Wells Fargo Reports $5.9 Billion in Quarterly Net Income; Diluted EPS of $1.20
Wells Fargo & Company (NYSE:WFC):
- Financial results:
- Net income of $5.9 billion, compared with $5.1 billion in first quarter 2018
- Diluted earnings per share (EPS) of $1.20, compared with $0.96
- Revenue of $21.6 billion, down from $21.9 billion
- Net interest income of $12.3 billion, up $73 million
- Noninterest income of $9.3 billion, down $398 million
- Noninterest expense of $13.9 billion, down $1.1 billion
- Average deposits of $1.3 trillion, down $35.1 billion, or 3%
- Average loans of $950.1 billion, down $876 million
- Return on assets (ROA) of 1.26%, return on equity (ROE) of 12.71%, and return on average tangible
common equity (ROTCE) of 15.16%1
- Credit quality:
- Provision expense of $845 million, up $654 million from first quarter 2018
- Net charge-offs of $695 million, down $46 million
- Net charge-offs of 0.30% of average loans (annualized), down from 0.32%
- Reserve build2 of $150 million, compared with $550 million reserve
release2
- Nonaccrual loans of $6.9 billion, down $434 million, or 6%
- Strong capital position while returning more capital to shareholders:
- Common Equity Tier 1 ratio (fully phased-in) of 11.9%3
- Returned $6.0 billion to shareholders through common stock dividends and net share repurchases,
up 49% from $4.0 billion in first quarter 2018
a) Net share repurchases of $3.9 billion, up 86% from $2.1 billion in first quarter 2018
b) Period-end common shares outstanding down 362 million shares, or 7%
c) Quarterly common stock dividend increased to $0.45 per share, compared with $0.43 per share in fourth
quarter 2018 and $0.39 per share in first quarter 2018
Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported
in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, and may differ materially from the results and
disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent
events, or the discovery of additional information.
|
Selected Financial Information
|
|
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
|
|
2019 |
|
2018 |
|
2018 |
Earnings |
|
|
|
|
|
|
Diluted earnings per common share |
|
$ |
1.20 |
|
|
1.21 |
|
|
0.96 |
Wells Fargo net income (in billions) |
|
5.86 |
|
|
6.06 |
|
|
5.14 |
Return on assets (ROA) |
|
1.26 |
% |
|
1.28 |
|
|
1.09 |
Return on equity (ROE) |
|
12.71 |
|
|
12.89 |
|
|
10.58 |
Return on average tangible common equity (ROTCE) (a) |
|
15.16 |
|
|
15.39 |
|
|
12.62 |
Asset Quality |
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans |
|
0.30 |
% |
|
0.30 |
|
|
0.32 |
Allowance for credit losses as a % of total loans |
|
1.14 |
|
|
1.12 |
|
|
1.19 |
Allowance for credit losses as a % of annualized net charge-offs |
|
384 |
|
|
374 |
|
|
376 |
Other |
|
|
|
|
|
|
Revenue (in billions) |
|
$ |
21.6 |
|
|
21.0 |
|
|
21.9 |
Efficiency ratio (b) |
|
64.4 |
% |
|
63.6 |
|
|
68.6 |
Average loans (in billions) |
|
$ |
950.1 |
|
|
946.3 |
|
|
951.0 |
Average deposits (in billions) |
|
1,262.1 |
|
|
1,268.9 |
|
|
1,297.2 |
Net interest margin |
|
2.91 |
% |
|
2.94 |
|
|
2.84 |
(a) Tangible common equity is a non-GAAP financial measure and represents total equity less
preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and
intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights),
net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies.
Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to assess the Company's use of equity. For additional information,
including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on page 34.
|
(b) The efficiency ratio is noninterest expense divided by total revenue (net interest income and
noninterest income).
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.9 billion, or $1.20 per diluted common share, for
first quarter 2019, compared with $5.1 billion, or $0.96 per share, for first quarter 2018, and $6.1 billion, or
$1.21 per share, for fourth quarter 2018.
Interim Chief Executive Officer Allen Parker said, “Since assuming this role, I have been focused on leading our Company forward
by emphasizing my top priorities: serving our customers and supporting our Wells Fargo team members; meeting and exceeding the
expectations of our regulators; and continuing the important transformation of the Company. We have more work ahead of us, and our
strong leadership team is dedicated to making our Company the most customer-focused, efficient, and innovative Wells Fargo ever.
All these efforts are focused on creating a first-rate organization that is characterized by a strong financial foundation, a
leading presence in our chosen markets, focused growth within a responsible risk management framework, operational excellence, and
highly engaged team members. I want to thank our team members for their continued commitment and tireless efforts, and I’m
confident and enthusiastic about the extraordinary opportunities we have in front of us to build an even stronger Wells Fargo for
all our stakeholders.”
Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $5.9 billion of net income in the first quarter. Our
financial results included continued strong credit performance and high levels of liquidity. In addition, our continued de-risking
of the balance sheet and consistent level of profitability have resulted in capital levels well above our regulatory minimum. As a
result, we returned $6.0 billion to shareholders through common stock dividends and net share repurchases in the first quarter, up
49% from a year ago. Returning excess capital to shareholders remains a priority. While our expenses in the first quarter included
typically higher personnel expense, we remain committed to, and are on track to achieving, our 2019 expense target.”
Net Interest Income
Net interest income in the first quarter was $12.3 billion, down $333 million from fourth quarter 2018, driven primarily by two
fewer days in the quarter and balance sheet mix and repricing, including the impact of a flattening yield curve. The net interest
margin was 2.91%, down 3 basis points from the prior quarter due to balance sheet mix and repricing.
Noninterest Income
Noninterest income in the first quarter was $9.3 billion, up $962 million from fourth quarter 2018. First quarter noninterest
income included higher market sensitive revenue4 and mortgage banking income, partially offset by lower other income,
trust and investment fees, and other fees.
- Trust and investment fees were $3.4 billion, down from $3.5 billion in fourth quarter 2018, driven by
lower asset-based fees on retail brokerage advisory assets, reflecting lower market valuations at December 31, 2018.
- Mortgage banking income was $708 million, up from $467 million in fourth quarter 2018. Net
mortgage servicing income was $364 million, up from $109 million in the fourth quarter, which included negative
mortgage servicing rights valuation adjustments. The production margin on residential held-for-sale mortgage loan
originations5 increased to 1.05%, from 0.89% in the fourth quarter, primarily due to an improvement in secondary
market conditions. Residential mortgage loan originations in the first quarter were $33 billion, down from $38 billion in
the fourth quarter primarily due to seasonality. The unclosed application pipeline at March 31, 2019, was $32 billion, up
from $18 billion at December 31, 2018.
- Market sensitive revenue4 was $1.3 billion, up from $40 million in fourth quarter 2018,
and included higher net gains from equity securities driven by a $797 million increase in deferred compensation plan investment
results (P&L neutral, largely offset by higher employee benefits expense). Net gains from trading activities increased $347
million compared with the prior quarter, driven predominantly by strength in credit and asset-backed products. Net gains from
debt securities increased $116 million compared with the prior quarter, predominantly due to the sale of non-agency residential
mortgage-backed securities.
Noninterest Expense
Noninterest expense in the first quarter increased $577 million from the prior quarter to $13.9 billion, predominantly due
to $778 million of seasonally higher employee benefits and incentive compensation expense, as well as a $785 million increase
in deferred compensation expense (P&L neutral, largely offset by net gains from equity securities). These increases were
partially offset by lower core deposit and other intangibles amortization, operating losses, other expense, outside professional
services, salaries, and operating lease expense. The efficiency ratio was 64.4% in first quarter 2019, compared with
63.6% in the fourth quarter.
Income Taxes
The Company’s effective income tax rate was 13.1% for first quarter 2019 and included net discrete income tax benefits of $297
million related mostly to the results of U.S. federal and state income tax examinations and the accounting for stock compensation
activity. The effective income tax rate in fourth quarter 2018 was 13.7% and included net discrete income tax benefits related to
the results of state income tax audits and incremental state tax credits, as well as benefits related to revisions to our full year
2018 effective income tax rate made during the fourth quarter. The Company currently expects the effective income tax rate for the
remainder of 2019 to be approximately 18%, excluding the impact of any unanticipated discrete items.
Loans
Average loans were $950.1 billion in the first quarter, up $3.8 billion from the fourth quarter. Period-end loan
balances were $948.2 billion at March 31, 2019, down $4.9 billion from December 31, 2018. Commercial loans were down
$1.2 billion compared with December 31, 2018, predominantly due to a $1.1 billion decline in commercial and industrial
loans, partially offset by $460 million of growth in commercial real estate loans. Consumer loans decreased $3.7 billion from
the prior quarter, reflecting the following:
- Real estate 1-4 family first mortgage loans decreased $520 million, as $10.5 billion of
held-for-investment nonconforming mortgage loan originations were more than offset by paydowns and $1.6 billion of sales of
purchased credit-impaired (PCI) Pick-a-Pay mortgage loans. Additionally, $776 million of nonconforming mortgage loan originations
that would have otherwise been included in 1-4 family first mortgage loan outstandings were designated as held-for-sale in first
quarter 2019 in anticipation of future securitizations.
- Real estate 1-4 family junior lien mortgage loans decreased $1.3 billion, as paydowns continued
to exceed originations
- Credit card loans decreased $746 million primarily due to seasonality
- Automobile loans declined $156 million, as paydowns outpaced originations of $5.4 billion
|
Period-End Loan Balances
|
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Commercial |
|
$ |
512,226 |
|
|
513,405 |
|
|
501,886 |
|
|
503,105 |
|
|
503,396 |
|
Consumer |
|
436,023 |
|
|
439,705 |
|
|
440,414 |
|
|
441,160 |
|
|
443,912 |
|
Total loans |
|
$ |
948,249 |
|
|
953,110 |
|
|
942,300 |
|
|
944,265 |
|
|
947,308 |
|
Change from prior quarter |
|
$ |
(4,861 |
) |
|
10,810 |
|
|
(1,965 |
) |
|
(3,043 |
) |
|
(9,462 |
) |
Debt and Equity Securities
Debt securities include available-for-sale and held-to-maturity debt securities, as well as debt securities held for trading.
Period-end debt securities were $483.5 billion at March 31, 2019, down $1.2 billion from the fourth quarter,
predominantly due to a net decrease in available-for-sale and held for trading debt securities. Debt securities purchases of
approximately $4.8 billion, primarily U.S. Treasury and federal agency mortgage-backed securities (MBS) in the
available-for-sale portfolio, declined from the prior quarter primarily reflecting less reinvestment due to lower long-term
interest rates and tighter credit spreads. These purchases were more than offset by runoff and sales.
Net unrealized gains on available-for-sale debt securities were $853 million at March 31, 2019, compared with net
unrealized losses of $2.6 billion at December 31, 2018, due to lower long-term interest rates and tighter credit
spreads.
Period-end equity securities, which include marketable and non-marketable equity securities, as well as equity securities held
for trading, were $58.4 billion at March 31, 2019, up $3.3 billion from the fourth quarter.
Deposits
Total average deposits for first quarter 2019 were $1.3 trillion, down $6.9 billion from the prior quarter primarily due to
lower Wholesale Banking and Wealth and Investment Management deposits, partially offset by higher retail banking deposits. The
average deposit cost for first quarter 2019 was 65 basis points, up 10 basis points from the prior quarter and 31 basis points from
a year ago.
Capital
Our Common Equity Tier 1 ratio (fully phased-in) was 11.9%3 and continued to exceed both the regulatory minimum of 9%
and our current internal target of 10%. In first quarter 2019, the Company repurchased 97.4 million shares of its common
stock, which net of issuances reduced period-end common shares outstanding by 69.3 million. The Company increased its quarterly
common stock dividend paid in the quarter to $0.45 per share from $0.43 per share in the prior quarter.
As of March 31, 2019, our eligible external total loss absorbing capacity (TLAC) as a percentage of total risk-weighted assets
was 23.9%6, compared with the required minimum of 22.0%.
Credit Quality
Net Loan Charge-offs
The quarterly loss rate in the first quarter was 0.30% (annualized), unchanged from the prior quarter, and down from 0.32% a
year ago. Commercial and consumer losses were 0.11% and 0.51%, respectively. Total credit losses were $695 million in first
quarter 2019, down $26 million from fourth quarter 2018. Commercial losses increased $13 million driven by lower recoveries,
while consumer losses decreased $39 million.
|
Net Loan Charge-Offs
|
|
|
Quarter ended |
|
|
March 31, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
|
|
Net loan |
|
As a % of |
|
Net loan |
|
As a % of |
|
Net loan |
|
As a % of |
|
|
charge- |
|
average |
|
charge- |
|
average |
|
charge- |
|
average |
($ in millions) |
|
offs |
|
loans (a) |
|
offs |
|
loans (a) |
|
offs |
|
loans (a) |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
133 |
|
|
0.15 |
% |
|
$ |
132 |
|
|
0.15 |
% |
|
$ |
85 |
|
|
0.10 |
% |
Real estate mortgage |
|
6 |
|
|
0.02 |
|
|
(12 |
) |
|
(0.04 |
) |
|
(15 |
) |
|
(0.05 |
) |
Real estate construction |
|
(2 |
) |
|
(0.04 |
) |
|
(1 |
) |
|
(0.01 |
) |
|
(4 |
) |
|
(0.07 |
) |
Lease financing |
|
8 |
|
|
0.17 |
|
|
13 |
|
|
0.26 |
|
|
12 |
|
|
0.25 |
|
Total commercial |
|
145 |
|
|
0.11 |
|
|
132 |
|
|
0.10 |
|
|
78 |
|
|
0.06 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
(12 |
) |
|
(0.02 |
) |
|
(22 |
) |
|
(0.03 |
) |
|
(18 |
) |
|
(0.03 |
) |
Real estate 1-4 family junior lien mortgage |
|
(9 |
) |
|
(0.10 |
) |
|
(10 |
) |
|
(0.11 |
) |
|
(8 |
) |
|
(0.09 |
) |
Credit card |
|
352 |
|
|
3.73 |
|
|
338 |
|
|
3.54 |
|
|
332 |
|
|
3.69 |
|
Automobile |
|
91 |
|
|
0.82 |
|
|
133 |
|
|
1.16 |
|
|
208 |
|
|
1.64 |
|
Other revolving credit and installment |
|
128 |
|
|
1.47 |
|
|
150 |
|
|
1.64 |
|
|
149 |
|
|
1.60 |
|
Total consumer |
|
550 |
|
|
0.51 |
|
|
589 |
|
|
0.53 |
|
|
663 |
|
|
0.60 |
|
Total |
|
$ |
695 |
|
|
0.30 |
% |
|
$ |
721 |
|
|
0.30 |
% |
|
$ |
741 |
|
|
0.32 |
% |
|
(a) Quarterly net charge-offs (recoveries) as a percentage of average loans are annualized.
|
|
Nonperforming Assets
Nonperforming assets increased $394 million, or 6%, from fourth quarter 2018 to $7.3 billion. Nonaccrual loans increased
$409 million from fourth quarter 2018 to $6.9 billion. Commercial nonaccrual loans increased $609 million driven in part by a
borrower in the utility sector.
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
March 31, 2019 |
|
December 31, 2018 |
|
March 31, 2018 |
|
|
|
|
|
|
|
|
As a |
|
|
|
As a |
|
|
|
|
As a % of |
|
|
|
% of |
|
|
|
% of |
|
|
Total |
|
total |
|
Total |
|
total |
|
Total |
|
total |
($ in millions) |
|
balances |
|
loans |
|
balances |
|
loans |
|
balances |
|
loans |
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
1,986 |
|
|
0.57 |
% |
|
$ |
1,486 |
|
|
0.42 |
% |
|
$ |
1,516 |
|
|
0.45 |
% |
Real estate mortgage |
|
699 |
|
|
0.57 |
|
|
580 |
|
|
0.48 |
|
|
755 |
|
|
0.60 |
|
Real estate construction |
|
36 |
|
|
0.16 |
|
|
32 |
|
|
0.14 |
|
|
45 |
|
|
0.19 |
|
Lease financing |
|
76 |
|
|
0.40 |
|
|
90 |
|
|
0.46 |
|
|
93 |
|
|
0.48 |
|
Total commercial |
|
2,797 |
|
|
0.55 |
|
|
2,188 |
|
|
0.43 |
|
|
2,409 |
|
|
0.48 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
3,026 |
|
|
1.06 |
|
|
3,183 |
|
|
1.12 |
|
|
3,673 |
|
|
1.30 |
|
Real estate 1-4 family junior lien mortgage |
|
916 |
|
|
2.77 |
|
|
945 |
|
|
2.75 |
|
|
1,087 |
|
|
2.87 |
|
Automobile |
|
116 |
|
|
0.26 |
|
|
130 |
|
|
0.29 |
|
|
117 |
|
|
0.24 |
|
Other revolving credit and installment |
|
50 |
|
|
0.14 |
|
|
50 |
|
|
0.14 |
|
|
53 |
|
|
0.14 |
|
Total consumer |
|
4,108 |
|
|
0.94 |
|
|
4,308 |
|
|
0.98 |
|
|
4,930 |
|
|
1.11 |
|
Total nonaccrual loans (a) |
|
6,905 |
|
|
0.73 |
|
|
6,496 |
|
|
0.68 |
|
|
7,339 |
|
|
0.77 |
|
Foreclosed assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed |
|
75 |
|
|
|
|
88 |
|
|
|
|
103 |
|
|
|
Non-government insured/guaranteed |
|
361 |
|
|
|
|
363 |
|
|
|
|
468 |
|
|
|
Total foreclosed assets |
|
436 |
|
|
|
|
451 |
|
|
|
|
571 |
|
|
|
Total nonperforming assets |
|
$ |
7,341 |
|
|
0.77 |
% |
|
$ |
6,947 |
|
|
0.73 |
% |
|
$ |
7,910 |
|
|
0.83 |
% |
Change from prior quarter: |
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans (a) |
|
$ |
409 |
|
|
|
|
$ |
(218 |
) |
|
|
|
$ |
(307 |
) |
|
|
Total nonperforming assets |
|
394 |
|
|
|
|
(289 |
) |
|
|
|
(378 |
) |
|
|
(a) Financial information for periods prior to December 31, 2018, has been revised to exclude
mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value. For additional information,
see the "Five Quarter Nonperforming Assets" table on page 32.
|
|
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded commitments, totaled $10.8 billion at March 31,
2019, up $114 million from December 31, 2018. First quarter 2019 included a $150 million reserve build2, primarily
due to a higher probability of slightly less favorable economic conditions. The allowance coverage for total loans was 1.14%,
compared with 1.12% in fourth quarter 2018. The allowance covered 3.8 times annualized first quarter net charge-offs, compared
with 3.7 times in the prior quarter. The allowance coverage for nonaccrual loans was 157% at March 31, 2019,
compared with 165% at December 31, 2018.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three
business segments was:
|
|
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
Community Banking |
|
$ |
2,823 |
|
|
3,169 |
|
|
1,913 |
Wholesale Banking |
|
2,770 |
|
|
2,671 |
|
|
2,875 |
Wealth and Investment Management |
|
577 |
|
|
689 |
|
|
714 |
|
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 automobile, student, mortgage,
home equity and small business lending, as well as referrals to Wholesale Banking and Wealth and Investment Management business
partners. The Community Banking segment also includes the results of our Corporate Treasury activities net of allocations
(including funds transfer pricing, capital, liquidity and certain corporate expenses) in support of the other operating segments
and results of investments in our affiliated venture capital and private equity partnerships.
|
Selected Financial Information
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
Total revenue |
|
$ |
11,750 |
|
|
11,461 |
|
|
11,830 |
Provision for credit losses |
|
710 |
|
|
534 |
|
|
218 |
Noninterest expense |
|
7,689 |
|
|
7,032 |
|
|
8,702 |
Segment net income |
|
2,823 |
|
|
3,169 |
|
|
1,913 |
(in billions) |
|
|
|
|
|
|
Average loans |
|
458.2 |
|
|
459.7 |
|
|
470.5 |
Average assets |
|
1,015.4 |
|
|
1,015.9 |
|
|
1,061.9 |
Average deposits |
|
765.6 |
|
|
759.4 |
|
|
747.5 |
|
First Quarter 2019 vs. Fourth Quarter 2018
- Net income of $2.8 billion, down $346 million, or 11%
- Revenue was $11.8 billion, up $289 million, or 3%, driven by higher market sensitive
revenue4 reflecting higher deferred compensation plan investment results (P&L neutral, largely offset by higher
employee benefits expense) and higher mortgage banking income, partially offset by lower other income and net interest
income
- Noninterest expense of $7.7 billion increased $657 million, or 9%, predominantly driven by seasonally
higher personnel expense and higher deferred compensation expense (P&L neutral, largely offset by net gains from equity
securities), partially offset by lower other expense, operating losses, and core deposit and other intangibles amortization
expense
- Provision for credit losses increased $176 million, primarily due to a reserve build2 in
first quarter 2019, reflecting a higher probability of slightly less favorable economic conditions, compared with a reserve
release2 in fourth quarter 2018, partially offset by lower net charge-offs in the first quarter
First Quarter 2019 vs. First Quarter 2018
- Net income was up $910 million, or 48%, driven in part by a lower effective income tax rate in first
quarter 2019
- Revenue declined $80 million, or 1%, predominantly due to lower mortgage banking income and trust and
investment fees, partially offset by higher other income and net interest income
- Noninterest expense decreased $1.0 billion, or 12%, driven by lower operating losses and core deposit
and other intangibles amortization expense, partially offset by higher personnel expense
- Provision for credit losses increased $492 million, due to a reserve build2 in first
quarter 2019, reflecting a higher probability of slightly less favorable economic conditions, compared with a reserve
release2 in first quarter 2018
Business Metrics and Highlights
- Primary consumer checking customers7,8 of 23.9 million, up 1.1% from a year ago. The sale
of 52 branches and $1.8 billion of deposits which closed in fourth quarter 2018 reduced the growth rate by 0.5%
- Branch customer experience surveys completed during first quarter 2019 reflected higher scores from
the previous quarter, with both ‘Customer Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ reaching their highest level
in more than three years
- Debit card point-of-sale purchase volume9 of $86.6 billion in the first quarter, up 6%
year-over-year
- General purpose credit card point-of-sale purchase volume of $18.3 billion in the first quarter, up
5% year-over-year
- 29.8 million digital (online and mobile) active customers, including 23.3 million mobile active
customers8,10
- 5,479 retail bank branches as of the end of first quarter 2019, reflecting 40 branch consolidations
in the quarter
- Home Lending
- Originations of $33 billion, down from $38 billion in the prior quarter, primarily due to
seasonality
- Originations of loans held-for-sale and loans held-for-investment were $22 billion and $11
billion, respectively
- Applications of $64 billion, up from $48 billion in the prior quarter, driven primarily by lower
mortgage interest rates
- Unclosed application pipeline of $32 billion at quarter end, up from $18 billion at December 31,
2018, driven primarily by lower mortgage interest rates
- Production margin on residential held-for-sale mortgage loan originations5 of 1.05%, up
from 0.89% in the prior quarter, primarily due to an improvement in secondary market conditions
- Automobile originations of $5.4 billion in the first quarter, up 24% from the prior year
- Small Business Lending11originations of $621 million, up 6% from the prior year
- Wells Fargo's mobile banking ranked #2 in Overall Performance and #1 in Mobile Web, and tied for #1
in Functionality on the Dynatrace Mobile Banking Scorecard (March 2019)
- Wells Fargo's Go FarTM Rewards mobile app tied for highest ranking (A-) on the Credit Card
Monitor report (February 2019)
Wholesale Banking provides financial solutions to businesses across the United States and
globally with annual sales generally in excess of $5 million. Products and businesses include Commercial Banking, Commercial Real
Estate, Corporate and Investment Banking, Credit Investment Portfolio, Treasury Management, and Commercial Capital.
|
Selected Financial Information
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
Total revenue |
|
$ |
7,111 |
|
|
6,926 |
|
|
7,279 |
|
Provision (reversal of provision) for credit losses |
|
134 |
|
|
(28 |
) |
|
(20 |
) |
Noninterest expense |
|
3,838 |
|
|
4,025 |
|
|
3,978 |
|
Segment net income |
|
2,770 |
|
|
2,671 |
|
|
2,875 |
|
(in billions) |
|
|
|
|
|
|
Average loans |
|
476.5 |
|
|
470.2 |
|
|
465.1 |
|
Average assets |
|
844.6 |
|
|
839.1 |
|
|
829.2 |
|
Average deposits |
|
409.8 |
|
|
421.6 |
|
|
446.0 |
|
First Quarter 2019 vs. Fourth Quarter 2018
- Net income of $2.8 billion, up $99 million, or 4%
- Revenue of $7.1 billion increased $185 million, or 3%, driven by higher market sensitive
revenue4, partially offset by lower net interest income, commercial real estate brokerage fees, and other fees
- Noninterest expense of $3.8 billion decreased $187 million, or 5%, reflecting lower operating
lease, core deposit and other intangibles amortization, and project related expenses, partially offset by seasonally higher
personnel expense
- Provision for credit losses increased $162 million, driven by a reserve build2 in
first quarter 2019, reflecting higher nonaccrual loans, as well as lower recoveries in the first quarter
First Quarter 2019 vs. First Quarter 2018
- Net income decreased $105 million, or 4%
- Revenue decreased $168 million, or 2%, largely due to the impact of the sale of Wells Fargo
Shareowner Services in first quarter 2018, as well as lower treasury management fees and mortgage banking income, partially
offset by higher market sensitive revenue4
- Noninterest expense decreased $140 million, or 4%, on lower FDIC, core deposit and other
intangibles amortization, operating lease, and personnel expenses, partially offset by higher regulatory, risk, and technology
expense
- Provision for credit losses increased $154 million, primarily due to a reserve build2 in
first quarter 2019, reflecting higher nonaccrual loans, compared with a reserve release2 in first quarter 2018, as
well as lower recoveries in first quarter 2019
Business Metrics and Highlights
- Commercial card spend volume12 of $8.5 billion, up 5% from the prior year on increased
transaction volumes primarily reflecting customer growth, and down 2% compared with fourth quarter 2018
- U.S. investment banking market share of 3.5% in first quarter 201913, compared with 3.1%
in first quarter 201813
Wealth and Investment Management (WIM) provides a full range of personalized wealth
management, investment and retirement products and services to clients across U.S. based businesses including Wells Fargo
Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management. We
deliver financial planning, private banking, credit, investment management and fiduciary services to high-net worth and
ultra-high-net worth individuals and families. We also serve clients’ brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities delivered to global institutional clients through separate
accounts and the Wells Fargo Funds.
|
Selected Financial Information
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
Total revenue |
|
$ |
4,079 |
|
|
3,957 |
|
|
4,242 |
|
Provision (reversal of provision) for credit losses |
|
4 |
|
|
(3 |
) |
|
(6 |
) |
Noninterest expense |
|
3,303 |
|
|
3,044 |
|
|
3,290 |
|
Segment net income |
|
577 |
|
|
689 |
|
|
714 |
|
(in billions) |
|
|
|
|
|
|
Average loans |
|
74.4 |
|
|
75.2 |
|
|
73.9 |
|
Average assets |
|
83.2 |
|
|
83.6 |
|
|
84.2 |
|
Average deposits |
|
153.2 |
|
|
155.5 |
|
|
177.9 |
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2019 vs. Fourth Quarter 2018
- Net income of $577 million, down $112 million, or 16%
- Revenue of $4.1 billion increased $122 million, or 3%, mostly due to higher net gains from
equity securities on higher deferred compensation plan investment results of $307 million (P&L neutral, offset by higher
employee benefits expense), partially offset by lower asset-based fees
- Noninterest expense of $3.3 billion increased $259 million, or 9%, primarily driven by higher
employee benefits expense from deferred compensation plan expense of $307 million (P&L neutral, offset by net gains from
equity securities) and seasonally higher personnel expense, partially offset by lower broker commissions and lower core deposit
and other intangibles amortization expense
First Quarter 2019 vs. First Quarter 2018
- Net income down $137 million, or 19%
- Revenue decreased $163 million, or 4%, primarily driven by lower asset-based fees and brokerage
transaction revenue, partially offset by higher net gains from equity securities on higher deferred compensation plan investment
results of $133 million (P&L neutral, offset by higher employee benefits expense)
- Noninterest expense increased $13 million, primarily due to higher employee benefits expense
from deferred compensation plan expense of $133 million (P&L neutral, offset by net gains from equity securities) and higher
regulatory, risk, and technology expense, partially offset by lower broker commissions and core deposit and other intangibles
amortization expense
Business Metrics and Highlights
Total WIM Segment
- WIM total client assets of $1.8 trillion, down 2% from a year ago, driven primarily by net outflows,
partially offset by higher market valuations
- Average loan balances up 1% from a year ago largely due to growth in nonconforming mortgage
loans
- First quarter 2019 closed referred investment assets (referrals resulting from the WIM/Community
Banking partnership) down 8% compared with first quarter 2018
Retail Brokerage
- Client assets of $1.6 trillion, down 1% from prior year, driven primarily by net outflows, partially
offset by higher market valuations
- Advisory assets of $547 billion, up 1% from prior year, driven primarily by higher market valuations,
partially offset by net outflows
Wealth Management
- Client assets of $232 billion, down 4% from prior year, driven primarily by net outflows, partially
offset by higher market valuations
Asset Management
- Total assets under management (AUM) of $476 billion, down 4% from prior year, primarily due to equity
and fixed income net outflows and the sale of Wells Fargo Asset Management's ownership stake in The Rock Creek Group, LP and
removal of the associated AUM, partially offset by higher market valuations and higher money market fund net inflows
Retirement
- IRA assets of $404 billion, flat compared with the prior year
- Institutional Retirement plan assets of $379 billion, down 2% from prior year
- On April 9, 2019, we announced an agreement to sell our Institutional Retirement and Trust business.
This transaction is expected to close in third quarter 2019.
Conference Call
The Company will host a live conference call on Friday, April 12, at 7:00 a.m. PT (10:00 a.m. ET). You may listen to the call by
dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at
https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and
https://engage.vevent.com/rt/wells_fargo_ao~5287428.
A replay of the conference call will be available beginning at 11:00 a.m. PT (2:00 p.m. ET) on Friday, April 12 through Friday,
April 26. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #5287428. The replay
will also be available online at
https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and
https://engage.vevent.com/rt/wells_fargo_ao~5287428.
End Notes
1 Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity,
noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets
associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred
taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average
tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and
others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP
financial measures, see the “Tangible Common Equity” tables on page 34.
2 Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve
release represents the amount by which net charge-offs exceed the provision for credit losses.
3 See table on page 35 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a
preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.
4 Market sensitive revenue represents net gains from trading activities, debt securities, and equity securities.
5 Production margin represents net gains on residential mortgage loan origination/sales activities divided by total
residential held-for-sale mortgage originations. See the "Selected Five Quarter Residential Mortgage Production Data" table on page
40 for more information.
6 The TLAC ratio is a preliminary estimate.
7 Customers who actively use their checking account with transactions such as debit card purchases, online bill
payments, and direct deposit.
8 Data as of February 2019, comparisons with February 2018.
9 Combined consumer and business debit card purchase volume dollars.
10 Digital and mobile active customers is the number of consumer and small business customers who have logged on via
a digital or mobile device in the prior 90 days.
11 Small Business Lending includes credit card, lines of credit and loan products (primarily under $100,000 sold
through our retail banking branches).
12 Includes commercial card volume for the entire company.
13 Source: Dealogic U.S. investment banking fee market share.
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 levels;
(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 or
liquidity levels or targets 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, return on equity, and return
on tangible common 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, geopolitical matters, and any 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;
- developments in our mortgage banking business, including the extent of the success of our mortgage
loan modification efforts, the amount of mortgage loan repurchase demands that we receive, any negative effects relating to our
mortgage servicing, loan modification or foreclosure practices, and the effects of regulatory or judicial requirements or
guidance impacting our mortgage banking business and any changes in industry standards;
- our ability to realize any efficiency ratio or expense 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 interest rate environment or changes in interest rates on our net interest
income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
- significant turbulence or a 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 debt
securities and equity securities portfolios;
- 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;
- negative effects from the retail banking sales practices matter and from other instances where
customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in
certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to
attract and retain qualified team members, and our reputation;
- resolution of regulatory matters, litigation, or other legal actions, which may result in, among
other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse
consequences;
- 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, 2018.
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, 2018, 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.
Forward-looking Non-GAAP Financial Measures. From time to time management may discuss
forward-looking non-GAAP financial measures, such as forward-looking estimates or targets for return on average tangible common
equity. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable
GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or
estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting
and quantifying future amounts or when they may occur. Such unavailable information could be significant to future results.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion
in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer
and commercial finance, through 7,700 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 262,000
team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on
Fortune’s 2018 rankings of America’s largest corporations.
|
Wells Fargo & Company and Subsidiaries |
QUARTERLY FINANCIAL DATA |
TABLE OF CONTENTS |
|
|
|
Pages |
|
|
|
Summary Information
|
|
|
Summary Financial Data
|
|
17
|
|
|
|
Income
|
|
|
Consolidated Statement of Income |
|
19 |
Consolidated Statement of Comprehensive Income |
|
21 |
Condensed Consolidated Statement of Changes in Total Equity |
|
21 |
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) |
|
22 |
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) |
|
23 |
Noninterest Income and Noninterest Expense |
|
24 |
Five Quarter Deferred Compensation Plan Investment Results |
|
26 |
|
|
|
Balance Sheet
|
|
|
Consolidated Balance Sheet |
|
27 |
Trading Activities |
|
29 |
Debt Securities |
|
29 |
Equity Securities |
|
30 |
|
|
|
Loans
|
|
|
Loans |
|
31 |
Nonperforming Assets |
|
32 |
Loans 90 Days or More Past Due and Still Accruing |
|
32 |
Changes in Allowance for Credit Losses |
|
33 |
|
|
|
Equity
|
|
|
Tangible Common Equity |
|
34 |
Common Equity Tier 1 Under Basel III |
|
35 |
|
|
|
Operating Segments
|
|
|
Operating Segment Results |
|
36 |
|
|
|
Other
|
|
|
Mortgage Servicing and other related data |
|
38 |
|
Wells Fargo & Company and Subsidiaries
|
SUMMARY FINANCIAL DATA |
|
|
|
|
% Change |
|
|
Quarter ended |
|
Mar 31, 2019 from |
|
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
($ in millions, except per share amounts) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
For the Period |
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income |
|
$ |
5,860 |
|
|
6,064 |
|
|
5,136 |
|
|
(3 |
)% |
|
14 |
|
Wells Fargo net income applicable to common stock |
|
5,507 |
|
|
5,711 |
|
|
4,733 |
|
|
(4 |
) |
|
16 |
|
Diluted earnings per common share |
|
1.20 |
|
|
1.21 |
|
|
0.96 |
|
|
(1 |
) |
|
25 |
|
Profitability ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA) |
|
1.26 |
% |
|
1.28 |
|
|
1.09 |
|
|
(2 |
) |
|
16 |
|
Wells Fargo net income applicable to common stock to average Wells Fargo common
stockholders’ equity (ROE) |
|
12.71 |
|
|
12.89 |
|
|
10.58 |
|
|
(1 |
) |
|
20 |
|
Return on average tangible common equity (ROTCE)(1) |
|
15.16 |
|
|
15.39 |
|
|
12.62 |
|
|
(1 |
) |
|
20 |
|
Efficiency ratio (2) |
|
64.4 |
|
|
63.6 |
|
|
68.6 |
|
|
1 |
|
|
(6 |
) |
Total revenue |
|
$ |
21,609 |
|
|
20,980 |
|
|
21,934 |
|
|
3 |
|
|
(1 |
) |
Pre-tax pre-provision profit (PTPP) (3) |
|
7,693 |
|
|
7,641 |
|
|
6,892 |
|
|
1 |
|
|
12 |
|
Dividends declared per common share |
|
0.45 |
|
|
0.43 |
|
|
0.39 |
|
|
5 |
|
|
15 |
|
Average common shares outstanding |
|
4,551.5 |
|
|
4,665.8 |
|
|
4,885.7 |
|
|
(2 |
) |
|
(7 |
) |
Diluted average common shares outstanding |
|
4,584.0 |
|
|
4,700.8 |
|
|
4,930.7 |
|
|
(2 |
) |
|
(7 |
) |
Average loans |
|
$ |
950,148 |
|
|
946,336 |
|
|
951,024 |
|
|
— |
|
|
— |
|
Average assets |
|
1,883,229 |
|
|
1,879,047 |
|
|
1,915,896 |
|
|
— |
|
|
(2 |
) |
Average total deposits |
|
1,262,062 |
|
|
1,268,948 |
|
|
1,297,178 |
|
|
(1 |
) |
|
(3 |
) |
Average consumer and small business banking deposits (4) |
|
739,654 |
|
|
736,295 |
|
|
755,483 |
|
|
— |
|
|
(2 |
) |
Net interest margin |
|
2.91 |
% |
|
2.94 |
|
|
2.84 |
|
|
(1 |
) |
|
2 |
|
At Period End |
|
|
|
|
|
|
|
|
|
|
Debt securities |
|
$ |
483,467 |
|
|
484,689 |
|
|
472,968 |
|
|
— |
|
|
2 |
|
Loans |
|
948,249 |
|
|
953,110 |
|
|
947,308 |
|
|
(1 |
) |
|
— |
|
Allowance for loan losses |
|
9,900 |
|
|
9,775 |
|
|
10,373 |
|
|
1 |
|
|
(5 |
) |
Goodwill |
|
26,420 |
|
|
26,418 |
|
|
26,445 |
|
|
— |
|
|
— |
|
Equity securities |
|
58,440 |
|
|
55,148 |
|
|
58,935 |
|
|
6 |
|
|
(1 |
) |
Assets |
|
1,887,792 |
|
|
1,895,883 |
|
|
1,915,388 |
|
|
— |
|
|
(1 |
) |
Deposits |
|
1,264,013 |
|
|
1,286,170 |
|
|
1,303,689 |
|
|
(2 |
) |
|
(3 |
) |
Common stockholders' equity |
|
176,025 |
|
|
174,359 |
|
|
181,150 |
|
|
1 |
|
|
(3 |
) |
Wells Fargo stockholders’ equity |
|
197,832 |
|
|
196,166 |
|
|
204,952 |
|
|
1 |
|
|
(3 |
) |
Total equity |
|
198,733 |
|
|
197,066 |
|
|
205,910 |
|
|
1 |
|
|
(3 |
) |
Tangible common equity (1) |
|
147,723 |
|
|
145,980 |
|
|
151,878 |
|
|
1 |
|
|
(3 |
) |
Common shares outstanding |
|
4,511.9 |
|
|
4,581.3 |
|
|
4,873.9 |
|
|
(2 |
) |
|
(7 |
) |
Book value per common share (5) |
|
$ |
39.01 |
|
|
38.06 |
|
|
37.17 |
|
|
2 |
|
|
5 |
|
Tangible book value per common share (1)(5) |
|
32.74 |
|
|
31.86 |
|
|
31.16 |
|
|
3 |
|
|
5 |
|
Team members (active, full-time equivalent) |
|
262,100 |
|
|
258,700 |
|
|
265,700 |
|
|
1 |
|
|
(1 |
) |
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less
preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and
intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights),
net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies.
Management believes that return on average tangible common equity and tangible book value per common share, which utilize
tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of
equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible
Common Equity" tables on page 34.
|
(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) Consumer and small business banking deposits are total deposits excluding mortgage escrow and
wholesale deposits.
|
(5) Book value per common share is common stockholders' equity divided by common shares outstanding.
Tangible book value per common share is tangible common equity divided by common shares outstanding.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER SUMMARY FINANCIAL DATA |
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
($ in millions, except per share amounts) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
For the Quarter |
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income |
|
$ |
5,860 |
|
|
6,064 |
|
|
6,007 |
|
|
5,186 |
|
|
5,136 |
Wells Fargo net income applicable to common stock |
|
5,507 |
|
|
5,711 |
|
|
5,453 |
|
|
4,792 |
|
|
4,733 |
Diluted earnings per common share |
|
1.20 |
|
|
1.21 |
|
|
1.13 |
|
|
0.98 |
|
|
0.96 |
Profitability ratios (annualized): |
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA) |
|
1.26 |
% |
|
1.28 |
|
|
1.27 |
|
|
1.10 |
|
|
1.09 |
Wells Fargo net income applicable to common stock to average Wells Fargo common
stockholders’ equity (ROE) |
|
12.71 |
|
|
12.89 |
|
|
12.04 |
|
|
10.60 |
|
|
10.58 |
Return on average tangible common equity (ROTCE)(1) |
|
15.16 |
|
|
15.39 |
|
|
14.33 |
|
|
12.62 |
|
|
12.62 |
Efficiency ratio (2) |
|
64.4 |
|
|
63.6 |
|
|
62.7 |
|
|
64.9 |
|
|
68.6 |
Total revenue |
|
$ |
21,609 |
|
|
20,980 |
|
|
21,941 |
|
|
21,553 |
|
|
21,934 |
Pre-tax pre-provision profit (PTPP) (3) |
|
7,693 |
|
|
7,641 |
|
|
8,178 |
|
|
7,571 |
|
|
6,892 |
Dividends declared per common share |
|
0.45 |
|
|
0.43 |
|
|
0.43 |
|
|
0.39 |
|
|
0.39 |
Average common shares outstanding |
|
4,551.5 |
|
|
4,665.8 |
|
|
4,784.0 |
|
|
4,865.8 |
|
|
4,885.7 |
Diluted average common shares outstanding |
|
4,584.0 |
|
|
4,700.8 |
|
|
4,823.2 |
|
|
4,899.8 |
|
|
4,930.7 |
Average loans |
|
$ |
950,148 |
|
|
946,336 |
|
|
939,462 |
|
|
944,079 |
|
|
951,024 |
Average assets |
|
1,883,229 |
|
|
1,879,047 |
|
|
1,876,283 |
|
|
1,884,884 |
|
|
1,915,896 |
Average total deposits |
|
1,262,062 |
|
|
1,268,948 |
|
|
1,266,378 |
|
|
1,271,339 |
|
|
1,297,178 |
Average consumer and small business banking deposits (4) |
|
739,654 |
|
|
736,295 |
|
|
743,503 |
|
|
754,047 |
|
|
755,483 |
Net interest margin |
|
2.91 |
% |
|
2.94 |
|
|
2.94 |
|
|
2.93 |
|
|
2.84 |
At Quarter End |
|
|
|
|
|
|
|
|
|
|
Debt securities |
|
$ |
483,467 |
|
|
484,689 |
|
|
472,283 |
|
|
475,495 |
|
|
472,968 |
Loans |
|
948,249 |
|
|
953,110 |
|
|
942,300 |
|
|
944,265 |
|
|
947,308 |
Allowance for loan losses |
|
9,900 |
|
|
9,775 |
|
|
10,021 |
|
|
10,193 |
|
|
10,373 |
Goodwill |
|
26,420 |
|
|
26,418 |
|
|
26,425 |
|
|
26,429 |
|
|
26,445 |
Equity securities |
|
58,440 |
|
|
55,148 |
|
|
61,755 |
|
|
57,505 |
|
|
58,935 |
Assets |
|
1,887,792 |
|
|
1,895,883 |
|
|
1,872,981 |
|
|
1,879,700 |
|
|
1,915,388 |
Deposits |
|
1,264,013 |
|
|
1,286,170 |
|
|
1,266,594 |
|
|
1,268,864 |
|
|
1,303,689 |
Common stockholders' equity |
|
176,025 |
|
|
174,359 |
|
|
176,934 |
|
|
181,386 |
|
|
181,150 |
Wells Fargo stockholders’ equity |
|
197,832 |
|
|
196,166 |
|
|
198,741 |
|
|
205,188 |
|
|
204,952 |
Total equity |
|
198,733 |
|
|
197,066 |
|
|
199,679 |
|
|
206,069 |
|
|
205,910 |
Tangible common equity (1) |
|
147,723 |
|
|
145,980 |
|
|
148,391 |
|
|
152,580 |
|
|
151,878 |
Common shares outstanding |
|
4,511.9 |
|
|
4,581.3 |
|
|
4,711.6 |
|
|
4,849.1 |
|
|
4,873.9 |
Book value per common share (5) |
|
$ |
39.01 |
|
|
38.06 |
|
|
37.55 |
|
|
37.41 |
|
|
37.17 |
Tangible book value per common share (1)(5) |
|
32.74 |
|
|
31.86 |
|
|
31.49 |
|
|
31.47 |
|
|
31.16 |
Team members (active, full-time equivalent) |
|
262,100 |
|
|
258,700 |
|
|
261,700 |
|
|
264,500 |
|
|
265,700 |
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less
preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and
intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights),
net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies.
Management believes that return on average tangible common equity and tangible book value per common share, which utilize
tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of
equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible
Common Equity" tables on page 34.
|
(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) Consumer and small business banking deposits are total deposits excluding mortgage escrow and
wholesale deposits.
|
(5) Book value per common share is common stockholders' equity divided by common shares outstanding.
Tangible book value per common share is tangible common equity divided by common shares outstanding.
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF INCOME |
|
|
Quarter ended March 31, |
|
% |
(in millions, except per share amounts) |
|
2019 |
|
2018 |
|
Change |
Interest income |
|
|
|
|
|
|
Debt securities |
|
$ |
3,941 |
|
|
3,414 |
|
|
15 |
% |
Mortgage loans held for sale |
|
152 |
|
|
179 |
|
|
(15 |
) |
Loans held for sale |
|
24 |
|
|
24 |
|
|
— |
|
Loans |
|
11,354 |
|
|
10,579 |
|
|
7 |
|
Equity securities |
|
210 |
|
|
231 |
|
|
(9 |
) |
Other interest income |
|
1,322 |
|
|
920 |
|
|
44 |
|
Total interest income |
|
17,003 |
|
|
15,347 |
|
|
11 |
|
Interest expense |
|
|
|
|
|
|
Deposits |
|
2,026 |
|
|
1,090 |
|
|
86 |
|
Short-term borrowings |
|
596 |
|
|
311 |
|
|
92 |
|
Long-term debt |
|
1,927 |
|
|
1,576 |
|
|
22 |
|
Other interest expense |
|
143 |
|
|
132 |
|
|
8 |
|
Total interest expense |
|
4,692 |
|
|
3,109 |
|
|
51 |
|
Net interest income |
|
12,311 |
|
|
12,238 |
|
|
1 |
|
Provision for credit losses |
|
845 |
|
|
191 |
|
|
342 |
|
Net interest income after provision for credit losses |
|
11,466 |
|
|
12,047 |
|
|
(5 |
) |
Noninterest income |
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,094 |
|
|
1,173 |
|
|
(7 |
) |
Trust and investment fees |
|
3,373 |
|
|
3,683 |
|
|
(8 |
) |
Card fees |
|
944 |
|
|
908 |
|
|
4 |
|
Other fees |
|
770 |
|
|
800 |
|
|
(4 |
) |
Mortgage banking |
|
708 |
|
|
934 |
|
|
(24 |
) |
Insurance |
|
96 |
|
|
114 |
|
|
(16 |
) |
Net gains from trading activities |
|
357 |
|
|
243 |
|
|
47 |
|
Net gains on debt securities |
|
125 |
|
|
1 |
|
|
NM |
Net gains from equity securities |
|
814 |
|
|
783 |
|
|
4 |
|
Lease income |
|
443 |
|
|
455 |
|
|
(3 |
) |
Other |
|
574 |
|
|
602 |
|
|
(5 |
) |
Total noninterest income |
|
9,298 |
|
|
9,696 |
|
|
(4 |
) |
Noninterest expense |
|
|
|
|
|
|
Salaries |
|
4,425 |
|
|
4,363 |
|
|
1 |
|
Commission and incentive compensation |
|
2,845 |
|
|
2,768 |
|
|
3 |
|
Employee benefits |
|
1,938 |
|
|
1,598 |
|
|
21 |
|
Equipment |
|
661 |
|
|
617 |
|
|
7 |
|
Net occupancy |
|
717 |
|
|
713 |
|
|
1 |
|
Core deposit and other intangibles |
|
28 |
|
|
265 |
|
|
(89 |
) |
FDIC and other deposit assessments |
|
159 |
|
|
324 |
|
|
(51 |
) |
Other |
|
3,143 |
|
|
4,394 |
|
|
(28 |
) |
Total noninterest expense |
|
13,916 |
|
|
15,042 |
|
|
(7 |
) |
Income before income tax expense |
|
6,848 |
|
|
6,701 |
|
|
2 |
|
Income tax expense |
|
881 |
|
|
1,374 |
|
|
(36 |
) |
Net income before noncontrolling interests |
|
5,967 |
|
|
5,327 |
|
|
12 |
|
Less: Net income from noncontrolling interests |
|
107 |
|
|
191 |
|
|
(44 |
) |
Wells Fargo net income |
|
$ |
5,860 |
|
|
5,136 |
|
|
14 |
|
Less: Preferred stock dividends and other |
|
353 |
|
|
403 |
|
|
(12 |
) |
Wells Fargo net income applicable to common stock |
|
$ |
5,507 |
|
|
4,733 |
|
|
16 |
|
Per share information |
|
|
|
|
|
|
Earnings per common share |
|
$ |
1.21 |
|
|
0.97 |
|
|
25 |
|
Diluted earnings per common share |
|
1.20 |
|
|
0.96 |
|
|
25 |
|
Average common shares outstanding |
|
4,551.5 |
|
|
4,885.7 |
|
|
(7 |
) |
Diluted average common shares outstanding |
|
4,584.0 |
|
|
4,930.7 |
|
|
(7 |
) |
NM - Not meaningful
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED STATEMENT
OF INCOME |
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
(in millions, except per share amounts) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Interest income |
|
|
|
|
|
|
|
|
|
|
Debt securities |
|
$ |
3,941 |
|
|
3,803 |
|
|
3,595 |
|
|
3,594 |
|
|
3,414 |
Mortgage loans held for sale |
|
152 |
|
|
190 |
|
|
210 |
|
|
198 |
|
|
179 |
Loans held for sale |
|
24 |
|
|
33 |
|
|
35 |
|
|
48 |
|
|
24 |
Loans |
|
11,354 |
|
|
11,367 |
|
|
11,116 |
|
|
10,912 |
|
|
10,579 |
Equity securities |
|
210 |
|
|
260 |
|
|
280 |
|
|
221 |
|
|
231 |
Other interest income |
|
1,322 |
|
|
1,268 |
|
|
1,128 |
|
|
1,042 |
|
|
920 |
Total interest income |
|
17,003 |
|
|
16,921 |
|
|
16,364 |
|
|
16,015 |
|
|
15,347 |
Interest expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,026 |
|
|
1,765 |
|
|
1,499 |
|
|
1,268 |
|
|
1,090 |
Short-term borrowings |
|
596 |
|
|
546 |
|
|
462 |
|
|
398 |
|
|
311 |
Long-term debt |
|
1,927 |
|
|
1,802 |
|
|
1,667 |
|
|
1,658 |
|
|
1,576 |
Other interest expense |
|
143 |
|
|
164 |
|
|
164 |
|
|
150 |
|
|
132 |
Total interest expense |
|
4,692 |
|
|
4,277 |
|
|
3,792 |
|
|
3,474 |
|
|
3,109 |
Net interest income |
|
12,311 |
|
|
12,644 |
|
|
12,572 |
|
|
12,541 |
|
|
12,238 |
Provision for credit losses |
|
845 |
|
|
521 |
|
|
580 |
|
|
452 |
|
|
191 |
Net interest income after provision for credit losses |
|
11,466 |
|
|
12,123 |
|
|
11,992 |
|
|
12,089 |
|
|
12,047 |
Noninterest income |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,094 |
|
|
1,176 |
|
|
1,204 |
|
|
1,163 |
|
|
1,173 |
Trust and investment fees |
|
3,373 |
|
|
3,520 |
|
|
3,631 |
|
|
3,675 |
|
|
3,683 |
Card fees |
|
944 |
|
|
981 |
|
|
1,017 |
|
|
1,001 |
|
|
908 |
Other fees |
|
770 |
|
|
888 |
|
|
850 |
|
|
846 |
|
|
800 |
Mortgage banking |
|
708 |
|
|
467 |
|
|
846 |
|
|
770 |
|
|
934 |
Insurance |
|
96 |
|
|
109 |
|
|
104 |
|
|
102 |
|
|
114 |
Net gains from trading activities |
|
357 |
|
|
10 |
|
|
158 |
|
|
191 |
|
|
243 |
Net gains on debt securities |
|
125 |
|
|
9 |
|
|
57 |
|
|
41 |
|
|
1 |
Net gains from equity securities |
|
814 |
|
|
21 |
|
|
416 |
|
|
295 |
|
|
783 |
Lease income |
|
443 |
|
|
402 |
|
|
453 |
|
|
443 |
|
|
455 |
Other |
|
574 |
|
|
753 |
|
|
633 |
|
|
485 |
|
|
602 |
Total noninterest income |
|
9,298 |
|
|
8,336 |
|
|
9,369 |
|
|
9,012 |
|
|
9,696 |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
Salaries |
|
4,425 |
|
|
4,545 |
|
|
4,461 |
|
|
4,465 |
|
|
4,363 |
Commission and incentive compensation |
|
2,845 |
|
|
2,427 |
|
|
2,427 |
|
|
2,642 |
|
|
2,768 |
Employee benefits |
|
1,938 |
|
|
706 |
|
|
1,377 |
|
|
1,245 |
|
|
1,598 |
Equipment |
|
661 |
|
|
643 |
|
|
634 |
|
|
550 |
|
|
617 |
Net occupancy |
|
717 |
|
|
735 |
|
|
718 |
|
|
722 |
|
|
713 |
Core deposit and other intangibles |
|
28 |
|
|
264 |
|
|
264 |
|
|
265 |
|
|
265 |
FDIC and other deposit assessments |
|
159 |
|
|
153 |
|
|
336 |
|
|
297 |
|
|
324 |
Other |
|
3,143 |
|
|
3,866 |
|
|
3,546 |
|
|
3,796 |
|
|
4,394 |
Total noninterest expense |
|
13,916 |
|
|
13,339 |
|
|
13,763 |
|
|
13,982 |
|
|
15,042 |
Income before income tax expense |
|
6,848 |
|
|
7,120 |
|
|
7,598 |
|
|
7,119 |
|
|
6,701 |
Income tax expense |
|
881 |
|
|
966 |
|
|
1,512 |
|
|
1,810 |
|
|
1,374 |
Net income before noncontrolling interests |
|
5,967 |
|
|
6,154 |
|
|
6,086 |
|
|
5,309 |
|
|
5,327 |
Less: Net income from noncontrolling interests |
|
107 |
|
|
90 |
|
|
79 |
|
|
123 |
|
|
191 |
Wells Fargo net income |
|
$ |
5,860 |
|
|
6,064 |
|
|
6,007 |
|
|
5,186 |
|
|
5,136 |
Less: Preferred stock dividends and other |
|
353 |
|
|
353 |
|
|
554 |
|
|
394 |
|
|
403 |
Wells Fargo net income applicable to common stock |
|
$ |
5,507 |
|
|
5,711 |
|
|
5,453 |
|
|
4,792 |
|
|
4,733 |
Per share information |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
$ |
1.21 |
|
|
1.22 |
|
|
1.14 |
|
|
0.98 |
|
|
0.97 |
Diluted earnings per common share |
|
1.20 |
|
|
1.21 |
|
|
1.13 |
|
|
0.98 |
|
|
0.96 |
Average common shares outstanding |
|
4,551.5 |
|
|
4,665.8 |
|
|
4,784.0 |
|
|
4,865.8 |
|
|
4,885.7 |
Diluted average common shares outstanding |
|
4,584.0 |
|
|
4,700.8 |
|
|
4,823.2 |
|
|
4,899.8 |
|
|
4,930.7 |
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME |
|
|
Quarter ended March 31, |
|
% |
(in millions) |
|
2019 |
|
2018 |
|
Change |
Wells Fargo net income |
|
$ |
5,860 |
|
|
5,136 |
|
|
14% |
Other comprehensive income (loss), before tax: |
|
|
|
|
|
|
Debt securities: |
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period |
|
2,831 |
|
|
(3,443 |
) |
|
NM |
Reclassification of net (gains) losses to net income |
|
(81 |
) |
|
68 |
|
|
NM |
Derivatives and hedging activities: |
|
|
|
|
|
|
Net unrealized losses arising during the period |
|
(35 |
) |
|
(242 |
) |
|
(86) |
Reclassification of net losses to net income |
|
79 |
|
|
60 |
|
|
32 |
Defined benefit plans adjustments: |
|
|
|
|
|
|
Net actuarial and prior service gains (losses) arising during the period |
|
(4 |
) |
|
6 |
|
|
NM |
Amortization of net actuarial loss, settlements and other to net income |
|
35 |
|
|
32 |
|
|
9 |
Foreign currency translation adjustments: |
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period |
|
42 |
|
|
(2 |
) |
|
NM |
Other comprehensive income (loss), before tax |
|
2,867 |
|
|
(3,521 |
) |
|
NM |
Income tax benefit (expense) related to other comprehensive
income |
|
(694 |
) |
|
862 |
|
|
NM |
Other comprehensive income (loss), net of tax |
|
2,173 |
|
|
(2,659 |
) |
|
NM |
Less: Other comprehensive income from noncontrolling interests |
|
— |
|
|
— |
|
|
— |
Wells Fargo other comprehensive income (loss), net of tax |
|
2,173 |
|
|
(2,659 |
) |
|
NM |
Wells Fargo comprehensive income |
|
8,033 |
|
|
2,477 |
|
|
224 |
Comprehensive income from noncontrolling interests |
|
107 |
|
|
191 |
|
|
(44) |
Total comprehensive income |
|
$ |
8,140 |
|
|
2,668 |
|
|
205 |
NM – Not meaningful
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Balance, beginning of period |
|
$ |
197,066 |
|
|
199,679 |
|
|
206,069 |
|
|
205,910 |
|
|
208,079 |
|
Cumulative effect from change in accounting policies (1) |
|
(11 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(24 |
) |
Wells Fargo net income |
|
5,860 |
|
|
6,064 |
|
|
6,007 |
|
|
5,186 |
|
|
5,136 |
|
Wells Fargo other comprehensive income (loss), net of tax |
|
2,173 |
|
|
537 |
|
|
(1,012 |
) |
|
(540 |
) |
|
(2,659 |
) |
Noncontrolling interests |
|
1 |
|
|
(38 |
) |
|
57 |
|
|
(77 |
) |
|
(178 |
) |
Common stock issued |
|
1,139 |
|
|
239 |
|
|
156 |
|
|
73 |
|
|
1,208 |
|
Common stock repurchased (2) |
|
(4,820 |
) |
|
(7,299 |
) |
|
(7,382 |
) |
|
(2,923 |
) |
|
(3,029 |
) |
Preferred stock redeemed (3) |
|
— |
|
|
— |
|
|
(2,150 |
) |
|
— |
|
|
— |
|
Preferred stock released by ESOP |
|
— |
|
|
268 |
|
|
260 |
|
|
490 |
|
|
231 |
|
Common stock warrants repurchased/exercised |
|
— |
|
|
(131 |
) |
|
(36 |
) |
|
(1 |
) |
|
(157 |
) |
Common stock dividends |
|
(2,054 |
) |
|
(2,016 |
) |
|
(2,062 |
) |
|
(1,900 |
) |
|
(1,911 |
) |
Preferred stock dividends |
|
(353 |
) |
|
(353 |
) |
|
(399 |
) |
|
(394 |
) |
|
(410 |
) |
Stock incentive compensation expense |
|
544 |
|
|
144 |
|
|
202 |
|
|
258 |
|
|
437 |
|
Net change in deferred compensation and related plans |
|
(812 |
) |
|
(28 |
) |
|
(31 |
) |
|
(13 |
) |
|
(813 |
) |
Balance, end of period |
|
$ |
198,733 |
|
|
197,066 |
|
|
199,679 |
|
|
206,069 |
|
|
205,910 |
|
(1) Effective January 1, 2019, we adopted ASU 2016-02 – Leases (Topic 842) and subsequent related
Updates and ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on
Purchased Callable Debt Securities. Effective January 1, 2018, we adopted ASU 2016-04 – Liabilities – Extinguishments of
Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, ASU 2016-01 –
Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial
Liabilities, and ASU 2014-09 – Revenue from Contracts With Customers (Topic 606) and subsequent related Updates.
|
(2) For the quarter ended June 30, 2018, includes $1.0 billion related to a private forward
repurchase transaction that settled in third quarter 2018 for 18.8 million shares of common stock.
|
(3) Represents the impact of the redemption of preferred stock, Series J, in third quarter 2018.
|
|
|
Wells Fargo & Company and Subsidiaries
|
AVERAGE BALANCES, YIELDS AND RATES
PAID (TAXABLE-EQUIVALENT BASIS) (1)(2) |
|
|
Quarter ended March 31, |
|
|
2019 |
|
2018 |
|
|
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
Average |
|
Yields/ |
|
income/ |
|
Average |
|
Yields/ |
|
income/ |
(in millions) |
|
balance |
|
rates |
|
expense |
|
balance |
|
rates |
|
expense |
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks |
|
$ |
140,784 |
|
|
2.33 |
% |
|
$ |
810 |
|
|
172,291 |
|
|
1.49 |
% |
|
$ |
632 |
Federal funds sold and securities purchased under resale agreements |
|
83,539 |
|
|
2.40 |
|
|
495 |
|
|
78,135 |
|
|
1.40 |
|
|
271 |
Debt securities (3): |
|
|
|
|
|
|
|
|
|
|
|
|
Trading debt securities |
|
89,378 |
|
|
3.58 |
|
|
798 |
|
|
78,715 |
|
|
3.24 |
|
|
637 |
Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
14,070 |
|
|
2.14 |
|
|
74 |
|
|
6,426 |
|
|
1.66 |
|
|
26 |
Securities of U.S. states and political subdivisions |
|
48,342 |
|
|
4.02 |
|
|
486 |
|
|
49,956 |
|
|
3.37 |
|
|
421 |
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies |
|
151,494 |
|
|
3.10 |
|
|
1,173 |
|
|
158,472 |
|
|
2.72 |
|
|
1,076 |
Residential and commercial |
|
5,984 |
|
|
4.31 |
|
|
64 |
|
|
8,871 |
|
|
4.12 |
|
|
91 |
Total mortgage-backed securities |
|
157,478 |
|
|
3.14 |
|
|
1,237 |
|
|
167,343 |
|
|
2.79 |
|
|
1,167 |
Other debt securities |
|
46,788 |
|
|
4.46 |
|
|
517 |
|
|
48,094 |
|
|
3.73 |
|
|
444 |
Total available-for-sale debt securities |
|
266,678 |
|
|
3.48 |
|
|
2,314 |
|
|
271,819 |
|
|
3.04 |
|
|
2,058 |
Held-to-maturity debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
44,754 |
|
|
2.20 |
|
|
243 |
|
|
44,723 |
|
|
2.20 |
|
|
243 |
Securities of U.S. states and political subdivisions |
|
6,158 |
|
|
4.03 |
|
|
62 |
|
|
6,259 |
|
|
4.34 |
|
|
68 |
Federal agency and other mortgage-backed securities |
|
96,004 |
|
|
2.74 |
|
|
656 |
|
|
90,789 |
|
|
2.38 |
|
|
541 |
Other debt securities |
|
61 |
|
|
3.96 |
|
|
1 |
|
|
695 |
|
|
3.23 |
|
|
5 |
Total held-to-maturity debt securities |
|
146,977 |
|
|
2.63 |
|
|
962 |
|
|
142,466 |
|
|
2.42 |
|
|
857 |
Total debt securities |
|
503,033 |
|
|
3.25 |
|
|
4,074 |
|
|
493,000 |
|
|
2.89 |
|
|
3,552 |
Mortgage loans held for sale (4) |
|
13,898 |
|
|
4.37 |
|
|
152 |
|
|
18,406 |
|
|
3.89 |
|
|
179 |
Loans held for sale (4) |
|
1,862 |
|
|
5.25 |
|
|
24 |
|
|
2,011 |
|
|
4.92 |
|
|
24 |
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S. |
|
286,579 |
|
|
4.48 |
|
|
3,169 |
|
|
272,040 |
|
|
3.85 |
|
|
2,584 |
Commercial and industrial - Non U.S. |
|
62,957 |
|
|
3.89 |
|
|
604 |
|
|
60,216 |
|
|
3.23 |
|
|
479 |
Real estate mortgage |
|
121,417 |
|
|
4.58 |
|
|
1,373 |
|
|
126,200 |
|
|
4.05 |
|
|
1,262 |
Real estate construction |
|
22,435 |
|
|
5.43 |
|
|
301 |
|
|
24,449 |
|
|
4.54 |
|
|
274 |
Lease financing |
|
19,391 |
|
|
4.61 |
|
|
224 |
|
|
19,265 |
|
|
5.30 |
|
|
255 |
Total commercial loans |
|
512,779 |
|
|
4.48 |
|
|
5,671 |
|
|
502,170 |
|
|
3.91 |
|
|
4,854 |
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
285,214 |
|
|
3.96 |
|
|
2,821 |
|
|
284,207 |
|
|
4.02 |
|
|
2,852 |
Real estate 1-4 family junior lien mortgage |
|
33,791 |
|
|
5.75 |
|
|
481 |
|
|
38,844 |
|
|
5.13 |
|
|
493 |
Credit card |
|
38,182 |
|
|
12.88 |
|
|
1,212 |
|
|
36,468 |
|
|
12.75 |
|
|
1,147 |
Automobile |
|
44,833 |
|
|
5.19 |
|
|
574 |
|
|
51,469 |
|
|
5.16 |
|
|
655 |
Other revolving credit and installment |
|
35,349 |
|
|
7.14 |
|
|
623 |
|
|
37,866 |
|
|
6.46 |
|
|
604 |
Total consumer loans |
|
437,369 |
|
|
5.26 |
|
|
5,711 |
|
|
448,854 |
|
|
5.16 |
|
|
5,751 |
Total loans (4) |
|
950,148 |
|
|
4.84 |
|
|
11,382 |
|
|
951,024 |
|
|
4.50 |
|
|
10,605 |
Equity securities |
|
33,080 |
|
|
2.56 |
|
|
211 |
|
|
39,754 |
|
|
2.35 |
|
|
233 |
Other |
|
4,416 |
|
|
1.63 |
|
|
18 |
|
|
6,015 |
|
|
1.21 |
|
|
19 |
Total earning assets |
|
$ |
1,730,760 |
|
|
4.00 |
% |
|
$ |
17,166 |
|
|
1,760,636 |
|
|
3.55 |
% |
|
$ |
15,515 |
Funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
$ |
56,253 |
|
|
1.42 |
% |
|
$ |
197 |
|
|
67,774 |
|
|
0.77 |
% |
|
$ |
129 |
Market rate and other savings |
|
688,568 |
|
|
0.50 |
|
|
847 |
|
|
679,068 |
|
|
0.22 |
|
|
368 |
Savings certificates |
|
25,231 |
|
|
1.26 |
|
|
78 |
|
|
20,018 |
|
|
0.34 |
|
|
17 |
Other time deposits |
|
97,830 |
|
|
2.67 |
|
|
645 |
|
|
76,589 |
|
|
1.84 |
|
|
347 |
Deposits in foreign offices |
|
55,443 |
|
|
1.89 |
|
|
259 |
|
|
94,810 |
|
|
0.98 |
|
|
229 |
Total interest-bearing deposits |
|
923,325 |
|
|
0.89 |
|
|
2,026 |
|
|
938,259 |
|
|
0.47 |
|
|
1,090 |
Short-term borrowings |
|
108,789 |
|
|
2.22 |
|
|
597 |
|
|
101,779 |
|
|
1.24 |
|
|
312 |
Long-term debt |
|
233,172 |
|
|
3.32 |
|
|
1,927 |
|
|
226,062 |
|
|
2.80 |
|
|
1,576 |
Other liabilities |
|
25,292 |
|
|
2.28 |
|
|
143 |
|
|
27,927 |
|
|
1.92 |
|
|
132 |
Total interest-bearing liabilities |
|
1,290,578 |
|
|
1.47 |
|
|
4,693 |
|
|
1,294,027 |
|
|
0.97 |
|
|
3,110 |
Portion of noninterest-bearing funding sources |
|
440,182 |
|
|
— |
|
|
— |
|
|
466,609 |
|
|
— |
|
|
— |
Total funding sources |
|
$ |
1,730,760 |
|
|
1.09 |
|
|
4,693 |
|
|
1,760,636 |
|
|
0.71 |
|
|
3,110 |
Net interest margin and net interest income on a taxable-equivalent basis
(5) |
|
|
|
2.91 |
% |
|
$ |
12,473 |
|
|
|
|
2.84 |
% |
|
$ |
12,405 |
Noninterest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
19,614 |
|
|
|
|
|
|
18,853 |
|
|
|
|
|
Goodwill |
|
26,420 |
|
|
|
|
|
|
26,516 |
|
|
|
|
|
Other |
|
106,435 |
|
|
|
|
|
|
109,891 |
|
|
|
|
|
Total noninterest-earning assets |
|
$ |
152,469 |
|
|
|
|
|
|
155,260 |
|
|
|
|
|
Noninterest-bearing funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
338,737 |
|
|
|
|
|
|
358,919 |
|
|
|
|
|
Other liabilities |
|
55,565 |
|
|
|
|
|
|
56,770 |
|
|
|
|
|
Total equity |
|
198,349 |
|
|
|
|
|
|
206,180 |
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets |
|
(440,182 |
) |
|
|
|
|
|
(466,609 |
) |
|
|
|
|
Net noninterest-bearing funding sources |
|
$ |
152,469 |
|
|
|
|
|
|
155,260 |
|
|
|
|
|
Total assets |
|
$ |
1,883,229 |
|
|
|
|
|
|
1,915,896 |
|
|
|
|
|
|
(1) Our average prime rate was 5.50% and 4.52% for the quarters ended March 31, 2019 and 2018,
respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.69% and 1.93% for the same quarters,
respectively.
|
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated
with the respective asset and liability categories.
|
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based
on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods
presented.
|
(4) Nonaccrual loans and related income are included in their respective loan categories.
|
(5) Includes taxable-equivalent adjustments of $162 million and $167 million for the quarters ended
March 31, 2019 and 2018, respectively, predominantly related to tax-exempt income on certain loans and securities. The
federal statutory tax rate utilized was 21% for the periods presented.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER AVERAGE BALANCES, YIELDS
AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2) |
|
|
Quarter ended |
|
|
Mar 31, 2019 |
|
Dec 31, 2018 |
|
Sep 30, 2018 |
|
Jun 30, 2018 |
|
Mar 31, 2018 |
|
|
Average |
|
Yields/ |
|
Average |
|
Yields/ |
|
Average |
|
Yields/ |
|
Average |
|
Yields/ |
|
Average |
|
Yields/ |
($ in billions) |
|
balance |
|
rates |
|
balance |
|
rates |
|
balance |
|
rates |
|
balance |
|
rates |
|
balance |
|
rates |
Earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks |
|
$ |
140.8 |
|
|
2.33 |
% |
|
$ |
150.1 |
|
|
2.18 |
% |
|
$ |
148.6 |
|
|
1.93 |
% |
|
$ |
154.8 |
|
|
1.75 |
% |
|
$ |
172.3 |
|
|
1.49 |
% |
Federal funds sold and securities purchased under resale agreements |
|
83.5 |
|
|
2.40 |
|
|
76.1 |
|
|
2.22 |
|
|
79.9 |
|
|
1.93 |
|
|
80.0 |
|
|
1.73 |
|
|
78.1 |
|
|
1.40 |
|
Debt securities (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading debt securities |
|
89.4 |
|
|
3.58 |
|
|
90.1 |
|
|
3.52 |
|
|
84.5 |
|
|
3.45 |
|
|
80.7 |
|
|
3.45 |
|
|
78.7 |
|
|
3.24 |
|
Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
14.1 |
|
|
2.14 |
|
|
7.2 |
|
|
1.80 |
|
|
6.4 |
|
|
1.65 |
|
|
6.4 |
|
|
1.66 |
|
|
6.4 |
|
|
1.66 |
|
Securities of U.S. states and political subdivisions |
|
48.3 |
|
|
4.02 |
|
|
47.6 |
|
|
4.05 |
|
|
46.6 |
|
|
3.76 |
|
|
47.4 |
|
|
3.91 |
|
|
50.0 |
|
|
3.37 |
|
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies |
|
151.5 |
|
|
3.10 |
|
|
155.3 |
|
|
2.91 |
|
|
155.5 |
|
|
2.77 |
|
|
154.9 |
|
|
2.75 |
|
|
158.4 |
|
|
2.72 |
|
Residential and commercial |
|
6.0 |
|
|
4.31 |
|
|
6.7 |
|
|
4.87 |
|
|
7.3 |
|
|
4.68 |
|
|
8.2 |
|
|
4.86 |
|
|
8.9 |
|
|
4.12 |
|
Total mortgage-backed securities |
|
157.5 |
|
|
3.14 |
|
|
162.0 |
|
|
2.99 |
|
|
162.8 |
|
|
2.86 |
|
|
163.1 |
|
|
2.86 |
|
|
167.3 |
|
|
2.79 |
|
Other debt securities |
|
46.8 |
|
|
4.46 |
|
|
46.1 |
|
|
4.46 |
|
|
46.4 |
|
|
4.39 |
|
|
47.1 |
|
|
4.33 |
|
|
48.1 |
|
|
3.73 |
|
Total available-for-sale debt securities |
|
266.7 |
|
|
3.48 |
|
|
262.9 |
|
|
3.41 |
|
|
262.2 |
|
|
3.26 |
|
|
264.0 |
|
|
3.28 |
|
|
271.8 |
|
|
3.04 |
|
Held-to-maturity debt securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
44.7 |
|
|
2.20 |
|
|
44.7 |
|
|
2.19 |
|
|
44.7 |
|
|
2.18 |
|
|
44.7 |
|
|
2.19 |
|
|
44.7 |
|
|
2.20 |
|
Securities of U.S. states and political subdivisions |
|
6.2 |
|
|
4.03 |
|
|
6.2 |
|
|
4.34 |
|
|
6.3 |
|
|
4.33 |
|
|
6.3 |
|
|
4.34 |
|
|
6.3 |
|
|
4.34 |
|
Federal agency and other mortgage-backed securities |
|
95.9 |
|
|
2.74 |
|
|
95.8 |
|
|
2.46 |
|
|
95.3 |
|
|
2.27 |
|
|
94.9 |
|
|
2.33 |
|
|
90.8 |
|
|
2.38 |
|
Other debt securities |
|
0.1 |
|
|
3.96 |
|
|
0.1 |
|
|
3.65 |
|
|
0.1 |
|
|
5.61 |
|
|
0.6 |
|
|
4.66 |
|
|
0.7 |
|
|
3.23 |
|
Total held-to-maturity debt securities |
|
146.9 |
|
|
2.63 |
|
|
146.8 |
|
|
2.46 |
|
|
146.4 |
|
|
2.33 |
|
|
146.5 |
|
|
2.38 |
|
|
142.5 |
|
|
2.42 |
|
Total debt securities |
|
503.0 |
|
|
3.25 |
|
|
499.8 |
|
|
3.15 |
|
|
493.1 |
|
|
3.02 |
|
|
491.2 |
|
|
3.04 |
|
|
493.0 |
|
|
2.89 |
|
Mortgage loans held for sale |
|
13.9 |
|
|
4.37 |
|
|
17.0 |
|
|
4.46 |
|
|
19.3 |
|
|
4.33 |
|
|
18.8 |
|
|
4.22 |
|
|
18.4 |
|
|
3.89 |
|
Loans held for sale |
|
1.9 |
|
|
5.25 |
|
|
2.0 |
|
|
6.69 |
|
|
2.6 |
|
|
5.28 |
|
|
3.5 |
|
|
5.48 |
|
|
2.0 |
|
|
4.92 |
|
Commercial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S. |
|
286.6 |
|
|
4.48 |
|
|
281.4 |
|
|
4.40 |
|
|
273.8 |
|
|
4.22 |
|
|
275.3 |
|
|
4.16 |
|
|
272.0 |
|
|
3.85 |
|
Commercial and industrial - Non U.S. |
|
63.0 |
|
|
3.89 |
|
|
62.0 |
|
|
3.73 |
|
|
60.9 |
|
|
3.63 |
|
|
59.7 |
|
|
3.51 |
|
|
60.2 |
|
|
3.23 |
|
Real estate mortgage |
|
121.4 |
|
|
4.58 |
|
|
120.4 |
|
|
4.51 |
|
|
121.3 |
|
|
4.35 |
|
|
124.0 |
|
|
4.27 |
|
|
126.2 |
|
|
4.05 |
|
Real estate construction |
|
22.4 |
|
|
5.43 |
|
|
23.1 |
|
|
5.32 |
|
|
23.3 |
|
|
5.05 |
|
|
23.6 |
|
|
4.88 |
|
|
24.4 |
|
|
4.54 |
|
Lease financing |
|
19.4 |
|
|
4.61 |
|
|
19.5 |
|
|
4.48 |
|
|
19.5 |
|
|
4.69 |
|
|
19.3 |
|
|
4.48 |
|
|
19.4 |
|
|
5.30 |
|
Total commercial loans |
|
512.8 |
|
|
4.48 |
|
|
506.4 |
|
|
4.39 |
|
|
498.8 |
|
|
4.24 |
|
|
501.9 |
|
|
4.15 |
|
|
502.2 |
|
|
3.91 |
|
Consumer loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
285.2 |
|
|
3.96 |
|
|
285.3 |
|
|
4.02 |
|
|
284.1 |
|
|
4.07 |
|
|
283.1 |
|
|
4.06 |
|
|
284.2 |
|
|
4.02 |
|
Real estate 1-4 family junior lien mortgage |
|
33.8 |
|
|
5.75 |
|
|
34.8 |
|
|
5.60 |
|
|
35.9 |
|
|
5.50 |
|
|
37.2 |
|
|
5.32 |
|
|
38.8 |
|
|
5.13 |
|
Credit card |
|
38.2 |
|
|
12.88 |
|
|
37.9 |
|
|
12.69 |
|
|
36.9 |
|
|
12.77 |
|
|
35.9 |
|
|
12.66 |
|
|
36.4 |
|
|
12.75 |
|
Automobile |
|
44.8 |
|
|
5.19 |
|
|
45.5 |
|
|
5.16 |
|
|
47.0 |
|
|
5.20 |
|
|
48.6 |
|
|
5.18 |
|
|
51.5 |
|
|
5.16 |
|
Other revolving credit and installment |
|
35.3 |
|
|
7.14 |
|
|
36.4 |
|
|
6.95 |
|
|
36.8 |
|
|
6.78 |
|
|
37.4 |
|
|
6.62 |
|
|
37.9 |
|
|
6.46 |
|
Total consumer loans |
|
437.3 |
|
|
5.26 |
|
|
439.9 |
|
|
5.25 |
|
|
440.7 |
|
|
5.26 |
|
|
442.2 |
|
|
5.20 |
|
|
448.8 |
|
|
5.16 |
|
Total loans |
|
950.1 |
|
|
4.84 |
|
|
946.3 |
|
|
4.79 |
|
|
939.5 |
|
|
4.72 |
|
|
944.1 |
|
|
4.64 |
|
|
951.0 |
|
|
4.50 |
|
Equity securities |
|
33.1 |
|
|
2.56 |
|
|
37.4 |
|
|
2.79 |
|
|
37.9 |
|
|
2.98 |
|
|
37.3 |
|
|
2.38 |
|
|
39.8 |
|
|
2.35 |
|
Other |
|
4.5 |
|
|
1.63 |
|
|
4.2 |
|
|
1.78 |
|
|
4.7 |
|
|
1.47 |
|
|
5.6 |
|
|
1.48 |
|
|
6.0 |
|
|
1.21 |
|
Total earning assets |
|
$ |
1,730.8 |
|
|
4.00 |
% |
|
$ |
1,732.9 |
|
|
3.93 |
% |
|
$ |
1,725.6 |
|
|
3.81 |
% |
|
$ |
1,735.3 |
|
|
3.73 |
% |
|
$ |
1,760.6 |
|
|
3.55 |
% |
Funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking |
|
$ |
56.3 |
|
|
1.42 |
% |
|
$ |
54.0 |
|
|
1.21 |
% |
|
$ |
51.2 |
|
|
1.01 |
% |
|
$ |
80.3 |
|
|
0.90 |
% |
|
$ |
67.8 |
|
|
0.77 |
% |
Market rate and other savings |
|
688.6 |
|
|
0.50 |
|
|
689.6 |
|
|
0.43 |
|
|
693.9 |
|
|
0.35 |
|
|
676.7 |
|
|
0.26 |
|
|
679.1 |
|
|
0.22 |
|
Savings certificates |
|
25.2 |
|
|
1.26 |
|
|
22.0 |
|
|
0.87 |
|
|
20.6 |
|
|
0.62 |
|
|
20.0 |
|
|
0.43 |
|
|
20.0 |
|
|
0.34 |
|
Other time deposits |
|
97.8 |
|
|
2.67 |
|
|
92.6 |
|
|
2.46 |
|
|
87.8 |
|
|
2.35 |
|
|
82.1 |
|
|
2.26 |
|
|
76.6 |
|
|
1.84 |
|
Deposits in foreign offices |
|
55.4 |
|
|
1.89 |
|
|
56.1 |
|
|
1.66 |
|
|
53.9 |
|
|
1.50 |
|
|
51.5 |
|
|
1.30 |
|
|
94.8 |
|
|
0.98 |
|
Total interest-bearing deposits |
|
923.3 |
|
|
0.89 |
|
|
914.3 |
|
|
0.77 |
|
|
907.4 |
|
|
0.66 |
|
|
910.6 |
|
|
0.56 |
|
|
938.3 |
|
|
0.47 |
|
Short-term borrowings |
|
108.8 |
|
|
2.22 |
|
|
106.0 |
|
|
2.04 |
|
|
105.5 |
|
|
1.74 |
|
|
103.8 |
|
|
1.54 |
|
|
101.8 |
|
|
1.24 |
|
Long-term debt |
|
233.2 |
|
|
3.32 |
|
|
226.6 |
|
|
3.17 |
|
|
220.7 |
|
|
3.02 |
|
|
223.8 |
|
|
2.97 |
|
|
226.0 |
|
|
2.80 |
|
Other liabilities |
|
25.3 |
|
|
2.28 |
|
|
27.4 |
|
|
2.41 |
|
|
27.0 |
|
|
2.40 |
|
|
28.2 |
|
|
2.12 |
|
|
27.9 |
|
|
1.92 |
|
Total interest-bearing liabilities |
|
1,290.6 |
|
|
1.47 |
|
|
1,274.3 |
|
|
1.34 |
|
|
1,260.6 |
|
|
1.20 |
|
|
1,266.4 |
|
|
1.10 |
|
|
1,294.0 |
|
|
0.97 |
|
Portion of noninterest-bearing funding sources |
|
440.2 |
|
|
— |
|
|
458.6 |
|
|
— |
|
|
465.0 |
|
|
— |
|
|
468.9 |
|
|
— |
|
|
466.6 |
|
|
— |
|
Total funding sources |
|
$ |
1,730.8 |
|
|
1.09 |
|
|
$ |
1,732.9 |
|
|
0.99 |
|
|
$ |
1,725.6 |
|
|
0.87 |
|
|
$ |
1,735.3 |
|
|
0.80 |
|
|
$ |
1,760.6 |
|
|
0.71 |
|
Net interest margin on a taxable-equivalent basis |
|
|
|
2.91 |
% |
|
|
|
2.94 |
% |
|
|
|
2.94 |
% |
|
|
|
2.93 |
% |
|
|
|
2.84 |
% |
Noninterest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
19.6 |
|
|
|
|
19.3 |
|
|
|
|
18.4 |
|
|
|
|
18.6 |
|
|
|
|
18.9 |
|
|
|
Goodwill |
|
26.4 |
|
|
|
|
26.4 |
|
|
|
|
26.4 |
|
|
|
|
26.4 |
|
|
|
|
26.5 |
|
|
|
Other |
|
106.4 |
|
|
|
|
100.4 |
|
|
|
|
105.9 |
|
|
|
|
104.6 |
|
|
|
|
109.9 |
|
|
|
Total noninterest-earnings assets |
|
$ |
152.4 |
|
|
|
|
146.1 |
|
|
|
|
150.7 |
|
|
|
|
149.6 |
|
|
|
|
155.3 |
|
|
|
Noninterest-bearing funding sources |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
338.8 |
|
|
|
|
354.6 |
|
|
|
|
359.0 |
|
|
|
|
360.7 |
|
|
|
|
358.9 |
|
|
|
Other liabilities |
|
55.5 |
|
|
|
|
51.7 |
|
|
|
|
53.9 |
|
|
|
|
51.7 |
|
|
|
|
56.8 |
|
|
|
Total equity |
|
198.3 |
|
|
|
|
198.4 |
|
|
|
|
202.8 |
|
|
|
|
206.1 |
|
|
|
|
206.2 |
|
|
|
Noninterest-bearing funding sources used to fund earning assets |
|
(440.2 |
) |
|
|
|
(458.6 |
) |
|
|
|
(465.0 |
) |
|
|
|
(468.9 |
) |
|
|
|
(466.6 |
) |
|
|
Net noninterest-bearing funding sources |
|
$ |
152.4 |
|
|
|
|
146.1 |
|
|
|
|
150.7 |
|
|
|
|
149.6 |
|
|
|
|
155.3 |
|
|
|
Total assets |
|
$ |
1,883.2 |
|
|
|
|
1,879.0 |
|
|
|
|
1,876.3 |
|
|
|
|
1,884.9 |
|
|
|
|
1,915.9 |
|
|
|
|
(1) Our average prime rate was 5.50% for the quarter ended March 31, 2019, 5.28% for the
quarter ended December 31, 2018, 5.01% for the quarter ended September 30, 2018, 4.80% for the quarter ended June 30, 2018
and 4.52% for the quarter ended March 31, 2018. The average three-month London Interbank Offered Rate (LIBOR) was 2.69%,
2.62%, 2.34%, 2.34% and 1.93% for the same quarters, respectively.
|
(2) Yields/rates 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.
|
|
Wells Fargo & Company and Subsidiaries
|
NONINTEREST INCOME |
|
|
Quarter ended March 31, |
|
% |
(in millions) |
|
2019 |
|
2018 |
|
Change |
Service charges on deposit accounts |
|
$ |
1,094 |
|
|
1,173 |
|
|
(7 |
)% |
Trust and investment fees: |
|
|
|
|
|
|
Brokerage advisory, commissions and other fees |
|
2,193 |
|
|
2,403 |
|
|
(9 |
) |
Trust and investment management |
|
786 |
|
|
850 |
|
|
(8 |
) |
Investment banking |
|
394 |
|
|
430 |
|
|
(8 |
) |
Total trust and investment fees |
|
3,373 |
|
|
3,683 |
|
|
(8 |
) |
Card fees |
|
944 |
|
|
908 |
|
|
4 |
|
Other fees: |
|
|
|
|
|
|
Lending related charges and fees (1) |
|
347 |
|
|
380 |
|
|
(9 |
) |
Cash network fees |
|
109 |
|
|
126 |
|
|
(13 |
) |
Commercial real estate brokerage commissions |
|
81 |
|
|
85 |
|
|
(5 |
) |
Wire transfer and other remittance fees |
|
113 |
|
|
116 |
|
|
(3 |
) |
All other fees |
|
120 |
|
|
93 |
|
|
29 |
|
Total other fees |
|
770 |
|
|
800 |
|
|
(4 |
) |
Mortgage banking: |
|
|
|
|
|
|
Servicing income, net |
|
364 |
|
|
468 |
|
|
(22 |
) |
Net gains on mortgage loan origination/sales activities |
|
344 |
|
|
466 |
|
|
(26 |
) |
Total mortgage banking |
|
708 |
|
|
934 |
|
|
(24 |
) |
Insurance |
|
96 |
|
|
114 |
|
|
(16 |
) |
Net gains from trading activities |
|
357 |
|
|
243 |
|
|
47 |
|
Net gains on debt securities |
|
125 |
|
|
1 |
|
|
NM |
Net gains from equity securities |
|
814 |
|
|
783 |
|
|
4 |
|
Lease income |
|
443 |
|
|
455 |
|
|
(3 |
) |
Life insurance investment income |
|
159 |
|
|
164 |
|
|
(3 |
) |
All other |
|
415 |
|
|
438 |
|
|
(5 |
) |
Total |
|
$ |
9,298 |
|
|
9,696 |
|
|
(4 |
) |
NM - Not meaningful
|
(1) Represents combined amount of previously reported "Charges and fees on loans" and "Letters of
credit fees".
|
|
NONINTEREST EXPENSE
|
|
|
Quarter ended March 31, |
|
% |
(in millions) |
|
2019 |
|
2018 |
|
Change |
Salaries |
|
$ |
4,425 |
|
|
4,363 |
|
|
1 |
% |
Commission and incentive compensation |
|
2,845 |
|
|
2,768 |
|
|
3 |
|
Employee benefits |
|
1,938 |
|
|
1,598 |
|
|
21 |
|
Equipment |
|
661 |
|
|
617 |
|
|
7 |
|
Net occupancy (1) |
|
717 |
|
|
713 |
|
|
1 |
|
Core deposit and other intangibles |
|
28 |
|
|
265 |
|
|
(89 |
) |
FDIC and other deposit assessments |
|
159 |
|
|
324 |
|
|
(51 |
) |
Outside professional services |
|
678 |
|
|
821 |
|
|
(17 |
) |
Operating losses |
|
238 |
|
|
1,468 |
|
|
(84 |
) |
Contract services |
|
563 |
|
|
447 |
|
|
26 |
|
Operating leases (2) |
|
286 |
|
|
320 |
|
|
(11 |
) |
Advertising and promotion |
|
237 |
|
|
153 |
|
|
55 |
|
Outside data processing |
|
167 |
|
|
162 |
|
|
3 |
|
Travel and entertainment |
|
147 |
|
|
152 |
|
|
(3 |
) |
Postage, stationery and supplies |
|
122 |
|
|
142 |
|
|
(14 |
) |
Telecommunications |
|
91 |
|
|
92 |
|
|
(1 |
) |
Foreclosed assets |
|
37 |
|
|
38 |
|
|
(3 |
) |
Insurance |
|
25 |
|
|
26 |
|
|
(4 |
) |
All other |
|
552 |
|
|
573 |
|
|
(4 |
) |
Total |
|
$ |
13,916 |
|
|
15,042 |
|
|
(7 |
) |
(1) Represents expenses for both leased and owned properties.
|
(2) Represents expenses for assets we lease to customers.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONINTEREST INCOME |
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Service charges on deposit accounts |
|
$ |
1,094 |
|
|
1,176 |
|
|
1,204 |
|
|
1,163 |
|
|
1,173 |
Trust and investment fees: |
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees |
|
2,193 |
|
|
2,345 |
|
|
2,334 |
|
|
2,354 |
|
|
2,403 |
Trust and investment management |
|
786 |
|
|
796 |
|
|
835 |
|
|
835 |
|
|
850 |
Investment banking |
|
394 |
|
|
379 |
|
|
462 |
|
|
486 |
|
|
430 |
Total trust and investment fees |
|
3,373 |
|
|
3,520 |
|
|
3,631 |
|
|
3,675 |
|
|
3,683 |
Card fees |
|
944 |
|
|
981 |
|
|
1,017 |
|
|
1,001 |
|
|
908 |
Other fees: |
|
|
|
|
|
|
|
|
|
|
Lending related charges and fees (1) |
|
347 |
|
|
400 |
|
|
370 |
|
|
376 |
|
|
380 |
Cash network fees |
|
109 |
|
|
114 |
|
|
121 |
|
|
120 |
|
|
126 |
Commercial real estate brokerage commissions |
|
81 |
|
|
145 |
|
|
129 |
|
|
109 |
|
|
85 |
Wire transfer and other remittance fees |
|
113 |
|
|
120 |
|
|
120 |
|
|
121 |
|
|
116 |
All other fees |
|
120 |
|
|
109 |
|
|
110 |
|
|
120 |
|
|
93 |
Total other fees |
|
770 |
|
|
888 |
|
|
850 |
|
|
846 |
|
|
800 |
Mortgage banking: |
|
|
|
|
|
|
|
|
|
|
Servicing income, net |
|
364 |
|
|
109 |
|
|
390 |
|
|
406 |
|
|
468 |
Net gains on mortgage loan origination/sales activities |
|
344 |
|
|
358 |
|
|
456 |
|
|
364 |
|
|
466 |
Total mortgage banking |
|
708 |
|
|
467 |
|
|
846 |
|
|
770 |
|
|
934 |
Insurance |
|
96 |
|
|
109 |
|
|
104 |
|
|
102 |
|
|
114 |
Net gains from trading activities |
|
357 |
|
|
10 |
|
|
158 |
|
|
191 |
|
|
243 |
Net gains on debt securities |
|
125 |
|
|
9 |
|
|
57 |
|
|
41 |
|
|
1 |
Net gains from equity securities |
|
814 |
|
|
21 |
|
|
416 |
|
|
295 |
|
|
783 |
Lease income |
|
443 |
|
|
402 |
|
|
453 |
|
|
443 |
|
|
455 |
Life insurance investment income |
|
159 |
|
|
158 |
|
|
167 |
|
|
162 |
|
|
164 |
All other |
|
415 |
|
|
595 |
|
|
466 |
|
|
323 |
|
|
438 |
Total |
|
$ |
9,298 |
|
|
8,336 |
|
|
9,369 |
|
|
9,012 |
|
|
9,696 |
(1) Represents combined amount of previously reported "Charges and fees on loans" and
"Letters of credit fees".
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
Quarter ended |
|
|
Mar 31, |
|
Dec 31, |
|
Sep 30, |
|
Jun 30, |
|
Mar 31, |
(in millions) |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2018 |
Salaries |
|
$ |
4,425 |
|
|
4,545 |
|
|
4,461 |
|
|
4,465 |
|
|
4,363 |
Commission and incentive compensation |
|
2,845 |
|
|
2,427 |
|
|
2,427 |
|
|
2,642 |
|
|
2,768 |
Employee benefits |
|
1,938 |
|
|
706 |
|
|
1,377 |
|
|
1,245 |
|
|
1,598 |
Equipment |
|
661 |
|
|
643 |
|
|
634 |
|
|
550 |
|
|
617 |
Net occupancy (1) |
|
717 |
|
|
735 |
|
|
718 |
|
|
722 |
|
|
713 |
Core deposit and other intangibles |
|
28 |
|
|
264 |
|
|
264 |
|
|
265 |
|
|
265 |
FDIC and other deposit assessments |
|
159 |
|
|
153 |
|
|
336 |
|
|
297 |
|
|
324 |
Outside professional services |
|
678 |
|
|
843 |
|
|
761 |
|
|
881 |
|
|
821 |
Operating losses |
|
238 |
|
|
432 |
|
|
605 |
|
|
619 |
|
|
1,468 |
Contract services |
|
563 |
|
|
616 |
|
|
593 |
|
|
536 |
|
|
447 |
Operating leases (2) |
|
286 |
|
|
392 |
|
|
311 |
|
|
311 |
|
|
320 |
Advertising and promotion |
|
237 |
|
|
254 |
|
|
223 |
|
|
227 |
|
|
153 |
Outside data processing |
|
167 |
|
|
168 |
|
|
166 |
|
|
164 |
|
|
162 |
Travel and entertainment |
|
147 |
|
|
168 |
|
|
141 |
|
|
157 |
|
|
152 |
Postage, stationery and supplies |
|
122 |
|
|
132 |
|
|
120 |
|
|
121 |
|
|
142 |
Telecommunications |
|
91 |
|
|
91 |
|
|
90 |
|
|
88 |
|
|
92 |
Foreclosed assets |
|
37 |
|
|
47 |
|
|
59 |
|
|
44 |
|
|
38 |
Insurance |
|
25 |
|
|
25 |
|
|
26 |
|
|
24 |
|
|
26 |
All other |
|
552 |
|
|
698 |
|
|
451 |
|
|
624 |
|
|
573 |
Total |
|
$ |
13,916 |
|
|
13,339 |
|
|
13,763 |
|
|
13,982 |
|
|
15,042 |
(1) Represents expenses for both leased and owned properties.
|
(2) Represents expenses for assets we lease to customers.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER DEFERRED COMPENSATION PLAN INVESTMENT RESULTS
|
|
|
Quarter ended |
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Net interest income |
|
$ |
13 |
|
|
23 |
|
|
14 |
|
|
13 |
|
|
10 |
|
Net gains (losses) from equity securities |
|
345 |
|
|
(452 |
) |
|
118 |
|
|
37 |
|
|
(6 |
) |
Total revenue (losses) from deferred compensation plan investments |
|
358 |
|
|
(429 |
) |
|
132 |
|
|
50 |
|
|
4 |
|
Employee benefits expense |
|
357 |
|
|
(428 |
) |
|
129 |
|
|
53 |
|
|
4 |
|
Income (loss) before income tax expense |
|
$ |
1 |
|
|
(1 |
) |
|
3 |
|
|
(3 |
) |
|
— |
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED BALANCE SHEET
|
(in millions, except shares) |
|
Mar 31,
2019 |
|
Dec 31,
2018
|
|
%
Change
|
Assets |
|
|
|
|
|
|
Cash and due from banks |
|
$ |
20,650 |
|
|
23,551 |
|
|
(12 |
)%
|
Interest-earning deposits with banks |
|
128,318 |
|
|
149,736 |
|
|
(14 |
) |
Total cash, cash equivalents, and restricted cash |
|
148,968 |
|
|
173,287 |
|
|
(14 |
) |
Federal funds sold and securities purchased under resale agreements |
|
98,621 |
|
|
80,207 |
|
|
23 |
|
Debt securities: |
|
|
|
|
|
|
Trading, at fair value |
|
70,378 |
|
|
69,989 |
|
|
1 |
|
Available-for-sale, at fair value |
|
268,099 |
|
|
269,912 |
|
|
(1 |
) |
Held-to-maturity, at cost |
|
144,990 |
|
|
144,788 |
|
|
— |
|
Mortgage loans held for sale |
|
15,016 |
|
|
15,126 |
|
|
(1 |
) |
Loans held for sale |
|
1,018 |
|
|
2,041 |
|
|
(50 |
) |
Loans |
|
948,249 |
|
|
953,110 |
|
|
(1 |
) |
Allowance for loan losses |
|
(9,900 |
) |
|
(9,775 |
) |
|
1 |
|
Net loans |
|
938,349 |
|
|
943,335 |
|
|
(1 |
) |
Mortgage servicing rights: |
|
|
|
|
|
|
Measured at fair value |
|
13,336 |
|
|
14,649 |
|
|
(9 |
) |
Amortized |
|
1,427 |
|
|
1,443 |
|
|
(1 |
) |
Premises and equipment, net |
|
8,825 |
|
|
8,920 |
|
|
(1 |
) |
Goodwill |
|
26,420 |
|
|
26,418 |
|
|
— |
|
Derivative assets |
|
11,238 |
|
|
10,770 |
|
|
4 |
|
Equity securities |
|
58,440 |
|
|
55,148 |
|
|
6 |
|
Other assets |
|
82,667 |
|
|
79,850 |
|
|
4 |
|
Total assets |
|
$ |
1,887,792 |
|
|
1,895,883 |
|
|
— |
|
Liabilities |
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
341,399 |
|
|
349,534 |
|
|
(2 |
) |
Interest-bearing deposits |
|
922,614 |
|
|
936,636 |
|
|
(1 |
) |
Total deposits |
|
1,264,013 |
|
|
1,286,170 |
|
|
(2 |
) |
Short-term borrowings |
|
106,597 |
|
|
105,787 |
|
|
1 |
|
Derivative liabilities |
|
7,393 |
|
|
8,499 |
|
|
(13 |
) |
Accrued expenses and other liabilities |
|
74,717 |
|
|
69,317 |
|
|
8 |
|
Long-term debt |
|
236,339 |
|
|
229,044 |
|
|
3 |
|
Total liabilities |
|
1,689,059 |
|
|
1,698,817 |
|
|
(1 |
) |
Equity |
|
|
|
|
|
|
Wells Fargo stockholders’ equity: |
|
|
|
|
|
|
Preferred stock |
|
23,214 |
|
|
23,214 |
|
|
— |
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued
5,481,811,474 shares |
|
9,136 |
|
|
9,136 |
|
|
— |
|
Additional paid-in capital |
|
60,409 |
|
|
60,685 |
|
|
— |
|
Retained earnings |
|
160,776 |
|
|
158,163 |
|
|
2 |
|
Cumulative other comprehensive income (loss) |
|
(3,682 |
) |
|
(6,336 |
) |
|
(42 |
) |
Treasury stock – 969,863,644 shares and 900,557,866 shares |
|
(50,519 |
) |
|
(47,194 |
) |
|
7 |
|
Unearned ESOP shares |
|
(1,502 |
) |
|
(1,502 |
) |
|
— |
|
Total Wells Fargo stockholders’ equity |
|
197,832 |
|
|
196,166 |
|
|
1 |
|
Noncontrolling interests |
|
901 |
|
|
900 |
|
|
— |
|
Total equity |
|
198,733 |
|
|
197,066 |
|
|
1 |
|
Total liabilities and equity |
|
$ |
1,887,792 |
|
|
1,895,883 |
|
|
— |
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
20,650 |
|
|
23,551 |
|
|
18,791 |
|
|
20,450 |
|
|
18,145 |
|
Interest-earning deposits with banks |
|
128,318 |
|
|
149,736 |
|
|
140,732 |
|
|
142,999 |
|
|
184,250 |
|
Total cash, cash equivalents, and restricted cash |
|
148,968 |
|
|
173,287 |
|
|
159,523 |
|
|
163,449 |
|
|
202,395 |
|
Federal funds sold and securities purchased under resale agreements |
|
98,621 |
|
|
80,207 |
|
|
83,471 |
|
|
80,184 |
|
|
73,550 |
|
Debt securities: |
|
|
|
|
|
|
|
|
|
|
Trading, at fair value |
|
70,378 |
|
|
69,989 |
|
|
65,188 |
|
|
65,602 |
|
|
59,866 |
|
Available-for-sale, at fair value |
|
268,099 |
|
|
269,912 |
|
|
262,964 |
|
|
265,687 |
|
|
271,656 |
|
Held-to-maturity, at cost |
|
144,990 |
|
|
144,788 |
|
|
144,131 |
|
|
144,206 |
|
|
141,446 |
|
Mortgage loans held for sale |
|
15,016 |
|
|
15,126 |
|
|
19,225 |
|
|
21,509 |
|
|
17,944 |
|
Loans held for sale |
|
1,018 |
|
|
2,041 |
|
|
1,765 |
|
|
3,408 |
|
|
3,581 |
|
Loans |
|
948,249 |
|
|
953,110 |
|
|
942,300 |
|
|
944,265 |
|
|
947,308 |
|
Allowance for loan losses |
|
(9,900 |
) |
|
(9,775 |
) |
|
(10,021 |
) |
|
(10,193 |
) |
|
(10,373 |
) |
Net loans |
|
938,349 |
|
|
943,335 |
|
|
932,279 |
|
|
934,072 |
|
|
936,935 |
|
Mortgage servicing rights: |
|
|
|
|
|
|
|
|
|
|
Measured at fair value |
|
13,336 |
|
|
14,649 |
|
|
15,980 |
|
|
15,411 |
|
|
15,041 |
|
Amortized |
|
1,427 |
|
|
1,443 |
|
|
1,414 |
|
|
1,407 |
|
|
1,411 |
|
Premises and equipment, net |
|
8,825 |
|
|
8,920 |
|
|
8,802 |
|
|
8,882 |
|
|
8,828 |
|
Goodwill |
|
26,420 |
|
|
26,418 |
|
|
26,425 |
|
|
26,429 |
|
|
26,445 |
|
Derivative assets |
|
11,238 |
|
|
10,770 |
|
|
11,811 |
|
|
11,099 |
|
|
11,467 |
|
Equity securities |
|
58,440 |
|
|
55,148 |
|
|
61,755 |
|
|
57,505 |
|
|
58,935 |
|
Other assets |
|
82,667 |
|
|
79,850 |
|
|
78,248 |
|
|
80,850 |
|
|
85,888 |
|
Total assets |
|
$ |
1,887,792 |
|
|
1,895,883 |
|
|
1,872,981 |
|
|
1,879,700 |
|
|
1,915,388 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
341,399 |
|
|
349,534 |
|
|
352,869 |
|
|
365,021 |
|
|
370,085 |
|
Interest-bearing deposits |
|
922,614 |
|
|
936,636 |
|
|
913,725 |
|
|
903,843 |
|
|
933,604 |
|
Total deposits |
|
1,264,013 |
|
|
1,286,170 |
|
|
1,266,594 |
|
|
1,268,864 |
|
|
1,303,689 |
|
Short-term borrowings |
|
106,597 |
|
|
105,787 |
|
|
105,451 |
|
|
104,496 |
|
|
97,207 |
|
Derivative liabilities |
|
7,393 |
|
|
8,499 |
|
|
8,586 |
|
|
8,507 |
|
|
7,883 |
|
Accrued expenses and other liabilities |
|
74,717 |
|
|
69,317 |
|
|
71,348 |
|
|
72,480 |
|
|
73,397 |
|
Long-term debt |
|
236,339 |
|
|
229,044 |
|
|
221,323 |
|
|
219,284 |
|
|
227,302 |
|
Total liabilities |
|
1,689,059 |
|
|
1,698,817 |
|
|
1,673,302 |
|
|
1,673,631 |
|
|
1,709,478 |
|
Equity |
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
23,214 |
|
|
23,214 |
|
|
23,482 |
|
|
25,737 |
|
|
26,227 |
|
Common stock |
|
9,136 |
|
|
9,136 |
|
|
9,136 |
|
|
9,136 |
|
|
9,136 |
|
Additional paid-in capital |
|
60,409 |
|
|
60,685 |
|
|
60,738 |
|
|
59,644 |
|
|
60,399 |
|
Retained earnings |
|
160,776 |
|
|
158,163 |
|
|
154,576 |
|
|
150,803 |
|
|
147,928 |
|
Cumulative other comprehensive income (loss) |
|
(3,682 |
) |
|
(6,336 |
) |
|
(6,873 |
) |
|
(5,461 |
) |
|
(4,921 |
) |
Treasury stock |
|
(50,519 |
) |
|
(47,194 |
) |
|
(40,538 |
) |
|
(32,620 |
) |
|
(31,246 |
) |
Unearned ESOP shares |
|
(1,502 |
) |
|
(1,502 |
) |
|
(1,780 |
) |
|
(2,051 |
) |
|
(2,571 |
) |
Total Wells Fargo stockholders’ equity |
|
197,832 |
|
|
196,166 |
|
|
198,741 |
|
|
205,188 |
|
|
204,952 |
|
Noncontrolling interests |
|
901 |
|
|
900 |
|
|
938 |
|
|
881 |
|
|
958 |
|
Total equity |
|
198,733 |
|
|
197,066 |
|
|
199,679 |
|
|
206,069 |
|
|
205,910 |
|
Total liabilities and equity |
|
$ |
1,887,792 |
|
|
1,895,883 |
|
|
1,872,981 |
|
|
1,879,700 |
|
|
1,915,388 |
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER TRADING ASSETS AND LIABILITIES
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Trading assets |
|
|
|
|
|
|
|
|
|
|
Debt securities |
|
$ |
70,378 |
|
|
69,989 |
|
|
65,188 |
|
|
65,602 |
|
|
59,866 |
|
Equity securities |
|
20,933 |
|
|
19,449 |
|
|
26,138 |
|
|
22,978 |
|
|
25,327 |
|
Loans held for sale |
|
998 |
|
|
1,469 |
|
|
1,266 |
|
|
1,350 |
|
|
1,695 |
|
Gross trading derivative assets |
|
30,002 |
|
|
29,216 |
|
|
30,302 |
|
|
30,758 |
|
|
30,644 |
|
Netting (1) |
|
(20,809 |
) |
|
(19,807 |
) |
|
(19,188 |
) |
|
(20,687 |
) |
|
(20,112 |
) |
Total trading derivative assets |
|
9,193 |
|
|
9,409 |
|
|
11,114 |
|
|
10,071 |
|
|
10,532 |
|
Total trading assets |
|
101,502 |
|
|
100,316 |
|
|
103,706 |
|
|
100,001 |
|
|
97,420 |
|
Trading liabilities |
|
|
|
|
|
|
|
|
|
|
Short sales |
|
21,586 |
|
|
19,720 |
|
|
23,992 |
|
|
21,765 |
|
|
23,303 |
|
Gross trading derivative liabilities |
|
28,994 |
|
|
28,717 |
|
|
29,268 |
|
|
29,847 |
|
|
29,717 |
|
Netting (1) |
|
(22,810 |
) |
|
(21,178 |
) |
|
(21,842 |
) |
|
(22,311 |
) |
|
(22,569 |
) |
Total trading derivative liabilities |
|
6,184 |
|
|
7,539 |
|
|
7,426 |
|
|
7,536 |
|
|
7,148 |
|
Total trading liabilities |
|
$ |
27,770 |
|
|
27,259 |
|
|
31,418 |
|
|
29,301 |
|
|
30,451 |
|
(1) Represents balance sheet netting for trading derivative assets and liability balances, and
trading portfolio level counterparty valuation adjustments.
|
|
|
FIVE QUARTER DEBT SECURITIES
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Trading debt securities |
|
$ |
70,378 |
|
|
69,989 |
|
|
65,188 |
|
|
65,602 |
|
|
59,866 |
Available-for-sale debt securities: |
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
15,106 |
|
|
13,348 |
|
|
6,187 |
|
|
6,271 |
|
|
6,279 |
Securities of U.S. states and political subdivisions |
|
49,700 |
|
|
49,264 |
|
|
48,216 |
|
|
47,559 |
|
|
49,643 |
Mortgage-backed securities: |
|
|
|
|
|
|
|
|
|
|
Federal agencies |
|
150,663 |
|
|
153,203 |
|
|
153,511 |
|
|
154,556 |
|
|
156,814 |
Residential and commercial |
|
5,828 |
|
|
7,000 |
|
|
6,939 |
|
|
8,286 |
|
|
9,264 |
Total mortgage-backed securities |
|
156,491 |
|
|
160,203 |
|
|
160,450 |
|
|
162,842 |
|
|
166,078 |
Other debt securities |
|
46,802 |
|
|
47,097 |
|
|
48,111 |
|
|
49,015 |
|
|
49,656 |
Total available-for-sale debt securities |
|
268,099 |
|
|
269,912 |
|
|
262,964 |
|
|
265,687 |
|
|
271,656 |
Held-to-maturity debt securities: |
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies |
|
44,758 |
|
|
44,751 |
|
|
44,743 |
|
|
44,735 |
|
|
44,727 |
Securities of U.S. states and political subdivisions |
|
6,163 |
|
|
6,286 |
|
|
6,293 |
|
|
6,300 |
|
|
6,307 |
Federal agency and other mortgage-backed securities (1) |
|
94,009 |
|
|
93,685 |
|
|
93,020 |
|
|
93,016 |
|
|
89,748 |
Other debt securities |
|
60 |
|
|
66 |
|
|
75 |
|
|
155 |
|
|
664 |
Total held-to-maturity debt securities |
|
144,990 |
|
|
144,788 |
|
|
144,131 |
|
|
144,206 |
|
|
141,446 |
Total debt securities |
|
$ |
483,467 |
|
|
484,689 |
|
|
472,283 |
|
|
475,495 |
|
|
472,968 |
(1) Predominantly consists of federal agency mortgage-backed securities.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER EQUITY SECURITIES
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Held for trading at fair value: |
|
|
|
|
|
|
|
|
|
|
Marketable equity securities |
|
$ |
20,933 |
|
|
19,449 |
|
|
26,138 |
|
|
22,978 |
|
|
25,327 |
Not held for trading: |
|
|
|
|
|
|
|
|
|
|
Fair value: |
|
|
|
|
|
|
|
|
|
|
Marketable equity securities (1) |
|
5,135 |
|
|
4,513 |
|
|
5,705 |
|
|
5,273 |
|
|
4,931 |
Nonmarketable equity securities (2) |
|
6,518 |
|
|
5,594 |
|
|
6,479 |
|
|
5,876 |
|
|
5,303 |
Total equity securities at fair value |
|
11,653 |
|
|
10,107 |
|
|
12,184 |
|
|
11,149 |
|
|
10,234 |
Equity method: |
|
|
|
|
|
|
|
|
|
|
Low-income housing tax credit investments |
|
10,925 |
|
|
10,999 |
|
|
10,453 |
|
|
10,361 |
|
|
10,318 |
Private equity |
|
3,890 |
|
|
3,832 |
|
|
3,838 |
|
|
3,732 |
|
|
3,840 |
Tax-advantaged renewable energy |
|
3,041 |
|
|
3,073 |
|
|
1,967 |
|
|
1,950 |
|
|
1,822 |
New market tax credit and other |
|
305 |
|
|
311 |
|
|
259 |
|
|
262 |
|
|
268 |
Total equity method |
|
18,161 |
|
|
18,215 |
|
|
16,517 |
|
|
16,305 |
|
|
16,248 |
Other: |
|
|
|
|
|
|
|
|
|
|
Federal bank stock and other at cost (3) |
|
5,732 |
|
|
5,643 |
|
|
5,467 |
|
|
5,673 |
|
|
5,780 |
Private equity (4) |
|
1,961 |
|
|
1,734 |
|
|
1,449 |
|
|
1,400 |
|
|
1,346 |
Total equity securities not held for trading |
|
37,507 |
|
|
35,699 |
|
|
35,617 |
|
|
34,527 |
|
|
33,608 |
Total equity securities |
|
$ |
58,440 |
|
|
55,148 |
|
|
61,755 |
|
|
57,505 |
|
|
58,935 |
(1) Includes $3.5 billion, $3.2 billion, $3.6 billion, $3.5 billion and $3.5 billion at March 31,
2019, and December 31, September 30, June 30, and March 31, 2018, respectively, related to securities held as economic hedges
of our deferred compensation plan obligations.
|
(2) Includes $6.4 billion, $5.5 billion, $6.3 billion, $5.5 billion and $5.0 billion at March 31,
2019, and December 31, September 30, June 30, and March 31, 2018, respectively, related to investments for which we elected
the fair value option.
|
(3) Includes $5.7 billion, $5.6 billion, $5.4 billion, $5.6 billion and $5.7 billion at March 31,
2019, and December 31, September 30, June 30, and March 31, 2018, respectively, related to investments in Federal Reserve
Bank and Federal Home Loan Bank stock.
|
(4) Represents nonmarketable equity securities for which we have elected to account for the security
under the measurement alternative.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER LOANS
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
349,134 |
|
|
350,199 |
|
|
338,048 |
|
|
336,590 |
|
|
334,678 |
Real estate mortgage |
|
122,113 |
|
|
121,014 |
|
|
120,403 |
|
|
123,964 |
|
|
125,543 |
Real estate construction |
|
21,857 |
|
|
22,496 |
|
|
23,690 |
|
|
22,937 |
|
|
23,882 |
Lease financing |
|
19,122 |
|
|
19,696 |
|
|
19,745 |
|
|
19,614 |
|
|
19,293 |
Total commercial |
|
512,226 |
|
|
513,405 |
|
|
501,886 |
|
|
503,105 |
|
|
503,396 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
284,545 |
|
|
285,065 |
|
|
284,273 |
|
|
283,001 |
|
|
282,658 |
Real estate 1-4 family junior lien mortgage |
|
33,099 |
|
|
34,398 |
|
|
35,330 |
|
|
36,542 |
|
|
37,920 |
Credit card |
|
38,279 |
|
|
39,025 |
|
|
37,812 |
|
|
36,684 |
|
|
36,103 |
Automobile |
|
44,913 |
|
|
45,069 |
|
|
46,075 |
|
|
47,632 |
|
|
49,554 |
Other revolving credit and installment |
|
35,187 |
|
|
36,148 |
|
|
36,924 |
|
|
37,301 |
|
|
37,677 |
Total consumer |
|
436,023 |
|
|
439,705 |
|
|
440,414 |
|
|
441,160 |
|
|
443,912 |
Total loans (1) |
|
$ |
948,249 |
|
|
953,110 |
|
|
942,300 |
|
|
944,265 |
|
|
947,308 |
(1) Includes $3.2 billion, $5.0 billion, $6.9 billion, $9.0 billion, and $10.7 billion of purchased
credit-impaired (PCI) loans at March 31, 2019, and December 31, September 30, June 30, and March 31, 2018, respectively.
|
|
Our foreign loans are reported by respective class of financing receivable in the table above. 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. The following table presents total commercial foreign loans outstanding by class of financing
receivable.
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Commercial foreign loans: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
63,158 |
|
|
62,564 |
|
|
61,696 |
|
|
61,732 |
|
|
59,696 |
Real estate mortgage |
|
7,049 |
|
|
6,731 |
|
|
6,891 |
|
|
7,617 |
|
|
8,082 |
Real estate construction |
|
1,138 |
|
|
1,011 |
|
|
726 |
|
|
542 |
|
|
668 |
Lease financing |
|
1,167 |
|
|
1,159 |
|
|
1,187 |
|
|
1,097 |
|
|
1,077 |
Total commercial foreign loans |
|
$ |
72,512 |
|
|
71,465 |
|
|
70,500 |
|
|
70,988 |
|
|
69,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
1,986 |
|
|
1,486 |
|
|
1,555 |
|
|
1,559 |
|
|
1,516 |
Real estate mortgage |
|
699 |
|
|
580 |
|
|
603 |
|
|
765 |
|
|
755 |
Real estate construction |
|
36 |
|
|
32 |
|
|
44 |
|
|
51 |
|
|
45 |
Lease financing |
|
76 |
|
|
90 |
|
|
96 |
|
|
80 |
|
|
93 |
Total commercial |
|
2,797 |
|
|
2,188 |
|
|
2,298 |
|
|
2,455 |
|
|
2,409 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
3,026 |
|
|
3,183 |
|
|
3,267 |
|
|
3,469 |
|
|
3,673 |
Real estate 1-4 family junior lien mortgage |
|
916 |
|
|
945 |
|
|
983 |
|
|
1,029 |
|
|
1,087 |
Automobile |
|
116 |
|
|
130 |
|
|
118 |
|
|
119 |
|
|
117 |
Other revolving credit and installment |
|
50 |
|
|
50 |
|
|
48 |
|
|
54 |
|
|
53 |
Total consumer |
|
4,108 |
|
|
4,308 |
|
|
4,416 |
|
|
4,671 |
|
|
4,930 |
Total nonaccrual loans (1)(2)(3) |
|
$ |
6,905 |
|
|
6,496 |
|
|
6,714 |
|
|
7,126 |
|
|
7,339 |
As a percentage of total loans |
|
0.73 |
% |
|
0.68 |
|
|
0.71 |
|
|
0.75 |
|
|
0.77 |
Foreclosed assets: |
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed |
|
$ |
75 |
|
|
88 |
|
|
87 |
|
|
90 |
|
|
103 |
Non-government insured/guaranteed |
|
361 |
|
|
363 |
|
|
435 |
|
|
409 |
|
|
468 |
Total foreclosed assets |
|
436 |
|
|
451 |
|
|
522 |
|
|
499 |
|
|
571 |
Total nonperforming assets |
|
$ |
7,341 |
|
|
6,947 |
|
|
7,236 |
|
|
7,625 |
|
|
7,910 |
As a percentage of total loans |
|
0.77 |
% |
|
0.73 |
|
|
0.77 |
|
|
0.81 |
|
|
0.83 |
(1) Financial information for periods prior to December 31, 2018, has been revised to exclude
mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value of $339 million, $360
million, and $380 million at September 30, June 30, and March 31, 2018, respectively.
|
(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) are not placed on nonaccrual status because
they are insured or guaranteed.
|
|
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING (1)
|
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Total (excluding PCI)(2): |
|
$ |
7,870 |
|
|
8,704 |
|
|
8,838 |
|
|
9,087 |
|
|
10,351 |
Less: FHA insured/VA guaranteed (3) |
|
6,996 |
|
|
7,725 |
|
|
7,906 |
|
|
8,246 |
|
|
9,385 |
Total, not government insured/guaranteed |
|
$ |
874 |
|
|
979 |
|
|
932 |
|
|
841 |
|
|
966 |
By segment and class, not government insured/guaranteed: |
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
42 |
|
|
43 |
|
|
42 |
|
|
23 |
|
|
40 |
Real estate mortgage |
|
20 |
|
|
51 |
|
|
56 |
|
|
26 |
|
|
23 |
Real estate construction |
|
5 |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
Total commercial |
|
67 |
|
|
94 |
|
|
98 |
|
|
49 |
|
|
64 |
Consumer: |
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
117 |
|
|
124 |
|
|
128 |
|
|
132 |
|
|
163 |
Real estate 1-4 family junior lien mortgage |
|
28 |
|
|
32 |
|
|
32 |
|
|
33 |
|
|
48 |
Credit card |
|
502 |
|
|
513 |
|
|
460 |
|
|
429 |
|
|
473 |
Automobile |
|
68 |
|
|
114 |
|
|
108 |
|
|
105 |
|
|
113 |
Other revolving credit and installment |
|
92 |
|
|
102 |
|
|
106 |
|
|
93 |
|
|
105 |
Total consumer |
|
807 |
|
|
885 |
|
|
834 |
|
|
792 |
|
|
902 |
Total, not government insured/guaranteed |
|
$ |
874 |
|
|
979 |
|
|
932 |
|
|
841 |
|
|
966 |
(1) Financial information for periods prior to December 31, 2018 has been revised to exclude MLHFS,
LHFS and loans held at fair value, which reduced “Total, not government insured/guaranteed” by $1 million at September 30,
June 30, and March 31, 2018, respectively.
|
(2) PCI loans totaled $243 million, $370 million, $567 million, $811 million and $1.0 billion, at
March 31, 2019, and December 31, September 30, June 30 and March 31, 2018, respectively.
|
(3) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the
VA.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
Quarter ended |
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Balance, beginning of quarter |
|
$ |
10,707 |
|
|
10,956 |
|
|
11,110 |
|
|
11,313 |
|
|
11,960 |
|
Provision for credit losses |
|
845 |
|
|
521 |
|
|
580 |
|
|
452 |
|
|
191 |
|
Interest income on certain impaired loans (1) |
|
(39 |
) |
|
(38 |
) |
|
(42 |
) |
|
(43 |
) |
|
(43 |
) |
Loan charge-offs: |
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
(176 |
) |
|
(220 |
) |
|
(209 |
) |
|
(134 |
) |
|
(164 |
) |
Real estate mortgage |
|
(12 |
) |
|
(12 |
) |
|
(9 |
) |
|
(19 |
) |
|
(2 |
) |
Real estate construction |
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Lease financing |
|
(11 |
) |
|
(18 |
) |
|
(15 |
) |
|
(20 |
) |
|
(17 |
) |
Total commercial |
|
(200 |
) |
|
(250 |
) |
|
(233 |
) |
|
(173 |
) |
|
(183 |
) |
Consumer: |
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
(43 |
) |
|
(38 |
) |
|
(45 |
) |
|
(55 |
) |
|
(41 |
) |
Real estate 1-4 family junior lien mortgage |
|
(34 |
) |
|
(38 |
) |
|
(47 |
) |
|
(47 |
) |
|
(47 |
) |
Credit card |
|
(437 |
) |
|
(414 |
) |
|
(376 |
) |
|
(404 |
) |
|
(405 |
) |
Automobile |
|
(187 |
) |
|
(217 |
) |
|
(214 |
) |
|
(216 |
) |
|
(300 |
) |
Other revolving credit and installment |
|
(162 |
) |
|
(180 |
) |
|
(161 |
) |
|
(164 |
) |
|
(180 |
) |
Total consumer |
|
(863 |
) |
|
(887 |
) |
|
(843 |
) |
|
(886 |
) |
|
(973 |
) |
Total loan charge-offs |
|
(1,063 |
) |
|
(1,137 |
) |
|
(1,076 |
) |
|
(1,059 |
) |
|
(1,156 |
) |
Loan recoveries: |
|
|
|
|
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
43 |
|
|
88 |
|
|
61 |
|
|
76 |
|
|
79 |
|
Real estate mortgage |
|
6 |
|
|
24 |
|
|
10 |
|
|
19 |
|
|
17 |
|
Real estate construction |
|
3 |
|
|
1 |
|
|
2 |
|
|
6 |
|
|
4 |
|
Lease financing |
|
3 |
|
|
5 |
|
|
8 |
|
|
5 |
|
|
5 |
|
Total commercial |
|
55 |
|
|
118 |
|
|
81 |
|
|
106 |
|
|
105 |
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage |
|
55 |
|
|
60 |
|
|
70 |
|
|
78 |
|
|
59 |
|
Real estate 1-4 family junior lien mortgage |
|
43 |
|
|
48 |
|
|
56 |
|
|
60 |
|
|
55 |
|
Credit card |
|
85 |
|
|
76 |
|
|
77 |
|
|
81 |
|
|
73 |
|
Automobile |
|
96 |
|
|
84 |
|
|
84 |
|
|
103 |
|
|
92 |
|
Other revolving credit and installment |
|
34 |
|
|
30 |
|
|
28 |
|
|
29 |
|
|
31 |
|
Total consumer |
|
313 |
|
|
298 |
|
|
315 |
|
|
351 |
|
|
310 |
|
Total loan recoveries |
|
368 |
|
|
416 |
|
|
396 |
|
|
457 |
|
|
415 |
|
Net loan charge-offs |
|
(695 |
) |
|
(721 |
) |
|
(680 |
) |
|
(602 |
) |
|
(741 |
) |
Other |
|
3 |
|
|
(11 |
) |
|
(12 |
) |
|
(10 |
) |
|
(54 |
) |
Balance, end of quarter |
|
$ |
10,821 |
|
|
10,707 |
|
|
10,956 |
|
|
11,110 |
|
|
11,313 |
|
Components: |
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
9,900 |
|
|
9,775 |
|
|
10,021 |
|
|
10,193 |
|
|
10,373 |
|
Allowance for unfunded credit commitments |
|
921 |
|
|
932 |
|
|
935 |
|
|
917 |
|
|
940 |
|
Allowance for credit losses |
|
$ |
10,821 |
|
|
10,707 |
|
|
10,956 |
|
|
11,110 |
|
|
11,313 |
|
Net loan charge-offs (annualized) as a percentage of average total loans |
|
0.30 |
% |
|
0.30 |
|
|
0.29 |
|
|
0.26 |
|
|
0.32 |
|
Allowance for loan losses as a percentage of: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.04 |
|
|
1.03 |
|
|
1.06 |
|
|
1.08 |
|
|
1.10 |
|
Nonaccrual loans |
|
143 |
|
|
150 |
|
|
149 |
|
|
143 |
|
|
141 |
|
Nonaccrual loans and other nonperforming assets |
|
135 |
|
|
141 |
|
|
138 |
|
|
134 |
|
|
131 |
|
Allowance for credit losses as a percentage of: |
|
|
|
|
|
|
|
|
|
|
Total loans |
|
1.14 |
|
|
1.12 |
|
|
1.16 |
|
|
1.18 |
|
|
1.19 |
|
Nonaccrual loans |
|
157 |
|
|
165 |
|
|
163 |
|
|
156 |
|
|
154 |
|
Nonaccrual loans and other nonperforming assets |
|
147 |
|
|
154 |
|
|
151 |
|
|
146 |
|
|
143 |
|
(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 changes in allowance attributable to the passage
of time as interest income.
|
|
|
Wells Fargo & Company and Subsidiaries
|
TANGIBLE COMMON EQUITY (1)
|
(in millions, except ratios) |
|
|
|
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Tangible book value per common share (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity |
|
|
|
|
$ |
198,733 |
|
|
197,066 |
|
|
199,679 |
|
|
206,069 |
|
|
205,910 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
(23,214 |
) |
|
(23,214 |
) |
|
(23,482 |
) |
|
(25,737 |
) |
|
(26,227 |
) |
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
|
(95 |
) |
|
(95 |
) |
|
(105 |
) |
|
(116 |
) |
|
(146 |
) |
Unearned ESOP shares |
|
|
|
|
1,502 |
|
|
1,502 |
|
|
1,780 |
|
|
2,051 |
|
|
2,571 |
|
Noncontrolling interests |
|
|
|
|
(901 |
) |
|
(900 |
) |
|
(938 |
) |
|
(881 |
) |
|
(958 |
) |
Total common stockholders' equity |
|
(A) |
|
|
176,025 |
|
|
174,359 |
|
|
176,934 |
|
|
181,386 |
|
|
181,150 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
|
(26,420 |
) |
|
(26,418 |
) |
|
(26,425 |
) |
|
(26,429 |
) |
|
(26,445 |
) |
Certain identifiable intangible assets
(other than MSRs)
|
|
|
|
|
(522 |
) |
|
(559 |
) |
|
(826 |
) |
|
(1,091 |
) |
|
(1,357 |
) |
Other assets (2) |
|
|
|
|
(2,131 |
) |
|
(2,187 |
) |
|
(2,121 |
) |
|
(2,160 |
) |
|
(2,388 |
) |
Applicable deferred taxes (3) |
|
|
|
|
771 |
|
|
785 |
|
|
829 |
|
|
874 |
|
|
918 |
|
Tangible common equity |
|
(B) |
|
|
$ |
147,723 |
|
|
145,980 |
|
|
148,391 |
|
|
152,580 |
|
|
151,878 |
|
Common shares outstanding |
|
(C) |
|
|
4,511.9 |
|
|
4,581.3 |
|
|
4,711.6 |
|
|
4,849.1 |
|
|
4,873.9 |
|
Book value per common share |
|
(A)/(C) |
|
|
$ |
39.01 |
|
|
38.06 |
|
|
37.55 |
|
|
37.41 |
|
|
37.17 |
|
Tangible book value per common share |
|
(B)/(C) |
|
|
32.74 |
|
|
31.86 |
|
|
31.49 |
|
|
31.47 |
|
|
31.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
(in millions, except ratios) |
|
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Return on average tangible common equity (1): |
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock |
(A) |
|
$ |
5,507 |
|
|
5,711 |
|
|
5,453 |
|
|
4,792 |
|
|
4,733 |
|
Average total equity |
|
|
198,349 |
|
|
198,442 |
|
|
202,826 |
|
|
206,067 |
|
|
206,180 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
(23,214 |
) |
|
(23,463 |
) |
|
(24,219 |
) |
|
(26,021 |
) |
|
(26,157 |
) |
Additional paid-in capital on ESOP preferred stock |
|
|
(95 |
) |
|
(105 |
) |
|
(115 |
) |
|
(129 |
) |
|
(153 |
) |
Unearned ESOP shares |
|
|
1,502 |
|
|
1,761 |
|
|
2,026 |
|
|
2,348 |
|
|
2,508 |
|
Noncontrolling interests |
|
|
(899 |
) |
|
(910 |
) |
|
(892 |
) |
|
(919 |
) |
|
(997 |
) |
Average common stockholders’ equity |
(B) |
|
175,643 |
|
|
175,725 |
|
|
179,626 |
|
|
181,346 |
|
|
181,381 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(26,420 |
) |
|
(26,423 |
) |
|
(26,429 |
) |
|
(26,444 |
) |
|
(26,516 |
) |
Certain identifiable intangible assets (other than MSRs) |
|
|
(543 |
) |
|
(693 |
) |
|
(958 |
) |
|
(1,223 |
) |
|
(1,489 |
) |
Other assets (2) |
|
|
(2,159 |
) |
|
(2,204 |
) |
|
(2,083 |
) |
|
(2,271 |
) |
|
(2,233 |
) |
Applicable deferred taxes (3) |
|
|
784 |
|
|
800 |
|
|
845 |
|
|
889 |
|
|
933 |
|
Average tangible common equity |
(C) |
|
$ |
147,305 |
|
|
147,205 |
|
|
151,001 |
|
|
152,297 |
|
|
152,076 |
|
Return on average common stockholders' equity (ROE) (annualized) |
(A)/(B) |
|
12.71 |
|
|
12.89 |
|
|
12.04 |
|
|
10.60 |
|
|
10.58 |
|
Return on average tangible common equity (ROTCE) (annualized) |
(A)/(C) |
|
15.16 |
|
|
15.39 |
|
|
14.33 |
|
|
12.62 |
|
|
12.62 |
|
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less
preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and
intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights),
net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies.
Management believes that return on average tangible common equity and tangible book value per common share, which utilize
tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of
equity.
|
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included
in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined
by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax
basis of the respective goodwill and intangible assets at period end.
|
|
|
Wells Fargo & Company and Subsidiaries
|
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
Estimated |
|
|
|
|
|
|
|
|
(in billions, except ratio) |
|
|
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Total equity |
|
|
|
$ |
198.7 |
|
|
197.1 |
|
|
199.7 |
|
|
206.1 |
|
|
205.9 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
(23.2 |
) |
|
(23.2 |
) |
|
(23.5 |
) |
|
(25.7 |
) |
|
(26.2 |
) |
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
|
(0.1 |
) |
Unearned ESOP shares |
|
|
|
1.5 |
|
|
1.5 |
|
|
1.8 |
|
|
2.0 |
|
|
2.6 |
|
Noncontrolling interests |
|
|
|
(0.9 |
) |
|
(0.9 |
) |
|
(0.9 |
) |
|
(0.9 |
) |
|
(1.0 |
) |
Total common stockholders' equity |
|
|
|
176.0 |
|
|
174.4 |
|
|
177.0 |
|
|
181.4 |
|
|
181.2 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
|
(26.4 |
) |
|
(26.4 |
) |
|
(26.4 |
) |
|
(26.4 |
) |
|
(26.4 |
) |
Certain identifiable intangible assets (other than MSRs) |
|
|
|
(0.5 |
) |
|
(0.6 |
) |
|
(0.8 |
) |
|
(1.1 |
) |
|
(1.4 |
) |
Other assets (2) |
|
|
|
(2.1 |
) |
|
(2.2 |
) |
|
(2.1 |
) |
|
(2.2 |
) |
|
(2.4 |
) |
Applicable deferred taxes (3) |
|
|
|
0.8 |
|
|
0.8 |
|
|
0.8 |
|
|
0.9 |
|
|
0.9 |
|
Investment in certain subsidiaries and other |
|
|
|
0.2 |
|
|
0.4 |
|
|
0.4 |
|
|
0.4 |
|
|
0.4 |
|
Common Equity Tier 1 (Fully Phased-In) under Basel III |
|
(A) |
|
148.0 |
|
|
146.4 |
|
|
148.9 |
|
|
153.0 |
|
|
152.3 |
|
Total risk-weighted assets (RWAs) anticipated under Basel III
(4)(5) |
|
(B) |
|
$ |
1,238.9 |
|
|
1,247.2 |
|
|
1,250.2 |
|
|
1,276.3 |
|
|
1,278.1 |
|
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully
Phased-In) (5) |
|
(A)/(B) |
|
11.9 |
% |
|
11.7 |
|
|
11.9 |
|
|
12.0 |
|
|
11.9 |
|
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the
definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. The
rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming
the full phase-in of the Basel III capital rules. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1
capital, along with RWAs, became fully phased-in.
|
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included
in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined
by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax
basis of the respective goodwill and intangible assets at period end.
|
(4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach,
which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are 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. Because the final determination of our CET1 ratio and which approach will produce the lower CET1
ratio as of March 31, 2019, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been
estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for
December 31, September 30, June 30 and March 31, 2018, was calculated under the Basel III Standardized Approach RWAs.
|
(5) The Company’s March 31, 2019, RWAs and capital ratio are preliminary estimates.
|
|
|
Wells Fargo & Company and Subsidiaries
|
OPERATING SEGMENT RESULTS (1)
|
(income/expense in millions,
average balances in billions)
|
|
Community
Banking
|
|
Wholesale
Banking
|
|
Wealth and Investment
Management
|
|
Other (2) |
|
Consolidated
Company
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Quarter ended Mar 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3) |
|
$ |
7,248 |
|
|
7,195 |
|
|
4,534 |
|
|
4,532 |
|
|
1,101 |
|
|
1,112 |
|
|
(572 |
) |
|
(601 |
) |
|
12,311 |
|
|
12,238 |
Provision (reversal of provision) for credit losses |
|
710 |
|
|
218 |
|
|
134 |
|
|
(20 |
) |
|
4 |
|
|
(6 |
) |
|
(3 |
) |
|
(1 |
) |
|
845 |
|
|
191 |
Noninterest income |
|
4,502 |
|
|
4,635 |
|
|
2,577 |
|
|
2,747 |
|
|
2,978 |
|
|
3,130 |
|
|
(759 |
) |
|
(816 |
) |
|
9,298 |
|
|
9,696 |
Noninterest expense |
|
7,689 |
|
|
8,702 |
|
|
3,838 |
|
|
3,978 |
|
|
3,303 |
|
|
3,290 |
|
|
(914 |
) |
|
(928 |
) |
|
13,916 |
|
|
15,042 |
Income (loss) before income tax expense (benefit) |
|
3,351 |
|
|
2,910 |
|
|
3,139 |
|
|
3,321 |
|
|
772 |
|
|
958 |
|
|
(414 |
) |
|
(488 |
) |
|
6,848 |
|
|
6,701 |
Income tax expense (benefit) |
|
424 |
|
|
809 |
|
|
369 |
|
|
448 |
|
|
192 |
|
|
239 |
|
|
(104 |
) |
|
(122 |
) |
|
881 |
|
|
1,374 |
Net income (loss) before noncontrolling interests |
|
2,927 |
|
|
2,101 |
|
|
2,770 |
|
|
2,873 |
|
|
580 |
|
|
719 |
|
|
(310 |
) |
|
(366 |
) |
|
5,967 |
|
|
5,327 |
Less: Net income (loss) from noncontrolling interests |
|
104 |
|
|
188 |
|
|
— |
|
|
(2 |
) |
|
3 |
|
|
5 |
|
|
— |
|
|
— |
|
|
107 |
|
|
191 |
Net income (loss) |
|
$ |
2,823 |
|
|
1,913 |
|
|
2,770 |
|
|
2,875 |
|
|
577 |
|
|
714 |
|
|
(310 |
) |
|
(366 |
) |
|
5,860 |
|
|
5,136 |
|
Average loans |
|
$ |
458.2 |
|
|
470.5 |
|
|
476.5 |
|
|
465.1 |
|
|
74.4 |
|
|
73.9 |
|
|
(59.0 |
) |
|
(58.5 |
) |
|
950.1 |
|
|
951.0 |
Average assets |
|
1,015.4 |
|
|
1,061.9 |
|
|
844.6 |
|
|
829.2 |
|
|
83.2 |
|
|
84.2 |
|
|
(60.0 |
) |
|
(59.4 |
) |
|
1,883.2 |
|
|
1,915.9 |
Average deposits |
|
765.6 |
|
|
747.5 |
|
|
409.8 |
|
|
446.0 |
|
|
153.2 |
|
|
177.9 |
|
|
(66.5 |
) |
|
(74.2 |
) |
|
1,262.1 |
|
|
1,297.2 |
(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 the elimination of certain items that are included in more than one business segment,
predominantly of which represents products and services for Wealth and Investment Management customers served through
Community Banking distribution channels.
|
(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 as well as interest
credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual
interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
Quarter ended |
(income/expense in millions, average balances in billions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
COMMUNITY BANKING |
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
$ |
7,248 |
|
|
7,340 |
|
|
7,338 |
|
|
7,346 |
|
|
7,195 |
|
Provision for credit losses |
|
710 |
|
|
534 |
|
|
547 |
|
|
484 |
|
|
218 |
|
Noninterest income |
|
4,502 |
|
|
4,121 |
|
|
4,478 |
|
|
4,460 |
|
|
4,635 |
|
Noninterest expense |
|
7,689 |
|
|
7,032 |
|
|
7,467 |
|
|
7,290 |
|
|
8,702 |
|
Income before income tax expense |
|
3,351 |
|
|
3,895 |
|
|
3,802 |
|
|
4,032 |
|
|
2,910 |
|
Income tax expense |
|
424 |
|
|
637 |
|
|
925 |
|
|
1,413 |
|
|
809 |
|
Net income before noncontrolling interests |
|
2,927 |
|
|
3,258 |
|
|
2,877 |
|
|
2,619 |
|
|
2,101 |
|
Less: Net income from noncontrolling interests |
|
104 |
|
|
89 |
|
|
61 |
|
|
123 |
|
|
188 |
|
Segment net income |
|
$ |
2,823 |
|
|
3,169 |
|
|
2,816 |
|
|
2,496 |
|
|
1,913 |
|
Average loans |
|
$ |
458.2 |
|
|
459.7 |
|
|
460.9 |
|
|
463.8 |
|
|
470.5 |
|
Average assets |
|
1,015.4 |
|
|
1,015.9 |
|
|
1,024.9 |
|
|
1,034.3 |
|
|
1,061.9 |
|
Average deposits |
|
765.6 |
|
|
759.4 |
|
|
760.9 |
|
|
760.6 |
|
|
747.5 |
|
WHOLESALE BANKING |
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
$ |
4,534 |
|
|
4,739 |
|
|
4,726 |
|
|
4,693 |
|
|
4,532 |
|
Provision (reversal of provision) for credit losses |
|
134 |
|
|
(28 |
) |
|
26 |
|
|
(36 |
) |
|
(20 |
) |
Noninterest income |
|
2,577 |
|
|
2,187 |
|
|
2,578 |
|
|
2,504 |
|
|
2,747 |
|
Noninterest expense |
|
3,838 |
|
|
4,025 |
|
|
3,935 |
|
|
4,219 |
|
|
3,978 |
|
Income before income tax expense |
|
3,139 |
|
|
2,929 |
|
|
3,343 |
|
|
3,014 |
|
|
3,321 |
|
Income tax expense |
|
369 |
|
|
253 |
|
|
475 |
|
|
379 |
|
|
448 |
|
Net income before noncontrolling interests |
|
2,770 |
|
|
2,676 |
|
|
2,868 |
|
|
2,635 |
|
|
2,873 |
|
Less: Net income (loss) from noncontrolling interests |
|
— |
|
|
5 |
|
|
17 |
|
|
— |
|
|
(2 |
) |
Segment net income |
|
$ |
2,770 |
|
|
2,671 |
|
|
2,851 |
|
|
2,635 |
|
|
2,875 |
|
Average loans |
|
$ |
476.5 |
|
|
470.2 |
|
|
462.8 |
|
|
464.7 |
|
|
465.1 |
|
Average assets |
|
844.6 |
|
|
839.1 |
|
|
827.2 |
|
|
826.4 |
|
|
829.2 |
|
Average deposits |
|
409.8 |
|
|
421.6 |
|
|
413.6 |
|
|
414.0 |
|
|
446.0 |
|
WEALTH AND INVESTMENT MANAGEMENT |
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
$ |
1,101 |
|
|
1,116 |
|
|
1,102 |
|
|
1,111 |
|
|
1,112 |
|
Provision (reversal of provision) for credit losses |
|
4 |
|
|
(3 |
) |
|
6 |
|
|
(2 |
) |
|
(6 |
) |
Noninterest income |
|
2,978 |
|
|
2,841 |
|
|
3,124 |
|
|
2,840 |
|
|
3,130 |
|
Noninterest expense |
|
3,303 |
|
|
3,044 |
|
|
3,243 |
|
|
3,361 |
|
|
3,290 |
|
Income before income tax expense |
|
772 |
|
|
916 |
|
|
977 |
|
|
592 |
|
|
958 |
|
Income tax expense |
|
192 |
|
|
231 |
|
|
244 |
|
|
147 |
|
|
239 |
|
Net income before noncontrolling interests |
|
580 |
|
|
685 |
|
|
733 |
|
|
445 |
|
|
719 |
|
Less: Net income (loss) from noncontrolling interests |
|
3 |
|
|
(4 |
) |
|
1 |
|
|
— |
|
|
5 |
|
Segment net income |
|
$ |
577 |
|
|
689 |
|
|
732 |
|
|
445 |
|
|
714 |
|
Average loans |
|
$ |
74.4 |
|
|
75.2 |
|
|
74.6 |
|
|
74.7 |
|
|
73.9 |
|
Average assets |
|
83.2 |
|
|
83.6 |
|
|
83.8 |
|
|
84.0 |
|
|
84.2 |
|
Average deposits |
|
153.2 |
|
|
155.5 |
|
|
159.8 |
|
|
167.1 |
|
|
177.9 |
|
OTHER (3) |
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
$ |
(572 |
) |
|
(551 |
) |
|
(594 |
) |
|
(609 |
) |
|
(601 |
) |
Provision (reversal of provision) for credit losses |
|
(3 |
) |
|
18 |
|
|
1 |
|
|
6 |
|
|
(1 |
) |
Noninterest income |
|
(759 |
) |
|
(813 |
) |
|
(811 |
) |
|
(792 |
) |
|
(816 |
) |
Noninterest expense |
|
(914 |
) |
|
(762 |
) |
|
(882 |
) |
|
(888 |
) |
|
(928 |
) |
Loss before income tax benefit |
|
(414 |
) |
|
(620 |
) |
|
(524 |
) |
|
(519 |
) |
|
(488 |
) |
Income tax benefit |
|
(104 |
) |
|
(155 |
) |
|
(132 |
) |
|
(129 |
) |
|
(122 |
) |
Net loss before noncontrolling interests |
|
(310 |
) |
|
(465 |
) |
|
(392 |
) |
|
(390 |
) |
|
(366 |
) |
Less: Net income from noncontrolling interests |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other net loss |
|
$ |
(310 |
) |
|
(465 |
) |
|
(392 |
) |
|
(390 |
) |
|
(366 |
) |
Average loans |
|
$ |
(59.0 |
) |
|
(58.8 |
) |
|
(58.8 |
) |
|
(59.1 |
) |
|
(58.5 |
) |
Average assets |
|
(60.0 |
) |
|
(59.6 |
) |
|
(59.6 |
) |
|
(59.8 |
) |
|
(59.4 |
) |
Average deposits |
|
(66.5 |
) |
|
(67.6 |
) |
|
(67.9 |
) |
|
(70.4 |
) |
|
(74.2 |
) |
CONSOLIDATED COMPANY |
|
|
|
|
|
|
|
|
|
|
Net interest income (2) |
|
$ |
12,311 |
|
|
12,644 |
|
|
12,572 |
|
|
12,541 |
|
|
12,238 |
|
Provision for credit losses |
|
845 |
|
|
521 |
|
|
580 |
|
|
452 |
|
|
191 |
|
Noninterest income |
|
9,298 |
|
|
8,336 |
|
|
9,369 |
|
|
9,012 |
|
|
9,696 |
|
Noninterest expense |
|
13,916 |
|
|
13,339 |
|
|
13,763 |
|
|
13,982 |
|
|
15,042 |
|
Income before income tax expense |
|
6,848 |
|
|
7,120 |
|
|
7,598 |
|
|
7,119 |
|
|
6,701 |
|
Income tax expense |
|
881 |
|
|
966 |
|
|
1,512 |
|
|
1,810 |
|
|
1,374 |
|
Net income before noncontrolling interests |
|
5,967 |
|
|
6,154 |
|
|
6,086 |
|
|
5,309 |
|
|
5,327 |
|
Less: Net income from noncontrolling interests |
|
107 |
|
|
90 |
|
|
79 |
|
|
123 |
|
|
191 |
|
Wells Fargo net income |
|
$ |
5,860 |
|
|
6,064 |
|
|
6,007 |
|
|
5,186 |
|
|
5,136 |
|
Average loans |
|
$ |
950.1 |
|
|
946.3 |
|
|
939.5 |
|
|
944.1 |
|
|
951.0 |
|
Average assets |
|
1,883.2 |
|
|
1,879.0 |
|
|
1,876.3 |
|
|
1,884.9 |
|
|
1,915.9 |
|
Average deposits |
|
1,262.1 |
|
|
1,268.9 |
|
|
1,266.4 |
|
|
1,271.3 |
|
|
1,297.2 |
|
(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 as well as interest
credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual
interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
|
(3) Includes the elimination of certain items that are included in more than one business segment,
most of which represents products and services for Wealth and Investment Management customers served through Community
Banking distribution channels.
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
Quarter ended |
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
MSRs measured using the fair value method: |
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter |
|
$ |
14,649 |
|
|
15,980 |
|
|
15,411 |
|
|
15,041 |
|
|
13,625 |
|
Servicing from securitizations or asset transfers (1) |
|
341 |
|
|
449 |
|
|
502 |
|
|
486 |
|
|
573 |
|
Sales and other (2) |
|
(281 |
) |
|
(64 |
) |
|
(2 |
) |
|
(1 |
) |
|
(4 |
) |
Net additions |
|
60 |
|
|
385 |
|
|
500 |
|
|
485 |
|
|
569 |
|
Changes in fair value: |
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions: |
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (3) |
|
(940 |
) |
|
(874 |
) |
|
582 |
|
|
376 |
|
|
1,253 |
|
Servicing and foreclosure costs (4) |
|
12 |
|
|
763 |
|
|
(9 |
) |
|
30 |
|
|
34 |
|
Discount rates (5) |
|
100 |
|
|
(821 |
) |
|
(9 |
) |
|
— |
|
|
— |
|
Prepayment estimates and other (6) |
|
(63 |
) |
|
(314 |
) |
|
(33 |
) |
|
(61 |
) |
|
43 |
|
Net changes in valuation model inputs or assumptions |
|
(891 |
) |
|
(1,246 |
) |
|
531 |
|
|
345 |
|
|
1,330 |
|
Changes due to collection/realization of expected cash flows over
time |
|
(482 |
) |
|
(470 |
) |
|
(462 |
) |
|
(460 |
) |
|
(483 |
) |
Total changes in fair value |
|
(1,373 |
) |
|
(1,716 |
) |
|
69 |
|
|
(115 |
) |
|
847 |
|
Fair value, end of quarter |
|
$ |
13,336 |
|
|
14,649 |
|
|
15,980 |
|
|
15,411 |
|
|
15,041 |
|
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from
Government National Mortgage Association (GNMA) loan securitization pools.
|
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if
the sales or transfers are related to nonperforming loan portfolios or portfolios with servicing liabilities.
|
(3) 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).
|
(4) Includes costs to service and unreimbursed foreclosure costs.
|
(5) Reflects discount rate assumption change, excluding portion attributable to changes in mortgage
interest rates.
|
(6) 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 and other external factors that occur independent of interest rate changes.
|
|
|
|
|
Quarter ended |
(in millions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Amortized MSRs: |
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter |
|
$ |
1,443 |
|
|
1,414 |
|
|
1,407 |
|
|
1,411 |
|
|
1,424 |
|
Purchases |
|
24 |
|
|
45 |
|
|
42 |
|
|
22 |
|
|
18 |
|
Servicing from securitizations or asset transfers |
|
26 |
|
|
52 |
|
|
33 |
|
|
39 |
|
|
34 |
|
Amortization |
|
(66 |
) |
|
(68 |
) |
|
(68 |
) |
|
(65 |
) |
|
(65 |
) |
Balance, end of quarter |
|
$ |
1,427 |
|
|
1,443 |
|
|
1,414 |
|
|
1,407 |
|
|
1,411 |
|
Fair value of amortized MSRs: |
|
|
|
|
|
|
|
|
|
|
Beginning of quarter |
|
$ |
2,288 |
|
|
2,389 |
|
|
2,309 |
|
|
2,307 |
|
|
2,025 |
|
End of quarter |
|
2,149 |
|
|
2,288 |
|
|
2,389 |
|
|
2,309 |
|
|
2,307 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
Quarter ended |
(in millions) |
|
|
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Servicing income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1) |
|
|
|
$ |
841 |
|
|
925 |
|
|
890 |
|
|
905 |
|
|
906 |
|
Changes in fair value of MSRs carried at fair value: |
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2) |
|
(A) |
|
(891 |
) |
|
(1,246 |
) |
|
531 |
|
|
345 |
|
|
1,330 |
|
Changes due to collection/realization of expected cash flows over
time |
|
|
|
(482 |
) |
|
(470 |
) |
|
(462 |
) |
|
(460 |
) |
|
(483 |
) |
Total changes in fair value of MSRs carried at fair value |
|
|
|
(1,373 |
) |
|
(1,716 |
) |
|
69 |
|
|
(115 |
) |
|
847 |
|
Amortization |
|
|
|
(66 |
) |
|
(68 |
) |
|
(68 |
) |
|
(65 |
) |
|
(65 |
) |
Net derivative gains (losses) from economic hedges (3) |
|
(B) |
|
962 |
|
|
968 |
|
|
(501 |
) |
|
(319 |
) |
|
(1,220 |
) |
Total servicing income, net |
|
|
|
$ |
364 |
|
|
109 |
|
|
390 |
|
|
406 |
|
|
468 |
|
Market-related valuation changes to MSRs, net of hedge results
(2)(3) |
|
(A)+(B) |
|
$ |
71 |
|
|
(278 |
) |
|
30 |
|
|
26 |
|
|
110 |
|
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues, net
of unreimbursed direct servicing costs.
|
(2) Refer to the changes in fair value MSRs table on the previous page for more detail.
|
(3) Represents results from economic hedges used to hedge the risk of changes in fair value of
MSRs.
|
|
|
(in billions) |
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Managed servicing portfolio (1): |
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing: |
|
|
|
|
|
|
|
|
|
|
Serviced for others |
|
$ |
1,125 |
|
|
1,164 |
|
|
1,184 |
|
|
1,190 |
|
|
1,201 |
Owned loans serviced |
|
331 |
|
|
334 |
|
|
337 |
|
|
340 |
|
|
337 |
Subserviced for others |
|
26 |
|
|
4 |
|
|
5 |
|
|
4 |
|
|
5 |
Total residential servicing |
|
1,482 |
|
|
1,502 |
|
|
1,526 |
|
|
1,534 |
|
|
1,543 |
Commercial mortgage servicing: |
|
|
|
|
|
|
|
|
|
|
Serviced for others |
|
552 |
|
|
543 |
|
|
529 |
|
|
518 |
|
|
510 |
Owned loans serviced |
|
122 |
|
|
121 |
|
|
121 |
|
|
124 |
|
|
125 |
Subserviced for others |
|
9 |
|
|
9 |
|
|
9 |
|
|
10 |
|
|
10 |
Total commercial servicing |
|
683 |
|
|
673 |
|
|
659 |
|
|
652 |
|
|
645 |
Total managed servicing portfolio |
|
$ |
2,165 |
|
|
2,175 |
|
|
2,185 |
|
|
2,186 |
|
|
2,188 |
Total serviced for others |
|
$ |
1,677 |
|
|
1,707 |
|
|
1,713 |
|
|
1,708 |
|
|
1,711 |
Ratio of MSRs to related loans serviced for others |
|
0.88 |
% |
|
0.94 |
|
|
1.02 |
|
|
0.98 |
|
|
0.96 |
Weighted-average note rate (mortgage loans serviced for others) |
|
4.34 |
|
|
4.32 |
|
|
4.29 |
|
|
4.27 |
|
|
4.24 |
(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.
|
|
|
Wells Fargo & Company and Subsidiaries
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
|
Quarter ended |
|
|
|
|
Mar 31,
2019 |
|
Dec 31,
2018 |
|
Sep 30,
2018 |
|
Jun 30,
2018 |
|
Mar 31,
2018 |
Net gains on mortgage loan origination/sales activities (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
(A) |
|
$ |
232 |
|
|
245 |
|
|
324 |
|
|
281 |
|
|
324 |
Commercial |
|
|
|
47 |
|
|
65 |
|
|
75 |
|
|
49 |
|
|
76 |
Residential pipeline and unsold/repurchased loan management (1) |
|
|
|
65 |
|
|
48 |
|
|
57 |
|
|
34 |
|
|
66 |
Total |
|
|
|
$ |
344 |
|
|
358 |
|
|
456 |
|
|
364 |
|
|
466 |
Application data (in billions): |
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications |
|
|
|
$ |
64 |
|
|
48 |
|
|
57 |
|
|
67 |
|
|
58 |
Refinances as a percentage of applications |
|
|
|
44 |
% |
|
30 |
|
|
26 |
|
|
25 |
|
|
35 |
Wells Fargo first mortgage unclosed pipeline, at quarter end |
|
|
|
$ |
32 |
|
|
18 |
|
|
22 |
|
|
26 |
|
|
24 |
Residential real estate originations: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations |
|
|
|
70 |
% |
|
78 |
|
|
81 |
|
|
78 |
|
|
65 |
Refinances as a percentage of originations |
|
|
|
30 |
|
|
22 |
|
|
19 |
|
|
22 |
|
|
35 |
Total |
|
|
|
100 |
% |
|
100 |
|
|
100 |
|
|
100 |
|
|
100 |
Wells Fargo first mortgage loans (in billions): |
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
|
|
|
$ |
14 |
|
|
16 |
|
|
18 |
|
|
21 |
|
|
16 |
Correspondent |
|
|
|
18 |
|
|
21 |
|
|
27 |
|
|
28 |
|
|
27 |
Other (2) |
|
|
|
1 |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
— |
Total quarter-to-date |
|
|
|
$ |
33 |
|
|
38 |
|
|
46 |
|
|
50 |
|
|
43 |
Held-for-sale |
|
(B) |
|
$ |
22 |
|
|
28 |
|
|
33 |
|
|
37 |
|
|
34 |
Held-for-investment |
|
|
|
11 |
|
|
10 |
|
|
13 |
|
|
13 |
|
|
9 |
Total quarter-to-date |
|
|
|
$ |
33 |
|
|
38 |
|
|
46 |
|
|
50 |
|
|
43 |
Total year-to-date |
|
|
|
$ |
33 |
|
|
177 |
|
|
139 |
|
|
93 |
|
|
43 |
Production margin on residential held-for-sale mortgage
originations |
|
(A)/(B) |
|
1.05 |
% |
|
0.89 |
|
|
0.97 |
|
|
0.77 |
|
|
0.94 |
(1) Predominantly includes the results of sales of modified GNMA loans, interest rate management
activities and changes in estimate to the liability for mortgage loan repurchase losses.
|
(2) Consists of home equity loans and lines.
|
|
Media
Ancel Martinez, 415-222-3858
ancel.martinez@wellsfargo.com
or
Investor Relations
John M. Campbell, 415-396-0523
john.m.campbell@wellsfargo.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190412005096/en/