 |  |  |  |  |  |  |  |  |
|
/FIRST ADD -- CLM055 -- Wachovia Corporation Earnings/ PAGE 9
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL TABLES
TABLE OF CONTENTS PAGE
Financial Highlights - Five Quarters Ended March 31, 2008 10
Other Financial Data - Five Quarters Ended March 31, 2008 11
Consolidated Statements of Income
- Five Quarters Ended March 31, 2008 12
Business Segments
- Three Months Ended March 31, 2008 and December 31, 2007 13
Business Segments - Three Months Ended March 31, 2007 14
Loans - On-Balance Sheet, and Managed and Servicing Portfolios
- Five Quarters Ended March 31, 2008 15
Allowance for Credit Losses
- Five Quarters Ended March 31, 2008 16
Nonperforming Assets
- Five Quarters Ended March 31, 2008 17
Consolidated Balance Sheets - Five Quarters Ended March 31,
2008 18
Net Interest Income Summaries
- Five Quarters Ended March 31, 2008 19 - 20
Reconciliation of Certain Non-GAAP Financial Measures
- Five Quarters Ended March 31, 2008 21 - 22
PAGE 10
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
2008 2007
(Dollars in millions, First Fourth Third
except per share data) Quarter Quarter Quarter
EARNINGS SUMMARY
Net interest income (GAAP) $4,752 4,630 4,551
Tax-equivalent adjustment 53 44 33
Net interest income
(Tax-equivalent) 4,805 4,674 4,584
Fee and other income 3,091 2,744 2,933
Total revenue (Tax-equivalent) 7,896 7,418 7,517
Provision for credit losses 2,831 1,497 408
Other noninterest expense 5,097 5,488 4,397
Merger-related and restructuring
expenses 241 187 36
Other intangible amortization 103 111 92
Total noninterest expense 5,441 5,786 4,525
Minority interest in income
of consolidated subsidiaries 155 107 189
Income (loss) from continuing
operations before income taxes
(benefits) (Tax-equivalent) (531) 28 2,395
Income taxes (benefits) (234) (209) 656
Tax-equivalent adjustment 53 44 33
Income (loss) from continuing
operations (350) 193 1,706
Discontinued operations, net of
income taxes - (142) (88)
Net income (loss) (350) 51 1,618
Dividends on preferred stock 43 - -
Net income (loss) available
to common stockholders $(393) 51 1,618
Diluted earnings per common
share (a) $(0.20) 0.03 0.85
Return on average common
stockholders' equity (2.11)% 0.28 9.19
Return on average assets (0.18) 0.03 0.88
Overhead efficiency ratio 68.91% 78.00 60.20
Operating leverage $823 (1,359) (847)
ASSET QUALITY
Allowance for loan losses as %
of loans, net 1.37% 0.98 0.78
Allowance for loan losses as %
of nonperforming assets 78 84 115
Allowance for credit losses as %
of loans, net 1.41 1.02 0.82
Net charge-offs as % of average
loans, net 0.66 0.41 0.19
Nonperforming assets as % of
loans, net, foreclosed properties
and loans held for sale 1.70% 1.14 0.66
CAPITAL ADEQUACY (b)
Tier I capital ratio 7.5% 7.4 7.1
Total capital ratio 12.1 11.8 10.8
Leverage ratio 6.2% 6.1 6.1
OTHER DATA
Average basic common shares
(In millions) 1,963 1,959 1,885
Average diluted common shares
(In millions) 1,977 1,983 1,910
Actual common shares
(In millions) (c) 1,992 1,980 1,901
Dividends paid per common share $0.64 0.64 0.64
Dividend payout ratio on
common shares (320.00)% 2,133.33 75.29
Book value per common share (c) $36.40 37.66 36.90
Common stock price 27.00 38.03 50.15
Market capitalization (c) $53,782 75,302 95,326
Common stock price to book
value (c) 74% 101 136
FTE employees 120,378 121,890 109,724
Total financial centers/
brokerage offices 4,850 4,894 4,167
ATMs 5,308 5,139 5,123
(a) Calculated using average basic common shares in the first quarter of
2008.
(b) The first quarter of 2008 is based on estimates.
(c) Includes restricted stock for which the holder receives dividends and
has full voting rights.
PAGE 10
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
2007
(Dollars in millions, Second First
except per share data) Quarter Quarter
EARNINGS SUMMARY
Net interest income (GAAP) $4,449 4,500
Tax-equivalent adjustment 38 37
Net interest income
(Tax-equivalent) 4,487 4,537
Fee and other income 4,240 3,734
Total revenue (Tax-equivalent) 8,727 8,271
Provision for credit losses 179 177
Other noninterest expense 4,755 4,493
Merger-related and restructuring
expenses 32 10
Other intangible amortization 103 118
Total noninterest expense 4,890 4,621
Minority interest in income
of consolidated subsidiaries 139 136
Income (loss) from continuing
operations before income taxes
(benefits) (Tax-equivalent) 3,519 3,337
Income taxes (benefits) 1,140 998
Tax-equivalent adjustment 38 37
Income (loss) from continuing
operations 2,341 2,302
Discontinued operations, net of
income taxes - -
Net income (loss) 2,341 2,302
Dividends on preferred stock - -
Net income (loss) available
to common stockholders $2,341 2,302
Diluted earnings per common
share (a) $1.22 1.20
Return on average common
stockholders' equity 13.54% 13.47
Return on average assets 1.33 1.35
Overhead efficiency ratio 56.02% 55.88
Operating leverage $189 (13)
ASSET QUALITY
Allowance for loan losses as %
of loans, net 0.79% 0.80
Allowance for loan losses as %
of nonperforming assets 157 189
Allowance for credit losses as
% of loans, net 0.83 0.84
Net charge-offs as %
of average loans, net 0.14 0.15
Nonperforming assets as % of
loans, net, foreclosed properties
and loans held for sale 0.49% 0.42
CAPITAL ADEQUACY (b)
Tier I capital ratio 7.5% 7.4
Total capital ratio 11.5 11.4
Leverage ratio 6.2% 6.1
OTHER DATA
Average basic common shares
(In millions) 1,891 1,894
Average diluted common shares
(In millions) 1,919 1,925
Actual common shares
(In millions) (c) 1,903 1,913
Dividends paid per common share $0.56 0.56
Dividend payout ratio on
common shares 45.90% 46.67
Book value per common share (c) $36.40 36.47
Common stock price 51.25 55.05
Market capitalization (c) $97,530 105,330
Common stock price to book value (c) 141% 151
FTE employees 110,493 110,369
Total financial centers/
brokerage offices 4,135 4,167
ATMs 5,099 5,146
(a) Calculated using average basic common shares in the first quarter of
2008.
(b) The first quarter of 2008 is based on estimates.
(c) Includes restricted stock for which the holder receives dividends
and has full voting rights.
PAGE 11
WACHOVIA CORPORATION AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Unaudited)
2008 2007
First Fourth Third
(In millions) Quarter Quarter Quarter
EARNINGS EXCLUDING MERGER-
RELATED AND RESTRUCTURING
EXPENSES, AND DISCONTINUED
OPERATIONS (a) (b)
Return on average common
stockholders' equity (1.45)% 1.62 9.81
Return on average assets (0.12) 0.16 0.94
Overhead efficiency ratio 65.85 75.48 59.73
Overhead efficiency ratio
excluding brokerage 61.92% 74.54 56.82
Operating leverage $877 (1,208) (843)
EARNINGS EXCLUDING MERGER-
RELATED AND RESTRUCTURING
EXPENSES, OTHER INTANGIBLE
AMORTIZATION AND DISCONTINUED
OPERATIONS (a) (b) (c)
Dividend payout ratio on common
shares (640.00)% 355.56 68.09
Return on average tangible
common stockholders' equity (2.80) 5.05 23.88
Return on average tangible
assets (0.09) 0.20 1.03
Overhead efficiency ratio 64.55 73.97 58.51
Overhead efficiency ratio
excluding brokerage 60.14% 72.40 55.32
Operating leverage $869 (1,187) (855)
OTHER FINANCIAL DATA
Net interest margin 2.92% 2.88 2.92
Fee and other income
as % of total revenue 39.15 36.99 39.02
Effective income tax rate (d) 40.04 122.05 27.33
Effective tax rate (Tax-
equivalent) (d) (e) 34.06% 127.17 28.38
AVERAGE BALANCE SHEET DATA
Commercial loans, net $198,578 188,164 174,672
Consumer loans, net 267,358 261,641 255,129
Loans, net 465,936 449,805 429,801
Earning assets 659,033 650,140 628,773
Total assets 783,593 763,487 729,004
Core deposits 394,513 390,043 379,009
Total deposits 443,353 437,566 416,107
Interest-bearing liabilities 611,099 599,130 574,399
Stockholders' equity $78,747 73,986 69,857
PERIOD-END BALANCE SHEET DATA
Commercial loans, net $211,700 198,566 189,545
Consumer loans, net 268,782 263,388 259,661
Loans, net 480,482 461,954 449,206
Goodwill and other intangible
assets
Goodwill 43,068 43,122 38,848
Deposit base 573 619 670
Customer relationships 1,375 1,410 620
Tradename 90 90 90
Total assets 808,890 782,896 754,168
Core deposits 398,562 397,405 377,865
Total deposits 444,964 449,129 421,937
Stockholders' equity $78,307 76,872 70,140
(a) These financial measures are calculated by excluding from GAAP net
income (loss) presented on page 10, $123 million, $108 million, $22
million, $20 million and $6 million in the first quarter of 2008, and
in the fourth, third, second and first quarters of 2007,
respectively, of after-tax net merger-related and restructuring
expenses and $142 million and $88 million after tax in the fourth and
third quarters of 2007, respectively, of discontinued operations.
(b) See page 10 for the most directly comparable GAAP financial measure
and pages 21 and 22 for a more detailed reconciliation.
(c) These financial measures are calculated by excluding from GAAP net
income (loss) presented on page 10, $64 million, $65 million, $59
million, $66 million and $76 million in the first quarter of 2008,
and in the fourth, third, second and first quarters of 2007,
respectively, of deposit base and other intangible amortization.
(d) The fourth and third quarters of 2007 includes taxes on discontinued
operations.
(e) The tax-equivalent tax rate applies to fully tax-equivalized
revenues.
PAGE 11
WACHOVIA CORPORATION AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Unaudited)
2007
Second First
(In millions) Quarter Quarter
EARNINGS EXCLUDING MERGER-
RELATED AND RESTRUCTURING
EXPENSES, AND DISCONTINUED
OPERATIONS (a) (b)
Return on average common
stockholders' equity 13.66% 13.50
Return on average assets 1.34 1.35
Overhead efficiency ratio 55.65 55.75
Overhead efficiency ratio
excluding brokerage 52.04% 52.60
Operating leverage $210 (51)
EARNINGS EXCLUDING MERGER-RELATED
AND RESTRUCTURING EXPENSES, OTHER
INTANGIBLE AMORTIZATION AND
DISCONTINUED OPERATIONS (a) (b) (c)
Dividend payout ratio on common
shares 44.09% 45.16
Return on average tangible common
stockholders' equity 33.57 33.27
Return on average tangible assets 1.47 1.49
Overhead efficiency ratio 54.47 54.33
Overhead efficiency ratio excluding
brokerage 50.61% 50.88
Operating leverage $197 (75)
OTHER FINANCIAL DATA
Net interest margin 2.96% 3.06
Fee and other income as % of
total revenue 48.58 45.15
Effective income tax rate (d) 32.78 30.22
Effective tax rate
(Tax-equivalent) (d) (e) 33.51% 30.99
AVERAGE BALANCE SHEET DATA
Commercial loans, net $165,512 157,288
Consumer loans, net 255,745 257,973
Loans, net 421,257 415,261
Earning assets 605,978 593,663
Total assets 704,773 691,029
Core deposits 378,496 369,270
Total deposits 408,418 399,106
Interest-bearing liabilities 547,669 535,778
Stockholders' equity $69,317 69,320
PERIOD-END BALANCE SHEET DATA
Commercial loans, net $175,369 167,039
Consumer loans, net 253,751 254,624
Loans, net 429,120 421,663
Goodwill and other intangible assets
Goodwill 38,766 38,838
Deposit base 727 796
Customer relationships 651 684
Tradename 90 90
Total assets 715,428 702,669
Core deposits 378,188 377,358
Total deposits 410,030 405,270
Stockholders' equity $69,266 69,786
(a) These financial measures are calculated by excluding from GAAP net
income (loss) presented on page 10, $123 million, $108 million, $22
million, $20 million and $6 million in the first quarter of 2008, and
in the fourth, third, second and first quarters of 2007,
respectively, of after-tax net merger-related and restructuring
expenses and $142 million and $88 million after tax in the fourth and
third quarters of 2007, respectively, of discontinued operations .
(b) See page 10 for the most directly comparable GAAP financial measure
and pages 21 and 22 for a more detailed reconciliation.
(c) These financial measures are calculated by excluding from GAAP net
income (loss) presented on page 10, $64 million, $65 million, $59
million, $66 million and $76 million in the first quarter of 2008,
and in the fourth, third, second and first quarters of 2007,
respectively, of deposit base and other intangible amortization.
(d) The fourth and third quarters of 2007 includes taxes on discontinued
operations.
(e) The tax-equivalent tax rate applies to fully tax-equivalized
revenues.
PAGE 12
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
2008 2007
(In millions, First Fourth Third
except per share data) Quarter Quarter Quarter
INTEREST INCOME
Interest and fees on loans $7,577 7,980 7,937
Interest and dividends on
securities 1,496 1,616 1,529
Trading account interest 571 557 566
Other interest income 535 757 799
Total interest income 10,179 10,910 10,831
INTEREST EXPENSE
Interest on deposits 2,941 3,433 3,334
Interest on short-term borrowings 523 673 801
Interest on long-term debt 1,963 2,174 2,145
Total interest expense 5,427 6,280 6,280
Net interest income 4,752 4,630 4,551
Provision for credit losses 2,831 1,497 408
Net interest income after
provision for credit losses 1,921 3,133 4,143
FEE AND OTHER INCOME
Service charges 676 716 689
Other banking fees 498 497 471
Commissions 914 970 600
Fiduciary and asset management
fees 1,439 1,436 1,029
Advisory, underwriting and other
investment banking fees 261 249 393
Trading account profits (losses) (308) (524) (301)
Principal investing 446 41 372
Securities gains (losses) (205) (320) (34)
Other income (630) (321) (286)
Total fee and other income 3,091 2,744 2,933
NONINTEREST EXPENSE
Salaries and employee benefits 3,260 3,468 2,628
Occupancy 379 375 325
Equipment 323 334 283
Marketing 97 80 74
Communications and supplies 186 191 176
Professional and consulting fees 196 271 194
Other intangible amortization 103 111 92
Merger-related and restructuring
expenses 241 187 36
Sundry expense 656 769 717
Total noninterest expense 5,441 5,786 4,525
Minority interest in income of
consolidated subsidiaries 155 107 189
Income (loss) from continuing
operations before income taxes
(benefits) (584) (16) 2,362
Income taxes (benefits) (234) (209) 656
Income (loss) from continuing
operations (350) 193 1,706
Discontinued operations,
net of income taxes - (142) (88)
Net income (loss) (350) 51 1,618
Dividends on preferred stock 43 - -
Net income (loss) available to
common stockholders $(393) 51 1,618
PER COMMON SHARE DATA
(after preferred stock dividends)
Basic earnings
Income (loss) from continuing
operations $(0.20) 0.10 0.91
Net income (loss) available
to common stockholders (0.20) 0.03 0.86
Diluted earnings (a)
Income (loss) from continuing
operations (0.20) 0.10 0.90
Net income (loss) available
to common stockholders (0.20) 0.03 0.85
Cash dividends $0.64 0.64 0.64
AVERAGE COMMON SHARES
Basic 1,963 1,959 1,885
Diluted 1,977 1,983 1,910
(a) Calculated using average basic common shares in the first quarter of
2008
PAGE 12
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
2007
(In millions, Second First
except per share data) Quarter Quarter
INTEREST INCOME
Interest and fees on loans $7,723 7,618
Interest and dividends on
securities 1,474 1,478
Trading account interest 506 433
Other interest income 647 611
Total interest income 10,350 10,140
INTEREST EXPENSE
Interest on deposits 3,180 3,014
Interest on short-term
borrowings 706 669
Interest on long-term debt 2,015 1,957
Total interest expense 5,901 5,640
Net interest income 4,449 4,500
Provision for credit losses 179 177
Net interest income after
provision for credit losses 4,270 4,323
FEE AND OTHER INCOME
Service charges 667 614
Other banking fees 449 416
Commissions 649 659
Fiduciary and asset management fees 1,015 953
Advisory, underwriting and
other investment banking fees 454 407
Trading account profits (losses) 195 128
Principal investing 298 48
Securities gains (losses) 23 53
Other income 490 456
Total fee and other income 4,240 3,734
NONINTEREST EXPENSE
Salaries and employee benefits 3,122 2,972
Occupancy 331 312
Equipment 309 307
Marketing 78 62
Communications and supplies 178 173
Professional and consulting fees 205 177
Other intangible amortization 103 118
Merger-related and restructuring
expenses 32 10
Sundry expense 532 490
Total noninterest expense 4,890 4,621
Minority interest in income
of consolidated subsidiaries 139 136
Income (loss) from continuing
operations before income taxes
(benefits) 3,481 3,300
Income taxes (benefits) 1,140 998
Income (loss) from continuing
operations 2,341 2,302
Discontinued operations,
net of income taxes - -
Net income (loss) 2,341 2,302
Dividends on preferred stock - -
Net income (loss) available to
common stockholders $2,341 2,302
PER COMMON SHARE DATA
(after preferred stock dividends)
Basic earnings
Income (loss) from continuing
operations $1.24 1.22
Net income (loss) available
to common stockholders 1.24 1.22
Diluted earnings (a)
Income (loss) from
continuing operations 1.22 1.20
Net income (loss) available
to common stockholders 1.22 1.20
Cash dividends $0.56 0.56
AVERAGE COMMON SHARES
Basic 1,891 1,894
Diluted 1,919 1,925
(a) Calculated using average basic common shares in the first quarter of
2008
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2008
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,455 181 1,032
Fee and other income 990 211 (159)
Intersegment revenue 55 5 (50)
Total revenue (a) 4,500 397 823
Provision for credit losses 569 5 197
Noninterest expense 2,050 246 747
Minority interest - - -
Income taxes (benefits) 675 54 (65)
Tax-equivalent adjustment 11 - 21
Net income (loss) 1,195 92 (77)
Dividends on preferred stock - - -
Net income (loss) available
to common stockholders $1,195 92 (77)
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2008
Capital
Management Parent
(In millions)
CONSOLIDATED
Net interest income (a) $274 (137)
Fee and other income 2,191 (142)
Intersegment revenue (10) -
Total revenue (a) 2,455 (279)
Provision for credit losses - 2,060
Noninterest expense 1,855 302
Minority interest - 198
Income taxes (benefits) 218 (1,041)
Tax-equivalent adjustment 1 20
Net income (loss) 381 (1,818)
Dividends on preferred stock - 43
Net income (loss) available
to common stockholders $381 (1,861)
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2008
Net Merger-
Related and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(53) 4,752
Fee and other income - 3,091
Intersegment revenue - -
Total revenue (a) (53) 7,843
Provision for credit losses - 2,831
Noninterest expense 241 5,441
Minority interest (43) 155
Income taxes (benefits) (75) (234)
Tax-equivalent adjustment (53) -
Net income (loss) (123) (350)
Dividends on preferred stock - 43
Net income (loss) available
to common stockholders $(123) (393)
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2007
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,402 183 988
Fee and other income 929 214 (555)
Intersegment revenue 58 3 (50)
Total revenue (a) 4,389 400 383
Provision for credit losses 320 7 112
Noninterest expense 2,041 249 952
Minority interest - - -
Income taxes (benefits) 730 53 (269)
Tax-equivalent adjustment 11 - 19
Income (loss) from continuing
operations 1,287 91 (431)
Discontinued operations,
net of income taxes - - -
Net income (loss) $1,287 91 (431)
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2007
Capital
Management Parent
(In millions)
CONSOLIDATED
Net interest income (a) $318 (217)
Fee and other income 2,211 (55)
Intersegment revenue (11) -
Total revenue (a) 2,518 (272)
Provision for credit losses - 1,058
Noninterest expense 1,938 419
Minority interest - 118
Income taxes (benefits) 211 (866)
Tax-equivalent adjustment 1 13
Income (loss) from continuing
operations 368 (1,014)
Discontinued operations,
net of income taxes - (142)
Net income (loss) $368 (1,156)
PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2007
Net Merger-
Related and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(44) 4,630
Fee and other income - 2,744
Intersegment revenue - -
Total revenue (a) (44) 7,374
Provision for credit losses - 1,497
Noninterest expense 187 5,786
Minority interest (11) 107
Income taxes (benefits) (68) (209)
Tax-equivalent adjustment (44) -
Income (loss) from continuing
operations (108) 193
Discontinued operations,
net of income taxes - (142)
Net income (loss) $(108) 51
PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2007
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,398 181 716
Fee and other income 845 196 1,109
Intersegment revenue 47 3 (43)
Total revenue (a) 4,290 380 1,782
Provision for credit losses 147 1 6
Noninterest expense 1,869 247 911
Minority interest - - -
Income taxes (benefits) 819 48 305
Tax-equivalent adjustment 11 - 10
Net income (loss) $1,444 84 550
PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2007
Capital
(In millions) Management Parent
CONSOLIDATED
Net interest income (a) $259 (17)
Fee and other income 1,477 107
Intersegment revenue (8) 1
Total revenue (a) 1,728 91
Provision for credit losses - 23
Noninterest expense 1,237 347
Minority interest - 136
Income taxes (benefits) 179 (349)
Tax-equivalent adjustment - 16
Net income (loss) $312 (82)
PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended March 31, 2007
Net Merger-
Related and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(37) 4,500
Fee and other income - 3,734
Intersegment revenue - -
Total revenue (a) (37) 8,234
Provision for credit losses - 177
Noninterest expense 10 4,621
Minority interest - 136
Income taxes (benefits) (4) 998
Tax-equivalent adjustment (37) -
Net income (loss) $(6) 2,302
(a) Tax-equivalent.
(b) The tax-equivalent amounts are eliminated herein in order for "Total"
amounts to agree with amounts appearing in the Consolidated
Statements of Income.
PAGE 15
WACHOVIA CORPORATION AND SUBSIDIARIES
LOANS - ON-BALANCE SHEET, AND
MANAGED AND SERVICING PORTFOLIOS
(Unaudited)
2008 2007
First Fourth Third
(In millions) Quarter Quarter Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and
agricultural $119,193 112,509 109,269
Real estate - construction and
other 18,597 18,543 18,167
Real estate - mortgage 26,370 23,846 21,514
Lease financing 23,637 23,913 23,966
Foreign 33,616 29,540 26,471
Total commercial 221,413 208,351 199,387
CONSUMER
Real estate secured 230,197 227,719 225,355
Student loans 9,324 8,149 7,742
Installment loans 27,437 25,635 24,763
Total consumer 266,958 261,503 257,860
Total loans 488,371 469,854 457,247
Unearned income (7,889) (7,900) (8,041)
Loans, net (On-balance
sheet) $480,482 461,954 449,206
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio $221,413 208,351 199,387
Securitized loans - off-balance
sheet 120 131 142
Loans held for sale 3,342 9,414 13,905
Total commercial 224,875 217,896 213,434
CONSUMER
Real estate secured
On-balance sheet loan
portfolio 230,197 227,719 225,355
Securitized loans -
off-balance sheet 6,845 7,230 7,625
Securitized loans included
in securities 11,683 10,755 5,963
Loans held for sale 5,960 4,816 3,583
Total real estate secured 254,685 250,520 242,526
Student
On-balance sheet loan portfolio 9,324 8,149 7,742
Securitized loans -
off-balance sheet 2,586 2,811 2,856
Securitized loans included
in securities 52 52 52
Loans held for sale - - 1,968
Total student 11,962 11,012 12,618
Installment
On-balance sheet loan
portfolio 27,437 25,635 24,763
Securitized loans -
off-balance sheet 1,968 2,263 2,572
Securitized loans included
in securities 39 47 55
Loans held for sale 2,127 2,542 1,975
Total installment 31,571 30,487 29,365
Total consumer 298,218 292,019 284,509
Total managed portfolio $523,093 509,915 497,943
SERVICING PORTFOLIO (b)
Commercial $354,624 353,464 337,721
Consumer $27,415 27,967 28,474
(a) The managed portfolio includes the on-balance sheet loan portfolio,
loans securitized for which the retained interests are classified in
securities on-balance sheet, loans held for sale on-balance sheet and
the off-balance sheet portfolio of securitized loans sold, where we
service the loans.
(b) The servicing portfolio consists of third party commercial and
consumer loans for which our sole function is that of servicing the
loans for the third parties.
PAGE 15
WACHOVIA CORPORATION AND SUBSIDIARIES
LOANS - ON-BALANCE SHEET, AND
MANAGED AND SERVICING PORTFOLIOS
(Unaudited)
2007
Second First
(In millions) Quarter Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and
agricultural $102,397 99,687
Real estate - construction
and other 17,449 16,965
Real estate - mortgage 20,448 20,130
Lease financing 24,083 24,053
Foreign 20,959 16,240
Total commercial 185,336 177,075
CONSUMER
Real estate secured 220,293 220,682
Student loans 6,757 8,479
Installment loans 25,017 23,665
Total consumer 252,067 252,826
Total loans 437,403 429,901
Unearned income (8,283) (8,238)
Loans, net (On-balance
sheet) $429,120 421,663
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio $185,336 177,075
Securitized loans -
off-balance sheet 170 181
Loans held for sale 11,573 10,467
Total commercial 197,079 187,723
CONSUMER
Real estate secured
On-balance sheet loan
portfolio 220,293 220,682
Securitized loans -
off-balance sheet 8,112 6,595
Securitized loans included
in securities 6,091 5,629
Loans held for sale 4,079 4,089
Total real estate secured 238,575 236,995
Student
On-balance sheet loan
portfolio 6,757 8,479
Securitized loans -
off-balance sheet 2,905 3,045
Securitized loans included
in securities 52 52
Loans held for sale 2,046 -
Total student 11,760 11,576
Installment
On-balance sheet loan
portfolio 25,017 23,665
Securitized loans -
off-balance sheet 3,105 2,851
Securitized loans included
in securities 116 126
Loans held for sale 35 476
Total installment 28,273 27,118
Total consumer 278,608 275,689
Total managed portfolio $475,687 463,412
SERVICING PORTFOLIO (b)
Commercial $298,374 271,038
Consumer $26,789 25,952
(a) The managed portfolio includes the on-balance sheet loan portfolio,
loans securitized for which the retained interests are classified in
securities on-balance sheet, loans held for sale on-balance sheet and
the off-balance sheet portfolio of securitized loans sold, where we
service the loans.
(b) The servicing portfolio consists of third party commercial and
consumer loans for which our sole function is that of servicing the
loans for the third parties.
PAGE 16
WACHOVIA CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
2008 2007
First Fourth Third
(In millions) Quarter Quarter Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period $4,717 3,691 3,552
Provision for credit losses 2,834 1,467 381
Provision for credit losses
relating to loans transferred
to loans held for sale or sold 7 6 3
Provision for credit losses for
unfunded lending commitments (10) 24 24
LOAN LOSSES
Commercial, financial and
agricultural (171) (67) (41)
Commercial real estate -
construction and mortgage (81) (117) (5)
Total commercial (252) (184) (46)
Real estate secured (351) (156) (59)
Student loans (3) (4) (5)
Installment and other loans (b) (242) (225) (168)
Total consumer (596) (385) (232)
Total loan losses (848) (569) (278)
LOAN RECOVERIES
Commercial, financial and
agricultural 14 22 9
Commercial real estate -
construction and mortgage 1 - 3
Total commercial 15 22 12
Real estate secured 10 9 12
Student loans 1 2 3
Installment and other loans (b) 57 75 45
Total consumer 68 86 60
Total loan recoveries 83 108 72
Net charge-offs (765) (461) (206)
Allowance relating to loans
acquired, transferred to
loans held for sale or sold (16) (10) (63)
Balance, end of period $6,767 4,717 3,691
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses $6,567 4,507 3,505
Reserve for unfunded lending
commitments 200 210 186
Total allowance for credit
losses $6,767 4,717 3,691
ALLOWANCE FOR LOAN LOSSES
as % of loans, net 1.37% 0.98 0.78
as % of nonaccrual and
restructured loans (c) 84 90 129
as % of nonperforming assets (c) 78 84 115
ALLOWANCE FOR CREDIT LOSSES
as % of loans, net 1.41% 1.02 0.82
NET CHARGE-OFFS AS % OF
AVERAGE LOANS, NET (d)
Commercial, financial and
agricultural 0.41% 0.12 0.10
Commercial real estate -
construction and mortgage 0.73 1.12 0.02
Total commercial 0.48 0.34 0.08
Real estate secured 0.59 0.26 0.08
Student loans 0.08 0.10 0.14
Installment and other loans (b) 2.76 2.35 1.99
Total consumer 0.79 0.46 0.27
Total as %
of average loans, net 0.66% 0.41 0.19
CONSUMER REAL ESTATE SECURED
NET CHARGE-OFFS
First lien (291) (122) (32)
Second lien (50) (25) (15)
Total consumer real estate
secured net charge-offs (341) (147) (47)
(a) The allowance for credit losses is the sum of the allowance for
loan losses and the reserve for unfunded lending commitments.
(b) Principally auto loans.
(c) These ratios do not include nonperforming assets included in
loans held for sale.
(d) Annualized.
PAGE 16
WACHOVIA CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
2007
Second First
(In millions) Quarter Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period $3,533 3,514
Provision for credit losses 168 175
Provision for credit losses relating
to loans transferred to loans held
for sale or sold 4 1
Provision for credit losses for
unfunded lending commitments 7 1
LOAN LOSSES
Commercial, financial and agricultural (39) (34)
Commercial real estate -
construction and mortgage (4) (6)
Total commercial (43) (40)
Real estate secured (40) (33)
Student loans (2) (3)
Installment and other loans (b) (138) (142)
Total consumer (180) (178)
Total loan losses (223) (218)
LOAN RECOVERIES
Commercial, financial and
agricultural 15 9
Commercial real estate -
construction and mortgage - 3
Total commercial 15 12
Real estate secured 11 6
Student loans - 1
Installment and other loans (b) 47 44
Total consumer 58 51
Total loan recoveries 73 63
Net charge-offs (150) (155)
Allowance relating to loans
acquired, transferred to loans
held for sale or sold (10) (3)
Balance, end of period $3,552 3,533
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses $3,390 3,378
Reserve for unfunded lending commitments 162 155
Total allowance for credit losses $3,552 3,533
ALLOWANCE FOR LOAN LOSSES
as % of loans, net 0.79% 0.80
as % of nonaccrual and restructured loans (c) 174 207
as % of nonperforming assets (c) 157 189
ALLOWANCE FOR CREDIT LOSSES
as % of loans, net 0.83% 0.84
NET CHARGE-OFFS AS % OF
AVERAGE LOANS, NET (d)
Commercial, financial and agricultural 0.07% 0.08
Commercial real estate -
construction and mortgage 0.04 0.04
Total commercial 0.07 0.07
Real estate secured 0.05 0.05
Student loans 0.07 0.10
Installment and other loans (b) 1.47 1.67
Total consumer 0.19 0.20
Total as %
of average loans, net 0.14% 0.15
CONSUMER REAL ESTATE SECURED
NET CHARGE-OFFS
First lien (17) (15)
Second lien (12) (12)
Total consumer real estate secured
net charge-offs (29) (27)
(a) The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.
(b) Principally auto loans.
(c) These ratios do not include nonperforming assets included in loans
held for sale.
(d) Annualized.
|
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2008 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
