EX-99.D 5 dex99d.htm THE FINANCIAL STATEMENTS The Financial Statements

Exhibit (99)(d)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(In millions, except per share data)


   September 30,
2008


    December 31,
2007


 

ASSETS

              

Cash and due from banks

   $ 22,233     15,124  

Interest-bearing bank balances

     2,287     3,057  

Federal funds sold and securities purchased under resale agreements

     9,900     15,449  
    


 

Total cash and cash equivalents

     34,420     33,630  
    


 

Trading account assets

     56,000     55,882  

Securities

     107,693     115,037  

Loans, net of unearned income

     482,373     461,954  

Allowance for loan losses

     (15,351 )   (4,507 )
    


 

Loans, net

     467,022     457,447  
    


 

Loans held for sale

     9,247     16,772  

Premises and equipment

     7,031     6,605  

Due from customers on acceptances

     664     1,418  

Goodwill

     18,353     43,122  

Other intangible assets

     1,858     2,119  

Other assets

     62,090     50,864  
    


 

Total assets

   $ 764,378     782,896  
    


 

LIABILITIES AND STOCKHOLDERS’ EQUITY

              

Deposits

              

Noninterest-bearing deposits

     55,752     60,893  

Interest-bearing deposits

     363,088     388,236  
    


 

Total deposits

     418,840     449,129  

Short-term borrowings

     67,867     50,393  

Bank acceptances outstanding

     673     1,424  

Trading account liabilities

     18,388     21,585  

Other liabilities

     22,274     19,151  

Long-term debt

     183,350     161,007  
    


 

Total liabilities

     711,392     702,689  
    


 

Minority interest in net assets of consolidated subsidiaries

     2,983     3,335  
    


 

STOCKHOLDERS’ EQUITY

              

Preferred stock, Class A, 40 million shares, no par value; 10 million shares, no par value; none issued

     —       —    

Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at September 30, 2008

     —       —    

Non-Cumulative Perpetual Class A Preferred Stock, Series I, $100,000 liquidation preference per share, 25,010 shares authorized

     —       —    

Non-Cumulative Perpetual Class A Preferred Stock, Series J, $1,000 liquidation preference per share, 92 million depositary shares issued and outstanding at September 30, 2008

     2,300     2,300  

Non-Cumulative Perpetual Class A Preferred Stock, Series K, $1,000 liquidation preference per share, 3.5 million shares issued and outstanding at September 30, 2008

     3,500     —    

Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L, $1,000 liquidation preference per share, 4.025 million shares issued and outstanding at September 30, 2008

     4,025     —    

Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 2.137 billion shares at September 30, 2008

     7,124     6,534  

Paid-in capital

     59,883     56,149  

Retained earnings (accumulated deficit)

     (22,465 )   13,456  

Accumulated other comprehensive income, net

     (4,364 )   (1,567 )
    


 

Total stockholders’ equity

     50,003     76,872  
    


 

Total liabilities and stockholders’ equity

   $ 764,378     782,896  
    


 


WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

     Three Months Ended
September 30,


    Nine Months Ended
September 30,

 

(In millions, except per share data)


   2008

    2007

    2008

    2007

 

INTEREST INCOME

                          

Interest and fees on loans

   $ 6,972     7,937     20,736     23,278  

Interest and dividends on securities

     1,521     1,529     4,547     4,481  

Trading account interest

     415     566     1,508     1,505  

Other interest income

     492     799     1,434     2,057  
    


 

 

 

Total interest income

     9,400     10,831     28,225     31,321  
    


 

 

 

INTEREST EXPENSE

                          

Interest on deposits

     2,231     3,334     7,348     9,528  

Interest on short-term borrowings

     389     801     1,330     2,176  

Interest on long-term debt

     1,789     2,145     5,514     6,117  
    


 

 

 

Total interest expense

     4,409     6,280     14,192     17,821  
    


 

 

 

Net interest income

     4,991     4,551     14,033     13,500  

Provision for credit losses

     6,629     408     15,027     764  
    


 

 

 

Net interest income (loss) after provision for credit losses

     (1,638 )   4,143     (994 )   12,736  
    


 

 

 

FEE AND OTHER INCOME

                          

Service charges

     717     689     2,102     1,970  

Other banking fees

     525     471     1,541     1,336  

Commissions

     799     600     2,623     1,908  

Fiduciary and asset management fees

     1,291     1,029     4,085     2,997  

Advisory, underwriting and other investment banking fees

     243     393     784     1,254  

Trading account profits (losses)

     (701 )   (301 )   (1,519 )   22  

Principal investing

     (310 )   372     272     718  

Securities gains (losses)

     (1,978 )   (34 )   (2,991 )   42  

Other income

     147     (286 )   (222 )   660  
    


 

 

 

Total fee and other income

     733     2,933     6,675     10,907  
    


 

 

 

NONINTEREST EXPENSE

                          

Salaries and employee benefits

     3,489     2,628     10,184     8,722  

Occupancy

     381     325     1,137     968  

Equipment

     325     283     965     899  

Marketing

     68     74     260     214  

Communications and supplies

     173     176     543     527  

Professional and consulting fees

     242     194     656     576  

Goodwill impairment

     18,786     —       24,846     —    

Other intangible amortization

     96     92     296     313  

Merger-related and restructuring expenses

     697     36     1,189     78  

Sundry expense

     1,288     717     3,694     1,739  
    


 

 

 

Total noninterest expense

     25,545     4,525     43,770     14,036  
    


 

 

 

Minority interest in income of consolidated subsidiaries

     (105 )   189     32     464  
    


 

 

 

Income (loss) from continuing operations before income taxes (benefits)

     (26,345 )   2,362     (38,121 )   9,143  

Income taxes (benefits)

     (2,647 )   656     (4,844 )   2,794  
    


 

 

 

Income (loss) from continuing operations

     (23,698 )   1,706     (33,277 )   6,349  

Discontinued operations, net of income taxes

     —       (88 )   —       (88 )
    


 

 

 

Net income (loss)

     (23,698 )   1,618     (33,277 )   6,261  

Dividends on preferred stock

     191     —       427     —    
    


 

 

 

Net income (loss) available to common stockholders

   $ (23,889 )   1,618     (33,704 )   6,261  
    


 

 

 

PER COMMON SHARE DATA (after preferred stock dividends)

                          

Basic earnings

                          

Income (loss) from continuing operations

   $ (11.18 )   0.91     (16.28 )   3.36  

Net income (loss) available to common stockholders

     (11.18 )   0.86     (16.28 )   3.31  

Diluted earnings

                          

Income (loss) from continuing operations

     (11.18 )   0.90     (16.28 )   3.31  

Net income (loss) available to common stockholders

     (11.18 )   0.85     (16.28 )   3.26  

Cash dividends

   $ 0.05     0.64     1.07     1.76  

AVERAGE COMMON SHARES

                          

Basic

     2,137     1,885     2,070     1,890  

Diluted

     2,143     1,910     2,080     1,918