EX-99.(C) 4 dex99c.htm THE FINANCIAL STATEMENTS The Financial Statements

Exhibit (99)(c)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

 

     June 30,     December 31,  

(In millions, except per share data)

   2006     2005  
ASSETS     

Cash and due from banks

   $ 12,761     15,072  

Interest-bearing bank balances

     2,244     2,638  

Federal funds sold and securities purchased under resale agreements (carrying amount of collateral held $11,657 at June 30, 2006, $3,341 repledged)

     17,223     19,915  
              

Total cash and cash equivalents

     32,228     37,625  
              

Trading account assets

     46,552     42,704  

Securities

     120,453     114,889  

Loans, net of unearned income

     282,916     259,015  

Allowance for loan losses

     (3,021 )   (2,724 )
              

Loans, net

     279,895     256,291  
              

Loans held for sale

     7,750     6,405  

Premises and equipment

     5,322     4,910  

Due from customers on acceptances

     1,010     824  

Goodwill

     23,550     21,807  

Other intangible assets

     1,435     1,208  

Other assets

     35,419     34,092  
              

Total assets

   $ 553,614     520,755  
              
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Deposits

    

Noninterest-bearing deposits

     66,388     67,487  

Interest-bearing deposits

     261,226     257,407  
              

Total deposits

     327,614     324,894  

Short-term borrowings

     62,787     61,953  

Bank acceptances outstanding

     1,021     892  

Trading account liabilities

     18,409     17,598  

Other liabilities

     17,305     15,986  

Long-term debt

     74,627     48,971  
              

Total liabilities

     501,763     470,294  
              

Minority interest in net assets of consolidated subsidiaries

     2,979     2,900  
              
STOCKHOLDERS’ EQUITY     

Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2006

     —       —    

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

     —       —    

Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.589 billion shares at June 30, 2006

     5,298     5,189  

Paid-in capital

     34,086     31,172  

Retained earnings

     12,003     11,973  

Accumulated other comprehensive income, net

     (2,515 )   (773 )
              

Total stockholders’ equity

     48,872     47,561  
              

Total liabilities and stockholders’ equity

   $ 553,614     520,755  
              


WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

    

Three Months Ended

June 30,

  

Six Months Ended

June 30,

(In millions, except per share data)

   2006    2005    2006     2005
INTEREST INCOME           

Interest and fees on loans

   $ 4,823    3,362    9,144     6,536

Interest and dividends on securities

     1,685    1,437    3,250     2,863

Trading account interest

     387    354    712     732

Other interest income

     509    549    1,005     1,024
                      

Total interest income

     7,404    5,702    14,111     11,155
                      
INTEREST EXPENSE           

Interest on deposits

     2,035    1,221    3,814     2,271

Interest on short-term borrowings

     755    670    1,473     1,271

Interest on long-term debt

     973    453    1,693     842
                      

Total interest expense

     3,763    2,344    6,980     4,384
                      

Net interest income

     3,641    3,358    7,131     6,771

Provision for credit losses

     59    50    120     86
                      

Net interest income after provision for credit losses

     3,582    3,308    7,011     6,685
                      
FEE AND OTHER INCOME           

Service charges

     622    528    1,196     1,041

Other banking fees

     449    355    877     706

Commissions (a)

     588    585    1,211     1,172

Fiduciary and asset management fees (a)

     808    746    1,569     1,472

Advisory, underwriting and other investment banking fees

     318    257    620     490

Trading account profits (a)

     164    49    383     157

Principal investing

     189    41    292     100

Securities gains (losses)

     25    136    (23 )   134

Other income (a)

     420    280    975     700
                      

Total fee and other income

     3,583    2,977    7,100     5,972
                      
NONINTEREST EXPENSE           

Salaries and employee benefits

     2,652    2,324    5,349     4,725

Occupancy

     291    271    566     521

Equipment

     299    269    579     534

Advertising

     56    48    103     92

Communications and supplies

     162    158    329     320

Professional and consulting fees

     184    155    351     282

Other intangible amortization

     98    107    190     222

Merger-related and restructuring expenses

     24    90    92     151

Sundry expense

     495    366    941     813
                      

Total noninterest expense

     4,261    3,788    8,500     7,660
                      

Minority interest in income of consolidated subsidiaries

     90    71    185     135
                      

Income before income taxes

     2,814    2,426    5,426     4,862

Income taxes

     929    776    1,813     1,591
                      

Net income

   $ 1,885    1,650    3,613     3,271
                      
PER COMMON SHARE DATA           

Basic earnings

   $ 1.19    1.05    2.30     2.09

Diluted earnings

     1.17    1.04    2.26     2.05

Cash dividends

   $ 0.51    0.46    1.02     0.92
AVERAGE COMMON SHARES           

Basic

     1,585    1,564    1,570     1,567

Diluted

     1,613    1,591    1,599     1,597

(a) Amounts presented in 2005 have been reclassified to conform to the presentation in 2006.