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)


   June 30,
2008


    December 31,
2007


 

ASSETS

              

Cash and due from banks

   $ 15,127     15,124  

Interest-bearing bank balances

     10,289     3,057  

Federal funds sold and securities purchased under resale agreements

     21,923     15,449  
    


 

Total cash and cash equivalents

     47,339     33,630  
    


 

Trading account assets

     62,589     55,882  

Securities

     113,461     115,037  

Loans, net of unearned income

     488,198     461,954  

Allowance for loan losses

     (10,744 )   (4,507 )
    


 

Loans, net

     477,454     457,447  
    


 

Loans held for sale

     8,430     16,772  

Premises and equipment

     6,667     6,605  

Due from customers on acceptances

     1,302     1,418  

Goodwill

     36,993     43,122  

Other intangible assets

     1,942     2,119  

Other assets

     56,256     50,864  
    


 

Total assets

   $ 812,433     782,896  
    


 

LIABILITIES AND STOCKHOLDERS’ EQUITY

              

Deposits

              

Noninterest-bearing deposits

     63,393     60,893  

Interest-bearing deposits

     384,397     388,236  
    


 

Total deposits

     447,790     449,129  

Short-term borrowings

     55,448     50,393  

Bank acceptances outstanding

     1,307     1,424  

Trading account liabilities

     26,305     21,585  

Other liabilities

     18,656     19,151  

Long-term debt

     184,401     161,007  
    


 

Total liabilities

     733,907     702,689  
    


 

Minority interest in net assets of consolidated subsidiaries

     3,147     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 June 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 June 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 June 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 June 30, 2008

     4,025     —    

Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 2.136 billion shares at June 30, 2008

     7,121     6,534  

Paid-in capital

     59,797     56,149  

Retained earnings

     1,786     13,456  

Accumulated other comprehensive income, net

     (3,150 )   (1,567 )
    


 

Total stockholders’ equity

     75,379     76,872  
    


 

Total liabilities and stockholders’ equity

   $ 812,433     782,896  
    


 


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)


   2008

    2007

   2008

    2007

INTEREST INCOME

                       

Interest and fees on loans

   $ 6,187     7,723    13,764     15,341

Interest and dividends on securities

     1,530     1,474    3,026     2,952

Trading account interest

     522     506    1,093     939

Other interest income

     407     647    942     1,258
    


 
  

 

Total interest income

     8,646     10,350    18,825     20,490
    


 
  

 

INTEREST EXPENSE

                       

Interest on deposits

     2,176     3,180    5,117     6,194

Interest on short-term borrowings

     418     706    941     1,375

Interest on long-term debt

     1,762     2,015    3,725     3,972
    


 
  

 

Total interest expense

     4,356     5,901    9,783     11,541
    


 
  

 

Net interest income

     4,290     4,449    9,042     8,949

Provision for credit losses

     5,567     179    8,398     356
    


 
  

 

Net interest income after provision for credit losses

     (1,277 )   4,270    644     8,593
    


 
  

 

FEE AND OTHER INCOME

                       

Service charges

     709     667    1,385     1,281

Other banking fees

     518     449    1,016     865

Commissions

     910     649    1,824     1,308

Fiduciary and asset management fees

     1,355     1,015    2,794     1,968

Advisory, underwriting and other investment banking fees

     280     454    541     861

Trading account profits (losses)

     (510 )   195    (818 )   323

Principal investing

     136     298    582     346

Securities gains (losses)

     (808 )   23    (1,013 )   76

Other income

     575     490    (369 )   946
    


 
  

 

Total fee and other income

     3,165     4,240    5,942     7,974
    


 
  

 

NONINTEREST EXPENSE

                       

Salaries and employee benefits

     3,435     3,122    6,695     6,094

Occupancy

     377     331    756     643

Equipment

     317     309    640     616

Marketing

     95     78    192     140

Communications and supplies

     184     178    370     351

Professional and consulting fees

     218     205    414     382

Goodwill impairment

     6,060     —      6,060     —  

Other intangible amortization

     97     103    200     221

Merger-related and restructuring expenses

     251     32    492     42

Sundry expense

     1,250     532    1,906     1,022
    


 
  

 

Total noninterest expense

     12,284     4,890    17,725     9,511
    


 
  

 

Minority interest in income of consolidated subsidiaries

     97     139    252     275
    


 
  

 

Income (loss) before income taxes (benefits)

     (10,493 )   3,481    (11,391 )   6,781

Income taxes (benefits)

     (1,831 )   1,140    (2,065 )   2,138
    


 
  

 

Net income (loss)

     (8,662 )   2,341    (9,326 )   4,643

Dividends on preferred stock

     193     —      236     —  
    


 
  

 

Net income (loss) available to common stockholders

   $ (8,855 )   2,341    (9,562 )   4,643
    


 
  

 

PER COMMON SHARE DATA (after preferred stock dividends)

                       

Basic earnings

                       

Net income (loss) available to common stockholders

   $ (4.20 )   1.24    (4.69 )   2.45

Diluted earnings

                       

Net income (loss) available to common stockholders

     (4.20 )   1.22    (4.69 )   2.42

Cash dividends

   $ 0.38     0.56    1.02     1.12

AVERAGE COMMON SHARES

                       

Basic

     2,111     1,891    2,037     1,892

Diluted

     2,119     1,919    2,048     1,922