Wachovia Corp New (WBPS) 8-K Financial statements and exhibits

Exhibit 99(a)

Press Release April 16, 2003

Wachovia Earns Record $1 Billion; 1^st Quarter EPS Up 15% To 76 Cents

1^st QUARTER 2003 COMPARED WITH 1^ST QUARTER 2002

· GAAP quarterly earnings were a record $1 billion, or 76 cents per share, up 15 percent, and included merger-related and restructuring expenses of 3 cents per share.

· Customer satisfaction scores improved for the 16^th consecutive quarter.

· Total revenue increased 3 percent due to growth in both net interest income and fee income. Lower net principal investing losses drove fee income growth.

· Noninterest expense increased 5 percent primarily due to merger-related and restructuring expense, revenue-based incentives and increases in nondiscretionary costs such as pension expense.

· Credit quality strengthened, with declining nonperforming assets, net charge-offs and provision expense from both the first and fourth quarters of 2002.

· Low-cost core deposits increased 19 percent.

· Average diluted outstanding shares of stock declined by 20 million from first quarter 2002 due to settlements of forward purchase contracts and open market share repurchases.

· Georgia branch and deposit conversion completed.

Earnings Highlights
	Three Months Ended
	March 31,			December 31,	March 31,
(In millions, except per share data)	2003			2002	2002
Earnings
Net income available to common stockholders	$	1,023		891	907
Diluted earnings per common share(a)	$	0.76		0.66	0.66
Financial ratios
Return on average common stockholders’ equity		12.94	%	11.07	12.74
Net interest margin		3.86		3.86	3.91
Fee and other income as % of total revenue		44.64	%	43.89	45.00
Capital adequacy(b)
Tier 1 capital ratio		8.25	%	8.22	7.49
Total capital ratio		11.95		12.01	11.56
Leverage ratio		6.71	%	6.77	6.51
Asset quality
Allowance as % of nonaccrual and restructured loans		172	%	177	177
Allowance as % of loans, net		1.67		1.72	1.84
Net charge-offs as % of average loans, net		0.49		0.52	0.83
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		1.06	%	1.11	1.21

^(a) Reported diluted earnings per common share included $0.03 per share and $0.06 per share of merger-related and restructuring expenses in the first quarter of 2003 and the fourth quarter of 2002, respectively. The impact in the first quarter of 2002 was less than $0.01.

^(b) The first quarter of 2003 is based on estimates.

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WACHOVIA REPORTS RECORD QUARTERLY EARNINGS /Page 2

CHARLOTTE, N.C.—Wachovia Corp. (NYSE:WB) today reported first quarter 2003 net income available to common stockholders of $1.0 billion, or 76 cents per share, compared with $907 million, or 66 cents per share, in the first quarter of 2002. Earnings in the first quarter of 2003 included after-tax net merger-related and restructuring expenses of $40 million, or 3 cents per share. In the first quarter of 2002, these charges were more than offset by gains on the sale of divested First Union branch offices, resulting in a net after-tax gain of $5 million, with no earnings per share impact.

“We’re very pleased with these strong results in a climate of continuing market volatility,” said Ken Thompson, chairman and CEO. “As the rest of 2003 unfolds, the trends evident this first quarter—improved customer service, improved credit quality, expense control and further merger efficiencies—should continue to serve us well.

“We’re particularly proud of the continuing success of our merger integration,” he added. “The deposit and branch conversion in Georgia was virtually flawless. Preparations, technology enhancements and testing are well under way for two more conversions—the Carolinas in mid-May and Virginia in the third quarter. With all of this merger activity, we feel particularly rewarded by the 16^th straight quarter of rising customer satisfaction ratings. Our competitive edge in service is leading to solid sales performance with low-cost core deposits up 19 percent and investment sales showing continued strength despite the weak equity markets.”

Wachovia Corporation
	Three Months Ended
	March 31,		December 31,	March 31,
(In millions)	2003		2002	2002
Total revenue (Tax-equivalent)	$	4,656	4,507	4,504
Provision for loan losses		224	308	339
Noninterest expense		2,903	3,042	2,769
Net income available to common stockholders		1,023	891	907
Average loans, net		157,964	153,279	157,324
Average core deposits	$	172,988	170,738	162,532

Average loans in the first quarter of 2003 were $158 billion, essentially the same as the first quarter of 2002, reflecting higher consumer loan balances dampened by continued lower corporate loan demand. Average core deposits increased 6 percent from the first quarter of 2002 to $173 billion, while average low-cost core deposits increased 16 percent from the first quarter a year ago to $129 billion.

First quarter 2003 net charge-offs declined by 40 percent from the first quarter of 2002 to $195 million, or an annualized 0.49 percent of average net loans. Total nonperforming assets including loans held for sale declined 11 percent from the first quarter of 2002 to $1.8 billion in the first quarter of 2003.

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WACHOVIA REPORTS RECORD QUARTERLY EARNINGS /Page 3

Lines of Business

The following discussion covers the results for Wachovia’s four core business segments, and is on a segment earnings basis, which excludes net merger-related and restructuring expenses and other intangible amortization. Segment earnings are the basis upon which Wachovia manages and allocates capital to its business segments.

General Bank Highlights

	Three Months Ended
	March 31,		December 31,	March 31,
(In millions)	2003		2002	2002
Total revenue(Tax-equivalent)	$	2,349	2,382	2,187
Provision for loan losses		105	144	115
Noninterest expense		1,297	1,342	1,231
Segment earnings		602	570	535
Average loans, net		110,882	106,081	98,068
Average core deposits		145,496	144,252	136,086
Economic capital, average	$	5,572	5,644	5,659

General Bank

The General Bank includes retail, small business and commercial customers. General Bank revenue increased 7 percent from the first quarter a year ago, driven by a 6 percent increase in net interest income and 13 percent growth in fee income. Average core deposit growth continued to be strong, up 7 percent from the first quarter of the prior year. Particularly notable was the increase in average low-cost core deposits of 18 percent from the first quarter of 2002. Loans increased 13 percent year over year, reflecting strength in consumer and small business lending. Credit quality continued to be strong, with a decline in charge-offs and the provision. Fee income growth was driven by mortgage income. The 5 percent increase in expenses from the first quarter of 2002 reflected higher benefit costs and incentives as well as technology enhancements in the financial centers. Retail sales momentum continued, with continued strength in debit card sales and in net new checking accounts, which increased by 82,459 in the first quarter of 2003, nearly the same as for all of 2002.

Capital Management Highlights

	Three Months Ended
	March 31,		December 31,	March 31,
(In millions)	2003		2002	2002
Total revenue(Tax-equivalent)	$	755	772	807
Provision for loan losses		—	—	—
Noninterest expense		625	622	663
Segment earnings		83	95	91
Average loans, net		134	131	166
Average core deposits		1,367	1,487	1,298
Economic capital, average	$	678	668	722

Capital Management

The Capital Management Group (CMG) includes asset management and retail brokerage services. CMG’s first quarter 2003 revenue declined 6 percent from the first quarter of 2002 due to the prolonged weakness in the equities markets and subdued investor activity. Despite this weakness, mutual fund net inflows continued to be positive. Total annuity sales increased 16 percent to more than $1.5 billion, including bank annuity sales of $1.1 billion that represented a 34 percent increase from the first quarter of 2002. Assets under management at March 31, 2003, increased 1 percent from March 31, 2002, to $233 billion, including a 6 percent increase in mutual fund assets to $113 billion at March 31, 2003. Brokerage client assets declined 7 percent from March 31, 2002, to $265 billion, due to the decline in equity market values. Expenses reflected solid cost control with a 6 percent decline from the first quarter of 2002 despite increased spending for technology infrastructure enhancements, increased sales expenses related to mutual funds, and branding campaigns for Wachovia Securities.

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WACHOVIA REPORTS RECORD QUARTERLY EARNINGS /Page 4

Wealth Management Highlights

	Three Months Ended
	March 31,		December 31,	March 31,
(In millions)	2003		2002	2002
Total revenue(Tax-equivalent)	$	237	239	232
Provision for loan losses		4	6	1
Noninterest expense		170	172	162
Segment earnings		40	40	44
Average loans, net		9,339	9,028	8,400
Average core deposits		10,662	10,339	9,896
Economic capital, average	$	373	376	351

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. Revenue was up modestly from the first quarter of 2002, driven by strong net interest income due to increased loans and deposits. Fee and other income declined 1 percent from the first quarter of 2002 due to market-driven declines in trust and investment management fees. Higher insurance commissions offset this decline. Average loans grew 11 percent from the first quarter a year ago, while average core deposits, led by money market and checking account balances, rose 8 percent from the first quarter of 2002. Expenses increased 5 percent year over year due to sharply higher benefit costs.

Corporate and Investment Bank Highlights

	Three Months Ended
	March 31,		December 31,	March 31,
(In millions)	2003		2002	2002
Total revenue(Tax-equivalent)	$	1,107	942	1,064
Provision for loan losses		110	161	222
Noninterest expense		556	535	517
Segment earnings		277	153	204
Average loans, net		36,104	38,673	43,342
Average core deposits		14,120	13,491	12,758
Economic capital, average	$	6,358	6,606	7,741

Corporate and Investment Bank

The Corporate and Investment Bank (CIB) includes corporate lending, investment banking, treasury services and trade finance, and principal investing. CIB revenue grew 4 percent from the first quarter of 2002, driven by lower net principal investing losses, while interest income declined on lower loan balances in corporate lending. The increase in expense was primarily related to incentives that reflected higher revenue and reduced credit costs. Average loans declined due to weak overall demand, while average core deposits increased primarily due to growth in commercial mortgage servicing and growth in international trade finance.

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WACHOVIA REPORTS RECORD QUARTERLY EARNINGS /Page 5

Wachovia Corporation (NYSE:WB) had assets of $348 billion and stockholders’ equity of $32 billion at March 31, 2003. Wachovia is a leading provider of financial services to retail, brokerage and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices under the First Union and Wachovia names in 11 East Coast states and Washington, D.C., and offers full-service brokerage with offices in 48 of the 50 states. Global services are provided through more than 30 international offices. Online banking and brokerage products and services are available through wachovia.com.

This news release may contain various forward-looking statements. A discussion of various factors that could cause Wachovia Corporation’s actual results to differ materially from those expressed in such forward-looking statements is included in Wachovia’s filings with the Securities and Exchange Commission, including its Current Report on Form 8-K dated April 16, 2003.

Earnings Conference Call and Supplemental Materials

Wachovia CEO Ken Thompson and CFO Bob Kelly will review Wachovia’s first quarter 2003 results in a conference call and audio webcast beginning at 10 a.m. Eastern Time today. Supplemental materials relating to first quarter results are available on the Internet at wachovia.com/investor, and investors are encouraged to access these materials in advance of the conference call.

Webcast Instructions:    To gain access to the webcast, which will be “listen-only,” go to wachovia.com/investor and click on the link “Wachovia First Quarter Earnings Audio Webcast.” In order to listen to the webcast, you will need to download either Real Player or Media Player.

Teleconference Instructions:    The telephone number for the conference call is 1-877-601-3456 for U.S. callers or 1-630-395-0022 for international callers. You will be asked to tell the answering coordinator your name and the name of your firm. Mention the conference Access Code: Kelly.

Replay:    Wednesday, April 16 at 12 p.m. through 6 p.m., Wednesday, May 14. Replay telephone number is 402-998-0652.

***

Investors seeking further information should contact the Investor Relations team: Alice Lehman at 704-374-4139 or Ellen Taylor at 704-383-1381. Media seeking further information should contact the Corporate Media Relations team: Ginny Mackin at 704-383-3715 or Christy Phillips at 704-383-8178.

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PAGE 6

WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2003			2002
(Dollars in millions, except per share data)	First Quarter			Fourth Quarter	Third Quarter	Second Quarter	First Quarter
EARNINGS SUMMARY
Net interest income(Tax-equivalent)	$	2,578		2,529	2,520	2,515	2,477
Fee and other income		2,078		1,978	1,890	2,110	2,027
Total revenue(Tax-equivalent)		4,656		4,507	4,410	4,625	4,504
Provision for loan losses		224		308	435	397	339
Other noninterest expense		2,699		2,750	2,686	2,622	2,609
Merger-related and restructuring expenses		64		145	107	143	(8	)
Other intangible amortization		140		147	152	161	168
Total noninterest expense		2,903		3,042	2,945	2,926	2,769
Income before income taxes(Tax-equivalent)		1,529		1,157	1,030	1,302	1,396
Income taxes(Tax-equivalent)		502		262	114	447	483
Net income		1,027		895	916	855	913
Dividends on preferred stock		4		4	3	6	6
Net income available to common stockholders	$	1,023		891	913	849	907
Diluted earnings per common share	$	0.76		0.66	0.66	0.62	0.66
Return on average common stockholders’ equity		12.94	%	11.07	11.63	11.52	12.74
Return on average assets		1.23	%	1.08	1.13	1.09	1.17
ASSET QUALITY
Allowance as % of loans, net		1.67	%	1.72	1.81	1.86	1.84
Allowance as % of nonperforming assets		160		161	149	150	162
Net charge-offs as % of average loans, net		0.49		0.52	0.59	0.97	0.83
Nonperforming assets as % of loans, net,
foreclosed properties and loans held for sale		1.06	%	1.11	1.23	1.24	1.21
CAPITAL ADEQUACY (a)
Tier I capital ratio		8.25	%	8.22	8.11	7.83	7.49
Total capital ratio		11.95		12.01	12.02	11.89	11.56
Leverage ratio		6.71	%	6.77	6.82	6.75	6.51
OTHER DATA
Average diluted common shares(In millions)		1,346		1,360	1,374	1,375	1,366
Actual common shares(In millions)		1,345		1,357	1,373	1,371	1,368
Dividends paid per common share	$	0.26		0.26	0.26	0.24	0.24
Dividends paid per preferred share		0.04		0.04	0.04	0.06	0.06
Book value per common share		23.99		23.63	23.38	22.15	21.04
Common stock price		34.07		36.44	32.69	38.18	37.08
Market capitalization	$	45,828		49,461	44,887	52,347	50,716
Common stock to book price		142	%	154	140	172	176
FTE employees		79,555		80,778	80,987	82,686	82,809
Total financial centers/brokerage offices		3,251		3,280	3,342	3,347	3,362
ATMs		4,539		4,560	4,604	4,617	4,618

(a) The first quarter of 2003 is based on estimates.

PAGE 7

WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2003			2002
(In millions)	First Quarter			Fourth Quarter	Third Quarter		Second Quarter	First Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES (a)
Net income	$	1,067		987	983		944	908
Return on average assets		1.28	%	1.19	1.21		1.20	1.17
Return on average common stockholders’ equity		13.45		12.13	12.44		12.72	12.68
Overhead efficiency ratio		60.96	%	64.30	64.33		60.19	61.66
Operating leverage	$	209		36	(267	)	113	125
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES AND OTHER INTANGIBLE AMORTIZATION (a) (b)
Net income	$	1,155		1,070	1,081		1,047	1,016
Dividend payout ratio on common shares		30.23	%	33.33	33.33		31.58	32.43
Return on average tangible assets		1.44		1.34	1.39		1.39	1.36
Return on average tangible common stockholders’ equity		23.71		21.52	22.84		24.66	25.30
Overhead efficiency ratio		57.97	%	61.04	60.87		56.72	57.93
Operating leverage	$	202		30	(275	)	105	42
OTHER FINANCIAL DATA
Net interest margin		3.86	%	3.86	3.94		3.97	3.91
Fee and other income as % of total revenue		44.64		43.89	42.86		45.63	45.00
Effective income tax rate		29.94		18.39	6.20		31.46	32.12
Tax rate (Tax-equivalent) (c)		32.86	%	22.50	11.20		34.27	34.60
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	93,039		95,064	96,769		98,529	99,711
Consumer loans, net		64,925		58,215	55,159		56,819	57,613
Loans, net		157,964		153,279	151,928		155,348	157,324
Earning assets		268,595		261,103	254,815		253,829	254,886
Total assets		337,281		329,960	321,511		314,714	315,322
Core deposits		172,988		170,738	167,184		164,510	162,532
Total deposits		188,948		187,442	179,809		177,925	178,230
Interest-bearing liabilities		237,149		230,611	223,176		223,407	226,837
Stockholders’ equity	$	32,052		31,946	31,103		29,576	28,903
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	98,800		98,905	101,931		102,780	104,883
Consumer loans, net		65,422		64,192	55,611		56,020	57,411
Loans, net		164,222		163,097	157,542		158,800	162,294
Goodwill and other intangible assets
Goodwill		10,869		10,880	10,810		10,728	10,728
Deposit base		1,097		1,225	1,363		1,508	1,661
Customer relationships		258		239	222		229	237
Tradename		90		90	90		90	90
Total assets		348,064		341,839	333,880		324,679	319,853
Core deposits		181,234		175,743	173,697		166,779	165,759
Total deposits		195,837		191,518	187,785		180,663	180,033
Stockholders’ equity	$	32,267		32,078	32,105		30,379	28,785

(a) Excludes $40 million, $92 million, $67 million, $89 million and $(5) million in the first quarter of 2003, and in the fourth, third, second and first quarters of 2002, respectively, in after-tax net merger-related and restructuring expenses.

(b) Excludes $88 million, $83 million, $98 million, $103 million and $108 million in the first quarter of 2003, and in the fourth, third, second and first quarters of 2002, respectively, in deposit base and other intangible amortization.

(c) The tax-equivalent tax rate applies to fully tax-equivalized revenues.

PAGE 8

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2003			2002
(In millions, except per share data)	First Quarter			Fourth Quarter		Third Quarter		Second Quarter		First Quarter
INTEREST INCOME
Interest and fees on loans	$	2,407		2,538		2,558		2,563		2,637
Interest and dividends on securities		939		978		935		906		856
Trading account interest		174		158		179		173		155
Other interest income		196		203		240		252		255
Total interest income		3,716		3,877		3,912		3,894		3,903
INTEREST EXPENSE
Interest on deposits		639		832		847		836		915
Interest on short-term borrowings		306		295		310		300		286
Interest on long-term debt		257		280		289		297		276
Total interest expense		1,202		1,407		1,446		1,433		1,477
Net interest income		2,514		2,470		2,466		2,461		2,426
Provision for loan losses		224		308		435		397		339
Net interest income after provision for loan losses		2,290		2,162		2,031		2,064		2,087
FEE AND OTHER INCOME
Service charges		430		421		432		420		425
Other banking fees		233		236		232		241		236
Commissions		444		473		458		481		464
Fiduciary and asset management fees		438		439		427		466		477
Advisory, underwriting and other investment banking fees		137		182		143		192		136
Trading account profits (losses)		100		(42	)	(71	)	33		104
Principal investing		(44	)	(105	)	(29	)	(42	)	(90	)
Securities gains (losses)		37		46		71		58		(6	)
Other income		303		328		227		261		281
Total fee and other income		2,078		1,978		1,890		2,110		2,027
NONINTEREST EXPENSE
Salaries and employee benefits		1,699		1,681		1,588		1,665		1,663
Occupancy		197		202		195		194		195
Equipment		234		255		234		231		226
Advertising		32		16		20		25		19
Communications and supplies		141		143		136		132		134
Professional and consulting fees		99		126		111		96		88
Other intangible amortization		140		147		152		161		168
Merger-related and restructuring expenses		64		145		107		143		(8	)
Sundry expense		297		327		402		279		284
Total noninterest expense		2,903		3,042		2,945		2,926		2,769
Income before income taxes		1,465		1,098		976		1,248		1,345
Income taxes		438		203		60		393		432
Net income		1,027		895		916		855		913
Dividends on preferred stock		4		4		3		6		6
Net income available to common stockholders	$	1,023		891		913		849		907
PER COMMON SHARE DATA
Basic earnings	$	0.77		0.66		0.67		0.62		0.67
Diluted earnings		0.76		0.66		0.66		0.62		0.66
Cash dividends	$	0.26		0.26		0.26		0.24		0.24
AVERAGE COMMON SHARES
Basic		1,335		1,350		1,362		1,360		1,355
Diluted		1,346		1,360		1,374		1,375		1,366

PAGE 9

WACHOVIA CORPORATION AND SUBSIDIARIES

LOANS—ON-BALANCE SHEET, AND MANAGED AND SERVICING PORTFOLIOS

(Unaudited)

	2003		2002
(In millions)	First Quarter		Fourth Quarter	Third Quarter	Second Quarter	First Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and agricultural	$	56,476	56,501	57,899	57,984	60,385
Real estate—construction and other		6,833	6,849	7,558	8,035	8,137
Real estate—mortgage		16,429	16,655	16,967	17,349	17,186
Lease financing		23,060	22,667	22,616	22,044	22,223
Foreign		6,433	6,425	6,992	7,241	6,920
Total commercial		109,231	109,097	112,032	112,653	114,851
CONSUMER
Real estate—mortgage		25,288	24,979	17,527	19,803	20,901
Installment loans		39,748	38,817	37,889	35,940	36,073
Vehicle leasing		35	80	43	168	345
Total consumer		65,071	63,876	55,459	55,911	57,319
Total loans		174,302	172,973	167,491	168,564	172,170
Unearned income		10,080	9,876	9,949	9,764	9,876
Loans, net (On-balance sheet)	$	164,222	163,097	157,542	158,800	162,294
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	109,231	109,097	112,032	112,653	114,851
Securitized loans—off-balance sheet		2,190	2,218	2,288	2,318	5,816
Loans held for sale included in other assets		1,617	1,140	1,271	779	962
Total commercial		113,038	112,455	115,591	115,750	121,629
CONSUMER
Real estate—mortgage
On-balance sheet loan portfolio		25,288	24,979	17,527	19,803	20,901
Securitized loans—off-balance sheet		251	325	397	—	—
Securitized loans included in securities		4,971	6,223	7,268	5,761	5,219
Loans held for sale included in other assets		2,154	2,719	2,474	1,387	1,555
Total real estate—mortgage		32,664	34,246	27,666	26,951	27,675
Installment loans
On-balance sheet loan portfolio		39,748	38,817	37,889	35,940	36,073
Securitized loans—off-balance sheet		12,878	13,217	13,164	13,379	13,989
Securitized loans included in securities		9,842	11,093	11,695	8,918	9,230
Loans held for sale included in other assets		3,690	2,153	2,512	6,232	4,614
Total installment loans		66, 158	65,280	65,260	64,469	63,906
Vehicle leasing—on-balance sheet loan portfolio		35	80	43	168	345
Total consumer		98,857	99,606	92,969	91,588	91,926
Total managed portfolio	$	211,895	212,061	208,560	207,338	213,555
SERVICING PORTFOLIO (b)
Commercial	$	60,863	59,336	53,611	50,001	47,657
Consumer	$	2,236	2,272	2,490	1,773	1,844

(a) The managed portfolio includes the on-balance sheet loan portfolio, loans securitized for which the assets are classified in securities on-balance sheet, loans held for sale that are classified in other assets 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 10

WACHOVIA CORPORATION AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS

(Unaudited)

	2003			2002
(In millions)		First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
ALLOWANCE FOR LOAN LOSSES
Balance, beginning of period	$	2,798		2,847		2,951		2,986		2,995
Provision for loan losses relating to loans transferred to other assets or sold		25		109		211		23		14
Provision for loan losses		199		199		224		374		325
Allowance relating to loans acquired, transferred to other assets or sold		(80	)	(158	)	(315	)	(58	)	(23	)
Net charge-offs		(195	)	(199	)	(224	)	(374	)	(325	)
Balance, end of period	$	2,747		2,798		2,847		2,951		2,986
as % of loans, net		1.67	%	1.72		1.81		1.86		1.84
as % of nonaccrual and restructured loans (a)		172	%	177		163		163		177
as % of nonperforming assets (a)		160	%	161		149		150		162
LOAN LOSSES
Commercial, financial and agricultural	$	150		136		160		319		275
Real estate—commercial construction and mortgage		2		12		5		3		2
Real estate—residential mortgage		2		1		3		1		4
Installment loans and vehicle leasing		91		91		91		86		100
Total loan losses		245		240		259		409		381
LOAN RECOVERIES
Commercial, financial and agricultural		29		24		17		16		36
Real estate—commercial construction and mortgage		—		—		—		2		—
Real estate—residential mortgage		—		1		—		—		—
Installment loans and vehicle leasing		21		16		18		17		20
Total loan recoveries		50		41		35		35		56
Net charge-offs	$	195		199		224		374		325
Commercial loans net charge-offs as % of average commercial loans, net (b)		0.53	%	0.53		0.61		1.24		0.97
Consumer loans net charge-offs as % of average consumer loans, net (b)		0.44		0.52		0.56		0.48		0.59
Total net charge-offs as % of average loans, net (b)		0.49	%	0.52		0.59		0.97		0.83
NONPERFORMING ASSETS
Nonaccrual loans
Commercial, financial and agricultural	$	1,232		1,269		1,440		1,456		1,371
Real estate—commercial construction and mortgage		111		105		137		144		128
Real estate—residential mortgage		73		79		62		60		58
Installment loans and vehicle leasing		178		132		112		145		128
Total nonaccrual loans		1,594		1,585		1,751		1,805		1,685
Foreclosed properties (c)		118		150		156		156		159
Total nonperforming assets	$	1,712		1,735		1,907		1,961		1,844
Nonperforming loans included in loans held for sale (d)	$	114		138		115		108		213
Nonperforming assets included in loans and in loans held for sale	$	1,826		1,873		2,022		2,069		2,057
as % of loans, net, and foreclosed properties (a)		1.04	%	1.06		1.21		1.23		1.14
as % of loans, net, foreclosed properties and loans in other assets as held for sale (d)		1.06	%	1.11		1.23		1.24		1.21
Accruing loans past due 90 days	$	289		304		284		250		275

(a) These ratios do not include nonperforming loans included in loans held for sale.

(b) Annualized.

(c) Restructured loans are insignificant.

(d) These ratios reflect nonperforming loans included in loans held for sale. Loans held for sale, which are included in other assets, are recorded at the lower of cost or market value, and accordingly, the amount shown and included in the ratios is net of the transferred allowance for loan losses and the lower of cost or market value adjustments.

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2003			2002
(In millions, except per share data)	First Quarter			Fourth Quarter		Third Quarter		Second Quarter		First Quarter
ASSETS
Cash and due from banks	$	13,161		12,264		11,930		10,668		10,038
Interest-bearing bank balances		4,855		3,512		3,561		2,269		3,356
Federal funds sold and securities purchased under resale agreements		11,092		9,160		7,132		11,541		13,154
Total cash and cash equivalents		29,108		24,936		22,623		24,478		26,548
Trading account assets		34,678		33,155		35,902		34,570		28,227
Securities		73,339		75,804		72,071		60,999		57,382
Loans, net of unearned income		164,222		163,097		157,542		158,800		162,294
Allowance for loan losses		(2,747	)	(2,798	)	(2,847	)	(2,951	)	(2,986	)
Loans, net		161,475		160,299		154,695		155,849		159,308
Premises and equipment		5,118		4,903		5,422		5,494		5,596
Due from customers on acceptances		1,485		1,051		1,080		1,105		888
Goodwill		10,869		10,880		10,810		10,728		10,728
Other intangible assets		1,445		1,554		1,675		1,827		1,988
Other assets		30,547		29,257		29,602		29,629		29,188
Total assets	$	348,064		341,839		333,880		324,679		319,853
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		46,348		44,640		44,186		39,558		39,323
Interest-bearing deposits		149,489		146,878		143,599		141,105		140,710
Total deposits		195,837		191,518		187,785		180,663		180,033
Short-term borrowings		44,812		41,173		36,350		39,148		40,392
Bank acceptances outstanding		1,492		1,061		1,093		1,110		892
Trading account liabilities		20,896		22,900		22,210		22,445		16,467
Other liabilities		13,556		13,447		14,579		13,003		13,348
Long-term debt		39,204		39,662		39,758		37,931		39,936
Total liabilities		315,797		309,761		301,775		294,300		291,068
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at March 31, 2003		—		—		2		5		11
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.345 billion shares at March 31, 2003		4,484		4,524		4,577		4,570		4,559
Paid-in capital		17,903		18,070		18,233		18,106		17,989
Retained earnings		7,778		7,349		7,221		6,663		6,136
Accumulated other comprehensive income, net		2,102		2,135		2,072		1,035		90
Total stockholders’ equity		32,267		32,078		32,105		30,379		28,785
Total liabilities and stockholders’ equity	$	348,064		341,839		333,880		324,679		319,853

PAGE 12

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES (a)

(Unaudited)

	FIRST QUARTER 2003						FOURTH QUARTER 2002
(In millions)	Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	3,688		13	1.43	%	$	3,416		14	1.59	%
Federal funds sold and securities purchased under resale agreements		8,949		29	1.33			9,507		39	1.63
Trading account assets		16,298		196	4.84			14,683		178	4.83
Securities		72,116		1,020	5.66			71,249		1,045	5.86
Loans
Commercial
Commercial, financial and agricultural		56,464		593	4.26			57,318		663	4.58
Real estate—construction and other		6,800		60	3.57			7,133		68	3.80
Real estate—mortgage		16,537		192	4.69			16,770		214	5.06
Lease financing		6,777		184	10.86			7,112		187	10.53
Foreign		6,461		50	3.11			6,731		58	3.43
Total commercial		93,039		1,079	4.69			95,064		1,190	4.97
Consumer
Real estate—mortgage		25,292		333	5.27			19,294		295	6.12
Installment loans and vehicle leasing		39,633		625	6.38			38,921		655	6.69
Total consumer		64,925		958	5.95			58,215		950	6.50
Total loans		157,964		2,037	5.21			153,279		2,140	5.55
Other earning assets		9,580		114	4.81			8,969		115	5.10
Total earning assets excluding derivatives		268,595		3,409	5.11			261,103		3,531	5.39
Risk management derivatives (b)				371						405
Total earning assets including derivatives		268,595		3,780	5.67			261,103		3,936	6.00
Cash and due from banks		10,887						10,636
Other assets		57,799						58,221
Total assets	$	337,281					$	329,960
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		50,887		79	0.63			49,768		99	0.79
Money market accounts		47,987		142	1.20			45,618		156	1.35
Other consumer time		32,671		263	3.27			34,834		331	3.78
Foreign		7,304		27	1.47			8,030		33	1.59
Other time		8,656		42	1.97			8,674		45	2.08
Total interest-bearing deposits		147,505		553	1.52			146,924		664	1.79
Federal funds purchased and securities sold under repurchase agreements		37,392		147	1.60			32,608		149	1.81
Commercial paper		2,604		4	0.55			2,796		6	0.79
Securities sold short		6,734		44	2.67			5,644		35	2.44
Other short-term borrowings		4,170		18	1.81			3,881		16	1.73
Debentures and capital notes		38,744		388	4.01			38,758		405	4.18
Total interest-bearing liabilities excluding derivatives		237,149		1,154	1.97			230,611		1,275	2.20
Risk management derivatives (b)				48						132
Total interest-bearing liabilities including derivatives		237,149		1,202	2.05			230,611		1,407	2.42
Noninterest-bearing deposits		41,443						40,518
Other liabilities		26,637						26,885
Stockholders’ equity		32,052						31,946
Total liabilities and stockholders’ equity	$	337,281					$	329,960
Interest income and rate earned—including derivatives			$	3,780	5.67	%			$	3,936	6.00	%
Interest expense and equivalent rate paid—including derivatives				1,202	1.81					1,407	2.14
Net interest income and margin—including derivatives (c)			$	2,578	3.86	%			$	2,529	3.86	%

(a) Certain amounts presented in periods prior to the first quarter of 2003 have been reclassified to conform to the presentation in the first quarter of 2003.

(b) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities.

(c) The net interest margin includes(in basis points): 49, 42, 38, 39 and 47 in the first quarter of 2003, and in the fourth, third, second and first quarters of 2002, respectively, in net interest income from hedge-related derivative transactions.

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES (a)

(Unaudited)

THIRD QUARTER 2002						SECOND QUARTER 2002						FIRST QUARTER 2002
Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
$	2,891		14	1.90	%	$	2,613		13	2.02	%	$	4,341		22	2.07	%
	10,474		49	1.83			10,835		52	1.97			12,020		55	1.85
	14,945		194	5.17			15,503		186	4.79			13,954		165	4.77
	62,806		999	6.36			58,169		967	6.65			56,174		914	6.51
	57,788		693	4.76			58,760		710	4.84			60,149		720	4.85
	7,809		81	4.10			8,115		84	4.19			8,126		86	4.28
	17,188		228	5.26			17,310		231	5.36			17,163		238	5.61
	7,105		189	10.65			7,286		193	10.60			7,442		193	10.37
	6,879		59	3.41			7,058		60	3.37			6,831		62	3.71
	96,769		1,250	5.13			98,529		1,278	5.20			99,711		1,299	5.27
	18,968		294	6.20			20,102		319	6.35			21,442		354	6.60
	36,191		651	7.15			36,717		662	7.22			36,171		666	7.46
	55,159		945	6.82			56,819		981	6.91			57,613		1,020	7.14
	151,928		2,195	5.75			155,348		2,259	5.83			157,324		2,319	5.96
	11,771		144	4.86			11,361		154	5.42			11,073		140	5.13
	254,815		3,595	5.62			253,829		3,631	5.73			254,886		3,615	5.72
			371						317						339
	254,815		3,966	6.20			253,829		3,948	6.23			254,886		3,954	6.26
	9,955						10,110						10,553
	56,741						50,775						49,883
$	321,511					$	314,714					$	315,322
	48,883		115	0.93			49,060		122	1.00			48,642		128	1.07
	43,495		167	1.53			40,035		171	1.71			37,589		163	1.76
	36,034		347	3.82			36,967		365	3.96			38,174		399	4.24
	6,491		30	1.84			7,195		33	1.88			7,578		35	1.85
	6,134		33	2.13			6,220		32	2.00			8,120		43	2.19
	141,037		692	1.95			139,477		723	2.08			140,103		768	2.22
	32,094		149	1.85			32,109		145	1.80			32,155		146	1.84
	3,001		9	1.18			3,027		8	1.17			3,438		10	1.15
	6,422		42	2.58			6,671		40	2.45			6,560		38	2.33
	3,082		18	2.26			3,368		22	2.61			3,989		27	2.77
	37,540		412	4.38			38,755		420	4.34			40,592		430	4.24
	223,176		1,322	2.35			223,407		1,358	2.44			226,837		1,419	2.53
			124						75						58
	223,176		1,446	2.57			223,407		1,433	2.57			226,837		1,477	2.64
	38,772						38,448						38,127
	28,460						23,283						21,455
	31,103						29,576						28,903
	$321,511					$	314,714					$	315,322
		$	3,966	6.20	%			$	3,948	6.23	%			$	3,954	6.26	%
			1,446	2.26					1,433	2.26					1,477	2.35
		$	2,520	3.94	%			$	2,515	3.97	%			$	2,477	3.91	%