Wells Fargo & Company (NYSE: WFC):
-
Continued strong financial results:
-
Record Wells Fargo net income of $5.2 billion, up 22 percent from
first quarter 2012
-
Record diluted earnings per share of $0.92, up 23 percent
-
Revenue of $21.3 billion, compared with $21.6 billion
-
Noninterest expense of $12.4 billion, down $593 million
-
58.3 percent efficiency ratio, improved from 60.1 percent
-
Pre-tax pre-provision profit (PTPP)1 of $8.9 billion,
up 2 percent
-
Return on average assets (ROA) of 1.49 percent, up 18 basis points
-
Return on equity (ROE) of 13.59 percent, up 145 basis points
-
Continued loan and deposit growth:
-
Total average loans of $798.1 billion, up $29.5 billion from first
quarter 2012
-
Quarter-end loans of $800.0 billion, up $33.4 billion
-
Quarter-end core loans2 of $709.1 billion, up $50.8
billion
-
Total average core deposits of $925.9 billion, up $55.4 billion
from first quarter 2012
-
Quarter-end core deposits of $939.9 billion, up $51.2 billion
-
Continued improvement in credit quality:
-
Net charge-offs of $1.4 billion, a decline of $976 million from
first quarter 2012
-
Net charge-off rate of 0.72 percent (annualized), lowest since
second quarter 20063
-
Non-performing assets of $22.9 billion, down $3.8 billion from
first quarter 2012
-
$200 million (pre-tax) reserve release4 due to
continued strong credit performance
-
Strengthened capital levels; increased dividends and continued share
repurchases:
-
Tier 1 common equity5 under Basel I increased $14.1
billion from first quarter 2012 to $113.6 billion, with Tier 1
common equity ratio of 10.38 percent under Basel I at
March 31, 2013
-
Estimated Tier 1 common equity ratio of 8.39 percent under current
Basel III capital proposals6
-
Increased quarterly common stock dividend to $0.25 per share in
first quarter 2013 and purchased approximately 17 million shares
of common stock
-
Received a non-objection to 2013 Capital Plan under the
Comprehensive Capital Analysis and Review (CCAR), which included a
dividend rate of $0.30 per share for second quarter 2013, subject
to Board approval. The 2013 plan also included an increase in
common stock repurchase activity compared with actual repurchases
in 2012.
|
|
|
1 |
|
See footnote (2) on table Summary Financial Data for more
information on pre-tax pre-provision profit.
|
2 |
|
See table in Loans section for more information on core and
non-strategic/liquidating loan portfolios.
|
3 |
|
As a result of the accounting for purchased credit-impaired (PCI)
loans, substantially all related to the Wachovia merger, certain
credit-related metrics may not be directly comparable with periods
prior to the merger.
|
4 |
|
Reserve release represents the amount by which net charge-offs
exceed the provision for credit losses.
|
5 |
|
See tables on TIER 1 COMMON EQUITY for more information on Tier 1
common equity.
|
6 |
|
Estimated based on management’s current interpretation of the Basel
III capital rules proposed by federal banking agencies in notices of
proposed rulemaking announced in June 2012. The proposed rules and
interpretations and assumptions used in estimating Basel III
calculations are subject to change depending on final promulgation
of Basel III capital rules.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar. 31,
|
|
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
2012
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
|
$
|
0.92
|
|
|
|
|
0.91
|
|
|
0.75
|
Wells Fargo net income (in billions)
|
|
|
|
|
5.17
|
|
|
|
|
5.09
|
|
|
4.25
|
Return on assets (ROA)
|
|
|
|
|
1.49
|
|
%
|
|
|
1.46
|
|
|
1.31
|
Return on equity (ROE)
|
|
|
|
|
13.59
|
|
|
|
|
13.35
|
|
|
12.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs as a % of avg. total loans
|
|
|
|
|
0.72
|
|
|
|
|
1.05
|
|
|
1.25
|
Allowance as a % of total loans
|
|
|
|
|
2.15
|
|
|
|
|
2.19
|
|
|
2.50
|
Allowance as a % of annualized net charge-offs
|
|
|
|
|
299
|
|
|
|
|
211
|
|
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
|
$
|
21.3
|
|
|
|
|
21.9
|
|
|
21.6
|
Efficiency ratio
|
|
|
|
|
58.3
|
|
%
|
|
|
58.8
|
|
|
60.1
|
Average loans (in billions)
|
|
|
|
$
|
798.1
|
|
|
|
|
787.2
|
|
|
768.6
|
Average core deposits (in billions)
|
|
|
|
|
925.9
|
|
|
|
|
928.8
|
|
|
870.5
|
Net interest margin
|
|
|
|
|
3.48
|
|
%
|
|
|
3.56
|
|
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company (NYSE:WFC) reported record net income of $5.2
billion, or $0.92 per diluted common share, for first quarter 2013, up
from $4.2 billion, or $0.75 per share, for first quarter 2012, and up
from $5.1 billion, or $0.91 per share, for fourth quarter 2012.
“Wells Fargo delivered outstanding first quarter 2013 results for our
shareholders,” said Chairman and CEO John Stumpf. “Quarterly earnings
and EPS increased at double-digit rates compared with first quarter
2012, while loans and deposits demonstrated continued growth in a
challenging economic environment. In addition, expenses continued to
decline as we improved efficiency across the franchise, and returns on
assets and equity increased and remained among the highest in our
industry. Capital levels remained strong and we were very pleased to
increase our dividend to $0.25 per common share in first quarter 2013
and to receive a non-objection to our 2013 Capital Plan which will allow
us to return even more capital to shareholders in the year ahead. Our
success in the quarter, as always, was driven by helping our customers
succeed financially, and I am very proud of the dedication and hard work
of our team members.”
“Our company earned $5.2 billion in first quarter 2013, the highest
quarterly profit in our history—another milestone demonstrating how
Wells Fargo’s diversified business model continued to produce
outstanding results,” said Chief Financial Officer Tim Sloan. “This is
our 13th consecutive quarter of EPS growth and 8th consecutive
quarter of record EPS. Average loans and deposits increased in the
quarter, expenses were lower, and credit metrics improved with the net
charge-off ratio down to the lowest level since second quarter 2006.”3
Revenue
Revenue was $21.3 billion in first quarter 2013, compared with $21.9
billion in fourth quarter 2012, and pre-tax pre-provision profit was
$8.9 billion. “Revenue was down linked quarter largely due to the
absence of the higher than average equity gains we recognized last
quarter, the expected cyclicality in the mortgage business, and two
fewer days in the quarter, which had a negative impact on both net
interest income and noninterest income linked quarter trends,” said
Sloan. “We continue to be pleased with the revenue growth in many of our
core businesses, as evidenced by the strong year-over-year growth in
brokerage advisory and commission fees, investment banking, card fees,
and deposit service charges, all of which were up over 10 percent.
That’s the benefit of our diversified business model and among the many
drivers of our continued success.”
Net Interest Income
Net interest income in first quarter 2013 declined $144 million on a
linked-quarter basis to $10.5 billion largely due to two fewer days
compared with fourth quarter 2012. Apart from this impact, net interest
income was essentially unchanged. Interest income from the
available-for-sale (AFS) securities portfolio increased modestly as we
opportunistically purchased $17.8 billion in federal agency
mortgage-backed securities (MBS) during periods of higher interest rates
in the first quarter. The benefit of these purchases outweighed the
impact of continued runoff of higher yielding securities within the
portfolio. In addition, organic growth in consumer and commercial loans
and the retention of $3.4 billion in high-quality, conforming first real
estate mortgages in the first quarter largely offset reduced income from
portfolio repricing. The decline in interest income was partially offset
by a $64 million decrease in deposit and long term funding interest
expense.
On a linked-quarter basis, the Company’s net interest margin declined 8
basis points to 3.48 percent. Approximately 3 basis points of the
decline was due to lower income from variable sources, including
purchased credit-impaired (PCI) loan resolutions and periodic dividends.
Linked-quarter deposit growth caused cash and short term investments to
remain elevated. Although these short-term balances have little impact
on net interest income, they are dilutive to net interest margin and
accounted for 3 basis points of compression. Net of growth in loans and
AFS securities, ongoing repricing of the balance sheet in the current
low interest rate environment reduced net interest margin approximately
2 basis points compared with the fourth quarter.
Noninterest Income
Noninterest income was $10.8 billion, compared with $11.3 billion in
fourth quarter 2012. The decline was primarily driven by lower mortgage
banking revenue as well as reduced gains on equity investments, which
were elevated in the fourth quarter. These declines were partially
offset by stronger retail brokerage transaction revenue and asset-based
fees, and higher trading gains and insurance revenue.
Mortgage banking noninterest income was $2.8 billion, down $274 million
from fourth quarter 2012. During the first quarter, the Company retained
on balance sheet 1-4 family conforming first mortgage loans of $3.4
billion, forgoing approximately $112 million of revenue that could have
been generated had the loans been originated for sale during the quarter
along with other agency conforming loan production. The Company provided
$309 million for mortgage loan repurchase losses, compared with $379
million in fourth quarter 2012 (included in net gains from mortgage loan
origination/sales activities). Net mortgage servicing rights (MSRs)
results were $129 million, down from $220 million in fourth quarter
2012, due primarily to MSR valuation adjustments made in the first
quarter for the impact of improving housing prices on estimated
prepayment speeds.
The Company had net unrealized securities gains of $11.2 billion at
March 31, 2013, compared with $11.9 billion at December 31, 2012.
Period-end AFS securities balances increased $13.0 billion.
Noninterest Expense
Noninterest expense declined $496 million from the prior quarter
primarily due to lower operating losses associated with the Independent
Foreclosure Review settlement and a $250 million charitable contribution
to the Wells Fargo Foundation in the fourth quarter. This quarter’s
expenses included approximately $460 million of seasonally higher
personnel expenses and approximately $103 million of higher deferred
compensation, which was offset in trading revenue. The Company continued
to operate within its targeted efficiency ratio range of 55 to 59
percent, with a ratio of 58.3 percent in first quarter 2013, compared
with 58.8 percent in fourth quarter 2012. The Company expects second
quarter 2013 expenses to decline from first quarter 2013 and to remain
within the target efficiency range.
Income Taxes
The Company’s effective income tax rate was 31.9 percent for first
quarter 2013. The rate included the benefit associated with the
realization for tax purposes of a previously written-down investment.
Absent additional discrete benefits in 2013, the Company expects the
effective income tax rate for the full year 2013 to be higher than the
effective income tax rate for first quarter 2013.
Loans
Total loans were $800.0 billion at March 31, 2013, up $392 million from
December 31, 2012. Included in this growth was $3.4 billion of 1-4
family conforming first mortgage production retained on the balance
sheet, and a decrease of $3.7 billion due to the continued runoff in the
liquidating/non-strategic portfolio. Total average loans were $798.1
billion, up $10.9 billion from prior quarter. The asset-backed finance,
commercial banking, corporate banking, credit card, government and
institutional banking, mortgage, retail brokerage, real estate capital
markets, and retail sales finance portfolios all experienced
year-over-year, double-digit growth.
|
|
|
|
|
March 31, 2013
|
|
|
December 31, 2012
|
(in millions)
|
|
|
|
Core
|
|
|
Liquidating (1)
|
|
|
Total
|
|
|
Core
|
|
|
Liquidating (1)
|
|
|
Total
|
Commercial
|
|
|
|
$
|
358,944
|
|
|
2,770
|
|
|
|
361,714
|
|
|
358,028
|
|
|
3,170
|
|
|
|
361,198
|
Consumer
|
|
|
|
|
350,131
|
|
|
88,121
|
|
|
|
438,252
|
|
|
346,984
|
|
|
91,392
|
|
|
|
438,376
|
Total loans
|
|
|
|
$
|
709,075
|
|
|
90,891
|
|
|
|
799,966
|
|
|
705,012
|
|
|
94,562
|
|
|
|
799,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from prior quarter:
|
|
|
|
$
|
4,063
|
|
|
(3,671
|
)
|
|
|
392
|
|
|
21,038
|
|
|
(4,094
|
)
|
|
|
16,944
|
|
(1) See NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS table for
additional information on non-strategic/liquidating loan
portfolios. Management believes that the above information
provides useful disclosure regarding the Company’s ongoing loan
portfolios.
|
|
Deposits
Total average deposits were $986.2 billion, up 8 percent from a year ago
and up 4 percent (annualized) from fourth quarter 2012. Average core
deposits were $925.9 billion, up 6 percent from a year ago and down
slightly from fourth quarter 2012. Average core checking and savings
deposits were $870.6 billion, up 8 percent from a year ago and down
1 percent (annualized) from fourth quarter 2012. Average mortgage escrow
deposits were $38.8 billion, compared with $33.0 billion a year ago and
$42.2 billion in fourth quarter 2012. Average core checking and savings
deposits were 94 percent of average core deposits, compared with 94
percent in the prior quarter and 93 percent a year ago. The average
deposit cost for first quarter 2013 was 15 basis points, compared with
16 basis points in fourth quarter 2012. Average core deposits were
116 percent of average loans, down slightly from fourth quarter 2012.
Capital
Capital increased in the first quarter, with Tier 1 common equity of
$113.6 billion under Basel I, or 10.38 percent of risk-weighted assets,
compared with 9.98 percent in first quarter 2012 and 10.12 percent in
fourth quarter 2012. The Tier I common equity ratio under Basel I was
negatively impacted by approximately 25 basis points in the first
quarter by the implementation of the Federal Reserve’s Market Risk Final
Rule, commonly known as “Basel 2.5,” which became effective on January
1, 2013. Under current Basel III proposals, the Tier I common equity
ratio was an estimated 8.39 percent.7 Our estimate of
Basel III ratios is not impacted by the Market Risk Final Rule, as its
impact has historically been included in our calculations.
In the first quarter, the Company purchased approximately 17 million
shares of its common stock and paid a quarterly common stock dividend of
$0.25 per share.
On March 14, 2013, the Company received a non-objection to its 2013
Capital Plan under the Comprehensive Capital Analysis and Review (CCAR),
which included a dividend rate of $0.30 per share for second quarter
2013, subject to Board approval. The 2013 plan also included an increase
in common stock repurchase activity compared with actual repurchases in
2012.
7 Estimated based on management’s current interpretation of
the Basel III capital rules proposed by federal banking agencies in
notices of proposed rulemaking announced in June 2012. The proposed
rules and interpretations and assumptions used in estimating Basel III
calculations are subject to change depending on final promulgation of
Basel III capital rules.
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
Mar. 31,
|
(as a percent of total risk-weighted assets)
|
|
|
|
2013
|
|
|
|
2012
|
|
2012
|
Ratios under Basel I (1):
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common equity (2)
|
|
|
|
10.38
|
|
%
|
|
10.12
|
|
9.98
|
Tier 1 capital
|
|
|
|
11.79
|
|
|
|
11.75
|
|
11.78
|
Tier 1 leverage
|
|
|
|
9.53
|
|
|
|
9.47
|
|
9.35
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) March 31, 2013, ratios are preliminary.
|
(2) See table on TIER 1 COMMON EQUITY for more information on Tier
1 common equity.
|
|
Credit Quality
“Credit quality continued to improve in the quarter, and in several of
our portfolios the performance was particularly strong,” said Chief Risk
Officer Mike Loughlin. “Credit losses were $1.4 billion in first quarter
2013, compared with $2.1 billion in fourth quarter 2012, an improvement
of 32 percent. Additionally, the loss rate of 0.72 percent was the
lowest level since second quarter 2006.3 Nonperforming assets
declined by $1.6 billion, or 7 percent, from fourth quarter 2012. As a
result of the continued positive improvement to credit performance, we
released $200 million from the allowance for credit losses in the first
quarter. We continue to expect future reserve releases in 2013 absent a
significant deterioration in the economic environment,” said Loughlin.
Net Loan Charge-offs
Net loan charge-offs improved to $1.4 billion in first quarter 2013, or
72 basis points of average loans, compared with $2.1 billion in fourth
quarter 2012, or 105 basis points of average loans. On a linked-quarter
basis, net loan charge-offs improved by $662 million, or 33 basis points
of average loans. Net charge-offs in fourth quarter 2012 included $321
million in charge-offs, or 16 basis points, resulting from adjustments
associated with the OCC guidance8 on loans discharged in
bankruptcy.
8 Office of the Comptroller of the Currency update to Bank
Accounting Advisory Series issued third quarter 2012 (OCC guidance),
which requires consumer loans discharged in bankruptcy to be placed on
nonaccrual status and written down to net realizable collateral value,
regardless of their delinquency status.
|
Net Loan Charge-Offs
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31, 2013
|
|
|
|
|
Dec. 31, 2012
|
|
|
|
|
Sept. 30, 2012
|
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
Net loan
|
|
|
% of
|
|
|
|
|
Net loan
|
|
|
% of
|
|
|
|
|
Net loan
|
|
|
% of
|
|
|
|
|
|
|
charge-
|
|
|
average
|
|
|
|
|
charge-
|
|
|
average
|
|
|
|
|
charge-
|
|
|
average
|
|
|
($ in millions)
|
|
|
|
offs
|
|
|
loans (1)
|
|
|
|
|
offs
|
|
|
loans (1)
|
|
|
|
|
offs
|
|
|
loans (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
$
|
93
|
|
|
|
0.20
|
|
%
|
|
|
|
$
|
209
|
|
|
|
0.46
|
|
%
|
|
|
|
$
|
131
|
|
|
0.29
|
|
%
|
Real estate mortgage
|
|
|
|
|
29
|
|
|
|
0.11
|
|
|
|
|
|
|
38
|
|
|
|
0.14
|
|
|
|
|
|
|
54
|
|
|
0.21
|
|
|
Real estate construction
|
|
|
|
|
(34
|
)
|
|
|
(0.83
|
)
|
|
|
|
|
|
(18
|
)
|
|
|
(0.43
|
)
|
|
|
|
|
|
1
|
|
|
0.03
|
|
|
Lease financing
|
|
|
|
|
(1
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
2
|
|
|
|
0.04
|
|
|
|
|
|
|
1
|
|
|
0.03
|
|
|
Foreign
|
|
|
|
|
3
|
|
|
|
0.03
|
|
|
|
|
|
|
24
|
|
|
|
0.25
|
|
|
|
|
|
|
30
|
|
|
0.29
|
|
|
Total commercial
|
|
|
|
|
90
|
|
|
|
0.10
|
|
|
|
|
|
|
255
|
|
|
|
0.29
|
|
|
|
|
|
|
217
|
|
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
429
|
|
|
|
0.69
|
|
|
|
|
|
|
649
|
|
|
|
1.05
|
|
|
|
|
|
|
673
|
|
|
1.15
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
449
|
|
|
|
2.46
|
|
|
|
|
|
|
690
|
|
|
|
3.57
|
|
|
|
|
|
|
1,036
|
|
|
5.17
|
|
|
Credit card
|
|
|
|
|
235
|
|
|
|
3.96
|
|
|
|
|
|
|
222
|
|
|
|
3.71
|
|
|
|
|
|
|
212
|
|
|
3.67
|
|
|
Automobile
|
|
|
|
|
76
|
|
|
|
0.66
|
|
|
|
|
|
|
112
|
|
|
|
0.97
|
|
|
|
|
|
|
75
|
|
|
0.66
|
|
|
Other revolving credit and installment
|
|
|
|
|
140
|
|
|
|
1.37
|
|
|
|
|
|
|
153
|
|
|
|
1.46
|
|
|
|
|
|
|
145
|
|
|
1.38
|
|
|
Total consumer
|
|
|
|
|
1,329
|
|
|
|
1.23
|
|
|
|
|
|
|
1,826
|
|
|
|
1.68
|
|
|
|
|
|
|
2,141
|
|
|
2.01
|
|
|
Total
|
|
|
|
$
|
1,419
|
|
|
|
0.72
|
|
%
|
|
|
|
$
|
2,081
|
|
|
|
1.05
|
|
%
|
|
|
|
$
|
2,358
|
|
|
1.21
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation in PURCHASED CREDIT-IMPAIRED (PCI)
LOANS section of the accounting for purchased credit-impaired
(PCI) loans and the impact on selected financial ratios.
|
|
Nonperforming Assets
Nonperforming assets decreased by $1.6 billion in the quarter to $22.9
billion, compared with $24.5 billion in fourth quarter 2012. Nonaccrual
loans decreased to $19.5 billion from $20.5 billion in fourth
quarter 2012. Foreclosed assets were $3.4 billion, down from $4.0
billion in fourth quarter 2012.
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
|
|
Mar. 31, 2013
|
|
|
|
|
Dec. 31, 2012
|
|
|
|
|
Sept. 30, 2012
|
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
Total
|
|
|
total
|
|
|
|
|
Total
|
|
|
total
|
|
|
|
|
Total
|
|
|
total
|
|
|
($ in millions)
|
|
|
|
balances
|
|
|
loans
|
|
|
|
|
balances
|
|
|
loans
|
|
|
|
|
balances
|
|
|
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
$
|
1,193
|
|
|
|
0.64
|
|
%
|
|
|
$
|
1,422
|
|
|
|
0.76
|
|
%
|
|
|
$
|
1,404
|
|
|
0.79
|
|
%
|
Real estate mortgage
|
|
|
|
|
3,098
|
|
|
|
2.92
|
|
|
|
|
|
3,322
|
|
|
|
3.12
|
|
|
|
|
|
3,599
|
|
|
3.44
|
|
|
Real estate construction
|
|
|
|
|
870
|
|
|
|
5.23
|
|
|
|
|
|
1,003
|
|
|
|
5.93
|
|
|
|
|
|
1,253
|
|
|
7.08
|
|
|
Lease financing
|
|
|
|
|
25
|
|
|
|
0.20
|
|
|
|
|
|
27
|
|
|
|
0.22
|
|
|
|
|
|
49
|
|
|
0.40
|
|
|
Foreign
|
|
|
|
|
56
|
|
|
|
0.14
|
|
|
|
|
|
50
|
|
|
|
0.13
|
|
|
|
|
|
66
|
|
|
0.17
|
|
|
Total commercial
|
|
|
|
|
5,242
|
|
|
|
1.45
|
|
|
|
|
|
5,824
|
|
|
|
1.61
|
|
|
|
|
|
6,371
|
|
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
11,320
|
|
|
|
4.49
|
|
|
|
|
|
11,455
|
|
|
|
4.58
|
|
|
|
|
|
11,195
|
|
|
4.65
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
2,712
|
|
|
|
3.74
|
|
|
|
|
|
2,922
|
|
|
|
3.87
|
|
|
|
|
|
3,140
|
|
|
4.02
|
|
|
Automobile
|
|
|
|
|
220
|
|
|
|
0.47
|
|
|
|
|
|
245
|
|
|
|
0.53
|
|
|
|
|
|
295
|
|
|
0.64
|
|
|
Other revolving credit and installment
|
|
|
|
|
32
|
|
|
|
0.08
|
|
|
|
|
|
40
|
|
|
|
0.09
|
|
|
|
|
|
43
|
|
|
0.10
|
|
|
Total consumer (1)
|
|
|
|
|
14,284
|
|
|
|
3.26
|
|
|
|
|
|
14,662
|
|
|
|
3.34
|
|
|
|
|
|
14,673
|
|
|
3.41
|
|
|
Total nonaccrual loans
|
|
|
|
|
19,526
|
|
|
|
2.44
|
|
|
|
|
|
20,486
|
|
|
|
2.56
|
|
|
|
|
|
21,044
|
|
|
2.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GNMA
|
|
|
|
|
969
|
|
|
|
|
|
|
|
|
|
1,509
|
|
|
|
|
|
|
|
|
|
1,479
|
|
|
|
|
|
Non GNMA
|
|
|
|
|
2,381
|
|
|
|
|
|
|
|
|
|
2,514
|
|
|
|
|
|
|
|
|
|
2,730
|
|
|
|
|
|
Total foreclosed assets
|
|
|
|
|
3,350
|
|
|
|
|
|
|
|
|
|
4,023
|
|
|
|
|
|
|
|
|
|
4,209
|
|
|
|
|
|
Total nonperforming assets
|
|
|
|
$
|
22,876
|
|
|
|
2.86
|
|
%
|
|
|
$
|
24,509
|
|
|
|
3.07
|
|
%
|
|
|
$
|
25,253
|
|
|
3.23
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
|
$
|
(960
|
)
|
|
|
|
|
|
|
|
$
|
(558
|
)
|
|
|
|
|
|
|
|
$
|
466
|
|
|
|
|
|
Total nonperforming assets
|
|
|
|
|
(1,633
|
)
|
|
|
|
|
|
|
|
|
(744
|
)
|
|
|
|
|
|
|
|
|
368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $1.4 billion at September 30, 2012, resulting from
implementation of OCC guidance issued in third quarter 2012, which
requires consumer loans discharged in bankruptcy to be placed on
nonaccrual status and written down to net realizable collateral
value, regardless of their delinquency status.
|
|
Loans 90 Days or More Past Due and Still Accruing
Loans 90 days or more past due and still accruing (excluding government
insured/guaranteed) totaled $1.4 billion at March 31, 2013, compared
with $1.4 billion at December 31, 2012. Loans 90 days or more past due
and still accruing with repayments insured by the Federal Housing
Administration (FHA) or predominantly guaranteed by the Department of
Veterans Affairs (VA) for mortgages and the U.S. Department of Education
for student loans under the Federal Family Education Loan Program were
$21.7 billion at March 31, 2013, down slightly from $21.8 billion at
December 31, 2012.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $17.2 billion at March 31, 2012, down from $17.5
billion at December 31, 2012. The allowance coverage to total loans was
2.15 percent, compared with 2.19 percent in fourth quarter 2012. The
allowance covered 3.0 times annualized first quarter net charge-offs,
compared with 2.1 times in the prior quarter. The allowance coverage to
nonaccrual loans was 88 percent at March 31, 2013, compared with 85
percent at December 31, 2012. “We believe the allowance was appropriate
for losses inherent in the loan portfolio at March 31, 2013,” said
Loughlin.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
Community Banking
|
|
|
|
$
|
2,924
|
|
|
2,869
|
|
|
2,348
|
Wholesale Banking
|
|
|
|
|
2,045
|
|
|
2,032
|
|
|
1,868
|
Wealth, Brokerage and Retirement
|
|
|
|
|
337
|
|
|
351
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
|
More financial information about the business segments is in FIVE
QUARTER OPERATING SEGMENT RESULTS table.
Community Banking offers a
complete line of diversified financial products and services for
consumers and small businesses. These products include investment,
insurance and trust services in 39 states and D.C., and mortgage and
home equity loans in all 50 states and D.C. through its Regional Banking
and Wells Fargo Home Lending business units.
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
Total revenue
|
|
|
|
$
|
12,899
|
|
|
13,782
|
|
|
13,421
|
Provision for credit losses
|
|
|
|
|
1,262
|
|
|
1,757
|
|
|
1,878
|
Noninterest expense
|
|
|
|
|
7,377
|
|
|
8,033
|
|
|
7,825
|
Segment net income
|
|
|
|
|
2,924
|
|
|
2,869
|
|
|
2,348
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
|
498.9
|
|
|
493.1
|
|
|
486.1
|
Average assets
|
|
|
|
|
799.6
|
|
|
794.2
|
|
|
738.3
|
Average core deposits
|
|
|
|
|
619.2
|
|
|
608.9
|
|
|
575.2
|
|
Community Banking reported net income of $2.9 billion, up $55 million,
or 2 percent, from fourth quarter 2012. Revenue decreased $883 million,
or 6 percent, from fourth quarter 2012, primarily due to lower
volume-related mortgage banking revenue and above-average quarterly
equity gains in fourth quarter 2012. Noninterest expense declined $656
million, or 8 percent, from fourth quarter 2012, largely due to elevated
costs in fourth quarter 2012 including the Independent Foreclosure
Review (IFR) settlement and the contribution to the Wells Fargo
Foundation, partially offset by seasonally higher personnel costs in
first quarter 2013. The provision for credit losses was $495 million
lower than fourth quarter 2012 due to improved portfolio performance.
Net income was up $576 million, or 25 percent, from first quarter 2012.
Revenue decreased $522 million, or 4 percent, from first quarter 2012,
primarily due to lower net interest income, equity gains, and
volume-related mortgage banking revenue. Noninterest expense declined
$448 million, or 6 percent, from first quarter 2012, largely driven by
lower operating losses. The provision for credit losses was $616 million
lower than a year ago due to improved portfolio performance.
Regional Banking
-
Retail banking
-
Retail Bank household cross-sell ratio of 6.10 products per
household, up from 5.98 year-over-year9
-
Primary consumer checking customers10 up a net 2.1
percent year-over-year9
-
Consumer credit card, lines of credit and loan product solutions
(sales) in the retail banking stores in first quarter were up 20
percent from the prior year
-
Customers rated their experience with Wells Fargo stores and
contact centers at an all-time high based on first quarter survey
results
-
Platform banker FTE (active, full-time equivalent) grew by 1,528
from the prior year and 478 on a linked-quarter basis
-
Small Business/Business Banking
-
Business checking accounts up a net 2.9 percent year-over-year9
-
Business Direct credit card, lines of credit and loan product
solutions (primarily under $100,000 sold through our retail
banking stores) in first quarter were up 42 percent from the prior
year
-
$4.2 billion in net new loan commitments to small business
customers (primarily with annual revenues less than $20 million)
in first quarter, up 24 percent from the prior year
-
Online and Mobile Banking
-
22.5 million active online customers, up 7 percent year-over-year9
-
10.1 million active mobile customers, up 32 percent year-over-year9
Consumer Lending Group
-
Home Lending
-
Originations of $109 billion, compared with $125 billion in prior
quarter
-
Applications of $140 billion, compared with $152 billion in prior
quarter
-
Application pipeline of $74 billion at quarter end, compared with
$81 billion at December 31, 2012
-
Residential mortgage servicing portfolio of $1.9 trillion; ratio
of MSRs to related loans serviced for others was 70 basis points,
compared with 67 basis points in prior quarter
-
Average note rate on the servicing portfolio was 4.69 percent,
compared with 4.77 percent in prior quarter
-
Consumer Credit Solutions
-
Credit card penetration in retail banking households rose to 34.1
percent9, up from 29.9 percent in prior year
-
Record auto originations of $6.8 billion, up 27 percent from prior
quarter and up 10 percent from prior year
|
|
|
9
|
|
Data as of February 2013, comparisons with February 2012.
|
10
|
|
Customers who actively use their checking account with
transactions such as debit card purchases, online bill payments,
and direct deposit.
|
|
|
|
Wholesale Banking provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $20 million. Products and
business segments include Middle Market Commercial Banking, Government
and Institutional Banking, Corporate Banking, Commercial Real Estate,
Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage
Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities,
Principal Investments, Asset Backed Finance, and Asset Management.
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2012
|
Total revenue
|
|
|
|
$
|
6,086
|
|
|
|
5,993
|
|
|
6,033
|
Provision (reversal of provision) for credit losses
|
|
|
|
|
(58
|
)
|
|
|
60
|
|
|
95
|
Noninterest expense
|
|
|
|
|
3,091
|
|
|
|
3,007
|
|
|
3,054
|
Segment net income
|
|
|
|
|
2,045
|
|
|
|
2,032
|
|
|
1,868
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
|
284.5
|
|
|
|
279.2
|
|
|
268.6
|
Average assets
|
|
|
|
|
496.1
|
|
|
|
489.7
|
|
|
467.8
|
Average core deposits
|
|
|
|
|
224.1
|
|
|
|
240.7
|
|
|
220.9
|
|
Wholesale Banking reported net income of $2.0 billion, up $13 million,
or 1 percent, from fourth quarter 2012. Revenue of $6.1 billion
increased $93 million, or 2 percent, from fourth quarter 2012 as strong
growth across many businesses, including asset-backed finance, equity
funds and sales and trading were partially offset by lower investment
banking and PCI resolutions. Wholesale Banking average loan balances
increased 2 percent to $285 billion in the first quarter. Noninterest
expense increased $84 million, or 3 percent, from fourth quarter 2012 on
seasonally higher personnel benefits expense and insurance commissions.
The provision for credit losses was a net recovery of $58 million in the
first quarter, compared with a provision of $60 million in the fourth
quarter, primarily due to historically low net charge-offs.
Net income was up $177 million, or 9 percent, from first quarter 2012.
Revenue increased $53 million, or 1 percent, from first quarter 2012
driven by broad-based business growth and strong loan and deposit
growth. Partially offsetting this growth was a decline in PCI
resolutions. Noninterest expense increased $37 million, or 1 percent,
from first quarter 2012 due to higher personnel expenses related to
revenue growth and higher non-personnel expenses related to growth
initiatives and compliance and regulatory requirements. The provision
for credit losses decreased $153 million from first quarter 2012 due to
a $203 million reduction in credit losses which was partially offset by
a lower level of reserve release. The first quarter 2013 provision
included a $50 million reserve release, compared with a $100 million
reserve release a year ago.
-
Six percent year-over-year average loan and 6 percent average asset
growth—the growth came from nearly all portfolios, including
asset-backed finance, capital finance, commercial banking, commercial
real estate, corporate banking and government and institutional banking
-
Eleven consecutive quarters of average loan growth in Commercial
Banking
-
Investment banking revenue from Wholesale customers increased 14
percent from first quarter 2012, including revenue from commercial and
corporate customers which was up 2 percent
-
First quarter 2013 assets under management up 4 percent from first
quarter 2012 from $18.9 billion in net inflows and higher market
valuations
-
Cross-sell of 6.8 products per relationship as of December 2012, up
from 6.6 as of December 2011
Wealth, Brokerage and Retirement provides
a full range of financial advisory services to clients using a planning
approach to meet each client's needs. Wealth Management provides
affluent and high net worth clients with a complete range of wealth
management solutions, including financial planning, private banking,
credit, investment management and trust. Abbot Downing, a Wells Fargo
business, provides comprehensive wealth management services to ultra
high net worth families and individuals as well as their endowments and
foundations. Brokerage serves customers' advisory, brokerage and
financial needs as part of one of the largest full-service brokerage
firms in the United States. Retirement is a national leader in providing
institutional retirement and trust services (including 401(k) and
pension plan record keeping) for businesses, retail retirement solutions
for individuals, and reinsurance services for the life insurance
industry.
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
Total revenue
|
|
|
|
$
|
3,197
|
|
|
3,094
|
|
|
3,062
|
Provision for credit losses
|
|
|
|
|
14
|
|
|
15
|
|
|
43
|
Noninterest expense
|
|
|
|
|
2,639
|
|
|
2,513
|
|
|
2,547
|
Segment net income
|
|
|
|
|
337
|
|
|
351
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
|
43.8
|
|
|
43.3
|
|
|
42.5
|
Average assets
|
|
|
|
|
180.3
|
|
|
171.7
|
|
|
161.9
|
Average core deposits
|
|
|
|
|
149.4
|
|
|
143.4
|
|
|
135.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth, Brokerage and Retirement reported net income of $337 million,
down 4 percent from fourth quarter 2012. Total revenue of $3.2 billion
was up 3 percent from fourth quarter 2012. Excluding $42 million in
higher gains on deferred compensation plan investments (offset in
compensation expense), revenue was up 2 percent largely due to higher
brokerage transaction revenue and asset-based fees, partially offset by
lower net interest income. Noninterest expense increased 5 percent from
fourth quarter 2012 primarily due to the seasonal impact on personnel
expenses, higher deferred compensation expense (offset in trading
income), and increased broker commissions. Apart from the $41 million
increase in deferred compensation, noninterest expense increased 3
percent.
Net income was up 14 percent from first quarter 2012. Total revenue was
up 4 percent from first quarter 2012. Excluding $36 million in lower
gains on deferred compensation plan investments, revenue was up
6 percent predominantly due to strong growth in asset-based fees and
higher brokerage transaction revenue, partially offset by lower net
interest income and reduced securities gains in the brokerage business.
Total provision for credit losses decreased $29 million from first
quarter 2012, including a $6 million credit reserve release in first
quarter 2013. Noninterest expense increased 4 percent from first quarter
2012 driven by higher personnel expenses, primarily broker commissions,
partially offset by lower deferred compensation expense. Apart from the
$33 million decrease in deferred compensation, noninterest expense
increased 5 percent.
Retail Brokerage
-
Client assets of $1.3 trillion, up 7 percent from prior year
-
Managed account assets increased $46 billion, or 16 percent, from
prior year driven by strong net flows and market performance
-
Strong deposit growth, with average balances up 13 percent from prior
year
Wealth Management
-
Client assets of $208 billion, up 3 percent from prior year
-
Average deposit balances up 7 percent
Retirement
-
Institutional Retirement plan assets of $279 billion, up 9 percent
from prior year
-
IRA assets of $314 billion, up 9 percent from prior year
Conference Call
The Company will host a live conference call on Friday, April 12, at 7
a.m. PDT (10 a.m. EDT). To access the call, please dial 866-872-5161
(U.S. and Canada) or 706-643-1962 (International). No password is
required. The call is also available online at wellsfargo.com/invest_relations/earnings
and https://us.reg.meeting-stream.com/wellsfargo_041313.
A replay of the conference call will be available beginning at
approximately noon PDT (3 p.m. EDT) on April 12 through Friday, April
19. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #12552824. The replay will also
be available online at wellsfargo.com/invest_relations/earnings.
Cautionary Statement about Forward-Looking Information
In accordance with the Private Securities Litigation Reform Act of 1995,
we caution you that this news release contains forward-looking
statements about our future financial performance and business. We make
forward-looking statements when we use words such as “believe,”
“expect,” “anticipate,” “estimate,” “target,” “should,” “may,” “can,”
“will,” “outlook,” “project,” “appears” or similar expressions.
Forward-looking statements in this news release include, among others,
statements about: (i) future credit quality and performance, and the
appropriateness of the allowance for credit losses, including our
current expectation of future reserve releases; (ii) our expectations
regarding noninterest expense and our targeted efficiency ratio; (iii)
our full year 2013 effective income tax rate; (iv) our estimate
regarding our Tier 1 common equity ratio under proposed Basel III
capital rules as of March 31, 2013; and (v) possible future common stock
dividends and repurchases.
Do not unduly rely on forward-looking statements as actual results could
differ materially from expectations. Forward-looking statements speak
only as of the date made, and we do not undertake to update them to
reflect changes or events that occur after that date. Several factors
could cause actual results to differ materially from expectations
including: current and future economic and market conditions, including
the effects of further declines in housing prices, high unemployment
rates, U.S. fiscal debt, budget and tax matters, and the sovereign debt
crisis and economic difficulties in Europe; our capital requirements
(including under regulatory capital standards as determined and
interpreted by applicable regulatory authorities such as the proposed
Basel III capital rules) and our ability to generate capital internally
or raise capital on favorable terms; financial services reform and other
current, pending or future legislation or regulation that could have a
negative effect on our revenue and businesses (including the Dodd-Frank
Wall Street Reform and Consumer Protection Act), as well as our ability
to mitigate the loss of revenue and income from financial services
reform and other regulation and legislation; the extent of success in
our loan modification efforts, including the effects of regulatory
requirements, or changes in regulatory requirements, relating to loan
modifications; the amount of mortgage loan repurchase demands that we
receive and our ability to satisfy any such demands without having to
repurchase loans related thereto or otherwise indemnify or reimburse
third parties; negative effects relating to mortgage servicing and
foreclosures, as well as effects associated with our settlement with the
Department of Justice and other federal and state government entities
related to our mortgage servicing and foreclosure practices, including
changes in our procedures or practices and/or industry standards or
practices, regulatory or judicial requirements, penalties or fines,
increased servicing and other costs or obligations, including loan
modification requirements, or delays or moratoriums on foreclosures; our
ability to realize our efficiency ratio target as part of our expense
management initiatives when and in the range targeted, including as a
result of business and economic cyclicality, seasonality, changes in our
business composition and operating environment, growth in our businesses
and/or acquisitions, and unexpected expenses relating to, among other
things, litigation and regulatory matters; a failure in or breach of our
operational or security systems or infrastructure, or those of our third
party vendors and other service providers; recognition of
other-than-temporary impairment on securities held in our
available-for-sale portfolio; the effect of the current low interest
rate environment or changes in interest rates on our net interest margin
and our mortgage originations, mortgage servicing rights and mortgages
held for sale; hedging gains or losses; disruptions in the capital
markets and reduced investor demand for mortgage loans; our ability to
sell more products to our customers; the effect of fluctuations in stock
market prices on fee income from our brokerage, asset and wealth
management businesses; our election to provide support to our money
market funds; changes in the value of our venture capital investments;
changes in our accounting policies or in accounting standards or in how
accounting standards are to be applied; changes in our credit ratings
and changes in the credit ratings of our customers or counterparties;
mergers and acquisitions; federal and state regulations; reputational
damage from negative publicity, fines, penalties and other negative
consequences from regulatory violations and legal actions; the loss of
checking and saving account deposits to other investments such as the
stock market; and fiscal and monetary policies of the Federal Reserve
Board. There is no assurance that our allowance for credit losses will
be adequate to cover future credit losses, especially if housing prices
decline and unemployment worsens. Increases in loan charge-offs or in
the allowance for credit losses and related provision expense could
materially adversely affect our financial results and condition. The
amount and timing of any future common stock dividends or repurchases
will depend on the earnings, cash requirements and financial condition
of the Company, market conditions, capital requirements (including under
Basel capital standards), common stock issuance requirements, applicable
law and regulations (including federal securities laws and federal
banking regulations), and other factors deemed relevant by the Company’s
Board of Directors, and may be subject to regulatory approval or
conditions. For more information about factors that could cause actual
results to differ materially from our expectations, refer to our reports
filed with the Securities and Exchange Commission, including the
discussion under “Risk Factors” in our Annual Report on Form 10-K for
the year ended December 31, 2012, as filed with the SEC and available on
the SEC’s website at www.sec.gov.
Any factor described above or in our SEC reports could, by itself or
together with one or more other factors, adversely affect our financial
results and condition.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.4 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial
finance through more than 9,000 stores, 12,000 ATMs, and the Internet
(wellsfargo.com), and has offices in more than 35 countries to support
the bank’s customers who conduct business in the global economy. With
more than 275,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 26
on Fortune’s 2012 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy all our customers’ financial needs and help
them succeed financially.
|
Wells Fargo & Company and Subsidiaries
|
QUARTERLY FINANCIAL DATA
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
|
|
Pages
|
|
|
|
|
|
Summary Information
|
|
|
|
|
Summary Financial Data
|
|
|
|
17-18
|
|
|
|
|
|
Income
|
|
|
|
|
Consolidated Statement of Income
|
|
|
|
19
|
Consolidated Statement of Comprehensive Income
|
|
|
|
20
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
|
|
20
|
Five Quarter Consolidated Statement of Income
|
|
|
|
21
|
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
|
|
22
|
Noninterest Income and Noninterest Expense
|
|
|
|
23-24
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
Consolidated Balance Sheet
|
|
|
|
25-26
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
|
|
27
|
|
|
|
|
|
Loans
|
|
|
|
|
Securities Available for Sale
|
|
|
|
28
|
Loans
|
|
|
|
28
|
Nonperforming Assets
|
|
|
|
29
|
Loans 90 Days or More Past Due and Still Accruing
|
|
|
|
30
|
Purchased Credit-Impaired Loans
|
|
|
|
31-33
|
Pick-A-Pay Portfolio
|
|
|
|
34
|
Non-Strategic and Liquidating Loan Portfolios
|
|
|
|
34
|
Changes in Allowance for Credit Losses
|
|
|
|
35
|
|
|
|
|
|
Equity
|
|
|
|
|
Tier 1 Common Equity
|
|
|
|
36
|
|
|
|
|
|
Operating Segments
|
|
|
|
|
Operating Segment Results
|
|
|
|
37
|
|
|
|
|
|
Other
|
|
|
|
|
Mortgage Servicing and other related data
|
|
|
|
38-40
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
Quarter ended
|
|
|
Mar. 31, 2013 from
|
|
|
|
|
|
Mar. 31,
|
|
|
|
|
Dec. 31,
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
|
|
Mar. 31,
|
($ in millions, except per share amounts)
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
|
|
2012
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
|
$
|
5,171
|
|
|
|
|
5,090
|
|
|
4,248
|
|
|
2
|
|
%
|
|
|
22
|
Wells Fargo net income applicable to common stock
|
|
|
|
|
4,931
|
|
|
|
|
4,857
|
|
|
4,022
|
|
|
2
|
|
|
|
|
23
|
Diluted earnings per common share
|
|
|
|
|
0.92
|
|
|
|
|
0.91
|
|
|
0.75
|
|
|
1
|
|
|
|
|
23
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
|
1.49
|
|
%
|
|
|
1.46
|
|
|
1.31
|
|
|
2
|
|
|
|
|
14
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders' equity (ROE)
|
|
|
|
|
13.59
|
|
|
|
|
13.35
|
|
|
12.14
|
|
|
2
|
|
|
|
|
12
|
Efficiency ratio (1)
|
|
|
|
|
58.3
|
|
|
|
|
58.8
|
|
|
60.1
|
|
|
(1)
|
|
|
|
|
(3)
|
Total revenue
|
|
|
|
$
|
21,259
|
|
|
|
|
21,948
|
|
|
21,636
|
|
|
(3)
|
|
|
|
|
(2)
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
|
|
|
8,859
|
|
|
|
|
9,052
|
|
|
8,643
|
|
|
(2)
|
|
|
|
|
2
|
Dividends declared per common share
|
|
|
|
|
0.25
|
|
|
|
|
0.22
|
|
|
0.22
|
|
|
14
|
|
|
|
|
14
|
Average common shares outstanding
|
|
|
|
|
5,279.0
|
|
|
|
|
5,272.4
|
|
|
5,282.6
|
|
|
-
|
|
|
|
|
-
|
Diluted average common shares outstanding
|
|
|
|
|
5,353.5
|
|
|
|
|
5,338.7
|
|
|
5,337.8
|
|
|
-
|
|
|
|
|
-
|
Average loans
|
|
|
|
$
|
798,074
|
|
|
|
|
787,210
|
|
|
768,582
|
|
|
1
|
|
|
|
|
4
|
Average assets
|
|
|
|
|
1,404,334
|
|
|
|
|
1,387,056
|
|
|
1,302,921
|
|
|
1
|
|
|
|
|
8
|
Average core deposits (3)
|
|
|
|
|
925,866
|
|
|
|
|
928,824
|
|
|
870,516
|
|
|
-
|
|
|
|
|
6
|
Average retail core deposits (4)
|
|
|
|
|
662,913
|
|
|
|
|
646,145
|
|
|
616,569
|
|
|
3
|
|
|
|
|
8
|
Net interest margin
|
|
|
|
|
3.48
|
|
%
|
|
|
3.56
|
|
|
3.91
|
|
|
(2)
|
|
|
|
|
(11)
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale
|
|
|
|
$
|
248,160
|
|
|
|
|
235,199
|
|
|
230,266
|
|
|
6
|
|
|
|
|
8
|
Loans
|
|
|
|
|
799,966
|
|
|
|
|
799,574
|
|
|
766,521
|
|
|
-
|
|
|
|
|
4
|
Allowance for loan losses
|
|
|
|
|
16,711
|
|
|
|
|
17,060
|
|
|
18,852
|
|
|
(2)
|
|
|
|
|
(11)
|
Goodwill
|
|
|
|
|
25,637
|
|
|
|
|
25,637
|
|
|
25,140
|
|
|
-
|
|
|
|
|
2
|
Assets
|
|
|
|
|
1,436,634
|
|
|
|
|
1,422,968
|
|
|
1,333,799
|
|
|
1
|
|
|
|
|
8
|
Core deposits (3)
|
|
|
|
|
939,934
|
|
|
|
|
945,749
|
|
|
888,711
|
|
|
(1)
|
|
|
|
|
6
|
Wells Fargo stockholders' equity
|
|
|
|
|
162,086
|
|
|
|
|
157,554
|
|
|
145,516
|
|
|
3
|
|
|
|
|
11
|
Total equity
|
|
|
|
|
163,395
|
|
|
|
|
158,911
|
|
|
146,849
|
|
|
3
|
|
|
|
|
11
|
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets
|
|
|
|
|
11.37
|
|
%
|
|
|
11.17
|
|
|
11.01
|
|
|
2
|
|
|
|
|
3
|
Risk-based capital (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
|
11.79
|
|
|
|
|
11.75
|
|
|
11.78
|
|
|
-
|
|
|
|
|
-
|
Total capital
|
|
|
|
|
14.75
|
|
|
|
|
14.63
|
|
|
15.13
|
|
|
1
|
|
|
|
|
(3)
|
Tier 1 leverage (5)
|
|
|
|
|
9.53
|
|
|
|
|
9.47
|
|
|
9.35
|
|
|
1
|
|
|
|
|
2
|
Tier 1 common equity (5)(6)
|
|
|
|
|
10.38
|
|
|
|
|
10.12
|
|
|
9.98
|
|
|
3
|
|
|
|
|
4
|
Common shares outstanding
|
|
|
|
|
5,288.8
|
|
|
|
|
5,266.3
|
|
|
5,301.5
|
|
|
-
|
|
|
|
|
-
|
Book value per common share
|
|
|
|
$
|
28.27
|
|
|
|
|
27.64
|
|
|
25.45
|
|
|
2
|
|
|
|
|
11
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
|
38.20
|
|
|
|
|
36.34
|
|
|
34.59
|
|
|
5
|
|
|
|
|
10
|
Low
|
|
|
|
|
34.43
|
|
|
|
|
31.25
|
|
|
27.94
|
|
|
10
|
|
|
|
|
23
|
Period end
|
|
|
|
|
36.99
|
|
|
|
|
34.18
|
|
|
34.14
|
|
|
8
|
|
|
|
|
8
|
Team members (active, full-time equivalent)
|
|
|
|
|
274,300
|
|
|
|
|
269,200
|
|
|
264,900
|
|
|
2
|
|
|
|
|
4
|
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to assess
the Company's ability to generate capital to cover credit losses
through a credit cycle.
|
(3) Core deposits are noninterest-bearing deposits, interest-bearing
checking, savings certificates, certain market rate and other
savings, and certain foreign deposits (Eurodollar sweep balances).
|
(4) Retail core deposits are total core deposits excluding Wholesale
Banking core deposits and retail mortgage escrow deposits.
|
(5) The March 31, 2013, ratios are preliminary.
|
(6) See the "Five Quarter Tier 1 Common Equity Under Basel I" table
for additional information.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
($ in millions, except per share amounts)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
|
$
|
5,171
|
|
|
|
5,090
|
|
|
4,937
|
|
|
4,622
|
|
|
4,248
|
Wells Fargo net income applicable to common stock
|
|
|
|
|
4,931
|
|
|
|
4,857
|
|
|
4,717
|
|
|
4,403
|
|
|
4,022
|
Diluted earnings per common share
|
|
|
|
|
0.92
|
|
|
|
0.91
|
|
|
0.88
|
|
|
0.82
|
|
|
0.75
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
|
1.49
|
|
%
|
|
1.46
|
|
|
1.45
|
|
|
1.41
|
|
|
1.31
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders' equity (ROE)
|
|
|
|
|
13.59
|
|
|
|
13.35
|
|
|
13.38
|
|
|
12.86
|
|
|
12.14
|
Efficiency ratio (1)
|
|
|
|
|
58.3
|
|
|
|
58.8
|
|
|
57.1
|
|
|
58.2
|
|
|
60.1
|
Total revenue
|
|
|
|
$
|
21,259
|
|
|
|
21,948
|
|
|
21,213
|
|
|
21,289
|
|
|
21,636
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
|
|
|
8,859
|
|
|
|
9,052
|
|
|
9,101
|
|
|
8,892
|
|
|
8,643
|
Dividends declared per common share
|
|
|
|
|
0.25
|
|
|
|
0.22
|
|
|
0.22
|
|
|
0.22
|
|
|
0.22
|
Average common shares outstanding
|
|
|
|
|
5,279.0
|
|
|
|
5,272.4
|
|
|
5,288.1
|
|
|
5,306.9
|
|
|
5,282.6
|
Diluted average common shares outstanding
|
|
|
|
|
5,353.5
|
|
|
|
5,338.7
|
|
|
5,355.6
|
|
|
5,369.9
|
|
|
5,337.8
|
Average loans
|
|
|
|
$
|
798,074
|
|
|
|
787,210
|
|
|
776,734
|
|
|
768,223
|
|
|
768,582
|
Average assets
|
|
|
|
|
1,404,334
|
|
|
|
1,387,056
|
|
|
1,354,340
|
|
|
1,321,584
|
|
|
1,302,921
|
Average core deposits (3)
|
|
|
|
|
925,866
|
|
|
|
928,824
|
|
|
895,374
|
|
|
880,636
|
|
|
870,516
|
Average retail core deposits (4)
|
|
|
|
|
662,913
|
|
|
|
646,145
|
|
|
630,053
|
|
|
624,329
|
|
|
616,569
|
Net interest margin
|
|
|
|
|
3.48
|
|
%
|
|
3.56
|
|
|
3.66
|
|
|
3.91
|
|
|
3.91
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale
|
|
|
|
$
|
248,160
|
|
|
|
235,199
|
|
|
229,350
|
|
|
226,846
|
|
|
230,266
|
Loans
|
|
|
|
|
799,966
|
|
|
|
799,574
|
|
|
782,630
|
|
|
775,199
|
|
|
766,521
|
Allowance for loan losses
|
|
|
|
|
16,711
|
|
|
|
17,060
|
|
|
17,385
|
|
|
18,320
|
|
|
18,852
|
Goodwill
|
|
|
|
|
25,637
|
|
|
|
25,637
|
|
|
25,637
|
|
|
25,406
|
|
|
25,140
|
Assets
|
|
|
|
|
1,436,634
|
|
|
|
1,422,968
|
|
|
1,374,715
|
|
|
1,336,204
|
|
|
1,333,799
|
Core deposits (3)
|
|
|
|
|
939,934
|
|
|
|
945,749
|
|
|
901,075
|
|
|
882,137
|
|
|
888,711
|
Wells Fargo stockholders' equity
|
|
|
|
|
162,086
|
|
|
|
157,554
|
|
|
154,679
|
|
|
148,070
|
|
|
145,516
|
Total equity
|
|
|
|
|
163,395
|
|
|
|
158,911
|
|
|
156,059
|
|
|
149,437
|
|
|
146,849
|
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets
|
|
|
|
|
11.37
|
|
%
|
|
11.17
|
|
|
11.35
|
|
|
11.18
|
|
|
11.01
|
Risk-based capital (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
|
11.79
|
|
|
|
11.75
|
|
|
11.50
|
|
|
11.69
|
|
|
11.78
|
Total capital
|
|
|
|
|
14.75
|
|
|
|
14.63
|
|
|
14.51
|
|
|
14.85
|
|
|
15.13
|
Tier 1 leverage (5)
|
|
|
|
|
9.53
|
|
|
|
9.47
|
|
|
9.40
|
|
|
9.25
|
|
|
9.35
|
Tier 1 common equity (5)(6)
|
|
|
|
|
10.38
|
|
|
|
10.12
|
|
|
9.92
|
|
|
10.08
|
|
|
9.98
|
Common shares outstanding
|
|
|
|
|
5,288.8
|
|
|
|
5,266.3
|
|
|
5,289.6
|
|
|
5,275.7
|
|
|
5,301.5
|
Book value per common share
|
|
|
|
$
|
28.27
|
|
|
|
27.64
|
|
|
27.10
|
|
|
26.06
|
|
|
25.45
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
|
38.20
|
|
|
|
36.34
|
|
|
36.60
|
|
|
34.59
|
|
|
34.59
|
Low
|
|
|
|
|
34.43
|
|
|
|
31.25
|
|
|
32.62
|
|
|
29.80
|
|
|
27.94
|
Period end
|
|
|
|
|
36.99
|
|
|
|
34.18
|
|
|
34.53
|
|
|
33.44
|
|
|
34.14
|
Team members (active, full-time equivalent)
|
|
|
|
|
274,300
|
|
|
|
269,200
|
|
|
267,000
|
|
|
264,400
|
|
|
264,900
|
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to assess
the Company's ability to generate capital to cover credit losses
through a credit cycle.
|
(3) Core deposits are noninterest-bearing deposits, interest-bearing
checking, savings certificates, certain market rate and other
savings, and certain foreign deposits (Eurodollar sweep balances).
|
(4) Retail core deposits are total core deposits excluding Wholesale
Banking core deposits and retail mortgage escrow deposits.
|
(5) The March 31, 2013, ratios are preliminary.
|
(6) See the "Five Quarter Tier 1 Common Equity under Basel I" table
for additional information.
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
(in millions, except per share amounts)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
|
$
|
327
|
|
|
377
|
|
|
|
(13
|
)
|
|
%
|
Securities available for sale
|
|
|
|
|
1,925
|
|
|
2,088
|
|
|
|
(8
|
)
|
|
|
Mortgages held for sale
|
|
|
|
|
371
|
|
|
459
|
|
|
|
(19
|
)
|
|
|
Loans held for sale
|
|
|
|
|
3
|
|
|
9
|
|
|
|
(67
|
)
|
|
|
Loans
|
|
|
|
|
8,861
|
|
|
9,197
|
|
|
|
(4
|
)
|
|
|
Other interest income
|
|
|
|
|
163
|
|
|
125
|
|
|
|
30
|
|
|
|
Total interest income
|
|
|
|
|
11,650
|
|
|
12,255
|
|
|
|
(5
|
)
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
369
|
|
|
457
|
|
|
|
(19
|
)
|
|
|
Short-term borrowings
|
|
|
|
|
20
|
|
|
16
|
|
|
|
25
|
|
|
|
Long-term debt
|
|
|
|
|
697
|
|
|
830
|
|
|
|
(16
|
)
|
|
|
Other interest expense
|
|
|
|
|
65
|
|
|
64
|
|
|
|
2
|
|
|
|
Total interest expense
|
|
|
|
|
1,151
|
|
|
1,367
|
|
|
|
(16
|
)
|
|
|
Net interest income
|
|
|
|
|
10,499
|
|
|
10,888
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses
|
|
|
|
|
1,219
|
|
|
1,995
|
|
|
|
(39
|
)
|
|
|
Net interest income after provision for credit losses
|
|
|
|
|
9,280
|
|
|
8,893
|
|
|
|
4
|
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
|
1,214
|
|
|
1,084
|
|
|
|
12
|
|
|
|
Trust and investment fees
|
|
|
|
|
3,202
|
|
|
2,839
|
|
|
|
13
|
|
|
|
Card fees
|
|
|
|
|
738
|
|
|
654
|
|
|
|
13
|
|
|
|
Other fees
|
|
|
|
|
1,034
|
|
|
1,095
|
|
|
|
(6
|
)
|
|
|
Mortgage banking
|
|
|
|
|
2,794
|
|
|
2,870
|
|
|
|
(3
|
)
|
|
|
Insurance
|
|
|
|
|
463
|
|
|
519
|
|
|
|
(11
|
)
|
|
|
Net gains from trading activities
|
|
|
|
|
570
|
|
|
640
|
|
|
|
(11
|
)
|
|
|
Net gains (losses) on debt securities available for sale
|
|
|
|
|
45
|
|
|
(7
|
)
|
|
|
NM
|
|
|
|
Net gains from equity investments
|
|
|
|
|
113
|
|
|
364
|
|
|
|
(69
|
)
|
|
|
Lease income
|
|
|
|
|
130
|
|
|
59
|
|
|
|
120
|
|
|
|
Other
|
|
|
|
|
457
|
|
|
631
|
|
|
|
(28
|
)
|
|
|
Total noninterest income
|
|
|
|
|
10,760
|
|
|
10,748
|
|
|
|
-
|
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
|
3,663
|
|
|
3,601
|
|
|
|
2
|
|
|
|
Commission and incentive compensation
|
|
|
|
|
2,577
|
|
|
2,417
|
|
|
|
7
|
|
|
|
Employee benefits
|
|
|
|
|
1,583
|
|
|
1,608
|
|
|
|
(2
|
)
|
|
|
Equipment
|
|
|
|
|
528
|
|
|
557
|
|
|
|
(5
|
)
|
|
|
Net occupancy
|
|
|
|
|
719
|
|
|
704
|
|
|
|
2
|
|
|
|
Core deposit and other intangibles
|
|
|
|
|
377
|
|
|
419
|
|
|
|
(10
|
)
|
|
|
FDIC and other deposit assessments
|
|
|
|
|
292
|
|
|
357
|
|
|
|
(18
|
)
|
|
|
Other
|
|
|
|
|
2,661
|
|
|
3,330
|
|
|
|
(20
|
)
|
|
|
Total noninterest expense
|
|
|
|
|
12,400
|
|
|
12,993
|
|
|
|
(5
|
)
|
|
|
Income before income tax expense
|
|
|
|
|
7,640
|
|
|
6,648
|
|
|
|
15
|
|
|
|
Income tax expense
|
|
|
|
|
2,420
|
|
|
2,328
|
|
|
|
4
|
|
|
|
Net income before noncontrolling interests
|
|
|
|
|
5,220
|
|
|
4,320
|
|
|
|
21
|
|
|
|
Less: Net income from noncontrolling interests
|
|
|
|
|
49
|
|
|
72
|
|
|
|
(32
|
)
|
|
|
Wells Fargo net income
|
|
|
|
$
|
5,171
|
|
|
4,248
|
|
|
|
22
|
|
|
|
Less: Preferred stock dividends and other
|
|
|
|
|
240
|
|
|
226
|
|
|
|
6
|
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
|
$
|
4,931
|
|
|
4,022
|
|
|
|
23
|
|
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
$
|
0.93
|
|
|
0.76
|
|
|
|
22
|
|
|
|
Diluted earnings per common share
|
|
|
|
|
0.92
|
|
|
0.75
|
|
|
|
23
|
|
|
|
Dividends declared per common share
|
|
|
|
|
0.25
|
|
|
0.22
|
|
|
|
14
|
|
|
|
Average common shares outstanding
|
|
|
|
|
5,279.0
|
|
|
5,282.6
|
|
|
|
-
|
|
|
|
Diluted average common shares outstanding
|
|
|
|
|
5,353.5
|
|
|
5,337.8
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
|
(in millions)
|
|
|
|
2013
|
|
|
2012
|
|
|
Change
|
|
|
Wells Fargo net income
|
|
|
$
|
5,171
|
|
|
4,248
|
|
|
22
|
|
%
|
Other comprehensive income, before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(18)
|
|
|
10
|
|
|
NM
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(634)
|
|
|
1,874
|
|
|
NM
|
|
|
Reclassification of net gains to net income
|
|
|
|
(113)
|
|
|
(226)
|
|
|
(50)
|
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
7
|
|
|
42
|
|
|
(83)
|
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(87)
|
|
|
(107)
|
|
|
(19)
|
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial gains (losses) arising during the period
|
|
|
|
6
|
|
|
(5)
|
|
|
NM
|
|
|
Amortization of net actuarial loss and other costs to net income
|
|
|
|
49
|
|
|
36
|
|
|
36
|
|
|
Other comprehensive income (loss), before tax
|
|
|
|
(790)
|
|
|
1,624
|
|
|
NM
|
|
|
Income tax (expense) benefit related to other comprehensive income
|
|
|
|
288
|
|
|
(611)
|
|
|
NM
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
(502)
|
|
|
1,013
|
|
|
NM
|
|
|
Less: Other comprehensive income from noncontrolling interests
|
|
|
|
3
|
|
|
4
|
|
|
(25)
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
(505)
|
|
|
1,009
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo comprehensive income
|
|
|
|
4,666
|
|
|
5,257
|
|
|
(11)
|
|
|
Comprehensive income from noncontrolling interests
|
|
|
|
52
|
|
|
76
|
|
|
(32)
|
|
|
Total comprehensive income
|
|
|
$
|
4,718
|
|
|
5,333
|
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
(1) There was no sale or liquidation of an investment in a foreign
entity, and therefore no reclassification adjustment for the
quarters ended March 31, 2013 and 2012, respectively.
|
|
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
|
|
|
|
|
|
Quarter ended March 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
Balance, beginning of period
|
|
|
|
$
|
158,911
|
|
|
|
141,687
|
|
Cumulative effect of fair value election for certain residential
mortgage servicing rights
|
|
|
|
|
-
|
|
|
|
2
|
|
Balance, beginning of period - adjusted
|
|
|
|
|
158,911
|
|
|
|
141,689
|
|
Wells Fargo net income
|
|
|
|
|
5,171
|
|
|
|
4,248
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
|
(505
|
)
|
|
|
1,009
|
|
Common stock issued
|
|
|
|
|
878
|
|
|
|
879
|
|
Common stock repurchased
|
|
|
|
|
(383
|
)
|
|
|
(64
|
)
|
Preferred stock released by ESOP
|
|
|
|
|
296
|
|
|
|
270
|
|
Preferred stock issued
|
|
|
|
|
610
|
|
|
|
-
|
|
Common stock dividends
|
|
|
|
|
(1,319
|
)
|
|
|
(1,165
|
)
|
Preferred stock dividends and other
|
|
|
|
|
(240
|
)
|
|
|
(226
|
)
|
Noncontrolling interests and other, net
|
|
|
|
|
(24
|
)
|
|
|
209
|
|
Balance, end of period
|
|
|
|
$
|
163,395
|
|
|
|
146,849
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
(in millions, except per share amounts)
|
|
|
|
|
2013
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
|
$
|
327
|
|
339
|
|
299
|
|
343
|
|
377
|
Securities available for sale
|
|
|
|
|
1,925
|
|
1,897
|
|
1,966
|
|
2,147
|
|
2,088
|
Mortgages held for sale
|
|
|
|
|
371
|
|
413
|
|
476
|
|
477
|
|
459
|
Loans held for sale
|
|
|
|
|
3
|
|
3
|
|
17
|
|
12
|
|
9
|
Loans
|
|
|
|
|
8,861
|
|
9,027
|
|
9,016
|
|
9,242
|
|
9,197
|
Other interest income
|
|
|
|
|
163
|
|
178
|
|
151
|
|
133
|
|
125
|
Total interest income
|
|
|
|
|
11,650
|
|
11,857
|
|
11,925
|
|
12,354
|
|
12,255
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
369
|
|
399
|
|
428
|
|
443
|
|
457
|
Short-term borrowings
|
|
|
|
|
20
|
|
24
|
|
19
|
|
20
|
|
16
|
Long-term debt
|
|
|
|
|
697
|
|
735
|
|
756
|
|
789
|
|
830
|
Other interest expense
|
|
|
|
|
65
|
|
56
|
|
60
|
|
65
|
|
64
|
Total interest expense
|
|
|
|
|
1,151
|
|
1,214
|
|
1,263
|
|
1,317
|
|
1,367
|
Net interest income
|
|
|
|
|
10,499
|
|
10,643
|
|
10,662
|
|
11,037
|
|
10,888
|
Provision for credit losses
|
|
|
|
|
1,219
|
|
1,831
|
|
1,591
|
|
1,800
|
|
1,995
|
Net interest income after provision for credit losses
|
|
|
|
|
9,280
|
|
8,812
|
|
9,071
|
|
9,237
|
|
8,893
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
|
1,214
|
|
1,250
|
|
1,210
|
|
1,139
|
|
1,084
|
Trust and investment fees
|
|
|
|
|
3,202
|
|
3,199
|
|
2,954
|
|
2,898
|
|
2,839
|
Card fees
|
|
|
|
|
738
|
|
736
|
|
744
|
|
704
|
|
654
|
Other fees
|
|
|
|
|
1,034
|
|
1,193
|
|
1,097
|
|
1,134
|
|
1,095
|
Mortgage banking
|
|
|
|
|
2,794
|
|
3,068
|
|
2,807
|
|
2,893
|
|
2,870
|
Insurance
|
|
|
|
|
463
|
|
395
|
|
414
|
|
522
|
|
519
|
Net gains from trading activities
|
|
|
|
|
570
|
|
275
|
|
529
|
|
263
|
|
640
|
Net gains (losses) on debt securities available for sale
|
|
|
|
|
45
|
|
(63)
|
|
3
|
|
(61)
|
|
(7)
|
Net gains from equity investments
|
|
|
|
|
113
|
|
715
|
|
164
|
|
242
|
|
364
|
Lease income
|
|
|
|
|
130
|
|
170
|
|
218
|
|
120
|
|
59
|
Other
|
|
|
|
|
457
|
|
367
|
|
411
|
|
398
|
|
631
|
Total noninterest income
|
|
|
|
|
10,760
|
|
11,305
|
|
10,551
|
|
10,252
|
|
10,748
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
|
3,663
|
|
3,735
|
|
3,648
|
|
3,705
|
|
3,601
|
Commission and incentive compensation
|
|
|
|
|
2,577
|
|
2,365
|
|
2,368
|
|
2,354
|
|
2,417
|
Employee benefits
|
|
|
|
|
1,583
|
|
891
|
|
1,063
|
|
1,049
|
|
1,608
|
Equipment
|
|
|
|
|
528
|
|
542
|
|
510
|
|
459
|
|
557
|
Net occupancy
|
|
|
|
|
719
|
|
728
|
|
727
|
|
698
|
|
704
|
Core deposit and other intangibles
|
|
|
|
|
377
|
|
418
|
|
419
|
|
418
|
|
419
|
FDIC and other deposit assessments
|
|
|
|
|
292
|
|
307
|
|
359
|
|
333
|
|
357
|
Other
|
|
|
|
|
2,661
|
|
3,910
|
|
3,018
|
|
3,381
|
|
3,330
|
Total noninterest expense
|
|
|
|
|
12,400
|
|
12,896
|
|
12,112
|
|
12,397
|
|
12,993
|
Income before income tax expense
|
|
|
|
|
7,640
|
|
7,221
|
|
7,510
|
|
7,092
|
|
6,648
|
Income tax expense
|
|
|
|
|
2,420
|
|
1,924
|
|
2,480
|
|
2,371
|
|
2,328
|
Net income before noncontrolling interests
|
|
|
|
|
5,220
|
|
5,297
|
|
5,030
|
|
4,721
|
|
4,320
|
Less: Net income from noncontrolling interests
|
|
|
|
|
49
|
|
207
|
|
93
|
|
99
|
|
72
|
Wells Fargo net income
|
|
|
|
$
|
5,171
|
|
5,090
|
|
4,937
|
|
4,622
|
|
4,248
|
Less: Preferred stock dividends and other
|
|
|
|
|
240
|
|
233
|
|
220
|
|
219
|
|
226
|
Wells Fargo net income applicable to common stock
|
|
|
|
$
|
4,931
|
|
4,857
|
|
4,717
|
|
4,403
|
|
4,022
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
$
|
0.93
|
|
0.92
|
|
0.89
|
|
0.83
|
|
0.76
|
Diluted earnings per common share
|
|
|
|
|
0.92
|
|
0.91
|
|
0.88
|
|
0.82
|
|
0.75
|
Dividends declared per common share
|
|
|
|
|
0.25
|
|
0.22
|
|
0.22
|
|
0.22
|
|
0.22
|
Average common shares outstanding
|
|
|
|
|
5,279.0
|
|
5,272.4
|
|
5,288.1
|
|
5,306.9
|
|
5,282.6
|
Diluted average common shares outstanding
|
|
|
|
|
5,353.5
|
|
5,338.7
|
|
5,355.6
|
|
5,369.9
|
|
5,337.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS)
(1)(2)
|
|
|
|
|
|
Quarter ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Average
|
|
Yields/
|
|
|
|
income/
|
|
|
Average
|
|
Yields/
|
|
|
|
income/
|
(in millions)
|
|
|
|
|
balance
|
|
rates
|
|
|
|
expense
|
|
|
balance
|
|
rates
|
|
|
|
expense
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements
and other short-term investments
|
|
|
|
$
|
121,024
|
|
0.36
|
%
|
|
$
|
107
|
|
|
56,020
|
|
0.52
|
%
|
|
$
|
73
|
Trading assets
|
|
|
|
|
42,130
|
|
3.17
|
|
|
|
334
|
|
|
43,766
|
|
3.50
|
|
|
|
383
|
Securities available for sale (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
|
7,079
|
|
1.56
|
|
|
|
28
|
|
|
5,797
|
|
0.97
|
|
|
|
14
|
Securities of U.S. states and political subdivisions
|
|
|
|
|
37,584
|
|
4.38
|
|
|
|
410
|
|
|
32,595
|
|
4.52
|
|
|
|
368
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
|
95,368
|
|
2.74
|
|
|
|
654
|
|
|
91,300
|
|
3.49
|
|
|
|
797
|
Residential and commercial
|
|
|
|
|
32,141
|
|
6.46
|
|
|
|
519
|
|
|
34,531
|
|
6.80
|
|
|
|
587
|
Total mortgage-backed securities
|
|
|
|
|
127,509
|
|
3.68
|
|
|
|
1,173
|
|
|
125,831
|
|
4.40
|
|
|
|
1,384
|
Other debt and equity securities
|
|
|
|
|
53,724
|
|
3.58
|
|
|
|
476
|
|
|
50,402
|
|
3.82
|
|
|
|
480
|
Total securities available for sale
|
|
|
|
|
225,896
|
|
3.70
|
|
|
|
2,087
|
|
|
214,625
|
|
4.19
|
|
|
|
2,246
|
Mortgages held for sale (4)
|
|
|
|
|
43,312
|
|
3.42
|
|
|
|
371
|
|
|
46,908
|
|
3.91
|
|
|
|
459
|
Loans held for sale (4)
|
|
|
|
|
141
|
|
8.83
|
|
|
|
3
|
|
|
748
|
|
5.09
|
|
|
|
9
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
184,515
|
|
3.73
|
|
|
|
1,700
|
|
|
166,782
|
|
4.18
|
|
|
|
1,733
|
Real estate mortgage
|
|
|
|
|
106,221
|
|
3.84
|
|
|
|
1,006
|
|
|
105,990
|
|
4.07
|
|
|
|
1,072
|
Real estate construction
|
|
|
|
|
16,559
|
|
4.84
|
|
|
|
197
|
|
|
18,730
|
|
4.79
|
|
|
|
223
|
Lease financing
|
|
|
|
|
12,424
|
|
6.78
|
|
|
|
210
|
|
|
13,129
|
|
8.89
|
|
|
|
292
|
Foreign
|
|
|
|
|
39,900
|
|
2.16
|
|
|
|
213
|
|
|
41,167
|
|
2.52
|
|
|
|
258
|
Total commercial
|
|
|
|
|
359,619
|
|
3.74
|
|
|
|
3,326
|
|
|
345,798
|
|
4.16
|
|
|
|
3,578
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
252,049
|
|
4.29
|
|
|
|
2,702
|
|
|
229,653
|
|
4.69
|
|
|
|
2,688
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
74,068
|
|
4.28
|
|
|
|
785
|
|
|
84,718
|
|
4.27
|
|
|
|
900
|
Credit card
|
|
|
|
|
24,097
|
|
12.62
|
|
|
|
750
|
|
|
22,129
|
|
12.93
|
|
|
|
711
|
Automobile
|
|
|
|
|
46,566
|
|
7.20
|
|
|
|
826
|
|
|
43,686
|
|
7.79
|
|
|
|
846
|
Other revolving credit and installment
|
|
|
|
|
41,675
|
|
4.70
|
|
|
|
483
|
|
|
42,598
|
|
4.57
|
|
|
|
483
|
Total consumer
|
|
|
|
|
438,455
|
|
5.10
|
|
|
|
5,546
|
|
|
422,784
|
|
5.34
|
|
|
|
5,628
|
Total loans (4)
|
|
|
|
|
798,074
|
|
4.49
|
|
|
|
8,872
|
|
|
768,582
|
|
4.81
|
|
|
|
9,206
|
Other
|
|
|
|
|
4,255
|
|
5.19
|
|
|
|
55
|
|
|
4,604
|
|
4.42
|
|
|
|
51
|
Total earning assets
|
|
|
|
$
|
1,234,832
|
|
3.86
|
%
|
|
$
|
11,829
|
|
|
1,135,253
|
|
4.39
|
%
|
|
$
|
12,427
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
|
$
|
32,165
|
|
0.06
|
%
|
|
$
|
5
|
|
|
32,158
|
|
0.05
|
%
|
|
$
|
4
|
Market rate and other savings
|
|
|
|
|
537,549
|
|
0.09
|
|
|
|
122
|
|
|
496,027
|
|
0.12
|
|
|
|
153
|
Savings certificates
|
|
|
|
|
55,238
|
|
1.22
|
|
|
|
167
|
|
|
62,689
|
|
1.36
|
|
|
|
213
|
Other time deposits
|
|
|
|
|
15,905
|
|
1.25
|
|
|
|
50
|
|
|
12,651
|
|
1.93
|
|
|
|
61
|
Deposits in foreign offices
|
|
|
|
|
71,077
|
|
0.14
|
|
|
|
25
|
|
|
64,847
|
|
0.16
|
|
|
|
26
|
Total interest-bearing deposits
|
|
|
|
|
711,934
|
|
0.21
|
|
|
|
369
|
|
|
668,372
|
|
0.27
|
|
|
|
457
|
Short-term borrowings
|
|
|
|
|
55,410
|
|
0.17
|
|
|
|
24
|
|
|
48,382
|
|
0.15
|
|
|
|
18
|
Long-term debt
|
|
|
|
|
127,112
|
|
2.20
|
|
|
|
696
|
|
|
127,537
|
|
2.60
|
|
|
|
830
|
Other liabilities
|
|
|
|
|
11,608
|
|
2.24
|
|
|
|
65
|
|
|
9,803
|
|
2.63
|
|
|
|
64
|
Total interest-bearing liabilities
|
|
|
|
|
906,064
|
|
0.51
|
|
|
|
1,154
|
|
|
854,094
|
|
0.64
|
|
|
|
1,369
|
Portion of noninterest-bearing funding sources
|
|
|
|
|
328,768
|
|
-
|
|
|
|
-
|
|
|
281,159
|
|
-
|
|
|
|
-
|
Total funding sources
|
|
|
|
$
|
1,234,832
|
|
0.38
|
|
|
|
1,154
|
|
|
1,135,253
|
|
0.48
|
|
|
|
1,369
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
|
3.48
|
%
|
|
$
|
10,675
|
|
|
|
|
3.91
|
%
|
|
$
|
11,058
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
|
$
|
16,529
|
|
|
|
|
|
|
|
|
16,974
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
25,637
|
|
|
|
|
|
|
|
|
25,128
|
|
|
|
|
|
|
Other
|
|
|
|
|
127,336
|
|
|
|
|
|
|
|
|
125,566
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
|
$
|
169,502
|
|
|
|
|
|
|
|
|
167,668
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
$
|
274,221
|
|
|
|
|
|
|
|
|
246,614
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
|
63,634
|
|
|
|
|
|
|
|
|
57,201
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
160,415
|
|
|
|
|
|
|
|
|
145,012
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
|
(328,768)
|
|
|
|
|
|
|
|
|
(281,159)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
|
$
|
169,502
|
|
|
|
|
|
|
|
|
167,668
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
1,404,334
|
|
|
|
|
|
|
|
|
1,302,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.25% for the quarters ended March
31, 2013 and 2012. The average three-month London Interbank
Offered Rate (LIBOR) was 0.29% and 0.51% for the same quarters,
respectively.
|
(2) Yield/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
(5) Includes taxable-equivalent adjustments of $176 million and
$170 million for the quarters ended March 31, 2013 and 2012,
respectively, primarily related to tax-exempt income on certain
loans and securities. The federal statutory tax rate was 35% for
the periods presented.
|
|
Wells Fargo & Company and Subsidiaries
|
|
NONINTEREST INCOME
|
|
|
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
Change
|
|
Service charges on deposit accounts
|
|
|
|
$
|
1,214
|
|
|
1,084
|
|
|
|
12
|
|
%
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees (1)
|
|
|
|
|
2,050
|
|
|
1,830
|
|
|
|
12
|
|
|
Trust and investment management (1)
|
|
|
|
|
799
|
|
|
752
|
|
|
|
6
|
|
|
Investment banking
|
|
|
|
|
353
|
|
|
257
|
|
|
|
37
|
|
|
Total trust and investment fees
|
|
|
|
|
3,202
|
|
|
2,839
|
|
|
|
13
|
|
|
Card fees
|
|
|
|
|
738
|
|
|
654
|
|
|
|
13
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
|
384
|
|
|
445
|
|
|
|
(14
|
)
|
|
Merchant processing fees
|
|
|
|
|
154
|
|
|
125
|
|
|
|
23
|
|
|
Cash network fees
|
|
|
|
|
117
|
|
|
118
|
|
|
|
(1
|
)
|
|
Commercial real estate brokerage commissions
|
|
|
|
|
45
|
|
|
50
|
|
|
|
(10
|
)
|
|
Letters of credit fees
|
|
|
|
|
109
|
|
|
112
|
|
|
|
(3
|
)
|
|
All other fees
|
|
|
|
|
225
|
|
|
245
|
|
|
|
(8
|
)
|
|
Total other fees
|
|
|
|
|
1,034
|
|
|
1,095
|
|
|
|
(6
|
)
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
|
314
|
|
|
252
|
|
|
|
25
|
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
|
2,480
|
|
|
2,618
|
|
|
|
(5
|
)
|
|
Total mortgage banking
|
|
|
|
|
2,794
|
|
|
2,870
|
|
|
|
(3
|
)
|
|
Insurance
|
|
|
|
|
463
|
|
|
519
|
|
|
|
(11
|
)
|
|
Net gains from trading activities
|
|
|
|
|
570
|
|
|
640
|
|
|
|
(11
|
)
|
|
Net gains (losses) on debt securities available for sale
|
|
|
|
|
45
|
|
|
(7
|
)
|
|
|
NM
|
|
|
Net gains from equity investments
|
|
|
|
|
113
|
|
|
364
|
|
|
|
(69
|
)
|
|
Lease income
|
|
|
|
|
130
|
|
|
59
|
|
|
|
120
|
|
|
Life insurance investment income
|
|
|
|
|
145
|
|
|
168
|
|
|
|
(14
|
)
|
|
All other
|
|
|
|
|
312
|
|
|
463
|
|
|
|
(33
|
)
|
|
Total
|
|
|
|
$
|
10,760
|
|
|
10,748
|
|
|
|
-
|
|
|
|
|
NM - Not meaningful
|
|
(1) The prior period has been revised to reflect all fund
distribution fees as brokerage related income.
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
Quarter ended March 31,
|
|
|
|
%
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
Change
|
|
Salaries
|
|
|
|
$
|
3,663
|
|
|
3,601
|
|
|
|
2
|
|
%
|
Commission and incentive compensation
|
|
|
|
|
2,577
|
|
|
2,417
|
|
|
|
7
|
|
|
Employee benefits
|
|
|
|
|
1,583
|
|
|
1,608
|
|
|
|
(2
|
)
|
|
Equipment
|
|
|
|
|
528
|
|
|
557
|
|
|
|
(5
|
)
|
|
Net occupancy
|
|
|
|
|
719
|
|
|
704
|
|
|
|
2
|
|
|
Core deposit and other intangibles
|
|
|
|
|
377
|
|
|
419
|
|
|
|
(10
|
)
|
|
FDIC and other deposit assessments
|
|
|
|
|
292
|
|
|
357
|
|
|
|
(18
|
)
|
|
Outside professional services
|
|
|
|
|
535
|
|
|
594
|
|
|
|
(10
|
)
|
|
Operating losses
|
|
|
|
|
157
|
|
|
477
|
|
|
|
(67
|
)
|
|
Foreclosed assets
|
|
|
|
|
195
|
|
|
304
|
|
|
|
(36
|
)
|
|
Contract services
|
|
|
|
|
207
|
|
|
303
|
|
|
|
(32
|
)
|
|
Outside data processing
|
|
|
|
|
233
|
|
|
216
|
|
|
|
8
|
|
|
Travel and entertainment
|
|
|
|
|
213
|
|
|
202
|
|
|
|
5
|
|
|
Postage, stationery and supplies
|
|
|
|
|
199
|
|
|
216
|
|
|
|
(8
|
)
|
|
Advertising and promotion
|
|
|
|
|
105
|
|
|
122
|
|
|
|
(14
|
)
|
|
Telecommunications
|
|
|
|
|
123
|
|
|
124
|
|
|
|
(1
|
)
|
|
Insurance
|
|
|
|
|
137
|
|
|
157
|
|
|
|
(13
|
)
|
|
Operating leases
|
|
|
|
|
48
|
|
|
28
|
|
|
|
71
|
|
|
All other
|
|
|
|
|
509
|
|
|
587
|
|
|
|
(13
|
)
|
|
Total
|
|
|
|
$
|
12,400
|
|
|
12,993
|
|
|
|
(5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
Service charges on deposit accounts
|
|
|
|
$
|
1,214
|
|
|
1,250
|
|
|
1,210
|
|
|
1,139
|
|
|
1,084
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees (1)
|
|
|
|
|
2,050
|
|
|
1,962
|
|
|
1,887
|
|
|
1,845
|
|
|
1,830
|
|
Trust and investment management (1)
|
|
|
|
|
799
|
|
|
797
|
|
|
769
|
|
|
762
|
|
|
752
|
|
Investment banking
|
|
|
|
|
353
|
|
|
440
|
|
|
298
|
|
|
291
|
|
|
257
|
|
Total trust and investment fees
|
|
|
|
|
3,202
|
|
|
3,199
|
|
|
2,954
|
|
|
2,898
|
|
|
2,839
|
|
Card fees
|
|
|
|
|
738
|
|
|
736
|
|
|
744
|
|
|
704
|
|
|
654
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
|
384
|
|
|
448
|
|
|
426
|
|
|
427
|
|
|
445
|
|
Merchant processing fees
|
|
|
|
|
154
|
|
|
151
|
|
|
150
|
|
|
157
|
|
|
125
|
|
Cash network fees
|
|
|
|
|
117
|
|
|
112
|
|
|
120
|
|
|
120
|
|
|
118
|
|
Commercial real estate brokerage commissions
|
|
|
|
|
45
|
|
|
119
|
|
|
56
|
|
|
82
|
|
|
50
|
|
Letters of credit fees
|
|
|
|
|
109
|
|
|
107
|
|
|
114
|
|
|
108
|
|
|
112
|
|
All other fees
|
|
|
|
|
225
|
|
|
256
|
|
|
231
|
|
|
240
|
|
|
245
|
|
Total other fees
|
|
|
|
|
1,034
|
|
|
1,193
|
|
|
1,097
|
|
|
1,134
|
|
|
1,095
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
|
314
|
|
|
250
|
|
|
197
|
|
|
679
|
|
|
252
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
|
2,480
|
|
|
2,818
|
|
|
2,610
|
|
|
2,214
|
|
|
2,618
|
|
Total mortgage banking
|
|
|
|
|
2,794
|
|
|
3,068
|
|
|
2,807
|
|
|
2,893
|
|
|
2,870
|
|
Insurance
|
|
|
|
|
463
|
|
|
395
|
|
|
414
|
|
|
522
|
|
|
519
|
|
Net gains from trading activities
|
|
|
|
|
570
|
|
|
275
|
|
|
529
|
|
|
263
|
|
|
640
|
|
Net gains (losses) on debt securities available for sale
|
|
|
|
|
45
|
|
|
(63
|
)
|
|
3
|
|
|
(61
|
)
|
|
(7
|
)
|
Net gains from equity investments
|
|
|
|
|
113
|
|
|
715
|
|
|
164
|
|
|
242
|
|
|
364
|
|
Lease income
|
|
|
|
|
130
|
|
|
170
|
|
|
218
|
|
|
120
|
|
|
59
|
|
Life insurance investment income
|
|
|
|
|
145
|
|
|
276
|
|
|
159
|
|
|
154
|
|
|
168
|
|
All other
|
|
|
|
|
312
|
|
|
91
|
|
|
252
|
|
|
244
|
|
|
463
|
|
Total
|
|
|
|
$
|
10,760
|
|
|
11,305
|
|
|
10,551
|
|
|
10,252
|
|
|
10,748
|
|
|
|
(1) Prior periods have been revised to reflect all fund
distribution fees as brokerage related income.
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
Salaries
|
|
|
|
$
|
3,663
|
|
|
3,735
|
|
|
3,648
|
|
|
3,705
|
|
|
3,601
|
|
Commission and incentive compensation
|
|
|
|
|
2,577
|
|
|
2,365
|
|
|
2,368
|
|
|
2,354
|
|
|
2,417
|
|
Employee benefits
|
|
|
|
|
1,583
|
|
|
891
|
|
|
1,063
|
|
|
1,049
|
|
|
1,608
|
|
Equipment
|
|
|
|
|
528
|
|
|
542
|
|
|
510
|
|
|
459
|
|
|
557
|
|
Net occupancy
|
|
|
|
|
719
|
|
|
728
|
|
|
727
|
|
|
698
|
|
|
704
|
|
Core deposit and other intangibles
|
|
|
|
|
377
|
|
|
418
|
|
|
419
|
|
|
418
|
|
|
419
|
|
FDIC and other deposit assessments
|
|
|
|
|
292
|
|
|
307
|
|
|
359
|
|
|
333
|
|
|
357
|
|
Outside professional services
|
|
|
|
|
535
|
|
|
744
|
|
|
733
|
|
|
658
|
|
|
594
|
|
Operating losses
|
|
|
|
|
157
|
|
|
953
|
|
|
281
|
|
|
524
|
|
|
477
|
|
Foreclosed assets
|
|
|
|
|
195
|
|
|
221
|
|
|
247
|
|
|
289
|
|
|
304
|
|
Contract services
|
|
|
|
|
207
|
|
|
235
|
|
|
237
|
|
|
236
|
|
|
303
|
|
Outside data processing
|
|
|
|
|
233
|
|
|
227
|
|
|
234
|
|
|
233
|
|
|
216
|
|
Travel and entertainment
|
|
|
|
|
213
|
|
|
211
|
|
|
208
|
|
|
218
|
|
|
202
|
|
Postage, stationery and supplies
|
|
|
|
|
199
|
|
|
192
|
|
|
196
|
|
|
195
|
|
|
216
|
|
Advertising and promotion
|
|
|
|
|
105
|
|
|
142
|
|
|
170
|
|
|
144
|
|
|
122
|
|
Telecommunications
|
|
|
|
|
123
|
|
|
122
|
|
|
127
|
|
|
127
|
|
|
124
|
|
Insurance
|
|
|
|
|
137
|
|
|
62
|
|
|
51
|
|
|
183
|
|
|
157
|
|
Operating leases
|
|
|
|
|
48
|
|
|
27
|
|
|
27
|
|
|
27
|
|
|
28
|
|
All other
|
|
|
|
|
509
|
|
|
774
|
|
|
507
|
|
|
547
|
|
|
587
|
|
Total
|
|
|
|
$
|
12,400
|
|
|
12,896
|
|
|
12,112
|
|
|
12,397
|
|
|
12,993
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
%
|
|
(in millions, except shares)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
|
$
|
16,217
|
|
|
|
21,860
|
|
|
|
(26
|
)
|
%
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
|
143,804
|
|
|
|
137,313
|
|
|
|
5
|
|
|
Trading assets
|
|
|
|
|
62,274
|
|
|
|
57,482
|
|
|
|
8
|
|
|
Securities available for sale
|
|
|
|
|
248,160
|
|
|
|
235,199
|
|
|
|
6
|
|
|
Mortgages held for sale (includes $42,624 and $42,305 carried at
fair value)
|
|
|
|
|
46,702
|
|
|
|
47,149
|
|
|
|
(1
|
)
|
|
Loans held for sale (includes $0 and $6 carried at fair value)
|
|
|
|
|
194
|
|
|
|
110
|
|
|
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (includes $6,183 and $$6,206 carried at fair value)
|
|
|
|
|
799,966
|
|
|
|
799,574
|
|
|
|
-
|
|
|
Allowance for loan losses
|
|
|
|
|
(16,711
|
)
|
|
|
(17,060
|
)
|
|
|
(2
|
)
|
|
Net loans
|
|
|
|
|
783,255
|
|
|
|
782,514
|
|
|
|
-
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
|
12,061
|
|
|
|
11,538
|
|
|
|
5
|
|
|
Amortized
|
|
|
|
|
1,181
|
|
|
|
1,160
|
|
|
|
2
|
|
|
Premises and equipment, net
|
|
|
|
|
9,263
|
|
|
|
9,428
|
|
|
|
(2
|
)
|
|
Goodwill
|
|
|
|
|
25,637
|
|
|
|
25,637
|
|
|
|
-
|
|
|
Other assets (includes $197 and $0 carried at fair value)
|
|
|
|
|
87,886
|
|
|
|
93,578
|
|
|
|
(6
|
)
|
|
Total assets
|
|
|
|
$
|
1,436,634
|
|
|
|
1,422,968
|
|
|
|
1
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
|
$
|
278,909
|
|
|
|
288,207
|
|
|
|
(3
|
)
|
|
Interest-bearing deposits
|
|
|
|
|
731,824
|
|
|
|
714,628
|
|
|
|
2
|
|
|
Total deposits
|
|
|
|
|
1,010,733
|
|
|
|
1,002,835
|
|
|
|
1
|
|
|
Short-term borrowings
|
|
|
|
|
60,693
|
|
|
|
57,175
|
|
|
|
6
|
|
|
Accrued expenses and other liabilities
|
|
|
|
|
75,622
|
|
|
|
76,668
|
|
|
|
(1
|
)
|
|
Long-term debt (includes $0 and $1 carried at fair value)
|
|
|
|
|
126,191
|
|
|
|
127,379
|
|
|
|
(1
|
)
|
|
Total liabilities
|
|
|
|
|
1,273,239
|
|
|
|
1,264,057
|
|
|
|
1
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
14,412
|
|
|
|
12,883
|
|
|
|
12
|
|
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares;
issued 5,481,811,474 shares and 5,481,811,474 shares
|
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
-
|
|
|
Additional paid-in capital
|
|
|
|
|
60,136
|
|
|
|
59,802
|
|
|
|
1
|
|
|
Retained earnings
|
|
|
|
|
81,264
|
|
|
|
77,679
|
|
|
|
5
|
|
|
Cumulative other comprehensive income
|
|
|
|
|
5,145
|
|
|
|
5,650
|
|
|
|
(9
|
)
|
|
Treasury stock – 193,038,624 shares and 215,497,298 shares
|
|
|
|
|
(6,036
|
)
|
|
|
(6,610
|
)
|
|
|
(9
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
(1,971
|
)
|
|
|
(986
|
)
|
|
|
100
|
|
|
Total Wells Fargo stockholders' equity
|
|
|
|
|
162,086
|
|
|
|
157,554
|
|
|
|
3
|
|
|
Noncontrolling interests
|
|
|
|
|
1,309
|
|
|
|
1,357
|
|
|
|
(4
|
)
|
|
Total equity
|
|
|
|
|
163,395
|
|
|
|
158,911
|
|
|
|
3
|
|
|
Total liabilities and equity
|
|
|
|
$
|
1,436,634
|
|
|
|
1,422,968
|
|
|
|
1
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
|
$
|
16,217
|
|
|
|
21,860
|
|
|
|
16,986
|
|
|
|
16,811
|
|
|
|
17,000
|
|
Federal funds sold, securities purchased under resale agreements
and other short-term investments
|
|
|
|
|
143,804
|
|
|
|
137,313
|
|
|
|
100,442
|
|
|
|
74,635
|
|
|
|
74,143
|
|
Trading assets
|
|
|
|
|
62,274
|
|
|
|
57,482
|
|
|
|
60,592
|
|
|
|
64,419
|
|
|
|
75,696
|
|
Securities available for sale
|
|
|
|
|
248,160
|
|
|
|
235,199
|
|
|
|
229,350
|
|
|
|
226,846
|
|
|
|
230,266
|
|
Mortgages held for sale
|
|
|
|
|
46,702
|
|
|
|
47,149
|
|
|
|
50,337
|
|
|
|
50,462
|
|
|
|
43,449
|
|
Loans held for sale
|
|
|
|
|
194
|
|
|
|
110
|
|
|
|
298
|
|
|
|
853
|
|
|
|
958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
799,966
|
|
|
|
799,574
|
|
|
|
782,630
|
|
|
|
775,199
|
|
|
|
766,521
|
|
Allowance for loan losses
|
|
|
|
|
(16,711
|
)
|
|
|
(17,060
|
)
|
|
|
(17,385
|
)
|
|
|
(18,320
|
)
|
|
|
(18,852
|
)
|
Net loans
|
|
|
|
|
783,255
|
|
|
|
782,514
|
|
|
|
765,245
|
|
|
|
756,879
|
|
|
|
747,669
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
|
12,061
|
|
|
|
11,538
|
|
|
|
10,956
|
|
|
|
12,081
|
|
|
|
13,578
|
|
Amortized
|
|
|
|
|
1,181
|
|
|
|
1,160
|
|
|
|
1,144
|
|
|
|
1,130
|
|
|
|
1,074
|
|
Premises and equipment, net
|
|
|
|
|
9,263
|
|
|
|
9,428
|
|
|
|
9,165
|
|
|
|
9,317
|
|
|
|
9,291
|
|
Goodwill
|
|
|
|
|
25,637
|
|
|
|
25,637
|
|
|
|
25,637
|
|
|
|
25,406
|
|
|
|
25,140
|
|
Other assets
|
|
|
|
|
87,886
|
|
|
|
93,578
|
|
|
|
104,563
|
|
|
|
97,365
|
|
|
|
95,535
|
|
Total assets
|
|
|
|
$
|
1,436,634
|
|
|
|
1,422,968
|
|
|
|
1,374,715
|
|
|
|
1,336,204
|
|
|
|
1,333,799
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
|
$
|
278,909
|
|
|
|
288,207
|
|
|
|
268,991
|
|
|
|
253,999
|
|
|
|
255,013
|
|
Interest-bearing deposits
|
|
|
|
|
731,824
|
|
|
|
714,628
|
|
|
|
683,248
|
|
|
|
674,934
|
|
|
|
675,254
|
|
Total deposits
|
|
|
|
|
1,010,733
|
|
|
|
1,002,835
|
|
|
|
952,239
|
|
|
|
928,933
|
|
|
|
930,267
|
|
Short-term borrowings
|
|
|
|
|
60,693
|
|
|
|
57,175
|
|
|
|
51,957
|
|
|
|
56,023
|
|
|
|
50,964
|
|
Accrued expenses and other liabilities
|
|
|
|
|
75,622
|
|
|
|
76,668
|
|
|
|
83,659
|
|
|
|
76,827
|
|
|
|
75,967
|
|
Long-term debt
|
|
|
|
|
126,191
|
|
|
|
127,379
|
|
|
|
130,801
|
|
|
|
124,984
|
|
|
|
129,752
|
|
Total liabilities
|
|
|
|
|
1,273,239
|
|
|
|
1,264,057
|
|
|
|
1,218,656
|
|
|
|
1,186,767
|
|
|
|
1,186,950
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
14,412
|
|
|
|
12,883
|
|
|
|
12,283
|
|
|
|
11,694
|
|
|
|
12,101
|
|
Common stock
|
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,105
|
|
|
|
9,054
|
|
|
|
9,008
|
|
Additional paid-in capital
|
|
|
|
|
60,136
|
|
|
|
59,802
|
|
|
|
59,089
|
|
|
|
58,091
|
|
|
|
57,569
|
|
Retained earnings
|
|
|
|
|
81,264
|
|
|
|
77,679
|
|
|
|
73,994
|
|
|
|
70,456
|
|
|
|
67,239
|
|
Cumulative other comprehensive income
|
|
|
|
|
5,145
|
|
|
|
5,650
|
|
|
|
6,435
|
|
|
|
4,629
|
|
|
|
4,216
|
|
Treasury stock
|
|
|
|
|
(6,036
|
)
|
|
|
(6,610
|
)
|
|
|
(5,186
|
)
|
|
|
(4,638
|
)
|
|
|
(2,958
|
)
|
Unearned ESOP shares
|
|
|
|
|
(1,971
|
)
|
|
|
(986
|
)
|
|
|
(1,041
|
)
|
|
|
(1,216
|
)
|
|
|
(1,659
|
)
|
Total Wells Fargo stockholders' equity
|
|
|
|
|
162,086
|
|
|
|
157,554
|
|
|
|
154,679
|
|
|
|
148,070
|
|
|
|
145,516
|
|
Noncontrolling interests
|
|
|
|
|
1,309
|
|
|
|
1,357
|
|
|
|
1,380
|
|
|
|
1,367
|
|
|
|
1,333
|
|
Total equity
|
|
|
|
|
163,395
|
|
|
|
158,911
|
|
|
|
156,059
|
|
|
|
149,437
|
|
|
|
146,849
|
|
Total liabilities and equity
|
|
|
|
$
|
1,436,634
|
|
|
|
1,422,968
|
|
|
|
1,374,715
|
|
|
|
1,336,204
|
|
|
|
1,333,799
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar. 31, 2013
|
|
|
|
Dec. 31, 2012
|
|
|
|
Sept. 30, 2012
|
|
|
|
June 30, 2012
|
|
|
|
Mar. 31, 2012
|
|
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
($ in billions)
|
|
|
balance
|
|
rates
|
|
|
balance
|
|
rates
|
|
|
balance
|
|
rates
|
|
|
balance
|
|
rates
|
|
|
balance
|
|
rates
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements
and other short-term investments
|
|
|
$
|
121.0
|
|
|
0.36
|
%
|
|
$
|
117.1
|
|
|
0.41
|
%
|
|
$
|
91.6
|
|
|
0.44
|
%
|
|
$
|
71.3
|
|
|
0.47
|
%
|
|
$
|
56.0
|
|
|
0.52
|
%
|
Trading assets
|
|
|
|
42.1
|
|
|
3.17
|
|
|
|
42.0
|
|
|
3.28
|
|
|
|
39.5
|
|
|
3.08
|
|
|
|
42.6
|
|
|
3.27
|
|
|
|
43.8
|
|
|
3.50
|
|
Securities available for sale (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
7.1
|
|
|
1.56
|
|
|
|
5.3
|
|
|
1.64
|
|
|
|
1.4
|
|
|
1.05
|
|
|
|
2.0
|
|
|
1.60
|
|
|
|
5.8
|
|
|
0.97
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
37.6
|
|
|
4.38
|
|
|
|
36.4
|
|
|
4.64
|
|
|
|
35.9
|
|
|
4.36
|
|
|
|
34.5
|
|
|
4.39
|
|
|
|
32.6
|
|
|
4.52
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
95.4
|
|
|
2.74
|
|
|
|
90.9
|
|
|
2.71
|
|
|
|
94.3
|
|
|
2.88
|
|
|
|
95.0
|
|
|
3.37
|
|
|
|
91.3
|
|
|
3.49
|
|
Residential and commercial
|
|
|
|
32.1
|
|
|
6.46
|
|
|
|
32.7
|
|
|
6.53
|
|
|
|
33.1
|
|
|
6.67
|
|
|
|
33.9
|
|
|
6.97
|
|
|
|
34.5
|
|
|
6.80
|
|
Total mortgage-backed securities
|
|
|
|
127.5
|
|
|
3.68
|
|
|
|
123.6
|
|
|
3.72
|
|
|
|
127.4
|
|
|
3.87
|
|
|
|
128.9
|
|
|
4.32
|
|
|
|
125.8
|
|
|
4.40
|
|
Other debt and equity securities
|
|
|
|
53.7
|
|
|
3.58
|
|
|
|
50.0
|
|
|
3.91
|
|
|
|
47.7
|
|
|
4.07
|
|
|
|
48.9
|
|
|
4.39
|
|
|
|
50.4
|
|
|
3.82
|
|
Total securities available for sale
|
|
|
|
225.9
|
|
|
3.70
|
|
|
|
215.3
|
|
|
3.87
|
|
|
|
212.4
|
|
|
3.98
|
|
|
|
214.3
|
|
|
4.32
|
|
|
|
214.6
|
|
|
4.19
|
|
Mortgages held for sale
|
|
|
|
43.3
|
|
|
3.42
|
|
|
|
47.2
|
|
|
3.50
|
|
|
|
52.1
|
|
|
3.65
|
|
|
|
49.5
|
|
|
3.86
|
|
|
|
46.9
|
|
|
3.91
|
|
Loans held for sale
|
|
|
|
0.1
|
|
|
8.83
|
|
|
|
0.1
|
|
|
9.03
|
|
|
|
0.9
|
|
|
7.38
|
|
|
|
0.9
|
|
|
5.48
|
|
|
|
0.8
|
|
|
5.09
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
184.5
|
|
|
3.73
|
|
|
|
179.5
|
|
|
3.85
|
|
|
|
177.5
|
|
|
3.84
|
|
|
|
171.8
|
|
|
4.21
|
|
|
|
166.8
|
|
|
4.18
|
|
Real estate mortgage
|
|
|
|
106.2
|
|
|
3.84
|
|
|
|
105.1
|
|
|
4.02
|
|
|
|
105.1
|
|
|
4.05
|
|
|
|
105.5
|
|
|
4.60
|
|
|
|
106.0
|
|
|
4.07
|
|
Real estate construction
|
|
|
|
16.6
|
|
|
4.84
|
|
|
|
17.5
|
|
|
4.97
|
|
|
|
17.7
|
|
|
5.21
|
|
|
|
17.9
|
|
|
4.96
|
|
|
|
18.7
|
|
|
4.79
|
|
Lease financing
|
|
|
|
12.4
|
|
|
6.78
|
|
|
|
12.4
|
|
|
6.43
|
|
|
|
12.6
|
|
|
6.60
|
|
|
|
12.9
|
|
|
6.86
|
|
|
|
13.1
|
|
|
8.89
|
|
Foreign
|
|
|
|
39.9
|
|
|
2.16
|
|
|
|
39.7
|
|
|
2.32
|
|
|
|
39.7
|
|
|
2.46
|
|
|
|
38.9
|
|
|
2.57
|
|
|
|
41.2
|
|
|
2.52
|
|
Total commercial
|
|
|
|
359.6
|
|
|
3.74
|
|
|
|
354.2
|
|
|
3.87
|
|
|
|
352.6
|
|
|
3.91
|
|
|
|
347.0
|
|
|
4.28
|
|
|
|
345.8
|
|
|
4.16
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
252.0
|
|
|
4.29
|
|
|
|
244.6
|
|
|
4.39
|
|
|
|
234.0
|
|
|
4.51
|
|
|
|
230.0
|
|
|
4.62
|
|
|
|
229.7
|
|
|
4.69
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
74.1
|
|
|
4.28
|
|
|
|
76.9
|
|
|
4.28
|
|
|
|
79.7
|
|
|
4.26
|
|
|
|
82.1
|
|
|
4.30
|
|
|
|
84.7
|
|
|
4.27
|
|
Credit card
|
|
|
|
24.1
|
|
|
12.62
|
|
|
|
23.9
|
|
|
12.43
|
|
|
|
23.0
|
|
|
12.64
|
|
|
|
22.1
|
|
|
12.70
|
|
|
|
22.1
|
|
|
12.93
|
|
Automobile
|
|
|
|
46.6
|
|
|
7.20
|
|
|
|
46.0
|
|
|
7.34
|
|
|
|
45.7
|
|
|
7.44
|
|
|
|
44.6
|
|
|
7.59
|
|
|
|
43.7
|
|
|
7.79
|
|
Other revolving credit and installment
|
|
|
|
41.7
|
|
|
4.70
|
|
|
|
41.6
|
|
|
4.63
|
|
|
|
41.7
|
|
|
4.58
|
|
|
|
42.4
|
|
|
4.51
|
|
|
|
42.6
|
|
|
4.57
|
|
Total consumer
|
|
|
|
438.5
|
|
|
5.10
|
|
|
|
433.0
|
|
|
5.15
|
|
|
|
424.1
|
|
|
5.23
|
|
|
|
421.2
|
|
|
5.29
|
|
|
|
422.8
|
|
|
5.34
|
|
Total loans
|
|
|
|
798.1
|
|
|
4.49
|
|
|
|
787.2
|
|
|
4.58
|
|
|
|
776.7
|
|
|
4.63
|
|
|
|
768.2
|
|
|
4.83
|
|
|
|
768.6
|
|
|
4.81
|
|
Other
|
|
|
|
4.3
|
|
|
5.19
|
|
|
|
4.3
|
|
|
5.21
|
|
|
|
4.4
|
|
|
4.62
|
|
|
|
4.5
|
|
|
4.56
|
|
|
|
4.6
|
|
|
4.42
|
|
Total earning assets
|
|
|
$
|
1,234.8
|
|
|
3.86
|
%
|
|
$
|
1,213.2
|
|
|
3.96
|
%
|
|
$
|
1,177.6
|
|
|
4.09
|
%
|
|
$
|
1,151.3
|
|
|
4.37
|
%
|
|
$
|
1,135.3
|
|
|
4.39
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
32.2
|
|
|
0.06
|
%
|
|
$
|
30.9
|
|
|
0.06
|
%
|
|
$
|
28.8
|
|
|
0.06
|
%
|
|
$
|
30.4
|
|
|
0.07
|
%
|
|
$
|
32.2
|
|
|
0.05
|
%
|
Market rate and other savings
|
|
|
|
537.5
|
|
|
0.09
|
|
|
|
518.6
|
|
|
0.10
|
|
|
|
506.1
|
|
|
0.12
|
|
|
|
500.3
|
|
|
0.12
|
|
|
|
496.0
|
|
|
0.12
|
|
Savings certificates
|
|
|
|
55.2
|
|
|
1.22
|
|
|
|
56.7
|
|
|
1.27
|
|
|
|
58.2
|
|
|
1.29
|
|
|
|
60.4
|
|
|
1.34
|
|
|
|
62.7
|
|
|
1.36
|
|
Other time deposits
|
|
|
|
15.9
|
|
|
1.25
|
|
|
|
13.6
|
|
|
1.51
|
|
|
|
14.4
|
|
|
1.49
|
|
|
|
12.8
|
|
|
1.83
|
|
|
|
12.7
|
|
|
1.93
|
|
Deposits in foreign offices
|
|
|
|
71.1
|
|
|
0.14
|
|
|
|
69.4
|
|
|
0.15
|
|
|
|
71.8
|
|
|
0.16
|
|
|
|
65.6
|
|
|
0.17
|
|
|
|
64.8
|
|
|
0.16
|
|
Total interest-bearing deposits
|
|
|
|
711.9
|
|
|
0.21
|
|
|
|
689.2
|
|
|
0.23
|
|
|
|
679.3
|
|
|
0.25
|
|
|
|
669.5
|
|
|
0.27
|
|
|
|
668.4
|
|
|
0.27
|
|
Short-term borrowings
|
|
|
|
55.4
|
|
|
0.17
|
|
|
|
52.8
|
|
|
0.21
|
|
|
|
51.9
|
|
|
0.17
|
|
|
|
51.7
|
|
|
0.19
|
|
|
|
48.4
|
|
|
0.15
|
|
Long-term debt
|
|
|
|
127.1
|
|
|
2.20
|
|
|
|
127.5
|
|
|
2.30
|
|
|
|
127.5
|
|
|
2.37
|
|
|
|
127.7
|
|
|
2.48
|
|
|
|
127.5
|
|
|
2.60
|
|
Other liabilities
|
|
|
|
11.6
|
|
|
2.24
|
|
|
|
10.0
|
|
|
2.27
|
|
|
|
9.9
|
|
|
2.40
|
|
|
|
10.4
|
|
|
2.48
|
|
|
|
9.8
|
|
|
2.63
|
|
Total interest-bearing liabilities
|
|
|
|
906.0
|
|
|
0.51
|
|
|
|
879.5
|
|
|
0.55
|
|
|
|
868.6
|
|
|
0.58
|
|
|
|
859.3
|
|
|
0.62
|
|
|
|
854.1
|
|
|
0.64
|
|
Portion of noninterest-bearing funding sources
|
|
|
|
328.8
|
|
|
-
|
|
|
|
333.7
|
|
|
-
|
|
|
|
309.0
|
|
|
-
|
|
|
|
292.0
|
|
|
-
|
|
|
|
281.2
|
|
|
-
|
|
Total funding sources
|
|
|
$
|
1,234.8
|
|
|
0.38
|
|
|
$
|
1,213.2
|
|
|
0.40
|
|
|
$
|
1,177.6
|
|
|
0.43
|
|
|
$
|
1,151.3
|
|
|
0.46
|
|
|
$
|
1,135.3
|
|
|
0.48
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
3.48
|
%
|
|
|
|
|
3.56
|
%
|
|
|
|
|
3.66
|
%
|
|
|
|
|
3.91
|
%
|
|
|
|
|
3.91
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
16.5
|
|
|
|
|
|
|
16.4
|
|
|
|
|
|
|
15.7
|
|
|
|
|
|
|
16.2
|
|
|
|
|
|
|
17.0
|
|
|
|
|
Goodwill
|
|
|
|
25.6
|
|
|
|
|
|
|
25.6
|
|
|
|
|
|
|
25.5
|
|
|
|
|
|
|
25.3
|
|
|
|
|
|
|
25.1
|
|
|
|
|
Other
|
|
|
|
127.4
|
|
|
|
|
|
|
131.9
|
|
|
|
|
|
|
135.5
|
|
|
|
|
|
|
128.8
|
|
|
|
|
|
|
125.5
|
|
|
|
|
Total noninterest-earnings assets
|
|
|
$
|
169.5
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
176.7
|
|
|
|
|
|
|
170.3
|
|
|
|
|
|
|
167.6
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
274.2
|
|
|
|
|
|
|
286.9
|
|
|
|
|
|
|
267.2
|
|
|
|
|
|
|
254.5
|
|
|
|
|
|
|
246.6
|
|
|
|
|
Other liabilities
|
|
|
|
63.7
|
|
|
|
|
|
|
63.1
|
|
|
|
|
|
|
66.1
|
|
|
|
|
|
|
58.4
|
|
|
|
|
|
|
57.2
|
|
|
|
|
Total equity
|
|
|
|
160.4
|
|
|
|
|
|
|
157.6
|
|
|
|
|
|
|
152.4
|
|
|
|
|
|
|
149.4
|
|
|
|
|
|
|
145.0
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
(328.8
|
)
|
|
|
|
|
|
(333.7
|
)
|
|
|
|
|
|
(309.0
|
)
|
|
|
|
|
|
(292.0
|
)
|
|
|
|
|
|
(281.2
|
)
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
169.5
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
176.7
|
|
|
|
|
|
|
170.3
|
|
|
|
|
|
|
167.6
|
|
|
|
|
Total assets
|
|
|
$
|
1,404.3
|
|
|
|
|
|
|
1,387.1
|
|
|
|
|
|
|
1,354.3
|
|
|
|
|
|
|
1,321.6
|
|
|
|
|
|
|
1,302.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.25% for quarters ended March 31,
2013, and December 31, September 30, June 30 and March 31, 2012.
The average three-month London Interbank Offered Rate (LIBOR) was
0.29%, 0.32%, 0.43%, 0.47% and 0.51% for the same quarters,
respectively.
|
|
(2) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER SECURITIES AVAILABLE FOR SALE
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
$
|
6,884
|
|
|
7,146
|
|
|
1,869
|
|
|
1,493
|
|
|
4,678
|
Securities of U.S. states and political subdivisions
|
|
|
|
|
40,456
|
|
|
38,676
|
|
|
37,925
|
|
|
37,251
|
|
|
34,237
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
|
105,472
|
|
|
97,285
|
|
|
102,713
|
|
|
101,863
|
|
|
102,665
|
Residential and commercial
|
|
|
|
|
35,179
|
|
|
35,899
|
|
|
36,098
|
|
|
35,646
|
|
|
36,486
|
Total mortgage-backed securities
|
|
|
|
|
140,651
|
|
|
133,184
|
|
|
138,811
|
|
|
137,509
|
|
|
139,151
|
Other debt securities
|
|
|
|
|
57,390
|
|
|
53,408
|
|
|
47,993
|
|
|
47,746
|
|
|
49,047
|
Total debt securities available for sale
|
|
|
|
|
245,381
|
|
|
232,414
|
|
|
226,598
|
|
|
223,999
|
|
|
227,113
|
Marketable equity securities
|
|
|
|
|
2,779
|
|
|
2,785
|
|
|
2,752
|
|
|
2,847
|
|
|
3,153
|
Total securities available for sale
|
|
|
|
$
|
248,160
|
|
|
235,199
|
|
|
229,350
|
|
|
226,846
|
|
|
230,266
|
|
FIVE QUARTER LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
$
|
185,623
|
|
|
187,759
|
|
|
178,191
|
|
|
177,646
|
|
|
168,546
|
Real estate mortgage
|
|
|
|
|
106,119
|
|
|
106,340
|
|
|
104,611
|
|
|
105,666
|
|
|
105,874
|
Real estate construction
|
|
|
|
|
16,650
|
|
|
16,904
|
|
|
17,710
|
|
|
17,594
|
|
|
18,549
|
Lease financing
|
|
|
|
|
12,402
|
|
|
12,424
|
|
|
12,279
|
|
|
12,729
|
|
|
13,143
|
Foreign (1)
|
|
|
|
|
40,920
|
|
|
37,771
|
|
|
39,741
|
|
|
40,417
|
|
|
39,637
|
Total commercial
|
|
|
|
|
361,714
|
|
|
361,198
|
|
|
352,532
|
|
|
354,052
|
|
|
345,749
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
252,307
|
|
|
249,900
|
|
|
240,554
|
|
|
230,263
|
|
|
228,885
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
72,543
|
|
|
75,465
|
|
|
78,091
|
|
|
80,881
|
|
|
83,173
|
Credit card
|
|
|
|
|
24,120
|
|
|
24,640
|
|
|
23,692
|
|
|
22,706
|
|
|
21,998
|
Automobile
|
|
|
|
|
47,259
|
|
|
45,998
|
|
|
46,044
|
|
|
45,180
|
|
|
44,167
|
Other revolving credit and installment
|
|
|
|
|
42,023
|
|
|
42,373
|
|
|
41,717
|
|
|
42,117
|
|
|
42,549
|
Total consumer
|
|
|
|
|
438,252
|
|
|
438,376
|
|
|
430,098
|
|
|
421,147
|
|
|
420,772
|
Total loans (2)
|
|
|
|
$
|
799,966
|
|
|
799,574
|
|
|
782,630
|
|
|
775,199
|
|
|
766,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Substantially all of our foreign loan portfolio is commercial
loans. Loans are classified as foreign if the borrower's primary
address is outside of the United States.
|
(2) Includes $29.7 billion, $31.0 billion, $32.5 billion, $33.8
billion and $35.5 billion of purchased credit-impaired (PCI) loans
at March 31, 2013 and December 31, September 30, June 30, and
March 31, 2012, respectively. See the PCI loans table for detail
of PCI loans.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
$
|
1,193
|
|
|
|
1,422
|
|
|
1,404
|
|
|
1,549
|
|
|
1,726
|
Real estate mortgage
|
|
|
|
|
3,098
|
|
|
|
3,322
|
|
|
3,599
|
|
|
3,832
|
|
|
4,081
|
Real estate construction
|
|
|
|
|
870
|
|
|
|
1,003
|
|
|
1,253
|
|
|
1,421
|
|
|
1,709
|
Lease financing
|
|
|
|
|
25
|
|
|
|
27
|
|
|
49
|
|
|
43
|
|
|
45
|
Foreign
|
|
|
|
|
56
|
|
|
|
50
|
|
|
66
|
|
|
79
|
|
|
38
|
Total commercial
|
|
|
|
|
5,242
|
|
|
|
5,824
|
|
|
6,371
|
|
|
6,924
|
|
|
7,599
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
11,320
|
|
|
|
11,455
|
|
|
11,195
|
|
|
10,368
|
|
|
10,683
|
Real estate 1-4 family junior lien mortgage (1)
|
|
|
|
|
2,712
|
|
|
|
2,922
|
|
|
3,140
|
|
|
3,091
|
|
|
3,558
|
Automobile
|
|
|
|
|
220
|
|
|
|
245
|
|
|
295
|
|
|
164
|
|
|
130
|
Other revolving credit and installment
|
|
|
|
|
32
|
|
|
|
40
|
|
|
43
|
|
|
31
|
|
|
56
|
Total consumer (2)
|
|
|
|
|
14,284
|
|
|
|
14,662
|
|
|
14,673
|
|
|
13,654
|
|
|
14,427
|
Total nonaccrual loans (3)(4)(5)
|
|
|
|
|
19,526
|
|
|
|
20,486
|
|
|
21,044
|
|
|
20,578
|
|
|
22,026
|
As a percentage of total loans
|
|
|
|
|
2.44
|
%
|
|
|
2.56
|
|
|
2.69
|
|
|
2.65
|
|
|
2.87
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed (6)
|
|
|
|
$
|
969
|
|
|
|
1,509
|
|
|
1,479
|
|
|
1,465
|
|
|
1,352
|
Non-government insured/guaranteed
|
|
|
|
|
2,381
|
|
|
|
2,514
|
|
|
2,730
|
|
|
2,842
|
|
|
3,265
|
Total foreclosed assets
|
|
|
|
|
3,350
|
|
|
|
4,023
|
|
|
4,209
|
|
|
4,307
|
|
|
4,617
|
Total nonperforming assets
|
|
|
|
$
|
22,876
|
|
|
|
24,509
|
|
|
25,253
|
|
|
24,885
|
|
|
26,643
|
As a percentage of total loans
|
|
|
|
|
2.86
|
%
|
|
|
3.07
|
|
|
3.23
|
|
|
3.21
|
|
|
3.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $1.7 billion at March 31, 2012, resulting from
implementation of the Interagency Supervisory Guidance on
Allowance for Loan and Lease Losses Estimation Practices for Loans
and Lines of Credit Secured by Junior Liens on 1-4 Family
Residential Properties issued on January 31, 2012. This
guidance accelerated the timing of placing these loans on
nonaccrual to coincide with the timing of placing the related real
estate 1-4 family first mortgage loans on nonaccrual.
|
(2) Includes $1.4 billion at September 30, 2012, resulting from
implementation of OCC guidance issued in third quarter 2012, which
requires consumer loans discharged in bankruptcy to be placed on
nonaccrual status and written down to net realizable collateral
value, regardless of their delinquency status.
|
(3) Also includes nonaccrual mortgages held for sale and loans
held for sale in their respective loan categories.
|
(4) Excludes PCI loans because they continue to earn interest
income from accretable yield, independent of performance in
accordance with their contractual terms.
|
(5) Real estate 1-4 family mortgage loans insured by the Federal
Housing Administration (FHA) or guaranteed by the Department of
Veterans Affairs (VA) and student loans predominantly guaranteed
by agencies on behalf of the U.S. Department of Education under
the Federal Family Education Loan Program are not placed on
nonaccrual status because they are insured or guaranteed.
|
(6) Consistent with regulatory reporting requirements, foreclosed
real estate securing government insured/guaranteed loans is
classified as nonperforming. Both principal and interest for
government insured/guaranteed loans secured by the foreclosed real
estate are collectible because the loans are insured by the FHA or
guaranteed by the VA.
|
|
|
Wells Fargo & Company and Subsidiaries
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Loans 90 days or more past due and still accruing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (excluding PCI)(1):
|
|
|
|
$
|
23,082
|
|
|
23,245
|
|
|
22,894
|
|
|
22,872
|
|
|
22,555
|
Less: FHA insured/VA guaranteed (2)
|
|
|
|
|
20,745
|
|
|
20,745
|
|
|
20,320
|
|
|
20,368
|
|
|
19,681
|
Less: Student loans guaranteed under the FFELP (3)
|
|
|
|
|
977
|
|
|
1,065
|
|
|
1,082
|
|
|
1,144
|
|
|
1,238
|
Total, not government insured/guaranteed
|
|
|
|
$
|
1,360
|
|
|
1,435
|
|
|
1,492
|
|
|
1,360
|
|
|
1,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
$
|
47
|
|
|
47
|
|
|
49
|
|
|
44
|
|
|
104
|
Real estate mortgage
|
|
|
|
|
164
|
|
|
228
|
|
|
206
|
|
|
184
|
|
|
289
|
Real estate construction
|
|
|
|
|
47
|
|
|
27
|
|
|
41
|
|
|
25
|
|
|
25
|
Foreign
|
|
|
|
|
7
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
7
|
Total commercial
|
|
|
|
|
265
|
|
|
303
|
|
|
298
|
|
|
256
|
|
|
425
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (4)
|
|
|
|
|
563
|
|
|
564
|
|
|
627
|
|
|
561
|
|
|
616
|
Real estate 1-4 family junior lien mortgage (4)(5)
|
|
|
|
|
112
|
|
|
133
|
|
|
151
|
|
|
159
|
|
|
156
|
Credit card
|
|
|
|
|
306
|
|
|
310
|
|
|
288
|
|
|
274
|
|
|
319
|
Automobile
|
|
|
|
|
33
|
|
|
40
|
|
|
43
|
|
|
36
|
|
|
37
|
Other revolving credit and installment
|
|
|
|
|
81
|
|
|
85
|
|
|
85
|
|
|
74
|
|
|
83
|
Total consumer
|
|
|
|
|
1,095
|
|
|
1,132
|
|
|
1,194
|
|
|
1,104
|
|
|
1,211
|
Total, not government insured/guaranteed
|
|
|
|
$
|
1,360
|
|
|
1,435
|
|
|
1,492
|
|
|
1,360
|
|
|
1,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The carrying value of purchased credit-impaired (PCI) loans
contractually 90 days or more past due was $5.8 billion, $6.0
billion, $6.2 billion, $6.6 billion and $7.1 billion, at March 31,
2013 and December 31, September 30, June 30 and March 31, 2012,
respectively. These amounts are excluded from the above table as
PCI loan accretable yield interest recognition is independent from
the underlying contractual loan delinquency status.
|
(2) Represents loans whose repayments are insured by the FHA or
guaranteed by the VA.
|
(3) Represents loans whose repayments are predominantly guaranteed
by agencies on behalf of the U.S. Department of Education under
the Federal Family Education Loan Program (FFELP).
|
(4) Includes mortgages held for sale 90 days or more past due and
still accruing.
|
(5) During first quarter 2012, $43 million of 1-4 family junior
lien mortgages were transferred to nonaccrual upon implementation
of the Interagency Guidance issued on January 31, 2012.
|
|
|
Wells Fargo & Company and Subsidiaries
|
PURCHASED CREDIT-IMPAIRED (PCI) LOANS
|
|
Loans purchased with evidence of credit deterioration since
origination and for which it is probable that all contractually
required payments will not be collected are considered to be credit
impaired. PCI loans predominantly represent loans acquired from
Wachovia that were deemed to be credit impaired. Evidence of credit
quality deterioration as of the purchase date may include statistics
such as past due and nonaccrual status, recent borrower credit
scores and recent LTV percentages. PCI loans are initially measured
at fair value, which includes estimated future credit losses
expected to be incurred over the life of the loan. Accordingly, the
associated allowance for credit losses related to these loans is not
carried over at the acquisition date.
Under the accounting guidance for PCI loans, the excess of cash
flows expected to be collected over the estimated fair value is
referred to as the accretable yield and is recognized in interest
income over the remaining life of the loan, or pool of loans, in
situations where there is a reasonable expectation about the
timing and amount of cash flows expected to be collected.
Accordingly, such loans are not classified as nonaccrual and they
are considered to be accruing because their interest income
relates to the accretable yield recognized under accounting for
PCI loans and not to contractual interest payments. The difference
between the contractually required payments and the cash flows
expected to be collected at acquisition, considering the impact of
prepayments, is referred to as the nonaccretable difference.
Subsequent to acquisition, we regularly evaluate our estimates of
cash flows expected to be collected. These evaluations, performed
quarterly, require the continued usage of key assumptions and
estimates, similar to the initial estimate of fair value. If we
have probable decreases in the expected cash flows (other than due
to decreases in interest rate indices and changes in prepayment
assumptions), we charge the provision for credit losses, resulting
in an increase to the allowance for loan losses. If we have
probable and significant increases in the expected cash flows
subsequent to establishing an additional allowance, we first
reverse any previously established allowance and then increase
interest income over the remaining life of the loan, or pool of
loans.
As a result of PCI loan accounting, certain credit-related ratios
cannot be used to compare a portfolio that includes PCI loans
against one that does not, or to compare ratios across quarters or
years. The ratios particularly affected include the allowance for
loan losses and allowance for credit losses as percentages of
loans, of nonaccrual loans and of nonperforming assets; nonaccrual
loans and nonperforming assets as a percentage of total loans; and
net charge-offs as a percentage of loans.
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
December 31,
|
(in millions)
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2008
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
$
|
191
|
|
|
|
259
|
|
|
4,580
|
Real estate mortgage
|
|
|
|
|
|
1,839
|
|
|
|
1,970
|
|
|
5,803
|
Real estate construction
|
|
|
|
|
|
767
|
|
|
|
877
|
|
|
6,462
|
Foreign
|
|
|
|
|
|
705
|
|
|
|
871
|
|
|
1,859
|
Total commercial
|
|
|
|
|
|
3,502
|
|
|
|
3,977
|
|
|
18,704
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
|
26,086
|
|
|
|
26,839
|
|
|
39,214
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
|
141
|
|
|
|
152
|
|
|
728
|
Automobile
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
151
|
Total consumer
|
|
|
|
|
|
26,227
|
|
|
|
26,991
|
|
|
40,093
|
Total PCI loans (carrying value)
|
|
|
|
|
$
|
29,729
|
|
|
|
30,968
|
|
|
58,797
|
|
Wells Fargo & Company and Subsidiaries
|
CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS
|
|
The difference between the contractually required payments and the
cash flows expected to be collected at acquisition, considering the
impact of prepayments, is referred to as the nonaccretable
difference. A nonaccretable difference is established in purchase
accounting for PCI loans to absorb losses expected at that time on
those loans. Amounts absorbed by the nonaccretable difference do not
affect the income statement or the allowance for credit losses.
Substantially all our commercial and industrial, CRE and foreign PCI
loans are accounted for as individual loans. Conversely, Pick-a-Pay
and other consumer PCI loans have been aggregated into several pools
based on common risk characteristics. Each pool is accounted for as
a single asset with a single composite interest rate and an
aggregate expectation of cash flows. Resolutions of loans may
include sales to third parties, receipt of payments in settlement
with the borrower, or foreclosure of the collateral. Our policy is
to remove an individual loan from a pool based on comparing the
amount received from its resolution with its contractual amount. Any
difference between these amounts is absorbed by the nonaccretable
difference. This removal method assumes that the amount received
from resolution approximates pool performance expectations. The
accretable yield percentage is unaffected by the resolution and any
changes in the effective yield for the remaining loans in the pool
are addressed by our quarterly cash flow evaluation process for each
pool. For loans that are resolved by payment in full, there is no
release of the nonaccretable difference for the pool because there
is no difference between the amount received at resolution and the
contractual amount of the loan. Modified PCI loans are not removed
from a pool even if those loans would otherwise be deemed troubled
debt restructurings (TDRs). Modified PCI loans that are accounted
for individually are considered TDRs, and removed from PCI
accounting, if there has been a concession granted in excess of the
original nonaccretable difference. The following table provides an
analysis of changes in the nonaccretable difference.
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
(in millions)
|
|
|
Commercial
|
|
|
Pick-a-Pay
|
|
|
consumer
|
|
|
Total
|
Balance, December 31, 2008
|
|
|
$
|
10,410
|
|
|
|
26,485
|
|
|
|
4,069
|
|
|
|
40,964
|
|
Addition of nonaccretable difference due to acquisitions
|
|
|
|
195
|
|
|
|
-
|
|
|
|
-
|
|
|
|
195
|
|
Release of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans resolved by settlement with borrower (1)
|
|
|
|
(1,426
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,426
|
)
|
Loans resolved by sales to third parties (2)
|
|
|
|
(303
|
)
|
|
|
-
|
|
|
|
(85
|
)
|
|
|
(388
|
)
|
Reclassification to accretable yield for loans with improving
credit-related cash flows (3)
|
|
|
|
(1,531
|
)
|
|
|
(3,031
|
)
|
|
|
(792
|
)
|
|
|
(5,354
|
)
|
Use of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from loan resolutions and write-downs (4)
|
|
|
|
(6,923
|
)
|
|
|
(17,222
|
)
|
|
|
(2,882
|
)
|
|
|
(27,027
|
)
|
Balance, December 31, 2012
|
|
|
|
422
|
|
|
|
6,232
|
|
|
|
310
|
|
|
|
6,964
|
|
Addition of nonaccretable difference due to acquisitions
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Release of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans resolved by settlement with borrower (1)
|
|
|
|
(30
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(30
|
)
|
Loans resolved by sales to third parties (2)
|
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(5
|
)
|
Reclassification to accretable yield for loans with improving
credit-related cash flows (3)
|
|
|
|
(31
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(31
|
)
|
Use of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses from loan resolutions and write-downs (4)
|
|
|
|
(20
|
)
|
|
|
(345
|
)
|
|
|
(47
|
)
|
|
|
(412
|
)
|
Balance, March 31, 2013
|
|
|
$
|
336
|
|
|
|
5,887
|
|
|
|
263
|
|
|
|
6,486
|
|
|
(1) Release of the nonaccretable difference for settlement with
borrower, on individually accounted PCI loans, increases interest
income in the period of settlement. Pick-a-Pay and Other consumer
PCI loans do not reflect nonaccretable difference releases for
settlements with borrowers due to pool accounting for those loans,
which assumes that the amount received approximates the pool
performance expectations.
|
(2) Release of the nonaccretable difference as a result of sales
to third parties increases noninterest income in the period of the
sale.
|
(3) Reclassification of nonaccretable difference to accretable
yield for loans with increased cash flow estimates will result in
increased interest income as a prospective yield adjustment over
the remaining life of the loan or pool of loans.
|
(4) Write-downs to net realizable value of PCI loans are absorbed
by the nonaccretable difference when severe delinquency (normally
180 days) or other indications of severe borrower financial stress
exist that indicate there will be a loss of contractually due
amounts upon final resolution of the loan.
|
|
|
Wells Fargo & Company and Subsidiaries
|
CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS
|
|
|
|
|
|
The excess of cash flows expected to be collected over the carrying
value of PCI loans is referred to as the accretable yield and is
accreted into interest income over the estimated lives of the PCI
loans using the effective yield method. The accretable yield is
affected by:
|
|
|
|
|
|
|
●
|
|
|
Changes in interest rate indices for variable rate PCI loans –
Expected future cash flows are based on the variable rates in effect
at the time of the quarterly assessment of expected cash flows;
|
|
●
|
|
|
Changes in prepayment assumptions – Prepayments affect the estimated
life of PCI loans which may change the amount of interest income,
and possibly principal, expected to be collected; and
|
|
●
|
|
|
Changes in the expected principal and interest payments over the
estimated life – Updates to changes in expected cash flows are
driven by the credit outlook and actions taken with borrowers.
Changes in expected future cash flows from loan modifications are
included in the regular evaluations of cash flows expected to be
collected.
|
|
|
|
|
|
The change in the accretable yield related to PCI loans is presented
in the following table.
|
(in millions)
|
|
|
|
|
|
Balance, December 31, 2008
|
|
|
|
$
|
10,447
|
|
Addition of accretable yield due to acquisitions
|
|
|
|
|
131
|
|
Accretion into interest income (1)
|
|
|
|
|
(9,351
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
|
|
(242
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
|
|
5,354
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
|
|
12,209
|
|
Balance, December 31, 2012
|
|
|
|
|
18,548
|
|
Addition of accretable yield due to acquisitions
|
|
|
|
|
-
|
|
Accretion into interest income (1)
|
|
|
|
|
(447
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
|
|
(151
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
|
|
31
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
|
|
(16
|
)
|
Balance, March 31, 2013
|
|
|
|
$
|
17,965
|
|
|
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
|
(2) Includes accretable yield released as a result of sales to
third parties, which is included in noninterest income.
|
(3) Represents changes in cash flows expected to be collected due
to the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
|
|
|
|
CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES
|
|
|
|
When it is estimated that the expected cash flows have decreased
subsequent to acquisition for a PCI loan or pool of loans, an
allowance is established and a provision for additional loss is
recorded as a charge to income. The following table summarizes the
changes in allowance for PCI loan losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
(in millions)
|
|
|
|
|
Commercial
|
|
|
|
Pick-a-Pay
|
|
|
consumer
|
|
|
|
Total
|
|
Balance, December 31, 2008
|
|
|
|
$
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
Provision for losses due to credit deterioration
|
|
|
|
|
1,693
|
|
|
|
-
|
|
|
123
|
|
|
|
1,816
|
|
Charge-offs
|
|
|
|
|
(1,605
|
)
|
|
|
-
|
|
|
(94
|
)
|
|
|
(1,699
|
)
|
Balance, December 31, 2012
|
|
|
|
|
88
|
|
|
|
-
|
|
|
29
|
|
|
|
117
|
|
Provision for losses due to credit deterioration
|
|
|
|
|
(32
|
)
|
|
|
-
|
|
|
-
|
|
|
|
(32
|
)
|
Charge-offs
|
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
(2
|
)
|
|
|
(5
|
)
|
Balance, March 31, 2013
|
|
|
|
$
|
53
|
|
|
|
-
|
|
|
27
|
|
|
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
|
|
|
March 31, 2013
|
|
|
|
|
|
|
PCI loans
|
|
|
All other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
carrying
|
|
|
|
|
|
carrying
|
|
|
|
|
|
unpaid
|
|
|
Current
|
|
|
|
|
|
value to
|
|
|
|
|
|
value to
|
|
|
|
|
|
principal
|
|
|
LTV
|
|
|
Carrying
|
|
|
current
|
|
|
Carrying
|
|
|
current
|
|
(in millions)
|
|
|
|
balance (2)
|
|
|
ratio (3)
|
|
|
value (4)
|
|
|
value (5)
|
|
|
value (4)
|
|
|
value (5)
|
|
California
|
|
|
|
$
|
21,043
|
|
|
109
|
%
|
|
$
|
16,971
|
|
|
87
|
%
|
|
$
|
15,036
|
|
|
79
|
%
|
Florida
|
|
|
|
|
2,720
|
|
|
109
|
|
|
|
2,178
|
|
|
83
|
|
|
|
3,154
|
|
|
90
|
|
New Jersey
|
|
|
|
|
1,179
|
|
|
91
|
|
|
|
1,195
|
|
|
88
|
|
|
|
1,994
|
|
|
79
|
|
New York
|
|
|
|
|
684
|
|
|
89
|
|
|
|
676
|
|
|
84
|
|
|
|
893
|
|
|
78
|
|
Texas
|
|
|
|
|
293
|
|
|
78
|
|
|
|
277
|
|
|
72
|
|
|
|
1,237
|
|
|
63
|
|
Other states
|
|
|
|
|
5,159
|
|
|
100
|
|
|
|
4,468
|
|
|
85
|
|
|
|
8,529
|
|
|
83
|
|
Total Pick-a-Pay loans
|
|
|
|
$
|
31,078
|
|
|
|
|
|
$
|
25,765
|
|
|
|
|
|
$
|
30,843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The individual states shown in this table represent the top
five states based on the total net carrying value of the
Pick-a-Pay loans at the beginning of 2013.
|
|
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
|
|
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
|
|
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
|
|
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
|
|
|
|
|
NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Wachovia commercial and industrial, commercial real estate
and foreign PCI loans (1)
|
|
|
|
$
|
2,770
|
|
|
3,170
|
|
|
3,836
|
|
|
4,278
|
|
|
5,213
|
Total commercial
|
|
|
|
|
2,770
|
|
|
3,170
|
|
|
3,836
|
|
|
4,278
|
|
|
5,213
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pick-a-Pay mortgage (1)
|
|
|
|
|
56,608
|
|
|
58,274
|
|
|
60,080
|
|
|
62,045
|
|
|
63,983
|
Liquidating home equity
|
|
|
|
|
4,421
|
|
|
4,647
|
|
|
4,951
|
|
|
5,199
|
|
|
5,456
|
Legacy Wells Fargo Financial indirect auto
|
|
|
|
|
593
|
|
|
830
|
|
|
1,104
|
|
|
1,454
|
|
|
1,907
|
Legacy Wells Fargo Financial debt consolidation
|
|
|
|
|
14,115
|
|
|
14,519
|
|
|
15,002
|
|
|
15,511
|
|
|
16,013
|
Education Finance - government guaranteed
|
|
|
|
|
11,922
|
|
|
12,465
|
|
|
12,951
|
|
|
13,823
|
|
|
14,800
|
Legacy Wachovia other PCI loans (1)
|
|
|
|
|
462
|
|
|
657
|
|
|
732
|
|
|
818
|
|
|
860
|
Total consumer
|
|
|
|
|
88,121
|
|
|
91,392
|
|
|
94,820
|
|
|
98,850
|
|
|
103,019
|
Total non-strategic and liquidating loan portfolios
|
|
|
|
$
|
90,891
|
|
|
94,562
|
|
|
98,656
|
|
|
103,128
|
|
|
108,232
|
|
(1) Net of purchase accounting adjustments related to PCI loans.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
(in millions)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
Balance, beginning of quarter
|
|
|
|
$
|
17,477
|
|
|
|
17,803
|
|
|
|
18,646
|
|
|
|
19,129
|
|
|
|
19,668
|
|
Provision for credit losses
|
|
|
|
|
1,219
|
|
|
|
1,831
|
|
|
|
1,591
|
|
|
|
1,800
|
|
|
|
1,995
|
|
Interest income on certain impaired loans (1)
|
|
|
|
|
(73
|
)
|
|
|
(70
|
)
|
|
|
(76
|
)
|
|
|
(82
|
)
|
|
|
(87
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
(181
|
)
|
|
|
(302
|
)
|
|
|
(285
|
)
|
|
|
(360
|
)
|
|
|
(359
|
)
|
Real estate mortgage
|
|
|
|
|
(60
|
)
|
|
|
(86
|
)
|
|
|
(100
|
)
|
|
|
(114
|
)
|
|
|
(82
|
)
|
Real estate construction
|
|
|
|
|
(5
|
)
|
|
|
(10
|
)
|
|
|
(41
|
)
|
|
|
(60
|
)
|
|
|
(80
|
)
|
Lease financing
|
|
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
|
(8
|
)
|
Foreign
|
|
|
|
|
(11
|
)
|
|
|
(30
|
)
|
|
|
(35
|
)
|
|
|
(17
|
)
|
|
|
(29
|
)
|
Total commercial
|
|
|
|
|
(260
|
)
|
|
|
(434
|
)
|
|
|
(466
|
)
|
|
|
(556
|
)
|
|
|
(558
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
(475
|
)
|
|
|
(694
|
)
|
|
|
(719
|
)
|
|
|
(772
|
)
|
|
|
(828
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
(514
|
)
|
|
|
(765
|
)
|
|
|
(1,095
|
)
|
|
|
(757
|
)
|
|
|
(820
|
)
|
Credit card
|
|
|
|
|
(266
|
)
|
|
|
(259
|
)
|
|
|
(255
|
)
|
|
|
(286
|
)
|
|
|
(301
|
)
|
Automobile
|
|
|
|
|
(164
|
)
|
|
|
(189
|
)
|
|
|
(152
|
)
|
|
|
(131
|
)
|
|
|
(179
|
)
|
Other revolving credit and installment
|
|
|
|
|
(182
|
)
|
|
|
(192
|
)
|
|
|
(184
|
)
|
|
|
(187
|
)
|
|
|
(194
|
)
|
Total consumer (2)
|
|
|
|
|
(1,601
|
)
|
|
|
(2,099
|
)
|
|
|
(2,405
|
)
|
|
|
(2,133
|
)
|
|
|
(2,322
|
)
|
Total loan charge-offs
|
|
|
|
|
(1,861
|
)
|
|
|
(2,533
|
)
|
|
|
(2,871
|
)
|
|
|
(2,689
|
)
|
|
|
(2,880
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
88
|
|
|
|
93
|
|
|
|
154
|
|
|
|
111
|
|
|
|
103
|
|
Real estate mortgage
|
|
|
|
|
31
|
|
|
|
48
|
|
|
|
46
|
|
|
|
33
|
|
|
|
36
|
|
Real estate construction
|
|
|
|
|
39
|
|
|
|
28
|
|
|
|
40
|
|
|
|
43
|
|
|
|
13
|
|
Lease financing
|
|
|
|
|
4
|
|
|
|
4
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
Foreign
|
|
|
|
|
8
|
|
|
|
6
|
|
|
|
5
|
|
|
|
6
|
|
|
|
15
|
|
Total commercial
|
|
|
|
|
170
|
|
|
|
179
|
|
|
|
249
|
|
|
|
198
|
|
|
|
173
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
|
46
|
|
|
|
45
|
|
|
|
46
|
|
|
|
29
|
|
|
|
37
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
|
65
|
|
|
|
75
|
|
|
|
59
|
|
|
|
68
|
|
|
|
57
|
|
Credit card
|
|
|
|
|
31
|
|
|
|
37
|
|
|
|
43
|
|
|
|
46
|
|
|
|
59
|
|
Automobile
|
|
|
|
|
88
|
|
|
|
77
|
|
|
|
77
|
|
|
|
103
|
|
|
|
105
|
|
Other revolving credit and installment
|
|
|
|
|
42
|
|
|
|
39
|
|
|
|
39
|
|
|
|
45
|
|
|
|
54
|
|
Total consumer
|
|
|
|
|
272
|
|
|
|
273
|
|
|
|
264
|
|
|
|
291
|
|
|
|
312
|
|
Total loan recoveries
|
|
|
|
|
442
|
|
|
|
452
|
|
|
|
513
|
|
|
|
489
|
|
|
|
485
|
|
Net loan charge-offs
|
|
|
|
|
(1,419
|
)
|
|
|
(2,081
|
)
|
|
|
(2,358
|
)
|
|
|
(2,200
|
)
|
|
|
(2,395
|
)
|
Allowances related to business combinations/other
|
|
|
|
|
(11
|
)
|
|
|
(6
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
(52
|
)
|
Balance, end of quarter
|
|
|
|
$
|
17,193
|
|
|
|
17,477
|
|
|
|
17,803
|
|
|
|
18,646
|
|
|
|
19,129
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
|
$
|
16,711
|
|
|
|
17,060
|
|
|
|
17,385
|
|
|
|
18,320
|
|
|
|
18,852
|
|
Allowance for unfunded credit commitments
|
|
|
|
|
482
|
|
|
|
417
|
|
|
|
418
|
|
|
|
326
|
|
|
|
277
|
|
Allowance for credit losses
|
|
|
|
$
|
17,193
|
|
|
|
17,477
|
|
|
|
17,803
|
|
|
|
18,646
|
|
|
|
19,129
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
|
|
0.72
|
|
%
|
|
1.05
|
|
|
|
1.21
|
|
|
|
1.15
|
|
|
|
1.25
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
|
2.09
|
|
|
|
2.13
|
|
|
|
2.22
|
|
|
|
2.36
|
|
|
|
2.46
|
|
Nonaccrual loans
|
|
|
|
|
86
|
|
|
|
83
|
|
|
|
83
|
|
|
|
89
|
|
|
|
86
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
|
73
|
|
|
|
70
|
|
|
|
69
|
|
|
|
74
|
|
|
|
71
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
|
2.15
|
|
|
|
2.19
|
|
|
|
2.27
|
|
|
|
2.41
|
|
|
|
2.50
|
|
Nonaccrual loans
|
|
|
|
|
88
|
|
|
|
85
|
|
|
|
85
|
|
|
|
91
|
|
|
|
87
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
|
75
|
|
|
|
71
|
|
|
|
70
|
|
|
|
75
|
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan's effective
interest rate over the remaining life of the loan recognize
reductions in allowance as interest income.
|
(2) Includes $321 million and $567 million for the quarters ended
December 31 and September 30, 2012, respectively, resulting from
the implementation of OCC guidance issued in third quarter 2012,
which requires consumer loans discharged in bankruptcy to be
placed on nonaccrual status and written down to net realizable
collateral value, regardless of their delinquency status.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Mar. 31,
|
|
(in billions)
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
Total equity
|
|
|
|
|
$
|
163.4
|
|
|
|
158.9
|
|
|
156.1
|
|
|
149.4
|
|
|
146.8
|
|
Noncontrolling interests
|
|
|
|
|
|
(1.3
|
)
|
|
|
(1.3
|
)
|
|
(1.4
|
)
|
|
(1.3
|
)
|
|
(1.3
|
)
|
Total Wells Fargo stockholders' equity
|
|
|
|
|
$
|
162.1
|
|
|
|
157.6
|
|
|
154.7
|
|
|
148.1
|
|
|
145.5
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred equity
|
|
|
|
|
|
(12.6
|
)
|
|
|
(12.0
|
)
|
|
(11.3
|
)
|
|
(10.6
|
)
|
|
(10.6
|
)
|
Goodwill and intangible assets (other than MSRs)
|
|
|
|
|
|
(32.5
|
)
|
|
|
(32.9
|
)
|
|
(33.4
|
)
|
|
(33.5
|
)
|
|
(33.7
|
)
|
Applicable deferred taxes
|
|
|
|
|
|
3.1
|
|
|
|
3.2
|
|
|
3.3
|
|
|
3.5
|
|
|
3.7
|
|
Deferred tax asset limitation
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
MSRs over specified limitations
|
|
|
|
|
|
(0.8
|
)
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
(0.7
|
)
|
|
(0.9
|
)
|
Cumulative other comprehensive income
|
|
|
|
|
|
(5.1
|
)
|
|
|
(5.6
|
)
|
|
(6.4
|
)
|
|
(4.6
|
)
|
|
(4.1
|
)
|
Other
|
|
|
|
|
|
(0.6
|
)
|
|
|
(0.6
|
)
|
|
(0.4
|
)
|
|
(0.5
|
)
|
|
(0.4
|
)
|
Tier 1 common equity
|
|
|
|
(A)
|
$
|
113.6
|
|
|
|
109.0
|
|
|
105.8
|
|
|
101.7
|
|
|
99.5
|
|
Total risk-weighted assets (2)
|
|
|
|
(B)
|
$
|
1,095.1
|
|
|
|
1,077.1
|
|
|
1,067.1
|
|
|
1,008.6
|
|
|
996.8
|
|
Tier 1 common equity to total risk-weighted assets (2)
|
|
|
|
(A)/(B)
|
|
10.38
|
%
|
|
|
10.12
|
|
|
9.92
|
|
|
10.08
|
|
|
9.98
|
|
|
|
(1) Tier 1 common equity is a non-generally accepted accounting
principle (GAAP) financial measure that is used by investors,
analysts and bank regulatory agencies to assess the capital
position of financial services companies. Management reviews Tier
1 common equity along with other measures of capital as part of
its financial analyses and has included this non-GAAP financial
information, and the corresponding reconciliation to total equity,
because of current interest in such information on the part of
market participants.
|
|
(2) Under the regulatory guidelines for risk-based capital,
on-balance sheet assets and credit equivalent amounts of
derivatives and off-balance sheet items are assigned to one of
several broad risk categories according to the obligor, or, if
relevant, the guarantor or the nature of any collateral. The
aggregate dollar amount in each risk category is then multiplied
by the risk weight associated with that category. The Company’s
March 31, 2013, risk-weighted assets and resulting Tier 1 common
equity to total risk-weighted assets are preliminary and reflect
total estimated on-balance sheet and total estimated derivative
and off-balance sheet risk-weighted assets of $882.7 billion and
$212.4 billion, respectively. Effective September 30, 2012, the
Company refined its determination of the risk weighting of certain
unused lending commitments that provide for the ability to issue
standby letters of credit and commitments to issue standby letters
of credit under syndication arrangements where the Company has an
obligation to issue in a lead agent or similar capacity beyond its
contractual participation level.
|
|
|
|
TIER 1 COMMON EQUITY UNDER BASEL III (ESTIMATED) (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
Tier 1 common equity under Basel I
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
113.6
|
|
Adjustments from Basel I to Basel III (3) (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative other comprehensive income related to AFS securities
and defined benefit pension plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.5
|
|
Total adjustments from Basel I to Basel III
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.3
|
|
Threshold deductions, as defined under Basel III (4) (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.9
|
)
|
Tier 1 common equity anticipated under Basel III
|
|
|
|
(C)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
118.0
|
|
Total risk-weighted assets anticipated under Basel III (6)
|
|
|
|
(D)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
1,406.1
|
|
Tier 1 common equity to total risk-weighted assets anticipated
under Basel III
|
|
|
|
(C)/(D)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8.39
|
%
|
|
|
(1) Tier 1 common equity is a non-generally accepted accounting
principle (GAAP) financial measure that is used by investors,
analysts and bank regulatory agencies to assess the capital
position of financial services companies. Management reviews Tier
1 common equity along with other measures of capital as part of
its financial analyses and has included this non-GAAP financial
information, and the corresponding reconciliation to total equity,
because of current interest in such information on the part of
market participants.
|
|
(2) The Basel III Tier 1 common equity and risk-weighted assets
are calculated based on management’s current interpretation of the
Basel III capital rules proposed by federal banking agencies in
notices of proposed rulemaking announced in June 2012. The
proposed rules and interpretations and assumptions used in
estimating Basel III calculations are subject to change depending
on final promulgations of Basel III capital rules.
|
|
(3) Adjustments from Basel I to Basel III represent reconciling
adjustments, primarily certain components of cumulative other
comprehensive income deducted for Basel I purposes, to derive Tier
1 common equity under Basel III.
|
|
(4) Threshold deductions, as defined under Basel III, include
individual and aggregate limitations, as a percentage of Tier 1
common equity, with respect to MSRs, deferred tax assets and
investments in unconsolidated financial companies.
|
|
(5) Volatility in interest rates can have a significant impact on
the valuation of cumulative other comprehensive income and MSRs
and therefore, may impact adjustments from Basel I to Basel III,
and MSRs subject to threshold deductions, as defined under Basel
III, in future reporting periods.
|
|
(6) Under current Basel proposals, risk-weighted assets
incorporate different classifications of assets, with certain risk
weights based on a borrower's credit rating or Wells Fargo's own
risk models, along with adjustments to address a combination of
credit/counterparty, operational and market risks, and other Basel
III elements. The amount of risk-weighted assets anticipated under
Basel III is preliminary and subject to change depending on final
promulgation of Basel III capital rulemaking and interpretations
thereof by regulatory authorities.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(income/expense in millions, average balances in billions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
|
$
|
7,119
|
|
|
|
7,166
|
|
|
|
7,247
|
|
|
|
7,306
|
|
|
|
7,326
|
|
Provision for credit losses
|
|
|
|
|
1,262
|
|
|
|
1,757
|
|
|
|
1,627
|
|
|
|
1,573
|
|
|
|
1,878
|
|
Noninterest income
|
|
|
|
|
5,780
|
|
|
|
6,616
|
|
|
|
5,863
|
|
|
|
5,786
|
|
|
|
6,095
|
|
Noninterest expense
|
|
|
|
|
7,377
|
|
|
|
8,033
|
|
|
|
7,402
|
|
|
|
7,580
|
|
|
|
7,825
|
|
Income before income tax expense
|
|
|
|
|
4,260
|
|
|
|
3,992
|
|
|
|
4,081
|
|
|
|
3,939
|
|
|
|
3,718
|
|
Income tax expense
|
|
|
|
|
1,288
|
|
|
|
918
|
|
|
|
1,250
|
|
|
|
1,313
|
|
|
|
1,293
|
|
Net income before noncontrolling interests
|
|
|
|
|
2,972
|
|
|
|
3,074
|
|
|
|
2,831
|
|
|
|
2,626
|
|
|
|
2,425
|
|
Less: Net income from noncontrolling interests
|
|
|
|
|
48
|
|
|
|
205
|
|
|
|
91
|
|
|
|
91
|
|
|
|
77
|
|
Segment net income
|
|
|
|
$
|
2,924
|
|
|
|
2,869
|
|
|
|
2,740
|
|
|
|
2,535
|
|
|
|
2,348
|
|
Average loans
|
|
|
|
$
|
498.9
|
|
|
|
493.1
|
|
|
|
485.3
|
|
|
|
483.9
|
|
|
|
486.1
|
|
Average assets
|
|
|
|
|
799.6
|
|
|
|
794.2
|
|
|
|
765.1
|
|
|
|
746.6
|
|
|
|
738.3
|
|
Average core deposits
|
|
|
|
|
619.2
|
|
|
|
608.9
|
|
|
|
594.5
|
|
|
|
586.1
|
|
|
|
575.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
|
$
|
3,005
|
|
|
|
3,092
|
|
|
|
3,028
|
|
|
|
3,347
|
|
|
|
3,181
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
|
(58
|
)
|
|
|
60
|
|
|
|
(57
|
)
|
|
|
188
|
|
|
|
95
|
|
Noninterest income
|
|
|
|
|
3,081
|
|
|
|
2,901
|
|
|
|
2,921
|
|
|
|
2,770
|
|
|
|
2,852
|
|
Noninterest expense
|
|
|
|
|
3,091
|
|
|
|
3,007
|
|
|
|
2,908
|
|
|
|
3,113
|
|
|
|
3,054
|
|
Income before income tax expense
|
|
|
|
|
3,053
|
|
|
|
2,926
|
|
|
|
3,098
|
|
|
|
2,816
|
|
|
|
2,884
|
|
Income tax expense
|
|
|
|
|
1,007
|
|
|
|
892
|
|
|
|
1,103
|
|
|
|
932
|
|
|
|
1,016
|
|
Net income before noncontrolling interests
|
|
|
|
|
2,046
|
|
|
|
2,034
|
|
|
|
1,995
|
|
|
|
1,884
|
|
|
|
1,868
|
|
Less: Net income from noncontrolling interests
|
|
|
|
|
1
|
|
|
|
2
|
|
|
|
2
|
|
|
|
3
|
|
|
|
-
|
|
Segment net income
|
|
|
|
$
|
2,045
|
|
|
|
2,032
|
|
|
|
1,993
|
|
|
|
1,881
|
|
|
|
1,868
|
|
Average loans
|
|
|
|
$
|
284.5
|
|
|
|
279.2
|
|
|
|
277.1
|
|
|
|
270.2
|
|
|
|
268.6
|
|
Average assets
|
|
|
|
|
496.1
|
|
|
|
489.7
|
|
|
|
490.7
|
|
|
|
478.4
|
|
|
|
467.8
|
|
Average core deposits
|
|
|
|
|
224.1
|
|
|
|
240.7
|
|
|
|
225.4
|
|
|
|
220.9
|
|
|
|
220.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEALTH, BROKERAGE AND RETIREMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
|
$
|
669
|
|
|
|
689
|
|
|
|
680
|
|
|
|
698
|
|
|
|
701
|
|
Provision for credit losses
|
|
|
|
|
14
|
|
|
|
15
|
|
|
|
30
|
|
|
|
37
|
|
|
|
43
|
|
Noninterest income
|
|
|
|
|
2,528
|
|
|
|
2,405
|
|
|
|
2,353
|
|
|
|
2,273
|
|
|
|
2,361
|
|
Noninterest expense
|
|
|
|
|
2,639
|
|
|
|
2,513
|
|
|
|
2,457
|
|
|
|
2,376
|
|
|
|
2,547
|
|
Income before income tax expense
|
|
|
|
|
544
|
|
|
|
566
|
|
|
|
546
|
|
|
|
558
|
|
|
|
472
|
|
Income tax expense
|
|
|
|
|
207
|
|
|
|
215
|
|
|
|
208
|
|
|
|
210
|
|
|
|
181
|
|
Net income before noncontrolling interests
|
|
|
|
|
337
|
|
|
|
351
|
|
|
|
338
|
|
|
|
348
|
|
|
|
291
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
(5
|
)
|
Segment net income
|
|
|
|
$
|
337
|
|
|
|
351
|
|
|
|
338
|
|
|
|
343
|
|
|
|
296
|
|
Average loans
|
|
|
|
$
|
43.8
|
|
|
|
43.3
|
|
|
|
42.5
|
|
|
|
42.5
|
|
|
|
42.5
|
|
Average assets
|
|
|
|
|
180.3
|
|
|
|
171.7
|
|
|
|
163.8
|
|
|
|
160.9
|
|
|
|
161.9
|
|
Average core deposits
|
|
|
|
|
149.4
|
|
|
|
143.4
|
|
|
|
136.7
|
|
|
|
134.2
|
|
|
|
135.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
|
$
|
(294
|
)
|
|
|
(304
|
)
|
|
|
(293
|
)
|
|
|
(314
|
)
|
|
|
(320
|
)
|
Provision (reversal of provision) for credit losses
|
|
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
(9
|
)
|
|
|
2
|
|
|
|
(21
|
)
|
Noninterest income
|
|
|
|
|
(629
|
)
|
|
|
(617
|
)
|
|
|
(586
|
)
|
|
|
(577
|
)
|
|
|
(560
|
)
|
Noninterest expense
|
|
|
|
|
(707
|
)
|
|
|
(657
|
)
|
|
|
(655
|
)
|
|
|
(672
|
)
|
|
|
(433
|
)
|
Loss before income tax benefit
|
|
|
|
|
(217
|
)
|
|
|
(263
|
)
|
|
|
(215
|
)
|
|
|
(221
|
)
|
|
|
(426
|
)
|
Income tax benefit
|
|
|
|
|
(82
|
)
|
|
|
(101
|
)
|
|
|
(81
|
)
|
|
|
(84
|
)
|
|
|
(162
|
)
|
Net loss before noncontrolling interests
|
|
|
|
|
(135
|
)
|
|
|
(162
|
)
|
|
|
(134
|
)
|
|
|
(137
|
)
|
|
|
(264
|
)
|
Less: Net income from noncontrolling interests
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Other net loss
|
|
|
|
$
|
(135
|
)
|
|
|
(162
|
)
|
|
|
(134
|
)
|
|
|
(137
|
)
|
|
|
(264
|
)
|
Average loans
|
|
|
|
$
|
(29.1
|
)
|
|
|
(28.4
|
)
|
|
|
(28.2
|
)
|
|
|
(28.4
|
)
|
|
|
(28.6
|
)
|
Average assets
|
|
|
|
|
(71.7
|
)
|
|
|
(68.5
|
)
|
|
|
(65.3
|
)
|
|
|
(64.3
|
)
|
|
|
(65.1
|
)
|
Average core deposits
|
|
|
|
|
(66.8
|
)
|
|
|
(64.2
|
)
|
|
|
(61.2
|
)
|
|
|
(60.6
|
)
|
|
|
(61.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
|
$
|
10,499
|
|
|
|
10,643
|
|
|
|
10,662
|
|
|
|
11,037
|
|
|
|
10,888
|
|
Provision for credit losses
|
|
|
|
|
1,219
|
|
|
|
1,831
|
|
|
|
1,591
|
|
|
|
1,800
|
|
|
|
1,995
|
|
Noninterest income
|
|
|
|
|
10,760
|
|
|
|
11,305
|
|
|
|
10,551
|
|
|
|
10,252
|
|
|
|
10,748
|
|
Noninterest expense
|
|
|
|
|
12,400
|
|
|
|
12,896
|
|
|
|
12,112
|
|
|
|
12,397
|
|
|
|
12,993
|
|
Income before income tax expense
|
|
|
|
|
7,640
|
|
|
|
7,221
|
|
|
|
7,510
|
|
|
|
7,092
|
|
|
|
6,648
|
|
Income tax expense
|
|
|
|
|
2,420
|
|
|
|
1,924
|
|
|
|
2,480
|
|
|
|
2,371
|
|
|
|
2,328
|
|
Net income before noncontrolling interests
|
|
|
|
|
5,220
|
|
|
|
5,297
|
|
|
|
5,030
|
|
|
|
4,721
|
|
|
|
4,320
|
|
Less: Net income from noncontrolling interests
|
|
|
|
|
49
|
|
|
|
207
|
|
|
|
93
|
|
|
|
99
|
|
|
|
72
|
|
Wells Fargo net income
|
|
|
|
$
|
5,171
|
|
|
|
5,090
|
|
|
|
4,937
|
|
|
|
4,622
|
|
|
|
4,248
|
|
Average loans
|
|
|
|
$
|
798.1
|
|
|
|
787.2
|
|
|
|
776.7
|
|
|
|
768.2
|
|
|
|
768.6
|
|
Average assets
|
|
|
|
|
1,404.3
|
|
|
|
1,387.1
|
|
|
|
1,354.3
|
|
|
|
1,321.6
|
|
|
|
1,302.9
|
|
Average core deposits
|
|
|
|
|
925.9
|
|
|
|
928.8
|
|
|
|
895.4
|
|
|
|
880.6
|
|
|
|
870.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment. In first quarter
2012, we modified internal funds transfer rates and the allocation
of funding.
|
|
(2) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
(3) Includes Wachovia integration expenses, through completion in
the first quarter of 2012, and the elimination of items that are
included in both Community Banking and Wealth, Brokerage and
Retirement, largely representing services and products for wealth
management customers provided in Community Banking stores
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
|
|
$
|
11,538
|
|
|
|
10,956
|
|
|
|
12,081
|
|
|
|
13,578
|
|
|
|
12,603
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
|
|
935
|
|
|
|
1,094
|
|
|
|
1,173
|
|
|
|
1,139
|
|
|
|
1,776
|
|
Sales
|
|
|
|
|
(423
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(293
|
)
|
|
|
-
|
|
Net additions
|
|
|
|
|
512
|
|
|
|
1,094
|
|
|
|
1,173
|
|
|
|
846
|
|
|
|
1,776
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (2)
|
|
|
|
|
1,030
|
|
|
|
388
|
|
|
|
(1,131
|
)
|
|
|
(1,496
|
)
|
|
|
147
|
|
Servicing and foreclosure costs (3)
|
|
|
|
|
(58
|
)
|
|
|
(127
|
)
|
|
|
(350
|
)
|
|
|
(146
|
)
|
|
|
(54
|
)
|
Discount rates (4)
|
|
|
|
|
-
|
|
|
|
(53
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(344
|
)
|
Prepayment estimates and other (5)
|
|
|
|
|
(211
|
)
|
|
|
115
|
|
|
|
54
|
|
|
|
11
|
|
|
|
93
|
|
Net changes in valuation model inputs or assumptions
|
|
|
|
|
761
|
|
|
|
323
|
|
|
|
(1,427
|
)
|
|
|
(1,631
|
)
|
|
|
(158
|
)
|
Other changes in fair value (6)
|
|
|
|
|
(750
|
)
|
|
|
(835
|
)
|
|
|
(871
|
)
|
|
|
(712
|
)
|
|
|
(643
|
)
|
Total changes in fair value
|
|
|
|
|
11
|
|
|
|
(512
|
)
|
|
|
(2,298
|
)
|
|
|
(2,343
|
)
|
|
|
(801
|
)
|
Fair value, end of quarter
|
|
|
|
$
|
12,061
|
|
|
|
11,538
|
|
|
|
10,956
|
|
|
|
12,081
|
|
|
|
13,578
|
|
|
|
(1) Quarter ended March 31, 2012, includes $315 million
residential MSRs transferred from amortized MSRs that we elected
to carry at fair value effective January 1, 2012.
|
|
(2) Primarily represents prepayment speed changes due to changes
in mortgage interest rates, but also includes other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances).
|
|
(3) Includes costs to service and unreimbursed foreclosure costs.
|
|
(4) Reflects discount rate assumption change, excluding portion
attributable to changes in mortgage interest rates; the fourth
quarter 2012 change reflects updated broker input on market values
for servicing fees in excess of the minimum that can be retained
on loans sold to Freddie Mac and Fannie Mae and the first quarter
2012 change reflects increased capital return requirements from
market participants.
|
|
(5) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and
other assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior that occur
independent of interest rate changes.
|
|
(6) Represents changes due to collection/realization of expected
cash flows over time.
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
|
$
|
1,160
|
|
|
|
1,144
|
|
|
|
1,130
|
|
|
|
1,074
|
|
|
|
1,445
|
|
Purchases
|
|
|
|
|
27
|
|
|
|
43
|
|
|
|
42
|
|
|
|
78
|
|
|
|
14
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
|
|
56
|
|
|
|
34
|
|
|
|
30
|
|
|
|
34
|
|
|
|
(327
|
)
|
Amortization
|
|
|
|
|
(62
|
)
|
|
|
(61
|
)
|
|
|
(58
|
)
|
|
|
(56
|
)
|
|
|
(58
|
)
|
Balance, end of quarter
|
|
|
|
|
1,181
|
|
|
|
1,160
|
|
|
|
1,144
|
|
|
|
1,130
|
|
|
|
1,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(37
|
)
|
Reversal of provision for MSRs in excess of fair value (1)
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
37
|
|
Balance, end of quarter
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Amortized MSRs, net
|
|
|
|
$
|
1,181
|
|
|
|
1,160
|
|
|
|
1,144
|
|
|
|
1,130
|
|
|
|
1,074
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
|
$
|
1,400
|
|
|
|
1,399
|
|
|
|
1,450
|
|
|
|
1,263
|
|
|
|
1,756
|
|
End of quarter
|
|
|
|
|
1,404
|
|
|
|
1,400
|
|
|
|
1,399
|
|
|
|
1,450
|
|
|
|
1,263
|
|
|
|
|
(1) Quarter ended March 31, 2012, is net of $350 million ($313
million after valuation allowance) of residential MSRs that we
elected to carry at fair value effective January 1, 2012. A
cumulative adjustment of $2 million to fair value was recorded in
retained earnings at January 1, 2012.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
$
|
997
|
|
|
|
926
|
|
|
|
984
|
|
|
|
1,070
|
|
|
|
1,011
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
|
|
|
761
|
|
|
|
323
|
|
|
|
(1,427
|
)
|
|
|
(1,631
|
)
|
|
|
(158
|
)
|
Other changes in fair value (3)
|
|
|
|
|
(750
|
)
|
|
|
(835
|
)
|
|
|
(871
|
)
|
|
|
(712
|
)
|
|
|
(643
|
)
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
|
11
|
|
|
|
(512
|
)
|
|
|
(2,298
|
)
|
|
|
(2,343
|
)
|
|
|
(801
|
)
|
Amortization
|
|
|
|
|
(62
|
)
|
|
|
(61
|
)
|
|
|
(58
|
)
|
|
|
(56
|
)
|
|
|
(58
|
)
|
Net derivative gains (losses) from economic hedges (4)
|
|
|
|
|
(632
|
)
|
|
|
(103
|
)
|
|
|
1,569
|
|
|
|
2,008
|
|
|
|
100
|
|
Total servicing income, net
|
|
|
|
$
|
314
|
|
|
|
250
|
|
|
|
197
|
|
|
|
679
|
|
|
|
252
|
|
Market-related valuation changes to MSRs, net of hedge results
(2)+(4)
|
|
|
|
$
|
129
|
|
|
|
220
|
|
|
|
142
|
|
|
|
377
|
|
|
|
(58
|
)
|
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues.
|
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
|
(3) Represents changes due to collection/realization of expected
cash flows over time.
|
|
(4) Represents results from free-standing derivatives (economic
hedges) used to hedge the risk of changes in fair value of MSRs.
|
|
|
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in billions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
$
|
1,486
|
|
|
|
1,498
|
|
|
|
1,508
|
|
|
|
1,499
|
|
|
|
1,483
|
|
Owned loans serviced
|
|
|
|
|
367
|
|
|
|
368
|
|
|
|
364
|
|
|
|
357
|
|
|
|
350
|
|
Subservicing
|
|
|
|
|
7
|
|
|
|
7
|
|
|
|
7
|
|
|
|
7
|
|
|
|
7
|
|
Total residential servicing
|
|
|
|
|
1,860
|
|
|
|
1,873
|
|
|
|
1,879
|
|
|
|
1,863
|
|
|
|
1,840
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
|
404
|
|
|
|
408
|
|
|
|
405
|
|
|
|
406
|
|
|
|
407
|
|
Owned loans serviced
|
|
|
|
|
106
|
|
|
|
106
|
|
|
|
105
|
|
|
|
106
|
|
|
|
106
|
|
Subservicing
|
|
|
|
|
14
|
|
|
|
13
|
|
|
|
13
|
|
|
|
13
|
|
|
|
13
|
|
Total commercial servicing
|
|
|
|
|
524
|
|
|
|
527
|
|
|
|
523
|
|
|
|
525
|
|
|
|
526
|
|
Total managed servicing portfolio
|
|
|
|
$
|
2,384
|
|
|
|
2,400
|
|
|
|
2,402
|
|
|
|
2,388
|
|
|
|
2,366
|
|
Total serviced for others
|
|
|
|
$
|
1,890
|
|
|
|
1,906
|
|
|
|
1,913
|
|
|
|
1,905
|
|
|
|
1,890
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
|
|
0.70
|
%
|
|
|
0.67
|
|
|
|
0.63
|
|
|
|
0.69
|
|
|
|
0.77
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
|
|
4.69
|
|
|
|
4.77
|
|
|
|
4.87
|
|
|
|
4.97
|
|
|
|
5.05
|
|
|
|
(1) The components of our managed servicing portfolio are
presented at unpaid principal balance for loans serviced and
subserviced for others and at book value for owned loans serviced.
|
|
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in billions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
Application data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
$
|
140
|
|
|
|
152
|
|
|
|
188
|
|
|
|
208
|
|
|
|
188
|
|
Refinances as a percentage of applications
|
|
|
|
|
65
|
%
|
|
|
72
|
|
|
|
72
|
|
|
|
69
|
|
|
|
76
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
$
|
74
|
|
|
|
81
|
|
|
|
97
|
|
|
|
102
|
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
$
|
59
|
|
|
|
63
|
|
|
|
61
|
|
|
|
62
|
|
|
|
61
|
|
Correspondent/Wholesale
|
|
|
|
|
49
|
|
|
|
61
|
|
|
|
77
|
|
|
|
68
|
|
|
|
68
|
|
Other (1)
|
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
Total quarter-to-date
|
|
|
|
$
|
109
|
|
|
|
125
|
|
|
|
139
|
|
|
|
131
|
|
|
|
129
|
|
Total year-to-date
|
|
|
|
$
|
109
|
|
|
|
524
|
|
|
|
399
|
|
|
|
260
|
|
|
|
129
|
|
|
(1) Consists of home equity loans and lines.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Mar. 31,
|
|
|
|
Dec. 31,
|
|
|
|
Sept. 30,
|
|
|
|
June 30,
|
|
|
|
Mar. 31,
|
|
(in millions)
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
|
|
2012
|
|
Balance, beginning of period
|
|
|
|
$
|
2,206
|
|
|
|
2,033
|
|
|
|
1,764
|
|
|
|
1,444
|
|
|
|
1,326
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
|
|
59
|
|
|
|
66
|
|
|
|
75
|
|
|
|
72
|
|
|
|
62
|
|
Change in estimate (1)
|
|
|
|
|
250
|
|
|
|
313
|
|
|
|
387
|
|
|
|
597
|
|
|
|
368
|
|
Total additions
|
|
|
|
|
309
|
|
|
|
379
|
|
|
|
462
|
|
|
|
669
|
|
|
|
430
|
|
Losses
|
|
|
|
|
(198
|
)
|
|
|
(206
|
)
|
|
|
(193
|
)
|
|
|
(349
|
)
|
|
|
(312
|
)
|
Balance, end of period
|
|
|
|
$
|
2,317
|
|
|
|
2,206
|
|
|
|
2,033
|
|
|
|
1,764
|
|
|
|
1,444
|
|
|
|
(1) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.
|
|
|
UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government
|
|
|
|
|
|
|
|
rescissions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
|
|
|
|
|
|
|
|
with no
|
|
|
|
|
|
($ in millions)
|
|
|
|
|
|
|
|
|
entities (1)
|
|
|
|
Private
|
|
|
|
demand (2)
|
|
|
|
Total
|
|
March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
|
|
|
|
|
|
5,910
|
|
|
|
1,278
|
|
|
|
652
|
|
|
|
7,840
|
|
Original loan balance (3)
|
|
|
|
|
|
|
|
$
|
1,371
|
|
|
|
278
|
|
|
|
145
|
|
|
|
1,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
|
|
|
|
|
|
6,621
|
|
|
|
1,306
|
|
|
|
753
|
|
|
|
8,680
|
|
Original loan balance (3)
|
|
|
|
|
|
|
|
$
|
1,503
|
|
|
|
281
|
|
|
|
160
|
|
|
|
1,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
|
|
|
|
|
|
6,525
|
|
|
|
1,513
|
|
|
|
817
|
|
|
|
8,855
|
|
Original loan balance (3)
|
|
|
|
|
|
|
|
$
|
1,489
|
|
|
|
331
|
|
|
|
183
|
|
|
|
2,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
|
|
|
|
|
|
5,687
|
|
|
|
913
|
|
|
|
840
|
|
|
|
7,440
|
|
Original loan balance (3)
|
|
|
|
|
|
|
|
$
|
1,265
|
|
|
|
213
|
|
|
|
188
|
|
|
|
1,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
|
|
|
|
|
|
6,333
|
|
|
|
857
|
|
|
|
970
|
|
|
|
8,160
|
|
Original loan balance (3)
|
|
|
|
|
|
|
|
$
|
1,398
|
|
|
|
241
|
|
|
|
217
|
|
|
|
1,856
|
|
|
|
|
|
(1) Includes repurchase demands of 674 and $147 million, 661 and
$132 million, 534 and $111 million, 526 and $103 million, and 694
and $131 million, for March 31, 2013, and December 31, September
30, June 30 and March 31, 2012, respectively, received from
investors on mortgage servicing rights acquired from other
originators. We generally have the right of recourse against the
seller and may be able to recover losses related to such
repurchase demands subject to counterparty risk associated with
the seller. The number of repurchase demands from GSEs that are
from mortgage loans originated in 2006 through 2008 totaled 86% at
March 31, 2013.
|
|
(2) As part of our representations and warranties in our loan
sales contracts, we typically represent to GSEs and private
investors that certain loans have mortgage insurance to the extent
there are loans that have loan to value ratios in excess of 80%
that require mortgage insurance. To the extent the mortgage
insurance is rescinded by the mortgage insurer due to a claim of
breach of a contractual representation or warranty, the lack of
insurance may result in a repurchase demand from an investor.
Similar to repurchase demands, we evaluate mortgage insurance
rescission notices for validity and appeal for reinstatement if
the rescission was not based on a contractual breach. When
investor demands are received due to lack of mortgage insurance,
they are reported as unresolved repurchase demands based on the
applicable investor category for the loan (GSE or private). Over
the last year, approximately 15% of our repurchase demands from
GSEs had mortgage insurance rescission as one of the reasons for
the repurchase demand. Of all the mortgage insurance rescission
notices received in 2012, approximately 70% have resulted in
repurchase demands through March 2013. Not all mortgage insurance
rescissions received in 2012 have been completed through the
appeals process with the mortgage insurer and upon successful
appeal, we work with the investor to rescind the repurchase demand.
|
|
(3) While the original loan balances related to these demands are
presented above, the establishment of the repurchase liability is
based on a combination of factors, such as our appeals success
rates, reimbursement by correspondent and other third party
originators, and projected loss severity, which is driven by the
difference between the current loan balance and the estimated
collateral value less costs to sell the property.
|
|
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20130412005364r1&sid=ntxv4&distro=nx)