Diluted EPS of $1.03, Revenue of $21.3 Billion
Wells Fargo & Company (NYSE:WFC):
-
Continued strong financial results:
-
Net income of $5.7 billion, in line with second quarter 2014
-
Diluted earnings per share (EPS) of $1.03, compared with $1.01
-
Revenue of $21.3 billion, up 1 percent
-
Return on assets (ROA) of 1.33 percent and return on equity (ROE)
of 12.71 percent
-
Strong growth in average loans and deposits:
-
Total average loans of $870.4 billion, up $39.4 billion, or 5
percent, from second quarter 2014
-
Quarter-end loans of $888.5 billion, up $59.5 billion, or 7
percent
-
Quarter-end core loans1 of $832.1 billion, up
$68.5 billion, or 9 percent
-
Included $11.5 billion from GE Capital loan purchase and
financing transaction
-
Total average deposits of $1.2 trillion, up $83.8 billion, or 8
percent
-
Continued strength in credit quality:
-
Net charge-offs of $650 million, down $67 million from second
quarter 2014
-
Net charge-off rate of 0.30 percent (annualized), down from
0.35 percent
-
Nonaccrual loans down $1.5 billion, or 11 percent
-
$350 million reserve release2
-
Maintained strong capital levels3 and continued share
repurchases:
-
Common Equity Tier 1 ratio under Basel III (fully phased-in) of
10.5 percent
-
Period-end common shares outstanding down 17.7 million from first
quarter 2015
-
Increased quarterly common stock dividend to $0.375 per share from
$0.35
Endnotes can be found at end of release text
|
Selected Financial Information
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Earnings
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
1.03
|
|
|
1.04
|
|
|
1.01
|
|
Wells Fargo net income (in billions)
|
|
5.72
|
|
|
5.80
|
|
|
5.73
|
|
Return on assets (ROA)
|
|
1.33
|
%
|
|
1.38
|
|
|
1.47
|
|
Return on equity (ROE)
|
|
12.71
|
|
|
13.17
|
|
|
13.40
|
|
Asset Quality
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of avg. total loans
|
|
0.30
|
%
|
|
0.33
|
|
|
0.35
|
|
Allowance for credit losses as a % of total loans
|
|
1.42
|
|
|
1.51
|
|
|
1.67
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
484
|
|
|
453
|
|
|
481
|
|
Other
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
$
|
21.3
|
|
|
21.3
|
|
|
21.1
|
|
Efficiency ratio
|
|
58.5
|
%
|
|
58.8
|
|
|
57.9
|
|
Average loans (in billions)
|
|
$
|
870.4
|
|
|
863.3
|
|
|
831.0
|
|
Average core deposits (in billions)
|
|
1,079.2
|
|
|
1,063.2
|
|
|
991.7
|
|
Net interest margin
|
|
2.97
|
%
|
|
2.95
|
|
|
3.15
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.7 billion, or
$1.03 per diluted common share, for second quarter 2015, compared with
$5.7 billion, or $1.01 per share, for second quarter 2014, and
$5.8 billion, or $1.04 per share, for first quarter 2015.
“Wells Fargo’s second quarter results reflected continued strength in
the fundamental drivers of long term growth,” said Chairman and CEO John
Stumpf. “Compared with a year ago, we grew loans, deposits and capital,
and our balance sheet remained strong. Credit results also improved and
we continued to adhere to our disciplined approach to risk management.
As the economic and interest rate environments evolved, our diversified
business model continued to generate strong results for shareholders,
and we were pleased to increase our common stock dividend 7 percent in
the second quarter, to $0.375 per share. Wells Fargo is well positioned
for the future and I remain confident in the ability of our 266,000 team
members to help our customers succeed financially and to serve our
communities.”
Chief Financial Officer John Shrewsberry said, “Wells Fargo’s second
quarter results once again reflected the benefit of our balanced
business model. Compared with the first quarter, revenue increased on
net interest income growth and expenses declined. Our balance sheet
remained strong, as evidenced by solid asset quality, liquidity and
capital, and we were within our targeted ranges for ROA, ROE and
efficiency.”
Net Interest Income
Net interest income increased $284 million from first quarter 2015 to
$11.3 billion, primarily due to broad-based asset growth including
investment securities, loans, trading assets and mortgages
held-for-sale. The quarter also included one additional day, accounting
for approximately 25 percent of the increase in net interest income
relative to the first quarter. Net interest income also benefited from
increased income from variable sources, lower deposit costs, and higher
income from interest rate swaps used to convert a portion of our
floating rate commercial loans to fixed rate as we continued to add
duration to our balance sheet.
Net interest margin was 2.97 percent, up 2 basis points from first
quarter 2015. Many of the same factors that improved net interest income
this quarter, including growth in investments and loans, and lower
deposit costs, combined to improve the net interest margin by
approximately 4 basis points linked-quarter, and income from variable
sources contributed 1 basis point. These benefits were partially offset
by growth in customer deposits, which had a minimal impact to net
interest income, but was dilutive to net interest margin by 3 basis
points.
Noninterest Income
Noninterest income was $10.0 billion, compared with $10.3 billion in
first quarter 2015, driven by higher mortgage banking revenue, equity
investment gains, deposit service charges, card fees, trust and
investment fees, and insurance fees. Offsetting this growth were lower
gains from trading activities and debt securities, and lower other
income, primarily due to variability from the accounting related to our
debt hedges.
Mortgage banking noninterest income was $1.7 billion, up $158 million
from first quarter. During the second quarter, residential mortgage
originations were $62 billion, up $13 billion linked quarter, while the
gain on sale ratio4 was 1.88 percent, compared with 2.06
percent in first quarter. Net mortgage servicing rights (MSRs) results
were $107 million, compared with $108 million in first quarter 2015.
Noninterest Expense
Noninterest expense declined $38 million from the prior quarter to $12.5
billion, primarily due to lower employee benefits, which were seasonally
elevated in first quarter 2015. This decline was partially offset by
higher operating losses, reflecting higher litigation accruals for
various legal matters, as well as higher salaries, outside professional
services, and advertising and promotion expense. The efficiency ratio
improved to 58.5 percent in second quarter 2015, compared with
58.8 percent in the prior quarter. The Company expects to operate within
its targeted efficiency ratio range of 55 to 59 percent for full year
2015.
Loans
Total loans were $888.5 billion at June 30, 2015, up $27.2 billion from
March 31, 2015. Growth was broad-based and was led by commercial and
industrial, and commercial real estate, which included $11.5 billion
from the GE Capital loan purchase and financing transaction announced in
the first quarter. Core loan growth was $29.4 billion, as
non-strategic/liquidating portfolios declined $2.2 billion in the
quarter. Total average loans were $870.4 billion in the second quarter,
up $7.2 billion from the first quarter.
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
March 31, 2015
|
|
|
|
|
|
|
|
(in millions)
|
|
Core
|
|
Non-strategic
and liquidating (a)
|
|
Total
|
|
Core
|
|
Non-strategic
and liquidating
|
|
Total
|
|
Commercial
|
|
$
|
437,430
|
|
|
592
|
|
|
438,022
|
|
|
414,600
|
|
|
699
|
|
|
415,299
|
|
|
Consumer
|
|
394,670
|
|
|
55,767
|
|
|
450,437
|
|
|
388,077
|
|
|
57,855
|
|
|
445,932
|
|
|
Total loans
|
|
$
|
832,100
|
|
|
56,359
|
|
|
888,459
|
|
|
802,677
|
|
|
58,554
|
|
|
861,231
|
|
|
Change from prior quarter:
|
|
$
|
29,423
|
|
|
(2,195
|
)
|
|
27,228
|
|
|
914
|
|
|
(2,234
|
)
|
|
(1,320
|
)
|
|
|
|
(a) See Non-Strategic and Liquidating Loan Portfolios table for
additional information on non-strategic/liquidating loan
portfolios. Management believes that the above information
provides useful disclosure regarding the Company’s ongoing loan
portfolios.
|
|
|
Investment Securities
Investment securities were $340.8 billion at June 30, 2015, up $16.0
billion from first quarter. Purchases of approximately $36 billion
(primarily federal agency mortgage-backed securities, U.S. Treasury, and
municipal securities), were partially offset by maturities, amortization
and sales.
Net unrealized available-for-sale securities gains of $5.7 billion at
June 30, 2015, decreased from $7.9 billion at March 31, 2015, primarily
due to higher interest rates.
Deposits
Average total deposits for second quarter 2015 were $1.2 trillion, up 4
percent (annualized) from first quarter, driven by both commercial and
consumer growth. The average deposit cost for second quarter 2015 was 8
basis points, a reduction of 1 basis point from the prior quarter.
Average core deposits were $1.1 trillion, up 9 percent from a year ago.
Capital
Capital levels remained strong in the second quarter, with Common Equity
Tier 1 under Basel III (fully phased-in) of $139.9 billion. The Common
Equity Tier 1 ratio under Basel III (fully phased-in) was 10.5 percent3.
In second quarter 2015, the Company purchased 36.3 million shares of its
common stock and paid a quarterly common stock dividend of $0.375 per
share, up from $0.35 per share a year ago.
Credit Quality
“Credit performance remained strong during the quarter,” said Chief Risk
Officer Mike Loughlin. “Credit losses were $650 million in second
quarter 2015, compared with $708 million in the first quarter, an
8 percent improvement. The quarterly loss rate (annualized) was
0.30 percent with commercial losses of 0.06 percent and consumer losses
of 0.53 percent. Nonperforming assets declined by $438 million, or 12
percent (annualized), from the prior quarter. Nonaccrual loans decreased
$67 million as deterioration in the energy portfolio was offset by
improvements across other portfolios. We released $350 million from the
allowance for credit losses in the second quarter, reflecting continued
credit quality improvement and more specifically, improvement in the
residential real estate portfolio. Future allowance levels may increase
or decrease based on a variety of factors, including loan growth,
portfolio performance and general economic conditions.”
Net Loan Charge-offs
Net loan charge-offs were $650 million in second quarter 2015, or 0.30
percent (annualized) of average loans, compared with $708 million in
first quarter 2015, or 0.33 percent (annualized) of average loans.
|
Net Loan Charge-Offs
|
|
|
|
Quarter ended
|
|
|
|
June 30, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
|
($ in millions)
|
|
Net loan
charge-
offs
|
|
As a % of
average
loans (a)
|
|
Net loan
charge-
offs
|
|
As a % of
average
loans (a)
|
|
Net loan
charge-
offs
|
|
As a % of
average
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
81
|
|
|
0.12
|
%
|
|
$
|
64
|
|
|
0.10
|
%
|
|
$
|
82
|
|
|
0.12
|
%
|
|
Real estate mortgage
|
|
(15
|
)
|
|
(0.05
|
)
|
|
(11
|
)
|
|
(0.04
|
)
|
|
(25
|
)
|
|
(0.09
|
)
|
|
Real estate construction
|
|
(6
|
)
|
|
(0.11
|
)
|
|
(9
|
)
|
|
(0.19
|
)
|
|
(26
|
)
|
|
(0.56
|
)
|
|
Lease financing
|
|
2
|
|
|
0.06
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
0.05
|
|
|
Total commercial
|
|
62
|
|
|
0.06
|
|
|
44
|
|
|
0.04
|
|
|
32
|
|
|
0.03
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
67
|
|
|
0.10
|
|
|
83
|
|
|
0.13
|
|
|
88
|
|
|
0.13
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
94
|
|
|
0.66
|
|
|
123
|
|
|
0.85
|
|
|
134
|
|
|
0.88
|
|
|
Credit card
|
|
243
|
|
|
3.21
|
|
|
239
|
|
|
3.19
|
|
|
221
|
|
|
2.97
|
|
|
Automobile
|
|
68
|
|
|
0.48
|
|
|
101
|
|
|
0.73
|
|
|
132
|
|
|
0.94
|
|
|
Other revolving credit and installment
|
|
116
|
|
|
1.26
|
|
|
118
|
|
|
1.32
|
|
|
128
|
|
|
1.45
|
|
|
Total consumer
|
|
588
|
|
|
0.53
|
|
|
664
|
|
|
0.60
|
|
|
703
|
|
|
0.63
|
|
|
Total
|
|
$
|
650
|
|
|
0.30
|
%
|
|
$
|
708
|
|
|
0.33
|
%
|
|
$
|
735
|
|
|
0.34
|
%
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans
are annualized. See Purchased Credit-Impaired Loans table for
explanation of the accounting for purchased credit-impaired (PCI)
loans and the impact on selected financial ratios.
|
|
|
Nonperforming Assets
Nonperforming assets declined by $438 million from first quarter 2015 to
$14.4 billion. Nonaccrual loans decreased $67 million to $12.4 billion
as a $388 million decline in consumer real estate nonaccrual loans, as
well as improvements in other categories, were partially offset by a
$416 million increase in commercial and industrial nonaccrual loans,
substantially all of which was from the energy portfolio. Foreclosed
assets were $2.0 billion, down from $2.3 billion in first quarter 2015.
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
June 30, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
|
($ in millions)
|
|
Total
balances
|
|
As a
% of
total
loans
|
|
Total balances
|
|
As a
% of
total
loans
|
|
Total
balances
|
|
As a
% of
total
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
1,079
|
|
|
0.38
|
%
|
|
$
|
663
|
|
|
0.24
|
%
|
|
$
|
538
|
|
|
0.20
|
%
|
|
Real estate mortgage
|
|
1,250
|
|
|
1.04
|
|
|
1,324
|
|
|
1.18
|
|
|
1,490
|
|
|
1.33
|
|
|
Real estate construction
|
|
165
|
|
|
0.77
|
|
|
182
|
|
|
0.91
|
|
|
187
|
|
|
1.00
|
|
|
Lease financing
|
|
28
|
|
|
0.23
|
|
|
23
|
|
|
0.19
|
|
|
24
|
|
|
0.20
|
|
|
Total commercial
|
|
2,522
|
|
|
0.58
|
|
|
2,192
|
|
|
0.53
|
|
|
2,239
|
|
|
0.54
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
8,045
|
|
|
3.00
|
|
|
8,345
|
|
|
3.15
|
|
|
8,583
|
|
|
3.23
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
1,710
|
|
|
3.04
|
|
|
1,798
|
|
|
3.11
|
|
|
1,848
|
|
|
3.09
|
|
|
Automobile
|
|
126
|
|
|
0.22
|
|
|
133
|
|
|
0.24
|
|
|
137
|
|
|
0.25
|
|
|
Other revolving credit and installment
|
|
40
|
|
|
0.11
|
|
|
42
|
|
|
0.12
|
|
|
41
|
|
|
0.11
|
|
|
Total consumer
|
|
9,921
|
|
|
2.20
|
|
|
10,318
|
|
|
2.31
|
|
|
10,609
|
|
|
2.37
|
|
|
Total nonaccrual loans
|
|
12,443
|
|
|
1.40
|
|
|
12,510
|
|
|
1.45
|
|
|
12,848
|
|
|
1.49
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
588
|
|
|
|
|
772
|
|
|
|
|
982
|
|
|
|
|
Non-government insured/guaranteed
|
|
1,370
|
|
|
|
|
1,557
|
|
|
|
|
1,627
|
|
|
|
|
Total foreclosed assets
|
|
1,958
|
|
|
|
|
2,329
|
|
|
|
|
2,609
|
|
|
|
|
Total nonperforming assets
|
|
$
|
14,401
|
|
|
1.62
|
%
|
|
$
|
14,839
|
|
|
1.72
|
%
|
|
$
|
15,457
|
|
|
1.79
|
%
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
$
|
(67
|
)
|
|
|
|
$
|
(338
|
)
|
|
|
|
$
|
(517
|
)
|
|
|
|
Total nonperforming assets
|
|
(438
|
)
|
|
|
|
(618
|
)
|
|
|
|
(739
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 Days or More Past Due and Still Accruing
Loans 90 days or more past due and still accruing (excluding government
insured/guaranteed) totaled $756 million at June 30, 2015, down from
$841 million at March 31, 2015. Loans 90 days or more past due and still
accruing with repayments insured by the Federal Housing Administration
(FHA) or predominantly guaranteed by the Department of Veterans Affairs
(VA) for mortgages and the U.S. Department of Education for student
loans under the Federal Family Education Loan Program were $14.4 billion
at June 30, 2015, down from $15.5 billion at March 31, 2015.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.6 billion at June 30, 2015, down from $13.0
billion at March 31, 2015. The allowance coverage to total loans was
1.42 percent, compared with 1.51 percent in first quarter 2015. The
allowance covered 4.8 times annualized second quarter net charge-offs,
compared with 4.5 times in the prior quarter. The allowance coverage to
nonaccrual loans was 101 percent at June 30, 2015, compared with 104
percent at March 31, 2015. “We believe the allowance was appropriate for
losses inherent in the loan portfolio at June 30, 2015,” 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
|
|
(in millions)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Community Banking
|
|
$
|
3,358
|
|
|
3,665
|
|
|
3,431
|
|
Wholesale Banking
|
|
2,011
|
|
|
1,797
|
|
|
1,952
|
|
Wealth, Brokerage and Retirement
|
|
602
|
|
|
561
|
|
|
544
|
|
|
|
|
|
|
|
|
|
|
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
|
|
(in millions)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Total revenue
|
|
$
|
12,661
|
|
|
12,784
|
|
|
12,606
|
|
Provision for credit losses
|
|
363
|
|
|
617
|
|
|
279
|
|
Noninterest expense
|
|
7,164
|
|
|
7,064
|
|
|
7,020
|
|
Segment net income
|
|
3,358
|
|
|
3,665
|
|
|
3,431
|
|
(in billions)
|
|
|
|
|
|
|
|
Average loans
|
|
506.5
|
|
|
506.4
|
|
|
505.4
|
|
Average assets
|
|
993.3
|
|
|
993.1
|
|
|
918.1
|
|
Average core deposits
|
|
685.7
|
|
|
668.9
|
|
|
639.8
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.4 billion, down $307
million, or 8 percent, from first quarter 2015 primarily due to higher
income taxes as first quarter 2015 included a $359 million discrete tax
benefit. Revenue of $12.7 billion was $123 million, or 1 percent, lower
compared with the prior quarter due to lower market sensitive revenue,
mainly gains from trading activities and sale of debt securities,
partially offset by higher net interest income, mortgage banking fees,
deposit service charges, and card fees. Noninterest expense increased
$100 million, or 1 percent, due to higher operating losses, project
spending and advertising costs, partially offset by lower personnel,
equipment and occupancy expenses. The provision for credit losses
decreased $254 million from the prior quarter due to a $190 million
higher reserve release as well as a $64 million improvement in net
charge offs.
Net income was down $73 million, or 2 percent, from second quarter 2014.
Revenue rose slightly from a year ago as higher net interest income,
trust and investment fees, and debit and credit card fees, were mostly
offset by lower gains from trading activities and lower mortgage banking
fees. Noninterest expense increased $144 million, or 2 percent, from a
year ago driven by higher personnel expenses and operating losses,
partially offset by lower travel, occupancy and advertising expenses.
The provision for credit losses increased $84 million from a year ago as
the $97 million improvement in net charge-offs was more than offset by a
$181 million lower reserve release.
Regional Banking
-
Retail banking
-
Primary consumer checking customers5 up 5.6 percent
year-over-year6
-
Retail Bank household cross-sell ratio of 6.13 products per
household, compared with 6.17 year-over-year6,7
-
Small Business/Business Banking
-
Primary business checking customers5 up 5.3 percent
year-over-year6
-
Combined Business Direct credit card, lines of credit and loan
product solutions (primarily under $100,000 sold through our
retail banking stores) were up 2 percent in the second quarter and
up 12 percent in the first half of 2015, compared with the same
periods in the prior year
-
As part of the Wells Fargo Works for Small BusinessSM
initiative, Wells Fargo launched the complimentary new Business
Plan Center at wellsfargoworks.com to help every business create a
plan for success with over 800,000 visits since launching in May
-
Wells Fargo was the nation’s #1 SBA 7(a) small business lender in
dollars and units for the first half of the 2015 federal fiscal
year8
-
Online and Mobile Banking
-
26 million active online customers, including nearly 16 million
active mobile users, with continued double digit growth in mobile
adoption6
Consumer Lending Group
-
Home Lending
-
Originations of $62 billion, up from $49 billion in prior quarter
-
Applications of $81 billion, down from $93 billion in prior quarter
-
Application pipeline of $38 billion at quarter end, down from $44
billion at March 31, 2015
-
Residential mortgage servicing portfolio of $1.7 trillion
-
Consumer Credit
-
Credit card penetration in retail banking households rose to 42.6
percent6, up from 39.0 percent in prior year
-
Auto originations of $8.1 billion in second quarter, up 15 percent
from prior quarter and 5 percent from prior year
Wholesale Banking provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $20 million. Products and
business segments include Middle Market Commercial Banking, Government
and Institutional Banking, Corporate Banking, Commercial Real Estate,
Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage
Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities,
Principal Investments, Asset Backed Finance, and Asset Management.
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Total revenue
|
|
$
|
6,083
|
|
|
5,912
|
|
|
5,946
|
|
|
Reversal of provision for credit losses
|
|
(58
|
)
|
|
(6
|
)
|
|
(49
|
)
|
|
Noninterest expense
|
|
3,295
|
|
|
3,409
|
|
|
3,203
|
|
|
Segment net income
|
|
2,011
|
|
|
1,797
|
|
|
1,952
|
|
|
(in billions)
|
|
|
|
|
|
|
|
Average loans
|
|
343.6
|
|
|
337.6
|
|
|
308.1
|
|
|
Average assets
|
|
618.0
|
|
|
594.9
|
|
|
532.4
|
|
|
Average core deposits
|
|
304.2
|
|
|
303.4
|
|
|
265.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $2.0 billion, up $214 million,
or 12 percent, from first quarter 2015. Revenue of $6.1 billion
increased $171 million, or 3 percent, from prior quarter. Net interest
income increased $147 million, or 5 percent, on broad based loan growth,
which included the GE Capital loan purchase and financing transaction,
other earning asset growth and increased loan resolutions. Noninterest
income increased $24 million, or 1 percent, driven by higher treasury
management fees, higher real estate capital markets fees and increased
gains on equity fund investments. Noninterest expense decreased $114
million, or 3 percent, linked quarter on seasonally lower personnel
expense. The provision for credit losses decreased $52 million from
prior quarter.
Net income was up $59 million, or 3 percent, from second quarter 2014.
Revenue increased $137 million, or 2 percent, from second quarter 2014
on strong loan and deposit growth, higher commercial real estate
brokerage, treasury management, real estate capital markets fees and
gains on equity fund investments. Noninterest expense increased
$92 million, or 3 percent, from a year ago primarily due to higher
personnel expenses related to growth initiatives, compliance, and
regulatory requirements. The provision for credit losses decreased $9
million from a year ago.
-
Average loans increased 12 percent in second quarter 2015, compared
with second quarter 2014, on broad-based growth, including
asset-backed finance, capital finance, commercial banking, commercial
real estate, corporate banking, equipment finance, government and
institutional banking, and real estate capital markets
-
Cross-sell of 7.3 products per relationship, up from 7.2 in second
quarter 20149
-
Treasury management revenue up 10 percent from second quarter 2014
-
Total assets under management down $2 billion from second quarter 2014
as fixed income net client inflows were more than offset by equity and
stable value outflows
Wealth, Brokerage and Retirement provides
a full range of financial advisory services to clients using a planning
approach to meet each client’s financial needs. Wealth Management
provides affluent and high net worth clients with a complete range of
wealth management solutions, including financial planning, private
banking, credit, investment management and fiduciary services. Abbot
Downing, a Wells Fargo business, provides comprehensive wealth
management services to ultra high net worth families and individuals as
well as endowments and foundations. Brokerage serves customers’
advisory, brokerage and financial needs as part of one of the largest
full-service brokerage firms in the United States. Retirement is a
national leader in providing institutional retirement and trust services
(including 401(k) and pension plan record keeping) for businesses and
reinsurance services for the life insurance industry.
|
Selected Financial Information
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Total revenue
|
|
$
|
3,739
|
|
|
3,733
|
|
|
3,550
|
|
|
Reversal of provision for credit losses
|
|
(10
|
)
|
|
(3
|
)
|
|
(25
|
)
|
|
Noninterest expense
|
|
2,775
|
|
|
2,831
|
|
|
2,695
|
|
|
Segment net income
|
|
602
|
|
|
561
|
|
|
544
|
|
|
(in billions)
|
|
|
|
|
|
|
|
Average loans
|
|
59.3
|
|
|
56.9
|
|
|
51.0
|
|
|
Average assets
|
|
193.3
|
|
|
195.7
|
|
|
187.6
|
|
|
Average core deposits
|
|
159.4
|
|
|
161.4
|
|
|
153.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth, Brokerage and Retirement (WBR) reported net income of
$602 million, up $41 million, or 7 percent, from first quarter 2015.
Revenue of $3.7 billion increased $6 million from the prior quarter,
predominantly driven by higher asset-based fees, partially offset by
lower gains on deferred compensation plan investments (offset in
compensation expense) and lower brokerage transaction revenue.
Noninterest expense decreased $56 million, or 2 percent, from the prior
quarter, as lower personnel expenses and lower deferred compensation
plan expense (offset in trading revenue) were partially offset by higher
operating losses reflecting increased litigation accruals. The provision
for credit losses decreased $7 million from first quarter 2015.
Net income was up $58 million, or 11 percent, from second quarter 2014.
Revenue increased $189 million, or 5 percent, from a year ago on growth
in asset-based fees and net interest income, partially offset by lower
gains on deferred compensation plan investments (offset in compensation
expense). Noninterest expense increased $80 million, or 3 percent, from
a year ago primarily due to increased litigation accruals and higher
broker commissions, partially offset by lower deferred compensation plan
expense (offset in trading revenue). The provision for credit losses
increased $15 million from a year ago.
Retail Brokerage
-
Client assets of $1.4 trillion, up 1 percent from prior year
-
Managed account assets of $434 billion, increased $25 billion, or 6
percent, from prior year, primarily driven by net flows
-
Strong loan growth, with average balances up 25 percent from prior
year largely due to growth in non-conforming mortgages and
security-based lending
Wealth Management
-
Client assets of $224 billion, up 2 percent from prior year
-
Average loan balances up 12 percent over prior year driven by growth
in non-conforming mortgages, commercial and security-based lending
Retirement
-
IRA assets of $365 billion, up 2 percent from prior year
-
Institutional Retirement plan assets of $346 billion, up 2 percent
from prior year
WBR cross-sell ratio of 10.53 products per household, up
from 10.44 a year ago6
Conference Call
The Company will host a live conference call on Tuesday, July 14, at 7
a.m. PDT (10 a.m. EDT). You may participate by dialing 866-872-5161
(U.S. and Canada) or 706-643-1962 (International). The call will also be
available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/rt/wells_fargo_ao~071415_am.
A replay of the conference call will be available beginning at 10 a.m.
PDT (1 p.m. EDT) on July 14 through Tuesday, July 21. Please dial
855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter
Conference ID #46479315. The replay will also be available online
at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/rt/wells_fargo_ao~071415_am.
|
Endnotes
|
|
1
|
|
See table under Loans header for more information on core and
non-strategic/liquidating loan portfolios.
|
|
2
|
|
Reserve release represents the amount by which net charge-offs
exceed the provision for credit losses.
|
|
3
|
|
See Common Equity Tier 1 Under Basel III table for more
information on Common Equity Tier 1. Common Equity Tier 1 (fully
phased-in) is a preliminary estimate and is calculated assuming
the full phase-in of the Basel III capital rules.
|
|
4
|
|
Net gains on mortgage loan origination/or sales activities less
repurchase reserve build/release divided by total originations.
|
|
5
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
|
6
|
|
Data as of May 2015, comparisons with May 2014.
|
|
7
|
|
May 2015 Retail Bank household cross-sell ratio includes the impact
of the sale of government guaranteed student loans in fourth quarter
2014.
|
|
8
|
|
U.S. SBA data, partial fiscal year as of March 2015 (federal fiscal
full-year 2015 is October 2014-September 2015).
|
|
9
|
|
Cross-sell reported on a one-quarter lag.
|
|
|
|
|
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;
-
a recurrence of significant turbulence or disruption in the capital or
financial markets, which could result in, among other things, reduced
investor demand for mortgage loans, a reduction in the availability of
funding or increased funding costs, and declines in asset values
and/or recognition of other-than-temporary impairment on securities
held in our investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2014.
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, 2014, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a nationwide, diversified,
community-based financial services company with $1.7 trillion in assets.
Founded in 1852 and headquartered in San Francisco, Wells Fargo provides
banking, insurance, investments, mortgage, and consumer and commercial
finance through 8,700 locations, 12,800 ATMs, the internet
(wellsfargo.com) and mobile banking, and has offices in 36 countries to
support customers who conduct business in the global economy. With
approximately 266,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 30
on Fortune’s 2015 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and help
them succeed financially.
|
Wells Fargo & Company and Subsidiaries
|
|
QUARTERLY FINANCIAL DATA
|
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
Pages
|
|
|
|
|
|
Summary Information
|
|
|
|
Summary Financial Data
|
|
16
|
|
|
|
|
|
Income
|
|
|
|
Consolidated Statement of Income
|
|
18
|
|
Consolidated Statement of Comprehensive Income
|
|
20
|
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
20
|
|
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
21
|
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
23
|
|
Noninterest Income and Noninterest Expense
|
|
24
|
|
|
|
|
|
Balance Sheet
|
|
|
|
Consolidated Balance Sheet
|
|
26
|
|
Investment Securities
|
|
28
|
|
|
|
|
|
Loans
|
|
|
|
Loans
|
|
28
|
|
Nonperforming Assets
|
|
29
|
|
Loans 90 Days or More Past Due and Still Accruing
|
|
30
|
|
Purchased Credit-Impaired Loans
|
|
31
|
|
Pick-A-Pay Portfolio
|
|
32
|
|
Non-Strategic and Liquidating Loan Portfolios
|
|
32
|
|
Changes in Allowance for Credit Losses
|
|
33
|
|
|
|
|
|
Equity
|
|
|
|
Common Equity Tier 1 Under Basel III
|
|
35
|
|
|
|
|
|
Operating Segments
|
|
|
|
Operating Segment Results
|
|
36
|
|
|
|
|
|
Other
|
|
|
|
Mortgage Servicing and other related data
|
|
38
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
Quarter ended
|
|
% Change
Jun 30, 2015 from
|
|
Six months ended
|
|
|
|
($ in millions, except per share amounts)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Mar 31,
2015
|
|
Jun 30,
2014
|
|
Jun 30,
2015
|
|
Jun 30,
2014
|
|
%
Change
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,804
|
|
|
5,726
|
|
|
(1
|
)%
|
|
—
|
|
|
$
|
11,523
|
|
|
11,619
|
|
|
(1
|
)%
|
|
Wells Fargo net income applicable to common stock
|
|
5,363
|
|
|
5,461
|
|
|
5,424
|
|
|
(2
|
)
|
|
(1
|
)
|
|
10,824
|
|
|
11,031
|
|
|
(2
|
)
|
|
Diluted earnings per common share
|
|
1.03
|
|
|
1.04
|
|
|
1.01
|
|
|
(1
|
)
|
|
2
|
|
|
2.07
|
|
|
2.06
|
|
|
—
|
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
1.33
|
%
|
|
1.38
|
|
|
1.47
|
|
|
(4
|
)
|
|
(10
|
)
|
|
1.35
|
|
|
1.52
|
|
|
(11
|
)
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
12.71
|
|
|
13.17
|
|
|
13.40
|
|
|
(3
|
)
|
|
(5
|
)
|
|
12.94
|
|
|
13.86
|
|
|
(7
|
)
|
|
Efficiency ratio (1)
|
|
58.5
|
|
|
58.8
|
|
|
57.9
|
|
|
(1
|
)
|
|
1
|
|
|
58.6
|
|
|
57.9
|
|
|
1
|
|
|
Total revenue
|
|
$
|
21,318
|
|
|
21,278
|
|
|
21,066
|
|
|
—
|
|
|
1
|
|
|
$
|
42,596
|
|
|
41,691
|
|
|
2
|
|
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
8,849
|
|
|
8,771
|
|
|
8,872
|
|
|
1
|
|
|
—
|
|
|
17,620
|
|
|
17,549
|
|
|
—
|
|
|
Dividends declared per common share
|
|
0.375
|
|
|
0.35
|
|
|
0.35
|
|
|
7
|
|
|
7
|
|
|
0.725
|
|
|
0.65
|
|
|
12
|
|
|
Average common shares outstanding
|
|
5,151.9
|
|
|
5,160.4
|
|
|
5,268.4
|
|
|
—
|
|
|
(2
|
)
|
|
5,156.1
|
|
|
5,265.6
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
5,220.5
|
|
|
5,243.6
|
|
|
5,350.8
|
|
|
—
|
|
|
(2
|
)
|
|
5,233.2
|
|
|
5,353.2
|
|
|
(2
|
)
|
|
Average loans
|
|
$
|
870,446
|
|
|
863,261
|
|
|
831,043
|
|
|
1
|
|
|
5
|
|
|
$
|
866,873
|
|
|
827,436
|
|
|
5
|
|
|
Average assets
|
|
1,729,278
|
|
|
1,707,798
|
|
|
1,564,003
|
|
|
1
|
|
|
11
|
|
|
1,718,597
|
|
|
1,545,060
|
|
|
11
|
|
|
Average core deposits (3)
|
|
1,079,160
|
|
|
1,063,234
|
|
|
991,727
|
|
|
1
|
|
|
9
|
|
|
1,071,241
|
|
|
982,814
|
|
|
9
|
|
|
Average retail core deposits (4)
|
|
741,500
|
|
|
731,413
|
|
|
698,763
|
|
|
1
|
|
|
6
|
|
|
736,484
|
|
|
694,726
|
|
|
6
|
|
|
Net interest margin
|
|
2.97
|
%
|
|
2.95
|
|
|
3.15
|
|
|
1
|
|
|
(6
|
)
|
|
2.96
|
|
|
3.17
|
|
|
(7
|
)
|
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
340,769
|
|
|
324,736
|
|
|
279,069
|
|
|
5
|
|
|
22
|
|
|
$
|
340,769
|
|
|
279,069
|
|
|
22
|
|
|
Loans
|
|
888,459
|
|
|
861,231
|
|
|
828,942
|
|
|
3
|
|
|
7
|
|
|
888,459
|
|
|
828,942
|
|
|
7
|
|
|
Allowance for loan losses
|
|
11,754
|
|
|
12,176
|
|
|
13,101
|
|
|
(3
|
)
|
|
(10
|
)
|
|
11,754
|
|
|
13,101
|
|
|
(10
|
)
|
|
Goodwill
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
—
|
|
|
—
|
|
|
25,705
|
|
|
25,705
|
|
|
—
|
|
|
Assets
|
|
1,720,617
|
|
|
1,737,737
|
|
|
1,598,874
|
|
|
(1
|
)
|
|
8
|
|
|
1,720,617
|
|
|
1,598,874
|
|
|
8
|
|
|
Core deposits (3)
|
|
1,082,634
|
|
|
1,086,993
|
|
|
1,007,485
|
|
|
—
|
|
|
7
|
|
|
1,082,634
|
|
|
1,007,485
|
|
|
7
|
|
|
Wells Fargo stockholders’ equity
|
|
189,558
|
|
|
188,796
|
|
|
180,859
|
|
|
—
|
|
|
5
|
|
|
189,558
|
|
|
180,859
|
|
|
5
|
|
|
Total equity
|
|
190,676
|
|
|
189,964
|
|
|
181,549
|
|
|
—
|
|
|
5
|
|
|
190,676
|
|
|
181,549
|
|
|
5
|
|
|
Common shares outstanding
|
|
5,145.2
|
|
|
5,162.9
|
|
|
5,249.9
|
|
|
—
|
|
|
(2
|
)
|
|
5,145.2
|
|
|
5,249.9
|
|
|
(2
|
)
|
|
Book value per common share
|
|
$
|
32.96
|
|
|
32.70
|
|
|
31.18
|
|
|
1
|
|
|
6
|
|
|
$
|
32.96
|
|
|
31.18
|
|
|
6
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
58.26
|
|
|
56.29
|
|
|
53.05
|
|
|
3
|
|
|
10
|
|
|
58.26
|
|
|
53.05
|
|
|
10
|
|
|
Low
|
|
53.56
|
|
|
50.42
|
|
|
46.72
|
|
|
6
|
|
|
15
|
|
|
50.42
|
|
|
44.17
|
|
|
14
|
|
|
Period end
|
|
56.24
|
|
|
54.40
|
|
|
52.56
|
|
|
3
|
|
|
7
|
|
|
56.24
|
|
|
52.56
|
|
|
7
|
|
|
Team members (active, full-time equivalent)
|
|
265,800
|
|
|
266,000
|
|
|
263,500
|
|
|
—
|
|
|
1
|
|
|
265,800
|
|
|
263,500
|
|
|
1
|
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(3) Core deposits are noninterest-bearing deposits,
interest-bearing checking, savings certificates, certain market
rate and other savings, and certain foreign deposits (Eurodollar
sweep balances).
|
|
(4) Retail core deposits are total core deposits excluding
Wholesale Banking core deposits and retail mortgage escrow
deposits.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
Quarter ended
|
|
($ in millions, except per share amounts)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Dec 31,
2014
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,804
|
|
|
5,709
|
|
|
5,729
|
|
|
5,726
|
|
Wells Fargo net income applicable to common stock
|
|
5,363
|
|
|
5,461
|
|
|
5,382
|
|
|
5,408
|
|
|
5,424
|
|
Diluted earnings per common share
|
|
1.03
|
|
|
1.04
|
|
|
1.02
|
|
|
1.02
|
|
|
1.01
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
1.33
|
%
|
|
1.38
|
|
|
1.36
|
|
|
1.40
|
|
|
1.47
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
12.71
|
|
|
13.17
|
|
|
12.84
|
|
|
13.10
|
|
|
13.40
|
|
Efficiency ratio (1)
|
|
58.5
|
|
|
58.8
|
|
|
59.0
|
|
|
57.7
|
|
|
57.9
|
|
Total revenue
|
|
$
|
21,318
|
|
|
21,278
|
|
|
21,443
|
|
|
21,213
|
|
|
21,066
|
|
Pre-tax pre-provision profit (PTPP) (2)
|
|
8,849
|
|
|
8,771
|
|
|
8,796
|
|
|
8,965
|
|
|
8,872
|
|
Dividends declared per common share
|
|
0.375
|
|
|
0.35
|
|
|
0.35
|
|
|
0.35
|
|
|
0.35
|
|
Average common shares outstanding
|
|
5,151.9
|
|
|
5,160.4
|
|
|
5,192.5
|
|
|
5,225.9
|
|
|
5,268.4
|
|
Diluted average common shares outstanding
|
|
5,220.5
|
|
|
5,243.6
|
|
|
5,279.2
|
|
|
5,310.4
|
|
|
5,350.8
|
|
Average loans
|
|
$
|
870,446
|
|
|
863,261
|
|
|
849,429
|
|
|
833,199
|
|
|
831,043
|
|
Average assets
|
|
1,729,278
|
|
|
1,707,798
|
|
|
1,663,760
|
|
|
1,617,942
|
|
|
1,564,003
|
|
Average core deposits (3)
|
|
1,079,160
|
|
|
1,063,234
|
|
|
1,035,999
|
|
|
1,012,219
|
|
|
991,727
|
|
Average retail core deposits (4)
|
|
741,500
|
|
|
731,413
|
|
|
714,572
|
|
|
703,062
|
|
|
698,763
|
|
Net interest margin
|
|
2.97
|
%
|
|
2.95
|
|
|
3.04
|
|
|
3.06
|
|
|
3.15
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
340,769
|
|
|
324,736
|
|
|
312,925
|
|
|
289,009
|
|
|
279,069
|
|
Loans
|
|
888,459
|
|
|
861,231
|
|
|
862,551
|
|
|
838,883
|
|
|
828,942
|
|
Allowance for loan losses
|
|
11,754
|
|
|
12,176
|
|
|
12,319
|
|
|
12,681
|
|
|
13,101
|
|
Goodwill
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
Assets
|
|
1,720,617
|
|
|
1,737,737
|
|
|
1,687,155
|
|
|
1,636,855
|
|
|
1,598,874
|
|
Core deposits (3)
|
|
1,082,634
|
|
|
1,086,993
|
|
|
1,054,348
|
|
|
1,016,478
|
|
|
1,007,485
|
|
Wells Fargo stockholders’ equity
|
|
189,558
|
|
|
188,796
|
|
|
184,394
|
|
|
182,481
|
|
|
180,859
|
|
Total equity
|
|
190,676
|
|
|
189,964
|
|
|
185,262
|
|
|
182,990
|
|
|
181,549
|
|
Common shares outstanding
|
|
5,145.2
|
|
|
5,162.9
|
|
|
5,170.3
|
|
|
5,215.0
|
|
|
5,249.9
|
|
Book value per common share
|
|
$
|
32.96
|
|
|
32.70
|
|
|
32.19
|
|
|
31.55
|
|
|
31.18
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
58.26
|
|
|
56.29
|
|
|
55.95
|
|
|
53.80
|
|
|
53.05
|
|
Low
|
|
53.56
|
|
|
50.42
|
|
|
46.44
|
|
|
49.47
|
|
|
46.72
|
|
Period end
|
|
56.24
|
|
|
54.40
|
|
|
54.82
|
|
|
51.87
|
|
|
52.56
|
|
Team members (active, full-time equivalent)
|
|
265,800
|
|
|
266,000
|
|
|
264,500
|
|
|
263,900
|
|
|
263,500
|
|
(1) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(2) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(3) Core deposits are noninterest-bearing deposits,
interest-bearing checking, savings certificates, certain market
rate and other savings, and certain foreign deposits (Eurodollar
sweep balances).
|
|
(4) Retail core deposits are total core deposits excluding
Wholesale Banking core deposits and retail mortgage escrow
deposits.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
Quarter ended Jun 30,
|
|
%
|
|
Six Months Ended June 30,
|
|
%
|
|
(in millions, except per share amounts)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
$
|
483
|
|
|
407
|
|
|
19
|
%
|
|
$
|
928
|
|
|
781
|
|
|
19
|
%
|
|
Investment securities
|
|
2,181
|
|
|
2,112
|
|
|
3
|
|
|
4,325
|
|
|
4,222
|
|
|
2
|
%
|
|
Mortgages held for sale
|
|
209
|
|
|
195
|
|
|
7
|
|
|
386
|
|
|
365
|
|
|
6
|
%
|
|
Loans held for sale
|
|
5
|
|
|
1
|
|
|
400
|
|
|
10
|
|
|
3
|
|
|
233
|
%
|
|
Loans
|
|
9,098
|
|
|
8,852
|
|
|
3
|
|
|
18,036
|
|
|
17,598
|
|
|
2
|
%
|
|
Other interest income
|
|
250
|
|
|
226
|
|
|
11
|
|
|
504
|
|
|
436
|
|
|
16
|
%
|
|
Total interest income
|
|
12,226
|
|
|
11,793
|
|
|
4
|
|
|
24,189
|
|
|
23,405
|
|
|
3
|
%
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
232
|
|
|
275
|
|
|
(16
|
)
|
|
490
|
|
|
554
|
|
|
(12
|
)
|
|
Short-term borrowings
|
|
21
|
|
|
14
|
|
|
50
|
|
|
39
|
|
|
26
|
|
|
50
|
|
|
Long-term debt
|
|
620
|
|
|
620
|
|
|
—
|
|
|
1,224
|
|
|
1,239
|
|
|
(1
|
)
|
|
Other interest expense
|
|
83
|
|
|
93
|
|
|
(11
|
)
|
|
180
|
|
|
180
|
|
|
—
|
|
|
Total interest expense
|
|
956
|
|
|
1,002
|
|
|
(5
|
)
|
|
1,933
|
|
|
1,999
|
|
|
(3
|
)
|
|
Net interest income
|
|
11,270
|
|
|
10,791
|
|
|
4
|
|
|
22,256
|
|
|
21,406
|
|
|
4
|
|
|
Provision for credit losses
|
|
300
|
|
|
217
|
|
|
38
|
|
|
908
|
|
|
542
|
|
|
68
|
|
|
Net interest income after provision for credit losses
|
|
10,970
|
|
|
10,574
|
|
|
4
|
|
|
21,348
|
|
|
20,864
|
|
|
2
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
1,289
|
|
|
1,283
|
|
|
—
|
|
|
2,504
|
|
|
2,498
|
|
|
—
|
|
|
Trust and investment fees
|
|
3,710
|
|
|
3,609
|
|
|
3
|
|
|
7,387
|
|
|
7,021
|
|
|
5
|
|
|
Card fees
|
|
930
|
|
|
847
|
|
|
10
|
|
|
1,801
|
|
|
1,631
|
|
|
10
|
|
|
Other fees
|
|
1,107
|
|
|
1,088
|
|
|
2
|
|
|
2,185
|
|
|
2,135
|
|
|
2
|
|
|
Mortgage banking
|
|
1,705
|
|
|
1,723
|
|
|
(1
|
)
|
|
3,252
|
|
|
3,233
|
|
|
1
|
|
|
Insurance
|
|
461
|
|
|
453
|
|
|
2
|
|
|
891
|
|
|
885
|
|
|
1
|
|
|
Net gains from trading activities
|
|
133
|
|
|
382
|
|
|
(65
|
)
|
|
541
|
|
|
814
|
|
|
(34
|
)
|
|
Net gains on debt securities
|
|
181
|
|
|
71
|
|
|
155
|
|
|
459
|
|
|
154
|
|
|
198
|
|
|
Net gains from equity investments
|
|
517
|
|
|
449
|
|
|
15
|
|
|
887
|
|
|
1,296
|
|
|
(32
|
)
|
|
Lease income
|
|
155
|
|
|
129
|
|
|
20
|
|
|
287
|
|
|
262
|
|
|
10
|
|
|
Other
|
|
(140
|
)
|
|
241
|
|
|
NM
|
|
146
|
|
|
356
|
|
|
(59
|
)
|
|
Total noninterest income
|
|
10,048
|
|
|
10,275
|
|
|
(2
|
)
|
|
20,340
|
|
|
20,285
|
|
|
—
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
3,936
|
|
|
3,795
|
|
|
4
|
|
|
7,787
|
|
|
7,523
|
|
|
4
|
|
|
Commission and incentive compensation
|
|
2,606
|
|
|
2,445
|
|
|
7
|
|
|
5,291
|
|
|
4,861
|
|
|
9
|
|
|
Employee benefits
|
|
1,106
|
|
|
1,170
|
|
|
(5
|
)
|
|
2,583
|
|
|
2,542
|
|
|
2
|
|
|
Equipment
|
|
470
|
|
|
445
|
|
|
6
|
|
|
964
|
|
|
935
|
|
|
3
|
|
|
Net occupancy
|
|
710
|
|
|
722
|
|
|
(2
|
)
|
|
1,433
|
|
|
1,464
|
|
|
(2
|
)
|
|
Core deposit and other intangibles
|
|
312
|
|
|
349
|
|
|
(11
|
)
|
|
624
|
|
|
690
|
|
|
(10
|
)
|
|
FDIC and other deposit assessments
|
|
222
|
|
|
225
|
|
|
(1
|
)
|
|
470
|
|
|
468
|
|
|
—
|
|
|
Other
|
|
3,107
|
|
|
3,043
|
|
|
2
|
|
|
5,824
|
|
|
5,659
|
|
|
3
|
|
|
Total noninterest expense
|
|
12,469
|
|
|
12,194
|
|
|
2
|
|
|
24,976
|
|
|
24,142
|
|
|
3
|
|
|
Income before income tax expense
|
|
8,549
|
|
|
8,655
|
|
|
(1
|
)
|
|
16,712
|
|
|
17,007
|
|
|
(2
|
)
|
|
Income tax expense
|
|
2,763
|
|
|
2,869
|
|
|
(4
|
)
|
|
5,042
|
|
|
5,146
|
|
|
(2
|
)
|
|
Net income before noncontrolling interests
|
|
5,786
|
|
|
5,786
|
|
|
—
|
|
|
11,670
|
|
|
11,861
|
|
|
(2
|
)
|
|
Less: Net income from noncontrolling interests
|
|
67
|
|
|
60
|
|
|
12
|
|
|
147
|
|
|
242
|
|
|
(39
|
)
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,726
|
|
|
—
|
|
|
$
|
11,523
|
|
|
11,619
|
|
|
(1
|
)
|
|
Less: Preferred stock dividends and other
|
|
356
|
|
|
302
|
|
|
18
|
|
|
699
|
|
|
588
|
|
|
19
|
|
|
Wells Fargo net income applicable to common stock
|
|
$
|
5,363
|
|
|
5,424
|
|
|
(1
|
)
|
|
$
|
10,824
|
|
|
11,031
|
|
|
(2
|
)
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
1.04
|
|
|
1.02
|
|
|
2
|
|
|
$
|
2.10
|
|
|
2.09
|
|
|
—
|
|
|
Diluted earnings per common share
|
|
1.03
|
|
|
1.01
|
|
|
2
|
|
|
2.07
|
|
|
2.06
|
|
|
—
|
|
|
Dividends declared per common share
|
|
0.375
|
|
|
0.35
|
|
|
7
|
|
|
0.725
|
|
|
0.65
|
|
|
12
|
|
|
Average common shares outstanding
|
|
5,151.9
|
|
|
5,268.4
|
|
|
(2
|
)
|
|
5,156.1
|
|
|
5,265.6
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
5,220.5
|
|
|
5,350.8
|
|
|
(2
|
)
|
|
5,233.2
|
|
|
5,353.2
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
Quarter ended
|
|
(in millions, except per share amounts)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Dec 31,
2014
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
$
|
483
|
|
|
445
|
|
|
477
|
|
|
427
|
|
|
407
|
|
Investment securities
|
|
2,181
|
|
|
2,144
|
|
|
2,150
|
|
|
2,066
|
|
|
2,112
|
|
Mortgages held for sale
|
|
209
|
|
|
177
|
|
|
187
|
|
|
215
|
|
|
195
|
|
Loans held for sale
|
|
5
|
|
|
5
|
|
|
25
|
|
|
50
|
|
|
1
|
|
Loans
|
|
9,098
|
|
|
8,938
|
|
|
9,091
|
|
|
8,963
|
|
|
8,852
|
|
Other interest income
|
|
250
|
|
|
254
|
|
|
253
|
|
|
243
|
|
|
226
|
|
Total interest income
|
|
12,226
|
|
|
11,963
|
|
|
12,183
|
|
|
11,964
|
|
|
11,793
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
232
|
|
|
258
|
|
|
269
|
|
|
273
|
|
|
275
|
|
Short-term borrowings
|
|
21
|
|
|
18
|
|
|
18
|
|
|
15
|
|
|
14
|
|
Long-term debt
|
|
620
|
|
|
604
|
|
|
620
|
|
|
629
|
|
|
620
|
|
Other interest expense
|
|
83
|
|
|
97
|
|
|
96
|
|
|
106
|
|
|
93
|
|
Total interest expense
|
|
956
|
|
|
977
|
|
|
1,003
|
|
|
1,023
|
|
|
1,002
|
|
Net interest income
|
|
11,270
|
|
|
10,986
|
|
|
11,180
|
|
|
10,941
|
|
|
10,791
|
|
Provision for credit losses
|
|
300
|
|
|
608
|
|
|
485
|
|
|
368
|
|
|
217
|
|
Net interest income after provision for credit losses
|
|
10,970
|
|
|
10,378
|
|
|
10,695
|
|
|
10,573
|
|
|
10,574
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
1,289
|
|
|
1,215
|
|
|
1,241
|
|
|
1,311
|
|
|
1,283
|
|
Trust and investment fees
|
|
3,710
|
|
|
3,677
|
|
|
3,705
|
|
|
3,554
|
|
|
3,609
|
|
Card fees
|
|
930
|
|
|
871
|
|
|
925
|
|
|
875
|
|
|
847
|
|
Other fees
|
|
1,107
|
|
|
1,078
|
|
|
1,124
|
|
|
1,090
|
|
|
1,088
|
|
Mortgage banking
|
|
1,705
|
|
|
1,547
|
|
|
1,515
|
|
|
1,633
|
|
|
1,723
|
|
Insurance
|
|
461
|
|
|
430
|
|
|
382
|
|
|
388
|
|
|
453
|
|
Net gains from trading activities
|
|
133
|
|
|
408
|
|
|
179
|
|
|
168
|
|
|
382
|
|
Net gains on debt securities
|
|
181
|
|
|
278
|
|
|
186
|
|
|
253
|
|
|
71
|
|
Net gains from equity investments
|
|
517
|
|
|
370
|
|
|
372
|
|
|
712
|
|
|
449
|
|
Lease income
|
|
155
|
|
|
132
|
|
|
127
|
|
|
137
|
|
|
129
|
|
Other
|
|
(140
|
)
|
|
286
|
|
|
507
|
|
|
151
|
|
|
241
|
|
Total noninterest income
|
|
10,048
|
|
|
10,292
|
|
|
10,263
|
|
|
10,272
|
|
|
10,275
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
3,936
|
|
|
3,851
|
|
|
3,938
|
|
|
3,914
|
|
|
3,795
|
|
Commission and incentive compensation
|
|
2,606
|
|
|
2,685
|
|
|
2,582
|
|
|
2,527
|
|
|
2,445
|
|
Employee benefits
|
|
1,106
|
|
|
1,477
|
|
|
1,124
|
|
|
931
|
|
|
1,170
|
|
Equipment
|
|
470
|
|
|
494
|
|
|
581
|
|
|
457
|
|
|
445
|
|
Net occupancy
|
|
710
|
|
|
723
|
|
|
730
|
|
|
731
|
|
|
722
|
|
Core deposit and other intangibles
|
|
312
|
|
|
312
|
|
|
338
|
|
|
342
|
|
|
349
|
|
FDIC and other deposit assessments
|
|
222
|
|
|
248
|
|
|
231
|
|
|
229
|
|
|
225
|
|
Other
|
|
3,107
|
|
|
2,717
|
|
|
3,123
|
|
|
3,117
|
|
|
3,043
|
|
Total noninterest expense
|
|
12,469
|
|
|
12,507
|
|
|
12,647
|
|
|
12,248
|
|
|
12,194
|
|
Income before income tax expense
|
|
8,549
|
|
|
8,163
|
|
|
8,311
|
|
|
8,597
|
|
|
8,655
|
|
Income tax expense
|
|
2,763
|
|
|
2,279
|
|
|
2,519
|
|
|
2,642
|
|
|
2,869
|
|
Net income before noncontrolling interests
|
|
5,786
|
|
|
5,884
|
|
|
5,792
|
|
|
5,955
|
|
|
5,786
|
|
Less: Net income from noncontrolling interests
|
|
67
|
|
|
80
|
|
|
83
|
|
|
226
|
|
|
60
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,804
|
|
|
5,709
|
|
|
5,729
|
|
|
5,726
|
|
Less: Preferred stock dividends and other
|
|
356
|
|
|
343
|
|
|
327
|
|
|
321
|
|
|
302
|
|
Wells Fargo net income applicable to common stock
|
|
$
|
5,363
|
|
|
5,461
|
|
|
5,382
|
|
|
5,408
|
|
|
5,424
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
1.04
|
|
|
1.06
|
|
|
1.04
|
|
|
1.04
|
|
|
1.02
|
|
Diluted earnings per common share
|
|
1.03
|
|
|
1.04
|
|
|
1.02
|
|
|
1.02
|
|
|
1.01
|
|
Dividends declared per common share
|
|
0.375
|
|
|
0.35
|
|
|
0.35
|
|
|
0.35
|
|
|
0.35
|
|
Average common shares outstanding
|
|
5,151.9
|
|
|
5,160.4
|
|
|
5,192.5
|
|
|
5,225.9
|
|
|
5,268.4
|
|
Diluted average common shares outstanding
|
|
5,220.5
|
|
|
5,243.6
|
|
|
5,279.2
|
|
|
5,310.4
|
|
|
5,350.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
Quarter ended June 30,
|
|
%
|
|
Six months ended June 30,
|
|
%
|
|
(in millions)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,726
|
|
|
—%
|
|
$
|
11,523
|
|
|
11,619
|
|
|
(1)%
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
(1,969
|
)
|
|
2,085
|
|
|
NM
|
|
(1,576
|
)
|
|
4,810
|
|
|
NM
|
|
Reclassification of net gains to net income
|
|
(218
|
)
|
|
(150
|
)
|
|
45
|
|
(518
|
)
|
|
(544
|
)
|
|
(5)
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
(488
|
)
|
|
212
|
|
|
NM
|
|
464
|
|
|
256
|
|
|
81
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
(268
|
)
|
|
(115
|
)
|
|
133
|
|
(502
|
)
|
|
(221
|
)
|
|
127
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial losses arising during the period
|
|
—
|
|
|
(12
|
)
|
|
(100)
|
|
(11
|
)
|
|
(12
|
)
|
|
(8)
|
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
30
|
|
|
20
|
|
|
50
|
|
73
|
|
|
38
|
|
|
92
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
10
|
|
|
17
|
|
|
(41)
|
|
(45
|
)
|
|
—
|
|
|
NM
|
|
Reclassification of net losses to net income
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
6
|
|
|
(100)
|
|
Other comprehensive income (loss), before tax
|
|
(2,903
|
)
|
|
2,057
|
|
|
NM
|
|
(2,115
|
)
|
|
4,333
|
|
|
NM
|
|
Income tax (expense) benefit related to other comprehensive income
|
|
1,040
|
|
|
(816
|
)
|
|
NM
|
|
812
|
|
|
(1,647
|
)
|
|
NM
|
|
Other comprehensive income (loss), net of tax
|
|
(1,863
|
)
|
|
1,241
|
|
|
NM
|
|
(1,303
|
)
|
|
2,686
|
|
|
NM
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
(154
|
)
|
|
(124
|
)
|
|
24
|
|
147
|
|
|
(45
|
)
|
|
NM
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
(1,709
|
)
|
|
1,365
|
|
|
NM
|
|
(1,450
|
)
|
|
2,731
|
|
|
NM
|
|
Wells Fargo comprehensive income
|
|
4,010
|
|
|
7,091
|
|
|
(43)
|
|
10,073
|
|
|
14,350
|
|
|
(30)
|
|
Comprehensive income (loss) from noncontrolling interests
|
|
(87
|
)
|
|
(64
|
)
|
|
36
|
|
294
|
|
|
197
|
|
|
49
|
|
Total comprehensive income
|
|
$
|
3,923
|
|
|
7,027
|
|
|
(44)
|
|
$
|
10,367
|
|
|
14,547
|
|
|
(29)
|
|
NM - Not meaningful
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Dec 31,
2014
|
|
Sep 30,
2014
|
|
Jun 30,
2014
|
|
Balance, beginning of period
|
|
$
|
189,964
|
|
|
185,262
|
|
|
182,990
|
|
|
181,549
|
|
|
176,469
|
|
|
Wells Fargo net income
|
|
5,719
|
|
|
5,804
|
|
|
5,709
|
|
|
5,729
|
|
|
5,726
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
(1,709
|
)
|
|
259
|
|
|
400
|
|
|
(999
|
)
|
|
1,365
|
|
|
Noncontrolling interests
|
|
(51
|
)
|
|
301
|
|
|
353
|
|
|
(181
|
)
|
|
(125
|
)
|
|
Common stock issued
|
|
502
|
|
|
1,327
|
|
|
508
|
|
|
402
|
|
|
579
|
|
|
Common stock repurchased (1)
|
|
(1,994
|
)
|
|
(2,592
|
)
|
|
(2,945
|
)
|
|
(2,490
|
)
|
|
(2,954
|
)
|
|
Preferred stock released by ESOP
|
|
349
|
|
|
41
|
|
|
166
|
|
|
170
|
|
|
430
|
|
|
Common stock warrants repurchased/exercised
|
|
(24
|
)
|
|
(8
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
Preferred stock issued
|
|
—
|
|
|
1,997
|
|
|
—
|
|
|
780
|
|
|
1,995
|
|
|
Common stock dividends
|
|
(1,932
|
)
|
|
(1,805
|
)
|
|
(1,816
|
)
|
|
(1,828
|
)
|
|
(1,844
|
)
|
|
Preferred stock dividends
|
|
(355
|
)
|
|
(344
|
)
|
|
(327
|
)
|
|
(321
|
)
|
|
(302
|
)
|
|
Tax benefit from stock incentive compensation
|
|
55
|
|
|
354
|
|
|
75
|
|
|
48
|
|
|
61
|
|
|
Stock incentive compensation expense
|
|
166
|
|
|
376
|
|
|
176
|
|
|
144
|
|
|
164
|
|
|
Net change in deferred compensation and related plans
|
|
(14
|
)
|
|
(1,008
|
)
|
|
(18
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
Balance, end of period
|
|
$
|
190,676
|
|
|
189,964
|
|
|
185,262
|
|
|
182,990
|
|
|
181,549
|
|
|
(1) For the quarter ended June 30, 2015, includes $750 million
related to a private forward repurchase transaction that settled
in third quarter 2015 for 13.6 million shares of common stock. For
the quarters ended March 31, 2015, and December 31, September 30,
and June 30, 2014, includes $750 million, $750 million, $1.0
billion, and $1.0 billion, respectively, related to private
forward repurchase transactions that settled in subsequent
quarters for 14.0 million, 14.3 million, 19.8 million, and
19.5 million shares of common stock, respectively.
|
|
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
Quarter ended June 30,
|
|
|
|
2015
|
|
|
2014
|
|
(in millions)
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
267,101
|
|
|
0.28
|
%
|
|
$
|
186
|
|
|
229,770
|
|
|
0.28
|
%
|
|
$
|
161
|
|
Trading assets
|
|
67,615
|
|
|
2.91
|
|
|
492
|
|
|
54,347
|
|
|
3.05
|
|
|
414
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
31,748
|
|
|
1.58
|
|
|
125
|
|
|
6,580
|
|
|
1.78
|
|
|
29
|
|
Securities of U.S. states and political subdivisions
|
|
47,075
|
|
|
4.13
|
|
|
486
|
|
|
42,721
|
|
|
4.26
|
|
|
456
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
97,958
|
|
|
2.65
|
|
|
650
|
|
|
116,475
|
|
|
2.85
|
|
|
831
|
|
Residential and commercial
|
|
22,677
|
|
|
5.84
|
|
|
331
|
|
|
27,252
|
|
|
6.11
|
|
|
416
|
|
Total mortgage-backed securities
|
|
120,635
|
|
|
3.25
|
|
|
981
|
|
|
143,727
|
|
|
3.47
|
|
|
1,247
|
|
Other debt and equity securities
|
|
48,816
|
|
|
3.51
|
|
|
427
|
|
|
48,734
|
|
|
3.76
|
|
|
457
|
|
Total available-for-sale securities
|
|
248,274
|
|
|
3.25
|
|
|
2,019
|
|
|
241,762
|
|
|
3.62
|
|
|
2,189
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
44,492
|
|
|
2.19
|
|
|
243
|
|
|
10,829
|
|
|
2.20
|
|
|
59
|
|
Securities of U.S. states and political subdivisions
|
|
2,090
|
|
|
5.17
|
|
|
27
|
|
|
8
|
|
|
6.00
|
|
|
—
|
|
Federal agency mortgage-backed securities
|
|
21,044
|
|
|
2.00
|
|
|
105
|
|
|
6,089
|
|
|
2.74
|
|
|
42
|
|
Other debt securities
|
|
6,270
|
|
|
1.70
|
|
|
26
|
|
|
5,206
|
|
|
1.90
|
|
|
25
|
|
Total held-to-maturity securities
|
|
73,896
|
|
|
2.18
|
|
|
401
|
|
|
22,132
|
|
|
2.28
|
|
|
126
|
|
Total investment securities
|
|
322,170
|
|
|
3.01
|
|
|
2,420
|
|
|
263,894
|
|
|
3.51
|
|
|
2,315
|
|
Mortgages held for sale (4)
|
|
23,456
|
|
|
3.57
|
|
|
209
|
|
|
18,824
|
|
|
4.16
|
|
|
195
|
|
Loans held for sale (4)
|
|
666
|
|
|
3.51
|
|
|
5
|
|
|
157
|
|
|
2.55
|
|
|
1
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
231,551
|
|
|
3.36
|
|
|
1,939
|
|
|
199,246
|
|
|
3.39
|
|
|
1,687
|
|
Commercial and industrial - Non U.S.
|
|
45,123
|
|
|
1.93
|
|
|
217
|
|
|
43,045
|
|
|
2.06
|
|
|
221
|
|
Real estate mortgage
|
|
113,089
|
|
|
3.48
|
|
|
982
|
|
|
112,795
|
|
|
3.61
|
|
|
1,016
|
|
Real estate construction
|
|
20,771
|
|
|
4.12
|
|
|
214
|
|
|
17,458
|
|
|
4.18
|
|
|
182
|
|
Lease financing
|
|
12,364
|
|
|
5.16
|
|
|
160
|
|
|
12,151
|
|
|
5.68
|
|
|
172
|
|
Total commercial
|
|
422,898
|
|
|
3.33
|
|
|
3,512
|
|
|
384,695
|
|
|
3.42
|
|
|
3,278
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
266,023
|
|
|
4.12
|
|
|
2,740
|
|
|
259,985
|
|
|
4.20
|
|
|
2,729
|
|
Real estate 1-4 family junior lien mortgage
|
|
57,066
|
|
|
4.23
|
|
|
603
|
|
|
63,305
|
|
|
4.31
|
|
|
680
|
|
Credit card
|
|
30,373
|
|
|
11.69
|
|
|
885
|
|
|
26,442
|
|
|
11.97
|
|
|
790
|
|
Automobile
|
|
56,974
|
|
|
5.88
|
|
|
836
|
|
|
53,480
|
|
|
6.34
|
|
|
845
|
|
Other revolving credit and installment
|
|
37,112
|
|
|
5.88
|
|
|
544
|
|
|
43,136
|
|
|
5.07
|
|
|
545
|
|
Total consumer
|
|
447,548
|
|
|
5.02
|
|
|
5,608
|
|
|
446,348
|
|
|
5.02
|
|
|
5,589
|
|
Total loans (4)
|
|
870,446
|
|
|
4.20
|
|
|
9,120
|
|
|
831,043
|
|
|
4.28
|
|
|
8,867
|
|
Other
|
|
4,859
|
|
|
5.14
|
|
|
64
|
|
|
4,535
|
|
|
5.74
|
|
|
65
|
|
Total earning assets
|
|
$
|
1,556,313
|
|
|
3.22
|
%
|
|
$
|
12,496
|
|
|
1,402,570
|
|
|
3.43
|
%
|
|
$
|
12,018
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
38,551
|
|
|
0.05
|
%
|
|
$
|
5
|
|
|
40,193
|
|
|
0.07
|
%
|
|
$
|
7
|
|
Market rate and other savings
|
|
619,837
|
|
|
0.06
|
|
|
87
|
|
|
583,907
|
|
|
0.07
|
|
|
101
|
|
Savings certificates
|
|
32,454
|
|
|
0.63
|
|
|
52
|
|
|
38,754
|
|
|
0.86
|
|
|
82
|
|
Other time deposits
|
|
52,238
|
|
|
0.42
|
|
|
55
|
|
|
48,512
|
|
|
0.41
|
|
|
50
|
|
Deposits in foreign offices
|
|
104,334
|
|
|
0.13
|
|
|
33
|
|
|
94,232
|
|
|
0.15
|
|
|
35
|
|
Total interest-bearing deposits
|
|
847,414
|
|
|
0.11
|
|
|
232
|
|
|
805,598
|
|
|
0.14
|
|
|
275
|
|
Short-term borrowings
|
|
84,499
|
|
|
0.09
|
|
|
21
|
|
|
58,845
|
|
|
0.10
|
|
|
14
|
|
Long-term debt
|
|
185,093
|
|
|
1.34
|
|
|
620
|
|
|
159,233
|
|
|
1.56
|
|
|
620
|
|
Other liabilities
|
|
16,405
|
|
|
2.03
|
|
|
83
|
|
|
13,589
|
|
|
2.73
|
|
|
93
|
|
Total interest-bearing liabilities
|
|
1,133,411
|
|
|
0.34
|
|
|
956
|
|
|
1,037,265
|
|
|
0.39
|
|
|
1,002
|
|
Portion of noninterest-bearing funding sources
|
|
422,902
|
|
|
—
|
|
|
—
|
|
|
365,305
|
|
|
—
|
|
|
—
|
|
Total funding sources
|
|
$
|
1,556,313
|
|
|
0.25
|
|
|
956
|
|
|
1,402,570
|
|
|
0.28
|
|
|
1,002
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
2.97
|
%
|
|
$
|
11,540
|
|
|
|
|
|
3.15
|
%
|
|
$
|
11,016
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
17,462
|
|
|
|
|
|
|
|
|
15,956
|
|
|
|
|
|
|
|
Goodwill
|
|
25,705
|
|
|
|
|
|
|
|
|
25,699
|
|
|
|
|
|
|
|
Other
|
|
129,798
|
|
|
|
|
|
|
|
|
119,778
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
172,965
|
|
|
|
|
|
|
|
|
161,433
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
337,890
|
|
|
|
|
|
|
|
|
295,875
|
|
|
|
|
|
|
|
Other liabilities
|
|
67,595
|
|
|
|
|
|
|
|
|
51,184
|
|
|
|
|
|
|
|
Total equity
|
|
190,382
|
|
|
|
|
|
|
|
|
179,679
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
(422,902
|
)
|
|
|
|
|
|
|
|
(365,305
|
)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
172,965
|
|
|
|
|
|
|
|
|
161,433
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,729,278
|
|
|
|
|
|
|
|
|
1,564,003
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.25% for the quarters ended June
30, 2015 and 2014. The average three-month London Interbank
Offered Rate (LIBOR) was 0.28% and 0.23% 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 $270 million and
$225 million for the quarters ended June 30, 2015 and 2014,
respectively, primarily related to tax-exempt income on certain
loans and securities. The federal statutory tax rate was 35% for
the periods presented.
|
|
|
|
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
Six months ended June 30,
|
|
|
|
2015
|
|
|
2014
|
|
(in millions)
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
271,392
|
|
|
0.28
|
%
|
|
$
|
376
|
|
|
221,573
|
|
|
0.28
|
%
|
|
$
|
305
|
|
Trading assets
|
|
65,309
|
|
|
2.89
|
|
|
945
|
|
|
51,306
|
|
|
3.10
|
|
|
795
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
28,971
|
|
|
1.56
|
|
|
225
|
|
|
6,576
|
|
|
1.73
|
|
|
57
|
|
Securities of U.S. states and political subdivisions
|
|
46,017
|
|
|
4.16
|
|
|
958
|
|
|
42,661
|
|
|
4.32
|
|
|
921
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
100,064
|
|
|
2.71
|
|
|
1,356
|
|
|
117,055
|
|
|
2.90
|
|
|
1,695
|
|
Residential and commercial
|
|
23,304
|
|
|
5.77
|
|
|
673
|
|
|
27,641
|
|
|
6.12
|
|
|
845
|
|
Total mortgage-backed securities
|
|
123,368
|
|
|
3.29
|
|
|
2,029
|
|
|
144,696
|
|
|
3.51
|
|
|
2,540
|
|
Other debt and equity securities
|
|
47,938
|
|
|
3.47
|
|
|
827
|
|
|
48,944
|
|
|
3.68
|
|
|
895
|
|
Total available-for-sale securities
|
|
246,294
|
|
|
3.28
|
|
|
4,039
|
|
|
242,877
|
|
|
3.64
|
|
|
4,413
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
43,685
|
|
|
2.20
|
|
|
477
|
|
|
5,993
|
|
|
2.20
|
|
|
65
|
|
Securities of U.S. states and political subdivisions
|
|
2,019
|
|
|
5.16
|
|
|
52
|
|
|
4
|
|
|
5.97
|
|
|
—
|
|
Federal agency mortgage-backed securities
|
|
16,208
|
|
|
1.95
|
|
|
158
|
|
|
6,125
|
|
|
2.93
|
|
|
90
|
|
Other debt securities
|
|
6,530
|
|
|
1.71
|
|
|
55
|
|
|
5,807
|
|
|
1.88
|
|
|
54
|
|
Total held-to-maturity securities
|
|
68,442
|
|
|
2.18
|
|
|
742
|
|
|
17,929
|
|
|
2.34
|
|
|
209
|
|
Total investment securities
|
|
314,736
|
|
|
3.04
|
|
|
4,781
|
|
|
260,806
|
|
|
3.55
|
|
|
4,622
|
|
Mortgages held for sale (4)
|
|
21,530
|
|
|
3.59
|
|
|
386
|
|
|
17,696
|
|
|
4.13
|
|
|
365
|
|
Loans held for sale (4)
|
|
683
|
|
|
3.08
|
|
|
10
|
|
|
134
|
|
|
4.08
|
|
|
3
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
229,627
|
|
|
3.32
|
|
|
3,783
|
|
|
196,570
|
|
|
3.41
|
|
|
3,328
|
|
Commercial and industrial - Non U.S.
|
|
45,093
|
|
|
1.90
|
|
|
426
|
|
|
42,616
|
|
|
1.99
|
|
|
421
|
|
Real estate mortgage
|
|
112,298
|
|
|
3.52
|
|
|
1,963
|
|
|
112,810
|
|
|
3.58
|
|
|
2,006
|
|
Real estate construction
|
|
20,135
|
|
|
3.83
|
|
|
383
|
|
|
17,265
|
|
|
4.28
|
|
|
366
|
|
Lease financing
|
|
12,341
|
|
|
5.06
|
|
|
312
|
|
|
12,206
|
|
|
5.90
|
|
|
360
|
|
Total commercial
|
|
419,494
|
|
|
3.30
|
|
|
6,867
|
|
|
381,467
|
|
|
3.42
|
|
|
6,481
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
265,923
|
|
|
4.12
|
|
|
5,481
|
|
|
259,737
|
|
|
4.19
|
|
|
5,434
|
|
Real estate 1-4 family junior lien mortgage
|
|
57,968
|
|
|
4.25
|
|
|
1,224
|
|
|
64,155
|
|
|
4.31
|
|
|
1,372
|
|
Credit card
|
|
30,376
|
|
|
11.74
|
|
|
1,768
|
|
|
26,363
|
|
|
12.14
|
|
|
1,588
|
|
Automobile
|
|
56,492
|
|
|
5.91
|
|
|
1,657
|
|
|
52,642
|
|
|
6.42
|
|
|
1,676
|
|
Other revolving credit and installment
|
|
36,620
|
|
|
5.94
|
|
|
1,079
|
|
|
43,072
|
|
|
5.03
|
|
|
1,076
|
|
Total consumer
|
|
447,379
|
|
|
5.03
|
|
|
11,209
|
|
|
445,969
|
|
|
5.02
|
|
|
11,146
|
|
Total loans (4)
|
|
866,873
|
|
|
4.19
|
|
|
18,076
|
|
|
827,436
|
|
|
4.28
|
|
|
17,627
|
|
Other
|
|
4,795
|
|
|
5.27
|
|
|
127
|
|
|
4,595
|
|
|
5.73
|
|
|
131
|
|
Total earning assets
|
|
$
|
1,545,318
|
|
|
3.21
|
%
|
|
$
|
24,701
|
|
|
1,383,546
|
|
|
3.46
|
%
|
|
$
|
23,848
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
38,851
|
|
|
0.05
|
%
|
|
$
|
10
|
|
|
38,506
|
|
|
0.07
|
%
|
|
$
|
13
|
|
Market rate and other savings
|
|
616,643
|
|
|
0.06
|
|
|
184
|
|
|
581,489
|
|
|
0.07
|
|
|
206
|
|
Savings certificates
|
|
33,525
|
|
|
0.69
|
|
|
116
|
|
|
39,639
|
|
|
0.87
|
|
|
171
|
|
Other time deposits
|
|
54,381
|
|
|
0.41
|
|
|
111
|
|
|
47,174
|
|
|
0.42
|
|
|
98
|
|
Deposits in foreign offices
|
|
104,932
|
|
|
0.13
|
|
|
69
|
|
|
92,650
|
|
|
0.14
|
|
|
66
|
|
Total interest-bearing deposits
|
|
848,332
|
|
|
0.12
|
|
|
490
|
|
|
799,458
|
|
|
0.14
|
|
|
554
|
|
Short-term borrowings
|
|
78,141
|
|
|
0.10
|
|
|
39
|
|
|
56,686
|
|
|
0.10
|
|
|
27
|
|
Long-term debt
|
|
184,432
|
|
|
1.33
|
|
|
1,224
|
|
|
156,528
|
|
|
1.59
|
|
|
1,239
|
|
Other liabilities
|
|
16,648
|
|
|
2.17
|
|
|
180
|
|
|
13,226
|
|
|
2.72
|
|
|
180
|
|
Total interest-bearing liabilities
|
|
1,127,553
|
|
|
0.34
|
|
|
1,933
|
|
|
1,025,898
|
|
|
0.39
|
|
|
2,000
|
|
Portion of noninterest-bearing funding sources
|
|
417,765
|
|
|
—
|
|
|
—
|
|
|
357,648
|
|
|
—
|
|
|
—
|
|
Total funding sources
|
|
$
|
1,545,318
|
|
|
0.25
|
|
|
1,933
|
|
|
1,383,546
|
|
|
0.29
|
|
|
2,000
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)(6)
|
|
|
|
|
2.96
|
%
|
|
$
|
22,768
|
|
|
|
|
|
3.17
|
%
|
|
$
|
21,848
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
17,262
|
|
|
|
|
|
|
|
|
16,159
|
|
|
|
|
|
|
|
Goodwill
|
|
25,705
|
|
|
|
|
|
|
|
|
25,668
|
|
|
|
|
|
|
|
Other
|
|
130,312
|
|
|
|
|
|
|
|
|
119,687
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
173,279
|
|
|
|
|
|
|
|
|
161,514
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
331,745
|
|
|
|
|
|
|
|
|
290,004
|
|
|
|
|
|
|
|
Other liabilities
|
|
69,779
|
|
|
|
|
|
|
|
|
52,065
|
|
|
|
|
|
|
|
Total equity
|
|
189,520
|
|
|
|
|
|
|
|
|
177,093
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
(417,765
|
)
|
|
|
|
|
|
|
|
(357,648
|
)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
173,279
|
|
|
|
|
|
|
|
|
161,514
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,718,597
|
|
|
|
|
|
|
|
|
1,545,060
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.25% for the six months ended June
30, 2015 and 2014. The average three-month London Interbank
Offered Rate (LIBOR) was 0.27% and 0.23% for the same periods,
respectively.
|
|
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(5) Includes taxable-equivalent adjustments of $512 million and
$442 million for the six months ended June 30, 2015 and 2014,
respectively, primarily related to tax-exempt income on certain
loans and securities. The federal statutory tax rate was 35% for
the periods presented.
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
Quarter ended
|
|
|
|
|
Jun 30, 2015
|
|
|
Mar 31, 2015
|
|
|
Dec 31, 2014
|
|
|
Sep 30, 2014
|
|
|
Jun 30, 2014
|
|
|
($ in billions)
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
267.1
|
|
|
0.28
|
%
|
|
$
|
275.7
|
|
|
0.28
|
%
|
|
$
|
268.1
|
|
|
0.28
|
%
|
|
$
|
253.2
|
|
|
0.28
|
%
|
|
$
|
229.8
|
|
|
0.28
|
%
|
|
Trading assets
|
|
67.6
|
|
|
2.91
|
|
|
63.0
|
|
|
2.88
|
|
|
60.4
|
|
|
3.21
|
|
|
57.5
|
|
|
3.00
|
|
|
54.4
|
|
|
3.05
|
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
31.7
|
|
|
1.58
|
|
|
26.2
|
|
|
1.55
|
|
|
19.5
|
|
|
1.55
|
|
|
8.8
|
|
|
1.69
|
|
|
6.6
|
|
|
1.78
|
|
|
Securities of U.S. states and political subdivisions
|
|
47.1
|
|
|
4.13
|
|
|
44.9
|
|
|
4.20
|
|
|
43.9
|
|
|
4.30
|
|
|
43.3
|
|
|
4.24
|
|
|
42.7
|
|
|
4.26
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
98.0
|
|
|
2.65
|
|
|
102.2
|
|
|
2.76
|
|
|
109.3
|
|
|
2.78
|
|
|
113.0
|
|
|
2.76
|
|
|
116.5
|
|
|
2.85
|
|
|
Residential and commercial
|
|
22.7
|
|
|
5.84
|
|
|
23.9
|
|
|
5.71
|
|
|
24.7
|
|
|
5.89
|
|
|
26.0
|
|
|
5.98
|
|
|
27.3
|
|
|
6.11
|
|
|
Total mortgage-backed securities
|
|
120.7
|
|
|
3.25
|
|
|
126.1
|
|
|
3.32
|
|
|
134.0
|
|
|
3.36
|
|
|
139.0
|
|
|
3.36
|
|
|
143.8
|
|
|
3.47
|
|
|
Other debt and equity securities
|
|
48.8
|
|
|
3.51
|
|
|
47.1
|
|
|
3.43
|
|
|
45.0
|
|
|
3.87
|
|
|
47.1
|
|
|
3.45
|
|
|
48.7
|
|
|
3.76
|
|
|
Total available-for-sale securities
|
|
248.3
|
|
|
3.25
|
|
|
244.3
|
|
|
3.32
|
|
|
242.4
|
|
|
3.48
|
|
|
238.2
|
|
|
3.48
|
|
|
241.8
|
|
|
3.62
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
44.5
|
|
|
2.19
|
|
|
42.9
|
|
|
2.21
|
|
|
32.9
|
|
|
2.25
|
|
|
23.7
|
|
|
2.22
|
|
|
10.8
|
|
|
2.20
|
|
|
Securities of U.S. states and political subdivisions
|
|
2.1
|
|
|
5.17
|
|
|
1.9
|
|
|
5.16
|
|
|
0.9
|
|
|
4.92
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Federal agency mortgage-backed securities
|
|
21.0
|
|
|
2.00
|
|
|
11.3
|
|
|
1.87
|
|
|
5.6
|
|
|
2.07
|
|
|
5.9
|
|
|
2.23
|
|
|
6.1
|
|
|
2.74
|
|
|
Other debt securities
|
|
6.3
|
|
|
1.70
|
|
|
6.8
|
|
|
1.72
|
|
|
6.1
|
|
|
1.81
|
|
|
5.9
|
|
|
1.83
|
|
|
5.2
|
|
|
1.90
|
|
|
Total held-to-maturity securities
|
|
73.9
|
|
|
2.18
|
|
|
62.9
|
|
|
2.19
|
|
|
45.5
|
|
|
2.22
|
|
|
35.5
|
|
|
2.17
|
|
|
22.1
|
|
|
2.28
|
|
|
Total investment securities
|
|
322.2
|
|
|
3.01
|
|
|
307.2
|
|
|
3.08
|
|
|
287.9
|
|
|
3.28
|
|
|
273.7
|
|
|
3.31
|
|
|
263.9
|
|
|
3.51
|
|
|
Mortgages held for sale
|
|
23.5
|
|
|
3.57
|
|
|
19.6
|
|
|
3.61
|
|
|
19.2
|
|
|
3.90
|
|
|
21.5
|
|
|
4.01
|
|
|
18.8
|
|
|
4.16
|
|
|
Loans held for sale
|
|
0.7
|
|
|
3.51
|
|
|
0.7
|
|
|
2.67
|
|
|
7.0
|
|
|
1.43
|
|
|
9.5
|
|
|
2.10
|
|
|
0.2
|
|
|
2.55
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
231.5
|
|
|
3.36
|
|
|
227.7
|
|
|
3.28
|
|
|
218.3
|
|
|
3.32
|
|
|
207.6
|
|
|
3.29
|
|
|
199.2
|
|
|
3.39
|
|
|
Commercial and industrial - Non U.S.
|
|
45.1
|
|
|
1.93
|
|
|
45.1
|
|
|
1.88
|
|
|
43.0
|
|
|
2.03
|
|
|
42.4
|
|
|
2.11
|
|
|
43.0
|
|
|
2.06
|
|
|
Real estate mortgage
|
|
113.1
|
|
|
3.48
|
|
|
111.5
|
|
|
3.57
|
|
|
112.3
|
|
|
3.69
|
|
|
113.0
|
|
|
3.69
|
|
|
112.8
|
|
|
3.61
|
|
|
Real estate construction
|
|
20.8
|
|
|
4.12
|
|
|
19.5
|
|
|
3.52
|
|
|
18.3
|
|
|
4.33
|
|
|
17.8
|
|
|
3.94
|
|
|
17.5
|
|
|
4.18
|
|
|
Lease financing
|
|
12.4
|
|
|
5.16
|
|
|
12.3
|
|
|
4.95
|
|
|
12.3
|
|
|
5.35
|
|
|
12.3
|
|
|
5.38
|
|
|
12.2
|
|
|
5.68
|
|
|
Total commercial
|
|
422.9
|
|
|
3.33
|
|
|
416.1
|
|
|
3.26
|
|
|
404.2
|
|
|
3.39
|
|
|
393.1
|
|
|
3.37
|
|
|
384.7
|
|
|
3.42
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
266.0
|
|
|
4.12
|
|
|
265.8
|
|
|
4.13
|
|
|
264.8
|
|
|
4.16
|
|
|
262.2
|
|
|
4.23
|
|
|
260.0
|
|
|
4.20
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
57.0
|
|
|
4.23
|
|
|
58.9
|
|
|
4.27
|
|
|
60.2
|
|
|
4.28
|
|
|
61.6
|
|
|
4.30
|
|
|
63.3
|
|
|
4.31
|
|
|
Credit card
|
|
30.4
|
|
|
11.69
|
|
|
30.4
|
|
|
11.78
|
|
|
29.5
|
|
|
11.71
|
|
|
27.7
|
|
|
11.96
|
|
|
26.4
|
|
|
11.97
|
|
|
Automobile
|
|
57.0
|
|
|
5.88
|
|
|
56.0
|
|
|
5.95
|
|
|
55.4
|
|
|
6.08
|
|
|
54.6
|
|
|
6.19
|
|
|
53.5
|
|
|
6.34
|
|
|
Other revolving credit and installment
|
|
37.1
|
|
|
5.88
|
|
|
36.1
|
|
|
6.01
|
|
|
35.3
|
|
|
6.01
|
|
|
34.0
|
|
|
6.03
|
|
|
43.1
|
|
|
5.07
|
|
|
Total consumer
|
|
447.5
|
|
|
5.02
|
|
|
447.2
|
|
|
5.05
|
|
|
445.2
|
|
|
5.06
|
|
|
440.1
|
|
|
5.11
|
|
|
446.3
|
|
|
5.02
|
|
|
Total loans
|
|
870.4
|
|
|
4.20
|
|
|
863.3
|
|
|
4.19
|
|
|
849.4
|
|
|
4.27
|
|
|
833.2
|
|
|
4.29
|
|
|
831.0
|
|
|
4.28
|
|
|
Other
|
|
4.8
|
|
|
5.14
|
|
|
4.7
|
|
|
5.41
|
|
|
4.8
|
|
|
5.30
|
|
|
4.7
|
|
|
5.41
|
|
|
4.5
|
|
|
5.74
|
|
|
Total earning assets
|
|
$
|
1,556.3
|
|
|
3.22
|
%
|
|
$
|
1,534.2
|
|
|
3.21
|
%
|
|
$
|
1,496.8
|
|
|
3.31
|
%
|
|
$
|
1,453.3
|
|
|
3.34
|
%
|
|
$
|
1,402.6
|
|
|
3.43
|
%
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
38.6
|
|
|
0.05
|
%
|
|
$
|
39.2
|
|
|
0.05
|
%
|
|
$
|
40.5
|
|
|
0.06
|
%
|
|
$
|
41.4
|
|
|
0.07
|
%
|
|
$
|
40.2
|
|
|
0.07
|
%
|
|
Market rate and other savings
|
|
619.8
|
|
|
0.06
|
|
|
613.4
|
|
|
0.06
|
|
|
593.9
|
|
|
0.07
|
|
|
586.4
|
|
|
0.07
|
|
|
583.9
|
|
|
0.07
|
|
|
Savings certificates
|
|
32.5
|
|
|
0.63
|
|
|
34.6
|
|
|
0.75
|
|
|
35.9
|
|
|
0.80
|
|
|
37.3
|
|
|
0.84
|
|
|
38.8
|
|
|
0.86
|
|
|
Other time deposits
|
|
52.2
|
|
|
0.42
|
|
|
56.5
|
|
|
0.39
|
|
|
56.1
|
|
|
0.39
|
|
|
55.1
|
|
|
0.39
|
|
|
48.5
|
|
|
0.41
|
|
|
Deposits in foreign offices
|
|
104.3
|
|
|
0.13
|
|
|
105.5
|
|
|
0.14
|
|
|
99.3
|
|
|
0.15
|
|
|
98.9
|
|
|
0.14
|
|
|
94.2
|
|
|
0.15
|
|
|
Total interest-bearing deposits
|
|
847.4
|
|
|
0.11
|
|
|
849.2
|
|
|
0.12
|
|
|
825.7
|
|
|
0.13
|
|
|
819.1
|
|
|
0.13
|
|
|
805.6
|
|
|
0.14
|
|
|
Short-term borrowings
|
|
84.5
|
|
|
0.09
|
|
|
71.7
|
|
|
0.11
|
|
|
64.7
|
|
|
0.12
|
|
|
62.3
|
|
|
0.10
|
|
|
58.9
|
|
|
0.10
|
|
|
Long-term debt
|
|
185.1
|
|
|
1.34
|
|
|
183.8
|
|
|
1.32
|
|
|
183.3
|
|
|
1.35
|
|
|
173.0
|
|
|
1.46
|
|
|
159.2
|
|
|
1.56
|
|
|
Other liabilities
|
|
16.4
|
|
|
2.03
|
|
|
16.9
|
|
|
2.30
|
|
|
15.6
|
|
|
2.44
|
|
|
15.5
|
|
|
2.73
|
|
|
13.6
|
|
|
2.73
|
|
|
Total interest-bearing liabilities
|
|
1,133.4
|
|
|
0.34
|
|
|
1,121.6
|
|
|
0.35
|
|
|
1,089.3
|
|
|
0.37
|
|
|
1,069.9
|
|
|
0.38
|
|
|
1,037.3
|
|
|
0.39
|
|
|
Portion of noninterest-bearing funding sources
|
|
422.9
|
|
|
—
|
|
|
412.6
|
|
|
—
|
|
|
407.5
|
|
|
—
|
|
|
383.4
|
|
|
—
|
|
|
365.3
|
|
|
—
|
|
|
Total funding sources
|
|
$
|
1,556.3
|
|
|
0.25
|
|
|
$
|
1,534.2
|
|
|
0.26
|
|
|
$
|
1,496.8
|
|
|
0.27
|
|
|
$
|
1,453.3
|
|
|
0.28
|
|
|
$
|
1,402.6
|
|
|
0.28
|
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
2.97
|
%
|
|
|
|
|
2.95
|
%
|
|
|
|
|
3.04
|
%
|
|
|
|
|
3.06
|
%
|
|
|
|
|
3.15
|
%
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
17.5
|
|
|
|
|
|
17.1
|
|
|
|
|
|
16.9
|
|
|
|
|
|
16.2
|
|
|
|
|
|
15.9
|
|
|
|
|
|
Goodwill
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
25.7
|
|
|
|
|
|
Other
|
|
129.8
|
|
|
|
|
|
130.8
|
|
|
|
|
|
124.4
|
|
|
|
|
|
122.7
|
|
|
|
|
|
119.8
|
|
|
|
|
|
Total noninterest-earnings assets
|
|
$
|
173.0
|
|
|
|
|
|
173.6
|
|
|
|
|
|
167.0
|
|
|
|
|
|
164.6
|
|
|
|
|
|
161.4
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
337.9
|
|
|
|
|
|
325.6
|
|
|
|
|
|
324.1
|
|
|
|
|
|
308.0
|
|
|
|
|
|
295.9
|
|
|
|
|
|
Other liabilities
|
|
67.6
|
|
|
|
|
|
72.0
|
|
|
|
|
|
65.7
|
|
|
|
|
|
57.9
|
|
|
|
|
|
51.1
|
|
|
|
|
|
Total equity
|
|
190.4
|
|
|
|
|
|
188.6
|
|
|
|
|
|
184.7
|
|
|
|
|
|
182.1
|
|
|
|
|
|
179.7
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
(422.9
|
)
|
|
|
|
|
(412.6
|
)
|
|
|
|
|
(407.5
|
)
|
|
|
|
|
(383.4
|
)
|
|
|
|
|
(365.3
|
)
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
173.0
|
|
|
|
|
|
173.6
|
|
|
|
|
|
167.0
|
|
|
|
|
|
164.6
|
|
|
|
|
|
161.4
|
|
|
|
|
|
Total assets
|
|
$
|
1,729.3
|
|
|
|
|
|
1,707.8
|
|
|
|
|
|
1,663.8
|
|
|
|
|
|
1,617.9
|
|
|
|
|
|
1,564.0
|
|
|
|
|
|
(1) Our average prime rate was 3.25% for quarters ended June 30,
and March 31, 2015, and December 31, September 30, and June 30,
2014. The average three-month London Interbank Offered Rate
(LIBOR) was 0.28%, 0.26%, 0.24%, 0.23% and 0.23% 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 June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
|
(in millions)
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
|
Service charges on deposit accounts
|
|
$
|
1,289
|
|
|
1,283
|
|
|
—
|
|
|
$
|
2,504
|
|
|
2,498
|
|
|
—
|
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
2,399
|
|
|
2,280
|
|
|
5
|
|
|
4,779
|
|
|
4,521
|
|
|
6
|
|
|
Trust and investment management
|
|
861
|
|
|
838
|
|
|
3
|
|
|
1,713
|
|
|
1,682
|
|
|
2
|
|
|
Investment banking
|
|
450
|
|
|
491
|
|
|
(8
|
)
|
|
895
|
|
|
818
|
|
|
9
|
|
|
Total trust and investment fees
|
|
3,710
|
|
|
3,609
|
|
|
3
|
|
|
7,387
|
|
|
7,021
|
|
|
5
|
|
|
Card fees
|
|
930
|
|
|
847
|
|
|
10
|
|
|
1,801
|
|
|
1,631
|
|
|
10
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
304
|
|
|
342
|
|
|
(11
|
)
|
|
613
|
|
|
709
|
|
|
(14
|
)
|
|
Merchant processing fees
|
|
202
|
|
|
183
|
|
|
10
|
|
|
389
|
|
|
355
|
|
|
10
|
|
|
Cash network fees
|
|
132
|
|
|
128
|
|
|
3
|
|
|
257
|
|
|
248
|
|
|
4
|
|
|
Commercial real estate brokerage commissions
|
|
141
|
|
|
99
|
|
|
42
|
|
|
270
|
|
|
171
|
|
|
58
|
|
|
Letters of credit fees
|
|
90
|
|
|
92
|
|
|
(2
|
)
|
|
178
|
|
|
188
|
|
|
(5
|
)
|
|
All other fees
|
|
238
|
|
|
244
|
|
|
(2
|
)
|
|
478
|
|
|
464
|
|
|
3
|
|
|
Total other fees
|
|
1,107
|
|
|
1,088
|
|
|
2
|
|
|
2,185
|
|
|
2,135
|
|
|
2
|
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
514
|
|
|
1,035
|
|
|
(50
|
)
|
|
1,037
|
|
|
1,973
|
|
|
(47
|
)
|
|
Net gains on mortgage loan origination/sales activities
|
|
1,191
|
|
|
688
|
|
|
73
|
|
|
2,215
|
|
|
1,260
|
|
|
76
|
|
|
Total mortgage banking
|
|
1,705
|
|
|
1,723
|
|
|
(1
|
)
|
|
3,252
|
|
|
3,233
|
|
|
1
|
|
|
Insurance
|
|
461
|
|
|
453
|
|
|
2
|
|
|
891
|
|
|
885
|
|
|
1
|
|
|
Net gains from trading activities
|
|
133
|
|
|
382
|
|
|
(65
|
)
|
|
541
|
|
|
814
|
|
|
(34
|
)
|
|
Net gains on debt securities
|
|
181
|
|
|
71
|
|
|
155
|
|
|
459
|
|
|
154
|
|
|
198
|
|
|
Net gains from equity investments
|
|
517
|
|
|
449
|
|
|
15
|
|
|
887
|
|
|
1,296
|
|
|
(32
|
)
|
|
Lease income
|
|
155
|
|
|
129
|
|
|
20
|
|
|
287
|
|
|
262
|
|
|
10
|
|
|
Life insurance investment income
|
|
145
|
|
|
138
|
|
|
5
|
|
|
290
|
|
|
270
|
|
|
7
|
|
|
All other
|
|
(285
|
)
|
|
103
|
|
|
NM
|
|
|
(144
|
)
|
|
86
|
|
|
NM
|
|
|
Total
|
|
$
|
10,048
|
|
|
10,275
|
|
|
(2
|
)
|
|
$
|
20,340
|
|
|
20,285
|
|
|
—
|
|
|
NM - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
|
(in millions)
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
|
2015
|
|
|
2014
|
|
|
Change
|
|
|
Salaries
|
|
$
|
3,936
|
|
|
3,795
|
|
|
4
|
%
|
|
$
|
7,787
|
|
|
7,523
|
|
|
4
|
%
|
|
Commission and incentive compensation
|
|
2,606
|
|
|
2,445
|
|
|
7
|
|
|
5,291
|
|
|
4,861
|
|
|
9
|
|
|
Employee benefits
|
|
1,106
|
|
|
1,170
|
|
|
(5
|
)
|
|
2,583
|
|
|
2,542
|
|
|
2
|
|
|
Equipment
|
|
470
|
|
|
445
|
|
|
6
|
|
|
964
|
|
|
935
|
|
|
3
|
|
|
Net occupancy
|
|
710
|
|
|
722
|
|
|
(2
|
)
|
|
1,433
|
|
|
1,464
|
|
|
(2
|
)
|
|
Core deposit and other intangibles
|
|
312
|
|
|
349
|
|
|
(11
|
)
|
|
624
|
|
|
690
|
|
|
(10
|
)
|
|
FDIC and other deposit assessments
|
|
222
|
|
|
225
|
|
|
(1
|
)
|
|
470
|
|
|
468
|
|
|
—
|
|
|
Outside professional services
|
|
627
|
|
|
646
|
|
|
(3
|
)
|
|
1,175
|
|
|
1,205
|
|
|
(2
|
)
|
|
Operating losses
|
|
521
|
|
|
364
|
|
|
43
|
|
|
816
|
|
|
523
|
|
|
56
|
|
|
Outside data processing
|
|
269
|
|
|
259
|
|
|
4
|
|
|
522
|
|
|
500
|
|
|
4
|
|
|
Contract services
|
|
238
|
|
|
249
|
|
|
(4
|
)
|
|
463
|
|
|
483
|
|
|
(4
|
)
|
|
Travel and entertainment
|
|
172
|
|
|
243
|
|
|
(29
|
)
|
|
330
|
|
|
462
|
|
|
(29
|
)
|
|
Postage, stationery and supplies
|
|
180
|
|
|
170
|
|
|
6
|
|
|
351
|
|
|
361
|
|
|
(3
|
)
|
|
Advertising and promotion
|
|
169
|
|
|
187
|
|
|
(10
|
)
|
|
287
|
|
|
305
|
|
|
(6
|
)
|
|
Foreclosed assets
|
|
117
|
|
|
130
|
|
|
(10
|
)
|
|
252
|
|
|
262
|
|
|
(4
|
)
|
|
Telecommunications
|
|
113
|
|
|
111
|
|
|
2
|
|
|
224
|
|
|
225
|
|
|
—
|
|
|
Insurance
|
|
156
|
|
|
140
|
|
|
11
|
|
|
296
|
|
|
265
|
|
|
12
|
|
|
Operating leases
|
|
64
|
|
|
54
|
|
|
19
|
|
|
126
|
|
|
104
|
|
|
21
|
|
|
All other
|
|
481
|
|
|
490
|
|
|
(2
|
)
|
|
982
|
|
|
964
|
|
|
2
|
|
|
Total
|
|
$
|
12,469
|
|
|
12,194
|
|
|
2
|
|
|
$
|
24,976
|
|
|
24,142
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Service charges on deposit accounts
|
|
$
|
1,289
|
|
|
1,215
|
|
|
1,241
|
|
|
1,311
|
|
|
1,283
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
2,399
|
|
|
2,380
|
|
|
2,335
|
|
|
2,327
|
|
|
2,280
|
|
Trust and investment management
|
|
861
|
|
|
852
|
|
|
849
|
|
|
856
|
|
|
838
|
|
Investment banking
|
|
450
|
|
|
445
|
|
|
521
|
|
|
371
|
|
|
491
|
|
Total trust and investment fees
|
|
3,710
|
|
|
3,677
|
|
|
3,705
|
|
|
3,554
|
|
|
3,609
|
|
Card fees
|
|
930
|
|
|
871
|
|
|
925
|
|
|
875
|
|
|
847
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
304
|
|
|
309
|
|
|
311
|
|
|
296
|
|
|
342
|
|
Merchant processing fees
|
|
202
|
|
|
187
|
|
|
187
|
|
|
184
|
|
|
183
|
|
Cash network fees
|
|
132
|
|
|
125
|
|
|
125
|
|
|
134
|
|
|
128
|
|
Commercial real estate brokerage commissions
|
|
141
|
|
|
129
|
|
|
155
|
|
|
143
|
|
|
99
|
|
Letters of credit fees
|
|
90
|
|
|
88
|
|
|
102
|
|
|
100
|
|
|
92
|
|
All other fees
|
|
238
|
|
|
240
|
|
|
244
|
|
|
233
|
|
|
244
|
|
Total other fees
|
|
1,107
|
|
|
1,078
|
|
|
1,124
|
|
|
1,090
|
|
|
1,088
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
514
|
|
|
523
|
|
|
685
|
|
|
679
|
|
|
1,035
|
|
Net gains on mortgage loan origination/sales activities
|
|
1,191
|
|
|
1,024
|
|
|
830
|
|
|
954
|
|
|
688
|
|
Total mortgage banking
|
|
1,705
|
|
|
1,547
|
|
|
1,515
|
|
|
1,633
|
|
|
1,723
|
|
Insurance
|
|
461
|
|
|
430
|
|
|
382
|
|
|
388
|
|
|
453
|
|
Net gains from trading activities
|
|
133
|
|
|
408
|
|
|
179
|
|
|
168
|
|
|
382
|
|
Net gains on debt securities
|
|
181
|
|
|
278
|
|
|
186
|
|
|
253
|
|
|
71
|
|
Net gains from equity investments
|
|
517
|
|
|
370
|
|
|
372
|
|
|
712
|
|
|
449
|
|
Lease income
|
|
155
|
|
|
132
|
|
|
127
|
|
|
137
|
|
|
129
|
|
Life insurance investment income
|
|
145
|
|
|
145
|
|
|
145
|
|
|
143
|
|
|
138
|
|
All other
|
|
(285
|
)
|
|
141
|
|
|
362
|
|
|
8
|
|
|
103
|
|
Total
|
|
$
|
10,048
|
|
|
10,292
|
|
|
10,263
|
|
|
10,272
|
|
|
10,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Salaries
|
|
$
|
3,936
|
|
|
3,851
|
|
|
3,938
|
|
|
3,914
|
|
|
3,795
|
|
Commission and incentive compensation
|
|
2,606
|
|
|
2,685
|
|
|
2,582
|
|
|
2,527
|
|
|
2,445
|
|
Employee benefits
|
|
1,106
|
|
|
1,477
|
|
|
1,124
|
|
|
931
|
|
|
1,170
|
|
Equipment
|
|
470
|
|
|
494
|
|
|
581
|
|
|
457
|
|
|
445
|
|
Net occupancy
|
|
710
|
|
|
723
|
|
|
730
|
|
|
731
|
|
|
722
|
|
Core deposit and other intangibles
|
|
312
|
|
|
312
|
|
|
338
|
|
|
342
|
|
|
349
|
|
FDIC and other deposit assessments
|
|
222
|
|
|
248
|
|
|
231
|
|
|
229
|
|
|
225
|
|
Outside professional services
|
|
627
|
|
|
548
|
|
|
800
|
|
|
684
|
|
|
646
|
|
Operating losses
|
|
521
|
|
|
295
|
|
|
309
|
|
|
417
|
|
|
364
|
|
Outside data processing
|
|
269
|
|
|
253
|
|
|
270
|
|
|
264
|
|
|
259
|
|
Contract services
|
|
238
|
|
|
225
|
|
|
245
|
|
|
247
|
|
|
249
|
|
Travel and entertainment
|
|
172
|
|
|
158
|
|
|
216
|
|
|
226
|
|
|
243
|
|
Postage, stationery and supplies
|
|
180
|
|
|
171
|
|
|
190
|
|
|
182
|
|
|
170
|
|
Advertising and promotion
|
|
169
|
|
|
118
|
|
|
195
|
|
|
153
|
|
|
187
|
|
Foreclosed assets
|
|
117
|
|
|
135
|
|
|
164
|
|
|
157
|
|
|
130
|
|
Telecommunications
|
|
113
|
|
|
111
|
|
|
106
|
|
|
122
|
|
|
111
|
|
Insurance
|
|
156
|
|
|
140
|
|
|
60
|
|
|
97
|
|
|
140
|
|
Operating leases
|
|
64
|
|
|
62
|
|
|
58
|
|
|
58
|
|
|
54
|
|
All other
|
|
481
|
|
|
501
|
|
|
510
|
|
|
510
|
|
|
490
|
|
Total
|
|
$
|
12,469
|
|
|
12,507
|
|
|
12,647
|
|
|
12,248
|
|
|
12,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
|
|
(in millions, except shares)
|
|
Jun 30,
2015
|
|
|
Dec 31,
2014
|
|
|
%
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
19,687
|
|
|
19,571
|
|
|
1
|
%
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
232,247
|
|
|
258,429
|
|
|
(10
|
)
|
|
Trading assets
|
|
80,236
|
|
|
78,255
|
|
|
3
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
260,667
|
|
|
257,442
|
|
|
1
|
|
|
Held-to-maturity, at cost
|
|
80,102
|
|
|
55,483
|
|
|
44
|
|
|
Mortgages held for sale
|
|
25,447
|
|
|
19,536
|
|
|
30
|
|
|
Loans held for sale
|
|
621
|
|
|
722
|
|
|
(14
|
)
|
|
Loans
|
|
888,459
|
|
|
862,551
|
|
|
3
|
|
|
Allowance for loan losses
|
|
(11,754
|
)
|
|
(12,319
|
)
|
|
(5
|
)
|
|
Net loans
|
|
876,705
|
|
|
850,232
|
|
|
3
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
12,661
|
|
|
12,738
|
|
|
(1
|
)
|
|
Amortized
|
|
1,262
|
|
|
1,242
|
|
|
2
|
|
|
Premises and equipment, net
|
|
8,692
|
|
|
8,743
|
|
|
(1
|
)
|
|
Goodwill
|
|
25,705
|
|
|
25,705
|
|
|
—
|
|
|
Other assets
|
|
96,585
|
|
|
99,057
|
|
|
(2
|
)
|
|
Total assets
|
|
$
|
1,720,617
|
|
|
1,687,155
|
|
|
2
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
343,582
|
|
|
321,963
|
|
|
7
|
|
|
Interest-bearing deposits
|
|
842,246
|
|
|
846,347
|
|
|
—
|
|
|
Total deposits
|
|
1,185,828
|
|
|
1,168,310
|
|
|
1
|
|
|
Short-term borrowings
|
|
82,963
|
|
|
63,518
|
|
|
31
|
|
|
Accrued expenses and other liabilities
|
|
81,399
|
|
|
86,122
|
|
|
(5
|
)
|
|
Long-term debt
|
|
179,751
|
|
|
183,943
|
|
|
(2
|
)
|
|
Total liabilities
|
|
1,529,941
|
|
|
1,501,893
|
|
|
2
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
21,649
|
|
|
19,213
|
|
|
13
|
|
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares;
issued 5,481,811,474 shares and 5,481,811,474 shares
|
|
9,136
|
|
|
9,136
|
|
|
—
|
|
|
Additional paid-in capital
|
|
60,154
|
|
|
60,537
|
|
|
(1
|
)
|
|
Retained earnings
|
|
114,093
|
|
|
107,040
|
|
|
7
|
|
|
Cumulative other comprehensive income
|
|
2,068
|
|
|
3,518
|
|
|
(41
|
)
|
|
Treasury stock – 336,576,217 shares and 311,462,276 shares
|
|
(15,707
|
)
|
|
(13,690
|
)
|
|
15
|
|
|
Unearned ESOP shares
|
|
(1,835
|
)
|
|
(1,360
|
)
|
|
35
|
|
|
Total Wells Fargo stockholders’ equity
|
|
189,558
|
|
|
184,394
|
|
|
3
|
|
|
Noncontrolling interests
|
|
1,118
|
|
|
868
|
|
|
29
|
|
|
Total equity
|
|
190,676
|
|
|
185,262
|
|
|
3
|
|
|
Total liabilities and equity
|
|
$
|
1,720,617
|
|
|
1,687,155
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
19,687
|
|
|
19,793
|
|
|
19,571
|
|
|
18,032
|
|
|
20,635
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
232,247
|
|
|
291,317
|
|
|
258,429
|
|
|
261,932
|
|
|
238,719
|
|
|
Trading assets
|
|
80,236
|
|
|
79,278
|
|
|
78,255
|
|
|
67,755
|
|
|
71,674
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
260,667
|
|
|
257,603
|
|
|
257,442
|
|
|
248,251
|
|
|
248,961
|
|
|
Held-to-maturity, at cost
|
|
80,102
|
|
|
67,133
|
|
|
55,483
|
|
|
40,758
|
|
|
30,108
|
|
|
Mortgages held for sale
|
|
25,447
|
|
|
23,606
|
|
|
19,536
|
|
|
20,178
|
|
|
21,064
|
|
|
Loans held for sale
|
|
621
|
|
|
681
|
|
|
722
|
|
|
9,292
|
|
|
9,762
|
|
|
Loans
|
|
888,459
|
|
|
861,231
|
|
|
862,551
|
|
|
838,883
|
|
|
828,942
|
|
|
Allowance for loan losses
|
|
(11,754
|
)
|
|
(12,176
|
)
|
|
(12,319
|
)
|
|
(12,681
|
)
|
|
(13,101
|
)
|
|
Net loans
|
|
876,705
|
|
|
849,055
|
|
|
850,232
|
|
|
826,202
|
|
|
815,841
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
12,661
|
|
|
11,739
|
|
|
12,738
|
|
|
14,031
|
|
|
13,900
|
|
|
Amortized
|
|
1,262
|
|
|
1,252
|
|
|
1,242
|
|
|
1,224
|
|
|
1,196
|
|
|
Premises and equipment, net
|
|
8,692
|
|
|
8,696
|
|
|
8,743
|
|
|
8,768
|
|
|
8,977
|
|
|
Goodwill
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
25,705
|
|
|
Other assets
|
|
96,585
|
|
|
101,879
|
|
|
99,057
|
|
|
94,727
|
|
|
92,332
|
|
|
Total assets
|
|
$
|
1,720,617
|
|
|
1,737,737
|
|
|
1,687,155
|
|
|
1,636,855
|
|
|
1,598,874
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
343,582
|
|
|
335,858
|
|
|
321,963
|
|
|
313,791
|
|
|
308,099
|
|
|
Interest-bearing deposits
|
|
842,246
|
|
|
860,805
|
|
|
846,347
|
|
|
816,834
|
|
|
810,478
|
|
|
Total deposits
|
|
1,185,828
|
|
|
1,196,663
|
|
|
1,168,310
|
|
|
1,130,625
|
|
|
1,118,577
|
|
|
Short-term borrowings
|
|
82,963
|
|
|
77,697
|
|
|
63,518
|
|
|
62,927
|
|
|
61,849
|
|
|
Accrued expenses and other liabilities
|
|
81,399
|
|
|
90,121
|
|
|
86,122
|
|
|
75,727
|
|
|
69,021
|
|
|
Long-term debt
|
|
179,751
|
|
|
183,292
|
|
|
183,943
|
|
|
184,586
|
|
|
167,878
|
|
|
Total liabilities
|
|
1,529,941
|
|
|
1,547,773
|
|
|
1,501,893
|
|
|
1,453,865
|
|
|
1,417,325
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
21,649
|
|
|
21,998
|
|
|
19,213
|
|
|
19,379
|
|
|
18,749
|
|
|
Common stock
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
Additional paid-in capital
|
|
60,154
|
|
|
59,980
|
|
|
60,537
|
|
|
60,100
|
|
|
59,926
|
|
|
Retained earnings
|
|
114,093
|
|
|
110,676
|
|
|
107,040
|
|
|
103,494
|
|
|
99,926
|
|
|
Cumulative other comprehensive income
|
|
2,068
|
|
|
3,777
|
|
|
3,518
|
|
|
3,118
|
|
|
4,117
|
|
|
Treasury stock
|
|
(15,707
|
)
|
|
(14,556
|
)
|
|
(13,690
|
)
|
|
(11,206
|
)
|
|
(9,271
|
)
|
|
Unearned ESOP shares
|
|
(1,835
|
)
|
|
(2,215
|
)
|
|
(1,360
|
)
|
|
(1,540
|
)
|
|
(1,724
|
)
|
|
Total Wells Fargo stockholders’ equity
|
|
189,558
|
|
|
188,796
|
|
|
184,394
|
|
|
182,481
|
|
|
180,859
|
|
|
Noncontrolling interests
|
|
1,118
|
|
|
1,168
|
|
|
868
|
|
|
509
|
|
|
690
|
|
|
Total equity
|
|
190,676
|
|
|
189,964
|
|
|
185,262
|
|
|
182,990
|
|
|
181,549
|
|
|
Total liabilities and equity
|
|
$
|
1,720,617
|
|
|
1,737,737
|
|
|
1,687,155
|
|
|
1,636,855
|
|
|
1,598,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
$
|
35,944
|
|
|
30,031
|
|
|
25,804
|
|
|
14,794
|
|
|
6,414
|
|
Securities of U.S. states and political subdivisions
|
|
48,298
|
|
|
47,380
|
|
|
44,944
|
|
|
45,805
|
|
|
44,779
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
100,078
|
|
|
103,217
|
|
|
110,089
|
|
|
112,613
|
|
|
116,908
|
|
Residential and commercial
|
|
23,770
|
|
|
24,712
|
|
|
26,263
|
|
|
27,491
|
|
|
29,433
|
|
Total mortgage-backed securities
|
|
123,848
|
|
|
127,929
|
|
|
136,352
|
|
|
140,104
|
|
|
146,341
|
|
Other debt securities
|
|
50,090
|
|
|
48,759
|
|
|
46,666
|
|
|
45,013
|
|
|
48,312
|
|
Total available-for-sale debt securities
|
|
258,180
|
|
|
254,099
|
|
|
253,766
|
|
|
245,716
|
|
|
245,846
|
|
Marketable equity securities
|
|
2,487
|
|
|
3,504
|
|
|
3,676
|
|
|
2,535
|
|
|
3,115
|
|
Total available-for-sale securities
|
|
260,667
|
|
|
257,603
|
|
|
257,442
|
|
|
248,251
|
|
|
248,961
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
44,645
|
|
|
44,244
|
|
|
40,886
|
|
|
28,887
|
|
|
17,777
|
|
Securities of U.S. states and political subdivisions
|
|
2,174
|
|
|
2,092
|
|
|
1,962
|
|
|
123
|
|
|
41
|
|
Federal agency mortgage-backed securities
|
|
27,577
|
|
|
14,311
|
|
|
5,476
|
|
|
5,770
|
|
|
6,030
|
|
Other debt securities
|
|
5,706
|
|
|
6,486
|
|
|
7,159
|
|
|
5,978
|
|
|
6,260
|
|
Total held-to-maturity debt securities
|
|
80,102
|
|
|
67,133
|
|
|
55,483
|
|
|
40,758
|
|
|
30,108
|
|
Total investment securities
|
|
$
|
340,769
|
|
|
324,736
|
|
|
312,925
|
|
|
289,009
|
|
|
279,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER LOANS
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
284,817
|
|
|
271,088
|
|
|
271,795
|
|
|
254,199
|
|
|
248,192
|
|
Real estate mortgage
|
|
119,695
|
|
|
111,848
|
|
|
111,996
|
|
|
112,064
|
|
|
113,564
|
|
Real estate construction
|
|
21,309
|
|
|
19,981
|
|
|
18,728
|
|
|
18,090
|
|
|
17,272
|
|
Lease financing
|
|
12,201
|
|
|
12,382
|
|
|
12,307
|
|
|
12,006
|
|
|
12,252
|
|
Total commercial
|
|
438,022
|
|
|
415,299
|
|
|
414,826
|
|
|
396,359
|
|
|
391,280
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
267,868
|
|
|
265,213
|
|
|
265,386
|
|
|
263,337
|
|
|
260,114
|
|
Real estate 1-4 family junior lien mortgage
|
|
56,164
|
|
|
57,839
|
|
|
59,717
|
|
|
60,875
|
|
|
62,487
|
|
Credit card
|
|
31,135
|
|
|
30,078
|
|
|
31,119
|
|
|
28,280
|
|
|
27,226
|
|
Automobile
|
|
57,801
|
|
|
56,339
|
|
|
55,740
|
|
|
55,242
|
|
|
54,095
|
|
Other revolving credit and installment
|
|
37,469
|
|
|
36,463
|
|
|
35,763
|
|
|
34,790
|
|
|
33,740
|
|
Total consumer
|
|
450,437
|
|
|
445,932
|
|
|
447,725
|
|
|
442,524
|
|
|
437,662
|
|
Total loans (1)
|
|
$
|
888,459
|
|
|
861,231
|
|
|
862,551
|
|
|
838,883
|
|
|
828,942
|
|
(1) Includes $21.6 billion, $22.4 billion, $23.3 billion, $24.2
billion, and $25.0 billion of purchased credit-impaired (PCI)
loans at June 30 and March 31, 2015, and December 31, September 30
and June 30, 2014, respectively.
|
|
|
|
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign
loan portfolio is commercial loans. Loans are classified as
foreign primarily based on whether the borrower's primary address
is outside of the United States. The following table presents
total commercial foreign loans outstanding by class of financing
receivable.
|
|
|
|
|
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
44,838
|
|
|
45,325
|
|
|
44,707
|
|
|
41,829
|
|
|
42,136
|
|
Real estate mortgage
|
|
9,125
|
|
|
5,171
|
|
|
4,776
|
|
|
4,856
|
|
|
5,146
|
|
Real estate construction
|
|
389
|
|
|
241
|
|
|
218
|
|
|
209
|
|
|
216
|
|
Lease financing
|
|
301
|
|
|
307
|
|
|
336
|
|
|
332
|
|
|
344
|
|
Total commercial foreign loans
|
|
$
|
54,653
|
|
|
51,044
|
|
|
50,037
|
|
|
47,226
|
|
|
47,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
1,079
|
|
|
663
|
|
|
538
|
|
|
614
|
|
|
724
|
|
Real estate mortgage
|
|
1,250
|
|
|
1,324
|
|
|
1,490
|
|
|
1,636
|
|
|
1,805
|
|
Real estate construction
|
|
165
|
|
|
182
|
|
|
187
|
|
|
217
|
|
|
239
|
|
Lease financing
|
|
28
|
|
|
23
|
|
|
24
|
|
|
27
|
|
|
29
|
|
Total commercial
|
|
2,522
|
|
|
2,192
|
|
|
2,239
|
|
|
2,494
|
|
|
2,797
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
8,045
|
|
|
8,345
|
|
|
8,583
|
|
|
8,785
|
|
|
9,026
|
|
Real estate 1-4 family junior lien mortgage
|
|
1,710
|
|
|
1,798
|
|
|
1,848
|
|
|
1,903
|
|
|
1,965
|
|
Automobile
|
|
126
|
|
|
133
|
|
|
137
|
|
|
143
|
|
|
150
|
|
Other revolving credit and installment
|
|
40
|
|
|
42
|
|
|
41
|
|
|
40
|
|
|
34
|
|
Total consumer
|
|
9,921
|
|
|
10,318
|
|
|
10,609
|
|
|
10,871
|
|
|
11,175
|
|
Total nonaccrual loans (1)(2)(3)
|
|
$
|
12,443
|
|
|
12,510
|
|
|
12,848
|
|
|
13,365
|
|
|
13,972
|
|
As a percentage of total loans
|
|
1.40
|
%
|
|
1.45
|
|
|
1.49
|
|
|
1.59
|
|
|
1.69
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed (4)
|
|
$
|
588
|
|
|
772
|
|
|
982
|
|
|
1,140
|
|
|
1,257
|
|
Non-government insured/guaranteed
|
|
1,370
|
|
|
1,557
|
|
|
1,627
|
|
|
1,691
|
|
|
1,748
|
|
Total foreclosed assets
|
|
1,958
|
|
|
2,329
|
|
|
2,609
|
|
|
2,831
|
|
|
3,005
|
|
Total nonperforming assets
|
|
$
|
14,401
|
|
|
14,839
|
|
|
15,457
|
|
|
16,196
|
|
|
16,977
|
|
As a percentage of total loans
|
|
1.62
|
%
|
|
1.72
|
|
|
1.79
|
|
|
1.93
|
|
|
2.05
|
|
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
|
|
(2) Excludes PCI loans because they continue to earn interest
income from accretable yield, independent of performance in
accordance with their contractual terms.
|
|
(3) Real estate 1-4 family mortgage loans predominantly insured by
the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) and student loans
predominantly guaranteed by agencies on behalf of the U.S.
Department of Education under the Federal Family Education Loan
Program are not placed on nonaccrual status because they are
insured or guaranteed.
|
|
(4) Consistent with regulatory reporting requirements, foreclosed
real estate resulting from government insured/guaranteed loans are
classified as nonperforming. Both principal and interest related
to these foreclosed real estate assets are collectible because the
loans were predominantly insured by the FHA or guaranteed by the
VA. Foreclosure of certain government guaranteed residential real
estate mortgage loans that meet criteria specified by Accounting
Standards Update (ASU) 2014-14, Classification of Certain
Government-Guaranteed Mortgage Loans Upon Foreclosure,
effective as of January 1, 2014 are excluded from this table and
included in Accounts Receivable in Other Assets. For more
information on ASU 2014-14 and the classification of certain
government-guaranteed mortgage loans upon foreclosure, see Note 1
(Summary of Significant Accounting Policies) to Financial
Statements in our 2014 Form 10-K.
|
|
|
|
Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Loans 90 days or more past due and still accruing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (excluding PCI)(1):
|
|
$
|
15,161
|
|
|
16,344
|
|
|
17,810
|
|
|
18,295
|
|
|
18,582
|
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
14,359
|
|
|
15,453
|
|
|
16,827
|
|
|
16,628
|
|
|
16,978
|
|
Less: Student loans guaranteed under the FFELP (4)
|
|
46
|
|
|
50
|
|
|
63
|
|
|
721
|
|
|
707
|
|
Total, not government insured/guaranteed
|
|
$
|
756
|
|
|
841
|
|
|
920
|
|
|
946
|
|
|
897
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
17
|
|
|
31
|
|
|
31
|
|
|
35
|
|
|
52
|
|
Real estate mortgage
|
|
10
|
|
|
43
|
|
|
16
|
|
|
37
|
|
|
53
|
|
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
16
|
|
Total commercial
|
|
27
|
|
|
74
|
|
|
47
|
|
|
90
|
|
|
121
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
220
|
|
|
221
|
|
|
260
|
|
|
327
|
|
|
311
|
|
Real estate 1-4 family junior lien mortgage (3)
|
|
65
|
|
|
55
|
|
|
83
|
|
|
78
|
|
|
70
|
|
Credit card
|
|
304
|
|
|
352
|
|
|
364
|
|
|
302
|
|
|
266
|
|
Automobile
|
|
51
|
|
|
47
|
|
|
73
|
|
|
64
|
|
|
48
|
|
Other revolving credit and installment
|
|
89
|
|
|
92
|
|
|
93
|
|
|
85
|
|
|
81
|
|
Total consumer
|
|
729
|
|
|
767
|
|
|
873
|
|
|
856
|
|
|
776
|
|
Total, not government insured/guaranteed
|
|
$
|
756
|
|
|
841
|
|
|
920
|
|
|
946
|
|
|
897
|
|
(1) PCI loans totaled $3.4 billion, $3.6 billion, $3.7 billion,
$4.0 billion and $4.0 billion, at June 30, and March 31, 2015 and
December 31, September 30, and June 30, 2014, respectively.
|
|
(2) Represents loans whose repayments are predominantly insured by
the FHA or guaranteed by the VA.
|
|
(3) Includes mortgages held for sale 90 days or more past due and
still accruing.
|
|
(4) Represents loans whose repayments are predominantly guaranteed
by agencies on behalf of the U.S. Department of Education under
the FFELP. In fourth quarter 2014, substantially all government
guaranteed loans were sold.
|
|
|
Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED
CREDIT-IMPAIRED (PCI) LOANS
|
|
|
|
Loans purchased with evidence of credit deterioration since
origination and for which it is probable that all contractually
required payments will not be collected are considered to be
credit impaired. PCI loans predominantly represent loans acquired
from Wachovia that were deemed to be credit impaired. Evidence of
credit quality deterioration as of the purchase date may include
statistics such as past due and nonaccrual status, recent borrower
credit scores and recent LTV percentages. PCI loans are initially
measured at fair value, which includes estimated future credit
losses expected to be incurred over the life of the loan.
Accordingly, the associated allowance for credit losses related to
these loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios
cannot be used to compare a portfolio that includes PCI loans
against one that does not, or to compare ratios across quarters or
years. The ratios particularly affected include the allowance for
loan losses and allowance for credit losses as percentages of
loans, of nonaccrual loans and of nonperforming assets; nonaccrual
loans and nonperforming assets as a percentage of total loans; and
net charge-offs as a percentage of loans.
The excess of cash flows expected to be collected over the
carrying value of PCI loans is referred to as the accretable yield
and is accreted into interest income over the estimated lives of
the PCI loans using the effective yield method. The accretable
yield is affected by:
|
-
Changes in interest rate indices for variable rate PCI loans -
Expected future cash flows are based on the variable rates in
effect at the time of the quarterly assessment of expected cash
flows;
-
Changes in prepayment assumptions - Prepayments affect the
estimated life of PCI loans which may change the amount of
interest income, and possibly principal, expected to be
collected; and
-
Changes in the expected principal and interest payments over the
estimated life - Updates to changes in expected cash flows are
driven by the credit outlook and actions taken with borrowers.
Changes in expected future cash flows from loan modifications
are included in the regular evaluations of cash flows expected
to be collected.
The change in the accretable yield related to PCI loans is
presented in the following table.
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
Balance, December 31, 2008
|
|
$
|
10,447
|
|
|
Addition of accretable yield due to acquisitions
|
|
132
|
|
|
Accretion into interest income (1)
|
|
(12,783
|
)
|
|
Accretion into noninterest income due to sales (2)
|
|
(430
|
)
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows
|
|
8,568
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
11,856
|
|
|
Balance, December 31, 2014
|
|
17,790
|
|
|
Addition of accretable yield due to acquisitions
|
|
—
|
|
|
Accretion into interest income (1)
|
|
(764
|
)
|
|
Accretion into noninterest income due to sales (2)
|
|
(28
|
)
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (4)
|
|
30
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
(58
|
)
|
|
Balance, June 30, 2015
|
|
$
|
16,970
|
|
|
Balance, March 31, 2015
|
|
$
|
17,325
|
|
|
Addition of accretable yield due to acquisitions
|
|
—
|
|
|
Accretion into interest income (1)
|
|
(366
|
)
|
|
Accretion into noninterest income due to sales (2)
|
|
—
|
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (4)
|
|
8
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (3)
|
|
3
|
|
|
Balance, June 30, 2015
|
|
$
|
16,970
|
|
|
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
|
|
|
(2) Includes accretable yield released as a result of sales to
third parties, which is included in noninterest income.
|
|
|
(3) Represents changes in cash flows expected to be collected due
to the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
|
|
|
(4) At June 30, 2015, our carrying value for PCI loans totaled
$21.6 billion and the remainder of nonaccretable difference
established in purchase accounting totaled $3.0 billion. The
nonaccretable difference absorbs losses of contractual amounts
that exceed our carrying value for PCI loans.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
June 30, 2015
|
|
|
|
|
PCI loans
|
|
|
All other loans
|
|
|
(in millions)
|
|
Adjusted
unpaid
principal
balance (2)
|
|
|
Current
LTV
ratio (3)
|
|
|
Carrying
value (4)
|
|
|
Ratio of
carrying
value to
current
value (5)
|
|
|
Carrying
value (4)
|
|
|
Ratio of
carrying
value to
current
value (5)
|
|
|
California
|
|
$
|
17,529
|
|
|
76
|
%
|
|
$
|
14,308
|
|
|
62
|
%
|
|
$
|
10,583
|
|
|
55
|
%
|
|
Florida
|
|
1,996
|
|
|
85
|
|
|
1,450
|
|
|
60
|
|
|
2,188
|
|
|
69
|
|
|
New Jersey
|
|
839
|
|
|
83
|
|
|
687
|
|
|
63
|
|
|
1,425
|
|
|
70
|
|
|
New York
|
|
550
|
|
|
76
|
|
|
487
|
|
|
61
|
|
|
683
|
|
|
66
|
|
|
Texas
|
|
220
|
|
|
59
|
|
|
200
|
|
|
53
|
|
|
851
|
|
|
47
|
|
|
Other states
|
|
4,063
|
|
|
81
|
|
|
3,288
|
|
|
65
|
|
|
6,072
|
|
|
68
|
|
|
Total Pick-a-Pay loans
|
|
$
|
25,197
|
|
|
78
|
|
|
$
|
20,420
|
|
|
62
|
|
|
$
|
21,802
|
|
|
61
|
|
|
(1) The individual states shown in this table represent the top
five states based on the total net carrying value of the
Pick-a-Pay loans at the beginning of 2015.
|
|
|
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
|
|
|
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
|
|
|
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
|
|
|
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
|
|
|
|
|
|
|
|
|
|
|
NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy Wachovia commercial and industrial and commercial real estate
PCI loans (1)
|
|
$
|
592
|
|
|
699
|
|
|
1,125
|
|
|
1,465
|
|
|
1,499
|
|
Total commercial
|
|
592
|
|
|
699
|
|
|
1,125
|
|
|
1,465
|
|
|
1,499
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pick-a-Pay mortgage (1)(2)
|
|
42,222
|
|
|
43,745
|
|
|
45,002
|
|
|
46,389
|
|
|
47,965
|
|
Legacy Wells Fargo Financial debt consolidation (3)
|
|
10,702
|
|
|
11,067
|
|
|
11,417
|
|
|
11,781
|
|
|
12,169
|
|
Liquidating home equity
|
|
2,566
|
|
|
2,744
|
|
|
2,910
|
|
|
3,083
|
|
|
3,290
|
|
Legacy Wachovia other PCI loans (1)
|
|
262
|
|
|
276
|
|
|
300
|
|
|
320
|
|
|
336
|
|
Legacy Wells Fargo Financial indirect auto (3)
|
|
15
|
|
|
23
|
|
|
34
|
|
|
54
|
|
|
85
|
|
Total consumer
|
|
55,767
|
|
|
57,855
|
|
|
59,663
|
|
|
61,627
|
|
|
63,845
|
|
Total non-strategic and liquidating loan portfolios
|
|
$
|
56,359
|
|
|
58,554
|
|
|
60,788
|
|
|
63,092
|
|
|
65,344
|
|
(1) Net of purchase accounting adjustments related to PCI loans.
|
|
(2) Includes PCI loans of $20.4 billion, $21.0 billion, $21.5
billion, $22.1 billion and $22.7 billion at June 30 and March 31,
2015, and December 31, September 30, and June 30, 2014,
respectively.
|
|
(3) When we refer to "Legacy Wells Fargo", we mean Wells Fargo
excluding Wachovia Corporation (Wachovia).
|
|
|
|
Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended June 30,
|
|
|
Six months ended June 30,
|
|
|
(in millions)
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
Balance, beginning of period
|
|
$
|
13,013
|
|
|
14,414
|
|
|
13,169
|
|
|
14,971
|
|
|
Provision for credit losses
|
|
300
|
|
|
217
|
|
|
908
|
|
|
542
|
|
|
Interest income on certain impaired loans (1)
|
|
(50
|
)
|
|
(55
|
)
|
|
(102
|
)
|
|
(111
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
(154
|
)
|
|
(146
|
)
|
|
(287
|
)
|
|
(309
|
)
|
|
Real estate mortgage
|
|
(16
|
)
|
|
(16
|
)
|
|
(39
|
)
|
|
(36
|
)
|
|
Real estate construction
|
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
Lease financing
|
|
(3
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(7
|
)
|
|
Total commercial
|
|
(174
|
)
|
|
(168
|
)
|
|
(334
|
)
|
|
(356
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
(119
|
)
|
|
(193
|
)
|
|
(249
|
)
|
|
(416
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
|
(163
|
)
|
|
(220
|
)
|
|
(342
|
)
|
|
(469
|
)
|
|
Credit card
|
|
(284
|
)
|
|
(266
|
)
|
|
(562
|
)
|
|
(533
|
)
|
|
Automobile
|
|
(150
|
)
|
|
(143
|
)
|
|
(345
|
)
|
|
(323
|
)
|
|
Other revolving credit and installment
|
|
(151
|
)
|
|
(171
|
)
|
|
(305
|
)
|
|
(348
|
)
|
|
Total consumer
|
|
(867
|
)
|
|
(993
|
)
|
|
(1,803
|
)
|
|
(2,089
|
)
|
|
Total loan charge-offs
|
|
(1,041
|
)
|
|
(1,161
|
)
|
|
(2,137
|
)
|
|
(2,445
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
73
|
|
|
86
|
|
|
142
|
|
|
200
|
|
|
Real estate mortgage
|
|
31
|
|
|
26
|
|
|
65
|
|
|
68
|
|
|
Real estate construction
|
|
7
|
|
|
23
|
|
|
17
|
|
|
47
|
|
|
Lease financing
|
|
1
|
|
|
2
|
|
|
4
|
|
|
5
|
|
|
Total commercial
|
|
112
|
|
|
137
|
|
|
228
|
|
|
320
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
52
|
|
|
56
|
|
|
99
|
|
|
109
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
69
|
|
|
60
|
|
|
125
|
|
|
117
|
|
|
Credit card
|
|
41
|
|
|
55
|
|
|
80
|
|
|
91
|
|
|
Automobile
|
|
82
|
|
|
97
|
|
|
176
|
|
|
187
|
|
|
Other revolving credit and installment
|
|
35
|
|
|
39
|
|
|
71
|
|
|
79
|
|
|
Total consumer
|
|
279
|
|
|
307
|
|
|
551
|
|
|
583
|
|
|
Total loan recoveries
|
|
391
|
|
|
444
|
|
|
779
|
|
|
903
|
|
|
Net loan charge-offs (2)
|
|
(650
|
)
|
|
(717
|
)
|
|
(1,358
|
)
|
|
(1,542
|
)
|
|
Allowances related to business combinations/other
|
|
1
|
|
|
(25
|
)
|
|
(3
|
)
|
|
(26
|
)
|
|
Balance, end of period
|
|
$
|
12,614
|
|
|
13,834
|
|
|
12,614
|
|
|
13,834
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
11,754
|
|
|
13,101
|
|
|
11,754
|
|
|
13,101
|
|
|
Allowance for unfunded credit commitments
|
|
860
|
|
|
733
|
|
|
860
|
|
|
733
|
|
|
Allowance for credit losses (3)
|
|
$
|
12,614
|
|
|
13,834
|
|
|
12,614
|
|
|
13,834
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans (2)
|
|
0.30
|
%
|
|
0.35
|
|
|
0.32
|
|
|
0.38
|
|
|
Allowance for loan losses as a percentage of total loans (3)
|
|
1.32
|
|
|
1.58
|
|
|
1.32
|
|
|
1.58
|
|
|
Allowance for credit losses as a percentage of total loans (3)
|
|
1.42
|
|
|
1.67
|
|
|
1.42
|
|
|
1.67
|
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
reductions in allowance as interest income.
|
|
|
(2) For PCI loans, charge-offs are only recorded to the extent
that losses exceed the purchase accounting estimates.
|
|
|
(3) The allowance for credit losses includes $7 million and $8
million at June 30, 2015 and 2014, respectively, related to PCI
loans acquired from Wachovia. Loans acquired from Wachovia are
included in total loans net of related purchase accounting net
write-downs.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
Quarter ended
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
Balance, beginning of quarter
|
|
$
|
13,013
|
|
|
13,169
|
|
|
13,481
|
|
|
13,834
|
|
|
14,414
|
|
|
Provision for credit losses
|
|
300
|
|
|
608
|
|
|
485
|
|
|
368
|
|
|
217
|
|
|
Interest income on certain impaired loans (1)
|
|
(50
|
)
|
|
(52
|
)
|
|
(48
|
)
|
|
(52
|
)
|
|
(55
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
(154
|
)
|
|
(133
|
)
|
|
(161
|
)
|
|
(157
|
)
|
|
(146
|
)
|
|
Real estate mortgage
|
|
(16
|
)
|
|
(23
|
)
|
|
(19
|
)
|
|
(11
|
)
|
|
(16
|
)
|
|
Real estate construction
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
Lease financing
|
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
Total commercial
|
|
(174
|
)
|
|
(160
|
)
|
|
(185
|
)
|
|
(176
|
)
|
|
(168
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
(119
|
)
|
|
(130
|
)
|
|
(138
|
)
|
|
(167
|
)
|
|
(193
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
|
(163
|
)
|
|
(179
|
)
|
|
(193
|
)
|
|
(202
|
)
|
|
(220
|
)
|
|
Credit card
|
|
(284
|
)
|
|
(278
|
)
|
|
(256
|
)
|
|
(236
|
)
|
|
(266
|
)
|
|
Automobile
|
|
(150
|
)
|
|
(195
|
)
|
|
(214
|
)
|
|
(192
|
)
|
|
(143
|
)
|
|
Other revolving credit and installment
|
|
(151
|
)
|
|
(154
|
)
|
|
(160
|
)
|
|
(160
|
)
|
|
(171
|
)
|
|
Total consumer
|
|
(867
|
)
|
|
(936
|
)
|
|
(961
|
)
|
|
(957
|
)
|
|
(993
|
)
|
|
Total loan charge-offs
|
|
(1,041
|
)
|
|
(1,096
|
)
|
|
(1,146
|
)
|
|
(1,133
|
)
|
|
(1,161
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
73
|
|
|
69
|
|
|
79
|
|
|
90
|
|
|
86
|
|
|
Real estate mortgage
|
|
31
|
|
|
34
|
|
|
44
|
|
|
48
|
|
|
26
|
|
|
Real estate construction
|
|
7
|
|
|
10
|
|
|
28
|
|
|
61
|
|
|
23
|
|
|
Lease financing
|
|
1
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
Total commercial
|
|
112
|
|
|
116
|
|
|
153
|
|
|
200
|
|
|
137
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
52
|
|
|
47
|
|
|
50
|
|
|
53
|
|
|
56
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
69
|
|
|
56
|
|
|
59
|
|
|
62
|
|
|
60
|
|
|
Credit card
|
|
41
|
|
|
39
|
|
|
35
|
|
|
35
|
|
|
55
|
|
|
Automobile
|
|
82
|
|
|
94
|
|
|
82
|
|
|
80
|
|
|
97
|
|
|
Other revolving credit and installment
|
|
35
|
|
|
36
|
|
|
32
|
|
|
35
|
|
|
39
|
|
|
Total consumer
|
|
279
|
|
|
272
|
|
|
258
|
|
|
265
|
|
|
307
|
|
|
Total loan recoveries
|
|
391
|
|
|
388
|
|
|
411
|
|
|
465
|
|
|
444
|
|
|
Net loan charge-offs
|
|
(650
|
)
|
|
(708
|
)
|
|
(735
|
)
|
|
(668
|
)
|
|
(717
|
)
|
|
Allowances related to business combinations/other
|
|
1
|
|
|
(4
|
)
|
|
(14
|
)
|
|
(1
|
)
|
|
(25
|
)
|
|
Balance, end of quarter
|
|
$
|
12,614
|
|
|
13,013
|
|
|
13,169
|
|
|
13,481
|
|
|
13,834
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
11,754
|
|
|
12,176
|
|
|
12,319
|
|
|
12,681
|
|
|
13,101
|
|
|
Allowance for unfunded credit commitments
|
|
860
|
|
|
837
|
|
|
850
|
|
|
800
|
|
|
733
|
|
|
Allowance for credit losses
|
|
$
|
12,614
|
|
|
13,013
|
|
|
13,169
|
|
|
13,481
|
|
|
13,834
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
0.30
|
%
|
|
0.33
|
|
|
0.34
|
|
|
0.32
|
|
|
0.35
|
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
1.32
|
|
|
1.41
|
|
|
1.43
|
|
|
1.51
|
|
|
1.58
|
|
|
Nonaccrual loans
|
|
94
|
|
|
97
|
|
|
96
|
|
|
95
|
|
|
94
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
82
|
|
|
82
|
|
|
80
|
|
|
78
|
|
|
77
|
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
1.42
|
|
|
1.51
|
|
|
1.53
|
|
|
1.61
|
|
|
1.67
|
|
|
Nonaccrual loans
|
|
101
|
|
|
104
|
|
|
103
|
|
|
101
|
|
|
99
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
88
|
|
|
88
|
|
|
85
|
|
|
83
|
|
|
81
|
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
reductions in allowance as interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
(in billions)
|
|
|
Jun 30,
2015
|
|
Mar 31,
2015
|
|
Dec 31,
2014
|
|
|
Total equity
|
|
|
$
|
190.7
|
|
190.0
|
|
185.3
|
|
|
Noncontrolling interests
|
|
|
(1.1
|
)
|
(1.2
|
)
|
(0.9
|
)
|
|
Total Wells Fargo stockholders’ equity
|
|
|
189.6
|
|
188.8
|
|
184.4
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
(20.0
|
)
|
(20.0
|
)
|
(18.0
|
)
|
|
Cumulative other comprehensive income (2)
|
|
|
(1.1
|
)
|
(1.9
|
)
|
(2.6
|
)
|
|
Goodwill and other intangible assets (2)(3)
|
|
|
(27.2
|
)
|
(26.9
|
)
|
(26.3
|
)
|
|
Investment in certain subsidiaries and other
|
|
|
(0.4
|
)
|
(0.8
|
)
|
(0.4
|
)
|
|
Common Equity Tier 1 (transition amount) under Basel III (1)
|
|
|
140.9
|
|
139.2
|
|
137.1
|
|
|
Adjustments from transition amount to fully phased-in under Basel
III (4):
|
|
|
|
|
|
|
|
|
|
Cumulative other comprehensive income
|
|
|
1.1
|
|
1.9
|
|
2.4
|
|
|
Other
|
|
|
(2.1
|
)
|
(2.1
|
)
|
(2.8
|
)
|
|
Total adjustments
|
|
|
(1.0
|
)
|
(0.2
|
)
|
(0.4
|
)
|
|
Common Equity Tier 1 (fully phased-in) under Basel III
|
|
(A)
|
$
|
139.9
|
|
139.0
|
|
136.7
|
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (5)(6)
|
|
(B)
|
$
|
1,336.5
|
|
1,326.3
|
|
1,310.5
|
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (6)
|
|
(A)/(B)
|
10.5
|
%
|
10.5
|
|
10.4
|
|
|
(1) Basel III capital rules, adopted by the Federal Reserve Board
on July 2, 2013, revised the definition of capital, increased
minimum capital ratios, and introduced a minimum Common Equity
Tier 1 (CET1) ratio. These rules established a new comprehensive
capital framework for U.S. banking organizations that implements
the Basel III capital framework and certain provisions of the
Dodd-Frank Act. The rules are being phased in through the end of
2021. Fully phased-in capital ratios and RWAs are calculated
assuming the full phase-in of the Basel III capital rules. CET1 is
a non-GAAP financial measure that is used by investors, analysts
and bank regulatory agencies to assess the capital position of
financial services companies. Management reviews CET1 along with
other measures of capital as part of its financial analyses and
has included this non-GAAP financial information, and the
corresponding reconciliation to total equity, because of current
interest in such information on the part of market participants.
|
|
|
(2) Under transition provisions to Basel III, cumulative other
comprehensive income is included in CET1 over a specified phase-in
period. In addition, certain intangible assets included in CET1
are phased out over a specified period.
|
|
|
(3) Goodwill and other intangible assets are net of any associated
deferred tax liabilities.
|
|
|
(4) Assumes cumulative other comprehensive income is fully phased
in and certain other intangible assets are fully phased out under
Basel III capital rules.
|
|
|
(5) The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach, which replaced Basel I, and
the Advanced Approach applicable to certain institutions. Under
the final rules, we are subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. Our CET1 ratio
calculated under each of these approaches has been converging,
primarily driven by differences in RWAs. Final determination as to
which approach will produce the lower CET1 as of June 30, 2015 is
subject to detailed analysis of considerable data. The capital
ratios for March 31, 2015 and December 31, 2014 were calculated
using the Basel III definition of capital and under the Basel III
Advanced Approach RWAs.
|
|
|
(6) The Company’s June 30, 2015 RWAs and capital ratio are
preliminary estimates.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
|
|
(income/expense in millions,
average balances in billions)
|
|
Community
Banking
|
|
|
Wholesale
Banking
|
|
|
Wealth, Brokerage
and Retirement
|
|
|
Other (2)
|
|
|
Consolidated
Company
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Quarter ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
$
|
7,698
|
|
|
7,386
|
|
|
3,068
|
|
|
2,953
|
|
|
865
|
|
|
775
|
|
|
(361
|
)
|
|
(323
|
)
|
|
11,270
|
|
|
10,791
|
|
Provision (reversal of provision) for credit losses
|
|
363
|
|
|
279
|
|
|
(58
|
)
|
|
(49
|
)
|
|
(10
|
)
|
|
(25
|
)
|
|
5
|
|
|
12
|
|
|
300
|
|
|
217
|
|
Noninterest income
|
|
4,963
|
|
|
5,220
|
|
|
3,015
|
|
|
2,993
|
|
|
2,874
|
|
|
2,775
|
|
|
(804
|
)
|
|
(713
|
)
|
|
10,048
|
|
|
10,275
|
|
Noninterest expense
|
|
7,164
|
|
|
7,020
|
|
|
3,295
|
|
|
3,203
|
|
|
2,775
|
|
|
2,695
|
|
|
(765
|
)
|
|
(724
|
)
|
|
12,469
|
|
|
12,194
|
|
Income (loss) before income tax expense (benefit)
|
|
5,134
|
|
|
5,307
|
|
|
2,846
|
|
|
2,792
|
|
|
974
|
|
|
880
|
|
|
(405
|
)
|
|
(324
|
)
|
|
8,549
|
|
|
8,655
|
|
Income tax expense (benefit)
|
|
1,707
|
|
|
1,820
|
|
|
840
|
|
|
838
|
|
|
369
|
|
|
334
|
|
|
(153
|
)
|
|
(123
|
)
|
|
2,763
|
|
|
2,869
|
|
Net income (loss) before noncontrolling interests
|
|
3,427
|
|
|
3,487
|
|
|
2,006
|
|
|
1,954
|
|
|
605
|
|
|
546
|
|
|
(252
|
)
|
|
(201
|
)
|
|
5,786
|
|
|
5,786
|
|
Less: Net income (loss) from noncontrolling interests
|
|
69
|
|
|
56
|
|
|
(5
|
)
|
|
2
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
60
|
|
Net income (loss)
|
|
$
|
3,358
|
|
|
3,431
|
|
|
2,011
|
|
|
1,952
|
|
|
602
|
|
|
544
|
|
|
(252
|
)
|
|
(201
|
)
|
|
5,719
|
|
|
5,726
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
$
|
506.5
|
|
|
505.4
|
|
|
343.6
|
|
|
308.1
|
|
|
59.3
|
|
|
51.0
|
|
|
(39.0
|
)
|
|
(33.5
|
)
|
|
870.4
|
|
|
831.0
|
|
Average assets
|
|
993.3
|
|
|
918.1
|
|
|
618.0
|
|
|
532.4
|
|
|
193.3
|
|
|
187.6
|
|
|
(75.3
|
)
|
|
(74.1
|
)
|
|
1,729.3
|
|
|
1,564.0
|
|
Average core deposits
|
|
685.7
|
|
|
639.8
|
|
|
304.2
|
|
|
265.8
|
|
|
159.4
|
|
|
153.0
|
|
|
(70.1
|
)
|
|
(66.9
|
)
|
|
1,079.2
|
|
|
991.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
$
|
15,259
|
|
|
14,661
|
|
|
5,989
|
|
|
5,844
|
|
|
1,726
|
|
|
1,543
|
|
|
(718
|
)
|
|
(642
|
)
|
|
22,256
|
|
|
21,406
|
|
Provision (reversal of provision) for credit losses
|
|
980
|
|
|
698
|
|
|
(64
|
)
|
|
(142
|
)
|
|
(13
|
)
|
|
(33
|
)
|
|
5
|
|
|
19
|
|
|
908
|
|
|
542
|
|
Noninterest income
|
|
10,186
|
|
|
10,538
|
|
|
6,006
|
|
|
5,682
|
|
|
5,746
|
|
|
5,475
|
|
|
(1,598
|
)
|
|
(1,410
|
)
|
|
20,340
|
|
|
20,285
|
|
Noninterest expense
|
|
14,228
|
|
|
13,794
|
|
|
6,704
|
|
|
6,418
|
|
|
5,606
|
|
|
5,406
|
|
|
(1,562
|
)
|
|
(1,476
|
)
|
|
24,976
|
|
|
24,142
|
|
Income (loss) before income tax expense (benefit)
|
|
10,237
|
|
|
10,707
|
|
|
5,355
|
|
|
5,250
|
|
|
1,879
|
|
|
1,645
|
|
|
(759
|
)
|
|
(595
|
)
|
|
16,712
|
|
|
17,007
|
|
Income tax expense (benefit)
|
|
3,071
|
|
|
3,196
|
|
|
1,546
|
|
|
1,552
|
|
|
713
|
|
|
624
|
|
|
(288
|
)
|
|
(226
|
)
|
|
5,042
|
|
|
5,146
|
|
Net income (loss) before noncontrolling interests
|
|
7,166
|
|
|
7,511
|
|
|
3,809
|
|
|
3,698
|
|
|
1,166
|
|
|
1,021
|
|
|
(471
|
)
|
|
(369
|
)
|
|
11,670
|
|
|
11,861
|
|
Less: Net income (loss) from noncontrolling interests
|
|
143
|
|
|
236
|
|
|
1
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
147
|
|
|
242
|
|
Net income (loss)
|
|
$
|
7,023
|
|
|
7,275
|
|
|
3,808
|
|
|
3,694
|
|
|
1,163
|
|
|
1,019
|
|
|
(471
|
)
|
|
(369
|
)
|
|
11,523
|
|
|
11,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
$
|
506.5
|
|
|
505.2
|
|
|
340.6
|
|
|
305.0
|
|
|
58.1
|
|
|
50.5
|
|
|
(38.3
|
)
|
|
(33.3
|
)
|
|
866.9
|
|
|
827.4
|
|
Average assets
|
|
993.2
|
|
|
905.5
|
|
|
606.5
|
|
|
524.9
|
|
|
194.5
|
|
|
189.1
|
|
|
(75.6
|
)
|
|
(74.4
|
)
|
|
1,718.6
|
|
|
1,545.1
|
|
Average core deposits
|
|
677.3
|
|
|
633.2
|
|
|
303.8
|
|
|
262.4
|
|
|
160.4
|
|
|
154.5
|
|
|
(70.3
|
)
|
|
(67.3
|
)
|
|
1,071.2
|
|
|
982.8
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
|
(2) Includes items not specific to a business segment and
elimination of certain items that are included in more than one
business segment, substantially all of which represents services
for wealth management customers provided in Community Banking
stores.
|
|
(3) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
Quarter ended
|
|
|
(income/expense in millions, average balances in billions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
7,698
|
|
|
7,561
|
|
|
7,576
|
|
|
7,472
|
|
|
7,386
|
|
|
Provision for credit losses
|
|
363
|
|
|
617
|
|
|
518
|
|
|
465
|
|
|
279
|
|
|
Noninterest income
|
|
4,963
|
|
|
5,223
|
|
|
5,259
|
|
|
5,356
|
|
|
5,220
|
|
|
Noninterest expense
|
|
7,164
|
|
|
7,064
|
|
|
7,281
|
|
|
7,051
|
|
|
7,020
|
|
|
Income before income tax expense
|
|
5,134
|
|
|
5,103
|
|
|
5,036
|
|
|
5,312
|
|
|
5,307
|
|
|
Income tax expense
|
|
1,707
|
|
|
1,364
|
|
|
1,545
|
|
|
1,609
|
|
|
1,820
|
|
|
Net income before noncontrolling interests
|
|
3,427
|
|
|
3,739
|
|
|
3,491
|
|
|
3,703
|
|
|
3,487
|
|
|
Less: Net income from noncontrolling interests
|
|
69
|
|
|
74
|
|
|
56
|
|
|
233
|
|
|
56
|
|
|
Segment net income
|
|
$
|
3,358
|
|
|
3,665
|
|
|
3,435
|
|
|
3,470
|
|
|
3,431
|
|
|
Average loans
|
|
$
|
506.5
|
|
|
506.4
|
|
|
503.8
|
|
|
498.6
|
|
|
505.4
|
|
|
Average assets
|
|
993.3
|
|
|
993.1
|
|
|
974.9
|
|
|
950.2
|
|
|
918.1
|
|
|
Average core deposits
|
|
685.7
|
|
|
668.9
|
|
|
655.6
|
|
|
646.9
|
|
|
639.8
|
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
3,068
|
|
|
2,921
|
|
|
3,104
|
|
|
3,007
|
|
|
2,953
|
|
|
Reversal of provision for credit losses
|
|
(58
|
)
|
|
(6
|
)
|
|
(39
|
)
|
|
(85
|
)
|
|
(49
|
)
|
|
Noninterest income
|
|
3,015
|
|
|
2,991
|
|
|
2,950
|
|
|
2,895
|
|
|
2,993
|
|
|
Noninterest expense
|
|
3,295
|
|
|
3,409
|
|
|
3,307
|
|
|
3,250
|
|
|
3,203
|
|
|
Income before income tax expense
|
|
2,846
|
|
|
2,509
|
|
|
2,786
|
|
|
2,737
|
|
|
2,792
|
|
|
Income tax expense
|
|
840
|
|
|
706
|
|
|
789
|
|
|
824
|
|
|
838
|
|
|
Net income before noncontrolling interests
|
|
2,006
|
|
|
1,803
|
|
|
1,997
|
|
|
1,913
|
|
|
1,954
|
|
|
Less: Net income (loss) from noncontrolling interests
|
|
(5
|
)
|
|
6
|
|
|
27
|
|
|
(7
|
)
|
|
2
|
|
|
Segment net income
|
|
$
|
2,011
|
|
|
1,797
|
|
|
1,970
|
|
|
1,920
|
|
|
1,952
|
|
|
Average loans
|
|
$
|
343.6
|
|
|
337.6
|
|
|
326.8
|
|
|
316.5
|
|
|
308.1
|
|
|
Average assets
|
|
618.0
|
|
|
594.9
|
|
|
573.3
|
|
|
553.0
|
|
|
532.4
|
|
|
Average core deposits
|
|
304.2
|
|
|
303.4
|
|
|
292.4
|
|
|
278.4
|
|
|
265.8
|
|
|
WEALTH, BROKERAGE AND RETIREMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
865
|
|
|
861
|
|
|
846
|
|
|
790
|
|
|
775
|
|
|
Provision (reversal of provision) for credit losses
|
|
(10
|
)
|
|
(3
|
)
|
|
8
|
|
|
(25
|
)
|
|
(25
|
)
|
|
Noninterest income
|
|
2,874
|
|
|
2,872
|
|
|
2,801
|
|
|
2,763
|
|
|
2,775
|
|
|
Noninterest expense
|
|
2,775
|
|
|
2,831
|
|
|
2,811
|
|
|
2,690
|
|
|
2,695
|
|
|
Income before income tax expense
|
|
974
|
|
|
905
|
|
|
828
|
|
|
888
|
|
|
880
|
|
|
Income tax expense
|
|
369
|
|
|
344
|
|
|
314
|
|
|
338
|
|
|
334
|
|
|
Net income before noncontrolling interests
|
|
605
|
|
|
561
|
|
|
514
|
|
|
550
|
|
|
546
|
|
|
Less: Net income from noncontrolling interests
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Segment net income
|
|
$
|
602
|
|
|
561
|
|
|
514
|
|
|
550
|
|
|
544
|
|
|
Average loans
|
|
$
|
59.3
|
|
|
56.9
|
|
|
54.8
|
|
|
52.6
|
|
|
51.0
|
|
|
Average assets
|
|
193.3
|
|
|
195.7
|
|
|
192.2
|
|
|
188.8
|
|
|
187.6
|
|
|
Average core deposits
|
|
159.4
|
|
|
161.4
|
|
|
157.0
|
|
|
153.6
|
|
|
153.0
|
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
(361
|
)
|
|
(357
|
)
|
|
(346
|
)
|
|
(328
|
)
|
|
(323
|
)
|
|
Provision (reversal of provision) for credit losses
|
|
5
|
|
|
—
|
|
|
(2
|
)
|
|
13
|
|
|
12
|
|
|
Noninterest income
|
|
(804
|
)
|
|
(794
|
)
|
|
(747
|
)
|
|
(742
|
)
|
|
(713
|
)
|
|
Noninterest expense
|
|
(765
|
)
|
|
(797
|
)
|
|
(752
|
)
|
|
(743
|
)
|
|
(724
|
)
|
|
Loss before income tax benefit
|
|
(405
|
)
|
|
(354
|
)
|
|
(339
|
)
|
|
(340
|
)
|
|
(324
|
)
|
|
Income tax benefit
|
|
(153
|
)
|
|
(135
|
)
|
|
(129
|
)
|
|
(129
|
)
|
|
(123
|
)
|
|
Net loss before noncontrolling interests
|
|
(252
|
)
|
|
(219
|
)
|
|
(210
|
)
|
|
(211
|
)
|
|
(201
|
)
|
|
Less: Net income from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other net loss
|
|
$
|
(252
|
)
|
|
(219
|
)
|
|
(210
|
)
|
|
(211
|
)
|
|
(201
|
)
|
|
Average loans
|
|
$
|
(39.0
|
)
|
|
(37.6
|
)
|
|
(36.0
|
)
|
|
(34.5
|
)
|
|
(33.5
|
)
|
|
Average assets
|
|
(75.3
|
)
|
|
(75.9
|
)
|
|
(76.6
|
)
|
|
(74.1
|
)
|
|
(74.1
|
)
|
|
Average core deposits
|
|
(70.1
|
)
|
|
(70.5
|
)
|
|
(69.0
|
)
|
|
(66.7
|
)
|
|
(66.9
|
)
|
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
11,270
|
|
|
10,986
|
|
|
11,180
|
|
|
10,941
|
|
|
10,791
|
|
|
Provision for credit losses
|
|
300
|
|
|
608
|
|
|
485
|
|
|
368
|
|
|
217
|
|
|
Noninterest income
|
|
10,048
|
|
|
10,292
|
|
|
10,263
|
|
|
10,272
|
|
|
10,275
|
|
|
Noninterest expense
|
|
12,469
|
|
|
12,507
|
|
|
12,647
|
|
|
12,248
|
|
|
12,194
|
|
|
Income before income tax expense
|
|
8,549
|
|
|
8,163
|
|
|
8,311
|
|
|
8,597
|
|
|
8,655
|
|
|
Income tax expense
|
|
2,763
|
|
|
2,279
|
|
|
2,519
|
|
|
2,642
|
|
|
2,869
|
|
|
Net income before noncontrolling interests
|
|
5,786
|
|
|
5,884
|
|
|
5,792
|
|
|
5,955
|
|
|
5,786
|
|
|
Less: Net income from noncontrolling interests
|
|
67
|
|
|
80
|
|
|
83
|
|
|
226
|
|
|
60
|
|
|
Wells Fargo net income
|
|
$
|
5,719
|
|
|
5,804
|
|
|
5,709
|
|
|
5,729
|
|
|
5,726
|
|
|
Average loans
|
|
$
|
870.4
|
|
|
863.3
|
|
|
849.4
|
|
|
833.2
|
|
|
831.0
|
|
|
Average assets
|
|
1,729.3
|
|
|
1,707.8
|
|
|
1,663.8
|
|
|
1,617.9
|
|
|
1,564.0
|
|
|
Average core deposits
|
|
1,079.2
|
|
|
1,063.2
|
|
|
1,036.0
|
|
|
1,012.2
|
|
|
991.7
|
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
|
(2) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
(3) Includes items not specific to a business segment and
elimination of certain items that are included in more than one
business segment, substantially all of which represents products
and services for wealth management customers provided in Community
Banking stores.
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
|
Quarter ended
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
$
|
11,739
|
|
|
12,738
|
|
|
14,031
|
|
|
13,900
|
|
|
14,953
|
|
|
Servicing from securitizations or asset transfers
|
|
428
|
|
|
308
|
|
|
296
|
|
|
340
|
|
|
271
|
|
|
Sales and other reductions
|
|
(5
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
Net additions
|
|
423
|
|
|
307
|
|
|
289
|
|
|
340
|
|
|
271
|
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (1)
|
|
1,117
|
|
|
(572
|
)
|
|
(1,016
|
)
|
|
251
|
|
|
(876
|
)
|
|
Servicing and foreclosure costs (2)
|
|
(10
|
)
|
|
(18
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
23
|
|
|
Discount rates (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
Prepayment estimates and other (4)
|
|
(54
|
)
|
|
(183
|
)
|
|
(78
|
)
|
|
6
|
|
|
73
|
|
|
Net changes in valuation model inputs or assumptions
|
|
1,053
|
|
|
(773
|
)
|
|
(1,099
|
)
|
|
253
|
|
|
(835
|
)
|
|
Other changes in fair value (5)
|
|
(554
|
)
|
|
(533
|
)
|
|
(483
|
)
|
|
(462
|
)
|
|
(489
|
)
|
|
Total changes in fair value
|
|
499
|
|
|
(1,306
|
)
|
|
(1,582
|
)
|
|
(209
|
)
|
|
(1,324
|
)
|
|
Fair value, end of quarter
|
|
$
|
12,661
|
|
|
11,739
|
|
|
12,738
|
|
|
14,031
|
|
|
13,900
|
|
|
(1) Includes prepayment speed changes as well as other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances).
|
|
|
(2) Includes costs to service and unreimbursed foreclosure costs.
|
|
|
(3) Reflects discount rate assumption change, excluding portion
attributable to changes in mortgage interest rates.
|
|
|
(4) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and
other assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior and other
external factors that occur independent of interest rate changes.
|
|
|
(5) Represents changes due to collection/realization of expected
cash flows over time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
$
|
1,252
|
|
|
1,242
|
|
|
1,224
|
|
|
1,196
|
|
|
1,219
|
|
|
Purchases
|
|
29
|
|
|
22
|
|
|
38
|
|
|
47
|
|
|
32
|
|
|
Servicing from securitizations or asset transfers
|
|
46
|
|
|
50
|
|
|
43
|
|
|
29
|
|
|
24
|
|
|
Amortization
|
|
(65
|
)
|
|
(62
|
)
|
|
(63
|
)
|
|
(48
|
)
|
|
(79
|
)
|
|
Balance, end of quarter
|
|
$
|
1,262
|
|
|
1,252
|
|
|
1,242
|
|
|
1,224
|
|
|
1,196
|
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
$
|
1,522
|
|
|
1,637
|
|
|
1,647
|
|
|
1,577
|
|
|
1,624
|
|
|
End of quarter
|
|
1,692
|
|
|
1,522
|
|
|
1,637
|
|
|
1,647
|
|
|
1,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
Quarter ended
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
$
|
1,026
|
|
|
1,010
|
|
|
996
|
|
|
919
|
|
|
1,128
|
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
1,053
|
|
|
(773
|
)
|
|
(1,099
|
)
|
|
253
|
|
|
(835
|
)
|
|
Other changes in fair value (3)
|
|
(554
|
)
|
|
(533
|
)
|
|
(483
|
)
|
|
(462
|
)
|
|
(489
|
)
|
|
Total changes in fair value of MSRs carried at fair value
|
|
499
|
|
|
(1,306
|
)
|
|
(1,582
|
)
|
|
(209
|
)
|
|
(1,324
|
)
|
|
Amortization
|
|
(65
|
)
|
|
(62
|
)
|
|
(63
|
)
|
|
(48
|
)
|
|
(79
|
)
|
|
Net derivative gains (losses) from economic hedges (4)
|
|
(946
|
)
|
|
881
|
|
|
1,334
|
|
|
17
|
|
|
1,310
|
|
|
Total servicing income, net
|
|
$
|
514
|
|
|
523
|
|
|
685
|
|
|
679
|
|
|
1,035
|
|
|
Market-related valuation changes to MSRs, net of hedge results
(2)+(4)
|
|
$
|
107
|
|
|
108
|
|
|
235
|
|
|
270
|
|
|
475
|
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues.
|
|
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
|
|
(3) Represents changes due to collection/realization of expected
cash flows over time.
|
|
|
(4) Represents results from free-standing derivatives (economic
hedges) used to hedge the risk of changes in fair value of MSRs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
$
|
1,344
|
|
|
1,374
|
|
|
1,405
|
|
|
1,430
|
|
|
1,451
|
|
Owned loans serviced
|
|
347
|
|
|
344
|
|
|
342
|
|
|
342
|
|
|
341
|
|
Subserviced for others
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
Total residential servicing
|
|
1,696
|
|
|
1,723
|
|
|
1,752
|
|
|
1,777
|
|
|
1,797
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
465
|
|
|
461
|
|
|
456
|
|
|
440
|
|
|
429
|
|
Owned loans serviced
|
|
120
|
|
|
112
|
|
|
112
|
|
|
107
|
|
|
109
|
|
Subserviced for others
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
7
|
|
Total commercial servicing
|
|
592
|
|
|
580
|
|
|
575
|
|
|
554
|
|
|
545
|
|
Total managed servicing portfolio
|
|
$
|
2,288
|
|
|
2,303
|
|
|
2,327
|
|
|
2,331
|
|
|
2,342
|
|
Total serviced for others
|
|
$
|
1,809
|
|
|
1,835
|
|
|
1,861
|
|
|
1,870
|
|
|
1,880
|
|
Ratio of MSRs to related loans serviced for others
|
|
0.77
|
%
|
|
0.71
|
|
|
0.75
|
|
|
0.82
|
|
|
0.80
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
4.41
|
|
|
4.43
|
|
|
4.45
|
|
|
4.47
|
|
|
4.49
|
|
(1) The components of our managed servicing portfolio are
presented at unpaid principal balance for loans serviced and
subserviced for others and at book value for owned loans serviced.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
Quarter ended
|
|
(in billions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
Application data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
$
|
81
|
|
|
93
|
|
|
66
|
|
|
64
|
|
|
72
|
|
Refinances as a percentage of applications
|
|
45
|
%
|
|
61
|
|
|
52
|
|
|
40
|
|
|
36
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
$
|
38
|
|
|
44
|
|
|
26
|
|
|
25
|
|
|
30
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
54
|
%
|
|
45
|
|
|
60
|
|
|
70
|
|
|
74
|
|
Refinances as a percentage of originations
|
|
46
|
|
|
55
|
|
|
40
|
|
|
30
|
|
|
26
|
|
Total
|
|
100
|
%
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Wells Fargo first mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
36
|
|
|
28
|
|
|
27
|
|
|
27
|
|
|
25
|
|
Correspondent
|
|
25
|
|
|
20
|
|
|
16
|
|
|
20
|
|
|
21
|
|
Other (1)
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Total quarter-to-date
|
|
$
|
62
|
|
|
49
|
|
|
44
|
|
|
48
|
|
|
47
|
|
Total year-to-date
|
|
$
|
111
|
|
|
49
|
|
|
175
|
|
|
131
|
|
|
83
|
|
(1) Consists of home equity loans and lines.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
Quarter ended
|
|
|
(in millions)
|
|
Jun 30,
2015
|
|
|
Mar 31,
2015
|
|
|
Dec 31,
2014
|
|
|
Sep 30,
2014
|
|
|
Jun 30,
2014
|
|
|
Balance, beginning of period
|
|
$
|
586
|
|
|
615
|
|
|
669
|
|
|
766
|
|
|
799
|
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
13
|
|
|
10
|
|
|
10
|
|
|
12
|
|
|
12
|
|
|
Change in estimate (1)
|
|
(31
|
)
|
|
(26
|
)
|
|
(49
|
)
|
|
(93
|
)
|
|
(38
|
)
|
|
Total additions (reductions)
|
|
(18
|
)
|
|
(16
|
)
|
|
(39
|
)
|
|
(81
|
)
|
|
(26
|
)
|
|
Losses
|
|
(11
|
)
|
|
(13
|
)
|
|
(15
|
)
|
|
(16
|
)
|
|
(7
|
)
|
|
Balance, end of period
|
|
$
|
557
|
|
|
586
|
|
|
615
|
|
|
669
|
|
|
766
|
|
|
(1) Results from changes in investor demand, mortgage insurer
practices, credit and the financial stability of correspondent
lenders.
|
|
|
|
|
|
|
|
|
|
UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS
|
|
($ in millions)
|
|
Government
sponsored
entities
|
|
|
Private
|
|
|
Mortgage
insurance
rescissions
with no
demand (1)
|
|
|
Total
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
385
|
|
|
148
|
|
|
107
|
|
|
640
|
|
Original loan balance (2)
|
|
$
|
83
|
|
|
24
|
|
|
27
|
|
|
134
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
526
|
|
|
161
|
|
|
108
|
|
|
795
|
|
Original loan balance (2)
|
|
$
|
118
|
|
|
29
|
|
|
28
|
|
|
175
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
546
|
|
|
173
|
|
|
120
|
|
|
839
|
|
Original loan balance (2)
|
|
$
|
118
|
|
|
34
|
|
|
31
|
|
|
183
|
|
September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
426
|
|
|
322
|
|
|
233
|
|
|
981
|
|
Original loan balance (2)
|
|
$
|
93
|
|
|
75
|
|
|
52
|
|
|
220
|
|
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of loans
|
|
678
|
|
|
362
|
|
|
305
|
|
|
1,345
|
|
Original loan balance (2)
|
|
$
|
149
|
|
|
80
|
|
|
66
|
|
|
295
|
|
(1) As part of our representations and warranties in our loan
sales contracts, we typically represent to GSEs and private
investors that certain loans have mortgage insurance to the extent
there are loans that have loan to value ratios in excess of 80%
that require mortgage insurance. To the extent the mortgage
insurance is rescinded by the mortgage insurer due to a claim of
breach of a contractual representation or warranty, the lack of
insurance may result in a repurchase demand from an investor.
Similar to repurchase demands, we evaluate mortgage insurance
rescission notices for validity and appeal for reinstatement if
the rescission was not based on a contractual breach. When
investor demands are received due to lack of mortgage insurance,
they are reported as unresolved repurchase demands based on the
applicable investor category for the loan (GSE or private).
|
|
(2) While the original loan balances related to these demands are
presented above, the establishment of the repurchase liability is
based on a combination of factors, such as our appeals success
rates, reimbursement by correspondent and other third party
originators, and projected loss severity, which is driven by the
difference between the current loan balance and the estimated
collateral value less costs to sell the property.
|
