Wells Fargo & Company (NYSE:WFC):
-
Continued strong financial results:
-
Net income of $5.7 billion, up 3 percent from third quarter 2013
-
Diluted earnings per share (EPS) of $1.02, up 3 percent
-
Revenue of $21.2 billion, up 4 percent
-
Pre-tax pre-provision profit1 of $9.0 billion, up 7
percent
-
Efficiency ratio of 57.7 percent, improved by 140 basis points
-
Return on assets (ROA) of 1.40 percent and return on equity (ROE)
of 13.10 percent
-
Strong loan and deposit growth:
-
Total average loans of $833.2 billion, up $31.1 billion, or 4
percent, from third quarter 2013
-
Quarter-end loans of $838.9 billion, up $29.7 billion, or 4
percent
-
Quarter-end core loans of $775.8 billion, up $50.8 billion, or
7 percent2
-
Total average deposits of $1.1 trillion, up $101.5 billion, or 10
percent
-
Continued improvement in credit quality:
-
Net charge-offs of $668 million, down $307 million from third
quarter 2013
-
Net charge-off rate of 0.32 percent (annualized), down from
0.48 percent
-
Nonperforming assets down $3.0 billion, or 15 percent
-
$300 million reserve release3 due to improvement in
credit quality
-
Maintained strong capital levels4 and continued share
repurchases:
-
Common Equity Tier 1 ratio under Basel III (General Approach) of
11.16 percent at September 30, 2014
-
Common Equity Tier 1 ratio under Basel III (Advanced Approach,
fully phased-in) of 10.46 percent
-
Period-end common shares outstanding down 34.9 million in third
quarter on 48.7 million of purchases
-
Entered into a forward repurchase transaction for an
additional estimated 19.8 million shares expected to settle in
fourth quarter 2014
|
1
|
|
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.
|
|
2
|
|
See Loans Breakdown table for more information on core and
non-strategic/liquidating loan portfolios.
|
|
3
|
|
Reserve release represents the amount by which net charge-offs
exceed the provision for credit losses.
|
|
4
|
|
See FIVE QUARTER RISK-BASED CAPITAL COMPONENTS and COMMON EQUITY
TIER 1 UNDER BASEL III tables for more information on Common
Equity Tier 1. Common Equity Tier 1 (Advanced Approach, fully
phased-in) is estimated based on final rules adopted July 2, 2013,
by the Federal Reserve Board establishing a new comprehensive
capital framework for U.S. banking organizations that would
implement the Basel III capital framework and certain provisions
of the Dodd-Frank Act.
|
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
Sept. 30,
|
|
|
|
|
2014
|
|
|
2014
|
|
2013
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
1.02
|
|
|
1.01
|
|
0.99
|
|
Wells Fargo net income (in billions)
|
|
|
|
5.73
|
|
|
5.73
|
|
5.58
|
|
Return on assets (ROA)
|
|
|
|
1.40
|
%
|
|
1.47
|
|
1.53
|
|
Return on equity (ROE)
|
|
|
|
13.10
|
|
|
13.40
|
|
14.07
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of avg. total loans
|
|
|
|
0.32
|
|
|
0.35
|
|
0.48
|
|
Allowance for credit losses as a % of total loans
|
|
|
|
1.61
|
|
|
1.67
|
|
1.93
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
|
509
|
|
|
481
|
|
405
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
21.2
|
|
|
21.1
|
|
20.5
|
|
Efficiency ratio
|
|
|
|
57.7
|
%
|
|
57.9
|
|
59.1
|
|
Average loans (in billions)
|
|
|
$
|
833.2
|
|
|
831.0
|
|
802.1
|
|
Average core deposits (in billions)
|
|
|
|
1,012.2
|
|
|
991.7
|
|
940.3
|
|
Net interest margin
|
|
|
|
3.06
|
%
|
|
3.15
|
|
3.39
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.7 billion, or
$1.02 per diluted common share, for third quarter 2014, up from $5.6
billion, or $0.99 per share, for third quarter 2013. For the first nine
months of 2014, net income was $17.3 billion, or $3.08 per share, up
from $16.3 billion, or $2.89 per share, for the same period in 2013.
“The Company’s third quarter results demonstrated strength in the
fundamental drivers of our long-term growth,” said Chairman and CEO John
Stumpf. “Loan and deposit growth was strong and diversified across both
commercial and consumer businesses. Capital levels increased even as we
returned more capital to shareholders through higher dividends and share
repurchases from a year ago. We continue to see signs of a steadily
improving economy, and I remain optimistic about the opportunities ahead
for Wells Fargo. Our team remains committed to meeting the financial
needs of our customers, and this focus will continue to drive our
performance over the long term.”
Chief Financial Officer John Shrewsberry said, “This was a strong
quarter for Wells Fargo and again demonstrated the benefits of our
diversified business model. Despite the low interest rate environment,
revenue and pre-tax pre-provision profit increased linked quarter, and
we continued to operate within our target ranges for ROA, ROE,
efficiency ratio, and capital return to shareholders. We also remain
well positioned to benefit from higher rates in the future, and our
balance sheet has never been stronger, with higher levels of capital and
liquidity, and improved asset quality.”
Revenue
Revenue was $21.2 billion, up from $21.1 billion in second quarter 2014,
reflecting an increase of $150 million in net interest income and stable
noninterest income. Revenue sources remained balanced between spread and
fee income and the sources of fee income were diversified among our
consumer, commercial and brokerage businesses.
Net Interest Income
Net interest income in third quarter 2014 increased $150 million on a
linked-quarter basis to $10.9 billion. The increase in net interest
income resulted from balance sheet growth driven by commercial and
consumer loan originations, larger mortgages held for sale balances and
higher interest income from trading assets, as well as higher purchased
credit-impaired accretion. Net interest income also benefited from one
additional business day in the quarter.
Net interest margin was 3.06 percent, down 9 basis points from second
quarter 2014, primarily due to higher cash and short-term investment
balances. Strong customer driven deposit growth, which is essentially
neutral to net interest income, diluted net interest margin by
approximately 4 basis points. Liquidity funding actions also diluted the
margin by 4 basis points, but with minimal impact to net interest
income. The net impact of all other balance sheet growth and repricing
was minimal, causing approximately 1 basis point of dilution.
Noninterest Income
Noninterest income was $10.3 billion, unchanged from the prior quarter.
Higher market sensitive revenue5, as well as higher mortgage
origination gains and brokerage advisory fees were offset by lower
mortgage servicing income and lower investment banking fees. Market
sensitive revenue was $1.1 billion, up $231 million from second quarter,
on increased net gains in debt securities and equity investments. Net
gains from trading activities were down $214 million primarily due to
lower deferred compensation gains (offset in employee benefits expense).
Trust and investment fees were $3.6 billion, down $55 million from the
prior quarter. Increases in retail brokerage asset-based fees and trust
and investment management fees were offset by lower investment banking
fees.
Mortgage banking noninterest income was $1.6 billion, down $90 million
from second quarter 2014. Mortgage origination gains were up largely due
to an increase in the gain on sale margin, but this was more than offset
by a decrease in servicing income, which was driven by lower net
mortgage servicing rights (MSRs) results and an increase in unreimbursed
direct servicing costs. During the third quarter, residential mortgage
originations were $48 billion, up $1 billion linked quarter, while the
gain on sale margin was 1.82 percent, compared with 1.41 percent in
second quarter.
|
5
|
Consists of net gains from trading activities, debt securities and
equity investments.
|
Noninterest Expense
Noninterest expense increased $54 million from the prior quarter to
$12.2 billion. The increase included higher operating losses from
litigation accruals and higher outside professional services costs.
Personnel expense was down modestly linked quarter as lower employee
benefits expense, driven by lower deferred compensation costs (offset in
trading revenue), were largely offset by higher salaries and higher
commission and incentive compensation expense. The efficiency ratio was
57.7 percent in third quarter 2014, an improvement from 57.9 percent in
second quarter 2014. The Company expects to operate within its targeted
efficiency ratio range of 55 to 59 percent in fourth quarter 2014.
Income Taxes
Our effective tax rate was 31.6 percent for third quarter 2014, compared
with 33.4 percent for second quarter 2014. The lower effective tax rate
in third quarter 2014 was due primarily to tax benefits resulting from
charitable donations of appreciated securities.
Loans
Total loans were $838.9 billion at September 30, 2014, up $9.9 billion
from June 30, 2014, driven by growth in commercial and industrial, real
estate construction, 1-4 family first mortgage, credit card, automobile,
and other revolving credit and installment loans. Core loan growth was
$12.2 billion, as non-strategic/liquidating portfolios declined $2.3
billion in the quarter.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
June 30, 2014
|
|
|
|
|
|
Non-strategic
|
|
|
|
|
|
|
|
Non-strategic
|
|
|
|
|
|
(in millions)
|
|
Core
|
|
and liquidating
|
|
(1)
|
|
Total
|
|
Core
|
|
and liquidating
|
|
|
|
Total
|
|
Commercial
|
|
$
|
395,018
|
|
1,465
|
|
|
|
396,483
|
|
389,905
|
|
1,499
|
|
|
|
391,404
|
|
Consumer
|
|
|
380,773
|
|
61,627
|
|
|
|
442,400
|
|
373,693
|
|
63,845
|
|
|
|
437,538
|
|
Total loans
|
|
$
|
775,791
|
|
63,092
|
|
|
|
838,883
|
|
763,598
|
|
65,344
|
|
|
|
828,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from prior quarter:
|
|
$
|
12,193
|
|
(2,252
|
)
|
|
|
9,941
|
|
15,149
|
|
(12,650
|
)
|
(2)
|
|
2,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
(2) The change from prior quarter was predominantly due
to the transfer to loans held for sale of $9.7 billion of
government guaranteed student loans, which were previously
included in the Company's non-strategic/liquidating loan portfolio.
|
|
|
|
|
Average total loans were $833.2 billion, up $2.2 billion from the prior
quarter and $31.1 billion from a year ago. This growth was reduced by
the transfer to loans held for sale at the end of the second quarter of
$9.7 billion of government guaranteed student loans, which were
previously included in the Company’s non-strategic/liquidating loan
portfolio. Excluding this transfer, average total loans would have been
up $12.0 billion, or 6 percent (annualized), from second quarter.
Portfolios with double-digit year-over-year growth included asset backed
finance, capital finance, commercial banking, commercial real estate,
corporate banking, credit card, dealer services, government and
institutional banking, mortgage core portfolios, personal lines and
loans, retail brokerage, and wealth management.
Investment Securities
Investment securities were $289.0 billion at September 30, 2014, up $9.9
billion from second quarter. Approximately $25 billion of purchases were
partially offset by run-off, mostly within the available-for-sale
portfolio, which declined $710 million from prior quarter.
Held-to-maturity securities were up $10.7 billion, primarily due to an
increase in U.S. Treasury and federal agency debt.
The Company had net unrealized available-for-sale securities gains of
$6.6 billion at September 30, 2014, down from $8.2 billion at June 30,
2014, primarily due to an increase in interest rates and realized
securities gains.
Deposits
Total average deposits for third quarter 2014 were $1.1 trillion, up 10
percent from a year ago and up 9 percent (annualized) from second
quarter 2014, driven by both commercial and consumer growth. The average
deposit cost for third quarter 2014 was 10 basis points, unchanged from
prior quarter, but an improvement of 2 basis points from a year ago.
Average core deposits were $1.0 trillion, up 8 percent from a year ago
and up 8 percent (annualized) from second quarter 2014. Average mortgage
escrow deposits were $30.7 billion, compared with $34.7 billion a year
ago and $27.2 billion in second quarter 2014.
Capital
Capital levels continued to be strong in the third quarter, with Common
Equity Tier 1 of $136.5 billion under Basel III (General Approach), or
11.16 percent of risk-weighted assets. The Common Equity Tier 1 ratio
under Basel III (Advanced Approach, fully phased-in) was 10.46 percent4.
In third quarter 2014, the Company purchased 48.7 million shares of its
common stock and an additional estimated 19.8 million shares through a
forward repurchase transaction expected to settle in fourth quarter
2014. The Company also paid a quarterly common stock dividend of
$0.35 per share, up from $0.30 per share a year ago.
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Sept. 30,
|
|
|
2014 (1)
|
|
2014
|
|
2013
|
|
Common Equity Tier 1 (2)
|
11.16
|
%
|
11.31
|
|
10.60
|
|
Tier 1 capital
|
12.60
|
|
12.72
|
|
12.11
|
|
Tier 1 leverage
|
9.68
|
|
9.86
|
|
9.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) September 30, 2014, ratios are preliminary.
|
|
(2) See FIVE QUARTER RISK-BASED CAPITAL COMPONENTS and
COMMON EQUITY TIER 1 UNDER BASEL III tables for more information
on Common Equity Tier 1.
|
|
|
Credit Quality
“Credit quality continued to trend positively in the third quarter as
loan losses remained at historic lows, nonperforming assets continued to
decrease, delinquency rates were stable, and we continued to originate
high quality loans,” said Chief Risk Officer Mike Loughlin. “Credit
losses were $668 million in third quarter 2014, compared with
$975 million in third quarter 2013, a 31 percent improvement. The
quarterly loss rate (annualized) was 0.32 percent with commercial
recoveries of 0.02 percent and consumer losses of 0.62 percent.
Nonperforming assets declined by $406 million, or 9 percent
(annualized), from last quarter. We released $300 million from the
allowance for credit losses in the third quarter, reflecting further
credit quality improvement. We continue to expect future reserve
releases absent a significant deterioration in the economic environment,
but expect a lower level of future releases as the rate of credit
improvement slows and the loan portfolio continues to grow.”
Net Loan Charge-offs
Net loan charge-offs improved to $668 million in third quarter 2014, or
0.32 percent (annualized) of average loans, compared with $717 million
in second quarter 2014, or 0.35 percent (annualized) of average loans.
|
Net Loan Charge-Offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Sept. 30, 2014
|
|
|
June 30, 2014
|
|
|
Mar. 31, 2014
|
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
As a
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
Net loan
|
|
% of
|
|
|
Net loan
|
|
% of
|
|
|
Net loan
|
|
% of
|
|
|
|
|
|
|
|
charge-
|
|
average
|
|
|
charge-
|
|
average
|
|
|
charge-
|
|
average
|
|
|
($ in millions)
|
|
|
offs
|
|
loans (1)
|
|
|
offs
|
|
loans (1)
|
|
|
offs
|
|
loans (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
65
|
|
|
0.12
|
|
%
|
|
$
|
54
|
|
|
0.11
|
|
%
|
|
$
|
45
|
|
|
0.09
|
|
%
|
|
|
Real estate mortgage
|
|
|
|
(37
|
)
|
|
(0.14
|
)
|
|
|
|
(10
|
)
|
|
(0.04
|
)
|
|
|
|
(22
|
)
|
|
(0.08
|
)
|
|
|
|
Real estate construction
|
|
|
|
(58
|
)
|
|
(1.29
|
)
|
|
|
|
(20
|
)
|
|
(0.47
|
)
|
|
|
|
(23
|
)
|
|
(0.55
|
)
|
|
|
|
Lease financing
|
|
|
|
4
|
|
|
0.10
|
|
|
|
|
1
|
|
|
0.05
|
|
|
|
|
1
|
|
|
0.03
|
|
|
|
|
Foreign
|
|
|
|
2
|
|
|
0.02
|
|
|
|
|
6
|
|
|
0.05
|
|
|
|
|
4
|
|
|
0.03
|
|
|
|
Total commercial
|
|
|
|
(24
|
)
|
|
(0.02
|
)
|
|
|
|
31
|
|
|
0.03
|
|
|
|
|
5
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
114
|
|
|
0.17
|
|
|
|
|
137
|
|
|
0.21
|
|
|
|
|
170
|
|
|
0.27
|
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
140
|
|
|
0.90
|
|
|
|
|
160
|
|
|
1.02
|
|
|
|
|
192
|
|
|
1.20
|
|
|
|
|
Credit card
|
|
|
|
201
|
|
|
2.87
|
|
|
|
|
211
|
|
|
3.20
|
|
|
|
|
231
|
|
|
3.57
|
|
|
|
|
Automobile
|
|
|
|
112
|
|
|
0.81
|
|
|
|
|
46
|
|
|
0.35
|
|
|
|
|
90
|
|
|
0.70
|
|
|
|
|
Other revolving credit and installment
|
|
|
|
125
|
|
|
1.46
|
|
|
|
|
132
|
|
|
1.22
|
|
|
|
|
137
|
|
|
1.29
|
|
|
|
Total consumer
|
|
|
|
692
|
|
|
0.62
|
|
|
|
|
686
|
|
|
0.62
|
|
|
|
|
820
|
|
|
0.75
|
|
|
|
|
|
Total
|
|
|
$
|
668
|
|
|
0.32
|
|
%
|
|
$
|
717
|
|
|
0.35
|
|
%
|
|
$
|
825
|
|
|
0.41
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $406 million from second quarter to
$17.7 billion. Nonaccrual loans decreased $607 million to $13.4 billion.
Foreclosed assets were $4.3 billion, up from $4.1 billion in second
quarter 2014 on higher government insured/guaranteed balances.
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
|
|
|
|
Sept. 30, 2014
|
|
|
June 30, 2014
|
|
|
Mar. 31, 2014
|
|
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
As a
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
|
Total
|
|
total
|
|
|
Total
|
|
total
|
|
|
Total
|
|
total
|
|
|
($ in millions)
|
|
|
balances
|
|
loans
|
|
|
balances
|
|
loans
|
|
|
balances
|
|
loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
586
|
|
|
0.28
|
%
|
|
$
|
693
|
|
|
0.34
|
%
|
|
$
|
630
|
|
|
0.32
|
%
|
|
|
Real estate mortgage
|
|
|
|
1,636
|
|
|
1.53
|
|
|
|
1,802
|
|
|
1.66
|
|
|
|
2,030
|
|
|
1.88
|
|
|
|
Real estate construction
|
|
|
|
217
|
|
|
1.21
|
|
|
|
239
|
|
|
1.40
|
|
|
|
296
|
|
|
1.78
|
|
|
|
Lease financing
|
|
|
|
25
|
|
|
0.21
|
|
|
|
28
|
|
|
0.24
|
|
|
|
31
|
|
|
0.26
|
|
|
|
Foreign
|
|
|
|
31
|
|
|
0.07
|
|
|
|
36
|
|
|
0.08
|
|
|
|
40
|
|
|
0.08
|
|
|
Total commercial
|
|
|
|
2,495
|
|
|
0.63
|
|
|
|
2,798
|
|
|
0.71
|
|
|
|
3,027
|
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
first mortgage
|
|
|
|
8,784
|
|
|
3.34
|
|
|
|
9,026
|
|
|
3.47
|
|
|
|
9,357
|
|
|
3.61
|
|
|
|
Real estate 1-4 family
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
junior lien mortgage
|
|
|
|
1,903
|
|
|
3.13
|
|
|
|
1,964
|
|
|
3.14
|
|
|
|
2,072
|
|
|
3.24
|
|
|
|
Automobile
|
|
|
|
143
|
|
|
0.26
|
|
|
|
150
|
|
|
0.28
|
|
|
|
161
|
|
|
0.31
|
|
|
|
Other revolving credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and installment
|
|
|
|
40
|
|
|
0.12
|
|
|
|
34
|
|
|
0.10
|
|
|
|
33
|
|
|
0.08
|
|
|
Total consumer
|
|
|
|
10,870
|
|
|
2.46
|
|
|
|
11,174
|
|
|
2.55
|
|
|
|
11,623
|
|
|
2.61
|
|
|
|
|
Total nonaccrual loans
|
|
|
|
13,365
|
|
|
1.59
|
|
|
|
13,972
|
|
|
1.69
|
|
|
|
14,650
|
|
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
|
2,617
|
|
|
|
|
|
|
2,359
|
|
|
|
|
|
|
2,302
|
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
|
1,691
|
|
|
|
|
|
|
1,748
|
|
|
|
|
|
|
1,813
|
|
|
|
|
|
|
|
Total foreclosed assets
|
|
|
|
4,308
|
|
|
|
|
|
|
4,107
|
|
|
|
|
|
|
4,115
|
|
|
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
17,673
|
|
|
2.11
|
%
|
|
$
|
18,079
|
|
|
2.18
|
%
|
|
$
|
18,765
|
|
|
2.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(607
|
)
|
|
|
|
|
$
|
(678
|
)
|
|
|
|
|
$
|
(1,018
|
)
|
|
|
|
|
|
Total nonperforming assets
|
|
|
|
(406
|
)
|
|
|
|
|
|
(686
|
)
|
|
|
|
|
|
(840
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $946 million at September 30, 2014, compared
with $897 million at June 30, 2014. 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
$17.4 billion at September 30, 2014, down from $17.7 billion at June 30,
2014.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $13.5 billion at September 30, 2014, down from
$13.8 billion at June 30, 2014. The allowance coverage to total loans
was 1.61 percent, compared with 1.67 percent in second quarter 2014. The
allowance covered 5.1 times annualized third quarter net charge-offs,
compared with 4.8 times in the prior quarter. The allowance coverage to
nonaccrual loans was 101 percent at September 30, 2014, compared with 99
percent at June 30, 2014. “We believe the allowance was appropriate for
losses inherent in the loan portfolio at September 30, 2014,” 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
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Sept. 30,
|
|
(in millions)
|
2014
|
|
2014
|
|
2013
|
|
Community Banking
|
$
|
3,470
|
|
3,431
|
|
3,341
|
|
Wholesale Banking
|
|
1,920
|
|
1,952
|
|
1,973
|
|
Wealth, Brokerage and Retirement
|
|
550
|
|
544
|
|
450
|
|
|
|
|
|
|
|
More financial information about the business segments is in the
OPERATING SEGMENT RESULTS and FIVE QUARTER OPERATING SEGMENT RESULTS
tables.
Community Banking offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and auto, student, and small business lending.
Community Banking also offers 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
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Sept. 30,
|
|
(in millions)
|
|
2014
|
|
2014
|
|
2013
|
|
Total revenue
|
|
$
|
12,828
|
|
12,606
|
|
12,244
|
|
Provision for credit losses
|
|
|
465
|
|
279
|
|
240
|
|
Noninterest expense
|
|
|
7,051
|
|
7,020
|
|
7,060
|
|
Segment net income
|
|
|
3,470
|
|
3,431
|
|
3,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
Average loans
|
|
|
498.6
|
|
505.4
|
|
497.7
|
|
Average assets
|
|
|
950.2
|
|
918.1
|
|
836.6
|
|
Average core deposits
|
|
|
646.9
|
|
639.8
|
|
618.2
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.5 billion, up $39 million,
or 1 percent, from second quarter 2014. Revenue of $12.8 billion
increased $222 million, or 2 percent, from the prior quarter primarily
due to higher net interest income, trust and investment fees, debit and
credit card fees, and market sensitive revenue, mainly gains on sale of
debt securities and equity investments, which were partially offset by
lower mortgage banking revenue and lower gains on deferred compensation
plan investments (offset in employee benefits expense). Noninterest
expense rose slightly from the prior quarter due to higher operating
losses, foreclosed assets expense, and project spending, partially
offset by lower deferred compensation plan expense (offset in trading
revenue). The provision for credit losses increased $186 million from
the prior quarter primarily due to a lower reserve release.
Net income was up $129 million, or 4 percent, from third quarter 2013.
Revenue increased $584 million, or 5 percent, from a year ago primarily
due to higher net interest income, trust and investment fees, card fees,
and market sensitive revenue, mainly gains on sale of debt securities
and equity investments, partially offset by lower gains on deferred
compensation plan investments (offset in employee benefits expense).
Noninterest expense declined slightly from a year ago driven by lower
mortgage volume-related expenses, and deferred compensation plan
expense, partially offset by higher operating losses. The provision for
credit losses increased $225 million from a year ago as the $290 million
improvement in net charge-offs was more than offset by a lower reserve
release.
Regional Banking
-
Retail banking
-
Primary consumer checking customers6 up a net 4.9
percent year-over-year7
-
Retail Bank household cross-sell ratio of 6.15 products per
household, unchanged year-over-year7
-
Small Business/Business Banking
-
Primary business checking customers6 up a net 5.6
percent year-over-year7
-
Combined Business Direct credit card, lines of credit and loan
product solutions (primarily under $100,000 sold through our
retail banking stores) were up 27 percent from the prior year
-
For the 12th consecutive year, America’s #1 small business lender
(in both loans under $100,000 and under $1 million) and #1 lender
to small businesses in low- and moderate-income areas (2013 CRA
data, released August 2014)
-
Online and Mobile Banking
-
24.4 million active online customers, up 7 percent year-over-year7
-
13.7 million active mobile customers, up 19 percent year-over-year7
-
#1 ranking in Keynote Mobile Banking Scorecard; best in “Ease of
Use” and “Quality & Availability” (September 2014)
Consumer Lending Group
-
Home Lending
-
Originations of $48 billion, up from $47 billion in prior quarter
-
Applications of $64 billion, down from $72 billion in prior quarter
-
Application pipeline of $25 billion at quarter end, down from $30
billion at June 30, 2014
-
Residential mortgage servicing portfolio of $1.8 trillion; ratio
of MSRs to related loans serviced for others was 82 basis points,
compared with 80 basis points in prior quarter
-
Average note rate on the servicing portfolio was 4.47 percent,
compared with 4.49 percent in prior quarter
-
Consumer Credit
-
Credit card penetration in retail banking households rose to 39.7
percent7, up from 36.0 percent in prior year
-
Auto originations of $7.6 billion, up 9 percent from prior year
|
6
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
|
7
|
|
Data as of August 2014, comparisons with August 2013.
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
|
Sept. 30,
|
|
|
(in millions)
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
Total revenue
|
|
$
|
5,902
|
|
|
5,946
|
|
|
5,871
|
|
|
Reversal of provision for credit losses
|
|
|
(85
|
)
|
|
(49
|
)
|
|
(144
|
)
|
|
Noninterest expense
|
|
|
3,250
|
|
|
3,203
|
|
|
3,084
|
|
|
Segment net income
|
|
|
1,920
|
|
|
1,952
|
|
|
1,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
316.5
|
|
|
308.1
|
|
|
287.7
|
|
|
Average assets
|
|
|
553.0
|
|
|
532.4
|
|
|
498.1
|
|
|
Average core deposits
|
|
|
278.4
|
|
|
265.8
|
|
|
235.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $1.9 billion, down $32 million,
or 2 percent, from second quarter 2014. Revenue of $5.9 billion
decreased $44 million, or 1 percent, from prior quarter. Net interest
income increased $54 million, or 2 percent, due to higher loan balances.
Noninterest income decreased $98 million, or 3 percent, driven by the
second quarter gain on the divestiture of 40 insurance offices as well
as lower investment banking fees, trading revenue, and crop insurance
fees (seasonal). Noninterest expense increased $47 million, or 1
percent, linked quarter as higher personnel costs were partially offset
by seasonally lower insurance commissions. The provision for credit
losses decreased $36 million from prior quarter due to an increase in
net recoveries.
Net income was down $53 million, or 3 percent, from third quarter 2013.
Revenue increased $31 million, or 1 percent, from third quarter 2013 on
strong loan and deposit growth, strong treasury management fee growth
and higher asset backed finance underwriting, commercial real estate
brokerage and foreign exchange fees. Noninterest expense increased $166
million, or 5 percent, from a year ago primarily due to expenses related
to growth initiatives, compliance, and regulatory requirements. The
provision for credit losses increased $59 million from a year ago
primarily due to a $62 million lower reserve release.
-
Average loans increased 10 percent in third quarter 2014, compared
with third quarter 2013, on broad-based growth, including asset-backed
finance, capital finance, commercial banking, commercial real estate,
corporate banking, equipment finance, government and institutional
banking, international, and real estate capital markets
-
Cross-sell of 7.2 products per relationship, up from 7.0 in third
quarter 2013 driven by new product sales to existing customers
-
Treasury management revenue up 9 percent from third quarter 2013
-
Assets under management of $484 billion, up $9 billion from third
quarter 2013, including an $11 billion increase in equity assets under
management reflecting increased market valuations and net inflows
Wealth, Brokerage and Retirement provides
a full range of financial advisory services to clients using a planning
approach to meet each client's financial 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 fiduciary services. Abbot
Downing, a Wells Fargo business, provides comprehensive wealth
management services to ultra high net worth families and individuals as
well as 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
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Sept. 30,
|
|
|
(in millions)
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
Total revenue
|
|
$
|
3,553
|
|
|
3,550
|
|
|
3,307
|
|
|
Reversal of provision for credit losses
|
|
|
(25
|
)
|
|
(25
|
)
|
|
(38
|
)
|
|
Noninterest expense
|
|
|
2,690
|
|
|
2,695
|
|
|
2,619
|
|
|
Segment net income
|
|
|
550
|
|
|
544
|
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
52.6
|
|
|
51.0
|
|
|
46.7
|
|
|
Average assets
|
|
|
188.8
|
|
|
187.6
|
|
|
180.8
|
|
|
Average core deposits
|
|
|
153.6
|
|
|
153.0
|
|
|
150.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth, Brokerage and Retirement (WBR) reported net income of $550
million, up $6 million, or 1 percent, from second quarter 2014. Revenue
of $3.6 billion increased $3 million from the prior quarter as increased
asset-based fees and net interest income were partially offset by lower
gains on deferred compensation plan investments (offset in compensation
expense) and decreased brokerage transaction revenue. Noninterest
expense decreased $5 million from the prior quarter driven by lower
deferred compensation plan expense (offset in trading revenue), largely
offset by increased broker commissions and non-personnel expenses.
Net income was up $100 million, or 22 percent, from third quarter 2013.
Revenue increased $246 million, or 7 percent, from a year ago as strong
growth in asset-based fees and higher net interest income was partially
offset by lower gains on deferred compensation plan investments.
Noninterest expense increased $71 million, or 3 percent, from a year ago
primarily due to increased broker commissions and other expenses, which
were partially offset by lower deferred compensation plan expense. The
provision for credit losses increased $13 million from a year ago as
lower reserve releases more than offset lower net charge-offs. The
provision in third quarter 2014 included a $15 million reserve release,
compared with $38 million a year ago.
Retail Brokerage
-
Client assets of $1.4 trillion, up 8 percent from prior year
-
Managed account assets of $409 billion, increased $59 billion, or 17
percent, from prior year, reflecting increased market valuations and
net flows
-
Strong loan growth, with average balances up 19 percent from prior
year on growth in first mortgage and security-based lending
Wealth Management
-
Client assets of $219 billion, up 7 percent from prior year
-
Strong loan growth, with average balances up 10 percent over prior year
Retirement
-
IRA assets of $354 billion, up 8 percent from prior year
-
Institutional Retirement plan assets of $314 billion, up 6 percent
from prior year
WBR cross-sell ratio of 10.44 products per
household, up from 10.41 a year ago
Conference Call
The Company will host a live conference call on Tuesday, October 14, at
7 a.m. PDT (10 a.m. EDT). You may participate by dialing 866-872-5161
(U.S. and Canada) or 706-643-1962 (International). The call will also be
available online at wellsfargo.com/invest_relations/earnings
and at https://engage.vevent.com/rt/wells_fargo_ao~101414.
A replay of the conference call will be available beginning at 10 a.m.
PDT (1 p.m. EDT) on October 14 through Tuesday, October 21. Please dial
855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter
Conference ID #83804752. The replay will also be available online at wellsfargo.com/invest_relations/earnings
and at https://engage.vevent.com/rt/wells_fargo_ao~101414.
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,”
“could,” “should,” “can” and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance releases; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital levels
and our estimated Common Equity Tier 1 ratio under Basel III capital
standards; (viii) the performance of our mortgage business and any
related exposures; (ix) the expected outcome and impact of legal,
regulatory and legislative developments, as well as our expectations
regarding compliance therewith; (x) future common stock dividends,
common share repurchases and other uses of capital; (xi) our targeted
range for return on assets and return on equity; (xii) the outcome of
contingencies, such as legal proceedings; and (xiii) the Company’s
plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead
represent our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance that any
list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the following, without
limitation:
-
current and future economic and market conditions, including the
effects of declines in housing prices, high unemployment rates, U.S.
fiscal debt, budget and tax matters, and the overall slowdown in
global economic growth;
-
our capital and liquidity requirements (including under regulatory
capital standards, such as the Basel III capital standards) 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 Act and other
legislation and regulation relating to bank products and services;
-
the extent of our success in our loan modification efforts, as well as
the effects of regulatory requirements or guidance regarding 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, and
the credit quality of or losses on such repurchased mortgage loans;
-
negative effects relating to our mortgage servicing and foreclosure
practices, including our obligations under the settlement with the
Department of Justice and other federal and state government entities,
as well as changes in 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, 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;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
a recurrence of significant turbulence or disruption in the capital or
financial markets, which could result in, among other things, reduced
investor demand for mortgage loans, a reduction in the availability of
funding or increased funding costs, and declines in asset values
and/or recognition of other-than-temporary impairment on securities
held in our investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended December
31, 2013.
In addition to the above factors, we also caution that 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, 2013, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified,
community-based financial services company with $1.6 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 8,700 locations, 12,500 ATMs, and the internet
(wellsfargo.com), and has offices in 36 countries to support customers
who conduct business in the global economy. With approximately 265,000
team members, Wells Fargo serves one in three households in the United
States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014
rankings of America’s largest corporations. Wells Fargo’s vision is to
satisfy all our customers’ financial needs and help them succeed
financially.
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Wells Fargo & Company and Subsidiaries
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QUARTERLY FINANCIAL DATA
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TABLE OF CONTENTS
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Pages
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Summary Information
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Summary Financial Data
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17-18
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Income
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Consolidated Statement of Income
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19-20
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Consolidated Statement of Comprehensive Income
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21
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Condensed Consolidated Statement of Changes in Total Equity
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21
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Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
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22-23
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Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
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24
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Noninterest Income and Noninterest Expense
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25-26
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Balance Sheet
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Consolidated Balance Sheet
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27-28
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Investment Securities
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29
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Loans
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Loans
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29
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Nonperforming Assets
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30
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Loans 90 Days or More Past Due and Still Accruing
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31
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Purchased Credit-Impaired Loans
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32-34
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Pick-A-Pay Portfolio
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35
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Non-Strategic and Liquidating Loan Portfolios
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35
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Changes in Allowance for Credit Losses
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36-37
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Equity
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Five Quarter Risk-Based Capital Components
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38
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Common Equity Tier 1 Under Basel III
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38
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Operating Segments
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Operating Segment Results
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39-40
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Other
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Mortgage Servicing and other related data
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41-43
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Wells Fargo & Company and Subsidiaries
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SUMMARY FINANCIAL DATA
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% Change
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Quarter ended
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Sept. 30, 2014 from
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Nine months ended
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Sept. 30,
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June 30,
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Sept. 30,
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June 30,
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Sept. 30,
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Sept. 30,
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Sept. 30,
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%
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($ in millions, except per share amounts)
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2014
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2014
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2013
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2014
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2013
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2014
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2013
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Change
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For the Period
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Wells Fargo net income
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$
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5,729
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5,726
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5,578
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-
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%
|
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3
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$
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17,348
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16,268
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7
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%
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Wells Fargo net income
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applicable to common stock
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5,408
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5,424
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5,317
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-
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2
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16,439
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15,520
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6
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Diluted earnings per common share
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1.02
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1.01
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0.99
|
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1
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3
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3.08
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2.89
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7
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|
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Profitability ratios (annualized):
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Wells Fargo net income
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to average assets (ROA) (1)
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1.40
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%
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1.47
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1.53
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(5
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)
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(8
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)
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1.48
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1.53
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(3
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)
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Wells Fargo net income applicable to
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common stock to average Wells Fargo
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common stockholders' equity (ROE)
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13.10
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13.40
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14.07
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(2
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)
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(7
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)
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13.60
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13.92
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(2
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)
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Efficiency ratio (2)
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57.7
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57.9
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59.1
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-
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(2
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)
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57.9
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58.2
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(1
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)
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Total revenue
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$
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21,213
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|
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21,066
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20,478
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1
|
|
|
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4
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$
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62,904
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63,115
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-
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Pre-tax pre-provision profit (PTPP) (3)
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8,965
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8,872
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8,376
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1
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7
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|
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26,514
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26,358
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1
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Dividends declared per common share
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0.35
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0.35
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0.30
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-
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17
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1.00
|
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0.85
|
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18
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|
|
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Average common shares outstanding
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5,225.9
|
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5,268.4
|
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5,295.3
|
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(1
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)
|
|
|
(1
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)
|
|
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5,252.2
|
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5,293.0
|
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(1
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)
|
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Diluted average common shares outstanding
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|
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5,310.4
|
|
|
5,350.8
|
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5,381.7
|
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(1
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)
|
|
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(1
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)
|
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5,339.2
|
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5,374.7
|
|
(1
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)
|
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Average loans (1)
|
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$
|
833,199
|
|
|
831,043
|
|
802,134
|
|
-
|
|
|
|
4
|
|
|
$
|
829,378
|
|
799,080
|
|
4
|
|
|
|
Average assets (1)
|
|
|
1,617,942
|
|
|
1,564,003
|
|
1,446,965
|
|
3
|
|
|
|
12
|
|
|
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1,569,621
|
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1,425,836
|
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10
|
|
|
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Average core deposits (4)
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1,012,219
|
|
|
991,727
|
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940,279
|
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2
|
|
|
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8
|
|
|
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992,723
|
|
934,131
|
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6
|
|
|
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Average retail core deposits (5)
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703,062
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|
|
698,763
|
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670,335
|
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1
|
|
|
|
5
|
|
|
|
697,535
|
|
666,393
|
|
5
|
|
|
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Net interest margin (1)
|
|
|
3.06
|
%
|
|
3.15
|
|
3.39
|
|
(3
|
)
|
|
|
(10
|
)
|
|
|
3.13
|
|
3.45
|
|
(9
|
)
|
|
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At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Investment securities
|
|
$
|
289,009
|
|
|
279,069
|
|
259,399
|
|
4
|
|
|
|
11
|
|
|
$
|
289,009
|
|
259,399
|
|
11
|
|
|
|
Loans (1)
|
|
|
838,883
|
|
|
828,942
|
|
809,135
|
|
1
|
|
|
|
4
|
|
|
|
838,883
|
|
809,135
|
|
4
|
|
|
|
Allowance for loan losses
|
|
|
12,681
|
|
|
13,101
|
|
15,159
|
|
(3
|
)
|
|
|
(16
|
)
|
|
|
12,681
|
|
15,159
|
|
(16
|
)
|
|
|
Goodwill
|
|
|
25,705
|
|
|
25,705
|
|
25,637
|
|
-
|
|
|
|
-
|
|
|
|
25,705
|
|
25,637
|
|
-
|
|
|
|
Assets (1)
|
|
|
1,636,855
|
|
|
1,598,874
|
|
1,484,865
|
|
2
|
|
|
|
10
|
|
|
|
1,636,855
|
|
1,484,865
|
|
10
|
|
|
|
Core deposits (4)
|
|
|
1,016,478
|
|
|
1,007,485
|
|
947,805
|
|
1
|
|
|
|
7
|
|
|
|
1,016,478
|
|
947,805
|
|
7
|
|
|
|
Wells Fargo stockholders' equity
|
|
|
182,481
|
|
|
180,859
|
|
167,165
|
|
1
|
|
|
|
9
|
|
|
|
182,481
|
|
167,165
|
|
9
|
|
|
|
Total equity
|
|
|
182,990
|
|
|
181,549
|
|
168,813
|
|
1
|
|
|
|
8
|
|
|
|
182,990
|
|
168,813
|
|
8
|
|
|
|
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets (1)
|
|
|
11.18
|
%
|
|
11.35
|
|
11.37
|
|
(2
|
)
|
|
|
(2
|
)
|
|
|
11.18
|
|
11.37
|
|
(2
|
)
|
|
|
|
Risk-based capital (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
|
|
|
12.60
|
|
|
12.72
|
|
12.11
|
|
(1
|
)
|
|
|
4
|
|
|
|
12.60
|
|
12.11
|
|
4
|
|
|
|
|
|
Total capital
|
|
|
15.63
|
|
|
15.89
|
|
15.09
|
|
(2
|
)
|
|
|
4
|
|
|
|
15.63
|
|
15.09
|
|
4
|
|
|
|
|
Tier 1 leverage (6)
|
|
|
9.68
|
|
|
9.86
|
|
9.76
|
|
(2
|
)
|
|
|
(1
|
)
|
|
|
9.68
|
|
9.76
|
|
(1
|
)
|
|
|
|
Common Equity Tier 1 (6)(7)
|
|
|
11.16
|
|
|
11.31
|
|
10.60
|
|
(1
|
)
|
|
|
5
|
|
|
|
11.16
|
|
10.60
|
|
5
|
|
|
|
Common shares outstanding
|
|
|
5,215.0
|
|
|
5,249.9
|
|
5,273.7
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
5,215.0
|
|
5,273.7
|
|
(1
|
)
|
|
|
Book value per common share
|
|
$
|
31.55
|
|
|
31.18
|
|
28.98
|
|
1
|
|
|
|
9
|
|
|
$
|
31.55
|
|
28.98
|
|
9
|
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
53.80
|
|
|
53.05
|
|
44.79
|
|
1
|
|
|
|
20
|
|
|
|
53.80
|
|
44.79
|
|
20
|
|
|
|
|
Low
|
|
|
49.47
|
|
|
46.72
|
|
40.79
|
|
6
|
|
|
|
21
|
|
|
|
44.17
|
|
34.43
|
|
28
|
|
|
|
|
Period end
|
|
|
51.87
|
|
|
52.56
|
|
41.32
|
|
(1
|
)
|
|
|
26
|
|
|
|
51.87
|
|
41.32
|
|
26
|
|
|
|
Team members (active, full-time equivalent)
|
|
|
263,900
|
|
|
263,500
|
|
270,600
|
|
-
|
|
|
|
(2
|
)
|
|
|
263,900
|
|
270,600
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Financial information for certain periods prior to 2014 was revised
to reflect our determination that certain factoring arrangements did
not qualify as loans. Accordingly, we revised our commercial loan
balances for year-end 2012 and each of the quarters in 2013 in order
to present the Company’s lending trends on a comparable basis over
this period. This revision, which resulted in a reduction to total
commercial loans and a corresponding decrease to other liabilities,
did not impact the Company’s consolidated net income or total cash
flows. We reduced our commercial loans by $3.5 billion, $3.2
billion, $2.1 billion, $1.6 billion, and $1.2 billion at December
31, September 30, June 30, and March 31, 2013, and December 31,
2012, respectively, which represented less than 1% of total
commercial loans and less than 0.5% of our total loan portfolio.
Other affected financial information, including financial guarantees
and financial ratios, has been appropriately revised to reflect this
revision.
|
|
|
(2)
|
The efficiency ratio is noninterest expense divided by total revenue
(net interest income and noninterest income).
|
|
|
(3)
|
Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to assess
the Company's ability to generate capital to cover credit losses
through a credit cycle.
|
|
|
(4)
|
Core deposits are noninterest-bearing deposits, interest-bearing
checking, savings certificates, certain market rate and other
savings, and certain foreign deposits (Eurodollar sweep balances).
|
|
|
(5)
|
Retail core deposits are total core deposits excluding Wholesale
Banking core deposits and retail mortgage escrow deposits.
|
|
|
(6)
|
The September 30, 2014, ratios are preliminary.
|
|
|
(7)
|
See the "Five Quarter Risk-Based Capital Components" table for
additional information.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
($ in millions, except per share amounts)
|
|
|
2014
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,729
|
|
|
5,726
|
|
5,893
|
|
5,610
|
|
5,578
|
|
Wells Fargo net income applicable to common stock
|
|
|
5,408
|
|
|
5,424
|
|
5,607
|
|
5,369
|
|
5,317
|
|
Diluted earnings per common share
|
|
|
1.02
|
|
|
1.01
|
|
1.05
|
|
1.00
|
|
0.99
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA) (1)
|
|
|
1.40
|
%
|
|
1.47
|
|
1.57
|
|
1.48
|
|
1.53
|
|
|
Wells Fargo net income applicable to common stock to average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo common stockholders' equity (ROE)
|
|
|
13.10
|
|
|
13.40
|
|
14.35
|
|
13.81
|
|
14.07
|
|
Efficiency ratio (2)
|
|
|
57.7
|
|
|
57.9
|
|
57.9
|
|
58.5
|
|
59.1
|
|
Total revenue
|
|
$
|
21,213
|
|
|
21,066
|
|
20,625
|
|
20,665
|
|
20,478
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
8,965
|
|
|
8,872
|
|
8,677
|
|
8,580
|
|
8,376
|
|
Dividends declared per common share
|
|
|
0.35
|
|
|
0.35
|
|
0.30
|
|
0.30
|
|
0.30
|
|
Average common shares outstanding
|
|
|
5,225.9
|
|
|
5,268.4
|
|
5,262.8
|
|
5,270.3
|
|
5,295.3
|
|
Diluted average common shares outstanding
|
|
|
5,310.4
|
|
|
5,350.8
|
|
5,353.3
|
|
5,358.6
|
|
5,381.7
|
|
Average loans (1)
|
|
$
|
833,199
|
|
|
831,043
|
|
823,790
|
|
813,318
|
|
802,134
|
|
Average assets (1)
|
|
|
1,617,942
|
|
|
1,564,003
|
|
1,525,905
|
|
1,505,766
|
|
1,446,965
|
|
Average core deposits (4)
|
|
|
1,012,219
|
|
|
991,727
|
|
973,801
|
|
965,828
|
|
940,279
|
|
Average retail core deposits (5)
|
|
|
703,062
|
|
|
698,763
|
|
690,643
|
|
679,355
|
|
670,335
|
|
Net interest margin (1)
|
|
|
3.06
|
%
|
|
3.15
|
|
3.20
|
|
3.27
|
|
3.39
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
289,009
|
|
|
279,069
|
|
270,327
|
|
264,353
|
|
259,399
|
|
Loans (1)
|
|
|
838,883
|
|
|
828,942
|
|
826,443
|
|
822,286
|
|
809,135
|
|
Allowance for loan losses
|
|
|
12,681
|
|
|
13,101
|
|
13,695
|
|
14,502
|
|
15,159
|
|
Goodwill
|
|
|
25,705
|
|
|
25,705
|
|
25,637
|
|
25,637
|
|
25,637
|
|
Assets (1)
|
|
|
1,636,855
|
|
|
1,598,874
|
|
1,546,707
|
|
1,523,502
|
|
1,484,865
|
|
Core deposits (4)
|
|
|
1,016,478
|
|
|
1,007,485
|
|
994,185
|
|
980,063
|
|
947,805
|
|
Wells Fargo stockholders' equity
|
|
|
182,481
|
|
|
180,859
|
|
175,654
|
|
170,142
|
|
167,165
|
|
Total equity
|
|
|
182,990
|
|
|
181,549
|
|
176,469
|
|
171,008
|
|
168,813
|
|
Capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to assets (1)
|
|
|
11.18
|
%
|
|
11.35
|
|
11.41
|
|
11.22
|
|
11.37
|
|
|
Risk-based capital (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital
|
|
|
12.60
|
|
|
12.72
|
|
12.63
|
|
12.33
|
|
12.11
|
|
|
|
Total capital
|
|
|
15.63
|
|
|
15.89
|
|
15.71
|
|
15.43
|
|
15.09
|
|
|
Tier 1 leverage (6)
|
|
|
9.68
|
|
|
9.86
|
|
9.84
|
|
9.60
|
|
9.76
|
|
|
Common Equity Tier 1 (6)(7)
|
|
|
11.16
|
|
|
11.31
|
|
11.36
|
|
10.82
|
|
10.60
|
|
Common shares outstanding
|
|
|
5,215.0
|
|
|
5,249.9
|
|
5,265.7
|
|
5,257.2
|
|
5,273.7
|
|
Book value per common share
|
|
$
|
31.55
|
|
|
31.18
|
|
30.48
|
|
29.48
|
|
28.98
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
53.80
|
|
|
53.05
|
|
49.97
|
|
45.64
|
|
44.79
|
|
|
Low
|
|
|
49.47
|
|
|
46.72
|
|
44.17
|
|
40.07
|
|
40.79
|
|
|
Period end
|
|
|
51.87
|
|
|
52.56
|
|
49.74
|
|
45.40
|
|
41.32
|
|
Team members (active, full-time equivalent)
|
|
|
263,900
|
|
|
263,500
|
|
265,300
|
|
264,900
|
|
270,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
(2)
|
The efficiency ratio is noninterest expense divided by total revenue
(net interest income and noninterest income).
|
|
(3)
|
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.
|
|
(4)
|
Core deposits are noninterest-bearing deposits, interest-bearing
checking, savings certificates, certain market rate and other
savings, and certain foreign deposits (Eurodollar sweep balances).
|
|
(5)
|
Retail core deposits are total core deposits excluding Wholesale
Banking core deposits and retail mortgage escrow deposits.
|
|
(6)
|
The September 30, 2014, ratios are preliminary.
|
|
(7)
|
See the "Five Quarter Risk-Based Capital Components" table for
additional information.
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
|
|
|
|
|
|
|
Quarter ended Sept. 30,
|
|
%
|
|
ended Sept. 30,
|
|
%
|
|
(in millions, except per share amounts)
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
2014
|
|
2013
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
$
|
427
|
|
331
|
|
|
29
|
%
|
|
$
|
1,208
|
|
998
|
|
|
21
|
%
|
|
Investment securities
|
|
|
2,066
|
|
2,038
|
|
|
1
|
|
|
|
6,288
|
|
5,997
|
|
|
5
|
|
|
Mortgages held for sale
|
|
|
215
|
|
320
|
|
|
(33
|
)
|
|
|
580
|
|
1,069
|
|
|
(46
|
)
|
|
Loans held for sale
|
|
|
50
|
|
3
|
|
|
NM
|
|
|
|
53
|
|
10
|
|
|
430
|
|
|
Loans
|
|
|
8,963
|
|
8,901
|
|
|
1
|
|
|
|
26,561
|
|
26,664
|
|
|
-
|
|
|
Other interest income
|
|
|
243
|
|
183
|
|
|
33
|
|
|
|
679
|
|
515
|
|
|
32
|
|
|
|
Total interest income
|
|
|
11,964
|
|
11,776
|
|
|
2
|
|
|
|
35,369
|
|
35,253
|
|
|
-
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
273
|
|
318
|
|
|
(14
|
)
|
|
|
827
|
|
1,040
|
|
|
(20
|
)
|
|
Short-term borrowings
|
|
|
15
|
|
9
|
|
|
67
|
|
|
|
41
|
|
46
|
|
|
(11
|
)
|
|
Long-term debt
|
|
|
629
|
|
621
|
|
|
1
|
|
|
|
1,868
|
|
1,950
|
|
|
(4
|
)
|
|
Other interest expense
|
|
|
106
|
|
80
|
|
|
33
|
|
|
|
286
|
|
220
|
|
|
30
|
|
|
|
Total interest expense
|
|
|
1,023
|
|
1,028
|
|
|
-
|
|
|
|
3,022
|
|
3,256
|
|
|
(7
|
)
|
|
Net interest income
|
|
|
10,941
|
|
10,748
|
|
|
2
|
|
|
|
32,347
|
|
31,997
|
|
|
1
|
|
|
Provision for credit losses
|
|
|
368
|
|
75
|
|
|
391
|
|
|
|
910
|
|
1,946
|
|
|
(53
|
)
|
|
Net interest income after provision for credit losses
|
|
|
10,573
|
|
10,673
|
|
|
(1
|
)
|
|
|
31,437
|
|
30,051
|
|
|
5
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,311
|
|
1,278
|
|
|
3
|
|
|
|
3,809
|
|
3,740
|
|
|
2
|
|
|
Trust and investment fees
|
|
|
3,554
|
|
3,276
|
|
|
8
|
|
|
|
10,575
|
|
9,972
|
|
|
6
|
|
|
Card fees
|
|
|
875
|
|
813
|
|
|
8
|
|
|
|
2,506
|
|
2,364
|
|
|
6
|
|
|
Other fees
|
|
|
1,090
|
|
1,098
|
|
|
(1
|
)
|
|
|
3,225
|
|
3,221
|
|
|
-
|
|
|
Mortgage banking
|
|
|
1,633
|
|
1,608
|
|
|
2
|
|
|
|
4,866
|
|
7,204
|
|
|
(32
|
)
|
|
Insurance
|
|
|
388
|
|
413
|
|
|
(6
|
)
|
|
|
1,273
|
|
1,361
|
|
|
(6
|
)
|
|
Net gains from trading activities
|
|
|
168
|
|
397
|
|
|
(58
|
)
|
|
|
982
|
|
1,298
|
|
|
(24
|
)
|
|
Net gains (losses) on debt securities
|
|
|
253
|
|
(6
|
)
|
|
NM
|
|
|
|
407
|
|
(15
|
)
|
|
NM
|
|
|
Net gains from equity investments
|
|
|
712
|
|
502
|
|
|
42
|
|
|
|
2,008
|
|
818
|
|
|
145
|
|
|
Lease income
|
|
|
137
|
|
160
|
|
|
(14
|
)
|
|
|
399
|
|
515
|
|
|
(23
|
)
|
|
Other
|
|
|
151
|
|
191
|
|
|
(21
|
)
|
|
|
507
|
|
640
|
|
|
(21
|
)
|
|
|
Total noninterest income
|
|
|
10,272
|
|
9,730
|
|
|
6
|
|
|
|
30,557
|
|
31,118
|
|
|
(2
|
)
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
3,914
|
|
3,910
|
|
|
-
|
|
|
|
11,437
|
|
11,341
|
|
|
1
|
|
|
Commission and incentive compensation
|
|
|
2,527
|
|
2,401
|
|
|
5
|
|
|
|
7,388
|
|
7,604
|
|
|
(3
|
)
|
|
Employee benefits
|
|
|
931
|
|
1,172
|
|
|
(21
|
)
|
|
|
3,473
|
|
3,873
|
|
|
(10
|
)
|
|
Equipment
|
|
|
457
|
|
471
|
|
|
(3
|
)
|
|
|
1,392
|
|
1,417
|
|
|
(2
|
)
|
|
Net occupancy
|
|
|
731
|
|
728
|
|
|
-
|
|
|
|
2,195
|
|
2,163
|
|
|
1
|
|
|
Core deposit and other intangibles
|
|
|
342
|
|
375
|
|
|
(9
|
)
|
|
|
1,032
|
|
1,129
|
|
|
(9
|
)
|
|
FDIC and other deposit assessments
|
|
|
229
|
|
214
|
|
|
7
|
|
|
|
697
|
|
765
|
|
|
(9
|
)
|
|
Other
|
|
|
3,117
|
|
2,831
|
|
|
10
|
|
|
|
8,776
|
|
8,465
|
|
|
4
|
|
|
|
Total noninterest expense
|
|
|
12,248
|
|
12,102
|
|
|
1
|
|
|
|
36,390
|
|
36,757
|
|
|
(1
|
)
|
|
Income before income tax expense
|
|
|
8,597
|
|
8,301
|
|
|
4
|
|
|
|
25,604
|
|
24,412
|
|
|
5
|
|
|
Income tax expense
|
|
|
2,642
|
|
2,618
|
|
|
1
|
|
|
|
7,788
|
|
7,901
|
|
|
(1
|
)
|
|
Net income before noncontrolling interests
|
|
|
5,955
|
|
5,683
|
|
|
5
|
|
|
|
17,816
|
|
16,511
|
|
|
8
|
|
|
Less: Net income from noncontrolling interests
|
|
|
226
|
|
105
|
|
|
115
|
|
|
|
468
|
|
243
|
|
|
93
|
|
|
Wells Fargo net income
|
|
$
|
5,729
|
|
5,578
|
|
|
3
|
|
|
$
|
17,348
|
|
16,268
|
|
|
7
|
|
|
Less: Preferred stock dividends and other
|
|
|
321
|
|
261
|
|
|
23
|
|
|
|
909
|
|
748
|
|
|
22
|
|
|
Wells Fargo net income applicable to common stock
|
|
$
|
5,408
|
|
5,317
|
|
|
2
|
|
|
$
|
16,439
|
|
15,520
|
|
|
6
|
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
1.04
|
|
1.00
|
|
|
4
|
|
|
$
|
3.13
|
|
2.93
|
|
|
7
|
|
|
Diluted earnings per common share
|
|
|
1.02
|
|
0.99
|
|
|
3
|
|
|
|
3.08
|
|
2.89
|
|
|
7
|
|
|
Dividends declared per common share
|
|
|
0.35
|
|
0.30
|
|
|
17
|
|
|
|
1.00
|
|
0.85
|
|
|
18
|
|
|
Average common shares outstanding
|
|
|
5,225.9
|
|
5,295.3
|
|
|
(1
|
)
|
|
|
5,252.2
|
|
5,293.0
|
|
|
(1
|
)
|
|
Diluted average common shares outstanding
|
|
|
5,310.4
|
|
5,381.7
|
|
|
(1
|
)
|
|
|
5,339.2
|
|
5,374.7
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions, except per share amounts)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
$
|
427
|
|
407
|
|
374
|
|
378
|
|
|
331
|
|
|
Investment securities
|
|
|
2,066
|
|
2,112
|
|
2,110
|
|
2,119
|
|
|
2,038
|
|
|
Mortgages held for sale
|
|
|
215
|
|
195
|
|
170
|
|
221
|
|
|
320
|
|
|
Loans held for sale
|
|
|
50
|
|
1
|
|
2
|
|
3
|
|
|
3
|
|
|
Loans
|
|
|
8,963
|
|
8,852
|
|
8,746
|
|
8,907
|
|
|
8,901
|
|
|
Other interest income
|
|
|
243
|
|
226
|
|
210
|
|
208
|
|
|
183
|
|
|
|
Total interest income
|
|
|
11,964
|
|
11,793
|
|
11,612
|
|
11,836
|
|
|
11,776
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
273
|
|
275
|
|
279
|
|
297
|
|
|
318
|
|
|
Short-term borrowings
|
|
|
15
|
|
14
|
|
12
|
|
14
|
|
|
9
|
|
|
Long-term debt
|
|
|
629
|
|
620
|
|
619
|
|
635
|
|
|
621
|
|
|
Other interest expense
|
|
|
106
|
|
93
|
|
87
|
|
87
|
|
|
80
|
|
|
|
Total interest expense
|
|
|
1,023
|
|
1,002
|
|
997
|
|
1,033
|
|
|
1,028
|
|
|
Net interest income
|
|
|
10,941
|
|
10,791
|
|
10,615
|
|
10,803
|
|
|
10,748
|
|
|
Provision for credit losses
|
|
|
368
|
|
217
|
|
325
|
|
363
|
|
|
75
|
|
|
Net interest income after provision for credit losses
|
|
|
10,573
|
|
10,574
|
|
10,290
|
|
10,440
|
|
|
10,673
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,311
|
|
1,283
|
|
1,215
|
|
1,283
|
|
|
1,278
|
|
|
Trust and investment fees
|
|
|
3,554
|
|
3,609
|
|
3,412
|
|
3,458
|
|
|
3,276
|
|
|
Card fees
|
|
|
875
|
|
847
|
|
784
|
|
827
|
|
|
813
|
|
|
Other fees
|
|
|
1,090
|
|
1,088
|
|
1,047
|
|
1,119
|
|
|
1,098
|
|
|
Mortgage banking
|
|
|
1,633
|
|
1,723
|
|
1,510
|
|
1,570
|
|
|
1,608
|
|
|
Insurance
|
|
|
388
|
|
453
|
|
432
|
|
453
|
|
|
413
|
|
|
Net gains from trading activities
|
|
|
168
|
|
382
|
|
432
|
|
325
|
|
|
397
|
|
|
Net gains (losses) on debt securities
|
|
|
253
|
|
71
|
|
83
|
|
(14
|
)
|
|
(6
|
)
|
|
Net gains from equity investments
|
|
|
712
|
|
449
|
|
847
|
|
654
|
|
|
502
|
|
|
Lease income
|
|
|
137
|
|
129
|
|
133
|
|
148
|
|
|
160
|
|
|
Other
|
|
|
151
|
|
241
|
|
115
|
|
39
|
|
|
191
|
|
|
|
Total noninterest income
|
|
|
10,272
|
|
10,275
|
|
10,010
|
|
9,862
|
|
|
9,730
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
3,914
|
|
3,795
|
|
3,728
|
|
3,811
|
|
|
3,910
|
|
|
Commission and incentive compensation
|
|
|
2,527
|
|
2,445
|
|
2,416
|
|
2,347
|
|
|
2,401
|
|
|
Employee benefits
|
|
|
931
|
|
1,170
|
|
1,372
|
|
1,160
|
|
|
1,172
|
|
|
Equipment
|
|
|
457
|
|
445
|
|
490
|
|
567
|
|
|
471
|
|
|
Net occupancy
|
|
|
731
|
|
722
|
|
742
|
|
732
|
|
|
728
|
|
|
Core deposit and other intangibles
|
|
|
342
|
|
349
|
|
341
|
|
375
|
|
|
375
|
|
|
FDIC and other deposit assessments
|
|
|
229
|
|
225
|
|
243
|
|
196
|
|
|
214
|
|
|
Other
|
|
|
3,117
|
|
3,043
|
|
2,616
|
|
2,897
|
|
|
2,831
|
|
|
|
Total noninterest expense
|
|
|
12,248
|
|
12,194
|
|
11,948
|
|
12,085
|
|
|
12,102
|
|
|
Income before income tax expense
|
|
|
8,597
|
|
8,655
|
|
8,352
|
|
8,217
|
|
|
8,301
|
|
|
Income tax expense
|
|
|
2,642
|
|
2,869
|
|
2,277
|
|
2,504
|
|
|
2,618
|
|
|
Net income before noncontrolling interests
|
|
|
5,955
|
|
5,786
|
|
6,075
|
|
5,713
|
|
|
5,683
|
|
|
Less: Net income from noncontrolling interests
|
|
|
226
|
|
60
|
|
182
|
|
103
|
|
|
105
|
|
|
Wells Fargo net income
|
|
$
|
5,729
|
|
5,726
|
|
5,893
|
|
5,610
|
|
|
5,578
|
|
|
Less: Preferred stock dividends and other
|
|
|
321
|
|
302
|
|
286
|
|
241
|
|
|
261
|
|
|
Wells Fargo net income applicable to common stock
|
|
$
|
5,408
|
|
5,424
|
|
5,607
|
|
5,369
|
|
|
5,317
|
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
1.04
|
|
1.02
|
|
1.07
|
|
1.02
|
|
|
1.00
|
|
|
Diluted earnings per common share
|
|
|
1.02
|
|
1.01
|
|
1.05
|
|
1.00
|
|
|
0.99
|
|
|
Dividends declared per common share
|
|
|
0.35
|
|
0.35
|
|
0.30
|
|
0.30
|
|
|
0.30
|
|
|
Average common shares outstanding
|
|
|
5,225.9
|
|
5,268.4
|
|
5,262.8
|
|
5,270.3
|
|
|
5,295.3
|
|
|
Diluted average common shares outstanding
|
|
|
5,310.4
|
|
5,350.8
|
|
5,353.3
|
|
5,358.6
|
|
|
5,381.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended Sept. 30,
|
%
|
|
|
Nine months ended Sept. 30,
|
%
|
|
(in millions)
|
|
|
2014
|
|
|
2013
|
|
Change
|
|
|
|
2014
|
|
|
2013
|
|
Change
|
|
Wells Fargo net income
|
|
$
|
5,729
|
|
|
5,578
|
|
3
|
%
|
|
|
$
|
17,348
|
|
|
16,268
|
|
7
|
%
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
(944
|
)
|
|
842
|
|
NM
|
|
|
|
|
3,866
|
|
|
(5,922
|
)
|
NM
|
|
|
|
|
Reclassification of net gains to net income
|
|
|
(661
|
)
|
|
(114
|
)
|
480
|
|
|
|
|
(1,205
|
)
|
|
(197
|
)
|
512
|
|
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
(34
|
)
|
|
(7
|
)
|
386
|
|
|
|
|
222
|
|
|
(10
|
)
|
NM
|
|
|
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
(127
|
)
|
|
(69
|
)
|
84
|
|
|
|
|
(348
|
)
|
|
(225
|
)
|
55
|
|
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial gains (losses) arising during the period
|
|
|
-
|
|
|
297
|
|
(100
|
)
|
|
|
|
(12
|
)
|
|
1,075
|
|
NM
|
|
|
|
|
Amortization of net actuarial loss, settlements and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other to net income
|
|
|
18
|
|
|
59
|
|
(69
|
)
|
|
|
|
56
|
|
|
221
|
|
(75
|
)
|
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
(32
|
)
|
|
12
|
|
NM
|
|
|
|
|
(32
|
)
|
|
(27
|
)
|
19
|
|
|
|
|
Reclassification of net (gains) losses to net income
|
|
|
-
|
|
|
3
|
|
(100
|
)
|
|
|
|
6
|
|
|
(12
|
)
|
NM
|
|
|
Other comprehensive income (loss), before tax
|
|
|
(1,780
|
)
|
|
1,023
|
|
NM
|
|
|
|
|
2,553
|
|
|
(5,097
|
)
|
NM
|
|
|
Income tax (expense) benefit related to other comprehensive income
|
|
|
560
|
|
|
(265
|
)
|
NM
|
|
|
|
|
(1,087
|
)
|
|
2,002
|
|
NM
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
(1,220
|
)
|
|
758
|
|
NM
|
|
|
|
|
1,466
|
|
|
(3,095
|
)
|
NM
|
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
(221
|
)
|
|
266
|
|
NM
|
|
|
|
|
(266
|
)
|
|
266
|
|
NM
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
(999
|
)
|
|
492
|
|
NM
|
|
|
|
|
1,732
|
|
|
(3,361
|
)
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo comprehensive income
|
|
|
4,730
|
|
|
6,070
|
|
(22
|
)
|
|
|
|
19,080
|
|
|
12,907
|
|
48
|
|
|
Comprehensive income from noncontrolling interests
|
|
|
5
|
|
|
371
|
|
(99
|
)
|
|
|
|
202
|
|
|
509
|
|
(60
|
)
|
|
Total comprehensive income
|
|
$
|
4,735
|
|
|
6,441
|
|
(26
|
)
|
|
|
$
|
19,282
|
|
|
13,416
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Sept. 30
|
,
|
|
June 30
|
,
|
|
Mar. 31
|
,
|
|
Dec. 31
|
,
|
|
Sept. 30
|
,
|
|
(in millions)
|
|
|
2014
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
Balance, beginning of period
|
|
$
|
181,549
|
|
|
176,469
|
|
|
171,008
|
|
|
168,813
|
|
|
163,777
|
|
|
Wells Fargo net income
|
|
|
5,729
|
|
|
5,726
|
|
|
5,893
|
|
|
5,610
|
|
|
5,578
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
(999
|
)
|
|
1,365
|
|
|
1,366
|
|
|
(903
|
)
|
|
492
|
|
|
Common stock issued
|
|
|
402
|
|
|
579
|
|
|
994
|
|
|
353
|
|
|
581
|
|
|
Common stock repurchased (1)
|
|
|
(2,490
|
)
|
|
(2,954
|
)
|
|
(1,025
|
)
|
|
(1,378
|
)
|
|
(2,042
|
)
|
|
Preferred stock released by ESOP
|
|
|
170
|
|
|
430
|
|
|
305
|
|
|
122
|
|
|
164
|
|
|
Preferred stock issued
|
|
|
780
|
|
|
1,995
|
|
|
-
|
|
|
828
|
|
|
1,707
|
|
|
Common stock dividends
|
|
|
(1,828
|
)
|
|
(1,844
|
)
|
|
(1,579
|
)
|
|
(1,582
|
)
|
|
(1,593
|
)
|
|
Preferred stock dividends and other
|
|
|
(321
|
)
|
|
(302
|
)
|
|
(286
|
)
|
|
(241
|
)
|
|
(261
|
)
|
|
Noncontrolling interests and other, net
|
|
|
(2
|
)
|
|
85
|
|
|
(207
|
)
|
|
(614
|
)
|
|
410
|
|
|
Balance, end of period
|
|
$
|
182,990
|
|
|
181,549
|
|
|
176,469
|
|
|
171,008
|
|
|
168,813
|
|
|
|
|
|
|
|
|
|
(1)
|
For the quarter ended September 30, 2014, includes $1.0 billion
related to a private forward repurchase transaction that is
expected to settle in fourth quarter 2014 for an estimated 19.8
million shares of common stock. For the quarters ended June 30,
2014, December 31, 2013, and September 30, 2013, includes $1.0
billion, $500 million, and $400 million, respectively, related to
private forward repurchase transactions that settled in subsequent
quarters for 19.5 million, 11.1 million, and 9.6 million shares of
common stock, respectively.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
253,231
|
|
|
0.28
|
%
|
|
$
|
180
|
|
|
155,888
|
|
|
0.31
|
%
|
|
$
|
121
|
|
Trading assets
|
|
|
57,439
|
|
|
3.00
|
|
|
|
432
|
|
|
44,809
|
|
|
3.02
|
|
|
|
339
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
8,816
|
|
|
1.69
|
|
|
|
38
|
|
|
6,633
|
|
|
1.69
|
|
|
|
28
|
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
43,324
|
|
|
4.24
|
|
|
|
459
|
|
|
40,754
|
|
|
4.35
|
|
|
|
444
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
113,022
|
|
|
2.76
|
|
|
|
780
|
|
|
112,997
|
|
|
2.83
|
|
|
|
800
|
|
|
|
|
Residential and commercial
|
|
|
25,946
|
|
|
5.98
|
|
|
|
388
|
|
|
30,216
|
|
|
6.56
|
|
|
|
496
|
|
|
|
|
|
Total mortgage-backed securities
|
|
|
138,968
|
|
|
3.36
|
|
|
|
1,168
|
|
|
143,213
|
|
|
3.62
|
|
|
|
1,296
|
|
|
|
Other debt and equity securities
|
|
|
47,131
|
|
|
3.45
|
|
|
|
408
|
|
|
55,404
|
|
|
3.27
|
|
|
|
455
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
|
238,239
|
|
|
3.48
|
|
|
|
2,073
|
|
|
246,004
|
|
|
3.61
|
|
|
|
2,223
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
23,672
|
|
|
2.22
|
|
|
|
133
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
66
|
|
|
5.51
|
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Federal agency mortgage-backed securities
|
|
|
5,854
|
|
|
2.23
|
|
|
|
32
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Other debt securities
|
|
|
5,918
|
|
|
1.83
|
|
|
|
28
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Total held-to-maturity securities
|
|
|
35,510
|
|
|
2.17
|
|
|
|
194
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
Total investment securities
|
|
|
273,749
|
|
|
3.31
|
|
|
|
2,267
|
|
|
246,004
|
|
|
3.61
|
|
|
|
2,223
|
|
Mortgages held for sale (4)
|
|
|
21,444
|
|
|
4.01
|
|
|
|
215
|
|
|
33,227
|
|
|
3.86
|
|
|
|
320
|
|
Loans held for sale (4)
|
|
|
9,533
|
|
|
2.10
|
|
|
|
50
|
|
|
197
|
|
|
7.25
|
|
|
|
3
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (5)
|
|
|
207,570
|
|
|
3.29
|
|
|
|
1,716
|
|
|
185,809
|
|
|
3.63
|
|
|
|
1,697
|
|
|
|
Real estate mortgage
|
|
|
107,769
|
|
|
3.52
|
|
|
|
957
|
|
|
104,637
|
|
|
4.12
|
|
|
|
1,086
|
|
|
|
Real estate construction
|
|
|
17,610
|
|
|
3.93
|
|
|
|
175
|
|
|
16,188
|
|
|
4.43
|
|
|
|
181
|
|
|
|
Lease financing
|
|
|
12,007
|
|
|
5.39
|
|
|
|
162
|
|
|
11,700
|
|
|
5.29
|
|
|
|
155
|
|
|
|
Foreign (5)
|
|
|
48,217
|
|
|
2.69
|
|
|
|
327
|
|
|
44,799
|
|
|
2.09
|
|
|
|
236
|
|
|
|
|
Total commercial (5)
|
|
|
393,173
|
|
|
3.37
|
|
|
|
3,337
|
|
|
363,133
|
|
|
3.67
|
|
|
|
3,355
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
262,134
|
|
|
4.23
|
|
|
|
2,773
|
|
|
254,082
|
|
|
4.20
|
|
|
|
2,670
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
61,575
|
|
|
4.30
|
|
|
|
665
|
|
|
68,785
|
|
|
4.30
|
|
|
|
743
|
|
|
|
Credit card
|
|
|
27,713
|
|
|
11.96
|
|
|
|
836
|
|
|
24,989
|
|
|
12.45
|
|
|
|
784
|
|
|
|
Automobile
|
|
|
54,638
|
|
|
6.19
|
|
|
|
852
|
|
|
49,134
|
|
|
6.85
|
|
|
|
848
|
|
|
|
Other revolving credit and installment
|
|
|
33,966
|
|
|
6.03
|
|
|
|
516
|
|
|
42,011
|
|
|
4.83
|
|
|
|
512
|
|
|
|
|
Total consumer
|
|
|
440,026
|
|
|
5.11
|
|
|
|
5,642
|
|
|
439,001
|
|
|
5.04
|
|
|
|
5,557
|
|
|
|
|
|
Total loans (4)(5)
|
|
|
833,199
|
|
|
4.29
|
|
|
|
8,979
|
|
|
802,134
|
|
|
4.42
|
|
|
|
8,912
|
|
Other
|
|
|
4,674
|
|
|
5.41
|
|
|
|
64
|
|
|
4,279
|
|
|
5.62
|
|
|
|
61
|
|
|
|
|
|
|
|
Total earning assets (5)
|
|
$
|
1,453,269
|
|
|
3.34
|
%
|
|
$
|
12,187
|
|
|
1,286,538
|
|
|
3.71
|
%
|
|
$
|
11,979
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
41,368
|
|
|
0.07
|
%
|
|
$
|
7
|
|
|
34,499
|
|
|
0.06
|
%
|
|
$
|
5
|
|
|
Market rate and other savings
|
|
|
586,353
|
|
|
0.07
|
|
|
|
98
|
|
|
553,062
|
|
|
0.08
|
|
|
|
107
|
|
|
Savings certificates
|
|
|
37,347
|
|
|
0.84
|
|
|
|
80
|
|
|
47,339
|
|
|
1.08
|
|
|
|
129
|
|
|
Other time deposits
|
|
|
55,128
|
|
|
0.39
|
|
|
|
54
|
|
|
30,423
|
|
|
0.62
|
|
|
|
47
|
|
|
Deposits in foreign offices
|
|
|
98,862
|
|
|
0.14
|
|
|
|
34
|
|
|
81,087
|
|
|
0.15
|
|
|
|
30
|
|
|
|
|
Total interest-bearing deposits
|
|
|
819,058
|
|
|
0.13
|
|
|
|
273
|
|
|
746,410
|
|
|
0.17
|
|
|
|
318
|
|
Short-term borrowings
|
|
|
62,285
|
|
|
0.10
|
|
|
|
16
|
|
|
53,403
|
|
|
0.08
|
|
|
|
11
|
|
Long-term debt
|
|
|
172,982
|
|
|
1.46
|
|
|
|
629
|
|
|
133,397
|
|
|
1.86
|
|
|
|
621
|
|
Other liabilities
|
|
|
15,536
|
|
|
2.73
|
|
|
|
106
|
|
|
12,128
|
|
|
2.64
|
|
|
|
80
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
1,069,861
|
|
|
0.38
|
|
|
|
1,024
|
|
|
945,338
|
|
|
0.43
|
|
|
|
1,030
|
|
Portion of noninterest-bearing funding sources (5)
|
|
|
383,408
|
|
|
-
|
|
|
|
-
|
|
|
341,200
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
Total funding sources (5)
|
|
$
|
1,453,269
|
|
|
0.28
|
|
|
|
1,024
|
|
|
1,286,538
|
|
|
0.32
|
|
|
|
1,030
|
|
Net interest margin and net interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on a taxable-equivalent basis (5)(6)
|
|
|
|
|
3.06
|
%
|
|
$
|
11,163
|
|
|
|
|
3.39
|
%
|
|
$
|
10,949
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
16,189
|
|
|
|
|
|
|
|
|
16,350
|
|
|
|
|
|
|
|
Goodwill
|
|
|
25,705
|
|
|
|
|
|
|
|
|
25,637
|
|
|
|
|
|
|
|
Other
|
|
|
122,779
|
|
|
|
|
|
|
|
|
118,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
164,673
|
|
|
|
|
|
|
|
|
160,427
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
307,991
|
|
|
|
|
|
|
|
|
279,156
|
|
|
|
|
|
|
|
Other liabilities (5)
|
|
|
57,979
|
|
|
|
|
|
|
|
|
57,324
|
|
|
|
|
|
|
|
Total equity
|
|
|
182,111
|
|
|
|
|
|
|
|
|
165,147
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets (5)
|
|
|
(383,408
|
)
|
|
|
|
|
|
|
|
(341,200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
164,673
|
|
|
|
|
|
|
|
|
160,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (5)
|
|
$
|
1,617,942
|
|
|
|
|
|
|
|
|
1,446,965
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Our average prime rate was 3.25% for the quarters ended September
30, 2014 and 2013. The average three-month London Interbank Offered
Rate (LIBOR) was 0.23% and 0.26% 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)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
(6)
|
Includes taxable-equivalent adjustments of $222 million and $201
million for the quarters ended September 30, 2014 and 2013,
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
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
232,241
|
|
|
0.28
|
%
|
|
$
|
485
|
|
137,926
|
|
|
0.33
|
%
|
|
$
|
342
|
|
Trading assets
|
|
|
53,373
|
|
|
3.07
|
|
|
|
1,227
|
|
44,530
|
|
|
3.05
|
|
|
|
1,020
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
7,331
|
|
|
1.72
|
|
|
|
95
|
|
6,797
|
|
|
1.66
|
|
|
|
85
|
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
42,884
|
|
|
4.29
|
|
|
|
1,380
|
|
39,213
|
|
|
4.38
|
|
|
|
1,288
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
115,696
|
|
|
2.85
|
|
|
|
2,475
|
|
103,522
|
|
|
2.79
|
|
|
|
2,164
|
|
|
|
|
Residential and commercial
|
|
|
27,070
|
|
|
6.07
|
|
|
|
1,233
|
|
31,217
|
|
|
6.51
|
|
|
|
1,524
|
|
|
|
|
|
Total mortgage-backed securities
|
|
|
142,766
|
|
|
3.46
|
|
|
|
3,708
|
|
134,739
|
|
|
3.65
|
|
|
|
3,688
|
|
|
|
Other debt and equity securities
|
|
|
48,333
|
|
|
3.60
|
|
|
|
1,303
|
|
54,893
|
|
|
3.56
|
|
|
|
1,463
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
|
241,314
|
|
|
3.58
|
|
|
|
6,486
|
|
235,642
|
|
|
3.69
|
|
|
|
6,524
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
11,951
|
|
|
2.22
|
|
|
|
198
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
25
|
|
|
5.51
|
|
|
|
1
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Federal agency mortgage-backed securities
|
|
|
6,034
|
|
|
2.70
|
|
|
|
122
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
Other debt securities
|
|
|
5,844
|
|
|
1.86
|
|
|
|
82
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Total held-to-maturity securities
|
|
|
23,854
|
|
|
2.26
|
|
|
|
403
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
Total investment securities
|
|
|
265,168
|
|
|
3.47
|
|
|
|
6,889
|
|
235,642
|
|
|
3.69
|
|
|
|
6,524
|
|
Mortgages held for sale (4)
|
|
|
18,959
|
|
|
4.08
|
|
|
|
580
|
|
39,950
|
|
|
3.57
|
|
|
|
1,069
|
|
Loans held for sale (4)
|
|
|
3,302
|
|
|
2.15
|
|
|
|
53
|
|
172
|
|
|
7.88
|
|
|
|
10
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (5)
|
|
|
200,277
|
|
|
3.37
|
|
|
|
5,044
|
|
184,421
|
|
|
3.70
|
|
|
|
5,113
|
|
|
|
Real estate mortgage
|
|
|
107,746
|
|
|
3.53
|
|
|
|
2,849
|
|
105,367
|
|
|
3.96
|
|
|
|
3,121
|
|
|
|
Real estate construction
|
|
|
17,249
|
|
|
4.15
|
|
|
|
536
|
|
16,401
|
|
|
4.76
|
|
|
|
584
|
|
|
|
Lease financing
|
|
|
11,922
|
|
|
5.75
|
|
|
|
514
|
|
12,151
|
|
|
6.26
|
|
|
|
571
|
|
|
|
Foreign (5)
|
|
|
48,315
|
|
|
2.43
|
|
|
|
879
|
|
42,326
|
|
|
2.16
|
|
|
|
683
|
|
|
|
|
Total commercial (5)
|
|
|
385,509
|
|
|
3.41
|
|
|
|
9,822
|
|
360,666
|
|
|
3.73
|
|
|
|
10,072
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
260,538
|
|
|
4.20
|
|
|
|
8,207
|
|
252,904
|
|
|
4.24
|
|
|
|
8,044
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
63,264
|
|
|
4.30
|
|
|
|
2,037
|
|
71,390
|
|
|
4.29
|
|
|
|
2,292
|
|
|
|
Credit card
|
|
|
26,811
|
|
|
12.08
|
|
|
|
2,423
|
|
24,373
|
|
|
12.54
|
|
|
|
2,285
|
|
|
|
Automobile
|
|
|
53,314
|
|
|
6.34
|
|
|
|
2,528
|
|
47,890
|
|
|
7.03
|
|
|
|
2,516
|
|
|
|
Other revolving credit and installment
|
|
|
39,942
|
|
|
5.32
|
|
|
|
1,589
|
|
41,857
|
|
|
4.76
|
|
|
|
1,489
|
|
|
|
|
Total consumer
|
|
|
443,869
|
|
|
5.05
|
|
|
|
16,784
|
|
438,414
|
|
|
5.06
|
|
|
|
16,626
|
|
|
|
|
|
Total loans (4)(5)
|
|
|
829,378
|
|
|
4.28
|
|
|
|
26,606
|
|
799,080
|
|
|
4.46
|
|
|
|
26,698
|
|
Other
|
|
|
4,622
|
|
|
5.62
|
|
|
|
195
|
|
4,229
|
|
|
5.45
|
|
|
|
172
|
|
|
|
|
|
|
|
Total earning assets (5)
|
|
$
|
1,407,043
|
|
|
3.42
|
%
|
|
$
|
36,035
|
|
1,261,529
|
|
|
3.79
|
%
|
|
$
|
35,835
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
39,470
|
|
|
0.07
|
%
|
|
$
|
20
|
|
35,704
|
|
|
0.06
|
%
|
|
$
|
16
|
|
|
Market rate and other savings
|
|
|
583,128
|
|
|
0.07
|
|
|
|
304
|
|
544,208
|
|
|
0.08
|
|
|
|
341
|
|
|
Savings certificates
|
|
|
38,867
|
|
|
0.86
|
|
|
|
251
|
|
51,681
|
|
|
1.18
|
|
|
|
457
|
|
|
Other time deposits
|
|
|
49,855
|
|
|
0.41
|
|
|
|
152
|
|
24,177
|
|
|
0.81
|
|
|
|
146
|
|
|
Deposits in foreign offices
|
|
|
94,743
|
|
|
0.14
|
|
|
|
100
|
|
73,715
|
|
|
0.15
|
|
|
|
80
|
|
|
|
|
Total interest-bearing deposits
|
|
|
806,063
|
|
|
0.14
|
|
|
|
827
|
|
729,485
|
|
|
0.19
|
|
|
|
1,040
|
|
Short-term borrowings
|
|
|
58,573
|
|
|
0.10
|
|
|
|
43
|
|
55,535
|
|
|
0.13
|
|
|
|
55
|
|
Long-term debt
|
|
|
162,073
|
|
|
1.54
|
|
|
|
1,868
|
|
128,691
|
|
|
2.02
|
|
|
|
1,950
|
|
Other liabilities
|
|
|
14,005
|
|
|
2.73
|
|
|
|
286
|
|
12,352
|
|
|
2.37
|
|
|
|
220
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
1,040,714
|
|
|
0.39
|
|
|
|
3,024
|
|
926,063
|
|
|
0.47
|
|
|
|
3,265
|
|
Portion of noninterest-bearing funding sources (5)
|
|
|
366,329
|
|
|
-
|
|
|
|
-
|
|
335,466
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
Total funding sources (5)
|
|
$
|
1,407,043
|
|
|
0.29
|
|
|
|
3,024
|
|
1,261,529
|
|
|
0.34
|
|
|
|
3,265
|
|
Net interest margin and net interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on a taxable-equivalent basis (5)(6)
|
|
|
|
|
3.13
|
%
|
|
$
|
33,011
|
|
|
|
3.45
|
%
|
|
$
|
32,570
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
16,169
|
|
|
|
|
|
|
|
16,364
|
|
|
|
|
|
|
|
Goodwill
|
|
|
25,681
|
|
|
|
|
|
|
|
25,637
|
|
|
|
|
|
|
|
Other
|
|
|
120,728
|
|
|
|
|
|
|
|
122,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
162,578
|
|
|
|
|
|
|
|
164,307
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
296,066
|
|
|
|
|
|
|
|
277,820
|
|
|
|
|
|
|
|
Other liabilities (5)
|
|
|
54,057
|
|
|
|
|
|
|
|
58,788
|
|
|
|
|
|
|
|
Total equity
|
|
|
178,784
|
|
|
|
|
|
|
|
163,165
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets (5)
|
|
|
(366,329
|
)
|
|
|
|
|
|
|
(335,466
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
162,578
|
|
|
|
|
|
|
|
164,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (5)
|
|
$
|
1,569,621
|
|
|
|
|
|
|
|
1,425,836
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Our average prime rate was 3.25% for the nine months ended September
30, 2014 and 2013. The average three-month London Interbank Offered
Rate (LIBOR) was 0.23% and 0.28% for the same periods, 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)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
(6)
|
Includes taxable-equivalent adjustments of $664 million and $573
million for the nine months ended September 30, 2014 and 2013,
respectively, primarily related to tax-exempt income on certain
loans and securities. The federal statutory tax rate was 35% for the
periods presented.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30, 2014
|
|
|
June 30, 2014
|
|
|
Mar. 31, 2014
|
|
|
Dec. 31, 2013
|
|
|
Sept. 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
|
Average
|
|
Yields/
|
|
($ 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
|
|
$
|
253.2
|
|
|
0.28
|
%
|
|
$
|
229.8
|
|
|
0.28
|
%
|
|
$
|
213.3
|
|
|
0.27
|
%
|
|
$
|
205.3
|
|
|
0.28
|
%
|
|
$
|
155.9
|
|
|
0.31
|
%
|
|
Trading assets
|
|
|
57.5
|
|
|
3.00
|
|
|
|
54.4
|
|
|
3.05
|
|
|
|
48.2
|
|
|
3.17
|
|
|
|
45.4
|
|
|
3.40
|
|
|
|
44.8
|
|
|
3.02
|
|
|
Investment securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
8.8
|
|
|
1.69
|
|
|
|
6.6
|
|
|
1.78
|
|
|
|
6.6
|
|
|
1.68
|
|
|
|
6.6
|
|
|
1.67
|
|
|
|
6.6
|
|
|
1.69
|
|
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
43.3
|
|
|
4.24
|
|
|
|
42.7
|
|
|
4.26
|
|
|
|
42.6
|
|
|
4.37
|
|
|
|
42.0
|
|
|
4.38
|
|
|
|
40.8
|
|
|
4.35
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
113.0
|
|
|
2.76
|
|
|
|
116.5
|
|
|
2.85
|
|
|
|
117.6
|
|
|
2.94
|
|
|
|
117.9
|
|
|
2.94
|
|
|
|
113.0
|
|
|
2.83
|
|
|
|
|
|
Residential and commercial
|
|
|
26.0
|
|
|
5.98
|
|
|
|
27.3
|
|
|
6.11
|
|
|
|
28.0
|
|
|
6.12
|
|
|
|
29.2
|
|
|
6.35
|
|
|
|
30.2
|
|
|
6.56
|
|
|
|
|
|
|
Total mortgage-backed securities
|
|
|
139.0
|
|
|
3.36
|
|
|
|
143.8
|
|
|
3.47
|
|
|
|
145.6
|
|
|
3.55
|
|
|
|
147.1
|
|
|
3.62
|
|
|
|
143.2
|
|
|
3.62
|
|
|
|
|
Other debt and equity securities
|
|
|
47.1
|
|
|
3.45
|
|
|
|
48.7
|
|
|
3.76
|
|
|
|
49.2
|
|
|
3.59
|
|
|
|
55.4
|
|
|
3.43
|
|
|
|
55.4
|
|
|
3.27
|
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
|
238.2
|
|
|
3.48
|
|
|
|
241.8
|
|
|
3.62
|
|
|
|
244.0
|
|
|
3.65
|
|
|
|
251.1
|
|
|
3.65
|
|
|
|
246.0
|
|
|
3.61
|
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
23.7
|
|
|
2.22
|
|
|
|
10.8
|
|
|
2.20
|
|
|
|
1.1
|
|
|
2.18
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
|
Federal agency mortgage-backed securities
|
|
|
5.9
|
|
|
2.23
|
|
|
|
6.1
|
|
|
2.74
|
|
|
|
6.2
|
|
|
3.11
|
|
|
|
2.7
|
|
|
3.11
|
|
|
|
-
|
|
|
-
|
|
|
|
|
Other debt securities
|
|
|
5.9
|
|
|
1.83
|
|
|
|
5.2
|
|
|
1.90
|
|
|
|
6.4
|
|
|
1.86
|
|
|
|
0.1
|
|
|
1.99
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Total held-to-maturity securities
|
|
|
35.5
|
|
|
2.17
|
|
|
|
22.1
|
|
|
2.28
|
|
|
|
13.7
|
|
|
2.45
|
|
|
|
2.8
|
|
|
3.09
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Total investment securities
|
|
|
273.7
|
|
|
3.31
|
|
|
|
263.9
|
|
|
3.51
|
|
|
|
257.7
|
|
|
3.59
|
|
|
|
253.9
|
|
|
3.65
|
|
|
|
246.0
|
|
|
3.61
|
|
|
Mortgages held for sale
|
|
|
21.5
|
|
|
4.01
|
|
|
|
18.8
|
|
|
4.16
|
|
|
|
16.6
|
|
|
4.11
|
|
|
|
21.4
|
|
|
4.13
|
|
|
|
33.2
|
|
|
3.86
|
|
|
Loans held for sale
|
|
|
9.5
|
|
|
2.10
|
|
|
|
0.2
|
|
|
2.55
|
|
|
|
0.1
|
|
|
6.28
|
|
|
|
0.1
|
|
|
8.21
|
|
|
|
0.2
|
|
|
7.25
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (3)
|
|
|
207.6
|
|
|
3.29
|
|
|
|
199.2
|
|
|
3.39
|
|
|
|
193.9
|
|
|
3.43
|
|
|
|
189.9
|
|
|
3.54
|
|
|
|
185.8
|
|
|
3.63
|
|
|
|
|
Real estate mortgage
|
|
|
107.8
|
|
|
3.52
|
|
|
|
107.7
|
|
|
3.56
|
|
|
|
107.8
|
|
|
3.52
|
|
|
|
105.8
|
|
|
3.85
|
|
|
|
104.6
|
|
|
4.12
|
|
|
|
|
Real estate construction
|
|
|
17.6
|
|
|
3.93
|
|
|
|
17.3
|
|
|
4.17
|
|
|
|
16.9
|
|
|
4.37
|
|
|
|
16.6
|
|
|
4.79
|
|
|
|
16.2
|
|
|
4.43
|
|
|
|
|
Lease financing
|
|
|
12.0
|
|
|
5.39
|
|
|
|
11.8
|
|
|
5.70
|
|
|
|
11.9
|
|
|
6.15
|
|
|
|
11.7
|
|
|
5.70
|
|
|
|
11.7
|
|
|
5.29
|
|
|
|
|
Foreign (3)
|
|
|
48.2
|
|
|
2.69
|
|
|
|
48.8
|
|
|
2.39
|
|
|
|
47.9
|
|
|
2.21
|
|
|
|
46.6
|
|
|
2.24
|
|
|
|
44.8
|
|
|
2.09
|
|
|
|
|
|
Total commercial (3)
|
|
|
393.2
|
|
|
3.37
|
|
|
|
384.8
|
|
|
3.42
|
|
|
|
378.4
|
|
|
3.43
|
|
|
|
370.6
|
|
|
3.59
|
|
|
|
363.1
|
|
|
3.67
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
262.1
|
|
|
4.23
|
|
|
|
260.0
|
|
|
4.20
|
|
|
|
259.5
|
|
|
4.17
|
|
|
|
257.2
|
|
|
4.15
|
|
|
|
254.1
|
|
|
4.20
|
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
61.6
|
|
|
4.30
|
|
|
|
63.3
|
|
|
4.31
|
|
|
|
65.0
|
|
|
4.30
|
|
|
|
66.8
|
|
|
4.29
|
|
|
|
68.8
|
|
|
4.30
|
|
|
|
|
Credit card
|
|
|
27.7
|
|
|
11.96
|
|
|
|
26.4
|
|
|
11.97
|
|
|
|
26.2
|
|
|
12.32
|
|
|
|
25.9
|
|
|
12.23
|
|
|
|
25.0
|
|
|
12.45
|
|
|
|
|
Automobile
|
|
|
54.6
|
|
|
6.19
|
|
|
|
53.5
|
|
|
6.34
|
|
|
|
51.8
|
|
|
6.50
|
|
|
|
50.2
|
|
|
6.70
|
|
|
|
49.1
|
|
|
6.85
|
|
|
|
|
Other revolving credit and installment
|
|
|
34.0
|
|
|
6.03
|
|
|
|
43.0
|
|
|
5.07
|
|
|
|
42.9
|
|
|
5.00
|
|
|
|
42.6
|
|
|
4.94
|
|
|
|
42.0
|
|
|
4.83
|
|
|
|
|
|
Total consumer
|
|
|
440.0
|
|
|
5.11
|
|
|
|
446.2
|
|
|
5.02
|
|
|
|
445.4
|
|
|
5.02
|
|
|
|
442.7
|
|
|
5.01
|
|
|
|
439.0
|
|
|
5.04
|
|
|
|
|
|
|
Total loans (3)
|
|
|
833.2
|
|
|
4.29
|
|
|
|
831.0
|
|
|
4.28
|
|
|
|
823.8
|
|
|
4.29
|
|
|
|
813.3
|
|
|
4.36
|
|
|
|
802.1
|
|
|
4.42
|
|
|
Other
|
|
|
4.7
|
|
|
5.41
|
|
|
|
4.5
|
|
|
5.74
|
|
|
|
4.6
|
|
|
5.72
|
|
|
|
4.7
|
|
|
5.22
|
|
|
|
4.3
|
|
|
5.62
|
|
|
|
|
|
|
|
|
Total earning assets (3)
|
|
$
|
1,453.3
|
|
|
3.34
|
%
|
|
$
|
1,402.6
|
|
|
3.43
|
%
|
|
$
|
1,364.3
|
|
|
3.49
|
%
|
|
$
|
1,344.1
|
|
|
3.57
|
%
|
|
$
|
1,286.5
|
|
|
3.71
|
%
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
41.4
|
|
|
0.07
|
%
|
|
$
|
40.2
|
|
|
0.07
|
%
|
|
$
|
36.8
|
|
|
0.07
|
%
|
|
$
|
35.2
|
|
|
0.07
|
%
|
|
$
|
34.5
|
|
|
0.06
|
%
|
|
|
Market rate and other savings
|
|
|
586.4
|
|
|
0.07
|
|
|
|
583.9
|
|
|
0.07
|
|
|
|
579.0
|
|
|
0.07
|
|
|
|
568.7
|
|
|
0.08
|
|
|
|
553.1
|
|
|
0.08
|
|
|
|
Savings certificates
|
|
|
37.3
|
|
|
0.84
|
|
|
|
38.8
|
|
|
0.86
|
|
|
|
40.5
|
|
|
0.89
|
|
|
|
43.1
|
|
|
0.94
|
|
|
|
47.3
|
|
|
1.08
|
|
|
|
Other time deposits
|
|
|
55.1
|
|
|
0.39
|
|
|
|
48.5
|
|
|
0.41
|
|
|
|
45.8
|
|
|
0.42
|
|
|
|
39.7
|
|
|
0.48
|
|
|
|
30.4
|
|
|
0.62
|
|
|
|
Deposits in foreign offices
|
|
|
98.9
|
|
|
0.14
|
|
|
|
94.2
|
|
|
0.15
|
|
|
|
91.1
|
|
|
0.14
|
|
|
|
86.3
|
|
|
0.15
|
|
|
|
81.1
|
|
|
0.15
|
|
|
|
|
|
Total interest-bearing deposits
|
|
|
819.1
|
|
|
0.13
|
|
|
|
805.6
|
|
|
0.14
|
|
|
|
793.2
|
|
|
0.14
|
|
|
|
773.0
|
|
|
0.15
|
|
|
|
746.4
|
|
|
0.17
|
|
|
Short-term borrowings
|
|
|
62.3
|
|
|
0.10
|
|
|
|
58.9
|
|
|
0.10
|
|
|
|
54.5
|
|
|
0.09
|
|
|
|
52.3
|
|
|
0.12
|
|
|
|
53.4
|
|
|
0.08
|
|
|
Long-term debt
|
|
|
173.0
|
|
|
1.46
|
|
|
|
159.2
|
|
|
1.56
|
|
|
|
153.8
|
|
|
1.62
|
|
|
|
153.5
|
|
|
1.65
|
|
|
|
133.4
|
|
|
1.86
|
|
|
Other liabilities
|
|
|
15.5
|
|
|
2.73
|
|
|
|
13.6
|
|
|
2.73
|
|
|
|
12.9
|
|
|
2.72
|
|
|
|
12.8
|
|
|
2.70
|
|
|
|
12.1
|
|
|
2.64
|
|
|
|
|
|
Total interest-bearing liabilities
|
|
|
1,069.9
|
|
|
0.38
|
|
|
|
1,037.3
|
|
|
0.39
|
|
|
|
1,014.4
|
|
|
0.40
|
|
|
|
991.6
|
|
|
0.42
|
|
|
|
945.3
|
|
|
0.43
|
|
|
Portion of noninterest-bearing funding sources (3)
|
|
|
383.4
|
|
|
-
|
|
|
|
365.3
|
|
|
-
|
|
|
|
349.9
|
|
|
-
|
|
|
|
352.5
|
|
|
-
|
|
|
|
341.2
|
|
|
-
|
|
|
|
|
|
|
|
|
Total funding sources (3)
|
|
$
|
1,453.3
|
|
|
0.28
|
|
|
$
|
1,402.6
|
|
|
0.28
|
|
|
$
|
1,364.3
|
|
|
0.29
|
|
|
$
|
1,344.1
|
|
|
0.30
|
|
|
$
|
1,286.5
|
|
|
0.32
|
|
|
Net interest margin on a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
taxable-equivalent basis (3)
|
|
|
|
|
3.06
|
%
|
|
|
|
|
3.15
|
%
|
|
|
|
|
3.20
|
%
|
|
|
|
|
3.27
|
%
|
|
|
|
|
3.39
|
%
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
16.2
|
|
|
|
|
|
15.9
|
|
|
|
|
|
16.4
|
|
|
|
|
|
16.0
|
|
|
|
|
|
16.4
|
|
|
|
|
Goodwill
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.6
|
|
|
|
|
|
25.6
|
|
|
|
|
|
25.6
|
|
|
|
|
Other
|
|
|
122.7
|
|
|
|
|
|
119.8
|
|
|
|
|
|
119.6
|
|
|
|
|
|
120.0
|
|
|
|
|
|
118.4
|
|
|
|
|
|
|
|
|
|
|
Total noninterest-earnings assets
|
|
$
|
164.6
|
|
|
|
|
|
161.4
|
|
|
|
|
|
161.6
|
|
|
|
|
|
161.6
|
|
|
|
|
|
160.4
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
308.0
|
|
|
|
|
|
295.9
|
|
|
|
|
|
284.1
|
|
|
|
|
|
287.4
|
|
|
|
|
|
279.2
|
|
|
|
|
Other liabilities (3)
|
|
|
57.9
|
|
|
|
|
|
51.1
|
|
|
|
|
|
52.9
|
|
|
|
|
|
57.1
|
|
|
|
|
|
57.3
|
|
|
|
|
Total equity
|
|
|
182.1
|
|
|
|
|
|
179.7
|
|
|
|
|
|
174.5
|
|
|
|
|
|
169.6
|
|
|
|
|
|
165.1
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used to fund earning assets (3)
|
|
|
(383.4
|
)
|
|
|
|
|
(365.3
|
)
|
|
|
|
|
(349.9
|
)
|
|
|
|
|
(352.5
|
)
|
|
|
|
|
(341.2
|
)
|
|
|
|
|
|
|
|
|
|
Net noninterest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funding sources
|
|
$
|
164.6
|
|
|
|
|
|
161.4
|
|
|
|
|
|
161.6
|
|
|
|
|
|
161.6
|
|
|
|
|
|
160.4
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (3)
|
|
$
|
1,617.9
|
|
|
|
|
|
1,564.0
|
|
|
|
|
|
1,525.9
|
|
|
|
|
|
1,505.7
|
|
|
|
|
|
1,446.9
|
|
|
|
|
|
|
|
|
(1)
|
Our average prime rate was 3.25% for quarters ended September 30,
June 30 and March 31, 2014, and December 31 and September 30, 2013.
The average three-month London Interbank Offered Rate (LIBOR) was
0.23%, 0.23%, 0.24%, 0.24% and 0.26% 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.
|
|
(3)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
|
|
|
|
|
|
|
|
|
Quarter ended Sept. 30,
|
|
%
|
|
|
ended Sept. 30,
|
|
%
|
|
(in millions)
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
Service charges on deposit accounts
|
|
$
|
1,311
|
|
1,278
|
|
|
3
|
%
|
|
|
$
|
3,809
|
|
3,740
|
|
|
2
|
%
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,327
|
|
2,068
|
|
|
13
|
|
|
|
|
6,848
|
|
6,245
|
|
|
10
|
|
|
|
Trust and investment management
|
|
|
856
|
|
811
|
|
|
6
|
|
|
|
|
2,538
|
|
2,439
|
|
|
4
|
|
|
|
Investment banking
|
|
|
371
|
|
397
|
|
|
(7
|
)
|
|
|
|
1,189
|
|
1,288
|
|
|
(8
|
)
|
|
|
|
Total trust and investment fees
|
|
|
3,554
|
|
3,276
|
|
|
8
|
|
|
|
|
10,575
|
|
9,972
|
|
|
6
|
|
|
Card fees
|
|
|
875
|
|
813
|
|
|
8
|
|
|
|
|
2,506
|
|
2,364
|
|
|
6
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
296
|
|
390
|
|
|
(24
|
)
|
|
|
|
1,005
|
|
1,161
|
|
|
(13
|
)
|
|
|
Merchant processing fees
|
|
|
184
|
|
169
|
|
|
9
|
|
|
|
|
539
|
|
497
|
|
|
8
|
|
|
|
Cash network fees
|
|
|
134
|
|
129
|
|
|
4
|
|
|
|
|
382
|
|
371
|
|
|
3
|
|
|
|
Commercial real estate brokerage commissions
|
|
|
143
|
|
91
|
|
|
57
|
|
|
|
|
314
|
|
209
|
|
|
50
|
|
|
|
Letters of credit fees
|
|
|
100
|
|
100
|
|
|
-
|
|
|
|
|
288
|
|
311
|
|
|
(7
|
)
|
|
|
All other fees
|
|
|
233
|
|
219
|
|
|
6
|
|
|
|
|
697
|
|
672
|
|
|
4
|
|
|
|
|
Total other fees
|
|
|
1,090
|
|
1,098
|
|
|
(1
|
)
|
|
|
|
3,225
|
|
3,221
|
|
|
-
|
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
679
|
|
504
|
|
|
35
|
|
|
|
|
2,652
|
|
1,211
|
|
|
119
|
|
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
954
|
|
1,104
|
|
|
(14
|
)
|
|
|
|
2,214
|
|
5,993
|
|
|
(63
|
)
|
|
|
|
Total mortgage banking
|
|
|
1,633
|
|
1,608
|
|
|
2
|
|
|
|
|
4,866
|
|
7,204
|
|
|
(32
|
)
|
|
Insurance
|
|
|
388
|
|
413
|
|
|
(6
|
)
|
|
|
|
1,273
|
|
1,361
|
|
|
(6
|
)
|
|
Net gains from trading activities
|
|
|
168
|
|
397
|
|
|
(58
|
)
|
|
|
|
982
|
|
1,298
|
|
|
(24
|
)
|
|
Net gains (losses) on debt securities
|
|
|
253
|
|
(6
|
)
|
|
NM
|
|
|
|
|
407
|
|
(15
|
)
|
|
NM
|
|
|
Net gains from equity investments
|
|
|
712
|
|
502
|
|
|
42
|
|
|
|
|
2,008
|
|
818
|
|
|
145
|
|
|
Lease income
|
|
|
137
|
|
160
|
|
|
(14
|
)
|
|
|
|
399
|
|
515
|
|
|
(23
|
)
|
|
Life insurance investment income
|
|
|
143
|
|
154
|
|
|
(7
|
)
|
|
|
|
413
|
|
441
|
|
|
(6
|
)
|
|
All other
|
|
|
8
|
|
37
|
|
|
(78
|
)
|
|
|
|
94
|
|
199
|
|
|
(53
|
)
|
|
|
|
|
Total
|
|
$
|
10,272
|
|
9,730
|
|
|
6
|
|
|
|
$
|
30,557
|
|
31,118
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
|
|
|
|
|
|
|
|
|
|
|
Quarter ended Sept. 30,
|
|
%
|
|
|
|
ended Sept. 30,
|
|
%
|
|
(in millions)
|
|
|
2014
|
|
2013
|
|
Change
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
Salaries
|
|
$
|
3,914
|
|
3,910
|
|
-
|
%
|
|
|
$
|
11,437
|
|
11,341
|
|
1
|
%
|
|
Commission and incentive compensation
|
|
|
2,527
|
|
2,401
|
|
5
|
|
|
|
|
7,388
|
|
7,604
|
|
(3
|
)
|
|
Employee benefits
|
|
|
931
|
|
1,172
|
|
(21
|
)
|
|
|
|
3,473
|
|
3,873
|
|
(10
|
)
|
|
Equipment
|
|
|
457
|
|
471
|
|
(3
|
)
|
|
|
|
1,392
|
|
1,417
|
|
(2
|
)
|
|
Net occupancy
|
|
|
731
|
|
728
|
|
-
|
|
|
|
|
2,195
|
|
2,163
|
|
1
|
|
|
Core deposit and other intangibles
|
|
|
342
|
|
375
|
|
(9
|
)
|
|
|
|
1,032
|
|
1,129
|
|
(9
|
)
|
|
FDIC and other deposit assessments
|
|
|
229
|
|
214
|
|
7
|
|
|
|
|
697
|
|
765
|
|
(9
|
)
|
|
Outside professional services
|
|
|
684
|
|
623
|
|
10
|
|
|
|
|
1,889
|
|
1,765
|
|
7
|
|
|
Outside data processing
|
|
|
264
|
|
251
|
|
5
|
|
|
|
|
764
|
|
719
|
|
6
|
|
|
Contract services
|
|
|
247
|
|
241
|
|
2
|
|
|
|
|
730
|
|
674
|
|
8
|
|
|
Travel and entertainment
|
|
|
226
|
|
209
|
|
8
|
|
|
|
|
688
|
|
651
|
|
6
|
|
|
Operating losses
|
|
|
417
|
|
195
|
|
114
|
|
|
|
|
940
|
|
640
|
|
47
|
|
|
Postage, stationery and supplies
|
|
|
182
|
|
184
|
|
(1
|
)
|
|
|
|
543
|
|
567
|
|
(4
|
)
|
|
Advertising and promotion
|
|
|
153
|
|
157
|
|
(3
|
)
|
|
|
|
458
|
|
445
|
|
3
|
|
|
Foreclosed assets
|
|
|
157
|
|
161
|
|
(2
|
)
|
|
|
|
419
|
|
502
|
|
(17
|
)
|
|
Telecommunications
|
|
|
122
|
|
116
|
|
5
|
|
|
|
|
347
|
|
364
|
|
(5
|
)
|
|
Insurance
|
|
|
97
|
|
98
|
|
(1
|
)
|
|
|
|
362
|
|
378
|
|
(4
|
)
|
|
Operating leases
|
|
|
58
|
|
56
|
|
4
|
|
|
|
|
162
|
|
153
|
|
6
|
|
|
All other
|
|
|
510
|
|
540
|
|
(6
|
)
|
|
|
|
1,474
|
|
1,607
|
|
(8
|
)
|
|
|
Total
|
|
$
|
12,248
|
|
12,102
|
|
1
|
|
|
|
$
|
36,390
|
|
36,757
|
|
(1
|
)
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Service charges on deposit accounts
|
|
$
|
1,311
|
|
1,283
|
|
1,215
|
|
1,283
|
|
1,278
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,327
|
|
2,280
|
|
2,241
|
|
2,150
|
|
2,068
|
|
|
Trust and investment management
|
|
|
856
|
|
838
|
|
844
|
|
850
|
|
811
|
|
|
Investment banking
|
|
|
371
|
|
491
|
|
327
|
|
458
|
|
397
|
|
|
|
Total trust and investment fees
|
|
|
3,554
|
|
3,609
|
|
3,412
|
|
3,458
|
|
3,276
|
|
Card fees
|
|
|
875
|
|
847
|
|
784
|
|
827
|
|
813
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
296
|
|
342
|
|
367
|
|
379
|
|
390
|
|
|
Merchant processing fees
|
|
|
184
|
|
183
|
|
172
|
|
172
|
|
169
|
|
|
Cash network fees
|
|
|
134
|
|
128
|
|
120
|
|
122
|
|
129
|
|
|
Commercial real estate brokerage commissions
|
|
|
143
|
|
99
|
|
72
|
|
129
|
|
91
|
|
|
Letters of credit fees
|
|
|
100
|
|
92
|
|
96
|
|
99
|
|
100
|
|
|
All other fees
|
|
|
233
|
|
244
|
|
220
|
|
218
|
|
219
|
|
|
|
Total other fees
|
|
|
1,090
|
|
1,088
|
|
1,047
|
|
1,119
|
|
1,098
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
679
|
|
1,035
|
|
938
|
|
709
|
|
504
|
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
954
|
|
688
|
|
572
|
|
861
|
|
1,104
|
|
|
|
Total mortgage banking
|
|
|
1,633
|
|
1,723
|
|
1,510
|
|
1,570
|
|
1,608
|
|
Insurance
|
|
|
388
|
|
453
|
|
432
|
|
453
|
|
413
|
|
Net gains from trading activities
|
|
|
168
|
|
382
|
|
432
|
|
325
|
|
397
|
|
Net gains (losses) on debt securities
|
|
|
253
|
|
71
|
|
83
|
|
(14)
|
|
(6)
|
|
Net gains from equity investments
|
|
|
712
|
|
449
|
|
847
|
|
654
|
|
502
|
|
Lease income
|
|
|
137
|
|
129
|
|
133
|
|
148
|
|
160
|
|
Life insurance investment income
|
|
|
143
|
|
138
|
|
132
|
|
125
|
|
154
|
|
All other
|
|
|
8
|
|
103
|
|
(17)
|
|
(86)
|
|
37
|
|
|
|
|
Total
|
|
$
|
10,272
|
|
10,275
|
|
10,010
|
|
9,862
|
|
9,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Salaries
|
|
$
|
3,914
|
|
3,795
|
|
3,728
|
|
3,811
|
|
3,910
|
|
Commission and incentive compensation
|
|
|
2,527
|
|
2,445
|
|
2,416
|
|
2,347
|
|
2,401
|
|
Employee benefits
|
|
|
931
|
|
1,170
|
|
1,372
|
|
1,160
|
|
1,172
|
|
Equipment
|
|
|
457
|
|
445
|
|
490
|
|
567
|
|
471
|
|
Net occupancy
|
|
|
731
|
|
722
|
|
742
|
|
732
|
|
728
|
|
Core deposit and other intangibles
|
|
|
342
|
|
349
|
|
341
|
|
375
|
|
375
|
|
FDIC and other deposit assessments
|
|
|
229
|
|
225
|
|
243
|
|
196
|
|
214
|
|
Outside professional services
|
|
|
684
|
|
646
|
|
559
|
|
754
|
|
623
|
|
Outside data processing
|
|
|
264
|
|
259
|
|
241
|
|
264
|
|
251
|
|
Contract services
|
|
|
247
|
|
249
|
|
234
|
|
261
|
|
241
|
|
Travel and entertainment
|
|
|
226
|
|
243
|
|
219
|
|
234
|
|
209
|
|
Operating losses
|
|
|
417
|
|
364
|
|
159
|
|
181
|
|
195
|
|
Postage, stationery and supplies
|
|
|
182
|
|
170
|
|
191
|
|
189
|
|
184
|
|
Advertising and promotion
|
|
|
153
|
|
187
|
|
118
|
|
165
|
|
157
|
|
Foreclosed assets
|
|
|
157
|
|
130
|
|
132
|
|
103
|
|
161
|
|
Telecommunications
|
|
|
122
|
|
111
|
|
114
|
|
118
|
|
116
|
|
Insurance
|
|
|
97
|
|
140
|
|
125
|
|
59
|
|
98
|
|
Operating leases
|
|
|
58
|
|
54
|
|
50
|
|
51
|
|
56
|
|
All other
|
|
|
510
|
|
490
|
|
474
|
|
518
|
|
540
|
|
|
Total
|
|
$
|
12,248
|
|
12,194
|
|
11,948
|
|
12,085
|
|
12,102
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
Dec. 31,
|
|
%
|
|
(in millions, except shares)
|
|
|
2014
|
|
2013
|
|
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18,032
|
|
|
19,919
|
|
|
(9
|
)%
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
261,932
|
|
|
213,793
|
|
|
23
|
|
|
Trading assets
|
|
|
67,755
|
|
|
62,813
|
|
|
8
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
248,251
|
|
|
252,007
|
|
|
(1
|
)
|
|
|
Held-to-maturity, at cost (fair value $40,915 and $12,247)
|
|
|
40,758
|
|
|
12,346
|
|
|
230
|
|
|
Mortgages held for sale (includes $15,755 and $13,879 carried at
fair value) (1)
|
|
|
20,178
|
|
|
16,763
|
|
|
20
|
|
|
Loans held for sale (includes $1 and $1 carried at fair value) (1)
|
|
|
9,292
|
|
|
133
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (includes $5,849 and $5,995 carried at fair value) (1)(2)
|
|
|
838,883
|
|
|
822,286
|
|
|
2
|
|
|
Allowance for loan losses
|
|
|
(12,681
|
)
|
|
(14,502
|
)
|
|
(13
|
)
|
|
|
Net loans (2)
|
|
|
826,202
|
|
|
807,784
|
|
|
2
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
14,031
|
|
|
15,580
|
|
|
(10
|
)
|
|
|
Amortized
|
|
|
1,224
|
|
|
1,229
|
|
|
-
|
|
|
Premises and equipment, net
|
|
|
8,768
|
|
|
9,156
|
|
|
(4
|
)
|
|
Goodwill
|
|
|
25,705
|
|
|
25,637
|
|
|
-
|
|
|
Other assets (includes $1,964 and $1,386 carried at fair value) (1)
|
|
|
94,727
|
|
|
86,342
|
|
|
10
|
|
|
|
|
|
|
Total assets (2)
|
|
$
|
1,636,855
|
|
|
1,523,502
|
|
|
7
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
313,791
|
|
|
288,117
|
|
|
9
|
|
|
Interest-bearing deposits
|
|
|
816,834
|
|
|
791,060
|
|
|
3
|
|
|
|
Total deposits
|
|
|
1,130,625
|
|
|
1,079,177
|
|
|
5
|
|
|
Short-term borrowings
|
|
|
62,927
|
|
|
53,883
|
|
|
17
|
|
|
Accrued expenses and other liabilities (2)
|
|
|
75,727
|
|
|
66,436
|
|
|
14
|
|
|
Long-term debt
|
|
|
184,586
|
|
|
152,998
|
|
|
21
|
|
|
|
|
|
Total liabilities (2)
|
|
|
1,453,865
|
|
|
1,352,494
|
|
|
7
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
19,379
|
|
|
16,267
|
|
|
19
|
|
|
|
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
|
|
|
60,100
|
|
|
60,296
|
|
|
-
|
|
|
|
Retained earnings
|
|
|
103,494
|
|
|
92,361
|
|
|
12
|
|
|
|
Cumulative other comprehensive income
|
|
|
3,118
|
|
|
1,386
|
|
|
125
|
|
|
|
Treasury stock – 266,802,983 shares and 224,648,769 shares
|
|
|
(11,206
|
)
|
|
(8,104
|
)
|
|
38
|
|
|
|
Unearned ESOP shares
|
|
|
(1,540
|
)
|
|
(1,200
|
)
|
|
28
|
|
|
|
|
Total Wells Fargo stockholders' equity
|
|
|
182,481
|
|
|
170,142
|
|
|
7
|
|
|
Noncontrolling interests
|
|
|
509
|
|
|
866
|
|
|
(41
|
)
|
|
|
|
|
Total equity
|
|
|
182,990
|
|
|
171,008
|
|
|
7
|
|
|
|
|
|
|
Total liabilities and equity (2)
|
|
$
|
1,636,855
|
|
|
1,523,502
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not meaningful.
|
|
|
|
|
|
|
|
|
(1)
|
Parenthetical amounts represent assets and liabilities for which we
have elected the fair value option.
|
|
(2)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18,032
|
|
20,635
|
|
19,731
|
|
19,919
|
|
18,928
|
|
Federal funds sold, securities purchased under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
resale agreements and other short-term investments
|
|
|
261,932
|
|
238,719
|
|
222,781
|
|
213,793
|
|
182,036
|
|
Trading assets
|
|
|
67,755
|
|
71,674
|
|
63,753
|
|
62,813
|
|
60,203
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
248,251
|
|
248,961
|
|
252,665
|
|
252,007
|
|
259,399
|
|
|
Held-to-maturity, at cost
|
|
|
40,758
|
|
30,108
|
|
17,662
|
|
12,346
|
|
-
|
|
Mortgages held for sale
|
|
|
20,178
|
|
21,064
|
|
16,233
|
|
16,763
|
|
25,395
|
|
Loans held for sale
|
|
|
9,292
|
|
9,762
|
|
91
|
|
133
|
|
204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1)
|
|
|
838,883
|
|
828,942
|
|
826,443
|
|
822,286
|
|
809,135
|
|
Allowance for loan losses
|
|
|
(12,681)
|
|
(13,101)
|
|
(13,695)
|
|
(14,502)
|
|
(15,159)
|
|
|
Net loans (1)
|
|
|
826,202
|
|
815,841
|
|
812,748
|
|
807,784
|
|
793,976
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
14,031
|
|
13,900
|
|
14,953
|
|
15,580
|
|
14,501
|
|
|
Amortized
|
|
|
1,224
|
|
1,196
|
|
1,219
|
|
1,229
|
|
1,204
|
|
Premises and equipment, net
|
|
|
8,768
|
|
8,977
|
|
9,020
|
|
9,156
|
|
9,120
|
|
Goodwill
|
|
|
25,705
|
|
25,705
|
|
25,637
|
|
25,637
|
|
25,637
|
|
Other assets
|
|
|
94,727
|
|
92,332
|
|
90,214
|
|
86,342
|
|
94,262
|
|
|
|
|
|
Total assets (1)
|
|
$
|
1,636,855
|
|
1,598,874
|
|
1,546,707
|
|
1,523,502
|
|
1,484,865
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
313,791
|
|
308,099
|
|
294,863
|
|
288,117
|
|
279,911
|
|
Interest-bearing deposits
|
|
|
816,834
|
|
810,478
|
|
799,713
|
|
791,060
|
|
761,960
|
|
|
Total deposits
|
|
|
1,130,625
|
|
1,118,577
|
|
1,094,576
|
|
1,079,177
|
|
1,041,871
|
|
Short-term borrowings
|
|
|
62,927
|
|
61,849
|
|
57,061
|
|
53,883
|
|
53,851
|
|
Accrued expenses and other liabilities (1)
|
|
|
75,727
|
|
69,021
|
|
65,179
|
|
66,436
|
|
69,118
|
|
Long-term debt
|
|
|
184,586
|
|
167,878
|
|
153,422
|
|
152,998
|
|
151,212
|
|
|
|
|
Total liabilities (1)
|
|
|
1,453,865
|
|
1,417,325
|
|
1,370,238
|
|
1,352,494
|
|
1,316,052
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
19,379
|
|
18,749
|
|
17,179
|
|
16,267
|
|
15,549
|
|
|
Common stock
|
|
|
9,136
|
|
9,136
|
|
9,136
|
|
9,136
|
|
9,136
|
|
|
Additional paid-in capital
|
|
|
60,100
|
|
59,926
|
|
60,618
|
|
60,296
|
|
60,188
|
|
|
Retained earnings
|
|
|
103,494
|
|
99,926
|
|
96,368
|
|
92,361
|
|
88,625
|
|
|
Cumulative other comprehensive income
|
|
|
3,118
|
|
4,117
|
|
2,752
|
|
1,386
|
|
2,289
|
|
|
Treasury stock
|
|
|
(11,206)
|
|
(9,271)
|
|
(8,206)
|
|
(8,104)
|
|
(7,290)
|
|
|
Unearned ESOP shares
|
|
|
(1,540)
|
|
(1,724)
|
|
(2,193)
|
|
(1,200)
|
|
(1,332)
|
|
|
|
Total Wells Fargo stockholders' equity
|
|
|
182,481
|
|
180,859
|
|
175,654
|
|
170,142
|
|
167,165
|
|
Noncontrolling interests
|
|
|
509
|
|
690
|
|
815
|
|
866
|
|
1,648
|
|
|
|
|
Total equity
|
|
|
182,990
|
|
181,549
|
|
176,469
|
|
171,008
|
|
168,813
|
|
|
|
|
|
Total liabilities and equity (1)
|
|
$
|
1,636,855
|
|
1,598,874
|
|
1,546,707
|
|
1,523,502
|
|
1,484,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
$
|
14,794
|
|
6,414
|
|
6,359
|
|
6,280
|
|
6,406
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
45,805
|
|
44,779
|
|
44,140
|
|
42,536
|
|
42,293
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
112,613
|
|
116,908
|
|
118,090
|
|
117,591
|
|
118,963
|
|
|
|
Residential and commercial
|
|
|
27,491
|
|
29,433
|
|
30,362
|
|
31,200
|
|
32,329
|
|
|
|
|
Total mortgage-backed securities
|
|
|
140,104
|
|
146,341
|
|
148,452
|
|
148,791
|
|
151,292
|
|
|
Other debt securities
|
|
|
45,013
|
|
48,312
|
|
50,253
|
|
51,015
|
|
55,828
|
|
|
|
|
|
Total available-for-sale debt securities
|
|
|
245,716
|
|
245,846
|
|
249,204
|
|
248,622
|
|
255,819
|
|
|
Marketable equity securities
|
|
|
2,535
|
|
3,115
|
|
3,461
|
|
3,385
|
|
3,580
|
|
|
|
|
|
|
Total available-for-sale securities
|
|
|
248,251
|
|
248,961
|
|
252,665
|
|
252,007
|
|
259,399
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
28,887
|
|
17,777
|
|
5,861
|
|
-
|
|
-
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
123
|
|
41
|
|
-
|
|
-
|
|
-
|
|
|
Federal agency mortgage-backed securities
|
|
|
5,770
|
|
6,030
|
|
6,199
|
|
6,304
|
|
-
|
|
|
Other debt securities
|
|
|
5,978
|
|
6,260
|
|
5,602
|
|
6,042
|
|
-
|
|
|
|
|
|
|
Total held-to-maturity debt securities
|
|
|
40,758
|
|
30,108
|
|
17,662
|
|
12,346
|
|
-
|
|
|
|
|
|
|
|
Total investment securities
|
|
$
|
289,009
|
|
279,069
|
|
270,327
|
|
264,353
|
|
259,399
|
|
|
|
FIVE QUARTER LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (1)
|
|
$
|
212,370
|
|
206,055
|
|
196,768
|
|
193,811
|
|
188,593
|
|
|
Real estate mortgage
|
|
|
107,208
|
|
108,418
|
|
107,969
|
|
107,100
|
|
105,540
|
|
|
Real estate construction
|
|
|
17,880
|
|
17,056
|
|
16,615
|
|
16,747
|
|
16,413
|
|
|
Lease financing
|
|
|
11,675
|
|
11,908
|
|
11,841
|
|
12,034
|
|
11,688
|
|
|
Foreign (1)(2)
|
|
|
47,350
|
|
47,967
|
|
48,088
|
|
47,551
|
|
46,621
|
|
|
|
Total commercial
|
|
|
396,483
|
|
391,404
|
|
381,281
|
|
377,243
|
|
368,855
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
263,326
|
|
260,104
|
|
259,478
|
|
258,497
|
|
254,924
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
60,844
|
|
62,455
|
|
63,965
|
|
65,914
|
|
67,675
|
|
|
Credit card
|
|
|
28,270
|
|
27,215
|
|
26,061
|
|
26,870
|
|
25,448
|
|
|
Automobile
|
|
|
55,242
|
|
54,095
|
|
52,607
|
|
50,808
|
|
49,693
|
|
|
Other revolving credit and installment
|
|
|
34,718
|
|
33,669
|
|
43,051
|
|
42,954
|
|
42,540
|
|
|
|
Total consumer
|
|
|
442,400
|
|
437,538
|
|
445,162
|
|
445,043
|
|
440,280
|
|
|
|
|
Total loans (3)
|
|
$
|
838,883
|
|
828,942
|
|
826,443
|
|
822,286
|
|
809,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
(2)
|
Substantially all of our foreign loan portfolio is commercial loans.
Loans are classified as foreign primarily based on whether the
borrower's primary address is outside of the United States.
|
|
(3)
|
Includes $24.2 billion, $25.0 billion, $25.9 billion, $26.7 billion
and $27.8 billion of purchased credit-impaired (PCI) loans at
September 30, June 30 and March 31, 2014, and December 31, and
September 30, 2013, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
586
|
|
|
693
|
|
630
|
|
738
|
|
809
|
|
|
|
Real estate mortgage
|
|
|
1,636
|
|
|
1,802
|
|
2,030
|
|
2,252
|
|
2,496
|
|
|
|
Real estate construction
|
|
|
217
|
|
|
239
|
|
296
|
|
416
|
|
517
|
|
|
|
Lease financing
|
|
|
25
|
|
|
28
|
|
31
|
|
29
|
|
17
|
|
|
|
Foreign
|
|
|
31
|
|
|
36
|
|
40
|
|
40
|
|
47
|
|
|
|
|
Total commercial
|
|
|
2,495
|
|
|
2,798
|
|
3,027
|
|
3,475
|
|
3,886
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
8,784
|
|
|
9,026
|
|
9,357
|
|
9,799
|
|
10,450
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,903
|
|
|
1,964
|
|
2,072
|
|
2,188
|
|
2,333
|
|
|
|
Automobile
|
|
|
143
|
|
|
150
|
|
161
|
|
173
|
|
188
|
|
|
|
Other revolving credit and installment
|
|
|
40
|
|
|
34
|
|
33
|
|
33
|
|
36
|
|
|
|
|
Total consumer
|
|
|
10,870
|
|
|
11,174
|
|
11,623
|
|
12,193
|
|
13,007
|
|
|
|
|
|
Total nonaccrual loans (1)(2)(3)
|
|
|
13,365
|
|
|
13,972
|
|
14,650
|
|
15,668
|
|
16,893
|
|
|
|
|
|
As a percentage of total loans (4)
|
|
|
1.59
|
%
|
|
1.69
|
|
1.77
|
|
1.91
|
|
2.09
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed (5)
|
|
$
|
2,617
|
|
|
2,359
|
|
2,302
|
|
2,093
|
|
1,781
|
|
|
Non-government insured/guaranteed
|
|
|
1,691
|
|
|
1,748
|
|
1,813
|
|
1,844
|
|
2,021
|
|
|
|
|
|
Total foreclosed assets
|
|
|
4,308
|
|
|
4,107
|
|
4,115
|
|
3,937
|
|
3,802
|
|
|
|
|
|
|
Total nonperforming assets
|
|
$
|
17,673
|
|
|
18,079
|
|
18,765
|
|
19,605
|
|
20,695
|
|
|
|
|
|
|
As a percentage of total loans (4)
|
|
|
2.11
|
%
|
|
2.18
|
|
2.27
|
|
2.38
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes nonaccrual mortgages held for sale and loans held for sale
in their respective loan categories.
|
|
(2)
|
Excludes PCI loans because they continue to earn interest income
from accretable yield, independent of performance in accordance with
their contractual terms.
|
|
(3)
|
Real estate 1-4 family mortgage loans predominantly 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.
|
|
(4)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
(5)
|
Consistent with regulatory reporting requirements, foreclosed real
estate resulting from government insured/guaranteed loans are
classified as nonperforming. Both principal and interest related to
these foreclosed real estate assets are collectible because the
loans were predominantly insured by the FHA or guaranteed by the VA.
Previous enhancements to loan modification programs and release of
an FHA foreclosure moratorium contributed to elevated levels of
foreclosed assets in the latter half of 2013. As a result, the
increase in balance at September 30, 2014, reflects an industry
slowdown in meeting U.S. Department of Housing and Urban Development
(HUD) conveyance requirements due to industry resource constraints
to deal with the elevated levels, as well as other factors,
including an increase in foreclosures in states with longer
redemption periods, longer occupant evacuation periods, increased
maintenance required for aging foreclosures and longer repair
authorization periods.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Loans 90 days or more past due and still accruing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (excluding PCI)(1):
|
|
$
|
18,295
|
|
18,582
|
|
21,215
|
|
23,219
|
|
22,181
|
|
|
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
16,628
|
|
16,978
|
|
19,405
|
|
21,274
|
|
20,214
|
|
|
|
Less: Student loans guaranteed under the FFELP (4)
|
|
|
721
|
|
707
|
|
860
|
|
900
|
|
917
|
|
|
|
|
|
Total, not government insured/guaranteed
|
|
$
|
946
|
|
897
|
|
950
|
|
1,045
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
32
|
|
51
|
|
11
|
|
11
|
|
125
|
|
|
|
Real estate mortgage
|
|
|
37
|
|
53
|
|
13
|
|
35
|
|
40
|
|
|
|
Real estate construction
|
|
|
18
|
|
16
|
|
69
|
|
97
|
|
1
|
|
|
|
Foreign
|
|
|
4
|
|
2
|
|
2
|
|
-
|
|
1
|
|
|
|
|
Total commercial
|
|
|
91
|
|
122
|
|
95
|
|
143
|
|
167
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
327
|
|
311
|
|
333
|
|
354
|
|
383
|
|
|
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
78
|
|
70
|
|
88
|
|
86
|
|
89
|
|
|
|
Credit card
|
|
|
302
|
|
266
|
|
308
|
|
321
|
|
285
|
|
|
|
Automobile
|
|
|
64
|
|
48
|
|
41
|
|
55
|
|
48
|
|
|
|
Other revolving credit and installment
|
|
|
84
|
|
80
|
|
85
|
|
86
|
|
78
|
|
|
|
|
Total consumer
|
|
|
855
|
|
775
|
|
855
|
|
902
|
|
883
|
|
|
|
|
|
Total, not government insured/guaranteed
|
|
$
|
946
|
|
897
|
|
950
|
|
1,045
|
|
1,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The carrying value of purchased credit-impaired (PCI) loans
contractually 90 days or more past due was $4.0 billion, $4.0
billion, $4.3 billion, $4.5 billion and $4.9 billion, at September
30, June 30, and March 31, 2014, and December 31, and September 30,
2013, 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 predominantly insured by the
FHA or guaranteed by the VA.
|
|
(3)
|
Includes mortgages held for sale 90 days or more past due and still
accruing.
|
|
(4)
|
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).
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
December 31,
|
|
(in millions)
|
|
|
2014
|
|
2013
|
|
2008
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
246
|
|
215
|
|
4,580
|
|
|
Real estate mortgage
|
|
|
973
|
|
1,136
|
|
5,803
|
|
|
Real estate construction
|
|
|
237
|
|
433
|
|
6,462
|
|
|
Foreign
|
|
|
403
|
|
720
|
|
1,859
|
|
|
|
Total commercial
|
|
|
1,859
|
|
2,504
|
|
18,704
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
22,271
|
|
24,100
|
|
39,214
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
106
|
|
123
|
|
728
|
|
|
Automobile
|
|
|
-
|
|
-
|
|
151
|
|
|
|
Total consumer
|
|
|
22,377
|
|
24,223
|
|
40,093
|
|
|
|
|
Total PCI loans (carrying value)
|
|
$
|
24,236
|
|
26,727
|
|
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
|
|
|
213
|
|
|
-
|
|
|
-
|
|
|
213
|
|
|
Release of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Loans resolved by settlement with borrower (1)
|
|
|
(1,512
|
)
|
|
-
|
|
|
-
|
|
|
(1,512
|
)
|
|
|
Loans resolved by sales to third parties (2)
|
|
|
(308
|
)
|
|
-
|
|
|
(85
|
)
|
|
(393
|
)
|
|
|
Reclassification to accretable yield for loans with improving
credit-related cash flows (3)
|
|
|
(1,605
|
)
|
|
(3,897
|
)
|
|
(823
|
)
|
|
(6,325
|
)
|
|
Use of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Losses from loan resolutions and write-downs (4)
|
|
|
(6,933
|
)
|
|
(17,884
|
)
|
|
(2,961
|
)
|
|
(27,778
|
)
|
|
Balance, December 31, 2013
|
|
|
265
|
|
|
4,704
|
|
|
200
|
|
|
5,169
|
|
|
Addition of nonaccretable difference due to acquisitions
|
|
|
13
|
|
|
-
|
|
|
-
|
|
|
13
|
|
|
Release of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Loans resolved by settlement with borrower (1)
|
|
|
(27
|
)
|
|
-
|
|
|
-
|
|
|
(27
|
)
|
|
|
Loans resolved by sales to third parties (2)
|
|
|
(14
|
)
|
|
-
|
|
|
-
|
|
|
(14
|
)
|
|
|
Reclassification to accretable yield for loans with improving
credit-related cash flows (3)
|
|
|
(116
|
)
|
|
(1,954
|
)
|
|
(19
|
)
|
|
(2,089
|
)
|
|
Use of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries (losses) from loan resolutions and write-downs (4)
|
|
|
(7
|
)
|
|
22
|
|
|
15
|
|
|
30
|
|
|
Balance, September 30, 2014
|
|
$
|
114
|
|
|
2,772
|
|
|
196
|
|
|
3,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2014
|
|
$
|
140
|
|
|
2,771
|
|
|
200
|
|
|
3,111
|
|
|
Addition of nonaccretable difference due to acquisitions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Release of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Loans resolved by settlement with borrower (1)
|
|
|
(9
|
)
|
|
-
|
|
|
-
|
|
|
(9
|
)
|
|
|
Loans resolved by sales to third parties (2)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
Reclassification to accretable yield for loans with improving
credit-related cash flows (3)
|
|
|
(13
|
)
|
|
-
|
|
|
-
|
|
|
(13
|
)
|
|
Use of nonaccretable difference due to:
|
|
|
|
|
|
|
|
|
|
|
|
Net recoveries (losses) from loan resolutions and write-downs (4)
|
|
|
(4
|
)
|
|
1
|
|
|
(4
|
)
|
|
(7
|
)
|
|
Balance, September 30, 2014
|
|
$
|
114
|
|
|
2,772
|
|
|
196
|
|
|
3,082
|
|
|
|
|
|
|
(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
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. Also includes foreign exchange
adjustments related to underlying principal for which the
nonaccretable difference was established.
|
|
|
|
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
|
|
|
132
|
|
|
|
Accretion into interest income (1)
|
|
|
(11,184
|
)
|
|
|
Accretion into noninterest income due to sales (2)
|
|
|
(393
|
)
|
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
6,325
|
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
12,065
|
|
|
Balance, December 31, 2013
|
|
|
17,392
|
|
|
|
Addition of accretable yield due to acquisitions
|
|
|
-
|
|
|
|
Accretion into interest income (1)
|
|
|
(1,183
|
)
|
|
|
Accretion into noninterest income due to sales (2)
|
|
|
(35
|
)
|
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
2,089
|
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
(284
|
)
|
|
Balance, September 30, 2014
|
|
$
|
17,979
|
|
|
|
|
|
|
|
|
Balance, June 30, 2014
|
|
$
|
18,418
|
|
|
|
Addition of accretable yield due to acquisitions
|
|
|
-
|
|
|
|
Accretion into interest income (1)
|
|
|
(446
|
)
|
|
|
Accretion into noninterest income due to sales (2)
|
|
|
-
|
|
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
13
|
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
(6
|
)
|
|
Balance, September 30, 2014
|
|
$
|
17,979
|
|
|
|
|
|
|
|
|
(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 loan losses
|
|
|
1,641
|
|
|
-
|
|
107
|
|
|
1,748
|
|
|
|
Charge-offs
|
|
|
(1,615
|
)
|
|
-
|
|
(103
|
)
|
|
(1,718
|
)
|
|
Balance, December 31, 2013
|
|
|
26
|
|
|
-
|
|
4
|
|
|
30
|
|
|
|
Reversal of provision for loan losses
|
|
|
(15
|
)
|
|
-
|
|
-
|
|
|
(15
|
)
|
|
|
Charge-offs
|
|
|
(3
|
)
|
|
-
|
|
(1
|
)
|
|
(4
|
)
|
|
Balance, September 30, 2014
|
|
$
|
8
|
|
|
-
|
|
3
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2014
|
|
$
|
5
|
|
|
-
|
|
3
|
|
|
8
|
|
|
|
Provision (reversal of provision) for loan losses
|
|
|
4
|
|
|
-
|
|
(1
|
)
|
|
3
|
|
|
|
Recoveries (charge-offs)
|
|
|
(1
|
)
|
|
-
|
|
1
|
|
|
-
|
|
|
Balance, September 30, 2014
|
|
$
|
8
|
|
|
-
|
|
3
|
|
|
11
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
|
|
|
|
September 30, 2014
|
|
|
|
|
|
|
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
|
|
$
|
18,654
|
|
78
|
%
|
|
$
|
15,327
|
|
63
|
%
|
|
$
|
11,846
|
|
57
|
%
|
|
Florida
|
|
|
2,173
|
|
90
|
|
|
|
1,608
|
|
62
|
|
|
|
2,459
|
|
73
|
|
|
New Jersey
|
|
|
913
|
|
83
|
|
|
|
789
|
|
65
|
|
|
|
1,580
|
|
71
|
|
|
New York
|
|
|
573
|
|
78
|
|
|
|
529
|
|
65
|
|
|
|
731
|
|
68
|
|
|
Texas
|
|
|
241
|
|
64
|
|
|
|
213
|
|
56
|
|
|
|
960
|
|
51
|
|
|
Other states
|
|
|
4,363
|
|
83
|
|
|
|
3,591
|
|
66
|
|
|
|
6,756
|
|
69
|
|
|
|
Total Pick-a-Pay loans
|
|
$
|
26,917
|
|
|
|
|
$
|
22,057
|
|
|
|
|
$
|
24,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2014.
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Wachovia commercial and industrial, commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and foreign PCI loans (1)
|
|
$
|
1,465
|
|
1,499
|
|
1,720
|
|
2,013
|
|
2,342
|
|
|
|
Total commercial
|
|
|
1,465
|
|
1,499
|
|
1,720
|
|
2,013
|
|
2,342
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pick-a-Pay mortgage (1)
|
|
|
46,389
|
|
47,965
|
|
49,533
|
|
50,971
|
|
52,805
|
|
|
Liquidating home equity
|
|
|
3,083
|
|
3,290
|
|
3,505
|
|
3,695
|
|
3,911
|
|
|
Legacy Wells Fargo Financial indirect auto
|
|
|
54
|
|
85
|
|
132
|
|
207
|
|
299
|
|
|
Legacy Wells Fargo Financial debt consolidation
|
|
|
11,781
|
|
12,169
|
|
12,545
|
|
12,893
|
|
13,281
|
|
|
Education Finance - government guaranteed (2)
|
|
|
-
|
|
-
|
|
10,204
|
|
10,712
|
|
11,094
|
|
|
Legacy Wachovia other PCI loans (1)
|
|
|
320
|
|
336
|
|
355
|
|
375
|
|
406
|
|
|
|
Total consumer
|
|
|
61,627
|
|
63,845
|
|
76,274
|
|
78,853
|
|
81,796
|
|
|
|
|
Total non-strategic and liquidating loan portfolios
|
|
$
|
63,092
|
|
65,344
|
|
77,994
|
|
80,866
|
|
84,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Net of purchase accounting adjustments related to PCI loans.
|
|
(2)
|
The change from March 31, 2014, was predominantly due to the
transfer of government guaranteed student loans to loans held for
sale.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended Sept. 30,
|
|
Nine months ended Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Balance, beginning of period
|
|
$
|
13,834
|
|
|
16,618
|
|
|
14,971
|
|
|
17,477
|
|
|
Provision for credit losses
|
|
|
368
|
|
|
75
|
|
|
910
|
|
|
1,946
|
|
|
Interest income on certain impaired loans (1)
|
|
|
(52
|
)
|
|
(63
|
)
|
|
(163
|
)
|
|
(209
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(154
|
)
|
|
(151
|
)
|
|
(451
|
)
|
|
(516
|
)
|
|
|
|
Real estate mortgage
|
|
|
(12
|
)
|
|
(44
|
)
|
|
(47
|
)
|
|
(153
|
)
|
|
|
|
Real estate construction
|
|
|
(3
|
)
|
|
(6
|
)
|
|
(7
|
)
|
|
(18
|
)
|
|
|
|
Lease financing
|
|
|
(5
|
)
|
|
(3
|
)
|
|
(12
|
)
|
|
(30
|
)
|
|
|
|
Foreign
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(16
|
)
|
|
(23
|
)
|
|
|
|
|
Total commercial
|
|
|
(177
|
)
|
|
(208
|
)
|
|
(533
|
)
|
|
(740
|
)
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(167
|
)
|
|
(303
|
)
|
|
(583
|
)
|
|
(1,170
|
)
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(201
|
)
|
|
(345
|
)
|
|
(670
|
)
|
|
(1,287
|
)
|
|
|
|
Credit card
|
|
|
(236
|
)
|
|
(239
|
)
|
|
(769
|
)
|
|
(771
|
)
|
|
|
|
Automobile
|
|
|
(192
|
)
|
|
(153
|
)
|
|
(515
|
)
|
|
(443
|
)
|
|
|
|
Other revolving credit and installment
|
|
|
(160
|
)
|
|
(191
|
)
|
|
(508
|
)
|
|
(558
|
)
|
|
|
|
|
Total consumer
|
|
|
(956
|
)
|
|
(1,231
|
)
|
|
(3,045
|
)
|
|
(4,229
|
)
|
|
|
|
|
|
Total loan charge-offs
|
|
|
(1,133
|
)
|
|
(1,439
|
)
|
|
(3,578
|
)
|
|
(4,969
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
89
|
|
|
93
|
|
|
287
|
|
|
288
|
|
|
|
|
Real estate mortgage
|
|
|
49
|
|
|
64
|
|
|
116
|
|
|
149
|
|
|
|
|
Real estate construction
|
|
|
61
|
|
|
23
|
|
|
108
|
|
|
114
|
|
|
|
|
Lease financing
|
|
|
1
|
|
|
3
|
|
|
6
|
|
|
13
|
|
|
|
|
Foreign
|
|
|
1
|
|
|
6
|
|
|
4
|
|
|
23
|
|
|
|
|
|
Total commercial
|
|
|
201
|
|
|
189
|
|
|
521
|
|
|
587
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
53
|
|
|
61
|
|
|
162
|
|
|
171
|
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
61
|
|
|
70
|
|
|
178
|
|
|
204
|
|
|
|
|
Credit card
|
|
|
35
|
|
|
32
|
|
|
126
|
|
|
95
|
|
|
|
|
Automobile
|
|
|
80
|
|
|
75
|
|
|
267
|
|
|
247
|
|
|
|
|
Other revolving credit and installment
|
|
|
35
|
|
|
37
|
|
|
114
|
|
|
119
|
|
|
|
|
|
Total consumer
|
|
|
264
|
|
|
275
|
|
|
847
|
|
|
836
|
|
|
|
|
|
|
Total loan recoveries
|
|
|
465
|
|
|
464
|
|
|
1,368
|
|
|
1,423
|
|
|
|
|
|
|
|
Net loan charge-offs (2)
|
|
|
(668
|
)
|
|
(975
|
)
|
|
(2,210
|
)
|
|
(3,546
|
)
|
|
Allowances related to business combinations/other
|
|
|
(1
|
)
|
|
(8
|
)
|
|
(27
|
)
|
|
(21
|
)
|
|
Balance, end of period
|
|
$
|
13,481
|
|
|
15,647
|
|
|
13,481
|
|
|
15,647
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
12,681
|
|
|
15,159
|
|
|
12,681
|
|
|
15,159
|
|
|
|
Allowance for unfunded credit commitments
|
|
|
800
|
|
|
488
|
|
|
800
|
|
|
488
|
|
|
|
|
Allowance for credit losses (3)
|
|
$
|
13,481
|
|
|
15,647
|
|
|
13,481
|
|
|
15,647
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans (2)
|
|
|
0.32
|
%
|
|
0.48
|
|
|
0.36
|
|
|
0.59
|
|
|
Allowance for loan losses as a percentage of total loans (3)(4)
|
|
|
1.51
|
|
|
1.87
|
|
|
1.51
|
|
|
1.87
|
|
|
Allowance for credit losses as a percentage of total loans (3)(4)
|
|
|
1.61
|
|
|
1.93
|
|
|
1.61
|
|
|
1.93
|
|
|
|
|
(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)
|
For PCI loans, charge-offs are only recorded to the extent that
losses exceed the purchase accounting estimates.
|
|
(3)
|
The allowance for credit losses includes $11 million and $22 million
at September 30, 2014 and 2013, respectively, related to PCI loans
acquired from Wachovia. Loans acquired from Wachovia are included in
total loans net of related purchase accounting net write-downs.
|
|
(4)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Balance, beginning of quarter
|
|
$
|
13,834
|
|
|
14,414
|
|
|
14,971
|
|
|
15,647
|
|
|
16,618
|
|
|
Provision for credit losses
|
|
|
368
|
|
|
217
|
|
|
325
|
|
|
363
|
|
|
75
|
|
|
Interest income on certain impaired loans (1)
|
|
|
(52
|
)
|
|
(55
|
)
|
|
(56
|
)
|
|
(55
|
)
|
|
(63
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(154
|
)
|
|
(139
|
)
|
|
(158
|
)
|
|
(199
|
)
|
|
(151
|
)
|
|
|
|
Real estate mortgage
|
|
|
(12
|
)
|
|
(15
|
)
|
|
(20
|
)
|
|
(37
|
)
|
|
(44
|
)
|
|
|
|
Real estate construction
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
(6
|
)
|
|
|
|
Lease financing
|
|
|
(5
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
|
|
Foreign
|
|
|
(3
|
)
|
|
(8
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
|
|
|
Total commercial
|
|
|
(177
|
)
|
|
(168
|
)
|
|
(188
|
)
|
|
(253
|
)
|
|
(208
|
)
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(167
|
)
|
|
(193
|
)
|
|
(223
|
)
|
|
(269
|
)
|
|
(303
|
)
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(201
|
)
|
|
(220
|
)
|
|
(249
|
)
|
|
(291
|
)
|
|
(345
|
)
|
|
|
|
Credit card
|
|
|
(236
|
)
|
|
(266
|
)
|
|
(267
|
)
|
|
(251
|
)
|
|
(239
|
)
|
|
|
|
Automobile
|
|
|
(192
|
)
|
|
(143
|
)
|
|
(180
|
)
|
|
(182
|
)
|
|
(153
|
)
|
|
|
|
Other revolving credit and installment
|
|
|
(160
|
)
|
|
(171
|
)
|
|
(177
|
)
|
|
(195
|
)
|
|
(191
|
)
|
|
|
|
|
Total consumer
|
|
|
(956
|
)
|
|
(993
|
)
|
|
(1,096
|
)
|
|
(1,188
|
)
|
|
(1,231
|
)
|
|
|
|
|
|
Total loan charge-offs
|
|
|
(1,133
|
)
|
|
(1,161
|
)
|
|
(1,284
|
)
|
|
(1,441
|
)
|
|
(1,439
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
89
|
|
|
85
|
|
|
113
|
|
|
92
|
|
|
93
|
|
|
|
|
Real estate mortgage
|
|
|
49
|
|
|
25
|
|
|
42
|
|
|
78
|
|
|
64
|
|
|
|
|
Real estate construction
|
|
|
61
|
|
|
23
|
|
|
24
|
|
|
23
|
|
|
23
|
|
|
|
|
Lease financing
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
|
|
Foreign
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
6
|
|
|
|
|
|
Total commercial
|
|
|
201
|
|
|
137
|
|
|
183
|
|
|
200
|
|
|
189
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
53
|
|
|
56
|
|
|
53
|
|
|
74
|
|
|
61
|
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
61
|
|
|
60
|
|
|
57
|
|
|
65
|
|
|
70
|
|
|
|
|
Credit card
|
|
|
35
|
|
|
55
|
|
|
36
|
|
|
31
|
|
|
32
|
|
|
|
|
Automobile
|
|
|
80
|
|
|
97
|
|
|
90
|
|
|
74
|
|
|
75
|
|
|
|
|
Other revolving credit and installment
|
|
|
35
|
|
|
39
|
|
|
40
|
|
|
34
|
|
|
37
|
|
|
|
|
|
Total consumer
|
|
|
264
|
|
|
307
|
|
|
276
|
|
|
278
|
|
|
275
|
|
|
|
|
|
|
Total loan recoveries
|
|
|
465
|
|
|
444
|
|
|
459
|
|
|
478
|
|
|
464
|
|
|
|
|
|
|
|
Net loan charge-offs
|
|
|
(668
|
)
|
|
(717
|
)
|
|
(825
|
)
|
|
(963
|
)
|
|
(975
|
)
|
|
Allowances related to business combinations/other
|
|
|
(1
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|
(8
|
)
|
|
Balance, end of quarter
|
|
$
|
13,481
|
|
|
13,834
|
|
|
14,414
|
|
|
14,971
|
|
|
15,647
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
12,681
|
|
|
13,101
|
|
|
13,695
|
|
|
14,502
|
|
|
15,159
|
|
|
|
Allowance for unfunded credit commitments
|
|
|
800
|
|
|
733
|
|
|
719
|
|
|
469
|
|
|
488
|
|
|
|
|
Allowance for credit losses
|
|
$
|
13,481
|
|
|
13,834
|
|
|
14,414
|
|
|
14,971
|
|
|
15,647
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.32
|
%
|
|
0.35
|
|
|
0.41
|
|
|
0.47
|
|
|
0.48
|
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (2)
|
|
|
1.51
|
|
|
1.58
|
|
|
1.66
|
|
|
1.76
|
|
|
1.87
|
|
|
|
Nonaccrual loans
|
|
|
95
|
|
|
94
|
|
|
93
|
|
|
93
|
|
|
90
|
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
72
|
|
|
72
|
|
|
73
|
|
|
74
|
|
|
73
|
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans (2)
|
|
|
1.61
|
|
|
1.67
|
|
|
1.74
|
|
|
1.82
|
|
|
1.93
|
|
|
|
Nonaccrual loans
|
|
|
101
|
|
|
99
|
|
|
98
|
|
|
96
|
|
|
93
|
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
76
|
|
|
77
|
|
|
77
|
|
|
76
|
|
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company
|
|
FIVE QUARTER RISK-BASED CAPITAL COMPONENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under Basel III
|
|
|
|
|
|
|
|
|
|
|
(General Approach) (1)
|
|
|
Under Basel I
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in billions)
|
|
|
|
2014
|
|
2014
|
|
2014
|
|
|
2013
|
|
2013
|
|
Total equity
|
|
|
$
|
183.0
|
|
|
181.5
|
|
|
176.5
|
|
|
|
171.0
|
|
|
168.8
|
|
|
Noncontrolling interests
|
|
|
|
(0.5
|
)
|
|
(0.6
|
)
|
|
(0.8
|
)
|
|
|
(0.9
|
)
|
|
(1.6
|
)
|
|
|
Total Wells Fargo stockholders' equity
|
|
|
|
182.5
|
|
|
180.9
|
|
|
175.7
|
|
|
|
170.1
|
|
|
167.2
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
(18.0
|
)
|
|
(17.2
|
)
|
|
(15.2
|
)
|
|
|
(15.2
|
)
|
|
(14.3
|
)
|
|
|
Cumulative other comprehensive income (2)
|
|
|
|
(2.5
|
)
|
|
(3.2
|
)
|
|
(2.2
|
)
|
|
|
(1.4
|
)
|
|
(2.2
|
)
|
|
|
Goodwill and other intangible assets (2)(3)
|
|
|
|
(25.5
|
)
|
|
(25.6
|
)
|
|
(25.6
|
)
|
|
|
(29.6
|
)
|
|
(29.8
|
)
|
|
|
Investment in certain subsidiaries and other
|
|
|
|
-
|
|
|
(0.1
|
)
|
|
-
|
|
|
|
(0.4
|
)
|
|
(0.6
|
)
|
|
Common Equity Tier 1 (1)(4)
|
|
(A)
|
|
136.5
|
|
|
134.8
|
|
|
132.7
|
|
|
|
123.5
|
|
|
120.3
|
|
|
Preferred stock
|
|
|
|
18.0
|
|
|
17.2
|
|
|
15.2
|
|
|
|
15.2
|
|
|
14.3
|
|
|
Qualifying hybrid securities and noncontrolling interests
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
2.0
|
|
|
2.9
|
|
|
Other
|
|
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
|
-
|
|
|
-
|
|
|
Total Tier 1 capital
|
|
|
|
154.1
|
|
|
151.7
|
|
|
147.6
|
|
|
|
140.7
|
|
|
137.5
|
|
|
Long-term debt and other instruments qualifying as Tier 2
|
|
|
|
23.7
|
|
|
24.0
|
|
|
21.7
|
|
|
|
20.5
|
|
|
18.9
|
|
|
Qualifying allowance for credit losses
|
|
|
|
13.5
|
|
|
13.8
|
|
|
14.1
|
|
|
|
14.3
|
|
|
14.3
|
|
|
Other
|
|
|
|
(0.2
|
)
|
|
-
|
|
|
0.2
|
|
|
|
0.7
|
|
|
0.6
|
|
|
Total Tier 2 capital
|
|
|
|
37.0
|
|
|
37.8
|
|
|
36.0
|
|
|
|
35.5
|
|
|
33.8
|
|
|
Total qualifying capital
|
|
(B)
|
$
|
191.1
|
|
|
189.5
|
|
|
183.6
|
|
|
|
176.2
|
|
|
171.3
|
|
|
Basel III Risk-Weighted Assets (RWAs) (5)(6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit risk
|
|
|
$
|
1,171.7
|
|
|
1,145.7
|
|
|
1,120.3
|
|
|
|
|
|
|
|
|
Market risk
|
|
|
|
51.3
|
|
|
46.8
|
|
|
48.1
|
|
|
|
|
|
|
|
Basel I RWAs (5)(6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit risk
|
|
|
|
|
|
|
|
|
|
|
1,105.2
|
|
|
1,099.2
|
|
|
|
Market risk
|
|
|
|
|
|
|
|
|
|
|
36.3
|
|
|
35.9
|
|
|
Total Basel III / Basel I RWAs
|
|
(C)
|
$
|
1,223.0
|
|
|
1,192.5
|
|
|
1,168.4
|
|
|
|
1,141.5
|
|
|
1,135.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (6):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 to total RWAs
|
|
(A)/(C)
|
|
11.16
|
%
|
|
11.31
|
|
|
11.36
|
|
|
|
10.82
|
|
|
10.60
|
|
|
|
Total capital to total RWAs
|
|
(B)/(C)
|
|
15.63
|
|
|
15.89
|
|
|
15.71
|
|
|
|
15.43
|
|
|
15.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Basel III revises the definition of capital, increases minimum
capital ratios, and introduces a minimum Common Equity Tier 1 (CET1)
ratio. These changes are being fully phased in effective January 1,
2014 through the end of 2021 and the capital ratios will be
determined using Basel III (General Approach) RWAs during 2014.
|
|
(2)
|
Under transition provisions to Basel III, cumulative other
comprehensive income (previously deducted under Basel I) is included
in CET1 over a specified phase-in period. In addition, certain
intangible assets includable in CET1 are phased out over a specified
period.
|
|
(3)
|
Goodwill and other intangible assets are net of any associated
deferred tax liabilities.
|
|
(4)
|
CET1 (formerly Tier 1 common equity under Basel I) is a non-GAAP
financial measure that is used by investors, analysts and bank
regulatory agencies to assess the capital position of financial
services companies. Management reviews CET1 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.
|
|
(5)
|
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 resulting weighted values from each of the risk
categories are aggregated for determining total RWAs.
|
|
(6)
|
The Company's September 30, 2014, RWAs and capital ratios are
preliminary.
|
|
|
|
COMMON EQUITY TIER 1 UNDER BASEL III (ADVANCED APPROACH, FULLY
PHASED-IN) (1)(2)
|
|
|
|
(in billions)
|
|
|
|
Sept. 30, 2014
|
|
Common Equity Tier 1 (transition amount) under Basel III
|
|
|
|
$
|
136.5
|
|
|
|
Adjustments from transition amount to fully phased-in under Basel
III (3):
|
|
|
|
|
|
|
|
Cumulative other comprehensive income
|
|
|
|
2.5
|
|
|
|
|
Other
|
|
|
|
(2.5
|
)
|
|
|
Total adjustments
|
|
|
|
|
0
|
|
|
|
|
Common Equity Tier 1 (fully phased-in) under Basel III
|
|
(C)
|
|
$
|
136.5
|
|
|
Total RWAs anticipated under Basel III (4)
|
|
(D)
|
|
$
|
1,305.7
|
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Advanced Approach, fully phased-in)
|
|
(C)/(D)
|
|
|
10.46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
CET1 is a non-GAAP financial measure that is used by investors,
analysts and bank regulatory agencies to assess the capital position
of financial services companies. Management reviews CET1 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 CET1 and RWA are estimated based on the Basel III
capital rules adopted July 2, 2013, by the FRB. The rules establish
a new comprehensive capital framework for U.S. banking organizations
that implement the Basel III capital framework and certain
provisions of the Dodd-Frank Act. The rules are being phased in
effective January 1, 2014 through the end of 2021.
|
|
(3)
|
Assumes cumulative other comprehensive income is fully phased in and
certain other intangible assets are fully phased out under Basel III
capital rules.
|
|
(4)
|
The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach intended to replace Basel I,
and the Advanced Approach applicable to certain institutions. Under
the final rules, we will be subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. While the amount
of RWAs determined under the Standardized and Advanced Approaches
has been converging, management’s estimate of RWAs as of September
30, 2014, is based on the Advanced Approach, which is currently
estimated to be higher than RWAs under the Standardized Approach,
resulting in a lower CET1 compared with the Standardized Approach.
Basel III capital rules adopted by the Federal Reserve Board
incorporate different classification of assets, with risk weights
based on Wells Fargo's internal models, along with adjustments to
address a combination of credit/counterparty, operational and market
risks, and other Basel III elements.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community
|
|
Wholesale
|
|
Wealth, Brokerage
|
|
|
|
|
|
Consolidated
|
|
(income/expense in millions,
|
|
|
Banking
|
|
Banking
|
|
and Retirement
|
|
Other (2)
|
|
Company
|
|
average balances in billions)
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Quarter ended Sept. 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
$
|
7,472
|
|
7,244
|
|
3,007
|
|
|
3,059
|
|
|
790
|
|
|
749
|
|
|
(328
|
)
|
|
(304
|
)
|
|
10,941
|
|
10,748
|
|
Provision (reversal of provision)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
|
465
|
|
240
|
|
(85
|
)
|
|
(144
|
)
|
|
(25
|
)
|
|
(38
|
)
|
|
13
|
|
|
17
|
|
|
368
|
|
75
|
|
Noninterest income
|
|
|
5,356
|
|
5,000
|
|
2,895
|
|
|
2,812
|
|
|
2,763
|
|
|
2,558
|
|
|
(742
|
)
|
|
(640
|
)
|
|
10,272
|
|
9,730
|
|
Noninterest expense
|
|
|
7,051
|
|
7,060
|
|
3,250
|
|
|
3,084
|
|
|
2,690
|
|
|
2,619
|
|
|
(743
|
)
|
|
(661
|
)
|
|
12,248
|
|
12,102
|
|
Income (loss) before income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax expense (benefit)
|
|
|
5,312
|
|
4,944
|
|
2,737
|
|
|
2,931
|
|
|
888
|
|
|
726
|
|
|
(340
|
)
|
|
(300
|
)
|
|
8,597
|
|
8,301
|
|
Income tax expense (benefit)
|
|
|
1,609
|
|
1,505
|
|
824
|
|
|
952
|
|
|
338
|
|
|
275
|
|
|
(129
|
)
|
|
(114
|
)
|
|
2,642
|
|
2,618
|
|
Net income (loss) before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
3,703
|
|
3,439
|
|
1,913
|
|
|
1,979
|
|
|
550
|
|
|
451
|
|
|
(211
|
)
|
|
(186
|
)
|
|
5,955
|
|
5,683
|
|
Less: Net income (loss) from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
233
|
|
98
|
|
(7
|
)
|
|
6
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
226
|
|
105
|
|
Net income (loss) (4)
|
|
$
|
3,470
|
|
3,341
|
|
1,920
|
|
|
1,973
|
|
|
550
|
|
|
450
|
|
|
(211
|
)
|
|
(186
|
)
|
|
5,729
|
|
5,578
|
|
Average loans (5)
|
|
$
|
498.6
|
|
497.7
|
|
316.5
|
|
|
287.7
|
|
|
52.6
|
|
|
46.7
|
|
|
(34.5
|
)
|
|
(30.0
|
)
|
|
833.2
|
|
802.1
|
|
Average assets (5)
|
|
|
950.2
|
|
836.6
|
|
553.0
|
|
|
498.1
|
|
|
188.8
|
|
|
180.8
|
|
|
(74.1
|
)
|
|
(68.5
|
)
|
|
1,617.9
|
|
1,447.0
|
|
Average core deposits
|
|
|
646.9
|
|
618.2
|
|
278.4
|
|
|
235.3
|
|
|
153.6
|
|
|
150.6
|
|
|
(66.7
|
)
|
|
(63.8
|
)
|
|
1,012.2
|
|
940.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended Sep. 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
$
|
22,133
|
|
21,614
|
|
8,851
|
|
|
9,165
|
|
|
2,333
|
|
|
2,118
|
|
|
(970
|
)
|
|
(900
|
)
|
|
32,347
|
|
31,997
|
|
Provision (reversal of provision)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for credit losses
|
|
|
1,163
|
|
2,265
|
|
(227
|
)
|
|
(320
|
)
|
|
(58
|
)
|
|
(5
|
)
|
|
32
|
|
|
6
|
|
|
910
|
|
1,946
|
|
Noninterest income
|
|
|
15,894
|
|
16,471
|
|
8,577
|
|
|
8,927
|
|
|
8,238
|
|
|
7,647
|
|
|
(2,152
|
)
|
|
(1,927
|
)
|
|
30,557
|
|
31,118
|
|
Noninterest expense
|
|
|
20,845
|
|
21,650
|
|
9,668
|
|
|
9,358
|
|
|
8,096
|
|
|
7,800
|
|
|
(2,219
|
)
|
|
(2,051
|
)
|
|
36,390
|
|
36,757
|
|
Income (loss) before income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
tax expense (benefit)
|
|
|
16,019
|
|
14,170
|
|
7,987
|
|
|
9,054
|
|
|
2,533
|
|
|
1,970
|
|
|
(935
|
)
|
|
(782
|
)
|
|
25,604
|
|
24,412
|
|
Income tax expense (benefit)
|
|
|
4,805
|
|
4,426
|
|
2,376
|
|
|
3,024
|
|
|
962
|
|
|
748
|
|
|
(355
|
)
|
|
(297
|
)
|
|
7,788
|
|
7,901
|
|
Net income (loss) before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
11,214
|
|
9,744
|
|
5,611
|
|
|
6,030
|
|
|
1,571
|
|
|
1,222
|
|
|
(580
|
)
|
|
(485
|
)
|
|
17,816
|
|
16,511
|
|
Less: Net income (loss) from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
469
|
|
234
|
|
(3
|
)
|
|
8
|
|
|
2
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
468
|
|
243
|
|
Net income (loss) (4)
|
|
$
|
10,745
|
|
9,510
|
|
5,614
|
|
|
6,022
|
|
|
1,569
|
|
|
1,221
|
|
|
(580
|
)
|
|
(485
|
)
|
|
17,348
|
|
16,268
|
|
Average loans (5)
|
|
$
|
503.0
|
|
498.3
|
|
308.9
|
|
|
285.3
|
|
|
51.2
|
|
|
45.3
|
|
|
(33.7
|
)
|
|
(29.8
|
)
|
|
829.4
|
|
799.1
|
|
Average assets (5)
|
|
|
920.5
|
|
819.2
|
|
534.4
|
|
|
496.9
|
|
|
189.0
|
|
|
179.4
|
|
|
(74.3
|
)
|
|
(69.7
|
)
|
|
1,569.6
|
|
1,425.8
|
|
Average core deposits
|
|
|
637.8
|
|
620.1
|
|
267.8
|
|
|
230.0
|
|
|
154.2
|
|
|
148.8
|
|
|
(67.1
|
)
|
|
(64.8
|
)
|
|
992.7
|
|
934.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
(2)
|
Includes corporate items not specific to a business segment and the
elimination of certain items that are included in more than one
business segment, substantially all of which represents services for
wealth management customers provided in Community Banking stores.
|
|
(3)
|
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.
|
|
(4)
|
Represents segment net income (loss) for Community Banking;
Wholesale Banking; and Wealth, Brokerage and Retirement segments and
Wells Fargo net income for the consolidated company.
|
|
(5)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(income/expense in millions, average balances in billions)
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
$
|
7,472
|
|
|
7,386
|
|
|
7,275
|
|
|
7,225
|
|
|
7,244
|
|
|
Provision for credit losses
|
|
465
|
|
|
279
|
|
|
419
|
|
|
490
|
|
|
240
|
|
|
Noninterest income
|
|
5,356
|
|
|
5,220
|
|
|
5,318
|
|
|
5,029
|
|
|
5,000
|
|
|
Noninterest expense
|
|
7,051
|
|
|
7,020
|
|
|
6,774
|
|
|
7,073
|
|
|
7,060
|
|
|
Income before income tax expense
|
|
5,312
|
|
|
5,307
|
|
|
5,400
|
|
|
4,691
|
|
|
4,944
|
|
|
Income tax expense
|
|
1,609
|
|
|
1,820
|
|
|
1,376
|
|
|
1,373
|
|
|
1,505
|
|
|
Net income before noncontrolling interests
|
|
3,703
|
|
|
3,487
|
|
|
4,024
|
|
|
3,318
|
|
|
3,439
|
|
|
Less: Net income from noncontrolling interests
|
|
233
|
|
|
56
|
|
|
180
|
|
|
96
|
|
|
98
|
|
|
Segment net income
|
$
|
3,470
|
|
|
3,431
|
|
|
3,844
|
|
|
3,222
|
|
|
3,341
|
|
|
Average loans
|
$
|
498.6
|
|
|
505.4
|
|
|
505.0
|
|
|
502.5
|
|
|
497.7
|
|
|
Average assets
|
|
950.2
|
|
|
918.1
|
|
|
892.6
|
|
|
883.6
|
|
|
836.6
|
|
|
Average core deposits
|
|
646.9
|
|
|
639.8
|
|
|
626.5
|
|
|
620.2
|
|
|
618.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
$
|
3,007
|
|
|
2,953
|
|
|
2,891
|
|
|
3,133
|
|
|
3,059
|
|
|
Reversal of provision for credit losses
|
|
(85
|
)
|
|
(49
|
)
|
|
(93
|
)
|
|
(125
|
)
|
|
(144
|
)
|
|
Noninterest income
|
|
2,895
|
|
|
2,993
|
|
|
2,689
|
|
|
2,839
|
|
|
2,812
|
|
|
Noninterest expense
|
|
3,250
|
|
|
3,203
|
|
|
3,215
|
|
|
3,020
|
|
|
3,084
|
|
|
Income before income tax expense
|
|
2,737
|
|
|
2,792
|
|
|
2,458
|
|
|
3,077
|
|
|
2,931
|
|
|
Income tax expense
|
|
824
|
|
|
838
|
|
|
714
|
|
|
960
|
|
|
952
|
|
|
Net income before noncontrolling interests
|
|
1,913
|
|
|
1,954
|
|
|
1,744
|
|
|
2,117
|
|
|
1,979
|
|
|
Less: Net income (loss) from noncontrolling interests
|
|
(7
|
)
|
|
2
|
|
|
2
|
|
|
6
|
|
|
6
|
|
|
Segment net income
|
$
|
1,920
|
|
|
1,952
|
|
|
1,742
|
|
|
2,111
|
|
|
1,973
|
|
|
Average loans (4)
|
$
|
316.5
|
|
|
308.1
|
|
|
301.9
|
|
|
294.6
|
|
|
287.7
|
|
|
Average assets (4)
|
|
553.0
|
|
|
532.4
|
|
|
517.4
|
|
|
509.0
|
|
|
498.1
|
|
|
Average core deposits
|
|
278.4
|
|
|
265.8
|
|
|
259.0
|
|
|
258.5
|
|
|
235.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEALTH, BROKERAGE AND RETIREMENT
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
$
|
790
|
|
|
775
|
|
|
768
|
|
|
770
|
|
|
749
|
|
|
Reversal of provision for credit losses
|
|
(25
|
)
|
|
(25
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|
(38
|
)
|
|
Noninterest income
|
|
2,763
|
|
|
2,775
|
|
|
2,700
|
|
|
2,668
|
|
|
2,558
|
|
|
Noninterest expense
|
|
2,690
|
|
|
2,695
|
|
|
2,711
|
|
|
2,655
|
|
|
2,619
|
|
|
Income before income tax expense
|
|
888
|
|
|
880
|
|
|
765
|
|
|
794
|
|
|
726
|
|
|
Income tax expense
|
|
338
|
|
|
334
|
|
|
290
|
|
|
302
|
|
|
275
|
|
|
Net income before noncontrolling interests
|
|
550
|
|
|
546
|
|
|
475
|
|
|
492
|
|
|
451
|
|
|
Less: Net income from noncontrolling interests
|
|
-
|
|
|
2
|
|
|
-
|
|
|
1
|
|
|
1
|
|
|
Segment net income
|
$
|
550
|
|
|
544
|
|
|
475
|
|
|
491
|
|
|
450
|
|
|
Average loans
|
$
|
52.6
|
|
|
51.0
|
|
|
50.0
|
|
|
48.4
|
|
|
46.7
|
|
|
Average assets
|
|
188.8
|
|
|
187.6
|
|
|
190.6
|
|
|
185.3
|
|
|
180.8
|
|
|
Average core deposits
|
|
153.6
|
|
|
153.0
|
|
|
156.0
|
|
|
153.9
|
|
|
150.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
$
|
(328
|
)
|
|
(323
|
)
|
|
(319
|
)
|
|
(325
|
)
|
|
(304
|
)
|
|
Provision for credit losses
|
|
13
|
|
|
12
|
|
|
7
|
|
|
9
|
|
|
17
|
|
|
Noninterest income
|
|
(742
|
)
|
|
(713
|
)
|
|
(697
|
)
|
|
(674
|
)
|
|
(640
|
)
|
|
Noninterest expense
|
|
(743
|
)
|
|
(724
|
)
|
|
(752
|
)
|
|
(663
|
)
|
|
(661
|
)
|
|
Loss before income tax benefit
|
|
(340
|
)
|
|
(324
|
)
|
|
(271
|
)
|
|
(345
|
)
|
|
(300
|
)
|
|
Income tax benefit
|
|
(129
|
)
|
|
(123
|
)
|
|
(103
|
)
|
|
(131
|
)
|
|
(114
|
)
|
|
Net loss before noncontrolling interests
|
|
(211
|
)
|
|
(201
|
)
|
|
(168
|
)
|
|
(214
|
)
|
|
(186
|
)
|
|
Less: Net income from noncontrolling interests
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other net loss
|
$
|
(211
|
)
|
|
(201
|
)
|
|
(168
|
)
|
|
(214
|
)
|
|
(186
|
)
|
|
Average loans
|
$
|
(34.5
|
)
|
|
(33.5
|
)
|
|
(33.1
|
)
|
|
(32.2
|
)
|
|
(30.0
|
)
|
|
Average assets
|
|
(74.1
|
)
|
|
(74.1
|
)
|
|
(74.7
|
)
|
|
(72.1
|
)
|
|
(68.5
|
)
|
|
Average core deposits
|
|
(66.7
|
)
|
|
(66.9
|
)
|
|
(67.7
|
)
|
|
(66.8
|
)
|
|
(63.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
$
|
10,941
|
|
|
10,791
|
|
|
10,615
|
|
|
10,803
|
|
|
10,748
|
|
|
Provision for credit losses
|
|
368
|
|
|
217
|
|
|
325
|
|
|
363
|
|
|
75
|
|
|
Noninterest income
|
|
10,272
|
|
|
10,275
|
|
|
10,010
|
|
|
9,862
|
|
|
9,730
|
|
|
Noninterest expense
|
|
12,248
|
|
|
12,194
|
|
|
11,948
|
|
|
12,085
|
|
|
12,102
|
|
|
Income before income tax expense
|
|
8,597
|
|
|
8,655
|
|
|
8,352
|
|
|
8,217
|
|
|
8,301
|
|
|
Income tax expense
|
|
2,642
|
|
|
2,869
|
|
|
2,277
|
|
|
2,504
|
|
|
2,618
|
|
|
Net income before noncontrolling interests
|
|
5,955
|
|
|
5,786
|
|
|
6,075
|
|
|
5,713
|
|
|
5,683
|
|
|
Less: Net income from noncontrolling interests
|
|
226
|
|
|
60
|
|
|
182
|
|
|
103
|
|
|
105
|
|
|
Wells Fargo net income
|
$
|
5,729
|
|
|
5,726
|
|
|
5,893
|
|
|
5,610
|
|
|
5,578
|
|
|
Average loans (4)
|
$
|
833.2
|
|
|
831.0
|
|
|
823.8
|
|
|
813.3
|
|
|
802.1
|
|
|
Average assets (4)
|
|
1,617.9
|
|
|
1,564.0
|
|
|
1,525.9
|
|
|
1,505.8
|
|
|
1,447.0
|
|
|
Average core deposits
|
|
1,012.2
|
|
|
991.7
|
|
|
973.8
|
|
|
965.8
|
|
|
940.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
|
(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 corporate items not specific to a business segment and the
elimination of certain items that are included in more than one
business segment, substantially all of which represents products and
services for wealth management customers provided in Community
Banking stores.
|
|
(4)
|
Financial information for certain periods prior to 2014 was
revised to reflect our determination that certain factoring
arrangements did not qualify as loans. See footnote (1) to the
Summary Financial Data table for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
$
|
13,900
|
|
|
14,953
|
|
|
15,580
|
|
|
14,501
|
|
|
14,185
|
|
|
|
Servicing from securitizations or asset transfers
|
|
|
340
|
|
|
271
|
|
|
289
|
|
|
520
|
|
|
954
|
|
|
|
|
Net additions
|
|
|
340
|
|
|
271
|
|
|
289
|
|
|
520
|
|
|
954
|
|
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (1)
|
|
|
251
|
|
|
(876
|
)
|
|
(509
|
)
|
|
1,048
|
|
|
61
|
|
|
|
|
|
Servicing and foreclosure costs (2)
|
|
|
(4
|
)
|
|
23
|
|
|
(34
|
)
|
|
(54
|
)
|
|
(34
|
)
|
|
|
|
|
Discount rates (3)
|
|
|
-
|
|
|
(55
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
Prepayment estimates and other (4)
|
|
|
6
|
|
|
73
|
|
|
102
|
|
|
(11
|
)
|
|
(240
|
)
|
|
|
|
|
|
Net changes in valuation model inputs or assumptions
|
|
|
253
|
|
|
(835
|
)
|
|
(441
|
)
|
|
983
|
|
|
(213
|
)
|
|
|
|
Other changes in fair value (5)
|
|
|
(462
|
)
|
|
(489
|
)
|
|
(475
|
)
|
|
(424
|
)
|
|
(425
|
)
|
|
|
|
|
Total changes in fair value
|
|
|
(209
|
)
|
|
(1,324
|
)
|
|
(916
|
)
|
|
559
|
|
|
(638
|
)
|
|
Fair value, end of quarter
|
|
$
|
14,031
|
|
|
13,900
|
|
|
14,953
|
|
|
15,580
|
|
|
14,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes prepayment speed changes as well as other valuation changes
due to changes in mortgage interest rates (such as changes in
estimated interest earned on custodial deposit balances).
|
|
(2)
|
Includes costs to service and unreimbursed foreclosure costs.
|
|
(3)
|
Reflects discount rate assumption change, excluding portion
attributable to changes in mortgage interest rates.
|
|
(4)
|
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.
|
|
(5)
|
Represents changes due to collection/realization of expected cash
flows over time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
$
|
1,196
|
|
|
1,219
|
|
|
1,229
|
|
|
1,204
|
|
|
1,176
|
|
|
|
Purchases
|
|
|
47
|
|
|
32
|
|
|
40
|
|
|
64
|
|
|
59
|
|
|
|
Servicing from securitizations or asset transfers
|
|
|
29
|
|
|
24
|
|
|
14
|
|
|
28
|
|
|
32
|
|
|
|
Amortization
|
|
|
(48
|
)
|
|
(79
|
)
|
|
(64
|
)
|
|
(67
|
)
|
|
(63
|
)
|
|
Balance, end of quarter
|
|
$
|
1,224
|
|
|
1,196
|
|
|
1,219
|
|
|
1,229
|
|
|
1,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
$
|
1,577
|
|
|
1,624
|
|
|
1,575
|
|
|
1,525
|
|
|
1,533
|
|
|
|
End of quarter
|
|
|
1,647
|
|
|
1,577
|
|
|
1,624
|
|
|
1,575
|
|
|
1,525
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
$
|
919
|
|
|
1,128
|
|
|
1,070
|
|
|
934
|
|
|
966
|
|
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
|
253
|
|
|
(835
|
)
|
|
(441
|
)
|
|
983
|
|
|
(213
|
)
|
|
|
|
Other changes in fair value (3)
|
|
|
(462
|
)
|
|
(489
|
)
|
|
(475
|
)
|
|
(424
|
)
|
|
(425
|
)
|
|
|
|
|
Total changes in fair value of MSRs carried at fair value
|
|
|
(209
|
)
|
|
(1,324
|
)
|
|
(916
|
)
|
|
559
|
|
|
(638
|
)
|
|
|
Amortization
|
|
|
(48
|
)
|
|
(79
|
)
|
|
(64
|
)
|
|
(67
|
)
|
|
(63
|
)
|
|
|
Net derivative gains (losses) from economic hedges (4)
|
|
|
17
|
|
|
1,310
|
|
|
848
|
|
|
(717
|
)
|
|
239
|
|
|
|
|
|
|
Total servicing income, net
|
|
$
|
679
|
|
|
1,035
|
|
|
938
|
|
|
709
|
|
|
504
|
|
|
Market-related valuation changes to MSRs, net of hedge results
(2)+(4)
|
|
$
|
270
|
|
|
475
|
|
|
407
|
|
|
266
|
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes contractually specified servicing fees, late charges and
other ancillary revenues.
|
|
(2)
|
Refer to the changes in fair value MSRs table 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in billions)
|
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
$
|
1,430
|
|
|
1,451
|
|
|
1,470
|
|
|
1,485
|
|
|
1,494
|
|
|
|
|
Owned loans serviced
|
|
|
342
|
|
|
341
|
|
|
337
|
|
|
338
|
|
|
344
|
|
|
|
|
Subserviced for others
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
6
|
|
|
6
|
|
|
|
|
|
Total residential servicing
|
|
|
1,777
|
|
|
1,797
|
|
|
1,812
|
|
|
1,829
|
|
|
1,844
|
|
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
440
|
|
|
429
|
|
|
424
|
|
|
419
|
|
|
416
|
|
|
|
|
Owned loans serviced
|
|
|
107
|
|
|
109
|
|
|
108
|
|
|
107
|
|
|
106
|
|
|
|
|
Subserviced for others
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
11
|
|
|
|
|
|
Total commercial servicing
|
|
|
554
|
|
|
545
|
|
|
539
|
|
|
533
|
|
|
533
|
|
|
|
|
|
|
Total managed servicing portfolio
|
|
$
|
2,331
|
|
|
2,342
|
|
|
2,351
|
|
|
2,362
|
|
|
2,377
|
|
|
Total serviced for others
|
|
$
|
1,870
|
|
|
1,880
|
|
|
1,894
|
|
|
1,904
|
|
|
1,910
|
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
0.82
|
%
|
|
0.80
|
|
|
0.85
|
|
|
0.88
|
|
|
0.82
|
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
4.47
|
|
|
4.49
|
|
|
4.51
|
|
|
4.52
|
|
|
4.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
Sept. 30,
|
|
|
June 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
(in billions)
|
|
|
2014
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
Application data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
$
|
64
|
|
|
72
|
|
60
|
|
65
|
|
87
|
|
|
Refinances as a percentage of applications
|
|
|
40
|
%
|
|
36
|
|
39
|
|
42
|
|
36
|
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
$
|
25
|
|
|
30
|
|
27
|
|
25
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
27
|
|
|
25
|
|
20
|
|
26
|
|
44
|
|
|
|
Correspondent
|
|
|
20
|
|
|
21
|
|
16
|
|
23
|
|
35
|
|
|
Other (1)
|
|
|
1
|
|
|
1
|
|
-
|
|
1
|
|
1
|
|
|
|
Total quarter-to-date
|
|
$
|
48
|
|
|
47
|
|
36
|
|
50
|
|
80
|
|
|
|
Total year-to-date
|
|
$
|
131
|
|
|
83
|
|
36
|
|
351
|
|
301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consists of home equity loans and lines.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
Nine months ended
|
|
|
|
|
|
|
|
Sept. 30,
|
|
June 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
Sept. 30,
|
|
(in millions)
|
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Balance, beginning of period
|
|
$
|
766
|
|
799
|
|
2,222
|
|
899
|
|
2,206
|
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
12
|
|
12
|
|
28
|
|
34
|
|
127
|
|
|
|
Change in estimate (1)
|
|
|
(93)
|
|
(38)
|
|
-
|
|
(135)
|
|
275
|
|
|
|
|
Total additions (reductions)
|
|
|
(81)
|
|
(26)
|
|
28
|
|
(101)
|
|
402
|
|
|
Losses
|
|
|
(16)
|
|
(7)
|
|
(829)
|
|
(129)
|
|
(1,187)
|
|
Balance, end of period
|
|
$
|
669
|
|
766
|
|
1,421
|
|
669
|
|
1,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Results from changes in investor demand, mortgage insurer practices,
credit and 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
|
|
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
426
|
|
322
|
|
233
|
|
981
|
|
|
Original loan balance (3)
|
|
$
|
93
|
|
75
|
|
52
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
678
|
|
362
|
|
305
|
|
1,345
|
|
|
Original loan balance (3)
|
|
$
|
149
|
|
80
|
|
66
|
|
295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
599
|
|
391
|
|
409
|
|
1,399
|
|
|
Original loan balance (3)
|
|
$
|
126
|
|
89
|
|
90
|
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
674
|
|
2,260
|
|
394
|
|
3,328
|
|
|
Original loan balance (3)
|
|
$
|
124
|
|
497
|
|
87
|
|
708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
|
4,422
|
|
1,240
|
|
385
|
|
6,047
|
|
|
Original loan balance (3)
|
|
$
|
958
|
|
264
|
|
87
|
|
1,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes repurchase demands of 7 and $1 million, 14 and $3 million,
25 and $3 million, 42 and $6 million, and 1,247 and $225 million at
September 30, June 30 and March 31, 2014, and December 31, and
September 30, 2013, 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.
|
|
(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).
|
|
(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.
|
Copyright Business Wire 2014