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

Exhibit (99)(a)

Press Release January 22, 2008

WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN FULL YEAR 2007

In tough economic environment, 4^th quarter net income was $51 million, or 3 cents per share

4^th QUARTER 2007 COMPARED WITH 4^th QUARTER 2006

• Lower earnings largely reflect the effect of continued disruption in the capital markets, which resulted in net valuation losses of $1.7 billion as well as a provision for credit losses of $1.5 billion, which exceeded net charge-offs by $1.0 billion.

• Net interest income grew modestly, while fee income declined substantially due to the market disruption. Strong momentum in fiduciary and asset management fees and commissions due to the A.G. Edwards acquisition and solid organic growth.

• Provision expense increased largely reflecting heightened portfolio risks relating to recent significant deterioration in the housing market as well as loan growth.

• Average loans up 9 percent with strength in commercial lending and auto lending. Average deposits grew 8 percent particularly in money market accounts and certificates of deposit. Strong momentum continued in net new checking accounts, which increased 935,000 in 2007, including 100,000 generated in the former World Savings branch network.

• Tier 1 and total capital ratios increased from the third quarter of 2007 following the issuance of $2.3 billion of preferred stock and $838 million of trust preferred.

• Income tax benefit of $285 million principally reflects a reduction in the full year tax rate given a lower than expected level of earnings.

• Customer loyalty scores maintain near record 53%; organic customer acquisition grew 15% annualized.

Earnings Highlights

	Three Months Ended
	December 31, 2007				September 30, 2007		December 31, 2006
(In millions, except per share data)	Amount			EPS	Amount	EPS	Amount		EPS
Earnings
Net income(GAAP)	$	51		0.03	1,618	0.85	2,301		1.20
Net merger-related and restructuring expenses		109		0.05	21	0.01	29		0.01
Earnings excluding merger-related and restructuring expenses	$	160		0.08	1,639	0.86	2,330		1.21
Discontinued operations, net of income taxes		—		—	—	—	(46	)	(0.02	)
Earnings excluding merger-related and restructuring expenses, and discontinued operations	$	160		0.08	1,639	0.86	2,284		1.19
Financial ratios
Return on average common stockholders’ equity		0.28	%		9.19		13.09
Net interest margin (a)		2.88			2.92		3.09
Fee and other income as % of total revenue (a)		35.09			37.90		46.51
Overhead efficiency ratio (a)		80.36	%		61.31		57.53
Capital adequacy (b)
Tier 1 capital ratio		7.2	%		7.1		7.4
Total capital ratio		11.5			10.8		11.3
Leverage ratio		6.1	%		6.1		6.0
Asset quality
Allowance for loan losses as % of nonaccrual and restructured loans		96	%		135		272
Allowance for loan losses as % of loans, net		0.98			0.78		0.80
Allowance for credit losses as % of loans, net (c)		1.02			0.82		0.84
Net charge-offs as % of average loans, net		0.41			0.19		0.14
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		1.08	%		0.63		0.32

(a) Tax-equivalent.

(b) The fourth quarter of 2007 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 $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 2

CHARLOTTE, N.C. – Wachovia Corp. (NYSE:WB) today reported net income of $51 million, or 3 cents per share, in the fourth quarter of 2007 compared with $2.30 billion, or $1.20 per share, in the fourth quarter of 2006.

Excluding after-tax net merger-related expenses of 5 cents per share in the fourth quarter of 2007 and 1 cent per share in the fourth quarter of 2006, earnings were $160 million, or 8 cents per share, in the fourth quarter of 2007 compared with $2.33 billion, or $1.21 per share, in the fourth quarter of 2006.

Full year 2007 net income was $6.31 billion, down 19 percent from $7.79 billion in 2006, and earnings per share were down 30 percent from 2006 to $3.26. Excluding after-tax net merger-related expenses of 8 cents in 2007 and 7 cents in 2006, earnings in 2007 were $6.47 billion, or $3.34 per share, compared with $7.91 billion, or $4.70 per share, in 2006.

“The continued turmoil in the capital markets and the dramatic change in the credit environment diminished our fourth quarter results substantially,” said Ken Thompson, Wachovia chairman and chief executive officer. “We took active and prudent steps in the second half of the year to deal with the market disruption and credit deterioration, and we believe this allows us to move forward from a position of strength despite the uncertain economic environment. For the full year, we earned $6.3 billion, paid $4.6 billion in dividends, and maintained a well-capitalized balance sheet even as we had $3.1 billion in net market-related valuation losses and increased our allowance for credit losses by $1.2 billion. Our management team and dedicated employees are focused intently on the strategic priorities that prepared us well for this more difficult economic environment: controlling expenses, managing risk appropriately, creating revenue synergies between our businesses, and continuing to provide industry-leading customer service. We’re excited about the future with our new partners from A.G. Edwards and with our newest banking markets in some of the nation’s fastest growing and affluent regions.”

Results in 2007 included the impact of the acquisition of A.G. Edwards, Inc., a retail brokerage firm headquartered in St. Louis, Missouri. This transaction was consummated on October 1, 2007, and the retail brokerage business was consolidated into Wachovia Securities LLC on January 1, 2008. Integration activity will continue through 2009.

Wachovia Corporation

	Three Months Ended
(In millions)	December 31, 2007			September 30, 2007	December 31, 2006
Net interest income(Tax-equivalent)	$	4,674		4,584	4,612
Fee and other income		2,526		2,797	4,011
Total revenue(Tax-equivalent)		7,200		7,381	8,623
Provision for credit losses		1,497		408	206
Noninterest expense		5,786		4,525	4,962
Income (loss) from continuing operations before income taxes (benefits)(Tax-equivalent)		(190	)	2,259	3,330
Income taxes (benefits)(Tax-equivalent)		(241	)	641	1,075
Net income		51		1,618	2,301
Average loans, net		449,805		429,801	412,561
Average core deposits	$	390,043		379,009	362,427

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

• Generated revenue of $7.2 billion on higher loan and deposit balances driven primarily by organic growth, while fee and other income declined due to net market disruption-related valuation losses of $1.7 billion and significantly reduced fee income related to the disruption in the capital markets.

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 3

• Increased net interest income modestly, reflecting higher average commercial loans, up 22 percent, and average consumer loans, up 1 percent, as well as solid deposit growth.

• Commercial loan growth was led by middle-market commercial, large corporate and international lending, while consumer loan growth, which benefited from lower mortgage prepayments, was led by traditional mortgage lending and auto loans.

• Average core deposits rose 8 percent and average low-cost core deposits were up 5 percent.

• Growth in lower spread loans and other earning assets, a shift in deposit mix and the effects of the inverted yield curve resulted in 21 basis points of margin compression, although the margin decline slowed to 4 basis points from the third quarter of 2007.

• Generated growth in fee and other income in key relationship management areas, with strength in service charges, up 11 percent, and higher commissions, up 53 percent, primarily related to the addition of A.G. Edwards. Asset management fees reached a new high, reflecting continued growth in retail brokerage managed account fees, trust and investment fees, and the addition of A.G. Edwards. Trading, securities losses and other income reflected the net valuation losses related to the market disruption.

• Recorded a 17 percent increase in noninterest expense largely reflecting the acquisition impact.

• Recorded a provision for credit losses of $1.5 billion, which exceeded net charge-offs by $1.0 billion. The provision largely reflected the recent significant deterioration in the residential housing market and the related portions of the commercial real estate portfolio, including higher expected loss factors for the consumer real estate and auto loan portfolios, and for the commercial portfolios following an extensive review of a large portion of the real estate financial services portfolio in light of this deterioration. Net charge-offs were $461 million, or an annualized 0.41 percent of average net loans. Total nonperforming assets including loans held for sale were $5.2 billion, or 1.08 percent of loans, foreclosed properties and loans held for sale, largely reflecting increases in consumer due to the effects of the weakened housing industry.

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 14 and 15 include a reconciliation of segment results to Wachovia’s consolidated results of operations in accordance with GAAP.

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 4

General Bank Highlights

	Three Months Ended
(In millions)	December 31, 2007			September 30, 2007	December 31, 2006
Net interest income(Tax-equivalent)	$	3,420		3,483	3,468
Fee and other income		963		969	956
Total revenue(Tax-equivalent)		4,428		4,497	4,461
Provision for credit losses		329		214	148
Noninterest expense		2,148		2,013	1,934
Segment earnings	$	1,239		1,441	1,510
Cash overhead efficiency ratio(Tax-equivalent)		48.52	%	44.77	43.36
Average loans, net	$	305,750		297,142	289,474
Average core deposits		296,560		290,354	280,069
Economic capital, average	$	11,721		11,554	11,147

General Bank

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

• Earnings of $1.2 billion, down $271 million, driven by a small decrease in revenue, a higher provision for credit losses and higher noninterest expense.

• A continued shift in the business mix reflecting customer preferences for fixed rate instead of variable rate loans and certificates of deposit over demand deposits.

• Average loan growth of 6 percent, reflecting double digit growth in wholesale businesses and small business, and 4 percent growth in consumer loans.

• 6 percent deposit growth led by consumer certificates of deposit, up $15.2 billion, and money market deposits, up $3.0 billion from year-end 2006. Net new retail checking accounts increased by 90,000 in the fourth quarter of 2007 compared with an increase of 87,000 in the fourth quarter of 2006. For the full year, net new retail checking accounts increased 935,000 in 2007 compared with an increase of 554,000 in 2006; this increase included more than 100,000 generated in the former World Savings branch network.

• Modest growth in fee and other income, with double digit growth in service charges and interchange income offsetting lower mortgage banking fee income and losses of $30 million on the sale of student loans.

• Noninterest expense up 11 percent, with expenses up across the board as organizational realignment drove salaries and severance costs higher. De novo branch activity continued, with 109 branches added and 128 consolidated in full year 2007. The increased investment drove the General Bank’s overhead efficiency ratio up 516 basis points to 48.52 percent.

• A $181 million increase in the provision for credit losses largely reflecting significant deterioration in consumer real estate, as well as losses in auto, partially offset by a decline in commercial real estate losses.

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 5

Wealth Management Highlights

	Three Months Ended
(In millions)	December 31, 2007			September 30, 2007	December 31, 2006
Net interest income(Tax-equivalent)	$	184		186	180
Fee and other income		215		184	200
Total revenue(Tax-equivalent)		402		374	384
Provision for credit losses		7		6	—
Noninterest expense		260		253	253
Segment earnings	$	85		74	84
Cash overhead efficiency ratio(Tax-equivalent)		64.87	%	67.39	65.57
Average loans, net	$	21,831		21,600	19,840
Average core deposits		16,772		16,943	17,255
Economic capital, average	$	655		652	635

Wealth Management

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

• Modest earnings growth to $85 million on 5 percent revenue growth, offset by 3 percent growth in expense and higher provision for credit losses.

• Strong fiduciary and asset management fees related to a pricing initiative implemented in the third quarter and other growth, all of which contributed to 8 percent growth in fee and other income. Insurance commissions declined largely due to nonstrategic insurance account dispositions.

• 2 percent growth in net interest income on 10 percent average loan growth, which offset spread compression.

• An increase in expense on modest growth in salaries and benefits including higher non-merger severance costs.

Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	December 31, 2007			September 30, 2007	December 31, 2006
Net interest income(Tax-equivalent)	$	988		839	776
Fee and other income		(789	)	21	1,363
Total revenue(Tax-equivalent)		162		822	2,102
Provision for credit losses		112		1	3
Noninterest expense		991		654	1,044
Segment earnings (loss)	$	(596	)	105	670
Cash overhead efficiency ratio(Tax-equivalent)		609.60	%	79.69	49.63
Average loans, net	$	91,646		82,993	72,699
Average core deposits		36,131		37,066	32,466
Economic capital, average	$	11,326		9,881	8,363

Corporate and Investment Bank

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

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 6

• A segment loss of $596 million driven by $1.6 billion in net valuation losses reflecting continued disruption in the capital markets and reduced origination volume in most market-related businesses.

• Market valuation losses, net of applicable hedges of:

• $1.0 billion in subprime residential asset-backed collateralized debt obligations and other related exposures, compared with $350 million in the prior quarter;

• $600 million in commercial mortgage structured products, compared with $488 million in the prior quarter;

• $123 million in consumer mortgage structured products, compared with $82 million in the prior quarter;

• $93 million gain in leveraged finance net of fees, compared with a net $272 million in losses in the prior quarter; and

• $59 million net gain in non-subprime collateralized debt obligations and other structured products, compared with $109 million net loss in the prior quarter.

• A 27 percent increase in net interest income, which reflected 26 percent growth in average loans particularly in real estate products in growth markets and international lending in emerging markets, as well as a shift from originate, warehouse and sell to originate and hold assets on the balance sheet.

• Lower principal investing compared with strong results in the prior year quarter and particularly from a very strong third quarter of 2007.

• Lower noninterest expense primarily related to lower incentive compensation.

• Provision of $112 million largely reflecting residential-related commercial real estate losses.

Capital Management Highlights

	Three Months Ended
(In millions)	December 31, 2007			September 30, 2007	December 31, 2006
Net interest income(Tax-equivalent)	$	323		271	258
Fee and other income		2,211		1,444	1,370
Total revenue(Tax-equivalent)		2,523		1,707	1,620
Provision for credit losses		—		—	—
Noninterest expense		1,972		1,273	1,232
Segment earnings	$	350		275	247
Cash overhead efficiency ratio(Tax-equivalent)		78.14	%	74.62	75.99
Average loans, net	$	2,295		2,142	1,419
Average core deposits		38,019		31,489	30,100
Economic capital, average	$	2,392		1,560	1,507

Capital Management

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

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 7

• Earnings of $350 million on 56 percent revenue growth, which reflected strength in retail brokerage managed account fees as well as the acquisitions of A.G. Edwards on October 1, 2007, and European Credit Management Ltd. (ECM) on January 31, 2007. Growth was partially offset by an additional $17 million valuation loss related to certain asset-backed commercial paper investments purchased in the third quarter of 2007 from Evergreen money market funds.

• Managed assets growth of 52 percent from year-end 2006 to $203.5 billion at year-end 2007, including $44.0 billion from A.G. Edwards.

• 60 percent growth in noninterest expense largely due to the effect of the A.G. Edwards and the ECM acquisitions, as well as higher commissions and litigation expense.

Total assets under management of $274.7 billion at December 31, 2007, decreased 1 percent from December 31, 2006, as the addition of $29.9 billion from acquisitions, net money market fund inflows of $9.3 billion and approximately $4.5 billion in market appreciation were offset by the $34.5 billion change in investment discretion of assets under management now solely managed by Wealth and other net outflows of $13.3 billion primarily related to the loss of one institutional client with minimal revenue impact. Total brokerage client assets grew 54 percent from year-end 2006 to $1.2 trillion, including $371.1 billion from A.G. Edwards.

***

Wachovia Corporation (NYSE:WB) is one of the nation’s largest diversified financial services companies, with assets of $782.9 billion and market capitalization of $75.3 billion at December 31, 2007. Wachovia provides a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services to customers through 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 $1.2 trillion in client assets through 17,900 registered representatives in 1,500 offices nationwide. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com; and investment products and services at evergreeninvestments.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 January 22, 2008.

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 11 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 23 and 24. 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

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WACHOVIA EARNS $6.3 BILLION, EPS OF $3.26 PER SHARE IN 2007/page 8

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 fourth quarter 2007 results and present an outlook for 2008 in a conference call and audio webcast beginning at 11 a.m. Eastern Standard Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to fourth 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 Fourth 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: Tuesday, January 22, by 1:00 p.m. EST and continuing through 5 p.m. EST Friday, March 21. Replay telephone number is 706-645-9291; access code: 206047152.

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 at 704-383-8178.

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL TABLES

TABLE OF CONTENTS

	PAGE
Financial Highlights—Five Quarters Ended December 31, 2007	10
Other Financial Data—Five Quarters Ended December 31, 2007	11
Consolidated Statements of Income—Five Quarters Ended December 31, 2007	12
Consolidated Statements of Income—Years Ended December 31, 2007 and 2006	13
Business Segments—Three Months Ended December 31, 2007 and September 30, 2007	14
Business Segments—Three Months Ended December 31, 2006	15
Loans—On-Balance Sheet, and Managed and Servicing Portfolios—Five Quarters Ended December 31, 2007	16
Allowance for Credit Losses—Five Quarters Ended December 31, 2007	17
Nonperforming Assets—Five Quarters Ended December 31, 2007	18
Consolidated Balance Sheets—Five Quarters Ended December 31, 2007	19
Net Interest Income Summaries—Five Quarters Ended December 31, 2007	20 -21
Net Interest Income Summaries—Years Ended December 31, 2007 and 2006	22
Reconciliation of Certain Non-GAAP Financial Measures—Five Quarters Ended December 31, 2007	23 -24

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2007								2006
(Dollars in millions, except per share data)	Fourth Quarter			Third Quarter		Second Quarter	First Quarter		Fourth Quarter
EARNINGS SUMMARY
Net interest income(GAAP)	$	4,630		4,551		4,449	4,500		4,577
Tax-equivalent adjustment		44		33		38	37		35
Net interest income(Tax-equivalent)		4,674		4,584		4,487	4,537		4,612
Fee and other income		2,526		2,797		4,240	3,734		4,011
Total revenue(Tax-equivalent)		7,200		7,381		8,727	8,271		8,623
Provision for credit losses		1,497		408		179	177		206
Other noninterest expense		5,488		4,397		4,755	4,493		4,772
Merger-related and restructuring expenses		187		36		32	10		49
Other intangible amortization		111		92		103	118		141
Total noninterest expense		5,786		4,525		4,890	4,621		4,962
Minority interest in income of consolidated subsidiaries		107		189		139	136		125
Income (loss) from continuing operations before income taxes (benefits)(Tax-equivalent)		(190	)	2,259		3,519	3,337		3,330
Income taxes (benefits)		(285	)	608		1,140	998		1,040
Tax-equivalent adjustment		44		33		38	37		35
Income from continuing operations		51		1,618		2,341	2,302		2,255
Discontinued operations, net of income taxes		—		—		—	—		46
Net income	$	51		1,618		2,341	2,302		2,301
Diluted earnings per common share	$	0.03		0.85		1.22	1.20		1.20
Return on average common stockholders’ equity		0.28	%	9.19		13.54	13.47		13.09
Return on average assets		0.03		0.88		1.33	1.35		1.31
Overhead efficiency ratio		80.36	%	61.31		56.02	55.88		57.53
Operating leverage	$	(1,441	)	(983	)	189	(13	)	665
ASSET QUALITY
Allowance for loan losses as % of loans, net		0.98	%	0.78		0.79	0.80		0.80
Allowance for loan losses as % of nonperforming assets		88		120		164	194		246
Allowance for credit losses as % of loans, net		1.02		0.82		0.83	0.84		0.84
Net charge-offs as % of average loans, net		0.41		0.19		0.14	0.15		0.14
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		1.08	%	0.63		0.47	0.40		0.32
CAPITAL ADEQUACY (a)
Tier I capital ratio		7.2	%	7.1		7.5	7.4		7.4
Total capital ratio		11.5		10.8		11.5	11.4		11.3
Leverage ratio		6.1	%	6.1		6.2	6.1		6.0
OTHER DATA
Average diluted common shares(In millions)		1,983		1,910		1,919	1,925		1,922
Actual common shares (In millions)(b)		1,980		1,901		1,903	1,913		1,904
Dividends paid per common share	$	0.64		0.64		0.56	0.56		0.56
Dividend payout ratio on common shares		2,133.33	%	75.29		45.90	46.67		46.67
Book value per common share (b)	$	37.66		36.90		36.40	36.47		36.61
Common stock price		38.03		50.15		51.25	55.05		56.95
Market capitalization (b)	$	75,302		95,326		97,530	105,330		108,443
Common stock price to book value (b)		101	%	136		141	151		156
FTE employees		121,890		109,724		110,493	110,369		109,460
Total financial centers/brokerage offices		4,894		4,167		4,135	4,167		4,126
ATMs		5,139		5,123		5,099	5,146		5,212

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

(b) Includes restricted stock for which the holder receives dividends and has full voting rights.

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2007								2006
(In millions)	Fourth Quarter			Third Quarter		Second Quarter	First Quarter		Fourth Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, AND DISCONTINUED OPERATIONS (a) (b)
Return on average common stockholders’ equity		0.86	%	9.31		13.66	13.50		12.98
Return on average assets		0.08		0.89		1.34	1.35		1.30
Overhead efficiency ratio		77.76		60.83		55.65	55.75		56.97
Overhead efficiency ratio excluding brokerage		77.39	%	57.78		51.73	52.31		53.55
Operating leverage	$	(1,290	)	(979	)	210	(51	)	675
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED OPERATIONS (a) (b) (c)
Dividend payout ratio on common shares		581.82	%	71.91		44.09	45.16		45.16
Return on average tangible common stockholders’ equity		3.09		22.70		33.57	33.27		31.58
Return on average tangible assets		0.12		0.98		1.47	1.49		1.43
Overhead efficiency ratio		76.21		59.59		54.47	54.33		55.33
Overhead efficiency ratio excluding brokerage		75.15	%	56.25		50.30	50.59		51.61
Operating leverage	$	(1,269	)	(991	)	197	(75	)	725
OTHER FINANCIAL DATA
Net interest margin		2.88	%	2.92		2.94	3.04		3.09
Fee and other income as % of total revenue		35.09		37.90		48.58	45.15		46.51
Effective income tax rate (d)		122.05		27.33		32.78	30.22		31.74
Effective tax rate (Tax-equivalent) (d) (e)		127.17	%	28.38		33.51	30.99		32.46
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	188,164		174,672		165,512	157,288		154,306
Consumer loans, net		261,641		255,129		255,745	257,973		258,255
Loans, net		449,805		429,801		421,257	415,261		412,561
Earning assets		650,140		628,773		605,978	593,663		596,893
Total assets		763,487		729,004		704,773	691,029		698,687
Core deposits		390,043		379,009		378,496	369,270		362,427
Total deposits		437,566		416,107		408,418	399,106		395,380
Interest-bearing liabilities		599,130		574,399		547,669	535,778		536,958
Stockholders’ equity	$	73,986		69,857		69,317	69,320		69,725
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	198,566		189,545		175,369	167,039		162,098
Consumer loans, net		263,388		259,661		253,751	254,624		258,060
Loans, net		461,954		449,206		429,120	421,663		420,158
Goodwill and other intangible assets
Goodwill		43,122		38,848		38,766	38,838		38,379
Deposit base		619		670		727	796		883
Customer relationships		1,410		620		651	684		662
Tradename		90		90		90	90		90
Total assets		782,896		754,168		715,428	702,669		707,121
Core deposits		397,405		377,865		378,188	377,358		371,771
Total deposits		449,129		421,937		410,030	405,270		407,458
Stockholders’ equity	$	76,872		70,140		69,266	69,786		69,716

(a) These financial measures are calculated by excluding from GAAP net income presented on page 10, $109 million, $21 million, $20 million, $6 million and $29 million in the fourth, third, second and first quarters of 2007, and in the fourth quarter 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 10 for the most directly comparable GAAP financial measure and pages 23 and 24 for a more detailed reconciliation.

(c) These financial measures are calculated by excluding from GAAP net income presented on page 10, $64 million, $60 million, $66 million, $76 million and $90 million in the fourth, third, second and first quarters of 2007, and in the fourth quarter 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 12

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2007							2006
(In millions, except per share data)	Fourth Quarter			Third Quarter		Second Quarter	First Quarter	Fourth Quarter
INTEREST INCOME
Interest and fees on loans	$	7,980		7,937		7,723	7,618	7,736
Interest and dividends on securities		1,616		1,529		1,474	1,478	1,491
Trading account interest		557		566		506	433	462
Other interest income		757		799		647	611	681
Total interest income		10,910		10,831		10,350	10,140	10,370
INTEREST EXPENSE
Interest on deposits		3,433		3,334		3,180	3,014	3,067
Interest on short-term borrowings		673		801		706	669	781
Interest on long-term debt		2,174		2,145		2,015	1,957	1,945
Total interest expense		6,280		6,280		5,901	5,640	5,793
Net interest income		4,630		4,551		4,449	4,500	4,577
Provision for credit losses		1,497		408		179	177	206
Net interest income after provision for credit losses		3,133		4,143		4,270	4,323	4,371
FEE AND OTHER INCOME
Service charges		716		689		667	614	646
Other banking fees		440		437		504	416	452
Commissions		970		600		649	659	633
Fiduciary and asset management fees		1,436		1,029		1,015	953	887
Advisory, underwriting and other investment banking fees		249		393		454	407	433
Trading account profits (losses)		(742	)	(437	)	195	128	29
Principal investing		41		372		298	48	142
Securities gains (losses)		(320	)	(34	)	23	53	47
Other income		(264	)	(252	)	435	456	742
Total fee and other income		2,526		2,797		4,240	3,734	4,011
NONINTEREST EXPENSE
Salaries and employee benefits		3,468		2,628		3,122	2,972	3,023
Occupancy		375		325		331	312	323
Equipment		334		283		309	307	314
Advertising		71		62		70	61	47
Communications and supplies		192		175		180	173	166
Professional and consulting fees		275		196		209	177	239
Other intangible amortization		111		92		103	118	141
Merger-related and restructuring expenses		187		36		32	10	49
Sundry expense		773		728		534	491	660
Total noninterest expense		5,786		4,525		4,890	4,621	4,962
Minority interest in income of consolidated subsidiaries		107		189		139	136	125
Income (loss) from continuing operations before income taxes (benefits)		(234	)	2,226		3,481	3,300	3,295
Income taxes (benefits)		(285	)	608		1,140	998	1,040
Income from continuing operations		51		1,618		2,341	2,302	2,255
Discontinued operations, net of income taxes		—		—		—	—	46
Net income	$	51		1,618		2,341	2,302	2,301
PER COMMON SHARE DATA
Basic earnings
Income from continuing operations	$	0.03		0.86		1.24	1.22	1.20
Net income		0.03		0.86		1.24	1.22	1.22
Diluted earnings
Income from continuing operations		0.03		0.85		1.22	1.20	1.18
Net income		0.03		0.85		1.22	1.20	1.20
Cash dividends	$	0.64		0.64		0.56	0.56	0.56
AVERAGE COMMON SHARES
Basic		1,959		1,885		1,891	1,894	1,889
Diluted		1,983		1,910		1,919	1,925	1,922

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Years Ended December 31,
(In millions, except per share data)	2007			2006
INTEREST INCOME
Interest and fees on loans	$	31,258		21,976
Interest and dividends on securities		6,097		6,433
Trading account interest		2,062		1,575
Other interest income		2,814		2,281
Total interest income		42,231		32,265
INTEREST EXPENSE
Interest on deposits		12,961		9,119
Interest on short-term borrowings		2,849		3,114
Interest on long-term debt		8,291		4,783
Total interest expense		24,101		17,016
Net interest income		18,130		15,249
Provision for credit losses		2,261		434
Net interest income after provision for credit losses		15,869		14,815
FEE AND OTHER INCOME
Service charges		2,686		2,480
Other banking fees		1,797		1,756
Commissions		2,878		2,406
Fiduciary and asset management fees		4,433		3,368
Advisory, underwriting and other investment banking fees		1,503		1,345
Trading account profits (losses)		(856	)	535
Principal investing		759		525
Securities gains (losses)		(278	)	118
Other income		375		2,132
Total fee and other income		13,297		14,665
NONINTEREST EXPENSE
Salaries and employee benefits		12,190		10,903
Occupancy		1,343		1,173
Equipment		1,233		1,184
Advertising		264		204
Communications and supplies		720		653
Professional and consulting fees		857		790
Other intangible amortization		424		423
Merger-related and restructuring expenses		265		179
Sundry expense		2,526		2,087
Total noninterest expense		19,822		17,596
Minority interest in income of consolidated subsidiaries		571		414
Income before income taxes		8,773		11,470
Income taxes		2,461		3,725
Income from continuing operations		6,312		7,745
Discontinued operations, net of income taxes		—		46
Net income	$	6,312		7,791
PER COMMON SHARE DATA
Basic earnings
Income from continuing operations	$	3.31		4.70
Net income		3.31		4.72
Diluted earnings
Income from continuing operations		3.26		4.61
Net income		3.26		4.63
Cash dividends	$	2.40		2.14
AVERAGE COMMON SHARES
Basic		1,907		1,651
Diluted		1,934		1,681

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended December 31, 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)	$	3,420	184	988		323		(241	)	(44	)	4,630
Fee and other income		963	215	(789	)	2,211		(74	)	—		2,526
Intersegment revenue		45	3	(37	)	(11	)	—		—		—
Total revenue (a)		4,428	402	162		2,523		(315	)	(44	)	7,156
Provision for credit losses		329	7	112		—		1,049		—		1,497
Noninterest expense		2,148	260	991		1,972		228		187		5,786
Minority interest		—	—	—		—		118		(11	)	107
Income taxes (benefits)		701	50	(364	)	200		(805	)	(67	)	(285	)
Tax-equivalent adjustment		11	—	19		1		13		(44	)	—
Net income (loss)	$	1,239	85	(596	)	350		(918	)	(109	)	51
	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)	$	3,483	186	839		271		(195	)	(33	)	4,551
Fee and other income		969	184	21		1,444		179		—		2,797
Intersegment revenue		45	4	(38	)	(8	)	(3	)	—		—
Total revenue (a)		4,497	374	822		1,707		(19	)	(33	)	7,348
Provision for credit losses		214	6	1		—		187		—		408
Noninterest expense		2,013	253	654		1,273		296		36		4,525
Minority interest		—	—	—		—		189		—		189
Income taxes (benefits)		818	41	53		159		(448	)	(15	)	608
Tax-equivalent adjustment		11	—	9		—		13		(33	)	—
Net income (loss)	$	1,441	74	105		275		(256	)	(21	)	1,618

PAGE 15

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended December 31, 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)	$	3,468	180	776		258		(70	)	(35	)	4,577
Fee and other income		956	200	1,363		1,370		122		—		4,011
Intersegment revenue		37	4	(37	)	(8	)	4		—		—
Total revenue (a)		4,461	384	2,102		1,620		56		(35	)	8,588
Provision for credit losses		148	—	3		—		55		—		206
Noninterest expense		1,934	253	1,044		1,232		450		49		4,962
Minority interest		—	—	—		—		124		1		125
Income taxes (benefits)		859	47	374		141		(360	)	(21	)	1,040
Tax-equivalent adjustment		10	—	11		—		14		(35	)	—
Income from continuing operations		1,510	84	670		247		(227	)	(29	)	2,255
Discontinued operations, net of income taxes		—	—	—		—		46		—		46
Net income (loss)	$	1,510	84	670		247		(181	)	(29	)	2,301

(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 16

WACHOVIA CORPORATION AND SUBSIDIARIES

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

(Unaudited)

	2007									2006
(In millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL
Commercial, financial and agricultural	$	112,509		109,269		102,397		99,687		96,285
Real estate—construction and other		18,543		18,167		17,449		16,965		16,182
Real estate—mortgage		23,846		21,514		20,448		20,130		20,026
Lease financing		23,913		23,966		24,083		24,053		25,341
Foreign		29,540		26,471		20,959		16,240		13,464
Total commercial		208,351		199,387		185,336		177,075		171,298
CONSUMER
Real estate secured		227,719		225,355		220,293		220,682		225,826
Student loans		8,149		7,742		6,757		8,479		7,768
Installment loans		25,635		24,763		25,017		23,665		22,660
Total consumer		261,503		257,860		252,067		252,826		256,254
Total loans		469,854		457,247		437,403		429,901		427,552
Unearned income		(7,900	)	(8,041	)	(8,283	)	(8,238	)	(7,394	)
Loans, net(On-balance sheet)	$	461,954		449,206		429,120		421,663		420,158
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	208,351		199,387		185,336		177,075		171,298
Securitized loans—off-balance sheet		131		142		170		181		194
Loans held for sale		9,414		13,905		11,573		10,467		8,866
Total commercial		217,896		213,434		197,079		187,723		180,358
CONSUMER
Real estate secured
On-balance sheet loan portfolio		227,719		225,355		220,293		220,682		225,826
Securitized loans—off-balance sheet		7,230		7,625		8,112		6,595		5,611
Securitized loans included in securities		10,755		5,963		6,091		5,629		5,321
Loans held for sale		4,816		3,583		4,079		4,089		3,420
Total real estate secured		250,520		242,526		238,575		236,995		240,178
Student
On-balance sheet loan portfolio		8,149		7,742		6,757		8,479		7,768
Securitized loans—off-balance sheet		2,811		2,856		2,905		3,045		3,128
Securitized loans included in securities		52		52		52		52		52
Loans held for sale		—		1,968		2,046		—		—
Total student		11,012		12,618		11,760		11,576		10,948
Installment
On-balance sheet loan portfolio		25,635		24,763		25,017		23,665		22,660
Securitized loans—off-balance sheet		2,263		2,572		3,105		2,851		3,276
Securitized loans included in securities		47		55		116		126		137
Loans held for sale		2,542		1,975		35		476		282
Total installment		30,487		29,365		28,273		27,118		26,355
Total consumer		292,019		284,509		278,608		275,689		277,481
Total managed portfolio	$	509,915		497,943		475,687		463,412		457,839
SERVICING PORTFOLIO (b)
Commercial	$	353,464		337,721		298,374		271,038		250,652
Consumer	$	27,967		28,474		26,789		25,952		21,039

(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 17

WACHOVIA CORPORATION AND SUBSIDIARIES

ALLOWANCE FOR CREDIT LOSSES

(Unaudited)

	2007									2006
(In millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period	$	3,691		3,552		3,533		3,514		3,163
Provision for credit losses		1,467		381		168		175		204
Provision for credit losses relating to loans transferred to loans held for sale or sold		6		3		4		1		7
Provision for credit losses for unfunded lending commitments		24		24		7		1		(5	)
LOAN LOSSES
Commercial, financial and agricultural		(67	)	(41	)	(39	)	(34	)	(32	)
Commercial real estate—construction and mortgage		(117	)	(5	)	(4	)	(6	)	(10	)
Total commercial		(184	)	(46	)	(43	)	(40	)	(42	)
Real estate secured		(156	)	(59	)	(40	)	(33	)	(29	)
Student loans		(4	)	(5	)	(2	)	(3	)	(5	)
Installment and other loans (b)		(225	)	(168	)	(138	)	(142	)	(135	)
Total consumer		(385	)	(232	)	(180	)	(178	)	(169	)
Total loan losses		(569	)	(278	)	(223	)	(218	)	(211	)
LOAN RECOVERIES
Commercial, financial and agricultural		22		9		15		9		27
Commercial real estate—construction and mortgage		—		3		—		3		1
Total commercial		22		12		15		12		28
Real estate secured		9		12		11		6		7
Student loans		2		3		—		1		3
Installment and other loans (b)		75		45		47		44		33
Total consumer		86		60		58		51		43
Total loan recoveries		108		72		73		63		71
Net charge-offs		(461	)	(206	)	(150	)	(155	)	(140	)
Balance of acquired entities at purchase date		—		—		—		—		303
Allowance relating to loans acquired, transferred to loans held for sale or sold		(10	)	(63	)	(10	)	(3	)	(18	)
Balance, end of period	$	4,717		3,691		3,552		3,533		3,514
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses	$	4,507		3,505		3,390		3,378		3,360
Reserve for unfunded lending commitments		210		186		162		155		154
Total allowance for credit losses	$	4,717		3,691		3,552		3,533		3,514
ALLOWANCE FOR LOAN LOSSES
as % of loans, net		0.98	%	0.78		0.79		0.80		0.80
as % of nonaccrual and restructured loans (c) (d)		96		135		182		213		272
as % of nonperforming assets (c)		88		120		164		194		246
ALLOWANCE FOR CREDIT LOSSES
as % of loans, net		1.02	%	0.82		0.83		0.84		0.84
NET CHARGE-OFFS AS % OF AVERAGE LOANS, NET (e)
Commercial, financial and agricultural		0.06	%	0.10		0.07		0.08		0.02
Commercial real estate—construction and mortgage		1.09		0.02		0.04		0.04		0.10
Total commercial		0.34		0.08		0.07		0.07		0.04
Real estate secured		0.26		0.08		0.05		0.05		0.04
Student loans		0.10		0.14		0.07		0.10		0.09
Installment and other loans (b)		2.35		1.99		1.47		1.67		1.79
Total consumer		0.46		0.27		0.19		0.20		0.19
Total as % of average loans, net		0.41	%	0.19		0.14		0.15		0.14
CONSUMER REAL ESTATE SECURED NET CHARGE-OFFS
First lien	$	(122	)	(32	)	(17	)	(15	)	(15	)
Second lien		(25	)	(15	)	(12	)	(12	)	(7	)
Total consumer real estate secured net charge-offs	$	(147	)	(47	)	(29	)	(27	)	(22	)

(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 18

WACHOVIA CORPORATION AND SUBSIDIARIES

NONPERFORMING ASSETS

(Unaudited)

	2007						2006
(In millions)	Fourth Quarter			Third Quarter	Second Quarter	First Quarter	Fourth Quarter
NONPERFORMING ASSETS
Nonaccrual loans
Commercial
Commercial, financial and agricultural	$	602		354	318	303	226
Commercial real estate—construction and mortgage		1,059		289	161	117	93
Total commercial		1,661		643	479	420	319
Consumer
Real estate secured
First lien		2,948		1,865	1,293	1,076	868
Second lien		58		41	43	37	32
Installment and other loans (a)		42		45	42	51	15
Total consumer		3,048		1,951	1,378	1,164	915
Total nonaccrual loans		4,709		2,594	1,857	1,584	1,234
Foreclosed properties (b)		389		334	207	155	132
Total nonperforming assets	$	5,098		2,928	2,064	1,739	1,366
as % of loans, net, and foreclosed properties (c)		1.10	%	0.65	0.48	0.41	0.32
Nonperforming assets included in loans held for sale
Commercial	$	—		—	—	1	1
Consumer		62		59	42	25	15
Total nonperforming assets included in loans held for sale		62		59	42	26	16
Nonperforming assets included in loans and in loans held for sale	$	5,160		2,987	2,106	1,765	1,382
as % of loans, net, foreclosed properties and loans held for sale (d)		1.08	%	0.63	0.47	0.40	0.32
PAST DUE LOANS 90 DAYS AND OVER, AND NONACCRUAL LOANS
Accruing loans past due 90 days and over	$	708		590	562	555	650
Nonaccrual loans		4,709		2,594	1,857	1,584	1,234
Total past due loans 90 days and over, and nonaccrual loans	$	5,417		3,184	2,419	2,139	1,884
Commercial as % of loans, net		0.89	%	0.38	0.31	0.28	0.23
Consumer as % of loans, net		1.39	%	0.95	0.74	0.66	0.59

(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 19

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2007									2006
(In millions, except per share data)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
ASSETS
Cash and due from banks	$	15,124		12,681		12,065		12,593		15,826
Interest-bearing bank balances		3,057		4,449		2,726		2,591		2,167
Federal funds sold and securities purchased under resale agreements		15,449		11,995		11,511		10,322		16,923
Total cash and cash equivalents		33,630		29,125		26,302		25,506		34,916
Trading account assets		55,882		54,835		51,540		44,161		44,741
Securities		115,037		111,827		106,184		106,841		108,619
Loans, net of unearned income		461,954		449,206		429,120		421,663		420,158
Allowance for loan losses		(4,507	)	(3,505	)	(3,390	)	(3,378	)	(3,360	)
Loans, net		457,447		445,701		425,730		418,285		416,798
Loans held for sale		16,772		21,431		17,733		15,032		12,568
Premises and equipment		6,605		6,002		6,080		6,058		6,141
Due from customers on acceptances		1,418		1,295		831		992		855
Goodwill		43,122		38,848		38,766		38,838		38,379
Other intangible assets		2,119		1,380		1,468		1,570		1,635
Other assets		50,864		43,724		40,794		45,386		42,469
Total assets	$	782,896		754,168		715,428		702,669		707,121
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		60,893		56,825		62,112		63,399		66,572
Interest-bearing deposits		388,236		365,112		347,918		341,871		340,886
Total deposits		449,129		421,937		410,030		405,270		407,458
Short-term borrowings		50,393		62,714		52,715		47,144		49,157
Bank acceptances outstanding		1,424		1,303		840		1,004		863
Trading account liabilities		21,585		17,771		19,319		17,291		18,228
Other liabilities		19,151		18,424		18,080		16,741		20,004
Long-term debt		161,007		158,584		142,047		142,334		138,594
Total liabilities		702,689		680,733		643,031		629,784		634,304
Minority interest in net assets of consolidated subsidiaries		3,335		3,295		3,131		3,099		3,101
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at December 31, 2007		—		—		—		—		—
Non-Cumulative Perpetual Class A Preferred Stock, Series I, $100,000 liquidation preference per share, 25,010 shares authorized		—		—		—		—		—
Non-Cumulative Perpetual Class A Preferred Stock, Series J, $1,000 liquidation preference per share, 92 million shares issued and outstanding at December 31, 2007		2,300		—		—		—		—
Common stock, $3.33-1/3 par value, authorized 3 billion shares, outstanding 1.960 billion shares at December 31, 2007		6,534		6,283		6,289		6,316		6,300
Paid-in capital		56,149		51,938		51,905		52,026		51,793
Retained earnings		13,456		14,670		14,335		13,378		13,723
Accumulated other comprehensive income, net		(1,567	)	(2,751	)	(3,263	)	(1,934	)	(2,100	)
Total stockholders’ equity		76,872		70,140		69,266		69,786		69,716
Total liabilities and stockholders’ equity	$	782,896		754,168		715,428		702,669		707,121

PAGE 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	FOURTH QUARTER 2007						THIRD 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	$	5,083		64	5.05	%	$	6,459		93	5.68	%
Federal funds sold and securities purchased under resale agreements		12,901		155	4.77			14,206		194	5.42
Trading account assets		37,694		569	6.04			38,737		575	5.93
Securities		115,436		1,625	5.62			111,424		1,522	5.46
Loans
Commercial
Commercial, financial and agricultural		111,500		1,908	6.79			106,263		1,927	7.19
Real estate—construction and other		18,435		318	6.85			17,795		344	7.66
Real estate—mortgage		22,973		426	7.36			20,883		406	7.71
Lease financing		7,374		145	7.82			7,523		146	7.80
Foreign		27,882		380	5.42			22,208		308	5.53
Total commercial		188,164		3,177	6.70			174,672		3,131	7.12
Consumer
Real estate secured		227,893		4,042	7.08			223,356		4,070	7.28
Student loans		8,073		126	6.19			7,299		122	6.61
Installment loans		25,675		651	10.04			24,474		614	9.99
Total consumer		261,641		4,819	7.35			255,129		4,806	7.52
Total loans		449,805		7,996	7.08			429,801		7,937	7.36
Loans held for sale		18,998		360	7.53			20,209		363	7.14
Other earning assets		10,223		166	6.48			7,937		138	6.91
Total earning assets excluding derivatives		650,140		10,935	6.70			628,773		10,822	6.86
Risk management derivatives (a)		—		19	0.01			—		42	0.02
Total earning assets including derivatives		650,140		10,954	6.71			628,773		10,864	6.88
Cash and due from banks		12,028						11,134
Other assets		101,319						89,097
Total assets	$	763,487					$	729,004
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		83,370		345	1.64			81,851		357	1.73
Money market accounts		121,717		949	3.09			116,404		980	3.34
Other consumer time		127,061		1,557	4.86			122,474		1,507	4.88
Foreign		27,354		306	4.44			23,322		292	4.97
Other time		20,169		263	5.16			13,776		187	5.40
Total interest-bearing deposits		379,671		3,420	3.57			357,827		3,323	3.68
Federal funds purchased and securities sold under repurchase agreements		36,386		413	4.50			44,334		556	4.98
Commercial paper		7,272		78	4.27			5,799		65	4.42
Securities sold short		6,728		61	3.62			7,420		70	3.74
Other short-term borrowings		10,369		58	2.24			7,793		55	2.74
Long-term debt		158,704		2,129	5.34			151,226		2,067	5.44
Total interest-bearing liabilities excluding derivatives		599,130		6,159	4.08			574,399		6,136	4.24
Risk management derivatives (a)		—		121	0.08			—		144	0.10
Total interest-bearing liabilities including derivatives		599,130		6,280	4.16			574,399		6,280	4.34
Noninterest-bearing deposits		57,895						58,280
Other liabilities		32,476						26,468
Stockholders’ equity		73,986						69,857
Total liabilities and stockholders’ equity	$	763,487					$	729,004
Interest income and rate earned—including derivatives			$	10,954	6.71	%			$	10,864	6.88	%
Interest expense and equivalent rate paid—including derivatives				6,280	3.83					6,280	3.96
Net interest income and margin—including derivatives			$	4,674	2.88	%			$	4,584	2.92	%

(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

NET INTEREST INCOME SUMMARIES

(Unaudited)

SECOND QUARTER 2007						FIRST QUARTER 2007						FOURTH 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
$	3,384		50	6.00	%	$	1,523		30	7.80	%	$	3,596		54	5.95	%
	12,110		158	5.25			14,124		177	5.07			20,830		268	5.11
	35,165		519	5.90			29,681		442	5.97			31,069		469	6.03
	108,433		1,467	5.41			108,071		1,461	5.42			108,543		1,467	5.40
	101,012		1,805	7.16			98,413		1,736	7.16			96,359		1,726	7.10
	17,334		329	7.62			16,508		313	7.69			16,091		311	7.67
	20,175		378	7.53			20,231		380	7.61			19,830		380	7.61
	7,759		150	7.74			7,730		150	7.75			9,674		166	6.88
	19,232		265	5.51			14,406		196	5.49			12,352		170	5.49
	165,512		2,927	7.09			157,288		2,775	7.15			154,306		2,753	7.08
	222,096		4,042	7.28			225,909		4,148	7.36			226,870		4,240	7.47
	8,850		141	6.42			8,524		136	6.47			8,886		145	6.49
	24,799		609	9.38			23,540		566	9.42			22,499		546	9.62
	255,745		4,792	7.46			257,973		4,850	7.52			258,255		4,931	7.63
	421,257		7,719	7.31			415,261		7,625	7.38			412,561		7,684	7.42
	17,644		285	6.47			16,748		255	6.16			11,928		200	6.70
	7,985		144	7.23			8,255		139	6.82			8,366		149	7.05
	605,978		10,342	6.82			593,663		10,129	6.86			596,893		10,291	6.87
	—		46	0.03			—		48	0.03			—		114	0.08
	605,978		10,388	6.85			593,663		10,177	6.89			596,893		10,405	6.95
	11,533						12,260						12,418
	87,262						85,106						89,376
$	704,773					$	691,029					$	698,687
	83,977		367	1.75			84,247		373	1.80			82,924		398	1.90
	111,562		976	3.51			107,785		917	3.45			104,620		913	3.46
	120,684		1,455	4.84			116,262		1,369	4.77			111,858		1,310	4.65
	21,871		270	4.96			20,802		249	4.85			20,245		241	4.73
	8,051		107	5.30			9,034		119	5.36			12,708		166	5.17
	346,145		3,175	3.68			338,130		3,027	3.63			332,355		3,028	3.61
	38,031		473	4.98			35,142		430	4.97			43,732		537	4.87
	5,143		60	4.67			4,920		57	4.72			5,043		60	4.72
	7,158		67	3.75			8,709		83	3.86			9,934		94	3.75
	7,688		52	2.77			6,898		44	2.54			6,530		38	2.38
	143,504		1,923	5.37			141,979		1,880	5.35			139,364		1,873	5.35
	547,669		5,750	4.21			535,778		5,521	4.17			536,958		5,630	4.16
	—		151	0.11			—		119	0.09			—		163	0.13
	547,669		5,901	4.32			535,778		5,640	4.26			536,958		5,793	4.29
	62,273						60,976						63,025
	25,514						24,955						28,979
	69,317						69,320						69,725
$	704,773					$	691,029					$	698,687
		$	10,388	6.85	%			$	10,177	6.89	%			$	10,405	6.95	%
			5,901	3.91					5,640	3.85					5,793	3.86
		$	4,487	2.94	%			$	4,537	3.04	%			$	4,612	3.09	%

PAGE 22

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	YEAR ENDED 2007						YEAR ENDED 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	$	4,128		237	5.74	%	$	2,793		144	5.16	%
Federal funds sold and securities purchased under resale agreements		13,334		684	5.13			18,911		910	4.82
Trading account assets		35,351		2,105	5.95			29,695		1,615	5.44
Securities		110,863		6,075	5.48			118,170		6,353	5.38
Loans
Commercial
Commercial, financial and agricultural		104,338		7,376	7.07			92,100		6,365	6.91
Real estate—construction and other		17,524		1,304	7.44			15,259		1,139	7.46
Real estate—mortgage		21,073		1,590	7.55			19,904		1,477	7.42
Lease financing		7,596		591	7.78			9,836		684	6.95
Foreign		20,972		1,149	5.48			11,360		588	5.18
Total commercial		171,503		12,010	7.00			148,459		10,253	6.91
Consumer
Real estate secured		224,815		16,302	7.25			130,275		9,008	6.91
Student loans		8,183		525	6.42			9,975		633	6.35
Installment loans		24,627		2,440	9.71			19,013		1,787	9.40
Total consumer		257,625		19,267	7.46			159,263		11,428	7.18
Total loans		429,128		31,277	7.28			307,722		21,681	7.05
Loans held for sale		18,411		1,263	6.86			10,428		707	6.78
Other earning assets		8,603		587	6.83			6,343		479	7.54
Total earning assets excluding derivatives		619,818		42,228	6.81			494,062		31,889	6.45
Risk management derivatives (a)		—		155	0.02			—		531	0.11
Total earning assets including derivatives		619,818		42,383	6.83			494,062		32,420	6.56
Cash and due from banks		11,737						12,300
Other assets		90,736						73,972
Total assets	$	722,291					$	580,334
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		83,355		1,442	1.73			79,194		1,389	1.75
Money market accounts		114,411		3,822	3.34			100,824		3,209	3.18
Other consumer time		121,652		5,888	4.84			64,872		2,730	4.21
Foreign		23,355		1,117	4.78			20,305		906	4.46
Other time		12,791		676	5.28			13,949		707	5.07
Total interest-bearing deposits		355,564		12,945	3.64			279,144		8,941	3.20
Federal funds purchased and securities sold under repurchase agreements		38,493		1,872	4.86			48,457		2,212	4.56
Commercial paper		5,790		260	4.49			4,775		215	4.50
Securities sold short		7,498		281	3.75			9,168		313	3.41
Other short-term borrowings		8,195		209	2.55			6,431		144	2.26
Long-term debt		148,906		7,999	5.37			87,178		4,605	5.28
Total interest-bearing liabilities excluding derivatives		564,446		23,566	4.18			435,153		16,430	3.78
Risk management derivatives (a)		—		535	0.09			—		586	0.13
Total interest-bearing liabilities including derivatives		564,446		24,101	4.27			435,153		17,016	3.91
Noninterest-bearing deposits		59,843						64,136
Other liabilities		27,371						26,782
Stockholders’ equity		70,631						54,263
Total liabilities and stockholders’ equity	$	722,291					$	580,334
Interest income and rate earned—including derivatives			$	42,383	6.83	%			$	32,420	6.56	%
Interest expense and equivalent rate paid—including derivatives				24,101	3.89					17,016	3.44
Net interest income and margin—including derivatives			$	18,282	2.94	%			$	15,404	3.12	%

(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 23

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2007									2006
(In millions, except per share data)	*	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
INCOME FROM CONTINUING OPERATIONS
Net income(GAAP)	A	$	51		1,618		2,341		2,302		2,301
Discontinued operations, net of income taxes(GAAP)			—		—		—		—		(46	)
Income from continuing operations(GAAP)			51		1,618		2,341		2,302		2,255
Merger-related and restructuring expenses(GAAP)			109		21		20		6		29
Earnings excluding merger-related and restructuring expenses, and discontinued operations	B		160		1,639		2,361		2,308		2,284
Other intangible amortization(GAAP)			64		60		66		76		90
Earnings excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C	$	224		1,699		2,427		2,384		2,374
RETURN ON AVERAGE COMMON STOCKHOLDERS' EQUITY
Average common stockholders’ equity(GAAP)	D	$	73,599		69,857		69,317		69,320		69,725
Merger-related and restructuring expenses(GAAP)			100		36		14		1		95
Discontinued operations(GAAP)			—		—		—		—		(8	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, and discontinued operations	E		73,699		69,893		69,331		69,321		69,812
Average intangible assets(GAAP)	F		(44,941	)	(40,198	)	(40,328	)	(40,263	)	(39,979	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	G	$	28,758		29,695		29,003		29,058		29,833
Return on average common stockholders’ equity
GAAP	A/D		0.28	%	9.19		13.54		13.47		13.09
Excluding merger-related and restructuring expenses, and discontinued operations	B/E		0.86		9.31		13.66		13.50		12.98
Return on average tangible common stockholders’ equity
GAAP	A/D+F		0.71		21.64		32.38		32.14		30.68
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/G		3.09	%	22.70		33.57		33.27		31.58
RETURN ON AVERAGE ASSETS
Average assets(GAAP)	H	$	763,487		729,004		704,773		691,029		698,687
Average intangible assets(GAAP)			(44,941	)	(40,198	)	(40,328	)	(40,263	)	(39,979	)
Average tangible assets(GAAP)	I		718,546		688,806		664,445		650,766		658,708
Average assets(GAAP)			763,487		729,004		704,773		691,029		698,687
Merger-related and restructuring expenses (GAAP)			100		36		14		1		95
Discontinued operations(GAAP)			—		—		—		—		(8	)
Average assets, excluding merger-related and restructuring expenses, and discontinued operations	J		763,587		729,040		704,787		691,030		698,774
Average intangible assets(GAAP)			(44,941	)	(40,198	)	(40,328	)	(40,263	)	(39,979	)
Average tangible assets, excluding merger-related and restructuring expenses, and discontinued operations	K	$	718,646		688,842		664,459		650,767		658,795
Return on average assets
GAAP	A/H		0.03	%	0.88		1.33		1.35		1.31
Excluding merger-related and restructuring expenses, and discontinued operations	B/J		0.08		0.89		1.34		1.35		1.30
Return on average tangible assets
GAAP	A/I		0.03		0.93		1.41		1.43		1.39
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/K		0.12	%	0.98		1.47		1.49		1.43

PAGE 24

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2007									2006
(In millions, except per share data)	*	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense(GAAP)	L	$	5,786		4,525		4,890		4,621		4,962
Merger-related and restructuring expenses(GAAP)			(187	)	(36	)	(32	)	(10	)	(49	)
Noninterest expense, excluding merger-related and restructuring expenses	M		5,599		4,489		4,858		4,611		4,913
Other intangible amortization(GAAP)			(111	)	(92	)	(103	)	(118	)	(141	)
Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization	N	$	5,488		4,397		4,755		4,493		4,772
Net interest income(GAAP)		$	4,630		4,551		4,449		4,500		4,577
Tax-equivalent adjustment			44		33		38		37		35
Net interest income(Tax-equivalent)			4,674		4,584		4,487		4,537		4,612
Fee and other income(GAAP)			2,526		2,797		4,240		3,734		4,011
Total	O	$	7,200		7,381		8,727		8,271		8,623
Retail Brokerage Services, excluding insurance
Noninterest expense(GAAP)	P	$	1,743		1,055		1,094		1,036		1,021
Net interest income(GAAP)		$	308		257		251		252		249
Tax-equivalent adjustment			1		—		—		—		—
Net interest income(Tax-equivalent)			309		257		251		252		249
Fee and other income(GAAP)			1,908		1,180		1,202		1,185		1,109
Total	Q	$	2,217		1,437		1,453		1,437		1,358
Overhead efficiency ratios
GAAP	L/O		80.36	%	61.31		56.02		55.88		57.53
Excluding merger-related and restructuring expenses	M/O		77.76		60.83		55.65		55.75		56.97
Excluding merger-related and restructuring expenses, and brokerage	M-P/O-Q		77.39		57.78		51.73		52.31		53.55
Excluding merger-related and restructuring expenses, and other intangible amortization	N/O		76.21		59.59		54.47		54.33		55.33
Excluding merger-related and restructuring expenses, other intangible amortization and brokerage	N-P/O-Q		75.15	%	56.25		50.30		50.59		51.61
OPERATING LEVERAGE
Operating leverage(GAAP)		$	(1,441	)	(983	)	189		(13	)	665
Merger-related and restructuring expenses(GAAP)			151		4		21		(38	)	10
Operating leverage, excluding merger-related and restructuring expenses			(1,290	)	(979	)	210		(51	)	675
Other intangible amortization(GAAP)			21		(12	)	(13	)	(24	)	50
Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization		$	(1,269	)	(991	)	197		(75	)	725
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	R	$	0.64		0.64		0.56		0.56		0.56
Diluted earnings per common share(GAAP)	S	$	0.03		0.85		1.22		1.20		1.20
Merger-related and restructuring expenses(GAAP)			0.05		0.01		0.01		—		0.01
Other intangible amortization(GAAP)			0.03		0.03		0.04		0.04		0.05
Discontinued operations(GAAP)			—		—		—		—		(0.02	)
Diluted earnings per common share, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	T	$	0.11		0.89		1.27		1.24		1.24
Dividend payout ratios
GAAP	R/S		2,133.33	%	75.29		45.90		46.67		46.67
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	R/T		581.82	%	71.91		44.09		45.16		45.16

* The letters included in the columns are provided to show how the various ratios presented in the tables on pages 23 and 24 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.