EX-99.1 2 l29174aexv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
(NATIONAL CITY LOGO)
Unaudited
Mid-Quarter Update to Financial Supplement
November 30, 2007
Table of Contents
         
REVIEW OF FINANCIAL TRENDS
    2  
CONSOLIDATED SELECTED AVERAGE BALANCES
    4  
CREDIT QUALITY STATISTICS
    5  
CAPITALIZATION
    6  
FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS
    6  
RETAIL BANKING PERFORMANCE MEASURES
    7  
ASSET MANAGEMENT PERFORMANCE MEASURES
    8  
MORTGAGE BANKING STATISTICS
    8  
RUN-OFF LOAN PORTFOLIO STATISTICS
    9  

 


 

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, 2006, 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.
General Trends
Loan and deposit growth and general operating trends remain steady in the retail and corporate banking businesses. The mortgage business continues to be under stress.
Net interest margin has narrowed as purchased funding costs, which are mainly LIBOR-based, have increased. At the same time, yields on prime-based assets have come down with a lower Federal funds rate. As a result, net interest income is likely to be flat to down slightly for the fourth quarter relative to the third quarter. Banking-related fee income trends have been steady. Noninterest expenses, other than severance costs and nonrecurring items, are on a generally declining trend as the effects of cost reduction initiatives take hold.
Mortgage Banking
During October and November, substantially all non-agency eligible mortgages, second liens, and home equity lines were cleared from the mortgage warehouse, either by settlement of existing committed trades or by transfer to portfolio. As a result, charges of approximately $200 million were incurred in October and November, reflected in loan sale revenue, owing to trade fallout, “scratch

2


 

and dent” losses, unfavorable mark-to-market adjustments, and generally poor conditions in the mortgage markets. As of the end of November, the balance of loans in the warehouse consisted mainly of agency-eligible and other loans deemed readily salable, and no additional losses of significance are expected. At the same time, loan servicing revenue has benefited from slower prepayment activity and improved net MSR hedging results.
Credit Quality
Credit quality in the commercial and core consumer portfolios, including direct home equity lending, remains satisfactory. The areas of elevated risk continue to be in the run-off portfolios of First Franklin non-prime mortgages, especially seconds; broker-originated home equity loans and lines of credit associated with the former National Home Equity business; and certain sectors of investment real estate and residential construction. In particular, indirect home equity loans and lines that were transferred to portfolio in the third quarter have shown further deterioration beyond that which was anticipated at the time the September 30 loan loss allowance was established. As a result, additional loan loss provision will be required in the fourth quarter to increase the allowance to a level commensurate with management’s best estimate of the probable loss content of these portfolios. While the exact amounts will not be determinable until after the close of the year, it is expected that the total provision for loan losses for the fourth quarter will be in the area of $700 million.
Other
As discussed in the Corporation’s third quarter Form 10-Q, National City has an equity interest of approximately 8% in Visa USA. The current carrying value of that interest is zero. The Corporation, along with several other banks and Visa, has executed a Loss Sharing Agreement (LSA) with respect to certain pending litigation involving the Corporation and/Visa, which agreement became effective with the reorganization of Visa Inc. from a membership association to a stock company in early October. The accounting for the LSA, as well as other matters relating to the Visa reorganization, is currently under review with the Corporation’s external auditors and the Office of the Chief Accountant of the Securities and Exchange Commission. Depending on the outcome of that review, the Corporation may be required to record a non-cash charge, magnitude currently undetermined, for the estimated fair value of the LSA.

3


 

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
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
ASSETS
                                                                                                       
Available for sale securities, at cost
  $ 8,841     $ 8,907     $ 8,963     $ 7,368     $ 7,210     $ 7,126     $ 7,112     $ 7,191     $ 7,434     $ 7,762     $ 7,923     $ 7,709     $ 7,854  
 
                                                                                                       
Portfolio loans:
                                                                                                       
Commercial
  $ 30,055     $ 29,571     $ 29,172     $ 28,507     $ 28,187     $ 28,160     $ 28,207     $ 27,682     $ 27,175     $ 26,868     $ 26,956     $ 26,725     $ 26,226  
Commercial leases
    4,397       4,370       4,255       4,187       4,264       4,123       4,046       4,013       3,951       3,979       4,012       3,892       3,692  
Commercial construction
    8,938       8,736       8,595       8,108       7,984       7,879       7,862       7,820       7,723       7,606       7,503       7,166       6,892  
Commercial real estate
    14,560       14,573       14,607       13,091       12,979       12,952       12,939       12,867       12,890       13,021       13,022       12,376       11,861  
Residential real estate:
                                                                                                       
Bank portfolio and other
    14,246       14,183       13,912       10,603       10,540       10,379       10,274       10,200       10,104       9,946       9,521       7,768       6,095  
First Franklin(1)
    6,237       6,453       6,653       6,910       7,192       7,433       7,725       7,968       8,379       6,802       7,222       7,685       8,046  
Home equity installment
    8,655       8,687       8,719       8,807       6,389       6,435       6,389       6,350       6,349       6,368       6,397       6,408       6,247  
     
Total residential real estate loans
    29,138       29,323       29,284       26,320       24,121       24,247       24,388       24,518       24,832       23,116       23,140       21,861       20,388  
Home equity lines of credit
    17,925       17,636       17,450       15,644       13,791       13,829       13,985       14,217       14,376       14,115       14,707       14,721       14,861  
Credit card and other unsecured lines of credit
    3,633       3,555       3,456       3,352       3,264       3,207       3,105       2,986       2,953       3,046       3,061       2,859       2,803  
Other consumer
    4,529       4,553       4,581       3,769       4,571       5,175       5,392       5,458       5,467       5,498       5,484       5,462       5,253  
     
Total portfolio loans
  $ 113,175     $ 112,317     $ 111,400     $ 102,978     $ 99,161     $ 99,572     $ 99,924     $ 99,561     $ 99,367     $ 97,249     $ 97,885     $ 95,062     $ 91,976  
     
Loans held for sale or securitization:
                                                                                                       
Commercial
  $ 122     $ 200     $ 103     $ 87     $ 49     $ 38     $ 42     $ 31     $ 43     $ 38     $ 35     $ 33     $ 35  
Commercial real estate
    280       340       317       439       398       287       210       181       120       149       250       91       39  
Residential real estate:
                                                                                                       
National City Mortgage
    7,372       8,522       9,175       8,421       8,181       8,051       7,746       7,216       6,450       6,279       6,283       5,843       5,547  
First Franklin(1)
                                                    96       1,671       1,703       5,571       8,936  
Home equity installment
    563       711       718       1,176       2,534       2,070       1,836       1,511       879       926       1,306       959       581  
     
Total residential real estate loans held for sale
    7,935       9,233       9,893       9,597       10,715       10,121       9,582       8,727       7,425       8,876       9,292       12,373       15,064  
Credit card loans
                                                    260       425       425       253        
Home equity lines of credit
    651       949       1,102       1,526       3,664       3,075       2,986       2,555       2,121       2,789       3,109       2,682       2,236  
Student loans
          1       1       2       1       1       1       1                         1       4  
     
Total loans held for sale or securitization
  $ 8,988     $ 10,723     $ 11,416     $ 11,651     $ 14,827     $ 13,522     $ 12,821     $ 11,495     $ 9,969     $ 12,277     $ 13,111     $ 15,433     $ 17,378  
     
LIABILITIES
                                                                                                       
Deposits:
                                                                                                       
Noninterest bearing
  $ 16,791     $ 17,001     $ 16,999     $ 16,389     $ 16,692     $ 16,871     $ 16,726     $ 17,034     $ 17,604     $ 16,268     $ 16,566     $ 17,101     $ 16,507  
NOW and money market accounts
    37,755       37,167       36,904       34,502       33,950       33,809       33,368       33,857       33,394       32,549       31,800       30,343       29,370  
Savings accounts
    2,947       2,927       3,023       2,152       2,214       2,290       2,338       2,406       2,477       2,459       2,366       1,889       1,790  
Consumer time
    29,686       29,919       29,989       26,073       25,740       25,292       25,031       24,884       24,629       24,459       24,338       23,641       22,198  
     
Core deposits
    87,179       87,014       86,915       79,116       78,596       78,262       77,463       78,181       78,104       75,735       75,070       72,974       69,865  
Other
    3,798       3,641       3,688       3,401       3,145       3,188       3,395       3,568       3,641       3,952       4,179       4,320       4,375  
Foreign
    7,226       7,660       7,210       8,145       10,428       9,196       9,372       7,440       7,261       7,575       7,968       7,840       10,147  
     
Total deposits
  $ 98,203     $ 98,315     $ 97,813     $ 90,662     $ 92,169     $ 90,646     $ 90,230     $ 89,189     $ 89,006     $ 87,262     $ 87,217     $ 85,134     $ 84,387  
     
Federal funds borrowed and security repurchase agreements
  $ 6,324     $ 6,596     $ 6,103     $ 6,085     $ 6,338     $ 7,098     $ 6,567     $ 6,031     $ 5,288     $ 5,264     $ 4,681     $ 6,405     $ 7,100  
Borrowed funds
    1,626       2,021       2,612       2,816       2,350       2,943       3,062       2,588       1,264       1,232       1,223       1,290       2,098  
Long-term debt
    28,167       28,014       29,156       26,661       23,194       23,164       22,883       23,297       24,233       25,018       26,229       26,251       25,839  
Memo:
                                                                                                       
Noninterest bearing escrow balances
  $ 3,569     $ 3,658     $ 3,636     $ 3,720     $ 3,782     $ 3,909     $ 3,759     $ 3,620     $ 3,448     $ 3,379     $ 3,329     $ 4,004     $ 4,169  
Interest bearing escrow balances
    165       160       156       157       158       156       153       155       157       153       150       135       136  
Noninterest bearing deposits excluding escrow balances
    13,222       13,343       13,363       12,669       12,910       12,962       12,967       13,414       14,156       12,889       13,237       13,097       12,338  
Core deposits excluding escrow balances
    83,445       83,196       83,123       75,239       74,656       74,197       73,551       74,406       74,499       72,203       71,591       68,835       65,560  
 
(1)   Represents nonconforming residential real estate loans originated by the former First Franklin and/or Altegra/Loan Zone business units. These portfolios are in run-off.

 4


 

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
CREDIT QUALITY STATISTICS
($ in millions)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
CHARGE-OFFS & RECOVERIES
                                                                                                       
Charge-offs:
                                                                                                       
Commercial
  $ 17     $ 13     $ 8     $ 3     $ 6     $ 5     $ 6     $ 3     $ 7     $ 3     $ 2     $ 23     $ 9  
Commercial leases
    4       3       1       4       3       3       2       11       20       1       1       2       1  
Commercial construction
    5       2       4       2       4       2       3             4       1             11        
Commercial real estate
    6       6       4       2       1       1       1       1       2       1             5       (1 )
Residential real estate
    38       33       23       37       11       23       22       10       45       11       12       20       14  
Home equity lines of credit
    13       12       18       10       6       6       8       6       1       9       13       12       7  
Credit card and other unsecured lines of credit
    12       10       10       9       10       10       9       9       11       12       12       10       8  
Other consumer
    7       8       6       4       3       5       4       4       5       5       4       5       5  
     
Total charge-offs
    102       87       74       71       44       55       55       44       95       43       44       88       43  
     
Recoveries:
                                                                                                       
Commercial
    1       4       3       1       2       2       1       2       2       1       2       4       3  
Commercial leases
    1       1             2       1       3       2       1       3       1       2       1       1  
Commercial construction
                                                                      1        
Commercial real estate
    1             1             3       (1 )     1       4       1                   1        
Residential real estate
    4       1       9       9       2       3       14       5       1       2       2       3       4  
Home equity lines of credit
    3       2       2       3       2       4       2       2       3       2       1       1       1  
Credit card and other unsecured lines of credit
    1       1       1       1       1       2       1       1       2       2       1       1       1  
Other consumer
    3       2       1       2       2       3       2       2       2       2       3       1       2  
     
Total recoveries
    14       11       17       18       13       16       23       17       14       10       11       13       12  
     
Net charge-offs
  $ 88     $ 76     $ 57     $ 53     $ 31     $ 39     $ 32     $ 27     $ 81     $ 33     $ 33     $ 75     $ 31  
     
NONPERFORMING ASSETS
                                                                                                       
Commercial
  $ 155     $ 156     $ 142     $ 144     $ 122     $ 117     $ 100     $ 103     $ 107     $ 100     $ 89     $ 92     $ 117  
Commercial leases
    9       7       10       9       7       8       4       6       13       34       34       32       35  
Commercial construction
    258       235       234       144       111       108       109       119       119       111       113       109       107  
Commercial real estate
    192       185       181       166       140       138       115       124       118       115       109       111       96  
Residential real estate:
                                                                                                       
National City Mortgage and other
    257       258       193       150       128       116       106       113       111       114       100       91       101  
First Franklin (1)
    101       89       86       86       85       75       82       82       68       68       67       65       65  
     
Total real estate — residential
    358       347       279       236       213       191       188       195       179       182       167       156       166  
     
Home equity lines of credit
    16       21       15                                                              
Total nonperforming portfolio loans
    988       951       861       699       593       562       516       547       536       542       512       500       521  
Other real estate owned (OREO):
                                                                                                       
Commercial
    6       4       4       3       3       3                               1       1        
Residential real estate:
                                                                                                       
National City Mortgage and other
    141       138       130       108       107       114       120       124       121       122       113       109       93  
First Franklin (1)
    229       204       179       172       163       157       133       130       136       95       98       116       122  
     
Total real estate — residential
    370       342       309       280       270       271       253       254       257       217       211       225       215  
     
Other
    10       10       11       11       11       10       8       6       6       6       6       3       1  
Total OREO
    386       356       324       294       284       284       261       260       263       223       218       229       216  
Mortgage loans held for sale and other
    26       25       26       27       1       2       1       1       2       7       6       3       24  
     
Total Nonperforming Assets
  $ 1,400     $ 1,332     $ 1,211     $ 1,020     $ 878     $ 848     $ 778     $ 808     $ 801     $ 772     $ 736     $ 732     $ 761  
     
LOANS 90+ DAYS PAST DUE ACCRUING INTEREST
                                                                                                       
Commercial
  $ 39     $ 41     $ 42     $ 36     $ 47     $ 45     $ 46     $ 27     $ 46     $ 28     $ 27     $ 31     $ 47  
Commercial leases
                                        1       1                               1  
Commercial construction
    69       72       66       85       71       66       41       21       30       19       11       13       19  
Commercial real estate
    52       41       57       38       33       38       42       20       31       21       22       18       22  
Residential real estate:
                                                                                                       
National City Mortgage and other
    615       494       418       330       280       249       216       191       170       149       152       137       136  
First Franklin (1)
    785       739       734       654       636       619       638       638       644       581       565       567       582  
     
Total real estate — residential
    1,400       1,233       1,152       984       916       868       854       829       814       730       717       704       718  
     
Home equity lines of credit
    89       59       55       48       29       27       31       49       47       49       44       37       41  
Credit card and other unsecured lines of credit
    41       37       34       30       29       28       30       29       35       37       37       35       31  
Other consumer
    16       13       11       9       9       9       9       8       10       10       11       11       10  
Mortgage loans held for sale and other
    25       59       43       33       41       28       18       18       19       117       108       89       81  
     
Total Loans 90+ Days Past Due
  $ 1,731     $ 1,555     $ 1,460     $ 1,263     $ 1,175     $ 1,109     $ 1,072     $ 1,002     $ 1,032     $ 1,011     $ 977     $ 938     $ 970  
     
 
(1)   Represents nonconforming residential real estate loans originated by the former First Franklin and/or Altegra/Loan Zone business units. These portfolios are in run-off.

 5


 

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
CAPITALIZATION (Period End)
(In millions, except per share data)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
COMMON STOCK ROLLFORWARD
                                                                                                       
Beginning balance
    633.8       633.3       567.4       567.6       566.3       566.1       575.8       595.5       649.9       648.1       632.4       602.6       602.2  
Shares issued under stock award plans
          .6       .4       .1       1.3       .2       .1       .5       1.4       2.2       2.2       .4       .6  
Shares issued for acquisitions
                66.6                                                 13.7       29.5        
Shares repurchased under repurchase authorizations
          (.1 )     (1.0 )                       (9.8 )     (20.1 )     (55.2 )                        
Shares exchanged for stock award plans
                (.1 )     (.3 )                       (.1 )     (.6 )     (.4 )     (.2 )     (.1 )     (.2 )
     
Ending balance
    633.8       633.8       633.3       567.4       567.6       566.3       566.1       575.8       595.5       649.9       648.1       632.4       602.6  
     
COMMON STOCK REPURCHASE ACTIVITY
                                                                                                       
Number of common shares repurchased(1)
          .1       1.0                         9.8       20.1       55.2                          
Average price per share of repurchased common shares
        $ 26.22     $ 25.77                       $ 35.86     $ 36.76     $ 38.30                          
Total cost
        $ 2.6     $ 25.8                       $ 349.3     $ 740.1     $ 2,113.7                          
Common shares remaining under authorization(1)
    37.6       37.6       37.7       38.7       38.7       38.7       38.7       48.5       28.6       43.5       43.5       43.5       13.5  
Shares outstanding:
                                                                                                       
Average basic
    633.3       633.2       633.3       566.8       565.8       565.5       569.6       583.2       605.2       648.2       643.3       631.2       602.4  
Average diluted
    635.8       637.0       637.6       570.2       571.4       572.4       577.3       591.6       613.7       657.6       651.9       640.0       611.2  
(1)   In April 2007, National City’s Board of Directors authorized the repurchase of an additional 40 million shares of issued and outstanding common stock.
FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS(1)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
Line of business staff:
                                                                                                       
Retail Banking
    15,011       14,898       15,043       13,777       13,672       13,640       13,527       13,470       13,416       13,375       13,424       12,843       12,371  
Commercial Banking-Regional
    1,385       1,417       1,416       1,368       1,361       1,343       1,355       1,346       1,361       1,344       1,343       1,292       1,287  
Commercial Banking-National
    1,108       1,125       1,126       1,120       1,121       1,109       1,115       1,110       1,115       1,117       1,112       1,103       1,120  
Mortgage Banking
    6,274       6,766       7,210       7,452       7,508       7,599       7,627       7,660       7,371       7,370       7,342       7,289       7,245  
Asset Management
    1,545       1,564       1,568       1,553       1,534       1,528       1,518       1,520       1,532       1,514       1,518       1,513       1,508  
Corporate support staff(2)(3)
    7,481       7,603       7,661       7,326       7,285       7,226       7,184       7,217       7,516       7,557       7,507       7,230       10,220  
     
Total Employees
    32,804       33,373       34,024       32,596       32,481       32,445       32,326       32,323       32,311       32,277       32,246       31,270       33,751  
     
(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.
 
(3)   Periods prior to December 2006 include full-time equivalent employees associated with the First Franklin and National City Home Loan Services business units which were sold in December 2006.

 6


 

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
RETAIL BANKING PERFORMANCE MEASURES
($ in millions)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
Average Total Deposits(1)
  $ 73,082     $ 72,935     $ 72,748     $ 65,243     $ 64,723     $ 64,331     $ 63,786     $ 63,814     $ 63,025     $ 62,154     $ 61,280     $ 56,932     $ 56,486  
 
                                                                                                       
DEPOSIT ACCOUNT METRICS(1)(2)
                                                                                                       
Personal Deposits:
                                                                                                       
Noninterest Bearing Checking Average total balance
  $ 3,403     $ 3,421     $ 3,508     $ 3,197     $ 3,244     $ 3,318     $ 3,354     $ 3,524     $ 3,444     $ 3,345     $ 3,219     $ 2,997     $ 2,916  
Number of accounts(3)
    1,808       1,813       1,816       1,813       1,805       1,796       1,782       1,779       1,782       1,776       1,781       1,685       1,689  
Interest Bearing Checking Average total balance
  $ 9,316     $ 9,202     $ 9,297     $ 8,721     $ 8,757     $ 8,912     $ 8,925     $ 9,218     $ 9,013     $ 8,829     $ 8,765     $ 8,256     $ 8,077  
Number of accounts(3)
    1,157       1,161       1,165       1,167       1,171       1,175       1,176       1,179       1,183       1,180       1,168       1,127       1,122  
Money Market Savings Average total balance
  $ 18,711     $ 18,299     $ 17,949     $ 16,520     $ 16,265     $ 16,069     $ 15,809     $ 15,574     $ 15,396     $ 15,052     $ 14,714     $ 14,044     $ 13,860  
Number of accounts(3)
    1,373       1,332       1,293       1,241       1,200       1,154       1,109       1,066       1,019       1,024       997       972       960  
Regular savings Average total balance
  $ 2,651     $ 2,699     $ 2,761     $ 1,845     $ 1,915     $ 1,984     $ 2,029     $ 2,066     $ 2,069     $ 2,058     $ 1,996     $ 1,532     $ 1,555  
Number of accounts(3)
    499       507       517       525       537       551       559       567       575       583       589       534       540  
 
                                                                                                       
Business Deposits:
                                                                                                       
Average total balance
  $ 9,539     $ 9,626     $ 9,445     $ 8,949     $ 8,827     $ 8,797     $ 8,630     $ 8,563     $ 8,486     $ 8,409     $ 8,305     $ 7,869     $ 7,878  
Number of accounts(3)
    450       448       447       444       443       441       438       436       434       433       431       405       405  
 
                                                                                                       
Time Deposits:
                                                                                                       
Average total balance
  $ 28,591     $ 28,843     $ 28,950     $ 25,193     $ 24,870     $ 24,428     $ 24,180     $ 24,010     $ 23,743     $ 23,579     $ 23,478     $ 21,480     $ 21,465  
Number of accounts(3)
    1,084       1,087       1,128       1,120       1,120       1,123       1,117       1,111       1,110       1,132       1,129       1,055       1,061  
 
                                                                                                       
CONSUMER LOAN PRODUCTION METRICS (# of loans)(2)(4)
                                                                                                       
Installment loan originations:
                                                                                                       
Home equity(5)
    1,099       1,300       1,599       1,933       2,085       2,315       2,440       2,191       2,116       1,992       1,608       1,718       2,124  
Other(6)
    2,175       2,605       2,436       3,015       3,045       2,841       2,868       2,654       2,487       1,591       1,943       1,814       2,126  
Home equity and other lines of credit
    12,245       8,848       6,669       7,648       6,806       7,748       7,493       6,833       6,825       5,387       4,911       5,355       5,833  
     
Total consumer loan originations
    15,519       12,753       10,704       12,596       11,936       12,904       12,801       11,678       11,428       8,970       8,462       8,887       10,083  
     
 
                                                                                                       
BANK BRANCHES AND OTHER
                                                                                                       
Total bank branches
    1,445       1,442       1,442       1,360       1,359       1,357       1,358       1,358       1,357       1,361       1,357       1,303       1,254  
ATMs
    2,227       2,226       2,225       2,106       2,102       2,101       2,096       2,098       2,098       2,092       2,088       2,013       1,965  
Online banking customers
    2,160,343       2,104,234       2,053,894       1,949,479       1,908,990       1,872,661       1,828,397       1,795,588       1,760,334       1,720,157       1,692,859       1,680,939       1,621,800  
(1)   Restated to reflect the reassignment of certain deposits with the Commercial Banking-Regional line of business.
 
(2)   Excludes Education Finance and National City Card Services. Additionally, home equity loans generated by the Mortgage Banking line of business are excluded from the consumer loan production metrics.
 
(3)   Represents period-end number of accounts in thousands.
 
(4)   Includes amounts associated with the Harbor and Fidelity acquisitions beginning April 2007. Additionally, excludes amounts associated with the MAF acquisition.
 
(5)   Represents closed-end home equity installment loans included in real estate residential portfolio loans on the consolidated balance sheet.
 
(6)   Represents other secured installment loans.

 7


 

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
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
ASSETS UNDER ADMINISTRATION
                                                                                                       
Managed assets:
                                                                                                       
Value at beginning of period
  $ 65,323     $ 65,587     $ 64,037     $ 62,927     $ 64,560     $ 63,703     $ 62,136     $ 62,186     $ 61,929     $ 62,322     $ 61,369     $ 61,805     $ 60,546  
Acquisition
                                                                99              
Estimated change due to market impact
    (1,227 )     719       1,553       732       (860 )     (113 )     1,207       1,199       541       (117 )     491       28       651  
Other activity, net
    272       (983 )     (3 )     378       (773 )     970       360       (1,249 )     (284 )     (276 )     363       (464 )     608  
     
Value at end of period
    64,368       65,323       65,587       64,037       62,927       64,560       63,703       62,136       62,186       61,929       62,322       61,369       61,805  
     
Non-managed assets:
                                                                                                       
Value at beginning of period
    51,913       51,277       50,698       51,610       52,886       54,400       53,155       51,729       51,544       51,326       50,823       51,831       51,725  
Acquisition
                                                                19              
Estimated change due to market impact
    (859 )     542       981       293       (993 )     (361 )     770       1,154       606       (66 )     450       744       595  
Other activity, net
    188       94       (402 )     (1,205 )     (283 )     (1,153 )     475       272       (421 )     284       34       (1,752 )     (489 )
     
Value at end of period
    51,242       51,913       51,277       50,698       51,610       52,886       54,400       53,155       51,729       51,544       51,326       50,823       51,831  
     
Total assets at end of period
  $ 115,610     $ 117,236     $ 116,864     $ 114,735     $ 114,537     $ 117,446     $ 118,103     $ 115,291     $ 113,915     $ 113,473     $ 113,648     $ 112,192     $ 113,636  
     
Proprietary mutual fund assets (included above)
  $ 13,199     $ 13,060     $ 13,492     $ 13,303     $ 13,083     $ 13,339     $ 13,256     $ 12,984     $ 13,247     $ 13,089     $ 12,999     $ 12,672     $ 12,545  
MORTGAGE BANKING STATISTICS
($ in millions)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
ORIGINATION AND SALES DATA
                                                                                                       
Applications(1)
  $ 5,037     $ 5,710     $ 6,157     $ 6,662     $ 8,366     $ 8,246     $ 8,402     $ 8,070     $ 8,941     $ 6,725     $ 6,700     $ 6,214     $ 6,323  
Percentage of applications represented by refinances
    59 %     52 %     52 %     47 %     50 %     48 %     51 %     53 %     54 %     55 %     59 %     63 %     59 %
Originations:
                                                                                                       
Retail
  $ 1,612     $ 1,778     $ 1,626     $ 2,283     $ 2,336     $ 2,598     $ 2,616     $ 2,541     $ 2,508     $ 2,014     $ 2,158     $ 2,302     $ 2,162  
Wholesale
    944       1,646       1,441       1,951       2,247       2,162       2,145       2,176       1,887       1,432       1,834       1,669       1,429  
Less: loan originations for portfolio and other units
    (145 )     (156 )     (148 )     (330 )     (402 )     (436 )     (428 )     (384 )     (389 )     (333 )     (363 )     (377 )     (409 )
     
Total originations for sale
  $ 2,411     $ 3,268     $ 2,919     $ 3,904     $ 4,181     $ 4,324     $ 4,333     $ 4,333     $ 4,006     $ 3,113     $ 3,629     $ 3,594     $ 3,182  
     
Percentage of originations represented by refinances
    47 %     50 %     44 %     44 %     45 %     45 %     51 %     55 %     54 %     59 %     63 %     59 %     56 %
Loan Sales:
                                                                                                       
Loans sold servicing retained
  $ 4,252     $ 3,280     $ 2,682     $ 3,626     $ 3,275     $ 3,777     $ 3,277     $ 2,673     $ 3,107     $ 2,710     $ 2,784     $ 2,377     $ 2,564  
Loans sold servicing released
    130       28       67       84       304       200       229       341       286       181       202       328       358  
     
Total loan sales
  $ 4,382     $ 3,308     $ 2,749     $ 3,710     $ 3,579     $ 3,977     $ 3,506     $ 3,014     $ 3,393     $ 2,891     $ 2,986     $ 2,705     $ 2,922  
     
SERVICING DATA
                                                                                                       
Mortgage loans serviced for third parties
  $ 177,435     $ 174,925     $ 173,682     $ 169,668     $ 168,573     $ 167,357     $ 166,014     $ 165,223     $ 164,733     $ 164,051     $ 163,377     $ 162,264     $ 161,984  
HOME EQUITY SALE DATA(2)
                                                                                                       
HELOCs sold servicing retained
  $ 340                 $ 684           $ 394           $ 69     $ 633     $ 803     $ 346           $ 843  
HELOCs sold servicing released
                                                                             
HELOANs sold servicing retained
                                  323     $ 348             399       726                   227  
HELOANs sold servicing released
    303                       $ 217                                                 230  
     
Total sales
  $ 643                 $ 684     $ 217     $ 717     $ 348     $ 69     $ 1,032     $ 1,529     $ 346           $ 1,300  
     
(1)   Includes loans originated for sale and held in portfolio.
 
(2)   Represents loans originated by the former National Home Equity business unit.

 8


 

Unaudited
National City Corporation
Mid-Quarter Update to Financial Supplement
RUN-OFF LOAN PORTFOLIO STATISTICS
($ in millions)
                                                                                                         
    November   October   September   August   July   June   May   April   March   February   January   December   November
    2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2007   2006   2006
     
RESIDENTIAL REAL ESTATE
                                                                                                       
NONCONFORMING LOANS(1):
                                                                                                       
Period-end portfolio balance
  $ 6,227     $ 6,442     $ 6,648     $ 6,887     $ 7,181     $ 7,419     $ 7,716     $ 7,953     $ 8,217     $ 6,495     $ 6,983     $ 7,480     $ 7,903  
Weighted-average note rate
    8.21 %     8.19 %     8.18 %     8.08 %     8.02 %     8.00 %     7.98 %     7.92 %     7.91 %     7.88 %     7.83 %     7.98 %     7.92 %
Weighted-average loan size
  $ 93,713     $ 93,582     $ 93,460     $ 93,592     $ 93,756     $ 92,321     $ 92,875     $ 93,539     $ 94,261     $ 91,019     $ 91,761     $ 92,690     $ 93,614  
Weighted-average credit score(2)(3)
    625       624       624       624       624       624       624       627       628       628       629       629       629  
First-lien weighted-average loan-to-value ratio(4)
    78.20 %     78.20 %     78.21 %     78.23 %     78.22 %     77.17 %     77.23 %     77.34 %     77.38 %     77.61 %     77.63 %     77.70 %     77.75 %
Net charge-offs
  $ 12     $ 12     $ 1     $ 18     $ 4     $ 17     $ 8           $ 40     $ 6     $ 7     $ 8     $ 6  
Loans 90 days past due
    785       739       734       654       636       619       638     $ 638       642       580       564       566       580  
Portfolio delinquency rate
    27.23 %     27.61 %     24.49 %     23.71 %     22.88 %     21.37 %     20.97 %     19.35 %     20.89 %     21.08 %     20.82 %     20.92 %     18.98 %
HOME EQUITY LOANS(HELOAN)(5):
                                                                                                       
Period-end portfolio balance
  $ 3,784     $ 3,448     $ 3,486     $ 3,509     $ 1,232     $ 1,258     $ 1,303     $ 1,302     $ 1,331     $ 1,350     $ 1,387     $ 1,412     $ 1,403  
Weighted-average credit score(2)(3)
    725       727       729       734       738       738       738       738       737       738       738       738       738  
Weighted-average cumulative loan-to-value ratio(6)
    89.13 %     89.15 %     89.19 %     89.19 %     89.21 %     89.24 %     89.26 %     89.30 %     89.35 %     89.34 %     89.37 %     89.38 %     89.41 %
Net charge-offs
  $ 8     $ 5     $ 4     $ 3           $ 1           $ 1     $ 1                       $ 1  
Loans 90 days past due
    32       26       15       10     $ 2       2     $ 1       1       1     $ 1     $ 1     $ 1       1  
HOME EQUITY LINES OF CREDIT(HELOC)(5):
                                                                                                       
Period-end portfolio balance
  $ 7,565     $ 7,328     $ 7,187     $ 7,336     $ 4,768     $ 5,025     $ 5,084     $ 5,241     $ 5,424     $ 5,541     $ 5,748     $ 5,928     $ 6,156  
Weighted-average credit score(2)(3)
    725       726       728       724       729       730       730       730       729       729       729       731       731  
Weighted-average cumulative loan-to-value ratio(6)
    78.24 %     78.23 %     78.23 %     78.26 %     78.24 %     78.09 %     79.40 %     79.51 %     79.59 %     79.55 %     79.51 %     79.54 %     79.64 %
Utilization rate
    49 %     51 %     50 %     49 %     47 %     46 %     47 %     47 %     48 %     48 %     49 %     49 %     49 %
Net charge-offs
  $ 7     $ 7     $ 14     $ 5     $ 2     $ 2     $ 4     $ 1     $ 4     $ 1     $ 5     $ 7     $ 4  
Loans 90 days past due
    52       36       29       31       14       13       17       18       21       22       21       19       22  
 
(1)   Represents nonconforming residential real estate loans originated by the former First Franklin business unit. As First Franklin was sold in December 2006, this portfolio is in run-off.
 
(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)   Based upon most recent available FICO® score for borrowers. FICO® scores are updated quarterly.
 
(4)   Based upon period-end first-lien mortgage loan balance divided by the most recent obtained value of the underlying mortgaged property.
 
(5)   Represents loans originated by the former National Home Equity business unit. These portfolios are in run-off.
 
(6)   Based upon period-end first-lien and second-lien mortgage loan balances divided by the obtained value of the underlying mortgaged property at the time of origination.

 9