Diluted EPS of $1.03; Revenue Up 2 Percent from Prior Year
Wells Fargo & Company (NYSE:WFC):
-
Continued strong financial results:
-
Net income of $5.6 billion, compared with $5.8 billion in third
quarter 2015
-
Diluted earnings per share (EPS) of $1.03, compared with $1.05
-
Revenue of $22.3 billion, up 2 percent
-
Pre-tax pre-provision profit1 of $9.1 billion, compared
with $9.5 billion
-
Return on assets of 1.17 percent and return on equity of 11.60
percent
-
Strong growth in loans and deposits:
-
Total average loans of $957.5 billion, up $62.4 billion, or 7
percent, from third quarter 2015
-
Total average deposits of $1.3 trillion, up $62.7 billion, or 5
percent
-
Solid credit quality:
-
Net charge-offs of $805 million, up $102 million from third
quarter 2015
-
Net charge-offs were 0.33 percent of average loans
(annualized), up from 0.31 percent
-
Nonaccrual loans down $551 million, or 5 percent
-
No reserve build2 or release, consistent with third
quarter 2015
-
Maintained strong capital levels while continuing to return capital to
shareholders:
-
Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent3
-
Period-end common shares outstanding down 24.6 million from second
quarter 2016.
Sales Practices Settlements4
On September 8, 2016, Wells Fargo & Company (NYSE:WFC) reached
agreements with the Consumer Financial Protection Bureau, the Office of
the Comptroller of the Currency, and the Office of the Los Angeles City
Attorney, regarding allegations that some of its retail customers
received products and services they did not request. The amount of the
settlements, which the Company had fully accrued for as of June 30,
2016, totaled $185 million, plus $5 million in customer remediation. Key
actions are being taken to ensure the Company's culture is wholly
aligned with the interests of customers including:
-
Eliminated product sales goals for retail banking team members as of
October 1, 2016;
-
Implemented procedures to send customers a confirmation email
approximately an hour after opening any deposit account and an
acknowledgement letter after submitting a credit card application;
-
Attempting to contact all retail and small business deposit customers
across the country, including those who have already received refunded
fees, to invite them to review their accounts with their banker. Also
contacting credit card customers identified as possibly having
unauthorized accounts to confirm whether they need or want their
credit card;
-
Expanding the scope of our customer account review and remediation to
include 2009 and 2010;
-
The Independent Directors of the Board have launched an investigation
into the Company’s retail banking sales practices and related matters
-
Independent Directors have retained the Shearman & Sterling law
firm to assist in the investigation
-
John Stumpf forfeited unvested equity awards valued at
approximately $41 million
-
Carrie Tolstedt has left the Company; will receive no severance;
has forfeited unvested equity awards valued at approximately $19
million; will not exercise outstanding options during investigation
-
Neither executive will receive a bonus for 2016
Executive Leadership Changes
On October 12, 2016, former Chairman and CEO John Stumpf retired from
the Company after 34 years of service. The Board elected Tim Sloan, the
Company’s President and Chief Operating Officer, to succeed him as CEO,
and Stephen Sanger, its Lead Director, to serve as the Board’s
non-executive Chairman, and independent director Elizabeth Duke to serve
as Vice Chair. Sloan also was elected to the Board.
President and CEO Tim Sloan said, “I am deeply committed to restoring
the trust of all of our stakeholders, including our customers,
shareholders, and community partners. We know that it will take time and
a lot of hard work to earn back our reputation, but I am confident
because of the incredible caliber of our team members. We will work
tirelessly to build a stronger and better Wells Fargo for generations to
come.”
Financial Results
Wells Fargo & Company (NYSE:WFC) reported net income of $5.6 billion, or
$1.03 per diluted common share, for third quarter 2016, compared with
$5.8 billion, or $1.05 per share, for third quarter 2015, and
$5.6 billion, or $1.01 per share, for second quarter 2016.
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
Earnings
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
1.03
|
|
|
|
1.01
|
|
|
1.05
|
Wells Fargo net income (in billions)
|
|
|
|
5.64
|
|
|
|
5.56
|
|
|
5.80
|
Return on assets (ROA)
|
|
|
|
1.17
|
%
|
|
|
1.20
|
|
|
1.32
|
Return on equity (ROE)
|
|
|
|
11.60
|
|
|
|
11.70
|
|
|
12.62
|
Return on average tangible common equity (ROTCE)(a)
|
|
|
|
13.96
|
|
|
|
14.15
|
|
|
15.19
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
|
0.33
|
%
|
|
|
0.39
|
|
|
0.31
|
Allowance for credit losses as a % of total loans
|
|
|
|
1.32
|
|
|
|
1.33
|
|
|
1.39
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
|
396
|
|
|
|
343
|
|
|
450
|
Other
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
22.3
|
|
|
|
22.2
|
|
|
21.9
|
Efficiency ratio
|
|
|
|
59.4
|
%
|
|
|
58.1
|
|
|
56.7
|
Average loans (in billions)
|
|
|
$
|
957.5
|
|
|
|
950.8
|
|
|
895.1
|
Average deposits (in billions)
|
|
|
|
1,261.5
|
|
|
|
1,236.7
|
|
|
1,198.9
|
Net interest margin
|
|
|
|
2.82
|
%
|
|
|
2.86
|
|
|
2.96
|
(a) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to
assess the Company's use of equity. For additional information,
including a corresponding reconciliation to GAAP financial
measures, see the "Tangible Common Equity" tables on page 35.
|
|
Chief Financial Officer John Shrewsberry said, “Wells Fargo reported
solid results for the third quarter, reflecting the benefits of our
diversified business model, our strong balance sheet and improved credit
performance. Revenue increased linked quarter on higher net interest
income, driven by growth in earning assets and increased investment in
our securities portfolio, as well as solid mortgage banking results.
While expenses increased from second quarter, credit results improved
from the prior period led by strong performance in consumer real estate
and improvements in our oil and gas portfolio. Capital remained strong
and our net payout ratio5 was 61 percent in the quarter, as
we returned $3.2 billion to shareholders through common stock dividends
and net share repurchases. We will continue to monitor impacts from the
recent sales practice settlements to our business activity levels.”
Net Interest Income
Net interest income in third quarter 2016 increased $219 million from
second quarter 2016 to $12.0 billion, primarily due to growth in
investment securities, loans, trading assets and mortgages
held-for-sale. The third quarter also included one additional day,
accounting for approximately one third of the increase in net interest
income relative to the second quarter. The benefit to net interest
income from asset growth was partially offset by increased interest
expense from higher debt balances and a modest increase in commercial
deposit costs.
Net interest margin was 2.82 percent, down 4 basis points from second
quarter 2016 primarily due to growth in long-term debt and deposits,
partially offset by the benefit of earning asset growth.
Noninterest Income
Noninterest income in the third quarter was $10.4 billion, in line with
second quarter 2016. Third quarter noninterest income reflected strong
mortgage banking results, as well as growth in trust and investment
fees, higher gains from trading activities driven by higher deferred
compensation plan investment results (largely offset in employee
benefits expense) and higher service charges on deposit accounts. These
increases were offset by a decline in other income, which in the second
quarter included a $290 million gain from the sale of our health benefit
services business, and lower gains on debt securities and equity
investments. Equity gains in third quarter 2016 were down $780 million
from an elevated level in third quarter 2015.
Trust and investment fees were $3.6 billion, up $66 million from the
prior quarter, primarily due to higher asset-based fees and higher trust
and investment management fees.
Mortgage banking noninterest income was $1.7 billion, up $253 million
from second quarter 2016, driven by net gains on mortgage loan
origination/sales activities. Residential mortgage loan originations
were $70 billion in the third quarter, up from $63 billion in the second
quarter. The production margin on residential held-for-sale mortgage
loan originations6 was 1.81 percent, up from 1.66 percent in
second quarter.
Noninterest Expense
Noninterest expense in the third quarter was $13.3 billion, compared
with $12.9 billion in the prior quarter. Third quarter expenses included
increased operating losses, reflecting higher litigation accruals, as
well as higher salaries, a $107 million donation to the Wells Fargo
Foundation and higher FDIC insurance expense. These increases were
partially offset by gains on sales of foreclosed assets, as well as
lower incentive compensation, and advertising and promotion. The
efficiency ratio was 59.4 percent in third quarter 2016, compared with
58.1 percent in the prior quarter. The Company expects the efficiency
ratio to remain at an elevated level.
Loans
Total loans were $961.3 billion at September 30, 2016, up $4.2 billion
from June 30, 2016. Loan growth was driven by growth in commercial
loans, including real estate mortgage and commercial and industrial, as
well as growth in consumer loans, including real estate 1-4 family first
mortgage, credit card and automobile. Total average loans were $957.5
billion in the third quarter, up $6.7 billion from the prior quarter.
|
Period-End Loan Balances
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Commercial
|
|
|
$
|
496,454
|
|
|
494,538
|
|
|
488,205
|
|
|
456,583
|
|
|
447,338
|
Consumer
|
|
|
|
464,872
|
|
|
462,619
|
|
|
459,053
|
|
|
459,976
|
|
|
455,895
|
Total loans
|
|
|
$
|
961,326
|
|
|
957,157
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
Change from prior quarter
|
|
|
$
|
4,169
|
|
|
9,899
|
|
|
30,699
|
|
|
13,326
|
|
|
14,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
Investment securities were $390.8 billion at September 30, 2016, up
$37.4 billion from second quarter, as approximately $57 billion of
purchases, predominantly federal agency mortgage-backed securities in
our available-for-sale portfolio, were partially offset by run-off,
including accelerated prepayments of investment securities, and sales.
Net unrealized available-for-sale securities gains of $4.5 billion at
September 30, 2016, declined $63 million from June 30, 2016, as modestly
higher interest rates were partially offset by tighter credit spreads.
Deposits
Total average deposits for third quarter 2016 were $1.3 trillion, up 2
percent from the prior quarter, driven by both commercial and consumer
growth. The average deposit cost for third quarter 2016 was 11 basis
points, flat compared with the prior quarter.
Capital
Capital levels remained strong in the third quarter, with a Common
Equity Tier 1 ratio (fully phased-in) of 10.7 percent3,
compared with 10.6 percent in the prior quarter. In third quarter 2016,
the Company repurchased 38.3 million shares of its common stock,
contributing to a net reduction in period-end common shares outstanding
of 24.6 million shares. The Company paid a quarterly common stock
dividend of $0.38 per share, up from $0.375 per share a year ago.
Credit Quality
“Credit results improved in the third quarter as our quarterly loss rate
decreased to 0.33 percent (annualized),” said Chief Risk Officer Mike
Loughlin. “The loan portfolio continued to perform well, led by strong
performance in consumer real estate. Oil and gas portfolio performance
during the quarter improved with lower credit losses and improved
portfolio quality. The allowance for credit losses in the third quarter
remained unchanged from the second quarter. 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 0.33 percent (annualized) reflected
commercial losses of 0.17 percent and consumer losses of 0.51 percent.
Credit losses were $805 million in third quarter 2016, down $119
million, or 13 percent, from second quarter 2016. The decline was
primarily due to a $94 million decrease in oil and gas losses. Consumer
losses increased $23 million, driven by a $47 million increase in
automobile losses from seasonally low losses in the second quarter,
partially offset by a decrease in credit card losses of $25 million.
|
|
Net Loan Charge-Offs
|
|
|
|
|
Quarter ended
|
|
|
|
|
September 30, 2016
|
|
|
|
June 30, 2016
|
|
|
|
March 31, 2016
|
|
|
|
|
Net loan
|
|
|
|
As a % of
|
|
|
|
Net loan
|
|
|
|
As a % of
|
|
|
|
Net loan
|
|
|
|
As a % of
|
|
|
|
|
charge-
|
|
|
|
average
|
|
|
|
charge-
|
|
|
|
average
|
|
|
|
charge-
|
|
|
|
average
|
|
($ in millions)
|
|
|
offs
|
|
|
|
loans (a)
|
|
|
|
offs
|
|
|
|
loans (a)
|
|
|
|
offs
|
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
259
|
|
|
|
0.32
|
%
|
|
|
$
|
368
|
|
|
|
0.46
|
%
|
|
|
$
|
273
|
|
|
|
0.36
|
%
|
Real estate mortgage
|
|
|
|
(28
|
)
|
|
|
(0.09
|
)
|
|
|
|
(20
|
)
|
|
|
(0.06
|
)
|
|
|
|
(29
|
)
|
|
|
(0.10
|
)
|
Real estate construction
|
|
|
|
(18
|
)
|
|
|
(0.32
|
)
|
|
|
|
(3
|
)
|
|
|
(0.06
|
)
|
|
|
|
(8
|
)
|
|
|
(0.13
|
)
|
Lease financing
|
|
|
|
2
|
|
|
|
0.04
|
|
|
|
|
12
|
|
|
|
0.27
|
|
|
|
|
1
|
|
|
|
0.01
|
|
Total commercial
|
|
|
|
215
|
|
|
|
0.17
|
|
|
|
|
357
|
|
|
|
0.29
|
|
|
|
|
237
|
|
|
|
0.20
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
20
|
|
|
|
0.03
|
|
|
|
|
14
|
|
|
|
0.02
|
|
|
|
|
48
|
|
|
|
0.07
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
49
|
|
|
|
0.40
|
|
|
|
|
62
|
|
|
|
0.49
|
|
|
|
|
74
|
|
|
|
0.57
|
|
Credit card
|
|
|
|
245
|
|
|
|
2.82
|
|
|
|
|
270
|
|
|
|
3.25
|
|
|
|
|
262
|
|
|
|
3.16
|
|
Automobile
|
|
|
|
137
|
|
|
|
0.87
|
|
|
|
|
90
|
|
|
|
0.59
|
|
|
|
|
127
|
|
|
|
0.85
|
|
Other revolving credit and installment
|
|
|
|
139
|
|
|
|
1.40
|
|
|
|
|
131
|
|
|
|
1.32
|
|
|
|
|
138
|
|
|
|
1.42
|
|
Total consumer
|
|
|
|
590
|
|
|
|
0.51
|
|
|
|
|
567
|
|
|
|
0.49
|
|
|
|
|
649
|
|
|
|
0.57
|
|
Total
|
|
|
$
|
805
|
|
|
|
0.33
|
%
|
|
|
$
|
924
|
|
|
|
0.39
|
%
|
|
|
$
|
886
|
|
|
|
0.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation on page 31 of the accounting for
purchased credit-impaired (PCI) loans and the impact on selected
financial ratios.
|
|
|
|
Nonperforming Assets
Nonperforming assets decreased $1.1 billion from second quarter 2016 to
$12.0 billion. Nonaccrual loans decreased $977 million from second
quarter to $11.0 billion led by a $732 million decrease in consumer
nonaccruals. Foreclosed assets of $1.0 billion were down $97 million
from second quarter 2016.
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
September 30, 2016
|
|
|
|
June 30, 2016
|
|
|
|
March 31, 2016
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
|
total
|
|
|
|
Total
|
|
|
|
total
|
|
|
|
Total
|
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
|
loans
|
|
|
|
balances
|
|
|
|
loans
|
|
|
|
balances
|
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
3,331
|
|
|
|
1.03
|
%
|
|
|
$
|
3,464
|
|
|
|
1.07
|
%
|
|
|
$
|
2,911
|
|
|
|
0.91
|
%
|
Real estate mortgage
|
|
|
|
780
|
|
|
|
0.60
|
|
|
|
|
872
|
|
|
|
0.68
|
|
|
|
|
896
|
|
|
|
0.72
|
|
Real estate construction
|
|
|
|
59
|
|
|
|
0.25
|
|
|
|
|
59
|
|
|
|
0.25
|
|
|
|
|
63
|
|
|
|
0.27
|
|
Lease financing
|
|
|
|
92
|
|
|
|
0.49
|
|
|
|
|
112
|
|
|
|
0.59
|
|
|
|
|
99
|
|
|
|
0.52
|
|
Total commercial
|
|
|
|
4,262
|
|
|
|
0.86
|
|
|
|
|
4,507
|
|
|
|
0.91
|
|
|
|
|
3,969
|
|
|
|
0.81
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
5,310
|
|
|
|
1.91
|
|
|
|
|
5,970
|
|
|
|
2.15
|
|
|
|
|
6,683
|
|
|
|
2.43
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
1,259
|
|
|
|
2.62
|
|
|
|
|
1,330
|
|
|
|
2.67
|
|
|
|
|
1,421
|
|
|
|
2.77
|
|
Automobile
|
|
|
|
108
|
|
|
|
0.17
|
|
|
|
|
111
|
|
|
|
0.18
|
|
|
|
|
114
|
|
|
|
0.19
|
|
Other revolving credit and installment
|
|
|
|
47
|
|
|
|
0.12
|
|
|
|
|
45
|
|
|
|
0.11
|
|
|
|
|
47
|
|
|
|
0.12
|
|
Total consumer
|
|
|
|
6,724
|
|
|
|
1.45
|
|
|
|
|
7,456
|
|
|
|
1.61
|
|
|
|
|
8,265
|
|
|
|
1.80
|
|
Total nonaccrual loans
|
|
|
|
10,986
|
|
|
|
1.14
|
|
|
|
|
11,963
|
|
|
|
1.25
|
|
|
|
|
12,234
|
|
|
|
1.29
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
|
282
|
|
|
|
|
|
|
|
|
321
|
|
|
|
|
|
|
|
|
386
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
|
738
|
|
|
|
|
|
|
|
|
796
|
|
|
|
|
|
|
|
|
893
|
|
|
|
|
|
Total foreclosed assets
|
|
|
|
1,020
|
|
|
|
|
|
|
|
|
1,117
|
|
|
|
|
|
|
|
|
1,279
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
12,006
|
|
|
|
1.25
|
%
|
|
|
$
|
13,080
|
|
|
|
1.37
|
%
|
|
|
$
|
13,513
|
|
|
|
1.43
|
%
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(977
|
)
|
|
|
|
|
|
|
$
|
(271
|
)
|
|
|
|
|
|
|
$
|
852
|
|
|
|
|
|
Total nonperforming assets
|
|
|
|
(1,074
|
)
|
|
|
|
|
|
|
|
(433
|
)
|
|
|
|
|
|
|
|
706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $853 million at September 30, 2016, up from
$788 million at June 30, 2016. 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 $11.2 billion
at September 30, 2016, down from $11.6 billion at June 30, 2016.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.7 billion at September 30, 2016, which was
unchanged from June 30, 2016. The allowance coverage for total loans was
1.32 percent, compared with 1.33 percent in second quarter 2016. The
allowance covered 4.0 times annualized third quarter net charge-offs,
compared with 3.4 times in the prior quarter. The allowance coverage for
nonaccrual loans was 116 percent at September 30, 2016, compared with
107 percent at June 30, 2016. “We believe the allowance was appropriate
for losses inherent in the loan portfolio at September 30, 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
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
Community Banking
|
|
|
$
|
3,227
|
|
|
3,179
|
|
|
3,560
|
Wholesale Banking
|
|
|
|
2,047
|
|
|
2,073
|
|
|
1,925
|
Wealth and Investment Management
|
|
|
|
677
|
|
|
584
|
|
|
606
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
(in millions)
|
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
Total revenue
|
|
|
$
|
12,387
|
|
|
12,204
|
|
|
12,933
|
Provision for credit losses
|
|
|
|
651
|
|
|
689
|
|
|
668
|
Noninterest expense
|
|
|
|
6,953
|
|
|
6,648
|
|
|
6,778
|
Segment net income
|
|
|
|
3,227
|
|
|
3,179
|
|
|
3,560
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
489.2
|
|
|
485.7
|
|
|
477.0
|
Average assets
|
|
|
|
993.6
|
|
|
967.6
|
|
|
898.9
|
Average deposits
|
|
|
|
708.0
|
|
|
703.7
|
|
|
655.6
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.2 billion, up $48 million,
or 2 percent, from second quarter 2016. Revenue of $12.4 billion
increased $183 million, or 1 percent, from second quarter 2016 due to
higher net interest income, mortgage banking revenue, trust and
investment fees, deposit service charges, and other income (hedge
ineffectiveness), partially offset by lower market sensitive revenue,
primarily lower gains on sales of debt securities and equity
investments. Noninterest expense increased $305 million, or 5 percent,
compared with second quarter 2016, due to higher operating losses and a
donation to the Wells Fargo Foundation, partially offset by lower
personnel expense. The provision for credit losses decreased $38 million
from the prior quarter.
Net income was down $333 million, or 9 percent, from third quarter 2015.
Revenue decreased $546 million, or 4 percent, compared with a year ago
due to lower gains on equity investments, partially offset by higher
deferred compensation plan investment results (offset in employee
benefits expense), higher gains on sales of debt securities, card fees,
and deposit service charges. Noninterest expense increased $175 million,
or 3 percent, from a year ago driven by higher deferred compensation
plan expense (offset in trading revenue) and operating losses, partially
offset by lower foreclosed assets expense. The provision for credit
losses decreased $17 million from a year ago.
Regional Banking
-
Retail Banking
-
Primary consumer checking customers7 up 4.7 percent
year-over-year8
-
Primary consumer checking customers7 in September up
4.5 percent year-over-year
-
Debit card purchase volume9 of $76.0 billion in third
quarter, up 8 percent year-over-year
-
Retail Banking household cross-sell ratio of 6.25 products per
household, compared with 6.33 year-over-year8,10
-
Small Business Banking
-
For the 14th consecutive year, America’s #1 small
business lender and #1 lender to small businesses in low- and
moderate-income areas (loans under $1 million; 2015 Community
Reinvestment Act data, released August 2016)
-
As part of the Wells Fargo Works for Small BusinessSM
initiative, the Company launched the new Business Credit Center at
wellsfargoworks.com to help business owners better understand how
to prepare for and manage credit
-
Digital Banking
-
27.4 million digital (online and mobile) active customers,
including 18.8 million mobile active users8,11
-
#1 overall performance in Keynote Mobile Banking Scorecard; also
best in “Functionality,” “Ease of Use,” and “Best App & Mobile Web
Experiences” (September 2016)
Consumer Lending Group
-
Home Lending
-
Originations of $70 billion, up from $63 billion in prior quarter
-
Applications of $100 billion, up from $95 billion in prior quarter
-
Application pipeline of $50 billion at quarter end, up from $47
billion at June 30, 2016
-
Consumer Credit
-
Credit card purchase volume of $19.6 billion in third quarter, up
8 percent year-over-year
-
Credit card penetration in retail banking households rose to 45.4
percent, up from 44.8 percent in prior year8,12
-
Auto originations of $8.1 billion in third quarter, down 2 percent
from prior quarter and 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
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
Total revenue
|
|
|
$
|
7,147
|
|
|
7,284
|
|
|
6,326
|
Provision for credit losses
|
|
|
|
157
|
|
|
385
|
|
|
36
|
Noninterest expense
|
|
|
|
4,120
|
|
|
4,036
|
|
|
3,503
|
Segment net income
|
|
|
|
2,047
|
|
|
2,073
|
|
|
1,925
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
454.3
|
|
|
451.4
|
|
|
405.6
|
Average assets
|
|
|
|
794.2
|
|
|
772.6
|
|
|
739.1
|
Average deposits
|
|
|
|
441.2
|
|
|
425.8
|
|
|
442.0
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $2.0 billion, down $26 million,
or 1 percent, from second quarter 2016. Revenue of $7.1 billion
decreased $137 million, or 2 percent, from prior quarter due to the $290
million gain on the sale of our health benefit services business in
second quarter 2016, partially offset by higher net interest income,
increased mortgage banking fees in multi-family capital and structured
real estate, as well as higher commercial real estate brokerage fees.
Noninterest expense increased $84 million, or 2 percent, from the prior
quarter primarily due to higher FDIC insurance expense, personnel
expense and operating losses. The provision for credit losses decreased
$228 million from the prior quarter on lower oil and gas related net
charge-offs.
Net income was up $122 million, or 6 percent, from third quarter 2015.
Revenue increased $821 million, or 13 percent, from third quarter 2015,
on strong loan growth, including the GE Capital portfolio acquisitions,
higher customer accommodation trading, strong mortgage banking fees and
increased investment banking fees, partially offset by lower insurance
fees driven by the sale of our crop insurance business in first quarter
2016 and lower gains on debt securities and equity investments.
Noninterest expense increased $617 million, or 18 percent, from a year
ago primarily due to the GE Capital portfolio acquisitions and higher
personnel expenses related to growth initiatives, compliance, and
regulatory requirements. The provision for credit losses increased
$121 million from a year ago primarily due to higher oil and gas net
charge-offs.
-
Average loans increased 12 percent from third 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 portfolio acquisitions
-
Treasury management revenue up 2 percent from third 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
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
Total revenue
|
|
|
$
|
4,099
|
|
|
3,919
|
|
|
3,878
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
4
|
|
|
2
|
|
|
(6
|
)
|
Noninterest expense
|
|
|
|
2,999
|
|
|
2,976
|
|
|
2,909
|
|
Segment net income
|
|
|
|
677
|
|
|
584
|
|
|
606
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
68.4
|
|
|
66.7
|
|
|
61.1
|
|
Average assets
|
|
|
|
212.1
|
|
|
205.3
|
|
|
192.6
|
|
Average deposits
|
|
|
|
189.2
|
|
|
182.5
|
|
|
172.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $677 million, up
$93 million, or 16 percent, from second quarter 2016. Revenue of
$4.1 billion increased $180 million, or 5 percent, from the prior
quarter, primarily due to higher asset-based fees, net interest income,
and higher deferred compensation plan investment results (offset in
employee benefits expense). Noninterest expense increased $23 million,
or 1 percent, from the prior quarter, largely driven by higher deferred
compensation plan expense (offset in trading revenue) and higher broker
commissions. The provision for credit losses increased $2 million from
second quarter 2016.
Net income was up $71 million, or 12 percent, from third quarter 2015.
Revenue increased $221 million, or 6 percent, from a year ago primarily
driven by higher deferred compensation plan investment results (offset
in employee benefits expense) and higher net interest income, as average
loans increased $7.3 billion, or 12 percent, to $68.4 billion.
Noninterest expense increased $90 million, or 3 percent, from a year
ago, primarily due to higher deferred compensation plan expense (offset
in trading revenue), partially offset by lower operating losses. The
provision for credit losses increased $10 million from a year ago.
Retail Brokerage
-
Client assets of $1.5 trillion, up 10 percent from prior year
-
Advisory assets of $458 billion, up 12 percent from prior year,
primarily driven by higher market valuations and positive net flows
-
Strong loan growth, with average balances up 18 percent from prior
year largely due to continued growth in non-conforming mortgage loans
and security-based lending
Wealth Management
-
Client assets of $230 billion, up 5 percent from prior year
-
Average loan balances up 9 percent over prior year primarily driven by
continued growth in non-conforming mortgage loans, commercial loans
and security-based lending
Retirement
-
IRA assets of $379 billion, up 10 percent from prior year
-
Institutional Retirement plan assets of $347 billion, up 5 percent
from prior year
Asset Management
-
Total assets under management of $498 billion, up 4 percent from prior
year primarily due to higher market valuations, and positive fixed
income and money market net inflows, partially offset by equity
outflows
Conference Call
The Company will host a live conference call on Friday, October 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/rt/wells_fargo_ao~101416.
A replay of the conference call will be available beginning at 10 a.m.
PT (1 p.m. ET) on Friday, October 14 through Friday, October 28. Please
dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and
enter Conference ID #31498547. The replay will also be available online
at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/rt/wells_fargo_ao~101416.
|
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 36 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
|
|
Additional information is provided in our 3Q16 Quarterly Supplement.
|
5
|
|
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.
|
6
|
|
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 41 for more
information.
|
7
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
8
|
|
Data as of August 2016, comparisons with August 2015.
|
9
|
|
Combined consumer and business debit card purchase volume dollars.
|
10
|
|
Effective second quarter 2016, Retail Banking households reflect
only those households that maintain a retail checking account, which
we believe provides the foundation for long-term retail banking
relationships. Additionally, we updated the products included to
capture business products in addition to retail products that have
the potential for revenue generation and long-term viability.
Products and services that generally do not meet these criteria –
such as ATM cards, online banking, bill pay and direct deposit – are
not included. This change in methodology was the result of a
long-term evaluation spanning 18 months to best align our cross-sell
metric with our strategic focus of long-term retail banking
relationships. Prior period metrics have been revised to conform
with the updated methodology. Cross-sell metrics have not been
adjusted to reflect the de minimis impact of approximately 2.1
million potentially unauthorized accounts identified in a review by
an independent consulting firm. The maximum impact of these accounts
to this reported metric in any one quarter was 0.02 products per
household, or 0.3 percent.
|
11
|
|
Primarily includes retail banking, consumer lending, small business
and business banking customers.
|
12
|
|
Credit card penetration defined as the percentage of Retail Banking
households that have a credit card with Wells Fargo. Effective
second quarter 2016, Retail Banking households reflect only those
households that maintain a retail checking account, which we believe
provides the foundation for long-term retail banking relationships.
This change in methodology was the result of a long-term evaluation
spanning 18 months to best align our cross-sell metric with our
strategic focus of long-term retail banking relationships. Prior
period metrics have been revised to conform with the updated
methodology. Credit card household penetration rates have not been
adjusted to reflect the impact of the approximately 565,000
potentially unauthorized accounts identified by an independent
consulting firm because the maximum impact in any one quarter was
not greater than 86 basis points, or approximately 2 percent.
|
|
|
|
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 $1.9 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through more than 8,600 locations, 13,000 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 42 countries and
territories 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. 27 on Fortune’s 2016 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
|
|
|
|
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|
Pages
|
|
|
|
|
|
Summary Information
|
|
|
|
|
Summary Financial Data
|
|
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|
17
|
|
|
|
|
|
Income
|
|
|
|
|
Consolidated Statement of Income
|
|
|
|
19
|
Consolidated Statement of Comprehensive Income
|
|
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21
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
|
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21
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Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
|
|
22
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
|
|
25
|
Noninterest Income and Noninterest Expense
|
|
|
|
27
|
|
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|
|
Balance Sheet
|
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|
|
|
Consolidated Balance Sheet
|
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30
|
Investment Securities
|
|
|
|
32
|
|
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|
|
|
Loans
|
|
|
|
|
Loans
|
|
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|
32
|
Nonperforming Assets
|
|
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|
33
|
Loans 90 Days or More Past Due and Still Accruing
|
|
|
|
34
|
Purchased Credit-Impaired Loans
|
|
|
|
35
|
Pick-A-Pay Portfolio
|
|
|
|
36
|
Changes in Allowance for Credit Losses
|
|
|
|
38
|
|
|
|
|
|
Equity
|
|
|
|
|
Tangible Common Equity
|
|
|
|
39
|
Common Equity Tier 1 Under Basel III
|
|
|
|
40
|
|
|
|
|
|
Operating Segments
|
|
|
|
|
Operating Segment Results
|
|
|
|
41
|
|
|
|
|
|
Other
|
|
|
|
|
Mortgage Servicing and other related data
|
|
|
|
43
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Sep 30, 2016 from
|
|
|
|
Nine months ended
|
|
|
|
|
($ in millions, except per share amounts)
|
|
|
Sep 30, 2016
|
|
|
|
Jun 30, 2016
|
|
|
Sep 30, 2015
|
|
|
|
Jun 30, 2016
|
|
|
|
Sep 30, 2015
|
|
|
|
Sep 30, 2016
|
|
|
|
Sep 30, 2015
|
|
|
|
% Change
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
|
5,558
|
|
|
5,796
|
|
|
|
2
|
%
|
|
|
(3
|
)
|
|
|
$
|
16,664
|
|
|
|
17,319
|
|
|
|
(4
|
)%
|
Wells Fargo net income applicable to common stock
|
|
|
|
5,243
|
|
|
|
5,173
|
|
|
5,443
|
|
|
|
1
|
|
|
|
(4
|
)
|
|
|
|
15,501
|
|
|
|
16,267
|
|
|
|
(5
|
)
|
Diluted earnings per common share
|
|
|
|
1.03
|
|
|
|
1.01
|
|
|
1.05
|
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
|
3.03
|
|
|
|
3.12
|
|
|
|
(3
|
)
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
1.17
|
%
|
|
|
1.20
|
|
|
1.32
|
|
|
|
(3
|
)
|
|
|
(11
|
)
|
|
|
|
1.19
|
%
|
|
|
1.34
|
|
|
|
(11
|
)
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
|
11.60
|
|
|
|
11.70
|
|
|
12.62
|
|
|
|
(1
|
)
|
|
|
(8
|
)
|
|
|
|
11.68
|
|
|
|
12.83
|
|
|
|
(9
|
)
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
|
13.96
|
|
|
|
14.15
|
|
|
15.19
|
|
|
|
(1
|
)
|
|
|
(8
|
)
|
|
|
|
14.08
|
|
|
|
15.46
|
|
|
|
(9
|
)
|
Efficiency ratio (2)
|
|
|
|
59.4
|
|
|
|
58.1
|
|
|
56.7
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
58.7
|
|
|
|
58.0
|
|
|
|
1
|
|
Total revenue
|
|
|
$
|
22,328
|
|
|
|
22,162
|
|
|
21,875
|
|
|
|
1
|
|
|
|
2
|
|
|
|
$
|
66,685
|
|
|
|
64,471
|
|
|
|
3
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
|
9,060
|
|
|
|
9,296
|
|
|
9,476
|
|
|
|
(3
|
)
|
|
|
(4
|
)
|
|
|
|
27,523
|
|
|
|
27,096
|
|
|
|
2
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.380
|
|
|
0.375
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
1.135
|
|
|
|
1.10
|
|
|
|
3
|
|
Average common shares outstanding
|
|
|
|
5,043.4
|
|
|
|
5,066.9
|
|
|
5,125.8
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
|
5,061.9
|
|
|
|
5,145.9
|
|
|
|
(2
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,094.6
|
|
|
|
5,118.1
|
|
|
5,193.8
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
|
5,118.2
|
|
|
|
5,220.3
|
|
|
|
(2
|
)
|
Average loans
|
|
|
$
|
957,484
|
|
|
|
950,751
|
|
|
895,095
|
|
|
|
1
|
|
|
|
7
|
|
|
|
$
|
945,197
|
|
|
|
876,384
|
|
|
|
8
|
|
Average assets
|
|
|
|
1,914,586
|
|
|
|
1,862,084
|
|
|
1,746,402
|
|
|
|
3
|
|
|
|
10
|
|
|
|
|
1,865,694
|
|
|
|
1,727,967
|
|
|
|
8
|
|
Average total deposits
|
|
|
|
1,261,527
|
|
|
|
1,236,658
|
|
|
1,198,874
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
1,239,287
|
|
|
|
1,186,412
|
|
|
|
4
|
|
Average consumer and small business banking deposits (4)
|
|
|
|
739,066
|
|
|
|
726,359
|
|
|
683,245
|
|
|
|
2
|
|
|
|
8
|
|
|
|
|
726,798
|
|
|
|
674,741
|
|
|
|
8
|
|
Net interest margin
|
|
|
|
2.82
|
%
|
|
|
2.86
|
|
|
2.96
|
|
|
|
(1
|
)
|
|
|
(5
|
)
|
|
|
|
2.86
|
%
|
|
|
2.96
|
|
|
|
(3
|
)
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
390,832
|
|
|
|
353,426
|
|
|
345,074
|
|
|
|
11
|
|
|
|
13
|
|
|
|
$
|
390,832
|
|
|
|
345,074
|
|
|
|
13
|
|
Loans
|
|
|
|
961,326
|
|
|
|
957,157
|
|
|
903,233
|
|
|
|
—
|
|
|
|
6
|
|
|
|
|
961,326
|
|
|
|
903,233
|
|
|
|
6
|
|
Allowance for loan losses
|
|
|
|
11,583
|
|
|
|
11,664
|
|
|
11,659
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
|
11,583
|
|
|
|
11,659
|
|
|
|
(1
|
)
|
Goodwill
|
|
|
|
26,688
|
|
|
|
26,963
|
|
|
25,684
|
|
|
|
(1
|
)
|
|
|
4
|
|
|
|
|
26,688
|
|
|
|
25,684
|
|
|
|
4
|
|
Assets
|
|
|
|
1,942,124
|
|
|
|
1,889,235
|
|
|
1,751,265
|
|
|
|
3
|
|
|
|
11
|
|
|
|
|
1,942,124
|
|
|
|
1,751,265
|
|
|
|
11
|
|
Deposits
|
|
|
|
1,275,894
|
|
|
|
1,245,473
|
|
|
1,202,179
|
|
|
|
2
|
|
|
|
6
|
|
|
|
|
1,275,894
|
|
|
|
1,202,179
|
|
|
|
6
|
|
Common stockholders' equity
|
|
|
|
179,916
|
|
|
|
178,633
|
|
|
172,089
|
|
|
|
1
|
|
|
|
5
|
|
|
|
|
179,916
|
|
|
|
172,089
|
|
|
|
5
|
|
Wells Fargo stockholders’ equity
|
|
|
|
203,028
|
|
|
|
201,745
|
|
|
193,051
|
|
|
|
1
|
|
|
|
5
|
|
|
|
|
203,028
|
|
|
|
193,051
|
|
|
|
5
|
|
Total equity
|
|
|
|
203,958
|
|
|
|
202,661
|
|
|
194,043
|
|
|
|
1
|
|
|
|
5
|
|
|
|
|
203,958
|
|
|
|
194,043
|
|
|
|
5
|
|
Tangible common equity (1)
|
|
|
|
149,829
|
|
|
|
148,110
|
|
|
143,352
|
|
|
|
1
|
|
|
|
5
|
|
|
|
|
149,829
|
|
|
|
143,352
|
|
|
|
5
|
|
Common shares outstanding
|
|
|
|
5,023.9
|
|
|
|
5,048.5
|
|
|
5,108.5
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
|
5,023.9
|
|
|
|
5,108.5
|
|
|
|
(2
|
)
|
Book value per common share (5)
|
|
|
$
|
35.81
|
|
|
|
35.38
|
|
|
33.69
|
|
|
|
1
|
|
|
|
6
|
|
|
|
$
|
35.81
|
|
|
|
33.69
|
|
|
|
6
|
|
Tangible book value per common share (1)(5)
|
|
|
|
29.82
|
|
|
|
29.34
|
|
|
28.06
|
|
|
|
2
|
|
|
|
6
|
|
|
|
|
29.82
|
|
|
|
28.06
|
|
|
|
6
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
51.00
|
|
|
|
51.41
|
|
|
58.77
|
|
|
|
(1
|
)
|
|
|
(13
|
)
|
|
|
|
53.27
|
|
|
|
58.77
|
|
|
|
(9
|
)
|
Low
|
|
|
|
44.10
|
|
|
|
44.50
|
|
|
47.75
|
|
|
|
(1
|
)
|
|
|
(8
|
)
|
|
|
|
44.10
|
|
|
|
47.75
|
|
|
|
(8
|
)
|
Period end
|
|
|
|
44.28
|
|
|
|
47.33
|
|
|
51.35
|
|
|
|
(6
|
)
|
|
|
(14
|
)
|
|
|
|
44.28
|
|
|
|
51.35
|
|
|
|
(14
|
)
|
Team members (active, full-time equivalent)
|
|
|
|
268,800
|
|
|
|
267,900
|
|
|
265,200
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
268,800
|
|
|
|
265,200
|
|
|
|
1
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
(4) Consumer and small business banking deposits are total deposits
excluding mortgage escrow and wholesale deposits.
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
Quarter ended
|
|
($ in millions, except per share amounts)
|
|
|
Sep 30, 2016
|
|
|
|
Jun 30, 2016
|
|
|
Mar 31, 2016
|
|
|
Dec 31, 2015
|
|
|
Sep 30, 2015
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
|
5,558
|
|
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
Wells Fargo net income applicable to common stock
|
|
|
|
5,243
|
|
|
|
5,173
|
|
|
5,085
|
|
|
5,203
|
|
|
5,443
|
|
Diluted earnings per common share
|
|
|
|
1.03
|
|
|
|
1.01
|
|
|
0.99
|
|
|
1.00
|
|
|
1.05
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
1.17
|
%
|
|
|
1.20
|
|
|
1.21
|
|
|
1.24
|
|
|
1.32
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
|
11.60
|
|
|
|
11.70
|
|
|
11.75
|
|
|
11.93
|
|
|
12.62
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
|
13.96
|
|
|
|
14.15
|
|
|
14.15
|
|
|
14.30
|
|
|
15.19
|
|
Efficiency ratio (2)
|
|
|
|
59.4
|
|
|
|
58.1
|
|
|
58.7
|
|
|
58.4
|
|
|
56.7
|
|
Total revenue
|
|
|
$
|
22,328
|
|
|
|
22,162
|
|
|
22,195
|
|
|
21,586
|
|
|
21,875
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
|
9,060
|
|
|
|
9,296
|
|
|
9,167
|
|
|
8,987
|
|
|
9,476
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.380
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
Average common shares outstanding
|
|
|
|
5,043.4
|
|
|
|
5,066.9
|
|
|
5,075.7
|
|
|
5,108.5
|
|
|
5,125.8
|
|
Diluted average common shares outstanding
|
|
|
|
5,094.6
|
|
|
|
5,118.1
|
|
|
5,139.4
|
|
|
5,177.9
|
|
|
5,193.8
|
|
Average loans
|
|
|
$
|
957,484
|
|
|
|
950,751
|
|
|
927,220
|
|
|
912,280
|
|
|
895,095
|
|
Average assets
|
|
|
|
1,914,586
|
|
|
|
1,862,084
|
|
|
1,819,875
|
|
|
1,787,287
|
|
|
1,746,402
|
|
Average total deposits
|
|
|
|
1,261,527
|
|
|
|
1,236,658
|
|
|
1,219,430
|
|
|
1,216,809
|
|
|
1,198,874
|
|
Average consumer and small business banking deposits (4)
|
|
|
|
739,066
|
|
|
|
726,359
|
|
|
714,837
|
|
|
696,484
|
|
|
683,245
|
|
Net interest margin
|
|
|
|
2.82
|
%
|
|
|
2.86
|
|
|
2.90
|
|
|
2.92
|
|
|
2.96
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
390,832
|
|
|
|
353,426
|
|
|
334,899
|
|
|
347,555
|
|
|
345,074
|
|
Loans
|
|
|
|
961,326
|
|
|
|
957,157
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
Allowance for loan losses
|
|
|
|
11,583
|
|
|
|
11,664
|
|
|
11,621
|
|
|
11,545
|
|
|
11,659
|
|
Goodwill
|
|
|
|
26,688
|
|
|
|
26,963
|
|
|
27,003
|
|
|
25,529
|
|
|
25,684
|
|
Assets
|
|
|
|
1,942,124
|
|
|
|
1,889,235
|
|
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
Deposits
|
|
|
|
1,275,894
|
|
|
|
1,245,473
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1,202,179
|
|
Common stockholders' equity
|
|
|
|
179,916
|
|
|
|
178,633
|
|
|
175,534
|
|
|
172,036
|
|
|
172,089
|
|
Wells Fargo stockholders’ equity
|
|
|
|
203,028
|
|
|
|
201,745
|
|
|
197,496
|
|
|
192,998
|
|
|
193,051
|
|
Total equity
|
|
|
|
203,958
|
|
|
|
202,661
|
|
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
Tangible common equity (1)
|
|
|
|
149,829
|
|
|
|
148,110
|
|
|
144,679
|
|
|
143,337
|
|
|
143,352
|
|
Common shares outstanding
|
|
|
|
5,023.9
|
|
|
|
5,048.5
|
|
|
5,075.9
|
|
|
5,092.1
|
|
|
5,108.5
|
|
Book value per common share (5)
|
|
|
$
|
35.81
|
|
|
|
35.38
|
|
|
34.58
|
|
|
33.78
|
|
|
33.69
|
|
Tangible book value per common share (1)(5)
|
|
|
|
29.82
|
|
|
|
29.34
|
|
|
28.50
|
|
|
28.15
|
|
|
28.06
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
51.00
|
|
|
|
51.41
|
|
|
53.27
|
|
|
56.34
|
|
|
58.77
|
|
Low
|
|
|
|
44.10
|
|
|
|
44.50
|
|
|
44.50
|
|
|
49.51
|
|
|
47.75
|
|
Period end
|
|
|
|
44.28
|
|
|
|
47.33
|
|
|
48.36
|
|
|
54.36
|
|
|
51.35
|
|
Team members (active, full-time equivalent)
|
|
|
|
268,800
|
|
|
|
267,900
|
|
|
268,600
|
|
|
264,700
|
|
|
265,200
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended September 30,
|
|
|
|
%
|
|
|
|
Nine months ended September 30,
|
|
|
|
%
|
|
(in millions, except per share amounts)
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
593
|
|
|
|
485
|
|
|
|
22
|
%
|
|
|
$
|
1,761
|
|
|
|
1,413
|
|
|
|
25
|
%
|
Investment securities
|
|
|
|
2,298
|
|
|
|
2,289
|
|
|
|
—
|
|
|
|
|
6,736
|
|
|
|
6,614
|
|
|
|
2
|
|
Mortgages held for sale
|
|
|
|
207
|
|
|
|
223
|
|
|
|
(7
|
)
|
|
|
|
549
|
|
|
|
609
|
|
|
|
(10
|
)
|
Loans held for sale
|
|
|
|
2
|
|
|
|
4
|
|
|
|
(50
|
)
|
|
|
|
7
|
|
|
|
14
|
|
|
|
(50
|
)
|
Loans
|
|
|
|
9,978
|
|
|
|
9,216
|
|
|
|
8
|
|
|
|
|
29,377
|
|
|
|
27,252
|
|
|
|
8
|
|
Other interest income
|
|
|
|
409
|
|
|
|
228
|
|
|
|
79
|
|
|
|
|
1,175
|
|
|
|
732
|
|
|
|
61
|
|
Total interest income
|
|
|
|
13,487
|
|
|
|
12,445
|
|
|
|
8
|
|
|
|
|
39,605
|
|
|
|
36,634
|
|
|
|
8
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
356
|
|
|
|
232
|
|
|
|
53
|
|
|
|
|
995
|
|
|
|
722
|
|
|
|
38
|
|
Short-term borrowings
|
|
|
|
85
|
|
|
|
12
|
|
|
|
608
|
|
|
|
|
229
|
|
|
|
51
|
|
|
|
349
|
|
Long-term debt
|
|
|
|
1,006
|
|
|
|
655
|
|
|
|
54
|
|
|
|
|
2,769
|
|
|
|
1,879
|
|
|
|
47
|
|
Other interest expense
|
|
|
|
88
|
|
|
|
89
|
|
|
|
(1
|
)
|
|
|
|
260
|
|
|
|
269
|
|
|
|
(3
|
)
|
Total interest expense
|
|
|
|
1,535
|
|
|
|
988
|
|
|
|
55
|
|
|
|
|
4,253
|
|
|
|
2,921
|
|
|
|
46
|
|
Net interest income
|
|
|
|
11,952
|
|
|
|
11,457
|
|
|
|
4
|
|
|
|
|
35,352
|
|
|
|
33,713
|
|
|
|
5
|
|
Provision for credit losses
|
|
|
|
805
|
|
|
|
703
|
|
|
|
15
|
|
|
|
|
2,965
|
|
|
|
1,611
|
|
|
|
84
|
|
Net interest income after provision for credit losses
|
|
|
|
11,147
|
|
|
|
10,754
|
|
|
|
4
|
|
|
|
|
32,387
|
|
|
|
32,102
|
|
|
|
1
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,370
|
|
|
|
1,335
|
|
|
|
3
|
|
|
|
|
4,015
|
|
|
|
3,839
|
|
|
|
5
|
|
Trust and investment fees
|
|
|
|
3,613
|
|
|
|
3,570
|
|
|
|
1
|
|
|
|
|
10,545
|
|
|
|
10,957
|
|
|
|
(4
|
)
|
Card fees
|
|
|
|
997
|
|
|
|
953
|
|
|
|
5
|
|
|
|
|
2,935
|
|
|
|
2,754
|
|
|
|
7
|
|
Other fees
|
|
|
|
926
|
|
|
|
1,099
|
|
|
|
(16
|
)
|
|
|
|
2,765
|
|
|
|
3,284
|
|
|
|
(16
|
)
|
Mortgage banking
|
|
|
|
1,667
|
|
|
|
1,589
|
|
|
|
5
|
|
|
|
|
4,679
|
|
|
|
4,841
|
|
|
|
(3
|
)
|
Insurance
|
|
|
|
293
|
|
|
|
376
|
|
|
|
(22
|
)
|
|
|
|
1,006
|
|
|
|
1,267
|
|
|
|
(21
|
)
|
Net gains (losses) from trading activities
|
|
|
|
415
|
|
|
|
(26
|
)
|
|
|
NM
|
|
|
|
|
943
|
|
|
|
515
|
|
|
|
83
|
|
Net gains on debt securities
|
|
|
|
106
|
|
|
|
147
|
|
|
|
(28
|
)
|
|
|
|
797
|
|
|
|
606
|
|
|
|
32
|
|
Net gains from equity investments
|
|
|
|
140
|
|
|
|
920
|
|
|
|
(85
|
)
|
|
|
|
573
|
|
|
|
1,807
|
|
|
|
(68
|
)
|
Lease income
|
|
|
|
534
|
|
|
|
189
|
|
|
|
183
|
|
|
|
|
1,404
|
|
|
|
476
|
|
|
|
195
|
|
Other
|
|
|
|
315
|
|
|
|
266
|
|
|
|
18
|
|
|
|
|
1,671
|
|
|
|
412
|
|
|
|
306
|
|
Total noninterest income
|
|
|
|
10,376
|
|
|
|
10,418
|
|
|
|
—
|
|
|
|
|
31,333
|
|
|
|
30,758
|
|
|
|
2
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,224
|
|
|
|
4,035
|
|
|
|
5
|
|
|
|
|
12,359
|
|
|
|
11,822
|
|
|
|
5
|
|
Commission and incentive compensation
|
|
|
|
2,520
|
|
|
|
2,604
|
|
|
|
(3
|
)
|
|
|
|
7,769
|
|
|
|
7,895
|
|
|
|
(2
|
)
|
Employee benefits
|
|
|
|
1,223
|
|
|
|
821
|
|
|
|
49
|
|
|
|
|
3,993
|
|
|
|
3,404
|
|
|
|
17
|
|
Equipment
|
|
|
|
491
|
|
|
|
459
|
|
|
|
7
|
|
|
|
|
1,512
|
|
|
|
1,423
|
|
|
|
6
|
|
Net occupancy
|
|
|
|
718
|
|
|
|
728
|
|
|
|
(1
|
)
|
|
|
|
2,145
|
|
|
|
2,161
|
|
|
|
(1
|
)
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
|
311
|
|
|
|
(4
|
)
|
|
|
|
891
|
|
|
|
935
|
|
|
|
(5
|
)
|
FDIC and other deposit assessments
|
|
|
|
310
|
|
|
|
245
|
|
|
|
27
|
|
|
|
|
815
|
|
|
|
715
|
|
|
|
14
|
|
Other
|
|
|
|
3,483
|
|
|
|
3,196
|
|
|
|
9
|
|
|
|
|
9,678
|
|
|
|
9,020
|
|
|
|
7
|
|
Total noninterest expense
|
|
|
|
13,268
|
|
|
|
12,399
|
|
|
|
7
|
|
|
|
|
39,162
|
|
|
|
37,375
|
|
|
|
5
|
|
Income before income tax expense
|
|
|
|
8,255
|
|
|
|
8,773
|
|
|
|
(6
|
)
|
|
|
|
24,558
|
|
|
|
25,485
|
|
|
|
(4
|
)
|
Income tax expense
|
|
|
|
2,601
|
|
|
|
2,790
|
|
|
|
(7
|
)
|
|
|
|
7,817
|
|
|
|
7,832
|
|
|
|
—
|
|
Net income before noncontrolling interests
|
|
|
|
5,654
|
|
|
|
5,983
|
|
|
|
(5
|
)
|
|
|
|
16,741
|
|
|
|
17,653
|
|
|
|
(5
|
)
|
Less: Net income from noncontrolling interests
|
|
|
|
10
|
|
|
|
187
|
|
|
|
(95
|
)
|
|
|
|
77
|
|
|
|
334
|
|
|
|
(77
|
)
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
|
5,796
|
|
|
|
(3
|
)
|
|
|
$
|
16,664
|
|
|
|
17,319
|
|
|
|
(4
|
)
|
Less: Preferred stock dividends and other
|
|
|
|
401
|
|
|
|
353
|
|
|
|
14
|
|
|
|
|
1,163
|
|
|
|
1,052
|
|
|
|
11
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,243
|
|
|
|
5,443
|
|
|
|
(4
|
)
|
|
|
$
|
15,501
|
|
|
|
16,267
|
|
|
|
(5
|
)
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.04
|
|
|
|
1.06
|
|
|
|
(2
|
)
|
|
|
$
|
3.06
|
|
|
|
3.16
|
|
|
|
(3
|
)
|
Diluted earnings per common share
|
|
|
|
1.03
|
|
|
|
1.05
|
|
|
|
(2
|
)
|
|
|
|
3.03
|
|
|
|
3.12
|
|
|
|
(3
|
)
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.375
|
|
|
|
1
|
|
|
|
|
1.135
|
|
|
|
1.100
|
|
|
|
3
|
|
Average common shares outstanding
|
|
|
|
5,043.4
|
|
|
|
5,125.8
|
|
|
|
(2
|
)
|
|
|
|
5,061.9
|
|
|
|
5,145.9
|
|
|
|
(2
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,094.6
|
|
|
|
5,193.8
|
|
|
|
(2
|
)
|
|
|
|
5,118.2
|
|
|
|
5,220.3
|
|
|
|
(2
|
)
|
NM – Not meaningful
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions, except per share amounts)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
593
|
|
|
572
|
|
|
596
|
|
|
558
|
|
|
485
|
|
Investment securities
|
|
|
|
2,298
|
|
|
2,176
|
|
|
2,262
|
|
|
2,323
|
|
|
2,289
|
|
Mortgages held for sale
|
|
|
|
207
|
|
|
181
|
|
|
161
|
|
|
176
|
|
|
223
|
|
Loans held for sale
|
|
|
|
2
|
|
|
3
|
|
|
2
|
|
|
5
|
|
|
4
|
|
Loans
|
|
|
|
9,978
|
|
|
9,822
|
|
|
9,577
|
|
|
9,323
|
|
|
9,216
|
|
Other interest income
|
|
|
|
409
|
|
|
392
|
|
|
374
|
|
|
258
|
|
|
228
|
|
Total interest income
|
|
|
|
13,487
|
|
|
13,146
|
|
|
12,972
|
|
|
12,643
|
|
|
12,445
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
356
|
|
|
332
|
|
|
307
|
|
|
241
|
|
|
232
|
|
Short-term borrowings
|
|
|
|
85
|
|
|
77
|
|
|
67
|
|
|
13
|
|
|
12
|
|
Long-term debt
|
|
|
|
1,006
|
|
|
921
|
|
|
842
|
|
|
713
|
|
|
655
|
|
Other interest expense
|
|
|
|
88
|
|
|
83
|
|
|
89
|
|
|
88
|
|
|
89
|
|
Total interest expense
|
|
|
|
1,535
|
|
|
1,413
|
|
|
1,305
|
|
|
1,055
|
|
|
988
|
|
Net interest income
|
|
|
|
11,952
|
|
|
11,733
|
|
|
11,667
|
|
|
11,588
|
|
|
11,457
|
|
Provision for credit losses
|
|
|
|
805
|
|
|
1,074
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
Net interest income after provision for credit losses
|
|
|
|
11,147
|
|
|
10,659
|
|
|
10,581
|
|
|
10,757
|
|
|
10,754
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,370
|
|
|
1,336
|
|
|
1,309
|
|
|
1,329
|
|
|
1,335
|
|
Trust and investment fees
|
|
|
|
3,613
|
|
|
3,547
|
|
|
3,385
|
|
|
3,511
|
|
|
3,570
|
|
Card fees
|
|
|
|
997
|
|
|
997
|
|
|
941
|
|
|
966
|
|
|
953
|
|
Other fees
|
|
|
|
926
|
|
|
906
|
|
|
933
|
|
|
1,040
|
|
|
1,099
|
|
Mortgage banking
|
|
|
|
1,667
|
|
|
1,414
|
|
|
1,598
|
|
|
1,660
|
|
|
1,589
|
|
Insurance
|
|
|
|
293
|
|
|
286
|
|
|
427
|
|
|
427
|
|
|
376
|
|
Net gains (losses) from trading activities
|
|
|
|
415
|
|
|
328
|
|
|
200
|
|
|
99
|
|
|
(26
|
)
|
Net gains on debt securities
|
|
|
|
106
|
|
|
447
|
|
|
244
|
|
|
346
|
|
|
147
|
|
Net gains from equity investments
|
|
|
|
140
|
|
|
189
|
|
|
244
|
|
|
423
|
|
|
920
|
|
Lease income
|
|
|
|
534
|
|
|
497
|
|
|
373
|
|
|
145
|
|
|
189
|
|
Other
|
|
|
|
315
|
|
|
482
|
|
|
874
|
|
|
52
|
|
|
266
|
|
Total noninterest income
|
|
|
|
10,376
|
|
|
10,429
|
|
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,224
|
|
|
4,099
|
|
|
4,036
|
|
|
4,061
|
|
|
4,035
|
|
Commission and incentive compensation
|
|
|
|
2,520
|
|
|
2,604
|
|
|
2,645
|
|
|
2,457
|
|
|
2,604
|
|
Employee benefits
|
|
|
|
1,223
|
|
|
1,244
|
|
|
1,526
|
|
|
1,042
|
|
|
821
|
|
Equipment
|
|
|
|
491
|
|
|
493
|
|
|
528
|
|
|
640
|
|
|
459
|
|
Net occupancy
|
|
|
|
718
|
|
|
716
|
|
|
711
|
|
|
725
|
|
|
728
|
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
299
|
|
|
293
|
|
|
311
|
|
|
311
|
|
FDIC and other deposit assessments
|
|
|
|
310
|
|
|
255
|
|
|
250
|
|
|
258
|
|
|
245
|
|
Other
|
|
|
|
3,483
|
|
|
3,156
|
|
|
3,039
|
|
|
3,105
|
|
|
3,196
|
|
Total noninterest expense
|
|
|
|
13,268
|
|
|
12,866
|
|
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
Income before income tax expense
|
|
|
|
8,255
|
|
|
8,222
|
|
|
8,081
|
|
|
8,156
|
|
|
8,773
|
|
Income tax expense
|
|
|
|
2,601
|
|
|
2,649
|
|
|
2,567
|
|
|
2,533
|
|
|
2,790
|
|
Net income before noncontrolling interests
|
|
|
|
5,654
|
|
|
5,573
|
|
|
5,514
|
|
|
5,623
|
|
|
5,983
|
|
Less: Net income from noncontrolling interests
|
|
|
|
10
|
|
|
15
|
|
|
52
|
|
|
48
|
|
|
187
|
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
5,558
|
|
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
Less: Preferred stock dividends and other
|
|
|
|
401
|
|
|
385
|
|
|
377
|
|
|
372
|
|
|
353
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,243
|
|
|
5,173
|
|
|
5,085
|
|
|
5,203
|
|
|
5,443
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.04
|
|
|
1.02
|
|
|
1.00
|
|
|
1.02
|
|
|
1.06
|
|
Diluted earnings per common share
|
|
|
|
1.03
|
|
|
1.01
|
|
|
0.99
|
|
|
1.00
|
|
|
1.05
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
0.380
|
|
|
0.375
|
|
|
0.375
|
|
|
0.375
|
|
Average common shares outstanding
|
|
|
|
5,043.4
|
|
|
5,066.9
|
|
|
5,075.7
|
|
|
5,108.5
|
|
|
5,125.8
|
|
Diluted average common shares outstanding
|
|
|
|
5,094.6
|
|
|
5,118.1
|
|
|
5,139.4
|
|
|
5,177.9
|
|
|
5,193.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
%
|
|
|
September 30,
|
|
|
|
%
|
(in millions)
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
|
5,796
|
|
|
|
(3)%
|
|
|
$
|
16,664
|
|
|
|
17,319
|
|
|
|
(4)%
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
112
|
|
|
|
(441
|
)
|
|
|
NM
|
|
|
|
2,478
|
|
|
|
(2,017
|
)
|
|
|
NM
|
Reclassification of net gains to net income
|
|
|
|
(193
|
)
|
|
|
(439
|
)
|
|
|
(56)
|
|
|
|
(1,001
|
)
|
|
|
(957
|
)
|
|
|
5
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(445
|
)
|
|
|
1,769
|
|
|
|
NM
|
|
|
|
2,611
|
|
|
|
2,233
|
|
|
|
17
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(262
|
)
|
|
|
(293
|
)
|
|
|
(11)
|
|
|
|
(783
|
)
|
|
|
(795
|
)
|
|
|
(2)
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial losses arising during the period
|
|
|
|
(447
|
)
|
|
|
—
|
|
|
|
NM
|
|
|
|
(474
|
)
|
|
|
(11
|
)
|
|
|
NM
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
|
39
|
|
|
|
30
|
|
|
|
30
|
|
|
|
115
|
|
|
|
103
|
|
|
|
12
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(10
|
)
|
|
|
(59
|
)
|
|
|
(83)
|
|
|
|
27
|
|
|
|
(104
|
)
|
|
|
NM
|
Other comprehensive income (loss), before tax
|
|
|
|
(1,206
|
)
|
|
|
567
|
|
|
|
NM
|
|
|
|
2,973
|
|
|
|
(1,548
|
)
|
|
|
NM
|
Income tax (expense) benefit related to other comprehensive income
|
|
|
|
461
|
|
|
|
(268
|
)
|
|
|
NM
|
|
|
|
(1,110
|
)
|
|
|
544
|
|
|
|
NM
|
Other comprehensive income (loss), net of tax
|
|
|
|
(745
|
)
|
|
|
299
|
|
|
|
NM
|
|
|
|
1,863
|
|
|
|
(1,004
|
)
|
|
|
NM
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
|
19
|
|
|
|
(22
|
)
|
|
|
NM
|
|
|
|
(24
|
)
|
|
|
125
|
|
|
|
NM
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
(764
|
)
|
|
|
321
|
|
|
|
NM
|
|
|
|
1,887
|
|
|
|
(1,129
|
)
|
|
|
NM
|
Wells Fargo comprehensive income
|
|
|
|
4,880
|
|
|
|
6,117
|
|
|
|
(20)
|
|
|
|
18,551
|
|
|
|
16,190
|
|
|
|
15
|
Comprehensive income from noncontrolling interests
|
|
|
|
29
|
|
|
|
165
|
|
|
|
(82)
|
|
|
|
53
|
|
|
|
459
|
|
|
|
(88)
|
Total comprehensive income
|
|
|
$
|
4,909
|
|
|
|
6,282
|
|
|
|
(22)
|
|
|
$
|
18,604
|
|
|
|
16,649
|
|
|
|
12
|
NM – Not meaningful
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2015
|
|
Balance, beginning of period
|
|
|
$
|
202,661
|
|
|
|
198,504
|
|
|
|
193,891
|
|
|
|
194,043
|
|
|
|
190,676
|
|
Cumulative effect from change in consolidation accounting (1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
121
|
|
|
|
—
|
|
|
|
—
|
|
Wells Fargo net income
|
|
|
|
5,644
|
|
|
|
5,558
|
|
|
|
5,462
|
|
|
|
5,575
|
|
|
|
5,796
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
(764
|
)
|
|
|
1,174
|
|
|
|
1,477
|
|
|
|
(2,092
|
)
|
|
|
321
|
|
Noncontrolling interests
|
|
|
|
14
|
|
|
|
(92
|
)
|
|
|
(5
|
)
|
|
|
(100
|
)
|
|
|
(123
|
)
|
Common stock issued
|
|
|
|
300
|
|
|
|
397
|
|
|
|
1,079
|
|
|
|
310
|
|
|
|
505
|
|
Common stock repurchased (2)
|
|
|
|
(1,839
|
)
|
|
|
(2,214
|
)
|
|
|
(2,029
|
)
|
|
|
(1,974
|
)
|
|
|
(2,137
|
)
|
Preferred stock released by ESOP
|
|
|
|
236
|
|
|
|
371
|
|
|
|
313
|
|
|
|
210
|
|
|
|
225
|
|
Common stock warrants repurchased/exercised
|
|
|
|
(17
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17
|
)
|
Preferred stock issued
|
|
|
|
—
|
|
|
|
1,126
|
|
|
|
975
|
|
|
|
—
|
|
|
|
975
|
|
Common stock dividends
|
|
|
|
(1,918
|
)
|
|
|
(1,930
|
)
|
|
|
(1,904
|
)
|
|
|
(1,917
|
)
|
|
|
(1,926
|
)
|
Preferred stock dividends
|
|
|
|
(401
|
)
|
|
|
(386
|
)
|
|
|
(378
|
)
|
|
|
(371
|
)
|
|
|
(356
|
)
|
Tax benefit from stock incentive compensation
|
|
|
|
31
|
|
|
|
23
|
|
|
|
149
|
|
|
|
22
|
|
|
|
22
|
|
Stock incentive compensation expense
|
|
|
|
39
|
|
|
|
139
|
|
|
|
369
|
|
|
|
204
|
|
|
|
98
|
|
Net change in deferred compensation and related plans
|
|
|
|
(28
|
)
|
|
|
(9
|
)
|
|
|
(1,016
|
)
|
|
|
(19
|
)
|
|
|
(16
|
)
|
Balance, end of period
|
|
|
$
|
203,958
|
|
|
|
202,661
|
|
|
|
198,504
|
|
|
|
193,891
|
|
|
|
194,043
|
|
(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 quarter ended December 31, 2015, includes $500 million
related to a private forward repurchase transaction that settled
in first quarter 2016 for 9.2 million shares of common stock.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Quarter ended September 30,
|
|
|
|
|
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
|
|
|
$
|
299,351
|
|
|
|
0.50
|
%
|
|
|
$
|
373
|
|
|
|
250,104
|
|
|
|
0.26
|
%
|
|
|
$
|
167
|
|
Trading assets
|
|
|
|
88,838
|
|
|
|
2.72
|
|
|
|
|
605
|
|
|
|
67,223
|
|
|
|
2.93
|
|
|
|
|
492
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
25,817
|
|
|
|
1.52
|
|
|
|
|
99
|
|
|
|
35,709
|
|
|
|
1.59
|
|
|
|
|
143
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
55,170
|
|
|
|
4.28
|
|
|
|
|
590
|
|
|
|
48,238
|
|
|
|
4.22
|
|
|
|
|
510
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
105,780
|
|
|
|
2.39
|
|
|
|
|
631
|
|
|
|
98,459
|
|
|
|
2.70
|
|
|
|
|
665
|
|
Residential and commercial
|
|
|
|
18,080
|
|
|
|
5.54
|
|
|
|
|
250
|
|
|
|
21,876
|
|
|
|
5.84
|
|
|
|
|
319
|
|
Total mortgage-backed securities
|
|
|
|
123,860
|
|
|
|
2.85
|
|
|
|
|
881
|
|
|
|
120,335
|
|
|
|
3.27
|
|
|
|
|
984
|
|
Other debt and equity securities
|
|
|
|
54,176
|
|
|
|
3.37
|
|
|
|
|
459
|
|
|
|
50,371
|
|
|
|
3.40
|
|
|
|
|
430
|
|
Total available-for-sale securities
|
|
|
|
259,023
|
|
|
|
3.13
|
|
|
|
|
2,029
|
|
|
|
254,653
|
|
|
|
3.24
|
|
|
|
|
2,067
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44,678
|
|
|
|
2.19
|
|
|
|
|
246
|
|
|
|
44,649
|
|
|
|
2.18
|
|
|
|
|
245
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
2,507
|
|
|
|
5.24
|
|
|
|
|
33
|
|
|
|
2,151
|
|
|
|
5.17
|
|
|
|
|
28
|
|
Federal agency and other mortgage-backed securities
|
|
|
|
47,971
|
|
|
|
1.97
|
|
|
|
|
236
|
|
|
|
27,079
|
|
|
|
2.38
|
|
|
|
|
161
|
|
Other debt securities
|
|
|
|
3,909
|
|
|
|
1.98
|
|
|
|
|
19
|
|
|
|
5,371
|
|
|
|
1.75
|
|
|
|
|
24
|
|
Total held-to-maturity securities
|
|
|
|
99,065
|
|
|
|
2.15
|
|
|
|
|
534
|
|
|
|
79,250
|
|
|
|
2.30
|
|
|
|
|
458
|
|
Total investment securities
|
|
|
|
358,088
|
|
|
|
2.86
|
|
|
|
|
2,563
|
|
|
|
333,903
|
|
|
|
3.02
|
|
|
|
|
2,525
|
|
Mortgages held for sale (4)
|
|
|
|
24,060
|
|
|
|
3.44
|
|
|
|
|
207
|
|
|
|
24,159
|
|
|
|
3.69
|
|
|
|
|
223
|
|
Loans held for sale (4)
|
|
|
|
199
|
|
|
|
3.04
|
|
|
|
|
2
|
|
|
|
568
|
|
|
|
2.57
|
|
|
|
|
4
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
|
271,226
|
|
|
|
3.48
|
|
|
|
|
2,369
|
|
|
|
241,409
|
|
|
|
3.30
|
|
|
|
|
2,005
|
|
Commercial and industrial - Non U.S.
|
|
|
|
51,261
|
|
|
|
2.40
|
|
|
|
|
309
|
|
|
|
45,923
|
|
|
|
1.83
|
|
|
|
|
212
|
|
Real estate mortgage
|
|
|
|
128,809
|
|
|
|
3.48
|
|
|
|
|
1,127
|
|
|
|
120,983
|
|
|
|
3.31
|
|
|
|
|
1,009
|
|
Real estate construction
|
|
|
|
23,212
|
|
|
|
3.50
|
|
|
|
|
205
|
|
|
|
21,626
|
|
|
|
3.39
|
|
|
|
|
184
|
|
Lease financing
|
|
|
|
18,896
|
|
|
|
4.70
|
|
|
|
|
223
|
|
|
|
12,282
|
|
|
|
4.18
|
|
|
|
|
129
|
|
Total commercial
|
|
|
|
493,404
|
|
|
|
3.42
|
|
|
|
|
4,233
|
|
|
|
442,223
|
|
|
|
3.18
|
|
|
|
|
3,539
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
278,509
|
|
|
|
3.97
|
|
|
|
|
2,764
|
|
|
|
269,437
|
|
|
|
4.10
|
|
|
|
|
2,762
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
48,927
|
|
|
|
4.37
|
|
|
|
|
537
|
|
|
|
55,298
|
|
|
|
4.22
|
|
|
|
|
588
|
|
Credit card
|
|
|
|
34,578
|
|
|
|
11.60
|
|
|
|
|
1,008
|
|
|
|
31,649
|
|
|
|
11.73
|
|
|
|
|
936
|
|
Automobile
|
|
|
|
62,461
|
|
|
|
5.60
|
|
|
|
|
880
|
|
|
|
58,534
|
|
|
|
5.80
|
|
|
|
|
855
|
|
Other revolving credit and installment
|
|
|
|
39,605
|
|
|
|
5.92
|
|
|
|
|
590
|
|
|
|
37,954
|
|
|
|
5.84
|
|
|
|
|
559
|
|
Total consumer
|
|
|
|
464,080
|
|
|
|
4.97
|
|
|
|
|
5,779
|
|
|
|
452,872
|
|
|
|
5.01
|
|
|
|
|
5,700
|
|
Total loans (4)
|
|
|
|
957,484
|
|
|
|
4.17
|
|
|
|
|
10,012
|
|
|
|
895,095
|
|
|
|
4.11
|
|
|
|
|
9,239
|
|
Other
|
|
|
|
6,488
|
|
|
|
2.30
|
|
|
|
|
36
|
|
|
|
5,028
|
|
|
|
5.11
|
|
|
|
|
64
|
|
Total earning assets
|
|
|
$
|
1,734,508
|
|
|
|
3.17
|
%
|
|
|
$
|
13,798
|
|
|
|
1,576,080
|
|
|
|
3.21
|
%
|
|
|
$
|
12,714
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
44,056
|
|
|
|
0.15
|
%
|
|
|
$
|
17
|
|
|
|
37,783
|
|
|
|
0.05
|
%
|
|
|
$
|
5
|
|
Market rate and other savings
|
|
|
|
667,185
|
|
|
|
0.07
|
|
|
|
|
110
|
|
|
|
628,119
|
|
|
|
0.06
|
|
|
|
|
90
|
|
Savings certificates
|
|
|
|
25,185
|
|
|
|
0.30
|
|
|
|
|
19
|
|
|
|
30,897
|
|
|
|
0.58
|
|
|
|
|
44
|
|
Other time deposits
|
|
|
|
54,921
|
|
|
|
0.93
|
|
|
|
|
128
|
|
|
|
48,676
|
|
|
|
0.46
|
|
|
|
|
57
|
|
Deposits in foreign offices
|
|
|
|
107,072
|
|
|
|
0.30
|
|
|
|
|
82
|
|
|
|
111,521
|
|
|
|
0.13
|
|
|
|
|
36
|
|
Total interest-bearing deposits
|
|
|
|
898,419
|
|
|
|
0.16
|
|
|
|
|
356
|
|
|
|
856,996
|
|
|
|
0.11
|
|
|
|
|
232
|
|
Short-term borrowings
|
|
|
|
116,228
|
|
|
|
0.29
|
|
|
|
|
86
|
|
|
|
90,357
|
|
|
|
0.06
|
|
|
|
|
13
|
|
Long-term debt
|
|
|
|
252,400
|
|
|
|
1.59
|
|
|
|
|
1,006
|
|
|
|
180,569
|
|
|
|
1.45
|
|
|
|
|
655
|
|
Other liabilities
|
|
|
|
16,771
|
|
|
|
2.11
|
|
|
|
|
88
|
|
|
|
16,435
|
|
|
|
2.13
|
|
|
|
|
89
|
|
Total interest-bearing liabilities
|
|
|
|
1,283,818
|
|
|
|
0.48
|
|
|
|
|
1,536
|
|
|
|
1,144,357
|
|
|
|
0.34
|
|
|
|
|
989
|
|
Portion of noninterest-bearing funding sources
|
|
|
|
450,690
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
431,723
|
|
|
|
—
|
|
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,734,508
|
|
|
|
0.35
|
|
|
|
|
1,536
|
|
|
|
1,576,080
|
|
|
|
0.25
|
|
|
|
|
989
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
|
2.82
|
%
|
|
|
$
|
12,262
|
|
|
|
|
|
|
|
2.96
|
%
|
|
|
$
|
11,725
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,682
|
|
|
|
|
|
|
|
|
|
|
|
16,979
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
26,979
|
|
|
|
|
|
|
|
|
|
|
|
25,703
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
134,417
|
|
|
|
|
|
|
|
|
|
|
|
127,640
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
180,078
|
|
|
|
|
|
|
|
|
|
|
|
170,322
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
363,108
|
|
|
|
|
|
|
|
|
|
|
|
341,878
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
63,777
|
|
|
|
|
|
|
|
|
|
|
|
67,964
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
203,883
|
|
|
|
|
|
|
|
|
|
|
|
192,203
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
(450,690
|
)
|
|
|
|
|
|
|
|
|
|
|
(431,723
|
)
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
180,078
|
|
|
|
|
|
|
|
|
|
|
|
170,322
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,914,586
|
|
|
|
|
|
|
|
|
|
|
|
1,746,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% and 3.25% for the quarters
ended September 30, 2016 and 2015, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 0.79% and
0.31% for the same quarters, respectively.
|
|
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(5) Includes taxable-equivalent adjustments of $310 million and
$268 million for the quarters ended September 30, 2016 and 2015,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
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
|
|
|
$
|
292,635
|
|
|
|
0.49
|
%
|
|
|
$
|
1,076
|
|
|
|
264,218
|
|
|
|
0.27
|
%
|
|
|
$
|
543
|
|
Trading assets
|
|
|
|
83,580
|
|
|
|
2.86
|
|
|
|
|
1,792
|
|
|
|
65,954
|
|
|
|
2.91
|
|
|
|
|
1,437
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
30,588
|
|
|
|
1.56
|
|
|
|
|
358
|
|
|
|
31,242
|
|
|
|
1.57
|
|
|
|
|
368
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
52,637
|
|
|
|
4.25
|
|
|
|
|
1,678
|
|
|
|
46,765
|
|
|
|
4.18
|
|
|
|
|
1,468
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
98,099
|
|
|
|
2.57
|
|
|
|
|
1,889
|
|
|
|
99,523
|
|
|
|
2.71
|
|
|
|
|
2,021
|
|
Residential and commercial
|
|
|
|
19,488
|
|
|
|
5.39
|
|
|
|
|
787
|
|
|
|
22,823
|
|
|
|
5.80
|
|
|
|
|
992
|
|
Total mortgage-backed securities
|
|
|
|
117,587
|
|
|
|
3.03
|
|
|
|
|
2,676
|
|
|
|
122,346
|
|
|
|
3.28
|
|
|
|
|
3,013
|
|
Other debt and equity securities
|
|
|
|
53,680
|
|
|
|
3.36
|
|
|
|
|
1,349
|
|
|
|
48,758
|
|
|
|
3.44
|
|
|
|
|
1,257
|
|
Total available-for-sale securities
|
|
|
|
254,492
|
|
|
|
3.18
|
|
|
|
|
6,061
|
|
|
|
249,111
|
|
|
|
3.27
|
|
|
|
|
6,106
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44,671
|
|
|
|
2.19
|
|
|
|
|
733
|
|
|
|
44,010
|
|
|
|
2.19
|
|
|
|
|
722
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
2,274
|
|
|
|
5.34
|
|
|
|
|
91
|
|
|
|
2,064
|
|
|
|
5.16
|
|
|
|
|
80
|
|
Federal agency and other mortgage-backed securities
|
|
|
|
37,087
|
|
|
|
2.08
|
|
|
|
|
577
|
|
|
|
19,871
|
|
|
|
2.14
|
|
|
|
|
319
|
|
Other debt securities
|
|
|
|
4,193
|
|
|
|
1.94
|
|
|
|
|
61
|
|
|
|
6,139
|
|
|
|
1.72
|
|
|
|
|
79
|
|
Total held-to-maturity securities
|
|
|
|
88,225
|
|
|
|
2.21
|
|
|
|
|
1,462
|
|
|
|
72,084
|
|
|
|
2.22
|
|
|
|
|
1,200
|
|
Total investment securities
|
|
|
|
342,717
|
|
|
|
2.93
|
|
|
|
|
7,523
|
|
|
|
321,195
|
|
|
|
3.03
|
|
|
|
|
7,306
|
|
Mortgages held for sale (4)
|
|
|
|
20,702
|
|
|
|
3.53
|
|
|
|
|
549
|
|
|
|
22,416
|
|
|
|
3.62
|
|
|
|
|
609
|
|
Loans held for sale (4)
|
|
|
|
240
|
|
|
|
3.71
|
|
|
|
|
7
|
|
|
|
644
|
|
|
|
2.93
|
|
|
|
|
14
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
|
266,622
|
|
|
|
3.44
|
|
|
|
|
6,874
|
|
|
|
233,598
|
|
|
|
3.31
|
|
|
|
|
5,788
|
|
Commercial and industrial - Non U.S.
|
|
|
|
50,658
|
|
|
|
2.29
|
|
|
|
|
867
|
|
|
|
45,373
|
|
|
|
1.88
|
|
|
|
|
638
|
|
Real estate mortgage
|
|
|
|
125,902
|
|
|
|
3.43
|
|
|
|
|
3,236
|
|
|
|
115,224
|
|
|
|
3.45
|
|
|
|
|
2,972
|
|
Real estate construction
|
|
|
|
22,978
|
|
|
|
3.53
|
|
|
|
|
608
|
|
|
|
20,637
|
|
|
|
3.68
|
|
|
|
|
567
|
|
Lease financing
|
|
|
|
17,629
|
|
|
|
4.86
|
|
|
|
|
643
|
|
|
|
12,322
|
|
|
|
4.77
|
|
|
|
|
441
|
|
Total commercial
|
|
|
|
483,789
|
|
|
|
3.38
|
|
|
|
|
12,228
|
|
|
|
427,154
|
|
|
|
3.26
|
|
|
|
|
10,406
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
276,369
|
|
|
|
4.01
|
|
|
|
|
8,311
|
|
|
|
267,107
|
|
|
|
4.12
|
|
|
|
|
8,243
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
50,585
|
|
|
|
4.38
|
|
|
|
|
1,659
|
|
|
|
57,068
|
|
|
|
4.24
|
|
|
|
|
1,812
|
|
Credit card
|
|
|
|
33,774
|
|
|
|
11.58
|
|
|
|
|
2,927
|
|
|
|
30,806
|
|
|
|
11.74
|
|
|
|
|
2,704
|
|
Automobile
|
|
|
|
61,246
|
|
|
|
5.64
|
|
|
|
|
2,588
|
|
|
|
57,180
|
|
|
|
5.87
|
|
|
|
|
2,512
|
|
Other revolving credit and installment
|
|
|
|
39,434
|
|
|
|
5.94
|
|
|
|
|
1,755
|
|
|
|
37,069
|
|
|
|
5.91
|
|
|
|
|
1,638
|
|
Total consumer
|
|
|
|
461,408
|
|
|
|
4.99
|
|
|
|
|
17,240
|
|
|
|
449,230
|
|
|
|
5.03
|
|
|
|
|
16,909
|
|
Total loans (4)
|
|
|
|
945,197
|
|
|
|
4.16
|
|
|
|
|
29,468
|
|
|
|
876,384
|
|
|
|
4.16
|
|
|
|
|
27,315
|
|
Other
|
|
|
|
6,104
|
|
|
|
2.23
|
|
|
|
|
101
|
|
|
|
4,874
|
|
|
|
5.21
|
|
|
|
|
191
|
|
Total earning assets
|
|
|
$
|
1,691,175
|
|
|
|
3.20
|
%
|
|
|
$
|
40,516
|
|
|
|
1,555,685
|
|
|
|
3.21
|
%
|
|
|
$
|
37,415
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
40,858
|
|
|
|
0.13
|
%
|
|
|
$
|
41
|
|
|
|
38,491
|
|
|
|
0.05
|
%
|
|
|
$
|
15
|
|
Market rate and other savings
|
|
|
|
659,257
|
|
|
|
0.07
|
|
|
|
|
327
|
|
|
|
620,510
|
|
|
|
0.06
|
|
|
|
|
274
|
|
Savings certificates
|
|
|
|
26,432
|
|
|
|
0.37
|
|
|
|
|
73
|
|
|
|
32,639
|
|
|
|
0.66
|
|
|
|
|
160
|
|
Other time deposits
|
|
|
|
58,087
|
|
|
|
0.84
|
|
|
|
|
364
|
|
|
|
52,459
|
|
|
|
0.43
|
|
|
|
|
168
|
|
Deposits in foreign offices
|
|
|
|
100,783
|
|
|
|
0.25
|
|
|
|
|
190
|
|
|
|
107,153
|
|
|
|
0.13
|
|
|
|
|
105
|
|
Total interest-bearing deposits
|
|
|
|
885,417
|
|
|
|
0.15
|
|
|
|
|
995
|
|
|
|
851,252
|
|
|
|
0.11
|
|
|
|
|
722
|
|
Short-term borrowings
|
|
|
|
111,993
|
|
|
|
0.28
|
|
|
|
|
231
|
|
|
|
82,258
|
|
|
|
0.09
|
|
|
|
|
52
|
|
Long-term debt
|
|
|
|
235,209
|
|
|
|
1.57
|
|
|
|
|
2,769
|
|
|
|
183,130
|
|
|
|
1.37
|
|
|
|
|
1,879
|
|
Other liabilities
|
|
|
|
16,534
|
|
|
|
2.10
|
|
|
|
|
260
|
|
|
|
16,576
|
|
|
|
2.16
|
|
|
|
|
269
|
|
Total interest-bearing liabilities
|
|
|
|
1,249,153
|
|
|
|
0.45
|
|
|
|
|
4,255
|
|
|
|
1,133,216
|
|
|
|
0.34
|
|
|
|
|
2,922
|
|
Portion of noninterest-bearing funding sources
|
|
|
|
442,022
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
422,469
|
|
|
|
—
|
|
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,691,175
|
|
|
|
0.34
|
|
|
|
|
4,255
|
|
|
|
1,555,685
|
|
|
|
0.25
|
|
|
|
|
2,922
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
|
2.86
|
%
|
|
|
$
|
36,261
|
|
|
|
|
|
|
|
2.96
|
%
|
|
|
$
|
34,493
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,499
|
|
|
|
|
|
|
|
|
|
|
|
17,167
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
26,696
|
|
|
|
|
|
|
|
|
|
|
|
25,703
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
129,324
|
|
|
|
|
|
|
|
|
|
|
|
129,412
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
174,519
|
|
|
|
|
|
|
|
|
|
|
|
172,282
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
353,870
|
|
|
|
|
|
|
|
|
|
|
|
335,160
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
62,169
|
|
|
|
|
|
|
|
|
|
|
|
69,167
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
200,502
|
|
|
|
|
|
|
|
|
|
|
|
190,424
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
(442,022
|
)
|
|
|
|
|
|
|
|
|
|
|
(422,469
|
)
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
174,519
|
|
|
|
|
|
|
|
|
|
|
|
172,282
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,865,694
|
|
|
|
|
|
|
|
|
|
|
|
1,727,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% and 3.25% for the first nine
months of 2016 and 2015, respectively. The average three- month
London Interbank Offered Rate (LIBOR) was 0.69% and 0.28% for the
same periods, respectively.
|
|
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(5) Includes taxable-equivalent adjustments of $909 million and
$780 million for the first nine months of 2016 and 2015,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30, 2016
|
|
|
Jun 30, 2016
|
|
|
Mar 31, 2016
|
|
|
Dec 31, 2015
|
|
|
Sep 30, 2015
|
|
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
($ 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
|
|
|
$
|
299.4
|
|
|
0.50
|
%
|
|
$
|
293.8
|
|
|
0.49
|
%
|
|
$
|
284.7
|
|
|
0.49
|
%
|
|
$
|
274.6
|
|
|
0.28
|
%
|
|
$
|
250.1
|
|
|
0.26
|
%
|
Trading assets
|
|
|
|
88.8
|
|
|
2.72
|
|
|
|
81.4
|
|
|
2.86
|
|
|
|
80.5
|
|
|
3.01
|
|
|
|
68.8
|
|
|
3.33
|
|
|
|
67.2
|
|
|
2.93
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
25.8
|
|
|
1.52
|
|
|
|
31.5
|
|
|
1.56
|
|
|
|
34.4
|
|
|
1.59
|
|
|
|
34.6
|
|
|
1.58
|
|
|
|
35.7
|
|
|
1.59
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
55.2
|
|
|
4.28
|
|
|
|
52.2
|
|
|
4.24
|
|
|
|
50.5
|
|
|
4.24
|
|
|
|
49.3
|
|
|
4.37
|
|
|
|
48.2
|
|
|
4.22
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
105.8
|
|
|
2.39
|
|
|
|
92.0
|
|
|
2.53
|
|
|
|
96.5
|
|
|
2.80
|
|
|
|
102.3
|
|
|
2.79
|
|
|
|
98.4
|
|
|
2.70
|
|
Residential and commercial
|
|
|
|
18.1
|
|
|
5.54
|
|
|
|
19.6
|
|
|
5.44
|
|
|
|
20.8
|
|
|
5.20
|
|
|
|
21.5
|
|
|
5.51
|
|
|
|
21.9
|
|
|
5.84
|
|
Total mortgage-backed securities
|
|
|
|
123.9
|
|
|
2.85
|
|
|
|
111.6
|
|
|
3.04
|
|
|
|
117.3
|
|
|
3.23
|
|
|
|
123.8
|
|
|
3.26
|
|
|
|
120.3
|
|
|
3.27
|
|
Other debt and equity securities
|
|
|
|
54.2
|
|
|
3.37
|
|
|
|
53.3
|
|
|
3.48
|
|
|
|
53.6
|
|
|
3.21
|
|
|
|
52.7
|
|
|
3.35
|
|
|
|
50.4
|
|
|
3.40
|
|
Total available-for-sale securities
|
|
|
|
259.1
|
|
|
3.13
|
|
|
|
248.6
|
|
|
3.20
|
|
|
|
255.8
|
|
|
3.20
|
|
|
|
260.4
|
|
|
3.27
|
|
|
|
254.6
|
|
|
3.24
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44.6
|
|
|
2.19
|
|
|
|
44.6
|
|
|
2.19
|
|
|
|
44.7
|
|
|
2.20
|
|
|
|
44.7
|
|
|
2.18
|
|
|
|
44.6
|
|
|
2.18
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
2.5
|
|
|
5.24
|
|
|
|
2.2
|
|
|
5.41
|
|
|
|
2.1
|
|
|
5.41
|
|
|
|
2.1
|
|
|
6.07
|
|
|
|
2.2
|
|
|
5.17
|
|
Federal agency and other mortgage-backed securities
|
|
|
|
48.0
|
|
|
1.97
|
|
|
|
35.1
|
|
|
1.90
|
|
|
|
28.1
|
|
|
2.49
|
|
|
|
28.2
|
|
|
2.42
|
|
|
|
27.1
|
|
|
2.38
|
|
Other debt securities
|
|
|
|
3.9
|
|
|
1.98
|
|
|
|
4.1
|
|
|
1.92
|
|
|
|
4.6
|
|
|
1.92
|
|
|
|
4.9
|
|
|
1.77
|
|
|
|
5.4
|
|
|
1.75
|
|
Total held-to-maturity securities
|
|
|
|
99.0
|
|
|
2.15
|
|
|
|
86.0
|
|
|
2.14
|
|
|
|
79.5
|
|
|
2.37
|
|
|
|
79.9
|
|
|
2.35
|
|
|
|
79.3
|
|
|
2.30
|
|
Total investment securities
|
|
|
|
358.1
|
|
|
2.86
|
|
|
|
334.6
|
|
|
2.93
|
|
|
|
335.3
|
|
|
3.01
|
|
|
|
340.3
|
|
|
3.05
|
|
|
|
333.9
|
|
|
3.02
|
|
Mortgages held for sale
|
|
|
|
24.1
|
|
|
3.44
|
|
|
|
20.1
|
|
|
3.60
|
|
|
|
17.9
|
|
|
3.59
|
|
|
|
19.2
|
|
|
3.66
|
|
|
|
24.2
|
|
|
3.69
|
|
Loans held for sale
|
|
|
|
0.2
|
|
|
3.04
|
|
|
|
0.2
|
|
|
4.83
|
|
|
|
0.3
|
|
|
3.23
|
|
|
|
0.4
|
|
|
4.96
|
|
|
|
0.6
|
|
|
2.57
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
|
271.2
|
|
|
3.48
|
|
|
|
270.9
|
|
|
3.45
|
|
|
|
257.7
|
|
|
3.39
|
|
|
|
250.5
|
|
|
3.25
|
|
|
|
241.4
|
|
|
3.30
|
|
Commercial and industrial - Non U.S.
|
|
|
|
51.3
|
|
|
2.40
|
|
|
|
51.2
|
|
|
2.35
|
|
|
|
49.5
|
|
|
2.10
|
|
|
|
48.0
|
|
|
1.97
|
|
|
|
45.9
|
|
|
1.83
|
|
Real estate mortgage
|
|
|
|
128.8
|
|
|
3.48
|
|
|
|
126.1
|
|
|
3.41
|
|
|
|
122.7
|
|
|
3.41
|
|
|
|
121.8
|
|
|
3.30
|
|
|
|
121.0
|
|
|
3.31
|
|
Real estate construction
|
|
|
|
23.2
|
|
|
3.50
|
|
|
|
23.1
|
|
|
3.49
|
|
|
|
22.6
|
|
|
3.61
|
|
|
|
22.0
|
|
|
3.27
|
|
|
|
21.6
|
|
|
3.39
|
|
Lease financing
|
|
|
|
18.9
|
|
|
4.70
|
|
|
|
19.0
|
|
|
5.12
|
|
|
|
15.1
|
|
|
4.74
|
|
|
|
12.2
|
|
|
4.48
|
|
|
|
12.3
|
|
|
4.18
|
|
Total commercial
|
|
|
|
493.4
|
|
|
3.42
|
|
|
|
490.3
|
|
|
3.39
|
|
|
|
467.6
|
|
|
3.31
|
|
|
|
454.5
|
|
|
3.16
|
|
|
|
442.2
|
|
|
3.18
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
278.5
|
|
|
3.97
|
|
|
|
275.9
|
|
|
4.01
|
|
|
|
274.7
|
|
|
4.05
|
|
|
|
272.9
|
|
|
4.04
|
|
|
|
269.4
|
|
|
4.10
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
48.9
|
|
|
4.37
|
|
|
|
50.6
|
|
|
4.37
|
|
|
|
52.2
|
|
|
4.39
|
|
|
|
53.8
|
|
|
4.28
|
|
|
|
55.3
|
|
|
4.22
|
|
Credit card
|
|
|
|
34.6
|
|
|
11.60
|
|
|
|
33.4
|
|
|
11.52
|
|
|
|
33.4
|
|
|
11.61
|
|
|
|
32.8
|
|
|
11.61
|
|
|
|
31.7
|
|
|
11.73
|
|
Automobile
|
|
|
|
62.5
|
|
|
5.60
|
|
|
|
61.1
|
|
|
5.66
|
|
|
|
60.1
|
|
|
5.67
|
|
|
|
59.5
|
|
|
5.74
|
|
|
|
58.5
|
|
|
5.80
|
|
Other revolving credit and installment
|
|
|
|
39.6
|
|
|
5.92
|
|
|
|
39.5
|
|
|
5.91
|
|
|
|
39.2
|
|
|
5.99
|
|
|
|
38.8
|
|
|
5.83
|
|
|
|
38.0
|
|
|
5.84
|
|
Total consumer
|
|
|
|
464.1
|
|
|
4.97
|
|
|
|
460.5
|
|
|
4.98
|
|
|
|
459.6
|
|
|
5.02
|
|
|
|
457.8
|
|
|
4.99
|
|
|
|
452.9
|
|
|
5.01
|
|
Total loans
|
|
|
|
957.5
|
|
|
4.17
|
|
|
|
950.8
|
|
|
4.16
|
|
|
|
927.2
|
|
|
4.16
|
|
|
|
912.3
|
|
|
4.08
|
|
|
|
895.1
|
|
|
4.11
|
|
Other
|
|
|
|
6.4
|
|
|
2.30
|
|
|
|
6.0
|
|
|
2.30
|
|
|
|
5.8
|
|
|
2.06
|
|
|
|
5.1
|
|
|
4.82
|
|
|
|
5.0
|
|
|
5.11
|
|
Total earning assets
|
|
|
$
|
1,734.5
|
|
|
3.17
|
%
|
|
$
|
1,686.9
|
|
|
3.20
|
%
|
|
$
|
1,651.7
|
|
|
3.22
|
%
|
|
$
|
1,620.7
|
|
|
3.18
|
%
|
|
$
|
1,576.1
|
|
|
3.21
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
44.0
|
|
|
0.15
|
%
|
|
$
|
39.8
|
|
|
0.13
|
%
|
|
$
|
38.7
|
|
|
0.12
|
%
|
|
$
|
39.1
|
|
|
0.05
|
%
|
|
$
|
37.8
|
|
|
0.05
|
%
|
Market rate and other savings
|
|
|
|
667.2
|
|
|
0.07
|
|
|
|
659.0
|
|
|
0.07
|
|
|
|
651.5
|
|
|
0.07
|
|
|
|
640.5
|
|
|
0.06
|
|
|
|
628.1
|
|
|
0.06
|
|
Savings certificates
|
|
|
|
25.2
|
|
|
0.30
|
|
|
|
26.2
|
|
|
0.35
|
|
|
|
27.9
|
|
|
0.45
|
|
|
|
29.6
|
|
|
0.54
|
|
|
|
30.9
|
|
|
0.58
|
|
Other time deposits
|
|
|
|
54.9
|
|
|
0.93
|
|
|
|
61.2
|
|
|
0.85
|
|
|
|
58.2
|
|
|
0.74
|
|
|
|
49.8
|
|
|
0.52
|
|
|
|
48.7
|
|
|
0.46
|
|
Deposits in foreign offices
|
|
|
|
107.1
|
|
|
0.30
|
|
|
|
97.5
|
|
|
0.23
|
|
|
|
97.7
|
|
|
0.21
|
|
|
|
107.1
|
|
|
0.14
|
|
|
|
111.5
|
|
|
0.13
|
|
Total interest-bearing deposits
|
|
|
|
898.4
|
|
|
0.16
|
|
|
|
883.7
|
|
|
0.15
|
|
|
|
874.0
|
|
|
0.14
|
|
|
|
866.1
|
|
|
0.11
|
|
|
|
857.0
|
|
|
0.11
|
|
Short-term borrowings
|
|
|
|
116.2
|
|
|
0.29
|
|
|
|
111.8
|
|
|
0.28
|
|
|
|
107.9
|
|
|
0.25
|
|
|
|
102.9
|
|
|
0.05
|
|
|
|
90.4
|
|
|
0.06
|
|
Long-term debt
|
|
|
|
252.4
|
|
|
1.59
|
|
|
|
236.2
|
|
|
1.56
|
|
|
|
216.9
|
|
|
1.56
|
|
|
|
190.9
|
|
|
1.49
|
|
|
|
180.6
|
|
|
1.45
|
|
Other liabilities
|
|
|
|
16.8
|
|
|
2.11
|
|
|
|
16.3
|
|
|
2.06
|
|
|
|
16.5
|
|
|
2.14
|
|
|
|
16.5
|
|
|
2.14
|
|
|
|
16.4
|
|
|
2.13
|
|
Total interest-bearing liabilities
|
|
|
|
1,283.8
|
|
|
0.48
|
|
|
|
1,248.0
|
|
|
0.45
|
|
|
|
1,215.3
|
|
|
0.43
|
|
|
|
1,176.4
|
|
|
0.36
|
|
|
|
1,144.4
|
|
|
0.34
|
|
Portion of noninterest-bearing funding sources
|
|
|
|
450.7
|
|
|
—
|
|
|
|
438.9
|
|
|
—
|
|
|
|
436.4
|
|
|
—
|
|
|
|
444.3
|
|
|
—
|
|
|
|
431.7
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,734.5
|
|
|
0.35
|
|
|
$
|
1,686.9
|
|
|
0.34
|
|
|
$
|
1,651.7
|
|
|
0.32
|
|
|
$
|
1,620.7
|
|
|
0.26
|
|
|
$
|
1,576.1
|
|
|
0.25
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
2.82
|
%
|
|
|
|
|
2.86
|
%
|
|
|
|
|
2.90
|
%
|
|
|
|
|
2.92
|
%
|
|
|
|
|
2.96
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18.7
|
|
|
|
|
|
|
18.8
|
|
|
|
|
|
|
18.0
|
|
|
|
|
|
|
17.8
|
|
|
|
|
|
|
17.0
|
|
|
|
|
Goodwill
|
|
|
|
27.0
|
|
|
|
|
|
|
27.0
|
|
|
|
|
|
|
26.1
|
|
|
|
|
|
|
25.6
|
|
|
|
|
|
|
25.7
|
|
|
|
|
Other
|
|
|
|
134.4
|
|
|
|
|
|
|
129.4
|
|
|
|
|
|
|
124.1
|
|
|
|
|
|
|
123.2
|
|
|
|
|
|
|
127.6
|
|
|
|
|
Total noninterest-earnings assets
|
|
|
$
|
180.1
|
|
|
|
|
|
|
175.2
|
|
|
|
|
|
|
168.2
|
|
|
|
|
|
|
166.6
|
|
|
|
|
|
|
170.3
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
363.1
|
|
|
|
|
|
|
353.0
|
|
|
|
|
|
|
345.4
|
|
|
|
|
|
|
350.7
|
|
|
|
|
|
|
341.9
|
|
|
|
|
Other liabilities
|
|
|
|
63.8
|
|
|
|
|
|
|
60.1
|
|
|
|
|
|
|
62.6
|
|
|
|
|
|
|
65.2
|
|
|
|
|
|
|
67.9
|
|
|
|
|
Total equity
|
|
|
|
203.9
|
|
|
|
|
|
|
201.0
|
|
|
|
|
|
|
196.6
|
|
|
|
|
|
|
195.0
|
|
|
|
|
|
|
192.2
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
(450.7
|
)
|
|
|
|
|
|
(438.9
|
)
|
|
|
|
|
|
(436.4
|
)
|
|
|
|
|
|
(444.3
|
)
|
|
|
|
|
|
(431.7
|
)
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
180.1
|
|
|
|
|
|
|
175.2
|
|
|
|
|
|
|
168.2
|
|
|
|
|
|
|
166.6
|
|
|
|
|
|
|
170.3
|
|
|
|
|
Total assets
|
|
|
$
|
1,914.6
|
|
|
|
|
|
|
1,862.1
|
|
|
|
|
|
|
1,819.9
|
|
|
|
|
|
|
1,787.3
|
|
|
|
|
|
|
1,746.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% for the quarters ended
September 30, June 30 and March 31, 2016, 3.29% for the quarter
ended December 31, 2015 and 3.25% for the quarter ended September
30, 2015. The average three-month London Interbank Offered Rate
(LIBOR) was 0.79%, 0.64%, 0.62%, 0.41% and 0.31% 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
|
|
|
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
%
|
|
|
September 30,
|
|
|
%
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Service charges on deposit accounts
|
|
|
$
|
1,370
|
|
|
1,335
|
|
|
3
|
%
|
|
$
|
4,015
|
|
|
3,839
|
|
|
5
|
%
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,344
|
|
|
2,368
|
|
|
(1
|
)
|
|
|
6,874
|
|
|
7,147
|
|
|
(4
|
)
|
Trust and investment management
|
|
|
|
849
|
|
|
843
|
|
|
1
|
|
|
|
2,499
|
|
|
2,556
|
|
|
(2
|
)
|
Investment banking
|
|
|
|
420
|
|
|
359
|
|
|
17
|
|
|
|
1,172
|
|
|
1,254
|
|
|
(7
|
)
|
Total trust and investment fees
|
|
|
|
3,613
|
|
|
3,570
|
|
|
1
|
|
|
|
10,545
|
|
|
10,957
|
|
|
(4
|
)
|
Card fees
|
|
|
|
997
|
|
|
953
|
|
|
5
|
|
|
|
2,935
|
|
|
2,754
|
|
|
7
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
306
|
|
|
307
|
|
|
—
|
|
|
|
936
|
|
|
920
|
|
|
2
|
|
Cash network fees
|
|
|
|
138
|
|
|
136
|
|
|
1
|
|
|
|
407
|
|
|
393
|
|
|
4
|
|
Commercial real estate brokerage commissions
|
|
|
|
119
|
|
|
124
|
|
|
(4
|
)
|
|
|
322
|
|
|
394
|
|
|
(18
|
)
|
Letters of credit fees
|
|
|
|
81
|
|
|
89
|
|
|
(9
|
)
|
|
|
242
|
|
|
267
|
|
|
(9
|
)
|
Wire transfer and other remittance fees
|
|
|
|
103
|
|
|
95
|
|
|
8
|
|
|
|
296
|
|
|
275
|
|
|
8
|
|
All other fees (1)(2)(3)
|
|
|
|
179
|
|
|
348
|
|
|
(49
|
)
|
|
|
562
|
|
|
1,035
|
|
|
(46
|
)
|
Total other fees
|
|
|
|
926
|
|
|
1,099
|
|
|
(16
|
)
|
|
|
2,765
|
|
|
3,284
|
|
|
(16
|
)
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
359
|
|
|
674
|
|
|
(47
|
)
|
|
|
1,569
|
|
|
1,711
|
|
|
(8
|
)
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
1,308
|
|
|
915
|
|
|
43
|
|
|
|
3,110
|
|
|
3,130
|
|
|
(1
|
)
|
Total mortgage banking
|
|
|
|
1,667
|
|
|
1,589
|
|
|
5
|
|
|
|
4,679
|
|
|
4,841
|
|
|
(3
|
)
|
Insurance
|
|
|
|
293
|
|
|
376
|
|
|
(22
|
)
|
|
|
1,006
|
|
|
1,267
|
|
|
(21
|
)
|
Net gains (losses) from trading activities
|
|
|
|
415
|
|
|
(26
|
)
|
|
NM
|
|
|
|
943
|
|
|
515
|
|
|
83
|
|
Net gains on debt securities
|
|
|
|
106
|
|
|
147
|
|
|
(28
|
)
|
|
|
797
|
|
|
606
|
|
|
32
|
|
Net gains from equity investments
|
|
|
|
140
|
|
|
920
|
|
|
(85
|
)
|
|
|
573
|
|
|
1,807
|
|
|
(68
|
)
|
Lease income
|
|
|
|
534
|
|
|
189
|
|
|
183
|
|
|
|
1,404
|
|
|
476
|
|
|
195
|
|
Life insurance investment income
|
|
|
|
152
|
|
|
150
|
|
|
1
|
|
|
|
455
|
|
|
440
|
|
|
3
|
|
All other (3)
|
|
|
|
163
|
|
|
116
|
|
|
41
|
|
|
|
1,216
|
|
|
(28
|
)
|
|
NM
|
|
Total
|
|
|
$
|
10,376
|
|
|
10,418
|
|
|
—
|
|
|
$
|
31,333
|
|
|
30,758
|
|
|
2
|
|
NM – Not meaningful
|
|
(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 Sep 30,
|
|
|
%
|
|
|
Nine months ended Sep 30,
|
|
|
%
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
|
2016
|
|
|
2015
|
|
|
Change
|
|
Salaries
|
|
|
$
|
4,224
|
|
|
4,035
|
|
|
5
|
%
|
|
$
|
12,359
|
|
|
11,822
|
|
|
5
|
%
|
Commission and incentive compensation
|
|
|
|
2,520
|
|
|
2,604
|
|
|
(3
|
)
|
|
|
7,769
|
|
|
7,895
|
|
|
(2
|
)
|
Employee benefits
|
|
|
|
1,223
|
|
|
821
|
|
|
49
|
|
|
|
3,993
|
|
|
3,404
|
|
|
17
|
|
Equipment
|
|
|
|
491
|
|
|
459
|
|
|
7
|
|
|
|
1,512
|
|
|
1,423
|
|
|
6
|
|
Net occupancy
|
|
|
|
718
|
|
|
728
|
|
|
(1
|
)
|
|
|
2,145
|
|
|
2,161
|
|
|
(1
|
)
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
311
|
|
|
(4
|
)
|
|
|
891
|
|
|
935
|
|
|
(5
|
)
|
FDIC and other deposit assessments
|
|
|
|
310
|
|
|
245
|
|
|
27
|
|
|
|
815
|
|
|
715
|
|
|
14
|
|
Outside professional services
|
|
|
|
802
|
|
|
663
|
|
|
21
|
|
|
|
2,154
|
|
|
1,838
|
|
|
17
|
|
Operating losses
|
|
|
|
577
|
|
|
523
|
|
|
10
|
|
|
|
1,365
|
|
|
1,339
|
|
|
2
|
|
Outside data processing
|
|
|
|
233
|
|
|
258
|
|
|
(10
|
)
|
|
|
666
|
|
|
780
|
|
|
(15
|
)
|
Contract services
|
|
|
|
313
|
|
|
249
|
|
|
26
|
|
|
|
878
|
|
|
712
|
|
|
23
|
|
Postage, stationery and supplies
|
|
|
|
150
|
|
|
174
|
|
|
(14
|
)
|
|
|
466
|
|
|
525
|
|
|
(11
|
)
|
Travel and entertainment
|
|
|
|
144
|
|
|
166
|
|
|
(13
|
)
|
|
|
509
|
|
|
496
|
|
|
3
|
|
Advertising and promotion
|
|
|
|
117
|
|
|
135
|
|
|
(13
|
)
|
|
|
417
|
|
|
422
|
|
|
(1
|
)
|
Insurance
|
|
|
|
23
|
|
|
95
|
|
|
(76
|
)
|
|
|
156
|
|
|
391
|
|
|
(60
|
)
|
Telecommunications
|
|
|
|
101
|
|
|
109
|
|
|
(7
|
)
|
|
|
287
|
|
|
333
|
|
|
(14
|
)
|
Foreclosed assets
|
|
|
|
(17
|
)
|
|
109
|
|
|
NM
|
|
|
|
127
|
|
|
361
|
|
|
(65
|
)
|
Operating leases
|
|
|
|
363
|
|
|
79
|
|
|
359
|
|
|
|
950
|
|
|
205
|
|
|
363
|
|
All other
|
|
|
|
677
|
|
|
636
|
|
|
6
|
|
|
|
1,703
|
|
|
1,618
|
|
|
5
|
|
Total
|
|
|
$
|
13,268
|
|
|
12,399
|
|
|
7
|
|
|
$
|
39,162
|
|
|
37,375
|
|
|
5
|
|
NM - Not meaningful
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Service charges on deposit accounts
|
|
|
$
|
1,370
|
|
|
1,336
|
|
|
1,309
|
|
|
1,329
|
|
|
1,335
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,344
|
|
|
2,291
|
|
|
2,239
|
|
|
2,288
|
|
|
2,368
|
|
Trust and investment management
|
|
|
|
849
|
|
|
835
|
|
|
815
|
|
|
838
|
|
|
843
|
|
Investment banking
|
|
|
|
420
|
|
|
421
|
|
|
331
|
|
|
385
|
|
|
359
|
|
Total trust and investment fees
|
|
|
|
3,613
|
|
|
3,547
|
|
|
3,385
|
|
|
3,511
|
|
|
3,570
|
|
Card fees
|
|
|
|
997
|
|
|
997
|
|
|
941
|
|
|
966
|
|
|
953
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
306
|
|
|
317
|
|
|
313
|
|
|
308
|
|
|
307
|
|
Cash network fees
|
|
|
|
138
|
|
|
138
|
|
|
131
|
|
|
129
|
|
|
136
|
|
Commercial real estate brokerage commissions
|
|
|
|
119
|
|
|
86
|
|
|
117
|
|
|
224
|
|
|
124
|
|
Letters of credit fees
|
|
|
|
81
|
|
|
83
|
|
|
78
|
|
|
86
|
|
|
89
|
|
Wire transfer and other remittance fees
|
|
|
|
103
|
|
|
101
|
|
|
92
|
|
|
95
|
|
|
95
|
|
All other fees (1)(2)(3)
|
|
|
|
179
|
|
|
181
|
|
|
202
|
|
|
198
|
|
|
348
|
|
Total other fees
|
|
|
|
926
|
|
|
906
|
|
|
933
|
|
|
1,040
|
|
|
1,099
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
359
|
|
|
360
|
|
|
850
|
|
|
730
|
|
|
674
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
1,308
|
|
|
1,054
|
|
|
748
|
|
|
930
|
|
|
915
|
|
Total mortgage banking
|
|
|
|
1,667
|
|
|
1,414
|
|
|
1,598
|
|
|
1,660
|
|
|
1,589
|
|
Insurance
|
|
|
|
293
|
|
|
286
|
|
|
427
|
|
|
427
|
|
|
376
|
|
Net gains (losses) from trading activities
|
|
|
|
415
|
|
|
328
|
|
|
200
|
|
|
99
|
|
|
(26
|
)
|
Net gains on debt securities
|
|
|
|
106
|
|
|
447
|
|
|
244
|
|
|
346
|
|
|
147
|
|
Net gains from equity investments
|
|
|
|
140
|
|
|
189
|
|
|
244
|
|
|
423
|
|
|
920
|
|
Lease income
|
|
|
|
534
|
|
|
497
|
|
|
373
|
|
|
145
|
|
|
189
|
|
Life insurance investment income
|
|
|
|
152
|
|
|
149
|
|
|
154
|
|
|
139
|
|
|
150
|
|
All other (3)
|
|
|
|
163
|
|
|
333
|
|
|
720
|
|
|
(87
|
)
|
|
116
|
|
Total
|
|
|
$
|
10,376
|
|
|
10,429
|
|
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
(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
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Salaries
|
|
|
$
|
4,224
|
|
|
4,099
|
|
|
4,036
|
|
|
4,061
|
|
|
4,035
|
|
Commission and incentive compensation
|
|
|
|
2,520
|
|
|
2,604
|
|
|
2,645
|
|
|
2,457
|
|
|
2,604
|
|
Employee benefits
|
|
|
|
1,223
|
|
|
1,244
|
|
|
1,526
|
|
|
1,042
|
|
|
821
|
|
Equipment
|
|
|
|
491
|
|
|
493
|
|
|
528
|
|
|
640
|
|
|
459
|
|
Net occupancy
|
|
|
|
718
|
|
|
716
|
|
|
711
|
|
|
725
|
|
|
728
|
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
299
|
|
|
293
|
|
|
311
|
|
|
311
|
|
FDIC and other deposit assessments
|
|
|
|
310
|
|
|
255
|
|
|
250
|
|
|
258
|
|
|
245
|
|
Outside professional services
|
|
|
|
802
|
|
|
769
|
|
|
583
|
|
|
827
|
|
|
663
|
|
Operating losses
|
|
|
|
577
|
|
|
334
|
|
|
454
|
|
|
532
|
|
|
523
|
|
Outside data processing
|
|
|
|
233
|
|
|
225
|
|
|
208
|
|
|
205
|
|
|
258
|
|
Contract services
|
|
|
|
313
|
|
|
283
|
|
|
282
|
|
|
266
|
|
|
249
|
|
Postage, stationery and supplies
|
|
|
|
150
|
|
|
153
|
|
|
163
|
|
|
177
|
|
|
174
|
|
Travel and entertainment
|
|
|
|
144
|
|
|
193
|
|
|
172
|
|
|
196
|
|
|
166
|
|
Advertising and promotion
|
|
|
|
117
|
|
|
166
|
|
|
134
|
|
|
184
|
|
|
135
|
|
Insurance
|
|
|
|
23
|
|
|
22
|
|
|
111
|
|
|
57
|
|
|
95
|
|
Telecommunications
|
|
|
|
101
|
|
|
94
|
|
|
92
|
|
|
106
|
|
|
109
|
|
Foreclosed assets
|
|
|
|
(17
|
)
|
|
66
|
|
|
78
|
|
|
20
|
|
|
109
|
|
Operating leases
|
|
|
|
363
|
|
|
352
|
|
|
235
|
|
|
73
|
|
|
79
|
|
All other
|
|
|
|
677
|
|
|
499
|
|
|
527
|
|
|
462
|
|
|
636
|
|
Total
|
|
|
$
|
13,268
|
|
|
12,866
|
|
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
|
%
|
|
(in millions, except shares)
|
|
|
2016
|
|
|
2015
|
|
|
|
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,287
|
|
|
19,111
|
|
|
|
1
|
%
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
298,325
|
|
|
270,130
|
|
|
|
10
|
|
Trading assets
|
|
|
|
85,946
|
|
|
77,202
|
|
|
|
11
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
291,591
|
|
|
267,358
|
|
|
|
9
|
|
Held-to-maturity, at cost
|
|
|
|
99,241
|
|
|
80,197
|
|
|
|
24
|
|
Mortgages held for sale
|
|
|
|
27,423
|
|
|
19,603
|
|
|
|
40
|
|
Loans held for sale
|
|
|
|
183
|
|
|
279
|
|
|
|
(34
|
)
|
Loans
|
|
|
|
961,326
|
|
|
916,559
|
|
|
|
5
|
|
Allowance for loan losses
|
|
|
|
(11,583
|
)
|
|
(11,545
|
)
|
|
|
—
|
|
Net loans
|
|
|
|
949,743
|
|
|
905,014
|
|
|
|
5
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
10,415
|
|
|
12,415
|
|
|
|
(16
|
)
|
Amortized
|
|
|
|
1,373
|
|
|
1,308
|
|
|
|
5
|
|
Premises and equipment, net
|
|
|
|
8,322
|
|
|
8,704
|
|
|
|
(4
|
)
|
Goodwill
|
|
|
|
26,688
|
|
|
25,529
|
|
|
|
5
|
|
Other assets
|
|
|
|
123,587
|
|
|
100,782
|
|
|
|
23
|
|
Total assets
|
|
|
$
|
1,942,124
|
|
|
1,787,632
|
|
|
|
9
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
376,136
|
|
|
351,579
|
|
|
|
7
|
|
Interest-bearing deposits
|
|
|
|
899,758
|
|
|
871,733
|
|
|
|
3
|
|
Total deposits
|
|
|
|
1,275,894
|
|
|
1,223,312
|
|
|
|
4
|
|
Short-term borrowings
|
|
|
|
124,668
|
|
|
97,528
|
|
|
|
28
|
|
Accrued expenses and other liabilities
|
|
|
|
82,769
|
|
|
73,365
|
|
|
|
13
|
|
Long-term debt
|
|
|
|
254,835
|
|
|
199,536
|
|
|
|
28
|
|
Total liabilities
|
|
|
|
1,738,166
|
|
|
1,593,741
|
|
|
|
9
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
24,594
|
|
|
22,214
|
|
|
|
11
|
|
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
|
|
|
|
60,685
|
|
|
60,714
|
|
|
|
—
|
|
Retained earnings
|
|
|
|
130,288
|
|
|
120,866
|
|
|
|
8
|
|
Cumulative other comprehensive income
|
|
|
|
2,184
|
|
|
297
|
|
|
|
635
|
|
Treasury stock – 457,922,273 shares and 389,682,664 shares
|
|
|
|
(22,247
|
)
|
|
(18,867
|
)
|
|
|
18
|
|
Unearned ESOP shares
|
|
|
|
(1,612
|
)
|
|
(1,362
|
)
|
|
|
18
|
|
Total Wells Fargo stockholders’ equity
|
|
|
|
203,028
|
|
|
192,998
|
|
|
|
5
|
|
Noncontrolling interests
|
|
|
|
930
|
|
|
893
|
|
|
|
4
|
|
Total equity
|
|
|
|
203,958
|
|
|
193,891
|
|
|
|
5
|
|
Total liabilities and equity
|
|
|
$
|
1,942,124
|
|
|
1,787,632
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,287
|
|
|
20,407
|
|
|
19,084
|
|
|
19,111
|
|
|
17,395
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
298,325
|
|
|
295,521
|
|
|
300,547
|
|
|
270,130
|
|
|
254,811
|
|
Trading assets
|
|
|
|
85,946
|
|
|
80,093
|
|
|
73,158
|
|
|
77,202
|
|
|
73,894
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
291,591
|
|
|
253,006
|
|
|
255,551
|
|
|
267,358
|
|
|
266,406
|
|
Held-to-maturity, at cost
|
|
|
|
99,241
|
|
|
100,420
|
|
|
79,348
|
|
|
80,197
|
|
|
78,668
|
|
Mortgages held for sale
|
|
|
|
27,423
|
|
|
23,930
|
|
|
18,041
|
|
|
19,603
|
|
|
21,840
|
|
Loans held for sale
|
|
|
|
183
|
|
|
220
|
|
|
280
|
|
|
279
|
|
|
430
|
|
Loans
|
|
|
|
961,326
|
|
|
957,157
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
Allowance for loan losses
|
|
|
|
(11,583
|
)
|
|
(11,664
|
)
|
|
(11,621
|
)
|
|
(11,545
|
)
|
|
(11,659
|
)
|
Net loans
|
|
|
|
949,743
|
|
|
945,493
|
|
|
935,637
|
|
|
905,014
|
|
|
891,574
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
10,415
|
|
|
10,396
|
|
|
11,333
|
|
|
12,415
|
|
|
11,778
|
|
Amortized
|
|
|
|
1,373
|
|
|
1,353
|
|
|
1,359
|
|
|
1,308
|
|
|
1,277
|
|
Premises and equipment, net
|
|
|
|
8,322
|
|
|
8,289
|
|
|
8,349
|
|
|
8,704
|
|
|
8,800
|
|
Goodwill
|
|
|
|
26,688
|
|
|
26,963
|
|
|
27,003
|
|
|
25,529
|
|
|
25,684
|
|
Other assets
|
|
|
|
123,587
|
|
|
123,144
|
|
|
119,492
|
|
|
100,782
|
|
|
98,708
|
|
Total assets
|
|
|
$
|
1,942,124
|
|
|
1,889,235
|
|
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
376,136
|
|
|
361,934
|
|
|
348,888
|
|
|
351,579
|
|
|
339,761
|
|
Interest-bearing deposits
|
|
|
|
899,758
|
|
|
883,539
|
|
|
892,602
|
|
|
871,733
|
|
|
862,418
|
|
Total deposits
|
|
|
|
1,275,894
|
|
|
1,245,473
|
|
|
1,241,490
|
|
|
1,223,312
|
|
|
1,202,179
|
|
Short-term borrowings
|
|
|
|
124,668
|
|
|
120,258
|
|
|
107,703
|
|
|
97,528
|
|
|
88,069
|
|
Accrued expenses and other liabilities
|
|
|
|
82,769
|
|
|
76,916
|
|
|
73,597
|
|
|
73,365
|
|
|
81,700
|
|
Long-term debt
|
|
|
|
254,835
|
|
|
243,927
|
|
|
227,888
|
|
|
199,536
|
|
|
185,274
|
|
Total liabilities
|
|
|
|
1,738,166
|
|
|
1,686,574
|
|
|
1,650,678
|
|
|
1,593,741
|
|
|
1,557,222
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
24,594
|
|
|
24,830
|
|
|
24,051
|
|
|
22,214
|
|
|
22,424
|
|
Common stock
|
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
Additional paid-in capital
|
|
|
|
60,685
|
|
|
60,691
|
|
|
60,602
|
|
|
60,714
|
|
|
60,998
|
|
Retained earnings
|
|
|
|
130,288
|
|
|
127,076
|
|
|
123,891
|
|
|
120,866
|
|
|
117,593
|
|
Cumulative other comprehensive income
|
|
|
|
2,184
|
|
|
2,948
|
|
|
1,774
|
|
|
297
|
|
|
2,389
|
|
Treasury stock
|
|
|
|
(22,247
|
)
|
|
(21,068
|
)
|
|
(19,687
|
)
|
|
(18,867
|
)
|
|
(17,899
|
)
|
Unearned ESOP shares
|
|
|
|
(1,612
|
)
|
|
(1,868
|
)
|
|
(2,271
|
)
|
|
(1,362
|
)
|
|
(1,590
|
)
|
Total Wells Fargo stockholders’ equity
|
|
|
|
203,028
|
|
|
201,745
|
|
|
197,496
|
|
|
192,998
|
|
|
193,051
|
|
Noncontrolling interests
|
|
|
|
930
|
|
|
916
|
|
|
1,008
|
|
|
893
|
|
|
992
|
|
Total equity
|
|
|
|
203,958
|
|
|
202,661
|
|
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
Total liabilities and equity
|
|
|
$
|
1,942,124
|
|
|
1,889,235
|
|
|
1,849,182
|
|
|
1,787,632
|
|
|
1,751,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
$
|
26,376
|
|
|
27,939
|
|
|
33,813
|
|
|
36,250
|
|
|
35,423
|
Securities of U.S. states and political subdivisions
|
|
|
|
55,366
|
|
|
54,024
|
|
|
51,574
|
|
|
49,990
|
|
|
49,423
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
135,692
|
|
|
95,868
|
|
|
95,463
|
|
|
104,546
|
|
|
105,023
|
Residential and commercial
|
|
|
|
18,387
|
|
|
19,938
|
|
|
21,246
|
|
|
22,646
|
|
|
22,836
|
Total mortgage-backed securities
|
|
|
|
154,079
|
|
|
115,806
|
|
|
116,709
|
|
|
127,192
|
|
|
127,859
|
Other debt securities
|
|
|
|
54,537
|
|
|
53,935
|
|
|
51,956
|
|
|
52,289
|
|
|
51,760
|
Total available-for-sale debt securities
|
|
|
|
290,358
|
|
|
251,704
|
|
|
254,052
|
|
|
265,721
|
|
|
264,465
|
Marketable equity securities
|
|
|
|
1,233
|
|
|
1,302
|
|
|
1,499
|
|
|
1,637
|
|
|
1,941
|
Total available-for-sale securities
|
|
|
|
291,591
|
|
|
253,006
|
|
|
255,551
|
|
|
267,358
|
|
|
266,406
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44,682
|
|
|
44,675
|
|
|
44,667
|
|
|
44,660
|
|
|
44,653
|
Securities of U.S. states and political subdivisions
|
|
|
|
2,994
|
|
|
2,181
|
|
|
2,183
|
|
|
2,185
|
|
|
2,187
|
Federal agency and other mortgage-backed securities (1)
|
|
|
|
47,721
|
|
|
49,594
|
|
|
28,016
|
|
|
28,604
|
|
|
26,828
|
Other debt securities
|
|
|
|
3,844
|
|
|
3,970
|
|
|
4,482
|
|
|
4,748
|
|
|
5,000
|
Total held-to-maturity debt securities
|
|
|
|
99,241
|
|
|
100,420
|
|
|
79,348
|
|
|
80,197
|
|
|
78,668
|
Total investment securities
|
|
|
$
|
390,832
|
|
|
353,426
|
|
|
334,899
|
|
|
347,555
|
|
|
345,074
|
(1) Predominantly consists of federal agency mortgage-backed
securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER LOANS
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
324,020
|
|
|
323,858
|
|
|
321,547
|
|
|
299,892
|
|
|
292,234
|
Real estate mortgage
|
|
|
|
130,223
|
|
|
128,320
|
|
|
124,711
|
|
|
122,160
|
|
|
121,252
|
Real estate construction
|
|
|
|
23,340
|
|
|
23,387
|
|
|
22,944
|
|
|
22,164
|
|
|
21,710
|
Lease financing
|
|
|
|
18,871
|
|
|
18,973
|
|
|
19,003
|
|
|
12,367
|
|
|
12,142
|
Total commercial
|
|
|
|
496,454
|
|
|
494,538
|
|
|
488,205
|
|
|
456,583
|
|
|
447,338
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
278,689
|
|
|
277,162
|
|
|
274,734
|
|
|
273,869
|
|
|
271,311
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
48,105
|
|
|
49,772
|
|
|
51,324
|
|
|
53,004
|
|
|
54,592
|
Credit card
|
|
|
|
34,992
|
|
|
34,137
|
|
|
33,139
|
|
|
34,039
|
|
|
32,286
|
Automobile
|
|
|
|
62,873
|
|
|
61,939
|
|
|
60,658
|
|
|
59,966
|
|
|
59,164
|
Other revolving credit and installment
|
|
|
|
40,213
|
|
|
39,609
|
|
|
39,198
|
|
|
39,098
|
|
|
38,542
|
Total consumer
|
|
|
|
464,872
|
|
|
462,619
|
|
|
459,053
|
|
|
459,976
|
|
|
455,895
|
Total loans (1)
|
|
|
$
|
961,326
|
|
|
957,157
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
(1) Includes $17.7 billion, $19.3 billion, $20.3 billion, $20.0
billion, and $20.7 billion of purchased credit-impaired (PCI)
loans at September 30, June 30, and March 31, 2016, and December
31, and September 30, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
51,515
|
|
|
50,515
|
|
|
51,884
|
|
|
49,049
|
|
|
46,380
|
Real estate mortgage
|
|
|
|
8,466
|
|
|
8,467
|
|
|
8,367
|
|
|
8,350
|
|
|
8,662
|
Real estate construction
|
|
|
|
310
|
|
|
246
|
|
|
311
|
|
|
444
|
|
|
396
|
Lease financing
|
|
|
|
958
|
|
|
987
|
|
|
983
|
|
|
274
|
|
|
279
|
Total commercial foreign loans
|
|
|
$
|
61,249
|
|
|
60,215
|
|
|
61,545
|
|
|
58,117
|
|
|
55,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
3,331
|
|
|
3,464
|
|
|
2,911
|
|
|
1,363
|
|
|
1,031
|
Real estate mortgage
|
|
|
|
780
|
|
|
872
|
|
|
896
|
|
|
969
|
|
|
1,125
|
Real estate construction
|
|
|
|
59
|
|
|
59
|
|
|
63
|
|
|
66
|
|
|
151
|
Lease financing
|
|
|
|
92
|
|
|
112
|
|
|
99
|
|
|
26
|
|
|
29
|
Total commercial
|
|
|
|
4,262
|
|
|
4,507
|
|
|
3,969
|
|
|
2,424
|
|
|
2,336
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
5,310
|
|
|
5,970
|
|
|
6,683
|
|
|
7,293
|
|
|
7,425
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
1,259
|
|
|
1,330
|
|
|
1,421
|
|
|
1,495
|
|
|
1,612
|
Automobile
|
|
|
|
108
|
|
|
111
|
|
|
114
|
|
|
121
|
|
|
123
|
Other revolving credit and installment
|
|
|
|
47
|
|
|
45
|
|
|
47
|
|
|
49
|
|
|
41
|
Total consumer
|
|
|
|
6,724
|
|
|
7,456
|
|
|
8,265
|
|
|
8,958
|
|
|
9,201
|
Total nonaccrual loans (1)(2)(3)
|
|
|
$
|
10,986
|
|
|
11,963
|
|
|
12,234
|
|
|
11,382
|
|
|
11,537
|
As a percentage of total loans
|
|
|
|
1.14
|
%
|
|
1.25
|
|
|
1.29
|
|
|
1.24
|
|
|
1.28
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
$
|
282
|
|
|
321
|
|
|
386
|
|
|
446
|
|
|
502
|
Non-government insured/guaranteed
|
|
|
|
738
|
|
|
796
|
|
|
893
|
|
|
979
|
|
|
1,265
|
Total foreclosed assets
|
|
|
|
1,020
|
|
|
1,117
|
|
|
1,279
|
|
|
1,425
|
|
|
1,767
|
Total nonperforming assets
|
|
|
$
|
12,006
|
|
|
13,080
|
|
|
13,513
|
|
|
12,807
|
|
|
13,304
|
As a percentage of total loans
|
|
|
|
1.25
|
%
|
|
1.37
|
|
|
1.43
|
|
|
1.40
|
|
|
1.47
|
(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
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
Total (excluding PCI)(1):
|
|
|
$
|
12,068
|
|
|
12,385
|
|
|
13,060
|
|
|
14,380
|
|
|
14,405
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
|
11,198
|
|
|
11,577
|
|
|
12,233
|
|
|
13,373
|
|
|
13,500
|
Less: Student loans guaranteed under the FFELP (4)
|
|
|
|
17
|
|
|
20
|
|
|
24
|
|
|
26
|
|
|
33
|
Total, not government insured/guaranteed
|
|
|
$
|
853
|
|
|
788
|
|
|
803
|
|
|
981
|
|
|
872
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
47
|
|
|
36
|
|
|
24
|
|
|
97
|
|
|
53
|
Real estate mortgage
|
|
|
|
4
|
|
|
22
|
|
|
8
|
|
|
13
|
|
|
24
|
Real estate construction
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|
—
|
Total commercial
|
|
|
|
51
|
|
|
58
|
|
|
34
|
|
|
114
|
|
|
77
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
|
171
|
|
|
169
|
|
|
167
|
|
|
224
|
|
|
216
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
|
54
|
|
|
52
|
|
|
55
|
|
|
65
|
|
|
61
|
Credit card
|
|
|
|
392
|
|
|
348
|
|
|
389
|
|
|
397
|
|
|
353
|
Automobile
|
|
|
|
81
|
|
|
64
|
|
|
55
|
|
|
79
|
|
|
66
|
Other revolving credit and installment
|
|
|
|
104
|
|
|
97
|
|
|
103
|
|
|
102
|
|
|
99
|
Total consumer
|
|
|
|
802
|
|
|
730
|
|
|
769
|
|
|
867
|
|
|
795
|
Total, not government insured/guaranteed
|
|
|
$
|
853
|
|
|
788
|
|
|
803
|
|
|
981
|
|
|
872
|
(1) PCI loans totaled $2.2 billion, $2.4 billion, $2.7 billion,
$2.9 billion and $3.2 billion, at September 30, June 30, and March
31, 2016, and December 31, and September 30, 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 since the
merger with Wachovia is presented in the following table.
|
|
(in millions)
|
|
|
Quarter ended Sep 30, 2016
|
|
|
|
Nine months ended Sep 30, 2016
|
|
|
|
2009-2015
|
|
Balance, beginning of period
|
|
|
$
|
15,727
|
|
|
|
16,301
|
|
|
|
10,447
|
|
Addition of accretable yield due to acquisitions
|
|
|
|
(11
|
)
|
|
|
58
|
|
|
|
132
|
|
Accretion into interest income (1)
|
|
|
|
(324
|
)
|
|
|
(992
|
)
|
|
|
(14,212
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
|
—
|
|
|
|
(9
|
)
|
|
|
(458
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (3)
|
|
|
|
1,163
|
|
|
|
1,221
|
|
|
|
9,734
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (4)
|
|
|
|
(4,936
|
)
|
|
|
(4,960
|
)
|
|
|
10,658
|
|
Balance, end of period
|
|
|
$
|
11,619
|
|
|
|
11,619
|
|
|
|
16,301
|
|
(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) At September 30, 2016, our carrying value for PCI loans
totaled $17.7 billion and the remainder of nonaccretable
difference established in purchase accounting totaled $936
million. The nonaccretable difference absorbs losses of
contractual amounts that exceed our carrying value for PCI loans.
|
(4) 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
September 30, 2016
|
|
|
|
|
PCI loans
|
|
|
|
All other loans
|
|
(in millions)
|
|
|
Adjusted unpaid principal balance (2)
|
|
|
|
Current LTV ratio (3)
|
|
|
|
Carrying value (4)
|
|
|
|
Ratio of carrying value to current value (5)
|
|
|
|
Carrying value (4)
|
|
|
|
Ratio of carrying value to current value (5)
|
|
California
|
|
|
$
|
14,852
|
|
|
|
66
|
%
|
|
|
$
|
11,643
|
|
|
|
51
|
%
|
|
|
$
|
8,330
|
|
|
|
48
|
%
|
Florida
|
|
|
|
1,701
|
|
|
|
76
|
|
|
|
|
1,266
|
|
|
|
55
|
|
|
|
|
1,740
|
|
|
|
61
|
|
New Jersey
|
|
|
|
697
|
|
|
|
80
|
|
|
|
|
509
|
|
|
|
57
|
|
|
|
|
1,142
|
|
|
|
67
|
|
New York
|
|
|
|
494
|
|
|
|
75
|
|
|
|
|
415
|
|
|
|
57
|
|
|
|
|
561
|
|
|
|
64
|
|
Texas
|
|
|
|
182
|
|
|
|
50
|
|
|
|
|
161
|
|
|
|
44
|
|
|
|
|
686
|
|
|
|
40
|
|
Other states
|
|
|
|
3,458
|
|
|
|
75
|
|
|
|
|
2,712
|
|
|
|
58
|
|
|
|
|
4,834
|
|
|
|
61
|
|
Total Pick-a-Pay loans
|
|
|
$
|
21,384
|
|
|
|
69
|
|
|
|
$
|
16,706
|
|
|
|
53
|
|
|
|
$
|
17,293
|
|
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended September 30,
|
|
|
Nine months ended September 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Balance, beginning of period
|
|
|
$
|
12,749
|
|
|
12,614
|
|
|
12,512
|
|
|
13,169
|
|
Provision for credit losses
|
|
|
|
805
|
|
|
703
|
|
|
2,965
|
|
|
1,611
|
|
Interest income on certain impaired loans (1)
|
|
|
|
(54
|
)
|
|
(48
|
)
|
|
(153
|
)
|
|
(150
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
(324
|
)
|
|
(172
|
)
|
|
(1,110
|
)
|
|
(459
|
)
|
Real estate mortgage
|
|
|
|
(7
|
)
|
|
(9
|
)
|
|
(13
|
)
|
|
(48
|
)
|
Real estate construction
|
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
Lease financing
|
|
|
|
(4
|
)
|
|
(5
|
)
|
|
(25
|
)
|
|
(11
|
)
|
Total commercial
|
|
|
|
(335
|
)
|
|
(186
|
)
|
|
(1,149
|
)
|
|
(520
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
(106
|
)
|
|
(145
|
)
|
|
(366
|
)
|
|
(394
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
(119
|
)
|
|
(159
|
)
|
|
(385
|
)
|
|
(501
|
)
|
Credit card
|
|
|
|
(296
|
)
|
|
(259
|
)
|
|
(930
|
)
|
|
(821
|
)
|
Automobile
|
|
|
|
(215
|
)
|
|
(186
|
)
|
|
(602
|
)
|
|
(531
|
)
|
Other revolving credit and installment
|
|
|
|
(170
|
)
|
|
(160
|
)
|
|
(508
|
)
|
|
(465
|
)
|
Total consumer
|
|
|
|
(906
|
)
|
|
(909
|
)
|
|
(2,791
|
)
|
|
(2,712
|
)
|
Total loan charge-offs
|
|
|
|
(1,241
|
)
|
|
(1,095
|
)
|
|
(3,940
|
)
|
|
(3,232
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
65
|
|
|
50
|
|
|
210
|
|
|
192
|
|
Real estate mortgage
|
|
|
|
35
|
|
|
32
|
|
|
90
|
|
|
97
|
|
Real estate construction
|
|
|
|
18
|
|
|
8
|
|
|
30
|
|
|
25
|
|
Lease financing
|
|
|
|
2
|
|
|
2
|
|
|
10
|
|
|
6
|
|
Total commercial
|
|
|
|
120
|
|
|
92
|
|
|
340
|
|
|
320
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
86
|
|
|
83
|
|
|
284
|
|
|
182
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
70
|
|
|
70
|
|
|
200
|
|
|
195
|
|
Credit card
|
|
|
|
51
|
|
|
43
|
|
|
153
|
|
|
123
|
|
Automobile
|
|
|
|
78
|
|
|
73
|
|
|
248
|
|
|
249
|
|
Other revolving credit and installment
|
|
|
|
31
|
|
|
31
|
|
|
100
|
|
|
102
|
|
Total consumer
|
|
|
|
316
|
|
|
300
|
|
|
985
|
|
|
851
|
|
Total loan recoveries
|
|
|
|
436
|
|
|
392
|
|
|
1,325
|
|
|
1,171
|
|
Net loan charge-offs
|
|
|
|
(805
|
)
|
|
(703
|
)
|
|
(2,615
|
)
|
|
(2,061
|
)
|
Other
|
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(15
|
)
|
|
(7
|
)
|
Balance, end of period
|
|
|
$
|
12,694
|
|
|
12,562
|
|
|
12,694
|
|
|
12,562
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
11,583
|
|
|
11,659
|
|
|
11,583
|
|
|
11,659
|
|
Allowance for unfunded credit commitments
|
|
|
|
1,111
|
|
|
903
|
|
|
1,111
|
|
|
903
|
|
Allowance for credit losses
|
|
|
$
|
12,694
|
|
|
12,562
|
|
|
12,694
|
|
|
12,562
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
|
0.33
|
%
|
|
0.31
|
|
|
0.37
|
|
|
0.31
|
|
Allowance for loan losses as a percentage of total loans
|
|
|
|
1.20
|
|
|
1.29
|
|
|
1.20
|
|
|
1.29
|
|
Allowance for credit losses as a percentage of total loans
|
|
|
|
1.32
|
|
|
1.39
|
|
|
1.32
|
|
|
1.39
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Balance, beginning of quarter
|
|
|
$
|
12,749
|
|
|
12,668
|
|
|
12,512
|
|
|
12,562
|
|
|
12,614
|
|
Provision for credit losses
|
|
|
|
805
|
|
|
1,074
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
Interest income on certain impaired loans (1)
|
|
|
|
(54
|
)
|
|
(51
|
)
|
|
(48
|
)
|
|
(48
|
)
|
|
(48
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
(324
|
)
|
|
(437
|
)
|
|
(349
|
)
|
|
(275
|
)
|
|
(172
|
)
|
Real estate mortgage
|
|
|
|
(7
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(11
|
)
|
|
(9
|
)
|
Real estate construction
|
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
Lease financing
|
|
|
|
(4
|
)
|
|
(17
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
(5
|
)
|
Total commercial
|
|
|
|
(335
|
)
|
|
(458
|
)
|
|
(356
|
)
|
|
(291
|
)
|
|
(186
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
(106
|
)
|
|
(123
|
)
|
|
(137
|
)
|
|
(113
|
)
|
|
(145
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
(119
|
)
|
|
(133
|
)
|
|
(133
|
)
|
|
(134
|
)
|
|
(159
|
)
|
Credit card
|
|
|
|
(296
|
)
|
|
(320
|
)
|
|
(314
|
)
|
|
(295
|
)
|
|
(259
|
)
|
Automobile
|
|
|
|
(215
|
)
|
|
(176
|
)
|
|
(211
|
)
|
|
(211
|
)
|
|
(186
|
)
|
Other revolving credit and installment
|
|
|
|
(170
|
)
|
|
(163
|
)
|
|
(175
|
)
|
|
(178
|
)
|
|
(160
|
)
|
Total consumer
|
|
|
|
(906
|
)
|
|
(915
|
)
|
|
(970
|
)
|
|
(931
|
)
|
|
(909
|
)
|
Total loan charge-offs
|
|
|
|
(1,241
|
)
|
|
(1,373
|
)
|
|
(1,326
|
)
|
|
(1,222
|
)
|
|
(1,095
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
65
|
|
|
69
|
|
|
76
|
|
|
60
|
|
|
50
|
|
Real estate mortgage
|
|
|
|
35
|
|
|
23
|
|
|
32
|
|
|
30
|
|
|
32
|
|
Real estate construction
|
|
|
|
18
|
|
|
4
|
|
|
8
|
|
|
12
|
|
|
8
|
|
Lease financing
|
|
|
|
2
|
|
|
5
|
|
|
3
|
|
|
2
|
|
|
2
|
|
Total commercial
|
|
|
|
120
|
|
|
101
|
|
|
119
|
|
|
104
|
|
|
92
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
86
|
|
|
109
|
|
|
89
|
|
|
63
|
|
|
83
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
70
|
|
|
71
|
|
|
59
|
|
|
64
|
|
|
70
|
|
Credit card
|
|
|
|
51
|
|
|
50
|
|
|
52
|
|
|
52
|
|
|
43
|
|
Automobile
|
|
|
|
78
|
|
|
86
|
|
|
84
|
|
|
76
|
|
|
73
|
|
Other revolving credit and installment
|
|
|
|
31
|
|
|
32
|
|
|
37
|
|
|
32
|
|
|
31
|
|
Total consumer
|
|
|
|
316
|
|
|
348
|
|
|
321
|
|
|
287
|
|
|
300
|
|
Total loan recoveries
|
|
|
|
436
|
|
|
449
|
|
|
440
|
|
|
391
|
|
|
392
|
|
Net loan charge-offs
|
|
|
|
(805
|
)
|
|
(924
|
)
|
|
(886
|
)
|
|
(831
|
)
|
|
(703
|
)
|
Other
|
|
|
|
(1
|
)
|
|
(18
|
)
|
|
4
|
|
|
(2
|
)
|
|
(4
|
)
|
Balance, end of quarter
|
|
|
$
|
12,694
|
|
|
12,749
|
|
|
12,668
|
|
|
12,512
|
|
|
12,562
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
11,583
|
|
|
11,664
|
|
|
11,621
|
|
|
11,545
|
|
|
11,659
|
|
Allowance for unfunded credit commitments
|
|
|
|
1,111
|
|
|
1,085
|
|
|
1,047
|
|
|
967
|
|
|
903
|
|
Allowance for credit losses
|
|
|
$
|
12,694
|
|
|
12,749
|
|
|
12,668
|
|
|
12,512
|
|
|
12,562
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
|
0.33
|
%
|
|
0.39
|
|
|
0.38
|
|
|
0.36
|
|
|
0.31
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
1.20
|
|
|
1.22
|
|
|
1.23
|
|
|
1.26
|
|
|
1.29
|
|
Nonaccrual loans
|
|
|
|
105
|
|
|
98
|
|
|
95
|
|
|
101
|
|
|
101
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
96
|
|
|
89
|
|
|
86
|
|
|
90
|
|
|
88
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
|
1.32
|
|
|
1.33
|
|
|
1.34
|
|
|
1.37
|
|
|
1.39
|
|
Nonaccrual loans
|
|
|
|
116
|
|
|
107
|
|
|
104
|
|
|
110
|
|
|
109
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
|
106
|
|
|
97
|
|
|
94
|
|
|
98
|
|
|
94
|
|
(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 attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
TANGIBLE COMMON EQUITY (1)
|
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions, except ratios)
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Tangible book value per common share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
$
|
203,958
|
|
|
202,661
|
|
|
198,504
|
|
|
193,891
|
|
|
194,043
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(24,594
|
)
|
|
(24,830
|
)
|
|
(24,051
|
)
|
|
(22,214
|
)
|
|
(22,424
|
)
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(130
|
)
|
|
(150
|
)
|
|
(182
|
)
|
|
(110
|
)
|
|
(128
|
)
|
Unearned ESOP shares
|
|
|
|
|
|
1,612
|
|
|
1,868
|
|
|
2,271
|
|
|
1,362
|
|
|
1,590
|
|
Noncontrolling interests
|
|
|
|
|
|
(930
|
)
|
|
(916
|
)
|
|
(1,008
|
)
|
|
(893
|
)
|
|
(992
|
)
|
Total common stockholders' equity
|
|
(A)
|
|
|
|
179,916
|
|
|
178,633
|
|
|
175,534
|
|
|
172,036
|
|
|
172,089
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,688
|
)
|
|
(26,963
|
)
|
|
(27,003
|
)
|
|
(25,529
|
)
|
|
(25,684
|
)
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(3,001
|
)
|
|
(3,356
|
)
|
|
(3,814
|
)
|
|
(3,167
|
)
|
|
(3,479
|
)
|
Other assets (2)
|
|
|
|
|
|
(2,230
|
)
|
|
(2,110
|
)
|
|
(2,023
|
)
|
|
(2,074
|
)
|
|
(1,742
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
|
1,832
|
|
|
1,906
|
|
|
1,985
|
|
|
2,071
|
|
|
2,168
|
|
Tangible common equity
|
|
(B)
|
|
|
$
|
149,829
|
|
|
148,110
|
|
|
144,679
|
|
|
143,337
|
|
|
143,352
|
|
Common shares outstanding
|
|
(C)
|
|
|
|
5,023.9
|
|
|
5,048.5
|
|
|
5,075.9
|
|
|
5,092.1
|
|
|
5,108.5
|
|
Book value per common share
|
|
(A)/(C)
|
|
|
$
|
35.81
|
|
|
35.38
|
|
|
34.58
|
|
|
33.78
|
|
|
33.69
|
|
Tangible book value per common share
|
|
(B)/(C)
|
|
|
|
29.82
|
|
|
29.34
|
|
|
28.50
|
|
|
28.15
|
|
|
28.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Nine months ended
|
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Sep 30,
|
|
|
Sep 30,
|
|
(in millions, except ratios)
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Return on average tangible common
equity (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock
|
|
(A)
|
|
|
$
|
5,243
|
|
|
5,173
|
|
|
5,085
|
|
|
5,203
|
|
|
5,443
|
|
|
15,501
|
|
|
16,267
|
|
Average total equity
|
|
|
|
|
|
203,883
|
|
|
201,003
|
|
|
196,586
|
|
|
195,025
|
|
|
192,203
|
|
|
200,502
|
|
|
190,424
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(24,813
|
)
|
|
(24,091
|
)
|
|
(23,963
|
)
|
|
(22,407
|
)
|
|
(21,807
|
)
|
|
(24,291
|
)
|
|
(21,481
|
)
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(148
|
)
|
|
(168
|
)
|
|
(201
|
)
|
|
(127
|
)
|
|
(147
|
)
|
|
(172
|
)
|
|
(142
|
)
|
Unearned ESOP shares
|
|
|
|
|
|
1,850
|
|
|
2,094
|
|
|
2,509
|
|
|
1,572
|
|
|
1,818
|
|
|
2,150
|
|
|
1,764
|
|
Noncontrolling interests
|
|
|
|
|
|
(927
|
)
|
|
(984
|
)
|
|
(904
|
)
|
|
(979
|
)
|
|
(1,012
|
)
|
|
(938
|
)
|
|
(1,071
|
)
|
Average common stockholders’ equity
|
|
(B)
|
|
|
|
179,845
|
|
|
177,854
|
|
|
174,027
|
|
|
173,084
|
|
|
171,055
|
|
|
177,251
|
|
|
169,494
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,979
|
)
|
|
(27,037
|
)
|
|
(26,069
|
)
|
|
(25,580
|
)
|
|
(25,703
|
)
|
|
(26,696
|
)
|
|
(25,703
|
)
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(3,145
|
)
|
|
(3,600
|
)
|
|
(3,407
|
)
|
|
(3,317
|
)
|
|
(3,636
|
)
|
|
(3,383
|
)
|
|
(3,953
|
)
|
Other assets (2)
|
|
|
|
|
|
(2,131
|
)
|
|
(2,096
|
)
|
|
(2,065
|
)
|
|
(1,987
|
)
|
|
(1,757
|
)
|
|
(2,097
|
)
|
|
(1,542
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
|
1,855
|
|
|
1,934
|
|
|
2,014
|
|
|
2,103
|
|
|
2,200
|
|
|
1,973
|
|
|
2,344
|
|
Average tangible common equity
|
|
(C)
|
|
|
$
|
149,445
|
|
|
147,055
|
|
|
144,500
|
|
|
144,303
|
|
|
142,159
|
|
|
147,048
|
|
|
140,640
|
|
Return on average common stockholders' equity (ROE)
|
|
(A)/(B)
|
|
|
|
11.60
|
%
|
|
11.70
|
|
|
11.75
|
|
|
11.93
|
|
|
12.62
|
|
|
11.68
|
|
|
12.83
|
|
Return on average tangible common equity (ROTCE)
|
|
(A)/(C)
|
|
|
|
13.96
|
|
|
14.15
|
|
|
14.15
|
|
|
14.30
|
|
|
15.19
|
|
|
14.08
|
|
|
15.46
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity.
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in billions, except ratio)
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Total equity
|
|
|
|
$
|
204.0
|
|
|
202.7
|
|
|
198.5
|
|
|
193.9
|
|
|
194.0
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(24.6
|
)
|
|
(24.8
|
)
|
|
(24.1
|
)
|
|
(22.2
|
)
|
|
(22.4
|
)
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
Unearned ESOP shares
|
|
|
|
|
1.6
|
|
|
1.9
|
|
|
2.3
|
|
|
1.3
|
|
|
1.5
|
|
Noncontrolling interests
|
|
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(0.9
|
)
|
|
(0.9
|
)
|
Total common stockholders' equity
|
|
|
|
|
179.9
|
|
|
178.6
|
|
|
175.5
|
|
|
172.0
|
|
|
172.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
(26.7
|
)
|
|
(27.0
|
)
|
|
(27.0
|
)
|
|
(25.5
|
)
|
|
(25.7
|
)
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
(3.0
|
)
|
|
(3.4
|
)
|
|
(3.8
|
)
|
|
(3.2
|
)
|
|
(3.5
|
)
|
Other assets (2)
|
|
|
|
|
(2.2
|
)
|
|
(2.0
|
)
|
|
(2.1
|
)
|
|
(2.1
|
)
|
|
(1.7
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
1.8
|
|
|
1.9
|
|
|
2.0
|
|
|
2.1
|
|
|
2.2
|
|
Investment in certain subsidiaries and other
|
|
|
|
|
(2.0
|
)
|
|
(2.5
|
)
|
|
(1.9
|
)
|
|
(0.9
|
)
|
|
(1.6
|
)
|
Common Equity Tier 1 (Fully Phased-In) under Basel III
|
|
(A)
|
|
|
147.8
|
|
|
145.6
|
|
|
142.7
|
|
|
142.4
|
|
|
141.8
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)
|
|
(B)
|
|
$
|
1,386.7
|
|
|
1,372.9
|
|
|
1,345.1
|
|
|
1,321.7
|
|
|
1,331.8
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (5)
|
|
(A)/(B)
|
|
|
10.7
|
%
|
|
10.6
|
|
|
10.6
|
|
|
10.8
|
|
|
10.6
|
|
(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.
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
(4) The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach, which replaced Basel I, and
the Advanced Approach applicable to certain institutions. Under
the final rules, we are subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. Because the
final determination of our CET1 ratio and which approach will
produce the lower CET1 ratio as of September 30, 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 June 30 and March 31, 2016, and December 31 and September 30,
2015, was calculated under the Basel III Standardized Approach
RWAs.
|
(5) The Company’s September 30, 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 Sep 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
7,430
|
|
|
7,409
|
|
|
4,062
|
|
|
3,611
|
|
|
977
|
|
|
887
|
|
|
(517
|
)
|
|
(450
|
)
|
|
11,952
|
|
|
11,457
|
Provision (reversal of provision) for credit losses
|
|
|
|
651
|
|
|
668
|
|
|
157
|
|
|
36
|
|
|
4
|
|
|
(6
|
)
|
|
(7
|
)
|
|
5
|
|
|
805
|
|
|
703
|
Noninterest income
|
|
|
|
4,957
|
|
|
5,524
|
|
|
3,085
|
|
|
2,715
|
|
|
3,122
|
|
|
2,991
|
|
|
(788
|
)
|
|
(812
|
)
|
|
10,376
|
|
|
10,418
|
Noninterest expense
|
|
|
|
6,953
|
|
|
6,778
|
|
|
4,120
|
|
|
3,503
|
|
|
2,999
|
|
|
2,909
|
|
|
(804
|
)
|
|
(791
|
)
|
|
13,268
|
|
|
12,399
|
Income (loss) before income tax expense (benefit)
|
|
|
|
4,783
|
|
|
5,487
|
|
|
2,870
|
|
|
2,787
|
|
|
1,096
|
|
|
975
|
|
|
(494
|
)
|
|
(476
|
)
|
|
8,255
|
|
|
8,773
|
Income tax expense (benefit)
|
|
|
|
1,546
|
|
|
1,785
|
|
|
827
|
|
|
815
|
|
|
415
|
|
|
371
|
|
|
(187
|
)
|
|
(181
|
)
|
|
2,601
|
|
|
2,790
|
Net income (loss) before noncontrolling interests
|
|
|
|
3,237
|
|
|
3,702
|
|
|
2,043
|
|
|
1,972
|
|
|
681
|
|
|
604
|
|
|
(307
|
)
|
|
(295
|
)
|
|
5,654
|
|
|
5,983
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
10
|
|
|
142
|
|
|
(4
|
)
|
|
47
|
|
|
4
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
10
|
|
|
187
|
Net income (loss)
|
|
|
$
|
3,227
|
|
|
3,560
|
|
|
2,047
|
|
|
1,925
|
|
|
677
|
|
|
606
|
|
|
(307
|
)
|
|
(295
|
)
|
|
5,644
|
|
|
5,796
|
|
|
|
|
Average loans
|
|
|
$
|
489.2
|
|
|
477.0
|
|
|
454.3
|
|
|
405.6
|
|
|
68.4
|
|
|
61.1
|
|
|
(54.4
|
)
|
|
(48.6
|
)
|
|
957.5
|
|
|
895.1
|
Average assets
|
|
|
|
993.6
|
|
|
898.9
|
|
|
794.2
|
|
|
739.1
|
|
|
212.1
|
|
|
192.6
|
|
|
(85.3
|
)
|
|
(84.2
|
)
|
|
1,914.6
|
|
|
1,746.4
|
Average deposits
|
|
|
|
708.0
|
|
|
655.6
|
|
|
441.2
|
|
|
442.0
|
|
|
189.2
|
|
|
172.6
|
|
|
(76.9
|
)
|
|
(71.3
|
)
|
|
1,261.5
|
|
|
1,198.9
|
|
|
|
|
Nine months ended Sep 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
22,277
|
|
|
21,833
|
|
|
11,729
|
|
|
10,639
|
|
|
2,852
|
|
|
2,545
|
|
|
(1,506
|
)
|
|
(1,304
|
)
|
|
35,352
|
|
|
33,713
|
Provision (reversal of provision) for credit losses
|
|
|
|
2,060
|
|
|
1,723
|
|
|
905
|
|
|
(99
|
)
|
|
(8
|
)
|
|
(19
|
)
|
|
8
|
|
|
6
|
|
|
2,965
|
|
|
1,611
|
Noninterest income
|
|
|
|
14,928
|
|
|
15,178
|
|
|
9,660
|
|
|
8,706
|
|
|
9,020
|
|
|
9,285
|
|
|
(2,275
|
)
|
|
(2,411
|
)
|
|
31,333
|
|
|
30,758
|
Noninterest expense
|
|
|
|
20,437
|
|
|
20,088
|
|
|
12,124
|
|
|
10,625
|
|
|
9,017
|
|
|
9,069
|
|
|
(2,416
|
)
|
|
(2,407
|
)
|
|
39,162
|
|
|
37,375
|
Income (loss) before income tax expense (benefit)
|
|
|
|
14,708
|
|
|
15,200
|
|
|
8,360
|
|
|
8,819
|
|
|
2,863
|
|
|
2,780
|
|
|
(1,373
|
)
|
|
(1,314
|
)
|
|
24,558
|
|
|
25,485
|
Income tax expense (benefit)
|
|
|
|
4,910
|
|
|
4,695
|
|
|
2,341
|
|
|
2,583
|
|
|
1,087
|
|
|
1,054
|
|
|
(521
|
)
|
|
(500
|
)
|
|
7,817
|
|
|
7,832
|
Net income (loss) before noncontrolling interests
|
|
|
|
9,798
|
|
|
10,505
|
|
|
6,019
|
|
|
6,236
|
|
|
1,776
|
|
|
1,726
|
|
|
(852
|
)
|
|
(814
|
)
|
|
16,741
|
|
|
17,653
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
96
|
|
|
183
|
|
|
(22
|
)
|
|
146
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
77
|
|
|
334
|
Net income (loss)
|
|
|
$
|
9,702
|
|
|
10,322
|
|
|
6,041
|
|
|
6,090
|
|
|
1,773
|
|
|
1,721
|
|
|
(852
|
)
|
|
(814
|
)
|
|
16,664
|
|
|
17,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
$
|
486.4
|
|
|
473.9
|
|
|
445.2
|
|
|
390.7
|
|
|
66.4
|
|
|
59.1
|
|
|
(52.8
|
)
|
|
(47.3
|
)
|
|
945.2
|
|
|
876.4
|
Average assets
|
|
|
|
969.6
|
|
|
906.2
|
|
|
771.9
|
|
|
714.6
|
|
|
208.5
|
|
|
191.1
|
|
|
(84.3
|
)
|
|
(83.9
|
)
|
|
1,865.7
|
|
|
1,728.0
|
Average deposits
|
|
|
|
698.3
|
|
|
651.3
|
|
|
431.7
|
|
|
435.4
|
|
|
185.4
|
|
|
170.4
|
|
|
(76.1
|
)
|
|
(70.7
|
)
|
|
1,239.3
|
|
|
1,186.4
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
(2) Includes the elimination of certain items that are included in
more than one business segment, 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
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(income/expense in millions, average balances in billions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
7,430
|
|
|
7,379
|
|
|
7,468
|
|
|
7,409
|
|
|
7,409
|
|
Provision for credit losses
|
|
|
|
651
|
|
|
689
|
|
|
720
|
|
|
704
|
|
|
668
|
|
Noninterest income
|
|
|
|
4,957
|
|
|
4,825
|
|
|
5,146
|
|
|
4,921
|
|
|
5,524
|
|
Noninterest expense
|
|
|
|
6,953
|
|
|
6,648
|
|
|
6,836
|
|
|
6,893
|
|
|
6,778
|
|
Income before income tax expense
|
|
|
|
4,783
|
|
|
4,867
|
|
|
5,058
|
|
|
4,733
|
|
|
5,487
|
|
Income tax expense
|
|
|
|
1,546
|
|
|
1,667
|
|
|
1,697
|
|
|
1,507
|
|
|
1,785
|
|
Net income before noncontrolling interests
|
|
|
|
3,237
|
|
|
3,200
|
|
|
3,361
|
|
|
3,226
|
|
|
3,702
|
|
Less: Net income from noncontrolling interests
|
|
|
|
10
|
|
|
21
|
|
|
65
|
|
|
57
|
|
|
142
|
|
Segment net income
|
|
|
$
|
3,227
|
|
|
3,179
|
|
|
3,296
|
|
|
3,169
|
|
|
3,560
|
|
Average loans
|
|
|
$
|
489.2
|
|
|
485.7
|
|
|
484.3
|
|
|
482.2
|
|
|
477.0
|
|
Average assets
|
|
|
|
993.6
|
|
|
967.6
|
|
|
947.4
|
|
|
921.4
|
|
|
898.9
|
|
Average deposits
|
|
|
|
708.0
|
|
|
703.7
|
|
|
683.0
|
|
|
663.7
|
|
|
655.6
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
4,062
|
|
|
3,919
|
|
|
3,748
|
|
|
3,711
|
|
|
3,611
|
|
Provision for credit losses
|
|
|
|
157
|
|
|
385
|
|
|
363
|
|
|
126
|
|
|
36
|
|
Noninterest income
|
|
|
|
3,085
|
|
|
3,365
|
|
|
3,210
|
|
|
2,848
|
|
|
2,715
|
|
Noninterest expense
|
|
|
|
4,120
|
|
|
4,036
|
|
|
3,968
|
|
|
3,491
|
|
|
3,503
|
|
Income before income tax expense
|
|
|
|
2,870
|
|
|
2,863
|
|
|
2,627
|
|
|
2,942
|
|
|
2,787
|
|
Income tax expense
|
|
|
|
827
|
|
|
795
|
|
|
719
|
|
|
841
|
|
|
815
|
|
Net income before noncontrolling interests
|
|
|
|
2,043
|
|
|
2,068
|
|
|
1,908
|
|
|
2,101
|
|
|
1,972
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
(4
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
47
|
|
Segment net income
|
|
|
$
|
2,047
|
|
|
2,073
|
|
|
1,921
|
|
|
2,104
|
|
|
1,925
|
|
Average loans
|
|
|
$
|
454.3
|
|
|
451.4
|
|
|
429.8
|
|
|
417.0
|
|
|
405.6
|
|
Average assets
|
|
|
|
794.2
|
|
|
772.6
|
|
|
748.6
|
|
|
755.4
|
|
|
739.1
|
|
Average deposits
|
|
|
|
441.2
|
|
|
425.8
|
|
|
428.0
|
|
|
449.3
|
|
|
442.0
|
|
WEALTH AND INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
977
|
|
|
932
|
|
|
943
|
|
|
933
|
|
|
887
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
4
|
|
|
2
|
|
|
(14
|
)
|
|
(6
|
)
|
|
(6
|
)
|
Noninterest income
|
|
|
|
3,122
|
|
|
2,987
|
|
|
2,911
|
|
|
3,014
|
|
|
2,991
|
|
Noninterest expense
|
|
|
|
2,999
|
|
|
2,976
|
|
|
3,042
|
|
|
2,998
|
|
|
2,909
|
|
Income before income tax expense
|
|
|
|
1,096
|
|
|
941
|
|
|
826
|
|
|
955
|
|
|
975
|
|
Income tax expense
|
|
|
|
415
|
|
|
358
|
|
|
314
|
|
|
366
|
|
|
371
|
|
Net income before noncontrolling interests
|
|
|
|
681
|
|
|
583
|
|
|
512
|
|
|
589
|
|
|
604
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
4
|
|
|
(1
|
)
|
|
—
|
|
|
(6
|
)
|
|
(2
|
)
|
Segment net income
|
|
|
$
|
677
|
|
|
584
|
|
|
512
|
|
|
595
|
|
|
606
|
|
Average loans
|
|
|
$
|
68.4
|
|
|
66.7
|
|
|
64.1
|
|
|
63.0
|
|
|
61.1
|
|
Average assets
|
|
|
|
212.1
|
|
|
205.3
|
|
|
208.1
|
|
|
197.9
|
|
|
192.6
|
|
Average deposits
|
|
|
|
189.2
|
|
|
182.5
|
|
|
184.5
|
|
|
177.9
|
|
|
172.6
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
(517
|
)
|
|
(497
|
)
|
|
(492
|
)
|
|
(465
|
)
|
|
(450
|
)
|
Provision (reversal of provision) for credit losses
|
|
|
|
(7
|
)
|
|
(2
|
)
|
|
17
|
|
|
7
|
|
|
5
|
|
Noninterest income
|
|
|
|
(788
|
)
|
|
(748
|
)
|
|
(739
|
)
|
|
(785
|
)
|
|
(812
|
)
|
Noninterest expense
|
|
|
|
(804
|
)
|
|
(794
|
)
|
|
(818
|
)
|
|
(783
|
)
|
|
(791
|
)
|
Loss before income tax benefit
|
|
|
|
(494
|
)
|
|
(449
|
)
|
|
(430
|
)
|
|
(474
|
)
|
|
(476
|
)
|
Income tax benefit
|
|
|
|
(187
|
)
|
|
(171
|
)
|
|
(163
|
)
|
|
(181
|
)
|
|
(181
|
)
|
Net loss before noncontrolling interests
|
|
|
|
(307
|
)
|
|
(278
|
)
|
|
(267
|
)
|
|
(293
|
)
|
|
(295
|
)
|
Less: Net income from noncontrolling interests
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other net loss
|
|
|
$
|
(307
|
)
|
|
(278
|
)
|
|
(267
|
)
|
|
(293
|
)
|
|
(295
|
)
|
Average loans
|
|
|
$
|
(54.4
|
)
|
|
(53.0
|
)
|
|
(51.0
|
)
|
|
(49.9
|
)
|
|
(48.6
|
)
|
Average assets
|
|
|
|
(85.3
|
)
|
|
(83.4
|
)
|
|
(84.2
|
)
|
|
(87.4
|
)
|
|
(84.2
|
)
|
Average deposits
|
|
|
|
(76.9
|
)
|
|
(75.3
|
)
|
|
(76.1
|
)
|
|
(74.1
|
)
|
|
(71.3
|
)
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
11,952
|
|
|
11,733
|
|
|
11,667
|
|
|
11,588
|
|
|
11,457
|
|
Provision for credit losses
|
|
|
|
805
|
|
|
1,074
|
|
|
1,086
|
|
|
831
|
|
|
703
|
|
Noninterest income
|
|
|
|
10,376
|
|
|
10,429
|
|
|
10,528
|
|
|
9,998
|
|
|
10,418
|
|
Noninterest expense
|
|
|
|
13,268
|
|
|
12,866
|
|
|
13,028
|
|
|
12,599
|
|
|
12,399
|
|
Income before income tax expense
|
|
|
|
8,255
|
|
|
8,222
|
|
|
8,081
|
|
|
8,156
|
|
|
8,773
|
|
Income tax expense
|
|
|
|
2,601
|
|
|
2,649
|
|
|
2,567
|
|
|
2,533
|
|
|
2,790
|
|
Net income before noncontrolling interests
|
|
|
|
5,654
|
|
|
5,573
|
|
|
5,514
|
|
|
5,623
|
|
|
5,983
|
|
Less: Net income from noncontrolling interests
|
|
|
|
10
|
|
|
15
|
|
|
52
|
|
|
48
|
|
|
187
|
|
Wells Fargo net income
|
|
|
$
|
5,644
|
|
|
5,558
|
|
|
5,462
|
|
|
5,575
|
|
|
5,796
|
|
Average loans
|
|
|
$
|
957.5
|
|
|
950.8
|
|
|
927.2
|
|
|
912.3
|
|
|
895.1
|
|
Average assets
|
|
|
|
1,914.6
|
|
|
1,862.1
|
|
|
1,819.9
|
|
|
1,787.3
|
|
|
1,746.4
|
|
Average deposits
|
|
|
|
1,261.5
|
|
|
1,236.7
|
|
|
1,219.4
|
|
|
1,216.8
|
|
|
1,198.9
|
|
(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 the 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
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
|
$
|
10,396
|
|
|
11,333
|
|
|
12,415
|
|
|
11,778
|
|
|
12,661
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
|
609
|
|
|
477
|
|
|
366
|
|
|
372
|
|
|
448
|
|
Sales and other (2)
|
|
|
|
4
|
|
|
(22
|
)
|
|
—
|
|
|
(9
|
)
|
|
6
|
|
Net additions
|
|
|
|
613
|
|
|
455
|
|
|
366
|
|
|
363
|
|
|
454
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (3)
|
|
|
|
39
|
|
|
(779
|
)
|
|
(1,084
|
)
|
|
560
|
|
|
(858
|
)
|
Servicing and foreclosure costs (4)
|
|
|
|
(10
|
)
|
|
(4
|
)
|
|
27
|
|
|
(37
|
)
|
|
(18
|
)
|
Prepayment estimates and other (5)
|
|
|
|
(37
|
)
|
|
(41
|
)
|
|
100
|
|
|
244
|
|
|
43
|
|
Net changes in valuation model inputs or assumptions
|
|
|
|
(8
|
)
|
|
(824
|
)
|
|
(957
|
)
|
|
767
|
|
|
(833
|
)
|
Other changes in fair value (6)
|
|
|
|
(586
|
)
|
|
(568
|
)
|
|
(491
|
)
|
|
(493
|
)
|
|
(504
|
)
|
Total changes in fair value
|
|
|
|
(594
|
)
|
|
(1,392
|
)
|
|
(1,448
|
)
|
|
274
|
|
|
(1,337
|
)
|
Fair value, end of quarter
|
|
|
$
|
10,415
|
|
|
10,396
|
|
|
11,333
|
|
|
12,415
|
|
|
11,778
|
|
(1) Includes impacts associated with exercising our right to
repurchase delinquent loans from GNMA loan securitization pools.
|
(2) Includes sales and transfers of MSRs, which can result in an
increase of total reported MSRs if the sales or transfers are
related to nonperforming loan portfolios.
|
(3) Includes prepayment speed changes as well as other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances)
|
(4) Includes costs to service and unreimbursed foreclosure costs.
|
(5) 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.
|
(6) Represents changes due to collection/realization of expected
cash flows over time.
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
$
|
1,353
|
|
|
1,359
|
|
|
1,308
|
|
|
1,277
|
|
|
1,262
|
|
Purchases
|
|
|
|
18
|
|
|
24
|
|
|
21
|
|
|
48
|
|
|
45
|
|
Servicing from securitizations or asset transfers
|
|
|
|
69
|
|
|
38
|
|
|
97
|
|
|
49
|
|
|
35
|
|
Amortization
|
|
|
|
(67
|
)
|
|
(68
|
)
|
|
(67
|
)
|
|
(66
|
)
|
|
(65
|
)
|
Balance, end of quarter
|
|
|
$
|
1,373
|
|
|
1,353
|
|
|
1,359
|
|
|
1,308
|
|
|
1,277
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
$
|
1,620
|
|
|
1,725
|
|
|
1,680
|
|
|
1,643
|
|
|
1,692
|
|
End of quarter
|
|
|
|
1,627
|
|
|
1,620
|
|
|
1,725
|
|
|
1,680
|
|
|
1,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
$
|
878
|
|
|
842
|
|
|
910
|
|
|
872
|
|
|
990
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
(A)
|
|
|
(8
|
)
|
|
(824
|
)
|
|
(957
|
)
|
|
767
|
|
|
(833
|
)
|
Other changes in fair value (3)
|
|
|
|
|
(586
|
)
|
|
(568
|
)
|
|
(491
|
)
|
|
(493
|
)
|
|
(504
|
)
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
|
(594
|
)
|
|
(1,392
|
)
|
|
(1,448
|
)
|
|
274
|
|
|
(1,337
|
)
|
Amortization
|
|
|
|
|
(67
|
)
|
|
(68
|
)
|
|
(67
|
)
|
|
(66
|
)
|
|
(65
|
)
|
Net derivative gains (losses) from economic hedges (4)
|
|
(B)
|
|
|
142
|
|
|
978
|
|
|
1,455
|
|
|
(350
|
)
|
|
1,086
|
|
Total servicing income, net
|
|
|
|
$
|
359
|
|
|
360
|
|
|
850
|
|
|
730
|
|
|
674
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(4)
|
|
(A)+(B)
|
|
$
|
134
|
|
|
154
|
|
|
498
|
|
|
417
|
|
|
253
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues, net of unreimbursed direct servicing
costs.
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
(3) Represents 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in billions)
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
$
|
1,226
|
|
|
1,250
|
|
|
1,280
|
|
|
1,300
|
|
|
1,323
|
|
Owned loans serviced
|
|
|
352
|
|
|
349
|
|
|
342
|
|
|
345
|
|
|
346
|
|
Subserviced for others
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
4
|
|
Total residential servicing
|
|
|
1,582
|
|
|
1,603
|
|
|
1,626
|
|
|
1,649
|
|
|
1,673
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
477
|
|
|
478
|
|
|
485
|
|
|
478
|
|
|
470
|
|
Owned loans serviced
|
|
|
130
|
|
|
128
|
|
|
125
|
|
|
122
|
|
|
121
|
|
Subserviced for others
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
7
|
|
|
7
|
|
Total commercial servicing
|
|
|
615
|
|
|
614
|
|
|
618
|
|
|
607
|
|
|
598
|
|
Total managed servicing portfolio
|
|
$
|
2,197
|
|
|
2,217
|
|
|
2,244
|
|
|
2,256
|
|
|
2,271
|
|
Total serviced for others
|
|
$
|
1,703
|
|
|
1,728
|
|
|
1,765
|
|
|
1,778
|
|
|
1,793
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
0.69
|
%
|
|
0.68
|
|
|
0.72
|
|
|
0.77
|
|
|
0.73
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
4.28
|
|
|
4.32
|
|
|
4.34
|
|
|
4.37
|
|
|
4.39
|
|
(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
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Net gains on mortgage loan origination/sales activities (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(A)
|
|
$
|
953
|
|
|
744
|
|
|
532
|
|
|
600
|
|
|
736
|
|
Commercial
|
|
|
|
|
167
|
|
|
72
|
|
|
71
|
|
|
108
|
|
|
55
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
|
|
|
188
|
|
|
238
|
|
|
145
|
|
|
222
|
|
|
124
|
|
Total
|
|
|
|
$
|
1,308
|
|
|
1,054
|
|
|
748
|
|
|
930
|
|
|
915
|
|
Application data (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
$
|
100
|
|
|
95
|
|
|
77
|
|
|
64
|
|
|
73
|
|
Refinances as a percentage of applications
|
|
|
|
|
55
|
%
|
|
46
|
|
|
52
|
|
|
48
|
|
|
44
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
$
|
50
|
|
|
47
|
|
|
39
|
|
|
29
|
|
|
34
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
|
|
|
58
|
%
|
|
60
|
|
|
55
|
|
|
59
|
|
|
66
|
|
Refinances as a percentage of originations
|
|
|
|
|
42
|
|
|
40
|
|
|
45
|
|
|
41
|
|
|
34
|
|
Total
|
|
|
|
|
100
|
%
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Wells Fargo first mortgage loans (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
$
|
37
|
|
|
34
|
|
|
24
|
|
|
27
|
|
|
32
|
|
Correspondent
|
|
|
|
|
32
|
|
|
28
|
|
|
19
|
|
|
19
|
|
|
22
|
|
Other (2)
|
|
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Total quarter-to-date
|
|
|
|
$
|
70
|
|
|
63
|
|
|
44
|
|
|
47
|
|
|
55
|
|
Held-for-sale
|
|
(B)
|
|
$
|
53
|
|
|
46
|
|
|
31
|
|
|
33
|
|
|
39
|
|
Held-for-investment
|
|
|
|
|
17
|
|
|
17
|
|
|
13
|
|
|
14
|
|
|
16
|
|
Total quarter-to-date
|
|
|
|
$
|
70
|
|
|
63
|
|
|
44
|
|
|
47
|
|
|
55
|
|
Total year-to-date
|
|
|
|
$
|
177
|
|
|
107
|
|
|
44
|
|
|
213
|
|
|
166
|
|
Production margin on residential held-for-sale mortgage
originations
|
|
(A)/(B)
|
|
|
1.81
|
%
|
|
1.66
|
|
|
1.68
|
|
|
1.83
|
|
|
1.88
|
|
(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
|
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
Balance, beginning of period
|
|
|
|
$
|
255
|
|
|
355
|
|
|
378
|
|
|
538
|
|
|
|
557
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
|
|
11
|
|
|
8
|
|
|
7
|
|
|
9
|
|
|
|
11
|
|
Change in estimate (1)
|
|
|
|
|
(24
|
)
|
|
(89
|
)
|
|
(19
|
)
|
|
(128
|
)
|
|
|
(17
|
)
|
Net reductions
|
|
|
|
|
(13
|
)
|
|
(81
|
)
|
|
(12
|
)
|
|
(119
|
)
|
|
|
(6
|
)
|
Losses
|
|
|
|
|
(3
|
)
|
|
(19
|
)
|
|
(11
|
)
|
|
(41
|
)
|
|
|
(13
|
)
|
Balance, end of period
|
|
|
|
$
|
239
|
|
|
255
|
|
|
355
|
|
|
378
|
|
|
|
538
|
|
(1) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.
|