Key indicators included:
- Loan and mortgage-backed securities portfolio of $123.8 billion versus $124.6 billion at the end of October
- Loan originations of $3.2 billion included $193 million relating to introduction of a Fixed Rate Pick-A-Payment loan product
- Portfolio margin continued to expand as the loan portfolio repriced upward 9 basis points
- $55 billion of the loan portfolio wholesale funded; the costs of which remained relatively flat as 90 day LIBOR rate was unchanged at 5.37 percent
- $68.5 billion of the loan portfolio funded at a Cost of Savings rate of 4.65 percent which rose 5 basis points from the end of October
- Deposits of $68.5 billion grew from $68.0 billion at the end of October
- Nonperforming assets of $655 million rose 5 basis points to 53 basis points of total loans and mortgage-backed securities
"We continue to be pleased with the Golden West transaction and the opportunities for Wachovia," said Tom Wurtz, Wachovia chief financial officer. "We experienced continued improvement in the spread on the World Savings Bank loan portfolio while loan originations slowed somewhat reflecting the unfavorable yield curve environment and seasonally lower activity overall. While we don't expect a near-term change in the interest rate environment, we are encouraged by customer response to new product introductions throughout our combined franchise and the potential for even greater cross-sell opportunities for loan and deposit products."
In October, World Savings Bank introduced a new companion product to the adjustable rate pick-a-pay loan called a Fixed Rate Pick-A-Payment that provides a fixed rate of interest to the borrower with flexible payment options.
Beginning in December Wachovia relocated 200 mortgage originators to its financial centers who are focused on originating Pick-A-Payment and other mortgage products to its customer base.
[IMAGE: "World Savings Financial Highlights for November 2006"]
[IMAGE: "World Savings Financial Highlights for November 2006"]
About Wachovia
Wachovia Corporation (NYSE:WB) is one of the nation's largest diversified financial services companies, providing a broad range of retail banking and brokerage, asset and wealth management, and corporate and investment banking products and services. Including the Golden West merger, which closed on October 1, 2006, Wachovia has retail and commercial banking operations in 21 states with 3,400 retail banking offices from Connecticut to Florida and west to Texas and California. In addition, two core businesses operate under the Wachovia Securities brand name: retail brokerage with 737 offices in 49 states and service affiliate offices in Latin America, and corporate and investment banking in selected industries nationwide. Other nationwide businesses include mortgage lending in 39 states and auto finance covering 46 states. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. At September 30, 2006, Wachovia had assets of $559.9 billion and market capitalization of $88.2 billion. On the same date, based on pro forma data, Wachovia's combined assets were approximately $700 billion and combined market capitalization was $107 billion.
Forward-Looking Statements
This news release contains various forward-looking statements. A discussion of various factors that could cause Wachovia Corporation's actual results to differ materially from those expressed in such forward-looking statements is included in Wachovia's filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.