National City has locations in several states including Indiana, Illinois, Kentucky and Ohio.

Press Release

National City Corporation (NYSE: NCC) reported a net loss for the third quarter of 2008 of $729 million, driven primarily by continued actions to build loan loss reserves. This compares to a net loss of $1.8 billion in the second quarter of 2008, and a net loss of $19 million in the third quarter a year ago. On a year-to-date basis, the net loss was $2.7 billion in 2008 compared to net income of $647 million in 2007.

Diluted net loss per common share was $5.86 for the third quarter of 2008 and $9.51 on a year-to-date basis, inclusive of a $4.4 billion one-time noncash preferred dividend recorded in September 2008 on convertible preferred stock issued as part of National City's $7 billion capital raise completed in April. The noncash dividend had no impact on total capital or net income. Excluding diluted net loss per common share would have been $.85 in the third quarter of 2008 and $3.60 on a year-to-date basis based on weighted average common shares outstanding of
877 million and 745 million, respectively. As of September 30, 2008, post conversion of preferred shares, the Corporation had approximately 2.0 billion common shares outstanding. Had those shares been outstanding from the beginning of the period, diluted net loss per common share would have been $.37 for the third quarter of 2008, exclusive of the noncash preferred
dividend.

The provision for loan losses was $1.2 billion, down $408 million, or 25%, from the preceding quarter. Net charge-offs were $844 million in the third quarter of 2008, up $104 million from the preceding period due to $134 million of writedowns from reclassifications of loans to held for sale.

Pre-tax pre-provision operating earnings were $636 million in the third quarter of 2008, about equal to the preceding period, and up $93 million from the third quarter a year earlier. On a year-to-date basis, pre-tax pre-provision operating earnings were approximately $1.9 billion in both 2008 and 2007.

As of September 30, 2008, the Corporation's Tier 1 risk-based capital ratio was 10.98%, $6.6 billion in excess of the well-capitalized minimum. Total risk-based capital was 14.86% and tangible equity to assets was 8.93% at September 30, 2008.

Chairman's Comments

Chairman, President and CEO Peter E. Raskind said, "Despite the
extraordinary disruptions in the financial markets this quarter, National City continued to maintain a strong capital position and build our franchise for the future. The competitive strength and resilience of our core banking franchise is underscored by the year-over-year growth we achieved in retail deposits and net new households as well as the expansion of existing households. By aggressively executing on our direct and integrated strategy, we continued to gain market share, better leverage cross-selling opportunities and establish deeper, more robust customer
relationships across our business. The performance improvement initiative we currently have underway will accelerate the implementation of this strategy, reduce costs and improve our ability to serve customers more efficiently and effectively."

"Not surprisingly, the larger macro-economic environment affected credit quality in our portfolios during the quarter. Reflecting this, we bolstered reserves by $318 million during the quarter, and by $2.0 billion year-to-date. Loan loss provisions declined by $408 million from the last quarter, and we continue to actively manage down our risk exposure and aggressively pursue loss mitigation strategies. Net charge-offs for the quarter were flat, excluding writedowns on loans reclassified to held for sale."

Exit Portfolio

The Corporation's Exit Portfolio (formerly termed "Liquidating
Portfolio") was formed so that loans remaining from exited businesses and discontinued products could be managed separately from National City's core retail banking, corporate banking and wealth management businesses. This $21 billion portfolio consists of broker-originated home equity loans, nonprime mortgages, non-agency mortgages, residential construction loans, and automobile, marine and recreational vehicle loans originated through
dealers.

These loans, which are in run-off mode, have been declining about $500 million per month, and are actively managed to mitigate losses by a dedicated team headed by recently appointed Executive Vice President James LeKachman, an experienced risk management executive. Significant resources and talent are devoted to this effort, which includes ongoing evaluation of potential strategic alternatives. Undrawn home equity lines have declined
$2.9 billion since year end."

"A limited number of segments within our Exit Portfolio generated the majority of net charge-offs for the quarter," said Mr. Raskind. "Specifically, $8.4 billion of Exit Portfolio loans, representing 8% of the company's total loans, accounted for 40% of total net charge-offs. The remainder of our Exit Portfolio showed stable or improving trends.Importantly, we have no exposure to Option ARM-type mortgages. We are actively managing down and mitigating losses from the Exit Portfolio and have the capital flexibility to consider a variety of alternatives for
these loans."

Performance Improvement Initiative

National City also has begun implementation of a previously announced performance improvement initiative to enhance earnings power and ability to grow in a scalable manner. The initiative is focused on reducing costs and driving changes in organizational structure and operations that will increase operating efficiency and accelerate the benefits of National City's direct and integrated strategy. Based on analysis completed to date,
the company expects this initiative to result in run-rate annual savings of $500-$600 million by 2011. The company estimates that $240 million of thisreduction will be realized in 2009, and expects to take associated charges in the range of $80 to $100 million. While anticipated personnel impacts are still being assessed, at this point, the company expects a reduction of approximately 4,000 positions or 14% of its total workforce, over the next three years.

The performance improvement initiative is based on a rigorous,
comprehensive analysis of operations conducted over the past quarter with the help of a leading consulting firm.

Two executives whose units comprise 60% of the bank's costs are leading the initiative: Dan Frate, Vice Chairman and Head of Retail Banking, and Jon Gorney, Executive Vice President and Head of Corporate Operations and Information Systems. In addition, Jeff Tengel, who previously ran National City's National Commercial business, is leading this effort on a day-to-day basis.

Although the review is ongoing, based on the analysis to date, the key areas of focus for this initiative include:

-- Immediately executing on a series of tactical, high-impact expense reductions to drive greater efficiencies and reduce procurement and headcount-related costs, worth approximately $165-200 million in annual savings.

-- Systematically streamlining and consolidating operations to optimize middle and back office functions, better integrate sales effort across the Company's footprint and improve the ability to serve customers more efficiently and cost-effectively, worth approximately $285-350 million in annual savings.

-- Reshaping the Company to simplify its management structure and extend the impact of its direct and integrated strategy across the organization, worth approximately $50 million in annual savings.

Raskind said: "This important initiative is the centerpiece of our
ongoing efforts to transform National City, drive sustainable, profitable growth and deliver value to our customers and shareholders. Our goal is to create a much more focused, straightforward and streamlined organization with enhanced expense control and risk management as part of its core DNA.
At the same time, we are committed to continued investment in our core franchise to expand and deepen our customer relationships."

Additional Actions to Strengthen Management and Improve Performance

In addition to its progress managing down its Exit Portfolio and
implementing its performance improvement initiative, National City has taken the following steps to further strengthen its management team and improve performance, including:

-- Combining regional and national commercial operations under one corporate banking division, now operating under the leadership of recently appointed Executive Vice President, Rick Michel, with a more streamlined and integrated organizational structure.

-- Investing in new product management capabilities and analytics in corporate banking to enhance return on capital, while continuing to de-emphasize non-core portfolios and business segments.

-- Enhancing the financial planning and alternative investment
capabilities in the Private Client Group, which completed the rollout of its Emerging Affluent client offering and expanded its Ultra Affluent offering.

-- Driving household growth in retail banking through strong "Bank at Work" penetration, and expanding household relationships through National City's industry leading Points program.

-- Improving cross-selling efforts to generate a substantial increase in mortgages made to retail banking customers.

Financial Review

In April 2008, the Corporation issued contingently convertible
preferred stock with a conversion price of $5.00 per common equivalent share, which was below the then-current market price of National City's common stock. In September 2008, upon stockholder approval of the conversion of this stock, the Corporation recorded a noncash preferred dividend, in the form of a transfer from retained earnings to capital surplus, of $4.4 billion. This preferred stock dividend had no impact on cash, total stockholders' equity, regulatory capital or net income. Net income available to common stockholders, which is the numerator in the computation of diluted earnings per common share, has been reduced by this noncash preferred dividend. Excluding this noncash preferred dividend, diluted loss per common share was $.85 in the third quarter of 2008 and $3.60 on a year-to-date basis.

Net Interest Income

Tax-equivalent net interest income was $1.0 billion for the third
quarter of 2008, about equal to the immediately preceding quarter, and down
about 7% compared to the third quarter a year ago. Net interest margin was
2.99% in the third quarter of 2008, up 2 basis points from the preceding
period. Net interest margin was down 44 basis points compared to the third
quarter a year ago due to higher levels of nonperforming assets and higher
funding costs. Average earning assets for the third quarter of 2008 were
$136.8 billion, down slightly compared to the preceding quarter, and up 7%
compared to the third quarter a year ago. The year-over-year growth in
earning assets reflects higher balances of federal funds sold and
short-term liquid investments.

Tax-equivalent net interest income was $3.1 billion for the first nine
months of 2008, down 6% compared to the prior year. Net interest margin was
3.05% for the first nine months of 2008, down 52 basis points compared to
the same period in 2007. The lower margin in 2008 was attributable to the
same factors described above. Average earning assets were $136.4 billion on
a year-to-date basis in 2008, up 10% from the same period a year ago. The
year-to-date growth in earning assets was due to higher balances of federal
funds sold and short-term investments, and a larger loan portfolio,
partially offset by a smaller balance of loans held for sale.

Provision for Loan Losses

The provision for loan losses was $1.2 billion in the third quarter of
2008, down from $1.6 billion in the preceding quarter, and up from $368
million in the third quarter of 2007. The following table shows the
provision for loan losses separately for the Core and Exit Portfolios.

The provision for loan losses in the two most recent quarters included
supplemental reserves for emerging credit trends. In the third quarter of
2008, a $31 million loan loss reserve was established for potentially
higher losses on credit card loans. In the second quarter of 2008, a $478
million supplemental reserve was established for potentially higher losses
on exited residential real estate and home equity loans resulting from
declining housing markets. On a year-to-date basis, the provision for loan
losses was $4.2 billion in 2008 compared to $635 million in 2007.

Net charge-offs were $844 million in the third quarter of 2008, and
included $134 million of writedowns on loans transferred to held for sale.
Absent this transfer, net charge-offs were slightly lower than the second
quarter of 2008 as losses on the Exit Portfolio have held steady. The
following table shows net charge-offs separately for the Core and Exit
Portfolios.

Net charge-offs in the Core Portfolio were $290 million in the third
quarter of 2008 versus $209 million in the second quarter with increased
losses concentrated primarily in commercial construction. Net charge-offs
for the Exit Portfolio were $554 million in the third quarter of 2008,
inclusive of $126 million of writedowns on loans transferred to held for
sale. On a year-to-date basis, net charge-offs were $2.1 billion in 2008,
of which $1.5 billion related to Exit Portfolio.

Loans 90 days past due were $1.1 billion at September 30, 2008, down
somewhat from June 30, 2008, primarily due to a lower level of delinquent
residential real estate loans within the Exit Portfolio. Loans 90 days past
due as of September 30, 2007 are not directly comparable as the Corporation
accelerated the classification of certain past-due loans to nonperforming
status in 2008.
Nonperforming assets were $3.5 billion at September 30, 2008, up $411
million from the preceding quarter, with the growth primarily in
commercial, commercial construction loans and exited mortgage loans.
Ongoing weakness in the housing markets continues to affect loans related
to residential real estate development. Other real estate owned declined by
4% compared to June 30, 2008, due mainly to larger fair value writedowns on
foreclosed properties.
The allowance for loan losses increased to $3.8 billion as of September
30, 2008, up from $3.4 billion at June 30, 2008. The allowance for loan
losses was 3.40% of portfolio loans and 124% of nonperforming loans as of
September 30, 2008.

($ in millions) September 30, June 30, September 30,

Noninterest Income

Noninterest income was $386 million in the third quarter of 2008, down
$45 million from the second quarter, and down $238 million from the third
quarter a year ago. On a year-to-date basis, noninterest income was
approximately $2.0 billion in both 2008 and 2007.

**Gain on redemption of Visa shares included within YTD 2008 security
gains.

Deposit service fees were $273 million in the third quarter of 2008, up
5% compared to the second quarter and up 19% compared to the third quarter
a year ago. This growth reflects higher fee generating transaction volumes
as well as a larger number of deposit accounts. On a year-to-date basis,
deposit service fees were $763 million, up 16% from the same period last
year, resulting from the same factors previously described, as well as an
acquisition completed in the last half of 2007.

Loan sales and servicing loss was $56 million in the third quarter of
2008, $85 million better than the preceding quarter, but $141 million worse
than the third quarter a year ago. The net loss from loan sales and
servicing arose from net mortgage servicing right (MSR) hedging losses. Net
MSR hedging (losses)/gains were $(189) million in the third quarter of
2008, $(146) million in the second quarter of 2008, versus $64 million in
the third quarter a year ago. Loan sale revenue improved compared to the
preceding quarter due to a lower provision for estimated recourse losses on
potential mortgage loan repurchases. On a year-to-date basis, the loan sale
and servicing loss was also driven by net MSR hedging losses as well as
lower mortgage production and sales volume. On a year-to-date basis, net
MSR hedging (losses)/gains were $(394) million in 2008 and $25 million in
2007.

Net security losses arose from other-than-temporary impairment of
available for sale securities of $91 million in the third quarter of 2008
and $29 million in second quarter of 2008. On a year-to-date basis, net
security gains of $532 million were realized on the partial redemption of
Visa Class B shares, partially offset by other-than-temporary impairment
losses of $136 million. No redemptions or impairments were recognized in
2007.

Noninterest Expense

Noninterest expense was $1.3 billion in the third quarter of 2008, down
$942 million from the second quarter, and down $61 million from the third
quarter a year ago. On a year-to-date basis, noninterest expense was $4.6
billion in 2008, up about $886 million from the prior year due to asset
impairment charges.

*Goodwill impairment and Visa indemnification included within
impairment, fraud and other losses in all periods.

Salaries, benefits and other personnel costs decreased 9% compared to
the preceding quarter and 12% compared to the third quarter a year ago due
to reductions in staffing, lower business volumes, and lower incentive
compensation. On a year-to-date basis, personnel costs were down 4%
compared to the prior year. Cost savings from reduced staffing levels in
2008 were partially offset by lower deferrals of loan origination costs
resulting from the adoption of fair value for certain loans held for sale
at the beginning of the year.

Impairment, fraud and other losses for the third quarter of 2008
included a provision of $87 million for Visa indemnification obligations,
as well as an impairment loss of $28 million for real estate under
development associated with a prior acquisition. In the second quarter of
2008, impairment, fraud and other losses included a goodwill impairment
charge of $1.1 billion. The third quarter of 2007 included a provision of
$157 million for Visa indemnification obligations, $44 million of asset
impairments, and a $25 million litigation settlement. On a year-to-date
basis, the higher losses in 2008 reflect the previously described
indemnification obligation and asset impairments, partially offset by a
release of Visa indemnification liabilities established in prior periods.

Foreclosure costs increased to $122 million in the third quarter, up
$61 million from the immediately preceding quarter, and up $105 million
versus the third quarter a year ago. Larger fair value writedowns were
recognized in the third quarter of 2008 based on more aggressive property
disposition strategies. Compared to the third quarter a year earlier,
foreclosure costs have increased due to more loans in foreclosure and
higher expected and realized losses associated with declining property
values. The same factors accounted for the higher foreclosure costs on a
year-to-date basis.

Balance Sheet

Loans

Average portfolio loans were $111.7 billion in the third quarter of
2008, down $2.4 billion from the second quarter of 2008, and up $7.2
billion from the third quarter a year ago. Average loans held for sale were
$2.1 billion in the third quarter of 2008, down almost $1 billion from the
preceding quarter, and down $10.5 billion from the third quarter a year
ago. The table shown below summarizes the average balances for both the
Core and Exit Portfolios, as well as loans held for sale.

The average balance of the Core Portfolio was down slightly compared to
the preceding quarter but up $4.7 billion compared to the third quarter a
year ago primarily due to a September 2007 acquisition. The Exit Portfolio
declined from the second quarter with ongoing paydowns and charge-offs. The
Exit Portfolio balance increased compared to third quarter a year earlier
as residential construction and non-agency mortgage loans were added to
this portfolio in 2008. Loans held for sale declined compared to prior
periods which reflects the curtailment of non-agency mortgage-related
products and wholesale channels. Late in the third quarter of 2008, the
Corporation's $1.2 billion marine portfolio was transferred to held for
sale. This reclassification did not have a significant impact on the
average balances reported above.

Deposits

Average total deposits were $98.7 billion in the third quarter of 2008, down less than $1 billion compared to the preceding quarter, and up $5.2 billion compared to the third quarter a year ago. Average core deposits, excluding mortgage escrow and custodial balances, were $83.3 billion in the third quarter of 2008, down $1.0 billion compared to the second quarter of 2008, and up $5.7 billion compared to the third quarter a year ago. New customers and accounts were added during the quarter, which partially offset declines in deposit balances in excess of FDIC insurance limits. Compared to the third quarter a year earlier, deposits have grown with continued household growth and expansion as well as a September 2007 acquisition.

Capital

Total stockholders' equity was $17.2 billion at September 30, 2008 and tangible stockholders' equity was $12.5 billion, up $4.9 billion compared to December 31, 2007. During the second quarter of 2008, the Corporation raised $7.0 billion of equity capital by issuing common stock, contingently convertible preferred shares and warrants. On September 15, 2008,
stockholders approved the conversion of the contingently convertible preferred shares, and shortly thereafter, these shares were exchanged into approximately 1.3 billion common shares. This exchange had no effect on cash, total stockholders' equity or regulatory capital. Capital ratios are shown in the table below.

Pre-Tax Pre-Provision Operating Earnings

Consolidated net (loss)/income, measured in accordance with GAAP, is the principal and most useful measure of earnings and provides comparability of earnings with other companies. However, management believes presenting pre-tax pre-provision operating earnings provides investors with additional information in order to better understand the company's underlying operating trends. Pre-tax pre-provision operating earnings, as defined by management, represents net (loss) income excluding income tax (benefit) expense, the provision for loan losses, as well as other items as shown below. The following table reconciles consolidated net (loss)/income presented in accordance with U.S. generally accepted accounting principles (GAAP) to pre-tax pre-provision operating earnings.

Conference Call

Management of National City will host a conference call at 8:00 a.m. (ET) on Tuesday, October 21, 2008 to discuss the third quarter 2008 results. Presentation slides to accompany the conference call remarks may be found at http://phx.corporate-ir.net/phoenix.zhtml?c=64242&p=irol-presentations .

Interested parties may access the conference call by dialing
1-800-230-1951. Participants are encouraged to call in 15 minutes prior to the call in order to register for the event. The conference call will also be accessible via the Company's Web site, nationalcity.com/investorrelations. Questions for discussion at the
conference call may be submitted any time prior to or during the call by sending an email to investor.relations@nationalcity.com.

A replay of the conference call will be available from 10:00 a.m. (ET) on October 21, 2008, until midnight (ET) on October 28, 2008. The replay will be accessible by calling 1-800-475-6701 (domestic) or 320-365-3844 (international) using the pass code of 893755 or via the Company's Web site.

National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania, and Wisconsin and also serves customers in selected markets nationally. Its core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management. For more information about National City, visit the company's Web site at nationalcity.com.

Source: National City Corporation