Wachovia Reports First Quarter Earnings and Postponement of Annual Shareholders' Meeting

Apr 16, 2001, 01:00 ET from Wachovia Corporation

    WINSTON-SALEM, N.C., April 16 /PRNewswire/ -- Wachovia Corporation
 (NYSE:   WB) today announced operating earnings of $1.22 per diluted share for
 the first quarter of 2001 compared with $1.30 per diluted share a year
 earlier.  Wachovia also announced postponement of its shareholders' meeting
 originally scheduled for April 27, 2001, following today's announcement of the
 proposed merger with First Union Corporation.  The shareholders' meeting will
 be rescheduled for a later time.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000711/WACHLOGO )
     "This was a steady quarter of performance for Wachovia," said L.M. Baker
 Jr., chairman and chief executive officer.  "Although the economic slowdown
 continues, several measures of performance improved, including important
 progress on credit issues.  Results for the quarter were similar to
 expectations communicated during our Analyst and Institutional Investor
 Conference on March 28th and 29th.  Compared with the fourth quarter, net
 interest margin yield was stable, nonperforming loans decreased 18 percent,
 loan losses and expenses were as planned.  Looking forward, we are excited
 about opportunities available through the proposed merger with First Union and
 believe it is appropriate to postpone our annual meeting until we can provide
 a full discussion of these opportunities."
     Operating net income in the first quarter was $252.5 million compared with
 $257.4 million in the fourth quarter of 2000.  Reported net income in the
 first quarter was $242.1 million or $1.17 per diluted share.  Operating
 earnings exclude nonrecurring pretax restructuring charges of $13.2 million.
 The net yield on interest earning assets was 3.93 percent compared with 3.94
 percent in the fourth quarter.  Net interest income increased on moderately
 higher loan volumes.
     The provision for loan losses was $121.5 million for the first quarter,
 and the ratio of the allowance for loan losses to period-end loans remained
 1.50 percent.  Nonperforming loans declined $90 million from December 31,
 2000, to $410 million at March 31, 2001.  Net loan losses of $118.7 million
 for the first quarter were near the average of the prior two quarters.  As a
 percentage of average loans outstanding, net loan losses were .85 percent for
 the first quarter 2001 compared with .70 percent in the fourth quarter.
     Wachovia will provide complete financial results, as scheduled, on
 Wednesday, April 18, 2001.  A conference call will be held at 9:30 a.m.
 (Eastern Time) on Wednesday and will be available by calling 913-981-5592 or
 via the Internet at www.wachovia.com/investor/conference.asp.  Replays of the
 conference call will be available from 12:30 p.m. April 18 until midnight
 April 22 at the same Internet address or by phone (719-457-0820, access code
 797962).
     This news release contains forward-looking statements regarding Wachovia
 Corporation.  All forward-looking statements involve risk and uncertainty and
 actual results could differ materially from the anticipated results or other
 expectations expressed in the forward-looking statements.  A discussion of
 factors that could cause actual results to differ materially from those
 expressed in the forward-looking statements is included in Wachovia's filings
 with the Securities and Exchange Commission.
 
 
     Wachovia Corporation                       First Quarter  Fourth Quarter
     Financial Summary                               2001           2000
 
     Operating net income ($ millions)*            $252.5         $257.4
     Operating earnings per diluted share*          $1.22          $1.26
     Net yield on interest earning assets            3.93%          3.94%
     Provision for loan losses ($ millions)        $121.5         $117.5
     Ratio of allowance for loan losses to
      period-end loans                               1.50%          1.50%
     Non-performing loans at period-end
      ($ millions)                                 $410.1         $499.9
     Reported net income ($ millions)              $242.1         $244.7
     Reported net income per diluted share          $1.17          $1.20
     Average diluted shares (millions)              207.6          204.4
 
     * excludes nonrecurring charges
 
 

SOURCE Wachovia Corporation
    WINSTON-SALEM, N.C., April 16 /PRNewswire/ -- Wachovia Corporation
 (NYSE:   WB) today announced operating earnings of $1.22 per diluted share for
 the first quarter of 2001 compared with $1.30 per diluted share a year
 earlier.  Wachovia also announced postponement of its shareholders' meeting
 originally scheduled for April 27, 2001, following today's announcement of the
 proposed merger with First Union Corporation.  The shareholders' meeting will
 be rescheduled for a later time.
     (Photo: http://www.newscom.com/cgi-bin/prnh/20000711/WACHLOGO )
     "This was a steady quarter of performance for Wachovia," said L.M. Baker
 Jr., chairman and chief executive officer.  "Although the economic slowdown
 continues, several measures of performance improved, including important
 progress on credit issues.  Results for the quarter were similar to
 expectations communicated during our Analyst and Institutional Investor
 Conference on March 28th and 29th.  Compared with the fourth quarter, net
 interest margin yield was stable, nonperforming loans decreased 18 percent,
 loan losses and expenses were as planned.  Looking forward, we are excited
 about opportunities available through the proposed merger with First Union and
 believe it is appropriate to postpone our annual meeting until we can provide
 a full discussion of these opportunities."
     Operating net income in the first quarter was $252.5 million compared with
 $257.4 million in the fourth quarter of 2000.  Reported net income in the
 first quarter was $242.1 million or $1.17 per diluted share.  Operating
 earnings exclude nonrecurring pretax restructuring charges of $13.2 million.
 The net yield on interest earning assets was 3.93 percent compared with 3.94
 percent in the fourth quarter.  Net interest income increased on moderately
 higher loan volumes.
     The provision for loan losses was $121.5 million for the first quarter,
 and the ratio of the allowance for loan losses to period-end loans remained
 1.50 percent.  Nonperforming loans declined $90 million from December 31,
 2000, to $410 million at March 31, 2001.  Net loan losses of $118.7 million
 for the first quarter were near the average of the prior two quarters.  As a
 percentage of average loans outstanding, net loan losses were .85 percent for
 the first quarter 2001 compared with .70 percent in the fourth quarter.
     Wachovia will provide complete financial results, as scheduled, on
 Wednesday, April 18, 2001.  A conference call will be held at 9:30 a.m.
 (Eastern Time) on Wednesday and will be available by calling 913-981-5592 or
 via the Internet at www.wachovia.com/investor/conference.asp.  Replays of the
 conference call will be available from 12:30 p.m. April 18 until midnight
 April 22 at the same Internet address or by phone (719-457-0820, access code
 797962).
     This news release contains forward-looking statements regarding Wachovia
 Corporation.  All forward-looking statements involve risk and uncertainty and
 actual results could differ materially from the anticipated results or other
 expectations expressed in the forward-looking statements.  A discussion of
 factors that could cause actual results to differ materially from those
 expressed in the forward-looking statements is included in Wachovia's filings
 with the Securities and Exchange Commission.
 
 
     Wachovia Corporation                       First Quarter  Fourth Quarter
     Financial Summary                               2001           2000
 
     Operating net income ($ millions)*            $252.5         $257.4
     Operating earnings per diluted share*          $1.22          $1.26
     Net yield on interest earning assets            3.93%          3.94%
     Provision for loan losses ($ millions)        $121.5         $117.5
     Ratio of allowance for loan losses to
      period-end loans                               1.50%          1.50%
     Non-performing loans at period-end
      ($ millions)                                 $410.1         $499.9
     Reported net income ($ millions)              $242.1         $244.7
     Reported net income per diluted share          $1.17          $1.20
     Average diluted shares (millions)              207.6          204.4
 
     * excludes nonrecurring charges
 
 SOURCE  Wachovia Corporation