PNC Bancorp, Inc. Successor to First National Pennsylvania Corporation, et al. - Page 20

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          amortized pursuant to SFAS 91 for financial accounting purposes,            
          and that such costs and fees were currently reported as income or           
          deducted as expenses for Federal income tax purposes.                       
               Respondent calculated the adjustments in issue in the UFB              
          cases based solely on the balances in some of the UFB fee and               
          cost ledger accounts.  The fees and costs reflected in those                
          accounts were included in income and deducted by UFB on its Forms           
          1120 for the years received or incurred.  Respondent reduced the            
          adjustments so determined by an allowance for amortization, which           
          was calculated using a half-year convention and was based on an             
          estimated loan life of 3 years.  The amortization deduction                 
          permitted by respondent differs from the amortization taken into            
          account by UFB as a component of interest income in accordance              
          with SFAS 91.                                                               
               The costs at issue in the UFB cases include only costs                 
          incurred by UFSB with respect to the origination of consumer                
          loans and specifically include only standard costs paid by UFSB             
          to record security interests and standard costs paid to third               
          parties for property reports, credit reports, and appraisals.               
          Respondent made no adjustments with respect to other UFSB loan              
          categories, such as commercial loans and residential and                    
          commercial mortgage loans.  The costs at issue in the UFB cases             
          do not include any costs incurred in connection with UFSB's                 
          unsuccessful loan efforts (i.e., where a loan was not originated)           
          or any costs incurred following a loan's origination by UFSB.               
          The following table reflects the loan origination costs                     



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