PNC Bank 2007 Annual Report Download - page 2

We see checking accounts as a cornerstone product in our client acquisition strategy, and we are
pleased that, through organic growth and acquisitions, we added more than 300,000 net new
consumer and business checking relationships in 2007.
Branches remain an important channel for the acquisition of consumer and business checking
accounts. With the goal of consistently delivering an exceptional customer experience, we are
identifying best practices in our highest performing branches, and we plan to implement them
across our system.
To support our growth strategy, we opened 20 new branches in 2007, mainly in locations
convenient to growing populations with expanding incomes. We also refurbished and updated
many features at other branch locations.
We recognize some customers are best reached where they work or go to school. Our workplace
and university banking initiatives have proven to be a highly successful way of initiating client
relationships, generating nearly one-quarter of our new checking account customers last year.
Once customers begin banking with us, we see services such as online bill payment and direct
deposit as key to increasing consumer customer retention and profitability. For small businesses,
we deepen relationships by offering treasury management, remote deposit and merchant
services that help clients better manage cash flow. These efforts, combined with delivering
exceptional service, are designed to help us win more than our share of consumer and business
customers.
We significantly expanded our franchise in the faster-growing, wealthier mid-Atlantic region
with the successful integration of Mercantile Bankshares Corporation, enhancing our presence
in the Baltimore and Washington, D.C. markets. We acquired Yardville National Bancorp in
October, which gives us the No. 1 market share in three New Jersey counties that are among the
wealthiest in the United States in terms of median household income. And we announced the
pending acquisition of Sterling Financial Corporation, which we expect to close in the second
quarter of this year. Once integrated, Sterling will expand our market opportunities in affluent
areas of central Pennsylvania.
We are among the top 20 bank wealth managers in the country, and our efforts to meet the
investment needs of existing affluent customers produced record results in part due to strong
business development efforts. We made the strategic decision to focus our brokerage business
within our footprint where we have a competitive advantage. As a result, we announced plans in
the fourth quarter of this year to sell J.J.B. Hilliard, W.L. Lyons, Inc. The sale, which is
expected to close in the first half of this year, reflects our disciplined approach to capital
management.
We leveraged our market leadership. We continued to invest in our businesses in an effort to
deepen client relationships. That is best reflected in our Corporate & Institutional Banking
segment and our international fund servicing segment, PFPC.
Corporate & Institutional Banking is focused on being a premier provider to middle-market
customers. With its national capabilities, this segment offers an array of products beyond those
typically offered by a bank of our size, such as credit, liquidity and capital market products and
services.
We are committed to working as a unified team to deliver superior client service, and that is
reflected in the results our employees helped produce. For 2007 we remained No. 1 in arranging