##### 



Exhibit
(19)




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##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
QUARTERLY FINANCIAL SUPPLEMENT
NINE MONTHS ENDED SEPTEMBER 30, 2007
TABLE OF CONTENTS
 
 PAGEFinancial Highlights
    
    
    1Managements
Discussion and Analysis
    
    
    2Explanation of Our Use of Non-GAAP Financial Measures
    
    
    33Selected Statistical Data
    
    
    34Summaries of Income, Per Common Share and Balance Sheet Data
    
    
    35Merger-Related and Restructuring Expenses
    
    
    36Business Segments
    
    
    37Net Trading Revenue  Investment Banking
    
    
    53Selected Ratios
    
    
    53Trading Account Assets and Liabilities
    
    
    53Loans  On-Balance Sheet, and Managed and Servicing Portfolios
    
    
    54Loans Held for Sale
    
    
    55Allowance for Credit Losses
    
    
    56Allowance and Charge-Off Ratios
    
    
    57Nonperforming Assets
    
    
    58Nonaccrual Loan Activity
    
    
    59Goodwill and Other Intangible Assets
    
    
    60Deposits
    
    
    61Time Deposits in Amounts of $100,000 or More
    
    
    61Rates and Amounts of Savings Bank Deposits
    
    
    62Long-Term Debt
    
    
    63Changes in Stockholders Equity
    
    
    64Capital Ratios
    
    
    65Net Interest Income Summaries  Five Quarters Ended September 30, 2007
    
    
    66Net Interest Income Summaries  Nine Months Ended September 30, 2007 and 2006
    
    
    68Consolidated Balance Sheets  Five Quarters Ended September 30, 2007
    
    
    69Consolidated Statements of Income   Five Quarters Ended September 30, 2007
    
    
    70Wachovia Corporation and Subsidiaries  Consolidated Financial Statements
    
    
    71




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##### 



FINANCIAL HIGHLIGHTS
 
 Three Months Ended
    
    
    Percent
    
    
    Nine Months Ended
    
    
    PercentSeptember 30,
    
    
    Increase
    
    
    September 30,
    
    
    Increase(Dollars in millions, except per share data)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    2007
    
    
    2006
    
    
    (Decrease)EARNINGS SUMMARYNet interest income (GAAP)
    
    $
    4,551
    
    
    
    3,541
    
    
    
    29
    %
    
    $
    13,500
    
    
    
    10,672
    
    
    
    26
    %Tax-equivalent adjustment
    
    
    33
    
    
    
    37
    
    
    
    (11
    )
    
    
    108
    
    
    
    120
    
    
    
    (10
    )Net interest income (Tax-equivalent)
    
    
    4,584
    
    
    
    3,578
    
    
    
    28
    
    
    
    13,608
    
    
    
    10,792
    
    
    
    26Fee and other income
    
    
    2,761
    
    
    
    3,465
    
    
    
    (20
    )
    
    
    10,668
    
    
    
    10,565
    
    
    
    1Total revenue (Tax-equivalent)
    
    
    7,345
    
    
    
    7,043
    
    
    
    4
    
    
    
    24,276
    
    
    
    21,357
    
    
    
    14Provision for credit losses
    
    
    408
    
    
    
    108
    
    
    
    
    
    
    
    764
    
    
    
    228
    
    
    
    Other noninterest expense
    
    
    4,361
    
    
    
    3,915
    
    
    
    11
    
    
    
    13,542
    
    
    
    12,133
    
    
    
    12Merger-related and restructuring expenses
    
    
    36
    
    
    
    38
    
    
    
    (5
    )
    
    
    78
    
    
    
    130
    
    
    
    (40
    )Other intangible amortization
    
    
    92
    
    
    
    92
    
    
    
    
    
    
    
    313
    
    
    
    282
    
    
    
    11Total noninterest expense
    
    
    4,489
    
    
    
    4,045
    
    
    
    11
    
    
    
    13,933
    
    
    
    12,545
    
    
    
    11Minority interest in income of consolidated subsidiaries
    
    
    189
    
    
    
    104
    
    
    
    82
    
    
    
    464
    
    
    
    289
    
    
    
    61Income before income taxes (Tax-equivalent)
    
    
    2,259
    
    
    
    2,786
    
    
    
    (19
    )
    
    
    9,115
    
    
    
    8,295
    
    
    
    10Tax-equivalent adjustment
    
    
    33
    
    
    
    37
    
    
    
    (11
    )
    
    
    108
    
    
    
    120
    
    
    
    (10
    )Income taxes
    
    
    608
    
    
    
    872
    
    
    
    (30
    )
    
    
    2,746
    
    
    
    2,685
    
    
    
    2Net income
    
    $
    1,618
    
    
    
    1,877
    
    
    
    (14
    )%
    
    $
    6,261
    
    
    
    5,490
    
    
    
    14
    %Diluted earnings per common share
    
    $
    0.85
    
    
    
    1.17
    
    
    
    (27
    )%
    
    $
    3.26
    
    
    
    3.43
    
    
    
    (5
    )%Return on average common stockholders equity
    
    
    9.19
    %
    
    
    14.85
    
    
    
    
    
    
    
    12.04
    %
    
    
    14.96
    
    
    
    Return on average assets
    
    
    0.88
    %
    
    
    1.34
    
    
    
    
    
    
    
    1.18
    %
    
    
    1.36
    
    
    
    ASSET QUALITYAllowance for loan losses as % of loans, net
    
    
    0.78
    %
    
    
    1.03
    
    
    
    
    
    
    
    0.78
    %
    
    
    1.03
    
    
    
    Allowance for loan losses as % of nonperforming assets
    
    
    120
    
    
    
    396
    
    
    
    
    
    
    
    120
    
    
    
    396
    
    
    
    Allowance for credit losses as % of loans, net
    
    
    0.82
    
    
    
    1.09
    
    
    
    
    
    
    
    0.82
    
    
    
    1.09
    
    
    
    Net charge-offs as % of average loans, net
    
    
    0.19
    
    
    
    0.16
    
    
    
    
    
    
    
    0.16
    
    
    
    0.11
    
    
    
    Nonperforming assets as % of loans, net,
foreclosed properties and loans held for sale
    
    
    0.63
    %
    
    
    0.26
    
    
    
    
    
    
    
    0.63
    %
    
    
    0.26
    
    
    
    CAPITAL ADEQUACYTier I capital ratio
    
    
    7.10
    %
    
    
    7.74
    
    
    
    
    
    
    
    7.10
    %
    
    
    7.74
    
    
    
    Total capital ratio
    
    
    10.84
    
    
    
    11.47
    
    
    
    
    
    
    
    10.84
    
    
    
    11.47
    
    
    
    Leverage ratio
    
    
    6.10
    %
    
    
    6.60
    
    
    
    
    
    
    
    6.10
    %
    
    
    6.60
    
    
    
    OTHER FINANCIAL DATANet interest margin
    
    
    2.92
    %
    
    
    3.03
    
    
    
    
    
    
    
    2.97
    %
    
    
    3.13
    
    
    
    Fee and other income as % of total revenue
    
    
    37.59
    
    
    
    49.20
    
    
    
    
    
    
    
    43.95
    
    
    
    49.47
    
    
    
    Effective income tax rate
    
    
    27.33
    %
    
    
    31.71
    
    
    
    
    
    
    
    30.49
    %
    
    
    32.85
    
    
    
    BALANCE SHEET DATASecurities
    
    $
    111,827
    
    
    
    106,553
    
    
    
    5
    %
    
    $
    111,827
    
    
    
    106,553
    
    
    
    5
    %Loans, net
    
    
    449,206
    
    
    
    290,759
    
    
    
    54
    
    
    
    449,206
    
    
    
    290,759
    
    
    
    54Total assets
    
    
    754,168
    
    
    
    559,922
    
    
    
    35
    
    
    
    754,168
    
    
    
    559,922
    
    
    
    35Total deposits
    
    
    421,937
    
    
    
    323,298
    
    
    
    31
    
    
    
    421,937
    
    
    
    323,298
    
    
    
    31Long-term debt
    
    
    158,584
    
    
    
    86,419
    
    
    
    84
    
    
    
    158,584
    
    
    
    86,419
    
    
    
    84Stockholders equity
    
    $
    70,140
    
    
    
    51,180
    
    
    
    37
    %
    
    $
    70,140
    
    
    
    51,180
    
    
    
    37
    %OTHER DATAAverage diluted common shares (In millions)
    
    
    1,910
    
    
    
    1,600
    
    
    
    19
    %
    
    
    1,918
    
    
    
    1,600
    
    
    
    20
    %Actual common shares (In millions)
    
    
    1,901
    
    
    
    1,581
    
    
    
    20
    
    
    
    1,901
    
    
    
    1,581
    
    
    
    20Dividends paid per common share
    
    $
    0.64
    
    
    
    0.56
    
    
    
    14
    
    
    $
    1.76
    
    
    
    1.58
    
    
    
    11Dividend payout ratio on common shares
    
    
    75.29
    %
    
    
    47.86
    
    
    
    57
    
    
    
    53.99
    %
    
    
    46.06
    
    
    
    17Book value per common share
    
    $
    36.90
    
    
    
    32.37
    
    
    
    14
    
    
    $
    36.90
    
    
    
    32.37
    
    
    
    14Common stock price
    
    
    50.15
    
    
    
    55.80
    
    
    
    (10
    )
    
    
    50.15
    
    
    
    55.80
    
    
    
    (10
    )Market capitalization
    
    $
    95,326
    
    
    
    88,231
    
    
    
    8
    
    
    $
    95,326
    
    
    
    88,231
    
    
    
    8Common stock price to book value
    
    
    136
    %
    
    
    172
    
    
    
    (21
    )
    
    
    136
    %
    
    
    172
    
    
    
    (21
    )FTE employees
    
    
    109,724
    
    
    
    97,060
    
    
    
    13
    
    
    
    109,724
    
    
    
    97,060
    
    
    
    13Total financial centers/brokerage offices
    
    
    4,167
    
    
    
    3,870
    
    
    
    8
    
    
    
    4,167
    
    
    
    3,870
    
    
    
    8ATMs
    
    
    5,123
    
    
    
    5,163
    
    
    
    (1
    )%
    
    
    5,123
    
    
    
    5,163
    
    
    
    (1
    )%
 1




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##### 



Managements Discussion and Analysis
  Summary of Results of Operations
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net interest income (GAAP)
    
    $
    4,551
    
    
    
    3,541
    
    
    
    13,500
    
    
    
    10,672Tax-equivalent adjustment
    
    
    33
    
    
    
    37
    
    
    
    108
    
    
    
    120Net interest income (a)
    
    
    4,584
    
    
    
    3,578
    
    
    
    13,608
    
    
    
    10,792Fee and other income
    
    
    2,761
    
    
    
    3,465
    
    
    
    10,668
    
    
    
    10,565Total revenue (a)
    
    
    7,345
    
    
    
    7,043
    
    
    
    24,276
    
    
    
    21,357Provision for credit losses
    
    
    408
    
    
    
    108
    
    
    
    764
    
    
    
    228Other noninterest expense
    
    
    4,361
    
    
    
    3,915
    
    
    
    13,542
    
    
    
    12,133Merger-related and restructuring expenses
    
    
    36
    
    
    
    38
    
    
    
    78
    
    
    
    130Other intangible amortization
    
    
    92
    
    
    
    92
    
    
    
    313
    
    
    
    282Total noninterest expense
    
    
    4,489
    
    
    
    4,045
    
    
    
    13,933
    
    
    
    12,545Minority interest in income of consolidated subsidiaries
    
    
    189
    
    
    
    104
    
    
    
    464
    
    
    
    289Income taxes
    
    
    608
    
    
    
    872
    
    
    
    2,746
    
    
    
    2,685Tax-equivalent adjustment
    
    
    33
    
    
    
    37
    
    
    
    108
    
    
    
    120Net income
    
    
    1,618
    
    
    
    1,877
    
    
    
    6,261
    
    
    
    5,490Diluted earnings per common share
    
    $
    0.85
    
    
    
    1.17
    
    
    
    3.26
    
    
    
    3.43
 (a)
    
    Tax-equivalent.
 Executive Summary
 Corporate Results of Operations
 Corporate Results
of Operations Net Interest Income and Margin Fee Income Corporate and Investment Bank, Capital
Management Off-Balance Sheet Transactions Outlook-October
Market Events
 Market Disruption-Related Losses, Net
 Third Quarter 2007Trading
    
    
    Securities
    
    
    Loans heldprofits
    
    
    gains
    
    
    for sale /(Pre-tax dollars in millions)
    
    (losses)
    
    
    (losses)
    
    
    other income
    
    
    TotalCorporate and Investment BankCommercial mortgage
    
    $
    (116
    )
    
    
    
    
    
    
    (372
    )
    
    
    (488
    )Leveraged finance
    
    
    62
    
    
    
    
    
    
    
    (334
    )
    
    
    (272
    )CDO/ CLO and other structured credit products
    
    
    (438
    )
    
    
    
    
    
    
    
    
    
    
    (438
    )Consumer mortgage
    
    
    (62
    )
    
    
    
    
    
    
    (41
    )
    
    
    (103
    )Capital ManagementAsset-backed commercial paper
    
    
    
    
    
    
    (40
    )
    
    
    
    
    
    
    (40
    )Total
    
    $
    (554
    )
    
    
    (40
    )
    
    
    (747
    )
    
    
    (1,341
    )
   2




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##### 




    
    14 percent revenue growth driven by higher loans and deposits due to acquisitions and
organic growth. Revenue growth was hindered by relatively flat fee and other income as a
result of the fixed income market disruption, which offset otherwise strong results in most
of our other investment banking, securities brokerage and traditional banking businesses.
    
    26 percent net interest income growth driven by a larger balance sheet despite 16 basis
points of margin compression. Average loans rose $149.8 billion and average core deposits
increased $84.6 billion, including the addition of loans and deposits from Golden West.
    
    11 percent higher noninterest expense, primarily reflecting the impact of acquisitions
and investment for future growth, partially offset by our continued focus on improving
efficiency.
    
    A tax rate on a tax-equivalent basis of 31.32 percent compared with 33.82 percent in the
first nine months a year ago, with the decrease largely reflecting updated information on
certain tax matters, lower earnings as a result of the market disruption and the effect of
increased international activity.
    3




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##### 



Corporate Results of Operations
  4




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##### 



Outlook
  October Market Events
 ABX
06-2 Index
 % ChangeJan 2 to
    
    Sep 28 toJan 2
    
    Sep 28
    
    Oct 31
    
    Sep 28
    
    Oct 31AAA 
AA 
A 
BBB 
BBB-
    
    100.1
100.1
 99.3
 96.3
 95.1
    
    96.0
89.6
70.1
39.3
32.8
    
    89.8
64.1
37.9
20.7
19.9
    
    -4%
-10%
-29%
-59%
-66%
    
    -6%
-28%
-46%
-47%
-39%
    Global Markets and Investment Banking
Net ABS CDO-Related and
Subprime RMBS Exposures(1)
 Net Write-Net Exposure
    
    
    Net Exposure
    
    
    Downs forat
    
    
    at
    
    
    Third Quarter
    
    
    October(Dollars in billions)
    
    Oct. 31, 2007
    
    
    Sept. 30, 2007
    
    
    2007
    
    
    Write-DownsABS
CDO-related exposures:Super senior
ABS CDO exposures(2)(3):High Grade
    
    $
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Mezzanine
    
    
    0.41
    
    
    
    1.23
    
    
    
    (0.16
    )
    
    
    (0.82
    )CDO-squared
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Total super
senior ABS CDO exposures
    
    
    0.41
    
    
    
    1.23
    
    
    
    (0.16
    )
    
    
    (0.82
    )Other
retained ABS CDO exposures
    
    
    0.27
    
    
    
    0.56
    
    
    
    (0.17
    )
    
    
    (0.29
    )Total ABS
CDO-related exposures
    
    
    0.68
    
    
    
    1.79
    
    
    
    (0.33
    )
    
    
    (1.11
    )Subprime
RMBS exposures(4):Non-ABS CDO
subprime (AAA)
    
    
    2.07
    
    
    
    2.09
    
    
    
    (0.02
    )
    
    
    (0.02
    )Non-ABS CDO
subprime (non-AAA) (net of hedges)
    
    
    (0.02
    )
    
    
    (0.04
    )
    
    
    -
    
    
    
    0.02Total subprime RMBS exposures
    
    
    2.05
    
    
    
    2.05
    
    
    
    (0.02
    )
    
    
    -Total(3)
    
    $
    2.73
    
    
    
    3.84
    
    
    
    (0.35
    )
    
    
    (1.11
    )
 (1)
    
    Wachovia relies on insurance purchased from AAA rated
financial guarantors and actively monitors and manages its counterparty exposure for these positions. The table excludes exposures
guaranteed by such counterparties.(2)
    
    Super senior tranches represent the most senior tranches of
the capital structure; however, certain interests may receive
payments prior to the super senior investor.(3)
    
    In addition to the above exposure, Wachovia has approximately $138 million of interest
rate derivative counterparty risk related to various CDO transactions and $625 million of
indirect contingent exposure to AAA RMBS (not ABS CDOs) reserve account investments; the
majority of these exposures are senior to super senior risk in the
related transactions and the probability of loss is believed to be
remote.(4)
    
    Assumes that for $258 million of subprime whole loan
positions, if accounted for in securities form, 70% would be AAA and
30% below AAA.
 5




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##### 



rd
  Fourth Quarter 2007 Outlook 2007 Outlook
 Fourth Quarter 2007 Outlook October
Market Events
 
    
    Tax-equivalent net interest income growth of 1 percent to 3 percent from the third
quarters $4.6 billion.
    
    Fee income growth of 30 percent to
34 percent from $2.8 billion.
    
    Noninterest expense growth of 5 percent to
7 percent from $4.5 billion.
    
    Minority interest expense decline of 20 percent to 30 percent from $189 million.
    
    Loan growth in the mid single-digit percentage range from $429.8 billion.
    
    Net charge-offs in the 25 basis points to 30 basis points range, and a higher provision.
    
    An effective income tax rate of approximately 33 percent on a tax-equivalent basis.
    
    A leverage ratio above 6.0 percent and a tangible capital to tangible assets ratio above
4.7 percent excluding unrealized gains and losses on available for sale securities,
unrealized gains and losses on certain risk management derivatives and unamortized gains and
losses under employee benefit plans.
    
    A dividend payout ratio of 40 percent to 50 percent of earnings excluding merger-related
and restructuring expenses and other intangible amortization.
    
    Use of excess capital to opportunistically repurchase shares, to reinvest in our
businesses and to undertake financially attractive, shareholder friendly acquisitions.
 2007 Outlook October Market Events
 Notes to Consolidated Financial Statements
 6




---



##### 




    
    Net interest income to remain relatively flat on a tax-equivalent basis compared with
$18.1 billion. Expectations for net credit income, or net interest income minus provision
expense, remain relatively unchanged.
    
    Fee income to be down in the mid single-digit percentage range from $14.5 billion.
    
    Noninterest expense growth to be down in the low single-digit percentage range from $18.1
billion; and to be marginally lower than revenue growth. Year-end 2007 targeted overhead
efficiency ratio of 51.5 percent to 53.5 percent excluding merger-related and restructuring
expenses and other intangible amortization.
    
    Minority interest expense to grow 40 percent to 50 percent from $414 million.
    
    Loan growth in the high single-digit percentage range from $398.4 billion, including
consumer loan growth in the mid single-digit percentage range from $249.6 billion, and
commercial loan growth in the low double-digits percentage range from $148.8 billion.
    
    Net charge-offs in the high teens basis point range as a percentage of average net loans,
up from 8 basis points; and a higher provision.
    
    An effective income tax rate of approximately 32 percent on a tax-equivalent basis.
    
    A targeted leverage ratio above 6.0 percent and a tangible capital to tangible asset
ratio no lower than 4.7 percent, excluding unrealized gains and losses on available for sale
securities, unrealized gains and losses on certain risk management derivatives, and
unamortized gains and losses under employee benefit plans.
    
    A dividend payout ratio of 40 percent to 50 percent of earnings before other intangible
amortization.
    
    Use of excess capital to opportunistically repurchase shares, to reinvest in our
businesses and to undertake financially attractive, shareholder-friendly acquisitions.
   Critical Accounting Policies
  7




---



##### 



Fair Value of Certain Financial Instruments Fair Value Measurements The Fair Value Option for
Financial Assets and Financial Liabilities Accounting and Regulatory Matters
  
    
    Trading assets and liabilities, including debt and equity securities and derivatives,
with unrealized gains and losses recorded in earnings.
    
    Debt and equity securities and retained interests in securitizations classified as
available for sale, with unrealized gains and losses recorded in stockholders equity.
    
    Derivatives designated as fair value or cash flow accounting hedges, with unrealized
gains and losses recorded in earnings for fair value hedges and in stockholders equity for
cash flow hedges.
    
    Principal investments, which are classified in other assets and which include public
equity and private debt and equity investments, with realized and unrealized gains and
losses recorded in earnings. Certain principal investments are recorded at values such that
gains or losses are not recorded until certain events confirm the value has changed, such as
a subsequent round of funding by the investee or receipt of distributions from private
equity funds.
    
    Loans held for sale, which are recorded at the lower of cost or market value, with
write-downs and related recoveries of previous write-downs recorded in earnings.
 Accounting for Contingencies
   8




---



##### 



Corporate Results of Operations
    Average Balance Sheets and Interest Rates
 Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2007
    
    
    September 30, 2006Average
    
    
    Interest
    
    
    Average
    
    
    Interest(In millions)
    
    Balances
    
    
    Rates
    
    
    Balances
    
    
    RatesInterest-bearing bank balances
    
    $
    3,807
    
    
    
    6.06
    %
    
    $
    2,523
    
    
    
    4.77
    %Federal funds sold
    
    
    13,480
    
    
    
    5.25
    
    
    
    18,264
    
    
    
    4.70Trading account assets
    
    
    34,561
    
    
    
    5.93
    
    
    
    29,232
    
    
    
    5.23Securities
    
    
    109,322
    
    
    
    5.43
    
    
    
    121,415
    
    
    
    5.37Commercial loans, net
    
    
    165,888
    
    
    
    7.12
    
    
    
    146,489
    
    
    
    6.84Consumer loans, net
    
    
    256,272
    
    
    
    7.50
    
    
    
    125,903
    
    
    
    6.89Total loans, net
    
    
    422,160
    
    
    
    7.35
    
    
    
    272,392
    
    
    
    6.86Loans held for sale
    
    
    18,213
    
    
    
    6.62
    
    
    
    9,922
    
    
    
    6.82Other earning assets
    
    
    8,057
    
    
    
    6.98
    
    
    
    5,660
    
    
    
    7.79Risk management derivatives
    
    
    
    
    
    
    0.03
    
    
    
    
    
    
    
    0.12Total earning assets
    
    
    609,600
    
    
    
    6.87
    
    
    
    459,408
    
    
    
    6.40Interest-bearing deposits
    
    
    347,439
    
    
    
    3.67
    
    
    
    261,212
    
    
    
    3.03Federal funds purchased
    
    
    39,203
    
    
    
    4.98
    
    
    
    50,049
    
    
    
    4.47Commercial paper
    
    
    5,290
    
    
    
    4.60
    
    
    
    4,684
    
    
    
    4.41Securities sold short
    
    
    7,758
    
    
    
    3.79
    
    
    
    8,910
    
    
    
    3.28Other short-term borrowings
    
    
    7,463
    
    
    
    2.69
    
    
    
    6,399
    
    
    
    2.22Long-term debt
    
    
    145,604
    
    
    
    5.39
    
    
    
    69,591
    
    
    
    5.24Risk management derivatives
    
    
    
    
    
    
    0.10
    
    
    
    
    
    
    
    0.14Total interest-bearing liabilities
    
    
    552,757
    
    
    
    4.31
    
    
    
    400,845
    
    
    
    3.74Net interest income and margin
    
    $
    13,608
    
    
    
    2.97
    %
    
    $
    10,792
    
    
    
    3.13
    %
 9




---



##### 



Net Interest Income and Margin
   Fee and Other Income
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Service charges
    
    $
    689
    
    
    
    638
    
    
    
    1,970
    
    
    
    1,834Other banking fees
    
    
    437
    
    
    
    427
    
    
    
    1,357
    
    
    
    1,304Commissions
    
    
    600
    
    
    
    562
    
    
    
    1,908
    
    
    
    1,773Fiduciary and asset management fees
    
    
    993
    
    
    
    823
    
    
    
    2,894
    
    
    
    2,392Advisory, underwriting and other investment banking fees
    
    
    393
    
    
    
    292
    
    
    
    1,254
    
    
    
    912Trading account profits (losses)
    
    
    (437
    )
    
    
    123
    
    
    
    (114
    )
    
    
    506Principal investing
    
    
    372
    
    
    
    91
    
    
    
    718
    
    
    
    383Securities gains (losses)
    
    
    (34
    )
    
    
    94
    
    
    
    42
    
    
    
    71Other income
    
    
    (252
    )
    
    
    415
    
    
    
    639
    
    
    
    1,390Total fee and other income
    
    $
    2,761
    
    
    
    3,465
    
    
    
    10,668
    
    
    
    10,565
 Fee and Other Income
 
    
    Increased service charges driven by strength in consumer service charges on higher volume
and improved pricing, while commercial service charges rose on increased volume.
    
    Growth in other banking fees driven by strength in interchange fees and a fair value
increase on mortgage servicing rights (MSRs), partially offset by the divestiture of our
subprime mortgage servicing operation in late 2006.
    
    Higher commissions reflecting higher retail brokerage transaction activity, including
higher equity syndicate volumes.
    
    Growth in fiduciary and asset management fees driven by strong growth in retail brokerage
managed account assets and other brokerage asset-based fees.
 10




---



##### 




    
    Improved results in advisory and underwriting across most investment banking products,
with strong results in equities underwriting, merger and acquisition advisory services,
structured products and high yield underwriting.
    
    Trading account net losses of $114 million, which included $554 million in net valuation
losses as a result of the fixed income market disruption, including:
 o
    
    $438 million in net losses on collateralized debt
obligations/collateralized loan obligations and other structured products largely
relating to losses in warehouse positions.o
    
    $116 million in net losses in commercial mortgage trading activities.
 
    
    Strong principal investing results largely reflecting a $270 million unrealized gain
related to the sale of a minority interest in a portion of the direct investment portfolio.
    
    Net securities gains of $42 million, which included a
$40 million valuation loss related to the
purchase of certain asset-backed commercial paper investments from Evergreen money market
funds in the third quarter of 2007. This compared with net securities gains of $71 million
in the first nine months a year ago, including $94 million of gains in the third quarter
last year.
    
    Other income of $639 million, down $751 million from the year ago period, which included
a $100 million credit card-related fee. The current period included market
disruption-related net valuation losses of $372 million in our commercial mortgage
securitization business offsetting strong results earlier in the year; $334 million relating
to our leveraged finance commitments; and $41 million in write-downs in our wholesale
consumer warehouses. Other income also included an $83 million increase related to certain
corporate investments and $92 million lower consumer sale and securitization results, which
included MSR hedging losses of $21 million in the current period compared with $22 million
of hedging gains in the prior year period (MSR results are reflected in other banking
fees).
  Noninterest Expense
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Salaries and employee benefits
    
    $
    2,628
    
    
    
    2,531
    
    
    
    8,722
    
    
    
    7,880Occupancy
    
    
    325
    
    
    
    284
    
    
    
    968
    
    
    
    850Equipment
    
    
    283
    
    
    
    291
    
    
    
    899
    
    
    
    870Advertising
    
    
    62
    
    
    
    54
    
    
    
    193
    
    
    
    157Communications and supplies
    
    
    175
    
    
    
    158
    
    
    
    528
    
    
    
    487Professional and consulting fees
    
    
    196
    
    
    
    200
    
    
    
    582
    
    
    
    551Sundry expense
    
    
    692
    
    
    
    397
    
    
    
    1,650
    
    
    
    1,338Other noninterest expense
    
    
    4,361
    
    
    
    3,915
    
    
    
    13,542
    
    
    
    12,133Merger-related and restructuring expenses
    
    
    36
    
    
    
    38
    
    
    
    78
    
    
    
    130Other intangible amortization
    
    
    92
    
    
    
    92
    
    
    
    313
    
    
    
    282Total noninterest expense
    
    $
    4,489
    
    
    
    4,045
    
    
    
    13,933
    
    
    
    12,545
 Noninterest
Expense
 11




---



##### 



Merger-Related and Restructuring Expenses
 Income
Taxes
 Business Segments
   
    
    A $617 million decrease in the General Bank.
    
    A $29 million increase in Wealth Management.
    
    A $491 million increase in the Corporate and Investment Bank.
    
    A $20 million decrease in Capital Management.
    
    A $117 million increase in the Parent.
 12




---



##### 



General
Bank
Performance Summary
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Income statement dataNet interest income (Tax-equivalent)
    
    $
    3,486
    
    
    
    2,529
    
    
    
    10,308
    
    
    
    7,288Fee and other income
    
    
    969
    
    
    
    886
    
    
    
    2,808
    
    
    
    2,581Intersegment revenue
    
    
    45
    
    
    
    36
    
    
    
    120
    
    
    
    103Total revenue (Tax-equivalent)
    
    
    4,500
    
    
    
    3,451
    
    
    
    13,236
    
    
    
    9,972Provision for credit losses
    
    
    214
    
    
    
    120
    
    
    
    529
    
    
    
    278Noninterest expense
    
    
    2,015
    
    
    
    1,621
    
    
    
    6,017
    
    
    
    4,893Income taxes (Tax-equivalent)
    
    
    828
    
    
    
    624
    
    
    
    2,441
    
    
    
    1,752Segment earnings
    
    $
    1,443
    
    
    
    1,086
    
    
    
    4,249
    
    
    
    3,049Performance and other dataEconomic profit
    
    $
    1,122
    
    
    
    870
    
    
    
    3,249
    
    
    
    2,411Risk adjusted return on capital (RAROC)
    
    
    49.53
    %
    
    
    59.47
    
    
    
    48.92
    
    
    
    58.66Economic capital, average
    
    $
    11,556
    
    
    
    7,121
    
    
    
    11,455
    
    
    
    6,762Cash overhead efficiency ratio (Tax-equivalent)
    
    
    44.75
    %
    
    
    46.96
    
    
    
    45.45
    
    
    
    49.07Lending commitments
    
    $
    131,267
    
    
    
    108,562
    
    
    
    131,267
    
    
    
    108,562Average loans, net
    
    
    297,295
    
    
    
    162,501
    
    
    
    294,327
    
    
    
    155,931Average core deposits
    
    $
    290,693
    
    
    
    208,705
    
    
    
    288,711
    
    
    
    206,490FTE employees
    
    
    56,605
    
    
    
    44,843
    
    
    
    56,605
    
    
    
    44,843
 General Bank
 
    
    33 percent revenue growth, led by 41 percent growth in net interest income as a result of
a larger balance sheet largely related to Golden West. Organic strength in loan production,
particularly in commercial, business banking and auto, as well as the 2006 re-entry into the
credit card business, also contributed to net interest income growth.
    
    9 percent growth in fee and other income, with solid growth in service charges and
interchange income more than offsetting the effect of the $100 million credit card fee in
the first nine months a year ago and a decline in mortgage securitization activity and
deliveries to the secondary market.
    
    Commercial loan growth driven by middle-market commercial and business banking. Consumer
loan growth included the impact of Golden West, principally variable rate consumer real
estate loans, with additional organic growth in auto and credit cards. Higher interest
spreads in the auto loan portfolio partially offset slowing growth in home equity lines as
customers shifted from variable rate to fixed rate products.
    
    Core deposit growth of 40 percent led by consumer certificates of deposit reflecting the
addition of Golden West and strong sales momentum. Solid progress toward year-end goal of
one million net new retail checking accounts for the year with an increase of 832,000 in the
first nine months of 2007, compared with an increase of 467,000 in the first nine months of
2006 and 554,000 in the full year 2006. Of the net new retail checking accounts in the first
nine months of 2007, 93,000 or 11 percent came from World Savings branches.
    
    23 percent increase in noninterest expense including the acquisition impact, de novo
branch activity and other growth initiatives.
    
    An increased provision as a result of higher net charge-offs in auto, commercial and
consumer real estate loans.
    
    Improvement in the overhead efficiency ratio to 45.45 percent due to merger efficiencies,
expense management efforts and revenue growth.
 13




---



##### 



Wealth Management
Performance Summary
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Income statement dataNet interest income (Tax-equivalent)
    
    $
    183
    
    
    
    176
    
    
    
    543
    
    
    
    527Fee and other income
    
    
    185
    
    
    
    197
    
    
    
    583
    
    
    
    581Intersegment revenue
    
    
    4
    
    
    
    3
    
    
    
    10
    
    
    
    7Total revenue (Tax-equivalent)
    
    
    372
    
    
    
    376
    
    
    
    1,136
    
    
    
    1,115Provision for credit losses
    
    
    6
    
    
    
    2
    
    
    
    9
    
    
    
    4Noninterest expense
    
    
    252
    
    
    
    249
    
    
    
    765
    
    
    
    775Income taxes (Tax-equivalent)
    
    
    42
    
    
    
    46
    
    
    
    132
    
    
    
    123Segment earnings
    
    $
    72
    
    
    
    79
    
    
    
    230
    
    
    
    213Performance and other dataEconomic profit
    
    $
    53
    
    
    
    58
    
    
    
    168
    
    
    
    152Risk adjusted return on capital (RAROC)
    
    
    42.88
    %
    
    
    48.17
    
    
    
    45.74
    
    
    
    44.02Economic capital, average
    
    $
    650
    
    
    
    626
    
    
    
    645
    
    
    
    616Cash overhead efficiency ratio (Tax-equivalent)
    
    
    67.87
    %
    
    
    66.34
    
    
    
    67.31
    
    
    
    69.52Lending commitments
    
    $
    7,007
    
    
    
    6,481
    
    
    
    7,007
    
    
    
    6,481Average loans, net
    
    
    21,492
    
    
    
    19,237
    
    
    
    20,954
    
    
    
    18,569Average core deposits
    
    $
    16,638
    
    
    
    16,312
    
    
    
    16,893
    
    
    
    16,575FTE employees
    
    
    4,547
    
    
    
    4,716
    
    
    
    4,547
    
    
    
    4,716
 Wealth Management
 
    
    Essentially flat fee and other income, including an $11 million insurance commission
receivables write-off as well as nonstrategic insurance account dispositions. Fiduciary and
asset management fees grew 9 percent driven by client acceptance of the new investment
platform, new sales and higher market valuations.
    
    A 3 percent increase in net interest income as solid loan growth and modest deposit
growth overcame margin compression.
    
    Lower noninterest expense as a result of lower headcount related to efficiency
initiatives.
    
    10 percent growth in assets under management from year-end 2006 to $82.8 billion as a
result of higher market valuations and new sales.
  14




---



##### 



Corporate and Investment Bank
Performance Summary
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Income statement dataNet interest income (Tax-equivalent)
    
    $
    837
    
    
    
    709
    
    
    
    2,325
    
    
    
    2,134Fee and other income
    
    
    21
    
    
    
    998
    
    
    
    2,621
    
    
    
    3,470Intersegment revenue
    
    
    (39
    )
    
    
    (31
    )
    
    
    (104
    )
    
    
    (89
    )Total revenue (Tax-equivalent)
    
    
    819
    
    
    
    1,676
    
    
    
    4,842
    
    
    
    5,515Provision for credit losses
    
    
    1
    
    
    
    (4
    )
    
    
    5
    
    
    
    (37
    )Noninterest expense
    
    
    655
    
    
    
    840
    
    
    
    2,672
    
    
    
    2,712Income taxes (Tax-equivalent)
    
    
    58
    
    
    
    307
    
    
    
    790
    
    
    
    1,037Segment earnings
    
    $
    105
    
    
    
    533
    
    
    
    1,375
    
    
    
    1,803Performance and other dataEconomic profit (loss)
    
    $
    (224
    )
    
    
    270
    
    
    
    490
    
    
    
    1,035Risk adjusted return on capital (RAROC)
    
    
    2.03
    %
    
    
    24.50
    
    
    
    18.21
    
    
    
    29.23Economic capital, average
    
    $
    9,897
    
    
    
    7,921
    
    
    
    9,079
    
    
    
    7,589Cash overhead efficiency ratio (Tax-equivalent)
    
    
    79.75
    %
    
    
    50.09
    
    
    
    55.17
    
    
    
    49.17Lending commitments
    
    $
    138,239
    
    
    
    121,963
    
    
    
    138,239
    
    
    
    121,963Average loans, net
    
    
    82,942
    
    
    
    70,901
    
    
    
    77,705
    
    
    
    68,268Average core deposits
    
    $
    37,040
    
    
    
    31,576
    
    
    
    35,876
    
    
    
    31,370FTE employees
    
    
    6,293
    
    
    
    6,317
    
    
    
    6,293
    
    
    
    6,317
 Corporate and Investment Bank
 
    
    A 9 percent increase in net interest income reflecting higher average loans, and as a
consequence of the market disruption, higher structured product warehouse balances.
    
    A 24 percent decrease in fee income reflecting the net
market disruption-related valuation losses, including $347 million of
losses on subprime exposure as follows:
 o
    
    $488 million on commercial mortgage structured products, largely related to
valuation losses on commitments, warehouses and trading positions;o
    
    $103 million on consumer mortgage structured products;o
    
    $438 million on CDOs/CLOs and other structured credit products, largely related to warehouse
positions; ando
    
    $272 million on leveraged finance net of fees and hedges, including $334
million of write-downs on leveraged finance commitments partially offset by hedging
gains in trading.
 
    
    Leveraged finance exposure at September 30, 2007, of $11.1 billion including $10.4
billion of unfunded commitments, essentially flat compared with
June 30, 2007.
    
    Strong advisory and underwriting fees across most investment banking products, with solid
growth in equities underwriting, merger and acquisition advisory services, structured
products and high yield underwriting.
    
    Improved principal investing results largely reflecting a $270 million unrealized gain
related to the sale of a minority interest in a portion of the direct investment portfolio.
    
    Average loan growth of 14 percent driven by real estate capital markets, international
trade finance and asset-based lending.
 15




---



##### 




    
    Average core deposit growth of 14 percent primarily from global money market deposits and
commercial mortgage servicing.
    
    Provision reflecting lower recoveries than experienced in the prior year.
    
    A 1 percent decline in noninterest expense reflected lower revenue-based incentive
expense.
  Capital Management
Performance Summary
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Income statement dataNet interest income (Tax-equivalent)
    
    $
    271
    
    
    
    253
    
    
    
    797
    
    
    
    776Fee and other income
    
    
    1,408
    
    
    
    1,217
    
    
    
    4,354
    
    
    
    3,644Intersegment revenue
    
    
    (8
    )
    
    
    (8
    )
    
    
    (27
    )
    
    
    (25
    )Total revenue (Tax-equivalent)
    
    
    1,671
    
    
    
    1,462
    
    
    
    5,124
    
    
    
    4,395Provision for credit losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Noninterest expense
    
    
    1,238
    
    
    
    1,097
    
    
    
    3,770
    
    
    
    3,350Income taxes (Tax-equivalent)
    
    
    158
    
    
    
    133
    
    
    
    494
    
    
    
    381Segment earnings
    
    $
    275
    
    
    
    232
    
    
    
    860
    
    
    
    664Performance and other dataEconomic profit
    
    $
    232
    
    
    
    193
    
    
    
    729
    
    
    
    546Risk adjusted return on capital (RAROC)
    
    
    69.89
    %
    
    
    65.28
    
    
    
    72.30
    
    
    
    62.02Economic capital, average
    
    $
    1,560
    
    
    
    1,412
    
    
    
    1,590
    
    
    
    1,431Cash overhead efficiency ratio (Tax-equivalent)
    
    
    74.08
    %
    
    
    74.98
    
    
    
    73.57
    
    
    
    76.20Lending commitments
    
    $
    980
    
    
    
    831
    
    
    
    980
    
    
    
    831Average loans, net
    
    
    2,142
    
    
    
    1,235
    
    
    
    1,789
    
    
    
    1,044Average core deposits
    
    $
    31,489
    
    
    
    30,114
    
    
    
    31,463
    
    
    
    31,829FTE employees
    
    
    17,916
    
    
    
    17,297
    
    
    
    17,916
    
    
    
    17,297
 Capital Management
 
    
    19 percent growth in fee and other income on continued strength in managed account fees
as managed account assets grew 22 percent to $157.7 billion. Commissions grew 14 percent
driven by solid brokerage transaction activity including higher equity syndicate volumes.
 o
    
    $4.3 billion in revenue from our retail brokerage businesses included
transactional revenues of $1.6 billion and asset-based and other income of $2.7 billion.
Retail brokerage fee income increased 18 percent driven by strength in managed account
and other asset-based fees, higher brokerage transaction activity and equity syndicate
distribution fees.o
    
    $843 million in revenue from our asset management businesses, up $187 million,
driven by the addition of ECM and other acquisitions, as well as growth in assets under
management. Partially offsetting growth was a $40 million valuation loss pertaining to
the market disruption-related purchase of certain asset-backed commercial paper
investments from Evergreen money market funds.
 
    
    13 percent higher noninterest expense, primarily due to increased commissions and
incentives, as well as the impact of acquisitions.
 16




---



##### 



Total Assets Under Management (AUM)
 2007
    
    
    2006Third Quarter
    
    
    Second Quarter
    
    
    Fourth Quarter(In billions)
    
    Amount
    
    
    Mix
    
    
    Amount
    
    
    Mix
    
    
    Amount
    
    
    MixEquity
    
    $
    85
    
    
    
    30
    %
    
    $
    85
    
    
    
    30
    %
    
    $
    104
    
    
    
    37
    %Fixed income
    
    
    137
    
    
    
    48
    
    
    
    135
    
    
    
    48
    
    
    
    114
    
    
    
    41Money market
    
    
    63
    
    
    
    22
    
    
    
    61
    
    
    
    22
    
    
    
    61
    
    
    
    22Total assets under
management (a)
    
    $
    285
    
    
    
    100
    %
    
    $
    281
    
    
    
    100
    %
    
    $
    279
    
    
    
    100
    %Securities lending
    
    
    57
    
    
    
    
    
    
    
    64
    
    
    
    
    
    
    
    57
    
    
    
    Total assets under
management and
securities lending
    
    $
    342
    
    
    
    
    
    
    $
    345
    
    
    
    
    
    
    $
    336
    
    
    
    
 (a)
    
    Includes $ 46 billion in assets managed for Wealth Management, which are also
reported in that segment.
 Mutual Funds (AUM also included in the above)
 2007
    
    
    2006Third Quarter
    
    
    Second Quarter
    
    
    Fourth QuarterFund
    
    
    
    
    
    
    Fund
    
    
    
    
    
    
    Fund(In billions)
    
    Amount
    
    
    Mix
    
    
    Amount
    
    
    Mix
    
    
    Amount
    
    
    MixEquity
    
    $
    38
    
    
    
    34
    %
    
    $
    38
    
    
    
    35
    %
    
    $
    36
    
    
    
    33
    %Fixed income
    
    
    20
    
    
    
    18
    
    
    
    22
    
    
    
    20
    
    
    
    23
    
    
    
    21Money market
    
    
    53
    
    
    
    48
    
    
    
    49
    
    
    
    45
    
    
    
    49
    
    
    
    46Total mutual fund assets
    
    $
    111
    
    
    
    100
    %
    
    $
    109
    
    
    
    100
    %
    
    $
    108
    
    
    
    100
    %
   Parent
Performance Summary
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Income statement dataNet interest income (Tax-equivalent)
    
    $
    (193
    )
    
    
    (89
    )
    
    
    (365
    )
    
    
    67Fee and other income
    
    
    178
    
    
    
    167
    
    
    
    302
    
    
    
    289Intersegment revenue
    
    
    (2
    )
    
    
    
    
    
    
    1
    
    
    
    4Total revenue (Tax-equivalent)
    
    
    (17
    )
    
    
    78
    
    
    
    (62
    )
    
    
    360Provision for credit losses
    
    
    187
    
    
    
    (10
    )
    
    
    221
    
    
    
    (17
    )Noninterest expense
    
    
    293
    
    
    
    200
    
    
    
    631
    
    
    
    685Minority interest
    
    
    189
    
    
    
    104
    
    
    
    464
    
    
    
    288Income taxes (Tax-equivalent)
    
    
    (430
    )
    
    
    (188
    )
    
    
    (972
    )
    
    
    (443
    )Segment earnings (loss)
    
    $
    (256
    )
    
    
    (28
    )
    
    
    (406
    )
    
    
    (153
    )Performance and other dataEconomic profit (loss)
    
    $
    (138
    )
    
    
    (63
    )
    
    
    (264
    )
    
    
    (236
    )Risk adjusted return on capital (RAROC)
    
    
    (13.86
    )%
    
    
    2.53
    
    
    
    (4.39
    )
    
    
    0.01Economic capital, average
    
    $
    2,201
    
    
    
    2,955
    
    
    
    2,287
    
    
    
    2,861Cash overhead efficiency ratio (Tax-equivalent)
    
    
    
    %
    
    
    141.26
    
    
    
    (499.36
    )
    
    
    112.21Lending commitments
    
    $
    529
    
    
    
    457
    
    
    
    529
    
    
    
    457Average loans, net
    
    
    25,930
    
    
    
    27,236
    
    
    
    27,385
    
    
    
    28,580Average core deposits
    
    $
    3,149
    
    
    
    4,520
    
    
    
    2,684
    
    
    
    4,766FTE employees
    
    
    24,363
    
    
    
    23,887
    
    
    
    24,363
    
    
    
    23,887
 Parent
 17




---



##### 




    
    A decline in net interest income, largely reflecting decreases in securities and other
earning assets including the sale of $13.2 billion of securities in late 2006 in connection
with the Golden West merger, and growth in wholesale borrowings due to the addition of
Westcorp. In addition, the contribution from hedge-related derivatives was lower. The third
quarter of 2007 included a benefit of $39 million for the
correction of an accounting error relating to
first quarter 2007 and second quarter 2007 amortization of deferred loan costs on certain of
our mortgage products.
    
    A $238 million increase in the provision for loan losses, largely in the third quarter of
2007, reflecting increased credit risk, loan growth and an addition to the unallocated
component of the allowance. The Parent includes the provision for
loan losses that remains after recording actual net charge-offs in
the business segments.
    
    A $13 million increase in fee and other income reflecting net securities gains of $72
million compared with $33 million in the year-ago period, as well as increased fees related
to certain corporate investments and improved trading results, partially offset by the
effect of divestitures in 2006.
    
    An 8 percent decrease in noninterest expense reflecting efficiencies, the divestiture of
our subprime mortgage servicing operation, and increased technology costs in the business
segments offset in the Parent. In addition, noninterest expense includes
costs for various litigation matters associated with our
membership interest in Visa.
 Corporate Results of
Operations
 18




---



##### 



19




---



##### 



Balance Sheet Analysis
 Securities Interest Rate Risk Management
 Securities Available For Sale
 September 30,
    
    
    December 31,(In billions)
    
    2007
    
    
    2006Market value
    
    $
    111.8
    
    
    
    108.6Net unrealized loss
    
    $
    (2.0
    )
    
    
    (1.0
    )Memoranda(Market value)Residual interests
    
    $
    0.5
    
    
    
    0.8Retained bondsInvestment grade (a)
    
    $
    7.0
    
    
    
    6.6
 (a)
    
    $ 6.6 billion had credit ratings of AA and above at September 30, 2007.
  Loans
 On-Balance Sheet
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCommercialCommercial, financial and agricultural
    
    $
    109,269
    
    
    
    102,397
    
    
    
    99,687
    
    
    
    96,285
    
    
    
    95,281Real estate - construction and other
    
    
    18,167
    
    
    
    17,449
    
    
    
    16,965
    
    
    
    16,182
    
    
    
    16,067Real estate - mortgage
    
    
    21,514
    
    
    
    20,448
    
    
    
    20,130
    
    
    
    20,026
    
    
    
    19,455Lease financing
    
    
    23,966
    
    
    
    24,083
    
    
    
    24,053
    
    
    
    25,341
    
    
    
    25,253Foreign
    
    
    26,471
    
    
    
    20,959
    
    
    
    16,240
    
    
    
    13,464
    
    
    
    12,677Total commercial
    
    
    199,387
    
    
    
    185,336
    
    
    
    177,075
    
    
    
    171,298
    
    
    
    168,733ConsumerReal estate secured
    
    
    225,355
    
    
    
    220,293
    
    
    
    220,682
    
    
    
    225,826
    
    
    
    100,115Student loans
    
    
    7,742
    
    
    
    6,757
    
    
    
    8,479
    
    
    
    7,768
    
    
    
    9,175Installment loans
    
    
    24,763
    
    
    
    25,017
    
    
    
    23,665
    
    
    
    22,660
    
    
    
    21,454Total consumer
    
    
    257,860
    
    
    
    252,067
    
    
    
    252,826
    
    
    
    256,254
    
    
    
    130,744Total loans
    
    
    457,247
    
    
    
    437,403
    
    
    
    429,901
    
    
    
    427,552
    
    
    
    299,477Unearned income
    
    
    (8,041
    )
    
    
    (8,283
    )
    
    
    (8,238
    )
    
    
    (7,394
    )
    
    
    (8,718
    )Loans, net (On-balance sheet)
    
    $
    449,206
    
    
    
    429,120
    
    
    
    421,663
    
    
    
    420,158
    
    
    
    290,759
 Loans
 Managed Portfolio (Including on-balance sheet)
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCommercial
    
    $
    213,434
    
    
    
    197,079
    
    
    
    187,723
    
    
    
    180,358
    
    
    
    174,507Real estate secured
    
    
    242,526
    
    
    
    238,575
    
    
    
    236,995
    
    
    
    240,178
    
    
    
    113,907Student loans
    
    
    12,618
    
    
    
    11,760
    
    
    
    11,576
    
    
    
    10,948
    
    
    
    12,445Installment loans
    
    
    29,365
    
    
    
    28,273
    
    
    
    27,118
    
    
    
    26,355
    
    
    
    25,477Total managed portfolio
    
    $
    497,943
    
    
    
    475,687
    
    
    
    463,412
    
    
    
    457,839
    
    
    
    326,336
 Loans
 20




---



##### 



Stockholders Equity
  
    
    Commercial loans represented 44 percent and consumer loans 56 percent of the loan
portfolio at September 30, 2007.
    
    74 percent of the commercial loan portfolio is secured by collateral.
    
    99 percent of the consumer loan portfolio is secured by collateral or guaranteed.
  
    
    87 percent is secured by a first lien.
    
    83 percent has a loan-to-value ratio of 80 percent or less.
    
    95 percent has a loan-to-value ratio of 90 percent or less.
    
    Less than 14 percent of the home equity and prime equity portfolios have a loan-to-value
ratio greater than 90 percent.
  21




---



##### 



Nonperforming Assets
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterNonaccrual LoansCommercial:Commercial, financial and agricultural
    
    $
    354
    
    
    
    318
    
    
    
    303
    
    
    
    226
    
    
    
    275Commercial
real estate - construction
and mortgage
    
    
    289
    
    
    
    161
    
    
    
    117
    
    
    
    93
    
    
    
    80Total commercial
    
    
    643
    
    
    
    479
    
    
    
    420
    
    
    
    319
    
    
    
    355Consumer:Real estate secured:First lien
    
    
    1,865
    
    
    
    1,293
    
    
    
    1,076
    
    
    
    868
    
    
    
    183Second lien
    
    
    41
    
    
    
    43
    
    
    
    37
    
    
    
    32
    
    
    
    30Installment and other loans (a)
    
    
    45
    
    
    
    42
    
    
    
    51
    
    
    
    15
    
    
    
    10Total consumer
    
    
    1,951
    
    
    
    1,378
    
    
    
    1,164
    
    
    
    915
    
    
    
    223Total nonaccrual loans
    
    
    2,594
    
    
    
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578Foreclosed properties (b)
    
    
    334
    
    
    
    207
    
    
    
    155
    
    
    
    132
    
    
    
    181Total nonperforming assets
    
    $
    2,928
    
    
    
    2,064
    
    
    
    1,739
    
    
    
    1,366
    
    
    
    759as % of loans, net, and foreclosed properties (c)
    
    
    0.65
    %
    
    
    0.48
    
    
    
    0.41
    
    
    
    0.32
    
    
    
    0.26Nonperforming assets included in loans
held for saleCommercial
    
    $
    
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    9Consumer
    
    
    59
    
    
    
    42
    
    
    
    25
    
    
    
    15
    
    
    
    14Total nonperforming assets included in
loans held for sale
    
    
    59
    
    
    
    42
    
    
    
    26
    
    
    
    16
    
    
    
    23Nonperforming assets included in loans
and in loans held for sale
    
    $
    2,987
    
    
    
    2,106
    
    
    
    1,765
    
    
    
    1,382
    
    
    
    782as % of loans, net, foreclosed properties and
loans held for sale (d)
    
    
    0.63
    %
    
    
    0.47
    
    
    
    0.40
    
    
    
    0.32
    
    
    
    0.26Past due loans, 90 days and over,
and nonaccrual loans(c)Accruing loans past due 90 days and over
    
    $
    590
    
    
    
    562
    
    
    
    555
    
    
    
    650
    
    
    
    666Nonaccrual loans
    
    
    2,594
    
    
    
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578Total past due loans 90 days and over,
and nonaccrual loans
    
    $
    3,184
    
    
    
    2,419
    
    
    
    2,139
    
    
    
    1,884
    
    
    
    1,244Commercial, as a % of loans, net
    
    
    0.38
    %
    
    
    0.31
    
    
    
    0.28
    
    
    
    0.23
    
    
    
    0.28Consumer, as a % of loans, net
    
    
    0.95
    %
    
    
    0.74
    
    
    
    0.66
    
    
    
    0.59
    
    
    
    0.61
 (a)
    
    Principally auto loans; nonaccrual status does not apply to student loans.(b)
    
    Restructured loans are not significant.(c)
    
    These ratios do not include nonperforming assets included in loans held for sale.(d)
    
    These ratios reflect nonperforming assets 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.
 Nonperforming Assets
 Past Due Loans
 22




---



##### 



Asset Quality
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterAllowance for credit losses(a)Balance, beginning of period
    
    $
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163
    
    
    
    3,186Provision for credit losses
    
    
    381
    
    
    
    168
    
    
    
    175
    
    
    
    204
    
    
    
    118Provision for credit losses relating to loans
transferred to loans held for sale or sold
    
    
    3
    
    
    
    4
    
    
    
    1
    
    
    
    7
    
    
    
    (4
    )Provision for credit losses for unfunded
lending commitments
    
    
    24
    
    
    
    7
    
    
    
    1
    
    
    
    (5
    )
    
    
    (6
    )Loan losses:Commercial, financial and agricultural
    
    
    (41
    )
    
    
    (39
    )
    
    
    (34
    )
    
    
    (32
    )
    
    
    (25
    )Commercial
real estate - construction and mortgage
    
    
    (5
    )
    
    
    (4
    )
    
    
    (6
    )
    
    
    (10
    )
    
    
    (2
    )Total commercial
    
    
    (46
    )
    
    
    (43
    )
    
    
    (40
    )
    
    
    (42
    )
    
    
    (27
    )Real estate secured
    
    
    (59
    )
    
    
    (40
    )
    
    
    (33
    )
    
    
    (29
    )
    
    
    (25
    )Student loans
    
    
    (5
    )
    
    
    (2
    )
    
    
    (3
    )
    
    
    (5
    )
    
    
    (5
    )Installment and other loans (b)
    
    
    (168
    )
    
    
    (138
    )
    
    
    (142
    )
    
    
    (135
    )
    
    
    (119
    )Total consumer
    
    
    (232
    )
    
    
    (180
    )
    
    
    (178
    )
    
    
    (169
    )
    
    
    (149
    )Total loan losses
    
    
    (278
    )
    
    
    (223
    )
    
    
    (218
    )
    
    
    (211
    )
    
    
    (176
    )Loan recoveries:Commercial, financial and agricultural
    
    
    9
    
    
    
    15
    
    
    
    9
    
    
    
    27
    
    
    
    14Commercial
real estate - construction and mortgage
    
    
    3
    
    
    
    
    
    
    
    3
    
    
    
    1
    
    
    
    1Total commercial
    
    
    12
    
    
    
    15
    
    
    
    12
    
    
    
    28
    
    
    
    15Real estate secured
    
    
    12
    
    
    
    11
    
    
    
    6
    
    
    
    7
    
    
    
    9Student loans
    
    
    3
    
    
    
    
    
    
    
    1
    
    
    
    3
    
    
    
    1Installment and other loans (b)
    
    
    45
    
    
    
    47
    
    
    
    44
    
    
    
    33
    
    
    
    35Total consumer
    
    
    60
    
    
    
    58
    
    
    
    51
    
    
    
    43
    
    
    
    45Total loan recoveries
    
    
    72
    
    
    
    73
    
    
    
    63
    
    
    
    71
    
    
    
    60Net charge-offs
    
    
    (206
    )
    
    
    (150
    )
    
    
    (155
    )
    
    
    (140
    )
    
    
    (116
    )Balance of acquired entities at purchase date
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    303
    
    
    
    Allowance relating to loans acquired, transferred
to loans held for sale or sold
    
    
    (63
    )
    
    
    (10
    )
    
    
    (3
    )
    
    
    (18
    )
    
    
    (15
    )Balance, end of period
    
    $
    3,691
    
    
    
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163Allowance for credit losses:Allowance for loan losses
    
    $
    3,505
    
    
    
    3,390
    
    
    
    3,378
    
    
    
    3,360
    
    
    
    3,004Reserve for unfunded lending commitments
    
    
    186
    
    
    
    162
    
    
    
    155
    
    
    
    154
    
    
    
    159Total allowance for credit losses
    
    $
    3,691
    
    
    
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163Allowance for loan lossesas % of loans, net
    
    
    0.78
    %
    
    
    0.79
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    1.03as % of nonaccrual and restructured loans (c)(d)
    
    
    135
    
    
    
    182
    
    
    
    213
    
    
    
    272
    
    
    
    520as % of nonperforming assets (c)
    
    
    120
    
    
    
    164
    
    
    
    194
    
    
    
    246
    
    
    
    396Allowance for credit lossesas % of loans, net
    
    
    0.82
    %
    
    
    0.83
    
    
    
    0.84
    
    
    
    0.84
    
    
    
    1.09Net charge-offs as a % of average loans, net(e)Commercial, financial and agricultural
    
    
    0.10
    %
    
    
    0.07
    
    
    
    0.08
    
    
    
    0.02
    
    
    
    0.04Commercial
real estate - construction and mortgage
    
    
    0.02
    
    
    
    0.04
    
    
    
    0.04
    
    
    
    0.10
    
    
    
    0.02Total commercial
    
    
    0.08
    
    
    
    0.07
    
    
    
    0.07
    
    
    
    0.04
    
    
    
    0.03Real estate secured
    
    
    0.08
    
    
    
    0.05
    
    
    
    0.05
    
    
    
    0.04
    
    
    
    0.06Student loans
    
    
    0.14
    
    
    
    0.07
    
    
    
    0.10
    
    
    
    0.09
    
    
    
    0.14Installment and other loans (b)
    
    
    1.99
    
    
    
    1.47
    
    
    
    1.67
    
    
    
    1.79
    
    
    
    1.58Total consumer
    
    
    0.27
    
    
    
    0.19
    
    
    
    0.20
    
    
    
    0.19
    
    
    
    0.32Total, as % of average loans, net
    
    
    0.19
    %
    
    
    0.14
    
    
    
    0.15
    
    
    
    0.14
    
    
    
    0.16Consumer real estate secured net charge-offs:First lien
    
    $
    (32
    )
    
    
    (17
    )
    
    
    (15
    )
    
    
    (15
    )
    
    
    (10
    )Second lien
    
    
    (15
    )
    
    
    (12
    )
    
    
    (12
    )
    
    
    (7
    )
    
    
    (6
    )Total consumer real estate secured net charge-offs
    
    $
    (47
    )
    
    
    (29
    )
    
    
    (27
    )
    
    
    (22
    )
    
    
    (16
    )
 (a)
    
    The allowance for credit losses is the sum of the allowance for loan losses and the
reserve for unfunded lending commitments.(b)
    
    Principally auto loans.(c)
    
    These ratios do not include nonperforming assets included in loans held for sale.(d)
    
    Restructured loans are not significant.(e)
    
    Annualized.
 Net Charge-offs
 23




---



##### 



Provision for Credit Losses Corporate Results of
Operations
 Allowance for Loan Losses and Reserve for Unfunded Lending Commitments
  Loans Held for Sale
  Goodwill
  24




---



##### 



Liquidity and Capital Adequacy
  Core Deposits
 Purchased Funds
 Long-term Debt
   25




---



##### 



Credit Lines
 Stockholders
Equity
 Dividend and Share Activity
 Nine Months EndedSeptember 30,(In millions, except per share data)
    
    2007
    
    
    2006Dividends
    
    $
    3,352
    
    
    
    2,525Dividends per common share
    
    $
    1.76
    
    
    
    1.58Common shares repurchased
    
    
    22
    
    
    
    75Average diluted common
shares outstanding
    
    
    1,918
    
    
    
    1,600
 Accounting for a Change or Projected
Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease
Transaction Accounting for Uncertainty in Income
Taxes  an interpretation of FASB Statement No. 109, Accounting for Certain Hybrid Financial Instruments  an amendment of FASB
Statements No. 133 and 140, . Notes to Consolidated Financial
Statements
 Subsidiary Dividends
 26




---



##### 



Regulatory Capital
 Summary of Off-Balance Sheet Exposures
 September 30, 2007
    
    
    December 31, 2006Carrying
    
    
    
    
    
    
    Carrying(In millions)
    
    Amount
    
    
    Exposure
    
    
    Amount
    
    
    ExposureGuaranteesSecurities and other lending indemnifications
    
    $
    
    
    
    
    62,154
    
    
    
    
    
    
    
    61,715Standby letters of credit
    
    
    117
    
    
    
    38,845
    
    
    
    115
    
    
    
    37,783Liquidity agreements
    
    
    14
    
    
    
    33,399
    
    
    
    9
    
    
    
    27,610Loans sold with recourse
    
    
    43
    
    
    
    6,070
    
    
    
    50
    
    
    
    7,543Residual value guarantees
    
    
    
    
    
    
    1,173
    
    
    
    
    
    
    
    1,131Total guarantees
    
    $
    174
    
    
    
    141,641
    
    
    
    174
    
    
    
    135,782
 Off-Balance Sheet Transactions
      27




---



##### 



Risk Governance and Administration
 Market Risk Management
  Interest Rate Risk Management
   28




---



##### 



29




---



##### 



Earnings Sensitivity Policy Period Sensitivity Measurement
  Policy Period
Sensitivity Measurement
 Actual
    
    
    ImpliedFed Funds
    
    
    Fed Funds
    
    
    PercentRate at
    
    
    Rate at
    
    
    EarningsOctober 2007
    
    
    September 2008
    
    
    SensitivityMarket Forward Rate Scenarios(a)
    
    
    4.75
    %
    
    
    4.08
    
    
    
    High Rate Composite
    
    
    
    
    
    
    6.08
    
    
    
    (2.00
    )Low Rate
    
    
    
    
    
    
    2.08
    
    
    
    2.90
 (a)
    
    Assumes base federal funds rate mirrors market expectations.
   30




---



##### 



Accounting and Regulatory Matters
  Fair Value Fair Value Measurements The Fair Value Option for Financial Assets and Financial
Liabilities
  Investment Company SOP Clarification of the Scope of the Audit and Accounting
Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for
Investments in Investment Companies
  Transfers of Financial Assets Accounting for Transfers and Servicing of Financial Assets
and Extinguishment of Liabilities
 31




---



##### 



Regulatory Matters
  32




---



##### 



Table 1
 
 EXPLANATION OF OUR USE OF NON-GAAP FINANCIAL MEASURES
 
      Three Months Ended
    
    
    
    Nine Months EndedSeptember 30,
    
    
    
    September 30,(In millions, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net interest income (GAAP)
    
    $
    4,551
    
    
    
    3,541
    
    
    
    13,500
    
    
    
    10,672Tax-equivalent adjustment
    
    
    33
    
    
    
    37
    
    
    
    108
    
    
    
    120Net interest income (Tax-equivalent)
    
    $
    4,584
    
    
    
    3,578
    
    
    
    13,608
    
    
    
    10,792DIVIDEND PAYOUT RATIOS ON COMMON SHARESDiluted earnings per common share (GAAP)
    
    $
    0.85
    
    
    
    1.17
    
    
    
    3.26
    
    
    
    3.43Other intangible amortization
    
    
    0.03
    
    
    
    0.04
    
    
    
    0.10
    
    
    
    0.11Merger-related and restructuring expenses
    
    
    0.01
    
    
    
    0.02
    
    
    
    0.03
    
    
    
    0.06Earnings per share (a)
    
    $
    0.89
    
    
    
    1.23
    
    
    
    3.39
    
    
    
    3.60Dividends paid per common share
    
    $
    0.64
    
    
    
    0.56
    
    
    
    1.76
    
    
    
    1.58Dividend payout ratios (GAAP)(b)
    
    
    75.29
    %
    
    
    47.86
    
    
    
    53.99
    
    
    
    46.06Dividend payout ratios (a) (b)
    
    
    71.91
    %
    
    
    45.53
    
    
    
    51.92
    
    
    
    43.89
   33




---



##### 



Table 2
 
 SELECTED STATISTICAL DATA
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions, except per share data)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterPROFITABILITYReturn on average common stockholders equity
    
    
    9.19
    %
    
    
    13.54
    
    
    
    13.47
    
    
    
    13.09
    
    
    
    14.85Net interest margin (a)
    
    
    2.92
    
    
    
    2.94
    
    
    
    3.04
    
    
    
    3.09
    
    
    
    3.03Fee and other income as % of total revenue
    
    
    37.59
    
    
    
    48.38
    
    
    
    44.93
    
    
    
    46.32
    
    
    
    49.20Effective income tax rate
    
    
    27.33
    %
    
    
    32.78
    
    
    
    30.22
    
    
    
    31.74
    
    
    
    31.33ASSET QUALITYAllowance for loan losses as % of loans, net
    
    
    0.78
    %
    
    
    0.79
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    1.03Allowance for loan losses as % of nonperforming assets (b)
    
    
    120
    
    
    
    164
    
    
    
    194
    
    
    
    246
    
    
    
    396Allowance for credit losses as % of loans, net
    
    
    0.82
    
    
    
    0.83
    
    
    
    0.84
    
    
    
    0.84
    
    
    
    1.09Net charge-offs as % of average loans, net
    
    
    0.19
    
    
    
    0.14
    
    
    
    0.15
    
    
    
    0.14
    
    
    
    0.16Nonperforming assets as % of loans, net,
foreclosed properties and loans held for sale
    
    
    0.63
    %
    
    
    0.47
    
    
    
    0.40
    
    
    
    0.32
    
    
    
    0.26CAPITAL ADEQUACYTier 1 capital ratio
    
    
    7.10
    %
    
    
    7.47
    
    
    
    7.35
    
    
    
    7.42
    
    
    
    7.74Total capital ratio
    
    
    10.84
    
    
    
    11.46
    
    
    
    11.41
    
    
    
    11.33
    
    
    
    11.47Leverage
    
    
    6.10
    
    
    
    6.23
    
    
    
    6.08
    
    
    
    6.01
    
    
    
    6.60Tangible capital ratio
    
    
    4.19
    
    
    
    4.30
    
    
    
    4.44
    
    
    
    4.45
    
    
    
    4.91Tangible capital ratio (c)
    
    
    4.56
    %
    
    
    4.76
    
    
    
    4.71
    
    
    
    4.75
    
    
    
    5.09OTHER DATAFTE employees
    
    
    109,724
    
    
    
    110,493
    
    
    
    110,369
    
    
    
    109,460
    
    
    
    97,060Total financial centers/brokerage offices
    
    
    4,167
    
    
    
    4,135
    
    
    
    4,167
    
    
    
    4,126
    
    
    
    3,870ATMs
    
    
    5,123
    
    
    
    5,099
    
    
    
    5,146
    
    
    
    5,212
    
    
    
    5,163Actual common shares (In millions)
    
    
    1,901
    
    
    
    1,903
    
    
    
    1,913
    
    
    
    1,904
    
    
    
    1,581Common stock price
    
    $
    50.15
    
    
    
    51.25
    
    
    
    55.05
    
    
    
    56.95
    
    
    
    55.80Market capitalization
    
    $
    95,326
    
    
    
    97,530
    
    
    
    105,330
    
    
    
    108,443
    
    
    
    88,231
    34




---



##### 



Table 3
 
 SUMMARIES OF INCOME, PER COMMON SHARE AND BALANCE SHEET DATA
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions, except per share data)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterSUMMARIES OF INCOMEInterest income
    
    $
    10,831
    
    
    
    10,350
    
    
    
    10,140
    
    
    
    10,370
    
    
    
    7,784Tax-equivalent adjustment
    
    
    33
    
    
    
    38
    
    
    
    37
    
    
    
    35
    
    
    
    37Interest income (a)
    
    
    10,864
    
    
    
    10,388
    
    
    
    10,177
    
    
    
    10,405
    
    
    
    7,821Interest expense
    
    
    6,280
    
    
    
    5,901
    
    
    
    5,640
    
    
    
    5,793
    
    
    
    4,243Net interest income (a)
    
    
    4,584
    
    
    
    4,487
    
    
    
    4,537
    
    
    
    4,612
    
    
    
    3,578Provision for credit losses
    
    
    408
    
    
    
    179
    
    
    
    177
    
    
    
    206
    
    
    
    108Net interest income after provision for credit losses (a)
    
    
    4,176
    
    
    
    4,308
    
    
    
    4,360
    
    
    
    4,406
    
    
    
    3,470Securities gains (losses)
    
    
    (34
    )
    
    
    23
    
    
    
    53
    
    
    
    47
    
    
    
    94Fee and other income
    
    
    2,795
    
    
    
    4,183
    
    
    
    3,648
    
    
    
    3,933
    
    
    
    3,371Merger-related and restructuring expenses
    
    
    36
    
    
    
    32
    
    
    
    10
    
    
    
    49
    
    
    
    38Other noninterest expense
    
    
    4,453
    
    
    
    4,824
    
    
    
    4,578
    
    
    
    4,882
    
    
    
    4,007Minority interest in income of consolidated subsidiaries
    
    
    189
    
    
    
    139
    
    
    
    136
    
    
    
    125
    
    
    
    104Income from continuing operations before income taxes (a)
    
    
    2,259
    
    
    
    3,519
    
    
    
    3,337
    
    
    
    3,330
    
    
    
    2,786Income taxes
    
    
    608
    
    
    
    1,140
    
    
    
    998
    
    
    
    1,040
    
    
    
    872Tax-equivalent adjustment
    
    
    33
    
    
    
    38
    
    
    
    37
    
    
    
    35
    
    
    
    37Income from continuing operations
    
    
    1,618
    
    
    
    2,341
    
    
    
    2,302
    
    
    
    2,255
    
    
    
    1,877Discontinued operations, net of income taxes
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    46
    
    
    
    -Net income
    
    $
    1,618
    
    
    
    2,341
    
    
    
    2,302
    
    
    
    2,301
    
    
    
    1,877PER COMMON SHARE DATABasic earningsIncome from continuing operations
    
    $
    0.86
    
    
    
    1.24
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.19Net income
    
    
    0.86
    
    
    
    1.24
    
    
    
    1.22
    
    
    
    1.22
    
    
    
    1.19Diluted earningsIncome from continuing operations
    
    
    0.85
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.18
    
    
    
    1.17Net income
    
    
    0.85
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.20
    
    
    
    1.17Cash dividends
    
    $
    0.64
    
    
    
    0.56
    
    
    
    0.56
    
    
    
    0.56
    
    
    
    0.56Average common shares  Basic
    
    
    1,885
    
    
    
    1,891
    
    
    
    1,894
    
    
    
    1,889
    
    
    
    1,573Average common shares  Diluted
    
    
    1,910
    
    
    
    1,919
    
    
    
    1,925
    
    
    
    1,922
    
    
    
    1,600Average common stockholders equityQuarter-to-date
    
    $
    69,857
    
    
    
    69,317
    
    
    
    69,320
    
    
    
    69,725
    
    
    
    50,143Year-to-date
    
    
    69,500
    
    
    
    69,318
    
    
    
    69,320
    
    
    
    54,263
    
    
    
    49,052Book value per common share
    
    
    36.90
    
    
    
    36.40
    
    
    
    36.47
    
    
    
    36.61
    
    
    
    32.37Common stock priceHigh
    
    
    52.64
    
    
    
    56.81
    
    
    
    58.77
    
    
    
    57.49
    
    
    
    56.67Low
    
    
    44.94
    
    
    
    51.25
    
    
    
    53.88
    
    
    
    53.37
    
    
    
    52.40Period-end
    
    $
    50.15
    
    
    
    51.25
    
    
    
    55.05
    
    
    
    56.95
    
    
    
    55.80To earnings ratio (b)
    
    
    11.22
    X
    
    
    10.70
    
    
    
    11.61
    
    
    
    12.30
    
    
    
    12.35To book value
    
    
    136
    %
    
    
    141
    
    
    
    151
    
    
    
    156
    
    
    
    172BALANCE SHEET DATAAssets
    
    $
    754,168
    
    
    
    715,428
    
    
    
    702,669
    
    
    
    707,121
    
    
    
    559,922Long-term debt
    
    $
    158,584
    
    
    
    142,047
    
    
    
    142,334
    
    
    
    138,594
    
    
    
    86,419
   35




---



##### 



Table 4
 
 MERGER-RELATED AND RESTRUCTURING EXPENSES
 
 NineMonthsEndedSeptember 30,(In millions)
    
    2007Wachovia/Golden West
    
    $
    54Wachovia/Westcorp
    
    
    17Other
    
    
    7Total merger-related
and restructuring expenses
    
    $
    78
 36




---



##### 



Table 5
 
 BUSINESS SEGMENTS (a)
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterGENERAL BANK COMBINED (b)Net interest income (c)
    
    $
    3,486
    
    
    
    3,397
    
    
    
    3,425
    
    
    
    3,472
    
    
    
    2,529Fee and other income
    
    
    969
    
    
    
    969
    
    
    
    870
    
    
    
    956
    
    
    
    886Intersegment revenue
    
    
    45
    
    
    
    41
    
    
    
    34
    
    
    
    37
    
    
    
    36Total revenue (c)
    
    
    4,500
    
    
    
    4,407
    
    
    
    4,329
    
    
    
    4,465
    
    
    
    3,451Provision for credit losses
    
    
    214
    
    
    
    160
    
    
    
    155
    
    
    
    148
    
    
    
    120Noninterest expense
    
    
    2,015
    
    
    
    2,035
    
    
    
    1,967
    
    
    
    1,935
    
    
    
    1,621Income taxes
    
    
    817
    
    
    
    797
    
    
    
    795
    
    
    
    859
    
    
    
    614Tax-equivalent adjustment
    
    
    11
    
    
    
    10
    
    
    
    11
    
    
    
    10
    
    
    
    10Segment earnings
    
    $
    1,443
    
    
    
    1,405
    
    
    
    1,401
    
    
    
    1,513
    
    
    
    1,086Economic profit
    
    $
    1,122
    
    
    
    1,060
    
    
    
    1,067
    
    
    
    1,181
    
    
    
    870Risk adjusted return on capital
    
    
    49.53
    %
    
    
    47.97
    
    
    
    49.27
    
    
    
    53.03
    
    
    
    59.47Economic capital, average
    
    $
    11,556
    
    
    
    11,502
    
    
    
    11,305
    
    
    
    11,148
    
    
    
    7,121Cash overhead efficiency ratio (c)
    
    
    44.75
    %
    
    
    46.17
    
    
    
    45.45
    
    
    
    43.32
    
    
    
    46.96Lending commitments
    
    $
    131,267
    
    
    
    128,440
    
    
    
    124,322
    
    
    
    119,200
    
    
    
    108,562Average loans, net
    
    
    297,295
    
    
    
    294,369
    
    
    
    291,251
    
    
    
    289,589
    
    
    
    162,501Average core deposits
    
    $
    290,693
    
    
    
    290,970
    
    
    
    284,402
    
    
    
    280,465
    
    
    
    208,705FTE employees
    
    
    56,605
    
    
    
    57,642
    
    
    
    56,758
    
    
    
    56,076
    
    
    
    44,843COMMERCIALNet interest income (c)
    
    $
    901
    
    
    
    865
    
    
    
    838
    
    
    
    857
    
    
    
    839Fee and other income
    
    
    130
    
    
    
    128
    
    
    
    123
    
    
    
    121
    
    
    
    117Intersegment revenue
    
    
    30
    
    
    
    27
    
    
    
    24
    
    
    
    29
    
    
    
    24Total revenue (c)
    
    
    1,061
    
    
    
    1,020
    
    
    
    985
    
    
    
    1,007
    
    
    
    980Provision for credit losses
    
    
    121
    
    
    
    96
    
    
    
    97
    
    
    
    92
    
    
    
    74Noninterest expense
    
    
    350
    
    
    
    363
    
    
    
    367
    
    
    
    358
    
    
    
    335Income taxes
    
    
    205
    
    
    
    195
    
    
    
    179
    
    
    
    193
    
    
    
    198Tax-equivalent adjustment
    
    
    11
    
    
    
    10
    
    
    
    11
    
    
    
    10
    
    
    
    10Segment earnings
    
    $
    374
    
    
    
    356
    
    
    
    331
    
    
    
    354
    
    
    
    363Economic profit
    
    $
    251
    
    
    
    224
    
    
    
    207
    
    
    
    232
    
    
    
    233Risk adjusted return on capital
    
    
    34.22
    %
    
    
    32.29
    
    
    
    31.85
    
    
    
    34.22
    
    
    
    34.96Economic capital, average
    
    $
    4,290
    
    
    
    4,203
    
    
    
    4,035
    
    
    
    3,955
    
    
    
    3,860Cash overhead efficiency ratio (c)
    
    
    33.02
    %
    
    
    35.59
    
    
    
    37.26
    
    
    
    35.53
    
    
    
    34.14Average loans, net
    
    $
    80,248
    
    
    
    78,274
    
    
    
    76,007
    
    
    
    74,114
    
    
    
    72,415Average core deposits
    
    $
    42,525
    
    
    
    42,921
    
    
    
    43,450
    
    
    
    43,817
    
    
    
    42,226RETAIL AND SMALL BUSINESSNet interest income (c)
    
    $
    2,585
    
    
    
    2,532
    
    
    
    2,587
    
    
    
    2,615
    
    
    
    1,690Fee and other income
    
    
    839
    
    
    
    841
    
    
    
    747
    
    
    
    835
    
    
    
    769Intersegment revenue
    
    
    15
    
    
    
    14
    
    
    
    10
    
    
    
    8
    
    
    
    12Total revenue (c)
    
    
    3,439
    
    
    
    3,387
    
    
    
    3,344
    
    
    
    3,458
    
    
    
    2,471Provision for credit losses
    
    
    93
    
    
    
    64
    
    
    
    58
    
    
    
    56
    
    
    
    46Noninterest expense
    
    
    1,665
    
    
    
    1,672
    
    
    
    1,600
    
    
    
    1,577
    
    
    
    1,286Income taxes
    
    
    612
    
    
    
    602
    
    
    
    616
    
    
    
    666
    
    
    
    416Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    1,069
    
    
    
    1,049
    
    
    
    1,070
    
    
    
    1,159
    
    
    
    723Economic profit
    
    $
    871
    
    
    
    836
    
    
    
    860
    
    
    
    949
    
    
    
    637Risk adjusted return on capital
    
    
    58.56
    %
    
    
    57.00
    
    
    
    58.93
    
    
    
    63.37
    
    
    
    88.48Economic capital, average
    
    $
    7,266
    
    
    
    7,299
    
    
    
    7,270
    
    
    
    7,193
    
    
    
    3,261Cash overhead efficiency ratio (c)
    
    
    48.37
    %
    
    
    49.36
    
    
    
    47.87
    
    
    
    45.59
    
    
    
    52.05Average loans, net
    
    $
    217,047
    
    
    
    216,095
    
    
    
    215,244
    
    
    
    215,475
    
    
    
    90,086Average core deposits
    
    $
    248,168
    
    
    
    248,049
    
    
    
    240,952
    
    
    
    236,648
    
    
    
    166,479
 (a) Certain amounts presented in this Table 5 in periods prior to the third quarter of 2007 have
been reclassified to conform to the presentation in the third quarter of 2007.(b) General Bank Combined represents the consolidation of the General Banks Commercial, and
Retail and Small Business lines of business.(c) Tax-equivalent.
 (Continued)
 37




---



##### 



Table 5  BUSINESS SEGMENTS
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterWEALTH MANAGEMENTNet interest income (a)
    
    $
    183
    
    
    
    181
    
    
    
    179
    
    
    
    178
    
    
    
    176Fee and other income
    
    
    185
    
    
    
    202
    
    
    
    196
    
    
    
    200
    
    
    
    197Intersegment revenue
    
    
    4
    
    
    
    3
    
    
    
    3
    
    
    
    4
    
    
    
    3Total revenue (a)
    
    
    372
    
    
    
    386
    
    
    
    378
    
    
    
    382
    
    
    
    376Provision for credit losses
    
    
    6
    
    
    
    2
    
    
    
    1
    
    
    
    -
    
    
    
    2Noninterest expense
    
    
    252
    
    
    
    255
    
    
    
    258
    
    
    
    252
    
    
    
    249Income taxes
    
    
    42
    
    
    
    47
    
    
    
    43
    
    
    
    47
    
    
    
    46Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    72
    
    
    
    82
    
    
    
    76
    
    
    
    83
    
    
    
    79Economic profit
    
    $
    53
    
    
    
    60
    
    
    
    55
    
    
    
    61
    
    
    
    58Risk adjusted return on capital
    
    
    42.88
    %
    
    
    48.28
    
    
    
    46.11
    
    
    
    49.01
    
    
    
    48.17Economic capital, average
    
    $
    650
    
    
    
    654
    
    
    
    630
    
    
    
    633
    
    
    
    626Cash overhead efficiency ratio (a)
    
    
    67.87
    %
    
    
    65.89
    
    
    
    68.19
    
    
    
    65.92
    
    
    
    66.34Lending commitments
    
    $
    7,007
    
    
    
    6,892
    
    
    
    6,686
    
    
    
    6,504
    
    
    
    6,481Average loans, net
    
    
    21,492
    
    
    
    21,047
    
    
    
    20,310
    
    
    
    19,729
    
    
    
    19,237Average core deposits
    
    $
    16,638
    
    
    
    17,028
    
    
    
    17,018
    
    
    
    16,999
    
    
    
    16,312FTE employees
    
    
    4,547
    
    
    
    4,580
    
    
    
    4,589
    
    
    
    4,675
    
    
    
    4,716
 (a)
    
    Tax-equivalent.
 (Continued)
 38




---



##### 



Table 5  BUSINESS SEGMENTS
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCORPORATE AND INVESTMENT
BANK COMBINED (a)Net interest income (b)
    
    $
    837
    
    
    
    773
    
    
    
    715
    
    
    
    775
    
    
    
    709Fee and other income
    
    
    21
    
    
    
    1,505
    
    
    
    1,095
    
    
    
    1,363
    
    
    
    998Intersegment revenue
    
    
    (39
    )
    
    
    (35
    )
    
    
    (30
    )
    
    
    (37
    )
    
    
    (31
    )Total revenue (b)
    
    
    819
    
    
    
    2,243
    
    
    
    1,780
    
    
    
    2,101
    
    
    
    1,676Provision for credit losses
    
    
    1
    
    
    
    (2
    )
    
    
    6
    
    
    
    3
    
    
    
    (4
    )Noninterest expense
    
    
    655
    
    
    
    1,068
    
    
    
    949
    
    
    
    1,043
    
    
    
    840Income taxes
    
    
    49
    
    
    
    420
    
    
    
    291
    
    
    
    374
    
    
    
    298Tax-equivalent adjustment
    
    
    9
    
    
    
    11
    
    
    
    10
    
    
    
    11
    
    
    
    9Segment earnings
    
    $
    105
    
    
    
    746
    
    
    
    524
    
    
    
    670
    
    
    
    533Economic profit (loss)
    
    $
    (224
    )
    
    
    456
    
    
    
    258
    
    
    
    396
    
    
    
    270Risk adjusted return on capital
    
    
    2.03
    %
    
    
    31.48
    
    
    
    23.45
    
    
    
    29.79
    
    
    
    24.50Economic capital, average
    
    $
    9,897
    
    
    
    8,927
    
    
    
    8,395
    
    
    
    8,377
    
    
    
    7,921Cash overhead efficiency ratio (b)
    
    
    79.75
    %
    
    
    47.64
    
    
    
    53.33
    
    
    
    49.65
    
    
    
    50.09Lending commitments
    
    $
    138,239
    
    
    
    132,768
    
    
    
    127,100
    
    
    
    127,401
    
    
    
    121,963Average loans, net
    
    
    82,942
    
    
    
    76,718
    
    
    
    73,350
    
    
    
    72,689
    
    
    
    70,901Average core deposits
    
    $
    37,040
    
    
    
    36,520
    
    
    
    34,035
    
    
    
    32,340
    
    
    
    31,576FTE employees
    
    
    6,293
    
    
    
    6,434
    
    
    
    6,220
    
    
    
    6,305
    
    
    
    6,317CORPORATE LENDINGNet interest income (b)
    
    $
    430
    
    
    
    416
    
    
    
    411
    
    
    
    411
    
    
    
    404Fee and other income
    
    
    140
    
    
    
    143
    
    
    
    128
    
    
    
    131
    
    
    
    120Intersegment revenue
    
    
    17
    
    
    
    20
    
    
    
    18
    
    
    
    25
    
    
    
    19Total revenue (b)
    
    
    587
    
    
    
    579
    
    
    
    557
    
    
    
    567
    
    
    
    543Provision for credit losses
    
    
    2
    
    
    
    (1
    )
    
    
    5
    
    
    
    (2
    )
    
    
    (4
    )Noninterest expense
    
    
    146
    
    
    
    157
    
    
    
    160
    
    
    
    157
    
    
    
    134Income taxes
    
    
    159
    
    
    
    154
    
    
    
    143
    
    
    
    151
    
    
    
    151Tax-equivalent adjustment
    
    
    1
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    279
    
    
    
    269
    
    
    
    249
    
    
    
    261
    
    
    
    262Economic profit
    
    $
    84
    
    
    
    95
    
    
    
    88
    
    
    
    91
    
    
    
    92Risk adjusted return on capital
    
    
    17.05
    %
    
    
    18.68
    
    
    
    18.46
    
    
    
    18.33
    
    
    
    18.68Economic capital, average
    
    $
    5,486
    
    
    
    4,972
    
    
    
    4,791
    
    
    
    4,894
    
    
    
    4,782Cash overhead efficiency ratio (b)
    
    
    24.94
    %
    
    
    27.03
    
    
    
    28.73
    
    
    
    27.64
    
    
    
    24.83Average loans, net
    
    $
    61,774
    
    
    
    58,173
    
    
    
    57,564
    
    
    
    57,203
    
    
    
    56,973Average core deposits
    
    $
    5,123
    
    
    
    5,073
    
    
    
    5,043
    
    
    
    5,304
    
    
    
    5,307
 (a) Corporate and Investment Bank Combined represents the consolidation of the Corporate and
Investment Banks Corporate Lending, Treasury and International Trade Finance, and Investment
Banking lines of business.(b) Tax-equivalent.
 (Continued)
 39




---



##### 



Table 5  BUSINESS SEGMENTS
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterTREASURY AND INTERNATIONAL TRADE
FINANCENet interest income (b)
    
    $
    105
    
    
    
    99
    
    
    
    91
    
    
    
    105
    
    
    
    98Fee and other income
    
    
    202
    
    
    
    196
    
    
    
    194
    
    
    
    193
    
    
    
    199Intersegment revenue
    
    
    (32
    )
    
    
    (34
    )
    
    
    (33
    )
    
    
    (33
    )
    
    
    (33
    )Total revenue (b)
    
    
    275
    
    
    
    261
    
    
    
    252
    
    
    
    265
    
    
    
    264Provision for credit losses
    
    
    (1
    )
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Noninterest expense
    
    
    176
    
    
    
    179
    
    
    
    179
    
    
    
    175
    
    
    
    164Income taxes
    
    
    37
    
    
    
    30
    
    
    
    26
    
    
    
    34
    
    
    
    35Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    63
    
    
    
    52
    
    
    
    47
    
    
    
    56
    
    
    
    65Economic profit
    
    $
    49
    
    
    
    39
    
    
    
    34
    
    
    
    43
    
    
    
    51Risk adjusted return on capital
    
    
    56.50
    %
    
    
    48.73
    
    
    
    43.73
    
    
    
    50.90
    
    
    
    59.93Economic capital, average
    
    $
    426
    
    
    
    417
    
    
    
    418
    
    
    
    428
    
    
    
    413Cash overhead efficiency ratio (b)
    
    
    64.16
    %
    
    
    68.43
    
    
    
    70.90
    
    
    
    66.27
    
    
    
    61.72Average loans, net
    
    $
    10,784
    
    
    
    9,520
    
    
    
    8,261
    
    
    
    8,061
    
    
    
    7,791Average core deposits
    
    $
    21,066
    
    
    
    20,911
    
    
    
    19,783
    
    
    
    18,034
    
    
    
    17,735INVESTMENT BANKINGNet interest income (b)
    
    $
    302
    
    
    
    258
    
    
    
    213
    
    
    
    259
    
    
    
    207Fee and other income
    
    
    (321
    )
    
    
    1,166
    
    
    
    773
    
    
    
    1,039
    
    
    
    679Intersegment revenue
    
    
    (24
    )
    
    
    (21
    )
    
    
    (15
    )
    
    
    (29
    )
    
    
    (17
    )Total revenue (b)
    
    
    (43
    )
    
    
    1,403
    
    
    
    971
    
    
    
    1,269
    
    
    
    869Provision for credit losses
    
    
    -
    
    
    
    (1
    )
    
    
    1
    
    
    
    5
    
    
    
    -Noninterest expense
    
    
    333
    
    
    
    732
    
    
    
    610
    
    
    
    711
    
    
    
    542Income taxes (benefits)
    
    
    (147
    )
    
    
    236
    
    
    
    122
    
    
    
    189
    
    
    
    112Tax-equivalent adjustment
    
    
    8
    
    
    
    11
    
    
    
    10
    
    
    
    11
    
    
    
    9Segment earnings (loss)
    
    $
    (237
    )
    
    
    425
    
    
    
    228
    
    
    
    353
    
    
    
    206Economic profit (loss)
    
    $
    (357
    )
    
    
    322
    
    
    
    136
    
    
    
    262
    
    
    
    127Risk adjusted return on capital
    
    
    (24.47
    )%
    
    
    47.42
    
    
    
    28.31
    
    
    
    45.19
    
    
    
    29.35Economic capital, average
    
    $
    3,985
    
    
    
    3,538
    
    
    
    3,186
    
    
    
    3,055
    
    
    
    2,726Cash overhead efficiency ratio (b)
    
    
    (826.42
    )%
    
    
    52.28
    
    
    
    62.91
    
    
    
    56.03
    
    
    
    62.32Average loans, net
    
    $
    10,384
    
    
    
    9,025
    
    
    
    7,525
    
    
    
    7,425
    
    
    
    6,137Average core deposits
    
    $
    10,851
    
    
    
    10,536
    
    
    
    9,209
    
    
    
    9,002
    
    
    
    8,534
 (Continued)
 40




---



##### 



Table 5  BUSINESS SEGMENTS
 
 2007
    
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCAPITAL MANAGEMENT
COMBINED (a)Net interest income (b)
    
    $
    271
    
    
    
    264
    
    
    
    262
    
    
    
    258
    
    
    
    253Fee and other income
    
    
    1,408
    
    
    
    1,502
    
    
    
    1,444
    
    
    
    1,340
    
    
    
    1,217Intersegment revenue
    
    
    (8
    )
    
    
    (11
    )
    
    
    (8
    )
    
    
    (8
    )
    
    
    (8
    )Total revenue (b)
    
    
    1,671
    
    
    
    1,755
    
    
    
    1,698
    
    
    
    1,590
    
    
    
    1,462Provision for credit losses
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Noninterest expense
    
    
    1,238
    
    
    
    1,296
    
    
    
    1,236
    
    
    
    1,200
    
    
    
    1,097Income taxes
    
    
    158
    
    
    
    168
    
    
    
    168
    
    
    
    143
    
    
    
    133Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    275
    
    
    
    291
    
    
    
    294
    
    
    
    247
    
    
    
    232Economic profit
    
    $
    232
    
    
    
    247
    
    
    
    250
    
    
    
    205
    
    
    
    193Risk adjusted return on
capital
    
    
    69.89
    %
    
    
    72.32
    
    
    
    74.68
    
    
    
    65.02
    
    
    
    65.28Economic capital, average
    
    $
    1,560
    
    
    
    1,615
    
    
    
    1,594
    
    
    
    1,507
    
    
    
    1,412Cash overhead efficiency
ratio (b)
    
    
    74.08
    %
    
    
    73.85
    
    
    
    72.77
    
    
    
    75.53
    
    
    
    74.98Lending commitments
    
    $
    980
    
    
    
    1,072
    
    
    
    892
    
    
    
    803
    
    
    
    831Average loans, net
    
    
    2,142
    
    
    
    1,663
    
    
    
    1,554
    
    
    
    1,419
    
    
    
    1,235Average core deposits
    
    $
    31,489
    
    
    
    31,221
    
    
    
    31,683
    
    
    
    30,100
    
    
    
    30,114FTE employees
    
    
    17,916
    
    
    
    17,916
    
    
    
    17,713
    
    
    
    17,523
    
    
    
    17,297Assets under management
    
    $
    285,423
    
    
    
    281,462
    
    
    
    314,551
    
    
    
    278,854
    
    
    
    252,761ASSET MANAGEMENTNet interest income (b)
    
    $
    7
    
    
    
    5
    
    
    
    4
    
    
    
    2
    
    
    
    2Fee and other income
    
    
    244
    
    
    
    312
    
    
    
    272
    
    
    
    244
    
    
    
    228Intersegment revenue
    
    
    (1
    )
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Total revenue (b)
    
    
    250
    
    
    
    317
    
    
    
    276
    
    
    
    246
    
    
    
    230Provision for credit losses
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Noninterest expense
    
    
    217
    
    
    
    235
    
    
    
    231
    
    
    
    208
    
    
    
    197Income taxes
    
    
    12
    
    
    
    29
    
    
    
    17
    
    
    
    14
    
    
    
    12Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    21
    
    
    
    53
    
    
    
    28
    
    
    
    24
    
    
    
    21Economic profit
    
    $
    14
    
    
    
    46
    
    
    
    21
    
    
    
    17
    
    
    
    15Risk adjusted return on
capital
    
    
    35.62
    %
    
    
    81.01
    
    
    
    45.49
    
    
    
    42.85
    
    
    
    40.27Economic capital, average
    
    $
    232
    
    
    
    262
    
    
    
    249
    
    
    
    220
    
    
    
    208Cash overhead efficiency
ratio (b)
    
    
    86.87
    %
    
    
    73.77
    
    
    
    84.03
    
    
    
    84.80
    
    
    
    85.53Average loans, net
    
    $
    36
    
    
    
    17
    
    
    
    33
    
    
    
    20
    
    
    
    25Average core deposits
    
    $
    418
    
    
    
    364
    
    
    
    278
    
    
    
    251
    
    
    
    248
 (a) Capital Management Combined represents the consolidation of Capital Managements Asset
Management, Retail Brokerage Services, and Other, which primarily serves to eliminate intersegment
revenue.(b) Tax-equivalent.
 (Continued)
 41




---



##### 



Table 5
BUSINESS SEGMENTS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterRETAIL BROKERAGE SERVICESNet interest income (b)
    
    $
    264
    
    
    
    258
    
    
    
    258
    
    
    
    256
    
    
    
    251Fee and other income
    
    
    1,166
    
    
    
    1,193
    
    
    
    1,174
    
    
    
    1,098
    
    
    
    991Intersegment revenue
    
    
    (7
    )
    
    
    (11
    )
    
    
    (8
    )
    
    
    (8
    )
    
    
    (7
    )Total revenue (b)
    
    
    1,423
    
    
    
    1,440
    
    
    
    1,424
    
    
    
    1,346
    
    
    
    1,235Provision for credit losses
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Noninterest expense
    
    
    1,025
    
    
    
    1,065
    
    
    
    1,010
    
    
    
    996
    
    
    
    904Income taxes
    
    
    146
    
    
    
    138
    
    
    
    150
    
    
    
    128
    
    
    
    122Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    252
    
    
    
    237
    
    
    
    264
    
    
    
    222
    
    
    
    209Economic profit
    
    $
    216
    
    
    
    200
    
    
    
    227
    
    
    
    187
    
    
    
    176Risk adjusted return on capital
    
    
    75.49
    %
    
    
    70.25
    
    
    
    79.52
    
    
    
    68.32
    
    
    
    69.13Economic capital, average
    
    $
    1,328
    
    
    
    1,353
    
    
    
    1,345
    
    
    
    1,287
    
    
    
    1,204Cash overhead efficiency ratio (b)
    
    
    72.01
    %
    
    
    74.06
    
    
    
    70.84
    
    
    
    74.05
    
    
    
    73.24Average loans, net
    
    $
    2,106
    
    
    
    1,646
    
    
    
    1,521
    
    
    
    1,399
    
    
    
    1,210Average core deposits
    
    $
    31,071
    
    
    
    30,857
    
    
    
    31,405
    
    
    
    29,849
    
    
    
    29,866OTHERNet interest income (b)
    
    $
    -
    
    
    
    1
    
    
    
    -
    
    
    
    -
    
    
    
    -Fee and other income
    
    
    (2
    )
    
    
    (3
    )
    
    
    (2
    )
    
    
    (2
    )
    
    
    (2
    )Intersegment revenue
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    (1
    )Total revenue (b)
    
    
    (2
    )
    
    
    (2
    )
    
    
    (2
    )
    
    
    (2
    )
    
    
    (3
    )Provision for credit losses
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Noninterest expense
    
    
    (4
    )
    
    
    (4
    )
    
    
    (5
    )
    
    
    (4
    )
    
    
    (4
    )Income taxes
    
    
    -
    
    
    
    1
    
    
    
    1
    
    
    
    1
    
    
    
    (1
    )Tax-equivalent adjustment
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Segment earnings
    
    $
    2
    
    
    
    1
    
    
    
    2
    
    
    
    1
    
    
    
    2Economic profit
    
    $
    2
    
    
    
    1
    
    
    
    2
    
    
    
    1
    
    
    
    2Risk adjusted return on capital
    
    
    -
    %
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Economic capital, average
    
    $
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Cash overhead efficiency ratio (b)
    
    
    -
    %
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Average loans, net
    
    $
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Average core deposits
    
    $
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
 (Continued)
 42




---



##### 



Table 5
BUSINESS SEGMENTS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(Dollars in millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterPARENTNet interest income (a)
    
    $
    (193
    )
    
    
    (128
    )
    
    
    (44
    )
    
    
    (71
    )
    
    
    (89
    )Fee and other income
    
    
    178
    
    
    
    28
    
    
    
    96
    
    
    
    121
    
    
    
    167Intersegment revenue
    
    
    (2
    )
    
    
    2
    
    
    
    1
    
    
    
    4
    
    
    
    -Total revenue (a)
    
    
    (17
    )
    
    
    (98
    )
    
    
    53
    
    
    
    54
    
    
    
    78Provision for credit losses
    
    
    187
    
    
    
    19
    
    
    
    15
    
    
    
    55
    
    
    
    (10
    )Noninterest expense
    
    
    293
    
    
    
    170
    
    
    
    168
    
    
    
    452
    
    
    
    200Minority interest
    
    
    189
    
    
    
    139
    
    
    
    136
    
    
    
    124
    
    
    
    104Income tax benefits
    
    
    (443
    )
    
    
    (280
    )
    
    
    (295
    )
    
    
    (362
    )
    
    
    (206
    )Tax-equivalent adjustment
    
    
    13
    
    
    
    17
    
    
    
    16
    
    
    
    14
    
    
    
    18Segment earnings (loss)
    
    $
    (256
    )
    
    
    (163
    )
    
    
    13
    
    
    
    (229
    )
    
    
    (28
    )Economic profit
    
    $
    (138
    )
    
    
    (155
    )
    
    
    29
    
    
    
    (200
    )
    
    
    (63
    )Risk adjusted return on capital
    
    
    (13.86
    )%
    
    
    (16.46
    )
    
    
    15.95
    
    
    
    (16.36
    )
    
    
    2.53Economic capital, average
    
    $
    2,201
    
    
    
    2,262
    
    
    
    2,404
    
    
    
    2,912
    
    
    
    2,955Cash overhead efficiency ratio (a)
    
    
    -
    %
    
    
    (66.36
    )
    
    
    94.29
    
    
    
    583.29
    
    
    
    141.26Lending commitments
    
    $
    529
    
    
    
    569
    
    
    
    503
    
    
    
    507
    
    
    
    457Average loans, net
    
    
    25,930
    
    
    
    27,460
    
    
    
    28,796
    
    
    
    29,135
    
    
    
    27,236Average core deposits
    
    $
    3,149
    
    
    
    2,757
    
    
    
    2,132
    
    
    
    2,523
    
    
    
    4,520FTE employees
    
    
    24,363
    
    
    
    23,921
    
    
    
    25,089
    
    
    
    24,881
    
    
    
    23,887
  (Continued)
 43




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Three Months Ended September 30, 2007Net Merger-Corporate
    
    
    
    
    
    
    

    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (b)
    
    
    TotalCONSOLIDATEDNet interest income (a)
    
    $
    3,486
    
    
    
    183
    
    
    
    837
    
    
    
    271
    
    
    
    (193
    )
    
    
    (33
    )
    
    
    4,551Fee and other income
    
    
    969
    
    
    
    185
    
    
    
    21
    
    
    
    1,408
    
    
    
    178
    
    
    
    -
    
    
    
    2,761Intersegment revenue
    
    
    45
    
    
    
    4
    
    
    
    (39
    )
    
    
    (8
    )
    
    
    (2
    )
    
    
    -
    
    
    
    -Total revenue (a)
    
    
    4,500
    
    
    
    372
    
    
    
    819
    
    
    
    1,671
    
    
    
    (17
    )
    
    
    (33
    )
    
    
    7,312Provision for credit losses
    
    
    214
    
    
    
    6
    
    
    
    1
    
    
    
    -
    
    
    
    187
    
    
    
    -
    
    
    
    408Noninterest expense
    
    
    2,015
    
    
    
    252
    
    
    
    655
    
    
    
    1,238
    
    
    
    293
    
    
    
    36
    
    
    
    4,489Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    189
    
    
    
    -
    
    
    
    189Income taxes (benefits)
    
    
    817
    
    
    
    42
    
    
    
    49
    
    
    
    158
    
    
    
    (443
    )
    
    
    (15
    )
    
    
    608Tax-equivalent adjustment
    
    
    11
    
    
    
    -
    
    
    
    9
    
    
    
    -
    
    
    
    13
    
    
    
    (33
    )
    
    
    -Net income (loss)
    
    $
    1,443
    
    
    
    72
    
    
    
    105
    
    
    
    275
    
    
    
    (256
    )
    
    
    (21
    )
    
    
    1,618Economic profit
    
    $
    1,122
    
    
    
    53
    
    
    
    (224
    )
    
    
    232
    
    
    
    (138
    )
    
    
    -
    
    
    
    1,045Risk adjusted return on capital
    
    
    49.53
    %
    
    
    42.88
    
    
    
    2.03
    
    
    
    69.89
    
    
    
    (13.86
    )
    
    
    -
    
    
    
    27.02Economic capital, average
    
    $
    11,556
    
    
    
    650
    
    
    
    9,897
    
    
    
    1,560
    
    
    
    2,201
    
    
    
    -
    
    
    
    25,864Cash overhead efficiency ratio (a)
    
    
    44.75
    %
    
    
    67.87
    
    
    
    79.75
    
    
    
    74.08
    
    
    
    -
    
    
    
    -
    
    
    
    59.39Lending commitments
    
    $
    131,267
    
    
    
    7,007
    
    
    
    138,239
    
    
    
    980
    
    
    
    529
    
    
    
    -
    
    
    
    278,022Average loans, net
    
    
    297,295
    
    
    
    21,492
    
    
    
    82,942
    
    
    
    2,142
    
    
    
    25,930
    
    
    
    -
    
    
    
    429,801Average core deposits
    
    $
    290,693
    
    
    
    16,638
    
    
    
    37,040
    
    
    
    31,489
    
    
    
    3,149
    
    
    
    -
    
    
    
    379,009FTE employees
    
    
    56,605
    
    
    
    4,547
    
    
    
    6,293
    
    
    
    17,916
    
    
    
    24,363
    
    
    
    -
    
    
    
    109,724
 Three Months Ended September 30, 2006Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (b)
    
    
    TotalCONSOLIDATEDNet interest income (a)
    
    $
    2,529
    
    
    
    176
    
    
    
    709
    
    
    
    253
    
    
    
    (89
    )
    
    
    (37
    )
    
    
    3,541Fee and other income
    
    
    886
    
    
    
    197
    
    
    
    998
    
    
    
    1,217
    
    
    
    167
    
    
    
     -
    
    
    
    3,465Intersegment revenue
    
    
    36
    
    
    
    3
    
    
    
    (31
    )
    
    
    (8
    )
    
    
     -
    
    
    
     -
    
    
    
     -Total revenue (a)
    
    
    3,451
    
    
    
    376
    
    
    
    1,676
    
    
    
    1,462
    
    
    
    78
    
    
    
    (37
    )
    
    
    7,006Provision for credit losses
    
    
    120
    
    
    
    2
    
    
    
    (4
    )
    
    
     -
    
    
    
    (10
    )
    
    
     -
    
    
    
    108Noninterest expense
    
    
    1,621
    
    
    
    249
    
    
    
    840
    
    
    
    1,097
    
    
    
    200
    
    
    
    38
    
    
    
    4,045Minority interest
    
    
     -
    
    
    
     -
    
    
    
     -
    
    
    
     -
    
    
    
    104
    
    
    
     -
    
    
    
    104Income taxes (benefits)
    
    
    614
    
    
    
    46
    
    
    
    298
    
    
    
    133
    
    
    
    (206
    )
    
    
    (13
    )
    
    
    872Tax-equivalent adjustment
    
    
    10
    
    
    
     -
    
    
    
    9
    
    
    
     -
    
    
    
    18
    
    
    
    (37
    )
    
    
     -Net income (loss)
    
    $
    1,086
    
    
    
    79
    
    
    
    533
    
    
    
    232
    
    
    
    (28
    )
    
    
    (25
    )
    
    
    1,877Economic profit
    
    $
    870
    
    
    
    58
    
    
    
    270
    
    
    
    193
    
    
    
    (63
    )
    
    
     -
    
    
    
    1,328Risk adjusted return on capital
    
    
    59.47
    %
    
    
    48.17
    
    
    
    24.50
    
    
    
    65.28
    
    
    
    2.53
    
    
    
     -
    
    
    
    37.30Economic capital, average
    
    $
    7,121
    
    
    
    626
    
    
    
    7,921
    
    
    
    1,412
    
    
    
    2,955
    
    
    
     -
    
    
    
    20,035Cash overhead efficiency ratio (a)
    
    
    46.96
    %
    
    
    66.34
    
    
    
    50.09
    
    
    
    74.98
    
    
    
    141.26
    
    
    
     -
    
    
    
    55.60Lending commitments
    
    $
    108,562
    
    
    
    6,481
    
    
    
    121,963
    
    
    
    831
    
    
    
    457
    
    
    
     -
    
    
    
    238,294Average loans, net
    
    
    162,501
    
    
    
    19,237
    
    
    
    70,901
    
    
    
    1,235
    
    
    
    27,236
    
    
    
     -
    
    
    
    281,110Average core deposits
    
    $
    208,705
    
    
    
    16,312
    
    
    
    31,576
    
    
    
    30,114
    
    
    
    4,520
    
    
    
     -
    
    
    
    291,227FTE employees
    
    
    44,843
    
    
    
    4,716
    
    
    
    6,317
    
    
    
    17,297
    
    
    
    23,887
    
    
    
     -
    
    
    
    97,060
 
 (Continued)
 44




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006GENERAL BANK COMBINED (a)Net interest income (b)
    
    $
    10,308
    
    
    
    7,288Fee and other income
    
    
    2,808
    
    
    
    2,581Intersegment revenue
    
    
    120
    
    
    
    103Total revenue (b)
    
    
    13,236
    
    
    
    9,972Provision for credit losses
    
    
    529
    
    
    
    278Noninterest expense
    
    
    6,017
    
    
    
    4,893Income taxes
    
    
    2,409
    
    
    
    1,721Tax-equivalent adjustment
    
    
    32
    
    
    
    31Segment earnings
    
    $
    4,249
    
    
    
    3,049Economic profit
    
    $
    3,249
    
    
    
    2,411Risk adjusted return on capital
    
    
    48.92
    %
    
    
    58.66Economic capital, average
    
    $
    11,455
    
    
    
    6,762Cash overhead efficiency ratio (b)
    
    
    45.45
    %
    
    
    49.07Lending commitments
    
    $
    131,267
    
    
    
    108,562Average loans, net
    
    
    294,327
    
    
    
    155,931Average core deposits
    
    $
    288,711
    
    
    
    206,490FTE employees
    
    
    56,605
    
    
    
    44,843COMMERCIALNet interest income (b)
    
    $
    2,604
    
    
    
    2,291Fee and other income
    
    
    381
    
    
    
    339Intersegment revenue
    
    
    81
    
    
    
    68Total revenue (b)
    
    
    3,066
    
    
    
    2,698Provision for credit losses
    
    
    314
    
    
    
    154Noninterest expense
    
    
    1,080
    
    
    
    997Income taxes
    
    
    579
    
    
    
    534Tax-equivalent adjustment
    
    
    32
    
    
    
    31Segment earnings
    
    $
    1,061
    
    
    
    982Economic profit
    
    $
    682
    
    
    
    604Risk adjusted return on capital
    
    
    32.82
    %
    
    
    34.03Economic capital, average
    
    $
    4,177
    
    
    
    3,508Cash overhead efficiency ratio (b)
    
    
    35.24
    %
    
    
    36.95Average loans, net
    
    $
    78,192
    
    
    
    67,630Average core deposits
    
    $
    42,962
    
    
    
    42,251RETAIL AND SMALL BUSINESSNet interest income (b)
    
    $
    7,704
    
    
    
    4,997Fee and other income
    
    
    2,427
    
    
    
    2,242Intersegment revenue
    
    
    39
    
    
    
    35Total revenue (b)
    
    
    10,170
    
    
    
    7,274Provision for credit losses
    
    
    215
    
    
    
    124Noninterest expense
    
    
    4,937
    
    
    
    3,896Income taxes
    
    
    1,830
    
    
    
    1,187Tax-equivalent adjustment
    
    
    -
    
    
    
    -Segment earnings
    
    $
    3,188
    
    
    
    2,067Economic profit
    
    $
    2,567
    
    
    
    1,807Risk adjusted return on capital
    
    
    58.16
    %
    
    
    85.22Economic capital, average
    
    $
    7,278
    
    
    
    3,254Cash overhead efficiency ratio (b)
    
    
    48.53
    %
    
    
    53.56Average loans, net
    
    $
    216,135
    
    
    
    88,301Average core deposits
    
    $
    245,749
    
    
    
    164,239
 
 (Continued)
 45




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006WEALTH MANAGEMENTNet interest income (a)
    
    $
    543
    
    
    
    527Fee and other income
    
    
    583
    
    
    
    581Intersegment revenue
    
    
    10
    
    
    
    7Total revenue (a)
    
    
    1,136
    
    
    
    1,115Provision for credit losses
    
    
    9
    
    
    
    4Noninterest expense
    
    
    765
    
    
    
    775Income taxes
    
    
    132
    
    
    
    123Tax-equivalent adjustment
    
    
    -
    
    
    
    -Segment earnings
    
    $
    230
    
    
    
    213Economic profit
    
    $
    168
    
    
    
    152Risk adjusted return on capital
    
    
    45.74
    %
    
    
    44.02Economic capital, average
    
    $
    645
    
    
    
    616Cash overhead efficiency ratio (a)
    
    
    67.31
    %
    
    
    69.52Lending commitments
    
    $
    7,007
    
    
    
    6,481Average loans, net
    
    
    20,954
    
    
    
    18,569Average core deposits
    
    $
    16,893
    
    
    
    16,575FTE employees
    
    
    4,547
    
    
    
    4,716
  (Continued)
 46




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006CORPORATE AND INVESTMENT
BANK COMBINED (a)Net interest income (b)
    
    $
    2,325
    
    
    
    2,134Fee and other income
    
    
    2,621
    
    
    
    3,470Intersegment revenue
    
    
    (104
    )
    
    
    (89
    )Total revenue (b)
    
    
    4,842
    
    
    
    5,515Provision for credit losses
    
    
    5
    
    
    
    (37
    )Noninterest expense
    
    
    2,672
    
    
    
    2,712Income taxes
    
    
    760
    
    
    
    996Tax-equivalent adjustment
    
    
    30
    
    
    
    41Segment earnings
    
    $
    1,375
    
    
    
    1,803Economic profit
    
    $
    490
    
    
    
    1,035Risk adjusted return on capital
    
    
    18.21
    %
    
    
    29.23Economic capital, average
    
    $
    9,079
    
    
    
    7,589Cash overhead efficiency ratio (b)
    
    
    55.17
    %
    
    
    49.17Lending commitments
    
    $
    138,239
    
    
    
    121,963Average loans, net
    
    
    77,705
    
    
    
    68,268Average core deposits
    
    $
    35,876
    
    
    
    31,370FTE employees
    
    
    6,293
    
    
    
    6,317CORPORATE LENDINGNet interest income (b)
    
    $
    1,257
    
    
    
    1,206Fee and other income
    
    
    411
    
    
    
    405Intersegment revenue
    
    
    55
    
    
    
    54Total revenue (b)
    
    
    1,723
    
    
    
    1,665Provision for credit losses
    
    
    6
    
    
    
    (37
    )Noninterest expense
    
    
    463
    
    
    
    433Income taxes
    
    
    456
    
    
    
    462Tax-equivalent adjustment
    
    
    1
    
    
    
    1Segment earnings
    
    $
    797
    
    
    
    806Economic profit
    
    $
    267
    
    
    
    307Risk adjusted return on capital
    
    
    18.02
    %
    
    
    19.98Economic capital, average
    
    $
    5,085
    
    
    
    4,574Cash overhead efficiency ratio (b)
    
    
    26.87
    %
    
    
    26.02Average loans, net
    
    $
    59,186
    
    
    
    55,398Average core deposits
    
    $
    5,080
    
    
    
    5,275
 
 (Continued)
 47




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006TREASURY AND INTERNATIONAL TRADE FINANCENet interest income (b)
    
    $
    295
    
    
    
    289Fee and other income
    
    
    592
    
    
    
    591Intersegment revenue
    
    
    (99
    )
    
    
    (95
    )Total revenue (b)
    
    
    788
    
    
    
    785Provision for credit losses
    
    
    (1
    )
    
    
    -Noninterest expense
    
    
    534
    
    
    
    514Income taxes
    
    
    93
    
    
    
    98Tax-equivalent adjustment
    
    
    -
    
    
    
    -Segment earnings
    
    $
    162
    
    
    
    173Economic profit
    
    $
    122
    
    
    
    132Risk adjusted return on capital
    
    
    49.74
    %
    
    
    52.74Economic capital, average
    
    $
    420
    
    
    
    422Cash overhead efficiency ratio (b)
    
    
    67.73
    %
    
    
    65.40Average loans, net
    
    $
    9,531
    
    
    
    7,397Average core deposits
    
    $
    20,591
    
    
    
    17,165INVESTMENT BANKINGNet interest income (b)
    
    $
    773
    
    
    
    639Fee and other income
    
    
    1,618
    
    
    
    2,474Intersegment revenue
    
    
    (60
    )
    
    
    (48
    )Total revenue (b)
    
    
    2,331
    
    
    
    3,065Provision for credit losses
    
    
    -
    
    
    
    -Noninterest expense
    
    
    1,675
    
    
    
    1,765Income taxes
    
    
    211
    
    
    
    436Tax-equivalent adjustment
    
    
    29
    
    
    
    40Segment earnings
    
    $
    416
    
    
    
    824Economic profit
    
    $
    101
    
    
    
    596Risk adjusted return on capital
    
    
    14.78
    %
    
    
    41.71Economic capital, average
    
    $
    3,574
    
    
    
    2,593Cash overhead efficiency ratio (b)
    
    
    71.84
    %
    
    
    57.59Average loans, net
    
    $
    8,988
    
    
    
    5,473Average core deposits
    
    $
    10,205
    
    
    
    8,930
 (Continued)
 48




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006CAPITAL MANAGEMENT COMBINED (a)Net interest income (b)
    
    $
    797
    
    
    
    776Fee and other income
    
    
    4,354
    
    
    
    3,644Intersegment revenue
    
    
    (27
    )
    
    
    (25
    )Total revenue (b)
    
    
    5,124
    
    
    
    4,395Provision for credit losses
    
    
    -
    
    
    
    -Noninterest expense
    
    
    3,770
    
    
    
    3,350Income taxes
    
    
    494
    
    
    
    380Tax-equivalent adjustment
    
    
    -
    
    
    
    1Segment earnings
    
    $
    860
    
    
    
    664Economic profit
    
    $
    729
    
    
    
    546Risk adjusted return on capital
    
    
    72.30
    %
    
    
    62.02Economic capital, average
    
    $
    1,590
    
    
    
    1,431Cash overhead efficiency ratio (b)
    
    
    73.57
    %
    
    
    76.20Lending commitments
    
    $
    980
    
    
    
    831Average loans, net
    
    
    1,789
    
    
    
    1,044Average core deposits
    
    $
    31,463
    
    
    
    31,829FTE employees
    
    
    17,916
    
    
    
    17,297Assets under management
    
    $
    285,423
    
    
    
    252,761ASSET MANAGEMENTNet interest income (b)
    
    $
    16
    
    
    
    6Fee and other income
    
    
    828
    
    
    
    651Intersegment revenue
    
    
    (1
    )
    
    
    (1
    )Total revenue (b)
    
    
    843
    
    
    
    656Provision for credit losses
    
    
    -
    
    
    
    -Noninterest expense
    
    
    683
    
    
    
    563Income taxes
    
    
    58
    
    
    
    34Tax-equivalent adjustment
    
    
    -
    
    
    
    -Segment earnings
    
    $
    102
    
    
    
    59Economic profit
    
    $
    81
    
    
    
    43Risk adjusted return on capital
    
    
    54.91
    %
    
    
    39.51Economic capital, average
    
    $
    248
    
    
    
    201Cash overhead efficiency ratio (b)
    
    
    81.00
    %
    
    
    85.75Average loans, net
    
    $
    29
    
    
    
    22Average core deposits
    
    $
    354
    
    
    
    250
 
 (Continued)
 49




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006RETAIL BROKERAGE SERVICESNet interest income (b)
    
    $
    780
    
    
    
    769Fee and other income
    
    
    3,533
    
    
    
    3,001Intersegment revenue
    
    
    (26
    )
    
    
    (23
    )Total revenue (b)
    
    
    4,287
    
    
    
    3,747Provision for credit losses
    
    
    -
    
    
    
    -Noninterest expense
    
    
    3,100
    
    
    
    2,801Income taxes
    
    
    434
    
    
    
    344Tax-equivalent adjustment
    
    
    -
    
    
    
    1Segment earnings
    
    $
    753
    
    
    
    601Economic profit
    
    $
    643
    
    
    
    499Risk adjusted return on capital
    
    
    75.06
    %
    
    
    65.28Economic capital, average
    
    $
    1,342
    
    
    
    1,230Cash overhead efficiency ratio (b)
    
    
    72.31
    %
    
    
    74.74Average loans, net
    
    $
    1,760
    
    
    
    1,022Average core deposits
    
    $
    31,109
    
    
    
    31,579OTHERNet interest income (b)
    
    $
    1
    
    
    
    1Fee and other income
    
    
    (7
    )
    
    
    (8
    )Intersegment revenue
    
    
    -
    
    
    
    (1
    )Total revenue (b)
    
    
    (6
    )
    
    
    (8
    )Provision for credit losses
    
    
    -
    
    
    
    -Noninterest expense
    
    
    (13
    )
    
    
    (14
    )Income taxes
    
    
    2
    
    
    
    2Tax-equivalent adjustment
    
    
    -
    
    
    
    -Segment earnings
    
    $
    5
    
    
    
    4Economic profit
    
    $
    5
    
    
    
    4Risk adjusted return on capital
    
    
    -
    %
    
    
    -Economic capital, average
    
    $
    -
    
    
    
    -Cash overhead efficiency ratio (b)
    
    
    -
    %
    
    
    -Average loans, net
    
    $
    -
    
    
    
    -Average core deposits
    
    $
    -
    
    
    
    -
 (Continued)
 50




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months EndedSeptember 30,(Dollars in millions)
    
    2007
    
    
    2006PARENTNet interest income (a)
    
    $
    (365
    )
    
    
    67Fee and other income
    
    
    302
    
    
    
    289Intersegment revenue
    
    
    1
    
    
    
    4Total revenue (a)
    
    
    (62
    )
    
    
    360Provision for credit losses
    
    
    221
    
    
    
    (17
    )Noninterest expense
    
    
    631
    
    
    
    685Minority interest
    
    
    464
    
    
    
    288Income tax benefits
    
    
    (1,018
    )
    
    
    (490
    )Tax-equivalent adjustment
    
    
    46
    
    
    
    47Segment loss
    
    $
    (406
    )
    
    
    (153
    )Economic profit
    
    $
    (264
    )
    
    
    (236
    )Risk adjusted return on capital
    
    
    (4.39
    )%
    
    
    0.01Economic capital, average
    
    $
    2,287
    
    
    
    2,861Cash overhead efficiency ratio (a)
    
    
    (499.36
    )%
    
    
    112.21Lending commitments
    
    $
    529
    
    
    
    457Average loans, net
    
    
    27,385
    
    
    
    28,580Average core deposits
    
    $
    2,684
    
    
    
    4,766FTE employees
    
    
    24,363
    
    
    
    23,887
  (Continued)
 51




---



##### 



Table 5
BUSINESS SEGMENTS
 
 Nine Months Ended September 30, 2007Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (b)
    
    
    TotalCONSOLIDATEDNet interest income (a)
    
    $
    10,308
    
    
    
    543
    
    
    
    2,325
    
    
    
    797
    
    
    
    (365
    )
    
    
    (108
    )
    
    
    13,500Fee and other income
    
    
    2,808
    
    
    
    583
    
    
    
    2,621
    
    
    
    4,354
    
    
    
    302
    
    
    
    -
    
    
    
    10,668Intersegment revenue
    
    
    120
    
    
    
    10
    
    
    
    (104
    )
    
    
    (27
    )
    
    
    1
    
    
    
    -
    
    
    
    -Total revenue (a)
    
    
    13,236
    
    
    
    1,136
    
    
    
    4,842
    
    
    
    5,124
    
    
    
    (62
    )
    
    
    (108
    )
    
    
    24,168Provision for credit losses
    
    
    529
    
    
    
    9
    
    
    
    5
    
    
    
    -
    
    
    
    221
    
    
    
    -
    
    
    
    764Noninterest expense
    
    
    6,017
    
    
    
    765
    
    
    
    2,672
    
    
    
    3,770
    
    
    
    631
    
    
    
    78
    
    
    
    13,933Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    464
    
    
    
    -
    
    
    
    464Income taxes (benefits)
    
    
    2,409
    
    
    
    132
    
    
    
    760
    
    
    
    494
    
    
    
    (1,018
    )
    
    
    (31
    )
    
    
    2,746Tax-equivalent adjustment
    
    
    32
    
    
    
    -
    
    
    
    30
    
    
    
    -
    
    
    
    46
    
    
    
    (108
    )
    
    
    -Net income (loss)
    
    $
    4,249
    
    
    
    230
    
    
    
    1,375
    
    
    
    860
    
    
    
    (406
    )
    
    
    (47
    )
    
    
    6,261Economic profit
    
    $
    3,249
    
    
    
    168
    
    
    
    490
    
    
    
    729
    
    
    
    (264
    )
    
    
    -
    
    
    
    4,372Risk adjusted return on capital
    
    
    48.92
    %
    
    
    45.74
    
    
    
    18.21
    
    
    
    72.30
    
    
    
    (4.39
    )
    
    
    -
    
    
    
    34.33Economic capital, average
    
    $
    11,455
    
    
    
    645
    
    
    
    9,079
    
    
    
    1,590
    
    
    
    2,287
    
    
    
    -
    
    
    
    25,056Cash overhead efficiency ratio (a)
    
    
    45.45
    %
    
    
    67.31
    
    
    
    55.17
    
    
    
    73.57
    
    
    
    (499.36
    )
    
    
    -
    
    
    
    55.78Lending commitments
    
    $
    131,267
    
    
    
    7,007
    
    
    
    138,239
    
    
    
    980
    
    
    
    529
    
    
    
    -
    
    
    
    278,022Average loans, net
    
    
    294,327
    
    
    
    20,954
    
    
    
    77,705
    
    
    
    1,789
    
    
    
    27,385
    
    
    
    -
    
    
    
    422,160Average core deposits
    
    $
    288,711
    
    
    
    16,893
    
    
    
    35,876
    
    
    
    31,463
    
    
    
    2,684
    
    
    
    -
    
    
    
    375,627FTE employees
    
    
    56,605
    
    
    
    4,547
    
    
    
    6,293
    
    
    
    17,916
    
    
    
    24,363
    
    
    
    -
    
    
    
    109,724
 Nine Months Ended September 30, 2006Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (b)
    
    
    TotalCONSOLIDATEDNet interest income (a)
    
    $
    7,288
    
    
    
    527
    
    
    
    2,134
    
    
    
    776
    
    
    
    67
    
    
    
    (120
    )
    
    
    10,672Fee and other income
    
    
    2,581
    
    
    
    581
    
    
    
    3,470
    
    
    
    3,644
    
    
    
    289
    
    
    
    -
    
    
    
    10,565Intersegment revenue
    
    
    103
    
    
    
    7
    
    
    
    (89
    )
    
    
    (25
    )
    
    
    4
    
    
    
    -
    
    
    
    -Total revenue (a)
    
    
    9,972
    
    
    
    1,115
    
    
    
    5,515
    
    
    
    4,395
    
    
    
    360
    
    
    
    (120
    )
    
    
    21,237Provision for credit losses
    
    
    278
    
    
    
    4
    
    
    
    (37
    )
    
    
    -
    
    
    
    (17
    )
    
    
    -
    
    
    
    228Noninterest expense
    
    
    4,893
    
    
    
    775
    
    
    
    2,712
    
    
    
    3,350
    
    
    
    685
    
    
    
    130
    
    
    
    12,545Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    288
    
    
    
    1
    
    
    
    289Income taxes (benefits)
    
    
    1,721
    
    
    
    123
    
    
    
    996
    
    
    
    380
    
    
    
    (490
    )
    
    
    (45
    )
    
    
    2,685Tax-equivalent adjustment
    
    
    31
    
    
    
    -
    
    
    
    41
    
    
    
    1
    
    
    
    47
    
    
    
    (120
    )
    
    
    -Net income (loss)
    
    $
    3,049
    
    
    
    213
    
    
    
    1,803
    
    
    
    664
    
    
    
    (153
    )
    
    
    (86
    )
    
    
    5,490Economic profit
    
    $
    2,411
    
    
    
    152
    
    
    
    1,035
    
    
    
    546
    
    
    
    (236
    )
    
    
    -
    
    
    
    3,908Risk adjusted return on capital
    
    
    58.66
    %
    
    
    44.02
    
    
    
    29.23
    
    
    
    62.02
    
    
    
    0.01
    
    
    
    -
    
    
    
    38.13Economic capital, average
    
    $
    6,762
    
    
    
    616
    
    
    
    7,589
    
    
    
    1,431
    
    
    
    2,861
    
    
    
    -
    
    
    
    19,259Cash overhead efficiency ratio (a)
    
    
    49.07
    %
    
    
    69.52
    
    
    
    49.17
    
    
    
    76.20
    
    
    
    112.21
    
    
    
    -
    
    
    
    56.81Lending commitments
    
    $
    108,562
    
    
    
    6,481
    
    
    
    121,963
    
    
    
    831
    
    
    
    457
    
    
    
    -
    
    
    
    238,294Average loans, net
    
    
    155,931
    
    
    
    18,569
    
    
    
    68,268
    
    
    
    1,044
    
    
    
    28,580
    
    
    
    -
    
    
    
    272,392Average core deposits
    
    $
    206,490
    
    
    
    16,575
    
    
    
    31,370
    
    
    
    31,829
    
    
    
    4,766
    
    
    
    -
    
    
    
    291,030FTE employees
    
    
    44,843
    
    
    
    4,716
    
    
    
    6,317
    
    
    
    17,297
    
    
    
    23,887
    
    
    
    -
    
    
    
    97,060
 
 52




---



##### 



Table 6
 
 NET TRADING REVENUE  INVESTMENT BANKING (a)
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterNet interest income (Tax-equivalent)
    
    $
    48
    
    
    
    50
    
    
    
    53
    
    
    
    84
    
    
    
    28Trading accounts profits (losses)
    
    
    (519
    )
    
    
    190
    
    
    
    115
    
    
    
    32
    
    
    
    122Other fee income
    
    
    72
    
    
    
    61
    
    
    
    51
    
    
    
    66
    
    
    
    75Total net trading revenue (Tax-equivalent)
    
    $
    (399
    )
    
    
    301
    
    
    
    219
    
    
    
    182
    
    
    
    225
  Table 7
 
 SELECTED RATIOS
 
 Nine Months EndedSeptember 30,
    
    
    2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third2007
    
    
    2006
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterPERFORMANCE RATIOS (a)Assets to stockholders equity
    
    
    10.19
    X
    
    
    11.02
    
    
    
    10.44
    
    
    
    10.17
    
    
    
    9.97
    
    
    
    10.02
    
    
    
    11.07Return on assets
    
    
    1.18
    %
    
    
    1.36
    
    
    
    0.88
    
    
    
    1.33
    
    
    
    1.35
    
    
    
    1.31
    
    
    
    1.34Return on stockholders equity
    
    
    12.04
    %
    
    
    14.96
    
    
    
    9.19
    
    
    
    13.54
    
    
    
    13.47
    
    
    
    13.09
    
    
    
    14.85DIVIDEND PAYOUT RATIOSCommon shares
    
    
    53.99
    %
    
    
    46.06
    
    
    
    75.29
    
    
    
    45.90
    
    
    
    46.67
    
    
    
    46.67
    
    
    
    47.86
  Table 8
 
 TRADING ACCOUNT ASSETS AND LIABILITIES
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterTRADING ACCOUNT ASSETSU.S. Treasury
    
    $
    993
    
    
    
    2,348
    
    
    
    1,164
    
    
    
    970
    
    
    
    2,145U.S. Government agencies
    
    
    3,104
    
    
    
    2,865
    
    
    
    2,874
    
    
    
    2,459
    
    
    
    2,492State, county and municipal
    
    
    3,844
    
    
    
    3,551
    
    
    
    2,961
    
    
    
    2,193
    
    
    
    1,199Mortgage-backed securities
    
    
    2,332
    
    
    
    1,807
    
    
    
    2,591
    
    
    
    1,816
    
    
    
    1,617Other asset-backed securities
    
    
    11,704
    
    
    
    12,474
    
    
    
    9,445
    
    
    
    8,697
    
    
    
    8,151Corporate bonds and debentures
    
    
    5,379
    
    
    
    5,386
    
    
    
    4,350
    
    
    
    4,320
    
    
    
    4,851Equity securities
    
    
    3,918
    
    
    
    2,973
    
    
    
    3,298
    
    
    
    3,803
    
    
    
    4,654Derivative
financial instruments (a)
    
    
    13,194
    
    
    
    9,707
    
    
    
    7,940
    
    
    
    12,609
    
    
    
    10,735Sundry
    
    
    9,501
    
    
    
    8,858
    
    
    
    13,252
    
    
    
    8,662
    
    
    
    8,060Total trading account assets
    
    $
    53,969
    
    
    
    49,969
    
    
    
    47,875
    
    
    
    45,529
    
    
    
    43,904TRADING ACCOUNT LIABILITIESSecurities sold short
    
    
    7,014
    
    
    
    9,564
    
    
    
    9,391
    
    
    
    8,205
    
    
    
    9,502Derivative
financial instruments (a)
    
    
    10,757
    
    
    
    9,755
    
    
    
    7,900
    
    
    
    10,023
    
    
    
    10,051Total trading account liabilities
    
    $
    17,771
    
    
    
    19,319
    
    
    
    17,291
    
    
    
    18,228
    
    
    
    19,553
  53




---



##### 



Table 9
 
 LOANS  ON-BALANCE SHEET, AND MANAGED AND SERVICING PORTFOLIOS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIALCommercial, financial and agricultural
    
    $
    109,269
    
    
    
    102,397
    
    
    
    99,687
    
    
    
    96,285
    
    
    
    95,281Real estate  construction and other
    
    
    18,167
    
    
    
    17,449
    
    
    
    16,965
    
    
    
    16,182
    
    
    
    16,067Real estate  mortgage
    
    
    21,514
    
    
    
    20,448
    
    
    
    20,130
    
    
    
    20,026
    
    
    
    19,455Lease financing
    
    
    23,966
    
    
    
    24,083
    
    
    
    24,053
    
    
    
    25,341
    
    
    
    25,253Foreign
    
    
    26,471
    
    
    
    20,959
    
    
    
    16,240
    
    
    
    13,464
    
    
    
    12,677Total commercial
    
    
    199,387
    
    
    
    185,336
    
    
    
    177,075
    
    
    
    171,298
    
    
    
    168,733CONSUMERReal estate secured (a)
    
    
    225,355
    
    
    
    220,293
    
    
    
    220,682
    
    
    
    225,826
    
    
    
    100,115Student loans
    
    
    7,742
    
    
    
    6,757
    
    
    
    8,479
    
    
    
    7,768
    
    
    
    9,175Installment loans
    
    
    24,763
    
    
    
    25,017
    
    
    
    23,665
    
    
    
    22,660
    
    
    
    21,454Total consumer
    
    
    257,860
    
    
    
    252,067
    
    
    
    252,826
    
    
    
    256,254
    
    
    
    130,744Total loans
    
    
    457,247
    
    
    
    437,403
    
    
    
    429,901
    
    
    
    427,552
    
    
    
    299,477Unearned income
    
    
    (8,041
    )
    
    
    (8,283
    )
    
    
    (8,238
    )
    
    
    (7,394
    )
    
    
    (8,718
    )Loans, net (On-balance sheet)
    
    $
    449,206
    
    
    
    429,120
    
    
    
    421,663
    
    
    
    420,158
    
    
    
    290,759MANAGED PORTFOLIO (b)COMMERCIALOn-balance sheet loan portfolio
    
    $
    199,387
    
    
    
    185,336
    
    
    
    177,075
    
    
    
    171,298
    
    
    
    168,733Securitized loans  off-balance sheet
    
    
    142
    
    
    
    170
    
    
    
    181
    
    
    
    194
    
    
    
    218Loans held for sale
    
    
    13,905
    
    
    
    11,573
    
    
    
    10,467
    
    
    
    8,866
    
    
    
    5,556Total commercial
    
    
    213,434
    
    
    
    197,079
    
    
    
    187,723
    
    
    
    180,358
    
    
    
    174,507CONSUMERReal estate securedOn-balance sheet loan portfolio
    
    
    225,355
    
    
    
    220,293
    
    
    
    220,682
    
    
    
    225,826
    
    
    
    100,115Securitized loans  off-balance sheet
    
    
    7,625
    
    
    
    8,112
    
    
    
    6,595
    
    
    
    5,611
    
    
    
    6,151Securitized loans included in securities
    
    
    5,963
    
    
    
    6,091
    
    
    
    5,629
    
    
    
    5,321
    
    
    
    4,317Loans held for sale
    
    
    3,583
    
    
    
    4,079
    
    
    
    4,089
    
    
    
    3,420
    
    
    
    3,324Total real estate secured
    
    
    242,526
    
    
    
    238,575
    
    
    
    236,995
    
    
    
    240,178
    
    
    
    113,907StudentOn-balance sheet loan portfolio
    
    
    7,742
    
    
    
    6,757
    
    
    
    8,479
    
    
    
    7,768
    
    
    
    9,175Securitized loans  off-balance sheet
    
    
    2,856
    
    
    
    2,905
    
    
    
    3,045
    
    
    
    3,128
    
    
    
    3,218Securitized loans included in securities
    
    
    52
    
    
    
    52
    
    
    
    52
    
    
    
    52
    
    
    
    52Loans held for sale
    
    
    1,968
    
    
    
    2,046
    
    
    
    -
    
    
    
    -
    
    
    
    -Total student
    
    
    12,618
    
    
    
    11,760
    
    
    
    11,576
    
    
    
    10,948
    
    
    
    12,445InstallmentOn-balance sheet loan portfolio
    
    
    24,763
    
    
    
    25,017
    
    
    
    23,665
    
    
    
    22,660
    
    
    
    21,454Securitized loans  off-balance sheet
    
    
    2,572
    
    
    
    3,105
    
    
    
    2,851
    
    
    
    3,276
    
    
    
    3,695Securitized loans included in securities
    
    
    55
    
    
    
    116
    
    
    
    126
    
    
    
    137
    
    
    
    169Loans held for sale
    
    
    1,975
    
    
    
    35
    
    
    
    476
    
    
    
    282
    
    
    
    159Total installment
    
    
    29,365
    
    
    
    28,273
    
    
    
    27,118
    
    
    
    26,355
    
    
    
    25,477Total consumer
    
    
    284,509
    
    
    
    278,608
    
    
    
    275,689
    
    
    
    277,481
    
    
    
    151,829Total managed portfolio
    
    $
    497,943
    
    
    
    475,687
    
    
    
    463,412
    
    
    
    457,839
    
    
    
    326,336SERVICING PORTFOLIO (c)Commercial
    
    $
    337,721
    
    
    
    298,374
    
    
    
    271,038
    
    
    
    250,652
    
    
    
    227,899Consumer
    
    $
    28,474
    
    
    
    26,789
    
    
    
    25,952
    
    
    
    21,039
    
    
    
    60,854
    54




---



##### 



Table 10
 
 LOANS HELD FOR SALE
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCORE BUSINESS ACTIVITY (a)Core business activity, beginning of period
    
    $
    15,696
    
    
    
    15,030
    
    
    
    12,566
    
    
    
    9,030
    
    
    
    7,740Balance of acquired entities at purchase date
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    193
    
    
    
    -Originations and/or purchases
    
    
    13,007
    
    
    
    22,671
    
    
    
    17,873
    
    
    
    18,436
    
    
    
    16,803Transfer to (from) loans held for sale, net
    
    
    2,162
    
    
    
    (71
    )
    
    
    (180
    )
    
    
    127
    
    
    
    (154
    )Allowance for loan losses related to loans
    
    
    (57
    )
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Lower of cost or market value adjustments (b)
    
    
    (249
    )
    
    
    (91
    )
    
    
    (3
    )
    
    
    -
    
    
    
    -Performing loans sold or securitized
    
    
    (11,606
    )
    
    
    (20,910
    )
    
    
    (14,745
    )
    
    
    (14,936
    )
    
    
    (15,137
    )Other, principally payments
    
    
    (1,307
    )
    
    
    (933
    )
    
    
    (481
    )
    
    
    (284
    )
    
    
    (222
    )Core business activity, end of period
    
    
    17,646
    
    
    
    15,696
    
    
    
    15,030
    
    
    
    12,566
    
    
    
    9,030PORTFOLIO MANAGEMENT ACTIVITY (a)Portfolio business activity, beginning of period
    
    
    2,037
    
    
    
    2
    
    
    
    2
    
    
    
    9
    
    
    
    10Structured lending vehicle consolidation
    
    
    1,831
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Transfer to loans held for salePerforming loans
    
    
    -
    
    
    
    2,046
    
    
    
    -
    
    
    
    -
    
    
    
    -Lower of cost or market value adjustments
    
    
    (6
    )
    
    
    (10
    )
    
    
    -
    
    
    
    -
    
    
    
    -Nonperforming loans sold
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    (3
    )
    
    
    -Other, principally payments
    
    
    (77
    )
    
    
    (1
    )
    
    
    -
    
    
    
    (4
    )
    
    
    (1
    )Portfolio management activity, end of period
    
    
    3,785
    
    
    
    2,037
    
    
    
    2
    
    
    
    2
    
    
    
    9Total loans held for sale (c)
    
    $
    21,431
    
    
    
    17,733
    
    
    
    15,032
    
    
    
    12,568
    
    
    
    9,039
    55




---



##### 



Table 11
 
 ALLOWANCE FOR CREDIT LOSSES
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterALLOWANCE FOR CREDIT LOSSES (a)Balance, beginning of period
    
    $
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163
    
    
    
    3,186Provision for credit losses
    
    
    381
    
    
    
    168
    
    
    
    175
    
    
    
    204
    
    
    
    118Provision for credit losses relating to loans
transferred to loans held for sale or sold
    
    
    3
    
    
    
    4
    
    
    
    1
    
    
    
    7
    
    
    
    (4
    )Provision for credit losses for unfunded
lending commitments
    
    
    24
    
    
    
    7
    
    
    
    1
    
    
    
    (5
    )
    
    
    (6
    )LOAN LOSSESCommercial, financial and agricultural
    
    
    (41
    )
    
    
    (39
    )
    
    
    (34
    )
    
    
    (32
    )
    
    
    (25
    )Commercial real estate  construction and mortgage
    
    
    (5
    )
    
    
    (4
    )
    
    
    (6
    )
    
    
    (10
    )
    
    
    (2
    )Total commercial
    
    
    (46
    )
    
    
    (43
    )
    
    
    (40
    )
    
    
    (42
    )
    
    
    (27
    )Real estate secured
    
    
    (59
    )
    
    
    (40
    )
    
    
    (33
    )
    
    
    (29
    )
    
    
    (25
    )Student loans
    
    
    (5
    )
    
    
    (2
    )
    
    
    (3
    )
    
    
    (5
    )
    
    
    (5
    )Installment and other loans (b)
    
    
    (168
    )
    
    
    (138
    )
    
    
    (142
    )
    
    
    (135
    )
    
    
    (119
    )Total consumer
    
    
    (232
    )
    
    
    (180
    )
    
    
    (178
    )
    
    
    (169
    )
    
    
    (149
    )Total loan losses
    
    
    (278
    )
    
    
    (223
    )
    
    
    (218
    )
    
    
    (211
    )
    
    
    (176
    )LOAN RECOVERIESCommercial, financial and agricultural
    
    
    9
    
    
    
    15
    
    
    
    9
    
    
    
    27
    
    
    
    14Commercial real estate  construction and mortgage
    
    
    3
    
    
    
    -
    
    
    
    3
    
    
    
    1
    
    
    
    1Total commercial
    
    
    12
    
    
    
    15
    
    
    
    12
    
    
    
    28
    
    
    
    15Real estate secured
    
    
    12
    
    
    
    11
    
    
    
    6
    
    
    
    7
    
    
    
    9Student loans
    
    
    3
    
    
    
    -
    
    
    
    1
    
    
    
    3
    
    
    
    1Installment and other loans (b)
    
    
    45
    
    
    
    47
    
    
    
    44
    
    
    
    33
    
    
    
    35Total consumer
    
    
    60
    
    
    
    58
    
    
    
    51
    
    
    
    43
    
    
    
    45Total loan recoveries
    
    
    72
    
    
    
    73
    
    
    
    63
    
    
    
    71
    
    
    
    60Net charge-offs
    
    
    (206
    )
    
    
    (150
    )
    
    
    (155
    )
    
    
    (140
    )
    
    
    (116
    )Balance of acquired entities at purchase date
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    303
    
    
    
    -Allowance relating to loans acquired, transferred
to loans held for sale or sold
    
    
    (63
    )
    
    
    (10
    )
    
    
    (3
    )
    
    
    (18
    )
    
    
    (15
    )Balance, end of period
    
    $
    3,691
    
    
    
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163CONSUMER REAL ESTATE SECURED NET CHARGE-OFFSFirst lien
    
    $
    (32
    )
    
    
    (17
    )
    
    
    (15
    )
    
    
    (15
    )
    
    
    (10
    )Second lien
    
    
    (15
    )
    
    
    (12
    )
    
    
    (12
    )
    
    
    (7
    )
    
    
    (6
    )Total consumer real estate secured net charge-offs
    
    $
    (47
    )
    
    
    (29
    )
    
    
    (27
    )
    
    
    (22
    )
    
    
    (16
    )ALLOWANCE FOR CREDIT LOSSESAllocation of the allowance for loan lossesCommercial
    
    $
    2,054
    
    
    
    1,889
    
    
    
    1,879
    
    
    
    1,867
    
    
    
    1,830Consumer
    
    
    1,246
    
    
    
    1,371
    
    
    
    1,354
    
    
    
    1,333
    
    
    
    1,084Unallocated
    
    
    205
    
    
    
    130
    
    
    
    145
    
    
    
    160
    
    
    
    90Total allowance for loan losses
    
    
    3,505
    
    
    
    3,390
    
    
    
    3,378
    
    
    
    3,360
    
    
    
    3,004Reserve for unfunded lending commitments
    
    
    186
    
    
    
    162
    
    
    
    155
    
    
    
    154
    
    
    
    159Total allowance for credit losses
    
    $
    3,691
    
    
    
    3,552
    
    
    
    3,533
    
    
    
    3,514
    
    
    
    3,163
   56




---



##### 



Table 12
 
 ALLOWANCE AND CHARGE-OFF RATIOS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterALLOWANCE FOR LOAN LOSSESas % of loans, net
    
    
    0.78
    %
    
    
    0.79
    
    
    
    0.80
    
    
    
    0.80
    
    
    
    1.03as % of nonaccrual and restructured loans (a) (b)
    
    
    135
    
    
    
    182
    
    
    
    213
    
    
    
    272
    
    
    
    520as % of nonperforming assets (a)
    
    
    120
    
    
    
    164
    
    
    
    194
    
    
    
    246
    
    
    
    396ALLOWANCE FOR CREDIT LOSSESas % of loans, net
    
    
    0.82
    %
    
    
    0.83
    
    
    
    0.84
    
    
    
    0.84
    
    
    
    1.09NET CHARGE-OFFS AS % OF AVERAGE LOANS, NET (c)Commercial, financial and agricultural
    
    
    0.10
    %
    
    
    0.07
    
    
    
    0.08
    
    
    
    0.02
    
    
    
    0.04Commercial real estate  construction and mortgage
    
    
    0.02
    
    
    
    0.04
    
    
    
    0.04
    
    
    
    0.10
    
    
    
    0.02Total commercial
    
    
    0.08
    
    
    
    0.07
    
    
    
    0.07
    
    
    
    0.04
    
    
    
    0.03Real estate secured
    
    
    0.08
    
    
    
    0.05
    
    
    
    0.05
    
    
    
    0.04
    
    
    
    0.06Student loans
    
    
    0.14
    
    
    
    0.07
    
    
    
    0.10
    
    
    
    0.09
    
    
    
    0.14Installment and other loans (d)
    
    
    1.99
    
    
    
    1.47
    
    
    
    1.67
    
    
    
    1.79
    
    
    
    1.58Total consumer
    
    
    0.27
    
    
    
    0.19
    
    
    
    0.20
    
    
    
    0.19
    
    
    
    0.32Total as % of average loans, net
    
    
    0.19
    %
    
    
    0.14
    
    
    
    0.15
    
    
    
    0.14
    
    
    
    0.16
     57




---



##### 



Table 13
 
 NONPERFORMING ASSETS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterNONPERFORMING ASSETSNonaccrual loansCommercialCommercial, financial and agricultural
    
    $
    354
    
    
    
    318
    
    
    
    303
    
    
    
    226
    
    
    
    275Commercial real estate  construction and mortgage
    
    
    289
    
    
    
    161
    
    
    
    117
    
    
    
    93
    
    
    
    80Total commercial
    
    
    643
    
    
    
    479
    
    
    
    420
    
    
    
    319
    
    
    
    355ConsumerReal estate securedFirst lien
    
    
    1,865
    
    
    
    1,293
    
    
    
    1,076
    
    
    
    868
    
    
    
    183Second lien
    
    
    41
    
    
    
    43
    
    
    
    37
    
    
    
    32
    
    
    
    30Installment and other loans (a)
    
    
    45
    
    
    
    42
    
    
    
    51
    
    
    
    15
    
    
    
    10Total consumer
    
    
    1,951
    
    
    
    1,378
    
    
    
    1,164
    
    
    
    915
    
    
    
    223Total nonaccrual loans
    
    
    2,594
    
    
    
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578Foreclosed properties (b)
    
    
    334
    
    
    
    207
    
    
    
    155
    
    
    
    132
    
    
    
    181Total nonperforming assets
    
    $
    2,928
    
    
    
    2,064
    
    
    
    1,739
    
    
    
    1,366
    
    
    
    759as % of loans, net, and foreclosed properties (c)
    
    
    0.65
    %
    
    
    0.48
    
    
    
    0.41
    
    
    
    0.32
    
    
    
    0.26Nonperforming assets included in loans held for saleCommercial
    
    $
    -
    
    
    
    -
    
    
    
    1
    
    
    
    1
    
    
    
    9Consumer
    
    
    59
    
    
    
    42
    
    
    
    25
    
    
    
    15
    
    
    
    14Total nonperforming assets included in loans held for sale
    
    
    59
    
    
    
    42
    
    
    
    26
    
    
    
    16
    
    
    
    23Nonperforming assets included in loans and
in loans held for sale
    
    $
    2,987
    
    
    
    2,106
    
    
    
    1,765
    
    
    
    1,382
    
    
    
    782as % of loans, net, foreclosed properties and loans
held for sale (d)
    
    
    0.63
    %
    
    
    0.47
    
    
    
    0.40
    
    
    
    0.32
    
    
    
    0.26PAST DUE LOANS 90 DAYS AND OVER,
AND NONACCRUAL LOANS (c)Accruing loans past due 90 days and over
    
    $
    590
    
    
    
    562
    
    
    
    555
    
    
    
    650
    
    
    
    666Nonaccrual loans
    
    
    2,594
    
    
    
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578Total past due loans 90 days and over, and
nonaccrual loans
    
    $
    3,184
    
    
    
    2,419
    
    
    
    2,139
    
    
    
    1,884
    
    
    
    1,244Commercial as % of loans, net
    
    
    0.38
    %
    
    
    0.31
    
    
    
    0.28
    
    
    
    0.23
    
    
    
    0.28Consumer as % of loans, net
    
    
    0.95
    %
    
    
    0.74
    
    
    
    0.66
    
    
    
    0.59
    
    
    
    0.61
     58




---



##### 



Table 14
 
 NONACCRUAL LOAN ACTIVITY (a)
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterBalance, beginning of period
    
    $
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578
    
    
    
    619COMMERCIAL NONACCRUAL LOAN ACTIVITYCommercial nonaccrual loans, beginning of period
    
    
    479
    
    
    
    420
    
    
    
    319
    
    
    
    355
    
    
    
    387New nonaccrual loans and advances
    
    
    298
    
    
    
    205
    
    
    
    196
    
    
    
    157
    
    
    
    129Gross charge-offs
    
    
    (46
    )
    
    
    (43
    )
    
    
    (40
    )
    
    
    (42
    )
    
    
    (27
    )Transfers to other real estate owned
    
    
    (5
    )
    
    
    (2
    )
    
    
    -
    
    
    
    (1
    )
    
    
    (2
    )Sales
    
    
    (14
    )
    
    
    (15
    )
    
    
    (1
    )
    
    
    (81
    )
    
    
    (43
    )Other, principally payments
    
    
    (69
    )
    
    
    (86
    )
    
    
    (54
    )
    
    
    (69
    )
    
    
    (89
    )Net commercial nonaccrual loan activity
    
    
    164
    
    
    
    59
    
    
    
    101
    
    
    
    (36
    )
    
    
    (32
    )Commercial nonaccrual loans, end of period
    
    
    643
    
    
    
    479
    
    
    
    420
    
    
    
    319
    
    
    
    355CONSUMER NONACCRUAL LOAN ACTIVITYConsumer nonaccrual loans, beginning of period
    
    
    1,378
    
    
    
    1,164
    
    
    
    915
    
    
    
    223
    
    
    
    232Balance of acquired entities at purchase date
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    589
    
    
    
    -New nonaccrual loans, advances and other, net
    
    
    573
    
    
    
    217
    
    
    
    249
    
    
    
    103
    
    
    
    (9
    )Sales and securitizations
    
    
    -
    
    
    
    (3
    )
    
    
    -
    
    
    
    -
    
    
    
    -Net consumer nonaccrual loan activity
    
    
    573
    
    
    
    214
    
    
    
    249
    
    
    
    103
    
    
    
    (9
    )Consumer nonaccrual loans, end of period
    
    
    1,951
    
    
    
    1,378
    
    
    
    1,164
    
    
    
    915
    
    
    
    223Balance, end of period
    
    $
    2,594
    
    
    
    1,857
    
    
    
    1,584
    
    
    
    1,234
    
    
    
    578
  59




---



##### 



Table 15
 
 GOODWILL AND OTHER INTANGIBLE ASSETS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterGoodwill
    
    $
    38,848
    
    
    
    38,766
    
    
    
    38,838
    
    
    
    38,379
    
    
    
    23,535Deposit base
    
    
    670
    
    
    
    727
    
    
    
    796
    
    
    
    883
    
    
    
    577Customer relationships
    
    
    620
    
    
    
    651
    
    
    
    684
    
    
    
    662
    
    
    
    688Tradename
    
    
    90
    
    
    
    90
    
    
    
    90
    
    
    
    90
    
    
    
    90Total goodwill and other intangible assets
    
    $
    40,228
    
    
    
    40,234
    
    
    
    40,408
    
    
    
    40,014
    
    
    
    24,890
 Nine Months Ended September 30, 2007Employee
    
    
    OccupancyTermination
    
    
    and(In millions)
    
    Benefits
    
    
    Equipment
    
    
    Other
    
    
    TotalEXIT COST PURCHASE ACCOUNTING ACCRUAL ACTIVITYWachovia/Golden West  October 1, 2006Balance, December 31, 2006
    
    $
    11
    
    
    
    -
    
    
    
    1
    
    
    
    12Purchase accounting adjustments
    
    
    138
    
    
    
    22
    
    
    
    -
    
    
    
    160Cash payments
    
    
    (52
    )
    
    
    -
    
    
    
    (1
    )
    
    
    (53
    )Balance, September 30, 2007
    
    $
    97
    
    
    
    22
    
    
    
    -
    
    
    
    119EXIT COST PURCHASE ACCOUNTING ACCRUAL ACTIVITYWachovia/Westcorp  March 1, 2006Balance, December 31, 2006
    
    $
    2
    
    
    
    -
    
    
    
    -
    
    
    
    2Purchase accounting adjustments
    
    
    2
    
    
    
    -
    
    
    
    -
    
    
    
    2Cash payments
    
    
    (4
    )
    
    
    -
    
    
    
    -
    
    
    
    (4
    )Balance, September 30, 2007
    
    $
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -EXIT COST PURCHASE ACCOUNTING ACCRUAL ACTIVITYWachovia/SouthTrust  November 1, 2004Balance, December 31, 2006
    
    $
    51
    
    
    
    -
    
    
    
    2
    
    
    
    53Purchase accounting adjustments
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Cash payments
    
    
    (28
    )
    
    
    -
    
    
    
    -
    
    
    
    (28
    )Balance, September 30, 2007
    
    $
    23
    
    
    
    -
    
    
    
    2
    
    
    
    25
 60




---



##### 



Table 16
 
 DEPOSITS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCORE DEPOSITSNoninterest-bearing
    
    $
    56,825
    
    
    
    62,112
    
    
    
    63,399
    
    
    
    66,572
    
    
    
    63,880Savings and NOW accounts
    
    
    81,037
    
    
    
    82,629
    
    
    
    85,404
    
    
    
    86,106
    
    
    
    75,536Money market accounts
    
    
    114,457
    
    
    
    111,666
    
    
    
    108,607
    
    
    
    105,428
    
    
    
    97,762Other consumer time
    
    
    125,546
    
    
    
    121,781
    
    
    
    119,948
    
    
    
    113,665
    
    
    
    54,489Total core deposits
    
    
    377,865
    
    
    
    378,188
    
    
    
    377,358
    
    
    
    371,771
    
    
    
    291,667OTHER DEPOSITSForeign
    
    
    27,226
    
    
    
    23,324
    
    
    
    20,133
    
    
    
    21,988
    
    
    
    18,753Other time
    
    
    16,846
    
    
    
    8,518
    
    
    
    7,779
    
    
    
    13,699
    
    
    
    12,878Total deposits
    
    $
    421,937
    
    
    
    410,030
    
    
    
    405,270
    
    
    
    407,458
    
    
    
    323,298
 Table 17
 
 TIME DEPOSITS IN AMOUNTS OF $100,000 OR MORE
 
 September 30, 2007(In millions)MATURITY OF3 months or less
    
    $
    23,673Over 3 months through 6 months
    
    
    21,477Over 6 months through 12 months
    
    
    13,579Over 12 months
    
    
    4,412Total time deposits in amounts of $100,000 or more
    
    $
    63,141
 61




---



##### 



Table 18
 
 RATES AND AMOUNTS OF SAVINGS BANK DEPOSITS (a)
 
 September 30, 2007
    
    
    December 31, 2006(In millions)
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    AmountDepositsInterest-bearing checking accounts
    
    
    1.54
    %
    
    $
    3,294
    
    
    
    1.60
    %
    
    $
    3,844Interest-free checking accounts
    
    
    -
    
    
    
    281
    
    
    
    -
    
    
    
    -Savings accounts
    
    
    3.08
    
    
    
    7,404
    
    
    
    3.12
    
    
    
    9,287Term certificate accounts with original maturities of4 weeks to 1 year
    
    
    5.17
    
    
    
    58,025
    
    
    
    5.27
    
    
    
    44,9881 to 2 years
    
    
    5.16
    
    
    
    4,990
    
    
    
    4.95
    
    
    
    7,9692 to 3 years
    
    
    4.32
    
    
    
    403
    
    
    
    3.87
    
    
    
    5733 to 4 years
    
    
    3.88
    
    
    
    393
    
    
    
    3.49
    
    
    
    5514 years and over
    
    
    3.98
    
    
    
    1,066
    
    
    
    4.34
    
    
    
    1,988Retail jumbo certificates of deposits
    
    
    0.69
    
    
    
    6
    
    
    
    0.76
    
    
    
    12Brokered certificates of deposits
    
    
    5.36
    
    
    
    2,686
    
    
    
    -
    
    
    
    -Total
    
    
    4.78
    %
    
    $
    78,548
    
    
    
    4.69
    %
    
    $
    69,212
  62




---



##### 



Table 19
 
 LONG-TERM DEBT
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterNOTES AND DEBENTURES ISSUED BYTHE PARENT COMPANYNotesFloating rate, due 2007 to 2017
    
    $
    15,401
    
    
    
    13,651
    
    
    
    11,151
    
    
    
    11,149
    
    
    
    9,649Equity-linked and commodity-linked, due 2007 to 2012
    
    
    1,047
    
    
    
    1,055
    
    
    
    988
    
    
    
    869
    
    
    
    6993.50% to 5.80%, due 2008 to 2020
    
    
    8,551
    
    
    
    8,193
    
    
    
    6,835
    
    
    
    6,327
    
    
    
    6,975Floating rate, EMTN notes, due 2011 to 2014
    
    
    3,549
    
    
    
    3,370
    
    
    
    3,321
    
    
    
    1,975
    
    
    
    1,8974.375% to 4.875%, EMTN notes, due 2016 to 2035
    
    
    3,172
    
    
    
    3,061
    
    
    
    3,005
    
    
    
    2,986
    
    
    
    943Floating rate, Australian notes, due 2012
    
    
    799
    
    
    
    764
    
    
    
    -
    
    
    
    -
    
    
    
    -6.75%, Australian notes, due 2012
    
    
    133
    
    
    
    127
    
    
    
    -
    
    
    
    -
    
    
    
    -Subordinated notes4.875% to 6.40%, due 2008 to 2035
    
    
    6,452
    
    
    
    6,449
    
    
    
    6,441
    
    
    
    6,444
    
    
    
    5,192Floating rate, due 2015 to 2016
    
    
    1,250
    
    
    
    1,250
    
    
    
    1,250
    
    
    
    1,250
    
    
    
    6006.605%, due 2025
    
    
    250
    
    
    
    250
    
    
    
    250
    
    
    
    250
    
    
    
    2506.30%, Putable/Callable, due 2028
    
    
    200
    
    
    
    200
    
    
    
    200
    
    
    
    200
    
    
    
    200Floating rate, hybrid trust securities, due 2037 to 2047
    
    
    1,675
    
    
    
    1,675
    
    
    
    875
    
    
    
    -
    
    
    
    -5.20%, income trust securities, due 2042
    
    
    2,501
    
    
    
    2,501
    
    
    
    2,501
    
    
    
    2,501
    
    
    
    2,501Subordinated debentures6.55% to 7.574%, due 2026 to 2035
    
    
    795
    
    
    
    795
    
    
    
    795
    
    
    
    795
    
    
    
    795Hedge-related basis adjustments
    
    
    (139
    )
    
    
    (660
    )
    
    
    (74
    )
    
    
    (21
    )
    
    
    35Total notes and debentures issued by the
Parent Company
    
    
    45,636
    
    
    
    42,681
    
    
    
    37,538
    
    
    
    34,725
    
    
    
    29,736NOTES ISSUED BY SUBSIDIARIESNotes, primarily notes issued under global bank
note programs, varying rates and terms to 2040
    
    
    21,226
    
    
    
    21,537
    
    
    
    21,911
    
    
    
    18,383
    
    
    
    18,134Floating rate, due 2007 to 2011
    
    
    7,133
    
    
    
    7,133
    
    
    
    7,730
    
    
    
    7,730
    
    
    
    -4.125% to 4.75%, due 2008 to 2012
    
    
    2,389
    
    
    
    2,689
    
    
    
    2,687
    
    
    
    2,686
    
    
    
    -Floating rate, EMTN notes, due 2011
    
    
    3,907
    
    
    
    3,710
    
    
    
    3,657
    
    
    
    3,622
    
    
    
    3,480Subordinated notesBank, 4.75% to 9.625%, due 2008 to 2037
    
    
    9,532
    
    
    
    9,533
    
    
    
    9,535
    
    
    
    8,032
    
    
    
    8,3337.95%, due 2007
    
    
    100
    
    
    
    100
    
    
    
    100
    
    
    
    100
    
    
    
    100Floating rate, due 2013
    
    
    417
    
    
    
    417
    
    
    
    417
    
    
    
    417
    
    
    
    4176.75%, Australian notes, due 2017
    
    
    176
    
    
    
    169
    
    
    
    -
    
    
    
    -
    
    
    
    -Floating rate, Australian notes, due 2017
    
    
    177
    
    
    
    170
    
    
    
    -
    
    
    
    -
    
    
    
    -5.25%, EMTN notes, due 2023
    
    
    1,512
    
    
    
    1,488
    
    
    
    1,455
    
    
    
    1,452
    
    
    
    1,3866.75%
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    200Total notes issued by subsidiaries
    
    
    46,569
    
    
    
    46,946
    
    
    
    47,492
    
    
    
    42,422
    
    
    
    32,050OTHER DEBTAuto secured financing, due 2007 to 2015
    
    
    7,748
    
    
    
    8,994
    
    
    
    8,289
    
    
    
    9,539
    
    
    
    9,694Collateralized notes, floating rate, due 2008 to 2011
    
    
    4,300
    
    
    
    4,420
    
    
    
    4,420
    
    
    
    4,420
    
    
    
    4,420Junior subordinated debentures, floating rate, due 2026 to 2029
    
    
    3,099
    
    
    
    3,100
    
    
    
    3,097
    
    
    
    3,099
    
    
    
    3,112Advances from the Federal Home Loan Bank, 1.00% to 8.45%,
due 2008 to 2031
    
    
    43,017
    
    
    
    30,542
    
    
    
    34,699
    
    
    
    36,614
    
    
    
    2,512Preferred units issued by subsidiaries
    
    
    2,852
    
    
    
    2,852
    
    
    
    2,852
    
    
    
    2,852
    
    
    
    2,352Capitalized leases
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    30
    
    
    
    38Mortgage notes and other debt of subsidiaries
    
    
    5,411
    
    
    
    2,809
    
    
    
    3,916
    
    
    
    4,856
    
    
    
    2,441Hedge-related basis adjustments
    
    
    (57
    )
    
    
    (306
    )
    
    
    22
    
    
    
    37
    
    
    
    64Total other debt
    
    
    66,379
    
    
    
    52,420
    
    
    
    57,304
    
    
    
    61,447
    
    
    
    24,633Total long-term debt
    
    $
    158,584
    
    
    
    142,047
    
    
    
    142,334
    
    
    
    138,594
    
    
    
    86,419
 63




---



##### 



Table 20
 
 CHANGES IN STOCKHOLDERS EQUITY
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterBalance, beginning of period, as reported
    
    $
    69,266
    
    
    
    69,786
    
    
    
    69,716
    
    
    
    51,180
    
    
    
    48,872Cumulative effect of accounting
changes, net of income taxes
    
    
    -
    
    
    
    -
    
    
    
    (1,447
    )
    
    
    -
    
    
    
    -Balance, beginning of period
    
    
    69,266
    
    
    
    69,786
    
    
    
    68,269
    
    
    
    51,180
    
    
    
    48,872Comprehensive incomeNet income
    
    
    1,618
    
    
    
    2,341
    
    
    
    2,302
    
    
    
    2,301
    
    
    
    1,877Unamortized gains and losses under employee benefit plans
    
    
    16
    
    
    
    31
    
    
    
    -
    
    
    
    29
    
    
    
    -Net unrealized gains (losses) on debt and equity securities
    
    
    493
    
    
    
    (1,284
    )
    
    
    101
    
    
    
    53
    
    
    
    1,389Net unrealized gains (losses) on derivative financial
instruments
    
    
    3
    
    
    
    (76
    )
    
    
    65
    
    
    
    (33
    )
    
    
    63Total comprehensive income
    
    
    2,130
    
    
    
    1,012
    
    
    
    2,468
    
    
    
    2,350
    
    
    
    3,329Adjustment to initially apply SFAS 158, net of income taxes (a)
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    (1,086
    )
    
    
    -Purchases of common stock
    
    
    (190
    )
    
    
    (723
    )
    
    
    (284
    )
    
    
    (389
    )
    
    
    (554
    )Common stock issued forStock options and restricted stock
    
    
    35
    
    
    
    132
    
    
    
    644
    
    
    
    141
    
    
    
    315Acquisitions
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    18,484
    
    
    
    (2
    )Deferred compensation, net
    
    
    114
    
    
    
    125
    
    
    
    (240
    )
    
    
    100
    
    
    
    108Cash dividends on common shares
    
    
    (1,215
    )
    
    
    (1,066
    )
    
    
    (1,071
    )
    
    
    (1,064
    )
    
    
    (888
    )Balance, end of period
    
    $
    70,140
    
    
    
    69,266
    
    
    
    69,786
    
    
    
    69,716
    
    
    
    51,180
  64




---



##### 



Table 21
 
 CAPITAL RATIOS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterCONSOLIDATED CAPITAL RATIOS (a)Qualifying capitalTier 1 capital
    
    $
    41,853
    
    
    
    41,516
    
    
    
    39,790
    
    
    
    39,428
    
    
    
    34,842Total capital
    
    
    63,948
    
    
    
    63,705
    
    
    
    61,803
    
    
    
    60,194
    
    
    
    51,624Adjusted risk-weighted assets
    
    
    589,844
    
    
    
    555,702
    
    
    
    541,628
    
    
    
    531,303
    
    
    
    450,067Adjusted leverage ratio assets
    
    $
    686,373
    
    
    
    666,646
    
    
    
    653,994
    
    
    
    656,428
    
    
    
    528,071RatiosTier 1 capital
    
    
    7.10
    %
    
    
    7.47
    
    
    
    7.35
    
    
    
    7.42
    
    
    
    7.74Total capital
    
    
    10.84
    
    
    
    11.46
    
    
    
    11.41
    
    
    
    11.33
    
    
    
    11.47Leverage
    
    
    6.10
    
    
    
    6.23
    
    
    
    6.08
    
    
    
    6.01
    
    
    
    6.60STOCKHOLDERS EQUITY TO ASSETSQuarter-end
    
    
    9.30
    
    
    
    9.68
    
    
    
    9.93
    
    
    
    9.86
    
    
    
    9.14Average
    
    
    9.58
    %
    
    
    9.84
    
    
    
    10.03
    
    
    
    9.98
    
    
    
    9.03BANK CAPITAL RATIOSTier 1 capitalWachovia Bank, National Association
    
    
    7.09
    %
    
    
    7.34
    
    
    
    7.28
    
    
    
    7.46
    
    
    
    7.65Wachovia Bank of Delaware, National Association
    
    
    17.14
    
    
    
    18.37
    
    
    
    17.82
    
    
    
    16.27
    
    
    
    15.08World Savings Bank, FSB
    
    
    13.44
    
    
    
    16.07
    
    
    
    14.37
    
    
    
    13.77
    
    
    
    -World Savings Bank, FSB (Texas) (b)
    
    
    15.94
    
    
    
    12.42
    
    
    
    -
    
    
    
    -
    
    
    
    -Total capitalWachovia Bank, National Association
    
    
    10.57
    
    
    
    10.95
    
    
    
    10.94
    
    
    
    10.90
    
    
    
    11.29Wachovia Bank of Delaware, National Association
    
    
    19.27
    
    
    
    20.29
    
    
    
    19.41
    
    
    
    17.84
    
    
    
    16.96World Savings Bank, FSB
    
    
    13.81
    
    
    
    16.45
    
    
    
    14.77
    
    
    
    14.16
    
    
    
    -World Savings Bank, FSB (Texas) (b)
    
    
    16.25
    
    
    
    12.83
    
    
    
    -
    
    
    
    -
    
    
    
    -LeverageWachovia Bank, National Association
    
    
    6.69
    
    
    
    6.72
    
    
    
    6.62
    
    
    
    6.66
    
    
    
    6.58Wachovia Bank of Delaware, National Association
    
    
    15.66
    
    
    
    14.33
    
    
    
    13.42
    
    
    
    11.18
    
    
    
    11.84World Savings Bank, FSB
    
    
    7.17
    
    
    
    8.78
    
    
    
    7.84
    
    
    
    7.30
    
    
    
    -World Savings Bank, FSB (Texas) (b)
    
    
    5.50
    %
    
    
    5.20
    
    
    
    -
    
    
    
    -
    
    
    
    -
   65




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 NET INTEREST INCOME SUMMARIES
 
 THIRD QUARTER 2007
    
    
    SECOND QUARTER 2007Average
    
    
    
    
    
    
    
    
    
    
    AverageInterest
    
    
    Rates
    
    
    
    
    
    
    Interest
    
    
    RatesAverage
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/(In millions)
    
    Balances
    
    
    Expense
    
    
    Paid
    
    
    Balances
    
    
    Expense
    
    
    PaidASSETSInterest-bearing bank balances
    
    $
    6,459
    
    
    
    93
    
    
    
    5.68
    %
    
    $
    3,384
    
    
    
    50
    
    
    
    6.00
    %Federal funds sold and securities
purchased under resale agreements
    
    
    14,206
    
    
    
    194
    
    
    
    5.42
    
    
    
    12,110
    
    
    
    158
    
    
    
    5.25Trading account assets (a)
    
    
    38,737
    
    
    
    575
    
    
    
    5.93
    
    
    
    35,165
    
    
    
    519
    
    
    
    5.90Securities (a)
    
    
    111,424
    
    
    
    1,522
    
    
    
    5.46
    
    
    
    108,433
    
    
    
    1,467
    
    
    
    5.41Loans (a) (b)CommercialCommercial, financial and agricultural
    
    
    106,263
    
    
    
    1,927
    
    
    
    7.19
    
    
    
    101,012
    
    
    
    1,805
    
    
    
    7.16Real estate  construction and other
    
    
    17,795
    
    
    
    344
    
    
    
    7.66
    
    
    
    17,334
    
    
    
    329
    
    
    
    7.62Real estate  mortgage
    
    
    20,883
    
    
    
    406
    
    
    
    7.71
    
    
    
    20,175
    
    
    
    378
    
    
    
    7.53Lease financing
    
    
    7,523
    
    
    
    146
    
    
    
    7.80
    
    
    
    7,759
    
    
    
    150
    
    
    
    7.74Foreign
    
    
    22,208
    
    
    
    308
    
    
    
    5.53
    
    
    
    19,232
    
    
    
    265
    
    
    
    5.51Total commercial
    
    
    174,672
    
    
    
    3,131
    
    
    
    7.12
    
    
    
    165,512
    
    
    
    2,927
    
    
    
    7.09ConsumerReal estate secured
    
    
    223,356
    
    
    
    4,070
    
    
    
    7.28
    
    
    
    222,096
    
    
    
    4,042
    
    
    
    7.28Student loans
    
    
    7,299
    
    
    
    122
    
    
    
    6.61
    
    
    
    8,850
    
    
    
    141
    
    
    
    6.42Installment loans
    
    
    24,474
    
    
    
    614
    
    
    
    9.99
    
    
    
    24,799
    
    
    
    609
    
    
    
    9.38Total consumer
    
    
    255,129
    
    
    
    4,806
    
    
    
    7.52
    
    
    
    255,745
    
    
    
    4,792
    
    
    
    7.46Total loans
    
    
    429,801
    
    
    
    7,937
    
    
    
    7.36
    
    
    
    421,257
    
    
    
    7,719
    
    
    
    7.31Loans held for sale
    
    
    20,209
    
    
    
    363
    
    
    
    7.14
    
    
    
    17,644
    
    
    
    285
    
    
    
    6.47Other earning assets
    
    
    7,937
    
    
    
    138
    
    
    
    6.91
    
    
    
    7,985
    
    
    
    144
    
    
    
    7.23Total earning assets excluding derivatives
    
    
    628,773
    
    
    
    10,822
    
    
    
    6.86
    
    
    
    605,978
    
    
    
    10,342
    
    
    
    6.82Risk management derivatives (c)
    
    
    -
    
    
    
    42
    
    
    
    0.02
    
    
    
    -
    
    
    
    46
    
    
    
    0.03Total earning assets including derivatives
    
    
    628,773
    
    
    
    10,864
    
    
    
    6.88
    
    
    
    605,978
    
    
    
    10,388
    
    
    
    6.85Cash and due from banks
    
    
    11,134
    
    
    
    
    
    
    
    
    
    
    
    11,533Other assets
    
    
    89,097
    
    
    
    
    
    
    
    
    
    
    
    87,262Total assets
    
    $
    729,004
    
    
    
    
    
    
    
    
    
    
    $
    704,773LIABILITIES AND STOCKHOLDERS EQUITYInterest-bearing depositsSavings and NOW accounts
    
    
    81,851
    
    
    
    357
    
    
    
    1.73
    
    
    
    83,977
    
    
    
    367
    
    
    
    1.75Money market accounts
    
    
    116,404
    
    
    
    980
    
    
    
    3.34
    
    
    
    111,562
    
    
    
    976
    
    
    
    3.51Other consumer time
    
    
    122,474
    
    
    
    1,507
    
    
    
    4.88
    
    
    
    120,684
    
    
    
    1,455
    
    
    
    4.84Foreign
    
    
    23,322
    
    
    
    292
    
    
    
    4.97
    
    
    
    21,871
    
    
    
    270
    
    
    
    4.96Other time
    
    
    13,776
    
    
    
    187
    
    
    
    5.40
    
    
    
    8,051
    
    
    
    107
    
    
    
    5.30Total interest-bearing deposits
    
    
    357,827
    
    
    
    3,323
    
    
    
    3.68
    
    
    
    346,145
    
    
    
    3,175
    
    
    
    3.68Federal funds purchased and securities
sold under repurchase agreements
    
    
    44,334
    
    
    
    556
    
    
    
    4.98
    
    
    
    38,031
    
    
    
    473
    
    
    
    4.98Commercial paper
    
    
    5,799
    
    
    
    65
    
    
    
    4.42
    
    
    
    5,143
    
    
    
    60
    
    
    
    4.67Securities sold short
    
    
    7,420
    
    
    
    70
    
    
    
    3.74
    
    
    
    7,158
    
    
    
    67
    
    
    
    3.75Other short-term borrowings
    
    
    7,793
    
    
    
    55
    
    
    
    2.74
    
    
    
    7,688
    
    
    
    52
    
    
    
    2.77Long-term debt
    
    
    151,226
    
    
    
    2,067
    
    
    
    5.44
    
    
    
    143,504
    
    
    
    1,923
    
    
    
    5.37Total interest-bearing liabilities excluding derivatives
    
    
    574,399
    
    
    
    6,136
    
    
    
    4.24
    
    
    
    547,669
    
    
    
    5,750
    
    
    
    4.21Risk management derivatives (c)
    
    
    -
    
    
    
    144
    
    
    
    0.10
    
    
    
    -
    
    
    
    151
    
    
    
    0.11Total interest-bearing liabilities including derivatives
    
    
    574,399
    
    
    
    6,280
    
    
    
    4.34
    
    
    
    547,669
    
    
    
    5,901
    
    
    
    4.32Noninterest-bearing deposits
    
    
    58,280
    
    
    
    
    
    
    
    
    
    
    
    62,273Other liabilities
    
    
    26,468
    
    
    
    
    
    
    
    
    
    
    
    25,514Stockholders equity
    
    
    69,857
    
    
    
    
    
    
    
    
    
    
    
    69,317Total liabilities and stockholders equity
    
    $
    729,004
    
    
    
    
    
    
    
    
    
    
    $
    704,773Interest income and rate earned  including derivatives
    
    
    
    
    
    $
    10,864
    
    
    
    6.88
    %
    
    
    
    
    
    $
    10,388
    
    
    
    6.85
    %Interest expense and equivalent rate paid  including derivatives
    
    
    
    
    
    
    6,280
    
    
    
    3.96
    
    
    
    
    
    
    
    5,901
    
    
    
    3.91Net interest income and margin  including derivatives
    
    
    
    
    
    $
    4,584
    
    
    
    2.92
    %
    
    
    
    
    
    $
    4,487
    
    
    
    2.94
    %
   66




---



##### 



FIRST QUARTER 2007
    
    
    FOURTH QUARTER 2006
    
    
    THIRD QUARTER 2006Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageInterest
    
    
    Rates
    
    
    
    
    
    
    Interest
    
    
    Rates
    
    
    
    
    
    
    Interest
    
    
    RatesAverage
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/
    
    
    Average
    
    
    Income/
    
    
    Earned/Balances
    
    
    Expense
    
    
    Paid
    
    
    Balances
    
    
    Expense
    
    
    Paid
    
    
    Balances
    
    
    Expense
    
    
    Paid$
    1,523
    
    
    
    30
    
    
    
    7.80
    %
    
    $
    3,596
    
    
    
    54
    
    
    
    5.95
    %
    
    $
    2,671
    
    
    
    34
    
    
    
    5.07
    %14,124
    
    
    
    177
    
    
    
    5.07
    
    
    
    20,830
    
    
    
    268
    
    
    
    5.11
    
    
    
    17,530
    
    
    
    224
    
    
    
    5.0829,681
    
    
    
    442
    
    
    
    5.97
    
    
    
    31,069
    
    
    
    469
    
    
    
    6.03
    
    
    
    31,160
    
    
    
    409
    
    
    
    5.24108,071
    
    
    
    1,461
    
    
    
    5.42
    
    
    
    108,543
    
    
    
    1,467
    
    
    
    5.40
    
    
    
    122,152
    
    
    
    1,661
    
    
    
    5.4498,413
    
    
    
    1,736
    
    
    
    7.16
    
    
    
    96,359
    
    
    
    1,726
    
    
    
    7.10
    
    
    
    93,886
    
    
    
    1,673
    
    
    
    7.0716,508
    
    
    
    313
    
    
    
    7.69
    
    
    
    16,091
    
    
    
    311
    
    
    
    7.67
    
    
    
    15,787
    
    
    
    308
    
    
    
    7.7420,231
    
    
    
    380
    
    
    
    7.61
    
    
    
    19,830
    
    
    
    380
    
    
    
    7.61
    
    
    
    19,507
    
    
    
    378
    
    
    
    7.697,730
    
    
    
    150
    
    
    
    7.75
    
    
    
    9,674
    
    
    
    166
    
    
    
    6.88
    
    
    
    9,731
    
    
    
    172
    
    
    
    7.0414,406
    
    
    
    196
    
    
    
    5.49
    
    
    
    12,352
    
    
    
    170
    
    
    
    5.49
    
    
    
    11,655
    
    
    
    158
    
    
    
    5.37157,288
    
    
    
    2,775
    
    
    
    7.15
    
    
    
    154,306
    
    
    
    2,753
    
    
    
    7.08
    
    
    
    150,566
    
    
    
    2,689
    
    
    
    7.09225,909
    
    
    
    4,148
    
    
    
    7.36
    
    
    
    226,870
    
    
    
    4,240
    
    
    
    7.47
    
    
    
    99,669
    
    
    
    1,670
    
    
    
    6.698,524
    
    
    
    136
    
    
    
    6.47
    
    
    
    8,886
    
    
    
    145
    
    
    
    6.49
    
    
    
    9,605
    
    
    
    161
    
    
    
    6.6523,540
    
    
    
    566
    
    
    
    9.42
    
    
    
    22,499
    
    
    
    546
    
    
    
    9.62
    
    
    
    21,270
    
    
    
    517
    
    
    
    9.66257,973
    
    
    
    4,850
    
    
    
    7.52
    
    
    
    258,255
    
    
    
    4,931
    
    
    
    7.63
    
    
    
    130,544
    
    
    
    2,348
    
    
    
    7.17415,261
    
    
    
    7,625
    
    
    
    7.38
    
    
    
    412,561
    
    
    
    7,684
    
    
    
    7.42
    
    
    
    281,110
    
    
    
    5,037
    
    
    
    7.1316,748
    
    
    
    255
    
    
    
    6.16
    
    
    
    11,928
    
    
    
    200
    
    
    
    6.70
    
    
    
    12,130
    
    
    
    214
    
    
    
    6.998,255
    
    
    
    139
    
    
    
    6.82
    
    
    
    8,366
    
    
    
    149
    
    
    
    7.05
    
    
    
    5,386
    
    
    
    113
    
    
    
    8.35593,663
    
    
    
    10,129
    
    
    
    6.86
    
    
    
    596,893
    
    
    
    10,291
    
    
    
    6.87
    
    
    
    472,139
    
    
    
    7,692
    
    
    
    6.49-
    
    
    
    48
    
    
    
    0.03
    
    
    
    -
    
    
    
    114
    
    
    
    0.08
    
    
    
    -
    
    
    
    129
    
    
    
    0.11593,663
    
    
    
    10,177
    
    
    
    6.89
    
    
    
    596,893
    
    
    
    10,405
    
    
    
    6.95
    
    
    
    472,139
    
    
    
    7,821
    
    
    
    6.6012,260
    
    
    
    
    
    
    
    
    
    
    
    12,418
    
    
    
    
    
    
    
    
    
    
    
    11,97385,106
    
    
    
    
    
    
    
    
    
    
    
    89,376
    
    
    
    
    
    
    
    
    
    
    
    71,052$
    691,029
    
    
    
    
    
    
    
    
    
    
    $
    698,687
    
    
    
    
    
    
    
    
    
    
    $
    555,16484,247
    
    
    
    373
    
    
    
    1.80
    
    
    
    82,924
    
    
    
    398
    
    
    
    1.90
    
    
    
    75,534
    
    
    
    355
    
    
    
    1.86107,785
    
    
    
    917
    
    
    
    3.45
    
    
    
    104,620
    
    
    
    913
    
    
    
    3.46
    
    
    
    99,788
    
    
    
    862
    
    
    
    3.43116,262
    
    
    
    1,369
    
    
    
    4.77
    
    
    
    111,858
    
    
    
    1,310
    
    
    
    4.65
    
    
    
    52,352
    
    
    
    548
    
    
    
    4.1520,802
    
    
    
    249
    
    
    
    4.85
    
    
    
    20,245
    
    
    
    241
    
    
    
    4.73
    
    
    
    20,599
    
    
    
    244
    
    
    
    4.709,034
    
    
    
    119
    
    
    
    5.36
    
    
    
    12,708
    
    
    
    166
    
    
    
    5.17
    
    
    
    14,534
    
    
    
    191
    
    
    
    5.23338,130
    
    
    
    3,027
    
    
    
    3.63
    
    
    
    332,355
    
    
    
    3,028
    
    
    
    3.61
    
    
    
    262,807
    
    
    
    2,200
    
    
    
    3.3235,142
    
    
    
    430
    
    
    
    4.97
    
    
    
    43,732
    
    
    
    537
    
    
    
    4.87
    
    
    
    51,314
    
    
    
    629
    
    
    
    4.864,920
    
    
    
    57
    
    
    
    4.72
    
    
    
    5,043
    
    
    
    60
    
    
    
    4.72
    
    
    
    5,190
    
    
    
    63
    
    
    
    4.778,709
    
    
    
    83
    
    
    
    3.86
    
    
    
    9,934
    
    
    
    94
    
    
    
    3.75
    
    
    
    8,951
    
    
    
    82
    
    
    
    3.616,898
    
    
    
    44
    
    
    
    2.54
    
    
    
    6,530
    
    
    
    38
    
    
    
    2.38
    
    
    
    5,575
    
    
    
    30
    
    
    
    2.14141,979
    
    
    
    1,880
    
    
    
    5.35
    
    
    
    139,364
    
    
    
    1,873
    
    
    
    5.35
    
    
    
    80,726
    
    
    
    1,095
    
    
    
    5.41535,778
    
    
    
    5,521
    
    
    
    4.17
    
    
    
    536,958
    
    
    
    5,630
    
    
    
    4.16
    
    
    
    414,563
    
    
    
    4,099
    
    
    
    3.93-
    
    
    
    119
    
    
    
    0.09
    
    
    
    -
    
    
    
    163
    
    
    
    0.13
    
    
    
    -
    
    
    
    144
    
    
    
    0.14535,778
    
    
    
    5,640
    
    
    
    4.26
    
    
    
    536,958
    
    
    
    5,793
    
    
    
    4.29
    
    
    
    414,563
    
    
    
    4,243
    
    
    
    4.0760,976
    
    
    
    
    
    
    
    
    
    
    
    63,025
    
    
    
    
    
    
    
    
    
    
    
    63,55324,955
    
    
    
    
    
    
    
    
    
    
    
    28,979
    
    
    
    
    
    
    
    
    
    
    
    26,90569,320
    
    
    
    
    
    
    
    
    
    
    
    69,725
    
    
    
    
    
    
    
    
    
    
    
    50,143$
    691,029
    
    
    
    
    
    
    
    
    
    
    $
    698,687
    
    
    
    
    
    
    
    
    
    
    $
    555,164$
    10,177
    
    
    
    6.89
    %
    
    
    
    
    
    $
    10,405
    
    
    
    6.95
    %
    
    
    
    
    
    $
    7,821
    
    
    
    6.60
    %5,640
    
    
    
    3.85
    
    
    
    
    
    
    
    5,793
    
    
    
    3.86
    
    
    
    
    
    
    
    4,243
    
    
    
    3.57$
    4,537
    
    
    
    3.04
    %
    
    
    
    
    
    $
    4,612
    
    
    
    3.09
    %
    
    
    
    
    
    $
    3,578
    
    
    
    3.03
    %
  67




---



##### 



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




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions, except per share data)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterASSETSCash and due from banks
    
    $
    12,681
    
    
    
    12,065
    
    
    
    12,593
    
    
    
    15,826
    
    
    
    11,850Interest-bearing bank balances
    
    
    4,449
    
    
    
    2,726
    
    
    
    2,591
    
    
    
    2,167
    
    
    
    5,270Federal funds sold and securities purchased under
resale agreements
    
    
    11,995
    
    
    
    11,511
    
    
    
    10,322
    
    
    
    16,923
    
    
    
    18,497Total cash and cash equivalents
    
    
    29,125
    
    
    
    26,302
    
    
    
    25,506
    
    
    
    34,916
    
    
    
    35,617Trading account assets
    
    
    53,969
    
    
    
    49,969
    
    
    
    47,875
    
    
    
    45,529
    
    
    
    43,904Securities
    
    
    111,827
    
    
    
    106,184
    
    
    
    106,841
    
    
    
    108,619
    
    
    
    106,553Loans, net of unearned income
    
    
    449,206
    
    
    
    429,120
    
    
    
    421,663
    
    
    
    420,158
    
    
    
    290,759Allowance for loan losses
    
    
    (3,505
    )
    
    
    (3,390
    )
    
    
    (3,378
    )
    
    
    (3,360
    )
    
    
    (3,004
    )Loans, net
    
    
    445,701
    
    
    
    425,730
    
    
    
    418,285
    
    
    
    416,798
    
    
    
    287,755Loans held for sale
    
    
    21,431
    
    
    
    17,733
    
    
    
    15,032
    
    
    
    12,568
    
    
    
    9,039Premises and equipment
    
    
    6,002
    
    
    
    6,080
    
    
    
    6,058
    
    
    
    6,141
    
    
    
    5,536Due from customers on acceptances
    
    
    1,295
    
    
    
    831
    
    
    
    992
    
    
    
    855
    
    
    
    1,200Goodwill
    
    
    38,848
    
    
    
    38,766
    
    
    
    38,838
    
    
    
    38,379
    
    
    
    23,535Other intangible assets
    
    
    1,380
    
    
    
    1,468
    
    
    
    1,570
    
    
    
    1,635
    
    
    
    1,355Other assets
    
    
    44,590
    
    
    
    42,365
    
    
    
    41,672
    
    
    
    41,681
    
    
    
    45,428Total assets
    
    $
    754,168
    
    
    
    715,428
    
    
    
    702,669
    
    
    
    707,121
    
    
    
    559,922LIABILITIES AND STOCKHOLDERS EQUITYDepositsNoninterest-bearing deposits
    
    
    56,825
    
    
    
    62,112
    
    
    
    63,399
    
    
    
    66,572
    
    
    
    63,880Interest-bearing deposits
    
    
    365,112
    
    
    
    347,918
    
    
    
    341,871
    
    
    
    340,886
    
    
    
    259,418Total deposits
    
    
    421,937
    
    
    
    410,030
    
    
    
    405,270
    
    
    
    407,458
    
    
    
    323,298Short-term borrowings
    
    
    62,714
    
    
    
    52,715
    
    
    
    47,144
    
    
    
    49,157
    
    
    
    58,749Bank acceptances outstanding
    
    
    1,303
    
    
    
    840
    
    
    
    1,004
    
    
    
    863
    
    
    
    1,213Trading account liabilities
    
    
    17,771
    
    
    
    19,319
    
    
    
    17,291
    
    
    
    18,228
    
    
    
    19,553Other liabilities
    
    
    18,424
    
    
    
    18,080
    
    
    
    16,741
    
    
    
    20,004
    
    
    
    16,513Long-term debt
    
    
    158,584
    
    
    
    142,047
    
    
    
    142,334
    
    
    
    138,594
    
    
    
    86,419Total liabilities
    
    
    680,733
    
    
    
    643,031
    
    
    
    629,784
    
    
    
    634,304
    
    
    
    505,745Minority interest in net assets of consolidated subsidiaries
    
    
    3,295
    
    
    
    3,131
    
    
    
    3,099
    
    
    
    3,101
    
    
    
    2,997STOCKHOLDERS EQUITYPreferred stock, Class A, 40 million shares, no par value;
10 million shares, no par value; none issued
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Dividend Equalization Preferred shares, no par value,
97 million shares issued and outstanding at September 30, 2007
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Non-Cumulative Perpetual Class A Preferred Stock,
Series I, $100,000 liquidation preference per share,
25,010 shares authorized
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -Common stock, $3.33-1/3 par value; authorized 3 billion
shares, outstanding 1.901 billion shares at September 30, 2007
    
    
    6,336
    
    
    
    6,343
    
    
    
    6,378
    
    
    
    6,347
    
    
    
    5,271Paid-in capital
    
    
    51,885
    
    
    
    51,851
    
    
    
    51,964
    
    
    
    51,746
    
    
    
    34,276Retained earnings
    
    
    14,670
    
    
    
    14,335
    
    
    
    13,378
    
    
    
    13,723
    
    
    
    12,696Accumulated other comprehensive income, net
    
    
    (2,751
    )
    
    
    (3,263
    )
    
    
    (1,934
    )
    
    
    (2,100
    )
    
    
    (1,063
    )Total stockholders equity
    
    
    70,140
    
    
    
    69,266
    
    
    
    69,786
    
    
    
    69,716
    
    
    
    51,180Total liabilities and stockholders equity
    
    $
    754,168
    
    
    
    715,428
    
    
    
    702,669
    
    
    
    707,121
    
    
    
    559,922
 69




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME
 
 2007
    
    
    2006Third
    
    
    Second
    
    
    First
    
    
    Fourth
    
    
    Third(In millions, except per share data)
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    Quarter
    
    
    QuarterINTEREST INCOMEInterest and fees on loans
    
    $
    7,937
    
    
    
    7,723
    
    
    
    7,618
    
    
    
    7,736
    
    
    
    5,096Interest and dividends on securities
    
    
    1,529
    
    
    
    1,474
    
    
    
    1,478
    
    
    
    1,491
    
    
    
    1,692Trading account interest
    
    
    566
    
    
    
    506
    
    
    
    433
    
    
    
    462
    
    
    
    401Other interest income
    
    
    799
    
    
    
    647
    
    
    
    611
    
    
    
    681
    
    
    
    595Total interest income
    
    
    10,831
    
    
    
    10,350
    
    
    
    10,140
    
    
    
    10,370
    
    
    
    7,784INTEREST EXPENSEInterest on deposits
    
    
    3,334
    
    
    
    3,180
    
    
    
    3,014
    
    
    
    3,067
    
    
    
    2,238Interest on short-term borrowings
    
    
    801
    
    
    
    706
    
    
    
    669
    
    
    
    781
    
    
    
    860Interest on long-term debt
    
    
    2,145
    
    
    
    2,015
    
    
    
    1,957
    
    
    
    1,945
    
    
    
    1,145Total interest expense
    
    
    6,280
    
    
    
    5,901
    
    
    
    5,640
    
    
    
    5,793
    
    
    
    4,243Net interest income
    
    
    4,551
    
    
    
    4,449
    
    
    
    4,500
    
    
    
    4,577
    
    
    
    3,541Provision for credit losses
    
    
    408
    
    
    
    179
    
    
    
    177
    
    
    
    206
    
    
    
    108Net interest income after provision for credit losses
    
    
    4,143
    
    
    
    4,270
    
    
    
    4,323
    
    
    
    4,371
    
    
    
    3,433FEE AND OTHER INCOMEService charges
    
    
    689
    
    
    
    667
    
    
    
    614
    
    
    
    646
    
    
    
    638Other banking fees
    
    
    437
    
    
    
    504
    
    
    
    416
    
    
    
    452
    
    
    
    427Commissions
    
    
    600
    
    
    
    649
    
    
    
    659
    
    
    
    633
    
    
    
    562Fiduciary and asset management fees
    
    
    993
    
    
    
    981
    
    
    
    920
    
    
    
    856
    
    
    
    823Advisory, underwriting and other investment banking fees
    
    
    393
    
    
    
    454
    
    
    
    407
    
    
    
    433
    
    
    
    292Trading account profits (losses)
    
    
    (437
    )
    
    
    195
    
    
    
    128
    
    
    
    29
    
    
    
    123Principal investing
    
    
    372
    
    
    
    298
    
    
    
    48
    
    
    
    142
    
    
    
    91Securities gains (losses)
    
    
    (34
    )
    
    
    23
    
    
    
    53
    
    
    
    47
    
    
    
    94Other income
    
    
    (252
    )
    
    
    435
    
    
    
    456
    
    
    
    742
    
    
    
    415Total fee and other income
    
    
    2,761
    
    
    
    4,206
    
    
    
    3,701
    
    
    
    3,980
    
    
    
    3,465NONINTEREST EXPENSESalaries and employee benefits
    
    
    2,628
    
    
    
    3,122
    
    
    
    2,972
    
    
    
    3,023
    
    
    
    2,531Occupancy
    
    
    325
    
    
    
    331
    
    
    
    312
    
    
    
    323
    
    
    
    284Equipment
    
    
    283
    
    
    
    309
    
    
    
    307
    
    
    
    314
    
    
    
    291Advertising
    
    
    62
    
    
    
    70
    
    
    
    61
    
    
    
    47
    
    
    
    54Communications and supplies
    
    
    175
    
    
    
    180
    
    
    
    173
    
    
    
    166
    
    
    
    158Professional and consulting fees
    
    
    196
    
    
    
    209
    
    
    
    177
    
    
    
    239
    
    
    
    200Other intangible amortization
    
    
    92
    
    
    
    103
    
    
    
    118
    
    
    
    141
    
    
    
    92Merger-related and restructuring expenses
    
    
    36
    
    
    
    32
    
    
    
    10
    
    
    
    49
    
    
    
    38Sundry expense
    
    
    692
    
    
    
    500
    
    
    
    458
    
    
    
    629
    
    
    
    397Total noninterest expense
    
    
    4,489
    
    
    
    4,856
    
    
    
    4,588
    
    
    
    4,931
    
    
    
    4,045Minority interest in income of consolidated subsidiaries
    
    
    189
    
    
    
    139
    
    
    
    136
    
    
    
    125
    
    
    
    104Income from continuing operations before income taxes
    
    
    2,226
    
    
    
    3,481
    
    
    
    3,300
    
    
    
    3,295
    
    
    
    2,749Income taxes
    
    
    608
    
    
    
    1,140
    
    
    
    998
    
    
    
    1,040
    
    
    
    872Income from continuing operations
    
    
    1,618
    
    
    
    2,341
    
    
    
    2,302
    
    
    
    2,255
    
    
    
    1,877Discontinued operations, net of income taxes
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    46
    
    
    
    -Net income
    
    $
    1,618
    
    
    
    2,341
    
    
    
    2,302
    
    
    
    2,301
    
    
    
    1,877PER COMMON SHARE DATABasic earningsIncome from continuing operations
    
    $
    0.86
    
    
    
    1.24
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.19Net income
    
    
    0.86
    
    
    
    1.24
    
    
    
    1.22
    
    
    
    1.22
    
    
    
    1.19Diluted earningsIncome from continuing operations
    
    
    0.85
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.18
    
    
    
    1.17Net income
    
    
    0.85
    
    
    
    1.22
    
    
    
    1.20
    
    
    
    1.20
    
    
    
    1.17Cash dividends
    
    $
    0.64
    
    
    
    0.56
    
    
    
    0.56
    
    
    
    0.56
    
    
    
    0.56AVERAGE COMMON SHARESBasic
    
    
    1,885
    
    
    
    1,891
    
    
    
    1,894
    
    
    
    1,889
    
    
    
    1,573Diluted
    
    
    1,910
    
    
    
    1,919
    
    
    
    1,925
    
    
    
    1,922
    
    
    
    1,600
 70




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 CONSOLIDATED FINANCIAL STATEMENTS
 
 Consolidated Balance Sheets  September 30, 2007 and December 31, 2006 (Unaudited)
    
    
    72Consolidated Statements of Income   Three and Nine Months Ended September 30, 2007 and 2006 (Unaudited)
    
    
    73Consolidated Statements of Cash Flows   Nine Months Ended September 30, 2007 and 2006 (Unaudited)
    
    
    74Notes to Consolidated Financial Statements (Unaudited)Note 1: Summary of Significant Accounting Policies and Other Matters
    
    
    75Note 2: Securities
    
    
    78Note 3: Variable Interest Entities and Servicing Assets
    
    
    80Note 4: Share-Based Payments
    
    
    81Note 5: Comprehensive Income
    
    
    82Note 6: Business Segments
    
    
    83Note 7: Basic and Diluted Earnings Per Common Share
    
    
    86Note 8: Income Taxes
    
    
    87Note 9: Derivatives
    
    
    88Note 10: Guarantees
    
    
    92
 71




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS (Unaudited)
 
 September 30,
    
    
    December 31,(In millions, except per share data)
    
    2007
    
    
    2006ASSETSCash and due from banks
    
    $
    12,681
    
    
    
    15,826Interest-bearing bank balances
    
    
    4,449
    
    
    
    2,167Federal funds sold and securities purchased under
resale agreements
    
    
    11,995
    
    
    
    16,923Total cash and cash equivalents
    
    
    29,125
    
    
    
    34,916Trading account assets
    
    
    53,969
    
    
    
    45,529Securities
    
    
    111,827
    
    
    
    108,619Loans, net of unearned income
    
    
    449,206
    
    
    
    420,158Allowance for loan losses
    
    
    (3,505
    )
    
    
    (3,360
    )Loans, net
    
    
    445,701
    
    
    
    416,798Loans held for sale
    
    
    21,431
    
    
    
    12,568Premises and equipment
    
    
    6,002
    
    
    
    6,141Due from customers on acceptances
    
    
    1,295
    
    
    
    855Goodwill
    
    
    38,848
    
    
    
    38,379Other intangible assets
    
    
    1,380
    
    
    
    1,635Other assets
    
    
    44,590
    
    
    
    41,681Total assets
    
    $
    754,168
    
    
    
    707,121LIABILITIES AND STOCKHOLDERS EQUITYDepositsNoninterest-bearing deposits
    
    
    56,825
    
    
    
    66,572Interest-bearing deposits
    
    
    365,112
    
    
    
    340,886Total deposits
    
    
    421,937
    
    
    
    407,458Short-term borrowings
    
    
    62,714
    
    
    
    49,157Bank acceptances outstanding
    
    
    1,303
    
    
    
    863Trading account liabilities
    
    
    17,771
    
    
    
    18,228Other liabilities
    
    
    18,424
    
    
    
    20,004Long-term debt
    
    
    158,584
    
    
    
    138,594Total liabilities
    
    
    680,733
    
    
    
    634,304Minority interest in net assets of consolidated subsidiaries
    
    
    3,295
    
    
    
    3,101STOCKHOLDERS EQUITYDividend Equalization Preferred shares, no par value,
97 million shares issued and outstanding at September 30, 2007
    
    
    -
    
    
    
    -Non-Cumulative Perpetual Class A Preferred Stock, Series I,
$100,000 liquidation preference per share, 25,010 shares authorized
    
    
    -
    
    
    
    -Common stock, $3.33-1/3 par value; authorized 3 billion
shares, outstanding 1.901 billion shares at September 30, 2007
    
    
    6,336
    
    
    
    6,347Paid-in capital
    
    
    51,885
    
    
    
    51,746Retained earnings
    
    
    14,670
    
    
    
    13,723Accumulated other comprehensive income, net
    
    
    (2,751
    )
    
    
    (2,100
    )Total stockholders equity
    
    
    70,140
    
    
    
    69,716Total liabilities and stockholders equity
    
    $
    754,168
    
    
    
    707,121
  72




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006INTEREST INCOMEInterest and fees on loans
    
    $
    7,937
    
    
    
    5,096
    
    
    
    23,278
    
    
    
    14,240Interest and dividends on securities
    
    
    1,529
    
    
    
    1,692
    
    
    
    4,481
    
    
    
    4,942Trading account interest
    
    
    566
    
    
    
    401
    
    
    
    1,505
    
    
    
    1,113Other interest income
    
    
    799
    
    
    
    595
    
    
    
    2,057
    
    
    
    1,600Total interest income
    
    
    10,831
    
    
    
    7,784
    
    
    
    31,321
    
    
    
    21,895INTEREST EXPENSEInterest on deposits
    
    
    3,334
    
    
    
    2,238
    
    
    
    9,528
    
    
    
    6,052Interest on short-term borrowings
    
    
    801
    
    
    
    860
    
    
    
    2,176
    
    
    
    2,333Interest on long-term debt
    
    
    2,145
    
    
    
    1,145
    
    
    
    6,117
    
    
    
    2,838Total interest expense
    
    
    6,280
    
    
    
    4,243
    
    
    
    17,821
    
    
    
    11,223Net interest income
    
    
    4,551
    
    
    
    3,541
    
    
    
    13,500
    
    
    
    10,672Provision for credit losses
    
    
    408
    
    
    
    108
    
    
    
    764
    
    
    
    228Net interest income after provision for credit losses
    
    
    4,143
    
    
    
    3,433
    
    
    
    12,736
    
    
    
    10,444FEE AND OTHER INCOMEService charges
    
    
    689
    
    
    
    638
    
    
    
    1,970
    
    
    
    1,834Other banking fees
    
    
    437
    
    
    
    427
    
    
    
    1,357
    
    
    
    1,304Commissions
    
    
    600
    
    
    
    562
    
    
    
    1,908
    
    
    
    1,773Fiduciary and asset management fees
    
    
    993
    
    
    
    823
    
    
    
    2,894
    
    
    
    2,392Advisory, underwriting and other investment banking fees
    
    
    393
    
    
    
    292
    
    
    
    1,254
    
    
    
    912Trading account profits (losses)
    
    
    (437
    )
    
    
    123
    
    
    
    (114
    )
    
    
    506Principal investing
    
    
    372
    
    
    
    91
    
    
    
    718
    
    
    
    383Securities gains (losses)
    
    
    (34
    )
    
    
    94
    
    
    
    42
    
    
    
    71Other income
    
    
    (252
    )
    
    
    415
    
    
    
    639
    
    
    
    1,390Total fee and other income
    
    
    2,761
    
    
    
    3,465
    
    
    
    10,668
    
    
    
    10,565NONINTEREST EXPENSESalaries and employee benefits
    
    
    2,628
    
    
    
    2,531
    
    
    
    8,722
    
    
    
    7,880Occupancy
    
    
    325
    
    
    
    284
    
    
    
    968
    
    
    
    850Equipment
    
    
    283
    
    
    
    291
    
    
    
    899
    
    
    
    870Advertising
    
    
    62
    
    
    
    54
    
    
    
    193
    
    
    
    157Communications and supplies
    
    
    175
    
    
    
    158
    
    
    
    528
    
    
    
    487Professional and consulting fees
    
    
    196
    
    
    
    200
    
    
    
    582
    
    
    
    551Other intangible amortization
    
    
    92
    
    
    
    92
    
    
    
    313
    
    
    
    282Merger-related and restructuring expenses
    
    
    36
    
    
    
    38
    
    
    
    78
    
    
    
    130Sundry expense
    
    
    692
    
    
    
    397
    
    
    
    1,650
    
    
    
    1,338Total noninterest expense
    
    
    4,489
    
    
    
    4,045
    
    
    
    13,933
    
    
    
    12,545Minority interest in income of consolidated subsidiaries
    
    
    189
    
    
    
    104
    
    
    
    464
    
    
    
    289Income before income taxes
    
    
    2,226
    
    
    
    2,749
    
    
    
    9,007
    
    
    
    8,175Income taxes
    
    
    608
    
    
    
    872
    
    
    
    2,746
    
    
    
    2,685Net income
    
    $
    1,618
    
    
    
    1,877
    
    
    
    6,261
    
    
    
    5,490PER COMMON SHARE DATABasic earnings
    
    $
    0.86
    
    
    
    1.19
    
    
    
    3.31
    
    
    
    3.49Diluted earnings
    
    
    0.85
    
    
    
    1.17
    
    
    
    3.26
    
    
    
    3.43Cash dividends
    
    $
    0.64
    
    
    
    0.56
    
    
    
    1.76
    
    
    
    1.58AVERAGE COMMON SHARESBasic
    
    
    1,885
    
    
    
    1,573
    
    
    
    1,890
    
    
    
    1,571Diluted
    
    
    1,910
    
    
    
    1,600
    
    
    
    1,918
    
    
    
    1,600
  73




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
 
 Nine Months EndedSeptember 30,(In millions)
    
    2007
    
    
    2006OPERATING ACTIVITIESNet income
    
    $
    6,261
    
    
    
    5,490Adjustments to reconcile net income to net cash provided (used) by operating
activitiesAccretion and amortization of securities discounts and premiums, net
    
    
    (65
    )
    
    
    (24
    )Provision for credit losses
    
    
    764
    
    
    
    228Gain on securitization transactions
    
    
    (97
    )
    
    
    (200
    )Gain on sale of mortgage servicing rights
    
    
    (4
    )
    
    
    (23
    )Securities transactions
    
    
    (42
    )
    
    
    (71
    )Depreciation and other amortization
    
    
    1,369
    
    
    
    1,227Trading account assets, net
    
    
    (8,440
    )
    
    
    (1,200
    )Loss on sales of premises and equipment
    
    
    1
    
    
    
    -Contribution to qualified pension plan
    
    
    (270
    )
    
    
    (600
    )Excess income tax benefits from share-based payment arrangements
    
    
    (43
    )
    
    
    (130
    )Loans held for sale, net
    
    
    (6,952
    )
    
    
    (3,137
    )Deferred interest on certain loans
    
    
    (1,087
    )
    
    
    -Other assets, net
    
    
    (3,148
    )
    
    
    (7,890
    )Trading account liabilities, net
    
    
    (457
    )
    
    
    1,955Other liabilities, net
    
    
    (1,293
    )
    
    
    1,337Net cash used by operating activities
    
    
    (13,503
    )
    
    
    (3,038
    )INVESTING ACTIVITIESIncrease (decrease) in cash realized fromSales of securities
    
    
    9,365
    
    
    
    30,566Maturities of securities
    
    
    33,504
    
    
    
    14,186Purchases of securities
    
    
    (45,876
    )
    
    
    (32,958
    )Origination of loans, net
    
    
    (31,488
    )
    
    
    (20,241
    )Sales of premises and equipment
    
    
    218
    
    
    
    241Purchases of premises and equipment
    
    
    (720
    )
    
    
    (1,383
    )Goodwill and other intangible assets
    
    
    (527
    )
    
    
    (98
    )Purchase of bank-owned separate account life insurance, net
    
    
    (607
    )
    
    
    (1,742
    )Cash equivalents acquired, net of purchases of banking organizations
    
    
    -
    
    
    
    997Net cash used by investing activities
    
    
    (36,131
    )
    
    
    (10,432
    )FINANCING ACTIVITIESIncrease (decrease) in cash realized fromIncrease (decrease) in deposits, net
    
    
    14,479
    
    
    
    (3,837
    )Securities sold under repurchase agreements and other short-term borrowings, net
    
    
    13,557
    
    
    
    (3,204
    )Issuances of long-term debt
    
    
    48,267
    
    
    
    30,614Payments of long-term debt
    
    
    (28,277
    )
    
    
    (6,139
    )Issuances of common stock, net
    
    
    323
    
    
    
    547Purchases of common stock
    
    
    (1,197
    )
    
    
    (4,124
    )Excess income tax benefits from share-based payment arrangements
    
    
    43
    
    
    
    130Cash dividends paid
    
    
    (3,352
    )
    
    
    (2,525
    )Net cash provided by financing activities
    
    
    43,843
    
    
    
    11,462Decrease in cash and cash equivalents
    
    
    (5,791
    )
    
    
    (2,008
    )Cash and cash equivalents, beginning of year
    
    
    34,916
    
    
    
    37,625Cash and cash equivalents, end of period
    
    $
    29,125
    
    
    
    35,617NONCASH ITEMSTransfer to securities from loans resulting from securitizations
    
    $
    1,119
    
    
    
    2,422Transfer to securities from loans held for sale resulting from securitizations
    
    
    -
    
    
    
    67Transfer to loans from loans held for sale
    
    
    (1,911
    )
    
    
    462Cumulative effect of accounting changes, net of income taxes
    
    
    (1,447
    )
    
    
    41Issuance of common stock for purchase accounting acquisitions
    
    $
    -
    
    
    
    3,963
  74




---



##### 



WACHOVIA CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
 NOTE
1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND OTHER MATTERS
 GENERAL
    BUSINESS
COMBINATIONS
  UNFUNDED
COMMITMENTS FOR LOANS TO BE SOLD
  PERSONNEL
EXPENSE AND RETIREMENT BENEFITS
   OtherPostretirementQualified Pension
    
    
    Nonqualified Pension
    
    
    BenefitsNine Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,(In millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006RETIREMENT BENEFIT COSTSService cost
    
    $
    138
    
    
    
    146
    
    
    
    2
    
    
    
    3
    
    
    
    3
    
    
    
    3Interest cost
    
    
    197
    
    
    
    188
    
    
    
    16
    
    
    
    19
    
    
    
    33
    
    
    
    35Expected return on plan assets
    
    
    (369
    )
    
    
    (319
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Amortization of prior service cost
    
    
    (20
    )
    
    
    (20
    )
    
    
    
    
    
    
    1
    
    
    
    (6
    )
    
    
    (6
    )Amortization of actuarial losses
    
    
    91
    
    
    
    104
    
    
    
    6
    
    
    
    9
    
    
    
    
    
    
    
    4Special and/or contractual termination benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    
    
    
    
    Net retirement benefit costs
    
    $
    37
    
    
    
    99
    
    
    
    24
    
    
    
    49
    
    
    
    28
    
    
    
    34
  75




---



##### 



OTHER
INCOME
  CORRECTION
OF ACCOUNTING ERRORS
  NEW
ACCOUNTING PRONOUNCEMENTS
       76




---



##### 



RECLASSIFICATIONS
  SUBSEQUENT
EVENTS
    77




---



##### 



NOTE 2: SECURITIES
 September 30, 2007Average1 Year
    
    
    1-5
    
    
    5-10
    
    
    After 10
    
    
    
    
    
    
    Gross Unrealized
    
    
    Amortized
    
    
    Maturity(In millions)
    
    or Less
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    Total
    
    
    Gains
    
    
    Losses
    
    
    Cost
    
    
    in YearsMARKET VALUEU.S. Treasury
    
    $
    432
    
    
    
    171
    
    
    
    155
    
    
    
    41
    
    
    
    799
    
    
    
    1
    
    
    
    5
    
    
    
    803
    
    
    
    3.11Mortgage-backed securities,
principally obligations of U.S. Government agencies
and sponsored entities
    
    
    357
    
    
    
    17,575
    
    
    
    48,334
    
    
    
    72
    
    
    
    66,338
    
    
    
    82
    
    
    
    1,665
    
    
    
    67,921
    
    
    
    6.61Asset-backedResidual interests
from securitizations
    
    
    33
    
    
    
    299
    
    
    
    171
    
    
    
    17
    
    
    
    520
    
    
    
    117
    
    
    
    16
    
    
    
    419
    
    
    
    3.78Retained bonds
from securitizations
    
    
    2,155
    
    
    
    239
    
    
    
    112
    
    
    
    -
    
    
    
    2,506
    
    
    
    9
    
    
    
    35
    
    
    
    2,532
    
    
    
    1.34Collateralized mortgage
obligations
    
    
    619
    
    
    
    7,797
    
    
    
    3,944
    
    
    
    635
    
    
    
    12,995
    
    
    
    82
    
    
    
    116
    
    
    
    13,029
    
    
    
    4.64Commercial mortgage-backed
    
    
    669
    
    
    
    1,147
    
    
    
    1,412
    
    
    
    26
    
    
    
    3,254
    
    
    
    91
    
    
    
    50
    
    
    
    3,213
    
    
    
    4.62Other
    
    
    1,002
    
    
    
    2,770
    
    
    
    811
    
    
    
    67
    
    
    
    4,650
    
    
    
    9
    
    
    
    65
    
    
    
    4,706
    
    
    
    3.33State, county and municipal
    
    
    57
    
    
    
    569
    
    
    
    606
    
    
    
    2,250
    
    
    
    3,482
    
    
    
    151
    
    
    
    18
    
    
    
    3,349
    
    
    
    14.00Sundry
    
    
    1,960
    
    
    
    1,635
    
    
    
    5,783
    
    
    
    7,905
    
    
    
    17,283
    
    
    
    90
    
    
    
    656
    
    
    
    17,849
    
    
    
    10.00Total market value
    
    $
    7,284
    
    
    
    32,202
    
    
    
    61,328
    
    
    
    11,013
    
    
    
    111,827
    
    
    
    632
    
    
    
    2,626
    
    
    
    113,821
    
    
    
    6.73MARKET VALUEDebt securities
    
    $
    7,284
    
    
    
    32,202
    
    
    
    61,328
    
    
    
    9,171
    
    
    
    109,985
    
    
    
    573
    
    
    
    2,543
    
    
    
    111,955Equity securities
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    1,842
    
    
    
    1,842
    
    
    
    59
    
    
    
    83
    
    
    
    1,866Total market value
    
    $
    7,284
    
    
    
    32,202
    
    
    
    61,328
    
    
    
    11,013
    
    
    
    111,827
    
    
    
    632
    
    
    
    2,626
    
    
    
    113,821AMORTIZED COSTDebt securities
    
    $
    7,212
    
    
    
    32,427
    
    
    
    62,930
    
    
    
    9,386
    
    
    
    111,955Equity securities
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    1,866
    
    
    
    1,866Total amortized cost
    
    $
    7,212
    
    
    
    32,427
    
    
    
    62,930
    
    
    
    11,252
    
    
    
    113,821WEIGHTED AVERAGE YIELDU.S. Treasury
    
    
    4.89
    %
    
    
    2.00
    
    
    
    2.75
    
    
    
    4.96
    
    
    
    3.85Mortgage-backed securities,
principally obligations of
U.S. Government agencies
and sponsored entities
    
    
    4.69
    
    
    
    5.03
    
    
    
    5.38
    
    
    
    5.83
    
    
    
    5.29Asset-backed 
Residual interests
from securitizations
    
    
    85.31
    
    
    
    15.20
    
    
    
    20.83
    
    
    
    44.61
    
    
    
    19.62Retained bonds
from securitizations
    
    
    6.34
    
    
    
    6.71
    
    
    
    8.35
    
    
    
    -
    
    
    
    6.48Collateralized mortgage
obligations
    
    
    5.13
    
    
    
    5.86
    
    
    
    5.66
    
    
    
    5.89
    
    
    
    5.77Commercial mortgage-backed
    
    
    7.99
    
    
    
    8.03
    
    
    
    5.15
    
    
    
    11.28
    
    
    
    6.75Other
    
    
    6.62
    
    
    
    5.68
    
    
    
    6.51
    
    
    
    7.23
    
    
    
    6.05State, county and municipal
    
    
    8.89
    
    
    
    7.92
    
    
    
    7.97
    
    
    
    6.62
    
    
    
    7.10Sundry
    
    
    5.72
    
    
    
    5.10
    
    
    
    4.64
    
    
    
    5.24
    
    
    
    5.08Consolidated
    
    
    6.24
    %
    
    
    5.51
    
    
    
    5.40
    
    
    
    5.60
    
    
    
    5.51
 78




---



##### 



79




---



##### 



NOTE 3: VARIABLE INTEREST ENTITIES AND SERVICING ASSETS
 VARIABLE
INTEREST ENTITIES
    SERVICING
ASSETS
    Nine Months Ended September 30, 2007Servicing AssetsFair Value
    
    
    Amortized CostFixed RateOriginated
    
    
    CommercialResidential
    
    
    Mortgage-(In millions)
    
    Mortgages
    
    
    Backed
    
    
    Other
    
    
    TotalBalance, December 31, 2006
    
    $
    326
    
    
    
    524
    
    
    
    224
    
    
    
    1,074Fair value of servicing assets purchased, assumed or
originated, or retained from securitizations
    
    
    137
    
    
    
    327
    
    
    
    35
    
    
    
    499Servicing sold or otherwise disposed of
    
    
    (6
    )
    
    
    
    
    
    
    (1
    )
    
    
    (7
    )Change in fair value due to changes in model inputs
and/or assumptions
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    17Other changes in fair value, primarily from fees earned
    
    
    (53
    )
    
    
    
    
    
    
    (1
    )
    
    
    (54
    )Amortization of servicing assets
    
    
    
    
    
    
    (99
    )
    
    
    (37
    )
    
    
    (136
    )Balance, September 30, 2007
    
    $
    421
    
    
    
    752
    
    
    
    220
    
    
    
    1,393FAIR VALUEDecember 31, 2006
    
    $
    326
    
    
    
    725
    
    
    
    268
    
    
    
    1,319September 30, 2007
    
    $
    421
    
    
    
    976
    
    
    
    253
    
    
    
    1,650
 80




---



##### 



NOTE 4: SHARE-BASED PAYMENTS
      81




---



##### 



September 30, 2007Weighted-Average(Options and shares in thousands)
    
    Number
    
    
    Price (a)STOCK OPTIONSOptions outstanding, beginning of period
    
    
    137,697
    
    
    $
    39.87Granted
    
    
    4,637
    
    
    
    58.19Exercised
    
    
    (12,892
    )
    
    
    32.76Expired
    
    
    (315
    )
    
    
    53.14Forfeited
    
    
    (903
    )
    
    
    51.15Options outstanding, end of period
    
    
    128,224
    
    
    $
    41.13Options vested and expected to vest, end of period
    
    
    126,322
    
    
    $
    40.96Options exercisable, end of period
    
    
    100,861
    
    
    $
    38.34RESTRICTED STOCKUnvested shares, beginning of period
    
    
    14,303
    
    
    $
    52.38Granted
    
    
    8,232
    
    
    
    58.03Vested
    
    
    (6,057
    )
    
    
    51.67Forfeited
    
    
    (634
    )
    
    
    55.26Unvested shares, end of period
    
    
    15,844
    
    
    $
    55.47
  
 
 
 NOTE 5: COMPREHENSIVE INCOME
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006COMPREHENSIVE INCOMENet income
    
    $
    1,618
    
    
    
    1,877
    
    
    
    6,261
    
    
    
    5,490OTHER COMPREHENSIVE INCOMEUnamortized gains and losses under employee benefit plans
    
    
    16
    
    
    
    -
    
    
    
    47
    
    
    
    -Net unrealized gains (losses) on debt and equity securities
    
    
    493
    
    
    
    1,389
    
    
    
    (690
    )
    
    
    (346
    )Net unrealized gains (losses) on derivative financial instruments (a)
    
    
    3
    
    
    
    63
    
    
    
    (8
    )
    
    
    56Total comprehensive income
    
    $
    2,130
    
    
    
    3,329
    
    
    
    5,610
    
    
    
    5,200
  82




---



##### 



NOTE 6: BUSINESS SEGMENTS (a)
     Three Months Ended September 30, 2007Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (c)
    
    
    TotalCONSOLIDATEDNet interest income (b)
    
    $
    3,486
    
    
    
    183
    
    
    
    837
    
    
    
    271
    
    
    
    (193
    )
    
    
    (33
    )
    
    
    4,551Fee and other income
    
    
    969
    
    
    
    185
    
    
    
    21
    
    
    
    1,408
    
    
    
    178
    
    
    
    -
    
    
    
    2,761Intersegment revenue
    
    
    45
    
    
    
    4
    
    
    
    (39
    )
    
    
    (8
    )
    
    
    (2
    )
    
    
    -
    
    
    
    -Total revenue (b)
    
    
    4,500
    
    
    
    372
    
    
    
    819
    
    
    
    1,671
    
    
    
    (17
    )
    
    
    (33
    )
    
    
    7,312Provision for credit losses
    
    
    214
    
    
    
    6
    
    
    
    1
    
    
    
    -
    
    
    
    187
    
    
    
    -
    
    
    
    408Noninterest expense
    
    
    2,015
    
    
    
    252
    
    
    
    655
    
    
    
    1,238
    
    
    
    293
    
    
    
    36
    
    
    
    4,489Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    189
    
    
    
    -
    
    
    
    189Income taxes (benefits)
    
    
    817
    
    
    
    42
    
    
    
    49
    
    
    
    158
    
    
    
    (443
    )
    
    
    (15
    )
    
    
    608Tax-equivalent adjustment
    
    
    11
    
    
    
    -
    
    
    
    9
    
    
    
    -
    
    
    
    13
    
    
    
    (33
    )
    
    
    -Net income (loss)
    
    $
    1,443
    
    
    
    72
    
    
    
    105
    
    
    
    275
    
    
    
    (256
    )
    
    
    (21
    )
    
    
    1,618Lending commitments
    
    $
    131,267
    
    
    
    7,007
    
    
    
    138,239
    
    
    
    980
    
    
    
    529
    
    
    
    -
    
    
    
    278,022Average loans, net
    
    
    297,295
    
    
    
    21,492
    
    
    
    82,942
    
    
    
    2,142
    
    
    
    25,930
    
    
    
    -
    
    
    
    429,801Average core deposits
    
    $
    290,693
    
    
    
    16,638
    
    
    
    37,040
    
    
    
    31,489
    
    
    
    3,149
    
    
    
    -
    
    
    
    379,009
 83




---



##### 



Three Months Ended September 30, 2006Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (c)
    
    
    TotalCONSOLIDATEDNet interest income (b)
    
    $
    2,529
    
    
    
    176
    
    
    
    709
    
    
    
    253
    
    
    
    (89
    )
    
    
    (37
    )
    
    
    3,541Fee and other income
    
    
    886
    
    
    
    197
    
    
    
    998
    
    
    
    1,217
    
    
    
    167
    
    
    
    -
    
    
    
    3,465Intersegment revenue
    
    
    36
    
    
    
    3
    
    
    
    (31
    )
    
    
    (8
    )
    
    
    -
    
    
    
    -
    
    
    
    -Total revenue (b)
    
    
    3,451
    
    
    
    376
    
    
    
    1,676
    
    
    
    1,462
    
    
    
    78
    
    
    
    (37
    )
    
    
    7,006Provision for credit losses
    
    
    120
    
    
    
    2
    
    
    
    (4
    )
    
    
    -
    
    
    
    (10
    )
    
    
    -
    
    
    
    108Noninterest expense
    
    
    1,621
    
    
    
    249
    
    
    
    840
    
    
    
    1,097
    
    
    
    200
    
    
    
    38
    
    
    
    4,045Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    104
    
    
    
    -
    
    
    
    104Income taxes (benefits)
    
    
    614
    
    
    
    46
    
    
    
    298
    
    
    
    133
    
    
    
    (206
    )
    
    
    (13
    )
    
    
    872Tax-equivalent adjustment
    
    
    10
    
    
    
    -
    
    
    
    9
    
    
    
    -
    
    
    
    18
    
    
    
    (37
    )
    
    
    -Net income (loss)
    
    $
    1,086
    
    
    
    79
    
    
    
    533
    
    
    
    232
    
    
    
    (28
    )
    
    
    (25
    )
    
    
    1,877Lending commitments
    
    $
    108,562
    
    
    
    6,481
    
    
    
    121,963
    
    
    
    831
    
    
    
    457
    
    
    
    -
    
    
    
    238,294Average loans, net
    
    
    162,501
    
    
    
    19,237
    
    
    
    70,901
    
    
    
    1,235
    
    
    
    27,236
    
    
    
    -
    
    
    
    281,110Average core deposits
    
    $
    208,705
    
    
    
    16,312
    
    
    
    31,576
    
    
    
    30,114
    
    
    
    4,520
    
    
    
    -
    
    
    
    291,227
 Nine Months Ended September 30, 2007Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (c)
    
    
    TotalCONSOLIDATEDNet interest income (b)
    
    $
    10,308
    
    
    
    543
    
    
    
    2,325
    
    
    
    797
    
    
    
    (365
    )
    
    
    (108
    )
    
    
    13,500Fee and other income
    
    
    2,808
    
    
    
    583
    
    
    
    2,621
    
    
    
    4,354
    
    
    
    302
    
    
    
    -
    
    
    
    10,668Intersegment revenue
    
    
    120
    
    
    
    10
    
    
    
    (104
    )
    
    
    (27
    )
    
    
    1
    
    
    
    -
    
    
    
    -Total revenue (b)
    
    
    13,236
    
    
    
    1,136
    
    
    
    4,842
    
    
    
    5,124
    
    
    
    (62
    )
    
    
    (108
    )
    
    
    24,168Provision for credit losses
    
    
    529
    
    
    
    9
    
    
    
    5
    
    
    
    -
    
    
    
    221
    
    
    
    -
    
    
    
    764Noninterest expense
    
    
    6,017
    
    
    
    765
    
    
    
    2,672
    
    
    
    3,770
    
    
    
    631
    
    
    
    78
    
    
    
    13,933Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    464
    
    
    
    -
    
    
    
    464Income taxes (benefits)
    
    
    2,409
    
    
    
    132
    
    
    
    760
    
    
    
    494
    
    
    
    (1,018
    )
    
    
    (30
    )
    
    
    2,746Tax-equivalent adjustment
    
    
    32
    
    
    
    -
    
    
    
    30
    
    
    
    -
    
    
    
    46
    
    
    
    (108
    )
    
    
    -Net income (loss)
    
    $
    4,249
    
    
    
    230
    
    
    
    1,375
    
    
    
    860
    
    
    
    (406
    )
    
    
    (48
    )
    
    
    6,261Lending commitments
    
    $
    131,267
    
    
    
    7,007
    
    
    
    138,239
    
    
    
    980
    
    
    
    529
    
    
    
    -
    
    
    
    278,022Average loans, net
    
    
    294,327
    
    
    
    20,954
    
    
    
    77,705
    
    
    
    1,789
    
    
    
    27,385
    
    
    
    -
    
    
    
    422,160Average core deposits
    
    $
    288,711
    
    
    
    16,893
    
    
    
    35,876
    
    
    
    31,463
    
    
    
    2,684
    
    
    
    -
    
    
    
    375,627
 84




---



##### 



Nine Months Ended September 30, 2006Net Merger-Corporate
    
    
    
    
    
    
    
    
    
    
    Relatedand
    
    
    
    
    
    
    
    
    
    
    andGeneral
    
    
    Wealth
    
    
    Investment
    
    
    Capital
    
    
    
    
    
    
    Restructuring(Dollars in millions)
    
    Bank
    
    
    Management
    
    
    Bank
    
    
    Management
    
    
    Parent
    
    
    Expenses (c)
    
    
    TotalCONSOLIDATEDNet interest income (b)
    
    $
    7,288
    
    
    
    527
    
    
    
    2,134
    
    
    
    776
    
    
    
    67
    
    
    
    (120
    )
    
    
    10,672Fee and other income
    
    
    2,581
    
    
    
    581
    
    
    
    3,470
    
    
    
    3,644
    
    
    
    289
    
    
    
    -
    
    
    
    10,565Intersegment revenue
    
    
    103
    
    
    
    7
    
    
    
    (89
    )
    
    
    (25
    )
    
    
    4
    
    
    
    -
    
    
    
    -Total revenue (b)
    
    
    9,972
    
    
    
    1,115
    
    
    
    5,515
    
    
    
    4,395
    
    
    
    360
    
    
    
    (120
    )
    
    
    21,237Provision for credit losses
    
    
    278
    
    
    
    4
    
    
    
    (37
    )
    
    
    -
    
    
    
    (17
    )
    
    
    -
    
    
    
    228Noninterest expense
    
    
    4,893
    
    
    
    775
    
    
    
    2,712
    
    
    
    3,350
    
    
    
    685
    
    
    
    130
    
    
    
    12,545Minority interest
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    288
    
    
    
    1
    
    
    
    289Income taxes (benefits)
    
    
    1,721
    
    
    
    123
    
    
    
    996
    
    
    
    380
    
    
    
    (490
    )
    
    
    (45
    )
    
    
    2,685Tax-equivalent adjustment
    
    
    31
    
    
    
    -
    
    
    
    41
    
    
    
    1
    
    
    
    47
    
    
    
    (120
    )
    
    
    -Net income (loss)
    
    $
    3,049
    
    
    
    213
    
    
    
    1,803
    
    
    
    664
    
    
    
    (153
    )
    
    
    (86
    )
    
    
    5,490Lending commitments
    
    $
    108,562
    
    
    
    6,481
    
    
    
    121,963
    
    
    
    831
    
    
    
    457
    
    
    
    -
    
    
    
    238,294Average loans, net
    
    
    155,931
    
    
    
    18,569
    
    
    
    68,268
    
    
    
    1,044
    
    
    
    28,580
    
    
    
    -
    
    
    
    272,392Average core deposits
    
    $
    206,490
    
    
    
    16,575
    
    
    
    31,370
    
    
    
    31,829
    
    
    
    4,766
    
    
    
    -
    
    
    
    291,030
    85




---



##### 



NOTE 7: BASIC AND DILUTED EARNINGS PER COMMON SHARE
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In millions, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    1,618
    
    
    
    1,877
    
    
    
    6,261
    
    
    
    5,490Basic earnings per common share
    
    
    0.86
    
    
    
    1.19
    
    
    
    3.31
    
    
    
    3.49Diluted earnings per common share
    
    $
    0.85
    
    
    
    1.17
    
    
    
    3.26
    
    
    
    3.43Average common shares  basic
    
    
    1,885
    
    
    
    1,573
    
    
    
    1,890
    
    
    
    1,571Common share equivalents and unvested restricted stock
    
    
    25
    
    
    
    27
    
    
    
    28
    
    
    
    29Average common shares  diluted
    
    
    1,910
    
    
    
    1,600
    
    
    
    1,918
    
    
    
    1,600
 86




---



##### 



NOTE 8: INCOME TAXES
    UnrecognizedIncome TaxGross
    
    
    Deferred
    
    
    Benefits, NetFederal,
    
    
    Accrued
    
    
    Unrecognized
    
    
    Federal and
    
    
    of DeferredState and
    
    
    Interest and
    
    
    Income Tax
    
    
    State Income
    
    
    Federal and(In millions)
    
    Foreign Tax
    
    
    Penalties
    
    
    Benefits
    
    
    Tax Benefits
    
    
    State BenefitsBalance at January 1, 2007
    
    $
    2,119
    
    
    
    342
    
    
    
    2,461
    
    
    
    (253
    )
    
    
    2,208Additions for tax positions related to the current year
    
    
    262
    
    
    
    -
    
    
    
    262
    
    
    
    (21
    )
    
    
    241Additions for tax positions related to prior years
    
    
    -
    
    
    
    126
    
    
    
    126
    
    
    
    (41
    )
    
    
    85Reduction for tax positions related to prior years due
to IRS RAR
    
    
    (95
    )
    
    
    (31
    )
    
    
    (126
    )
    
    
    14
    
    
    
    (112
    )Reductions for tax positions related to acquired entities
in prior years, offset to goodwill
    
    
    (102
    )
    
    
    (30
    )
    
    
    (132
    )
    
    
    47
    
    
    
    (85
    )Other reductions for tax positions related to prior years
    
    
    (33
    )
    
    
    (17
    )
    
    
    (50
    )
    
    
    18
    
    
    
    (32
    )Settlements
    
    
    (40
    )
    
    
    (18
    )
    
    
    (58
    )
    
    
    8
    
    
    
    (50
    )Balance at September 30, 2007
    
    
    2,111
    
    
    
    372
    
    
    
    2,483
    
    
    
    (228
    )
    
    
    2,255Less: tax attributable to timing items included above
    
    
    (1,429
    )
    
    
    -
    
    
    
    (1,429
    )
    
    
    -
    
    
    
    (1,429
    )Less: UTBs included above that relate to acquired
entities that would impact goodwill if recognized
    
    
    (57
    )
    
    
    (3
    )
    
    
    (60
    )
    
    
    13
    
    
    
    (47
    )Total UTBs that, if recognized, would impact the
effective income tax rate as of September 30, 2007
    
    $
    625
    
    
    
    369
    
    
    
    994
    
    
    
    (215
    )
    
    
    779
       87




---



##### 



NOTE 9: DERIVATIVES
         88




---



##### 



September 30, 2007AverageNotional
    
    
    Gross Unrealized
    
    
    
    
    
    
    Maturity in(In millions)
    
    Hedged items or Transactions
    
    Amount
    
    
    Gains
    
    
    Losses (b)
    
    
    Equity (c)
    
    
    Years (d)ASSET HEDGES (a)Cash flow hedgesInterest rate swaps-receive fixed
    
    First forecasted interest receipts oncommercial loansPay 1 month LIBOR swaps
    
    1 month LIBOR risk
    
    $
    3,093
    
    
    
    24
    
    
    
    -
    
    
    
    15
    
    
    
    3.28Pay 3 month LIBOR swaps
    
    1 month LIBOR risk
    
    
    12,910
    
    
    
    111
    
    
    
    (87
    )
    
    
    20
    
    
    
    3.87Purchased interest rate floors-
    
    First forecasted interest receipts on 13 month LIBOR
    
    month LIBOR commercial loans
    
    
    18,250
    
    
    
    2
    
    
    
    (9
    )
    
    
    (4
    )
    
    
    1.93Forward purchase commitments
    
    Purchase of mortgage-backed securitiesclassified as available for sale
    
    
    959
    
    
    
    -
    
    
    
    (1
    )
    
    
    (1
    )
    
    
    0.05Fair value hedgesInterest rate swaps-pay fixed/
    
    Individual fixed rate debt securitiesreceive LIBOR
    
    classified as available for sale
    
    
    1,186
    
    
    
    17
    
    
    
    (4
    )
    
    
    -
    
    
    
    13.07Forward sale commitments
    
    Individual fixed rate debt securitiesclassified as available for sale
    
    
    4,500
    
    
    
    25
    
    
    
    (4
    )
    
    
    -
    
    
    
    0.03Total asset hedges
    
    
    
    $
    40,898
    
    
    
    179
    
    
    
    (105
    )
    
    
    30
    
    
    
    2.84LIABILITY HEDGES (a)Cash flow hedgesInterest rate swaps-pay fixed
    
    Proceeds from first forecasted issuanceof repurchase agreements that are partof a rollover strategyReceive 1 month LIBOR swaps
    
    1 month LIBOR risk
    
    
    2,192
    
    
    
    6
    
    
    
    (137
    )
    
    
    (81
    )
    
    
    10.32Interest rate swaps-pay fixed
    
    First forecasted interest payments onlong-term debtReceive 1 month LIBOR swaps
    
    1 month LIBOR risk
    
    
    118
    
    
    
    1
    
    
    
    (2
    )
    
    
    -
    
    
    
    11.11Receive 3 month LIBOR swaps
    
    1 month LIBOR risk
    
    
    6,579
    
    
    
    2
    
    
    
    (93
    )
    
    
    (57
    )
    
    
    2.92Receive 3 month LIBOR swaps
    
    3 month LIBOR risk
    
    
    3,000
    
    
    
    -
    
    
    
    (11
    )
    
    
    (7
    )
    
    
    5.64Receive 6 month LIBOR swaps
    
    6 month LIBOR risk
    
    
    8
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    5.72Purchased options
    
    First forecasted interest payments on 3month LIBOR long-term debtInterest rate caps-3 month LIBOR
    
    
    
    
    62,000
    
    
    
    2
    
    
    
    (8
    )
    
    
    (4
    )
    
    
    0.46Eurodollar
    
    
    
    
    6,000
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    0.25Eurodollar futures
    
    1 month LIBOR risk associated with theproceeds from first forecasted issuanceof repurchase agreements that are partof a rollover strategy
    
    
    10,000
    
    
    
    1
    
    
    
    -
    
    
    
    1
    
    
    
    0.25Eurodollar futures
    
    1 day LIBOR risk associated with theproceeds from first forecasted issuanceof repurchase agreements that are partof a rollover strategy
    
    
    10,000
    
    
    
    1
    
    
    
    -
    
    
    
    1
    
    
    
    0.25Eurodollar futures
    
    First forecasted interest payments on 1month LIBOR long-term debt
    
    
    6,425
    
    
    
    1
    
    
    
    -
    
    
    
    -
    
    
    
    0.25Eurodollar futures
    
    First forecasted interest payments on 3month LIBOR long-term debt
    
    
    63,500
    
    
    
    8
    
    
    
    (10
    )
    
    
    (2
    )
    
    
    0.25Fair value hedgesInterest rate swaps-receive fixed/
    
    Individual fixed rate long-term debtpay floating (e)
    
    issuances
    
    
    31,776
    
    
    
    167
    
    
    
    (446
    )
    
    
    -
    
    
    
    11.18Total liability hedges
    
    
    
    
    201,598
    
    
    
    189
    
    
    
    (707
    )
    
    
    (149
    )
    
    
    2.32Total
    
    
    
    $
    242,496
    
    
    
    368
    
    
    
    (812
    )
    
    
    (119
    )
    
    
    
 89




---



##### 



90




---



##### 



September 30, 20071 Year
    
    
    1-2
    
    
    2-5
    
    
    5-10
    
    
    After 10(In millions)
    
    or Less
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    Years
    
    
    TotalCASH FLOW ASSET HEDGESNotional amount - swaps-receive fixed
    
    $
    1,509
    
    
    
    698
    
    
    
    11,306
    
    
    
    2,490
    
    
    
    -
    
    
    
    16,003Notional amount - other
    
    $
    7,959
    
    
    
    -
    
    
    
    11,250
    
    
    
    -
    
    
    
    -
    
    
    
    19,209Weighted average receive rate (a)
    
    
    3.84
    %
    
    
    5.23
    
    
    
    5.02
    
    
    
    4.71
    
    
    
    -
    
    
    
    4.88Weighted average pay rate (a)
    
    
    5.39
    %
    
    
    5.73
    
    
    
    5.62
    
    
    
    5.36
    
    
    
    -
    
    
    
    5.59Unrealized gain (loss)
    
    $
    (12
    )
    
    
    6
    
    
    
    6
    
    
    
    40
    
    
    
    -
    
    
    
    40FAIR VALUE ASSET HEDGESNotional amount - swaps-pay fixed
    
    $
    -
    
    
    
    -
    
    
    
    95
    
    
    
    322
    
    
    
    769
    
    
    
    1,186Notional amount - other
    
    $
    4,500
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    4,500Weighted average receive rate (a)
    
    
    -
    %
    
    
    -
    
    
    
    3.84
    
    
    
    3.84
    
    
    
    3.86
    
    
    
    3.85Weighted average pay rate (a)
    
    
    -
    %
    
    
    -
    
    
    
    3.35
    
    
    
    3.43
    
    
    
    3.82
    
    
    
    3.68Unrealized gain (loss)
    
    $
    22
    
    
    
    -
    
    
    
    (1
    )
    
    
    (2
    )
    
    
    15
    
    
    
    34CASH FLOW LIABILITY HEDGESNotional amount - swaps-pay fixed
    
    $
    58
    
    
    
    5,083
    
    
    
    3,385
    
    
    
    1,642
    
    
    
    1,729
    
    
    
    11,897Notional amount - other
    
    $
    157,925
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    -
    
    
    
    157,925Weighted average receive rate (a)
    
    
    5.02
    %
    
    
    5.36
    
    
    
    5.58
    
    
    
    5.42
    
    
    
    5.40
    
    
    
    5.44Weighted average pay rate (a)
    
    
    4.17
    %
    
    
    5.13
    
    
    
    5.55
    
    
    
    5.62
    
    
    
    5.82
    
    
    
    5.41Unrealized gain (loss)
    
    $
    (5
    )
    
    
    (42
    )
    
    
    (55
    )
    
    
    (46
    )
    
    
    (91
    )
    
    
    (239
    )FAIR VALUE LIABILITY HEDGESNotional amount - swaps-receive fixed
    
    $
    2,927
    
    
    
    3,625
    
    
    
    5,383
    
    
    
    9,319
    
    
    
    10,522
    
    
    
    31,776Weighted average receive rate (a)
    
    
    4.28
    %
    
    
    4.36
    
    
    
    5.43
    
    
    
    4.87
    
    
    
    5.29
    
    
    
    4.99Weighted average pay rate (a)
    
    
    5.57
    %
    
    
    5.49
    
    
    
    5.48
    
    
    
    5.30
    
    
    
    5.56
    
    
    
    5.46Unrealized gain (loss)
    
    $
    (2
    )
    
    
    6
    
    
    
    65
    
    
    
    9
    
    
    
    (357
    )
    
    
    (279
    )
  91




---



##### 



September 30, 2007Asset
    
    
    Liability(In millions)
    
    Hedges
    
    
    Hedges
    
    
    TotalBalance, December 31, 2006
    
    $
    41,080
    
    
    
    175,856
    
    
    
    216,936Additions
    
    
    37,865
    
    
    
    343,212
    
    
    
    381,077Maturities and amortizations
    
    
    (4,466
    )
    
    
    (125,379
    )
    
    
    (129,845
    )Terminations
    
    
    (14,914
    )
    
    
    (135,961
    )
    
    
    (150,875
    )Redesignations and transfers to trading account assets
    
    
    (18,667
    )
    
    
    (56,130
    )
    
    
    (74,797
    )Balance, September 30, 2007
    
    $
    40,898
    
    
    
    201,598
    
    
    
    242,496
 
 
 NOTE 10: GUARANTEES
 September 30, 2007
    
    
    December 31, 2006Maximum
    
    
    
    
    
    
    MaximumCarrying
    
    
    Risk of
    
    
    Carrying
    
    
    Risk of(In millions)
    
    Amount
    
    
    Loss
    
    
    Amount
    
    
    LossSecurities and other lending indemnifications
    
    $
    -
    
    
    
    62,154
    
    
    
    -
    
    
    
    61,715Standby letters of credit
    
    
    117
    
    
    
    38,845
    
    
    
    115
    
    
    
    37,783Liquidity agreements
    
    
    14
    
    
    
    33,399
    
    
    
    9
    
    
    
    27,610Loans sold with recourse
    
    
    43
    
    
    
    6,070
    
    
    
    50
    
    
    
    7,543Residual value guarantees on operating leases
    
    
    -
    
    
    
    1,173
    
    
    
    -
    
    
    
    1,131Written put options
    
    
    108
    
    
    
    13,274
    
    
    
    90
    
    
    
    11,027Contingent consideration in business combinations
    
    
    -
    
    
    
    242
    
    
    
    -
    
    
    
    167Total guarantees
    
    $
    282
    
    
    
    155,157
    
    
    
    264
    
    
    
    146,976
 92