Diluted EPS of $0.99; Revenue Up 4 Percent from Prior Year
Wells Fargo & Company (NYSE:WFC):
-
Continued strong financial results:
-
Net income of $5.5 billion, compared with $5.8 billion in first
quarter 2015
-
Diluted earnings per share (EPS) of $0.99, compared with $1.04
-
First quarter 2015 results included discrete tax benefit of
$359 million, or $0.07 per share
-
Revenue of $22.2 billion, up 4 percent
-
Pre-tax pre-provision profit1 of $9.2 billion, up 5
percent
-
Return on assets (ROA) of 1.21 percent and return on equity (ROE)
of 11.75 percent
-
Added $30.8 billion of loans and leases from GE Capital acquisitions
-
$4.1 billion from rail car portfolio (1/1/16 close)
-
$26.7 billion from commercial and industrial loans and leases
(3/1/16 close)
-
Strong growth in loans and deposits:
-
Total average loans of $927.2 billion, up $64.0 billion, or 7
percent, from first quarter 2015
-
Quarter-end loans of $947.3 billion, up $86.0 billion, or 10
percent
-
Total average deposits of $1.2 trillion, up $44.6 billion, or 4
percent, with an average deposit cost of 10 basis points
-
Solid overall credit quality:
-
Net charge-offs of $886 million, up $178 million from first
quarter 2015
-
Net charge-offs were 0.38 percent of average loans
(annualized), up from 0.33 percent
-
Nonaccrual loans down $276 million, or 2 percent
-
Reserve build2 of $200 million, driven by deterioration
in the oil and gas portfolio, compared with a $100 million reserve
release2 in first quarter 2015
-
Maintained strong capital levels and continued share repurchases:
-
Common Equity Tier 1 ratio (fully phased-in) of 10.6 percent3
-
Period-end common shares outstanding down 16.2 million from fourth
quarter 2015
Endnotes can be found at end of release text.
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
0.99
|
|
|
1.00
|
|
|
1.04
|
|
Wells Fargo net income (in billions)
|
|
|
|
5.46
|
|
|
5.58
|
|
|
5.80
|
|
Return on assets (ROA)
|
|
|
|
1.21
|
%
|
|
1.24
|
|
|
1.38
|
|
Return on equity (ROE)
|
|
|
|
11.75
|
|
|
11.93
|
|
|
13.17
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
|
0.38
|
%
|
|
0.36
|
|
|
0.33
|
|
Allowance for credit losses as a % of total loans
|
|
|
|
1.34
|
|
|
1.37
|
|
|
1.51
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
|
355
|
|
|
380
|
|
|
453
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
22.2
|
|
|
21.6
|
|
|
21.3
|
|
Efficiency ratio
|
|
|
|
58.7
|
%
|
|
58.4
|
|
|
58.8
|
|
Average loans (in billions)
|
|
|
$
|
927.2
|
|
|
912.3
|
|
|
863.3
|
|
Average deposits (in billions)
|
|
|
|
1,219.4
|
|
|
1,216.8
|
|
|
1,174.8
|
|
Net interest margin
|
|
|
|
2.90
|
%
|
|
2.92
|
|
|
2.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.5 billion, or
$0.99 per diluted common share, for first quarter 2016, compared with
$5.8 billion, or $1.04 per share, for first quarter 2015, and
$5.6 billion, or $1.00 per share, for fourth quarter 2015.
Chairman and CEO John Stumpf said, “Wells Fargo's first quarter results
reflected the benefit of our diversified business model as we managed
challenges presented by a volatile operating environment for our
industry. We again generated solid growth in the fundamental drivers of
long-term value creation: loans, deposits and capital. We also completed
two important acquisitions from GE Capital, which are great additions to
our company and demonstrate the benefit of our strong financial
position. We remain focused on meeting the financial needs of our
consumer and business customers, and I believe we are well positioned
for the future.”
Chief Financial Officer John Shrewsberry added, “Our first quarter
results demonstrated an ability to produce consistent revenue and net
income across economic and interest rate cycles. While challenges in the
energy industry and persistent low rates impacted our bottom line, our
diversified business model was again beneficial to our results. We were
disciplined in deploying liquidity into investment securities in the
quarter, with gross purchases well below recent quarters. This was
partially responsible for the $30 billion increase in our federal funds
and short-term investment balances compared with the prior quarter. Our
capital remained very strong with Common Equity Tier 1 (fully phased-in)
of $142.7 billion3. Our net payout ratio4 was 60%
in the quarter, as we returned $3.0 billion to shareholders through
common stock dividends and net share repurchases.”
Net Interest Income
Net interest income in first quarter 2016 increased $79 million from
fourth quarter 2015 to $11.7 billion. This increase was driven largely
by earning asset growth, including a partial quarter impact from the
assets acquired from GE Capital, the benefit of the fourth quarter
increase in the federal funds rate and disciplined deposit
pricing. These increases to net interest income were partially offset by
reduced income from variable sources, including periodic dividends and
loans fees, and one less day in the quarter.
Net interest margin was 2.90 percent, down 2 basis points from fourth
quarter 2015. Income from variable sources reduced the net interest
margin by approximately 2 basis points linked-quarter. All other growth,
mix and repricing was essentially neutral to net interest margin.
Noninterest Income
Noninterest income in the first quarter was $10.5 billion, up from $10.0
billion in fourth quarter 2015, primarily due to a $381 million gain
from the previously announced sale of our crop insurance business
(included in other noninterest income) and the impact of lower interest
rates and currency movements on hedging results (hedge ineffectiveness)
of $379 million, driven by long-term debt. Noninterest income also
reflected increases in lease income, which includes operating leases
acquired in the GE Capital transactions, and trading gains, reflecting
higher customer accommodation trading results in all market businesses.
These increases were partially offset by lower gains from equity
investments and debt securities, and declines in trust and investment
fees, mortgage banking fee income, and commercial real estate brokerage
commissions.
Trust and investment fees were $3.4 billion, down $126 million from the
prior quarter, primarily due to lower investment banking fees and lower
retail brokerage transaction activity and asset-based fees reflecting
lower market valuations.
Mortgage banking noninterest income was $1.6 billion, down $62 million
from fourth quarter 2015, primarily driven by a decrease in mortgage
originations and production margins in the first quarter, partially
offset by higher servicing income. Residential mortgage loan
originations were $44 billion in the first quarter, down $3 billion
linked quarter. The production margin on residential held-for-sale
mortgage loan originations5 was 1.68 percent, compared with
1.83 percent in fourth quarter. Net servicing income was $850 million,
compared with $730 million in fourth quarter.
Noninterest Expense
Noninterest expense in the first quarter was $13.0 billion, compared
with $12.6 billion in fourth quarter 2015. First quarter expenses
included seasonally higher employee benefits and incentive compensation,
as well as an increase in operating lease expense due to the leases
acquired in the GE Capital transactions. These higher expenses were
offset by lower outside professional services, equipment and
advertising, which typically decline in first quarter, and lower
operating losses. The efficiency ratio was 58.7 percent in first quarter
2016, compared with 58.4 percent in the prior quarter. The Company
currently expects to operate at the higher end of its targeted
efficiency ratio range of 55 to 59 percent for full year 2016.
Loans
Total loans were $947.3 billion at March 31, 2016, up $30.7 billion, or
3 percent, from December 31, 2015, including $24.9 billion from the GE
Capital acquisitions. First quarter organic loan growth included
commercial and industrial, real estate mortgage, real estate
construction, lease financing, real estate 1-4 family first mortgage and
automobile. Total average loans were $927.2 billion in the first
quarter, up $14.9 billion from the prior quarter, and included an $8.8
billion impact from the GE Capital acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Commercial
|
|
$
|
488,205
|
|
|
456,583
|
|
|
447,338
|
|
|
438,022
|
|
|
415,299
|
|
Consumer
|
|
|
459,053
|
|
|
459,976
|
|
|
455,895
|
|
|
450,437
|
|
|
445,932
|
|
Total loans
|
|
$
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
|
888,459
|
|
|
861,231
|
|
Change from prior quarter
|
|
$
|
30,699
|
|
|
13,326
|
|
|
14,774
|
|
|
27,228
|
|
|
(1,320
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
Investment securities were $334.9 billion at March 31, 2016, down $12.7
billion from fourth quarter, as a result of securities sales, runoff and
modest securities purchases.
Net unrealized available-for-sale securities gains of $3.5 billion at
March 31, 2016, increased from $3.0 billion at December 31, 2015,
primarily due to a decline in interest rates.
Deposits
Total average deposits for first quarter 2016 were $1.2 trillion, up 4
percent from a year ago, driven by both commercial and consumer growth.
The average deposit cost for first quarter 2016 was 10 basis points, up
1 basis point from a year ago and up 2 basis points from the prior
quarter. The increase in deposits reflected strong consumer and small
business growth, in part due to seasonally higher balances.
Capital
Capital levels remained strong in the first quarter, with Common Equity
Tier 1 (fully phased-in) (CET1) of $142.7 billion, or 10.6 percent3,
compared with 10.8 percent in the prior quarter. The decline in the CET1
ratio was primarily driven by the deployment of capital to support the
growth in assets from the GE Capital acquisitions in the quarter. In
first quarter 2016, the Company repurchased 51.7 million shares of its
common stock, which reduced period-end common shares outstanding by 16.2
million shares after taking into account seasonal common stock issuances
to employee benefit plans. The Company paid a quarterly common stock
dividend of $0.375 per share, up from $0.35 per share a year ago.
Credit Quality
“Solid overall credit results continued in the first quarter,” said
Chief Risk Officer Mike Loughlin. “The quarterly loss rate remained low
at 0.38 percent (annualized). While substantially all of the loan
portfolio continues to perform well, the oil and gas portfolio remains
under significant stress due to low prices and excess leverage in this
industry. The increases in losses and nonperforming loans in the first
quarter were primarily due to continued challenges in this portfolio.
The allowance for credit losses in the first quarter reflected a reserve
build of $200 million as higher commercial reserves reflecting continued
deterioration within the oil and gas portfolio were partially offset by
continued credit quality improvements in the residential real estate
portfolio. Future allowance levels will be based on a variety of
factors, including loan growth, portfolio performance and general
economic conditions.”
Net Loan Charge-offs
The quarterly loss rate of 0.38 percent (annualized) reflected
commercial losses of 0.20 percent and consumer losses of 0.57 percent.
Credit losses were $886 million in first quarter 2016, compared with
$831 million in fourth quarter 2015, due to higher oil and gas portfolio
losses.
|
|
Net Loan Charge-Offs
|
|
|
|
|
Quarter ended
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
September 30, 2015
|
|
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
($ in millions)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
273
|
|
|
0.36
|
%
|
|
$
|
215
|
|
|
0.29
|
%
|
|
$
|
122
|
|
|
0.17
|
%
|
Real estate mortgage
|
|
|
|
(29
|
)
|
|
(0.10
|
)
|
|
|
(19
|
)
|
|
(0.06
|
)
|
|
|
(23
|
)
|
|
(0.08
|
)
|
Real estate construction
|
|
|
|
(8
|
)
|
|
(0.13
|
)
|
|
|
(10
|
)
|
|
(0.18
|
)
|
|
|
(8
|
)
|
|
(0.15
|
)
|
Lease financing
|
|
|
|
1
|
|
|
0.01
|
|
|
|
1
|
|
|
0.01
|
|
|
|
3
|
|
|
0.11
|
|
Total commercial
|
|
|
|
237
|
|
|
0.20
|
|
|
|
187
|
|
|
0.16
|
|
|
|
94
|
|
|
0.08
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
48
|
|
|
0.07
|
|
|
|
50
|
|
|
0.07
|
|
|
|
62
|
|
|
0.09
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
74
|
|
|
0.57
|
|
|
|
70
|
|
|
0.52
|
|
|
|
89
|
|
|
0.64
|
|
Credit card
|
|
|
|
262
|
|
|
3.16
|
|
|
|
243
|
|
|
2.93
|
|
|
|
216
|
|
|
2.71
|
|
Automobile
|
|
|
|
127
|
|
|
0.85
|
|
|
|
135
|
|
|
0.90
|
|
|
|
113
|
|
|
0.76
|
|
Other revolving credit and installment
|
|
|
|
138
|
|
|
1.42
|
|
|
|
146
|
|
|
1.49
|
|
|
|
129
|
|
|
1.35
|
|
Total consumer
|
|
|
|
649
|
|
|
0.57
|
|
|
|
644
|
|
|
0.56
|
|
|
|
609
|
|
|
0.53
|
|
Total
|
|
|
$
|
886
|
|
|
0.38
|
%
|
|
$
|
831
|
|
|
0.36
|
%
|
|
$
|
703
|
|
|
0.31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation on page 30 of the accounting for
purchased credit-impaired (PCI) loans and the impact on selected
financial ratios.
|
|
Nonperforming Assets
Nonperforming assets increased by $706 million from fourth quarter 2015
to $13.5 billion. Nonaccrual loans increased $852 million from fourth
quarter to $12.2 billion driven by a $1.1 billion increase in the oil
and gas portfolio and the addition of $343 million of nonaccrual loans
from the GE Capital acquisitions. The increase in nonaccrual loans was
partially offset by a $684 million decline in consumer real estate
nonaccrual loans, partly due to a sale, as well as a $76 million decline
in commercial real estate nonaccrual loans. Foreclosed assets were
$1.3 billion, down from $1.4 billion in fourth quarter 2015.
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
September 30, 2015
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,911
|
|
|
0.91
|
%
|
|
$
|
1,363
|
|
|
0.45
|
%
|
|
$
|
1,031
|
|
|
0.35
|
%
|
Real estate mortgage
|
|
|
|
896
|
|
|
0.72
|
|
|
|
969
|
|
|
0.79
|
|
|
|
1,125
|
|
|
0.93
|
|
Real estate construction
|
|
|
|
63
|
|
|
0.27
|
|
|
|
66
|
|
|
0.30
|
|
|
|
151
|
|
|
0.70
|
|
Lease financing
|
|
|
|
99
|
|
|
0.52
|
|
|
|
26
|
|
|
0.21
|
|
|
|
29
|
|
|
0.24
|
|
Total commercial
|
|
|
|
3,969
|
|
|
0.81
|
|
|
|
2,424
|
|
|
0.53
|
|
|
|
2,336
|
|
|
0.52
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
6,683
|
|
|
2.43
|
|
|
|
7,293
|
|
|
2.66
|
|
|
|
7,425
|
|
|
2.74
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
1,421
|
|
|
2.77
|
|
|
|
1,495
|
|
|
2.82
|
|
|
|
1,612
|
|
|
2.95
|
|
Automobile
|
|
|
|
114
|
|
|
0.19
|
|
|
|
121
|
|
|
0.20
|
|
|
|
123
|
|
|
0.21
|
|
Other revolving credit and installment
|
|
|
|
47
|
|
|
0.12
|
|
|
|
49
|
|
|
0.13
|
|
|
|
41
|
|
|
0.11
|
|
Total consumer
|
|
|
|
8,265
|
|
|
1.80
|
|
|
|
8,958
|
|
|
1.95
|
|
|
|
9,201
|
|
|
2.02
|
|
Total nonaccrual loans
|
|
|
|
12,234
|
|
|
1.29
|
|
|
|
11,382
|
|
|
1.24
|
|
|
|
11,537
|
|
|
1.28
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
|
386
|
|
|
|
|
|
|
446
|
|
|
|
|
|
|
502
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
|
893
|
|
|
|
|
|
|
979
|
|
|
|
|
|
|
1,265
|
|
|
|
|
Total foreclosed assets
|
|
|
|
1,279
|
|
|
|
|
|
|
1,425
|
|
|
|
|
|
|
1,767
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
13,513
|
|
|
1.43
|
%
|
|
$
|
12,807
|
|
|
1.40
|
%
|
|
$
|
13,304
|
|
|
1.47
|
%
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
852
|
|
|
|
|
|
$
|
(155
|
)
|
|
|
|
|
$
|
(906
|
)
|
|
|
|
Total nonperforming assets
|
|
|
|
706
|
|
|
|
|
|
|
(497
|
)
|
|
|
|
|
|
(1,097
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 Days or More Past Due and Still Accruing
Loans 90 days or more past due and still accruing (excluding government
insured/guaranteed) totaled $803 million at March 31, 2016, down from
$981 million at December 31, 2015. Loans 90 days or more past due and
still accruing with repayments insured by the Federal Housing
Administration (FHA) or predominantly guaranteed by the Department of
Veterans Affairs (VA) for mortgage loans and the U.S. Department of
Education for student loans under the Federal Family Education Loan
Program were $12.3 billion at March 31, 2016, down from $13.4 billion at
December 31, 2015.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.7 billion at March 31, 2016, compared with
$12.5 billion at December 31, 2015. The allowance coverage for total
loans was 1.34 percent, compared with 1.37 percent in fourth quarter
2015, as loans and leases acquired from GE Capital were recorded at fair
value under the purchase method of accounting which fully reflects
life-of-loan expected credit losses. The allowance covered 3.6 times
annualized first quarter net charge-offs, compared with 3.8 times in the
prior quarter. The allowance coverage for nonaccrual loans was
104 percent at March 31, 2016, compared with 110 percent at December 31,
2015. “We believe the allowance was appropriate for losses inherent in
the loan portfolio at March 31, 2016,” said Loughlin.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Community Banking
|
|
|
$
|
3,296
|
|
|
3,169
|
|
|
3,547
|
|
Wholesale Banking
|
|
|
|
1,921
|
|
|
2,104
|
|
|
1,974
|
|
Wealth and Investment Management
|
|
|
|
512
|
|
|
595
|
|
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and auto, student, and small business lending.
Community Banking also offers investment, insurance and trust services
in 39 states and D.C., and mortgage and home equity loans in all 50
states and D.C. through its Regional Banking and Wells Fargo Home
Lending business units.
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Total revenue
|
|
|
$
|
12,614
|
|
|
12,330
|
|
|
12,111
|
|
Provision for credit losses
|
|
|
|
720
|
|
|
704
|
|
|
658
|
|
Noninterest expense
|
|
|
|
6,836
|
|
|
6,893
|
|
|
6,591
|
|
Segment net income
|
|
|
|
3,296
|
|
|
3,169
|
|
|
3,547
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
484.3
|
|
|
482.2
|
|
|
472.2
|
|
Average assets
|
|
|
|
947.4
|
|
|
921.4
|
|
|
909.5
|
|
Average deposits
|
|
|
|
683.0
|
|
|
663.7
|
|
|
643.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.3 billion, up $127 million,
or 4 percent, from fourth quarter 2015. Revenue of $12.6 billion
increased $284 million, or 2 percent, from fourth quarter 2015 due to
higher net interest income and other income (hedging ineffectiveness,
driven by long-term debt hedging results), partially offset by lower
equity investment gains, and lower gains on deferred compensation plan
investments (offset in employee benefits expense). Noninterest expense
was down 1 percent, compared with fourth quarter 2015, due to lower
project-related expense, equipment expense, operating losses, and
deferred compensation plan expense (offset in trading revenue),
partially offset by seasonally higher personnel expense. The provision
for credit losses increased $16 million from the prior quarter.
Net income was down $251 million, or 7 percent, from first quarter 2015.
First quarter 2015 results included a discrete tax benefit of $359
million. Revenue was up $503 million, or 4 percent, compared with a year
ago due to higher net interest income, mortgage banking fees, deposit
service charges, and debit and credit card fees, partially offset by
lower market sensitive revenue, primarily gains on equity investments
and trading activities, and lower trust and investment fees. Noninterest
expense increased $245 million, or 4 percent, from a year ago driven by
higher operating losses and personnel expenses, partially offset by
lower foreclosed assets expense. The provision for credit losses
increased $62 million from a year ago primarily due to an allowance
build compared with a reserve release in first quarter 2015.
Regional Banking
-
Retail Banking
-
Primary consumer checking customers6 up 5.0 percent
year-over-year7
-
Debit card purchase volume8 of $72 billion in first
quarter, up 9 percent year-over-year
-
Retail Bank household cross-sell ratio of 6.09 products per
household, compared with 6.13 year-over-year7
-
Digital Banking
-
27.2 million digital (online and mobile) active customers, up 6
percent year-over-year7,9
-
17.7 million mobile active customers, with continued double digit
growth in mobile adoption7,9
-
#1 overall performance in Keynote Mobile Banking Scorecard; also
best in “Functionality,” “Ease of Use,” and “Quality &
Availability” (March 2016)
Consumer Lending Group
-
Home Lending
-
Originations of $44 billion, down from $47 billion in prior quarter
-
Applications of $77 billion, up from $64 billion in prior quarter
-
Application pipeline of $39 billion at quarter end, up from $29
billion at December 31, 2015
-
Consumer Credit
-
Credit card purchase volume of $17.5 billion in first quarter, up
13 percent year-over-year
-
Credit card penetration in retail banking households rose to 43.3
percent, up from 41.8 percent in prior year
-
Auto originations of $7.7 billion in first quarter, up 2 percent
from prior quarter and up 9 percent from prior year
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 Business Banking, Middle Market Commercial Banking,
Government and Institutional Banking, Corporate Banking, Commercial Real
Estate, Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage
Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities,
Principal Investments and Asset Backed Finance.
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Total revenue
|
|
|
$
|
6,958
|
|
|
6,559
|
|
|
6,409
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
363
|
|
|
126
|
|
|
(51
|
)
|
Noninterest expense
|
|
|
|
3,968
|
|
|
3,491
|
|
|
3,618
|
|
Segment net income
|
|
|
|
1,921
|
|
|
2,104
|
|
|
1,974
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
429.8
|
|
|
417.0
|
|
|
380.0
|
|
Average assets
|
|
|
|
748.6
|
|
|
755.4
|
|
|
690.6
|
|
Average deposits
|
|
|
|
428.0
|
|
|
449.3
|
|
|
431.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $1.9 billion, down
$183 million, or 9 percent, from fourth quarter 2015. Revenue of
$7.0 billion increased $399 million, or 6 percent, from prior quarter
and included the acquisitions of GE Railcar Services (closed 1/1/16) and
GE Capital’s North American Commercial Distribution Finance and Vendor
Finance businesses (closed 3/1/16). Net interest income increased
$37 million, or 1 percent, as broad-based loan growth, including the GE
Capital acquisitions, and increased trading-related revenue was
partially offset by lower deposits. Noninterest income increased
$362 million, or 13 percent, as the gain on sale of the crop insurance
business, strong customer accommodation trading results and the GE
Capital acquisitions were partially offset by lower results in
commercial real estate businesses and lower investment banking fees and
gains on equity fund investments. Noninterest expense increased
$477 million, or 14 percent, from prior quarter due to the GE Capital
acquisitions as well as seasonally higher personnel expenses, increased
foreclosed asset expenses and seasonally higher insurance commissions.
The provision for credit losses increased $237 million from the prior
quarter, primarily due to higher loan losses in the oil and gas
portfolio.
Net income was down $53 million from first quarter 2015. Revenue
increased $549 million, or 9 percent, from first quarter 2015, on $311
million higher net interest income related to strong loan growth as well
as the GE Capital acquisitions and $238 million higher noninterest
income. Noninterest income increased due to the GE Capital acquisitions,
the gain related to the sale of the crop insurance business and higher
treasury management fees, partially offset by lower investment banking
fees and lower gains on debt securities and trading assets. Noninterest
expense increased $350 million, or 10 percent, from a year ago primarily
due to the GE Capital acquisitions and higher personnel expenses related
to growth initiatives, compliance, and regulatory requirements. The
provision for credit losses increased $414 million from a year ago due
to increased loan losses primarily related to the oil and gas portfolio.
The first quarter 2015 results included a $39 million reserve release.
-
Average loans increased 13 percent from first quarter 2015, on
broad-based growth, including asset-backed finance, commercial real
estate, corporate banking, equipment finance and structured real
estate as well as the GE Capital acquisitions
-
Cross-sell of 7.3 products per relationship, up from 7.2 products in
first quarter 201510
-
Treasury management revenue up 7 percent from first quarter 2015
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
customers’ 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)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Total revenue
|
|
|
$
|
3,854
|
|
|
3,947
|
|
|
3,976
|
|
Reversal of provision for credit losses
|
|
|
|
(14
|
)
|
|
(6
|
)
|
|
(3
|
)
|
Noninterest expense
|
|
|
|
3,042
|
|
|
2,998
|
|
|
3,122
|
|
Segment net income
|
|
|
|
512
|
|
|
595
|
|
|
529
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
64.1
|
|
|
63.0
|
|
|
56.9
|
|
Average assets
|
|
|
|
208.1
|
|
|
197.9
|
|
|
191.6
|
|
Average deposits
|
|
|
|
184.5
|
|
|
177.9
|
|
|
170.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $512 million,
down $83 million, or 14 percent, from fourth quarter 2015. Revenue of
$3.9 billion decreased $93 million, or 2 percent, from the prior
quarter, primarily due to lower brokerage transaction revenue,
asset-based fees, and gains on deferred compensation plan investments
(offset in employee benefits expense), partially offset by higher net
interest income. Noninterest expense increased $44 million, or 1
percent, from the prior quarter, driven primarily by seasonally higher
personnel expenses, partially offset by lower non-personnel expenses,
broker commissions, and deferred compensation plan expense (offset in
trading revenue). The provision for credit losses was down $8 million
from fourth quarter 2015.
Net income was down $17 million, or 3 percent, from first quarter 2015.
Revenue decreased $122 million, or 3 percent, from a year ago primarily
driven by lower asset-based fees and brokerage transaction revenue,
partially offset by higher net interest income. Noninterest expense
decreased $80 million, or 3 percent, from a year ago, primarily due to
lower broker commissions and operating losses, partially offset by
higher other personnel expenses. The provision for credit losses
decreased $11 million from a year ago.
Retail Brokerage
-
Client assets of $1.4 trillion, down 2 percent from prior year
-
Advisory assets of $428 billion, down 1 percent from prior year, as
lower market valuations were partially offset by net flows
-
Strong loan growth, with average balances up 22 percent from prior
year largely due to continued growth in non-conforming mortgage loans
and security-based lending
Wealth Management
-
Client assets of $225 billion, down 1 percent from prior year
-
Average loan balances up 9 percent over prior year primarily driven by
continued growth in non-conforming mortgage loans and security-based
lending
Retirement
-
IRA assets of $357 billion, down 2 percent from prior year
-
Institutional Retirement plan assets of $331 billion, down 5 percent
from prior year
Asset Management
-
Total assets under management of $481 billion, down 2 percent from
prior year due to equity outflows and lower market valuations,
partially offset by favorable fixed income and money market net client
inflows
WIM cross-sell ratio of 10.55 products per household, up
from 10.44 a year ago7
Conference Call
The Company will host a live conference call on Thursday, April 14, at 7
a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S.
and Canada) or 706-643-1962 (International). The call will also be
available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/index.jsp?eid=3946&seid=273.
A replay of the conference call will be available beginning at 10 a.m.
PT (1 p.m. ET) on Thursday, April 14 through Sunday, April 24. Please
dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and
enter Conference ID #51058505. The replay will also be available online
at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/index.jsp?eid=3946&seid=273.
|
Endnotes
|
1
|
|
Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to assess
the Company's ability to generate capital to cover credit losses
through a credit cycle.
|
2
|
|
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 33 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
|
|
Net payout ratio means the ratio of (i) common stock dividends and
share repurchases less issuances and stock compensation-related
items, divided by (ii) net income applicable to common stock.
|
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 38 for more
information.
|
6
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
7
|
|
Data as of February 2016, comparisons with February 2015.
|
8
|
|
Combined consumer and business debit card purchase volume dollars.
|
9
|
|
Primarily includes retail banking, consumer lending, small business
and business banking customers.
|
10
|
|
Cross-sell reported on a one-quarter lag and does not reflect
Business Banking relationships. Business Banking realigned from
Community Banking to Wholesale Banking effective fourth quarter 2015.
|
|
|
|
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 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 and return on equity; (xii) the outcome of
contingencies, such as legal proceedings; and (xiii) the Company’s
plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead
represent our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance that any
list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the following, without
limitation:
-
current and future economic and market conditions, including the
effects of declines in housing prices, high unemployment rates, U.S.
fiscal debt, budget and tax matters, geopolitical matters, and the
overall slowdown in global economic growth;
-
our capital and liquidity requirements (including under regulatory
capital standards, such as the Basel III capital standards) and our
ability to generate capital internally or raise capital on favorable
terms;
-
financial services reform and other current, pending or future
legislation or regulation that could have a negative effect on our
revenue and businesses, including the Dodd-Frank Act and other
legislation and regulation relating to bank products and services;
-
the extent of our success in our loan modification efforts, as well as
the effects of regulatory requirements or guidance regarding loan
modifications;
-
the amount of mortgage loan repurchase demands that we receive and our
ability to satisfy any such demands without having to repurchase loans
related thereto or otherwise indemnify or reimburse third parties, and
the credit quality of or losses on such repurchased mortgage loans;
-
negative effects relating to our mortgage servicing and foreclosure
practices, as well as changes in industry standards or practices,
regulatory or judicial requirements, penalties or fines, increased
servicing and other costs or obligations, including loan modification
requirements, or delays or moratoriums on foreclosures;
-
our ability to realize our efficiency ratio target as part of our
expense management initiatives, including as a result of business and
economic cyclicality, seasonality, changes in our business composition
and operating environment, growth in our businesses and/or
acquisitions, and unexpected expenses relating to, among other things,
litigation and regulatory matters;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
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 investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2015.
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, 2015, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.8 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through 8,800 locations, 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 36 countries to support customers who
conduct business in the global economy. With approximately 269,000 team
members, Wells Fargo serves one in three households in the United
States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015
rankings of America’s largest corporations. Wells Fargo’s vision is to
satisfy our customers’ financial needs and help them succeed financially.
|
Wells Fargo & Company and Subsidiaries
|
QUARTERLY FINANCIAL DATA
|
TABLE OF CONTENTS
|
|
|
|
|
Pages
|
|
|
|
|
Summary Information
|
|
|
|
Summary Financial Data
|
|
|
16
|
|
|
|
|
Income
|
|
|
|
Consolidated Statement of Income
|
|
|
18
|
Consolidated Statement of Comprehensive Income
|
|
|
20
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
|
20
|
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
|
21
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
|
22
|
Noninterest Income and Noninterest Expense
|
|
|
23
|
|
|
|
|
Balance Sheet
|
|
|
|
Consolidated Balance Sheet
|
|
|
25
|
Investment Securities
|
|
|
27
|
|
|
|
|
Loans
|
|
|
|
Loans
|
|
|
27
|
Nonperforming Assets
|
|
|
28
|
Loans 90 Days or More Past Due and Still Accruing
|
|
|
29
|
Purchased Credit-Impaired Loans
|
|
|
30
|
Pick-A-Pay Portfolio
|
|
|
31
|
Changes in Allowance for Credit Losses
|
|
|
32
|
|
|
|
|
Equity
|
|
|
|
Common Equity Tier 1 Under Basel III
|
|
|
33
|
|
|
|
|
Operating Segments
|
|
|
|
Operating Segment Results
|
|
|
34
|
|
|
|
|
Other
|
|
|
|
Mortgage Servicing and other related data
|
|
|
36
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
Quarter ended
|
|
|
Mar 31, 2016 from
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
($ in millions, except per share amounts)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,575
|
|
|
5,804
|
|
|
(2
|
)%
|
|
(6
|
)
|
Wells Fargo net income applicable to common stock
|
|
|
|
5,085
|
|
|
5,203
|
|
|
5,461
|
|
|
(2
|
)
|
|
(7
|
)
|
Diluted earnings per common share
|
|
|
|
0.99
|
|
|
1.00
|
|
|
1.04
|
|
|
(1
|
)
|
|
(5
|
)
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
1.21
|
%
|
|
1.24
|
|
|
1.38
|
|
|
(2
|
)
|
|
(12
|
)
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
|
11.75
|
|
|
11.93
|
|
|
13.17
|
|
|
(2
|
)
|
|
(11
|
)
|
Efficiency ratio (1)
|
|
|
|
58.7
|
|
|
58.4
|
|
|
58.8
|
|
|
1
|
|
|
—
|
|
Total revenue
|
|
|
$
|
22,195
|
|
|
21,586
|
|
|
21,278
|
|
|
3
|
|
|
4
|
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
|
|
9,167
|
|
|
8,987
|
|
|
8,771
|
|
|
2
|
|
|
5
|
|
Dividends declared per common share
|
|
|
|
0.375
|
|
|
0.375
|
|
|
0.350
|
|
|
—
|
|
|
7
|
|
Average common shares outstanding
|
|
|
|
5,075.7
|
|
|
5,108.5
|
|
|
5,160.4
|
|
|
(1
|
)
|
|
(2
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,139.4
|
|
|
5,177.9
|
|
|
5,243.6
|
|
|
(1
|
)
|
|
(2
|
)
|
Average loans
|
|
|
$
|
927,220
|
|
|
912,280
|
|
|
863,261
|
|
|
2
|
|
|
7
|
|
Average assets
|
|
|
|
1,819,875
|
|
|
1,787,287
|
|
|
1,707,798
|
|
|
2
|
|
|
7
|
|
Average total deposits
|
|
|
|
1,219,430
|
|
|
1,216,809
|
|
|
1,174,793
|
|
|
—
|
|
|
4
|
|
Average consumer and small business banking deposits (3)
|
|
|
|
714,837
|
|
|
696,484
|
|
|
665,896
|
|
|
3
|
|
|
7
|
|
Net interest margin
|
|
|
|
2.90
|
%
|
|
2.92
|
|
|
2.95
|
|
|
(1
|
)
|
|
(2
|
)
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
334,899
|
|
|
347,555
|
|
|
324,736
|
|
|
(4
|
)
|
|
3
|
|
Loans
|
|
|
|
947,258
|
|
|
916,559
|
|
|
861,231
|
|
|
3
|
|
|
10
|
|
Allowance for loan losses
|
|
|
|
11,621
|
|
|
11,545
|
|
|
12,176
|
|
|
1
|
|
|
(5
|
)
|
Goodwill
|
|
|
|
27,003
|
|
|
25,529
|
|
|
25,705
|
|
|
6
|
|
|
5
|
|
Assets
|
|
|
|
1,849,182
|
|
|
1,787,632
|
|
|
1,737,737
|
|
|
3
|
|
|
6
|
|
Deposits
|
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1,196,663
|
|
|
1
|
|
|
4
|
|
Common stockholders' equity
|
|
|
|
175,534
|
|
|
172,036
|
|
|
168,834
|
|
|
2
|
|
|
4
|
|
Wells Fargo stockholders’ equity
|
|
|
|
197,496
|
|
|
192,998
|
|
|
188,796
|
|
|
2
|
|
|
5
|
|
Total equity
|
|
|
|
198,504
|
|
|
193,891
|
|
|
189,964
|
|
|
2
|
|
|
4
|
|
Common shares outstanding
|
|
|
|
5,075.9
|
|
|
5,092.1
|
|
|
5,162.9
|
|
|
—
|
|
|
(2
|
)
|
Book value per common share (4)
|
|
|
$
|
34.58
|
|
|
33.78
|
|
|
32.70
|
|
|
2
|
|
|
6
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
53.27
|
|
|
56.34
|
|
|
56.29
|
|
|
(5
|
)
|
|
(5
|
)
|
Low
|
|
|
|
44.50
|
|
|
49.51
|
|
|
50.42
|
|
|
(10
|
)
|
|
(12
|
)
|
Period end
|
|
|
|
48.36
|
|
|
54.36
|
|
|
54.40
|
|
|
(11
|
)
|
|
(11
|
)
|
Team members (active, full-time equivalent)
|
|
|
|
268,600
|
|
|
264,700
|
|
|
266,000
|
|
|
1
|
|
|
1
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(3) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(4) Book value per common share is common stockholders' 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)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
|
5,719
|
|
|
5,804
|
|
Wells Fargo net income applicable to common stock
|
|
|
|
5,085
|
|
|
5,203
|
|
|
5,443
|
|
|
5,363
|
|
|
5,461
|
|
Diluted earnings per common share
|
|
|
|
0.99
|
|
|
1.00
|
|
|
1.05
|
|
|
1.03
|
|
|
1.04
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
1.21
|
%
|
|
1.24
|
|
|
1.32
|
|
|
1.33
|
|
|
1.38
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
|
11.75
|
|
|
11.93
|
|
|
12.62
|
|
|
12.71
|
|
|
13.17
|
|
Efficiency ratio (1)
|
|
|
|
58.7
|
|
|
58.4
|
|
|
56.7
|
|
|
58.5
|
|
|
58.8
|
|
Total revenue
|
|
|
$
|
22,195
|
|
|
21,586
|
|
|
21,875
|
|
|
21,318
|
|
|
21,278
|
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
|
|
9,167
|
|
|
8,987
|
|
|
9,476
|
|
|
8,849
|
|
|
8,771
|
|
Dividends declared per common share
|
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
|
0.350
|
|
Average common shares outstanding
|
|
|
|
5,075.7
|
|
|
5,108.5
|
|
|
5,125.8
|
|
|
5,151.9
|
|
|
5,160.4
|
|
Diluted average common shares outstanding
|
|
|
|
5,139.4
|
|
|
5,177.9
|
|
|
5,193.8
|
|
|
5,220.5
|
|
|
5,243.6
|
|
Average loans
|
|
|
$
|
927,220
|
|
|
912,280
|
|
|
895,095
|
|
|
870,446
|
|
|
863,261
|
|
Average assets
|
|
|
|
1,819,875
|
|
|
1,787,287
|
|
|
1,746,402
|
|
|
1,729,278
|
|
|
1,707,798
|
|
Average total deposits
|
|
|
|
1,219,430
|
|
|
1,216,809
|
|
|
1,198,874
|
|
|
1,185,304
|
|
|
1,174,793
|
|
Average consumer and small business banking deposits (3)
|
|
|
|
714,837
|
|
|
696,484
|
|
|
683,245
|
|
|
674,889
|
|
|
665,896
|
|
Net interest margin
|
|
|
|
2.90
|
%
|
|
2.92
|
|
|
2.96
|
|
|
2.97
|
|
|
2.95
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
334,899
|
|
|
347,555
|
|
|
345,074
|
|
|
340,769
|
|
|
324,736
|
|
Loans
|
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
|
888,459
|
|
|
861,231
|
|
Allowance for loan losses
|
|
|
|
11,621
|
|
|
11,545
|
|
|
11,659
|
|
|
11,754
|
|
|
12,176
|
|
Goodwill
|
|
|
|
27,003
|
|
|
25,529
|
|
|
25,684
|
|
|
25,705
|
|
|
25,705
|
|
Assets
|
|
|
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
|
1,720,617
|
|
|
1,737,737
|
|
Deposits
|
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1,202,179
|
|
|
1,185,828
|
|
|
1,196,663
|
|
Common stockholders' equity
|
|
|
|
175,534
|
|
|
172,036
|
|
|
172,089
|
|
|
169,596
|
|
|
168,834
|
|
Wells Fargo stockholders’ equity
|
|
|
|
197,496
|
|
|
192,998
|
|
|
193,051
|
|
|
189,558
|
|
|
188,796
|
|
Total equity
|
|
|
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
|
190,676
|
|
|
189,964
|
|
Common shares outstanding
|
|
|
|
5,075.9
|
|
|
5,092.1
|
|
|
5,108.5
|
|
|
5,145.2
|
|
|
5,162.9
|
|
Book value per common share (4)
|
|
|
$
|
34.58
|
|
|
33.78
|
|
|
33.69
|
|
|
32.96
|
|
|
32.70
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
53.27
|
|
|
56.34
|
|
|
58.77
|
|
|
58.26
|
|
|
56.29
|
|
Low
|
|
|
|
44.50
|
|
|
49.51
|
|
|
47.75
|
|
|
53.56
|
|
|
50.42
|
|
Period end
|
|
|
|
48.36
|
|
|
54.36
|
|
|
51.35
|
|
|
56.24
|
|
|
54.40
|
|
Team members (active, full-time equivalent)
|
|
|
|
268,600
|
|
|
264,700
|
|
|
265,200
|
|
|
265,800
|
|
|
266,000
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(3) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(4) Book value per common share is common stockholders' 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)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
596
|
|
|
445
|
|
|
34
|
%
|
Investment securities
|
|
|
|
2,262
|
|
|
2,144
|
|
|
6
|
|
Mortgages held for sale
|
|
|
|
161
|
|
|
177
|
|
|
(9
|
)
|
Loans held for sale
|
|
|
|
2
|
|
|
5
|
|
|
(60
|
)
|
Loans
|
|
|
|
9,577
|
|
|
8,938
|
|
|
7
|
|
Other interest income
|
|
|
|
374
|
|
|
254
|
|
|
47
|
|
Total interest income
|
|
|
|
12,972
|
|
|
11,963
|
|
|
8
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
307
|
|
|
258
|
|
|
19
|
|
Short-term borrowings
|
|
|
|
67
|
|
|
18
|
|
|
272
|
|
Long-term debt
|
|
|
|
842
|
|
|
604
|
|
|
39
|
|
Other interest expense
|
|
|
|
89
|
|
|
97
|
|
|
(8
|
)
|
Total interest expense
|
|
|
|
1,305
|
|
|
977
|
|
|
34
|
|
Net interest income
|
|
|
|
11,667
|
|
|
10,986
|
|
|
6
|
|
Provision for credit losses
|
|
|
|
1,086
|
|
|
608
|
|
|
79
|
|
Net interest income after provision for credit losses
|
|
|
|
10,581
|
|
|
10,378
|
|
|
2
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,309
|
|
|
1,215
|
|
|
8
|
|
Trust and investment fees
|
|
|
|
3,385
|
|
|
3,677
|
|
|
(8
|
)
|
Card fees
|
|
|
|
941
|
|
|
871
|
|
|
8
|
|
Other fees
|
|
|
|
933
|
|
|
1,078
|
|
|
(13
|
)
|
Mortgage banking
|
|
|
|
1,598
|
|
|
1,547
|
|
|
3
|
|
Insurance
|
|
|
|
427
|
|
|
430
|
|
|
(1
|
)
|
Net gains from trading activities
|
|
|
|
200
|
|
|
408
|
|
|
(51
|
)
|
Net gains on debt securities
|
|
|
|
244
|
|
|
278
|
|
|
(12
|
)
|
Net gains from equity investments
|
|
|
|
244
|
|
|
370
|
|
|
(34
|
)
|
Lease income
|
|
|
|
373
|
|
|
132
|
|
|
183
|
|
Other
|
|
|
|
874
|
|
|
286
|
|
|
206
|
|
Total noninterest income
|
|
|
|
10,528
|
|
|
10,292
|
|
|
2
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,036
|
|
|
3,851
|
|
|
5
|
|
Commission and incentive compensation
|
|
|
|
2,645
|
|
|
2,685
|
|
|
(1
|
)
|
Employee benefits
|
|
|
|
1,526
|
|
|
1,477
|
|
|
3
|
|
Equipment
|
|
|
|
528
|
|
|
494
|
|
|
7
|
|
Net occupancy
|
|
|
|
711
|
|
|
723
|
|
|
(2
|
)
|
Core deposit and other intangibles
|
|
|
|
293
|
|
|
312
|
|
|
(6
|
)
|
FDIC and other deposit assessments
|
|
|
|
250
|
|
|
248
|
|
|
1
|
|
Other
|
|
|
|
3,039
|
|
|
2,717
|
|
|
12
|
|
Total noninterest expense
|
|
|
|
13,028
|
|
|
12,507
|
|
|
4
|
|
Income before income tax expense
|
|
|
|
8,081
|
|
|
8,163
|
|
|
(1
|
)
|
Income tax expense
|
|
|
|
2,567
|
|
|
2,279
|
|
|
13
|
|
Net income before noncontrolling interests
|
|
|
|
5,514
|
|
|
5,884
|
|
|
(6
|
)
|
Less: Net income from noncontrolling interests
|
|
|
|
52
|
|
|
80
|
|
|
(35
|
)
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,804
|
|
|
(6
|
)
|
Less: Preferred stock dividends and other
|
|
|
|
377
|
|
|
343
|
|
|
10
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,085
|
|
|
5,461
|
|
|
(7
|
)
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.00
|
|
|
1.06
|
|
|
(6
|
)
|
Diluted earnings per common share
|
|
|
|
0.99
|
|
|
1.04
|
|
|
(5
|
)
|
Dividends declared per common share
|
|
|
|
0.375
|
|
|
0.350
|
|
|
7
|
|
Average common shares outstanding
|
|
|
|
5,075.7
|
|
|
5,160.4
|
|
|
(2
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,139.4
|
|
|
5,243.6
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
596
|
|
|
558
|
|
|
485
|
|
|
483
|
|
|
445
|
|
Investment securities
|
|
|
|
2,262
|
|
|
2,323
|
|
|
2,289
|
|
|
2,181
|
|
|
2,144
|
|
Mortgages held for sale
|
|
|
|
161
|
|
|
176
|
|
|
223
|
|
|
209
|
|
|
177
|
|
Loans held for sale
|
|
|
|
2
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
5
|
|
Loans
|
|
|
|
9,577
|
|
|
9,323
|
|
|
9,216
|
|
|
9,098
|
|
|
8,938
|
|
Other interest income
|
|
|
|
374
|
|
|
258
|
|
|
228
|
|
|
250
|
|
|
254
|
|
Total interest income
|
|
|
|
12,972
|
|
|
12,643
|
|
|
12,445
|
|
|
12,226
|
|
|
11,963
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
307
|
|
|
241
|
|
|
232
|
|
|
232
|
|
|
258
|
|
Short-term borrowings
|
|
|
|
67
|
|
|
13
|
|
|
12
|
|
|
21
|
|
|
18
|
|
Long-term debt
|
|
|
|
842
|
|
|
713
|
|
|
655
|
|
|
620
|
|
|
604
|
|
Other interest expense
|
|
|
|
89
|
|
|
88
|
|
|
89
|
|
|
83
|
|
|
97
|
|
Total interest expense
|
|
|
|
1,305
|
|
|
1,055
|
|
|
988
|
|
|
956
|
|
|
977
|
|
Net interest income
|
|
|
|
11,667
|
|
|
11,588
|
|
|
11,457
|
|
|
11,270
|
|
|
10,986
|
|
Provision for credit losses
|
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
|
300
|
|
|
608
|
|
Net interest income after provision for credit losses
|
|
|
|
10,581
|
|
|
10,757
|
|
|
10,754
|
|
|
10,970
|
|
|
10,378
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,309
|
|
|
1,329
|
|
|
1,335
|
|
|
1,289
|
|
|
1,215
|
|
Trust and investment fees
|
|
|
|
3,385
|
|
|
3,511
|
|
|
3,570
|
|
|
3,710
|
|
|
3,677
|
|
Card fees
|
|
|
|
941
|
|
|
966
|
|
|
953
|
|
|
930
|
|
|
871
|
|
Other fees
|
|
|
|
933
|
|
|
1,040
|
|
|
1,099
|
|
|
1,107
|
|
|
1,078
|
|
Mortgage banking
|
|
|
|
1,598
|
|
|
1,660
|
|
|
1,589
|
|
|
1,705
|
|
|
1,547
|
|
Insurance
|
|
|
|
427
|
|
|
427
|
|
|
376
|
|
|
461
|
|
|
430
|
|
Net gains (losses) from trading activities
|
|
|
|
200
|
|
|
99
|
|
|
(26
|
)
|
|
133
|
|
|
408
|
|
Net gains on debt securities
|
|
|
|
244
|
|
|
346
|
|
|
147
|
|
|
181
|
|
|
278
|
|
Net gains from equity investments
|
|
|
|
244
|
|
|
423
|
|
|
920
|
|
|
517
|
|
|
370
|
|
Lease income
|
|
|
|
373
|
|
|
145
|
|
|
189
|
|
|
155
|
|
|
132
|
|
Other
|
|
|
|
874
|
|
|
52
|
|
|
266
|
|
|
(140
|
)
|
|
286
|
|
Total noninterest income
|
|
|
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
|
10,048
|
|
|
10,292
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,036
|
|
|
4,061
|
|
|
4,035
|
|
|
3,936
|
|
|
3,851
|
|
Commission and incentive compensation
|
|
|
|
2,645
|
|
|
2,457
|
|
|
2,604
|
|
|
2,606
|
|
|
2,685
|
|
Employee benefits
|
|
|
|
1,526
|
|
|
1,042
|
|
|
821
|
|
|
1,106
|
|
|
1,477
|
|
Equipment
|
|
|
|
528
|
|
|
640
|
|
|
459
|
|
|
470
|
|
|
494
|
|
Net occupancy
|
|
|
|
711
|
|
|
725
|
|
|
728
|
|
|
710
|
|
|
723
|
|
Core deposit and other intangibles
|
|
|
|
293
|
|
|
311
|
|
|
311
|
|
|
312
|
|
|
312
|
|
FDIC and other deposit assessments
|
|
|
|
250
|
|
|
258
|
|
|
245
|
|
|
222
|
|
|
248
|
|
Other
|
|
|
|
3,039
|
|
|
3,105
|
|
|
3,196
|
|
|
3,107
|
|
|
2,717
|
|
Total noninterest expense
|
|
|
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
|
12,469
|
|
|
12,507
|
|
Income before income tax expense
|
|
|
|
8,081
|
|
|
8,156
|
|
|
8,773
|
|
|
8,549
|
|
|
8,163
|
|
Income tax expense
|
|
|
|
2,567
|
|
|
2,533
|
|
|
2,790
|
|
|
2,763
|
|
|
2,279
|
|
Net income before noncontrolling interests
|
|
|
|
5,514
|
|
|
5,623
|
|
|
5,983
|
|
|
5,786
|
|
|
5,884
|
|
Less: Net income from noncontrolling interests
|
|
|
|
52
|
|
|
48
|
|
|
187
|
|
|
67
|
|
|
80
|
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
|
5,719
|
|
|
5,804
|
|
Less: Preferred stock dividends and other
|
|
|
|
377
|
|
|
372
|
|
|
353
|
|
|
356
|
|
|
343
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,085
|
|
|
5,203
|
|
|
5,443
|
|
|
5,363
|
|
|
5,461
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.00
|
|
|
1.02
|
|
|
1.06
|
|
|
1.04
|
|
|
1.06
|
|
Diluted earnings per common share
|
|
|
|
0.99
|
|
|
1.00
|
|
|
1.05
|
|
|
1.03
|
|
|
1.04
|
|
Dividends declared per common share
|
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
|
0.350
|
|
Average common shares outstanding
|
|
|
|
5,075.7
|
|
|
5,108.5
|
|
|
5,125.8
|
|
|
5,151.9
|
|
|
5,160.4
|
|
Diluted average common shares outstanding
|
|
|
|
5,139.4
|
|
|
5,177.9
|
|
|
5,193.8
|
|
|
5,220.5
|
|
|
5,243.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
Quarter ended Mar 31,
|
|
|
%
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,804
|
|
|
(6
|
)%
|
Other comprehensive income, before tax:
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
795
|
|
|
393
|
|
|
102
|
|
Reclassification of net gains to net income
|
|
|
|
(304
|
)
|
|
(300
|
)
|
|
1
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
1,999
|
|
|
952
|
|
|
110
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(256
|
)
|
|
(234
|
)
|
|
9
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial losses arising during the period
|
|
|
|
(8
|
)
|
|
(11
|
)
|
|
(27
|
)
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
|
37
|
|
|
43
|
|
|
(14
|
)
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
43
|
|
|
(55
|
)
|
|
NM
|
|
Other comprehensive income, before tax
|
|
|
|
2,306
|
|
|
788
|
|
|
193
|
|
Income tax expense related to other comprehensive income
|
|
|
|
(857
|
)
|
|
(228
|
)
|
|
276
|
|
Other comprehensive income, net of tax
|
|
|
|
1,449
|
|
|
560
|
|
|
159
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
|
(28
|
)
|
|
301
|
|
|
NM
|
|
Wells Fargo other comprehensive income, net of tax
|
|
|
|
1,477
|
|
|
259
|
|
|
470
|
|
Wells Fargo comprehensive income
|
|
|
|
6,939
|
|
|
6,063
|
|
|
14
|
|
Comprehensive income from noncontrolling interests
|
|
|
|
24
|
|
|
381
|
|
|
(94
|
)
|
Total comprehensive income
|
|
|
$
|
6,963
|
|
|
6,444
|
|
|
8
|
|
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)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Balance, beginning of period
|
|
|
$
|
193,891
|
|
|
194,043
|
|
|
190,676
|
|
|
189,964
|
|
|
185,262
|
|
Cumulative effect from change in consolidation accounting (1)
|
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wells Fargo net income
|
|
|
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
|
5,719
|
|
|
5,804
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
1,477
|
|
|
(2,092
|
)
|
|
321
|
|
|
(1,709
|
)
|
|
259
|
|
Noncontrolling interests
|
|
|
|
(5
|
)
|
|
(100
|
)
|
|
(123
|
)
|
|
(51
|
)
|
|
301
|
|
Common stock issued
|
|
|
|
1,079
|
|
|
310
|
|
|
505
|
|
|
502
|
|
|
1,327
|
|
Common stock repurchased (2)
|
|
|
|
(2,029
|
)
|
|
(1,974
|
)
|
|
(2,137
|
)
|
|
(1,994
|
)
|
|
(2,592
|
)
|
Preferred stock released by ESOP
|
|
|
|
313
|
|
|
210
|
|
|
225
|
|
|
349
|
|
|
41
|
|
Common stock warrants repurchased/exercised
|
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
(24
|
)
|
|
(8
|
)
|
Preferred stock issued
|
|
|
|
975
|
|
|
—
|
|
|
975
|
|
|
—
|
|
|
1,997
|
|
Common stock dividends
|
|
|
|
(1,904
|
)
|
|
(1,917
|
)
|
|
(1,926
|
)
|
|
(1,932
|
)
|
|
(1,805
|
)
|
Preferred stock dividends
|
|
|
|
(378
|
)
|
|
(371
|
)
|
|
(356
|
)
|
|
(355
|
)
|
|
(344
|
)
|
Tax benefit from stock incentive compensation
|
|
|
|
149
|
|
|
22
|
|
|
22
|
|
|
55
|
|
|
354
|
|
Stock incentive compensation expense
|
|
|
|
369
|
|
|
204
|
|
|
98
|
|
|
166
|
|
|
376
|
|
Net change in deferred compensation and related plans
|
|
|
|
(1,016
|
)
|
|
(19
|
)
|
|
(16
|
)
|
|
(14
|
)
|
|
(1,008
|
)
|
Balance, end of period
|
|
|
$
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
|
190,676
|
|
|
189,964
|
|
(1) Effective January 1, 2016, we adopted changes in consolidation
accounting pursuant to Accounting Standards Update 2015-02 (Amendments
to the Consolidation Analysis). Accordingly, we recorded a
$121 million net increase to beginning noncontrolling interests as
a cumulative-effect adjustment.
|
|
(2) For the quarters ended December 31, June 30, and March 31,
2015, includes $500 million, $750 million and $750 million related
to private forward repurchase transactions that settled in
subsequent quarters for 9.2 million, 13.6 million and 14.0 million
shares of common stock, respectively.
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Quarter ended March 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
(in millions)
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
$
|
284,697
|
|
|
0.49
|
%
|
|
$
|
344
|
|
|
275,731
|
|
|
0.28
|
%
|
|
$
|
190
|
|
Trading assets
|
|
|
80,464
|
|
|
3.01
|
|
|
605
|
|
|
62,977
|
|
|
2.88
|
|
|
453
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
34,474
|
|
|
1.59
|
|
|
136
|
|
|
26,163
|
|
|
1.55
|
|
|
100
|
|
Securities of U.S. states and political subdivisions
|
|
|
50,512
|
|
|
4.24
|
|
|
535
|
|
|
44,948
|
|
|
4.20
|
|
|
472
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
96,423
|
|
|
2.80
|
|
|
675
|
|
|
102,193
|
|
|
2.76
|
|
|
706
|
|
Residential and commercial
|
|
|
20,827
|
|
|
5.20
|
|
|
271
|
|
|
23,938
|
|
|
5.71
|
|
|
342
|
|
Total mortgage-backed securities
|
|
|
117,250
|
|
|
3.23
|
|
|
946
|
|
|
126,131
|
|
|
3.32
|
|
|
1,048
|
|
Other debt and equity securities
|
|
|
53,558
|
|
|
3.21
|
|
|
429
|
|
|
47,051
|
|
|
3.43
|
|
|
400
|
|
Total available-for-sale securities
|
|
|
255,794
|
|
|
3.20
|
|
|
2,046
|
|
|
244,293
|
|
|
3.32
|
|
|
2,020
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,664
|
|
|
2.20
|
|
|
244
|
|
|
42,869
|
|
|
2.21
|
|
|
234
|
|
Securities of U.S. states and political subdivisions
|
|
|
2,156
|
|
|
5.41
|
|
|
29
|
|
|
1,948
|
|
|
5.16
|
|
|
25
|
|
Federal agency mortgage-backed securities
|
|
|
28,114
|
|
|
2.49
|
|
|
175
|
|
|
11,318
|
|
|
1.87
|
|
|
53
|
|
Other debt securities
|
|
|
4,598
|
|
|
1.92
|
|
|
22
|
|
|
6,792
|
|
|
1.72
|
|
|
29
|
|
Total held-to-maturity securities
|
|
|
79,532
|
|
|
2.37
|
|
|
470
|
|
|
62,927
|
|
|
2.19
|
|
|
341
|
|
Total investment securities
|
|
|
335,326
|
|
|
3.01
|
|
|
2,516
|
|
|
307,220
|
|
|
3.08
|
|
|
2,361
|
|
Mortgages held for sale (4)
|
|
|
17,870
|
|
|
3.59
|
|
|
161
|
|
|
19,583
|
|
|
3.61
|
|
|
177
|
|
Loans held for sale (4)
|
|
|
282
|
|
|
3.23
|
|
|
2
|
|
|
700
|
|
|
2.67
|
|
|
5
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
257,727
|
|
|
3.39
|
|
|
2,177
|
|
|
227,682
|
|
|
3.28
|
|
|
1,844
|
|
Commercial and industrial - Non U.S.
|
|
|
49,508
|
|
|
2.10
|
|
|
258
|
|
|
45,062
|
|
|
1.88
|
|
|
209
|
|
Real estate mortgage
|
|
|
122,739
|
|
|
3.41
|
|
|
1,040
|
|
|
111,497
|
|
|
3.57
|
|
|
981
|
|
Real estate construction
|
|
|
22,603
|
|
|
3.61
|
|
|
203
|
|
|
19,492
|
|
|
3.52
|
|
|
169
|
|
Lease financing
|
|
|
15,047
|
|
|
4.74
|
|
|
178
|
|
|
12,319
|
|
|
4.95
|
|
|
152
|
|
Total commercial
|
|
|
467,624
|
|
|
3.31
|
|
|
3,856
|
|
|
416,052
|
|
|
3.26
|
|
|
3,355
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
274,722
|
|
|
4.05
|
|
|
2,782
|
|
|
265,823
|
|
|
4.13
|
|
|
2,741
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
52,236
|
|
|
4.39
|
|
|
571
|
|
|
58,880
|
|
|
4.27
|
|
|
621
|
|
Credit card
|
|
|
33,366
|
|
|
11.61
|
|
|
963
|
|
|
30,380
|
|
|
11.78
|
|
|
883
|
|
Automobile
|
|
|
60,114
|
|
|
5.67
|
|
|
848
|
|
|
56,004
|
|
|
5.95
|
|
|
821
|
|
Other revolving credit and installment
|
|
|
39,158
|
|
|
5.99
|
|
|
584
|
|
|
36,122
|
|
|
6.01
|
|
|
535
|
|
Total consumer
|
|
|
459,596
|
|
|
5.02
|
|
|
5,748
|
|
|
447,209
|
|
|
5.05
|
|
|
5,601
|
|
Total loans (4)
|
|
|
927,220
|
|
|
4.16
|
|
|
9,604
|
|
|
863,261
|
|
|
4.19
|
|
|
8,956
|
|
Other
|
|
|
5,808
|
|
|
2.06
|
|
|
30
|
|
|
4,730
|
|
|
5.41
|
|
|
63
|
|
Total earning assets
|
|
|
$
|
1,651,667
|
|
|
3.22
|
%
|
|
$
|
13,262
|
|
|
1,534,202
|
|
|
3.21
|
%
|
|
$
|
12,205
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
38,711
|
|
|
0.12
|
%
|
|
$
|
11
|
|
|
39,155
|
|
|
0.05
|
%
|
|
$
|
5
|
|
Market rate and other savings
|
|
|
651,551
|
|
|
0.07
|
|
|
107
|
|
|
613,413
|
|
|
0.06
|
|
|
97
|
|
Savings certificates
|
|
|
27,880
|
|
|
0.45
|
|
|
31
|
|
|
34,608
|
|
|
0.75
|
|
|
64
|
|
Other time deposits
|
|
|
58,206
|
|
|
0.74
|
|
|
107
|
|
|
56,549
|
|
|
0.39
|
|
|
56
|
|
Deposits in foreign offices
|
|
|
97,682
|
|
|
0.21
|
|
|
51
|
|
|
105,537
|
|
|
0.14
|
|
|
36
|
|
Total interest-bearing deposits
|
|
|
874,030
|
|
|
0.14
|
|
|
307
|
|
|
849,262
|
|
|
0.12
|
|
|
258
|
|
Short-term borrowings
|
|
|
107,857
|
|
|
0.25
|
|
|
67
|
|
|
71,712
|
|
|
0.11
|
|
|
18
|
|
Long-term debt
|
|
|
216,883
|
|
|
1.56
|
|
|
842
|
|
|
183,763
|
|
|
1.32
|
|
|
604
|
|
Other liabilities
|
|
|
16,492
|
|
|
2.14
|
|
|
89
|
|
|
16,894
|
|
|
2.30
|
|
|
97
|
|
Total interest-bearing liabilities
|
|
|
1,215,262
|
|
|
0.43
|
|
|
1,305
|
|
|
1,121,631
|
|
|
0.35
|
|
|
977
|
|
Portion of noninterest-bearing funding sources
|
|
|
436,405
|
|
|
|
|
|
|
|
|
412,571
|
|
|
|
|
|
|
|
Total funding sources
|
|
|
$
|
1,651,667
|
|
|
0.32
|
|
|
1,305
|
|
|
1,534,202
|
|
|
0.26
|
|
|
977
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
2.90
|
%
|
|
$
|
11,957
|
|
|
|
|
|
2.95
|
%
|
|
$
|
11,228
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
17,995
|
|
|
|
|
|
|
|
|
17,059
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,069
|
|
|
|
|
|
|
|
|
25,705
|
|
|
|
|
|
|
|
Other
|
|
|
124,144
|
|
|
|
|
|
|
|
|
130,832
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
168,208
|
|
|
|
|
|
|
|
|
173,596
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
345,400
|
|
|
|
|
|
|
|
|
325,531
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
62,627
|
|
|
|
|
|
|
|
|
71,988
|
|
|
|
|
|
|
|
Total equity
|
|
|
196,586
|
|
|
|
|
|
|
|
|
188,648
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(436,405
|
)
|
|
|
|
|
|
|
|
(412,571
|
)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
168,208
|
|
|
|
|
|
|
|
|
173,596
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,819,875
|
|
|
|
|
|
|
|
|
1,707,798
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% and 3.25% for the quarters
ended March 31, 2016 and 2015, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 0.62% and
0.26% 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.
|
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(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(5) Includes taxable-equivalent adjustments of $290 million and
$242 million for the quarters ended March 31, 2016 and 2015,
respectively, primarily related to tax-exempt income on certain
loans and securities. The federal statutory tax rate was 35% for
the periods presented.
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|
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|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31, 2016
|
|
|
Dec 31, 2015
|
|
|
Sep 30, 2015
|
|
|
Jun 30, 2015
|
|
|
Mar 31, 2015
|
|
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
($ in billions)
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
$
|
284.7
|
|
|
0.49
|
%
|
|
$
|
274.6
|
|
|
0.28
|
%
|
|
$
|
250.1
|
|
|
0.26
|
%
|
|
$
|
267.1
|
|
|
0.28
|
%
|
|
$
|
275.7
|
|
|
0.28
|
%
|
Trading assets
|
|
|
80.5
|
|
|
3.01
|
|
|
68.8
|
|
|
3.33
|
|
|
67.2
|
|
|
2.93
|
|
|
67.6
|
|
|
2.91
|
|
|
63.0
|
|
|
2.88
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
34.4
|
|
|
1.59
|
|
|
34.6
|
|
|
1.58
|
|
|
35.7
|
|
|
1.59
|
|
|
31.7
|
|
|
1.58
|
|
|
26.2
|
|
|
1.55
|
|
Securities of U.S. states and political subdivisions
|
|
|
50.5
|
|
|
4.24
|
|
|
49.3
|
|
|
4.37
|
|
|
48.2
|
|
|
4.22
|
|
|
47.1
|
|
|
4.13
|
|
|
44.9
|
|
|
4.20
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
96.5
|
|
|
2.80
|
|
|
102.3
|
|
|
2.79
|
|
|
98.4
|
|
|
2.70
|
|
|
98.0
|
|
|
2.65
|
|
|
102.2
|
|
|
2.76
|
|
Residential and commercial
|
|
|
20.8
|
|
|
5.20
|
|
|
21.5
|
|
|
5.51
|
|
|
21.9
|
|
|
5.84
|
|
|
22.7
|
|
|
5.84
|
|
|
23.9
|
|
|
5.71
|
|
Total mortgage-backed securities
|
|
|
117.3
|
|
|
3.23
|
|
|
123.8
|
|
|
3.26
|
|
|
120.3
|
|
|
3.27
|
|
|
120.7
|
|
|
3.25
|
|
|
126.1
|
|
|
3.32
|
|
Other debt and equity securities
|
|
|
53.6
|
|
|
3.21
|
|
|
52.7
|
|
|
3.35
|
|
|
50.4
|
|
|
3.40
|
|
|
48.8
|
|
|
3.51
|
|
|
47.1
|
|
|
3.43
|
|
Total available-for-sale securities
|
|
|
255.8
|
|
|
3.20
|
|
|
260.4
|
|
|
3.27
|
|
|
254.6
|
|
|
3.24
|
|
|
248.3
|
|
|
3.25
|
|
|
244.3
|
|
|
3.32
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44.7
|
|
|
2.20
|
|
|
44.7
|
|
|
2.18
|
|
|
44.6
|
|
|
2.18
|
|
|
44.5
|
|
|
2.19
|
|
|
42.9
|
|
|
2.21
|
|
Securities of U.S. states and political subdivisions
|
|
|
2.1
|
|
|
5.41
|
|
|
2.1
|
|
|
6.07
|
|
|
2.2
|
|
|
5.17
|
|
|
2.1
|
|
|
5.17
|
|
|
1.9
|
|
|
5.16
|
|
Federal agency mortgage-backed securities
|
|
|
28.1
|
|
|
2.49
|
|
|
28.2
|
|
|
2.42
|
|
|
27.1
|
|
|
2.38
|
|
|
21.0
|
|
|
2.00
|
|
|
11.3
|
|
|
1.87
|
|
Other debt securities
|
|
|
4.6
|
|
|
1.92
|
|
|
4.9
|
|
|
1.77
|
|
|
5.4
|
|
|
1.75
|
|
|
6.3
|
|
|
1.70
|
|
|
6.8
|
|
|
1.72
|
|
Total held-to-maturity securities
|
|
|
79.5
|
|
|
2.37
|
|
|
79.9
|
|
|
2.35
|
|
|
79.3
|
|
|
2.30
|
|
|
73.9
|
|
|
2.18
|
|
|
62.9
|
|
|
2.19
|
|
Total investment securities
|
|
|
335.3
|
|
|
3.01
|
|
|
340.3
|
|
|
3.05
|
|
|
333.9
|
|
|
3.02
|
|
|
322.2
|
|
|
3.01
|
|
|
307.2
|
|
|
3.08
|
|
Mortgages held for sale
|
|
|
17.9
|
|
|
3.59
|
|
|
19.2
|
|
|
3.66
|
|
|
24.2
|
|
|
3.69
|
|
|
23.5
|
|
|
3.57
|
|
|
19.6
|
|
|
3.61
|
|
Loans held for sale
|
|
|
0.3
|
|
|
3.23
|
|
|
0.4
|
|
|
4.96
|
|
|
0.6
|
|
|
2.57
|
|
|
0.7
|
|
|
3.51
|
|
|
0.7
|
|
|
2.67
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
257.7
|
|
|
3.39
|
|
|
250.5
|
|
|
3.25
|
|
|
241.4
|
|
|
3.30
|
|
|
231.5
|
|
|
3.36
|
|
|
227.7
|
|
|
3.28
|
|
Commercial and industrial - Non U.S.
|
|
|
49.5
|
|
|
2.10
|
|
|
48.0
|
|
|
1.97
|
|
|
45.9
|
|
|
1.83
|
|
|
45.1
|
|
|
1.93
|
|
|
45.1
|
|
|
1.88
|
|
Real estate mortgage
|
|
|
122.7
|
|
|
3.41
|
|
|
121.8
|
|
|
3.30
|
|
|
121.0
|
|
|
3.31
|
|
|
113.1
|
|
|
3.48
|
|
|
111.5
|
|
|
3.57
|
|
Real estate construction
|
|
|
22.6
|
|
|
3.61
|
|
|
22.0
|
|
|
3.27
|
|
|
21.6
|
|
|
3.39
|
|
|
20.8
|
|
|
4.12
|
|
|
19.5
|
|
|
3.52
|
|
Lease financing
|
|
|
15.1
|
|
|
4.74
|
|
|
12.2
|
|
|
4.48
|
|
|
12.3
|
|
|
4.18
|
|
|
12.4
|
|
|
5.16
|
|
|
12.3
|
|
|
4.95
|
|
Total commercial
|
|
|
467.6
|
|
|
3.31
|
|
|
454.5
|
|
|
3.16
|
|
|
442.2
|
|
|
3.18
|
|
|
422.9
|
|
|
3.33
|
|
|
416.1
|
|
|
3.26
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
274.7
|
|
|
4.05
|
|
|
272.9
|
|
|
4.04
|
|
|
269.4
|
|
|
4.10
|
|
|
266.0
|
|
|
4.12
|
|
|
265.8
|
|
|
4.13
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
52.2
|
|
|
4.39
|
|
|
53.8
|
|
|
4.28
|
|
|
55.3
|
|
|
4.22
|
|
|
57.0
|
|
|
4.23
|
|
|
58.9
|
|
|
4.27
|
|
Credit card
|
|
|
33.4
|
|
|
11.61
|
|
|
32.8
|
|
|
11.61
|
|
|
31.7
|
|
|
11.73
|
|
|
30.4
|
|
|
11.69
|
|
|
30.4
|
|
|
11.78
|
|
Automobile
|
|
|
60.1
|
|
|
5.67
|
|
|
59.5
|
|
|
5.74
|
|
|
58.5
|
|
|
5.80
|
|
|
57.0
|
|
|
5.88
|
|
|
56.0
|
|
|
5.95
|
|
Other revolving credit and installment
|
|
|
39.2
|
|
|
5.99
|
|
|
38.8
|
|
|
5.83
|
|
|
38.0
|
|
|
5.84
|
|
|
37.1
|
|
|
5.88
|
|
|
36.1
|
|
|
6.01
|
|
Total consumer
|
|
|
459.6
|
|
|
5.02
|
|
|
457.8
|
|
|
4.99
|
|
|
452.9
|
|
|
5.01
|
|
|
447.5
|
|
|
5.02
|
|
|
447.2
|
|
|
5.05
|
|
Total loans
|
|
|
927.2
|
|
|
4.16
|
|
|
912.3
|
|
|
4.08
|
|
|
895.1
|
|
|
4.11
|
|
|
870.4
|
|
|
4.20
|
|
|
863.3
|
|
|
4.19
|
|
Other
|
|
|
5.8
|
|
|
2.06
|
|
|
5.1
|
|
|
4.82
|
|
|
5.0
|
|
|
5.11
|
|
|
4.8
|
|
|
5.14
|
|
|
4.7
|
|
|
5.41
|
|
Total earning assets
|
|
|
$
|
1,651.7
|
|
|
3.22
|
%
|
|
$
|
1,620.7
|
|
|
3.18
|
%
|
|
$
|
1,576.1
|
|
|
3.21
|
%
|
|
$
|
1,556.3
|
|
|
3.22
|
%
|
|
$
|
1,534.2
|
|
|
3.21
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
38.7
|
|
|
0.12
|
%
|
|
$
|
39.1
|
|
|
0.05
|
%
|
|
$
|
37.8
|
|
|
0.05
|
%
|
|
$
|
38.6
|
|
|
0.05
|
%
|
|
$
|
39.2
|
|
|
0.05
|
%
|
Market rate and other savings
|
|
|
651.5
|
|
|
0.07
|
|
|
640.5
|
|
|
0.06
|
|
|
628.1
|
|
|
0.06
|
|
|
619.8
|
|
|
0.06
|
|
|
613.4
|
|
|
0.06
|
|
Savings certificates
|
|
|
27.9
|
|
|
0.45
|
|
|
29.6
|
|
|
0.54
|
|
|
30.9
|
|
|
0.58
|
|
|
32.5
|
|
|
0.63
|
|
|
34.6
|
|
|
0.75
|
|
Other time deposits
|
|
|
58.2
|
|
|
0.74
|
|
|
49.8
|
|
|
0.52
|
|
|
48.7
|
|
|
0.46
|
|
|
52.2
|
|
|
0.42
|
|
|
56.5
|
|
|
0.39
|
|
Deposits in foreign offices
|
|
|
97.7
|
|
|
0.21
|
|
|
107.1
|
|
|
0.14
|
|
|
111.5
|
|
|
0.13
|
|
|
104.3
|
|
|
0.13
|
|
|
105.5
|
|
|
0.14
|
|
Total interest-bearing deposits
|
|
|
874.0
|
|
|
0.14
|
|
|
866.1
|
|
|
0.11
|
|
|
857.0
|
|
|
0.11
|
|
|
847.4
|
|
|
0.11
|
|
|
849.2
|
|
|
0.12
|
|
Short-term borrowings
|
|
|
107.9
|
|
|
0.25
|
|
|
102.9
|
|
|
0.05
|
|
|
90.4
|
|
|
0.06
|
|
|
84.5
|
|
|
0.09
|
|
|
71.7
|
|
|
0.11
|
|
Long-term debt
|
|
|
216.9
|
|
|
1.56
|
|
|
190.9
|
|
|
1.49
|
|
|
180.6
|
|
|
1.45
|
|
|
185.1
|
|
|
1.34
|
|
|
183.8
|
|
|
1.32
|
|
Other liabilities
|
|
|
16.5
|
|
|
2.14
|
|
|
16.5
|
|
|
2.14
|
|
|
16.4
|
|
|
2.13
|
|
|
16.4
|
|
|
2.03
|
|
|
16.9
|
|
|
2.30
|
|
Total interest-bearing liabilities
|
|
|
1,215.3
|
|
|
0.43
|
|
|
1,176.4
|
|
|
0.36
|
|
|
1,144.4
|
|
|
0.34
|
|
|
1,133.4
|
|
|
0.34
|
|
|
1,121.6
|
|
|
0.35
|
|
Portion of noninterest-bearing funding sources
|
|
|
436.4
|
|
|
—
|
|
|
444.3
|
|
|
—
|
|
|
431.7
|
|
|
—
|
|
|
422.9
|
|
|
—
|
|
|
412.6
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,651.7
|
|
|
0.32
|
|
|
$
|
1,620.7
|
|
|
0.26
|
|
|
$
|
1,576.1
|
|
|
0.25
|
|
|
$
|
1,556.3
|
|
|
0.25
|
|
|
$
|
1,534.2
|
|
|
0.26
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
2.90
|
%
|
|
|
|
|
2.92
|
%
|
|
|
|
|
2.96
|
%
|
|
|
|
|
2.97
|
%
|
|
|
|
|
2.95
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18.0
|
|
|
|
|
|
17.8
|
|
|
|
|
|
17.0
|
|
|
|
|
|
17.5
|
|
|
|
|
|
17.1
|
|
|
|
|
Goodwill
|
|
|
26.1
|
|
|
|
|
|
25.6
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
Other
|
|
|
124.1
|
|
|
|
|
|
123.2
|
|
|
|
|
|
127.6
|
|
|
|
|
|
129.8
|
|
|
|
|
|
130.8
|
|
|
|
|
Total noninterest-earnings assets
|
|
|
$
|
168.2
|
|
|
|
|
|
166.6
|
|
|
|
|
|
170.3
|
|
|
|
|
|
173.0
|
|
|
|
|
|
173.6
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
345.4
|
|
|
|
|
|
350.7
|
|
|
|
|
|
341.9
|
|
|
|
|
|
337.9
|
|
|
|
|
|
325.6
|
|
|
|
|
Other liabilities
|
|
|
62.6
|
|
|
|
|
|
65.2
|
|
|
|
|
|
67.9
|
|
|
|
|
|
67.6
|
|
|
|
|
|
72.0
|
|
|
|
|
Total equity
|
|
|
196.6
|
|
|
|
|
|
195.0
|
|
|
|
|
|
192.2
|
|
|
|
|
|
190.4
|
|
|
|
|
|
188.6
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(436.4
|
)
|
|
|
|
|
(444.3
|
)
|
|
|
|
|
(431.7
|
)
|
|
|
|
|
(422.9
|
)
|
|
|
|
|
(412.6
|
)
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
168.2
|
|
|
|
|
|
166.6
|
|
|
|
|
|
170.3
|
|
|
|
|
|
173.0
|
|
|
|
|
|
173.6
|
|
|
|
|
Total assets
|
|
|
$
|
1,819.9
|
|
|
|
|
|
1,787.3
|
|
|
|
|
|
1,746.4
|
|
|
|
|
|
1,729.3
|
|
|
|
|
|
1,707.8
|
|
|
|
|
(1) Our average prime rate was 3.50% for the quarter ended March
31, 2016, 3.29% for the quarter ended December 31,2015, and 3.25%
for the quarters ended September 30, June 30 and March 31, 2015.
The average three-month London Interbank Offered Rate (LIBOR) was
0.62%, 0.41%, 0.31%, 0.28% and 0.26% 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 Mar 31,
|
|
|
%
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
Service charges on deposit accounts
|
|
|
$
|
1,309
|
|
|
1,215
|
|
|
8
|
%
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,239
|
|
|
2,380
|
|
|
(6
|
)
|
Trust and investment management
|
|
|
|
815
|
|
|
852
|
|
|
(4
|
)
|
Investment banking
|
|
|
|
331
|
|
|
445
|
|
|
(26
|
)
|
Total trust and investment fees
|
|
|
|
3,385
|
|
|
3,677
|
|
|
(8
|
)
|
Card fees
|
|
|
|
941
|
|
|
871
|
|
|
8
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
313
|
|
|
309
|
|
|
1
|
|
Cash network fees
|
|
|
|
131
|
|
|
125
|
|
|
5
|
|
Commercial real estate brokerage commissions
|
|
|
|
117
|
|
|
129
|
|
|
(9
|
)
|
Letters of credit fees
|
|
|
|
78
|
|
|
88
|
|
|
(11
|
)
|
Wire transfer and other remittance fees
|
|
|
|
92
|
|
|
87
|
|
|
6
|
|
All other fees (1)(2)(3)
|
|
|
|
202
|
|
|
340
|
|
|
(41
|
)
|
Total other fees
|
|
|
|
933
|
|
|
1,078
|
|
|
(13
|
)
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
850
|
|
|
523
|
|
|
63
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
748
|
|
|
1,024
|
|
|
(27
|
)
|
Total mortgage banking
|
|
|
|
1,598
|
|
|
1,547
|
|
|
3
|
|
Insurance
|
|
|
|
427
|
|
|
430
|
|
|
(1
|
)
|
Net gains from trading activities
|
|
|
|
200
|
|
|
408
|
|
|
(51
|
)
|
Net gains on debt securities
|
|
|
|
244
|
|
|
278
|
|
|
(12
|
)
|
Net gains from equity investments
|
|
|
|
244
|
|
|
370
|
|
|
(34
|
)
|
Lease income
|
|
|
|
373
|
|
|
132
|
|
|
183
|
|
Life insurance investment income
|
|
|
|
154
|
|
|
145
|
|
|
6
|
|
All other (3)
|
|
|
|
720
|
|
|
141
|
|
|
411
|
|
Total
|
|
|
$
|
10,528
|
|
|
10,292
|
|
|
2
|
|
(1) Wire transfer and other remittance fees, reflected in all
other fees prior to 2016, have been separately disclosed.
|
|
(2) All other fees have been revised to include merchant processing
fees for all periods presented.
|
|
(3) Effective fourth quarter 2015, the Company's proportionate
share of its merchant services joint venture earnings is included
in all other income.
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
Quarter ended Mar 31,
|
|
%
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
Salaries
|
|
|
$
|
4,036
|
|
|
3,851
|
|
|
5
|
%
|
Commission and incentive compensation
|
|
|
|
2,645
|
|
|
2,685
|
|
|
(1
|
)
|
Employee benefits
|
|
|
|
1,526
|
|
|
1,477
|
|
|
3
|
|
Equipment
|
|
|
|
528
|
|
|
494
|
|
|
7
|
|
Net occupancy
|
|
|
|
711
|
|
|
723
|
|
|
(2
|
)
|
Core deposit and other intangibles
|
|
|
|
293
|
|
|
312
|
|
|
(6
|
)
|
FDIC and other deposit assessments
|
|
|
|
250
|
|
|
248
|
|
|
1
|
|
Outside professional services
|
|
|
|
583
|
|
|
548
|
|
|
6
|
|
Operating losses
|
|
|
|
454
|
|
|
295
|
|
|
54
|
|
Outside data processing
|
|
|
|
208
|
|
|
253
|
|
|
(18
|
)
|
Contract services
|
|
|
|
282
|
|
|
225
|
|
|
25
|
|
Postage, stationery and supplies
|
|
|
|
163
|
|
|
171
|
|
|
(5
|
)
|
Travel and entertainment
|
|
|
|
172
|
|
|
158
|
|
|
9
|
|
Advertising and promotion
|
|
|
|
134
|
|
|
118
|
|
|
14
|
|
Insurance
|
|
|
|
111
|
|
|
140
|
|
|
(21
|
)
|
Telecommunications
|
|
|
|
92
|
|
|
111
|
|
|
(17
|
)
|
Foreclosed assets
|
|
|
|
78
|
|
|
135
|
|
|
(42
|
)
|
Operating leases
|
|
|
|
235
|
|
|
62
|
|
|
279
|
|
All other
|
|
|
|
527
|
|
|
501
|
|
|
5
|
|
Total
|
|
|
$
|
13,028
|
|
|
12,507
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Service charges on deposit accounts
|
|
|
$
|
1,309
|
|
|
1,329
|
|
|
1,335
|
|
|
1,289
|
|
|
1,215
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,239
|
|
|
2,288
|
|
|
2,368
|
|
|
2,399
|
|
|
2,380
|
|
Trust and investment management
|
|
|
|
815
|
|
|
838
|
|
|
843
|
|
|
861
|
|
|
852
|
|
Investment banking
|
|
|
|
331
|
|
|
385
|
|
|
359
|
|
|
450
|
|
|
445
|
|
Total trust and investment fees
|
|
|
|
3,385
|
|
|
3,511
|
|
|
3,570
|
|
|
3,710
|
|
|
3,677
|
|
Card fees
|
|
|
|
941
|
|
|
966
|
|
|
953
|
|
|
930
|
|
|
871
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
313
|
|
|
308
|
|
|
307
|
|
|
304
|
|
|
309
|
|
Cash network fees
|
|
|
|
131
|
|
|
129
|
|
|
136
|
|
|
132
|
|
|
125
|
|
Commercial real estate brokerage commissions
|
|
|
|
117
|
|
|
224
|
|
|
124
|
|
|
141
|
|
|
129
|
|
Letters of credit fees
|
|
|
|
78
|
|
|
86
|
|
|
89
|
|
|
90
|
|
|
88
|
|
Wire transfer and other remittance fees
|
|
|
|
92
|
|
|
95
|
|
|
95
|
|
|
93
|
|
|
87
|
|
All other fees (1)(2)(3)
|
|
|
|
202
|
|
|
198
|
|
|
348
|
|
|
347
|
|
|
340
|
|
Total other fees
|
|
|
|
933
|
|
|
1,040
|
|
|
1,099
|
|
|
1,107
|
|
|
1,078
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
850
|
|
|
730
|
|
|
674
|
|
|
514
|
|
|
523
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
748
|
|
|
930
|
|
|
915
|
|
|
1,191
|
|
|
1,024
|
|
Total mortgage banking
|
|
|
|
1,598
|
|
|
1,660
|
|
|
1,589
|
|
|
1,705
|
|
|
1,547
|
|
Insurance
|
|
|
|
427
|
|
|
427
|
|
|
376
|
|
|
461
|
|
|
430
|
|
Net gains (losses) from trading activities
|
|
|
|
200
|
|
|
99
|
|
|
(26
|
)
|
|
133
|
|
|
408
|
|
Net gains on debt securities
|
|
|
|
244
|
|
|
346
|
|
|
147
|
|
|
181
|
|
|
278
|
|
Net gains from equity investments
|
|
|
|
244
|
|
|
423
|
|
|
920
|
|
|
517
|
|
|
370
|
|
Lease income
|
|
|
|
373
|
|
|
145
|
|
|
189
|
|
|
155
|
|
|
132
|
|
Life insurance investment income
|
|
|
|
154
|
|
|
139
|
|
|
150
|
|
|
145
|
|
|
145
|
|
All other (3)
|
|
|
|
720
|
|
|
(87
|
)
|
|
116
|
|
|
(285
|
)
|
|
141
|
|
Total
|
|
|
$
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
|
10,048
|
|
|
10,292
|
|
(1) Wire transfer and other remittance fees, reflected in all
other fees prior to 2016, have been separately disclosed.
|
|
(2) All other fees have been revised to include merchant processing
fees for all periods presented.
|
|
(3) Effective fourth quarter 2015, the Company's proportionate
share of its merchant services joint venture earnings is included
in all other income.
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Salaries
|
|
|
$
|
4,036
|
|
|
4,061
|
|
|
4,035
|
|
|
3,936
|
|
|
3,851
|
|
Commission and incentive compensation
|
|
|
|
2,645
|
|
|
2,457
|
|
|
2,604
|
|
|
2,606
|
|
|
2,685
|
|
Employee benefits
|
|
|
|
1,526
|
|
|
1,042
|
|
|
821
|
|
|
1,106
|
|
|
1,477
|
|
Equipment
|
|
|
|
528
|
|
|
640
|
|
|
459
|
|
|
470
|
|
|
494
|
|
Net occupancy
|
|
|
|
711
|
|
|
725
|
|
|
728
|
|
|
710
|
|
|
723
|
|
Core deposit and other intangibles
|
|
|
|
293
|
|
|
311
|
|
|
311
|
|
|
312
|
|
|
312
|
|
FDIC and other deposit assessments
|
|
|
|
250
|
|
|
258
|
|
|
245
|
|
|
222
|
|
|
248
|
|
Outside professional services
|
|
|
|
583
|
|
|
827
|
|
|
663
|
|
|
627
|
|
|
548
|
|
Operating losses
|
|
|
|
454
|
|
|
532
|
|
|
523
|
|
|
521
|
|
|
295
|
|
Outside data processing
|
|
|
|
208
|
|
|
205
|
|
|
258
|
|
|
269
|
|
|
253
|
|
Contract services
|
|
|
|
282
|
|
|
266
|
|
|
249
|
|
|
238
|
|
|
225
|
|
Postage, stationery and supplies
|
|
|
|
163
|
|
|
177
|
|
|
174
|
|
|
180
|
|
|
171
|
|
Travel and entertainment
|
|
|
|
172
|
|
|
196
|
|
|
166
|
|
|
172
|
|
|
158
|
|
Advertising and promotion
|
|
|
|
134
|
|
|
184
|
|
|
135
|
|
|
169
|
|
|
118
|
|
Insurance
|
|
|
|
111
|
|
|
57
|
|
|
95
|
|
|
156
|
|
|
140
|
|
Telecommunications
|
|
|
|
92
|
|
|
106
|
|
|
109
|
|
|
113
|
|
|
111
|
|
Foreclosed assets
|
|
|
|
78
|
|
|
20
|
|
|
109
|
|
|
117
|
|
|
135
|
|
Operating leases
|
|
|
|
235
|
|
|
73
|
|
|
79
|
|
|
64
|
|
|
62
|
|
All other
|
|
|
|
527
|
|
|
462
|
|
|
636
|
|
|
481
|
|
|
501
|
|
Total
|
|
|
$
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
|
12,469
|
|
|
12,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
%
|
|
(in millions, except shares)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,084
|
|
|
19,111
|
|
|
—
|
%
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
300,547
|
|
|
270,130
|
|
|
11
|
|
Trading assets
|
|
|
|
73,158
|
|
|
77,202
|
|
|
(5
|
)
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
255,551
|
|
|
267,358
|
|
|
(4
|
)
|
Held-to-maturity, at cost
|
|
|
|
79,348
|
|
|
80,197
|
|
|
(1
|
)
|
Mortgages held for sale
|
|
|
|
18,041
|
|
|
19,603
|
|
|
(8
|
)
|
Loans held for sale
|
|
|
|
280
|
|
|
279
|
|
|
—
|
|
Loans
|
|
|
|
947,258
|
|
|
916,559
|
|
|
3
|
|
Allowance for loan losses
|
|
|
|
(11,621
|
)
|
|
(11,545
|
)
|
|
1
|
|
Net loans
|
|
|
|
935,637
|
|
|
905,014
|
|
|
3
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
11,333
|
|
|
12,415
|
|
|
(9
|
)
|
Amortized
|
|
|
|
1,359
|
|
|
1,308
|
|
|
4
|
|
Premises and equipment, net
|
|
|
|
8,349
|
|
|
8,704
|
|
|
(4
|
)
|
Goodwill
|
|
|
|
27,003
|
|
|
25,529
|
|
|
6
|
|
Other assets
|
|
|
|
119,492
|
|
|
100,782
|
|
|
19
|
|
Total assets
|
|
|
$
|
1,849,182
|
|
|
1,787,632
|
|
|
3
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
348,888
|
|
|
351,579
|
|
|
(1
|
)
|
Interest-bearing deposits
|
|
|
|
892,602
|
|
|
871,733
|
|
|
2
|
|
Total deposits
|
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1
|
|
Short-term borrowings
|
|
|
|
107,703
|
|
|
97,528
|
|
|
10
|
|
Accrued expenses and other liabilities
|
|
|
|
73,597
|
|
|
73,365
|
|
|
—
|
|
Long-term debt
|
|
|
|
227,888
|
|
|
199,536
|
|
|
14
|
|
Total liabilities
|
|
|
|
1,650,678
|
|
|
1,593,741
|
|
|
4
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
24,051
|
|
|
22,214
|
|
|
8
|
|
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
|
|
|
|
60,602
|
|
|
60,714
|
|
|
—
|
|
Retained earnings
|
|
|
|
123,891
|
|
|
120,866
|
|
|
3
|
|
Cumulative other comprehensive income
|
|
|
|
1,774
|
|
|
297
|
|
|
497
|
|
Treasury stock – 405,908,584 shares and 389,682,664 shares
|
|
|
|
(19,687
|
)
|
|
(18,867
|
)
|
|
4
|
|
Unearned ESOP shares
|
|
|
|
(2,271
|
)
|
|
(1,362
|
)
|
|
67
|
|
Total Wells Fargo stockholders’ equity
|
|
|
|
197,496
|
|
|
192,998
|
|
|
2
|
|
Noncontrolling interests
|
|
|
|
1,008
|
|
|
893
|
|
|
13
|
|
Total equity
|
|
|
|
198,504
|
|
|
193,891
|
|
|
2
|
|
Total liabilities and equity
|
|
|
$
|
1,849,182
|
|
|
1,787,632
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,084
|
|
|
19,111
|
|
|
17,395
|
|
|
19,687
|
|
|
19,793
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
300,547
|
|
|
270,130
|
|
|
254,811
|
|
|
232,247
|
|
|
291,317
|
|
Trading assets
|
|
|
|
73,158
|
|
|
77,202
|
|
|
73,894
|
|
|
80,236
|
|
|
79,278
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
255,551
|
|
|
267,358
|
|
|
266,406
|
|
|
260,667
|
|
|
257,603
|
|
Held-to-maturity, at cost
|
|
|
|
79,348
|
|
|
80,197
|
|
|
78,668
|
|
|
80,102
|
|
|
67,133
|
|
Mortgages held for sale
|
|
|
|
18,041
|
|
|
19,603
|
|
|
21,840
|
|
|
25,447
|
|
|
23,606
|
|
Loans held for sale
|
|
|
|
280
|
|
|
279
|
|
|
430
|
|
|
621
|
|
|
681
|
|
Loans
|
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
|
888,459
|
|
|
861,231
|
|
Allowance for loan losses
|
|
|
|
(11,621
|
)
|
|
(11,545
|
)
|
|
(11,659
|
)
|
|
(11,754
|
)
|
|
(12,176
|
)
|
Net loans
|
|
|
|
935,637
|
|
|
905,014
|
|
|
891,574
|
|
|
876,705
|
|
|
849,055
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
11,333
|
|
|
12,415
|
|
|
11,778
|
|
|
12,661
|
|
|
11,739
|
|
Amortized
|
|
|
|
1,359
|
|
|
1,308
|
|
|
1,277
|
|
|
1,262
|
|
|
1,252
|
|
Premises and equipment, net
|
|
|
|
8,349
|
|
|
8,704
|
|
|
8,800
|
|
|
8,692
|
|
|
8,696
|
|
Goodwill
|
|
|
|
27,003
|
|
|
25,529
|
|
|
25,684
|
|
|
25,705
|
|
|
25,705
|
|
Other assets
|
|
|
|
119,492
|
|
|
100,782
|
|
|
98,708
|
|
|
96,585
|
|
|
101,879
|
|
Total assets
|
|
|
$
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
|
1,720,617
|
|
|
1,737,737
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
348,888
|
|
|
351,579
|
|
|
339,761
|
|
|
343,582
|
|
|
335,858
|
|
Interest-bearing deposits
|
|
|
|
892,602
|
|
|
871,733
|
|
|
862,418
|
|
|
842,246
|
|
|
860,805
|
|
Total deposits
|
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1,202,179
|
|
|
1,185,828
|
|
|
1,196,663
|
|
Short-term borrowings
|
|
|
|
107,703
|
|
|
97,528
|
|
|
88,069
|
|
|
82,963
|
|
|
77,697
|
|
Accrued expenses and other liabilities
|
|
|
|
73,597
|
|
|
73,365
|
|
|
81,700
|
|
|
81,399
|
|
|
90,121
|
|
Long-term debt
|
|
|
|
227,888
|
|
|
199,536
|
|
|
185,274
|
|
|
179,751
|
|
|
183,292
|
|
Total liabilities
|
|
|
|
1,650,678
|
|
|
1,593,741
|
|
|
1,557,222
|
|
|
1,529,941
|
|
|
1,547,773
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
24,051
|
|
|
22,214
|
|
|
22,424
|
|
|
21,649
|
|
|
21,998
|
|
Common stock
|
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
Additional paid-in capital
|
|
|
|
60,602
|
|
|
60,714
|
|
|
60,998
|
|
|
60,154
|
|
|
59,980
|
|
Retained earnings
|
|
|
|
123,891
|
|
|
120,866
|
|
|
117,593
|
|
|
114,093
|
|
|
110,676
|
|
Cumulative other comprehensive income
|
|
|
|
1,774
|
|
|
297
|
|
|
2,389
|
|
|
2,068
|
|
|
3,777
|
|
Treasury stock
|
|
|
|
(19,687
|
)
|
|
(18,867
|
)
|
|
(17,899
|
)
|
|
(15,707
|
)
|
|
(14,556
|
)
|
Unearned ESOP shares
|
|
|
|
(2,271
|
)
|
|
(1,362
|
)
|
|
(1,590
|
)
|
|
(1,835
|
)
|
|
(2,215
|
)
|
Total Wells Fargo stockholders’ equity
|
|
|
|
197,496
|
|
|
192,998
|
|
|
193,051
|
|
|
189,558
|
|
|
188,796
|
|
Noncontrolling interests
|
|
|
|
1,008
|
|
|
893
|
|
|
992
|
|
|
1,118
|
|
|
1,168
|
|
Total equity
|
|
|
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
|
190,676
|
|
|
189,964
|
|
Total liabilities and equity
|
|
|
$
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
|
1,720,617
|
|
|
1,737,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
$
|
33,813
|
|
|
36,250
|
|
|
35,423
|
|
|
35,944
|
|
|
30,031
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
51,574
|
|
|
49,990
|
|
|
49,423
|
|
|
48,298
|
|
|
47,380
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
95,463
|
|
|
104,546
|
|
|
105,023
|
|
|
100,078
|
|
|
103,217
|
|
Residential and commercial
|
|
|
|
21,246
|
|
|
22,646
|
|
|
22,836
|
|
|
23,770
|
|
|
24,712
|
|
Total mortgage-backed securities
|
|
|
|
116,709
|
|
|
127,192
|
|
|
127,859
|
|
|
123,848
|
|
|
127,929
|
|
Other debt securities
|
|
|
|
51,956
|
|
|
52,289
|
|
|
51,760
|
|
|
50,090
|
|
|
48,759
|
|
Total available-for-sale debt securities
|
|
|
|
254,052
|
|
|
265,721
|
|
|
264,465
|
|
|
258,180
|
|
|
254,099
|
|
Marketable equity securities
|
|
|
|
1,499
|
|
|
1,637
|
|
|
1,941
|
|
|
2,487
|
|
|
3,504
|
|
Total available-for-sale securities
|
|
|
|
255,551
|
|
|
267,358
|
|
|
266,406
|
|
|
260,667
|
|
|
257,603
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44,667
|
|
|
44,660
|
|
|
44,653
|
|
|
44,645
|
|
|
44,244
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
2,183
|
|
|
2,185
|
|
|
2,187
|
|
|
2,174
|
|
|
2,092
|
|
Federal agency mortgage-backed securities
|
|
|
|
28,016
|
|
|
28,604
|
|
|
26,828
|
|
|
27,577
|
|
|
14,311
|
|
Other debt securities
|
|
|
|
4,482
|
|
|
4,748
|
|
|
5,000
|
|
|
5,706
|
|
|
6,486
|
|
Total held-to-maturity debt securities
|
|
|
|
79,348
|
|
|
80,197
|
|
|
78,668
|
|
|
80,102
|
|
|
67,133
|
|
Total investment securities
|
|
|
$
|
334,899
|
|
|
347,555
|
|
|
345,074
|
|
|
340,769
|
|
|
324,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER LOANS
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
321,547
|
|
|
299,892
|
|
|
292,234
|
|
|
284,817
|
|
|
271,088
|
|
Real estate mortgage
|
|
|
|
124,711
|
|
|
122,160
|
|
|
121,252
|
|
|
119,695
|
|
|
111,848
|
|
Real estate construction
|
|
|
|
22,944
|
|
|
22,164
|
|
|
21,710
|
|
|
21,309
|
|
|
19,981
|
|
Lease financing
|
|
|
|
19,003
|
|
|
12,367
|
|
|
12,142
|
|
|
12,201
|
|
|
12,382
|
|
Total commercial
|
|
|
|
488,205
|
|
|
456,583
|
|
|
447,338
|
|
|
438,022
|
|
|
415,299
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
274,734
|
|
|
273,869
|
|
|
271,311
|
|
|
267,868
|
|
|
265,213
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
51,324
|
|
|
53,004
|
|
|
54,592
|
|
|
56,164
|
|
|
57,839
|
|
Credit card
|
|
|
|
33,139
|
|
|
34,039
|
|
|
32,286
|
|
|
31,135
|
|
|
30,078
|
|
Automobile
|
|
|
|
60,658
|
|
|
59,966
|
|
|
59,164
|
|
|
57,801
|
|
|
56,339
|
|
Other revolving credit and installment
|
|
|
|
39,198
|
|
|
39,098
|
|
|
38,542
|
|
|
37,469
|
|
|
36,463
|
|
Total consumer
|
|
|
|
459,053
|
|
|
459,976
|
|
|
455,895
|
|
|
450,437
|
|
|
445,932
|
|
Total loans (1)
|
|
|
$
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
|
888,459
|
|
|
861,231
|
|
(1) Includes $20.3 billion, $20.0 billion, $20.7 billion, $21.6
billion, and $22.4 billion of purchased credit-impaired (PCI)
loans at March 31, 2016, and December 31, September 30, June 30,
and March 31, 2015, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
51,884
|
|
|
49,049
|
|
|
46,380
|
|
|
44,838
|
|
|
45,325
|
|
Real estate mortgage
|
|
|
|
8,367
|
|
|
8,350
|
|
|
8,662
|
|
|
9,125
|
|
|
5,171
|
|
Real estate construction
|
|
|
|
311
|
|
|
444
|
|
|
396
|
|
|
389
|
|
|
241
|
|
Lease financing
|
|
|
|
983
|
|
|
274
|
|
|
279
|
|
|
301
|
|
|
307
|
|
Total commercial foreign loans
|
|
|
$
|
61,545
|
|
|
58,117
|
|
|
55,717
|
|
|
54,653
|
|
|
51,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,911
|
|
|
1,363
|
|
|
1,031
|
|
|
1,079
|
|
|
663
|
|
Real estate mortgage
|
|
|
896
|
|
|
969
|
|
|
1,125
|
|
|
1,250
|
|
|
1,324
|
|
Real estate construction
|
|
|
63
|
|
|
66
|
|
|
151
|
|
|
165
|
|
|
182
|
|
Lease financing
|
|
|
99
|
|
|
26
|
|
|
29
|
|
|
28
|
|
|
23
|
|
Total commercial
|
|
|
3,969
|
|
|
2,424
|
|
|
2,336
|
|
|
2,522
|
|
|
2,192
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
6,683
|
|
|
7,293
|
|
|
7,425
|
|
|
8,045
|
|
|
8,345
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,421
|
|
|
1,495
|
|
|
1,612
|
|
|
1,710
|
|
|
1,798
|
|
Automobile
|
|
|
114
|
|
|
121
|
|
|
123
|
|
|
126
|
|
|
133
|
|
Other revolving credit and installment
|
|
|
47
|
|
|
49
|
|
|
41
|
|
|
40
|
|
|
42
|
|
Total consumer
|
|
|
8,265
|
|
|
8,958
|
|
|
9,201
|
|
|
9,921
|
|
|
10,318
|
|
Total nonaccrual loans (1)(2)(3)
|
|
|
$
|
12,234
|
|
|
11,382
|
|
|
11,537
|
|
|
12,443
|
|
|
12,510
|
|
As a percentage of total loans
|
|
|
1.29
|
%
|
|
1.24
|
|
|
1.28
|
|
|
1.40
|
|
|
1.45
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
$
|
386
|
|
|
446
|
|
|
502
|
|
|
588
|
|
|
772
|
|
Non-government insured/guaranteed
|
|
|
893
|
|
|
979
|
|
|
1,265
|
|
|
1,370
|
|
|
1,557
|
|
Total foreclosed assets
|
|
|
1,279
|
|
|
1,425
|
|
|
1,767
|
|
|
1,958
|
|
|
2,329
|
|
Total nonperforming assets
|
|
|
$
|
13,513
|
|
|
12,807
|
|
|
13,304
|
|
|
14,401
|
|
|
14,839
|
|
As a percentage of total loans
|
|
|
1.43
|
%
|
|
1.40
|
|
|
1.47
|
|
|
1.62
|
|
|
1.72
|
|
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
|
|
(2) Excludes PCI loans because they continue to earn interest
income from accretable yield, independent of performance in
accordance with their contractual terms.
|
|
(3) Real estate 1-4 family mortgage loans predominantly insured by
the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) and student loans
predominantly guaranteed by agencies on behalf of the U.S.
Department of Education under the Federal Family Education Loan
Program are not placed on nonaccrual status because they are
insured or guaranteed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Total (excluding PCI)(1):
|
|
|
$
|
13,060
|
|
|
14,380
|
|
|
14,405
|
|
|
15,161
|
|
|
16,344
|
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
|
12,233
|
|
|
13,373
|
|
|
13,500
|
|
|
14,359
|
|
|
15,453
|
|
Less: Student loans guaranteed under the FFELP (4)
|
|
|
|
24
|
|
|
26
|
|
|
33
|
|
|
46
|
|
|
50
|
|
Total, not government insured/guaranteed
|
|
|
$
|
803
|
|
|
981
|
|
|
872
|
|
|
756
|
|
|
841
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
24
|
|
|
97
|
|
|
53
|
|
|
17
|
|
|
31
|
|
Real estate mortgage
|
|
|
|
8
|
|
|
13
|
|
|
24
|
|
|
10
|
|
|
43
|
|
Real estate construction
|
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total commercial
|
|
|
|
34
|
|
|
114
|
|
|
77
|
|
|
27
|
|
|
74
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
|
167
|
|
|
224
|
|
|
216
|
|
|
220
|
|
|
221
|
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
|
55
|
|
|
65
|
|
|
61
|
|
|
65
|
|
|
55
|
|
Credit card
|
|
|
|
389
|
|
|
397
|
|
|
353
|
|
|
304
|
|
|
352
|
|
Automobile
|
|
|
|
55
|
|
|
79
|
|
|
66
|
|
|
51
|
|
|
47
|
|
Other revolving credit and installment
|
|
|
|
103
|
|
|
102
|
|
|
99
|
|
|
89
|
|
|
92
|
|
Total consumer
|
|
|
|
769
|
|
|
867
|
|
|
795
|
|
|
729
|
|
|
767
|
|
Total, not government insured/guaranteed
|
|
|
$
|
803
|
|
|
981
|
|
|
872
|
|
|
756
|
|
|
841
|
|
(1) PCI loans totaled $2.7 billion, $2.9 billion, $3.2 billion,
$3.4 billion and $3.6 billion, at March 31, 2016 and December 31,
September 30, June 30 and March 31, 2015, respectively.
|
|
(2) Represents loans whose repayments are predominantly insured by
the FHA or guaranteed by the VA.
|
|
(3) Includes mortgages held for sale 90 days or more past due and
still accruing.
|
|
(4) Represents loans whose repayments are predominantly guaranteed
by agencies on behalf of the U.S. Department of Education under
the FFELP.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED
CREDIT-IMPAIRED (PCI) LOANS
|
|
Loans purchased with evidence of credit deterioration since
origination and for which it is probable that all contractually
required payments will not be collected are considered to be credit
impaired. PCI loans predominantly represent loans acquired from
Wachovia that were deemed to be credit impaired. Evidence of credit
quality deterioration as of the purchase date may include statistics
such as past due and nonaccrual status, recent borrower credit
scores and recent LTV percentages. PCI loans are initially measured
at fair value, which includes estimated future credit losses
expected to be incurred over the life of the loan. Accordingly, the
associated allowance for credit losses related to these loans is not
carried over at the acquisition date.
|
|
As a result of PCI loan accounting, certain credit-related ratios
cannot be used to compare a portfolio that includes PCI loans
against one that does not, or to compare ratios across quarters or
years. The ratios particularly affected include the allowance for
loan losses and allowance for credit losses as percentages of loans,
of nonaccrual loans and of nonperforming assets; nonaccrual loans
and nonperforming assets as a percentage of total loans; and net
charge-offs as a percentage of loans.
|
|
The excess of cash flows expected to be collected over the carrying
value of PCI loans is referred to as the accretable yield and is
accreted into interest income over the estimated lives of the PCI
loans using the effective yield method. The accretable yield is
affected by:
|
|
|
•
|
|
Changes in interest rate indices for variable rate PCI loans -
Expected future cash flows are based on the variable rates in effect
at the time of the quarterly assessment of expected cash flows;
|
|
|
•
|
|
Changes in prepayment assumptions - Prepayments affect the estimated
life of PCI loans which may change the amount of interest income,
and possibly principal, expected to be collected; and
|
|
|
•
|
|
Changes in the expected principal and interest payments over the
estimated life - Updates to changes in expected cash flows are
driven by the credit outlook and actions taken with borrowers.
Changes in expected future cash flows from loan modifications are
included in the regular evaluations of cash flows expected to be
collected.
|
|
The change in the accretable yield related to PCI loans is
presented in the following table.
|
|
|
(in millions)
|
|
Balance, December 31, 2008
|
|
$
|
10,447
|
|
Addition of accretable yield due to acquisitions
|
|
|
132
|
|
Accretion into interest income (1)
|
|
|
(14,212
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
(458
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
|
9,734
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
10,658
|
|
Balance, December 31, 2015
|
|
|
16,301
|
|
Addition of accretable yield due to acquisitions
|
|
|
(1
|
)
|
Accretion into interest income (1)
|
|
|
(339
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
(9
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (4)
|
|
|
34
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
|
(8
|
)
|
Balance, March 31, 2016
|
|
$
|
15,978
|
|
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
|
|
(2) Includes accretable yield released as a result of sales to
third parties, which is included in noninterest income.
|
|
(3) Represents changes in cash flows expected to be collected due
to the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
|
|
(4) At March 31, 2016, our carrying value for PCI loans totaled
$20.3 billion and the remainder of nonaccretable difference
established in purchase accounting totaled $2.3 billion. The
nonaccretable difference absorbs losses of contractual amounts
that exceed our carrying value for PCI loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
March 31, 2016
|
|
|
|
|
PCI loans
|
|
|
All other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
Ratio of
|
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
carrying
|
|
|
|
|
|
carrying
|
|
|
|
|
unpaid
|
|
|
Current
|
|
|
|
|
|
value to
|
|
|
|
|
|
value to
|
|
|
|
|
principal
|
|
|
LTV
|
|
|
Carrying
|
|
|
current
|
|
|
Carrying
|
|
|
current
|
|
(in millions)
|
|
|
balance (2)
|
|
|
ratio (3)
|
|
|
value (4)
|
|
|
value (5)
|
|
|
value (4)
|
|
|
value (5)
|
|
California
|
|
|
$
|
16,079
|
|
|
72
|
%
|
|
$
|
12,838
|
|
|
57
|
%
|
|
$
|
9,311
|
|
|
52
|
%
|
Florida
|
|
|
1,819
|
|
|
81
|
|
|
1,392
|
|
|
60
|
|
|
1,932
|
|
|
65
|
|
New Jersey
|
|
|
751
|
|
|
81
|
|
|
578
|
|
|
60
|
|
|
1,272
|
|
|
68
|
|
New York
|
|
|
518
|
|
|
77
|
|
|
440
|
|
|
59
|
|
|
624
|
|
|
67
|
|
Texas
|
|
|
196
|
|
|
55
|
|
|
176
|
|
|
49
|
|
|
753
|
|
|
43
|
|
Other states
|
|
|
3,724
|
|
|
78
|
|
|
2,972
|
|
|
61
|
|
|
5,388
|
|
|
64
|
|
Total Pick-a-Pay loans
|
|
|
$
|
23,087
|
|
|
74
|
|
|
$
|
18,396
|
|
|
58
|
|
|
$
|
19,280
|
|
|
58
|
|
(1) The individual states shown in this table represent the top
five states based on the total net carrying value of the
Pick-a-Pay loans at the beginning of 2016.
|
|
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
|
|
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
|
|
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
|
|
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Balance, beginning of quarter
|
|
|
$
|
12,512
|
|
|
12,562
|
|
|
12,614
|
|
|
13,013
|
|
|
13,169
|
|
Provision for credit losses
|
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
|
300
|
|
|
608
|
|
Interest income on certain impaired loans (1)
|
|
|
|
(48
|
)
|
|
(48
|
)
|
|
(48
|
)
|
|
(50
|
)
|
|
(52
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
(349
|
)
|
|
(275
|
)
|
|
(172
|
)
|
|
(154
|
)
|
|
(133
|
)
|
Real estate mortgage
|
|
|
|
(3
|
)
|
|
(11
|
)
|
|
(9
|
)
|
|
(16
|
)
|
|
(23
|
)
|
Real estate construction
|
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
Lease financing
|
|
|
|
(4
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
(3
|
)
|
Total commercial
|
|
|
|
(356
|
)
|
|
(291
|
)
|
|
(186
|
)
|
|
(174
|
)
|
|
(160
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
(137
|
)
|
|
(113
|
)
|
|
(145
|
)
|
|
(119
|
)
|
|
(130
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
(133
|
)
|
|
(134
|
)
|
|
(159
|
)
|
|
(163
|
)
|
|
(179
|
)
|
Credit card
|
|
|
|
(314
|
)
|
|
(295
|
)
|
|
(259
|
)
|
|
(284
|
)
|
|
(278
|
)
|
Automobile
|
|
|
|
(211
|
)
|
|
(211
|
)
|
|
(186
|
)
|
|
(150
|
)
|
|
(195
|
)
|
Other revolving credit and installment
|
|
|
|
(175
|
)
|
|
(178
|
)
|
|
(160
|
)
|
|
(151
|
)
|
|
(154
|
)
|
Total consumer
|
|
|
|
(970
|
)
|
|
(931
|
)
|
|
(909
|
)
|
|
(867
|
)
|
|
(936
|
)
|
Total loan charge-offs
|
|
|
|
(1,326
|
)
|
|
(1,222
|
)
|
|
(1,095
|
)
|
|
(1,041
|
)
|
|
(1,096
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
76
|
|
|
60
|
|
|
50
|
|
|
73
|
|
|
69
|
|
Real estate mortgage
|
|
|
|
32
|
|
|
30
|
|
|
32
|
|
|
31
|
|
|
34
|
|
Real estate construction
|
|
|
|
8
|
|
|
12
|
|
|
8
|
|
|
7
|
|
|
10
|
|
Lease financing
|
|
|
|
3
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
3
|
|
Total commercial
|
|
|
|
119
|
|
|
104
|
|
|
92
|
|
|
112
|
|
|
116
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
89
|
|
|
63
|
|
|
83
|
|
|
52
|
|
|
47
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
59
|
|
|
64
|
|
|
70
|
|
|
69
|
|
|
56
|
|
Credit card
|
|
|
|
52
|
|
|
52
|
|
|
43
|
|
|
41
|
|
|
39
|
|
Automobile
|
|
|
|
84
|
|
|
76
|
|
|
73
|
|
|
82
|
|
|
94
|
|
Other revolving credit and installment
|
|
|
|
37
|
|
|
32
|
|
|
31
|
|
|
35
|
|
|
36
|
|
Total consumer
|
|
|
|
321
|
|
|
287
|
|
|
300
|
|
|
279
|
|
|
272
|
|
Total loan recoveries
|
|
|
|
440
|
|
|
391
|
|
|
392
|
|
|
391
|
|
|
388
|
|
Net loan charge-offs
|
|
|
|
(886
|
)
|
|
(831
|
)
|
|
(703
|
)
|
|
(650
|
)
|
|
(708
|
)
|
Other
|
|
|
|
4
|
|
|
(2
|
)
|
|
(4
|
)
|
|
1
|
|
|
(4
|
)
|
Balance, end of quarter
|
|
|
$
|
12,668
|
|
|
12,512
|
|
|
12,562
|
|
|
12,614
|
|
|
13,013
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
11,621
|
|
|
11,545
|
|
|
11,659
|
|
|
11,754
|
|
|
12,176
|
|
Allowance for unfunded credit commitments
|
|
|
|
1,047
|
|
|
967
|
|
|
903
|
|
|
860
|
|
|
837
|
|
Allowance for credit losses
|
|
|
$
|
12,668
|
|
|
12,512
|
|
|
12,562
|
|
|
12,614
|
|
|
13,013
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
|
0.38
|
%
|
|
0.36
|
|
|
0.31
|
|
|
0.30
|
|
|
0.33
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
1.23
|
|
|
1.26
|
|
|
1.29
|
|
|
1.32
|
|
|
1.41
|
|
Nonaccrual loans
|
|
|
|
95
|
|
|
101
|
|
|
101
|
|
|
94
|
|
|
97
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
86
|
|
|
90
|
|
|
88
|
|
|
82
|
|
|
82
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
1.34
|
|
|
1.37
|
|
|
1.39
|
|
|
1.42
|
|
|
1.51
|
|
Nonaccrual loans
|
|
|
|
104
|
|
|
110
|
|
|
109
|
|
|
101
|
|
|
104
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
94
|
|
|
98
|
|
|
94
|
|
|
88
|
|
|
88
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
reductions in allowance as interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in billions)
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Total equity
|
|
|
|
$
|
198.5
|
|
|
193.9
|
|
|
194.0
|
|
|
190.7
|
|
|
190.0
|
|
Noncontrolling interests
|
|
|
|
|
(1.0
|
)
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
(1.1
|
)
|
|
(1.2
|
)
|
Total Wells Fargo stockholders’ equity
|
|
|
|
|
197.5
|
|
|
193.0
|
|
|
193.1
|
|
|
189.6
|
|
|
188.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(22.0
|
)
|
|
(21.0
|
)
|
|
(21.0
|
)
|
|
(20.0
|
)
|
|
(20.0
|
)
|
Goodwill and other intangible assets (2)
|
|
|
|
|
(30.9
|
)
|
|
(28.7
|
)
|
|
(28.7
|
)
|
|
(29.1
|
)
|
|
(28.9
|
)
|
Investment in certain subsidiaries and other
|
|
|
|
|
(1.9
|
)
|
|
(0.9
|
)
|
|
(1.6
|
)
|
|
(0.6
|
)
|
|
(0.9
|
)
|
Common Equity Tier 1 (Fully Phased-In) under Basel III (1)
|
|
(A)
|
|
|
142.7
|
|
|
142.4
|
|
|
141.8
|
|
|
139.9
|
|
|
139.0
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (3)(4)
|
|
(B)
|
|
$
|
1,341.2
|
|
|
1,321.7
|
|
|
1,331.8
|
|
|
1,325.6
|
|
|
1,326.3
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (4)
|
|
(A)/(B)
|
|
|
10.6
|
%
|
|
10.8
|
|
|
10.6
|
|
|
10.6
|
|
|
10.5
|
|
(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. These rules established a new comprehensive
capital framework for U.S. banking organizations that implements
the Basel III capital framework and certain provisions of the
Dodd-Frank Act. 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. Fully phased-in regulatory capital amounts, ratios and RWAs
are considered non-GAAP financial measures that are used by
management, bank regulatory agencies, investors and analysts to
assess and monitor the Company’s capital position. We have
included this non-GAAP financial information, and the
corresponding reconciliation to total equity, because of current
interest in such information on the part of market participants.
|
|
(2) Goodwill and other intangible assets are net of any associated
deferred tax liabilities.
|
|
(3) 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, 2016, 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, 2015, September 30, 2015, and June 30, 2015, was
calculated under the Basel III Standardized Approach RWAs, and the
capital ratio for March 31, 2015 was calculated under the Basel
III Advanced Approach RWAs.
|
|
(4) The Company’s March 31, 2016, 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
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Quarter ended Mar 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
7,468
|
|
|
7,147
|
|
|
3,748
|
|
|
3,437
|
|
|
943
|
|
|
826
|
|
|
(492
|
)
|
|
(424
|
)
|
|
11,667
|
|
|
10,986
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
720
|
|
|
658
|
|
|
363
|
|
|
(51
|
)
|
|
(14
|
)
|
|
(3
|
)
|
|
17
|
|
|
4
|
|
|
1,086
|
|
|
608
|
|
Noninterest income
|
|
|
|
5,146
|
|
|
4,964
|
|
|
3,210
|
|
|
2,972
|
|
|
2,911
|
|
|
3,150
|
|
|
(739
|
)
|
|
(794
|
)
|
|
10,528
|
|
|
10,292
|
|
Noninterest expense
|
|
|
|
6,836
|
|
|
6,591
|
|
|
3,968
|
|
|
3,618
|
|
|
3,042
|
|
|
3,122
|
|
|
(818
|
)
|
|
(824
|
)
|
|
13,028
|
|
|
12,507
|
|
Income (loss) before income tax expense (benefit)
|
|
|
|
5,058
|
|
|
4,862
|
|
|
2,627
|
|
|
2,842
|
|
|
826
|
|
|
857
|
|
|
(430
|
)
|
|
(398
|
)
|
|
8,081
|
|
|
8,163
|
|
Income tax expense (benefit)
|
|
|
|
1,697
|
|
|
1,290
|
|
|
719
|
|
|
817
|
|
|
314
|
|
|
324
|
|
|
(163
|
)
|
|
(152
|
)
|
|
2,567
|
|
|
2,279
|
|
Net income (loss) before noncontrolling interests
|
|
|
|
3,361
|
|
|
3,572
|
|
|
1,908
|
|
|
2,025
|
|
|
512
|
|
|
533
|
|
|
(267
|
)
|
|
(246
|
)
|
|
5,514
|
|
|
5,884
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
65
|
|
|
25
|
|
|
(13
|
)
|
|
51
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
80
|
|
Net income (loss)
|
|
|
$
|
3,296
|
|
|
3,547
|
|
|
1,921
|
|
|
1,974
|
|
|
512
|
|
|
529
|
|
|
(267
|
)
|
|
(246
|
)
|
|
5,462
|
|
|
5,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
$
|
484.3
|
|
|
472.2
|
|
|
429.8
|
|
|
380.0
|
|
|
64.1
|
|
|
56.9
|
|
|
(51.0
|
)
|
|
(45.8
|
)
|
|
927.2
|
|
|
863.3
|
|
Average assets
|
|
|
|
947.4
|
|
|
909.5
|
|
|
748.6
|
|
|
690.6
|
|
|
208.1
|
|
|
191.6
|
|
|
(84.2
|
)
|
|
(83.9
|
)
|
|
1,819.9
|
|
|
1,707.8
|
|
Average deposits
|
|
|
|
683.0
|
|
|
643.4
|
|
|
428.0
|
|
|
431.7
|
|
|
184.5
|
|
|
170.3
|
|
|
(76.1
|
)
|
|
(70.6
|
)
|
|
1,219.4
|
|
|
1,174.8
|
|
(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 items not specific to a business segment and
elimination of certain items that are included in more than one
business segment, substantially all 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
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(income/expense in millions, average balances in billions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
7,468
|
|
|
7,409
|
|
|
7,409
|
|
|
7,277
|
|
|
7,147
|
|
Provision for credit losses
|
|
|
|
720
|
|
|
704
|
|
|
668
|
|
|
397
|
|
|
658
|
|
Noninterest income
|
|
|
|
5,146
|
|
|
4,921
|
|
|
5,524
|
|
|
4,690
|
|
|
4,964
|
|
Noninterest expense
|
|
|
|
6,836
|
|
|
6,893
|
|
|
6,778
|
|
|
6,719
|
|
|
6,591
|
|
Income before income tax expense
|
|
|
|
5,058
|
|
|
4,733
|
|
|
5,487
|
|
|
4,851
|
|
|
4,862
|
|
Income tax expense
|
|
|
|
1,697
|
|
|
1,507
|
|
|
1,785
|
|
|
1,620
|
|
|
1,290
|
|
Net income before noncontrolling interests
|
|
|
|
3,361
|
|
|
3,226
|
|
|
3,702
|
|
|
3,231
|
|
|
3,572
|
|
Less: Net income from noncontrolling interests
|
|
|
|
65
|
|
|
57
|
|
|
142
|
|
|
16
|
|
|
25
|
|
Segment net income
|
|
|
$
|
3,296
|
|
|
3,169
|
|
|
3,560
|
|
|
3,215
|
|
|
3,547
|
|
Average loans
|
|
|
$
|
484.3
|
|
|
482.2
|
|
|
477.0
|
|
|
472.3
|
|
|
472.2
|
|
Average assets
|
|
|
|
947.4
|
|
|
921.4
|
|
|
898.9
|
|
|
910.0
|
|
|
909.5
|
|
Average deposits
|
|
|
|
683.0
|
|
|
663.7
|
|
|
655.6
|
|
|
654.8
|
|
|
643.4
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
3,748
|
|
|
3,711
|
|
|
3,611
|
|
|
3,591
|
|
|
3,437
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
363
|
|
|
126
|
|
|
36
|
|
|
(84
|
)
|
|
(51
|
)
|
Noninterest income
|
|
|
|
3,210
|
|
|
2,848
|
|
|
2,715
|
|
|
3,019
|
|
|
2,972
|
|
Noninterest expense
|
|
|
|
3,968
|
|
|
3,491
|
|
|
3,503
|
|
|
3,504
|
|
|
3,618
|
|
Income before income tax expense
|
|
|
|
2,627
|
|
|
2,942
|
|
|
2,787
|
|
|
3,190
|
|
|
2,842
|
|
Income tax expense
|
|
|
|
719
|
|
|
841
|
|
|
815
|
|
|
951
|
|
|
817
|
|
Net income before noncontrolling interests
|
|
|
|
1,908
|
|
|
2,101
|
|
|
1,972
|
|
|
2,239
|
|
|
2,025
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
(13
|
)
|
|
(3
|
)
|
|
47
|
|
|
48
|
|
|
51
|
|
Segment net income
|
|
|
$
|
1,921
|
|
|
2,104
|
|
|
1,925
|
|
|
2,191
|
|
|
1,974
|
|
Average loans
|
|
|
$
|
429.8
|
|
|
417.0
|
|
|
405.6
|
|
|
386.2
|
|
|
380.0
|
|
Average assets
|
|
|
|
748.6
|
|
|
755.4
|
|
|
739.1
|
|
|
713.7
|
|
|
690.6
|
|
Average deposits
|
|
|
|
428.0
|
|
|
449.3
|
|
|
442.0
|
|
|
432.4
|
|
|
431.7
|
|
WEALTH AND INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
943
|
|
|
933
|
|
|
887
|
|
|
832
|
|
|
826
|
|
Reversal of provision for credit losses
|
|
|
|
(14
|
)
|
|
(6
|
)
|
|
(6
|
)
|
|
(10
|
)
|
|
(3
|
)
|
Noninterest income
|
|
|
|
2,911
|
|
|
3,014
|
|
|
2,991
|
|
|
3,144
|
|
|
3,150
|
|
Noninterest expense
|
|
|
|
3,042
|
|
|
2,998
|
|
|
2,909
|
|
|
3,038
|
|
|
3,122
|
|
Income before income tax expense
|
|
|
|
826
|
|
|
955
|
|
|
975
|
|
|
948
|
|
|
857
|
|
Income tax expense
|
|
|
|
314
|
|
|
366
|
|
|
371
|
|
|
359
|
|
|
324
|
|
Net income before noncontrolling interests
|
|
|
|
512
|
|
|
589
|
|
|
604
|
|
|
589
|
|
|
533
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
—
|
|
|
(6
|
)
|
|
(2
|
)
|
|
3
|
|
|
4
|
|
Segment net income
|
|
|
$
|
512
|
|
|
595
|
|
|
606
|
|
|
586
|
|
|
529
|
|
Average loans
|
|
|
$
|
64.1
|
|
|
63.0
|
|
|
61.1
|
|
|
59.3
|
|
|
56.9
|
|
Average assets
|
|
|
|
208.1
|
|
|
197.9
|
|
|
192.6
|
|
|
189.1
|
|
|
191.6
|
|
Average deposits
|
|
|
|
184.5
|
|
|
177.9
|
|
|
172.6
|
|
|
168.2
|
|
|
170.3
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
(492
|
)
|
|
(465
|
)
|
|
(450
|
)
|
|
(430
|
)
|
|
(424
|
)
|
Provision (reversal of provision) for credit losses
|
|
|
|
17
|
|
|
7
|
|
|
5
|
|
|
(3
|
)
|
|
4
|
|
Noninterest income
|
|
|
|
(739
|
)
|
|
(785
|
)
|
|
(812
|
)
|
|
(805
|
)
|
|
(794
|
)
|
Noninterest expense
|
|
|
|
(818
|
)
|
|
(783
|
)
|
|
(791
|
)
|
|
(792
|
)
|
|
(824
|
)
|
Loss before income tax benefit
|
|
|
|
(430
|
)
|
|
(474
|
)
|
|
(476
|
)
|
|
(440
|
)
|
|
(398
|
)
|
Income tax benefit
|
|
|
|
(163
|
)
|
|
(181
|
)
|
|
(181
|
)
|
|
(167
|
)
|
|
(152
|
)
|
Net loss before noncontrolling interests
|
|
|
|
(267
|
)
|
|
(293
|
)
|
|
(295
|
)
|
|
(273
|
)
|
|
(246
|
)
|
Less: Net income from noncontrolling interests
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other net loss
|
|
|
$
|
(267
|
)
|
|
(293
|
)
|
|
(295
|
)
|
|
(273
|
)
|
|
(246
|
)
|
Average loans
|
|
|
$
|
(51.0
|
)
|
|
(49.9
|
)
|
|
(48.6
|
)
|
|
(47.4
|
)
|
|
(45.8
|
)
|
Average assets
|
|
|
|
(84.2
|
)
|
|
(87.4
|
)
|
|
(84.2
|
)
|
|
(83.5
|
)
|
|
(83.9
|
)
|
Average deposits
|
|
|
|
(76.1
|
)
|
|
(74.1
|
)
|
|
(71.3
|
)
|
|
(70.1
|
)
|
|
(70.6
|
)
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
11,667
|
|
|
11,588
|
|
|
11,457
|
|
|
11,270
|
|
|
10,986
|
|
Provision for credit losses
|
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
|
300
|
|
|
608
|
|
Noninterest income
|
|
|
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
|
10,048
|
|
|
10,292
|
|
Noninterest expense
|
|
|
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
|
12,469
|
|
|
12,507
|
|
Income before income tax expense
|
|
|
|
8,081
|
|
|
8,156
|
|
|
8,773
|
|
|
8,549
|
|
|
8,163
|
|
Income tax expense
|
|
|
|
2,567
|
|
|
2,533
|
|
|
2,790
|
|
|
2,763
|
|
|
2,279
|
|
Net income before noncontrolling interests
|
|
|
|
5,514
|
|
|
5,623
|
|
|
5,983
|
|
|
5,786
|
|
|
5,884
|
|
Less: Net income from noncontrolling interests
|
|
|
|
52
|
|
|
48
|
|
|
187
|
|
|
67
|
|
|
80
|
|
Wells Fargo net income
|
|
|
$
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
|
5,719
|
|
|
5,804
|
|
Average loans
|
|
|
$
|
927.2
|
|
|
912.3
|
|
|
895.1
|
|
|
870.4
|
|
|
863.3
|
|
Average assets
|
|
|
|
1,819.9
|
|
|
1,787.3
|
|
|
1,746.4
|
|
|
1,729.3
|
|
|
1,707.8
|
|
Average deposits
|
|
|
|
1,219.4
|
|
|
1,216.8
|
|
|
1,198.9
|
|
|
1,185.3
|
|
|
1,174.8
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
|
(2) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
(3) Includes items not specific to a business segment and
elimination of certain items that are included in more than one
business segment, substantially all 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
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
|
$
|
12,415
|
|
|
11,778
|
|
|
12,661
|
|
|
11,739
|
|
|
12,738
|
|
Servicing from securitizations or asset transfers
|
|
|
|
366
|
|
|
372
|
|
|
448
|
|
|
428
|
|
|
308
|
|
Sales and other (1)
|
|
|
|
—
|
|
|
(9
|
)
|
|
6
|
|
|
(5
|
)
|
|
(1
|
)
|
Net additions
|
|
|
|
366
|
|
|
363
|
|
|
454
|
|
|
423
|
|
|
307
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (2)
|
|
|
|
(1,084
|
)
|
|
560
|
|
|
(858
|
)
|
|
1,117
|
|
|
(572
|
)
|
Servicing and foreclosure costs (3)
|
|
|
|
27
|
|
|
(37
|
)
|
|
(18
|
)
|
|
(10
|
)
|
|
(18
|
)
|
Prepayment estimates and other (4)
|
|
|
|
100
|
|
|
244
|
|
|
43
|
|
|
(54
|
)
|
|
(183
|
)
|
Net changes in valuation model inputs or assumptions
|
|
|
|
(957
|
)
|
|
767
|
|
|
(833
|
)
|
|
1,053
|
|
|
(773
|
)
|
Other changes in fair value (5)
|
|
|
|
(491
|
)
|
|
(493
|
)
|
|
(504
|
)
|
|
(554
|
)
|
|
(533
|
)
|
Total changes in fair value
|
|
|
|
(1,448
|
)
|
|
274
|
|
|
(1,337
|
)
|
|
499
|
|
|
(1,306
|
)
|
Fair value, end of quarter
|
|
|
$
|
11,333
|
|
|
12,415
|
|
|
11,778
|
|
|
12,661
|
|
|
11,739
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
|
|
(2) 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).
|
|
(3) Includes costs to service and unreimbursed foreclosure costs.
|
|
(4) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and
other assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior and other
external factors that occur independent of interest rate changes.
|
|
(5) Represents changes due to collection/realization of expected
cash flows over time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
$
|
1,308
|
|
|
1,277
|
|
|
1,262
|
|
|
1,252
|
|
|
1,242
|
|
Purchases
|
|
|
|
21
|
|
|
48
|
|
|
45
|
|
|
29
|
|
|
22
|
|
Servicing from securitizations or asset transfers
|
|
|
|
97
|
|
|
49
|
|
|
35
|
|
|
46
|
|
|
50
|
|
Amortization
|
|
|
|
(67
|
)
|
|
(66
|
)
|
|
(65
|
)
|
|
(65
|
)
|
|
(62
|
)
|
Balance, end of quarter
|
|
|
$
|
1,359
|
|
|
1,308
|
|
|
1,277
|
|
|
1,262
|
|
|
1,252
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
$
|
1,680
|
|
|
1,643
|
|
|
1,692
|
|
|
1,522
|
|
|
1,637
|
|
End of quarter
|
|
|
|
1,725
|
|
|
1,680
|
|
|
1,643
|
|
|
1,692
|
|
|
1,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
$
|
910
|
|
|
872
|
|
|
990
|
|
|
1,026
|
|
|
1,010
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
(A)
|
|
|
(957
|
)
|
|
767
|
|
|
(833
|
)
|
|
1,053
|
|
|
(773
|
)
|
Other changes in fair value (3)
|
|
|
|
|
(491
|
)
|
|
(493
|
)
|
|
(504
|
)
|
|
(554
|
)
|
|
(533
|
)
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
|
(1,448
|
)
|
|
274
|
|
|
(1,337
|
)
|
|
499
|
|
|
(1,306
|
)
|
Amortization
|
|
|
|
|
(67
|
)
|
|
(66
|
)
|
|
(65
|
)
|
|
(65
|
)
|
|
(62
|
)
|
Net derivative gains (losses) from economic hedges (4)
|
|
(B)
|
|
|
1,455
|
|
|
(350
|
)
|
|
1,086
|
|
|
(946
|
)
|
|
881
|
|
Total servicing income, net
|
|
|
|
$
|
850
|
|
|
730
|
|
|
674
|
|
|
514
|
|
|
523
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(4)
|
|
(A)+(B)
|
|
$
|
498
|
|
|
417
|
|
|
253
|
|
|
107
|
|
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues.
|
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
|
(3) Represents changes due to collection/realization of expected
cash flows over time.
|
|
(4) Represents results from economic hedges used to hedge the risk
of changes in fair value of MSRs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in billions)
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
$
|
1,280
|
|
|
1,300
|
|
|
1,323
|
|
|
1,344
|
|
|
1,374
|
|
Owned loans serviced
|
|
|
342
|
|
|
345
|
|
|
346
|
|
|
347
|
|
|
344
|
|
Subserviced for others
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
5
|
|
|
5
|
|
Total residential servicing
|
|
|
1,626
|
|
|
1,649
|
|
|
1,673
|
|
|
1,696
|
|
|
1,723
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
485
|
|
|
478
|
|
|
470
|
|
|
465
|
|
|
461
|
|
Owned loans serviced
|
|
|
125
|
|
|
122
|
|
|
121
|
|
|
120
|
|
|
112
|
|
Subserviced for others
|
|
|
8
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
Total commercial servicing
|
|
|
618
|
|
|
607
|
|
|
598
|
|
|
592
|
|
|
580
|
|
Total managed servicing portfolio
|
|
$
|
2,244
|
|
|
2,256
|
|
|
2,271
|
|
|
2,288
|
|
|
2,303
|
|
Total serviced for others
|
|
$
|
1,765
|
|
|
1,778
|
|
|
1,793
|
|
|
1,809
|
|
|
1,835
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
0.72
|
%
|
|
0.77
|
|
|
0.73
|
|
|
0.77
|
|
|
0.71
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
4.34
|
|
|
4.37
|
|
|
4.39
|
|
|
4.41
|
|
|
4.43
|
|
(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,
|
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
Net gains on mortgage loan origination/sales activities (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(A)
|
|
$
|
532
|
|
|
600
|
|
736
|
|
814
|
|
711
|
|
Commercial
|
|
|
|
|
71
|
|
|
108
|
|
55
|
|
108
|
|
91
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
|
|
|
145
|
|
|
222
|
|
124
|
|
269
|
|
222
|
|
Total
|
|
|
|
$
|
748
|
|
|
930
|
|
915
|
|
1,191
|
|
1,024
|
|
Application data (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
$
|
77
|
|
|
64
|
|
73
|
|
81
|
|
93
|
|
Refinances as a percentage of applications
|
|
|
|
|
52
|
%
|
|
48
|
|
44
|
|
45
|
|
61
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
$
|
39
|
|
|
29
|
|
34
|
|
38
|
|
44
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
|
|
|
55
|
%
|
|
59
|
|
66
|
|
54
|
|
45
|
|
Refinances as a percentage of originations
|
|
|
|
|
45
|
|
|
41
|
|
34
|
|
46
|
|
55
|
|
Total
|
|
|
|
|
100
|
%
|
|
100
|
|
100
|
|
100
|
|
100
|
|
Wells Fargo first mortgage loans (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
$
|
24
|
|
|
27
|
|
32
|
|
36
|
|
28
|
|
Correspondent
|
|
|
|
|
19
|
|
|
19
|
|
22
|
|
25
|
|
20
|
|
Other (2)
|
|
|
|
|
1
|
|
|
1
|
|
1
|
|
1
|
|
1
|
|
Total quarter-to-date
|
|
|
|
$
|
44
|
|
|
47
|
|
55
|
|
62
|
|
49
|
|
Held-for-sale
|
|
(B)
|
|
$
|
31
|
|
|
33
|
|
39
|
|
46
|
|
37
|
|
Held-for-investment
|
|
|
|
|
13
|
|
|
14
|
|
16
|
|
16
|
|
12
|
|
Total quarter-to-date
|
|
|
|
$
|
44
|
|
|
47
|
|
55
|
|
62
|
|
49
|
|
Total year-to-date
|
|
|
|
$
|
44
|
|
|
213
|
|
166
|
|
111
|
|
49
|
|
Production margin on residential held-for-sale mortgage
originations
|
|
(A)/(B)
|
|
|
1.68
|
%
|
|
1.83
|
|
1.88
|
|
1.75
|
|
1.93
|
|
(1) Primarily includes the results of GNMA loss mitigation
activities, interest rate management activities and changes in
estimate to the liability for mortgage loan repurchase losses.
|
|
(2) Consists of home equity loans and lines.
|
|
|
|
|
|
|
|
|
|
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Balance, beginning of period
|
|
$
|
378
|
|
|
538
|
|
|
557
|
|
|
586
|
|
|
615
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
7
|
|
|
9
|
|
|
11
|
|
|
13
|
|
|
10
|
|
Change in estimate (1)
|
|
|
(19
|
)
|
|
(128
|
)
|
|
(17
|
)
|
|
(31
|
)
|
|
(26
|
)
|
Net reductions
|
|
|
(12
|
)
|
|
(119
|
)
|
|
(6
|
)
|
|
(18
|
)
|
|
(16
|
)
|
Losses
|
|
|
(11
|
)
|
|
(41
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|
(13
|
)
|
Balance, end of period
|
|
$
|
355
|
|
|
378
|
|
|
538
|
|
|
557
|
|
|
586
|
|
(1) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.
|
|