WACHOVIA PREFERRED FUNDING CORP - FORM 10-Q - EX-99 - SUPPLEMENTARY CONSOLIDATING FINANCIAL INFORMATION (UNAUDITED)

Attached files

file	filename
10-Q - FORM 10-Q - WACHOVIA PREFERRED FUNDING CORP	d10q.htm
EX-32. (B) - SECTION 906 CFO CERTIFICATION - WACHOVIA PREFERRED FUNDING CORP	dex32b.htm
EX-31. (B) - SECTION 302 CFO CERTIFICATION - WACHOVIA PREFERRED FUNDING CORP	dex31b.htm
EX-12. (B) - COMPUTATION OF CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES - WACHOVIA PREFERRED FUNDING CORP	dex12b.htm
EX-32. (A) - SECTION 906 CEO CERTIFICATION - WACHOVIA PREFERRED FUNDING CORP	dex32a.htm
EX-31. (A) - SECTION 302 CEO CERTIFICATION - WACHOVIA PREFERRED FUNDING CORP	dex31a.htm
EX-12. (A) - COMPUTATION OF CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES - WACHOVIA PREFERRED FUNDING CORP	dex12a.htm

Exhibit (99)

WELLS FARGO & COMPANY

and

WACHOVIA CORPORATION

Supplementary Consolidating Financial Information

(Unaudited)

As of September 30, 2009 and

For the Nine Months Ended September 30, 2009 and 2008

The “Bank” as noted herein refers to Wachovia Bank, National Association.

WELLS FARGO & COMPANY

Supplementary Consolidating Balance Sheet Information

(Unaudited)


	September 30, 2009
(In millions)	The Bank			Other Subsidiaries and Eliminations		Wells Fargo Consolidated
ASSETS
Cash and due from banks	$	7,339		9,894		17,233
Federal funds sold, securities purchased under resale agreements and other short-term investments		6,473		11,018		17,491
Trading assets		23,601		19,597		43,198
Securities available for sale		77,111		106,703		183,814
Mortgages held for sale		194		35,344		35,538
Loans held for sale		3,116		2,730		5,846
Loans		341,432		458,520		799,952
Allowance for loan losses		(8,481	)	(15,547	)	(24,028	)

Net loans		332,951		442,973		775,924
Mortgage servicing rights:
Measured at fair value (residential MSRs)		77		14,423		14,500
Amortized		758		404		1,162
Premises and equipment, net		4,349		6,691		11,040
Goodwill		9,095		14,957		24,052
Other assets		52,839		45,988		98,827

Total assets	$	517,903		710,722		1,228,625

LIABILITIES
Noninterest-bearing deposits		65,964		99,296		165,260
Interest-bearing deposits		292,591		338,897		631,488

Total deposits		358,555		438,193		796,748
Short-term borrowings		30,820		(20	)	30,800
Accrued expenses and other liabilities		21,213		36,648		57,861
Long-term debt		39,247		175,045		214,292

Total liabilities		449,835		649,866		1,099,701

EQUITY
Preferred stock		—		31,589		31,589
Common stock		455		7,472		7,927
Additional paid-in capital		61,554		(21,211	)	40,343
Retained earnings		865		40,620		41,485
Cumulative other comprehensive income		3,534		554		4,088
Treasury stock		—		(2,771	)	(2,771	)
Unearned ESOP shares		—		(511	)	(511	)

Total		66,408		55,742		122,150

Noncontrolling interests		1,660		5,114		6,774

Total equity		68,068		60,856		128,924

Total liabilities and stockholders’ equity	$	517,903		710,722		1,228,625

WELLS FARGO & COMPANY

Supplementary Consolidating Income Statement Information

(Unaudited)


	Nine Months Ended September 30, 2009
(In millions)	The Bank		Other Subsidiaries and Eliminations		Wells Fargo Consolidated
INTEREST INCOME
Trading assets	$	243	445		688
Securities available for sale		3,491	5,052		8,543
Mortgages held for sale		14	1,470		1,484
Loans held for sale		97	54		151
Loans		11,209	20,258		31,467
Other interest income		194	55		249

Total interest income		15,248	27,334		42,582

INTEREST EXPENSE
Deposits		1,394	1,467		2,861
Short-term borrowings		146	64		210
Long-term debt		1,235	3,330		4,565
Other interest expense		11	111		122

Total interest expense		2,786	4,972		7,758

Net interest income		12,462	22,362		34,824
Provision for credit losses		3,709	12,046		15,755

Net interest income after provision for credit losses		8,753	10,316		19,069

NONINTEREST INCOME
Service charges on deposit accounts		1,915	2,405		4,320
Trust and investment fees		899	6,231		7,130
Card fees		903	1,819		2,722
Other fees		846	1,968		2,814
Mortgage banking		170	8,447		8,617
Insurance		38	1,606		1,644
Net gains (losses) on debt securities available for sale		72	(309	)	(237	)
Net gains (losses) from equity investments		124	(212	)	(88	)
Other		2,017	2,227		4,244

Total noninterest income		6,984	24,182		31,166

NONINTEREST EXPENSE
Salaries		3,158	7,094		10,252
Commission and incentive compensation		883	5,052		5,935
Employee benefits		836	2,709		3,545
Equipment		657	1,168		1,825
Net occupancy		832	1,525		2,357
Core deposit and other intangibles		1,554	381		1,935
FDIC and other deposit assessments		834	713		1,547
Other		2,202	6,601		8,803

Total noninterest expense		10,956	25,243		36,199

Income before income tax expense		4,781	9,255		14,036
Income tax expense		1,604	2,778		4,382

Net income before noncontrolling interests		3,177	6,477		9,654
Less: Net income from noncontrolling interests		51	151		202

Net income		3,126	6,326		9,452

Net income applicable to common stock	$	3,126	4,470		7,596

WACHOVIA CORPORATION AND SUBSIDIARIES

Supplementary Consolidating Income Statement Information

(Unaudited)


	Nine Months Ended September 30, 2008
(In millions)	The Bank			Wachovia Mortgage, FSB(a)		Other Subsidiaries and Eliminations		Wachovia Consolidated
INTEREST INCOME
Interest and fees on loans	$	17,111		3,054		571		20,736
Interest and dividends on securities		4,009		144		394		4,547
Trading account interest		994		—		514		1,508
Other interest income		859		144		431		1,434

Total interest income		22,973		3,342		1,910		28,225

INTEREST EXPENSE
Interest on deposits		7,391		183		(226	)	7,348
Interest on borrowings		3,540		1,258		2,046		6,844

Total interest expense		10,931		1,441		1,820		14,192

Net interest income		12,042		1,901		90		14,033
Provision for credit losses		9,873		4,138		1,016		15,027

Net interest income after provision for credit losses		2,169		(2,237	)	(926	)	(994	)

FEE AND OTHER INCOME
Service charges and fees		3,386		406		(149	)	3,643
Commissions		22		—		2,601		2,623
Fiduciary and asset management fees		1,062		—		3,023		4,085
Principal investing		7		—		265		272
Other income		547		19		(4,514	)	(3,948	)

Total fee and other income		5,024		425		1,226		6,675

NONINTEREST EXPENSE
Salaries and employee benefits		4,990		510		4,684		10,184
Occupancy and equipment		1,531		91		480		2,102
Goodwill impairment		—		—		24,846		24,846
Other intangible amortization		180		—		116		296
Sundry expense		5,723		774		(155	)	6,342

Total noninterest expense		12,424		1,375		29,971		43,770

Minority interest in income of consolidated subsidiaries		62		—		(30	)	32

Loss before income tax benefits		(5,293	)	(3,187	)	(29,641	)	(38,121	)
Income tax benefits		(2,368	)	(1,078	)	(1,398	)	(4,844	)

Net loss		(2,925	)	(2,109	)	(28,243	)	(33,277	)
Dividends on preferred stock		—		—		427		427

Net loss available to common stockholders	$	(2,925	)	(2,109	)	(28,670	)	(33,704	)

(a)	Formerly World Savings Bank, FSB, prior to December 31, 2007. Wachovia Mortgage, FSB was converted into a national bank and merged into Wells Fargo Bank, N.A., effective November 1, 2009.

WELLS FARGO & COMPANY

Supplementary Consolidating Statement of Changes in Stockholders’ Equity Information

(Unaudited)


	Nine Months Ended September 30, 2009
(In millions)	The Bank			Other Subsidiaries and Eliminations		Wells Fargo Consolidated
PREFERRED STOCK
Balance, December 31, 2008	$	—		31,332		31,332
Preferred stock dividends and accretion		—		298		298
Preferred stock converted to common shares		—		(41	)	(41	)

Balance, September 30, 2009		—		31,589		31,589

COMMON STOCK
Balance, December 31, 2008		455		6,818		7,273
Common stock issued		—		654		654

Balance, September 30, 2009		455		7,472		7,927

ADDITIONAL PAID-IN CAPITAL
Balance, December 31, 2008		57,826		(21,800	)	36,026
Effect of change in accounting for noncontrolling interests		—		(3,716	)	(3,716	)
Noncontrolling interests		—		21		21
Common stock issued		—		7,845		7,845
Preferred stock released to ESOP		—		(3	)	(3	)
Preferred stock converted to common shares		—		(42	)	(42	)
Contributed capital		3,000		(3,000	)	—
Changes incident to business combinations		777		(777	)	—
Tax benefit upon exercise of stock options		—		9		9
Changes in ownership of minority interest		(49	)	49		—
Stock option compensation expense		—		180		180
Net change in deferred compensation and related plans		—		23		23

Balance, September 30, 2009		61,554		(21,211	)	40,343

RETAINED EARNINGS
Balance, December 31, 2008		(511	)	37,054		36,543
Cumulative effect of change in accounting for other-than-temporary impairment on debt securities		—		53		53
Net income		3,126		6,326		9,452
Common stock issued		—		(816	)	(816	)
Common stock dividends		(1,750	)	(141	)	(1,891	)
Preferred stock dividends and accretion		—		(1,856	)	(1,856	)

Balance, September 30, 2009		865		40,620		41,485

CUMULATIVE OTHER COMPREHENSIVE INCOME
Balance, December 31, 2008		—		(6,869	)	(6,869	)
Cumulative effect of change in accounting for other-than-temporary impairment on debt securities		—		(53	)	(53	)
Translation adjustments		—		63		63
Net unrealized gains on securities available for sale		3,462		7,104		10,566
Net unrealized gains (losses) on derivatives and hedging activities		72		(261	)	(189	)
Unamortized gains under defined benefit plans, net of amortization		—		570		570

Balance, September 30, 2009		3,534		554		4,088

TREASURY STOCK
Balance, December 31, 2008		—		(4,666	)	(4,666	)
Common stock issued		—		1,907		1,907
Common stock repurchased		—		(80	)	(80	)
Preferred stock converted to common shares		—		83		83
Net change in deferred compensation and related plans		—		(15	)	(15	)

Balance, September 30, 2009		—		(2,771	)	(2,771	)

UNEARNED ESOP SHARES
Balance, December 31, 2008		—		(555	)	(555	)
Preferred stock released to ESOP		—		44		44

Balance, September 30, 2009		—		(511	)	(511	)

NONCONTROLLING INTERESTS
Balance, December 31, 2008		1,645		1,587		3,232
Effect of change in accounting for noncontrolling interests		—		3,716		3,716
Net income		51		151		202
Translation adjustments		—		(5	)	(5	)
Net unrealized gains on securities available for sale		—		64		64
Noncontrolling interests		(36	)	(399	)	(435	)

Balance, September 30, 2009		1,660		5,114		6,774

Total stockholders’ equity, September 30, 2009	$	68,068		60,856		128,924

WACHOVIA CORPORATION AND SUBSIDIARIES

Supplementary Consolidating Statement of Changes in Stockholders’ Equity Information

(Unaudited)


	Nine Months Ended September 30, 2008
(In millions)	The Bank			Wachovia Mortgage, FSB (a)		Other Subsidiaries and Eliminations		Wachovia Consolidated
PREFERRED STOCK
Balance, December 31, 2007	$	—		—		2,300		2,300
Preferred shares issued		—		—		7,525		7,525

Balance, September 30, 2008		—		—		9,825		9,825

COMMON STOCK
Balance, December 31, 2007		455		—		6,079		6,534
Purchases of common stock		—		—		(2	)	(2	)
Common stock issued		—		—		559		559
Common stock issued for Stock options and restricted stock		—		—		33		33
Acquisitions		—		—		—		—

Balance, September 30, 2008		455		—		6,669		7,124

PAID-IN CAPITAL
Balance, December 31, 2007		53,925		—		2,224		56,149
Preferred shares issued		—		—		(53	)	(53	)
Purchases of common stock		—		—		(15	)	(15	)
Common stock issued		—		—		3,410		3,410
Common stock issued for Stock options and restricted stock		—		—		270		270
Acquisitions		—		—		—		—
Contributed capital		450		2,250		(2,700	)	—
Changes incident to business combinations		28		1		(29	)	—
Deferred compensation, net		—		—		122		122

Balance, September 30, 2008		54,403		2,251		3,229		59,883

RETAINED EARNINGS
Balance, December 31, 2007		18,997		3,697		(9,238	)	13,456
Cumulative effect of an accounting change, net of income taxes		(28	)	—		4		(24	)
Purchases of common stock		—		—		(3	)	(3	)
Net loss		(2,925	)	(2,109	)	(28,243	)	(33,277	)
Acquisitions		—		—		—		—
Changes incident to business combinations		21		—		(21	)	—
Cash dividends		—		—		(2,617	)	(2,617	)
Noncash dividends		—		—		—		—

Balance, September 30, 2008		16,065		1,588		(40,118	)	(22,465	)

ACCUMULATED OTHER COMPREHENSIVE INCOME, NET
Balance, December 31, 2007		(974	)	28		(621	)	(1,567	)
Minimum pension liability		—		—		17		17
Net unrealized gains (losses) on debt and equity securities and on derivative financial instruments		(2,406	)	25		(433	)	(2,814	)

Balance, September 30, 2008		(3,380	)	53		(1,037	)	(4,364	)

Total stockholders’ equity, September 30, 2008	$	67,543		3,892		(21,432	)	50,003

(a)	Formerly World Savings Bank, FSB, prior to December 31, 2007. Wachovia Mortgage, FSB was converted into a national bank and merged into Wells Fargo Bank, N.A., effective November 1, 2009.

WELLS FARGO & COMPANY

Supplementary Consolidating Statement of Cash Flows Information

(Unaudited)


	Nine Months Ended September 30, 2009
(In millions)	The Bank			Other Subsidiaries and Eliminations		Wells Fargo Consolidated
Cash flows from operating activities:
Net income before noncontrolling interests	$	3,177		6,477		9,654
Adjustments to reconcile net income to net cash provided (used) by operating activities:
Provision for credit losses		3,709		12,046		15,755
Change in fair value of MSRs (residential), MHFS and LHFS carried at fair value		22		1,344		1,366
Depreciation and amortization		1,496		941		2,437
Other net gains		(297	)	(1,964	)	(2,261	)
Preferred shares released to ESOP		—		41		41
Stock option compensation expense		—		180		180
Excess tax benefits related to stock option payments		—		(9	)	(9	)
Originations of MHFS		(965	)	(320,133	)	(321,098	)
Proceeds from sales of and principal collected on mortgages originated for sale		1,323		305,559		306,882
Originations of LHFS		(4,938	)	(3,703	)	(8,641	)
Proceeds from sales of LHFS		11,816		4,121		15,937
Purchases of LHFS		(6,354	)	(107	)	(6,461	)
Net change in:
Trading assets		17,189		(3,355	)	13,834
Deferred income taxes		968		3,867		4,835
Accrued interest receivable		743		205		948
Accrued interest payable		(537	)	(620	)	(1,157	)
Other assets, net		(9,525	)	3,366		(6,159	)
Other accrued expenses and liabilities, net		(2,034	)	1,201		(833	)

Net cash provided by operating activities		15,793		9,457		25,250

Cash flows from investing activities:
Net change in:
Federal funds sold, securities purchased under resale agreements and other short-term investments		78,569		(46,627	)	31,942
Securities available for sale:
Sales proceeds		10,435		35,902		46,337
Prepayments and maturities		10,275		18,471		28,746
Purchases		(36,687	)	(52,708	)	(89,395	)
Loans:
Decrease in banking subsidiaries’ loan originations, net of collections		37,423		6,914		44,337
Proceeds from sales (including participations) of loans originated for investment by banking subsidiaries		207		4,362		4,569
Purchases (including participations) of loans by banking subsidiaries		(896	)	(1,111	)	(2,007	)
Principal collected on nonbank entities’ loans		—		10,224		10,224
Loans originated by nonbank entities		—		(7,117	)	(7,117	)
Net cash paid for acquisitions		—		(132	)	(132	)
Proceeds from sales of foreclosed assets		1,070		1,638		2,708
Changes in MSRs from purchases and sales		(18	)	9		(9	)
Net change in noncontrolling interest		(34	)	(321	)	(355	)
Other, net		(1,585	)	6,536		4,951

Net cash provided (used) by investing activities		98,759		(23,960	)	74,799

Cash flows from financing activities:
Net change in:
Deposits		(63,509	)	78,721		15,212
Short-term borrowings		(35,759	)	(41,515	)	(77,274	)
Long-term debt:
Proceeds from issuance		—		4,803		4,803
Repayment		(20,671	)	(34,661	)	(55,332	)
Preferred stock:
Cash dividends paid		—		(1,616	)	(1,616	)
Common Stock:
Proceeds from issuance		3,000		6,590		9,590
Repurchased		—		(80	)	(80	)
Cash dividends paid		(1,750	)	(141	)	(1,891	)
Excess tax benefits related to stock option payments		—		9		9

Net cash provided (used) by financing activities		(118,689	)	12,110		(106,579	)

Net change in cash and due from banks		(4,137	)	(2,393	)	(6,530	)
Cash and due from banks at beginning of period		11,476		12,287		23,763

Cash and due from banks at end of period	$	7,339		9,894		17,233

Supplemental disclosures of cash flow information:
Cash paid for interest	$	3,323		5,592		8,915
Cash paid for income taxes	$	1,863		971		2,834

WACHOVIA CORPORATION AND SUBSIDIARIES

Supplementary Consolidating Statement of Cash Flows Information

(Unaudited)


	Nine Months Ended September 30, 2008
(In millions)	The Bank			Wachovia Mortgage, FSB (a)		Other Subsidiaries and Eliminations		Wachovia Consolidated
OPERATING ACTIVITIES
Net loss	$	(2,925	)	(2,109	)	(28,243	)	(33,277	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities
Accretion and amortization of securities discounts and premiums, net		6		—		(23	)	(17	)
Provision for credit losses		9,830		4,138		1,059		15,027
Loss (gain) on securitization transactions		82		—		(25	)	57
Gain on sale of mortgage servicing rights		—		(3	)	—		(3	)
Securities transactions		1,937		—		1,054		2,991
Goodwill impairment		—		—		24,846		24,846
Depreciation and other amortization		719		28		721		1,468
Trading account assets, net		823		(198	)	6,064		6,689
Loss (gain) on sales of premises and equipment		(9	)	6		24		21
Valuation losses on bank-owned separate account life insurance		314		—		—		314
Income tax shortfall from share-based payment arrangements		—		—		29		29
Loans held for sale, net		2,443		(863	)	212		1,792
Deferred interest on certain loans		(444	)	(607	)	—		(1,051	)
Other assets, net		(4,701	)	(1,719	)	(2,513	)	(8,933	)
Trading account liabilities, net		(1,648	)	1		(1,550	)	(3,197	)
Other liabilities, net		385		81		1,997		2,463

Net cash provided (used) by operating activities		6,812		(1,245	)	3,652		9,219

INVESTING ACTIVITIES
Increase (decrease) in cash realized from
Sales of securities		14,250		553		5,993		20,796
Maturities of securities		74,384		—		1,902		76,286
Purchases of securities		(91,135	)	—		(8,073	)	(99,208	)
Origination of loans, net		(10,241	)	(11,983	)	(302	)	(22,526	)
Sales of premises and equipment		261		59		14		334
Purchases of premises and equipment		(754	)	(55	)	(749	)	(1,558	)
Goodwill and other intangible assets		(17	)	—		(95	)	(112	)
Purchase of bank-owned separate account life insurance, net		(704	)	—		(4	)	(708	)

Net cash used by investing activities		(13,956	)	(11,426	)	(1,314	)	(26,696	)

FINANCING ACTIVITIES
Increase (decrease) in cash realized from
Increase (decrease) in deposits, net		(48,348	)	17,614		445		(30,289	)
Securities sold under repurchase agreements and other short-term borrowings, net		50,777		(11,292	)	(22,011	)	17,474
Issuances of long-term debt		26,349		19,500		15,323		61,172
Payments of long-term debt		(19,819	)	(15,246	)	(3,764	)	(38,829	)
Issuances of preferred shares		—		—		7,472		7,472
Issuances of common stock, net		—		—		3,933		3,933
Purchases of common stock		—		—		(20	)	(20	)
Capital contributed from Parent		450		2,250		(2,700	)	—
Changes incident to business combinations		49		1		(50	)	—
Income tax shortfall from share-based payment arrangements		—		—		(29	)	(29	)
Cash dividends paid		—		—		(2,617	)	(2,617	)

Net cash provided (used) by financing activities		9,458		12,827		(4,018	)	18,267

Increase (decrease) in cash and cash equivalents		2,314		156		(1,680	)	790
Cash and cash equivalents, beginning of year		25,119		8		8,503		33,630

Cash and cash equivalents, end of year	$	27,433		164		6,823		34,420

NONCASH ITEMS
Transfer to securities from loans held for sale resulting from securitizations	$	4,781		—		—		4,781
Transfer to trading account assets from securities		6,807		—		—		6,807
Transfer to loans from loans held for sale		926		—		—		926
Cumulative effect of an accounting change, net of income taxes	$	(28	)	—		4		(24	)

(a)	Formerly World Savings Bank, FSB, prior to December 31, 2007. Wachovia Mortgage, FSB was converted into a national bank and merged into Wells Fargo Bank, N.A., effective November 1, 2009.

Attached files

WACHOVIA PREFERRED FUNDING CORP Reports

Also read