Wachovia Corp New (WBPS) 8-K Results of Operations and Financial Condition

Exhibit (99)(c)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS(Unaudited)

	December 31,
(In millions, except per share data)	2004			2003
ASSETS
Cash and due from banks	$	11,714		11,479
Interest-bearing bank balances		4,441		2,308
Federal funds sold and securities purchased under resale agreements (carrying amount of collateral held $10,394 at December 31, 2004, $3,585 repledged)		22,436		24,725
Total cash and cash equivalents		38,591		38,512
Trading account assets		45,932		34,714
Securities		110,597		100,445
Loans, net of unearned income		223,840		165,571
Allowance for loan losses		(2,757	)	(2,348	)
Loans, net		221,083		163,223
Premises and equipment		5,268		4,619
Due from customers on acceptances		718		854
Goodwill		21,526		11,149
Other intangible assets		1,581		1,243
Loans held for sale		12,988		12,625
Other assets		35,040		33,804
Total assets	$	493,324		401,188
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		64,197		48,683
Interest-bearing deposits		230,856		172,542
Total deposits		295,053		221,225
Short-term borrowings		63,406		71,290
Bank acceptances outstanding		755		876
Trading account liabilities		21,709		19,184
Other liabilities		15,507		16,945
Long-term debt		46,759		36,730
Total liabilities		443,189		366,250
Minority interest in net assets of consolidated subsidiaries		2,818		2,510
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at December 31, 2004		—		—
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.588 billion shares at December 31, 2004		5,294		4,374
Paid-in capital		31,120		17,811
Retained earnings		10,178		8,904
Accumulated other comprehensive income, net		725		1,339
Total stockholders’ equity		47,317		32,428
Total liabilities and stockholders’ equity	$	493,324		401,188

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

	Three Months Ended December 31,					Years Ended December 31,
(In millions, except per share data)	2004			2003		2004		2003
INTEREST INCOME
Interest and fees on loans	$	2,814		2,357		9,858		9,507
Interest and dividends on securities		1,232		1,104		4,639		3,828
Trading account interest		388		189		1,147		724
Other interest income		535		301		1,644		1,021
Total interest income		4,969		3,951		17,288		15,080
INTEREST EXPENSE
Interest on deposits		860		568		2,853		2,360
Interest on short-term borrowings		492		311		1,503		1,219
Interest on long-term debt		320		195		971		894
Total interest expense		1,672		1,074		5,327		4,473
Net interest income		3,297		2,877		11,961		10,607
Provision for credit losses		109		86		257		586
Net interest income after provision for credit losses		3,188		2,791		11,704		10,021
FEE AND OTHER INCOME(a)
Service charges		519		436		1,978		1,731
Other banking fees		343		250		1,226		1,017
Commissions		620		732		2,601		2,318
Fiduciary and asset management fees		700		700		2,772		2,345
Advisory, underwriting and other investment banking fees		271		223		911		787
Trading account profits (losses)		(16	)	14		35		110
Principal investing		7		(13	)	261		(139	)
Securities gains (losses)		23		(24	)	(10	)	45
Other income		337		295		1,005		1,268
Total fee and other income		2,804		2,613		10,779		9,482
NONINTEREST EXPENSE (a)
Salaries and employee benefits		2,239		2,152		8,703		7,708
Occupancy		260		244		947		851
Equipment		272		285		1,052		1,021
Advertising		51		56		193		160
Communications and supplies		163		156		620		598
Professional and consulting fees		179		146		548		460
Other intangible amortization		113		120		431		518
Merger-related and restructuring expenses		116		135		444		443
Sundry expense		441		481		1,728		1,521
Total noninterest expense		3,834		3,775		14,666		13,280
Minority interest in income of consolidated subsidiaries		54		63		184		143
Income before income taxes and cumulative effect of a change in accounting principle		2,104		1,566		7,633		6,080
Income taxes		656		466		2,419		1,833
Income before cumulative effect of a change in accounting principle		1,448		1,100		5,214		4,247
Cumulative effect of a change in accounting principle, net of income taxes		—		—		—		17
Net income		1,448		1,100		5,214		4,264
Dividends on preferred stock		—		—		—		5
Net income available to common stockholders	$	1,448		1,100		5,214		4,259
PER COMMON SHARE DATA
Basic
Income before change in accounting principle	$	0.97		0.84		3.87		3.20
Net income		0.97		0.84		3.87		3.21
Diluted
Income before change in accounting principle		0.95		0.83		3.81		3.17
Net income		0.95		0.83		3.81		3.18
Cash dividends	$	0.46		0.35		1.66		1.25
AVERAGE COMMON SHARES
Basic		1,487		1,311		1,346		1,325
Diluted		1,518		1,332		1,370		1,340

^(a) Certain amounts presented in 2003 have been reclassified to conform to the presentation in 2004.