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

Exhibit (99)(a)

Press Release October 19, 2007

WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE

Strength in core banking and brokerage businesses offset by impact of global fixed income market disruption

3^rd QUARTER 2007 COMPARED WITH 3^rd QUARTER 2006

• Lower earnings reflecting disruption in the capital markets resulting in valuation losses of $1.3 billion before tax and reduced origination and distribution revenues in the Corporate and Investment Bank.

• Revenue growth led by a 28 percent increase in net interest income, including Golden West, coupled with disciplined expense control partially offset lower fee income.

• Average loans up 53 percent, driven by higher consumer real estate loans related to the Golden West acquisition, and strong organic growth in commercial, international and auto lending.

• Average core deposits up 30 percent, including Golden West. Sales productivity solid in expanded markets.

• Net charge-offs rose 3 basis points to an annualized 0.19 percent of average net loans. Increased provision for credit losses reflects modest deterioration in credit quality, a more uncertain credit environment and loan growth. Higher nonperforming assets largely related to Golden West consumer real estate NPAs and to higher commercial real estate NPAs largely related to downgrades of residential developers.

• Customer loyalty scores at near record 53.1 percent; organic customer acquisition grew 14.8 percent annualized.

Earnings Highlights

	Three Months Ended
	September 30, 2007				June 30, 2007		September 30, 2006
(In millions, except per share data)	Amount			EPS	Amount	EPS	Amount	EPS
Earnings
Net income(GAAP)	$	1,690		0.89	2,341	1.22	1,877	1.17
Net merger-related and restructuring expenses		22		0.01	20	0.01	25	0.02
Earnings excluding merger-related and restructuring expenses	$	1,712		0.90	2,361	1.23	1,902	1.19
Financial ratios
Return on average common stockholders' equity		9.60	%		13.54		14.85
Net interest margin (a)		2.92			2.94		3.03
Fee and other income as % of total revenue (a)		37.59			48.38		49.20
Overhead efficiency ratio (a)		59.55	%		55.85		57.44
Capital adequacy (b)
Tier 1 capital ratio		7.2	%		7.5		7.7
Total capital ratio		11.0			11.5		11.5
Leverage ratio		6.1	%		6.2		6.6
Asset quality (c)
Allowance for loan losses as % of nonaccrual and restructured loans		135	%		182		520
Allowance for loan losses as % of loans, net		0.78			0.79		1.03
Allowance for credit losses as
% of loans, net (d)		0.82			0.83		1.09
Net charge-offs as % of average loans, net		0.19			0.14		0.16
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.63	%		0.47		0.26

(a) Tax-equivalent.

(b) The third quarter of 2007 is based on estimates.

(c) Asset quality ratios at September 30 and June 30, 2007, reflect the impact of Golden West.

(d) 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 $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 2

CHARLOTTE, N.C. — Wachovia Corp. (NYSE:WB) today reported net income of $1.69 billion, or 89 cents per share, in the third quarter of 2007 compared with $1.88 billion, or $1.17 per share, in the third quarter of 2006.

After-tax net merger-related expenses amounted to 1 cent per common share in the third quarter of 2007 and 2 cents per common share in the third quarter of 2006. Excluding these expenses, earnings were $1.71 billion, or 90 cents per share, in the third quarter of 2007 and $1.90 billion, or $1.19 per share, in the third quarter of 2006.

“I’m very proud of our ability to provide capital, liquidity and advice to our customers and peers in the face of the disruption in the fixed income markets in the third quarter. These conditions clearly had a disappointing impact on the results of market-oriented businesses, but the strength in our core banking and brokerage businesses continued to serve us very well,” said Ken Thompson, Wachovia chairman and chief executive officer. “Our loan and deposit trends were solid, and our retail brokerage performance was strong – and poised for even more growth as our A.G. Edwards colleagues join our team. Additionally, the first of our World Savings branch and deposit conversions was completed successfully last weekend, and going forward, attention in our expanded platform returns fully to sales production. While the impact of the market disruption was significant, it’s worth noting that the majority of the lower market valuations in the third quarter largely arose from a repricing of risk in the marketplace and do not reflect deterioration in the underlying credit quality of the assets in our leveraged finance and commercial real estate securitization businesses. Looking ahead, we’re taking the appropriate steps to ensure that as markets remain unsettled, we focus intently on actively managing our exposures and controlling costs. Longer term, we believe the challenges of the third quarter will be an advantage to companies like Wachovia with strong capital and liquidity positions and a clear understanding of the needs of customers and investors.”

Results in the third quarter of 2007 included the full quarter impact of the October 1, 2006, acquisition of Golden West. Results do not include the impact of the acquisition of A.G. Edwards, Inc., a retail brokerage firm headquartered in St. Louis, Missouri, which closed on October 1 of this year.

Wachovia Corporation

	Three Months Ended
(In millions)	September 30, 2007		June 30, 2007	September 30, 2006
Net interest income(Tax-equivalent)	$	4,584	4,487	3,578
Fee and other income		2,761	4,206	3,465
Total revenue(Tax-equivalent)		7,345	8,693	7,043
Provision for credit losses		408	179	108
Noninterest expense		4,374	4,856	4,045
Net income		1,690	2,341	1,877
Average loans, net		429,801	421,257	281,110
Average core deposits	$	379,009	378,496	291,227

In the third quarter of 2007 compared with the third quarter of 2006, Wachovia:

• Grew revenue 4 percent on higher loans and deposits, driven by the addition of Golden West and organic growth, while fee and other income declined reflecting disruption in the capital markets in fixed income and other market-related fees, including net valuation losses of:

• $1.3 billion in the Corporate and Investment Bank on structured products and leveraged finance warehouse loans and commitments; and

• $40 million in Capital Management on asset-backed commercial paper investments.

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WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 3

• Increased net interest income 28 percent reflecting growth in average commercial loans, up 16 percent, and higher average consumer loans, including the impact of acquisitions.

• Generated strong commercial loan growth led by strength in middle-market commercial, large corporate and international lending. Increased consumer loans were led by higher real estate loans primarily due to the addition of Golden West, as well as growth in auto lending.

• Also generated 30 percent growth in average core deposits while average low-cost core deposits were up 7 percent.

• Generated continued strong performance in retail brokerage managed account fees and solid retail brokerage transaction activity. Strong principal investing results and higher traditional banking fees also contributed to growth.

• Held noninterest expense growth, including the effect of acquisitions, to 8 percent largely reflecting lower revenue-based compensation in light of the market disruption.

• Recorded a provision for credit losses of $408 million reflecting modest deterioration in credit quality, a more uncertain credit environment and loan growth. Net charge-offs were $206 million, or an annualized 0.19 percent of average net loans. Total nonperforming assets including loans held for sale were $3.0 billion, or 0.63 percent of loans, foreclosed properties and loans held for sale.

Earnings in the third quarter of 2007 included a $249 million after-tax benefit related to correction of errors primarily in earlier periods in 2007. This related primarily to incorrect application of hedge accounting to certain variable rate demand deposits in the second quarter of 2007. Wachovia’s management believes that this impact is not material to current or prior period financial statements, and the Audit Committee of Wachovia’s Board of Directors, based on information reviewed by management with the Committee, concurred with management’s conclusion.

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, other intangible amortization and discontinued operations. 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, 2007			June 30, 2007	September 30, 2006
Net interest income(Tax-equivalent)	$	3,486		3,397	2,529
Fee and other income		969		969	886
Total revenue(Tax-equivalent)		4,500		4,407	3,451
Provision for credit losses		214		160	120
Noninterest expense		2,015		2,035	1,621
Segment earnings	$	1,443		1,405	1,086
Cash overhead efficiency ratio(Tax-equivalent)		44.75	%	46.17	46.96
Average loans, net	$	297,295		294,369	162,501
Average core deposits		290,693		290,970	208,705
Economic capital, average	$	11,556		11,502	7,121

General Bank

The General Bank includes retail, small business and commercial customers. The third quarter of 2007 compared with the third quarter of 2006 included:

• Earnings of $1.4 billion on a 30 percent increase in revenue to $4.5 billion, driven by increased loans and deposits primarily reflecting the addition of Golden West, as well as strong organic growth. The business mix continued to shift, reflecting customer preference for fixed rate instead of variable rate loans and certificates of deposit over demand deposits.

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WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 4

• An increase in average loans of $134.8 billion including primarily consumer real estate loans from the Golden West acquisition. Organic growth was led by auto lending, middle market commercial and business banking loans.

• Deposit growth led by consumer certificates of deposit, reflecting the addition of Golden West and organic growth. Net new retail checking accounts increased by 255,000 in the third quarter of 2007 compared with an increase of 139,000 in the year ago quarter. World Savings branches generated more than 20,000 of these new accounts. Year to date, net new retail checking accounts amounted to 832,000, compared with 554,000 in full year 2006.

• 9 percent higher fee and other income, with solid growth in service charges and interchange income offsetting lower mortgage banking fees.

• A 221 basis point improvement to a 44.75 percent overhead efficiency ratio, which included the acquisition impact, de novo branch activity and other growth initiatives.

• Increased provision as a result of higher auto, commercial and consumer real estate loan losses.

Wealth Management Highlights

	Three Months Ended
(In millions)	September 30, 2007			June 30, 2007	September 30, 2006
Net interest income(Tax-equivalent)	$	183		181	176
Fee and other income		185		202	197
Total revenue(Tax-equivalent)		372		386	376
Provision for credit losses		6		2	2
Noninterest expense		252		255	249
Segment earnings	$	72		82	79
Cash overhead efficiency ratio(Tax-equivalent)		67.87	%	65.89	66.34
Average loans, net	$	21,492		21,047	19,237
Average core deposits		16,638		17,028	16,312
Economic capital, average	$	650		654	626

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. The third quarter of 2007 compared with the third quarter of 2006 included:

• Lower earnings of $72 million on flat revenue growth due to lower insurance commissions.

• A 4 percent increase in net interest income on solid loan growth and modest deposit growth, partially offset by continued margin compression.

• Record fiduciary and asset management fees, up 10 percent driven by client acceptance of the new investment platform introduced in 2006, new sales and higher market valuations, more than offset by a decline in insurance commissions largely related to an $11 million insurance commission receivables write-off and nonstrategic insurance account dispositions.

• Relatively flat expenses due to efficiency initiatives.

• 14 percent growth in assets under management to $82.8 billion as a result of higher market valuations and new sales.

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WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 5

Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	September 30, 2007			June 30, 2007		September 30, 2006
Net interest income(Tax-equivalent)	$	837		773		709
Fee and other income		21		1,505		998
Total revenue(Tax-equivalent)		819		2,243		1,676
Provision for credit losses		1		(2	)	(4	)
Noninterest expense		655		1,068		840
Segment earnings	$	105		746		533
Cash overhead efficiency ratio(Tax-equivalent)		79.75	%	47.64		50.09
Average loans, net	$	82,942		76,718		70,901
Average core deposits		37,040		36,520		31,576
Economic capital, average	$	9,897		8,927		7,921

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Third quarter 2007 results compared with the third quarter of 2006 included:

• Earnings of $105 million, down $428 million, driven by the $1.3 billion effect of the market disruption, partially offset by improved principal investing results and strong advisory and underwriting fees.

• The market valuation losses, net of applicable hedges, in the Corporate and Investment Bank of:

• $488 million on commercial mortgage structured products;

• $103 million on consumer mortgage structured products;

• $438 million in collateralized debt obligations, collateralized loan obligations and other structured credit products; and

• $272 million in leveraged finance net of fees.

• Improved principal investing results largely related to a $270 million unrealized gain related to the sale of a minority interest in a fund of direct investments and strong advisory and underwriting fees largely from structured products, merger and acquisition advisory services, and equities underwriting.

• 18 percent growth in net interest income, reflecting growth in loans and in structured product warehouse balances related to the market disruption.

• Core deposit growth in global money market deposits and commercial mortgage servicing, and loan growth primarily in real estate financial services, international and asset-based lending.

• Lower noninterest expense due to decreased revenue-based incentives.

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WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 6

Capital Management Highlights

	Three Months Ended
(In millions)	September 30, 2007			June 30, 2007	September 30, 2006
Net interest income(Tax-equivalent)	$	271		264	253
Fee and other income		1,408		1,502	1,217
Total revenue(Tax-equivalent)		1,671		1,755	1,462
Provision for credit losses		—		—	—
Noninterest expense		1,238		1,296	1,097
Segment earnings	$	275		291	232
Cash overhead efficiency ratio(Tax-equivalent)		74.08	%	73.85	74.98
Average loans, net	$	2,142		1,663	1,235
Average core deposits		31,489		31,221	30,114
Economic capital, average	$	1,560		1,615	1,412

Capital Management

Capital Management includes retail brokerage services and asset management. The third quarter of 2007 compared with the third quarter of 2006 included:

• Earnings of $275 million on revenue momentum driven by increased managed account fees and other asset-based fees, as well as solid retail brokerage transaction activity. Managed assets grew 22 percent to $157.7 billion.

• 16 percent growth in fee income, driven primarily by increased retail brokerage managed account fees and solid transaction activity, as well as the effect of acquisitions including European Credit Management Ltd. (ECM), a London-based fixed income investment management firm acquired on January 31, 2007. Growth was partially offset by a $40 million valuation loss related to the purchase of certain asset-backed commercial paper investments from Evergreen money market funds.

• 13 percent growth in noninterest expense primarily due to higher commissions and incentives and the acquisition impact, partially offset by merger efficiencies related to the 2006 acquisition of a 401(k) record-keeping business.

Total assets under management of $285.4 billion at September 30, 2007, were up from December 31, 2006, including $26.2 billion from the ECM acquisition, $7.2 billion in net inflows and approximately $7.6 billion in market appreciation, offset by a $34.5 billion change in investment discretion responsibility on previously co-managed, nonproprietary assets now solely managed by Wealth Management. Total brokerage client assets grew 6 percent from year-end 2006 to $807.2 billion.

***

Wachovia Corporation (NYSE:WB) is one of the nation’s largest diversified financial services companies, with assets of $754.2 billion and market capitalization of $95.3 billion at September 30, 2007. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to 13 million household and business customers. Wachovia has 3,400 retail financial centers in 21 states from Connecticut to Florida and west to Texas and California, and nationwide retail brokerage, mortgage lending and auto finance businesses. Globally, clients are served in selected corporate and institutional sectors and through more than 40 international offices. Our retail brokerage operations under the Wachovia Securities brand name manage more than $800 billion in client assets through 11,400 registered representatives in 786 offices nationwide. The acquisition of A.G. Edwards, Inc., following the end of the third quarter, added approximately 740 offices, 6,300 financial consultants and $384 billion in brokerage client assets. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.com.

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WACHOVIA EARNS $1.69 BILLION, EPS OF 89 CENTS PER SHARE/page 7

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 19, 2007.

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 Discontinued Operations” and “Earnings Excluding Merger-Related and Restructuring Expenses, Other Intangible Amortization and Discontinued Operations”, and which are reconciled to GAAP financial measures on pages 22 and 23. 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, discontinued operations 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, discontinued operations 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.

Earnings Conference Call and Supplemental Materials

Wachovia CEO Ken Thompson and CFO Tom Wurtz will review Wachovia’s third quarter 2007 results in a conference call and audio webcast beginning at 10 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 888-357-9787 for U.S. callers or 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: WB Investor.

Replay: Friday, October 19, at 2:30 p.m. and continuing through 5 p.m. Friday, January 11. Replay telephone number is 706-645-9291; access code: 12547240.

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: Mary Eshet at 704-383-7777 or Christy Phillips Brown 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, 2007	9
Other Financial Data—Five Quarters Ended September 30, 2007	10
Consolidated Statements of Income—Five Quarters Ended September 30, 2007	11
Consolidated Statements of Income—Nine Months Ended September 30, 2007 and 2006	12
Business Segments—Three Months Ended September 30, 2007 and June 30, 2007	13
Business Segments—Three Months Ended September 30, 2006	14
Loans—On-Balance Sheet, and Managed and Servicing Portfolios—Five Quarters Ended September 30, 2007	15
Allowance for Credit Losses—Five Quarters Ended September 30, 2007	16
Nonperforming Assets—Five Quarters Ended September 30, 2007	17
Consolidated Balance Sheets—Five Quarters Ended September 30, 2007	18
Net Interest Income Summaries—Five Quarters Ended September 30, 2007	19 - 20
Net Interest Income Summaries—Nine Months Ended September 30, 2007 and 2006	21
Reconciliation of Certain Non-GAAP Financial Measures—Five Quarters Ended September 30, 2007	22 - 23

PAGE 9

WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2007						2006
(Dollars in millions, except per share data)	Third Quarter			Second Quarter	First Quarter		Fourth Quarter	Third Quarter
EARNINGS SUMMARY
Net interest income(GAAP)	$	4,551		4,449	4,500		4,577	3,541
Tax-equivalent adjustment		33		38	37		35	37
Net interest income(Tax-equivalent)		4,584		4,487	4,537		4,612	3,578
Fee and other income		2,761		4,206	3,701		3,980	3,465
Total revenue(Tax-equivalent)		7,345		8,693	8,238		8,592	7,043
Provision for credit losses		408		179	177		206	108
Other noninterest expense		4,246		4,721	4,460		4,741	3,915
Merger-related and restructuring expenses		36		32	10		49	38
Other intangible amortization		92		103	118		141	92
Total noninterest expense		4,374		4,856	4,588		4,931	4,045
Minority interest in income of consolidated subsidiaries		189		139	136		125	104
Income from continuing operations before income taxes(Tax-equivalent)		2,374		3,519	3,337		3,330	2,786
Income taxes		651		1,140	998		1,040	872
Tax-equivalent adjustment		33		38	37		35	37
Income from continuing operations		1,690		2,341	2,302		2,255	1,877
Discontinued operations, net of income taxes		—		—	—		46	—
Net income	$	1,690		2,341	2,302		2,301	1,877
Diluted earnings per common share	$	0.89		1.22	1.20		1.20	1.17
Return on average common stockholders’ equity		9.60	%	13.54	13.47		13.09	14.85
Return on average assets		0.92		1.33	1.35		1.31	1.34
Overhead efficiency ratio		59.55	%	55.85	55.70		57.38	57.44
Operating leverage	$	(868	)	189	(13	)	665	1
ASSET QUALITY
Allowance for loan losses as % of loans, net		0.78	%	0.79	0.80		0.80	1.03
Allowance for loan losses as % of nonperforming assets		120		164	194		246	396
Allowance for credit losses as % of loans, net		0.82		0.83	0.84		0.84	1.09
Net charge-offs as % of average loans, net		0.19		0.14	0.15		0.14	0.16
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.63	%	0.47	0.40		0.32	0.26
CAPITAL ADEQUACY (a)
Tier I capital ratio		7.2	%	7.5	7.4		7.4	7.7
Total capital ratio		11.0		11.5	11.4		11.3	11.5
Leverage ratio		6.1	%	6.2	6.1		6.0	6.6
OTHER DATA
Average diluted common shares(In millions)		1,910		1,919	1,925		1,922	1,600
Actual common shares (In millions)		1,901		1,903	1,913		1,904	1,581
Dividends paid per common share	$	0.64		0.56	0.56		0.56	0.56
Dividend payout ratio on common shares		71.91	%	45.90	46.67		46.67	47.86
Book value per common share	$	36.94		36.40	36.47		36.61	32.37
Common stock price		50.15		51.25	55.05		56.95	55.80
Market capitalization	$	95,326		97,530	105,330		108,443	88,231
Common stock price to book value		136	%	141	151		156	172
FTE employees		109,724		110,493	110,369		109,460	97,060
Total financial centers/brokerage offices		4,167		4,135	4,167		4,126	3,870
ATMs		5,123		5,099	5,146		5,212	5,163

(a) The third quarter of 2007 is based on estimates.

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WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2007						2006
(In millions)	Third Quarter			Second Quarter	First Quarter		Fourth Quarter	Third Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, AND DISCONTINUED OPERATIONS (a) (b)
Return on average common stockholders’ equity		9.72	%	13.66	13.50		12.98	15.02
Return on average assets		0.93		1.34	1.35		1.30	1.36
Overhead efficiency ratio		59.07		55.48	55.57		56.81	56.90
Overhead efficiency ratio excluding brokerage		55.93	%	51.79	52.39		53.61	53.42
Operating leverage	$	(864	)	210	(51	)	675	16
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED OPERATIONS (a) (b) (c)
Dividend payout ratio on common shares		68.82	%	44.09	45.16		45.16	45.53
Return on average tangible common stockholders’ equity		23.67		33.57	33.27		31.58	30.79
Return on average tangible assets		1.02		1.47	1.49		1.43	1.47
Overhead efficiency ratio		57.83		54.29	54.15		55.17	55.60
Overhead efficiency ratio excluding brokerage		54.39	%	50.37	50.67		51.67	51.85
Operating leverage	$	(876	)	197	(75	)	725	8
OTHER FINANCIAL DATA
Net interest margin		2.92	%	2.94	3.04		3.09	3.03
Fee and other income as % of total revenue		37.59		48.38	44.93		46.32	49.20
Effective income tax rate (d)		27.80		32.78	30.22		31.74	31.71
Effective tax rate (Tax-equivalent) (d) (e)		28.80	%	33.51	30.99		32.46	32.61
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	174,672		165,512	157,288		154,306	150,566
Consumer loans, net		255,129		255,745	257,973		258,255	130,544
Loans, net		429,801		421,257	415,261		412,561	281,110
Earning assets		628,773		605,978	593,663		596,893	472,139
Total assets		729,004		704,773	691,029		698,687	555,164
Core deposits		379,009		378,496	369,270		362,427	291,227
Total deposits		416,107		408,418	399,106		395,380	326,360
Interest-bearing liabilities		574,399		547,669	535,778		536,958	414,563
Stockholders’ equity	$	69,857		69,317	69,320		69,725	50,143
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	189,545		175,369	167,039		162,098	159,424
Consumer loans, net		259,661		253,751	254,624		258,060	131,335
Loans, net		449,206		429,120	421,663		420,158	290,759
Goodwill and other intangible assets
Goodwill		38,848		38,766	38,838		38,379	23,535
Deposit base		670		727	796		883	577
Customer relationships		620		651	684		662	688
Tradename		90		90	90		90	90
Total assets		754,168		715,428	702,669		707,121	559,922
Core deposits		377,865		378,188	377,358		371,771	291,667
Total deposits		421,937		410,030	405,270		407,458	323,298
Stockholders’ equity	$	70,212		69,266	69,786		69,716	51,180

(a) These financial measures are calculated by excluding from GAAP net income presented on page 9, $22 million, $20 million, $6 million, $29 million and $25 million in the third, second and first quarters of 2007, and in the fourth and third quarters of 2006, respectively, of after-tax net merger-related and restructuring expenses, and $46 million after tax in the fourth quarter of 2006 related to discontinued operations.

(b) See page 9 for the most directly comparable GAAP financial measure and pages 22 and 23 for a more detailed reconciliation.

(c) These financial measures are calculated by excluding from GAAP net income presented on page 9, $60 million, $66 million, $76 million, $90 million and $59 million in the third, second and first quarters of 2007, and in the fourth and third quarters of 2006, respectively, of deposit base and other intangible amortization.

(d) The fourth quarter of 2006 includes taxes on discontinued operations.

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

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2007					2006
(In millions, except per share data)	Third Quarter			Second Quarter	First Quarter	Fourth Quarter	Third Quarter
INTEREST INCOME
Interest and fees on loans	$	7,937		7,723	7,618	7,736	5,096
Interest and dividends on securities		1,529		1,474	1,478	1,491	1,692
Trading account interest		566		506	433	462	401
Other interest income		799		647	611	681	595
Total interest income		10,831		10,350	10,140	10,370	7,784
INTEREST EXPENSE
Interest on deposits		3,334		3,180	3,014	3,067	2,238
Interest on short-term borrowings		801		706	669	781	860
Interest on long-term debt		2,145		2,015	1,957	1,945	1,145
Total interest expense		6,280		5,901	5,640	5,793	4,243
Net interest income		4,551		4,449	4,500	4,577	3,541
Provision for credit losses		408		179	177	206	108
Net interest income after provision for credit losses		4,143		4,270	4,323	4,371	3,433
FEE AND OTHER INCOME
Service charges		689		667	614	646	638
Other banking fees		437		504	416	452	427
Commissions		600		649	659	633	562
Fiduciary and asset management fees		993		981	920	856	823
Advisory, underwriting and other investment banking fees		393		454	407	433	292
Trading account profits (losses)		(437	)	195	128	29	123
Principal investing		372		298	48	142	91
Securities gains (losses)		(34	)	23	53	47	94
Other income		(252	)	435	456	742	415
Total fee and other income		2,761		4,206	3,701	3,980	3,465
NONINTEREST EXPENSE
Salaries and employee benefits		2,628		3,122	2,972	3,023	2,531
Occupancy		325		331	312	323	284
Equipment		283		309	307	314	291
Advertising		62		70	61	47	54
Communications and supplies		175		180	173	166	158
Professional and consulting fees		196		209	177	239	200
Other intangible amortization		92		103	118	141	92
Merger-related and restructuring expenses		36		32	10	49	38
Sundry expense		577		500	458	629	397
Total noninterest expense		4,374		4,856	4,588	4,931	4,045
Minority interest in income of consolidated subsidiaries		189		139	136	125	104
Income from continuing operations before income taxes		2,341		3,481	3,300	3,295	2,749
Income taxes		651		1,140	998	1,040	872
Income from continuing operations		1,690		2,341	2,302	2,255	1,877
Discontinued operations, net of income taxes		—		—	—	46	—
Net income	$	1,690		2,341	2,302	2,301	1,877
PER COMMON SHARE DATA
Basic earnings
Income from continuing operations	$	0.90		1.24	1.22	1.20	1.19
Net income		0.90		1.24	1.22	1.22	1.19
Diluted earnings
Income from continuing operations		0.89		1.22	1.20	1.18	1.17
Net income		0.89		1.22	1.20	1.20	1.17
Cash dividends	$	0.64		0.56	0.56	0.56	0.56
AVERAGE COMMON SHARES
Basic		1,885		1,891	1,894	1,889	1,573
Diluted		1,910		1,919	1,925	1,922	1,600

PAGE 12

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Nine Months Ended September 30,
(In millions, except per share data)	2007			2006
INTEREST INCOME
Interest and fees on loans	$	23,278		14,240
Interest and dividends on securities		4,481		4,942
Trading account interest		1,505		1,113
Other interest income		2,057		1,600
Total interest income		31,321		21,895
INTEREST EXPENSE
Interest on deposits		9,528		6,052
Interest on short-term borrowings		2,176		2,333
Interest on long-term debt		6,117		2,838
Total interest expense		17,821		11,223
Net interest income		13,500		10,672
Provision for credit losses		764		228
Net interest income after provision for credit losses		12,736		10,444
FEE AND OTHER INCOME
Service charges		1,970		1,834
Other banking fees		1,357		1,304
Commissions		1,908		1,773
Fiduciary and asset management fees		2,894		2,392
Advisory, underwriting and other investment banking fees		1,254		912
Trading account profits (losses)		(114	)	506
Principal investing		718		383
Securities gains		42		71
Other income		639		1,390
Total fee and other income		10,668		10,565
NONINTEREST EXPENSE
Salaries and employee benefits		8,722		7,880
Occupancy		968		850
Equipment		899		870
Advertising		193		157
Communications and supplies		528		487
Professional and consulting fees		582		551
Other intangible amortization		313		282
Merger-related and restructuring expenses		78		130
Sundry expense		1,535		1,338
Total noninterest expense		13,818		12,545
Minority interest in income of consolidated subsidiaries		464		289
Income before income taxes		9,122		8,175
Income taxes		2,789		2,685
Net income	$	6,333		5,490
PER COMMON SHARE DATA
Basic earnings	$	3.35		3.49
Diluted earnings		3.30		3.43
Cash dividends	$	1.76		1.58
AVERAGE COMMON SHARES
Basic		1,890		1,571
Diluted		1,918		1,600

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended September 30, 2007
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	3,486	183	837		271		(193	)	(33	)	4,551
Fee and other income		969	185	21		1,408		178		—		2,761
Intersegment revenue		45	4	(39	)	(8	)	(2	)	—		—
Total revenue (a)		4,500	372	819		1,671		(17	)	(33	)	7,312
Provision for credit losses		214	6	1		—		187		—		408
Noninterest expense		2,015	252	655		1,238		178		36		4,374
Minority interest		—	—	—		—		189		—		189
Income taxes (benefits)		817	42	49		158		(401	)	(14	)	651
Tax-equivalent adjustment		11	—	9		—		13		(33	)	—
Net income (loss)	$	1,443	72	105		275		(183	)	(22	)	1,690
	Three Months Ended June 30, 2007
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	3,397	181	773		264		(128	)	(38	)	4,449
Fee and other income		969	202	1,505		1,502		28		—		4,206
Intersegment revenue		41	3	(35	)	(11	)	2		—		—
Total revenue (a)		4,407	386	2,243		1,755		(98	)	(38	)	8,655
Provision for credit losses		160	2	(2	)	—		19		—		179
Noninterest expense		2,035	255	1,068		1,296		170		32		4,856
Minority interest		—	—	—		—		139		—		139
Income taxes (benefits)		797	47	420		168		(280	)	(12	)	1,140
Tax-equivalent adjustment		10	—	11		—		17		(38	)	—
Net income (loss)	$	1,405	82	746		291		(163	)	(20	)	2,341

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended September 30, 2006
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	2,529	176	709		253		(89	)	(37	)	3,541
Fee and other income		886	197	998		1,217		167		—		3,465
Intersegment revenue		36	3	(31	)	(8	)	—		—		—
Total revenue (a)		3,451	376	1,676		1,462		78		(37	)	7,006
Provision for credit losses		120	2	(4	)	—		(10	)	—		108
Noninterest expense		1,621	249	840		1,097		200		38		4,045
Minority interest		—	—	—		—		104		—		104
Income taxes (benefits)		614	46	298		133		(206	)	(13	)	872
Tax-equivalent adjustment		10	—	9		—		18		(37	)	—
Net income (loss)	$	1,086	79	533		232		(28	)	(25	)	1,877

(a) Tax-equivalent.

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

PAGE 15

WACHOVIA CORPORATION AND SUBSIDIARIES

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

(Unaudited)

	2007							2006
(In millions)	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL
Commercial, financial and agricultural	$	109,269		102,397		99,687		96,285		95,281
Real estate—construction and other		18,167		17,449		16,965		16,182		16,067
Real estate—mortgage		21,514		20,448		20,130		20,026		19,455
Lease financing		23,966		24,083		24,053		25,341		25,253
Foreign		26,471		20,959		16,240		13,464		12,677
Total commercial		199,387		185,336		177,075		171,298		168,733
CONSUMER
Real estate secured		225,355		220,293		220,682		225,826		100,115
Student loans		7,742		6,757		8,479		7,768		9,175
Installment loans		24,763		25,017		23,665		22,660		21,454
Total consumer		257,860		252,067		252,826		256,254		130,744
Total loans		457,247		437,403		429,901		427,552		299,477
Unearned income		(8,041	)	(8,283	)	(8,238	)	(7,394	)	(8,718	)
Loans, net(On-balance sheet)	$	449,206		429,120		421,663		420,158		290,759
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	199,387		185,336		177,075		171,298		168,733
Securitized loans—off-balance sheet		142		170		181		194		218
Loans held for sale		13,905		11,573		10,467		8,866		5,556
Total commercial		213,434		197,079		187,723		180,358		174,507
CONSUMER
Real estate secured
On-balance sheet loan portfolio		225,355		220,293		220,682		225,826		100,115
Securitized loans—off-balance sheet		7,625		8,112		6,595		5,611		6,151
Securitized loans included in securities		5,963		6,091		5,629		5,321		4,317
Loans held for sale		3,583		4,079		4,089		3,420		3,324
Total real estate secured		242,526		238,575		236,995		240,178		113,907
Student
On-balance sheet loan portfolio		7,742		6,757		8,479		7,768		9,175
Securitized loans—off-balance sheet		2,856		2,905		3,045		3,128		3,218
Securitized loans included in securities		52		52		52		52		52
Loans held for sale		1,968		2,046		—		—		—
Total student		12,618		11,760		11,576		10,948		12,445
Installment
On-balance sheet loan portfolio		24,763		25,017		23,665		22,660		21,454
Securitized loans—off-balance sheet		2,572		3,105		2,851		3,276		3,695
Securitized loans included in securities		55		116		126		137		169
Loans held for sale		1,975		35		476		282		159
Total installment		29,365		28,273		27,118		26,355		25,477
Total consumer		284,509		278,608		275,689		277,481		151,829
Total managed portfolio	$	497,943		475,687		463,412		457,839		326,336
SERVICING PORTFOLIO (b)
Commercial	$	337,721		298,374		271,038		250,652		227,899
Consumer	$	28,474		26,789		25,952		21,039		60,854

(a) The managed portfolio includes the on-balance sheet loan portfolio, loans securitized for which the retained interests 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 CREDIT LOSSES

(Unaudited)

	2007							2006
(In millions)	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period	$	3,552		3,533		3,514		3,163		3,186
Provision for credit losses		381		168		175		204		118
Provision for credit losses relating to loans transferred to loans held for sale or sold		3		4		1		7		(4	)
Provision for credit losses for unfunded lending commitments		24		7		1		(5	)	(6	)
LOAN LOSSES
Commercial, financial and agricultural		(41	)	(39	)	(34	)	(32	)	(25	)
Commercial real estate—construction and mortgage		(5	)	(4	)	(6	)	(10	)	(2	)
Total commercial		(46	)	(43	)	(40	)	(42	)	(27	)
Real estate secured		(59	)	(40	)	(33	)	(29	)	(25	)
Student loans		(5	)	(2	)	(3	)	(5	)	(5	)
Installment and other loans (b)		(168	)	(138	)	(142	)	(135	)	(119	)
Total consumer		(232	)	(180	)	(178	)	(169	)	(149	)
Total loan losses		(278	)	(223	)	(218	)	(211	)	(176	)
LOAN RECOVERIES
Commercial, financial and agricultural		9		15		9		27		14
Commercial real estate—construction and mortgage		3		—		3		1		1
Total commercial		12		15		12		28		15
Real estate secured		12		11		6		7		9
Student loans		3		—		1		3		1
Installment and other loans (b)		45		47		44		33		35
Total consumer		60		58		51		43		45
Total loan recoveries		72		73		63		71		60
Net charge-offs		(206	)	(150	)	(155	)	(140	)	(116	)
Balance of acquired entities at purchase date		—		—		—		303		—
Allowance relating to loans acquired, transferred to loans held for sale or sold		(63	)	(10	)	(3	)	(18	)	(15	)
Balance, end of period	$	3,691		3,552		3,533		3,514		3,163
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses	$	3,505		3,390		3,378		3,360		3,004
Reserve for unfunded lending commitments		186		162		155		154		159
Total allowance for credit losses	$	3,691		3,552		3,533		3,514		3,163
ALLOWANCE FOR LOAN LOSSES
as % of loans, net		0.78	%	0.79		0.80		0.80		1.03
as % of nonaccrual and restructured loans (c) (d)		135		182		213		272		520
as % of nonperforming assets (c)		120		164		194		246		396
ALLOWANCE FOR CREDIT LOSSES
as% of loans, net		0.82	%	0.83		0.84		0.84		1.09
NET CHARGE-OFFS AS % OF AVERAGE LOANS, NET (e)
Commercial, financial and agricultural		0.10	%	0.07		0.08		0.02		0.04
Commercial real estate—construction and mortgage		0.02		0.04		0.04		0.10		0.02
Total commercial		0.08		0.07		0.07		0.04		0.03
Real estate secured		0.08		0.05		0.05		0.04		0.06
Student loans		0.14		0.07		0.10		0.09		0.14
Installment and other loans (b)		1.99		1.47		1.67		1.79		1.58
Total consumer		0.27		0.19		0.20		0.19		0.32
Total as % of average loans, net		0.19	%	0.14		0.15		0.14		0.16
CONSUMER REAL ESTATE SECURED NET CHARGE-OFFS
First lien	$	(32	)	(17	)	(15	)	(15	)	(10	)
Second lien		(15	)	(12	)	(12	)	(7	)	(6	)
Total consumer real estate secured net charge-offs	$	(47	)	(29	)	(27	)	(22	)	(16	)

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

(b) Principally auto loans.

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

(d) Restructured loans are not significant.

(e) Annualized.

PAGE 17

WACHOVIA CORPORATION AND SUBSIDIARIES

NONPERFORMING ASSETS

(Unaudited)

	2007					2006
(In millions)	Third Quarter			Second Quarter	First Quarter	Fourth Quarter	Third Quarter
NONPERFORMING ASSETS
Nonaccrual loans
Commercial
Commercial, financial and agricultural	$	354		318	303	226	275
Commercial real estate—construction and mortgage		289		161	117	93	80
Total commercial		643		479	420	319	355
Consumer
Real estate secured
First lien		1,865		1,293	1,076	868	183
Second lien		41		43	37	32	30
Installment and other loans (a)		45		42	51	15	10
Total consumer		1,951		1,378	1,164	915	223
Total nonaccrual loans		2,594		1,857	1,584	1,234	578
Foreclosed properties (b)		334		207	155	132	181
Total nonperforming assets	$	2,928		2,064	1,739	1,366	759
as % of loans, net, and foreclosed properties (c)		0.65	%	0.48	0.41	0.32	0.26
Nonperforming assets included in loans held for sale
Commercial	$	—		—	1	1	9
Consumer		59		42	25	15	14
Total nonperforming assets included in loans held for sale		59		42	26	16	23
Nonperforming assets included in loans and in loans held for sale	$	2,987		2,106	1,765	1,382	782
as % of loans, net, foreclosed properties and loans held for sale (d)		0.63	%	0.47	0.40	0.32	0.26
PAST DUE LOANS 90 DAYS AND OVER, AND NONACCRUAL LOANS
Accruing loans past due 90 days and over	$	590		562	555	650	666
Nonaccrual loans		2,594		1,857	1,584	1,234	578
Total past due loans 90 days and over, and nonaccrual loans	$	3,184		2,419	2,139	1,884	1,244
Commercial as % of loans, net		0.38	%	0.31	0.28	0.23	0.28
Consumer as % of loans, net		0.95	%	0.74	0.66	0.59	0.61

(a) Principally auto loans; nonaccrual status does not apply to student loans.

(b) Restructured loans are not significant.

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

(d) 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 18

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2007							2006
(In millions, except per share data)	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
ASSETS
Cash and due from banks	$	12,681		12,065		12,593		15,826		11,850
Interest-bearing bank balances		4,449		2,726		2,591		2,167		5,270
Federal funds sold and securities purchased under resale agreements		11,995		11,511		10,322		16,923		18,497
Total cash and cash equivalents		29,125		26,302		25,506		34,916		35,617
Trading account assets		53,969		49,969		47,875		45,529		43,904
Securities		111,827		106,184		106,841		108,619		106,553
Loans, net of unearned income		449,206		429,120		421,663		420,158		290,759
Allowance for loan losses		(3,505	)	(3,390	)	(3,378	)	(3,360	)	(3,004	)
Loans, net		445,701		425,730		418,285		416,798		287,755
Loans held for sale		21,431		17,733		15,032		12,568		9,039
Premises and equipment		6,002		6,080		6,058		6,141		5,536
Due from customers on acceptances		1,295		831		992		855		1,200
Goodwill		38,848		38,766		38,838		38,379		23,535
Other intangible assets		1,380		1,468		1,570		1,635		1,355
Other assets		44,590		42,365		41,672		41,681		45,428
Total assets	$	754,168		715,428		702,669		707,121		559,922
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		56,825		62,112		63,399		66,572		63,880
Interest-bearing deposits		365,112		347,918		341,871		340,886		259,418
Total deposits		421,937		410,030		405,270		407,458		323,298
Short-term borrowings		62,714		52,715		47,144		49,157		58,749
Bank acceptances outstanding		1,303		840		1,004		863		1,213
Trading account liabilities		17,771		19,319		17,291		18,228		19,553
Other liabilities		18,352		18,080		16,741		20,004		16,513
Long-term debt		158,584		142,047		142,334		138,594		86,419
Total liabilities		680,661		643,031		629,784		634,304		505,745
Minority interest in net assets of consolidated subsidiaries		3,295		3,131		3,099		3,101		2,997
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at September 30, 2007		—		—		—		—		—
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 1.901 billion shares at September 30, 2007		6,336		6,343		6,378		6,347		5,271
Paid-in capital		51,885		51,851		51,964		51,746		34,276
Retained earnings		14,742		14,335		13,378		13,723		12,696
Accumulated other comprehensive income, net		(2,751	)	(3,263	)	(1,934	)	(2,100	)	(1,063	)
Total stockholders’ equity		70,212		69,266		69,786		69,716		51,180
Total liabilities and stockholders’ equity	$	754,168		715,428		702,669		707,121		559,922

PAGE 19

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	THIRD QUARTER 2007						SECOND QUARTER 2007
(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	$	6,459		93	5.68	%	$	3,384		50	6.00	%
Federal funds sold and securities purchased under resale agreements		14,206		194	5.42			12,110		158	5.25
Trading account assets		38,737		575	5.93			35,165		519	5.90
Securities		111,424		1,522	5.46			108,433		1,467	5.41
Loans
Commercial
Commercial, financial and agricultural		106,263		1,927	7.19			101,012		1,805	7.16
Real estate—construction and other		17,795		344	7.66			17,334		329	7.62
Real estate—mortgage		20,883		406	7.71			20,175		378	7.53
Lease financing		7,523		146	7.80			7,759		150	7.74
Foreign		22,208		308	5.53			19,232		265	5.51
Total commercial		174,672		3,131	7.12			165,512		2,927	7.09
Consumer
Real estate secured		223,356		4,070	7.28			222,096		4,042	7.28
Student loans		7,299		122	6.61			8,850		141	6.42
Installment loans		24,474		614	9.99			24,799		609	9.38
Total consumer		255,129		4,806	7.52			255,745		4,792	7.46
Total loans		429,801		7,937	7.36			421,257		7,719	7.31
Loans held for sale		20,209		363	7.14			17,644		285	6.47
Other earning assets		7,937		138	6.91			7,985		144	7.23
Total earning assets excluding derivatives		628,773		10,822	6.86			605,978		10,342	6.82
Risk management derivatives (a)		—		42	0.02			—		46	0.03
Total earning assets including derivatives		628,773		10,864	6.88			605,978		10,388	6.85
Cash and due from banks		11,134						11,533
Other assets		89,097						87,262
Total assets	$	729,004					$	704,773
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		81,851		357	1.73			83,977		367	1.75
Money market accounts		116,404		980	3.34			111,562		976	3.51
Other consumer time		122,474		1,507	4.88			120,684		1,455	4.84
Foreign		23,322		292	4.97			21,871		270	4.96
Other time		13,776		187	5.40			8,051		107	5.30
Total interest-bearing deposits		357,827		3,323	3.68			346,145		3,175	3.68
Federal funds purchased and securities sold under repurchase     agreements		44,334		556	4.98			38,031		473	4.98
Commercial paper		5,799		65	4.42			5,143		60	4.67
Securities sold short		7,420		70	3.74			7,158		67	3.75
Other short-term borrowings		7,793		55	2.74			7,688		52	2.77
Long-term debt		151,226		2,067	5.44			143,504		1,923	5.37
Total interest-bearing liabilities excluding derivatives		574,399		6,136	4.24			547,669		5,750	4.21
Risk management derivatives (a)		—		144	0.10			—		151	0.11
Total interest-bearing liabilities including derivatives		574,399		6,280	4.34			547,669		5,901	4.32
Noninterest-bearing deposits		58,280						62,273
Other liabilities		26,468						25,514
Stockholders’ equity		69,857						69,317
Total liabilities and stockholders’ equity	$	729,004					$	704,773
Interest income and rate earned—including derivatives			$	10,864	6.88	%			$	10,388	6.85	%
Interest expense and equivalent rate paid—including derivatives				6,280	3.96					5,901	3.91
Net interest income and margin—including derivatives			$	4,584	2.92	%			$	4,487	2.94	%

(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 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

FIRST QUARTER 2007							FOURTH QUARTER 2006						THIRD QUARTER 2006
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
$	1,523		30		7.80	%	$	3,596		54	5.95	%	$	2,671		34	5.07	%
	14,124		177		5.07			20,830		268	5.11			17,530		224	5.08
	29,681		442		5.97			31,069		469	6.03			31,160		409	5.24
	108,071		1,461		5.42			108,543		1,467	5.40			122,152		1,661	5.44
	98,413		1,736		7.16			96,359		1,726	7.10			93,886		1,673	7.07
	16,508		313		7.69			16,091		311	7.67			15,787		308	7.74
	20,231		380		7.61			19,830		380	7.61			19,507		378	7.69
	7,730		150		7.75			9,674		166	6.88			9,731		172	7.04
	14,406		196		5.49			12,352		170	5.49			11,655		158	5.37
	157,288		2,775		7.15			154,306		2,753	7.08			150,566		2,689	7.09
	225,909		4,148		7.36			226,870		4,240	7.47			99,669		1,670	6.69
	8,524		136		6.47			8,886		145	6.49			9,605		161	6.65
	23,540		566		9.42			22,499		546	9.62			21,270		517	9.66
	257,973		4,850		7.52			258,255		4,931	7.63			130,544		2,348	7.17
	415,261		7,625		7.38			412,561		7,684	7.42			281,110		5,037	7.13
	16,748		255		6.16			11,928		200	6.70			12,130		214	6.99
	8,255		139		6.82			8,366		149	7.05			5,386		113	8.35
	593,663		10,129		6.86			596,893		10,291	6.87			472,139		7,692	6.49
	—		48		0.03			—		114	0.08			—		129	0.11
				��
	593,663		10,177		6.89			596,893		10,405	6.95			472,139		7,821	6.60
	12,260							12,418						11,973
	85,106							89,376						71,052
$	691,029						$	698,687					$	555,164
	84,247		373		1.80			82,924		398	1.90			75,534		355	1.86
	107,785		917		3.45			104,620		913	3.46			99,788		862	3.43
	116,262		1,369		4.77			111,858		1,310	4.65			52,352		548	4.15
	20,802		249		4.85			20,245		241	4.73			20,599		244	4.70
	9,034		119		5.36			12,708		166	5.17			14,534		191	5.23
	338,130		3,027		3.63			332,355		3,028	3.61			262,807		2,200	3.32
	35,142		430		4.97			43,732		537	4.87			51,314		629	4.86
	4,920		57		4.72			5,043		60	4.72			5,190		63	4.77
	8,709		83		3.86			9,934		94	3.75			8,951		82	3.61
	6,898		44		2.54			6,530		38	2.38			5,575		30	2.14
	141,979		1,880		5.35			139,364		1,873	5.35			80,726		1,095	5.41
	535,778		5,521		4.17			536,958		5,630	4.16			414,563		4,099	3.93
	—		119		0.09			—		163	0.13			—		144	0.14
	535,778		5,640		4.26			536,958		5,793	4.29			414,563		4,243	4.07
	60,976							63,025						63,553
	24,955							28,979						26,905
	69,320							69,725						50,143
$	691,029						$	698,687					$	555,164
		$	10,177		6.89	%			$	10,405	6.95	%			$	7,821	6.60	%
			5,640		3.85					5,793	3.86					4,243	3.57
		$	4,537		3.04	%			$	4,612	3.09	%			$	3,578	3.03	%

PAGE 21

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	NINE MONTHS ENDED September 30, 2007						NINE MONTHS ENDED September 30, 2006
(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	$	3,807		173	6.06	%	$	2,523		90	4.77	%
Federal funds sold and securities purchased under resale agreements		13,480		529	5.25			18,264		642	4.70
Trading account assets		34,561		1,536	5.93			29,232		1,146	5.23
Securities		109,322		4,450	5.43			121,415		4,886	5.37
Loans
Commercial
Commercial, financial and agricultural		101,925		5,468	7.17			90,666		4,639	6.84
Real estate—construction and other		17,217		986	7.66			14,978		828	7.39
Real estate—mortgage		20,432		1,164	7.62			19,928		1,097	7.36
Lease financing		7,670		446	7.76			9,891		518	6.98
Foreign		18,644		769	5.51			11,026		418	5.06
Total commercial		165,888		8,833	7.12			146,489		7,500	6.84
Consumer
Real estate secured		223,778		12,260	7.31			97,722		4,768	6.51
Student loans		8,220		399	6.49			10,342		488	6.31
Installment loans		24,274		1,789	9.60			17,839		1,241	9.30
Total consumer		256,272		14,448	7.50			125,903		6,497	6.89
Total loans		422,160		23,281	7.35			272,392		13,997	6.86
Loans held for sale		18,213		903	6.62			9,922		507	6.82
Other earning assets		8,057		421	6.98			5,660		330	7.79
Total earning assets excluding derivatives		609,600		31,293	6.84			459,408		21,598	6.28
Risk management derivatives (a)		—		136	0.03			—		417	0.12
Total earning assets including derivatives		609,600		31,429	6.87			459,408		22,015	6.40
Cash and due from banks		11,638						12,260
Other assets		87,170						68,781
Total assets	$	708,408					$	540,449
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		83,350		1,097	1.76			77,937		991	1.70
Money market accounts		111,949		2,873	3.43			99,545		2,296	3.08
Other consumer time		119,828		4,331	4.83			49,038		1,420	3.87
Foreign		22,008		811	4.93			20,325		665	4.38
Other time		10,304		413	5.36			14,367		541	5.03
Total interest-bearing deposits		347,439		9,525	3.67			261,212		5,913	3.03
Federal funds purchased and securities sold under repurchase agreements		39,203		1,459	4.98			50,049		1,675	4.47
Commercial paper		5,290		182	4.60			4,684		155	4.41
Securities sold short		7,758		220	3.79			8,910		219	3.28
Other short-term borrowings		7,463		151	2.69			6,399		106	2.22
Long-term debt		145,604		5,870	5.39			69,591		2,732	5.24
Total interest-bearing liabilities excluding derivatives		552,757		17,407	4.21			400,845		10,800	3.60
Risk management derivatives (a)		—		414	0.10			—		423	0.14
Total interest-bearing liabilities including derivatives		552,757		17,821	4.31			400,845		11,223	3.74
Noninterest-bearing deposits		60,500						64,510
Other liabilities		25,651						26,042
Stockholders’ equity		69,500						49,052
Total liabilities and stockholders’ equity	$	708,408					$	540,449
Interest income and rate earned—including derivatives			$	31,429	6.87	%			$	22,015	6.40	%
Interest expense and equivalent rate paid—including derivatives				17,821	3.90					11,223	3.27
Net interest income and margin—including derivatives			$	13,608	2.97	%			$	10,792	3.13	%

(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 22

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2007							2006
(In millions, except per share data)	*	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
INCOME FROM CONTINUING OPERATIONS
Net income(GAAP)	A	$	1,690		2,341		2,302		2,301		1,877
Discontinued operations, net of income taxes(GAAP)			—		—		—		(46	)	—
Income from continuing operations(GAAP)			1,690		2,341		2,302		2,255		1,877
Merger-related and restructuring expenses(GAAP)			22		20		6		29		25
Earnings excluding merger-related and restructuring expenses, and discontinued operations	B		1,712		2,361		2,308		2,284		1,902
Other intangible amortization(GAAP)			60		66		76		90		59
Earnings excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C	$	1,772		2,427		2,384		2,374		1,961
RETURN ON AVERAGE COMMON STOCKHOLDERS’ EQUITY
Average common stockholders’ equity(GAAP)	D	$	69,857		69,317		69,320		69,725		50,143
Merger-related and restructuring expenses(GAAP)			36		14		1		95		70
Discontinued operations(GAAP)			—		—		—		(8	)	—
Average common stockholders’ equity, excluding merger-related and restructuring expenses, and discontinued operations	E		69,893		69,331		69,321		69,812		50,213
Average intangible assets(GAAP)	F		(40,198	)	(40,328	)	(40,263	)	(39,979	)	(24,943	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	G	$	29,695		29,003		29,058		29,833		25,270
Return on average common stockholders’ equity
GAAP	A/D		9.60	%	13.54		13.47		13.09		14.85
Excluding merger-related and restructuring expenses, and discontinued operations	B/E		9.72		13.66		13.50		12.98		15.02
Return on average tangible common stockholders’ equity
GAAP	A/D+F		22.61		32.38		32.14		30.68		29.55
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/G		23.67	%	33.57		33.27		31.58		30.79
RETURN ON AVERAGE ASSETS
Average assets(GAAP)	H	$	729,004		704,773		691,029		698,687		555,164
Average intangible assets(GAAP)			(40,198	)	(40,328	)	(40,263	)	(39,979	)	(24,943	)
Average tangible assets(GAAP)	I		688,806		664,445		650,766		658,708		530,221
Average assets(GAAP)			729,004		704,773		691,029		698,687		555,164
Merger-related and restructuring expenses(GAAP)			36		14		1		95		70
Discontinued operations(GAAP)			—		—		—		(8	)	—
Average assets, excluding merger-related and restructuring expenses, and discontinued operations	J		729,040		704,787		691,030		698,774		555,234
Average intangible assets(GAAP)			(40,198	)	(40,328	)	(40,263	)	(39,979	)	(24,943	)
Average tangible assets, excluding merger-related and restructuring expenses, and discontinued operations	K	$	688,842		664,459		650,767		658,795		530,291
Return on average assets
GAAP	A/H		0.92	%	1.33		1.35		1.31		1.34
Excluding merger-related and restructuring expenses, and discontinued operations	B/J		0.93		1.34		1.35		1.30		1.36
Return on average tangible assets
GAAP	A/I		0.97		1.41		1.43		1.39		1.40
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/K		1.02	%	1.47		1.49		1.43		1.47

PAGE 23

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2007							2006
(In millions, except per share data)	*	Third Quarter			Second Quarter		First Quarter		Fourth Quarter		Third Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense(GAAP)	L	$	4,374		4,856		4,588		4,931		4,045
Merger-related and restructuring expenses(GAAP)			(36	)	(32	)	(10	)	(49	)	(38	)
Noninterest expense, excluding merger-related and restructuring expenses	M		4,338		4,824		4,578		4,882		4,007
Other intangible amortization(GAAP)			(92	)	(103	)	(118	)	(141	)	(92	)
Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization	N	$	4,246		4,721		4,460		4,741		3,915
Net interest income(GAAP)		$	4,551		4,449		4,500		4,577		3,541
Tax-equivalent adjustment			33		38		37		35		37
Net interest income(Tax-equivalent)			4,584		4,487		4,537		4,612		3,578
Fee and other income(GAAP)			2,761		4,206		3,701		3,980		3,465
Total	O	$	7,345		8,693		8,238		8,592		7,043
Retail Brokerage Services, excluding insurance
Noninterest expense(GAAP)	P	$	1,011		1,052		995		984		893
Net interest income(GAAP)		$	257		251		252		249		246
Tax-equivalent adjustment			—		—		—		—		—
Net interest income(Tax-equivalent)			257		251		252		249		246
Fee and other income(GAAP)			1,139		1,161		1,146		1,073		970
Total	Q	$	1,396		1,412		1,398		1,322		1,216
Overhead efficiency ratios
GAAP	L/O		59.55	%	55.85		55.70		57.38		57.44
Excluding merger-related and restructuring expenses	M/O		59.07		55.48		55.57		56.81		56.90
Excluding merger-related and restructuring expenses, and brokerage	M-P/O-Q		55.93		51.79		52.39		53.61		53.42
Excluding merger-related and restructuring expenses, and other intangible amortization	N/O		57.83		54.29		54.15		55.17		55.60
Excluding merger-related and restructuring expenses, other intangible amortization and brokerage	N-P/O-Q		54.39	%	50.37		50.67		51.67		51.85
OPERATING LEVERAGE
Operating leverage(GAAP)		$	(868	)	189		(13	)	665		1
Merger-related and restructuring expenses(GAAP)			4		21		(38	)	10		15
Operating leverage, excluding merger-related and restructuring expenses			(864	)	210		(51	)	675		16
Other intangible amortization(GAAP)			(12	)	(13	)	(24	)	50		(8	)
Operating leverage, excluding merger-related and restructuring     expenses, and other intangible amortization		$	(876	)	197		(75	)	725		8
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	R	$	0.64		0.56		0.56		0.56		0.56
Diluted earnings per common share(GAAP)	S	$	0.89		1.22		1.20		1.20		1.17
Merger-related and restructuring expenses(GAAP)			0.01		0.01		—		0.01		0.02
Other intangible amortization(GAAP)			0.03		0.04		0.04		0.05		0.04
Discontinued operations(GAAP)			—		—		—		(0.02	)	—
Diluted earnings per common share, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	T	$	0.93		1.27		1.24		1.24		1.23
Dividend payout ratios
GAAP	R/S		71.91	%	45.90		46.67		46.67		47.86
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	R/T		68.82	%	44.09		45.16		45.16		45.53

* The letters included in the columns are provided to show how the various ratios presented in the tables on pages 22 and 23 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.