The Charlotte, N.C., bank has named Lanty Smith to the position of nonexecutive chairman.

Wachovia has more than 200 Philadelphia-area branches and has the largest share of eight-county deposits at 21 percent.

Wachovia says Thompson will remain a board member in addition to his role as chief executive.

The bank says the separation "strengthens independent leadership" at the company.

Corporate governance watchdogs repeatedly call for companies to separate the CEO and chairman roles in the interest of shareholder value.

The company had said last week that it lost $708 million in the first quarter, 80 percent more than it reported last month, reflecting writedowns on life insurance policies for employees. Wachovia wrote down the assets by $315 million in the quarter, inflating its quarterly loss from $393 million, the bank said in a filing.