Data from Exhibit 2

BNY

Mellon

State St

North Trust

Citi

BoA

JPMC

Net Interest Income

1,909

485

907

661

39,345

30,737

19,831

Fee and Other Income

4,890

4,027

4,550

1,954

44,255

26,438

34,702

Provision for Loan Losses

15

19

7,929

4,014

3,483

Salaries & Benefits

2,532

1,764

2,231

965

25,772

15,054

18,255

Other Operating Expenses

1,934

1,638

1,810

770

15,507

9,428

12,202

Income Taxes

796

433

487

303

9,078

8,015

3,732

Net Income

1,571

912

838

584

19,738

16,447

8,470

Total Loans

40,726

6,573

6,482

19,966

583,503

573,791

384,948

Allowance for Loan Losses

(411)

(63)

(18)

(125)

(9,782)

(8,045)

(7,090)

Investments

44,504

21,326

80,588

27,147

622,728

551,254

616,797

Other Assets

17,255

10,842

10,916

6,426

297,588

174,803

204,287

Total Assets

102,074

38,678

97,968

53,414

1,494,037

1,291,803

1,198,942

Deposits

64,424

26,074

59,646

38,520

592,595

634,670

554,991

Short-Term Borrowings

1,694

1,146

23,369

3,355

314,656

368,112

166,590

Long Term Debt

7,817

4,404

2,608

5,513

178,324

89,660

103,563

Other Liabilities

18,263

2,852

5,978

2,426

295,925

97,828

266,587

Total Shareholders Equity

9,876

4,202

6,367

3,601

111,412

101,262

107,072

Total Liabilities & Equity

102,074

38,678

97,968

53,415

1,492,912

1,291,532

1,198,803

Shares Outstanding (FYend) 771

415

334

218

4,980

4,000

3,487

Dividends per Share (FY

2005)
Earnings per Share

0.87

0.78

0.72

0.86

1.76

1.90

1.36

2.04

2.20

2.51

2.68

3.96

4.11

2.43

Shares Outstanding (9/30/06) 763

411

331

218

4,944

4,526

3,471

ROE

17%

22%

14%

18%

18%

17%

8%

Efficiency

66%

76%

74%

66%

55%

46%

60%

- Closing Price

35.26

39.10

62.40

58.43

49.67

53.57

46.96

- 52-wk Average

33.40

35.51

60.13

54.77

48.16

47.87

42.11

- Forward P/E

14

16

17

17

11

11

12

- Market Value of Equity

26,908

16,087

20,654

12,738

245,566

242,451

163,018

- 60-month Beta

1.41

1.27

1.16

1.23

1.19

0.52

1.59

BNY

Mellon

State St

North Trust

Citi

BoA

JPMC

Enterprise Value (V)

D/V (including Deposits)

100,843
73.32%

47,711
66.28%

106,277
80.57%

60,126
78.81%

1,331,141
81.55%

1,334,893
81.84%

988,162
83.50%

E/V

26.68%

33.72%

19.43%

21.19%

18.45%

18.16%

16.50%

Beta Debt

0.1

0.1

0.1

0.1

0.1

0.1

0.1

Beta Equity

1.41

1.27

1.16

1.23

1.19

0.52

1.59

Beta Assets

0.45

0.49

0.31

0.34

0.30

0.18

0.35

Common stock (9/30/06)

Beta calculations

Different Comparables

Avg Asset Beta (a)

BNY and Mellon

0.47

BNY and Mellon,value weighted

0.46

About the same. Use 0.46

All Banks (not preferred)

0.31

Very different

Calculation of Ka
Kf (30 year)

4.58%

Maket risk premium (MRP)

6.00%

Ka

7.36%

WACC (Less preferred alternative)

Tax Rate (t)

35.0%

Target D/V

70.0%

Kd

5.18%

WACC

6.09%

Value of Synergy calculations

Year-end

2007

2008

2009

2010

105

350

595

700

692

337

61

After Tax Cost Savings

68

228

387

455

Terminal Value

8652

450

219

40

Annual cost savings realized

One- time charges
Tax rate

35%

LT Growth Rate

2%

2006

Value Created:

Present Value of FCF

916

Present Value of TV

6512

Total

7428

Cost of Integration:
After tax Charges
Present Value of FCF

641

Value of Synergies

6787

Wachovia

Wells Fargo

Remarks

13,681

18,504

12,219

14,431

249

2,383

9,671

10,455

3,733

5,873

3,033

3,877

6,643

7,671

259,015

310,837

(2,724)

(3,871)

186,551

104,281

77,913

70,494

520,755

481,741

324,894

314,450

70,779

35,016

40,145

68,544

34,476

23,071

47,561

40,335

517,855

481,416

1,557

1,678

1.94

2.00

4.27

4.57

1,589

3,367

14%

20%

52%

53%

55.80

36.18

54.60

33.03

11

13

88,694

121,826

0.77

0.38

Wachovia

Wells Fargo

Remarks

524,512
83.09%

539,836
77.43%

Deposits+ST borrowings+LT debt+MV of equity

16.91%

22.57%

0.1

0.1

0.77

0.38

0.21

0.16

Assumed (closer to zero because deposits are insured by Govt hence almost riskfree)

a = d*[D/V] + e*[E/V]

30 year rate in December 2006 (from Exhibit 19)

Assumed
Ka = Kf + a*MRP

Assumed
Assumed, Midway between BNY and Mellon
Kd = Kf + d*MRP
WACC = Ka t*(D/V)*Kd

Remarks
Given Exhibit 13
Given Exhibit 13
Assumption

Annual cost savings * (1 - t)

FCF*(1+g) /(Ka - g)
Discounted @Ka
Discounted @Ka

One-time charges * (1 - t)
Discounted @Ka

Given:
PB =
PT =
NB =
NT =
EPSB =
EPST =
V =
CV =
t=
Xall-stock =
C$% (%age Cash Paid) =
Interest on cash (pre-tax) =KD =
Corporate tax, Tc =
Calculated:
%Ball-stock =
%Tall-stock =
PERB =
PERT =
VB =
VT =
VN =
C=
C$ (Value of Cash Paid) =
Xcash-N-stock =
%Bcash-N-stock =
%Tcash-N-stock =

40.05
35.48
412
752
0.65
0.64
7428
641
0
0.9434
40%
5.20%
38.00%

For All-Share deal

For Cash-and-Share Deal
Pre -tax cost

36.74%
63.26%
61.62
55.44
16500.60
26680.96
49968.56
28412.94 For All-Cash deal
11365.18 For Cash-and-Share Deal
0.5660 For Cash-and-Share Deal
49.18%
50.82%

Deal NPVbuyer =
Deal NPVseller =
Wealth Transfer (WT) =
Acquisition Premium (AP) =
Acquisition Premium per Target share (AP/share) =
Downside Protection (DP) =
No-premium Ratio (Xno-premium) =
Zero NPV Ratio (Xbreakeven) =
No Dilution Ratio (Xmax) =

= NB/(NB + Xall-stock *NT)

= (Xall-stock *NT) / (NB + Xall-stock *NT)
= PB / EPSB
= PT / EPST
= PB*NB
= PT*NT
= VB + VT + V - CV
= Xall-stock *PB*NT
= C$% *C
= [(C - C$)/NT]/PB
= NB/(NB + Xcash-N-stock *NT)
= (Xcash-N-stock *NT) / (NB + Xcash-N-stock *NT)

All-Share Deal
1857.14
4929.86
636.31
1731.98
2.30
-1005.84
0.8859
1.1112
0.9846

All-Cash Deal
5055.02
1731.98
1731.98
1731.98
2.30
Infinite
NA
NA
NA

Cash-and-Share Deal
2486.28
4300.72
851.87
1731.98
2.30
-1676.39
0.5085
0.7339
0.2350