CHARLOTTE, N.C., July 22, 2008 /PRNewswire-FirstCall via COMTEX/ ----Consistent with previously announced expectations, Wachovia today reported a net loss in the second quarter of 2008 of $8.9 billion, or a net loss of $4.20 per share, including a $6.1 billion noncash goodwill impairment charge in commercial-related subsegments reflecting declining market valuations and asset values. The goodwill impairment charge has no impact on Wachovia's tangible capital levels, regulatory capital ratios or on liquidity.

Wachovia added $5.6 billion to its loan loss reserve to cover net charge-offs and increase the reserve by $4.2 billion.

Excluding goodwill impairment and other notable items that drove the quarter's loss, Wachovia generated solid underlying growth on $7.5 billion in revenue. Revenue was driven by higher loans and deposits and strength in traditional banking fees, while strong fiduciary and asset management fees and brokerage commissions largely reflected the A.G. Edwards acquisition.

"These bottom-line results are disappointing and unacceptable," said Lanty L. Smith, Wachovia's board chairman, who served as interim chief executive officer beginning June 1. "While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility. Our company is facing up to these issues, is addressing the challenges head-on and has redirected near-term strategic priorities."

Two immediate actions were announced: First, reducing the quarterly common stock dividend to five cents per share, which will conserve approximately $700 million of capital per quarter. The dividend is payable on September 15, 2008, to shareholders of record on August 29, 2008. The second immediate action is exiting the General Bank wholesale mortgage origination channel. Earlier the company ceased offering the negative amortization option for the Pick-a-Pay mortgage product and committed to work with customers to refinance existing Pick-a-Pay mortgages into conventional mortgage products. Approximately 1,000 Wachovia mortgage origination personnel are being redeployed in the company's efforts to assist customers to refinance and restructure Pick-a-Pay mortgages. The objective is to assist customers in avoiding foreclosures and meaningfully reduce the company's risks in the mortgage area.

Robert K. Steel, CEO and president said, "In the short term, the entire organization is focused on protecting, preserving and generating capital; reinforcing Wachovia's strong liquidity position; and reducing risk." Steel, who was named to his new post on July 9, further commented that, even as the company focuses on and addresses its credit-related challenges, Wachovia's underlying businesses are performing well: "Wachovia has an exceptionally attractive franchise, footprint and set of businesses. Revenue in our general banking business grew 8 percent over last year and we maintained industry-leading customer satisfaction. The securities brokerage business continues its excellent performance, with increases in both the number and quality of brokers and with industry-leading margins. Our corporate and investment bank has reduced its exposure to further market disruption charges. We had a record quarter in our Wealth Management business."

Wachovia outlined additional initiatives that are already under way, ranging from reducing expense growth and capital expenditures, reducing earning assets, repositioning the certificate of deposit book and generating further growth in low-cost core deposits and other deposits. Also, the company is taking actions to reduce the number of credit-only commercial borrowers and to sell selected noncore assets.

Steel summarized by saying: "Our balance sheet and liquidity position are strong, and we are committed to keeping them that way. The actions taken and initiatives under way are expected to generate or preserve more than $5 billion of capital. We ended the quarter with approximately $50 billion in regulatory capital and a tier 1 ratio of 8 percent, and we will be intensely focused on improving that level between now and the end of 2009."

Steel said, "As we consider the company's position, it is clearly prudent and necessary to further reduce our common dividend. While this is a difficult decision, it is the best course for our shareholders over the long term. I am confident of the commitment of the Wachovia team to manage successfully through this period as we continue to diligently serve our customers and communities. I am impressed by the work the Wachovia leadership group has undertaken, the clarity around the issues we face and the direction Wachovia is headed as we focus on being good stewards of the company."

The second quarter 2008 net loss compared with earnings of $2.34 billion or $1.22 per share in the second quarter of 2007. Excluding goodwill impairment of $6.1 billion and net merger-related and restructuring expense of $128 million, results in the second quarter of 2008 were a net loss available to common stockholders of $2.67 billion, or a net loss of $1.27 per share. Results included the A.G. Edwards, Inc., acquisition from October 1, 2007.

 Earnings Highlights Three Months Ended June 30,
   March 31, June 30, 2008 2008 2007 (In millions, except per share data) Amount EPS Amount EPS Amount EPS Earnings Net income
   (loss) $(8,662) (4.11) (664) (0.34) 2,341 1.22 Dividends on preferred stock (193) (0.09) (43) (0.02) - - Net income (loss)
   available to common stockholders $(8,855) (4.20) (707) (0.36) 2,341 1.22 Net goodwill impairment 6,056 2.87 - - - - Net merger-related
   and restructuring expenses 128 0.06 123 0.06 20 0.01 Earnings (loss) excluding goodwill impairment, and merger-related and
   restructuring expenses $(2,671) (1.27) (584) (0.30) 2,361 1.23 Financial ratios Return on average common stockholders' equity
   (49.07)% (3.81) 13.54 Net interest margin (a) 2.58(d) 2.92 2.96 Fee and other income as % of total revenue (a) 42.15 36.62
   48.58 Overhead efficiency ratio (a) 163.58% 71.76 56.02 Capital adequacy (b) Tier 1 capital ratio 8.0% 7.4 7.5 Total capital
   ratio 12.7 12.1 11.5 Leverage ratio 6.6% 6.2 6.2 Asset quality Allowance for loan losses as % of nonaccrual and restructured
   loans 95% 84 174 Allowance for loan losses as % of loans, net 2.20 1.37 0.79 Allowance for credit losses as % of loans, net
   (c) 2.24 1.41 0.83 Net charge-offs as % of average loans, net 1.10 0.66 0.14 Nonperforming assets as % of loans, net, foreclosed
   properties and loans held for sale 2.41% 1.70 0.49 (a) Tax-equivalent. (b) The second quarter of 2008 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.
   (d) Includes the SILO charge of $975 million pre-tax; without that charge, the net interest margin would have been 3.15%.
   The pre-tax loss stemmed from: -- The $6.1 billion in noncash goodwill impairment reflecting declining market valuations and
   the resulting effect on commercial, corporate lending and investment banking subsegments. The goodwill impairment charge has
   no impact on Wachovia's tangible capital levels or regulatory capital ratios, because goodwill is deducted when computing
   those ratios. -- A $5.6 billion loan loss provision, which increased reserves by $4.2 billion, including $3.3 billion for
   the payment option mortgage portfolio; -- A $975 million noncash charge announced previously related to the tax treatment
   of certain leasing transactions widely referred to as "sale in, lease out" or SILO transactions; -- $936 million in market
   disruption-related losses; -- $590 million in legal reserves primarily related to previously disclosed matters; and -- $391
   million in losses related to planned discretionary securities sales. Wachovia Corporation Three Months Ended June 30, March
   31, June 30, (In millions) 2008 2008 2007 Net interest income (Tax-equivalent) $4,344 4,805 4,487 Fee and other income 3,165
   2,777 4,240 Total revenue (Tax-equivalent) 7,509 7,582 8,727 Provision for credit losses 5,567 2,831 179 Noninterest expense
   12,284 5,441 4,890 Income (loss) from continuing operations before income taxes (benefits) (Tax-equivalent) (10,439) (845)
   3,519 Income taxes (benefits) (Tax-equivalent) (1,777) (181) 1,178 Net income (loss) available to common stockholders (8,855)
   (707) 2,341 Average loans, net 476,734 465,936 421,257 Average core deposits $390,670 394,513 378,496 

Other key trends in the second quarter of 2008 compared with the second quarter of 2007 included:

 -- A decline in fee and other income
   due to net market disruption-related valuation losses, which overshadowed strength in traditional banking. Fiduciary and asset
   management fees and brokerage commissions reflected the A.G. Edwards acquisition. -- A net interest margin of 2.58 percent,
   or 3.15 percent excluding the effect of the SILO charge. The SILO charge diminished net interest income, offset by growth
   in average commercial loans, up 25 percent, and average consumer loans, up 6 percent, as well as solid core deposit growth,
   up 3 percent. Average loan growth included the impact of the first quarter 2008 transfer of $6.9 billion of commercial and
   consumer loans to the loan portfolio from held-for-sale as well as strength in commercial, commercial real estate and traditional
   conforming mortgage loans. Deposit growth was led by strength in IRAs and money market accounts. -- An increase in noninterest
   expense largely reflecting the impact of A.G. Edwards, as well as growth in credit-related sundry expense and legal reserves.
   A renewed expense reduction initiative is under way throughout the company. -- Provision for credit losses of $5.6 billion,
   which included a reserve build of $4.2 billion. The provision largely reflected current and anticipated severe deterioration
   in the residential housing market, particularly in specific markets in California and Florida. Net charge-offs were $1.3 billion,
   or an annualized 1.10 percent of average net loans. Total nonperforming assets including loans held for sale were $12.0 billion,
   or 2.41 percent of loans, foreclosed properties and loans held for sale, largely reflecting increases in consumer real estate-related
   nonperforming assets 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, goodwill impairment charges, other intangible amortization, excess provision and discontinued operations. Segment earnings are the basis on which Wachovia manages and allocates capital to its business segments. In accordance with Wachovia's business segment methodology, goodwill impairment of $6.1 billion and provision expense in excess of charge-offs and other credit losses, which amounted to $4.2 billion in the second quarter of 2008, are not allocated to business segments.

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

 General Bank Highlights Three Months Ended June 30, March 31, June 30, (In
   millions) 2008 2008 2007 Net interest income (Tax-equivalent) $3,671 3,445 3,372 Fee and other income 1,000 980 935 Total
   revenue (Tax-equivalent) 4,728 4,480 4,363 Provision for credit losses 919 569 154 Noninterest expense 2,050 2,038 1,922 Segment
   earnings $1,117 1,189 1,453 Cash overhead efficiency ratio (Tax-equivalent) 43.35% 45.50 44.05 Average loans, net $319,574
   311,556 291,607 Average core deposits 290,381 297,171 290,455 Economic capital, average $16,786 12,693 10,821 

General Bank

The General Bank includes retail, small business and commercial customers. The second quarter of 2008 compared with the second quarter of 2007 included:

 -- Earnings of $1.1 billion, down $336 million, driven by rising credit
   costs and related expenses, primarily in the mortgage business, which overshadowed continued strong sales momentum elsewhere
   as reflected in total revenue of $4.7 billion, up 8 percent. -- Average loan growth of 10 percent, with double digit growth
   in wholesale and retail businesses. Mortgage lending through our largely branch-originated mortgage and home equity channels
   was up 6 percent, primarily reflecting a decline in prepayments, and home equity lending was up 5 percent. Auto loan originations
   rose 12 percent. -- Relatively stable average core deposits. * Growth in net new retail checking accounts slowed, but still
   increased by 263,000 in the second quarter of 2008 compared with an increase of 314,000 in the second quarter of 2007. * 305,000
   new retail checking accounts were tied to the Way2Save campaign; this product launched in mid-January 2008. -- 7 percent growth
   in fee and other income, with strength in service charges, interchange income and mortgage banking fee income. Strong interchange
   income reflected a 14 percent increase in debit/credit card volume from the second quarter of 2007. -- Noninterest expense
   up 7 percent due to growth in credit-related sundry expense and severance expense, as well as continued strategic investment
   in de novo branch activity and Western expansion. During the second quarter of 2008, 23 de novo branches were opened and 38
   branches were consolidated. As a result of performance initiatives, operating leverage continued to improve, which enabled
   continued strategic investment. -- A $765 million increase in the provision for credit losses to $919 million, largely reflecting
   higher net charge-offs in the Pick-a-Pay portfolio. Wealth Management Highlights Three Months Ended June 30, March 31, June
   30, (In millions) 2008 2008 2007 Net interest income (Tax-equivalent) $202 182 182 Fee and other income 207 211 202 Total
   revenue (Tax-equivalent) 412 398 387 Provision for credit losses 8 5 2 Noninterest expense 253 246 244 Segment earnings $98
   92 90 Cash overhead efficiency ratio (Tax-equivalent) 61.05% 61.98 62.80 Average loans, net $23,151 22,365 21,056 Average
   core deposits 17,559 17,906 17,466 Economic capital, average $731 699 612 

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. The second quarter of 2008 compared with the second quarter of 2007 included:

 -- 9 percent earnings growth
   to $98 million on 6 percent revenue growth in challenging markets. -- 11 percent growth in net interest income on 10 percent
   loan growth and improved deposit spreads. -- 16 percent growth in fiduciary and asset management fees as a pricing initiative
   implemented in the third quarter of 2007 and other growth offset declines in equity valuations. Insurance commissions declined
   largely due to a soft market for insurance premiums and nonstrategic insurance account dispositions. -- A 4 percent increase
   in noninterest expense driven by continued investment in private banking and Western expansion. -- A 3 percent decline in
   assets under management to $77.3 billion largely due to market depreciation. Corporate and Investment Bank Highlights Three
   Months Ended June 30, March 31, June 30, (In millions) 2008 2008 2007 Net interest income (Tax-equivalent) $1,124 1,028 773
   Fee and other income 657 (158) 1,522 Total revenue (Tax-equivalent) 1,729 820 2,245 Provision for credit losses 438 197 (2)
   Noninterest expense 960 747 1,020 Segment earnings (loss) $209 (78) 779 Cash overhead efficiency ratio (Tax-equivalent) 55.60%
   91.00 45.43 Average loans, net $106,642 101,046 76,744 Average core deposits 31,682 33,623 36,713 Economic capital, average
   $13,816 13,233 8,850 

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Unless otherwise noted, second quarter 2008 results are compared with the second quarter of 2007. These results included:

 -- Earnings of $209 million, down $570 million,
   due to continued net valuation losses related to disruption in the capital markets, and increased provision for credit losses.
   * Investment bank origination fees down 4 percent year over year, although these fees rose 16 percent from the first quarter
   of 2008. * Market share of 4.3 percent at June 30, 2008, up from 3.8 percent at June 30, 2007. -- Market valuation losses
   of $565 million, including a recovery on certain losses on leveraged finance commitments, compared with market valuation losses
   of $1.6 billion in the first quarter of 2008. Market valuation losses, net of applicable hedges, were: * $238 million in subprime
   residential asset-backed collateralized debt obligations and other related exposures, compared with $339 million in first
   quarter 2008; * $209 million in commercial mortgage structured products, compared with $521 million in first quarter 2008;
   * $68 million in consumer mortgage structured products, compared with $251 million in first quarter 2008; * $102 million gain
   in leveraged finance net of fees, compared with a net $309 million loss in first quarter 2008; and * $152 million in non-subprime
   collateralized debt obligations and other structured products, compared with $144 million in first quarter 2008. -- A 45 percent
   increase in net interest income, which reflected 39 percent growth in average loans including the first quarter 2008 transfer
   into the loan portfolio at fair value of certain loans originally slated for disposition, as well as loan growth in the corporate
   lending and global financial institutions businesses. -- Principal investing revenue of $115 million, down from $300 million
   in the second quarter of 2007 on lower gains in the public and private direct investment portfolios. -- A 6 percent decline
   in noninterest expense primarily due to lower variable compensation and reduced headcount in investment banking. -- Provision
   of $438 million largely reflecting residential-related commercial real estate and other corporate lending losses. Capital
   Management Highlights Three Months Ended June 30, March 31, June 30, (In millions) 2008 2008 2007 Net interest income (Tax-equivalent)
   $308 281 260 Fee and other income 1,995 2,191 1,536 Total revenue (Tax-equivalent) 2,295 2,462 1,785 Provision for credit
   losses - - - Noninterest expense 1,827 1,855 1,294 Segment earnings $297 386 312 Cash overhead efficiency ratio (Tax-equivalent)
   79.61% 75.34 72.47 Average loans, net $2,881 2,562 1,663 Average core deposits 48,647 43,084 31,221 Economic capital, average
   $2,105 2,144 1,348 

Capital Management

Capital Management includes retail brokerage services and asset management. The second quarter of 2008 compared with the second quarter of 2007 included:

 -- Earnings of $297 million on 29
   percent revenue growth, with net market disruption-related losses of $118 million, including $89 million of securities impairments
   relating to the liquidation of an Evergreen fund. -- An 18 percent increase in net interest income driven by retail brokerage
   deposit growth of $17.5 billion primarily due to the A.G. Edwards acquisition as well as solid growth since the acquisition,
   partially offset by spread compression. -- Continued solid momentum in retail brokerage managed account fees and the impact
   of the A.G. Edwards acquisition. -- 41 percent growth in noninterest expense largely due to the effect of A.G. Edwards, as
   well as higher legal expense. 

Total assets under management of $245.9 billion at June 30, 2008, decreased 10 percent from December 31, 2007, driven by net outflows of $17.6 billion as well as $11.2 billion in lower market valuations.

Wachovia Corporation (NYSE: WB) is one of the nation's largest diversified financial services companies, with assets of $812.4 billion and market capitalization of $33.5 billion at June 30, 2008. 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 3,300 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 $1.1 trillion in client assets through 14,600 financial advisors 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 July 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 2 and on page 11 under the captions "Earnings Excluding Merger-Related and Restructuring Expenses, Goodwill Impairment and Discontinued Operations" and "Earnings Excluding Merger-Related and Restructuring Expenses, Goodwill Impairment, Other Intangible Amortization and Discontinued Operations", and which are reconciled to GAAP financial measures on pages 23 through 25. 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, goodwill impairment and discontinued operations 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 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 Bob Steel and CFO Tom Wurtz will review Wachovia's second quarter 2008 results in a conference call and audio web cast beginning at 10:00 a.m. Eastern Daylight Saving Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to second 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.

Web cast Instructions: To gain access to the web cast, which will be "listen-only," go to Wachovia.com/investor and click on the link "Wachovia Second Quarter Earnings Audio Web cast." In order to listen to the web cast, 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, July 22, by 1:00 p.m. EDT and continuing through 5 p.m. EDT Friday, October 17. Replay telephone number is 706-645-9291; access code: 49418191.

ADD: /FIRST ADD -- CLTU036 -- Wachovia Corporation Earnings/

 PAGE 9 WACHOVIA CORPORATION AND SUBSIDIARIES
   FINANCIAL TABLES TABLE OF CONTENTS PAGE Financial Highlights -- Five Quarters Ended June 30, 2008 10 Other Financial Data
   -- Five Quarters Ended June 30, 2008 11 Consolidated Statements of Income -- Five Quarters Ended June 30, 2008 12 Consolidated
   Statements of Income -- Six Months Ended June 30, 2008 and 2007 13 Business Segments -- Three Months Ended June 30, 2008 and
   March 31, 2008 14 Business Segments -- Three Months Ended June 30, 2007 15 Loans -- On-Balance Sheet, and Managed and Servicing
   Portfolios -- Five Quarters Ended June 30, 2008 16 Allowance for Credit Losses -- Five Quarters Ended June 30, 2008 17 Nonperforming
   Assets -- Five Quarters Ended June 30, 2008 18 Consolidated Balance Sheets -- Five Quarters Ended June 30, 2008 19 Net Interest
   Income Summaries - Five Quarters Ended June 30, 2008 20 - 21 Net Interest Income Summaries -- Six Months Ended June 30, 2008
   and 2007 22 Reconciliation of Certain Non-GAAP Financial Measures -- Five Quarters Ended June 30, 2008 23 - 25 PAGE 10 WACHOVIA
   CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) 2008 2007 (Dollars in millions, Second First Fourth except per
   share data) Quarter Quarter Quarter EARNINGS SUMMARY Net interest income (GAAP) $4,290 4,752 4,630 Tax-equivalent adjustment
   54 53 44 Net interest income (Tax-equivalent) 4,344 4,805 4,674 Fee and other income 3,165 2,777 2,744 Total revenue (Tax-equivalent)
   7,509 7,582 7,418 Provision for credit losses 5,567 2,831 1,497 Other noninterest expense 5,876 5,097 5,488 Merger-related
   and restructuring expenses 251 241 187 Goodwill impairment 6,060 - - Other intangible amortization 97 103 111 Total noninterest
   expense 12,284 5,441 5,786 Minority interest in income of consolidated subsidiaries 97 155 107 Income (loss) from continuing
   operations before income taxes (benefits) (Tax-equivalent) (10,439) (845) 28 Income taxes (benefits) (1,831) (234) (209) Tax-equivalent
   adjustment 54 53 44 Income (loss) from continuing operations (8,662) (664) 193 Discontinued operations, net of income taxes
   - - (142) Net income (loss) (8,662) (664) 51 Dividends on preferred stock 193 43 - Net income (loss) available to common stockholders
   $(8,855) (707) 51 Diluted earnings per common share (a) $(4.20) (0.36) 0.03 Return on average common stockholders' equity
   (49.07)% (3.81) 0.28 Return on average assets (4.37) (0.34) 0.03 Overhead efficiency ratio 163.58% 71.76 78.00 Operating leverage
   $(6,916) 509 (1,359) ASSET QUALITY Allowance for loan losses as % of loans, net 2.20% 1.37 0.98 Allowance for loan losses
   as % of nonperforming assets 90 78 84 Allowance for credit losses as % of loans, net 2.24 1.41 1.02 Net charge-offs as % of
   average loans, net 1.10 0.66 0.41 Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale 2.41%
   1.70 1.14 CAPITAL ADEQUACY (b) Tier I capital ratio 8.0% 7.4 7.4 Total capital ratio 12.7 12.1 11.8 Leverage ratio 6.6% 6.2
   6.1 OTHER DATA Average basic common shares (In millions) 2,111 1,963 1,959 Average diluted common shares (In millions) 2,119
   1,977 1,983 Actual common shares (In millions) (c) 2,159 1,992 1,980 Dividends paid per common share $0.38 0.64 0.64 Dividend
   payout ratio on common shares (8.93)% (177.78) 2,133.33 Book value per common share (c) $30.37 36.24 37.66 Common stock price
   15.53 27.00 38.03 Market capitalization (c) $33,527 53,782 75,302 Common stock price to book value (c) 51% 75 101 FTE employees
   119,952 120,378 121,890 Total financial centers/ brokerage offices 4,820 4,850 4,894 ATMs 5,277 5,308 5,139 (a) Calculated
   using average basic common shares in 2008. (b) The second quarter of 2008 is based on estimates. (c) Includes restricted stock
   for which the holder receives dividends and has full voting rights. PAGE 10 WACHOVIA CORPORATION AND SUBSIDIARIES FINANCIAL
   HIGHLIGHTS (Unaudited) 2007 (Dollars in millions, Third Second except per share data) Quarter Quarter EARNINGS SUMMARY Net
   interest income (GAAP) $4,551 4,449 Tax-equivalent adjustment 33 38 Net interest income (Tax-equivalent) 4,584 4,487 Fee and
   other income 2,933 4,240 Total revenue (Tax-equivalent) 7,517 8,727 Provision for credit losses 408 179 Other noninterest
   expense 4,397 4,755 Merger-related and restructuring expenses 36 32 Goodwill impairment - - Other intangible amortization
   92 103 Total noninterest expense 4,525 4,890 Minority interest in income of consolidated subsidiaries 189 139 Income (loss)
   from continuing operations before income taxes (benefits) (Tax-equivalent) 2,395 3,519 Income taxes (benefits) 656 1,140 Tax-equivalent
   adjustment 33 38 Income (loss) from continuing operations 1,706 2,341 Discontinued operations, net of income taxes (88) -
   Net income (loss) 1,618 2,341 Dividends on preferred stock - - Net income (loss) available to common stockholders $1,618 2,341
   Diluted earnings per common share (a) $0.85 1.22 Return on average common stockholders' equity 9.19% 13.54 Return on average
   assets 0.88 1.33 Overhead efficiency ratio 60.20% 56.02 Operating leverage $(847) 189 ASSET QUALITY Allowance for loan losses
   as % of loans, net 0.78% 0.79 Allowance for loan losses as % of nonperforming assets 115 157 Allowance for credit losses as
   % of loans, net 0.82 0.83 Net charge-offs as % of average loans, net 0.19 0.14 Nonperforming assets as % of loans, net, foreclosed
   properties and loans held for sale 0.66% 0.49 CAPITAL ADEQUACY (b) Tier I capital ratio 7.1% 7.5 Total capital ratio 10.8
   11.5 Leverage ratio 6.1% 6.2 OTHER DATA Average basic common shares (In millions) 1,885 1,891 Average diluted common shares
   (In millions) 1,910 1,919 Actual common shares (In millions) (c) 1,901 1,903 Dividends paid per common share $0.64 0.56 Dividend
   payout ratio on common shares 75.29% 45.90 Book value per common share (c) $36.90 36.40 Common stock price 50.15 51.25 Market
   capitalization (c) $95,326 97,530 Common stock price to book value (c) 136% 141 FTE employees 109,724 110,493 Total financial
   centers/ brokerage offices 4,167 4,135 ATMs 5,123 5,099 (a) Calculated using average basic common shares in 2008. (b) The
   second quarter of 2008 is based on estimates. (c) Includes restricted stock for which the holder receives dividends and has
   full voting rights. PAGE 11 WACHOVIA CORPORATION AND SUBSIDIARIES OTHER FINANCIAL DATA (Unaudited) 2008 2007 Second First
   Fourth (In millions) Quarter Quarter Quarter EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT
   AND DISCONTINUED OPERATIONS (a) (b) Return on average common stockholders' equity (14.56)% (3.14) 1.62 Return on average assets
   (1.25) (0.28) 0.16 Overhead efficiency ratio 79.55 68.58 75.48 Overhead efficiency ratio excluding brokerage 80.33% 65.48
   74.54 Operating leverage $(847) 563 (1,208) EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT,
   OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED OPERATIONS (a) (b) (c) Dividend payout ratio on common shares (30.49)% (246.15)
   355.56 Return on average tangible common stockholders' equity (36.42) (7.07) 5.05 Return on average tangible assets (1.29)
   (0.26) 0.20 Overhead efficiency ratio 78.26 67.22 73.97 Overhead efficiency ratio excluding brokerage 78.55% 63.59 72.43 Operating
   leverage $(853) 554 (1,187) OTHER FINANCIAL DATA Net interest margin 2.58% 2.92 2.88 Fee and other income as % of total revenue
   42.15 36.62 36.99 Effective income tax rate (d) 17.46 26.02 122.05 Effective tax rate (Tax-equivalent) (d) (e) 17.03% 21.38
   127.17 AVERAGE BALANCE SHEET DATA Commercial loans, net $206,204 198,578 188,164 Consumer loans, net 270,530 267,358 261,641
   Loans, net 476,734 465,936 449,805 Earning assets 675,089 659,033 650,140 Total assets 796,437 783,593 763,487 Core deposits
   390,670 394,513 390,043 Total deposits 435,548 443,353 437,566 Interest-bearing liabilities 619,044 611,099 599,130 Stockholders'
   equity $81,740 78,747 73,986 PERIOD-END BALANCE SHEET DATA Commercial loans, net $216,620 211,700 198,566 Consumer loans,
   net 271,578 268,782 263,388 Loans, net 488,198 480,482 461,954 Goodwill and other intangible assets Goodwill 36,993 43,068
   43,122 Deposit base 531 573 619 Customer relationships 1,321 1,375 1,410 Tradename 90 90 90 Total assets 812,433 808,575 782,896
   Core deposits 400,387 398,562 397,405 Total deposits 447,790 444,964 449,129 Stockholders' equity $75,379 77,992 76,872 (a)
   These financial measures are calculated by excluding from GAAP net income (loss) presented on page 10, $128 million, $123
   million, $108 million, $22 million and $20 million in the second and first quarters of 2008, and in the fourth, third and
   second quarters of 2007, respectively, of after-tax net merger-related and restructuring expenses, $6.1 billion in the second
   quarter of 2008 of after-tax goodwill impairment, and $142 million and $88 million after tax in the fourth and third quarters
   of 2007, respectively, of discontinued operations. (b) See page 10 for the most directly comparable GAAP financial measure
   and pages 23 and 25 for a more detailed reconciliation. (c) These financial measures are calculated by excluding from GAAP
   net income (loss) presented on page 10, $66 million, $64 million, $65 million, $59 million and $66 million in the second and
   first quarters of 2008, and in the fourth, third and second quarters of 2007, respectively, of deposit base and other intangible
   amortization. (d) The fourth and third quarters of 2007 includes taxes on discontinued operations. (e) The tax-equivalent
   tax rate applies to fully tax-equivalized revenues. PAGE 11 WACHOVIA CORPORATION AND SUBSIDIARIES OTHER FINANCIAL DATA (Unaudited)
   2007 Third Second (In millions) Quarter Quarter EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT
   AND DISCONTINUED OPERATIONS (a) (b) Return on average common stockholders' equity 9.81% 13.66 Return on average assets 0.94
   1.34 Overhead efficiency ratio 59.73 55.65 Overhead efficiency ratio excluding brokerage 56.82% 52.04 Operating leverage $(843)
   210 EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT, OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED
   OPERATIONS (a) (b) (c) Dividend payout ratio on common shares 68.09% 44.09 Return on average tangible common stockholders'
   equity 23.88 33.57 Return on average tangible assets 1.03 1.47 Overhead efficiency ratio 58.51 54.47 Overhead efficiency ratio
   excluding brokerage 55.32% 50.61 Operating leverage $(855) 197 OTHER FINANCIAL DATA Net interest margin 2.92% 2.96 Fee and
   other income as % of total revenue 39.02 48.58 Effective income tax rate (d) 27.33 32.78 Effective tax rate (Tax-equivalent)
   (d) (e) 28.38% 33.51 AVERAGE BALANCE SHEET DATA Commercial loans, net $174,672 165,512 Consumer loans, net 255,129 255,745
   Loans, net 429,801 421,257 Earning assets 628,773 605,978 Total assets 729,004 704,773 Core deposits 379,009 378,496 Total
   deposits 416,107 408,418 Interest-bearing liabilities 574,399 547,669 Stockholders' equity $69,857 69,317 PERIOD-END BALANCE
   SHEET DATA Commercial loans, net $189,545 175,369 Consumer loans, net 259,661 253,751 Loans, net 449,206 429,120 Goodwill
   and other intangible assets Goodwill 38,848 38,766 Deposit base 670 727 Customer relationships 620 651 Tradename 90 90 Total
   assets 754,168 715,428 Core deposits 377,865 378,188 Total deposits 421,937 410,030 Stockholders' equity $70,140 69,266 (a)
   These financial measures are calculated by excluding from GAAP net income (loss) presented on page 10, $128 million, $123
   million, $108 million, $22 million and $20 million in the second and first quarters of 2008, and in the fourth, third and
   second quarters of 2007, respectively, of after-tax net merger-related and restructuring expenses, $6.1 billion in the second
   quarter of 2008 of after-tax goodwill impairment, and $142 million and $88 million after tax in the fourth and third quarters
   of 2007, respectively, of discontinued operations. (b) See page 10 for the most directly comparable GAAP financial measure
   and pages 23 and 25 for a more detailed reconciliation. (c) These financial measures are calculated by excluding from GAAP
   net income (loss) presented on page 10, $66 million, $64 million, $65 million, $59 million and $66 million in the second and
   first quarters of 2008, and in the fourth, third and second quarters of 2007, respectively, of deposit base and other intangible
   amortization. (d) The fourth and third quarters of 2007 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) 2008 2007 (In millions, Second First Fourth except per share data) Quarter Quarter Quarter INTEREST
   INCOME Interest and fees on loans $6,187 7,577 7,980 Interest and dividends on securities 1,530 1,496 1,616 Trading account
   interest 522 571 557 Other interest income 407 535 757 Total interest income 8,646 10,179 10,910 INTEREST EXPENSE Interest
   on deposits 2,176 2,941 3,433 Interest on short-term borrowings 418 523 673 Interest on long-term debt 1,762 1,963 2,174 Total
   interest expense 4,356 5,427 6,280 Net interest income 4,290 4,752 4,630 Provision for credit losses 5,567 2,831 1,497 Net
   interest income after provision for credit losses (1,277) 1,921 3,133 FEE AND OTHER INCOME Service charges 709 676 716 Other
   banking fees 518 498 497 Commissions 910 914 970 Fiduciary and asset management fees 1,355 1,439 1,436 Advisory, underwriting
   and other investment banking fees 280 261 249 Trading account profits (losses) (510) (308) (524) Principal investing 136 446
   41 Securities gains (losses) (808) (205) (320) Other income 575 (944) (321) Total fee and other income 3,165 2,777 2,744 NONINTEREST
   EXPENSE Salaries and employee benefits 3,435 3,260 3,468 Occupancy 377 379 375 Equipment 317 323 334 Marketing 95 97 80 Communications
   and supplies 184 186 191 Professional and consulting fees 218 196 271 Goodwill impairment 6,060 - - Other intangible amortization
   97 103 111 Merger-related and restructuring expenses 251 241 187 Sundry expense 1,250 656 769 Total noninterest expense 12,284
   5,441 5,786 Minority interest in income of consolidated subsidiaries 97 155 107 Income (loss) from continuing operations before
   income taxes (benefits) (10,493) (898) (16) Income taxes (benefits) (1,831) (234) (209) Income (loss) from continuing operations
   (8,662) (664) 193 Discontinued operations, net of income taxes - - (142) Net income (loss) (8,662) (664) 51 Dividends on preferred
   stock 193 43 0 Net income (loss) available to common stockholders $(8,855) (707) 51 PER COMMON SHARE DATA (after preferred
   stock dividends) Basic earnings Income (loss) from continuing operations $(4.20) (0.36) 0.10 Net income (loss) available to
   common stockholders (4.20) (0.36) 0.03 Diluted earnings (a) Income (loss) from continuing operations (4.20) (0.36) 0.10 Net
   income (loss) available to common stockholders (4.20) (0.36) 0.03 Cash dividends $0.38 0.64 0.64 AVERAGE COMMON SHARES Basic
   2,111 1,963 1,959 Diluted 2,119 1,977 1,983 (a) Calculated using average basic common shares in 2008. PAGE 12 WACHOVIA CORPORATION
   AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 2007 (In millions, Third Second except per share data) Quarter
   Quarter INTEREST INCOME Interest and fees on loans $7,937 7,723 Interest and dividends on securities 1,529 1,474 Trading account
   interest 566 506 Other interest income 799 647 Total interest income 10,831 10,350 INTEREST EXPENSE Interest on deposits 3,334
   3,180 Interest on short-term borrowings 801 706 Interest on long-term debt 2,145 2,015 Total interest expense 6,280 5,901
   Net interest income 4,551 4,449 Provision for credit losses 408 179 Net interest income after provision for credit losses
   4,143 4,270 FEE AND OTHER INCOME Service charges 689 667 Other banking fees 471 449 Commissions 600 649 Fiduciary and asset
   management fees 1,029 1,015 Advisory, underwriting and other investment banking fees 393 454 Trading account profits (losses)
   (301) 195 Principal investing 372 298 Securities gains (losses) (34) 23 Other income (286) 490 Total fee and other income
   2,933 4,240 NONINTEREST EXPENSE Salaries and employee benefits 2,628 3,122 Occupancy 325 331 Equipment 283 309 Marketing 74
   78 Communications and supplies 176 178 Professional and consulting fees 194 205 Goodwill impairment - - Other intangible amortization
   92 103 Merger-related and restructuring expenses 36 32 Sundry expense 717 532 Total noninterest expense 4,525 4,890 Minority
   interest in income of consolidated subsidiaries 189 139 Income (loss) from continuing operations before income taxes (benefits)
   2,362 3,481 Income taxes (benefits) 656 1,140 Income (loss) from continuing operations 1,706 2,341 Discontinued operations,
   net of income taxes (88) - Net income (loss) 1,618 2,341 Dividends on preferred stock - - Net income (loss) available to common
   stockholders $1,618 2,341 PER COMMON SHARE DATA (after preferred stock dividends) Basic earnings Income (loss) from continuing
   operations $0.91 1.24 Net income (loss) available to common stockholders 0.86 1.24 Diluted earnings (a) Income (loss) from
   continuing operations 0.90 1.22 Net income (loss) available to common stockholders 0.85 1.22 Cash dividends $0.64 0.56 AVERAGE
   COMMON SHARES Basic 1,885 1,891 Diluted 1,910 1,919 (a) Calculated using average basic common shares in 2008. PAGE 13 WACHOVIA
   CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Six Months Ended June 30, (In millions except per
   share data) 2008 2007 INTEREST INCOME Interest and fees on loans $13,764 15,341 Interest and dividends on securities 3,026
   2,952 Trading account interest 1,093 939 Other interest income 942 1,258 Total interest income 18,825 20,490 INTEREST EXPENSE
   Interest on deposits 5,117 6,194 Interest on short-term borrowings 941 1,375 Interest on long-term debt 3,725 3,972 Total
   interest expense 9,783 11,541 Net interest income 9,042 8,949 Provision for credit losses 8,398 356 Net interest income after
   provision for credit losses 644 8,593 FEE AND OTHER INCOME Service charges 1,385 1,281 Other banking fees 1,016 865 Commissions
   1,824 1,308 Fiduciary and asset management fees 2,794 1,968 Advisory, underwriting and other investment banking fees 541 861
   Trading account profits (losses) (818) 323 Principal investing 582 346 Securities gains (losses) (1,013) 76 Other income (369)
   946 Total fee and other income 5,942 7,974 NONINTEREST EXPENSE Salaries and employee benefits 6,695 6,094 Occupancy 756 643
   Equipment 640 616 Marketing 192 140 Communications and supplies 370 351 Professional and consulting fees 414 382 Goodwill
   impairment 6,060 - Other intangible amortization 200 221 Merger-related and restructuring expenses 492 42 Sundry expense 1,906
   1,022 Total noninterest expense 17,725 9,511 Minority interest in income of consolidated subsidiaries 252 275 Income (loss)
   before income taxes (benefits) (11,391) 6,781 Income taxes (benefits) (2,065) 2,138 Net income (loss) (9,326) 4,643 Dividends
   on preferred stock 236 - Net income (loss) available to common stockholders $(9,562) 4,643 PER COMMON SHARE DATA (after preferred
   stock dividends) Basic earnings Net income (loss) available to common stockholders (4.69) 2.45 Diluted earnings (a) Net income
   (loss) available to common stockholders $(4.69) 2.42 Cash dividends $1.02 1.12 AVERAGE COMMON SHARES Basic 2,037 1,892 Diluted
   2,048 1,922 (a) Calculated using average basic common shares in 2008. PAGE 14 WACHOVIA CORPORATION AND SUBSIDIARIES BUSINESS
   SEGMENTS (Unaudited) Three Months Ended June 30, 2008 Corporate Wealth and General Manage- Investment (In millions) Bank ment
   Bank CONSOLIDATED Net interest income (a) $3,671 202 1,124 Fee and other income 1,000 207 657 Intersegment revenue 57 3 (52)
   Total revenue (a) 4,728 412 1,729 Provision for credit losses 919 8 438 Noninterest expense 2,050 253 960 Minority interest
   - - - Income taxes (benefits) 632 53 103 Tax-equivalent adjustment 10 - 19 Net income (loss) 1,117 98 209 Dividends on preferred
   stock - - - Net income (loss) available to common stockholders $1,117 98 209 PAGE 14 WACHOVIA CORPORATION AND SUBSIDIARIES
   BUSINESS SEGMENTS (Unaudited) Three Months Ended June 30, 2008 Capital Management Parent (In millions) CONSOLIDATED Net interest
   income (a) $308 (961) Fee and other income 1,995 (694) Intersegment revenue (8) - Total revenue (a) 2,295 (1,655) Provision
   for credit losses - 4,202 Noninterest expense 1,827 883 Minority interest - 141 Income taxes (benefits) 170 (2,706) Tax-equivalent
   adjustment 1 24 Net income (loss) 297 (4,199) Dividends on preferred stock - 193 Net income (loss) available to common stockholders
   $297 (4,392) PAGE 14 WACHOVIA CORPORATION AND SUBSIDIARIES BUSINESS SEGMENTS (Unaudited) Three Months Ended June 30, 2008
   Goodwill Impairment, Net Merger- Related and Restructuring (In millions) Expenses (b) Total CONSOLIDATED Net interest income
   (a) $(54) 4,290 Fee and other income - 3,165 Intersegment revenue - - Total revenue (a) (54) 7,455 Provision for credit losses
   - 5,567 Noninterest expense 6,311 12,284 Minority interest (44) 97 Income taxes (benefits) (83) (1,831) Tax-equivalent adjustment
   (54) - Net income (loss) (6,184) (8,662) Dividends on preferred stock - 193 Net income (loss) available to common stockholders
   $(6,184) (8,855) PAGE 14 WACHOVIA CORPORATION AND SUBSIDIARIES BUSINESS SEGMENTS (Unaudited) Three Months Ended March 31,
   2008 Corporate Wealth and General Manage- Investment (In millions) Bank ment Bank CONSOLIDATED Net interest income (a) $3,445
   182 1,028 Fee and other income 980 211 (158) Intersegment revenue 55 5 (50) Total revenue (a) 4,480 398 820 Provision for
   credit losses 569 5 197 Noninterest expense 2,038 246 747 Minority interest - - - Income taxes (benefits) 673 55 (67) Tax-equivalent
   adjustment 11 - 21 Net Income (loss) 1,189 92 (78) Dividends on preferred stock - - - Net income (loss) available to common
   stockholders $1,189 92 (78) PAGE 14 WACHOVIA CORPORATION AND SUBSIDIARIES BUSINESS SEGMENTS (Unaudited) Three Months Ended
   March 31, 2008 Capital Manage- (In millions) ment Parent CONSOLIDATED Net interest income (a) $281 (131) Fee and other income
   2,191 (447) Intersegment revenue (10) - Total revenue (a) 2,462 (578) Provision for credit losses - 2,060 Noninterest expense
   1,855 314 Minority interest - 198 Income taxes (benefits) 220 (1,083) Tax-equivalent adjustment 1 20 Net Income (loss) 386
   (2,087) Dividends on preferred stock - 43 Net income (loss) available to common stockholders $386 (2,130) PAGE 14 WACHOVIA
   CORPORATION AND SUBSIDIARIES BUSINESS SEGMENTS (Unaudited) Three Months Ended March 31, 2008 Net Merger- Related and Restructuring
   (In millions) Expenses (b) Total CONSOLIDATED Net interest income (a) $(53) 4,752 Fee and other income - 2,777 Intersegment
   revenue - - Total revenue (a) (53) 7,529 Provision for credit losses - 2,831 Noninterest expense 241 5,441 Minority interest
   (43) 155 Income taxes (benefits) (32) (234) Tax-equivalent adjustment (53) - Net Income (loss) (166) (664) Dividends on preferred
   stock - 43 Net income (loss) available to common stockholders $(166) (707) PAGE 15 WACHOVIA CORPORATION AND SUBSIDIARIES BUSINESS
   SEGMENTS (Unaudited) Three Months Ended June 30, 2007 Corporate Wealth and General Manage- Investment (In millions) Bank ment
   Bank CONSOLIDATED Net interest income (a) $3,372 182 773 Fee and other income 935 202 1,522 Intersegment revenue 56 3 (50)
   Total revenue (a) 4,363 387 2,245 Provision for credit losses 154 2 (2) Noninterest expense 1,922 244 1,020 Minority interest
   - - - Income taxes (benefits) 824 51 437 Tax-equivalent adjustment 10 - 11 Net income (loss) $1,453 90 779 PAGE 15 WACHOVIA
   CORPORATION AND SUBSIDIARIES BUSINESS SEGMENTS (Unaudited) Three Months Ended June 30, 2007 Capital Manage- (In millions)
   ment Parent CONSOLIDATED Net interest income (a) $260 (100) Fee and other income 1,536 45 Intersegment revenue (11) 2 Total
   revenue (a) 1,785 (53) Provision for credit losses - 25 Noninterest expense 1,294 378 Minority interest - 139 Income taxes
   (benefits) 179 (339) Tax-equivalent adjustment - 17 Net income (loss) $312 (273) PAGE 15 WACHOVIA CORPORATION AND SUBSIDIARIES
   BUSINESS SEGMENTS (Unaudited) Three Months Ended June 30, 2007 Net Merger- Related and Restructuring (In millions) Expenses
   (b) Total CONSOLIDATED Net interest income (a) $(38) 4,449 Fee and other income - 4,240 Intersegment revenue - - Total revenue
   (a) (38) 8,689 Provision for credit losses - 179 Noninterest expense 32 4,890 Minority interest - 139 Income taxes (benefits)
   (12) 1,140 Tax-equivalent adjustment (38) - Net income (loss) $(20) 2,341 (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) 2008
   2007 Second First Fourth (In millions) Quarter Quarter Quarter ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL Commercial, financial
   and agricultural $122,628 119,193 112,509 Real estate - construction and other 18,629 18,597 18,543 Real estate - mortgage
   27,191 26,370 23,846 Lease financing 24,605 23,637 23,913 Foreign 35,168 33,616 29,540 Total commercial 228,221 221,413 208,351
   CONSUMER Real estate secured 230,520 230,197 227,719 Student loans 9,945 9,324 8,149 Installment loans 29,261 27,437 25,635
   Total consumer 269,726 266,958 261,503 Total loans 497,947 488,371 469,854 Unearned income (9,749) (7,889) (7,900) Loans,
   net (On-balance sheet) $488,198 480,482 461,954 MANAGED PORTFOLIO (a) (b) COMMERCIAL On-balance sheet loan portfolio $228,221
   221,413 208,351 Securitized loans - off-balance sheet 105 120 131 Loans held for sale 2,224 3,342 9,414 Total commercial 230,550
   224,875 217,896 CONSUMER Real estate secured On-balance sheet loan portfolio 230,520 230,197 227,719 Securitized loans - off-balance
   sheet 6,337 6,845 7,230 Securitized loans included in securities 14,918 11,683 10,755 Loans held for sale 3,415 5,960 4,816
   Total real estate secured 255,190 254,685 250,520 Student On-balance sheet loan portfolio 9,945 9,324 8,149 Securitized loans
   - off-balance sheet 2,721 2,772 2,811 Securitized loans included in securities 52 52 52 Loans held for sale - - - Total student
   12,718 12,148 11,012 Installment On-balance sheet loan portfolio 29,261 27,437 25,635 Securitized loans - off-balance sheet
   1,630 1,968 2,263 Securitized loans included in securities 28 39 47 Loans held for sale 2,791 2,127 2,542 Total installment
   33,710 31,571 30,487 Total consumer 301,618 298,404 292,019 Total managed portfolio $532,168 523,279 509,915 SERVICING PORTFOLIO
   (b) (c) Commercial $351,277 354,624 353,464 Consumer $29,100 27,415 27,523 (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) Certain amounts presented in periods prior to the second quarter of 2008 have been reclassified to conform to the presentation
   in the second quarter of 2008. (c) 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 LOANS
   - ON-BALANCE SHEET, AND MANAGED AND SERVICING PORTFOLIOS (Unaudited) 2007 Third Second (In millions) Quarter Quarter ON-BALANCE
   SHEET LOAN PORTFOLIO COMMERCIAL Commercial, financial and agricultural $109,269 102,397 Real estate - construction and other
   18,167 17,449 Real estate - mortgage 21,514 20,448 Lease financing 23,966 24,083 Foreign 26,471 20,959 Total commercial 199,387
   185,336 CONSUMER Real estate secured 225,355 220,293 Student loans 7,742 6,757 Installment loans 24,763 25,017 Total consumer
   257,860 252,067 Total loans 457,247 437,403 Unearned income (8,041) (8,283) Loans, net (On-balance sheet) $449,206 429,120
   MANAGED PORTFOLIO (a) (b) COMMERCIAL On-balance sheet loan portfolio $199,387 185,336 Securitized loans - off-balance sheet
   142 170 Loans held for sale 13,905 11,573 Total commercial 213,434 197,079 CONSUMER Real estate secured On-balance sheet loan
   portfolio 225,355 220,293 Securitized loans - off-balance sheet 7,625 8,112 Securitized loans included in securities 5,963
   6,091 Loans held for sale 3,583 4,079 Total real estate secured 242,526 238,575 Student On-balance sheet loan portfolio 7,742
   6,757 Securitized loans - off-balance sheet 2,856 2,905 Securitized loans included in securities 52 52 Loans held for sale
   1,968 2,046 Total student 12,618 11,760 Installment On-balance sheet loan portfolio 24,763 25,017 Securitized loans - off-balance
   sheet 2,572 3,105 Securitized loans included in securities 55 116 Loans held for sale 1,975 35 Total installment 29,365 28,273
   Total consumer 284,509 278,608 Total managed portfolio $497,943 475,687 SERVICING PORTFOLIO (b) (c) Commercial $337,721 298,374
   Consumer $28,015 26,341 (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) Certain amounts presented in periods prior to the
   second quarter of 2008 have been reclassified to conform to the presentation in the second quarter of 2008. (c) 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. 

SOURCE Wachovia Corporation

http://www.wachovia.com 

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