Diluted EPS of $1.00; Revenue of $22.0 billion
Wells Fargo & Company (NYSE:WFC):
-
Solid financial results:
-
Net income of $5.5 billion, in line with first quarter 2016
-
Diluted earnings per share (EPS) of $1.00, compared with $0.99
-
Revenue of $22.0 billion
-
Net interest income of $12.3 billion, up $633 million, or 5
percent
-
Total average deposits of $1.3 trillion, up $79.8 billion, or 7
percent, from first quarter 2016
-
Total average loans of $963.6 billion, up $36.4 billion, or 4
percent
-
Quarter-end loans of $958.4 billion, up $11.1 billion, or 1
percent
-
Return on assets (ROA) of 1.15 percent and return on equity (ROE)
of 11.54 percent
-
Improved credit quality:
-
Provision expense of $605 million, down $481 million, or 44
percent, from first quarter 2016
-
Net charge-offs of $805 million, down $81 million
-
Net charge-offs were 0.34 percent of average loans
(annualized), down from 0.38 percent
-
Reserve release1 of $200 million
-
Nonaccrual loans of $9.8 billion, down $2.5 billion, or 20 percent
-
Strong capital position:
-
Common Equity Tier 1 ratio (fully phased-in) of 11.2 percent2
-
Period-end common shares outstanding down 79.2 million from first
quarter 2016
-
Returned $3.1 billion to shareholders in the first quarter through
common stock dividends and net share repurchases
|
|
Selected Financial Information
|
|
|
Quarter ended
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
Mar 31,
|
|
|
2017
|
|
|
2016
|
|
2016
|
Earnings
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
1.00
|
|
|
0.96
|
|
0.99
|
Wells Fargo net income (in billions)
|
|
|
5.46
|
|
|
5.27
|
|
5.46
|
Return on assets (ROA)
|
|
|
1.15
|
%
|
|
1.08
|
|
1.21
|
Return on equity (ROE)
|
|
|
11.54
|
|
|
10.94
|
|
11.75
|
Return on average tangible common equity (ROTCE)(a)
|
|
|
13.85
|
|
|
13.16
|
|
14.15
|
Asset Quality
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
0.34
|
%
|
|
0.37
|
|
0.38
|
Allowance for credit losses as a % of total loans
|
|
|
1.28
|
|
|
1.30
|
|
1.34
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
376
|
|
|
348
|
|
355
|
Other
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
$
|
22.0
|
|
|
21.6
|
|
22.2
|
Efficiency ratio (b)
|
|
|
62.7
|
%
|
|
61.2
|
|
58.7
|
Average loans (in billions)
|
|
$
|
963.6
|
|
|
964.1
|
|
927.2
|
Average deposits (in billions)
|
|
|
1,299.2
|
|
|
1,284.2
|
|
1,219.4
|
Net interest margin
|
|
|
2.87
|
%
|
|
2.87
|
|
2.90
|
(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 32.
|
(b) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.5 billion, or
$1.00 per diluted common share, for first quarter 2017, compared with
$5.5 billion, or $0.99 per share, for first quarter 2016, and
$5.3 billion, or $0.96 per share, for fourth quarter 2016.
Chief Executive Officer Tim Sloan said, "Wells Fargo continued to make
meaningful progress in the first quarter in rebuilding trust with
customers and other important stakeholders, while producing solid
financial results. We have taken significant actions throughout the
company to date and we are committed to building a better bank as we
move Wells Fargo forward. Earlier this week, the independent directors
of Wells Fargo’s Board of Directors issued a report on their
investigation into the company's retail banking sales practices. The
findings are valuable to us and beneficial in helping to identify areas
for further improvement. While we have more work to do, I am pleased
with all we have accomplished thus far. Our 273,000 team members have
remained committed to helping our customers succeed financially, as
reflected in improved retail customer service scores, record levels of
deposits, more primary consumer checking customers, record client assets
in Wealth and Investment Management, and industry-leading mortgage
originations."
Chief Financial Officer John Shrewsberry said, "Our diversified business
model generated higher revenue and net income compared with last
quarter, as well as higher ROA and ROE. Expenses were elevated compared
with last quarter, driven by typically-higher first quarter
personnel-related expenses. Credit results improved, with lower net
charge-offs and nonaccrual loans, and we benefited from lower income tax
expense. The balance sheet remained strong with high levels of capital
and liquidity, and record deposits. We ended first quarter with Common
Equity Tier 1 (fully phased-in) of $148.7 billion, or a Common Equity
Tier 1 ratio (fully phased-in) of 11.2 percent2, and returned
$3.1 billion to shareholders during the quarter, for a net payout ratio3
of 61 percent."
Net Interest Income
Net interest income in first quarter 2017 decreased $102 million from
fourth quarter 2016 to $12.3 billion, primarily due to two fewer days in
the quarter. The impact of balance declines in trading assets and
mortgages held-for-sale, as well as lower income from variable sources,
was offset by average balance growth in investment securities and the
benefit from higher interest rates in the quarter.
Net interest margin was 2.87 percent, stable with fourth quarter 2016.
The benefit of higher interest rates, a reduction in short-term market
funding, and average balance growth in investment securities was offset
by lower income from trading assets and mortgages held-for-sale, higher
deposit and long-term debt balances, and lower income from variable
sources.
Noninterest Income
Noninterest income in the first quarter was $9.7 billion, up from
$9.2 billion in fourth quarter 2016, driven by higher other income and
higher market-sensitive revenue, particularly in trading. These
increases were partially offset by lower mortgage banking income,
investment banking fees and commercial real estate brokerage commissions.
-
Net gain from trading activities was $439 million in the first
quarter, compared with a net loss of $109 million in the fourth
quarter. Results in the first quarter were driven by higher secondary
trading, as well as higher deferred compensation plan investment
results (offset in employee benefits expense).
-
Mortgage banking noninterest income was $1.2 billion, compared with
$1.4 billion in fourth quarter 2016. As expected, residential mortgage
loan originations declined in the first quarter, down to $44 billion,
from $72 billion in the fourth quarter. The production margin on
residential held-for-sale mortgage loan originations4 was
1.68 percent, in line with the fourth quarter. Mortgage servicing
income increased to $456 million in the first quarter from
$196 million in the fourth quarter, primarily due to lower
unreimbursed servicing costs and lower prepayments.
-
Other income was $145 million, compared with $(382) million in the
fourth quarter. First quarter 2017 included a $(193) million net hedge
ineffectiveness accounting impact, resulting largely from foreign
currency fluctuations, compared with a $(592) million net hedge
ineffectiveness accounting impact in the fourth quarter, which
reflected both an increase in interest rates and foreign currency
fluctuations.
Noninterest Expense
Noninterest expense in the first quarter was $13.8 billion, compared
with $13.2 billion in fourth quarter 2016. First quarter expenses
included $790 million of seasonally higher employee benefits and
incentive compensation expense, and an increase in deferred compensation
expense (included in employee benefits expense and offset in revenue),
partially offset by lower outside professional services, equipment, and
advertising and promotion expenses, which typically decline in first
quarter. The efficiency ratio increased to 62.7 percent in first quarter
2017, compared with 61.2 percent in the prior quarter. The Company
currently expects the efficiency ratio to remain elevated.
Income Taxes
The Company’s effective income tax rate was 27.4 percent for first
quarter 2017, compared with 30.0 percent in the prior quarter. The
effective tax rate for the first quarter included discrete tax benefits
totaling $197 million, of which $183 million resulted from tax benefits
associated with stock compensation activity during the quarter which was
subject to ASU 2016-09 accounting guidance adopted in first quarter
2017. The Company currently expects the full year 2017 tax rate to be
approximately 30 percent.
Loans
Total average loans were $963.6 billion in the first quarter, down $502
million from the fourth quarter. Period-end loan balances were $958.4
billion at March 31, 2017, down $9.2 billion from December 31, 2016,
driven by a decline in credit card balances due to seasonality, a
slowdown in new credit card account openings, and a continued decline in
junior lien mortgage loans. In addition, there was an expected decline
in auto loans from the fourth quarter as continued proactive steps to
tighten underwriting standards resulted in lower origination volume.
|
|
Period-End Loan Balances
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Commercial
|
|
|
$
|
505,004
|
|
|
|
506,536
|
|
|
496,454
|
|
|
494,538
|
|
|
488,205
|
Consumer
|
|
|
|
453,401
|
|
|
|
461,068
|
|
|
464,872
|
|
|
462,619
|
|
|
459,053
|
Total loans
|
|
|
$
|
958,405
|
|
|
|
967,604
|
|
|
961,326
|
|
|
957,157
|
|
|
947,258
|
Change from prior quarter
|
|
|
$
|
(9,199
|
)
|
|
|
6,278
|
|
|
4,169
|
|
|
9,899
|
|
|
30,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, Cash Equivalents and Investment Securities
Cash, federal funds sold, securities purchased under resale agreements
and other short-term investments reached an all-time high of $328.4
billion at March 31, 2017, up $41.7 billion from the fourth quarter,
driven by deposit growth and a linked-quarter decline in the loan
portfolio. Investment securities were $407.6 billion at March 31, 2017,
down $387 million from the fourth quarter, as approximately $16 billion
of purchases were more than offset by run-off and sales.
Net unrealized losses on available-for-sale securities were $1.2 billion
at March 31, 2017, compared with net unrealized losses on
available-for-sale securities of $1.8 billion at December 31, 2016,
primarily due to tighter credit spreads during the quarter and a modest
benefit from lower long-term interest rates.
Deposits
Total average deposits for first quarter 2017 were $1.3 trillion, up 1
percent from the prior quarter, driven by growth in consumer and small
business, as well as commercial. The average deposit cost for first
quarter 2017 was 17 basis points, up 5 basis points from the prior
quarter and 7 basis points from a year ago, primarily driven by an
increase in commercial deposit rates.
Capital
Capital levels remained strong in the first quarter, with a Common
Equity Tier 1 ratio (fully phased-in) of 11.2 percent2,
compared with 10.8 percent in the prior quarter. In first quarter 2017,
the Company repurchased 53.1 million shares of its common stock, which
reduced period-end common shares outstanding by 19.4 million after
taking into account seasonally higher common stock issuances to employee
benefit plans. The Company paid a quarterly common stock dividend of
$0.38 per share, up from $0.375 per share a year ago.
Credit Quality
"First quarter credit results reflected strong performance in our
commercial portfolios and consumer real estate portfolios," said Chief
Risk Officer Mike Loughlin. "Improvement in the oil and gas portfolio,
as well as continued improvement in residential real estate, drove a
$200 million reserve release1 in the quarter."
Net Loan Charge-offs
The quarterly loss rate of 0.34 percent (annualized) reflected
commercial losses of 0.11 percent and consumer losses of 0.59 percent.
Credit losses were $805 million in first quarter 2017, down $100 million
from fourth quarter 2016. Consumer losses increased $8 million, driven
by higher credit card losses, predominantly offset by lower losses in
1-4 family junior lien mortgage and other revolving credit and
installment portfolios. Commercial losses were down $108 million driven
by lower oil and gas losses and increased recoveries.
|
|
Net Loan Charge-Offs
|
|
|
|
Quarter ended
|
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
September 30, 2016
|
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
($ in millions)
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
171
|
|
|
0.21
|
%
|
|
$
|
256
|
|
|
0.31
|
%
|
|
$
|
259
|
|
|
0.32
|
%
|
Real estate mortgage
|
|
|
(25
|
)
|
|
(0.08
|
)
|
|
|
(12
|
)
|
|
(0.04
|
)
|
|
|
(28
|
)
|
|
(0.09
|
)
|
Real estate construction
|
|
|
(8
|
)
|
|
(0.15
|
)
|
|
|
(8
|
)
|
|
(0.13
|
)
|
|
|
(18
|
)
|
|
(0.32
|
)
|
Lease financing
|
|
|
5
|
|
|
0.11
|
|
|
|
15
|
|
|
0.32
|
|
|
|
2
|
|
|
0.04
|
|
Total commercial
|
|
|
143
|
|
|
0.11
|
|
|
|
251
|
|
|
0.20
|
|
|
|
215
|
|
|
0.17
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
7
|
|
|
0.01
|
|
|
|
(3
|
)
|
|
—
|
|
|
|
20
|
|
|
0.03
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
23
|
|
|
0.21
|
|
|
|
44
|
|
|
0.38
|
|
|
|
49
|
|
|
0.40
|
|
Credit card
|
|
|
309
|
|
|
3.54
|
|
|
|
275
|
|
|
3.09
|
|
|
|
245
|
|
|
2.82
|
|
Automobile
|
|
|
167
|
|
|
1.10
|
|
|
|
166
|
|
|
1.05
|
|
|
|
137
|
|
|
0.87
|
|
Other revolving credit and installment
|
|
|
156
|
|
|
1.60
|
|
|
|
172
|
|
|
1.70
|
|
|
|
139
|
|
|
1.40
|
|
Total consumer
|
|
|
662
|
|
|
0.59
|
|
|
|
654
|
|
|
0.56
|
|
|
|
590
|
|
|
0.51
|
|
Total
|
|
$
|
805
|
|
|
0.34
|
%
|
|
$
|
905
|
|
|
0.37
|
%
|
|
$
|
805
|
|
|
0.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation on page 29 of the accounting for
purchased credit-impaired (PCI) loans and the impact on selected
financial ratios.
|
|
|
Nonperforming Assets
Nonperforming assets decreased $698 million from fourth quarter 2016 to
$10.7 billion. Nonaccrual loans decreased $625 million from fourth
quarter to $9.8 billion reflecting declines across all major commercial
asset classes, as well as continued lower consumer real estate
nonaccruals.
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
March 31, 2017
|
|
|
|
December 31, 2016
|
|
|
|
September 30, 2016
|
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
|
total
|
|
|
|
Total
|
|
|
|
total
|
|
|
|
Total
|
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
|
loans
|
|
|
|
balances
|
|
|
|
loans
|
|
|
|
balances
|
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,898
|
|
|
|
0.88
|
%
|
|
|
$
|
3,216
|
|
|
|
0.97
|
%
|
|
|
$
|
3,331
|
|
|
|
1.03
|
%
|
Real estate mortgage
|
|
|
|
672
|
|
|
|
0.51
|
|
|
|
|
685
|
|
|
|
0.52
|
|
|
|
|
780
|
|
|
|
0.60
|
|
Real estate construction
|
|
|
|
40
|
|
|
|
0.16
|
|
|
|
|
43
|
|
|
|
0.18
|
|
|
|
|
59
|
|
|
|
0.25
|
|
Lease financing
|
|
|
|
96
|
|
|
|
0.50
|
|
|
|
|
115
|
|
|
|
0.60
|
|
|
|
|
92
|
|
|
|
0.49
|
|
Total commercial
|
|
|
|
3,706
|
|
|
|
0.73
|
|
|
|
|
4,059
|
|
|
|
0.80
|
|
|
|
|
4,262
|
|
|
|
0.86
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
4,743
|
|
|
|
1.73
|
|
|
|
|
4,962
|
|
|
|
1.80
|
|
|
|
|
5,310
|
|
|
|
1.91
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
1,153
|
|
|
|
2.60
|
|
|
|
|
1,206
|
|
|
|
2.61
|
|
|
|
|
1,259
|
|
|
|
2.62
|
|
Automobile
|
|
|
|
101
|
|
|
|
0.17
|
|
|
|
|
106
|
|
|
|
0.17
|
|
|
|
|
108
|
|
|
|
0.17
|
|
Other revolving credit and installment
|
|
|
|
56
|
|
|
|
0.14
|
|
|
|
|
51
|
|
|
|
0.13
|
|
|
|
|
47
|
|
|
|
0.12
|
|
Total consumer
|
|
|
|
6,053
|
|
|
|
1.34
|
|
|
|
|
6,325
|
|
|
|
1.37
|
|
|
|
|
6,724
|
|
|
|
1.45
|
|
Total nonaccrual loans
|
|
|
|
9,759
|
|
|
|
1.02
|
|
|
|
|
10,384
|
|
|
|
1.07
|
|
|
|
|
10,986
|
|
|
|
1.14
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
|
179
|
|
|
|
|
|
|
|
|
197
|
|
|
|
|
|
|
|
|
282
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
|
726
|
|
|
|
|
|
|
|
|
781
|
|
|
|
|
|
|
|
|
738
|
|
|
|
|
|
Total foreclosed assets
|
|
|
|
905
|
|
|
|
|
|
|
|
|
978
|
|
|
|
|
|
|
|
|
1,020
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
10,664
|
|
|
|
1.11
|
%
|
|
|
$
|
11,362
|
|
|
|
1.17
|
%
|
|
|
$
|
12,006
|
|
|
|
1.25
|
%
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(625
|
)
|
|
|
|
|
|
|
$
|
(602
|
)
|
|
|
|
|
|
|
$
|
(977
|
)
|
|
|
|
|
Total nonperforming assets
|
|
|
|
(698
|
)
|
|
|
|
|
|
|
|
(644
|
)
|
|
|
|
|
|
|
|
(1,074
|
)
|
|
|
|
|
|
|
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.3 billion at March 31, 2017, which was down
$253 million from December 31, 2016. The allowance coverage for total
loans was 1.28 percent, compared with 1.30 percent in fourth quarter
2016. The allowance covered 3.8 times annualized first quarter net
charge-offs, compared with 3.5 times in the prior quarter. The allowance
coverage for nonaccrual loans was 126 percent at March 31, 2017,
compared with 121 percent at December 31, 2016. “We believe the
allowance was appropriate for losses inherent in the loan portfolio at
March 31, 2017,” said Loughlin.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
Community Banking
|
|
|
$
|
3,009
|
|
|
2,733
|
|
|
3,296
|
Wholesale Banking
|
|
|
|
2,115
|
|
|
2,194
|
|
|
1,921
|
Wealth and Investment Management
|
|
|
|
623
|
|
|
653
|
|
|
512
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking
offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and auto, student, and small business lending.
Community Banking also offers investment, insurance and trust services
in 39 states and D.C., and mortgage and home equity loans in all 50
states and D.C. through its Regional Banking and Wells Fargo Home
Lending business units.
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
Total revenue
|
|
|
$
|
12,093
|
|
|
11,661
|
|
|
12,614
|
Provision for credit losses
|
|
|
|
646
|
|
|
631
|
|
|
720
|
Noninterest expense
|
|
|
|
7,221
|
|
|
6,985
|
|
|
6,836
|
Segment net income
|
|
|
|
3,009
|
|
|
2,733
|
|
|
3,296
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
482.7
|
|
|
488.1
|
|
|
484.3
|
Average assets
|
|
|
|
990.7
|
|
|
1,000.7
|
|
|
947.4
|
Average deposits
|
|
|
|
717.2
|
|
|
709.8
|
|
|
683.0
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.0 billion, up $276 million,
or 10 percent, from fourth quarter 2016. Revenue of $12.1 billion
increased $432 million, or 4 percent, from fourth quarter 2016, driven
by higher other income (reflecting the accounting impact of net hedge
ineffectiveness), gains on equity investments, and net interest income,
partially offset by lower mortgage banking revenue and gains on sales of
debt securities. Noninterest expense increased $236 million, compared
with fourth quarter 2016, due to seasonally higher personnel expense and
higher deferred compensation plan expense (offset in trading revenue),
partially offset by lower professional services, equipment, and
advertising expense.
Net income was down $287 million, or 9 percent, from first quarter 2016.
Revenue decreased $521 million, or 4 percent, compared with a year ago
due to lower other income (reflecting the accounting impact of net hedge
ineffectiveness), mortgage banking revenue, and gains on sales of debt
securities, partially offset by higher gains on equity investments, net
interest income, and deferred compensation plan investments (offset in
employee benefits expense). Noninterest expense increased $385 million,
or 6 percent, from a year ago driven by higher personnel, deferred
compensation plan expense (offset in trading revenue), professional
services, and equipment expense, partially offset by lower operating
losses and other expense. The provision for credit losses decreased
$74 million from a year ago primarily due to improvement in the consumer
real estate portfolios.
Retail Banking and Consumer Payments
-
With over 400,000 branch customer experience surveys completed,
‘Overall Satisfaction with Most Recent Visit’ and ‘Loyalty’ scores
continued to improve each month in the first quarter
-
Primary consumer checking customers5 in March up 1.6
percent year-over-year
-
Debit card purchase volume6 of $75.7 billion in first
quarter, up 4 percent year-over-year
-
Credit card purchase volume of $17.9 billion in first quarter, up 3
percent year-over-year
-
Credit card penetration in retail banking households rose to 45.5
percent, up 19 basis points year-over-year7,8
-
28.1 million digital (online and mobile) active customers in March,
including 20.3 million mobile active users9
-
#1 overall performance in Keynote Mobile Banking Scorecard; also best
in “Functionality,” “Quality & Availability” and “Best App & Mobile
Web Experiences” (March 2017)
-
First large bank in the U.S. to offer card-free account access through
One-Time Access Code mobile technology at all 13,000 ATMs
Consumer Lending
-
Auto originations of $5.5 billion in first quarter, down 15 percent
from prior quarter and down 29 percent from prior year, as continued
proactive steps to tighten underwriting standards resulted in lower
origination volume
-
Home Lending
-
Originations of $44 billion, down from $72 billion in prior quarter
-
Applications of $59 billion, down from $75 billion in prior quarter
-
Application pipeline of $28 billion at quarter end, down from $30
billion at December 31, 2016
Wholesale Banking
provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $5 million. Products and
businesses include Business Banking, Middle Market Commercial Banking,
Government and Institutional Banking, Corporate Banking, Commercial Real
Estate, Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage
Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities,
Principal Investments and Asset Backed Finance.
|
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
2016
|
Total revenue
|
|
|
$
|
7,038
|
|
|
|
7,153
|
|
|
|
6,958
|
Provision (reversal of provision) for credit losses
|
|
|
|
(43
|
)
|
|
|
168
|
|
|
|
363
|
Noninterest expense
|
|
|
|
4,225
|
|
|
|
4,002
|
|
|
|
3,968
|
Segment net income
|
|
|
|
2,115
|
|
|
|
2,194
|
|
|
|
1,921
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
466.3
|
|
|
|
461.5
|
|
|
|
429.8
|
Average assets
|
|
|
|
807.8
|
|
|
|
811.9
|
|
|
|
748.6
|
Average deposits
|
|
|
|
466.0
|
|
|
|
459.2
|
|
|
|
428.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $2.1 billion, down $79 million,
or 4 percent, from fourth quarter 2016. Revenue of $7.0 billion
decreased $115 million, or 2 percent, from the prior quarter. Net
interest income decreased $175 million, or 4 percent, as loan growth was
more than offset by lower trading-related interest income as well as the
impact of two fewer days in the quarter. Noninterest income increased
$60 million, or 2 percent, as strong customer accommodation trading
results were partially offset by lower investment banking and commercial
real estate brokerage fees. Noninterest expense increased $223 million,
or 6 percent, from the prior quarter due to seasonally higher personnel
expenses. The provision for credit losses decreased $211 million from
the prior quarter, primarily due to improvements in the oil and gas
portfolio.
Net income increased $194 million, or 10 percent, from first quarter
2016. Revenue increased $80 million, or 1 percent, from first quarter
2016, driven by a $400 million increase in net interest income primarily
related to loan growth including the GE Capital portfolio acquisitions.
Noninterest income decreased $320 million, or 10 percent, primarily due
to the first quarter 2016 sale of our crop insurance business which
resulted in lower insurance and gain on sale income, partially offset by
higher investment banking fees, customer accommodation trading, and
lease income related to the GE Capital portfolio acquisitions.
Noninterest expense increased $257 million, or 6 percent, from a year
ago primarily due to the GE Capital portfolio acquisitions and higher
expenses related to growth initiatives, compliance, and regulatory
requirements. The provision for credit losses decreased $406 million
from a year ago primarily due to improvements in the oil and gas
portfolio.
Wealth and Investment Management
(WIM)
provides a full range of personalized wealth management, investment
and retirement products and services to clients across U.S. based
businesses including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo
Asset Management. We deliver financial planning, private banking,
credit, investment management and fiduciary services to high-net worth
and ultra-high-net worth individuals and families. We also serve
customers’ brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities
delivered to global institutional clients through separate accounts and
the Wells Fargo Funds.
|
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
2016
|
Total revenue
|
|
|
$
|
4,193
|
|
|
|
4,074
|
|
|
|
3,854
|
|
Provision (reversal of provision) for credit losses
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
|
(14
|
)
|
Noninterest expense
|
|
|
|
3,206
|
|
|
|
3,042
|
|
|
|
3,042
|
|
Segment net income
|
|
|
|
623
|
|
|
|
653
|
|
|
|
512
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
70.7
|
|
|
|
70.0
|
|
|
|
64.1
|
|
Average assets
|
|
|
|
221.9
|
|
|
|
220.4
|
|
|
|
208.1
|
|
Average deposits
|
|
|
|
195.6
|
|
|
|
194.9
|
|
|
|
184.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $623 million,
down $30 million, or 5 percent, from fourth quarter 2016. Revenue of
$4.2 billion increased $119 million, or 3 percent, from the prior
quarter, primarily due to higher gains on deferred compensation plan
investments (offset in employee benefits expense), other fee income, and
net interest income. Noninterest expense increased $164 million, or
5 percent, from the prior quarter, primarily driven by seasonally higher
personnel expenses and deferred compensation plan expense (offset in
trading revenue).
Net income was up $111 million, or 22 percent, from first quarter 2016.
Revenue increased $339 million, or 9 percent, from a year ago primarily
driven by higher net interest income, asset-based fees, deferred
compensation plan investments (offset in employee benefits expense), and
other fee income. Noninterest expense increased $164 million, or
5 percent, from a year ago, primarily due to higher non-personnel
expenses, deferred compensation plan expense (offset in trading
revenue), and broker commissions.
-
March closed referred investment assets (referrals resulting from the
WIM/Community Banking partnership) totaled $1 billion for the first
time since the month of the sales practices settlement announcement
-
WIM total client assets reached a record-high of $1.8 trillion in the
first quarter, up 9 percent from a year ago, driven by higher market
valuations and continued positive net flows
Retail Brokerage
-
Client assets of $1.6 trillion, up 10 percent from prior year
-
Advisory assets of $490 billion, up 14 percent from prior year,
primarily driven by higher market valuations and positive net flows
-
Strong loan growth, with average balances up 15 percent from prior
year largely due to continued growth in non-conforming mortgage loans
Wealth Management
-
Client assets of $237 billion, up 5 percent from prior year
-
Average loan balances up 8 percent from prior year primarily driven by
continued growth in non-conforming mortgage loans
Retirement
-
IRA assets of $383 billion, up 7 percent from prior year
-
Institutional Retirement plan assets of $361 billion, up 9 percent
from prior year
Asset Management
-
Total assets under management of $481 billion, flat from prior year as
higher market valuations, positive fixed income net flows and assets
acquired during the prior year, were offset by equity and money market
net outflows.
Conference Call
The Company will host a live conference call on Thursday, April 13, at
7:00 a.m. PT (10:00 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 https://engage.vevent.com/rt/wells_fargo_ao~56300037.
A replay of the conference call will be available beginning at 10:00
a.m. PT (1:00 p.m. ET) on Thursday, April 13 through Friday, April 28.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #56300037. The replay will also
be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~56300037.
|
Endnotes
|
1
|
|
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.
|
2
|
|
See table on page 33 for more information on Common Equity Tier 1.
Common Equity Tier 1 (fully phased-in) is a preliminary estimate and
is calculated assuming the full phase-in of the Basel III capital
rules.
|
3
|
|
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.
|
4
|
|
Production margin represents net gains on residential mortgage loan
origination/sales activities divided by total residential
held-for-sale mortgage originations. See the Selected Five Quarter
Residential Mortgage Production Data table on page 38 for more
information.
|
5
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
6
|
|
Combined consumer and business debit card purchase volume dollars.
|
7
|
|
Data as of February 2017, comparisons with February 2016.
|
8
|
|
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.
Prior period metrics have been revised to conform with the updated
definition of Retail Banking households. 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.
|
9
|
|
Primarily includes retail banking, consumer lending, small business
and business banking customers.
|
|
|
|
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;
-
negative effects from the retail banking sales practices matter,
including on our legal, operational and compliance costs, our ability
to engage in certain business activities or offer certain products or
services, our ability to keep and attract customers, our ability to
attract and retain qualified team members, and our reputation;
-
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, 2016.
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, 2016, 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 $2.0 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 8,500 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 273,000 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
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Summary Information
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Summary Financial Data
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15
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Income
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Consolidated Statement of Income
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17
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Consolidated Statement of Comprehensive Income
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19
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Condensed Consolidated Statement of Changes in Total Equity
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19
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Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
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20
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Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
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21
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Noninterest Income and Noninterest Expense
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22
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Balance Sheet
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Consolidated Balance Sheet
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24
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Investment Securities
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26
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Loans
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Loans
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26
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Nonperforming Assets
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27
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Loans 90 Days or More Past Due and Still Accruing
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28
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Purchased Credit-Impaired Loans
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29
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Pick-A-Pay Portfolio
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30
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Changes in Allowance for Credit Losses
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31
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Equity
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Tangible Common Equity
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32
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Common Equity Tier 1 Under Basel III
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33
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Operating Segments
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Operating Segment Results
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34
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Other
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Mortgage Servicing and other related data
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36
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Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
% Change
|
|
|
|
Quarter ended
|
|
Mar 31, 2017 from
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
Mar 31,
|
|
Dec 31,
|
|
|
Mar 31,
|
|
($ in millions, except per share amounts)
|
|
2017
|
|
|
2016
|
|
2016
|
|
2016
|
|
|
2016
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,457
|
|
|
5,274
|
|
5,462
|
|
3
|
%
|
|
—
|
|
Wells Fargo net income applicable to common stock
|
|
|
5,056
|
|
|
4,872
|
|
5,085
|
|
4
|
|
|
(1
|
)
|
Diluted earnings per common share
|
|
|
1.00
|
|
|
0.96
|
|
0.99
|
|
4
|
|
|
1
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.15
|
%
|
|
1.08
|
|
1.21
|
|
6
|
|
|
(5
|
)
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
11.54
|
|
|
10.94
|
|
11.75
|
|
5
|
|
|
(2
|
)
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
13.85
|
|
|
13.16
|
|
14.15
|
|
5
|
|
|
(2
|
)
|
Efficiency ratio (2)
|
|
|
62.7
|
|
|
61.2
|
|
58.7
|
|
2
|
|
|
7
|
|
Total revenue
|
|
$
|
22,002
|
|
|
21,582
|
|
22,195
|
|
2
|
|
|
(1
|
)
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
8,210
|
|
|
8,367
|
|
9,167
|
|
(2
|
)
|
|
(10
|
)
|
Dividends declared per common share
|
|
|
0.380
|
|
|
0.380
|
|
0.375
|
|
—
|
|
|
1
|
|
Average common shares outstanding
|
|
|
5,008.6
|
|
|
5,025.6
|
|
5,075.7
|
|
—
|
|
|
(1
|
)
|
Diluted average common shares outstanding
|
|
|
5,070.4
|
|
|
5,078.2
|
|
5,139.4
|
|
—
|
|
|
(1
|
)
|
Average loans
|
|
$
|
963,645
|
|
|
964,147
|
|
927,220
|
|
—
|
|
|
4
|
|
Average assets
|
|
|
1,931,041
|
|
|
1,944,250
|
|
1,819,875
|
|
(1
|
)
|
|
6
|
|
Average total deposits
|
|
|
1,299,191
|
|
|
1,284,158
|
|
1,219,430
|
|
1
|
|
|
7
|
|
Average consumer and small business banking deposits (4)
|
|
|
758,754
|
|
|
749,946
|
|
714,837
|
|
1
|
|
|
6
|
|
Net interest margin
|
|
|
2.87
|
%
|
|
2.87
|
|
2.90
|
|
—
|
|
|
(1
|
)
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
407,560
|
|
|
407,947
|
|
334,899
|
|
—
|
|
|
22
|
|
Loans
|
|
|
958,405
|
|
|
967,604
|
|
947,258
|
|
(1
|
)
|
|
1
|
|
Allowance for loan losses
|
|
|
11,168
|
|
|
11,419
|
|
11,621
|
|
(2
|
)
|
|
(4
|
)
|
Goodwill
|
|
|
26,666
|
|
|
26,693
|
|
27,003
|
|
—
|
|
|
(1
|
)
|
Assets
|
|
|
1,951,564
|
|
|
1,930,115
|
|
1,849,182
|
|
1
|
|
|
6
|
|
Deposits
|
|
|
1,325,444
|
|
|
1,306,079
|
|
1,241,490
|
|
1
|
|
|
7
|
|
Common stockholders' equity
|
|
|
178,388
|
|
|
176,469
|
|
175,534
|
|
1
|
|
|
2
|
|
Wells Fargo stockholders’ equity
|
|
|
201,500
|
|
|
199,581
|
|
197,496
|
|
1
|
|
|
2
|
|
Total equity
|
|
|
202,489
|
|
|
200,497
|
|
198,504
|
|
1
|
|
|
2
|
|
Tangible common equity (1)
|
|
|
148,850
|
|
|
146,737
|
|
144,679
|
|
1
|
|
|
3
|
|
Common shares outstanding
|
|
|
4,996.7
|
|
|
5,016.1
|
|
5,075.9
|
|
—
|
|
|
(2
|
)
|
Book value per common share (5)
|
|
$
|
35.70
|
|
|
35.18
|
|
34.58
|
|
1
|
|
|
3
|
|
Tangible book value per common share (1)(5)
|
|
|
29.79
|
|
|
29.25
|
|
28.50
|
|
2
|
|
|
5
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
59.99
|
|
|
58.02
|
|
53.27
|
|
3
|
|
|
13
|
|
Low
|
|
|
53.35
|
|
|
43.55
|
|
44.50
|
|
23
|
|
|
20
|
|
Period end
|
|
|
55.66
|
|
|
55.11
|
|
48.36
|
|
1
|
|
|
15
|
|
Team members (active, full-time equivalent)
|
|
|
272,800
|
|
|
269,100
|
|
268,600
|
|
1
|
|
|
2
|
|
(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 32.
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
Quarter ended
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
($ in millions, except per share amounts)
|
|
2017
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,457
|
|
|
5,274
|
|
5,644
|
|
5,558
|
|
5,462
|
Wells Fargo net income applicable to common stock
|
|
|
5,056
|
|
|
4,872
|
|
5,243
|
|
5,173
|
|
5,085
|
Diluted earnings per common share
|
|
|
1.00
|
|
|
0.96
|
|
1.03
|
|
1.01
|
|
0.99
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.15
|
%
|
|
1.08
|
|
1.17
|
|
1.20
|
|
1.21
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
11.54
|
|
|
10.94
|
|
11.60
|
|
11.70
|
|
11.75
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
13.85
|
|
|
13.16
|
|
13.96
|
|
14.15
|
|
14.15
|
Efficiency ratio (2)
|
|
|
62.7
|
|
|
61.2
|
|
59.4
|
|
58.1
|
|
58.7
|
Total revenue
|
|
$
|
22,002
|
|
|
21,582
|
|
22,328
|
|
22,162
|
|
22,195
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
8,210
|
|
|
8,367
|
|
9,060
|
|
9,296
|
|
9,167
|
Dividends declared per common share
|
|
|
0.380
|
|
|
0.380
|
|
0.380
|
|
0.380
|
|
0.375
|
Average common shares outstanding
|
|
|
5,008.6
|
|
|
5,025.6
|
|
5,043.4
|
|
5,066.9
|
|
5,075.7
|
Diluted average common shares outstanding
|
|
|
5,070.4
|
|
|
5,078.2
|
|
5,094.6
|
|
5,118.1
|
|
5,139.4
|
Average loans
|
|
$
|
963,645
|
|
|
964,147
|
|
957,484
|
|
950,751
|
|
927,220
|
Average assets
|
|
|
1,931,041
|
|
|
1,944,250
|
|
1,914,586
|
|
1,862,084
|
|
1,819,875
|
Average total deposits
|
|
|
1,299,191
|
|
|
1,284,158
|
|
1,261,527
|
|
1,236,658
|
|
1,219,430
|
Average consumer and small business banking deposits (4)
|
|
|
758,754
|
|
|
749,946
|
|
739,066
|
|
726,359
|
|
714,837
|
Net interest margin
|
|
|
2.87
|
%
|
|
2.87
|
|
2.82
|
|
2.86
|
|
2.90
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
407,560
|
|
|
407,947
|
|
390,832
|
|
353,426
|
|
334,899
|
Loans
|
|
|
958,405
|
|
|
967,604
|
|
961,326
|
|
957,157
|
|
947,258
|
Allowance for loan losses
|
|
|
11,168
|
|
|
11,419
|
|
11,583
|
|
11,664
|
|
11,621
|
Goodwill
|
|
|
26,666
|
|
|
26,693
|
|
26,688
|
|
26,963
|
|
27,003
|
Assets
|
|
|
1,951,564
|
|
|
1,930,115
|
|
1,942,124
|
|
1,889,235
|
|
1,849,182
|
Deposits
|
|
|
1,325,444
|
|
|
1,306,079
|
|
1,275,894
|
|
1,245,473
|
|
1,241,490
|
Common stockholders' equity
|
|
|
178,388
|
|
|
176,469
|
|
179,916
|
|
178,633
|
|
175,534
|
Wells Fargo stockholders’ equity
|
|
|
201,500
|
|
|
199,581
|
|
203,028
|
|
201,745
|
|
197,496
|
Total equity
|
|
|
202,489
|
|
|
200,497
|
|
203,958
|
|
202,661
|
|
198,504
|
Tangible common equity (1)
|
|
|
148,850
|
|
|
146,737
|
|
149,829
|
|
148,110
|
|
144,679
|
Common shares outstanding
|
|
|
4,996.7
|
|
|
5,016.1
|
|
5,023.9
|
|
5,048.5
|
|
5,075.9
|
Book value per common share (5)
|
|
$
|
35.70
|
|
|
35.18
|
|
35.81
|
|
35.38
|
|
34.58
|
Tangible book value per common share (1)(5)
|
|
|
29.79
|
|
|
29.25
|
|
29.82
|
|
29.34
|
|
28.50
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
59.99
|
|
|
58.02
|
|
51.00
|
|
51.41
|
|
53.27
|
Low
|
|
|
53.35
|
|
|
43.55
|
|
44.10
|
|
44.50
|
|
44.50
|
Period end
|
|
|
55.66
|
|
|
55.11
|
|
44.28
|
|
47.33
|
|
48.36
|
Team members (active, full-time equivalent)
|
|
|
272,800
|
|
|
269,100
|
|
268,800
|
|
267,900
|
|
268,600
|
(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 32.
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
(in millions, except per share amounts)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
Interest income
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
643
|
|
|
596
|
|
|
8
|
%
|
Investment securities
|
|
|
|
2,675
|
|
|
2,262
|
|
|
18
|
|
Mortgages held for sale
|
|
|
|
184
|
|
|
161
|
|
|
14
|
|
Loans held for sale
|
|
|
|
1
|
|
|
2
|
|
|
(50
|
)
|
Loans
|
|
|
|
10,141
|
|
|
9,577
|
|
|
6
|
|
Other interest income
|
|
|
|
582
|
|
|
374
|
|
|
56
|
|
Total interest income
|
|
|
|
14,226
|
|
|
12,972
|
|
|
10
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
537
|
|
|
307
|
|
|
75
|
|
Short-term borrowings
|
|
|
|
114
|
|
|
67
|
|
|
70
|
|
Long-term debt
|
|
|
|
1,183
|
|
|
842
|
|
|
40
|
|
Other interest expense
|
|
|
|
92
|
|
|
89
|
|
|
3
|
|
Total interest expense
|
|
|
|
1,926
|
|
|
1,305
|
|
|
48
|
|
Net interest income
|
|
|
|
12,300
|
|
|
11,667
|
|
|
5
|
|
Provision for credit losses
|
|
|
|
605
|
|
|
1,086
|
|
|
(44
|
)
|
Net interest income after provision for credit losses
|
|
|
|
11,695
|
|
|
10,581
|
|
|
11
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,313
|
|
|
1,309
|
|
|
—
|
|
Trust and investment fees
|
|
|
|
3,570
|
|
|
3,385
|
|
|
5
|
|
Card fees
|
|
|
|
945
|
|
|
941
|
|
|
—
|
|
Other fees
|
|
|
|
865
|
|
|
933
|
|
|
(7
|
)
|
Mortgage banking
|
|
|
|
1,228
|
|
|
1,598
|
|
|
(23
|
)
|
Insurance
|
|
|
|
277
|
|
|
427
|
|
|
(35
|
)
|
Net gains from trading activities
|
|
|
|
439
|
|
|
200
|
|
|
120
|
|
Net gains on debt securities
|
|
|
|
36
|
|
|
244
|
|
|
(85
|
)
|
Net gains from equity investments
|
|
|
|
403
|
|
|
244
|
|
|
65
|
|
Lease income
|
|
|
|
481
|
|
|
373
|
|
|
29
|
|
Other
|
|
|
|
145
|
|
|
874
|
|
|
(83
|
)
|
Total noninterest income
|
|
|
|
9,702
|
|
|
10,528
|
|
|
(8
|
)
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,261
|
|
|
4,036
|
|
|
6
|
|
Commission and incentive compensation
|
|
|
|
2,725
|
|
|
2,645
|
|
|
3
|
|
Employee benefits
|
|
|
|
1,686
|
|
|
1,526
|
|
|
10
|
|
Equipment
|
|
|
|
577
|
|
|
528
|
|
|
9
|
|
Net occupancy
|
|
|
|
712
|
|
|
711
|
|
|
—
|
|
Core deposit and other intangibles
|
|
|
|
289
|
|
|
293
|
|
|
(1
|
)
|
FDIC and other deposit assessments
|
|
|
|
333
|
|
|
250
|
|
|
33
|
|
Other
|
|
|
|
3,209
|
|
|
3,039
|
|
|
6
|
|
Total noninterest expense
|
|
|
|
13,792
|
|
|
13,028
|
|
|
6
|
|
Income before income tax expense
|
|
|
|
7,605
|
|
|
8,081
|
|
|
(6
|
)
|
Income tax expense
|
|
|
|
2,057
|
|
|
2,567
|
|
|
(20
|
)
|
Net income before noncontrolling interests
|
|
|
|
5,548
|
|
|
5,514
|
|
|
1
|
|
Less: Net income from noncontrolling interests
|
|
|
|
91
|
|
|
52
|
|
|
75
|
|
Wells Fargo net income
|
|
|
$
|
5,457
|
|
|
5,462
|
|
|
—
|
|
Less: Preferred stock dividends and other
|
|
|
|
401
|
|
|
377
|
|
|
6
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,056
|
|
|
5,085
|
|
|
(1
|
)
|
Per share information
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.01
|
|
|
1.00
|
|
|
1
|
|
Diluted earnings per common share
|
|
|
|
1.00
|
|
|
0.99
|
|
|
1
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
0.375
|
|
|
1
|
|
Average common shares outstanding
|
|
|
|
5,008.6
|
|
|
5,075.7
|
|
|
(1
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,070.4
|
|
|
5,139.4
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions, except per share amounts)
|
|
|
2017
|
|
|
2016
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
643
|
|
|
745
|
|
|
|
593
|
|
|
572
|
|
|
596
|
Investment securities
|
|
|
|
2,675
|
|
|
2,512
|
|
|
|
2,298
|
|
|
2,176
|
|
|
2,262
|
Mortgages held for sale
|
|
|
|
184
|
|
|
235
|
|
|
|
207
|
|
|
181
|
|
|
161
|
Loans held for sale
|
|
|
|
1
|
|
|
2
|
|
|
|
2
|
|
|
3
|
|
|
2
|
Loans
|
|
|
|
10,141
|
|
|
10,128
|
|
|
|
9,978
|
|
|
9,822
|
|
|
9,577
|
Other interest income
|
|
|
|
582
|
|
|
436
|
|
|
|
409
|
|
|
392
|
|
|
374
|
Total interest income
|
|
|
|
14,226
|
|
|
14,058
|
|
|
|
13,487
|
|
|
13,146
|
|
|
12,972
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
537
|
|
|
400
|
|
|
|
356
|
|
|
332
|
|
|
307
|
Short-term borrowings
|
|
|
|
114
|
|
|
101
|
|
|
|
85
|
|
|
77
|
|
|
67
|
Long-term debt
|
|
|
|
1,183
|
|
|
1,061
|
|
|
|
1,006
|
|
|
921
|
|
|
842
|
Other interest expense
|
|
|
|
92
|
|
|
94
|
|
|
|
88
|
|
|
83
|
|
|
89
|
Total interest expense
|
|
|
|
1,926
|
|
|
1,656
|
|
|
|
1,535
|
|
|
1,413
|
|
|
1,305
|
Net interest income
|
|
|
|
12,300
|
|
|
12,402
|
|
|
|
11,952
|
|
|
11,733
|
|
|
11,667
|
Provision for credit losses
|
|
|
|
605
|
|
|
805
|
|
|
|
805
|
|
|
1,074
|
|
|
1,086
|
Net interest income after provision for credit losses
|
|
|
|
11,695
|
|
|
11,597
|
|
|
|
11,147
|
|
|
10,659
|
|
|
10,581
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,313
|
|
|
1,357
|
|
|
|
1,370
|
|
|
1,336
|
|
|
1,309
|
Trust and investment fees
|
|
|
|
3,570
|
|
|
3,698
|
|
|
|
3,613
|
|
|
3,547
|
|
|
3,385
|
Card fees
|
|
|
|
945
|
|
|
1,001
|
|
|
|
997
|
|
|
997
|
|
|
941
|
Other fees
|
|
|
|
865
|
|
|
962
|
|
|
|
926
|
|
|
906
|
|
|
933
|
Mortgage banking
|
|
|
|
1,228
|
|
|
1,417
|
|
|
|
1,667
|
|
|
1,414
|
|
|
1,598
|
Insurance
|
|
|
|
277
|
|
|
262
|
|
|
|
293
|
|
|
286
|
|
|
427
|
Net gains (losses) from trading activities
|
|
|
|
439
|
|
|
(109
|
)
|
|
|
415
|
|
|
328
|
|
|
200
|
Net gains on debt securities
|
|
|
|
36
|
|
|
145
|
|
|
|
106
|
|
|
447
|
|
|
244
|
Net gains from equity investments
|
|
|
|
403
|
|
|
306
|
|
|
|
140
|
|
|
189
|
|
|
244
|
Lease income
|
|
|
|
481
|
|
|
523
|
|
|
|
534
|
|
|
497
|
|
|
373
|
Other
|
|
|
|
145
|
|
|
(382
|
)
|
|
|
315
|
|
|
482
|
|
|
874
|
Total noninterest income
|
|
|
|
9,702
|
|
|
9,180
|
|
|
|
10,376
|
|
|
10,429
|
|
|
10,528
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,261
|
|
|
4,193
|
|
|
|
4,224
|
|
|
4,099
|
|
|
4,036
|
Commission and incentive compensation
|
|
|
|
2,725
|
|
|
2,478
|
|
|
|
2,520
|
|
|
2,604
|
|
|
2,645
|
Employee benefits
|
|
|
|
1,686
|
|
|
1,101
|
|
|
|
1,223
|
|
|
1,244
|
|
|
1,526
|
Equipment
|
|
|
|
577
|
|
|
642
|
|
|
|
491
|
|
|
493
|
|
|
528
|
Net occupancy
|
|
|
|
712
|
|
|
710
|
|
|
|
718
|
|
|
716
|
|
|
711
|
Core deposit and other intangibles
|
|
|
|
289
|
|
|
301
|
|
|
|
299
|
|
|
299
|
|
|
293
|
FDIC and other deposit assessments
|
|
|
|
333
|
|
|
353
|
|
|
|
310
|
|
|
255
|
|
|
250
|
Other
|
|
|
|
3,209
|
|
|
3,437
|
|
|
|
3,483
|
|
|
3,156
|
|
|
3,039
|
Total noninterest expense
|
|
|
|
13,792
|
|
|
13,215
|
|
|
|
13,268
|
|
|
12,866
|
|
|
13,028
|
Income before income tax expense
|
|
|
|
7,605
|
|
|
7,562
|
|
|
|
8,255
|
|
|
8,222
|
|
|
8,081
|
Income tax expense
|
|
|
|
2,057
|
|
|
2,258
|
|
|
|
2,601
|
|
|
2,649
|
|
|
2,567
|
Net income before noncontrolling interests
|
|
|
|
5,548
|
|
|
5,304
|
|
|
|
5,654
|
|
|
5,573
|
|
|
5,514
|
Less: Net income from noncontrolling interests
|
|
|
|
91
|
|
|
30
|
|
|
|
10
|
|
|
15
|
|
|
52
|
Wells Fargo net income
|
|
|
$
|
5,457
|
|
|
5,274
|
|
|
|
5,644
|
|
|
5,558
|
|
|
5,462
|
Less: Preferred stock dividends and other
|
|
|
|
401
|
|
|
402
|
|
|
|
401
|
|
|
385
|
|
|
377
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,056
|
|
|
4,872
|
|
|
|
5,243
|
|
|
5,173
|
|
|
5,085
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.01
|
|
|
0.97
|
|
|
|
1.04
|
|
|
1.02
|
|
|
1.00
|
Diluted earnings per common share
|
|
|
|
1.00
|
|
|
0.96
|
|
|
|
1.03
|
|
|
1.01
|
|
|
0.99
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
0.380
|
|
|
|
0.380
|
|
|
0.380
|
|
|
0.375
|
Average common shares outstanding
|
|
|
|
5,008.6
|
|
|
5,025.6
|
|
|
|
5,043.4
|
|
|
5,066.9
|
|
|
5,075.7
|
Diluted average common shares outstanding
|
|
|
|
5,070.4
|
|
|
5,078.2
|
|
|
|
5,094.6
|
|
|
5,118.1
|
|
|
5,139.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
Quarter ended Mar 31,
|
|
|
|
%
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
|
Change
|
Wells Fargo net income
|
|
|
$
|
5,457
|
|
|
|
5,462
|
|
|
|
—%
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
369
|
|
|
|
795
|
|
|
|
(54)
|
Reclassification of net gains to net income
|
|
|
|
(145
|
)
|
|
|
(304
|
)
|
|
|
(52)
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(133
|
)
|
|
|
1,999
|
|
|
|
NM
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(202
|
)
|
|
|
(256
|
)
|
|
|
(21)
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial and prior service losses arising during the period
|
|
|
|
(7
|
)
|
|
|
(8
|
)
|
|
|
(13)
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
|
38
|
|
|
|
37
|
|
|
|
3
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
16
|
|
|
|
43
|
|
|
|
(63)
|
Other comprehensive income (loss), before tax
|
|
|
|
(64
|
)
|
|
|
2,306
|
|
|
|
NM
|
Income tax (expense) benefit related to other comprehensive income
|
|
|
|
37
|
|
|
|
(857
|
)
|
|
|
NM
|
Other comprehensive income (loss), net of tax
|
|
|
|
(27
|
)
|
|
|
1,449
|
|
|
|
NM
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
|
14
|
|
|
|
(28
|
)
|
|
|
NM
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
(41
|
)
|
|
|
1,477
|
|
|
|
NM
|
Wells Fargo comprehensive income
|
|
|
|
5,416
|
|
|
|
6,939
|
|
|
|
(22)
|
Comprehensive income from noncontrolling interests
|
|
|
|
105
|
|
|
|
24
|
|
|
|
338
|
Total comprehensive income
|
|
|
$
|
5,521
|
|
|
|
6,963
|
|
|
|
(21)
|
NM – Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Balance, beginning of period
|
|
$
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
|
198,504
|
|
|
193,891
|
|
Cumulative effect from change in consolidation accounting (1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121
|
|
Wells Fargo net income
|
|
|
5,457
|
|
|
5,274
|
|
|
5,644
|
|
|
5,558
|
|
|
5,462
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
(41
|
)
|
|
(5,321
|
)
|
|
(764
|
)
|
|
1,174
|
|
|
1,477
|
|
Noncontrolling interests
|
|
|
75
|
|
|
(13
|
)
|
|
14
|
|
|
(92
|
)
|
|
(5
|
)
|
Common stock issued
|
|
|
1,406
|
|
|
610
|
|
|
300
|
|
|
397
|
|
|
1,079
|
|
Common stock repurchased (2)
|
|
|
(2,175
|
)
|
|
(2,034
|
)
|
|
(1,839
|
)
|
|
(2,214
|
)
|
|
(2,029
|
)
|
Preferred stock released by ESOP
|
|
|
—
|
|
|
43
|
|
|
236
|
|
|
371
|
|
|
313
|
|
Common stock warrants repurchased/exercised
|
|
|
(44
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
Preferred stock issued
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,126
|
|
|
975
|
|
Common stock dividends
|
|
|
(1,903
|
)
|
|
(1,909
|
)
|
|
(1,918
|
)
|
|
(1,930
|
)
|
|
(1,904
|
)
|
Preferred stock dividends
|
|
|
(401
|
)
|
|
(401
|
)
|
|
(401
|
)
|
|
(386
|
)
|
|
(378
|
)
|
Tax benefit from stock incentive compensation (3)
|
|
|
—
|
|
|
74
|
|
|
31
|
|
|
23
|
|
|
149
|
|
Stock incentive compensation expense
|
|
|
389
|
|
|
232
|
|
|
39
|
|
|
139
|
|
|
369
|
|
Net change in deferred compensation and related plans
|
|
|
(771
|
)
|
|
(16
|
)
|
|
(28
|
)
|
|
(9
|
)
|
|
(1,016
|
)
|
Balance, end of period
|
|
$
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
|
198,504
|
|
(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, 2016, includes $750 million
related to a private forward repurchase transaction that settled
in first quarter 2017 for 14.7 million shares of common stock.
|
|
(3) Effective January 1, 2017, we adopted Accounting Standards
Update 2016-09 (Improvements to Employee Share-Based Payment
Accounting). Accordingly, tax benefit from stock incentive
compensation is reported in income tax expense in the consolidated
statement of income.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
Quarter ended March 31,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
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
|
|
$
|
283,767
|
|
|
0.76
|
%
|
|
$
|
532
|
|
|
284,697
|
|
|
0.49
|
%
|
|
$
|
344
|
Trading assets
|
|
|
93,765
|
|
|
2.80
|
|
|
|
655
|
|
|
80,464
|
|
|
3.01
|
|
|
|
605
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
25,034
|
|
|
1.54
|
|
|
|
95
|
|
|
34,474
|
|
|
1.59
|
|
|
|
136
|
Securities of U.S. states and political subdivisions
|
|
|
52,248
|
|
|
4.03
|
|
|
|
526
|
|
|
50,512
|
|
|
4.24
|
|
|
|
535
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
156,617
|
|
|
2.58
|
|
|
|
1,011
|
|
|
96,423
|
|
|
2.80
|
|
|
|
675
|
Residential and commercial
|
|
|
14,452
|
|
|
5.32
|
|
|
|
192
|
|
|
20,827
|
|
|
5.20
|
|
|
|
271
|
Total mortgage-backed securities
|
|
|
171,069
|
|
|
2.81
|
|
|
|
1,203
|
|
|
117,250
|
|
|
3.23
|
|
|
|
946
|
Other debt and equity securities
|
|
|
50,620
|
|
|
3.60
|
|
|
|
452
|
|
|
53,558
|
|
|
3.21
|
|
|
|
429
|
Total available-for-sale securities
|
|
|
298,971
|
|
|
3.05
|
|
|
|
2,276
|
|
|
255,794
|
|
|
3.20
|
|
|
|
2,046
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,693
|
|
|
2.20
|
|
|
|
243
|
|
|
44,664
|
|
|
2.20
|
|
|
|
244
|
Securities of U.S. states and political subdivisions
|
|
|
6,273
|
|
|
5.30
|
|
|
|
83
|
|
|
2,156
|
|
|
5.41
|
|
|
|
29
|
Federal agency and other mortgage-backed securities
|
|
|
51,786
|
|
|
2.51
|
|
|
|
324
|
|
|
28,114
|
|
|
2.49
|
|
|
|
175
|
Other debt securities
|
|
|
3,329
|
|
|
2.34
|
|
|
|
19
|
|
|
4,598
|
|
|
1.92
|
|
|
|
22
|
Total held-to-maturity securities
|
|
|
106,081
|
|
|
2.54
|
|
|
|
669
|
|
|
79,532
|
|
|
2.37
|
|
|
|
470
|
Total investment securities
|
|
|
405,052
|
|
|
2.92
|
|
|
|
2,945
|
|
|
335,326
|
|
|
3.01
|
|
|
|
2,516
|
Mortgages held for sale (4)
|
|
|
19,893
|
|
|
3.70
|
|
|
|
184
|
|
|
17,870
|
|
|
3.59
|
|
|
|
161
|
Loans held for sale (4)
|
|
|
112
|
|
|
4.44
|
|
|
|
1
|
|
|
282
|
|
|
3.23
|
|
|
|
2
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
274,749
|
|
|
3.59
|
|
|
|
2,436
|
|
|
257,727
|
|
|
3.39
|
|
|
|
2,177
|
Commercial and industrial - Non U.S.
|
|
|
55,347
|
|
|
2.73
|
|
|
|
373
|
|
|
49,508
|
|
|
2.10
|
|
|
|
258
|
Real estate mortgage
|
|
|
132,449
|
|
|
3.56
|
|
|
|
1,164
|
|
|
122,739
|
|
|
3.41
|
|
|
|
1,040
|
Real estate construction
|
|
|
24,591
|
|
|
3.72
|
|
|
|
225
|
|
|
22,603
|
|
|
3.61
|
|
|
|
203
|
Lease financing
|
|
|
19,070
|
|
|
4.94
|
|
|
|
235
|
|
|
15,047
|
|
|
4.74
|
|
|
|
178
|
Total commercial
|
|
|
506,206
|
|
|
3.54
|
|
|
|
4,433
|
|
|
467,624
|
|
|
3.31
|
|
|
|
3,856
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275,480
|
|
|
4.02
|
|
|
|
2,766
|
|
|
274,722
|
|
|
4.05
|
|
|
|
2,782
|
Real estate 1-4 family junior lien mortgage
|
|
|
45,285
|
|
|
4.60
|
|
|
|
515
|
|
|
52,236
|
|
|
4.39
|
|
|
|
571
|
Credit card
|
|
|
35,437
|
|
|
11.97
|
|
|
|
1,046
|
|
|
33,366
|
|
|
11.61
|
|
|
|
963
|
Automobile
|
|
|
61,510
|
|
|
5.46
|
|
|
|
828
|
|
|
60,114
|
|
|
5.67
|
|
|
|
848
|
Other revolving credit and installment
|
|
|
39,727
|
|
|
6.02
|
|
|
|
590
|
|
|
39,158
|
|
|
5.99
|
|
|
|
584
|
Total consumer
|
|
|
457,439
|
|
|
5.06
|
|
|
|
5,745
|
|
|
459,596
|
|
|
5.02
|
|
|
|
5,748
|
Total loans (4)
|
|
|
963,645
|
|
|
4.26
|
|
|
|
10,178
|
|
|
927,220
|
|
|
4.16
|
|
|
|
9,604
|
Other
|
|
|
6,865
|
|
|
2.96
|
|
|
|
50
|
|
|
5,808
|
|
|
2.06
|
|
|
|
30
|
Total earning assets
|
|
$
|
1,773,099
|
|
|
3.31
|
%
|
|
$
|
14,545
|
|
|
1,651,667
|
|
|
3.22
|
%
|
|
$
|
13,262
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
50,686
|
|
|
0.29
|
%
|
|
$
|
37
|
|
|
38,711
|
|
|
0.12
|
%
|
|
$
|
11
|
Market rate and other savings
|
|
|
684,175
|
|
|
0.09
|
|
|
|
157
|
|
|
651,551
|
|
|
0.07
|
|
|
|
107
|
Savings certificates
|
|
|
23,466
|
|
|
0.29
|
|
|
|
17
|
|
|
27,880
|
|
|
0.45
|
|
|
|
31
|
Other time deposits
|
|
|
54,915
|
|
|
1.31
|
|
|
|
178
|
|
|
58,206
|
|
|
0.74
|
|
|
|
107
|
Deposits in foreign offices
|
|
|
122,200
|
|
|
0.49
|
|
|
|
148
|
|
|
97,682
|
|
|
0.21
|
|
|
|
51
|
Total interest-bearing deposits
|
|
|
935,442
|
|
|
0.23
|
|
|
|
537
|
|
|
874,030
|
|
|
0.14
|
|
|
|
307
|
Short-term borrowings
|
|
|
98,549
|
|
|
0.47
|
|
|
|
115
|
|
|
107,857
|
|
|
0.25
|
|
|
|
67
|
Long-term debt
|
|
|
259,793
|
|
|
1.83
|
|
|
|
1,183
|
|
|
216,883
|
|
|
1.56
|
|
|
|
842
|
Other liabilities
|
|
|
16,806
|
|
|
2.22
|
|
|
|
92
|
|
|
16,492
|
|
|
2.14
|
|
|
|
89
|
Total interest-bearing liabilities
|
|
|
1,310,590
|
|
|
0.59
|
|
|
|
1,927
|
|
|
1,215,262
|
|
|
0.43
|
|
|
|
1,305
|
Portion of noninterest-bearing funding sources
|
|
|
462,509
|
|
|
—
|
|
|
|
—
|
|
|
436,405
|
|
|
—
|
|
|
|
—
|
Total funding sources
|
|
$
|
1,773,099
|
|
|
0.44
|
|
|
|
1,927
|
|
|
1,651,667
|
|
|
0.32
|
|
|
|
1,305
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
2.87
|
%
|
|
$
|
12,618
|
|
|
|
|
2.90
|
%
|
|
$
|
11,957
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18,706
|
|
|
|
|
|
|
17,995
|
|
|
|
|
|
Goodwill
|
|
|
26,673
|
|
|
|
|
|
|
26,069
|
|
|
|
|
|
Other
|
|
|
112,563
|
|
|
|
|
|
|
124,144
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
157,942
|
|
|
|
|
|
|
168,208
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
363,749
|
|
|
|
|
|
|
345,400
|
|
|
|
|
|
Other liabilities
|
|
|
54,935
|
|
|
|
|
|
|
62,627
|
|
|
|
|
|
Total equity
|
|
|
201,767
|
|
|
|
|
|
|
196,586
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(462,509
|
)
|
|
|
|
|
|
(436,405
|
)
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
157,942
|
|
|
|
|
|
|
168,208
|
|
|
|
|
|
Total assets
|
|
$
|
1,931,041
|
|
|
|
|
|
|
1,819,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.80% and 3.50% for the quarters
ended March 31, 2017 and 2016, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 1.07% and
0.62% 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 $318 million and
$290 million for the quarters ended March 31, 2017 and 2016,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
Quarter ended
|
|
|
|
Mar 31, 2017
|
|
|
Dec 31, 2016
|
|
|
Sep 30, 2016
|
|
|
Jun 30, 2016
|
|
|
Mar 31, 2016
|
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
($ 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
|
|
$
|
283.8
|
|
|
0.76
|
%
|
|
$
|
273.1
|
|
|
0.56
|
%
|
|
$
|
299.4
|
|
|
0.50
|
%
|
|
$
|
293.8
|
|
|
0.49
|
%
|
|
$
|
284.7
|
|
|
0.49
|
%
|
Trading assets
|
|
93.8
|
|
|
2.80
|
|
|
102.8
|
|
|
2.96
|
|
|
88.8
|
|
|
2.72
|
|
|
81.4
|
|
|
2.86
|
|
|
80.5
|
|
|
3.01
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
25.0
|
|
|
1.54
|
|
|
25.9
|
|
|
1.53
|
|
|
25.8
|
|
|
1.52
|
|
|
31.5
|
|
|
1.56
|
|
|
34.4
|
|
|
1.59
|
|
Securities of U.S. states and political subdivisions
|
|
52.2
|
|
|
4.03
|
|
|
53.9
|
|
|
4.06
|
|
|
55.2
|
|
|
4.28
|
|
|
52.2
|
|
|
4.24
|
|
|
50.5
|
|
|
4.24
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
156.6
|
|
|
2.58
|
|
|
148.0
|
|
|
2.37
|
|
|
105.8
|
|
|
2.39
|
|
|
92.0
|
|
|
2.53
|
|
|
96.5
|
|
|
2.80
|
|
Residential and commercial
|
|
14.5
|
|
|
5.32
|
|
|
16.5
|
|
|
5.87
|
|
|
18.1
|
|
|
5.54
|
|
|
19.6
|
|
|
5.44
|
|
|
20.8
|
|
|
5.20
|
|
Total mortgage-backed securities
|
|
171.1
|
|
|
2.81
|
|
|
164.5
|
|
|
2.72
|
|
|
123.9
|
|
|
2.85
|
|
|
111.6
|
|
|
3.04
|
|
|
117.3
|
|
|
3.23
|
|
Other debt and equity securities
|
|
50.7
|
|
|
3.60
|
|
|
52.7
|
|
|
3.71
|
|
|
54.2
|
|
|
3.37
|
|
|
53.3
|
|
|
3.48
|
|
|
53.6
|
|
|
3.21
|
|
Total available-for-sale securities
|
|
299.0
|
|
|
3.05
|
|
|
297.0
|
|
|
3.03
|
|
|
259.1
|
|
|
3.13
|
|
|
248.6
|
|
|
3.20
|
|
|
255.8
|
|
|
3.20
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
44.7
|
|
|
2.20
|
|
|
44.7
|
|
|
2.20
|
|
|
44.6
|
|
|
2.19
|
|
|
44.6
|
|
|
2.19
|
|
|
44.7
|
|
|
2.20
|
|
Securities of U.S. states and political subdivisions
|
|
6.3
|
|
|
5.30
|
|
|
4.7
|
|
|
5.31
|
|
|
2.5
|
|
|
5.24
|
|
|
2.2
|
|
|
5.41
|
|
|
2.1
|
|
|
5.41
|
|
Federal agency and other mortgage-backed securities
|
|
51.8
|
|
|
2.51
|
|
|
46.0
|
|
|
1.81
|
|
|
48.0
|
|
|
1.97
|
|
|
35.1
|
|
|
1.90
|
|
|
28.1
|
|
|
2.49
|
|
Other debt securities
|
|
3.3
|
|
|
2.34
|
|
|
3.6
|
|
|
2.26
|
|
|
3.9
|
|
|
1.98
|
|
|
4.1
|
|
|
1.92
|
|
|
4.6
|
|
|
1.92
|
|
Total held-to-maturity securities
|
|
106.1
|
|
|
2.54
|
|
|
99.0
|
|
|
2.17
|
|
|
99.0
|
|
|
2.15
|
|
|
86.0
|
|
|
2.14
|
|
|
79.5
|
|
|
2.37
|
|
Total investment securities
|
|
405.1
|
|
|
2.92
|
|
|
396.0
|
|
|
2.82
|
|
|
358.1
|
|
|
2.86
|
|
|
334.6
|
|
|
2.93
|
|
|
335.3
|
|
|
3.01
|
|
Mortgages held for sale
|
|
19.9
|
|
|
3.70
|
|
|
27.5
|
|
|
3.43
|
|
|
24.1
|
|
|
3.44
|
|
|
20.1
|
|
|
3.60
|
|
|
17.9
|
|
|
3.59
|
|
Loans held for sale
|
|
0.1
|
|
|
4.44
|
|
|
0.2
|
|
|
5.42
|
|
|
0.2
|
|
|
3.04
|
|
|
0.2
|
|
|
4.83
|
|
|
0.3
|
|
|
3.23
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
274.8
|
|
|
3.59
|
|
|
272.8
|
|
|
3.46
|
|
|
271.2
|
|
|
3.48
|
|
|
270.9
|
|
|
3.45
|
|
|
257.7
|
|
|
3.39
|
|
Commercial and industrial - Non U.S.
|
|
55.3
|
|
|
2.73
|
|
|
54.4
|
|
|
2.58
|
|
|
51.3
|
|
|
2.40
|
|
|
51.2
|
|
|
2.35
|
|
|
49.5
|
|
|
2.10
|
|
Real estate mortgage
|
|
132.4
|
|
|
3.56
|
|
|
131.2
|
|
|
3.44
|
|
|
128.8
|
|
|
3.48
|
|
|
126.1
|
|
|
3.41
|
|
|
122.7
|
|
|
3.41
|
|
Real estate construction
|
|
24.6
|
|
|
3.72
|
|
|
23.9
|
|
|
3.61
|
|
|
23.2
|
|
|
3.50
|
|
|
23.1
|
|
|
3.49
|
|
|
22.6
|
|
|
3.61
|
|
Lease financing
|
|
19.1
|
|
|
4.94
|
|
|
18.9
|
|
|
5.78
|
|
|
18.9
|
|
|
4.70
|
|
|
19.0
|
|
|
5.12
|
|
|
15.1
|
|
|
4.74
|
|
Total commercial
|
|
506.2
|
|
|
3.54
|
|
|
501.2
|
|
|
3.45
|
|
|
493.4
|
|
|
3.42
|
|
|
490.3
|
|
|
3.39
|
|
|
467.6
|
|
|
3.31
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
275.5
|
|
|
4.02
|
|
|
277.7
|
|
|
4.01
|
|
|
278.5
|
|
|
3.97
|
|
|
275.9
|
|
|
4.01
|
|
|
274.7
|
|
|
4.05
|
|
Real estate 1-4 family junior lien mortgage
|
|
45.3
|
|
|
4.60
|
|
|
47.2
|
|
|
4.42
|
|
|
48.9
|
|
|
4.37
|
|
|
50.6
|
|
|
4.37
|
|
|
52.2
|
|
|
4.39
|
|
Credit card
|
|
35.4
|
|
|
11.97
|
|
|
35.4
|
|
|
11.73
|
|
|
34.6
|
|
|
11.60
|
|
|
33.4
|
|
|
11.52
|
|
|
33.4
|
|
|
11.61
|
|
Automobile
|
|
61.5
|
|
|
5.46
|
|
|
62.5
|
|
|
5.54
|
|
|
62.5
|
|
|
5.60
|
|
|
61.1
|
|
|
5.66
|
|
|
60.1
|
|
|
5.67
|
|
Other revolving credit and installment
|
|
39.7
|
|
|
6.02
|
|
|
40.1
|
|
|
5.91
|
|
|
39.6
|
|
|
5.92
|
|
|
39.5
|
|
|
5.91
|
|
|
39.2
|
|
|
5.99
|
|
Total consumer
|
|
457.4
|
|
|
5.06
|
|
|
462.9
|
|
|
5.01
|
|
|
464.1
|
|
|
4.97
|
|
|
460.5
|
|
|
4.98
|
|
|
459.6
|
|
|
5.02
|
|
Total loans
|
|
963.6
|
|
|
4.26
|
|
|
964.1
|
|
|
4.20
|
|
|
957.5
|
|
|
4.17
|
|
|
950.8
|
|
|
4.16
|
|
|
927.2
|
|
|
4.16
|
|
Other
|
|
6.8
|
|
|
2.96
|
|
|
6.7
|
|
|
3.27
|
|
|
6.4
|
|
|
2.30
|
|
|
6.0
|
|
|
2.30
|
|
|
5.8
|
|
|
2.06
|
|
Total earning assets
|
|
$
|
1,773.1
|
|
|
3.31
|
%
|
|
$
|
1,770.4
|
|
|
3.24
|
%
|
|
$
|
1,734.5
|
|
|
3.17
|
%
|
|
$
|
1,686.9
|
|
|
3.20
|
%
|
|
$
|
1,651.7
|
|
|
3.22
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
50.7
|
|
|
0.29
|
%
|
|
$
|
46.9
|
|
|
0.17
|
%
|
|
$
|
44.0
|
|
|
0.15
|
%
|
|
$
|
39.8
|
|
|
0.13
|
%
|
|
$
|
38.7
|
|
|
0.12
|
%
|
Market rate and other savings
|
|
684.2
|
|
|
0.09
|
|
|
676.4
|
|
|
0.07
|
|
|
667.2
|
|
|
0.07
|
|
|
659.0
|
|
|
0.07
|
|
|
651.5
|
|
|
0.07
|
|
Savings certificates
|
|
23.5
|
|
|
0.29
|
|
|
24.4
|
|
|
0.30
|
|
|
25.2
|
|
|
0.30
|
|
|
26.2
|
|
|
0.35
|
|
|
27.9
|
|
|
0.45
|
|
Other time deposits
|
|
54.9
|
|
|
1.31
|
|
|
49.2
|
|
|
1.16
|
|
|
54.9
|
|
|
0.93
|
|
|
61.2
|
|
|
0.85
|
|
|
58.2
|
|
|
0.74
|
|
Deposits in foreign offices
|
|
122.2
|
|
|
0.49
|
|
|
110.4
|
|
|
0.35
|
|
|
107.1
|
|
|
0.30
|
|
|
97.5
|
|
|
0.23
|
|
|
97.7
|
|
|
0.21
|
|
Total interest-bearing deposits
|
|
935.5
|
|
|
0.23
|
|
|
907.3
|
|
|
0.18
|
|
|
898.4
|
|
|
0.16
|
|
|
883.7
|
|
|
0.15
|
|
|
874.0
|
|
|
0.14
|
|
Short-term borrowings
|
|
98.5
|
|
|
0.47
|
|
|
124.7
|
|
|
0.33
|
|
|
116.2
|
|
|
0.29
|
|
|
111.8
|
|
|
0.28
|
|
|
107.9
|
|
|
0.25
|
|
Long-term debt
|
|
259.8
|
|
|
1.83
|
|
|
252.2
|
|
|
1.68
|
|
|
252.4
|
|
|
1.59
|
|
|
236.2
|
|
|
1.56
|
|
|
216.9
|
|
|
1.56
|
|
Other liabilities
|
|
16.8
|
|
|
2.22
|
|
|
17.1
|
|
|
2.15
|
|
|
16.8
|
|
|
2.11
|
|
|
16.3
|
|
|
2.06
|
|
|
16.5
|
|
|
2.14
|
|
Total interest-bearing liabilities
|
|
1,310.6
|
|
|
0.59
|
|
|
1,301.3
|
|
|
0.51
|
|
|
1,283.8
|
|
|
0.48
|
|
|
1,248.0
|
|
|
0.45
|
|
|
1,215.3
|
|
|
0.43
|
|
Portion of noninterest-bearing funding sources
|
|
462.5
|
|
|
—
|
|
|
469.1
|
|
|
—
|
|
|
450.7
|
|
|
—
|
|
|
438.9
|
|
|
—
|
|
|
436.4
|
|
|
—
|
|
Total funding sources
|
|
$
|
1,773.1
|
|
|
0.44
|
|
|
$
|
1,770.4
|
|
|
0.37
|
|
|
$
|
1,734.5
|
|
|
0.35
|
|
|
$
|
1,686.9
|
|
|
0.34
|
|
|
$
|
1,651.7
|
|
|
0.32
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
2.87
|
%
|
|
|
|
|
2.87
|
%
|
|
|
|
|
2.82
|
%
|
|
|
|
|
2.86
|
%
|
|
|
|
|
2.90
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18.7
|
|
|
|
|
|
19.0
|
|
|
|
|
|
18.7
|
|
|
|
|
|
18.8
|
|
|
|
|
|
18.0
|
|
|
|
|
Goodwill
|
|
26.7
|
|
|
|
|
|
26.7
|
|
|
|
|
|
27.0
|
|
|
|
|
|
27.0
|
|
|
|
|
|
26.1
|
|
|
|
|
Other
|
|
112.5
|
|
|
|
|
|
128.2
|
|
|
|
|
|
134.4
|
|
|
|
|
|
129.4
|
|
|
|
|
|
124.1
|
|
|
|
|
Total noninterest-earnings assets
|
|
$
|
157.9
|
|
|
|
|
|
173.9
|
|
|
|
|
|
180.1
|
|
|
|
|
|
175.2
|
|
|
|
|
|
168.2
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
363.7
|
|
|
|
|
|
376.9
|
|
|
|
|
|
363.1
|
|
|
|
|
|
353.0
|
|
|
|
|
|
345.4
|
|
|
|
|
Other liabilities
|
|
54.9
|
|
|
|
|
|
64.9
|
|
|
|
|
|
63.8
|
|
|
|
|
|
60.1
|
|
|
|
|
|
62.6
|
|
|
|
|
Total equity
|
|
201.8
|
|
|
|
|
|
201.2
|
|
|
|
|
|
203.9
|
|
|
|
|
|
201.0
|
|
|
|
|
|
196.6
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
(462.5
|
)
|
|
|
|
|
(469.1
|
)
|
|
|
|
|
(450.7
|
)
|
|
|
|
|
(438.9
|
)
|
|
|
|
|
(436.4
|
)
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
157.9
|
|
|
|
|
|
173.9
|
|
|
|
|
|
180.1
|
|
|
|
|
|
175.2
|
|
|
|
|
|
168.2
|
|
|
|
|
Total assets
|
|
$
|
1,931.0
|
|
|
|
|
|
1,944.3
|
|
|
|
|
|
1,914.6
|
|
|
|
|
|
1,862.1
|
|
|
|
|
|
1,819.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.80% for the quarter ended March
31, 2017, 3.54% for the quarter ended December 31, 2016, and 3.50%
for the quarters ended September 30, June 30 and March 31, 2016.
The average three-month London Interbank Offered Rate (LIBOR) was
1.07%, 0.92%, 0.79%, 0.64% and 0.62% for the same quarters,
respectively.
|
|
(2) Yields/rates include the effects of hedge and risk management
activities associated with the respective asset and liability
categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
NONINTEREST INCOME
|
|
|
|
Quarter ended March 31,
|
|
|
|
%
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
|
Change
|
Service charges on deposit accounts
|
|
|
$
|
1,313
|
|
|
1,309
|
|
|
|
—
|
%
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,324
|
|
|
2,239
|
|
|
|
4
|
|
Trust and investment management
|
|
|
|
829
|
|
|
815
|
|
|
|
2
|
|
Investment banking
|
|
|
|
417
|
|
|
331
|
|
|
|
26
|
|
Total trust and investment fees
|
|
|
|
3,570
|
|
|
3,385
|
|
|
|
5
|
|
Card fees
|
|
|
|
945
|
|
|
941
|
|
|
|
—
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
307
|
|
|
313
|
|
|
|
(2
|
)
|
Cash network fees
|
|
|
|
126
|
|
|
131
|
|
|
|
(4
|
)
|
Commercial real estate brokerage commissions
|
|
|
|
81
|
|
|
117
|
|
|
|
(31
|
)
|
Letters of credit fees
|
|
|
|
74
|
|
|
78
|
|
|
|
(5
|
)
|
Wire transfer and other remittance fees
|
|
|
|
107
|
|
|
92
|
|
|
|
16
|
|
All other fees
|
|
|
|
170
|
|
|
202
|
|
|
|
(16
|
)
|
Total other fees
|
|
|
|
865
|
|
|
933
|
|
|
|
(7
|
)
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
456
|
|
|
850
|
|
|
|
(46
|
)
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
772
|
|
|
748
|
|
|
|
3
|
|
Total mortgage banking
|
|
|
|
1,228
|
|
|
1,598
|
|
|
|
(23
|
)
|
Insurance
|
|
|
|
277
|
|
|
427
|
|
|
|
(35
|
)
|
Net gains from trading activities
|
|
|
|
439
|
|
|
200
|
|
|
|
120
|
|
Net gains on debt securities
|
|
|
|
36
|
|
|
244
|
|
|
|
(85
|
)
|
Net gains from equity investments
|
|
|
|
403
|
|
|
244
|
|
|
|
65
|
|
Lease income
|
|
|
|
481
|
|
|
373
|
|
|
|
29
|
|
Life insurance investment income
|
|
|
|
144
|
|
|
154
|
|
|
|
(6
|
)
|
All other
|
|
|
|
1
|
|
|
720
|
|
|
|
(100
|
)
|
Total
|
|
|
$
|
9,702
|
|
|
10,528
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
Quarter ended Mar 31,
|
|
|
|
%
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
|
Change
|
Salaries
|
|
|
$
|
4,261
|
|
|
4,036
|
|
|
|
6
|
%
|
Commission and incentive compensation
|
|
|
|
2,725
|
|
|
2,645
|
|
|
|
3
|
|
Employee benefits
|
|
|
|
1,686
|
|
|
1,526
|
|
|
|
10
|
|
Equipment
|
|
|
|
577
|
|
|
528
|
|
|
|
9
|
|
Net occupancy
|
|
|
|
712
|
|
|
711
|
|
|
|
—
|
|
Core deposit and other intangibles
|
|
|
|
289
|
|
|
293
|
|
|
|
(1
|
)
|
FDIC and other deposit assessments
|
|
|
|
333
|
|
|
250
|
|
|
|
33
|
|
Outside professional services
|
|
|
|
804
|
|
|
583
|
|
|
|
38
|
|
Operating losses
|
|
|
|
282
|
|
|
454
|
|
|
|
(38
|
)
|
Operating leases
|
|
|
|
345
|
|
|
235
|
|
|
|
47
|
|
Contract services
|
|
|
|
325
|
|
|
282
|
|
|
|
15
|
|
Outside data processing
|
|
|
|
220
|
|
|
208
|
|
|
|
6
|
|
Travel and entertainment
|
|
|
|
179
|
|
|
172
|
|
|
|
4
|
|
Postage, stationery and supplies
|
|
|
|
145
|
|
|
163
|
|
|
|
(11
|
)
|
Advertising and promotion
|
|
|
|
127
|
|
|
134
|
|
|
|
(5
|
)
|
Telecommunications
|
|
|
|
91
|
|
|
92
|
|
|
|
(1
|
)
|
Foreclosed assets
|
|
|
|
86
|
|
|
78
|
|
|
|
10
|
|
Insurance
|
|
|
|
24
|
|
|
111
|
|
|
|
(78
|
)
|
All other
|
|
|
|
581
|
|
|
527
|
|
|
|
10
|
|
Total
|
|
|
$
|
13,792
|
|
|
13,028
|
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Service charges on deposit accounts
|
|
|
$
|
1,313
|
|
|
1,357
|
|
|
|
1,370
|
|
|
1,336
|
|
|
1,309
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,324
|
|
|
2,342
|
|
|
|
2,344
|
|
|
2,291
|
|
|
2,239
|
Trust and investment management
|
|
|
|
829
|
|
|
837
|
|
|
|
849
|
|
|
835
|
|
|
815
|
Investment banking
|
|
|
|
417
|
|
|
519
|
|
|
|
420
|
|
|
421
|
|
|
331
|
Total trust and investment fees
|
|
|
|
3,570
|
|
|
3,698
|
|
|
|
3,613
|
|
|
3,547
|
|
|
3,385
|
Card fees
|
|
|
|
945
|
|
|
1,001
|
|
|
|
997
|
|
|
997
|
|
|
941
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
307
|
|
|
305
|
|
|
|
306
|
|
|
317
|
|
|
313
|
Cash network fees
|
|
|
|
126
|
|
|
130
|
|
|
|
138
|
|
|
138
|
|
|
131
|
Commercial real estate brokerage commissions
|
|
|
|
81
|
|
|
172
|
|
|
|
119
|
|
|
86
|
|
|
117
|
Letters of credit fees
|
|
|
|
74
|
|
|
79
|
|
|
|
81
|
|
|
83
|
|
|
78
|
Wire transfer and other remittance fees
|
|
|
|
107
|
|
|
105
|
|
|
|
103
|
|
|
101
|
|
|
92
|
All other fees
|
|
|
|
170
|
|
|
171
|
|
|
|
179
|
|
|
181
|
|
|
202
|
Total other fees
|
|
|
|
865
|
|
|
962
|
|
|
|
926
|
|
|
906
|
|
|
933
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
456
|
|
|
196
|
|
|
|
359
|
|
|
360
|
|
|
850
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
772
|
|
|
1,221
|
|
|
|
1,308
|
|
|
1,054
|
|
|
748
|
Total mortgage banking
|
|
|
|
1,228
|
|
|
1,417
|
|
|
|
1,667
|
|
|
1,414
|
|
|
1,598
|
Insurance
|
|
|
|
277
|
|
|
262
|
|
|
|
293
|
|
|
286
|
|
|
427
|
Net gains (losses) from trading activities
|
|
|
|
439
|
|
|
(109
|
)
|
|
|
415
|
|
|
328
|
|
|
200
|
Net gains on debt securities
|
|
|
|
36
|
|
|
145
|
|
|
|
106
|
|
|
447
|
|
|
244
|
Net gains from equity investments
|
|
|
|
403
|
|
|
306
|
|
|
|
140
|
|
|
189
|
|
|
244
|
Lease income
|
|
|
|
481
|
|
|
523
|
|
|
|
534
|
|
|
497
|
|
|
373
|
Life insurance investment income
|
|
|
|
144
|
|
|
132
|
|
|
|
152
|
|
|
149
|
|
|
154
|
All other
|
|
|
|
1
|
|
|
(514
|
)
|
|
|
163
|
|
|
333
|
|
|
720
|
Total
|
|
|
$
|
9,702
|
|
|
9,180
|
|
|
|
10,376
|
|
|
10,429
|
|
|
10,528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
Quarter ended
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Salaries
|
|
|
$
|
4,261
|
|
|
4,193
|
|
|
4,224
|
|
|
4,099
|
|
|
4,036
|
Commission and incentive compensation
|
|
|
|
2,725
|
|
|
2,478
|
|
|
2,520
|
|
|
2,604
|
|
|
2,645
|
Employee benefits
|
|
|
|
1,686
|
|
|
1,101
|
|
|
1,223
|
|
|
1,244
|
|
|
1,526
|
Equipment
|
|
|
|
577
|
|
|
642
|
|
|
491
|
|
|
493
|
|
|
528
|
Net occupancy
|
|
|
|
712
|
|
|
710
|
|
|
718
|
|
|
716
|
|
|
711
|
Core deposit and other intangibles
|
|
|
|
289
|
|
|
301
|
|
|
299
|
|
|
299
|
|
|
293
|
FDIC and other deposit assessments
|
|
|
|
333
|
|
|
353
|
|
|
310
|
|
|
255
|
|
|
250
|
Outside professional services
|
|
|
|
804
|
|
|
984
|
|
|
802
|
|
|
769
|
|
|
583
|
Operating losses
|
|
|
|
282
|
|
|
243
|
|
|
577
|
|
|
334
|
|
|
454
|
Operating leases
|
|
|
|
345
|
|
|
379
|
|
|
363
|
|
|
352
|
|
|
235
|
Contract services
|
|
|
|
325
|
|
|
325
|
|
|
313
|
|
|
283
|
|
|
282
|
Outside data processing
|
|
|
|
220
|
|
|
222
|
|
|
233
|
|
|
225
|
|
|
208
|
Travel and entertainment
|
|
|
|
179
|
|
|
195
|
|
|
144
|
|
|
193
|
|
|
172
|
Postage, stationery and supplies
|
|
|
|
145
|
|
|
156
|
|
|
150
|
|
|
153
|
|
|
163
|
Advertising and promotion
|
|
|
|
127
|
|
|
178
|
|
|
117
|
|
|
166
|
|
|
134
|
Telecommunications
|
|
|
|
91
|
|
|
96
|
|
|
101
|
|
|
94
|
|
|
92
|
Foreclosed assets
|
|
|
|
86
|
|
|
75
|
|
|
(17
|
)
|
|
66
|
|
|
78
|
Insurance
|
|
|
|
24
|
|
|
23
|
|
|
23
|
|
|
22
|
|
|
111
|
All other
|
|
|
|
581
|
|
|
561
|
|
|
677
|
|
|
499
|
|
|
527
|
Total
|
|
|
$
|
13,792
|
|
|
13,215
|
|
|
13,268
|
|
|
12,866
|
|
|
13,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
%
|
(in millions, except shares)
|
|
|
2017
|
|
|
|
2016
|
|
|
|
Change
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,698
|
|
|
|
20,729
|
|
|
|
(5
|
)%
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
308,747
|
|
|
|
266,038
|
|
|
|
16
|
|
Trading assets
|
|
|
|
80,326
|
|
|
|
74,397
|
|
|
|
8
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
299,530
|
|
|
|
308,364
|
|
|
|
(3
|
)
|
Held-to-maturity, at cost
|
|
|
|
108,030
|
|
|
|
99,583
|
|
|
|
8
|
|
Mortgages held for sale
|
|
|
|
17,822
|
|
|
|
26,309
|
|
|
|
(32
|
)
|
Loans held for sale
|
|
|
|
253
|
|
|
|
80
|
|
|
|
216
|
|
Loans
|
|
|
|
958,405
|
|
|
|
967,604
|
|
|
|
(1
|
)
|
Allowance for loan losses
|
|
|
|
(11,168
|
)
|
|
|
(11,419
|
)
|
|
|
(2
|
)
|
Net loans
|
|
|
|
947,237
|
|
|
|
956,185
|
|
|
|
(1
|
)
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
|
2
|
|
Amortized
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
|
—
|
|
Premises and equipment, net
|
|
|
|
8,320
|
|
|
|
8,333
|
|
|
|
—
|
|
Goodwill
|
|
|
|
26,666
|
|
|
|
26,693
|
|
|
|
—
|
|
Derivative assets
|
|
|
|
12,564
|
|
|
|
14,498
|
|
|
|
(13
|
)
|
Other assets
|
|
|
|
107,761
|
|
|
|
114,541
|
|
|
|
(6
|
)
|
Total assets
|
|
|
$
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
365,780
|
|
|
|
375,967
|
|
|
|
(3
|
)
|
Interest-bearing deposits
|
|
|
|
959,664
|
|
|
|
930,112
|
|
|
|
3
|
|
Total deposits
|
|
|
|
1,325,444
|
|
|
|
1,306,079
|
|
|
|
1
|
|
Short-term borrowings
|
|
|
|
94,871
|
|
|
|
96,781
|
|
|
|
(2
|
)
|
Derivative liabilities
|
|
|
|
12,461
|
|
|
|
14,492
|
|
|
|
(14
|
)
|
Accrued expenses and other liabilities
|
|
|
|
59,831
|
|
|
|
57,189
|
|
|
|
5
|
|
Long-term debt
|
|
|
|
256,468
|
|
|
|
255,077
|
|
|
|
1
|
|
Total liabilities
|
|
|
|
1,749,075
|
|
|
|
1,729,618
|
|
|
|
1
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
25,501
|
|
|
|
24,551
|
|
|
|
4
|
|
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
|
|
|
|
60,585
|
|
|
|
60,234
|
|
|
|
1
|
|
Retained earnings
|
|
|
|
136,032
|
|
|
|
133,075
|
|
|
|
2
|
|
Cumulative other comprehensive income (loss)
|
|
|
|
(3,178
|
)
|
|
|
(3,137
|
)
|
|
|
1
|
|
Treasury stock – 485,076,875 shares and 465,702,148 shares
|
|
|
|
(24,030
|
)
|
|
|
(22,713
|
)
|
|
|
6
|
|
Unearned ESOP shares
|
|
|
|
(2,546
|
)
|
|
|
(1,565
|
)
|
|
|
63
|
|
Total Wells Fargo stockholders’ equity
|
|
|
|
201,500
|
|
|
|
199,581
|
|
|
|
1
|
|
Noncontrolling interests
|
|
|
|
989
|
|
|
|
916
|
|
|
|
8
|
|
Total equity
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
1
|
|
Total liabilities and equity
|
|
|
$
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,698
|
|
|
|
20,729
|
|
|
|
19,287
|
|
|
|
20,407
|
|
|
|
19,084
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
|
308,747
|
|
|
|
266,038
|
|
|
|
298,325
|
|
|
|
295,521
|
|
|
|
300,547
|
|
Trading assets
|
|
|
|
80,326
|
|
|
|
74,397
|
|
|
|
81,094
|
|
|
|
71,556
|
|
|
|
62,657
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
|
299,530
|
|
|
|
308,364
|
|
|
|
291,591
|
|
|
|
253,006
|
|
|
|
255,551
|
|
Held-to-maturity, at cost
|
|
|
|
108,030
|
|
|
|
99,583
|
|
|
|
99,241
|
|
|
|
100,420
|
|
|
|
79,348
|
|
Mortgages held for sale
|
|
|
|
17,822
|
|
|
|
26,309
|
|
|
|
27,423
|
|
|
|
23,930
|
|
|
|
18,041
|
|
Loans held for sale
|
|
|
|
253
|
|
|
|
80
|
|
|
|
183
|
|
|
|
220
|
|
|
|
280
|
|
Loans
|
|
|
|
958,405
|
|
|
|
967,604
|
|
|
|
961,326
|
|
|
|
957,157
|
|
|
|
947,258
|
|
Allowance for loan losses
|
|
|
|
(11,168
|
)
|
|
|
(11,419
|
)
|
|
|
(11,583
|
)
|
|
|
(11,664
|
)
|
|
|
(11,621
|
)
|
Net loans
|
|
|
|
947,237
|
|
|
|
956,185
|
|
|
|
949,743
|
|
|
|
945,493
|
|
|
|
935,637
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
|
10,415
|
|
|
|
10,396
|
|
|
|
11,333
|
|
Amortized
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
|
1,373
|
|
|
|
1,353
|
|
|
|
1,359
|
|
Premises and equipment, net
|
|
|
|
8,320
|
|
|
|
8,333
|
|
|
|
8,322
|
|
|
|
8,289
|
|
|
|
8,349
|
|
Goodwill
|
|
|
|
26,666
|
|
|
|
26,693
|
|
|
|
26,688
|
|
|
|
26,963
|
|
|
|
27,003
|
|
Derivative assets
|
|
|
|
12,564
|
|
|
|
14,498
|
|
|
|
18,736
|
|
|
|
20,999
|
|
|
|
20,043
|
|
Other assets
|
|
|
|
107,761
|
|
|
|
114,541
|
|
|
|
109,703
|
|
|
|
110,682
|
|
|
|
109,950
|
|
Total assets
|
|
|
$
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1,942,124
|
|
|
|
1,889,235
|
|
|
|
1,849,182
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
365,780
|
|
|
|
375,967
|
|
|
|
376,136
|
|
|
|
361,934
|
|
|
|
348,888
|
|
Interest-bearing deposits
|
|
|
|
959,664
|
|
|
|
930,112
|
|
|
|
899,758
|
|
|
|
883,539
|
|
|
|
892,602
|
|
Total deposits
|
|
|
|
1,325,444
|
|
|
|
1,306,079
|
|
|
|
1,275,894
|
|
|
|
1,245,473
|
|
|
|
1,241,490
|
|
Short-term borrowings
|
|
|
|
94,871
|
|
|
|
96,781
|
|
|
|
124,668
|
|
|
|
120,258
|
|
|
|
107,703
|
|
Derivative liabilities
|
|
|
|
12,461
|
|
|
|
14,492
|
|
|
|
13,603
|
|
|
|
15,483
|
|
|
|
15,184
|
|
Accrued expenses and other liabilities
|
|
|
|
59,831
|
|
|
|
57,189
|
|
|
|
69,166
|
|
|
|
61,433
|
|
|
|
58,413
|
|
Long-term debt
|
|
|
|
256,468
|
|
|
|
255,077
|
|
|
|
254,835
|
|
|
|
243,927
|
|
|
|
227,888
|
|
Total liabilities
|
|
|
|
1,749,075
|
|
|
|
1,729,618
|
|
|
|
1,738,166
|
|
|
|
1,686,574
|
|
|
|
1,650,678
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
25,501
|
|
|
|
24,551
|
|
|
|
24,594
|
|
|
|
24,830
|
|
|
|
24,051
|
|
Common stock
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
Additional paid-in capital
|
|
|
|
60,585
|
|
|
|
60,234
|
|
|
|
60,685
|
|
|
|
60,691
|
|
|
|
60,602
|
|
Retained earnings
|
|
|
|
136,032
|
|
|
|
133,075
|
|
|
|
130,288
|
|
|
|
127,076
|
|
|
|
123,891
|
|
Cumulative other comprehensive income (loss)
|
|
|
|
(3,178
|
)
|
|
|
(3,137
|
)
|
|
|
2,184
|
|
|
|
2,948
|
|
|
|
1,774
|
|
Treasury stock
|
|
|
|
(24,030
|
)
|
|
|
(22,713
|
)
|
|
|
(22,247
|
)
|
|
|
(21,068
|
)
|
|
|
(19,687
|
)
|
Unearned ESOP shares
|
|
|
|
(2,546
|
)
|
|
|
(1,565
|
)
|
|
|
(1,612
|
)
|
|
|
(1,868
|
)
|
|
|
(2,271
|
)
|
Total Wells Fargo stockholders’ equity
|
|
|
|
201,500
|
|
|
|
199,581
|
|
|
|
203,028
|
|
|
|
201,745
|
|
|
|
197,496
|
|
Noncontrolling interests
|
|
|
|
989
|
|
|
|
916
|
|
|
|
930
|
|
|
|
916
|
|
|
|
1,008
|
|
Total equity
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
|
|
202,661
|
|
|
|
198,504
|
|
Total liabilities and equity
|
|
|
$
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1,942,124
|
|
|
|
1,889,235
|
|
|
|
1,849,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(in millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
$
|
24,625
|
|
25,819
|
|
26,376
|
|
27,939
|
|
33,813
|
Securities of U.S. states and political subdivisions
|
|
|
52,061
|
|
51,101
|
|
55,366
|
|
54,024
|
|
51,574
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
156,966
|
|
161,230
|
|
135,692
|
|
95,868
|
|
95,463
|
Residential and commercial
|
|
|
14,233
|
|
16,318
|
|
18,387
|
|
19,938
|
|
21,246
|
Total mortgage-backed securities
|
|
|
171,199
|
|
177,548
|
|
154,079
|
|
115,806
|
|
116,709
|
Other debt securities
|
|
|
50,520
|
|
52,685
|
|
54,537
|
|
53,935
|
|
51,956
|
Total available-for-sale debt securities
|
|
|
298,405
|
|
307,153
|
|
290,358
|
|
251,704
|
|
254,052
|
Marketable equity securities
|
|
|
1,125
|
|
1,211
|
|
1,233
|
|
1,302
|
|
1,499
|
Total available-for-sale securities
|
|
|
299,530
|
|
308,364
|
|
291,591
|
|
253,006
|
|
255,551
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,697
|
|
44,690
|
|
44,682
|
|
44,675
|
|
44,667
|
Securities of U.S. states and political subdivisions
|
|
|
6,331
|
|
6,336
|
|
2,994
|
|
2,181
|
|
2,183
|
Federal agency and other mortgage-backed securities (1)
|
|
|
53,778
|
|
45,161
|
|
47,721
|
|
49,594
|
|
28,016
|
Other debt securities
|
|
|
3,224
|
|
3,396
|
|
3,844
|
|
3,970
|
|
4,482
|
Total held-to-maturity debt securities
|
|
|
108,030
|
|
99,583
|
|
99,241
|
|
100,420
|
|
79,348
|
Total investment securities
|
|
$
|
407,560
|
|
407,947
|
|
390,832
|
|
353,426
|
|
334,899
|
(1) Predominantly consists of federal agency mortgage-backed
securities.
|
|
FIVE QUARTER LOANS
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(in millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
329,252
|
|
330,840
|
|
324,020
|
|
323,858
|
|
321,547
|
Real estate mortgage
|
|
|
131,532
|
|
132,491
|
|
130,223
|
|
128,320
|
|
124,711
|
Real estate construction
|
|
|
25,064
|
|
23,916
|
|
23,340
|
|
23,387
|
|
22,944
|
Lease financing
|
|
|
19,156
|
|
19,289
|
|
18,871
|
|
18,973
|
|
19,003
|
Total commercial
|
|
|
505,004
|
|
506,536
|
|
496,454
|
|
494,538
|
|
488,205
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
274,633
|
|
275,579
|
|
278,689
|
|
277,162
|
|
274,734
|
Real estate 1-4 family junior lien mortgage
|
|
|
44,333
|
|
46,237
|
|
48,105
|
|
49,772
|
|
51,324
|
Credit card
|
|
|
34,742
|
|
36,700
|
|
34,992
|
|
34,137
|
|
33,139
|
Automobile
|
|
|
60,408
|
|
62,286
|
|
62,873
|
|
61,939
|
|
60,658
|
Other revolving credit and installment
|
|
|
39,285
|
|
40,266
|
|
40,213
|
|
39,609
|
|
39,198
|
Total consumer
|
|
|
453,401
|
|
461,068
|
|
464,872
|
|
462,619
|
|
459,053
|
Total loans (1)
|
|
$
|
958,405
|
|
967,604
|
|
961,326
|
|
957,157
|
|
947,258
|
(1) Includes $15.7 billion, $16.7 billion, $17.7 billion, $19.3
billion, and $20.3 billion of purchased credit-impaired (PCI)
loans at March 31, 2017, and December 31, September 30, June 30,
and March 31, 2016, respectively.
|
|
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign
loan portfolio is commercial loans. Loans are classified as
foreign primarily based on whether the borrower's primary address
is outside of the United States. The following table presents
total commercial foreign loans outstanding by class of financing
receivable.
|
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(in millions)
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
56,987
|
|
55,396
|
|
51,515
|
|
50,515
|
|
51,884
|
Real estate mortgage
|
|
|
8,206
|
|
8,541
|
|
8,466
|
|
8,467
|
|
8,367
|
Real estate construction
|
|
|
471
|
|
375
|
|
310
|
|
246
|
|
311
|
Lease financing
|
|
|
986
|
|
972
|
|
958
|
|
987
|
|
983
|
Total commercial foreign loans
|
|
$
|
66,650
|
|
65,284
|
|
61,249
|
|
60,215
|
|
61,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions)
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
2,898
|
|
|
3,216
|
|
|
3,331
|
|
|
3,464
|
|
|
2,911
|
Real estate mortgage
|
|
672
|
|
|
685
|
|
|
780
|
|
|
872
|
|
|
896
|
Real estate construction
|
|
40
|
|
|
43
|
|
|
59
|
|
|
59
|
|
|
63
|
Lease financing
|
|
96
|
|
|
115
|
|
|
92
|
|
|
112
|
|
|
99
|
Total commercial
|
|
3,706
|
|
|
4,059
|
|
|
4,262
|
|
|
4,507
|
|
|
3,969
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
4,743
|
|
|
4,962
|
|
|
5,310
|
|
|
5,970
|
|
|
6,683
|
Real estate 1-4 family junior lien mortgage
|
|
1,153
|
|
|
1,206
|
|
|
1,259
|
|
|
1,330
|
|
|
1,421
|
Automobile
|
|
101
|
|
|
106
|
|
|
108
|
|
|
111
|
|
|
114
|
Other revolving credit and installment
|
|
56
|
|
|
51
|
|
|
47
|
|
|
45
|
|
|
47
|
Total consumer
|
|
6,053
|
|
|
6,325
|
|
|
6,724
|
|
|
7,456
|
|
|
8,265
|
Total nonaccrual loans (1)(2)(3)
|
|
$
|
9,759
|
|
|
10,384
|
|
|
10,986
|
|
|
11,963
|
|
|
12,234
|
As a percentage of total loans
|
|
1.02
|
%
|
|
1.07
|
|
|
1.14
|
|
|
1.25
|
|
|
1.29
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
$
|
179
|
|
|
197
|
|
|
282
|
|
|
321
|
|
|
386
|
Non-government insured/guaranteed
|
|
726
|
|
|
781
|
|
|
738
|
|
|
796
|
|
|
893
|
Total foreclosed assets
|
|
905
|
|
|
978
|
|
|
1,020
|
|
|
1,117
|
|
|
1,279
|
Total nonperforming assets
|
|
$
|
10,664
|
|
|
11,362
|
|
|
12,006
|
|
|
13,080
|
|
|
13,513
|
As a percentage of total loans
|
|
1.11
|
%
|
|
1.17
|
|
|
1.25
|
|
|
1.37
|
|
|
1.43
|
(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 largely
guaranteed by agencies on behalf of the U.S. Department of
Education under the Federal Family Education Loan Program are not
placed on nonaccrual status because they are insured or guaranteed.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
(in millions)
|
|
2017
|
|
|
2016
|
|