PNC's foray into the highly competitive, fast-growing, ultrawealthy Washington, D.C., market elicited some sharp skepticism in 2005, with one analyst dismissing PNC's $652 million purchase of the ailing but historic Riggs Bank franchise as a "recipe for disaster."

But a year later, those charged with making D.C. work for Pennsylvania's largest bank remain encouraged by PNC Financial Services Group's performance in the nation's fifth-largest metropolitan area, despite little change in market share over the last 12 months and the expectation of a drop in total deposits when new city-by-city rankings are made available later this summer (it was No. 8 in 2005, holding just 2.47 percent of the metro area).

"We are very pleased with the results we have seen," said PNC Executive Vice President Joseph Rockey, who led the D.C. transition from Riggs to PNC.

PNC executives point to several signs of progress. After stripping out large denomination certificates of deposit held by Riggs for brokers and other institutions -- PNC intends to shed these so-called brokered deposits -- core consumer deposits rose 12 percent the last 7 ¹/₂ months of 2005. The bank also added 19,000 households as new customers and retained 98 percent of its blue-blood wealth management clients, successors to Riggs' once-storied place as D.C.'s largest financial institution and a "bank of presidents" that counted Abraham Lincoln and Dwight Eisenhower as clients. PNC contends that deposit growth this year is exceeding expectations and that it expects the D.C. operation to add profits to the larger company in 2006.

Without seeing all the numbers, "It is difficult for outsiders to see if things are going very, very well or they are going adequately or they are not going well at all," said Portland, Maine-based banking analyst Gerard Cassidy of RBC Capital Markets. But, "I think it is clear that things did not go badly, and they appear to be going well. The good news is there is no bad news."

PNC inherited a once-legendary franchise tarnished by $25 million in regulatory fines, allegations that it hid accounts for former Chilean dictator Augusto Pinochet while he was under house arrest, and accusations that it had turned a blind eye to money laundering and corruption involving U.S. oil officials and foreign authorities. Knowing that it had to reverse the bad publicity, quickly gain the loyalty of longtime customers and reach out to new ones, PNC launched a full-scale assault on D.C.

It converted all 51 Riggs branches to the PNC name in the first weekend of ownership last May, hired about 300 workers, opened four new branches in the district, expanded its banking hours, began rebating fees customers pay to use another bank's ATM, and initiated an aggressive marketing roll-out campaign that attached the PNC name to the Washington Nationals baseball team, an Andy Warhol exhibit at the Corcoran Gallery of Art, concerts and charity initiatives.

"People know who we are now, for sure," said D.C. market president Mike Harreld.

PNC also turned its attention to the explosive growth of D.C.'s suburbs, knowing it had to compete there to gain market share. Riggs was always strong inside the district but never gained a foothold in suburban Virginia or Maryland -- Virginia alone accounts for half of the metro area's 5 million people.

One part of that strategy could include an acquisition of another bank -- a move made more possible after the cash infusion that followed a blockbuster deal merging PNC-owned money manager Black Rock Inc. with Merrill Lynch. Another piece of the strategy is organic expansion -- PNC expects to add another 25 to 27 D.C.-area branches by 2007, most in the suburbs, and hire another 200 to 250 workers to run the spaces, which will feature coffee shops and Internet cafes.

But that suburban strategy could run into problems, according to Arnie Danielson, a veteran banking consultant based in the D.C. area who believes PNC may have to overpay if it wants to compete. After all, few U.S. markets are more competitive right now, with banks sometimes paying millions for the best sites in suburban D.C.

At one highly coveted spot in Maryland, there are 12 branches and four free-standing ATMs sharing space within 300 yards of each other, according to a recent account in the Washington Post. It noted that area banks added 341 branches between 2000 and 2005, or about one per week, making D.C. the fourth-highest saturated banking market in terms of branches per people.

Giants Wachovia Corp., Bank of America and SunTrust hold the top three spots in terms of D.C. market share, but a slew of smaller competitors are in the hunt, too, including Chevy Chase Bank and BB&T of North Carolina. Another new arrival is New Jersey's Commerce Bank, which promises to flood the area with hundreds of branches in the coming years.

It was Mr. Danielson who called the Riggs deal a "recipe for disaster" last year, citing the bank's weak position in a highly competitive market. He stands by his assessment a year later, arguing the PNC is gaining little traction despite its marketing efforts and growth strategy.

"The general feeling here is, 'Who is PNC?' " Mr. Danielson said. "They are such a small player in such a big market with such powerful people. When people talk about commerce, no one talks about PNC."