)

$137

$1,507

Average common shareholders’

equity

$9,275

$9,275

Return on average common

shareholders’

equity

27.97%

16.24%

Noninterest

income to total revenue

74%

61%

Reported,

GAAP

Basis

$ millions (except per share data)

Appendix

Income Statement and Selected Ratios

(a)

–

Year Ended December 31, 2006

BlackRock

Deconsolidation &

Other Adjustments

As Adjusted

Adjustments

(b)

BlackRock

Equity Method

(c)

The

table

above

represents

a

reconciliation

of

certain

GAAP

disclosures

to

adjusted

amounts

for

the

year

ended

December

31,

2006.

This

reconciliation

is

provided

for

informational

purposes

only

and

reflects

historical

consolidated

financial

information

of

PNC

(1)

with

amounts

adjusted

for

the

impact

of

certain

significant

2006

items

and

(2)

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method

for

all

of

2006.

We

have

provided

these

adjusted

amounts

and

reconciliation

so

that

shareholders,

investor

analysts,

regulators

and

otherswill

be

better

able

to

evaluate

the

impact

of

certain

significant

items

on

our

GAAP

results

for

the

twelve

months

ended

December

31,

2006

in

addition

to

providing

a

basis

of

comparability

for

the

impact

of

BlackRock.

This

information

supplements

our

results

as

reported

in

accordancewith

GAAP

and

should

not

be

viewed

in

isolation

from,

or

as

a

substitute

for,

our

GAAP

results.

The

absence

of

other

adjustments

is

not

intended

to

imply

that

there

could

not

have

been

other

similar

types

of

adjustments,

but

any

such

adjustments

would

not

have

been

similar

in

magnitude

to

the

amount

of

the

adjustments

shown.

Our

third

quarter

2006

Form

10-Q

includes

additional

information

regarding

our

BlackRock/Merrill

Lynch

Investment

Managers

transaction

accounting,

securities

portfolio

rebalancing

and

mortgage

loan

portfolio

repositioning.

Includes

the

impact

of

the

following

items,

all

on

a

pretax

basis:

$2,078

million

gain

on

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

of

BlackRock/MLIM

transaction

integration

costs,

and

$48

million

mortgage

loan

portfolio

repositioning

loss.

BlackRock

investment

revenue

represents

PNC’s

ownership

interest

in

earnings

of

BlackRock

excluding

our

share

of

pretax

BlackRock/MLIM

transaction

integration

costs

totaling

$101

million.

The

income

taxes

amount

represents

additional

income

taxes

recorded

by

PNC

related

to

BlackRock

earnings.

(a)

(b)

(c)

Retail Banking

$765

$682

12%

26%

Corporate & Institutional Banking

463

480

(4)%

23%

BlackRock (a)(b)(c)

187

152

23%

N/A

PFPC

(e)

124

104

19%

29%

Total business segment earnings

1,539

1,418

9%

Other

(c)(d)

1,056

(93)

Total consolidated net income

$2,595

$1,325

96%

28%

Earnings (Loss)

$ millions

Year Ended December 31

2006

2005

Growth

(a)

PNC’s ownership interest in BlackRock was approximately 69%-70% for 2005 and through the first nine months of 2006. Effective

September 29, 2006, PNC’s ownership interest in BlackRock dropped to approximately 34%.

(b)

These amounts have been reduced by minority interest in income of BlackRock, excluding MLIM integration costs, totaling $65 million

and $71 million for the years ended December 31, 2006 and 2005, respectively.

(c)

For this PNC business segment reporting presentation, integration costs incurred by BlackRock for the MLIM transaction totaling $47

million for 2006 have been reclassified from BlackRock to “Other”.  These amounts are after-tax and, as applicable, net of minority

interest.

(d)

“Other”

for 2006 includes the after-tax impact of the net gain on the BlackRock/MLIM transaction, MLIM integration costs and costs

associated with the securities portfolio rebalancing and mortgage loan portfolio repositioning.

(e)

2006 return percentage for PFPC reflects return on average equity.

Certain prior period amounts have been reclassified to conform with the current period presentation

Non-GAAP to GAAP

Reconcilement

Appendix

Business Earnings Summary

2006

Return on

Average

Capital

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

National City Corporation

NCC

The PNC Financial Services Group, Inc.

PNC

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wachovia Corporation

WB

Wells Fargo & Company

WFC

Ticker

Peer Group of

Super-Regional Banks

Appendix

ADDITIONAL INFORMATION ABOUT THE PNC/MERCANTILE TRANSACTION

The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation have filed a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Commission (the “SEC”). WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION.

Investors may obtain these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by The PNC Financial Services Group, Inc. are available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Mercantile Bankshares are available free of charge from Mercantile Bankshares Corporation, 2 Hopkins Plaza, P.O. Box 1477, Baltimore, Maryland 21203, Attention: Investor Relations.

The directors, executive officers, and certain other members of management and employees of Mercantile Bankshares Corporation are participants in the solicitation of proxies in favor of the merger from the shareholders of Mercantile Bankshares Corporation. Information about the directors and executive officers of Mercantile Bankshares Corporation is set forth in the proxy statement for its 2006 annual meeting of shareholders, which was filed with the SEC on March 29, 2006. Additional information regarding the interests of such participants is included in the proxy statement/prospectus filed with the SEC.