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

Exhibit (99)(a)

Press Release October 17, 2005

WACHOVIA EARNS RECORD $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%

Strong revenue growth, expense discipline, solid credit quality and customer service excellence drive record net income of $1.67 billion

3^rd QUARTER 2005 COMPARED WITH 3^rd QUARTER 2004

• Record revenue up 19 percent, reflecting across-the-board core growth in fee income and the effect of acquisitions.

• Revenue grew at more than twice the pace of expenses.

• Merger savings and expense discipline drove improvement in the overhead efficiency ratio to 59.78 percent.

• Credit quality continued to be exceptional with annualized net charge-offs of 0.10 percent of average loans and total nonperforming assets at a record low 0.37 percent of loans, foreclosed properties and loans held for sale.

• Solid sales activity, good progress in merger integration, and continued leadership in customer satisfaction and loyalty generated record results.

Earnings Highlights

	Three Months Ended
(In millions, except per share data)	September 30, 2005				June 30, 2005		September 30, 2004
	Amount			EPS	Amount	EPS	Amount	EPS
Earnings
Net income (GAAP)	$	1,665		1.06	1,650	1.04	1,263	0.96
Net merger-related expenses		51		0.03	48	0.03	55	0.04
Earnings excluding net merger-related expenses	$	1,716		1.09	1,698	1.07	1,318	1.00
Financial ratios
Return on average common stockholders’ equity		13.95	%		14.04		15.12
Net interest margin (a)		3.20			3.23		3.36
Fee and other income as % of total revenue (a)		48.40			46.60		46.21
Overhead efficiency ratio (a)		59.78	%		59.29		65.20
Capital adequacy (b)
Tier 1 capital ratio		7.40	%		7.85		8.34
Total capital ratio		10.75			11.25		11.22
Leverage ratio		5.98	%		6.10		6.21
Asset quality
Allowance for loan losses as % of nonaccrual and restructured loans		347	%		332		291
Allowance for loan losses as % of loans, net		1.13			1.18		1.33
Allowance for credit losses as % of loans, net (c)		1.20			1.25		1.41
Net charge-offs as % of average loans, net		0.10			0.09		0.15
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.37	%		0.44		0.50

(a) Tax-equivalent.

(b) The third quarter of 2005 is based on estimates.

(c) The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments.

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 2

CHARLOTTE, N.C. — Wachovia Corp. (NYSE:WB) today reported record net income of $1.67 billion, or a record $1.06 per share, in the third quarter of 2005 compared with $1.26 billion, or 96 cents per share, in the third quarter of 2004.

Excluding after-tax net merger-related expenses of 3 cents per share in the third quarter of 2005 and 4 cents in the third quarter of 2004, third quarter 2005 earnings were $1.72 billion, or a record $1.09 per share, compared with $1.32 billion, or $1.00 per share, in the third quarter of 2004.

“Our record results reflect solid execution on our revenue strategies and merger integration savings, as well as improving efficiency,” said Ken Thompson, Wachovia chairman and chief executive officer. “With 10 percent earnings growth, our diversified business model and unwavering customer focus are clearly serving us well even as our industry faces pressure on profit margins and rising funding costs. We’re extremely proud of the way our employees have maintained their focus on our No. 1 priority: serving our customers – which is crucial as we complete the integration of the former SouthTrust branches this quarter. And we’ve all been inspired and heartened by our employees’ efforts to help their customers and their colleagues in the wake of the recent hurricanes – from making sure each employee was located and safe, to giving up vacation time to volunteer for relief work, to stepping up with cash donations. Their spirit and dedication give me great confidence in our ability to achieve Wachovia’s goals for continued strong growth.”

Wachovia Corporation

	Three Months Ended
(In millions)	September 30, 2005		June 30, 2005	September 30, 2004
Total revenue (Tax-equivalent)	$	6,698	6,388	5,629
Provision for credit losses		82	50	43
Noninterest expense		4,004	3,788	3,671
Net income		1,665	1,650	1,263
Average loans, net		228,960	223,881	168,552
Average core deposits	$	280,748	275,338	232,989

In the third quarter of 2005 compared with the third quarter of 2004, Wachovia:

• Increased revenue 19 percent. Revenue growth reflected strong sales production as well as a larger balance sheet. These results include the impact of the acquisitions of SouthTrust Corporation on November 1, 2004, and the Palmer & Cay, Inc., insurance brokerage firm on May 6, 2005.

• Grew net interest income 14 percent, reflecting higher loans and deposits, largely related to SouthTrust. Middle-market lending led commercial loan growth while consumer loans were led by real estate-secured lending. The deposit mix continued to shift, with core deposit growth driven by certificates of deposit and money market deposits.

• Generated 25 percent fee and other income growth, generally across the board, with improved service charges and banking fees, higher brokerage and insurance commissions, and solid investment banking fees. Trading

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 3

rebounded and principal investing results were strong, although down from a stronger third quarter a year ago. Securities gains were modest.

• Achieved merger and other expense efficiencies, limiting noninterest expense growth to 9 percent.

• Recorded a higher provision for credit losses of $82 million. Net charge-offs were $59 million, or an annualized 0.10 percent of average net loans. Total nonperforming assets including loans held for sale were $955 million, or 0.37 percent of loans, foreclosed properties and loans held for sale at September 30, 2005.

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 on which Wachovia manages and allocates capital to its business segments. Pages 13 and 14 include a reconciliation of segment results to Wachovia’s consolidated results of operations in accordance with GAAP.

General Bank Highlights

	Three Months Ended
(In millions)	September 30, 2005			June 30, 2005	September 30, 2004
Total revenue (Tax-equivalent)	$	3,250		3,145	2,629
Provision for credit losses		77		68	74
Noninterest expense		1,584		1,514	1,362
Segment earnings	$	1,006		989	760
Cash overhead efficiency ratio (Tax-equivalent)		48.74	%	48.16	51.80
Average loans, net	$	163,801		161,774	124,687
Average core deposits		208,718		205,814	170,188
Economic capital, average	$	7,019		6,981	5,123

General Bank

The General Bank includes retail, small business and commercial customers. Results include the impact of the fourth quarter 2004 acquisition of SouthTrust. The third quarter of 2005 compared with the third quarter of 2004 included:

• 24 percent revenue growth driven by higher net interest income and fee and other income, largely due to SouthTrust. Growth also reflected increased debit card interchange fees, mortgage banking income and origination fees.

• Strength in low-cost core deposits and higher commercial and consumer loans drove the increase in net interest income. Net new retail checking accounts increased by 150,000 in the third quarter of 2005, compared with an increase of 126,000 in the prior year third quarter.

• 26 percent growth in fee and other income generated by higher volume largely reflecting the addition of SouthTrust. In addition, strong debit card interchange income and retail service charges offset continued weakness in commercial service charges related to higher earnings credit rates on commercial customer balances.

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 4

• 16 percent growth in noninterest expense due to SouthTrust. Merger efficiencies and expense management offset investment spending to drive a 306 basis point improvement in the overhead efficiency ratio to 48.74 percent.

Capital Management Highlights

	Three Months Ended
(In millions)	September 30, 2005			June 30, 2005	September 30, 2004
Total revenue (Tax-equivalent)	$	1,360		1,333	1,266
Provision for credit losses		—		—	—
Noninterest expense		1,111		1,089	1,094
Segment earnings	$	156		155	110
Cash overhead efficiency ratio (Tax-equivalent)		81.86	%	81.57	86.39
Average loans, net	$	694		688	643
Average core deposits		30,700		30,846	29,547
Economic capital, average	$	1,399		1,393	1,312

Capital Management

Capital Management includes retail brokerage services and asset management. The third quarter of 2005 compared with the third quarter of 2004 included:

• 7 percent revenue growth on 32 percent growth in brokerage managed account assets to a record $99.7 billion, generating solid growth in recurring income, and improved retail brokerage transaction activity.

• Net interest income growth of 10 percent largely due to improved deposit pricing.

• Expense growth of 2 percent on higher brokerage commissions partially offset by efficiencies gained from the completed brokerage integration led to a 453 basis point improvement in the overhead efficiency ratio to 81.86 percent.

• Total assets under management of $256.5 billion at September 30, 2005, grew modestly from December 31, 2004. Equity assets reached a record $82.7 billion, led by positive equity mutual fund sales and improved equity markets. Total brokerage client assets grew 5 percent from year-end 2004 to a record $683.1 billion at September 30, 2005.

Wealth Management Highlights

	Three Months Ended
(In millions)	September 30, 2005			June 30, 2005	September 30, 2004
Total revenue (Tax-equivalent)	$	339		327	274
Provision for credit losses		6		—	(1	)
Noninterest expense		235		220	191
Segment earnings	$	63		67	53
Cash overhead efficiency ratio (Tax-equivalent)		68.99	%	67.34	69.93
Average loans, net	$	14,180		13,595	11,204
Average core deposits		13,224		13,198	12,171
Economic capital, average	$	528		512	447

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. Results include

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 5

the impact of the May 6, 2005, acquisition of Palmer & Cay, Inc., an insurance brokerage firm. The third quarter of 2005 compared with the third quarter of 2004 included:

• Record revenue driven by 34 percent growth in fee and other income and a 14 percent increase in net interest income.

• Net interest income growth fueled by a 27 percent increase in average loans and a 9 percent increase in average core deposits.

• Fee and other income included the full quarter impact of the Palmer & Cay acquisition, as well as improved trust and investment management fees due to higher assets under administration in improving markets.

• Higher provision expense of $6 million. In addition, noninterest expense growth reflected the impact of the Palmer & Cay acquisition and higher incentives related to revenue growth.

Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	September 30, 2005			June 30, 2005		September 30, 2004
Total revenue (Tax-equivalent)	$	1,515		1,272		1,340
Provision for credit losses		(3	)	(8	)	(15	)
Noninterest expense		809		711		682
Segment earnings	$	446		357		426
Cash overhead efficiency ratio (Tax-equivalent)		53.39	%	55.86		50.86
Average loans, net	$	38,783		37,872		32,854
Average core deposits		24,797		22,495		18,597
Economic capital, average	$	5,603		5,486		4,603

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Third quarter 2005 results compared with the third quarter of 2004 included:

• 13 percent revenue growth reflecting a 29 percent increase in fee and other income offsetting a 6 percent decline in net interest income.

• Net interest income declined due primarily to a change in the mix of trading assets, which lowered the overall spread in the trading portfolio, and to runoff in a leasing portfolio, partially offset by the addition of SouthTrust.

• Fee income rose 29 percent with record results in advisory and underwriting, driven by strong merger and acquisition advisory activity, structured products and high yield originations. A recovery in trading profits from third quarter 2004 trading losses also drove the increase.

• A 19 percent increase in noninterest expense due primarily to higher variable compensation and increased strategic hiring in key positions resulted in a higher overhead efficiency ratio.

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 6

• Strong core deposit growth primarily from higher commercial mortgage servicing and international correspondent banking, and increased loans primarily reflecting higher large corporate loans and the addition of SouthTrust.

• Economic capital usage increased due to higher loan balances and an increased expense base.

***

Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with banking operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $532.4 billion, market capitalization of $73.9 billion and stockholders’ equity of $46.8 billion at September 30, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 13 million household and business relationships primarily through 3,138 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 702 offices in 49 states and five Latin American countries. The Corporate and Investment Bank serves clients in selected industries nationwide. Global services are offered through 40 offices around the world. Online banking and brokerage products and services also are available through Wachovia.com.

Forward-Looking Statements

This news release contains 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 October 17, 2005.

Explanation of Wachovia’s Use of Certain Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this news release includes certain non-GAAP financial measures, including those presented on page 1 and on page 10 under the captions “Earnings Excluding Merger-Related and Restructuring Expenses” and “Earnings Excluding Merger-Related and Restructuring Expenses, and Other Intangible Amortization”, and which are reconciled to GAAP financial measures on pages 21 and 22. In addition, in this news release certain designated net interest income amounts are presented on a tax-equivalent basis, including the calculation of the overhead efficiency ratio.

Wachovia believes these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the company, its business and performance trends and facilitates comparisons with the performance of others in the financial services industry. Specifically, Wachovia believes the exclusion of merger-related and restructuring expenses and the cumulative effect of a change in accounting principle permits evaluation and a comparison of results for on-going business operations, and it is on this basis that Wachovia’s management internally assesses the company’s performance. Those non-operating items are excluded from Wachovia’s segment measures used internally to evaluate segment performance in accordance with GAAP because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments. In addition, because of the significant amount of deposit base intangible amortization, Wachovia believes the exclusion of this expense provides investors with consistent and meaningful comparisons to other financial services firms. Wachovia’s management makes recommendations to its board of directors about dividend payments based on reported earnings excluding merger-related and restructuring expenses, other intangible amortization and the cumulative effect of a change in accounting principle, and has communicated certain dividend payout ratio goals to investors on this basis. Management believes this payout ratio is useful to investors because it provides investors with a better understanding of and permits investors to monitor Wachovia’s dividend payout policy. Wachovia also believes the presentation of net interest income on a tax-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry standards. Wachovia operates one of the largest retail brokerage businesses in our industry, and we have presented an overhead efficiency ratio excluding these brokerage services, which management believes is useful to investors in comparing the performance of our banking business with other banking companies.

Although Wachovia believes the above non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures.

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WACHOVIA EARNS $1.06 PER SHARE IN 3^rd QUARTER 2005, UP 10%/page 7

Additional Information

The proposed acquisition by Wachovia of Westcorp and WFS Financial Inc will be submitted to Westcorp’s and WFS Financial’s shareholders for their consideration. Wachovia will file a registration statement, which will include a proxy statement/prospectus, Westcorp and WFS Financial will file a proxy statement, and each of Wachovia, Westcorp and WFS Financial may file other relevant documents concerning the proposed mergers with the SEC. Shareholders are urged to read the registration statement and the proxy statement/prospectus regarding the proposed transaction when they become available and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they will contain important information. Shareholders will be able to obtain a free copy of the proxy statement/prospectus, as well as other filings containing information about Wachovia, Westcorp and WFS Financial, at the SEC’s website (http://www.sec.gov). Shareholders will also be able to obtain these documents, free of charge, at Wachovia’s website (http://www.wachovia.com) under the tab “Inside Wachovia – Investor Relations” and then under the heading “Financial Reports – SEC Filings”. Copies of the proxy statement/prospectus and the SEC filings that will be incorporated by reference in the proxy statement/prospectus can also be obtained, free of charge, by directing a request to Wachovia Corporation, Investor Relations, One Wachovia Center, 301 South College Street, Charlotte, NC 28288-0206, (704)-374-6782; or to Westcorp or WFS Financial, Attn: Investor Relations, 23 Pasteur, Irvine, CA 92618, (949)-727-1002.

Wachovia, Westcorp and WFS Financial and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of Westcorp and/or WFS Financial in connection with the proposed transaction. Information about the directors and executive officers of Wachovia is set forth in the proxy statement for Wachovia’s 2005 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 14, 2005. Information about the directors and executive officers of Westcorp is set forth in the proxy statement for Westcorp’s 2005 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 28, 2005, and information about the directors and executive officers of WFS Financial is set forth in the proxy statement for WFS Financial’s 2005 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 28, 2005. Additional information regarding the interests of those participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.

Earnings Conference Call and Supplemental Materials

Wachovia CEO Ken Thompson and CFO Bob Kelly will review Wachovia’s third quarter 2005 results in a conference call and audio webcast beginning at 9 a.m. Eastern Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to third quarter results, which also include a reconciliation of any non-GAAP measures to Wachovia’s reported financials, 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 Third 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 1-888-357-9787 for U.S. callers or 1-706-679-7342 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: Wachovia.

Replay: Monday, October 17, at 12:30 p.m. ET and continuing through 5 p.m. ET Friday, November 18. Replay telephone number is 1-706-645-9291; access code 9323539.

***

Investors seeking further information should contact the Investor Relations team: Alice Lehman at 704-374-4139, Ellen Taylor at 704-383-1381 or Jeff Richardson at 704-383-8250. Media seeking further information should contact the Corporate Media Relations team: Mary Eshet at 704-383-7777 or Christy Phillips at 704-383-8178.

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL TABLES

TABLE OF CONTENTS

	PAGE
Financial Highlights—Five Quarters Ended September 30, 2005	9
Other Financial Data—Five Quarters Ended September 30, 2005	10
Consolidated Statements of Income—Five Quarters Ended September 30, 2005	11
Consolidated Statements of Income—Nine Months Ended September 30, 2005 and 2004	12
Business Segments—Three Months Ended September 30, 2005 and June 30, 2005	13
Business Segments—Three Months Ended September 30, 2004	14
Loans—On-Balance Sheet, and Managed and Servicing Portfolios—Five Quarters Ended September 30, 2005	15
Allowance for Loan Losses and Nonperforming Assets—Five Quarters Ended September 30, 2005	16
Consolidated Balance Sheets—Five Quarters Ended September 30, 2005	17
Net Interest Income Summaries—Five Quarters Ended September 30, 2005	18-19
Net Interest Income Summaries—Nine Months Ended September 30, 2005 and 2004	20
Reconciliation of Certain Non-GAAP Financial Measures—Five Quarters Ended September 30, 2005	21-22

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2005					2004
(Dollars in millions, except per share data)	Third Quarter			Second Quarter	First Quarter	Fourth Quarter	Third Quarter
EARNINGS SUMMARY
Net interest income (GAAP)	$	3,403		3,358	3,413	3,297	2,965
Tax-equivalent adjustment		53		53	61	60	63
Net interest income (Tax-equivalent)		3,456		3,411	3,474	3,357	3,028
Fee and other income		3,242		2,977	2,995	2,804	2,601
Total revenue (Tax-equivalent)		6,698		6,388	6,469	6,161	5,629
Provision for credit losses		82		50	36	109	43
Other noninterest expense		3,820		3,591	3,696	3,605	3,445
Merger-related and restructuring expenses		83		90	61	116	127
Other intangible amortization		101		107	115	113	99
Total noninterest expense		4,004		3,788	3,872	3,834	3,671
Minority interest in income of consolidated subsidiaries		104		71	64	54	28
Income before income taxes (Tax-equivalent)		2,508		2,479	2,497	2,164	1,887
Tax-equivalent adjustment		53		53	61	60	63
Income taxes		790		776	815	656	561
Net income	$	1,665		1,650	1,621	1,448	1,263
Diluted earnings per common share	$	1.06		1.04	1.01	0.95	0.96
Return on average common stockholders’ equity		13.95	%	14.04	13.92	13.50	15.12
Return on average assets		1.29		1.31	1.31	1.22	1.18
Overhead efficiency ratio		59.78	%	59.29	59.86	62.23	65.20
Operating leverage	$	92		5	269	368	(55	)
ASSET QUALITY
Allowance for loan losses as % of loans, net		1.13	%	1.18	1.20	1.23	1.33
Allowance for loan losses as % of nonperforming assets		303		284	262	251	258
Allowance for credit losses as % of loans, net		1.20		1.25	1.27	1.30	1.41
Net charge-offs as % of average loans, net		0.10		0.09	0.08	0.23	0.15
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.37	%	0.44	0.50	0.53	0.50
CAPITAL ADEQUACY (a)
Tier I capital ratio		7.40	%	7.85	7.91	8.01	8.34
Total capital ratio		10.75		11.25	11.40	11.11	11.22
Leverage ratio		5.98	%	6.10	5.99	6.38	6.21
OTHER DATA
Average diluted common shares (In millions)		1,575		1,591	1,603	1,518	1,316
Actual common shares (In millions)		1,553		1,577	1,576	1,588	1,308
Dividends paid per common share	$	0.51		0.46	0.46	0.46	0.40
Dividend payout ratio on common shares		48.11	%	44.23	45.54	48.42	41.67
Book value per common share	$	30.10		30.37	29.48	29.79	25.92
Common stock price		47.59		49.60	50.91	52.60	46.95
Market capitalization	$	73,930		78,236	80,256	83,537	61,395
Common stock price to book value		158	%	163	173	177	181
FTE employees		92,907		93,385	93,669	96,030	84,503
Total financial centers/brokerage offices		3,840		3,825	3,970	3,971	3,215
ATMs		5,119		5,089	5,234	5,321	4,395

(a) The third quarter of 2005 is based on estimates.

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WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2005					2004
(In millions)	Third Quarter			Second Quarter	First Quarter	Fourth Quarter	Third Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES (a) (b)
Return on average common stockholders’ equity		14.36	%	14.43	14.19	13.95	15.72
Return on average assets		1.33		1.35	1.34	1.26	1.24
Overhead efficiency ratio		58.55		57.87	58.92	60.34	62.96
Overhead efficiency ratio excluding brokerage		54.04	%	52.85	54.12	54.99	57.54
Operating leverage	$	84		35	214	358	(30	)
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, AND OTHER INTANGIBLE AMORTIZATION (a) (b) (c)
Dividend payout ratio on common shares		45.13	%	41.44	42.59	44.23	38.10
Return on average tangible common stockholders’ equity		29.14		29.50	28.86	26.59	26.28
Return on average tangible assets		1.45		1.48	1.46	1.38	1.33
Overhead efficiency ratio		57.06		56.19	57.15	58.50	61.20
Overhead efficiency ratio excluding brokerage		52.27	%	50.85	52.01	52.77	55.42
Operating leverage	$	77		27	215	373	(38	)
OTHER FINANCIAL DATA
Net interest margin		3.20	%	3.23	3.31	3.37	3.36
Fee and other income as % of total revenue		48.40		46.60	46.30	45.50	46.21
Effective income tax rate		32.21		32.02	33.42	31.20	30.71
Tax rate (Tax-equivalent) (d)		33.63	%	33.50	35.05	33.14	33.04
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	132,637		131,195	127,703	116,599	96,860
Consumer loans, net		96,323		92,686	93,472	79,928	71,692
Loans, net		228,960		223,881	221,175	196,527	168,552
Earning assets		431,346		422,534	421,047	397,490	359,909
Total assets		511,567		503,361	500,486	472,431	424,399
Core deposits		280,748		275,338	271,095	260,627	232,989
Total deposits		306,371		297,194	294,674	280,051	248,245
Interest-bearing liabilities		375,782		367,828	365,516	343,489	314,310
Stockholders’ equity	$	47,328		47,114	47,231	42,644	33,246
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	141,063		136,115	134,696	131,196	102,524
Consumer loans, net		98,670		94,172	92,570	92,644	71,980
Loans, net		239,733		230,287	227,266	223,840	174,504
Goodwill and other intangible assets
Goodwill		21,857		21,861	21,635	21,526	11,481
Deposit base		779		861	951	1,048	484
Customer relationships		416		427	387	443	372
Tradename		90		90	90	90	90
Total assets		532,381		511,840	506,833	493,324	436,698
Core deposits		287,732		275,281	273,883	274,588	237,315
Total deposits		320,439		299,910	297,657	295,053	252,981
Stockholders’ equity	$	46,757		47,904	46,467	47,317	33,897

(a) These financial measures are calculated by excluding from GAAP computed net income presented on page 9, $51 million, $48 million, $31 million, $53 million and $55 million in the third, second and first quarters of 2005, and in the fourth and third quarters of 2004, respectively, of after-tax net merger-related and restructuring expenses.

(b) See page 9 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 computed net income presented on page 9, $63 million, $69 million, $72 million, $74 million and $62 million in the third, second and first quarters of 2005, and in the fourth and third quarters of 2004, respectively, of deposit base and other intangible amortization.

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

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2005					2004
(In millions, except per share data)	Third Quarter		Second Quarter	First Quarter		Fourth Quarter		Third Quarter
INTEREST INCOME
Interest and fees on loans	$	3,588	3,362	3,174		2,814		2,393
Interest and dividends on securities		1,434	1,437	1,426		1,232		1,156
Trading account interest		403	354	378		388		325
Other interest income		635	549	475		535		427
Total interest income		6,060	5,702	5,453		4,969		4,301
INTEREST EXPENSE
Interest on deposits		1,408	1,221	1,050		860		691
Interest on short-term borrowings		742	670	601		492		396
Interest on long-term debt		507	453	389		320		249
Total interest expense		2,657	2,344	2,040		1,672		1,336
Net interest income		3,403	3,358	3,413		3,297		2,965
Provision for credit losses		82	50	36		109		43
Net interest income after provision for credit losses		3,321	3,308	3,377		3,188		2,922
FEE AND OTHER INCOME
Service charges		555	528	513		519		499
Other banking fees		385	355	351		343		313
Commissions		615	603	599		620		568
Fiduciary and asset management fees		732	728	714		700		668
Advisory, underwriting and other investment banking fees		294	257	233		271		237
Trading account profits (losses)		146	17	99		(16	)	(60	)
Principal investing		166	41	59		7		201
Securities gains (losses)		29	136	(2	)	23		(71	)
Other income		320	312	429		337		246
Total fee and other income		3,242	2,977	2,995		2,804		2,601
NONINTEREST EXPENSE
Salaries and employee benefits		2,476	2,324	2,401		2,239		2,118
Occupancy		260	271	250		260		234
Equipment		276	269	265		272		268
Advertising		50	48	44		51		46
Communications and supplies		158	158	162		163		149
Professional and consulting fees		167	155	127		179		134
Other intangible amortization		101	107	115		113		99
Merger-related and restructuring expenses		83	90	61		116		127
Sundry expense		433	366	447		441		496
Total noninterest expense		4,004	3,788	3,872		3,834		3,671
Minority interest in income of consolidated subsidiaries		104	71	64		54		28
Income before income taxes		2,455	2,426	2,436		2,104		1,824
Income taxes		790	776	815		656		561
Net income	$	1,665	1,650	1,621		1,448		1,263
PER COMMON SHARE DATA
Basic earnings	$	1.07	1.05	1.03		0.97		0.97
Diluted earnings		1.06	1.04	1.01		0.95		0.96
Cash dividends	$	0.51	0.46	0.46		0.46		0.40
AVERAGE COMMON SHARES
Basic		1,549	1,564	1,571		1,487		1,296
Diluted		1,575	1,591	1,603		1,518		1,316

PAGE 12

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Nine Months Ended September 30,
(In millions, except per share data)	2005		2004
INTEREST INCOME
Interest and fees on loans	$	10,124	7,044
Interest and dividends on securities		4,297	3,407
Trading account interest		1,135	759
Other interest income		1,659	1,109
Total interest income		17,215	12,319
INTEREST EXPENSE
Interest on deposits		3,679	1,993
Interest on short-term borrowings		2,013	1,011
Interest on long-term debt		1,349	651
Total interest expense		7,041	3,655
Net interest income		10,174	8,664
Provision for credit losses		168	148
Net interest income after provision for credit losses		10,006	8,516
FEE AND OTHER INCOME
Service charges		1,596	1,459
Other banking fees		1,091	883
Commissions		1,817	1,981
Fiduciary and asset management fees		2,174	2,072
Advisory, underwriting and other investment banking fees		784	640
Trading account profits		262	51
Principal investing		266	254
Securities gains (losses)		163	(33	)
Other income		1,061	668
Total fee and other income		9,214	7,975
NONINTEREST EXPENSE
Salaries and employee benefits		7,201	6,464
Occupancy		781	687
Equipment		810	780
Advertising		142	142
Communications and supplies		478	457
Professional and consulting fees		449	369
Other intangible amortization		323	318
Merger-related and restructuring expenses		234	328
Sundry expense		1,246	1,287
Total noninterest expense		11,664	10,832
Minority interest in income of consolidated subsidiaries		239	130
Income before income taxes		7,317	5,529
Income taxes		2,381	1,763
Net income	$	4,936	3,766
PER COMMON SHARE DATA
Basic earnings	$	3.16	2.90
Diluted earnings		3.10	2.85
Cash dividends	$	1.43	1.20
AVERAGE COMMON SHARES
Basic		1,561	1,299
Diluted		1,590	1,321

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended September 30, 2005
(In millions)	General Bank		Capital Management		Wealth Management	Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	2,434	171		147	549		155		(53	)	3,403
Fee and other income		760	1,201		191	1,011		79		—		3,242
Intersegment revenue		56	(12	)	1	(45	)	—		—		—
Total revenue (a)		3,250	1,360		339	1,515		234		(53	)	6,645
Provision for credit losses		77	—		6	(3	)	2		—		82
Noninterest expense		1,584	1,111		235	809		182		83		4,004
Minority interest		—	—		—	—		105		(1	)	104
Income taxes (benefits)		573	92		35	242		(121	)	(31	)	790
Tax-equivalent adjustment		10	1		—	21		21		(53	)	—
Net income	$	1,006	156		63	446		45		(51	)	1,665

	Three Months Ended June 30, 2005
(In millions)	General Bank		Capital Management		Wealth Management	Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	2,409	157		143	522		180		(53	)	3,358
Fee and other income		687	1,188		183	789		130		—		2,977
Intersegment revenue		49	(12	)	1	(39	)	1		—		—
Total revenue (a)		3,145	1,333		327	1,272		311		(53	)	6,335
Provision for credit losses		68	—		—	(8	)	(10	)	—		50
Noninterest expense		1,514	1,089		220	711		164		90		3,788
Minority interest		—	—		—	—		85		(14	)	71
Income taxes (benefits)		564	89		40	185		(74	)	(28	)	776
Tax-equivalent adjustment		10	—		—	27		16		(53	)	—
Net income	$	989	155		67	357		130		(48	)	1,650

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended September 30, 2004
(In millions)	General Bank		Capital Management		Wealth Management		Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	1,985	155		129		587		172		(63	)	2,965
Fee and other income		601	1,124		143		786		(53	)	—		2,601
Intersegment revenue		43	(13	)	2		(33	)	1		—		—
Total revenue (a)		2,629	1,266		274		1,340		120		(63	)	5,566
Provision for credit losses		74	—		(1	)	(15	)	(15	)	—		43
Noninterest expense		1,362	1,094		191		682		215		127		3,671
Minority interest		—	—		—		—		65		(37	)	28
Income taxes (benefits)		423	62		31		217		(137	)	(35	)	561
Tax-equivalent adjustment		10	—		—		30		23		(63	)	—
Net income (loss)	$	760	110		53		426		(31	)	(55	)	1,263

(a) Tax-equivalent.

(b) The tax-equivalent amounts are eliminated herein in order for “Total” amounts to agree with amounts appearing in theConsolidated Statements of Income.

PAGE 15

WACHOVIA CORPORATION AND SUBSIDIARIES

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

(Unaudited)

	2005				2004
(In millions)	Third Quarter		Second Quarter	First Quarter	Fourth Quarter	Third Quarter
ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL
Commercial, financial and agricultural	$	83,241	80,528	78,669	75,095	59,271
Real estate—construction and other		13,653	13,216	12,713	12,673	6,985
Real estate—mortgage		19,864	19,724	20,707	20,742	14,771
Lease financing		25,022	24,836	25,013	25,000	24,042
Foreign		8,888	7,549	7,504	7,716	7,402
Total commercial		150,668	145,853	144,606	141,226	112,471
CONSUMER
Real estate secured		80,128	76,213	74,631	74,161	54,965
Student loans		11,458	10,828	10,795	10,468	10,207
Installment loans		6,745	6,783	6,808	7,684	6,410
Total consumer		98,331	93,824	92,234	92,313	71,582
Total loans		248,999	239,677	236,840	233,539	184,053
Unearned income		9,266	9,390	9,574	9,699	9,549
Loans, net (On-balance sheet)	$	239,733	230,287	227,266	223,840	174,504
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	150,668	145,853	144,606	141,226	112,471
Securitized loans—off-balance sheet		1,263	1,293	1,402	1,734	1,823
Loans held for sale		4,039	1,783	1,117	2,112	1,993
Total commercial		155,970	148,929	147,125	145,072	116,287
CONSUMER
Real estate secured
On-balance sheet loan portfolio		80,128	76,213	74,631	74,161	54,965
Securitized loans—off-balance sheet		9,255	10,199	6,979	7,570	6,567
Securitized loans included in securities		4,218	4,426	4,626	4,838	8,909
Loans held for sale		12,660	11,923	11,925	10,452	15,602
Total real estate secured		106,261	102,761	98,161	97,021	86,043
Student
On-balance sheet loan portfolio		11,458	10,828	10,795	10,468	10,207
Securitized loans—off-balance sheet		341	382	423	463	554
Loans held for sale		—	16	65	128	160
Total student		11,799	11,226	11,283	11,059	10,921
Installment
On-balance sheet loan portfolio		6,745	6,783	6,808	7,684	6,410
Securitized loans—off-balance sheet		2,228	2,662	1,930	2,184	2,489
Securitized loans included in securities		146	163	155	195	195
Loans held for sale		1,339	809	1,066	296	—
Total installment		10,458	10,417	9,959	10,359	9,094
Total consumer		128,518	124,404	119,403	118,439	106,058
Total managed portfolio	$	284,488	273,333	266,528	263,511	222,345
SERVICING PORTFOLIO (b)
Commercial	$	158,650	152,923	140,493	136,578	130,313
Consumer	$	57,391	53,261	46,552	40,053	31,549

(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 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 LOAN LOSSES AND NONPERFORMING ASSETS

(Unaudited)

	2005							2004
(In millions)	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
ALLOWANCE FOR LOAN LOSSES (a)
Balance, beginning of period	$	2,718		2,732		2,757		2,324		2,331
Provision for credit losses		74		48		33		95		63
Provision for credit losses relating to loans transferred to loans held for sale or sold		12		—		1		(6	)	(8	)
Balance of acquired entities at purchase date		—		—		—		510		—
Allowance relating to loans acquired, transferred to loans held for sale or sold		(26	)	(11	)	(13	)	(51	)	3
Net charge-offs		(59	)	(51	)	(46	)	(115	)	(65	)
Balance, end of period	$	2,719		2,718		2,732		2,757		2,324
as % of loans, net		1.13	%	1.18		1.20		1.23		1.33
as % of nonaccrual and restructured loans (b)		347	%	332		300		289		291
as % of nonperforming assets (b)		303	%	284		262		251		258
LOAN LOSSES
Commercial, financial and agricultural	$	43		35		26		82		50
Commercial real estate—construction and mortgage		9		—		1		4		3
Consumer		71		75		67		74		70
Total loan losses		123		110		94		160		123
LOAN RECOVERIES
Commercial, financial and agricultural		35		25		26		27		41
Commercial real estate—construction and mortgage		2		1		—		—		1
Consumer		27		33		22		18		16
Total loan recoveries		64		59		48		45		58
Net charge-offs	$	59		51		46		115		65
Commercial loans net charge-offs as % of average commercial loans, net (c)		0.05	%	0.03		—		0.20		0.05
Consumer loans net charge-offs as % of average consumer loans, net (c)		0.18		0.18		0.19		0.28		0.30
Total net charge-offs as % of average loans, net (c)		0.10	%	0.09		0.08		0.23		0.15
NONPERFORMING ASSETS
Nonaccrual loans
Commercial, financial and agricultural	$	445		497		527		585		534
Commercial real estate—construction and mortgage		120		88		131		127		42
Consumer real estate secured		209		221		239		230		211
Installment loans		10		13		13		13		11
Total nonaccrual loans		784		819		910		955		798
Foreclosed properties (d)		112		138		132		145		101
Total nonperforming assets	$	896		957		1,042		1,100		899
Nonperforming loans included in loans held for sale (e)	$	59		111		159		157		57
Nonperforming assets included in loans and in loans held for sale	$	955		1,068		1,201		1,257		956
as % of loans, net, and foreclosed properties (b)		0.37	%	0.42		0.46		0.49		0.51
as % of loans, net, foreclosed properties and loans held for sale (e)		0.37	%	0.44		0.50		0.53		0.50
Accruing loans past due 90 days	$	525		521		510		522		428

(a) At September 30, 2005, the reserve for unfunded lending commitments was $154 million.

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

(c) Annualized.

(d) Restructured loans are not significant.

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

PAGE 17

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2005							2004
(In millions, except per share data)	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
ASSETS
Cash and due from banks	$	12,976		12,464		12,043		11,714		10,355
Interest-bearing bank balances		2,492		2,852		1,285		4,441		7,664
Federal funds sold and securities purchased under resale agreements		27,083		22,528		24,899		22,436		30,629
Total cash and cash equivalents		42,551		37,844		38,227		38,591		48,648
Trading account assets		49,646		46,519		47,149		45,932		45,129
Securities		117,195		117,906		116,731		110,597		102,157
Loans, net of unearned income		239,733		230,287		227,266		223,840		174,504
Allowance for loan losses		(2,719	)	(2,718	)	(2,732	)	(2,757	)	(2,324	)
Loans, net		237,014		227,569		224,534		221,083		172,180
Loans held for sale		18,038		14,531		14,173		12,988		17,755
Premises and equipment		5,352		5,354		5,260		5,268		4,150
Due from customers on acceptances		882		826		826		718		563
Goodwill		21,857		21,861		21,635		21,526		11,481
Other intangible assets		1,285		1,378		1,428		1,581		946
Other assets		38,561		38,052		36,870		35,040		33,689
Total assets	$	532,381		511,840		506,833		493,324		436,698
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		68,402		63,079		61,626		64,197		52,524
Interest-bearing deposits		252,037		236,831		236,031		230,856		200,457
Total deposits		320,439		299,910		297,657		295,053		252,981
Short-term borrowings		78,184		75,726		73,401		63,406		67,589
Bank acceptances outstanding		932		859		866		755		570
Trading account liabilities		19,815		19,827		22,418		21,709		22,704
Other liabilities		16,504		15,750		15,281		15,507		14,838
Long-term debt		45,846		49,006		47,932		46,759		41,444
Total liabilities		481,720		461,078		457,555		443,189		400,126
Minority interest in net assets of consolidated subsidiaries		3,904		2,858		2,811		2,818		2,675
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at September 30, 2005		—		—		—		—		—
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.553 billion shares at September 30, 2005		5,178		5,258		5,255		5,294		4,359
Paid-in capital		30,821		31,038		30,976		31,120		18,095
Retained earnings		11,086		11,079		10,319		10,178		10,449
Accumulated other comprehensive income, net		(328	)	529		(83	)	725		994
Total stockholders’ equity		46,757		47,904		46,467		47,317		33,897
Total liabilities and stockholders’ equity	$	532,381		511,840		506,833		493,324		436,698

PAGE 18

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	THIRD QUARTER 2005						SECOND QUARTER 2005
(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	$	2,417		21	3.46	%	$	2,649		20	3.07	%
Federal funds sold and securities purchased under resale agreements		24,451		216	3.50			24,676		189	3.08
Trading account assets		33,720		423	5.01			31,879		377	4.73
Securities		114,902		1,461	5.08			115,006		1,469	5.11
Loans
Commercial
Commercial, financial and agricultural		81,488		1,184	5.77			80,213		1,084	5.42
Real estate—construction and other		13,322		201	5.96			12,885		177	5.53
Real estate—mortgage		19,684		302	6.09			20,204		288	5.71
Lease financing		9,979		178	7.15			10,252		183	7.11
Foreign		8,164		80	3.88			7,641		68	3.55
Total commercial		132,637		1,945	5.82			131,195		1,800	5.50
Consumer
Real estate secured		78,088		1,166	5.97			74,799		1,072	5.74
Student loans		11,267		144	5.07			10,995		129	4.72
Installment loans		6,968		124	7.04			6,892		115	6.75
Total consumer		96,323		1,434	5.94			92,686		1,316	5.69
Total loans		228,960		3,379	5.87			223,881		3,116	5.58
Loans held for sale		16,567		244	5.90			14,024		194	5.51
Other earning assets		10,329		138	5.27			10,419		125	4.84
Total earning assets excluding derivatives		431,346		5,882	5.43			422,534		5,490	5.20
Risk management derivatives (a)		—		231	0.21			—		265	0.26
Total earning assets including derivatives		431,346		6,113	5.64			422,534		5,755	5.46
Cash and due from banks		12,277						12,389
Other assets		67,944						68,438
Total assets	$	511,567					$	503,361
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		78,961		220	1.10			80,113		194	0.97
Money market accounts		97,746		529	2.15			94,990		455	1.92
Other consumer time		41,063		325	3.13			38,064		273	2.87
Foreign		15,285		123	3.18			11,857		81	2.75
Other time		10,338		109	4.21			9,999		78	3.09
Total interest-bearing deposits		243,393		1,306	2.13			235,023		1,081	1.84
Federal funds purchased and securities sold under repurchase agreements		56,426		460	3.24			53,984		375	2.79
Commercial paper		12,664		108	3.39			13,365		97	2.91
Securities sold short		9,040		77	3.38			10,648		92	3.49
Other short-term borrowings		6,471		29	1.80			6,694		30	1.82
Long-term debt		47,788		536	4.48			48,114		528	4.39
Total interest-bearing liabilities excluding derivatives		375,782		2,516	2.66			367,828		2,203	2.40
Risk management derivatives (a)		—		141	0.15			—		141	0.16
Total interest-bearing liabilities including derivatives		375,782		2,657	2.81			367,828		2,344	2.56
Noninterest-bearing deposits		62,978						62,171
Other liabilities		25,479						26,248
Stockholders’ equity		47,328						47,114
Total liabilities and stockholders’ equity	$	511,567					$	503,361
Interest income and rate earned—including derivatives			$	6,113	5.64	%			$	5,755	5.46	%
Interest expense and equivalent rate paid—including derivatives				2,657	2.44					2,344	2.23
Net interest income and margin—including derivatives			$	3,456	3.20	%			$	3,411	3.23	%

(a) 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.

PAGE 19

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

FIRST QUARTER 2005						FOURTH QUARTER 2004						THIRD QUARTER 2004
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
$	2,484		16	2.62	%	$	3,909		18	1.85	%	$	3,153		12	1.52	%
	24,272		153	2.55			24,722		123	1.99			26,419		96	1.44
	35,147		402	4.59			36,517		411	4.49			32,052		348	4.34
	114,961		1,477	5.15			103,879		1,297	5.00			101,493		1,237	4.88
	76,651		960	5.08			69,394		836	4.79			58,278		642	4.40
	12,608		156	5.01			10,537		120	4.53			6,683		67	4.02
	20,739		271	5.31			19,035		237	4.95			14,877		170	4.54
	10,513		182	6.94			10,185		180	7.07			9,692		178	7.33
	7,192		58	3.28			7,448		58	3.10			7,330		47	2.51
	127,703		1,627	5.16			116,599		1,431	4.88			96,860		1,104	4.54
	74,658		1,037	5.57			62,083		853	5.49			54,288		732	5.38
	11,003		120	4.41			10,560		107	4.04			10,145		97	3.80
	7,811		122	6.31			7,285		111	6.12			7,259		107	5.86
	93,472		1,279	5.49			79,928		1,071	5.35			71,692		936	5.21
	221,175		2,906	5.30			196,527		2,502	5.08			168,552		2,040	4.83
	12,869		166	5.19			21,405		261	4.89			17,119		186	4.34
	10,139		115	4.58			10,531		104	3.89			11,121		96	3.43
	421,047		5,235	5.00			397,490		4,716	4.74			359,909		4,015	4.45
	—		279	0.27			—		313	0.31			—		349	0.39
	421,047		5,514	5.27			397,490		5,029	5.05			359,909		4,364	4.84
	12,661						11,870						11,159
	66,778						63,071						53,331
$	500,486					$	472,431					$	424,399
	81,071		161	0.81			79,476		128	0.64			73,171		93	0.51
	93,477		357	1.55			90,382		271	1.19			81,525		197	0.96
	36,005		239	2.70			32,540		212	2.58			26,860		180	2.68
	10,996		61	2.26			9,486		46	1.92			7,453		27	1.42
	12,583		83	2.67			9,938		56	2.31			7,803		39	1.98
	234,132		901	1.56			221,822		713	1.28			196,812		536	1.08
	51,395		312	2.46			47,264		233	1.96			47,052		164	1.39
	13,553		82	2.45			11,840		58	1.94			12,065		43	1.42
	12,681		102	3.25			12,694		102	3.18			12,388		96	3.09
	6,370		26	1.63			5,859		19	1.33			6,042		15	0.91
	47,385		493	4.17			44,010		443	4.02			39,951		404	4.05
	365,516		1,916	2.12			343,489		1,568	1.82			314,310		1,258	1.60
	—		124	0.14			—		104	0.12			—		78	0.09
	365,516		2,040	2.26			343,489		1,672	1.94			314,310		1,336	1.69
	60,542						58,229						51,433
	27,197						28,069						25,410
	47,231						42,644						33,246
$	500,486					$	472,431					$	424,399
		$	5,514	5.27	%			$	5,029	5.05	%			$	4,364	4.84	%
			2,040	1.96					1,672	1.68					1,336	1.48
		$	3,474	3.31	%			$	3,357	3.37	%			$	3,028	3.36	%

PAGE 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	NINE MONTHS ENDED 2005						NINE MONTHS ENDED 2004
(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	$	2,516		57	3.05	%	$	3,467		33	1.27	%
Federal funds sold and securities purchased under resale agreements		24,467		558	3.05			25,013		219	1.17
Trading account assets		33,577		1,202	4.78			26,402		828	4.18
Securities		114,956		4,407	5.11			99,980		3,654	4.87
Loans
Commercial
Commercial, financial and agricultural		79,469		3,228	5.43			56,805		1,817	4.28
Real estate—construction and other		12,941		534	5.51			6,339		176	3.71
Real estate—mortgage		20,205		861	5.70			15,048		488	4.33
Lease financing		10,246		543	7.07			7,890		541	9.14
Foreign		7,669		206	3.59			7,043		129	2.44
Total commercial		130,530		5,372	5.50			93,125		3,151	4.52
Consumer
Real estate secured		75,861		3,275	5.76			52,525		2,128	5.40
Student loans		11,089		393	4.74			9,666		265	3.66
Installment loans		7,221		361	6.69			8,493		363	5.70
Total consumer		94,171		4,029	5.71			70,684		2,756	5.20
Total loans		224,701		9,401	5.59			163,809		5,907	4.81
Loans held for sale		14,500		604	5.56			15,168		478	4.20
Other earning assets		10,296		378	4.90			11,241		262	3.12
Total earning assets excluding derivatives		425,013		16,607	5.22			345,080		11,381	4.40
Risk management derivatives (a)		—		775	0.24			—		1,128	0.44
Total earning assets including derivatives		425,013		17,382	5.46			345,080		12,509	4.84
Cash and due from banks		12,441						11,123
Other assets		67,724						55,231
Total assets	$	505,178					$	411,434
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		80,041		575	0.96			69,594		241	0.46
Money market accounts		95,420		1,341	1.88			75,881		523	0.92
Other consumer time		38,395		837	2.91			26,881		545	2.71
Foreign		12,728		265	2.78			7,412		69	1.25
Other time		10,966		270	3.29			7,751		107	1.83
Total interest-bearing deposits		237,550		3,288	1.85			187,519		1,485	1.06
Federal funds purchased and securities sold under repurchase agreements		53,954		1,147	2.84			47,340		404	1.14
Commercial paper		13,191		287	2.91			12,099		105	1.16
Securities sold short		10,776		271	3.37			10,464		216	2.76
Other short-term borrowings		6,511		85	1.75			6,165		36	0.76
Long-term debt		47,764		1,557	4.35			38,359		1,146	3.99
Total interest-bearing liabilities excluding derivatives		369,746		6,635	2.40			301,946		3,392	1.50
Risk management derivatives (a)		—		406	0.14			—		263	0.12
Total interest-bearing liabilities including derivatives		369,746		7,041	2.54			301,946		3,655	1.62
Noninterest-bearing deposits		61,906						49,508
Other liabilities		26,301						27,152
Stockholders’ equity		47,225						32,828
Total liabilities and stockholders’ equity	$	505,178					$	411,434
Interest income and rate earned—including derivatives			$	17,382	5.46	%			$	12,509	4.84	%
Interest expense and equivalent rate paid—including derivatives				7,041	2.21					3,655	1.42
Net interest income and margin—including derivatives			$	10,341	3.25	%			$	8,854	3.42	%

(a) 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.

PAGE 21

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2005							2004
(In millions, except per share data)	*	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
NET INCOME
Net income(GAAP)	A	$	1,665		1,650		1,621		1,448		1,263
After tax merger-related and restructuring expenses(GAAP)			51		48		31		53		55
Net income, excluding after tax merger-related and restructuring expenses	B		1,716		1,698		1,652		1,501		1,318
After tax other intangible amortization(GAAP)			63		69		72		74		62
Net income, excluding after tax merger-related and restructuring expenses, and other intangible amortization	C	$	1,779		1,767		1,724		1,575		1,380
RETURN ON AVERAGE COMMON STOCKHOLDERS’ EQUITY
Average common stockholders’ equity(GAAP)	D	$	47,328		47,114		47,231		42,644		33,246
Merger-related and restructuring expenses(GAAP)			96		52		11		169		116
Average common stockholders’ equity, excluding merger-related and restructuring expenses	E		47,424		47,166		47,242		42,813		33,362
Average intangible assets(GAAP)	F		(23,195	)	(23,148	)	(23,020	)	(19,257	)	(12,473	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, and other intangible amortization	G	$	24,229		24,018		24,222		23,556		20,889
Return on average common stockholders’ equity
GAAP	A/D		13.95	%	14.04		13.92		13.50		15.12
Excluding merger-related and restructuring expenses	B/E		14.36		14.43		14.19		13.95		15.72
Return on average tangible common stockholders’ equity
GAAP	A/D+F		27.36		27.61		27.16		24.62		24.20
Excluding merger-related and restructuring expenses, and other intangible amortization	C/G		29.14	%	29.50		28.86		26.59		26.28
RETURN ON AVERAGE ASSETS
Average assets(GAAP)	H	$	511,567		503,361		500,486		472,431		424,399
Average intangible assets(GAAP)			(23,195	)	(23,148	)	(23,020	)	(19,257	)	(12,473	)
Average tangible assets(GAAP)	I		488,372		480,213		477,466		453,174		411,926
Average assets(GAAP)			511,567		503,361		500,486		472,431		424,399
Merger-related and restructuring expenses(GAAP)			96		52		11		169		116
Average assets, excluding merger-related andrestructuring expenses	J		511,663		503,413		500,497		472,600		424,515
Average intangible assets(GAAP)			(23,195	)	(23,148	)	(23,020	)	(19,257	)	(12,473	)
Average tangible assets, excluding merger-relatedand restructuring expenses	K	$	488,468		480,265		477,477		453,343		412,042
Return on average assets
GAAP	A/H		1.29	%	1.31		1.31		1.22		1.18
Excluding merger-related and restructuring expenses	B/J		1.33		1.35		1.34		1.26		1.24
Return on average tangible assets
GAAP	A/I		1.35		1.38		1.38		1.27		1.22
Excluding merger-related and restructuring expenses, and other intangible amortization	C/K		1.45	%	1.48		1.46		1.38		1.33

PAGE 22

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2005							2004
(In millions, except per share data)	*	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense(GAAP)	L	$	4,004		3,788		3,872		3,834		3,671
Merger-related and restructuring expenses(GAAP)			(83	)	(90	)	(61	)	(116	)	(127	)
Noninterest expense, excluding merger-related and restructuring expenses	M		3,921		3,698		3,811		3,718		3,544
Other intangible amortization(GAAP)			(101	)	(107	)	(115	)	(113	)	(99	)
Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization	N	$	3,820		3,591		3,696		3,605		3,445
Net interest income(GAAP)		$	3,403		3,358		3,413		3,297		2,965
Tax-equivalent adjustment			53		53		61		60		63
Net interest income (Tax-equivalent)			3,456		3,411		3,474		3,357		3,028
Fee and other income(GAAP)			3,242		2,977		2,995		2,804		2,601
Total	O	$	6,698		6,388		6,469		6,161		5,629
Retail Brokerage Services, excluding insurance
Noninterest expense(GAAP)	P	$	874		861		867		908		862
Net interest income(GAAP)		$	153		142		143		144		143
Tax-equivalent adjustment			1		—		—		1		—
Net interest income (Tax-equivalent)			154		142		143		145		143
Fee and other income(GAAP)			905		880		886		906		826
Total	Q	$	1,059		1,022		1,029		1,051		969
Overhead efficiency ratios
GAAP	L/O		59.78	%	59.29		59.86		62.23		65.20
Excluding merger-related and restructuring expenses	M/O		58.55		57.87		58.92		60.34		62.96
Excluding merger-related and restructuring expenses, and brokerage	M-P/O-Q		54.04		52.85		54.12		54.99		57.54
Excluding merger-related and restructuring expenses, and other intangible amortization	N/O		57.06		56.19		57.15		58.50		61.20
Excluding merger-related and restructuring expenses, other intangible amortization and brokerage	N-P/O-Q		52.27	%	50.85		52.01		52.77		55.42
OPERATING LEVERAGE
Operating leverage(GAAP)		$	92		5		269		368		(55	)
Merger-related and restructuring expenses(GAAP)			(8	)	30		(55	)	(10	)	25
Operating leverage, excluding merger-related and restructuring expenses			84		35		214		358		(30	)
Other intangible amortization(GAAP)			(7	)	(8	)	1		15		(8	)
Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization		$	77		27		215		373		(38	)
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	R	$	0.51		0.46		0.46		0.46		0.40
Diluted earnings per common share(GAAP)	S	$	1.06		1.04		1.01		0.95		0.96
Merger-related and restructuring expenses(GAAP)			0.03		0.03		0.02		0.04		0.04
Other intangible amortization(GAAP)			0.04		0.04		0.05		0.05		0.05
Diluted earnings per common share, excluding merger-related and restructuring expenses, and other intangible amortization	T	$	1.13		1.11		1.08		1.04		1.05
Dividend payout ratios
GAAP	R/S		48.11	%	44.23		45.54		48.42		41.67
Excluding merger-related and restructuring expenses, and other intangible amortization	R/T		45.13	%	41.44		42.59		44.23		38.10

* The letters included in the columns are provided to show how the various ratios presented in the tables on pages 21 and 22 are calculated. For example, return on average assets on a GAAP basis is calculated by dividing income (GAAP) by average assets (GAAP) (i.e., A/H) and annualized where appropriate.