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

Exhibit 99(c)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2004					2003
(In millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ASSETS
Cash and due from banks	$	10,701		10,564		11,479		11,178		13,088
Interest-bearing bank balances		2,059		5,881		2,308		3,664		7,539
Federal funds sold and securities purchased under resale agreements		21,970		23,845		24,725		22,491		13,854
Total cash and cash equivalents		34,730		40,290		38,512		37,333		34,481
Trading account assets		39,659		36,893		34,714		36,392		40,436
Securities		102,934		104,203		100,445		87,176		73,764
Loans, net of unearned income		172,917		167,303		165,571		165,925		162,833
Allowance for loan losses (a)		(2,331	)	(2,338	)	(2,348	)	(2,474	)	(2,510	)
Loans, net (a)		170,586		164,965		163,223		163,451		160,323
Premises and equipment		4,522		4,620		4,619		4,746		4,635
Due from customers on acceptances		703		605		854		732		1,074
Goodwill		11,481		11,233		11,149		11,094		10,907
Other intangible assets		1,045		1,150		1,243		1,353		1,321
Other assets		52,781		47,181		46,429		46,647		37,538
Total assets (a)	$	418,441		411,140		401,188		388,924		364,479
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		51,613		49,018		48,683		45,493		48,081
Interest-bearing deposits		191,767		183,320		172,542		158,002		153,211
Total deposits		243,380		232,338		221,225		203,495		201,292
Short-term borrowings		66,360		65,452		71,290		65,474		49,123
Bank acceptances outstanding		708		613		876		743		1,078
Trading account liabilities		20,327		21,956		19,184		23,959		25,141
Other liabilities (a)		15,321		15,564		16,945		22,800		17,481
Long-term debt		37,022		39,352		36,730		37,541		37,051
Total liabilities (a)		383,118		375,275		366,250		354,012		331,166
Minority interest in net assets of consolidated subsidiaries		2,677		2,528		2,510		2,099		849
STOCKHOLDERS' EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2004		—		—		—		—		—
Common stock, $3.33 1/3 par value; authorized 3 billion shares, outstanding 1.309 billion shares at June 30, 2004		4,365		4,372		4,374		4,427		4,440
Paid-in capital		17,920		17,869		17,811		17,882		17,784
Retained earnings		9,890		9,382		8,904		8,829		8,106
Accumulated other comprehensive income, net		471		1,714		1,339		1,675		2,134
Total stockholders’ equity		32,646		33,337		32,428		32,813		32,464
Total liabilities and stockholders’ equity (a)	$	418,441		411,140		401,188		388,924		364,479

(a) As of June 30, 2004, the reserve for unfunded lending commitments has been reclassified from the allowance for loan losses to other liabilities. Amounts presented prior to the second quarter of 2004 have been reclassified to conform to the presentation in the second quarter of 2004.

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2004			2003
(In millions, except per share data)	Second Quarter		First Quarter	Fourth Quarter		Third Quarter		Second Quarter
INTEREST INCOME
Interest and fees on loans	$	2,316	2,335	2,357		2,352		2,391
Interest and dividends on securities		1,110	1,141	1,104		885		900
Trading account interest		237	197	189		174		182
Other interest income		356	326	301		301		223
Total interest income		4,019	3,999	3,951		3,712		3,696
INTEREST EXPENSE
Interest on deposits		654	648	568		534		619
Interest on short-term borrowings		316	299	311		317		303
Interest on long-term debt		211	191	195		208		234
Total interest expense		1,181	1,138	1,074		1,059		1,156
Net interest income		2,838	2,861	2,877		2,653		2,540
Provision for credit losses		61	44	86		81		195
Net interest income after provision for credit losses		2,777	2,817	2,791		2,572		2,345
FEE AND OTHER INCOME
Service charges		489	471	436		439		426
Other banking fees		293	259	241		257		248
Commissions		682	792	778		765		468
Fiduciary and asset management fees		675	679	672		662		474
Advisory, underwriting and other investment banking fees		197	192	213		191		220
Trading account profits (losses)		39	74	5		(46	)	49
Principal investing		15	38	(13	)	(25	)	(57	)
Securities gains (losses)		36	2	(24	)	22		10
Other income		173	250	296		351		320
Total fee and other income		2,599	2,757	2,604		2,616		2,158
NONINTEREST EXPENSE
Salaries and employee benefits		2,164	2,182	2,152		2,109		1,748
Occupancy		224	229	244		220		190
Equipment		253	259	285		264		238
Advertising		48	48	56		38		34
Communications and supplies		157	151	156		159		140
Professional and consulting fees		126	109	146		109		105
Other intangible amortization		107	112	120		127		131
Merger-related and restructuring expenses		102	99	135		148		96
Sundry expense		306	467	472		396		319
Total noninterest expense		3,487	3,656	3,766		3,570		3,001
Minority interest in income of consolidated subsidiaries		45	57	63		55		16
Income before income taxes and cumulative effect of a change in accounting principle		1,844	1,861	1,566		1,563		1,486
Income taxes		592	610	466		475		454
Income before cumulative effect of a change in accounting principle		1,252	1,251	1,100		1,088		1,032
Cumulative effect of a change in accounting principle, net of income taxes		—	—	—		17		—
Net income		1,252	1,251	1,100		1,105		1,032
Dividends on preferred stock		—	—	—		—		1
Net income available to common stockholders	$	1,252	1,251	1,100		1,105		1,031
PER COMMON SHARE DATA
Basic
Income before change in accounting principle	$	0.96	0.96	0.84		0.83		0.77
Net income		0.96	0.96	0.84		0.84		0.77
Diluted
Income before change in accounting principle		0.95	0.94	0.83		0.82		0.77
Net income		0.95	0.94	0.83		0.83		0.77
Cash dividends	$	0.40	0.40	0.35		0.35		0.29
AVERAGE COMMON SHARES
Basic		1,300	1,302	1,311		1,321		1,333
Diluted		1,320	1,326	1,332		1,338		1,346

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (a)

(Unaudited)

	Six Months Ended June 30,
(In millions, except per share data)	2004		2003
INTEREST INCOME
Interest and fees on loans	$	4,651	4,798
Interest and dividends on securities		2,251	1,839
Trading account interest		434	361
Other interest income		682	419
Total interest income		8,018	7,417
INTEREST EXPENSE
Interest on deposits		1,302	1,258
Interest on short-term borrowings		615	591
Interest on long-term debt		402	491
Total interest expense		2,319	2,340
Net interest income		5,699	5,077
Provision for credit losses		105	419
Net interest income after provision for credit losses		5,594	4,658
FEE AND OTHER INCOME
Service charges		960	856
Other banking fees		552	481
Commissions		1,474	886
Fiduciary and asset management fees		1,354	943
Advisory, underwriting and other investment banking fees		389	365
Trading account profits		113	126
Principal investing		53	(101	)
Securities gains		38	47
Other income		423	621
Total fee and other income		5,356	4,224
NONINTEREST EXPENSE
Salaries and employee benefits		4,346	3,447
Occupancy		453	387
Equipment		512	472
Advertising		96	66
Communications and supplies		308	283
Professional and consulting fees		235	205
Other intangible amortization		219	271
Merger-related and restructuring expenses		201	160
Sundry expense		773	615
Total noninterest expense		7,143	5,906
Minority interest in income of consolidated subsidiaries		102	25
Income before income taxes		3,705	2,951
Income taxes		1,202	892
Net income		2,503	2,059
Dividends on preferred stock		—	5
Net income available to common stockholders	$	2,503	2,054
PER COMMON SHARE DATA
Basic earnings	$	1.92	1.54
Diluted earnings		1.89	1.53
Cash dividends	$	0.80	0.55
AVERAGE COMMON SHARES
Basic		1,301	1,334
Diluted		1,323	1,346

(a) Amounts presented in the six months ended June 30, 2003, have been reclassified to conform to the presentation in the six months ended June 30, 2004.