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

Exhibit (99)(c)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS(Unaudited)

	June 30,			December 31,
(In millions, except per share data)	2006			2005
ASSETS
Cash and due from banks	$	12,761		15,072
Interest-bearing bank balances		2,244		2,638
Federal funds sold and securities purchased under resale agreements (carrying amount of collateral held $11,657 at June 30, 2006, $3,341 repledged)		17,223		19,915
Total cash and cash equivalents		32,228		37,625
Trading account assets		46,552		42,704
Securities		120,453		114,889
Loans, net of unearned income		282,916		259,015
Allowance for loan losses		(3,021	)	(2,724	)
Loans, net		279,895		256,291
Loans held for sale		7,750		6,405
Premises and equipment		5,322		4,910
Due from customers on acceptances		1,010		824
Goodwill		23,550		21,807
Other intangible assets		1,435		1,208
Other assets		35,419		34,092
Total assets	$	553,614		520,755
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		66,388		67,487
Interest-bearing deposits		261,226		257,407
Total deposits		327,614		324,894
Short-term borrowings		62,787		61,953
Bank acceptances outstanding		1,021		892
Trading account liabilities		18,409		17,598
Other liabilities		17,305		15,986
Long-term debt		74,627		48,971
Total liabilities		501,763		470,294
Minority interest in net assets of consolidated subsidiaries		2,979		2,900
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2006		—		—
Non-Cumulative Perpetual Class A Preferred Stock, Series I, $100,000 liquidation preference per share, 25,010 shares authorized		—		—
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.589 billion shares at June 30, 2006		5,298		5,189
Paid-in capital		34,086		31,172
Retained earnings		12,003		11,973
Accumulated other comprehensive income, net		(2,515	)	(773	)
Total stockholders’ equity		48,872		47,561
Total liabilities and stockholders’ equity	$	553,614		520,755

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME(Unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
(In millions, except per share data)	2006		2005	2006		2005
INTEREST INCOME
Interest and fees on loans	$	4,823	3,362	9,144		6,536
Interest and dividends on securities		1,685	1,437	3,250		2,863
Trading account interest		387	354	712		732
Other interest income		509	549	1,005		1,024
Total interest income		7,404	5,702	14,111		11,155
INTEREST EXPENSE
Interest on deposits		2,035	1,221	3,814		2,271
Interest on short-term borrowings		755	670	1,473		1,271
Interest on long-term debt		973	453	1,693		842
Total interest expense		3,763	2,344	6,980		4,384
Net interest income		3,641	3,358	7,131		6,771
Provision for credit losses		59	50	120		86
Net interest income after provision for credit losses		3,582	3,308	7,011		6,685
FEE AND OTHER INCOME
Service charges		622	528	1,196		1,041
Other banking fees		449	355	877		706
Commissions (a)		588	585	1,211		1,172
Fiduciary and asset management fees (a)		808	746	1,569		1,472
Advisory, underwriting and other investment banking fees		318	257	620		490
Trading account profits (a)		164	49	383		157
Principal investing		189	41	292		100
Securities gains (losses)		25	136	(23	)	134
Other income (a)		420	280	975		700
Total fee and other income		3,583	2,977	7,100		5,972
NONINTEREST EXPENSE
Salaries and employee benefits		2,652	2,324	5,349		4,725
Occupancy		291	271	566		521
Equipment		299	269	579		534
Advertising		56	48	103		92
Communications and supplies		162	158	329		320
Professional and consulting fees		184	155	351		282
Other intangible amortization		98	107	190		222
Merger-related and restructuring expenses		24	90	92		151
Sundry expense		495	366	941		813
Total noninterest expense		4,261	3,788	8,500		7,660
Minority interest in income of consolidated subsidiaries		90	71	185		135
Income before income taxes		2,814	2,426	5,426		4,862
Income taxes		929	776	1,813		1,591
Net income	$	1,885	1,650	3,613		3,271
PER COMMON SHARE DATA
Basic earnings	$	1.19	1.05	2.30		2.09
Diluted earnings		1.17	1.04	2.26		2.05
Cash dividends	$	0.51	0.46	1.02		0.92
AVERAGE COMMON SHARES
Basic		1,585	1,564	1,570		1,567
Diluted		1,613	1,591	1,599		1,597

(a) Amounts presented in 2005 have been reclassified to conform to the presentation in 2006.