Diluted EPS of $0.84 included the impact of a discrete litigation accrual of $(0.20) per share for previously disclosed mortgage-related regulatory investigations
Wells Fargo & Company (NYSE:WFC):
-
Financial results:
-
Revenue of $21.9 billion, down 2 percent from third quarter 2016
-
Net interest income of $12.5 billion, up $524 million, or 4
percent
-
Noninterest income of $9.5 billion, down $926 million, or 9
percent
-
Noninterest expense of $14.4 billion, up $1.1 billion, or 8
percent, including $752 million higher operating losses
-
Third quarter 2017 included a $1 billion discrete litigation
accrual (not tax-deductible), or $(0.20) per share, for
previously disclosed mortgage-related regulatory investigations
-
Total average deposits of $1.3 trillion, up $44.8 billion, or 4
percent
-
Total average loans of $952.3 billion, down $5.1 billion, or 1
percent
-
Return on assets (ROA) of 0.94 percent and return on equity (ROE)
of 9.06 percent
-
Solid credit quality:
-
Net charge-offs of $717 million, down $88 million from third
quarter 2016
-
Net charge-offs were 0.30 percent of average loans
(annualized), down from 0.33 percent
-
Nonaccrual loans of $8.6 billion, down $2.4 billion, or 22 percent
-
No reserve build or release1, consistent with third
quarter 2016
-
Strong capital position while returning more capital to shareholders:
-
Common Equity Tier 1 ratio (fully phased-in) of 11.8 percent2
-
Returned $4.0 billion to shareholders in the third quarter through
common stock dividends and net share repurchases
-
Net share repurchases of $2.0 billion, up 59 percent from
third quarter 2016
-
Period-end common shares outstanding down 96.0 million shares
from third quarter 2016
-
Quarterly common stock dividend of $0.39 per share, up from
$0.38 per share in third quarter 2016
Final financial results and other disclosures will be reported in our
Quarterly Report on Form 10-Q for the quarter ended September 30, 2017,
and may differ materially from the results and disclosures in this
document due to, among other things, the completion of final review
procedures, the occurrence of subsequent events, or the discovery of
additional information.
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
|
|
|
2017
|
|
|
|
2017
|
|
|
2016
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
0.84
|
|
|
|
|
1.07
|
|
|
1.03
|
|
Wells Fargo net income (in billions)
|
|
|
4.60
|
|
|
|
|
5.81
|
|
|
5.64
|
|
Return on assets (ROA)
|
|
|
0.94
|
%
|
|
|
|
1.21
|
|
|
1.17
|
|
Return on equity (ROE)
|
|
|
9.06
|
|
|
|
|
11.95
|
|
|
11.60
|
|
Return on average tangible common equity (ROTCE)(a)
|
|
|
10.79
|
|
|
|
|
14.26
|
|
|
13.96
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
0.30
|
%
|
|
|
|
0.27
|
|
|
0.33
|
|
Allowance for credit losses as a % of total loans
|
|
|
1.27
|
|
|
|
|
1.27
|
|
|
1.32
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
426
|
|
|
|
|
462
|
|
|
396
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
21.9
|
|
|
|
|
22.2
|
|
|
22.3
|
|
Efficiency ratio (b)
|
|
|
65.5
|
%
|
|
|
|
61.1
|
|
|
59.4
|
|
Average loans (in billions)
|
|
|
$
|
952.3
|
|
|
|
|
956.9
|
|
|
957.5
|
|
Average deposits (in billions)
|
|
|
1,306.4
|
|
|
|
|
1,301.2
|
|
|
1,261.5
|
|
Net interest margin
|
|
|
2.87
|
%
|
|
|
|
2.90
|
|
|
2.82
|
|
(a) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to
assess the Company's use of equity. For additional information,
including a corresponding reconciliation to GAAP financial
measures, see the "Tangible Common Equity" tables on page 35.
|
|
(b) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $4.6 billion, or
$0.84 per diluted common share, for third quarter 2017, compared with
$5.6 billion, or $1.03 per share, for third quarter 2016, and
$5.8 billion, or $1.07 per share, for second quarter 2017.
Chief Executive Officer Tim Sloan said, “Over the past year we have made
fundamental changes to transform Wells Fargo as part of our effort to
rebuild trust and build a better bank. While our financial performance
in the third quarter included the impact of a litigation accrual for
previously disclosed, pre-crisis mortgage-related regulatory
investigations, I am proud of the commitment of our 268,000 team members
who put our customers first. We saw total average deposit growth; loan
growth in our residential mortgage, credit card and subscription finance
portfolios; as well as higher assets under management in Wealth and
Investment Management. We also continued to invest in customer-focused
innovation and have begun the rollout of our online mortgage application
and “Intuitive Investor,” our online platform for digital investing and
professional advice. We’re also committed to helping our communities
recover from the devastation of the recent hurricanes by providing
payment relief and proactively waiving fees for impacted customers, and
our foundation donated $2.6 million for hurricane relief efforts.”
Chief Financial Officer John Shrewsberry said, “Wells Fargo reported
$4.6 billion of net income in the third quarter, which included the
impact of the $1 billion, or $(0.20) per share, discrete litigation
accrual. We continued to see good credit performance and our liquidity
and capital remained exceptionally strong. During the quarter, our first
under our 2017 Capital Plan, we returned $4.0 billion to shareholders
through common stock dividends and net share repurchases, up from $3.4
billion in the second quarter. We remain committed to our target of $2
billion of expense reductions by the end of 2018 which will be
reinvested in the business and an additional $2 billion by the end of
2019 intended to go to the bottom line.”
Net Interest Income
Net interest income in third quarter 2017 was $12.5 billion, in line
with second quarter 2017, as the impacts of lower investment portfolio
yields driven by accelerated prepayments and lower average loan balances
were offset by the impact of one additional day and a modest benefit
from all other growth and repricing.
Net interest margin was 2.87 percent, down 3 basis points from second
quarter 2017. The impacts of lower investment portfolio yields driven by
accelerated prepayments, lower average loan balances, growth in average
deposits, and growth in trading assets and related funding were
partially offset by lower average long-term debt and a modest benefit
from all other growth and repricing.
Noninterest Income
Noninterest income in the third quarter was $9.5 billion, compared with
$9.7 billion in second quarter 2017. Third quarter noninterest income
reflected lower mortgage banking and other income, partially offset by
higher market sensitive revenue3.
-
Mortgage banking noninterest income was $1.0 billion, compared with
$1.1 billion in second quarter 2017. Residential mortgage loan
originations were $59 billion in the third quarter, up from
$56 billion in the second quarter. The production margin on
residential held-for-sale mortgage loan originations4 was
1.24 percent, consistent with the second quarter. Mortgage servicing
income was $309 million in the third quarter, down from $400 million
in the second quarter, primarily due to higher unreimbursed servicing
costs.
-
Other income was $97 million, compared with $249 million in the second
quarter. Second quarter 2017 included a $309 million gain on the sale
of a Pick-a-Pay purchased credit-impaired (PCI) loan portfolio. Third
quarter 2017 included a net hedge ineffectiveness gain of $93 million,
up from $21 million in the prior quarter.
Noninterest Expense
Noninterest expense in the third quarter was $14.4 billion, compared
with $13.5 billion in the prior quarter. Third quarter expenses included
operating losses of $1.3 billion, which included the $1 billion
litigation accrual for previously disclosed mortgage-related regulatory
investigations. This increase in noninterest expense was partially
offset by lower charitable donations, outside professional services,
employee benefits, and travel and entertainment expenses. The efficiency
ratio was 65.5 percent in third quarter 2017, which included a 456 basis
point impact from the $1 billion litigation accrual.
Income Taxes
The Company’s effective income tax rate was 32.4 percent for third
quarter 2017, and included net discrete tax expense totaling $186
million, primarily resulting from the non-deductible treatment of the $1
billion litigation accrual, partially offset by discrete tax benefits
arising from favorable resolutions of prior period matters with certain
state tax authorities.
Loans
Total average loans were $952.3 billion in the third quarter, down $4.5
billion from the second quarter. Period-end loan balances were $951.9
billion at September 30, 2017, down $5.6 billion from June 30, 2017.
Consumer loans increased $201 million from the prior quarter as growth
in real estate 1-4 family first mortgage loans and consumer credit card
loans was largely offset by expected declines in automobile loans and
the legacy junior lien mortgage portfolio. Commercial loans were down
$5.8 billion from June 30, 2017 reflecting paydowns and continued
underwriting discipline.
|
|
|
Period-End Loan Balances
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Commercial
|
|
|
$
|
500,150
|
|
|
505,901
|
|
|
505,004
|
|
|
506,536
|
|
|
496,454
|
|
Consumer
|
|
|
451,723
|
|
|
451,522
|
|
|
453,401
|
|
|
461,068
|
|
|
464,872
|
|
Total loans
|
|
|
$
|
951,873
|
|
|
957,423
|
|
|
958,405
|
|
|
967,604
|
|
|
961,326
|
|
Change from prior quarter
|
|
|
$
|
(5,550
|
)
|
|
(982
|
)
|
|
(9,199
|
)
|
|
6,278
|
|
|
4,169
|
|
|
Investment Securities
Investment securities were $414.6 billion at September 30, 2017, up $5.0
billion from the second quarter, as approximately $31.2 billion of
purchases, mostly federal agency mortgage-backed securities (MBS) in the
available-for-sale portfolio, were partially offset by run-off and sales.
Net unrealized gains on available-for-sale securities were $1.8 billion
at September 30, 2017, compared with $1.1 billion at June 30, 2017,
primarily due to tighter credit and agency MBS spreads during the
quarter.
Deposits
Total average deposits for third quarter 2017 were $1.3 trillion, up
$5.2 billion from the prior quarter. The average deposit cost for third
quarter 2017 was 26 basis points, up 5 basis points from the prior
quarter and 15 basis points from a year ago, primarily driven by an
increase in commercial and Wealth and Investment Management deposit
rates.
Capital
Capital levels remained strong in the third quarter, with a Common
Equity Tier 1 ratio (fully phased-in) of 11.8 percent2,
compared with 11.6 percent in the prior quarter. In third quarter 2017,
the Company repurchased 49.0 million shares of its common stock, which
reduced period-end common shares outstanding by 38.9 million. The
Company paid a quarterly common stock dividend of $0.39 per share, up
from $0.38 per share a year ago.
Credit Quality
“Credit results remained strong in the third quarter," said Chief Risk
Officer Mike Loughlin. “The loan portfolio continued to perform well,
led by strong performance in consumer real estate and continued solid
performance in the commercial portfolio. Separately, while it is still
early in the process, we have reviewed our portfolio for potential
losses from recent hurricanes and have reflected that initial estimate
in our allowance. After accounting for all these factors, the allowance
for credit losses in the third quarter remained relatively unchanged
from the second quarter.”
Net Loan Charge-offs
The quarterly loss rate was 0.30 percent (annualized), compared with
0.27 percent in the prior quarter. Commercial and consumer losses were
0.09 percent and 0.53 percent, respectively. Credit losses were
$717 million in third quarter 2017, up $62 million from second quarter
2017. Commercial losses were up $38 million on higher losses in the
commercial and industrial portfolio. Consumer losses increased
$24 million as higher automobile losses from typically low second
quarter levels more than offset lower credit card losses.
|
|
|
Net Loan Charge-Offs
|
|
|
|
|
Quarter ended
|
|
|
|
|
September 30, 2017
|
|
|
June 30, 2017
|
|
|
March 31, 2017
|
|
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
($ in millions)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
125
|
|
|
|
0.15
|
%
|
|
|
$
|
78
|
|
|
|
0.10
|
%
|
|
|
$
|
171
|
|
|
|
0.21
|
%
|
|
Real estate mortgage
|
|
|
(3
|
)
|
|
|
(0.01
|
)
|
|
|
(6
|
)
|
|
|
(0.02
|
)
|
|
|
(25
|
)
|
|
|
(0.08
|
)
|
|
Real estate construction
|
|
|
(15
|
)
|
|
|
(0.24
|
)
|
|
|
(4
|
)
|
|
|
(0.05
|
)
|
|
|
(8
|
)
|
|
|
(0.15
|
)
|
|
Lease financing
|
|
|
6
|
|
|
|
0.12
|
|
|
|
7
|
|
|
|
0.15
|
|
|
|
5
|
|
|
|
0.11
|
|
|
Total commercial
|
|
|
113
|
|
|
|
0.09
|
|
|
|
75
|
|
|
|
0.06
|
|
|
|
143
|
|
|
|
0.11
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(16
|
)
|
|
|
(0.02
|
)
|
|
|
(16
|
)
|
|
|
(0.02
|
)
|
|
|
7
|
|
|
|
0.01
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1
|
|
|
|
—
|
|
|
|
(4
|
)
|
|
|
(0.03
|
)
|
|
|
23
|
|
|
|
0.21
|
|
|
Credit card
|
|
|
277
|
|
|
|
3.08
|
|
|
|
320
|
|
|
|
3.67
|
|
|
|
309
|
|
|
|
3.54
|
|
|
Automobile
|
|
|
202
|
|
|
|
1.41
|
|
|
|
126
|
|
|
|
0.86
|
|
|
|
167
|
|
|
|
1.10
|
|
|
Other revolving credit and installment
|
|
|
140
|
|
|
|
1.44
|
|
|
|
154
|
|
|
|
1.58
|
|
|
|
156
|
|
|
|
1.60
|
|
|
Total consumer
|
|
|
604
|
|
|
|
0.53
|
|
|
|
580
|
|
|
|
0.51
|
|
|
|
662
|
|
|
|
0.59
|
|
|
Total
|
|
|
$
|
717
|
|
|
|
0.30
|
%
|
|
|
$
|
655
|
|
|
|
0.27
|
%
|
|
|
$
|
805
|
|
|
|
0.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation on page 31 of the accounting for
purchased credit-impaired (PCI) loans and the impact on selected
financial ratios.
|
|
|
Nonperforming Assets
Nonperforming assets decreased $512 million from second quarter 2017 to
$9.3 billion. Nonaccrual loans decreased $437 million from second
quarter 2017 to $8.6 billion primarily driven by declines in commercial
and industrial nonaccruals, as well as continued lower consumer real
estate nonaccruals.
|
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
September 30, 2017
|
|
|
June 30, 2017
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,397
|
|
|
|
0.73
|
%
|
|
|
$
|
2,632
|
|
|
|
0.79
|
%
|
|
|
$
|
2,898
|
|
|
|
0.88
|
%
|
|
Real estate mortgage
|
|
|
593
|
|
|
|
0.46
|
|
|
|
630
|
|
|
|
0.48
|
|
|
|
672
|
|
|
|
0.51
|
|
|
Real estate construction
|
|
|
38
|
|
|
|
0.15
|
|
|
|
34
|
|
|
|
0.13
|
|
|
|
40
|
|
|
|
0.16
|
|
|
Lease financing
|
|
|
81
|
|
|
|
0.42
|
|
|
|
89
|
|
|
|
0.46
|
|
|
|
96
|
|
|
|
0.50
|
|
|
Total commercial
|
|
|
3,109
|
|
|
|
0.62
|
|
|
|
3,385
|
|
|
|
0.67
|
|
|
|
3,706
|
|
|
|
0.73
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
4,213
|
|
|
|
1.50
|
|
|
|
4,413
|
|
|
|
1.60
|
|
|
|
4,743
|
|
|
|
1.73
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,101
|
|
|
|
2.68
|
|
|
|
1,095
|
|
|
|
2.56
|
|
|
|
1,153
|
|
|
|
2.60
|
|
|
Automobile
|
|
|
137
|
|
|
|
0.25
|
|
|
|
104
|
|
|
|
0.18
|
|
|
|
101
|
|
|
|
0.17
|
|
|
Other revolving credit and installment
|
|
|
59
|
|
|
|
0.15
|
|
|
|
59
|
|
|
|
0.15
|
|
|
|
56
|
|
|
|
0.14
|
|
|
Total consumer
|
|
|
5,510
|
|
|
|
1.22
|
|
|
|
5,671
|
|
|
|
1.26
|
|
|
|
6,053
|
|
|
|
1.34
|
|
|
Total nonaccrual loans
|
|
|
8,619
|
|
|
|
0.91
|
|
|
|
9,056
|
|
|
|
0.95
|
|
|
|
9,759
|
|
|
|
1.02
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
137
|
|
|
|
|
|
|
149
|
|
|
|
|
|
|
179
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
569
|
|
|
|
|
|
|
632
|
|
|
|
|
|
|
726
|
|
|
|
|
|
Total foreclosed assets
|
|
|
706
|
|
|
|
|
|
|
781
|
|
|
|
|
|
|
905
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
9,325
|
|
|
|
0.98
|
%
|
|
|
$
|
9,837
|
|
|
|
1.03
|
%
|
|
|
$
|
10,664
|
|
|
|
1.11
|
%
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(437
|
)
|
|
|
|
|
|
$
|
(703
|
)
|
|
|
|
|
|
$
|
(625
|
)
|
|
|
|
|
Total nonperforming assets
|
|
|
(512
|
)
|
|
|
|
|
|
(827
|
)
|
|
|
|
|
|
(698
|
)
|
|
|
|
|
|
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.1 billion at September 30, 2017, in line with
June 30, 2017. The third quarter 2017 allowance for credit losses
reflected strong credit performance due to continued improvement in
consumer real estate as well as strength in the commercial loan
portfolio, including improvement in the oil and gas portfolio. These
factors were offset by $450 million for coverage of our preliminary
estimate of potential hurricane-related losses. The allowance coverage
for total loans of 1.27 percent was stable from second quarter 2017. The
allowance covered 4.3 times annualized third quarter net charge-offs,
compared with 4.6 times in the prior quarter. The allowance coverage for
nonaccrual loans was 141 percent at September 30, 2017, compared with
134 percent at June 30, 2017. The Company believes the allowance was
appropriate for losses inherent in the loan portfolio at September 30,
2017.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Community Banking
|
|
|
$
|
2,229
|
|
|
2,993
|
|
|
3,227
|
|
Wholesale Banking
|
|
|
2,046
|
|
|
2,388
|
|
|
2,047
|
|
Wealth and Investment Management
|
|
|
710
|
|
|
682
|
|
|
677
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking
offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and automobile, student, mortgage, home equity
and small business lending, as well as referrals to Wholesale Banking
and Wealth and Investment Management business partners. The Community
Banking segment also includes the results of our Corporate Treasury
activities net of allocations in support of the other operating segments
and results of investments in our affiliated venture capital
partnerships.
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Total revenue
|
|
|
$
|
12,060
|
|
|
12,289
|
|
|
12,387
|
|
Provision for credit losses
|
|
|
650
|
|
|
623
|
|
|
651
|
|
Noninterest expense
|
|
|
7,834
|
|
|
7,223
|
|
|
6,953
|
|
Segment net income
|
|
|
2,229
|
|
|
2,993
|
|
|
3,227
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
473.5
|
|
|
477.2
|
|
|
489.2
|
|
Average assets
|
|
|
988.9
|
|
|
983.5
|
|
|
993.6
|
|
Average deposits
|
|
|
734.5
|
|
|
727.2
|
|
|
708.0
|
|
|
Community Banking reported net income of $2.2 billion, down
$764 million, or 26 percent, from second quarter 2017, and included the
$1 billion litigation accrual (not tax-deductible) for previously
disclosed mortgage-related regulatory investigations. Revenue of
$12.1 billion decreased $229 million, or 2 percent, from second quarter
2017, primarily due to a gain on the sale of a Pick-a-Pay PCI loan
portfolio in the prior quarter. The decline in revenue from the second
quarter was also driven by lower mortgage banking revenue, partially
offset by higher net interest income and the favorable accounting impact
of net hedge ineffectiveness. Noninterest expense increased
$611 million, or 8 percent, compared with second quarter 2017, due to
higher operating losses and personnel expense, partially offset by lower
charitable donations, lower professional services expense and the
favorable impact of updated intra-segment allocations to Wholesale
Banking and Wealth and Investment Management for regulatory, risk, cyber
and technology expenses. The provision for credit losses increased
$27 million from the prior quarter.
Net income was down $1.0 billion, or 31 percent, from third quarter
2016, and included the $1 billion litigation accrual (not
tax-deductible) for previously disclosed mortgage-related regulatory
investigations. Revenue decreased $327 million, or 3 percent, compared
with a year ago due to lower mortgage banking revenue and deposit
service charges, partially offset by higher net interest income and
market sensitive revenue. Noninterest expense increased $881 million, or
13 percent, from a year ago due to higher operating losses, higher
professional services expense and the favorable impact of updated
intra-segment allocations to Wholesale Banking and Wealth and Investment
Management for regulatory, risk, cyber and technology expenses.
Retail Banking and Consumer Payments, Virtual Solutions and
Innovation
-
With nearly 400,000 branch customer experience surveys completed
during the third quarter, ‘Loyalty’ and ‘Overall Satisfaction with
Most Recent Visit’ scores declined in September after our announcement
of the expanded third party account review, which followed post-sales
practice settlement highs for ‘Loyalty’ in July of 58.8 percent and
‘Overall Satisfaction with Most Recent Visit’ in August of 78.2 percent
-
5,927 retail bank branches as of the end of third quarter 2017,
reflecting 145 branch consolidations year-to-date through September
30, 2017
-
Wells Fargo was the nation’s #1 SBA 7(a) lender in dollars and units
for full year 20175
-
Primary consumer checking customers6,7down 0.2 percent
year-over-year
-
Debit card point-of-sale purchase volume8 of $80.0 billion
in third quarter, up 5 percent year-over-year
-
Credit card point-of-sale purchase volume of $18.2 billion in third
quarter, up 4 percent year-over-year
-
Credit card penetration in retail banking households of 45.4 percent9
-
27.8 million digital (online and mobile) active customers, including
20.9 million mobile active users7,10
-
According to BI Intelligence’s Mobile Banking Competitive Edge study,
Wells Fargo scored top marks in the transfers, wallets, and security
categories of our scorecard, and ranked first overall
-
For the fourth consecutive time, Dynatrace (formerly Keynote) ranked
Wells Fargo #1 overall in online performance (August 2017)
-
In Javelin Strategy's recent 2017 Account Safety in Banking Scorecard,
Wells Fargo was recognized as a leader in fraud prevention, detection,
and resolution
Consumer Lending
-
Home Lending
-
Originations of $59 billion, up from $56 billion in prior quarter
-
Applications of $73 billion, down from $83 billion in prior quarter
-
Application pipeline of $29 billion at quarter end, down from $34
billion at June 30, 2017
-
Automobile originations of $4.3 billion in third quarter, down 6
percent from prior quarter and down 47 percent from prior year, as
proactive steps to tighten underwriting standards resulted in lower
origination volume
Wholesale Banking
provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $5 million. Products and
businesses include Business Banking, Commercial Real Estate, Corporate
Banking, Financial Institutions Group, Government and Institutional
Banking, Insurance, Middle Market Banking, Principal Investments,
Treasury Management, Wells Fargo Commercial Capital, and Wells Fargo
Securities.
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Total revenue
|
|
|
$
|
7,085
|
|
|
|
6,951
|
|
|
|
7,147
|
|
Provision (reversal of provision) for credit losses
|
|
|
69
|
|
|
|
(65
|
)
|
|
|
157
|
|
Noninterest expense
|
|
|
4,248
|
|
|
|
4,078
|
|
|
|
4,120
|
|
Segment net income
|
|
|
2,046
|
|
|
|
2,388
|
|
|
|
2,047
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
463.8
|
|
|
|
464.9
|
|
|
|
454.3
|
|
Average assets
|
|
|
824.3
|
|
|
|
817.3
|
|
|
|
794.2
|
|
Average deposits
|
|
|
463.4
|
|
|
|
463.0
|
|
|
|
441.2
|
|
|
Wholesale Banking reported net income of $2.0 billion, down
$342 million, or 14 percent, from second quarter 2017 which included a
tax benefit resulting from our agreement to sell Wells Fargo Insurance
Services USA and related businesses. Revenue of $7.1 billion increased
$134 million, or 2 percent, from the prior quarter. Net interest income
increased $75 million, or 2 percent, on higher trading related income
and one additional business day in the quarter. Noninterest income
increased $59 million, or 2 percent, on higher gains on equity
investments and debt securities. Noninterest expense increased
$170 million, or 4 percent, from the prior quarter reflecting updated
intra-segment allocations from Community Banking for regulatory, risk,
cyber and technology expenses. The provision for credit losses increased
$134 million from the prior quarter, primarily due to a reserve release
in the second quarter as well as higher losses in the third quarter.
Net income of $2.0 billion was in line with third quarter 2016. Revenue
decreased $62 million, or 1 percent, from third quarter 2016, as higher
net interest income was more than offset by lower noninterest income.
Net interest income increased $291 million, or 7 percent, from third
quarter 2016 on deposit and loan growth, including the GE Capital
portfolio acquisitions in the second half of 2016, as well as the impact
of rising interest rates. Noninterest income decreased $353 million, or
11 percent, from a year ago primarily due to lower customer
accommodation trading and lower commercial mortgage banking results.
Noninterest expense increased $128 million, or 3 percent, from a year
ago reflecting updated intra-segment allocations from Community Banking
for regulatory, risk, cyber and technology expenses. The provision for
credit losses decreased $88 million from a year ago primarily due to
improvements in the oil and gas portfolio.
-
Launched CEO Mobile Token which allows Treasury Management customers a
secure, convenient way to provide secondary authentication anytime
they need to complete a transaction (August 2017)
Wealth and Investment Management
(WIM)
provides a full range of personalized wealth management, investment
and retirement products and services to clients across U.S. based
businesses including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo
Asset Management. We deliver financial planning, private banking,
credit, investment management and fiduciary services to high-net worth
and ultra-high-net worth individuals and families. We also serve
customers’ brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities
delivered to global institutional clients through separate accounts and
the Wells Fargo Funds.
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Total revenue
|
|
|
$
|
4,246
|
|
|
|
4,182
|
|
|
|
4,099
|
|
Provision (reversal of provision) for credit losses
|
|
|
(1
|
)
|
|
|
7
|
|
|
|
4
|
|
Noninterest expense
|
|
|
3,106
|
|
|
|
3,075
|
|
|
|
2,999
|
|
Segment net income
|
|
|
710
|
|
|
|
682
|
|
|
|
677
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
72.4
|
|
|
|
71.7
|
|
|
|
68.4
|
|
Average assets
|
|
|
213.4
|
|
|
|
213.1
|
|
|
|
212.1
|
|
Average deposits
|
|
|
188.1
|
|
|
|
188.2
|
|
|
|
189.2
|
|
|
Wealth and Investment Management reported net income of $710 million, up
$28 million, or 4 percent, from second quarter 2017. Revenue of
$4.2 billion increased $64 million from the prior quarter, primarily due
to higher net interest income, asset-based fees, and gains on deferred
compensation plan investments (offset in employee benefits expense),
partially offset by lower transaction revenue. Noninterest expense
increased $31 million, or 1 percent, from the prior quarter, reflecting
updated intra-segment allocations from Community Banking for regulatory,
risk, cyber and technology expenses and higher deferred compensation
plan expense (offset in trading revenue).
Net income was up $33 million, or 5 percent, from third quarter 2016.
Revenue increased $147 million, or 4 percent, from a year ago primarily
driven by higher net interest income and asset-based fees, partially
offset by lower transaction revenue. Noninterest expense increased
$107 million, or 4 percent, from a year ago, reflecting updated
intra-segment allocations from Community Banking for regulatory, risk,
cyber and technology expenses and higher personnel expense, partially
offset by lower professional services expense.
-
WIM total client assets reached a record-high of $1.9 trillion, up 8
percent from a year ago, driven by higher market valuations and
continued positive net flows
-
Third quarter 2017 average closed referred investment assets
(referrals resulting from the WIM/Community Banking partnership) were
down 12 percent from the prior quarter
Retail Brokerage
-
Client assets of $1.6 trillion, up 9 percent from prior year
-
Advisory assets of $522 billion, up 14 percent from prior year,
primarily driven by higher market valuations and positive net flows
-
Strong loan growth, with average balances up 10 percent from prior
year largely due to continued growth in non-conforming mortgage loans
Wealth Management
-
Client assets of $241 billion, up 5 percent from prior year
-
Average loan balances up 4 percent from prior year primarily driven by
continued growth in non-conforming mortgage loans
Asset Management
-
Total assets under management of $496 billion, flat from prior year as
equity and money market net outflows were offset by higher market
valuations, positive fixed income net flows and assets acquired during
the prior year
Retirement
-
IRA assets of $400 billion, up 6 percent from prior year
-
Institutional Retirement plan assets of $387 billion, up 11 percent
from prior year
Conference Call
The Company will host a live conference call on Friday, October 13, at
7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing
866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call
will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~88580303.
A replay of the conference call will be available beginning at 10:00
a.m. PT (1:00 p.m. ET) on Friday, October 13 through Friday, October 27.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #88580303. The replay will also
be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~88580303.
|
|
|
Endnotes
|
|
1
|
|
Reserve build represents the amount by which the provision for
credit losses exceeds net charge-offs, while reserve release
represents the amount by which net charge-offs exceed the provision
for credit losses.
|
|
2
|
|
See table on page 36 for more information on Common Equity Tier 1.
Common Equity Tier 1 (fully phased-in) is a preliminary estimate and
is calculated assuming the full phase-in of the Basel III capital
rules.
|
|
3
|
|
Market sensitive revenue represents net gains from trading
activities, debt securities and equity investments.
|
|
4
|
|
Production margin represents net gains on residential mortgage loan
origination/sales activities divided by total residential
held-for-sale mortgage originations. See the Selected Five Quarter
Residential Mortgage Production Data table on page 41 for more
information.
|
|
5
|
|
U.S. SBA data, federal fiscal year ended September 30, 2017.
|
|
6
|
|
Customers who actively use their checking account with transactions
such as debit card purchases, online bill payments, and direct
deposit.
|
|
7
|
|
Data as of August 2017, comparisons with August 2016.
|
|
8
|
|
Combined consumer and business debit card purchase volume dollars.
|
|
9
|
|
Penetration defined as the percentage of Retail Banking households
that have a credit card with Wells Fargo. Retail Banking households
reflect only those households that maintain a retail checking
account, which we believe provides the foundation for long-term
retail banking relationships. Credit card household penetration
rates have not been adjusted to reflect the impact of the
potentially unauthorized accounts (determined principally based on
whether the account was activated by the customer) identified by a
third party consulting firm in August 2017 because the maximum
impact in any one quarter was not greater than 127 bps.
|
|
10
|
|
Primarily includes retail banking, consumer lending, small
business and business banking customers.
|
|
|
|
|
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,”
“could,” “should,” “can” and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance levels; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital or
liquidity levels or targets and our estimated Common Equity Tier 1 ratio
under Basel III capital standards; (viii) the performance of our
mortgage business and any related exposures; (ix) the expected outcome
and impact of legal, regulatory and legislative developments, as well as
our expectations regarding compliance therewith; (x) future common stock
dividends, common share repurchases and other uses of capital; (xi) our
targeted range for return on assets 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;
-
losses related to recent hurricanes, which primarily impacted Texas,
Florida and Puerto Rico, including from damage or loss to our
collateral for loans in our consumer and commercial loan portfolios
and from the impact on the ability of our borrowers to repay their
loans;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
significant turbulence or a disruption in the capital or financial
markets, which could result in, among other things, reduced investor
demand for mortgage loans, a reduction in the availability of funding
or increased funding costs, and declines in asset values and/or
recognition of other-than-temporary impairment on securities held in
our investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
negative effects from the retail banking sales practices matter,
including on our legal, operational and compliance costs, our ability
to engage in certain business activities or offer certain products or
services, our ability to keep and attract customers, our ability to
attract and retain qualified team members, and our reputation;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2016.
In addition to the above factors, we also caution that the amount and
timing of any future common stock dividends or repurchases will depend
on the earnings, cash requirements and financial condition of the
Company, market conditions, capital requirements (including under Basel
capital standards), common stock issuance requirements, applicable law
and regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by the Company’s Board
of Directors, and may be subject to regulatory approval or conditions.
For more information about factors that could cause actual results to
differ materially from our expectations, refer to our reports filed with
the Securities and Exchange Commission, including the discussion under
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2016, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,400 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 42 countries and territories to support customers who conduct
business in the global economy. With approximately 268,000 team members,
Wells Fargo serves one in three households in the United States. Wells
Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of
America’s largest corporations.
|
|
|
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
|
|
Changes in Allowance for Credit Losses
|
|
|
34
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Tangible Common Equity
|
|
|
35
|
|
Common Equity Tier 1 Under Basel III
|
|
|
36
|
|
|
|
|
|
|
Operating Segments
|
|
|
|
|
Operating Segment Results
|
|
|
37
|
|
|
|
|
|
|
Other
|
|
|
|
|
Mortgage Servicing and other related data
|
|
|
39
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Sep 30, 2017 from
|
|
|
Nine months ended
|
|
|
|
|
|
|
|
Sep 30,
|
|
Jun 30,
|
|
Sep 30,
|
|
|
Jun 30,
|
|
Sep 30,
|
|
|
Sep 30,
|
|
Sep 30,
|
|
|
%
|
|
($ in millions, except per share amounts)
|
|
|
2017
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
Change
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
5,810
|
|
|
5,644
|
|
|
|
(21
|
)%
|
|
(19
|
)
|
|
|
$
|
15,863
|
|
|
16,664
|
|
|
|
(5
|
)%
|
|
Wells Fargo net income applicable to common stock
|
|
|
4,185
|
|
|
5,404
|
|
|
5,243
|
|
|
|
(23
|
)
|
|
(20
|
)
|
|
|
14,645
|
|
|
15,501
|
|
|
|
(6
|
)
|
|
Diluted earnings per common share
|
|
|
0.84
|
|
|
1.07
|
|
|
1.03
|
|
|
|
(21
|
)
|
|
(18
|
)
|
|
|
2.91
|
|
|
3.03
|
|
|
|
(4
|
)
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
0.94
|
%
|
|
1.21
|
|
|
1.17
|
|
|
|
(22
|
)
|
|
(20
|
)
|
|
|
1.10
|
%
|
|
1.19
|
|
|
|
(8
|
)
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
9.06
|
|
|
11.95
|
|
|
11.60
|
|
|
|
(24
|
)
|
|
(22
|
)
|
|
|
10.83
|
|
|
11.68
|
|
|
|
(7
|
)
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
10.79
|
|
|
14.26
|
|
|
13.96
|
|
|
|
(24
|
)
|
|
(23
|
)
|
|
|
12.94
|
|
|
14.08
|
|
|
|
(8
|
)
|
|
Efficiency ratio (2)
|
|
|
65.5
|
|
|
61.1
|
|
|
59.4
|
|
|
|
7
|
|
|
10
|
|
|
|
63.1
|
|
|
58.7
|
|
|
|
7
|
|
|
Total revenue
|
|
|
$
|
21,926
|
|
|
22,169
|
|
|
22,328
|
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
$
|
66,097
|
|
|
66,685
|
|
|
|
(1
|
)
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
7,575
|
|
|
8,628
|
|
|
9,060
|
|
|
|
(12
|
)
|
|
(16
|
)
|
|
|
24,413
|
|
|
27,523
|
|
|
|
(11
|
)
|
|
Dividends declared per common share
|
|
|
0.390
|
|
|
0.380
|
|
|
0.380
|
|
|
|
3
|
|
|
3
|
|
|
|
1.150
|
|
|
1.135
|
|
|
|
1
|
|
|
Average common shares outstanding
|
|
|
4,948.6
|
|
|
4,989.9
|
|
|
5,043.4
|
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
4,982.1
|
|
|
5,061.9
|
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
4,996.8
|
|
|
5,037.7
|
|
|
5,094.6
|
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
5,035.4
|
|
|
5,118.2
|
|
|
|
(2
|
)
|
|
Average loans
|
|
|
$
|
952,343
|
|
|
956,879
|
|
|
957,484
|
|
|
|
—
|
|
|
(1
|
)
|
|
|
$
|
957,581
|
|
|
945,197
|
|
|
|
1
|
|
|
Average assets
|
|
|
1,938,523
|
|
|
1,927,079
|
|
|
1,914,586
|
|
|
|
1
|
|
|
1
|
|
|
|
1,932,242
|
|
|
1,865,694
|
|
|
|
4
|
|
|
Average total deposits
|
|
|
1,306,356
|
|
|
1,301,195
|
|
|
1,261,527
|
|
|
|
—
|
|
|
4
|
|
|
|
1,302,273
|
|
|
1,239,287
|
|
|
|
5
|
|
|
Average consumer and small business banking deposits (4)
|
|
|
755,094
|
|
|
760,149
|
|
|
739,066
|
|
|
|
(1
|
)
|
|
2
|
|
|
|
758,443
|
|
|
726,798
|
|
|
|
4
|
|
|
Net interest margin
|
|
|
2.87
|
%
|
|
2.90
|
|
|
2.82
|
|
|
|
(1
|
)
|
|
2
|
|
|
|
2.88
|
%
|
|
2.86
|
|
|
|
1
|
|
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
414,633
|
|
|
409,594
|
|
|
390,832
|
|
|
|
1
|
|
|
6
|
|
|
|
$
|
414,633
|
|
|
390,832
|
|
|
|
6
|
|
|
Loans
|
|
|
951,873
|
|
|
957,423
|
|
|
961,326
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
|
951,873
|
|
|
961,326
|
|
|
|
(1
|
)
|
|
Allowance for loan losses
|
|
|
11,078
|
|
|
11,073
|
|
|
11,583
|
|
|
|
—
|
|
|
(4
|
)
|
|
|
11,078
|
|
|
11,583
|
|
|
|
(4
|
)
|
|
Goodwill
|
|
|
26,581
|
|
|
26,573
|
|
|
26,688
|
|
|
|
—
|
|
|
—
|
|
|
|
26,581
|
|
|
26,688
|
|
|
|
—
|
|
|
Assets
|
|
|
1,934,939
|
|
|
1,930,871
|
|
|
1,942,124
|
|
|
|
—
|
|
|
—
|
|
|
|
1,934,939
|
|
|
1,942,124
|
|
|
|
—
|
|
|
Deposits
|
|
|
1,306,706
|
|
|
1,305,830
|
|
|
1,275,894
|
|
|
|
—
|
|
|
2
|
|
|
|
1,306,706
|
|
|
1,275,894
|
|
|
|
2
|
|
|
Common stockholders' equity
|
|
|
182,128
|
|
|
181,428
|
|
|
179,916
|
|
|
|
—
|
|
|
1
|
|
|
|
182,128
|
|
|
179,916
|
|
|
|
1
|
|
|
Wells Fargo stockholders’ equity
|
|
|
205,929
|
|
|
205,230
|
|
|
203,028
|
|
|
|
—
|
|
|
1
|
|
|
|
205,929
|
|
|
203,028
|
|
|
|
1
|
|
|
Total equity
|
|
|
206,824
|
|
|
206,145
|
|
|
203,958
|
|
|
|
—
|
|
|
1
|
|
|
|
206,824
|
|
|
203,958
|
|
|
|
1
|
|
|
Tangible common equity (1)
|
|
|
152,901
|
|
|
152,064
|
|
|
149,829
|
|
|
|
1
|
|
|
2
|
|
|
|
152,901
|
|
|
149,829
|
|
|
|
2
|
|
|
Common shares outstanding
|
|
|
4,927.9
|
|
|
4,966.8
|
|
|
5,023.9
|
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
4,927.9
|
|
|
5,023.9
|
|
|
|
(2
|
)
|
|
Book value per common share (5)
|
|
|
$
|
36.96
|
|
|
36.53
|
|
|
35.81
|
|
|
|
1
|
|
|
3
|
|
|
|
$
|
36.96
|
|
|
35.81
|
|
|
|
3
|
|
|
Tangible book value per common share (1)(5)
|
|
|
31.03
|
|
|
30.62
|
|
|
29.82
|
|
|
|
1
|
|
|
4
|
|
|
|
31.03
|
|
|
29.82
|
|
|
|
4
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
56.45
|
|
|
56.60
|
|
|
51.00
|
|
|
|
—
|
|
|
11
|
|
|
|
59.99
|
|
|
53.27
|
|
|
|
13
|
|
|
Low
|
|
|
49.28
|
|
|
50.84
|
|
|
44.10
|
|
|
|
(3
|
)
|
|
12
|
|
|
|
49.28
|
|
|
44.10
|
|
|
|
12
|
|
|
Period end
|
|
|
55.15
|
|
|
55.41
|
|
|
44.28
|
|
|
|
—
|
|
|
25
|
|
|
|
55.15
|
|
|
44.28
|
|
|
|
25
|
|
|
Team members (active, full-time equivalent)
|
|
|
268,000
|
|
|
270,600
|
|
|
268,800
|
|
|
|
(1
|
)
|
|
—
|
|
|
|
268,000
|
|
|
268,800
|
|
|
|
—
|
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
($ in millions, except per share amounts)
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
|
5,810
|
|
|
|
5,457
|
|
|
|
5,274
|
|
|
|
5,644
|
|
Wells Fargo net income applicable to common stock
|
|
|
4,185
|
|
|
|
5,404
|
|
|
|
5,056
|
|
|
|
4,872
|
|
|
|
5,243
|
|
Diluted earnings per common share
|
|
|
0.84
|
|
|
|
1.07
|
|
|
|
1.00
|
|
|
|
0.96
|
|
|
|
1.03
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
0.94
|
%
|
|
|
1.21
|
|
|
|
1.15
|
|
|
|
1.08
|
|
|
|
1.17
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
9.06
|
|
|
|
11.95
|
|
|
|
11.54
|
|
|
|
10.94
|
|
|
|
11.60
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
10.79
|
|
|
|
14.26
|
|
|
|
13.85
|
|
|
|
13.16
|
|
|
|
13.96
|
|
Efficiency ratio (2)
|
|
|
65.5
|
|
|
|
61.1
|
|
|
|
62.7
|
|
|
|
61.2
|
|
|
|
59.4
|
|
Total revenue
|
|
|
$
|
21,926
|
|
|
|
22,169
|
|
|
|
22,002
|
|
|
|
21,582
|
|
|
|
22,328
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
7,575
|
|
|
|
8,628
|
|
|
|
8,210
|
|
|
|
8,367
|
|
|
|
9,060
|
|
Dividends declared per common share
|
|
|
0.39
|
|
|
|
0.38
|
|
|
|
0.38
|
|
|
|
0.38
|
|
|
|
0.38
|
|
Average common shares outstanding
|
|
|
4,948.6
|
|
|
|
4,989.9
|
|
|
|
5,008.6
|
|
|
|
5,025.6
|
|
|
|
5,043.4
|
|
Diluted average common shares outstanding
|
|
|
4,996.8
|
|
|
|
5,037.7
|
|
|
|
5,070.4
|
|
|
|
5,078.2
|
|
|
|
5,094.6
|
|
Average loans
|
|
|
$
|
952,343
|
|
|
|
956,879
|
|
|
|
963,645
|
|
|
|
964,147
|
|
|
|
957,484
|
|
Average assets
|
|
|
1,938,523
|
|
|
|
1,927,079
|
|
|
|
1,931,041
|
|
|
|
1,944,250
|
|
|
|
1,914,586
|
|
Average total deposits
|
|
|
1,306,356
|
|
|
|
1,301,195
|
|
|
|
1,299,191
|
|
|
|
1,284,158
|
|
|
|
1,261,527
|
|
Average consumer and small business banking deposits (4)
|
|
|
755,094
|
|
|
|
760,149
|
|
|
|
758,754
|
|
|
|
749,946
|
|
|
|
739,066
|
|
Net interest margin
|
|
|
2.87
|
%
|
|
|
2.90
|
|
|
|
2.87
|
|
|
|
2.87
|
|
|
|
2.82
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
414,633
|
|
|
|
409,594
|
|
|
|
407,560
|
|
|
|
407,947
|
|
|
|
390,832
|
|
Loans
|
|
|
951,873
|
|
|
|
957,423
|
|
|
|
958,405
|
|
|
|
967,604
|
|
|
|
961,326
|
|
Allowance for loan losses
|
|
|
11,078
|
|
|
|
11,073
|
|
|
|
11,168
|
|
|
|
11,419
|
|
|
|
11,583
|
|
Goodwill
|
|
|
26,581
|
|
|
|
26,573
|
|
|
|
26,666
|
|
|
|
26,693
|
|
|
|
26,688
|
|
Assets
|
|
|
1,934,939
|
|
|
|
1,930,871
|
|
|
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1,942,124
|
|
Deposits
|
|
|
1,306,706
|
|
|
|
1,305,830
|
|
|
|
1,325,444
|
|
|
|
1,306,079
|
|
|
|
1,275,894
|
|
Common stockholders' equity
|
|
|
182,128
|
|
|
|
181,428
|
|
|
|
178,388
|
|
|
|
176,469
|
|
|
|
179,916
|
|
Wells Fargo stockholders’ equity
|
|
|
205,929
|
|
|
|
205,230
|
|
|
|
201,500
|
|
|
|
199,581
|
|
|
|
203,028
|
|
Total equity
|
|
|
206,824
|
|
|
|
206,145
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
Tangible common equity (1)
|
|
|
152,901
|
|
|
|
152,064
|
|
|
|
148,850
|
|
|
|
146,737
|
|
|
|
149,829
|
|
Common shares outstanding
|
|
|
4,927.9
|
|
|
|
4,966.8
|
|
|
|
4,996.7
|
|
|
|
5,016.1
|
|
|
|
5,023.9
|
|
Book value per common share (5)
|
|
|
$
|
36.96
|
|
|
|
36.53
|
|
|
|
35.70
|
|
|
|
35.18
|
|
|
|
35.81
|
|
Tangible book value per common share (1)(5)
|
|
|
31.03
|
|
|
|
30.62
|
|
|
|
29.79
|
|
|
|
29.25
|
|
|
|
29.82
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
56.45
|
|
|
|
56.60
|
|
|
|
59.99
|
|
|
|
58.02
|
|
|
|
51.00
|
|
Low
|
|
|
49.28
|
|
|
|
50.84
|
|
|
|
53.35
|
|
|
|
43.55
|
|
|
|
44.10
|
|
Period end
|
|
|
55.15
|
|
|
|
55.41
|
|
|
|
55.66
|
|
|
|
55.11
|
|
|
|
44.28
|
|
Team members (active, full-time equivalent)
|
|
|
268,000
|
|
|
|
270,600
|
|
|
|
272,800
|
|
|
|
269,100
|
|
|
|
268,800
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended September 30,
|
|
|
%
|
|
|
Nine months ended September 30,
|
|
|
%
|
|
(in millions, except per share amounts)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
754
|
|
|
|
593
|
|
|
|
27
|
%
|
|
|
$
|
2,107
|
|
|
|
1,761
|
|
|
|
20
|
%
|
|
Investment securities
|
|
|
2,662
|
|
|
|
2,298
|
|
|
|
16
|
|
|
|
8,035
|
|
|
|
6,736
|
|
|
|
19
|
|
|
Mortgages held for sale
|
|
|
219
|
|
|
|
207
|
|
|
|
6
|
|
|
|
598
|
|
|
|
549
|
|
|
|
9
|
|
|
Loans held for sale
|
|
|
5
|
|
|
|
2
|
|
|
|
150
|
|
|
|
10
|
|
|
|
7
|
|
|
|
43
|
|
|
Loans
|
|
|
10,522
|
|
|
|
9,978
|
|
|
|
5
|
|
|
|
31,021
|
|
|
|
29,377
|
|
|
|
6
|
|
|
Other interest income
|
|
|
896
|
|
|
|
409
|
|
|
|
119
|
|
|
|
2,228
|
|
|
|
1,175
|
|
|
|
90
|
|
|
Total interest income
|
|
|
15,058
|
|
|
|
13,487
|
|
|
|
12
|
|
|
|
43,999
|
|
|
|
39,605
|
|
|
|
11
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
870
|
|
|
|
356
|
|
|
|
144
|
|
|
|
2,090
|
|
|
|
995
|
|
|
|
110
|
|
|
Short-term borrowings
|
|
|
226
|
|
|
|
85
|
|
|
|
166
|
|
|
|
503
|
|
|
|
229
|
|
|
|
120
|
|
|
Long-term debt
|
|
|
1,377
|
|
|
|
1,006
|
|
|
|
37
|
|
|
|
3,838
|
|
|
|
2,769
|
|
|
|
39
|
|
|
Other interest expense
|
|
|
109
|
|
|
|
88
|
|
|
|
24
|
|
|
|
309
|
|
|
|
260
|
|
|
|
19
|
|
|
Total interest expense
|
|
|
2,582
|
|
|
|
1,535
|
|
|
|
68
|
|
|
|
6,740
|
|
|
|
4,253
|
|
|
|
58
|
|
|
Net interest income
|
|
|
12,476
|
|
|
|
11,952
|
|
|
|
4
|
|
|
|
37,259
|
|
|
|
35,352
|
|
|
|
5
|
|
|
Provision for credit losses
|
|
|
717
|
|
|
|
805
|
|
|
|
(11
|
)
|
|
|
1,877
|
|
|
|
2,965
|
|
|
|
(37
|
)
|
|
Net interest income after provision for credit losses
|
|
|
11,759
|
|
|
|
11,147
|
|
|
|
5
|
|
|
|
35,382
|
|
|
|
32,387
|
|
|
|
9
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,276
|
|
|
|
1,370
|
|
|
|
(7
|
)
|
|
|
3,865
|
|
|
|
4,015
|
|
|
|
(4
|
)
|
|
Trust and investment fees
|
|
|
3,609
|
|
|
|
3,613
|
|
|
|
—
|
|
|
|
10,808
|
|
|
|
10,545
|
|
|
|
2
|
|
|
Card fees
|
|
|
1,000
|
|
|
|
997
|
|
|
|
—
|
|
|
|
2,964
|
|
|
|
2,935
|
|
|
|
1
|
|
|
Other fees
|
|
|
877
|
|
|
|
926
|
|
|
|
(5
|
)
|
|
|
2,644
|
|
|
|
2,765
|
|
|
|
(4
|
)
|
|
Mortgage banking
|
|
|
1,046
|
|
|
|
1,667
|
|
|
|
(37
|
)
|
|
|
3,422
|
|
|
|
4,679
|
|
|
|
(27
|
)
|
|
Insurance
|
|
|
269
|
|
|
|
293
|
|
|
|
(8
|
)
|
|
|
826
|
|
|
|
1,006
|
|
|
|
(18
|
)
|
|
Net gains from trading activities
|
|
|
245
|
|
|
|
415
|
|
|
|
(41
|
)
|
|
|
921
|
|
|
|
943
|
|
|
|
(2
|
)
|
|
Net gains on debt securities
|
|
|
166
|
|
|
|
106
|
|
|
|
57
|
|
|
|
322
|
|
|
|
797
|
|
|
|
(60
|
)
|
|
Net gains from equity investments
|
|
|
238
|
|
|
|
140
|
|
|
|
70
|
|
|
|
829
|
|
|
|
573
|
|
|
|
45
|
|
|
Lease income
|
|
|
475
|
|
|
|
534
|
|
|
|
(11
|
)
|
|
|
1,449
|
|
|
|
1,404
|
|
|
|
3
|
|
|
Other
|
|
|
249
|
|
|
|
315
|
|
|
|
(21
|
)
|
|
|
788
|
|
|
|
1,671
|
|
|
|
(53
|
)
|
|
Total noninterest income
|
|
|
9,450
|
|
|
|
10,376
|
|
|
|
(9
|
)
|
|
|
28,838
|
|
|
|
31,333
|
|
|
|
(8
|
)
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
4,356
|
|
|
|
4,224
|
|
|
|
3
|
|
|
|
12,960
|
|
|
|
12,359
|
|
|
|
5
|
|
|
Commission and incentive compensation
|
|
|
2,553
|
|
|
|
2,520
|
|
|
|
1
|
|
|
|
7,777
|
|
|
|
7,769
|
|
|
|
—
|
|
|
Employee benefits
|
|
|
1,279
|
|
|
|
1,223
|
|
|
|
5
|
|
|
|
4,273
|
|
|
|
3,993
|
|
|
|
7
|
|
|
Equipment
|
|
|
523
|
|
|
|
491
|
|
|
|
7
|
|
|
|
1,629
|
|
|
|
1,512
|
|
|
|
8
|
|
|
Net occupancy
|
|
|
716
|
|
|
|
718
|
|
|
|
—
|
|
|
|
2,134
|
|
|
|
2,145
|
|
|
|
(1
|
)
|
|
Core deposit and other intangibles
|
|
|
288
|
|
|
|
299
|
|
|
|
(4
|
)
|
|
|
864
|
|
|
|
891
|
|
|
|
(3
|
)
|
|
FDIC and other deposit assessments
|
|
|
314
|
|
|
|
310
|
|
|
|
1
|
|
|
|
975
|
|
|
|
815
|
|
|
|
20
|
|
|
Other
|
|
|
4,322
|
|
|
|
3,483
|
|
|
|
24
|
|
|
|
11,072
|
|
|
|
9,678
|
|
|
|
14
|
|
|
Total noninterest expense
|
|
|
14,351
|
|
|
|
13,268
|
|
|
|
8
|
|
|
|
41,684
|
|
|
|
39,162
|
|
|
|
6
|
|
|
Income before income tax expense
|
|
|
6,858
|
|
|
|
8,255
|
|
|
|
(17
|
)
|
|
|
22,536
|
|
|
|
24,558
|
|
|
|
(8
|
)
|
|
Income tax expense
|
|
|
2,204
|
|
|
|
2,601
|
|
|
|
(15
|
)
|
|
|
6,486
|
|
|
|
7,817
|
|
|
|
(17
|
)
|
|
Net income before noncontrolling interests
|
|
|
4,654
|
|
|
|
5,654
|
|
|
|
(18
|
)
|
|
|
16,050
|
|
|
|
16,741
|
|
|
|
(4
|
)
|
|
Less: Net income from noncontrolling interests
|
|
|
58
|
|
|
|
10
|
|
|
|
480
|
|
|
|
187
|
|
|
|
77
|
|
|
|
143
|
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
|
5,644
|
|
|
|
(19
|
)
|
|
|
$
|
15,863
|
|
|
|
16,664
|
|
|
|
(5
|
)
|
|
Less: Preferred stock dividends and other
|
|
|
411
|
|
|
|
401
|
|
|
|
2
|
|
|
|
1,218
|
|
|
|
1,163
|
|
|
|
5
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
4,185
|
|
|
|
5,243
|
|
|
|
(20
|
)
|
|
|
$
|
14,645
|
|
|
|
15,501
|
|
|
|
(6
|
)
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
0.85
|
|
|
|
1.04
|
|
|
|
(18
|
)
|
|
|
$
|
2.94
|
|
|
|
3.06
|
|
|
|
(4
|
)
|
|
Diluted earnings per common share
|
|
|
0.84
|
|
|
|
1.03
|
|
|
|
(18
|
)
|
|
|
2.91
|
|
|
|
3.03
|
|
|
|
(4
|
)
|
|
Dividends declared per common share
|
|
|
0.390
|
|
|
|
0.380
|
|
|
|
3
|
|
|
|
1.150
|
|
|
|
1.135
|
|
|
|
1
|
|
|
Average common shares outstanding
|
|
|
4,948.6
|
|
|
|
5,043.4
|
|
|
|
(2
|
)
|
|
|
4,982.1
|
|
|
|
5,061.9
|
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
4,996.8
|
|
|
|
5,094.6
|
|
|
|
(2
|
)
|
|
|
5,035.4
|
|
|
|
5,118.2
|
|
|
|
(2
|
)
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions, except per share amounts)
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
754
|
|
|
|
710
|
|
|
|
643
|
|
|
|
745
|
|
|
|
593
|
|
Investment securities
|
|
|
2,662
|
|
|
|
2,698
|
|
|
|
2,675
|
|
|
|
2,512
|
|
|
|
2,298
|
|
Mortgages held for sale
|
|
|
219
|
|
|
|
195
|
|
|
|
184
|
|
|
|
235
|
|
|
|
207
|
|
Loans held for sale
|
|
|
5
|
|
|
|
4
|
|
|
|
1
|
|
|
|
2
|
|
|
|
2
|
|
Loans
|
|
|
10,522
|
|
|
|
10,358
|
|
|
|
10,141
|
|
|
|
10,128
|
|
|
|
9,978
|
|
Other interest income
|
|
|
896
|
|
|
|
750
|
|
|
|
582
|
|
|
|
436
|
|
|
|
409
|
|
Total interest income
|
|
|
15,058
|
|
|
|
14,715
|
|
|
|
14,226
|
|
|
|
14,058
|
|
|
|
13,487
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
870
|
|
|
|
683
|
|
|
|
537
|
|
|
|
400
|
|
|
|
356
|
|
Short-term borrowings
|
|
|
226
|
|
|
|
163
|
|
|
|
114
|
|
|
|
101
|
|
|
|
85
|
|
Long-term debt
|
|
|
1,377
|
|
|
|
1,278
|
|
|
|
1,183
|
|
|
|
1,061
|
|
|
|
1,006
|
|
Other interest expense
|
|
|
109
|
|
|
|
108
|
|
|
|
92
|
|
|
|
94
|
|
|
|
88
|
|
Total interest expense
|
|
|
2,582
|
|
|
|
2,232
|
|
|
|
1,926
|
|
|
|
1,656
|
|
|
|
1,535
|
|
Net interest income
|
|
|
12,476
|
|
|
|
12,483
|
|
|
|
12,300
|
|
|
|
12,402
|
|
|
|
11,952
|
|
Provision for credit losses
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
|
|
805
|
|
|
|
805
|
|
Net interest income after provision for credit losses
|
|
|
11,759
|
|
|
|
11,928
|
|
|
|
11,695
|
|
|
|
11,597
|
|
|
|
11,147
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,276
|
|
|
|
1,276
|
|
|
|
1,313
|
|
|
|
1,357
|
|
|
|
1,370
|
|
Trust and investment fees
|
|
|
3,609
|
|
|
|
3,629
|
|
|
|
3,570
|
|
|
|
3,698
|
|
|
|
3,613
|
|
Card fees
|
|
|
1,000
|
|
|
|
1,019
|
|
|
|
945
|
|
|
|
1,001
|
|
|
|
997
|
|
Other fees
|
|
|
877
|
|
|
|
902
|
|
|
|
865
|
|
|
|
962
|
|
|
|
926
|
|
Mortgage banking
|
|
|
1,046
|
|
|
|
1,148
|
|
|
|
1,228
|
|
|
|
1,417
|
|
|
|
1,667
|
|
Insurance
|
|
|
269
|
|
|
|
280
|
|
|
|
277
|
|
|
|
262
|
|
|
|
293
|
|
Net gains (losses) from trading activities
|
|
|
245
|
|
|
|
237
|
|
|
|
439
|
|
|
|
(109
|
)
|
|
|
415
|
|
Net gains on debt securities
|
|
|
166
|
|
|
|
120
|
|
|
|
36
|
|
|
|
145
|
|
|
|
106
|
|
Net gains from equity investments
|
|
|
238
|
|
|
|
188
|
|
|
|
403
|
|
|
|
306
|
|
|
|
140
|
|
Lease income
|
|
|
475
|
|
|
|
493
|
|
|
|
481
|
|
|
|
523
|
|
|
|
534
|
|
Other
|
|
|
249
|
|
|
|
394
|
|
|
|
145
|
|
|
|
(382
|
)
|
|
|
315
|
|
Total noninterest income
|
|
|
9,450
|
|
|
|
9,686
|
|
|
|
9,702
|
|
|
|
9,180
|
|
|
|
10,376
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
4,356
|
|
|
|
4,343
|
|
|
|
4,261
|
|
|
|
4,193
|
|
|
|
4,224
|
|
Commission and incentive compensation
|
|
|
2,553
|
|
|
|
2,499
|
|
|
|
2,725
|
|
|
|
2,478
|
|
|
|
2,520
|
|
Employee benefits
|
|
|
1,279
|
|
|
|
1,308
|
|
|
|
1,686
|
|
|
|
1,101
|
|
|
|
1,223
|
|
Equipment
|
|
|
523
|
|
|
|
529
|
|
|
|
577
|
|
|
|
642
|
|
|
|
491
|
|
Net occupancy
|
|
|
716
|
|
|
|
706
|
|
|
|
712
|
|
|
|
710
|
|
|
|
718
|
|
Core deposit and other intangibles
|
|
|
288
|
|
|
|
287
|
|
|
|
289
|
|
|
|
301
|
|
|
|
299
|
|
FDIC and other deposit assessments
|
|
|
314
|
|
|
|
328
|
|
|
|
333
|
|
|
|
353
|
|
|
|
310
|
|
Other
|
|
|
4,322
|
|
|
|
3,541
|
|
|
|
3,209
|
|
|
|
3,437
|
|
|
|
3,483
|
|
Total noninterest expense
|
|
|
14,351
|
|
|
|
13,541
|
|
|
|
13,792
|
|
|
|
13,215
|
|
|
|
13,268
|
|
Income before income tax expense
|
|
|
6,858
|
|
|
|
8,073
|
|
|
|
7,605
|
|
|
|
7,562
|
|
|
|
8,255
|
|
Income tax expense
|
|
|
2,204
|
|
|
|
2,225
|
|
|
|
2,057
|
|
|
|
2,258
|
|
|
|
2,601
|
|
Net income before noncontrolling interests
|
|
|
4,654
|
|
|
|
5,848
|
|
|
|
5,548
|
|
|
|
5,304
|
|
|
|
5,654
|
|
Less: Net income from noncontrolling interests
|
|
|
58
|
|
|
|
38
|
|
|
|
91
|
|
|
|
30
|
|
|
|
10
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
|
5,810
|
|
|
|
5,457
|
|
|
|
5,274
|
|
|
|
5,644
|
|
Less: Preferred stock dividends and other
|
|
|
411
|
|
|
|
406
|
|
|
|
401
|
|
|
|
402
|
|
|
|
401
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
4,185
|
|
|
|
5,404
|
|
|
|
5,056
|
|
|
|
4,872
|
|
|
|
5,243
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
0.85
|
|
|
|
1.08
|
|
|
|
1.01
|
|
|
|
0.97
|
|
|
|
1.04
|
|
Diluted earnings per common share
|
|
|
0.84
|
|
|
|
1.07
|
|
|
|
1.00
|
|
|
|
0.96
|
|
|
|
1.03
|
|
Dividends declared per common share
|
|
|
0.390
|
|
|
|
0.380
|
|
|
|
0.380
|
|
|
|
0.380
|
|
|
|
0.380
|
|
Average common shares outstanding
|
|
|
4,948.6
|
|
|
|
4,989.9
|
|
|
|
5,008.6
|
|
|
|
5,025.6
|
|
|
|
5,043.4
|
|
Diluted average common shares outstanding
|
|
|
4,996.8
|
|
|
|
5,037.7
|
|
|
|
5,070.4
|
|
|
|
5,078.2
|
|
|
|
5,094.6
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
Quarter ended September 30,
|
|
|
%
|
|
|
Nine months ended September 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
|
5,644
|
|
|
|
(19)%
|
|
|
$
|
15,863
|
|
|
|
16,664
|
|
|
|
(5)%
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
891
|
|
|
|
112
|
|
|
|
696
|
|
|
2,825
|
|
|
|
2,478
|
|
|
|
14
|
|
Reclassification of net gains to net income
|
|
|
(200
|
)
|
|
|
(193
|
)
|
|
|
4
|
|
|
(522
|
)
|
|
|
(1,001
|
)
|
|
|
(48)
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
36
|
|
|
|
(445
|
)
|
|
|
NM
|
|
|
279
|
|
|
|
2,611
|
|
|
|
(89)
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
(105
|
)
|
|
|
(262
|
)
|
|
|
(60)
|
|
|
(460
|
)
|
|
|
(783
|
)
|
|
|
(41)
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial and prior service gains (losses) arising during the
period
|
|
|
11
|
|
|
|
(447
|
)
|
|
|
NM
|
|
|
4
|
|
|
|
(474
|
)
|
|
|
NM
|
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
41
|
|
|
|
39
|
|
|
|
5
|
|
|
120
|
|
|
|
115
|
|
|
|
4
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
40
|
|
|
|
(10
|
)
|
|
|
NM
|
|
|
87
|
|
|
|
27
|
|
|
|
222
|
|
Other comprehensive income (loss), before tax
|
|
|
714
|
|
|
|
(1,206
|
)
|
|
|
NM
|
|
|
2,333
|
|
|
|
2,973
|
|
|
|
(22)
|
|
Income tax benefit (expense) related to other comprehensive income
|
|
|
(265
|
)
|
|
|
461
|
|
|
|
NM
|
|
|
(852
|
)
|
|
|
(1,110
|
)
|
|
|
(23)
|
|
Other comprehensive income (loss), net of tax
|
|
|
449
|
|
|
|
(745
|
)
|
|
|
NM
|
|
|
1,481
|
|
|
|
1,863
|
|
|
|
(21)
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
(34
|
)
|
|
|
19
|
|
|
|
NM
|
|
|
(29
|
)
|
|
|
(24
|
)
|
|
|
21
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
483
|
|
|
|
(764
|
)
|
|
|
NM
|
|
|
1,510
|
|
|
|
1,887
|
|
|
|
(20)
|
|
Wells Fargo comprehensive income
|
|
|
5,079
|
|
|
|
4,880
|
|
|
|
4
|
|
|
17,373
|
|
|
|
18,551
|
|
|
|
(6)
|
|
Comprehensive income from noncontrolling interests
|
|
|
24
|
|
|
|
29
|
|
|
|
(17)
|
|
|
158
|
|
|
|
53
|
|
|
|
198
|
|
Total comprehensive income
|
|
|
$
|
5,103
|
|
|
|
4,909
|
|
|
|
4
|
|
|
$
|
17,531
|
|
|
|
18,604
|
|
|
|
(6)
|
|
NM – Not meaningful
|
|
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
Balance, beginning of period
|
|
|
$
|
206,145
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
|
|
202,661
|
|
|
Wells Fargo net income
|
|
|
4,596
|
|
|
|
5,810
|
|
|
|
5,457
|
|
|
|
5,274
|
|
|
|
5,644
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
483
|
|
|
|
1,068
|
|
|
|
(41
|
)
|
|
|
(5,321
|
)
|
|
|
(764
|
)
|
|
Noncontrolling interests
|
|
|
(20
|
)
|
|
|
(75
|
)
|
|
|
75
|
|
|
|
(13
|
)
|
|
|
14
|
|
|
Common stock issued
|
|
|
254
|
|
|
|
252
|
|
|
|
1,406
|
|
|
|
610
|
|
|
|
300
|
|
|
Common stock repurchased (1)
|
|
|
(2,601
|
)
|
|
|
(2,287
|
)
|
|
|
(2,175
|
)
|
|
|
(2,034
|
)
|
|
|
(1,839
|
)
|
|
Preferred stock released by ESOP
|
|
|
209
|
|
|
|
406
|
|
|
|
—
|
|
|
|
43
|
|
|
|
236
|
|
|
Common stock warrants repurchased/exercised
|
|
|
(19
|
)
|
|
|
(24
|
)
|
|
|
(44
|
)
|
|
|
—
|
|
|
|
(17
|
)
|
|
Preferred stock issued
|
|
|
—
|
|
|
|
677
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Common stock dividends
|
|
|
(1,936
|
)
|
|
|
(1,899
|
)
|
|
|
(1,903
|
)
|
|
|
(1,909
|
)
|
|
|
(1,918
|
)
|
|
Preferred stock dividends
|
|
|
(411
|
)
|
|
|
(406
|
)
|
|
|
(401
|
)
|
|
|
(401
|
)
|
|
|
(401
|
)
|
|
Tax benefit from stock incentive compensation (2)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
74
|
|
|
|
31
|
|
|
Stock incentive compensation expense
|
|
|
135
|
|
|
|
145
|
|
|
|
389
|
|
|
|
232
|
|
|
|
39
|
|
|
Net change in deferred compensation and related plans
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
(771
|
)
|
|
|
(16
|
)
|
|
|
(28
|
)
|
|
Balance, end of period
|
|
|
$
|
206,824
|
|
|
|
206,145
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
|
(1) For the quarter ended December 31, 2016, includes $750 million
related to a private forward repurchase transaction that settled
in first quarter 2017 for 14.7 million shares of common stock.
|
|
(2) Effective January 1, 2017, we adopted Accounting Standards
Update 2016-09 (Improvements to Employee Share-Based Payment
Accounting). Accordingly, tax benefit from stock incentive
compensation is reported in income tax expense in the consolidated
statement of income.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Quarter ended September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
(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
|
|
|
$
|
276,129
|
|
|
|
1.20
|
%
|
|
|
$
|
832
|
|
|
|
299,351
|
|
|
|
0.50
|
%
|
|
|
$
|
373
|
|
Trading assets
|
|
|
103,589
|
|
|
|
2.96
|
|
|
|
767
|
|
|
|
88,838
|
|
|
|
2.72
|
|
|
|
605
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
14,529
|
|
|
|
1.31
|
|
|
|
48
|
|
|
|
25,817
|
|
|
|
1.52
|
|
|
|
99
|
|
Securities of U.S. states and political subdivisions
|
|
|
52,500
|
|
|
|
4.16
|
|
|
|
546
|
|
|
|
55,170
|
|
|
|
4.28
|
|
|
|
590
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
139,781
|
|
|
|
2.58
|
|
|
|
903
|
|
|
|
105,780
|
|
|
|
2.39
|
|
|
|
631
|
|
Residential and commercial
|
|
|
11,013
|
|
|
|
5.43
|
|
|
|
149
|
|
|
|
18,080
|
|
|
|
5.54
|
|
|
|
250
|
|
Total mortgage-backed securities
|
|
|
150,794
|
|
|
|
2.79
|
|
|
|
1,052
|
|
|
|
123,860
|
|
|
|
2.85
|
|
|
|
881
|
|
Other debt and equity securities
|
|
|
48,082
|
|
|
|
3.75
|
|
|
|
453
|
|
|
|
54,176
|
|
|
|
3.37
|
|
|
|
459
|
|
Total available-for-sale securities
|
|
|
265,905
|
|
|
|
3.15
|
|
|
|
2,099
|
|
|
|
259,023
|
|
|
|
3.13
|
|
|
|
2,029
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,708
|
|
|
|
2.18
|
|
|
|
246
|
|
|
|
44,678
|
|
|
|
2.19
|
|
|
|
246
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,266
|
|
|
|
5.44
|
|
|
|
85
|
|
|
|
2,507
|
|
|
|
5.24
|
|
|
|
33
|
|
Federal agency and other mortgage-backed securities
|
|
|
88,272
|
|
|
|
2.26
|
|
|
|
498
|
|
|
|
47,971
|
|
|
|
1.97
|
|
|
|
236
|
|
Other debt securities
|
|
|
1,488
|
|
|
|
3.05
|
|
|
|
12
|
|
|
|
3,909
|
|
|
|
1.98
|
|
|
|
19
|
|
Total held-to-maturity securities
|
|
|
140,734
|
|
|
|
2.38
|
|
|
|
841
|
|
|
|
99,065
|
|
|
|
2.15
|
|
|
|
534
|
|
Total investment securities
|
|
|
406,639
|
|
|
|
2.89
|
|
|
|
2,940
|
|
|
|
358,088
|
|
|
|
2.86
|
|
|
|
2,563
|
|
Mortgages held for sale (4)
|
|
|
22,923
|
|
|
|
3.82
|
|
|
|
219
|
|
|
|
24,060
|
|
|
|
3.44
|
|
|
|
207
|
|
Loans held for sale (4)
|
|
|
152
|
|
|
|
13.35
|
|
|
|
5
|
|
|
|
199
|
|
|
|
3.04
|
|
|
|
2
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
270,091
|
|
|
|
3.81
|
|
|
|
2,590
|
|
|
|
271,226
|
|
|
|
3.48
|
|
|
|
2,369
|
|
Commercial and industrial - Non U.S.
|
|
|
57,738
|
|
|
|
2.90
|
|
|
|
421
|
|
|
|
51,261
|
|
|
|
2.40
|
|
|
|
309
|
|
Real estate mortgage
|
|
|
129,087
|
|
|
|
3.83
|
|
|
|
1,245
|
|
|
|
128,809
|
|
|
|
3.48
|
|
|
|
1,127
|
|
Real estate construction
|
|
|
24,981
|
|
|
|
4.18
|
|
|
|
263
|
|
|
|
23,212
|
|
|
|
3.50
|
|
|
|
205
|
|
Lease financing
|
|
|
19,155
|
|
|
|
4.59
|
|
|
|
220
|
|
|
|
18,896
|
|
|
|
4.70
|
|
|
|
223
|
|
Total commercial
|
|
|
501,052
|
|
|
|
3.76
|
|
|
|
4,739
|
|
|
|
493,404
|
|
|
|
3.42
|
|
|
|
4,233
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
278,371
|
|
|
|
4.03
|
|
|
|
2,809
|
|
|
|
278,509
|
|
|
|
3.97
|
|
|
|
2,764
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
41,916
|
|
|
|
4.95
|
|
|
|
521
|
|
|
|
48,927
|
|
|
|
4.37
|
|
|
|
537
|
|
Credit card
|
|
|
35,657
|
|
|
|
12.41
|
|
|
|
1,114
|
|
|
|
34,578
|
|
|
|
11.60
|
|
|
|
1,008
|
|
Automobile
|
|
|
56,746
|
|
|
|
5.34
|
|
|
|
764
|
|
|
|
62,461
|
|
|
|
5.60
|
|
|
|
880
|
|
Other revolving credit and installment
|
|
|
38,601
|
|
|
|
6.31
|
|
|
|
615
|
|
|
|
39,605
|
|
|
|
5.92
|
|
|
|
590
|
|
Total consumer
|
|
|
451,291
|
|
|
|
5.14
|
|
|
|
5,823
|
|
|
|
464,080
|
|
|
|
4.97
|
|
|
|
5,779
|
|
Total loans (4)
|
|
|
952,343
|
|
|
|
4.41
|
|
|
|
10,562
|
|
|
|
957,484
|
|
|
|
4.17
|
|
|
|
10,012
|
|
Other
|
|
|
15,007
|
|
|
|
1.69
|
|
|
|
65
|
|
|
|
6,488
|
|
|
|
2.30
|
|
|
|
36
|
|
Total earning assets
|
|
|
$
|
1,776,782
|
|
|
|
3.45
|
%
|
|
|
$
|
15,390
|
|
|
|
1,734,508
|
|
|
|
3.17
|
%
|
|
|
$
|
13,798
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
48,278
|
|
|
|
0.57
|
%
|
|
|
$
|
69
|
|
|
|
44,056
|
|
|
|
0.15
|
%
|
|
|
$
|
17
|
|
Market rate and other savings
|
|
|
681,187
|
|
|
|
0.17
|
|
|
|
293
|
|
|
|
667,185
|
|
|
|
0.07
|
|
|
|
110
|
|
Savings certificates
|
|
|
21,806
|
|
|
|
0.31
|
|
|
|
16
|
|
|
|
25,185
|
|
|
|
0.30
|
|
|
|
19
|
|
Other time deposits
|
|
|
66,046
|
|
|
|
1.51
|
|
|
|
252
|
|
|
|
54,921
|
|
|
|
0.93
|
|
|
|
128
|
|
Deposits in foreign offices
|
|
|
124,746
|
|
|
|
0.76
|
|
|
|
240
|
|
|
|
107,072
|
|
|
|
0.30
|
|
|
|
82
|
|
Total interest-bearing deposits
|
|
|
942,063
|
|
|
|
0.37
|
|
|
|
870
|
|
|
|
898,419
|
|
|
|
0.16
|
|
|
|
356
|
|
Short-term borrowings
|
|
|
99,193
|
|
|
|
0.91
|
|
|
|
226
|
|
|
|
116,228
|
|
|
|
0.29
|
|
|
|
86
|
|
Long-term debt
|
|
|
243,137
|
|
|
|
2.26
|
|
|
|
1,377
|
|
|
|
252,400
|
|
|
|
1.59
|
|
|
|
1,006
|
|
Other liabilities
|
|
|
24,851
|
|
|
|
1.74
|
|
|
|
109
|
|
|
|
16,771
|
|
|
|
2.11
|
|
|
|
88
|
|
Total interest-bearing liabilities
|
|
|
1,309,244
|
|
|
|
0.79
|
|
|
|
2,582
|
|
|
|
1,283,818
|
|
|
|
0.48
|
|
|
|
1,536
|
|
Portion of noninterest-bearing funding sources
|
|
|
467,538
|
|
|
|
—
|
|
|
|
—
|
|
|
|
450,690
|
|
|
|
—
|
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,776,782
|
|
|
|
0.58
|
|
|
|
2,582
|
|
|
|
1,734,508
|
|
|
|
0.35
|
|
|
|
1,536
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
2.87
|
%
|
|
|
$
|
12,808
|
|
|
|
|
|
|
2.82
|
%
|
|
|
$
|
12,262
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,456
|
|
|
|
|
|
|
|
|
|
18,682
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,600
|
|
|
|
|
|
|
|
|
|
26,979
|
|
|
|
|
|
|
|
|
Other
|
|
|
116,685
|
|
|
|
|
|
|
|
|
|
134,417
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
161,741
|
|
|
|
|
|
|
|
|
|
180,078
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
364,293
|
|
|
|
|
|
|
|
|
|
363,108
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
57,052
|
|
|
|
|
|
|
|
|
|
63,777
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
207,934
|
|
|
|
|
|
|
|
|
|
203,883
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(467,538
|
)
|
|
|
|
|
|
|
|
|
(450,690
|
)
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
161,741
|
|
|
|
|
|
|
|
|
|
180,078
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,938,523
|
|
|
|
|
|
|
|
|
|
1,914,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.25% and 3.50% for the quarters
ended September 30, 2017 and 2016, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 1.31% and
0.79% 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 $332 million and
$310 million for the quarters ended September 30, 2017 and 2016,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
|
2017
|
|
|
2016
|
|
(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
|
|
|
$
|
280,477
|
|
|
|
0.98
|
%
|
|
|
$
|
2,062
|
|
|
|
292,635
|
|
|
|
0.49
|
%
|
|
|
$
|
1,076
|
|
Trading assets
|
|
|
98,516
|
|
|
|
2.90
|
|
|
|
2,144
|
|
|
|
83,580
|
|
|
|
2.86
|
|
|
|
1,792
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
19,182
|
|
|
|
1.48
|
|
|
|
212
|
|
|
|
30,588
|
|
|
|
1.56
|
|
|
|
358
|
|
Securities of U.S. states and political subdivisions
|
|
|
52,748
|
|
|
|
4.07
|
|
|
|
1,612
|
|
|
|
52,637
|
|
|
|
4.25
|
|
|
|
1,678
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
142,748
|
|
|
|
2.60
|
|
|
|
2,782
|
|
|
|
98,099
|
|
|
|
2.57
|
|
|
|
1,889
|
|
Residential and commercial
|
|
|
12,671
|
|
|
|
5.44
|
|
|
|
516
|
|
|
|
19,488
|
|
|
|
5.39
|
|
|
|
787
|
|
Total mortgage-backed securities
|
|
|
155,419
|
|
|
|
2.83
|
|
|
|
3,298
|
|
|
|
117,587
|
|
|
|
3.03
|
|
|
|
2,676
|
|
Other debt and equity securities
|
|
|
49,212
|
|
|
|
3.74
|
|
|
|
1,377
|
|
|
|
53,680
|
|
|
|
3.36
|
|
|
|
1,349
|
|
Total available-for-sale securities
|
|
|
276,561
|
|
|
|
3.13
|
|
|
|
6,499
|
|
|
|
254,492
|
|
|
|
3.18
|
|
|
|
6,061
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,701
|
|
|
|
2.19
|
|
|
|
733
|
|
|
|
44,671
|
|
|
|
2.19
|
|
|
|
733
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,270
|
|
|
|
5.35
|
|
|
|
251
|
|
|
|
2,274
|
|
|
|
5.34
|
|
|
|
91
|
|
Federal agency and other mortgage-backed securities
|
|
|
74,525
|
|
|
|
2.38
|
|
|
|
1,329
|
|
|
|
37,087
|
|
|
|
2.08
|
|
|
|
577
|
|
Other debt securities
|
|
|
2,531
|
|
|
|
2.48
|
|
|
|
47
|
|
|
|
4,193
|
|
|
|
1.94
|
|
|
|
61
|
|
Total held-to-maturity securities
|
|
|
128,027
|
|
|
|
2.46
|
|
|
|
2,360
|
|
|
|
88,225
|
|
|
|
2.21
|
|
|
|
1,462
|
|
Total investment securities
|
|
|
404,588
|
|
|
|
2.92
|
|
|
|
8,859
|
|
|
|
342,717
|
|
|
|
2.93
|
|
|
|
7,523
|
|
Mortgages held for sale (4)
|
|
|
20,869
|
|
|
|
3.82
|
|
|
|
598
|
|
|
|
20,702
|
|
|
|
3.53
|
|
|
|
549
|
|
Loans held for sale (4)
|
|
|
158
|
|
|
|
8.44
|
|
|
|
10
|
|
|
|
240
|
|
|
|
3.71
|
|
|
|
7
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
272,621
|
|
|
|
3.70
|
|
|
|
7,547
|
|
|
|
266,622
|
|
|
|
3.44
|
|
|
|
6,874
|
|
Commercial and industrial - Non U.S.
|
|
|
56,512
|
|
|
|
2.83
|
|
|
|
1,196
|
|
|
|
50,658
|
|
|
|
2.29
|
|
|
|
867
|
|
Real estate mortgage
|
|
|
130,931
|
|
|
|
3.69
|
|
|
|
3,615
|
|
|
|
125,902
|
|
|
|
3.43
|
|
|
|
3,236
|
|
Real estate construction
|
|
|
24,949
|
|
|
|
4.00
|
|
|
|
747
|
|
|
|
22,978
|
|
|
|
3.53
|
|
|
|
608
|
|
Lease financing
|
|
|
19,094
|
|
|
|
4.78
|
|
|
|
685
|
|
|
|
17,629
|
|
|
|
4.86
|
|
|
|
643
|
|
Total commercial
|
|
|
504,107
|
|
|
|
3.66
|
|
|
|
13,790
|
|
|
|
483,789
|
|
|
|
3.38
|
|
|
|
12,228
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
276,330
|
|
|
|
4.04
|
|
|
|
8,380
|
|
|
|
276,369
|
|
|
|
4.01
|
|
|
|
8,311
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
43,589
|
|
|
|
4.77
|
|
|
|
1,557
|
|
|
|
50,585
|
|
|
|
4.38
|
|
|
|
1,659
|
|
Credit card
|
|
|
35,322
|
|
|
|
12.19
|
|
|
|
3,219
|
|
|
|
33,774
|
|
|
|
11.58
|
|
|
|
2,927
|
|
Automobile
|
|
|
59,105
|
|
|
|
5.41
|
|
|
|
2,392
|
|
|
|
61,246
|
|
|
|
5.64
|
|
|
|
2,588
|
|
Other revolving credit and installment
|
|
|
39,128
|
|
|
|
6.15
|
|
|
|
1,801
|
|
|
|
39,434
|
|
|
|
5.94
|
|
|
|
1,755
|
|
Total consumer
|
|
|
453,474
|
|
|
|
5.11
|
|
|
|
17,349
|
|
|
|
461,408
|
|
|
|
4.99
|
|
|
|
17,240
|
|
Total loans (4)
|
|
|
957,581
|
|
|
|
4.34
|
|
|
|
31,139
|
|
|
|
945,197
|
|
|
|
4.16
|
|
|
|
29,468
|
|
Other
|
|
|
10,892
|
|
|
|
2.06
|
|
|
|
169
|
|
|
|
6,104
|
|
|
|
2.23
|
|
|
|
101
|
|
Total earning assets
|
|
|
$
|
1,773,081
|
|
|
|
3.39
|
%
|
|
|
$
|
44,981
|
|
|
|
1,691,175
|
|
|
|
3.20
|
%
|
|
|
$
|
40,516
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
49,134
|
|
|
|
0.43
|
%
|
|
|
$
|
156
|
|
|
|
40,858
|
|
|
|
0.13
|
%
|
|
|
$
|
41
|
|
Market rate and other savings
|
|
|
682,780
|
|
|
|
0.13
|
|
|
|
664
|
|
|
|
659,257
|
|
|
|
0.07
|
|
|
|
327
|
|
Savings certificates
|
|
|
22,618
|
|
|
|
0.30
|
|
|
|
50
|
|
|
|
26,432
|
|
|
|
0.37
|
|
|
|
73
|
|
Other time deposits
|
|
|
59,414
|
|
|
|
1.42
|
|
|
|
633
|
|
|
|
58,087
|
|
|
|
0.84
|
|
|
|
364
|
|
Deposits in foreign offices
|
|
|
123,553
|
|
|
|
0.64
|
|
|
|
587
|
|
|
|
100,783
|
|
|
|
0.25
|
|
|
|
190
|
|
Total interest-bearing deposits
|
|
|
937,499
|
|
|
|
0.30
|
|
|
|
2,090
|
|
|
|
885,417
|
|
|
|
0.15
|
|
|
|
995
|
|
Short-term borrowings
|
|
|
97,837
|
|
|
|
0.69
|
|
|
|
505
|
|
|
|
111,993
|
|
|
|
0.28
|
|
|
|
231
|
|
Long-term debt
|
|
|
250,755
|
|
|
|
2.04
|
|
|
|
3,838
|
|
|
|
235,209
|
|
|
|
1.57
|
|
|
|
2,769
|
|
Other liabilities
|
|
|
20,910
|
|
|
|
1.97
|
|
|
|
309
|
|
|
|
16,534
|
|
|
|
2.10
|
|
|
|
260
|
|
Total interest-bearing liabilities
|
|
|
1,307,001
|
|
|
|
0.69
|
|
|
|
6,742
|
|
|
|
1,249,153
|
|
|
|
0.45
|
|
|
|
4,255
|
|
Portion of noninterest-bearing funding sources
|
|
|
466,080
|
|
|
|
—
|
|
|
|
—
|
|
|
|
442,022
|
|
|
|
—
|
|
|
|
—
|
|
Total funding sources
|
|
|
$
|
1,773,081
|
|
|
|
0.51
|
|
|
|
6,742
|
|
|
|
1,691,175
|
|
|
|
0.34
|
|
|
|
4,255
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
2.88
|
%
|
|
|
$
|
38,239
|
|
|
|
|
|
|
2.86
|
%
|
|
|
$
|
36,261
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,443
|
|
|
|
|
|
|
|
|
|
18,499
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,645
|
|
|
|
|
|
|
|
|
|
26,696
|
|
|
|
|
|
|
|
|
Other
|
|
|
114,073
|
|
|
|
|
|
|
|
|
|
129,324
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
159,161
|
|
|
|
|
|
|
|
|
|
174,519
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
364,774
|
|
|
|
|
|
|
|
|
|
353,870
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
55,221
|
|
|
|
|
|
|
|
|
|
62,169
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
205,246
|
|
|
|
|
|
|
|
|
|
200,502
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(466,080
|
)
|
|
|
|
|
|
|
|
|
(442,022
|
)
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
159,161
|
|
|
|
|
|
|
|
|
|
174,519
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,932,242
|
|
|
|
|
|
|
|
|
|
1,865,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.03% and 3.50% for the first nine
months of 2017 and 2016, respectively. The average three-month
London Interbank Offered Rate (LIBOR) was 1.20% and 0.69% 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 $980 million and
$909 million for the first nine months of 2017 and 2016,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
|
Quarter ended
|
|
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
|
|
Mar 31, 2017
|
|
|
Dec 31, 2016
|
|
|
Sep 30, 2016
|
|
($ 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
|
|
|
$
|
276.1
|
|
|
|
1.20
|
%
|
|
|
$
|
281.6
|
|
|
|
0.99
|
%
|
|
|
$
|
283.8
|
|
|
|
0.76
|
%
|
|
|
$
|
273.1
|
|
|
|
0.56
|
%
|
|
|
$
|
299.4
|
|
|
|
0.50
|
%
|
|
Trading assets
|
|
|
103.6
|
|
|
|
2.96
|
|
|
|
98.1
|
|
|
|
2.95
|
|
|
|
93.8
|
|
|
|
2.80
|
|
|
|
102.8
|
|
|
|
2.96
|
|
|
|
88.8
|
|
|
|
2.72
|
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
14.5
|
|
|
|
1.31
|
|
|
|
18.1
|
|
|
|
1.53
|
|
|
|
25.0
|
|
|
|
1.54
|
|
|
|
25.9
|
|
|
|
1.53
|
|
|
|
25.8
|
|
|
|
1.52
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
52.5
|
|
|
|
4.16
|
|
|
|
53.5
|
|
|
|
4.03
|
|
|
|
52.2
|
|
|
|
4.03
|
|
|
|
53.9
|
|
|
|
4.06
|
|
|
|
55.2
|
|
|
|
4.28
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
139.8
|
|
|
|
2.58
|
|
|
|
132.0
|
|
|
|
2.63
|
|
|
|
156.6
|
|
|
|
2.58
|
|
|
|
148.0
|
|
|
|
2.37
|
|
|
|
105.8
|
|
|
|
2.39
|
|
|
Residential and commercial
|
|
|
11.0
|
|
|
|
5.43
|
|
|
|
12.6
|
|
|
|
5.55
|
|
|
|
14.5
|
|
|
|
5.32
|
|
|
|
16.5
|
|
|
|
5.87
|
|
|
|
18.1
|
|
|
|
5.54
|
|
|
Total mortgage-backed securities
|
|
|
150.8
|
|
|
|
2.79
|
|
|
|
144.6
|
|
|
|
2.89
|
|
|
|
171.1
|
|
|
|
2.81
|
|
|
|
164.5
|
|
|
|
2.72
|
|
|
|
123.9
|
|
|
|
2.85
|
|
|
Other debt and equity securities
|
|
|
48.1
|
|
|
|
3.75
|
|
|
|
49.0
|
|
|
|
3.87
|
|
|
|
50.7
|
|
|
|
3.60
|
|
|
|
52.7
|
|
|
|
3.71
|
|
|
|
54.2
|
|
|
|
3.37
|
|
|
Total available-for-sale securities
|
|
|
265.9
|
|
|
|
3.15
|
|
|
|
265.2
|
|
|
|
3.21
|
|
|
|
299.0
|
|
|
|
3.05
|
|
|
|
297.0
|
|
|
|
3.03
|
|
|
|
259.1
|
|
|
|
3.13
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44.7
|
|
|
|
2.18
|
|
|
|
44.7
|
|
|
|
2.19
|
|
|
|
44.7
|
|
|
|
2.20
|
|
|
|
44.7
|
|
|
|
2.20
|
|
|
|
44.6
|
|
|
|
2.19
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
6.3
|
|
|
|
5.44
|
|
|
|
6.3
|
|
|
|
5.29
|
|
|
|
6.3
|
|
|
|
5.30
|
|
|
|
4.7
|
|
|
|
5.31
|
|
|
|
2.5
|
|
|
|
5.24
|
|
|
Federal agency and other mortgage-backed securities
|
|
|
88.3
|
|
|
|
2.26
|
|
|
|
83.1
|
|
|
|
2.44
|
|
|
|
51.8
|
|
|
|
2.51
|
|
|
|
46.0
|
|
|
|
1.81
|
|
|
|
48.0
|
|
|
|
1.97
|
|
|
Other debt securities
|
|
|
1.4
|
|
|
|
3.05
|
|
|
|
2.8
|
|
|
|
2.34
|
|
|
|
3.3
|
|
|
|
2.34
|
|
|
|
3.6
|
|
|
|
2.26
|
|
|
|
3.9
|
|
|
|
1.98
|
|
|
Total held-to-maturity securities
|
|
|
140.7
|
|
|
|
2.38
|
|
|
|
136.9
|
|
|
|
2.49
|
|
|
|
106.1
|
|
|
|
2.54
|
|
|
|
99.0
|
|
|
|
2.17
|
|
|
|
99.0
|
|
|
|
2.15
|
|
|
Total investment securities
|
|
|
406.6
|
|
|
|
2.89
|
|
|
|
402.1
|
|
|
|
2.96
|
|
|
|
405.1
|
|
|
|
2.92
|
|
|
|
396.0
|
|
|
|
2.82
|
|
|
|
358.1
|
|
|
|
2.86
|
|
|
Mortgages held for sale
|
|
|
22.9
|
|
|
|
3.82
|
|
|
|
19.8
|
|
|
|
3.94
|
|
|
|
19.9
|
|
|
|
3.70
|
|
|
|
27.5
|
|
|
|
3.43
|
|
|
|
24.1
|
|
|
|
3.44
|
|
|
Loans held for sale
|
|
|
0.2
|
|
|
|
13.35
|
|
|
|
0.2
|
|
|
|
6.95
|
|
|
|
0.1
|
|
|
|
4.44
|
|
|
|
0.2
|
|
|
|
5.42
|
|
|
|
0.2
|
|
|
|
3.04
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
270.1
|
|
|
|
3.81
|
|
|
|
273.1
|
|
|
|
3.70
|
|
|
|
274.8
|
|
|
|
3.59
|
|
|
|
272.8
|
|
|
|
3.46
|
|
|
|
271.2
|
|
|
|
3.48
|
|
|
Commercial and industrial - Non U.S.
|
|
|
57.7
|
|
|
|
2.90
|
|
|
|
56.4
|
|
|
|
2.86
|
|
|
|
55.3
|
|
|
|
2.73
|
|
|
|
54.4
|
|
|
|
2.58
|
|
|
|
51.3
|
|
|
|
2.40
|
|
|
Real estate mortgage
|
|
|
129.1
|
|
|
|
3.83
|
|
|
|
131.3
|
|
|
|
3.68
|
|
|
|
132.4
|
|
|
|
3.56
|
|
|
|
131.2
|
|
|
|
3.44
|
|
|
|
128.8
|
|
|
|
3.48
|
|
|
Real estate construction
|
|
|
25.0
|
|
|
|
4.18
|
|
|
|
25.3
|
|
|
|
4.10
|
|
|
|
24.6
|
|
|
|
3.72
|
|
|
|
23.9
|
|
|
|
3.61
|
|
|
|
23.2
|
|
|
|
3.50
|
|
|
Lease financing
|
|
|
19.2
|
|
|
|
4.59
|
|
|
|
19.0
|
|
|
|
4.82
|
|
|
|
19.1
|
|
|
|
4.94
|
|
|
|
18.9
|
|
|
|
5.78
|
|
|
|
18.9
|
|
|
|
4.70
|
|
|
Total commercial
|
|
|
501.1
|
|
|
|
3.76
|
|
|
|
505.1
|
|
|
|
3.67
|
|
|
|
506.2
|
|
|
|
3.54
|
|
|
|
501.2
|
|
|
|
3.45
|
|
|
|
493.4
|
|
|
|
3.42
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
278.4
|
|
|
|
4.03
|
|
|
|
275.1
|
|
|
|
4.08
|
|
|
|
275.5
|
|
|
|
4.02
|
|
|
|
277.7
|
|
|
|
4.01
|
|
|
|
278.5
|
|
|
|
3.97
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
41.9
|
|
|
|
4.95
|
|
|
|
43.6
|
|
|
|
4.78
|
|
|
|
45.3
|
|
|
|
4.60
|
|
|
|
47.2
|
|
|
|
4.42
|
|
|
|
48.9
|
|
|
|
4.37
|
|
|
Credit card
|
|
|
35.6
|
|
|
|
12.41
|
|
|
|
34.9
|
|
|
|
12.18
|
|
|
|
35.4
|
|
|
|
11.97
|
|
|
|
35.4
|
|
|
|
11.73
|
|
|
|
34.6
|
|
|
|
11.60
|
|
|
Automobile
|
|
|
56.7
|
|
|
|
5.34
|
|
|
|
59.1
|
|
|
|
5.43
|
|
|
|
61.5
|
|
|
|
5.46
|
|
|
|
62.5
|
|
|
|
5.54
|
|
|
|
62.5
|
|
|
|
5.60
|
|
|
Other revolving credit and installment
|
|
|
38.6
|
|
|
|
6.31
|
|
|
|
39.1
|
|
|
|
6.13
|
|
|
|
39.7
|
|
|
|
6.02
|
|
|
|
40.1
|
|
|
|
5.91
|
|
|
|
39.6
|
|
|
|
5.92
|
|
|
Total consumer
|
|
|
451.2
|
|
|
|
5.14
|
|
|
|
451.8
|
|
|
|
5.13
|
|
|
|
457.4
|
|
|
|
5.06
|
|
|
|
462.9
|
|
|
|
5.01
|
|
|
|
464.1
|
|
|
|
4.97
|
|
|
Total loans
|
|
|
952.3
|
|
|
|
4.41
|
|
|
|
956.9
|
|
|
|
4.36
|
|
|
|
963.6
|
|
|
|
4.26
|
|
|
|
964.1
|
|
|
|
4.20
|
|
|
|
957.5
|
|
|
|
4.17
|
|
|
Other
|
|
|
15.1
|
|
|
|
1.69
|
|
|
|
10.6
|
|
|
|
2.00
|
|
|
|
6.8
|
|
|
|
2.96
|
|
|
|
6.7
|
|
|
|
3.27
|
|
|
|
6.4
|
|
|
|
2.30
|
|
|
Total earning assets
|
|
|
$
|
1,776.8
|
|
|
|
3.45
|
%
|
|
|
$
|
1,769.3
|
|
|
|
3.41
|
%
|
|
|
$
|
1,773.1
|
|
|
|
3.31
|
%
|
|
|
$
|
1,770.4
|
|
|
|
3.24
|
%
|
|
|
$
|
1,734.5
|
|
|
|
3.17
|
%
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
48.3
|
|
|
|
0.57
|
%
|
|
|
$
|
48.5
|
|
|
|
0.41
|
%
|
|
|
$
|
50.7
|
|
|
|
0.29
|
%
|
|
|
$
|
46.9
|
|
|
|
0.17
|
%
|
|
|
$
|
44.0
|
|
|
|
0.15
|
%
|
|
Market rate and other savings
|
|
|
681.2
|
|
|
|
0.17
|
|
|
|
683.0
|
|
|
|
0.13
|
|
|
|
684.2
|
|
|
|
0.09
|
|
|
|
676.4
|
|
|
|
0.07
|
|
|
|
667.2
|
|
|
|
0.07
|
|
|
Savings certificates
|
|
|
21.8
|
|
|
|
0.31
|
|
|
|
22.6
|
|
|
|
0.30
|
|
|
|
23.5
|
|
|
|
0.29
|
|
|
|
24.4
|
|
|
|
0.30
|
|
|
|
25.2
|
|
|
|
0.30
|
|
|
Other time deposits
|
|
|
66.1
|
|
|
|
1.51
|
|
|
|
57.1
|
|
|
|
1.43
|
|
|
|
54.9
|
|
|
|
1.31
|
|
|
|
49.2
|
|
|
|
1.16
|
|
|
|
54.9
|
|
|
|
0.93
|
|
|
Deposits in foreign offices
|
|
|
124.7
|
|
|
|
0.76
|
|
|
|
123.7
|
|
|
|
0.65
|
|
|
|
122.2
|
|
|
|
0.49
|
|
|
|
110.4
|
|
|
|
0.35
|
|
|
|
107.1
|
|
|
|
0.30
|
|
|
Total interest-bearing deposits
|
|
|
942.1
|
|
|
|
0.37
|
|
|
|
934.9
|
|
|
|
0.29
|
|
|
|
935.5
|
|
|
|
0.23
|
|
|
|
907.3
|
|
|
|
0.18
|
|
|
|
898.4
|
|
|
|
0.16
|
|
|
Short-term borrowings
|
|
|
99.2
|
|
|
|
0.91
|
|
|
|
95.8
|
|
|
|
0.69
|
|
|
|
98.5
|
|
|
|
0.47
|
|
|
|
124.7
|
|
|
|
0.33
|
|
|
|
116.2
|
|
|
|
0.29
|
|
|
Long-term debt
|
|
|
243.1
|
|
|
|
2.26
|
|
|
|
249.5
|
|
|
|
2.05
|
|
|
|
259.8
|
|
|
|
1.83
|
|
|
|
252.2
|
|
|
|
1.68
|
|
|
|
252.4
|
|
|
|
1.59
|
|
|
Other liabilities
|
|
|
24.8
|
|
|
|
1.74
|
|
|
|
21.0
|
|
|
|
2.05
|
|
|
|
16.8
|
|
|
|
2.22
|
|
|
|
17.1
|
|
|
|
2.15
|
|
|
|
16.8
|
|
|
|
2.11
|
|
|
Total interest-bearing liabilities
|
|
|
1,309.2
|
|
|
|
0.79
|
|
|
|
1,301.2
|
|
|
|
0.69
|
|
|
|
1,310.6
|
|
|
|
0.59
|
|
|
|
1,301.3
|
|
|
|
0.51
|
|
|
|
1,283.8
|
|
|
|
0.48
|
|
|
Portion of noninterest-bearing funding sources
|
|
|
467.6
|
|
|
|
—
|
|
|
|
468.1
|
|
|
|
—
|
|
|
|
462.5
|
|
|
|
—
|
|
|
|
469.1
|
|
|
|
—
|
|
|
|
450.7
|
|
|
|
—
|
|
|
Total funding sources
|
|
|
$
|
1,776.8
|
|
|
|
0.58
|
|
|
|
$
|
1,769.3
|
|
|
|
0.51
|
|
|
|
$
|
1,773.1
|
|
|
|
0.44
|
|
|
|
$
|
1,770.4
|
|
|
|
0.37
|
|
|
|
$
|
1,734.5
|
|
|
|
0.35
|
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
2.90
|
%
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
2.82
|
%
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18.5
|
|
|
|
|
|
|
18.2
|
|
|
|
|
|
|
18.7
|
|
|
|
|
|
|
19.0
|
|
|
|
|
|
|
18.7
|
|
|
|
|
|
Goodwill
|
|
|
26.6
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
27.0
|
|
|
|
|
|
Other
|
|
|
116.6
|
|
|
|
|
|
|
112.9
|
|
|
|
|
|
|
112.5
|
|
|
|
|
|
|
128.2
|
|
|
|
|
|
|
134.4
|
|
|
|
|
|
Total noninterest-earnings assets
|
|
|
$
|
161.7
|
|
|
|
|
|
|
157.8
|
|
|
|
|
|
|
157.9
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
180.1
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
364.3
|
|
|
|
|
|
|
366.3
|
|
|
|
|
|
|
363.7
|
|
|
|
|
|
|
376.9
|
|
|
|
|
|
|
363.1
|
|
|
|
|
|
Other liabilities
|
|
|
57.0
|
|
|
|
|
|
|
53.6
|
|
|
|
|
|
|
54.9
|
|
|
|
|
|
|
64.9
|
|
|
|
|
|
|
63.8
|
|
|
|
|
|
Total equity
|
|
|
207.9
|
|
|
|
|
|
|
206.0
|
|
|
|
|
|
|
201.8
|
|
|
|
|
|
|
201.2
|
|
|
|
|
|
|
203.9
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(467.5
|
)
|
|
|
|
|
|
(468.1
|
)
|
|
|
|
|
|
(462.5
|
)
|
|
|
|
|
|
(469.1
|
)
|
|
|
|
|
|
(450.7
|
)
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
161.7
|
|
|
|
|
|
|
157.8
|
|
|
|
|
|
|
157.9
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
180.1
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,938.5
|
|
|
|
|
|
|
1,927.1
|
|
|
|
|
|
|
1,931.0
|
|
|
|
|
|
|
1,944.3
|
|
|
|
|
|
|
1,914.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.25% for the quarter ended
September 30, 2017, 4.05% for the quarter ended June 30, 2017,
3.80% for the quarter ended March 31, 2017, 3.54% for the quarter
ended December 31, 2016 and 3.50% for the quarter ended September
30, 2016. The average three-month London Interbank Offered Rate
(LIBOR) was 1.31%, 1.21%, 1.07%, 0.92% and 0.79% 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 Sep 30,
|
|
|
%
|
|
|
Nine months ended Sep 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Service charges on deposit accounts
|
|
|
$
|
1,276
|
|
|
|
1,370
|
|
|
|
(7
|
)%
|
|
|
$
|
3,865
|
|
|
|
4,015
|
|
|
|
(4
|
)%
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,304
|
|
|
|
2,344
|
|
|
|
(2
|
)
|
|
|
6,957
|
|
|
|
6,874
|
|
|
|
1
|
|
|
Trust and investment management
|
|
|
840
|
|
|
|
849
|
|
|
|
(1
|
)
|
|
|
2,506
|
|
|
|
2,499
|
|
|
|
—
|
|
|
Investment banking
|
|
|
465
|
|
|
|
420
|
|
|
|
11
|
|
|
|
1,345
|
|
|
|
1,172
|
|
|
|
15
|
|
|
Total trust and investment fees
|
|
|
3,609
|
|
|
|
3,613
|
|
|
|
—
|
|
|
|
10,808
|
|
|
|
10,545
|
|
|
|
2
|
|
|
Card fees
|
|
|
1,000
|
|
|
|
997
|
|
|
|
—
|
|
|
|
2,964
|
|
|
|
2,935
|
|
|
|
1
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
318
|
|
|
|
306
|
|
|
|
4
|
|
|
|
950
|
|
|
|
936
|
|
|
|
1
|
|
|
Cash network fees
|
|
|
126
|
|
|
|
138
|
|
|
|
(9
|
)
|
|
|
386
|
|
|
|
407
|
|
|
|
(5
|
)
|
|
Commercial real estate brokerage commissions
|
|
|
120
|
|
|
|
119
|
|
|
|
1
|
|
|
|
303
|
|
|
|
322
|
|
|
|
(6
|
)
|
|
Letters of credit fees
|
|
|
77
|
|
|
|
81
|
|
|
|
(5
|
)
|
|
|
227
|
|
|
|
242
|
|
|
|
(6
|
)
|
|
Wire transfer and other remittance fees
|
|
|
114
|
|
|
|
103
|
|
|
|
11
|
|
|
|
333
|
|
|
|
296
|
|
|
|
13
|
|
|
All other fees
|
|
|
122
|
|
|
|
179
|
|
|
|
(32
|
)
|
|
|
445
|
|
|
|
562
|
|
|
|
(21
|
)
|
|
Total other fees
|
|
|
877
|
|
|
|
926
|
|
|
|
(5
|
)
|
|
|
2,644
|
|
|
|
2,765
|
|
|
|
(4
|
)
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
309
|
|
|
|
359
|
|
|
|
(14
|
)
|
|
|
1,165
|
|
|
|
1,569
|
|
|
|
(26
|
)
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
737
|
|
|
|
1,308
|
|
|
|
(44
|
)
|
|
|
2,257
|
|
|
|
3,110
|
|
|
|
(27
|
)
|
|
Total mortgage banking
|
|
|
1,046
|
|
|
|
1,667
|
|
|
|
(37
|
)
|
|
|
3,422
|
|
|
|
4,679
|
|
|
|
(27
|
)
|
|
Insurance
|
|
|
269
|
|
|
|
293
|
|
|
|
(8
|
)
|
|
|
826
|
|
|
|
1,006
|
|
|
|
(18
|
)
|
|
Net gains from trading activities
|
|
|
245
|
|
|
|
415
|
|
|
|
(41
|
)
|
|
|
921
|
|
|
|
943
|
|
|
|
(2
|
)
|
|
Net gains on debt securities
|
|
|
166
|
|
|
|
106
|
|
|
|
57
|
|
|
|
322
|
|
|
|
797
|
|
|
|
(60
|
)
|
|
Net gains from equity investments
|
|
|
238
|
|
|
|
140
|
|
|
|
70
|
|
|
|
829
|
|
|
|
573
|
|
|
|
45
|
|
|
Lease income
|
|
|
475
|
|
|
|
534
|
|
|
|
(11
|
)
|
|
|
1,449
|
|
|
|
1,404
|
|
|
|
3
|
|
|
Life insurance investment income
|
|
|
152
|
|
|
|
152
|
|
|
|
—
|
|
|
|
441
|
|
|
|
455
|
|
|
|
(3
|
)
|
|
All other
|
|
|
97
|
|
|
|
163
|
|
|
|
(40
|
)
|
|
|
347
|
|
|
|
1,216
|
|
|
|
(71
|
)
|
|
Total
|
|
|
$
|
9,450
|
|
|
|
10,376
|
|
|
|
(9
|
)
|
|
|
$
|
28,838
|
|
|
|
31,333
|
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended Sep 30,
|
|
|
%
|
|
|
Nine months ended Sep 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Salaries
|
|
|
$
|
4,356
|
|
|
4,224
|
|
|
3
|
%
|
|
|
$
|
12,960
|
|
|
12,359
|
|
|
5
|
%
|
|
Commission and incentive compensation
|
|
|
2,553
|
|
|
2,520
|
|
|
1
|
|
|
|
7,777
|
|
|
7,769
|
|
|
—
|
|
|
Employee benefits
|
|
|
1,279
|
|
|
1,223
|
|
|
5
|
|
|
|
4,273
|
|
|
3,993
|
|
|
7
|
|
|
Equipment
|
|
|
523
|
|
|
491
|
|
|
7
|
|
|
|
1,629
|
|
|
1,512
|
|
|
8
|
|
|
Net occupancy
|
|
|
716
|
|
|
718
|
|
|
—
|
|
|
|
2,134
|
|
|
2,145
|
|
|
(1
|
)
|
|
Core deposit and other intangibles
|
|
|
288
|
|
|
299
|
|
|
(4
|
)
|
|
|
864
|
|
|
891
|
|
|
(3
|
)
|
|
FDIC and other deposit assessments
|
|
|
314
|
|
|
310
|
|
|
1
|
|
|
|
975
|
|
|
815
|
|
|
20
|
|
|
Outside professional services
|
|
|
955
|
|
|
802
|
|
|
19
|
|
|
|
2,788
|
|
|
2,154
|
|
|
29
|
|
|
Operating losses
|
|
|
1,329
|
|
|
577
|
|
|
130
|
|
|
|
1,961
|
|
|
1,365
|
|
|
44
|
|
|
Operating leases
|
|
|
347
|
|
|
363
|
|
|
(4
|
)
|
|
|
1,026
|
|
|
950
|
|
|
8
|
|
|
Contract services
|
|
|
351
|
|
|
313
|
|
|
12
|
|
|
|
1,025
|
|
|
878
|
|
|
17
|
|
|
Outside data processing
|
|
|
227
|
|
|
233
|
|
|
(3
|
)
|
|
|
683
|
|
|
666
|
|
|
3
|
|
|
Travel and entertainment
|
|
|
154
|
|
|
144
|
|
|
7
|
|
|
|
504
|
|
|
509
|
|
|
(1
|
)
|
|
Postage, stationery and supplies
|
|
|
128
|
|
|
150
|
|
|
(15
|
)
|
|
|
407
|
|
|
466
|
|
|
(13
|
)
|
|
Advertising and promotion
|
|
|
137
|
|
|
117
|
|
|
17
|
|
|
|
414
|
|
|
417
|
|
|
(1
|
)
|
|
Telecommunications
|
|
|
90
|
|
|
101
|
|
|
(11
|
)
|
|
|
272
|
|
|
287
|
|
|
(5
|
)
|
|
Foreclosed assets
|
|
|
66
|
|
|
(17
|
)
|
|
NM
|
|
|
|
204
|
|
|
127
|
|
|
61
|
|
|
Insurance
|
|
|
24
|
|
|
23
|
|
|
4
|
|
|
|
72
|
|
|
156
|
|
|
(54
|
)
|
|
All other
|
|
|
514
|
|
|
677
|
|
|
(24
|
)
|
|
|
1,716
|
|
|
1,703
|
|
|
1
|
|
|
Total
|
|
|
$
|
14,351
|
|
|
13,268
|
|
|
8
|
|
|
|
$
|
41,684
|
|
|
39,162
|
|
|
6
|
|
|
NM – Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
Jun 30,
2017
|
|
Mar 31,
2017
|
|
Dec 31,
2016
|
|
Sep 30,
2016
|
|
Service charges on deposit accounts
|
|
|
$
|
1,276
|
|
|
1,276
|
|
|
1,313
|
|
|
1,357
|
|
|
1,370
|
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,304
|
|
|
2,329
|
|
|
2,324
|
|
|
2,342
|
|
|
2,344
|
|
|
Trust and investment management
|
|
|
840
|
|
|
837
|
|
|
829
|
|
|
837
|
|
|
849
|
|
|
Investment banking
|
|
|
465
|
|
|
463
|
|
|
417
|
|
|
519
|
|
|
420
|
|
|
Total trust and investment fees
|
|
|
3,609
|
|
|
3,629
|
|
|
3,570
|
|
|
3,698
|
|
|
3,613
|
|
|
Card fees
|
|
|
1,000
|
|
|
1,019
|
|
|
945
|
|
|
1,001
|
|
|
997
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
318
|
|
|
325
|
|
|
307
|
|
|
305
|
|
|
306
|
|
|
Cash network fees
|
|
|
126
|
|
|
134
|
|
|
126
|
|
|
130
|
|
|
138
|
|
|
Commercial real estate brokerage commissions
|
|
|
120
|
|
|
102
|
|
|
81
|
|
|
172
|
|
|
119
|
|
|
Letters of credit fees
|
|
|
77
|
|
|
76
|
|
|
74
|
|
|
79
|
|
|
81
|
|
|
Wire transfer and other remittance fees
|
|
|
114
|
|
|
112
|
|
|
107
|
|
|
105
|
|
|
103
|
|
|
All other fees
|
|
|
122
|
|
|
153
|
|
|
170
|
|
|
171
|
|
|
179
|
|
|
Total other fees
|
|
|
877
|
|
|
902
|
|
|
865
|
|
|
962
|
|
|
926
|
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
309
|
|
|
400
|
|
|
456
|
|
|
196
|
|
|
359
|
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
737
|
|
|
748
|
|
|
772
|
|
|
1,221
|
|
|
1,308
|
|
|
Total mortgage banking
|
|
|
1,046
|
|
|
1,148
|
|
|
1,228
|
|
|
1,417
|
|
|
1,667
|
|
|
Insurance
|
|
|
269
|
|
|
280
|
|
|
277
|
|
|
262
|
|
|
293
|
|
|
Net gains (losses) from trading activities
|
|
|
245
|
|
|
237
|
|
|
439
|
|
|
(109
|
)
|
|
415
|
|
|
Net gains on debt securities
|
|
|
166
|
|
|
120
|
|
|
36
|
|
|
145
|
|
|
106
|
|
|
Net gains from equity investments
|
|
|
238
|
|
|
188
|
|
|
403
|
|
|
306
|
|
|
140
|
|
|
Lease income
|
|
|
475
|
|
|
493
|
|
|
481
|
|
|
523
|
|
|
534
|
|
|
Life insurance investment income
|
|
|
152
|
|
|
145
|
|
|
144
|
|
|
132
|
|
|
152
|
|
|
All other
|
|
|
97
|
|
|
249
|
|
|
1
|
|
|
(514
|
)
|
|
163
|
|
|
Total
|
|
|
$
|
9,450
|
|
|
9,686
|
|
|
9,702
|
|
|
9,180
|
|
|
10,376
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
Jun 30,
2017
|
|
Mar 31,
2017
|
|
Dec 31,
2016
|
|
Sep 30,
2016
|
|
Salaries
|
|
|
$
|
4,356
|
|
|
4,343
|
|
|
4,261
|
|
|
4,193
|
|
|
4,224
|
|
|
Commission and incentive compensation
|
|
|
2,553
|
|
|
2,499
|
|
|
2,725
|
|
|
2,478
|
|
|
2,520
|
|
|
Employee benefits
|
|
|
1,279
|
|
|
1,308
|
|
|
1,686
|
|
|
1,101
|
|
|
1,223
|
|
|
Equipment
|
|
|
523
|
|
|
529
|
|
|
577
|
|
|
642
|
|
|
491
|
|
|
Net occupancy
|
|
|
716
|
|
|
706
|
|
|
712
|
|
|
710
|
|
|
718
|
|
|
Core deposit and other intangibles
|
|
|
288
|
|
|
287
|
|
|
289
|
|
|
301
|
|
|
299
|
|
|
FDIC and other deposit assessments
|
|
|
314
|
|
|
328
|
|
|
333
|
|
|
353
|
|
|
310
|
|
|
Outside professional services
|
|
|
955
|
|
|
1,029
|
|
|
804
|
|
|
984
|
|
|
802
|
|
|
Operating losses
|
|
|
1,329
|
|
|
350
|
|
|
282
|
|
|
243
|
|
|
577
|
|
|
Operating leases
|
|
|
347
|
|
|
334
|
|
|
345
|
|
|
379
|
|
|
363
|
|
|
Contract services
|
|
|
351
|
|
|
349
|
|
|
325
|
|
|
325
|
|
|
313
|
|
|
Outside data processing
|
|
|
227
|
|
|
236
|
|
|
220
|
|
|
222
|
|
|
233
|
|
|
Travel and entertainment
|
|
|
154
|
|
|
171
|
|
|
179
|
|
|
195
|
|
|
144
|
|
|
Postage, stationery and supplies
|
|
|
128
|
|
|
134
|
|
|
145
|
|
|
156
|
|
|
150
|
|
|
Advertising and promotion
|
|
|
137
|
|
|
150
|
|
|
127
|
|
|
178
|
|
|
117
|
|
|
Telecommunications
|
|
|
90
|
|
|
91
|
|
|
91
|
|
|
96
|
|
|
101
|
|
|
Foreclosed assets
|
|
|
66
|
|
|
52
|
|
|
86
|
|
|
75
|
|
|
(17
|
)
|
|
Insurance
|
|
|
24
|
|
|
24
|
|
|
24
|
|
|
23
|
|
|
23
|
|
|
All other
|
|
|
514
|
|
|
621
|
|
|
581
|
|
|
561
|
|
|
677
|
|
|
Total
|
|
|
$
|
14,351
|
|
|
13,541
|
|
|
13,792
|
|
|
13,215
|
|
|
13,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
(in millions, except shares)
|
|
|
Sep 30,
2017
|
|
|
Dec 31,
2016
|
|
|
%
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,206
|
|
|
|
20,729
|
|
|
|
(7
|
)%
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
273,105
|
|
|
|
266,038
|
|
|
|
3
|
|
|
Trading assets
|
|
|
88,404
|
|
|
|
74,397
|
|
|
|
19
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
272,210
|
|
|
|
308,364
|
|
|
|
(12
|
)
|
|
Held-to-maturity, at cost
|
|
|
142,423
|
|
|
|
99,583
|
|
|
|
43
|
|
|
Mortgages held for sale
|
|
|
20,009
|
|
|
|
26,309
|
|
|
|
(24
|
)
|
|
Loans held for sale
|
|
|
157
|
|
|
|
80
|
|
|
|
96
|
|
|
Loans
|
|
|
951,873
|
|
|
|
967,604
|
|
|
|
(2
|
)
|
|
Allowance for loan losses
|
|
|
(11,078
|
)
|
|
|
(11,419
|
)
|
|
|
(3
|
)
|
|
Net loans
|
|
|
940,795
|
|
|
|
956,185
|
|
|
|
(2
|
)
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
13,338
|
|
|
|
12,959
|
|
|
|
3
|
|
|
Amortized
|
|
|
1,406
|
|
|
|
1,406
|
|
|
|
—
|
|
|
Premises and equipment, net
|
|
|
8,449
|
|
|
|
8,333
|
|
|
|
1
|
|
|
Goodwill
|
|
|
26,581
|
|
|
|
26,693
|
|
|
|
—
|
|
|
Derivative assets
|
|
|
12,580
|
|
|
|
14,498
|
|
|
|
(13
|
)
|
|
Other assets
|
|
|
116,276
|
|
|
|
114,541
|
|
|
|
2
|
|
|
Total assets
|
|
|
$
|
1,934,939
|
|
|
|
1,930,115
|
|
|
|
—
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
366,528
|
|
|
|
375,967
|
|
|
|
(3
|
)
|
|
Interest-bearing deposits
|
|
|
940,178
|
|
|
|
930,112
|
|
|
|
1
|
|
|
Total deposits
|
|
|
1,306,706
|
|
|
|
1,306,079
|
|
|
|
—
|
|
|
Short-term borrowings
|
|
|
93,811
|
|
|
|
96,781
|
|
|
|
(3
|
)
|
|
Derivative liabilities
|
|
|
9,497
|
|
|
|
14,492
|
|
|
|
(34
|
)
|
|
Accrued expenses and other liabilities
|
|
|
79,208
|
|
|
|
57,189
|
|
|
|
39
|
|
|
Long-term debt
|
|
|
238,893
|
|
|
|
255,077
|
|
|
|
(6
|
)
|
|
Total liabilities
|
|
|
1,728,115
|
|
|
|
1,729,618
|
|
|
|
—
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
25,576
|
|
|
|
24,551
|
|
|
|
4
|
|
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares;
issued 5,481,811,474 shares
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
—
|
|
|
Additional paid-in capital
|
|
|
60,759
|
|
|
|
60,234
|
|
|
|
1
|
|
|
Retained earnings
|
|
|
141,761
|
|
|
|
133,075
|
|
|
|
7
|
|
|
Cumulative other comprehensive income (loss)
|
|
|
(1,627
|
)
|
|
|
(3,137
|
)
|
|
|
(48
|
)
|
|
Treasury stock – 553,940,326 shares and 465,702,148 shares
|
|
|
(27,772
|
)
|
|
|
(22,713
|
)
|
|
|
22
|
|
|
Unearned ESOP shares
|
|
|
(1,904
|
)
|
|
|
(1,565
|
)
|
|
|
22
|
|
|
Total Wells Fargo stockholders’ equity
|
|
|
205,929
|
|
|
|
199,581
|
|
|
|
3
|
|
|
Noncontrolling interests
|
|
|
895
|
|
|
|
916
|
|
|
|
(2
|
)
|
|
Total equity
|
|
|
206,824
|
|
|
|
200,497
|
|
|
|
3
|
|
|
Total liabilities and equity
|
|
|
$
|
1,934,939
|
|
|
|
1,930,115
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
19,206
|
|
|
|
20,248
|
|
|
|
19,698
|
|
|
|
20,729
|
|
|
|
19,287
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
273,105
|
|
|
|
264,706
|
|
|
|
308,747
|
|
|
|
266,038
|
|
|
|
298,325
|
|
|
Trading assets
|
|
|
88,404
|
|
|
|
83,607
|
|
|
|
80,326
|
|
|
|
74,397
|
|
|
|
81,094
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
272,210
|
|
|
|
269,202
|
|
|
|
299,530
|
|
|
|
308,364
|
|
|
|
291,591
|
|
|
Held-to-maturity, at cost
|
|
|
142,423
|
|
|
|
140,392
|
|
|
|
108,030
|
|
|
|
99,583
|
|
|
|
99,241
|
|
|
Mortgages held for sale
|
|
|
20,009
|
|
|
|
24,807
|
|
|
|
17,822
|
|
|
|
26,309
|
|
|
|
27,423
|
|
|
Loans held for sale
|
|
|
157
|
|
|
|
156
|
|
|
|
253
|
|
|
|
80
|
|
|
|
183
|
|
|
Loans
|
|
|
951,873
|
|
|
|
957,423
|
|
|
|
958,405
|
|
|
|
967,604
|
|
|
|
961,326
|
|
|
Allowance for loan losses
|
|
|
(11,078
|
)
|
|
|
(11,073
|
)
|
|
|
(11,168
|
)
|
|
|
(11,419
|
)
|
|
|
(11,583
|
)
|
|
Net loans
|
|
|
940,795
|
|
|
|
946,350
|
|
|
|
947,237
|
|
|
|
956,185
|
|
|
|
949,743
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
13,338
|
|
|
|
12,789
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
|
10,415
|
|
|
Amortized
|
|
|
1,406
|
|
|
|
1,399
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
|
1,373
|
|
|
Premises and equipment, net
|
|
|
8,449
|
|
|
|
8,403
|
|
|
|
8,320
|
|
|
|
8,333
|
|
|
|
8,322
|
|
|
Goodwill
|
|
|
26,581
|
|
|
|
26,573
|
|
|
|
26,666
|
|
|
|
26,693
|
|
|
|
26,688
|
|
|
Derivative assets
|
|
|
12,580
|
|
|
|
13,273
|
|
|
|
12,564
|
|
|
|
14,498
|
|
|
|
18,736
|
|
|
Other assets
|
|
|
116,276
|
|
|
|
118,966
|
|
|
|
107,761
|
|
|
|
114,541
|
|
|
|
109,703
|
|
|
Total assets
|
|
|
$
|
1,934,939
|
|
|
|
1,930,871
|
|
|
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1,942,124
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
366,528
|
|
|
|
372,766
|
|
|
|
365,780
|
|
|
|
375,967
|
|
|
|
376,136
|
|
|
Interest-bearing deposits
|
|
|
940,178
|
|
|
|
933,064
|
|
|
|
959,664
|
|
|
|
930,112
|
|
|
|
899,758
|
|
|
Total deposits
|
|
|
1,306,706
|
|
|
|
1,305,830
|
|
|
|
1,325,444
|
|
|
|
1,306,079
|
|
|
|
1,275,894
|
|
|
Short-term borrowings
|
|
|
93,811
|
|
|
|
95,356
|
|
|
|
94,871
|
|
|
|
96,781
|
|
|
|
124,668
|
|
|
Derivative liabilities
|
|
|
9,497
|
|
|
|
11,636
|
|
|
|
12,461
|
|
|
|
14,492
|
|
|
|
13,603
|
|
|
Accrued expenses and other liabilities
|
|
|
79,208
|
|
|
|
73,035
|
|
|
|
59,831
|
|
|
|
57,189
|
|
|
|
69,166
|
|
|
Long-term debt
|
|
|
238,893
|
|
|
|
238,869
|
|
|
|
256,468
|
|
|
|
255,077
|
|
|
|
254,835
|
|
|
Total liabilities
|
|
|
1,728,115
|
|
|
|
1,724,726
|
|
|
|
1,749,075
|
|
|
|
1,729,618
|
|
|
|
1,738,166
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
25,576
|
|
|
|
25,785
|
|
|
|
25,501
|
|
|
|
24,551
|
|
|
|
24,594
|
|
|
Common stock
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
Additional paid-in capital
|
|
|
60,759
|
|
|
|
60,689
|
|
|
|
60,585
|
|
|
|
60,234
|
|
|
|
60,685
|
|
|
Retained earnings
|
|
|
141,761
|
|
|
|
139,524
|
|
|
|
136,032
|
|
|
|
133,075
|
|
|
|
130,288
|
|
|
Cumulative other comprehensive income (loss)
|
|
|
(1,627
|
)
|
|
|
(2,110
|
)
|
|
|
(3,178
|
)
|
|
|
(3,137
|
)
|
|
|
2,184
|
|
|
Treasury stock
|
|
|
(27,772
|
)
|
|
|
(25,675
|
)
|
|
|
(24,030
|
)
|
|
|
(22,713
|
)
|
|
|
(22,247
|
)
|
|
Unearned ESOP shares
|
|
|
(1,904
|
)
|
|
|
(2,119
|
)
|
|
|
(2,546
|
)
|
|
|
(1,565
|
)
|
|
|
(1,612
|
)
|
|
Total Wells Fargo stockholders’ equity
|
|
|
205,929
|
|
|
|
205,230
|
|
|
|
201,500
|
|
|
|
199,581
|
|
|
|
203,028
|
|
|
Noncontrolling interests
|
|
|
895
|
|
|
|
915
|
|
|
|
989
|
|
|
|
916
|
|
|
|
930
|
|
|
Total equity
|
|
|
206,824
|
|
|
|
206,145
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
|
Total liabilities and equity
|
|
|
$
|
1,934,939
|
|
|
|
1,930,871
|
|
|
|
1,951,564
|
|
|
|
1,930,115
|
|
|
|
1,942,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
$
|
6,350
|
|
|
17,896
|
|
|
24,625
|
|
|
25,819
|
|
|
26,376
|
|
Securities of U.S. states and political subdivisions
|
|
|
52,774
|
|
|
52,013
|
|
|
52,061
|
|
|
51,101
|
|
|
55,366
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
150,181
|
|
|
135,938
|
|
|
156,966
|
|
|
161,230
|
|
|
135,692
|
|
Residential and commercial
|
|
|
11,046
|
|
|
12,772
|
|
|
14,233
|
|
|
16,318
|
|
|
18,387
|
|
Total mortgage-backed securities
|
|
|
161,227
|
|
|
148,710
|
|
|
171,199
|
|
|
177,548
|
|
|
154,079
|
|
Other debt securities
|
|
|
50,966
|
|
|
49,555
|
|
|
50,520
|
|
|
52,685
|
|
|
54,537
|
|
Total available-for-sale debt securities
|
|
|
271,317
|
|
|
268,174
|
|
|
298,405
|
|
|
307,153
|
|
|
290,358
|
|
Marketable equity securities
|
|
|
893
|
|
|
1,028
|
|
|
1,125
|
|
|
1,211
|
|
|
1,233
|
|
Total available-for-sale securities
|
|
|
272,210
|
|
|
269,202
|
|
|
299,530
|
|
|
308,364
|
|
|
291,591
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,712
|
|
|
44,704
|
|
|
44,697
|
|
|
44,690
|
|
|
44,682
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,321
|
|
|
6,325
|
|
|
6,331
|
|
|
6,336
|
|
|
2,994
|
|
Federal agency and other mortgage-backed securities (1)
|
|
|
90,071
|
|
|
87,525
|
|
|
53,778
|
|
|
45,161
|
|
|
47,721
|
|
Other debt securities
|
|
|
1,319
|
|
|
1,838
|
|
|
3,224
|
|
|
3,396
|
|
|
3,844
|
|
Total held-to-maturity debt securities
|
|
|
142,423
|
|
|
140,392
|
|
|
108,030
|
|
|
99,583
|
|
|
99,241
|
|
Total investment securities
|
|
|
$
|
414,633
|
|
|
409,594
|
|
|
407,560
|
|
|
407,947
|
|
|
390,832
|
|
(1) Predominantly consists of federal agency mortgage-backed
securities.
|
|
|
|
FIVE QUARTER LOANS
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
327,944
|
|
|
331,113
|
|
|
329,252
|
|
|
330,840
|
|
|
324,020
|
|
Real estate mortgage
|
|
|
128,475
|
|
|
130,277
|
|
|
131,532
|
|
|
132,491
|
|
|
130,223
|
|
Real estate construction
|
|
|
24,520
|
|
|
25,337
|
|
|
25,064
|
|
|
23,916
|
|
|
23,340
|
|
Lease financing
|
|
|
19,211
|
|
|
19,174
|
|
|
19,156
|
|
|
19,289
|
|
|
18,871
|
|
Total commercial
|
|
|
500,150
|
|
|
505,901
|
|
|
505,004
|
|
|
506,536
|
|
|
496,454
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
280,173
|
|
|
276,566
|
|
|
274,633
|
|
|
275,579
|
|
|
278,689
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
41,152
|
|
|
42,747
|
|
|
44,333
|
|
|
46,237
|
|
|
48,105
|
|
Credit card
|
|
|
36,249
|
|
|
35,305
|
|
|
34,742
|
|
|
36,700
|
|
|
34,992
|
|
Automobile
|
|
|
55,455
|
|
|
57,958
|
|
|
60,408
|
|
|
62,286
|
|
|
62,873
|
|
Other revolving credit and installment
|
|
|
38,694
|
|
|
38,946
|
|
|
39,285
|
|
|
40,266
|
|
|
40,213
|
|
Total consumer
|
|
|
451,723
|
|
|
451,522
|
|
|
453,401
|
|
|
461,068
|
|
|
464,872
|
|
Total loans (1)
|
|
|
$
|
951,873
|
|
|
957,423
|
|
|
958,405
|
|
|
967,604
|
|
|
961,326
|
|
(1) Includes $13.6 billion, $14.3 billion, $15.7 billion, $16.7
billion, and $17.7 billion of purchased credit-impaired (PCI)
loans at September 30, June 30, and March 31, 2017 and December
31, and September 30, 2016, respectively.
|
|
|
|
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign
loan portfolio is commercial loans. Loans are classified as
foreign primarily based on whether the borrower's primary address
is outside of the United States. The following table presents
total commercial foreign loans outstanding by class of financing
receivable.
|
|
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
58,570
|
|
|
57,825
|
|
|
56,987
|
|
|
|
55,396
|
|
|
51,515
|
|
Real estate mortgage
|
|
|
8,032
|
|
|
8,359
|
|
|
8,206
|
|
|
|
8,541
|
|
|
8,466
|
|
Real estate construction
|
|
|
647
|
|
|
585
|
|
|
471
|
|
|
|
375
|
|
|
310
|
|
Lease financing
|
|
|
1,141
|
|
|
1,092
|
|
|
986
|
|
|
|
972
|
|
|
958
|
|
Total commercial foreign loans
|
|
|
$
|
68,390
|
|
|
67,861
|
|
|
66,650
|
|
|
|
65,284
|
|
|
61,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,397
|
|
|
|
2,632
|
|
|
|
2,898
|
|
|
|
3,216
|
|
|
|
3,331
|
|
Real estate mortgage
|
|
|
593
|
|
|
|
630
|
|
|
|
672
|
|
|
|
685
|
|
|
|
780
|
|
Real estate construction
|
|
|
38
|
|
|
|
34
|
|
|
|
40
|
|
|
|
43
|
|
|
|
59
|
|
Lease financing
|
|
|
81
|
|
|
|
89
|
|
|
|
96
|
|
|
|
115
|
|
|
|
92
|
|
Total commercial
|
|
|
3,109
|
|
|
|
3,385
|
|
|
|
3,706
|
|
|
|
4,059
|
|
|
|
4,262
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
4,213
|
|
|
|
4,413
|
|
|
|
4,743
|
|
|
|
4,962
|
|
|
|
5,310
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,101
|
|
|
|
1,095
|
|
|
|
1,153
|
|
|
|
1,206
|
|
|
|
1,259
|
|
Automobile
|
|
|
137
|
|
|
|
104
|
|
|
|
101
|
|
|
|
106
|
|
|
|
108
|
|
Other revolving credit and installment
|
|
|
59
|
|
|
|
59
|
|
|
|
56
|
|
|
|
51
|
|
|
|
47
|
|
Total consumer
|
|
|
5,510
|
|
|
|
5,671
|
|
|
|
6,053
|
|
|
|
6,325
|
|
|
|
6,724
|
|
Total nonaccrual loans (1)(2)(3)
|
|
|
$
|
8,619
|
|
|
|
9,056
|
|
|
|
9,759
|
|
|
|
10,384
|
|
|
|
10,986
|
|
As a percentage of total loans
|
|
|
0.91
|
%
|
|
|
0.95
|
|
|
|
1.02
|
|
|
|
1.07
|
|
|
|
1.14
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
$
|
137
|
|
|
|
149
|
|
|
|
179
|
|
|
|
197
|
|
|
|
282
|
|
Non-government insured/guaranteed
|
|
|
569
|
|
|
|
632
|
|
|
|
726
|
|
|
|
781
|
|
|
|
738
|
|
Total foreclosed assets
|
|
|
706
|
|
|
|
781
|
|
|
|
905
|
|
|
|
978
|
|
|
|
1,020
|
|
Total nonperforming assets
|
|
|
$
|
9,325
|
|
|
|
9,837
|
|
|
|
10,664
|
|
|
|
11,362
|
|
|
|
12,006
|
|
As a percentage of total loans
|
|
|
0.98
|
%
|
|
|
1.03
|
|
|
|
1.11
|
|
|
|
1.17
|
|
|
|
1.25
|
|
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
|
|
(2) Excludes PCI loans because they continue to earn interest income
from accretable yield, independent of performance in accordance with
their contractual terms.
|
|
(3) Real estate 1-4 family mortgage loans predominantly insured by
the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) and student loans largely
guaranteed by agencies on behalf of the U.S. Department of
Education under the Federal Family Education Loan Program are not
placed on nonaccrual status because they are insured or
guaranteed. All remaining student loans guaranteed under the FFELP
were sold as of March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Total (excluding PCI)(1):
|
|
|
$
|
10,227
|
|
|
|
9,716
|
|
|
|
10,525
|
|
|
|
11,858
|
|
|
|
12,068
|
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
9,266
|
|
|
|
8,873
|
|
|
|
9,585
|
|
|
|
10,883
|
|
|
|
11,198
|
|
Less: Student loans guaranteed under the FFELP (4)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3
|
|
|
|
17
|
|
Total, not government insured/guaranteed
|
|
|
$
|
961
|
|
|
|
843
|
|
|
|
940
|
|
|
|
972
|
|
|
|
853
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
27
|
|
|
|
42
|
|
|
|
88
|
|
|
|
28
|
|
|
|
47
|
|
Real estate mortgage
|
|
|
11
|
|
|
|
2
|
|
|
|
11
|
|
|
|
36
|
|
|
|
4
|
|
Real estate construction
|
|
|
—
|
|
|
|
10
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
Total commercial
|
|
|
38
|
|
|
|
54
|
|
|
|
102
|
|
|
|
64
|
|
|
|
51
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
190
|
|
|
|
145
|
|
|
|
149
|
|
|
|
175
|
|
|
|
171
|
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
49
|
|
|
|
44
|
|
|
|
42
|
|
|
|
56
|
|
|
|
54
|
|
Credit card
|
|
|
475
|
|
|
|
411
|
|
|
|
453
|
|
|
|
452
|
|
|
|
392
|
|
Automobile
|
|
|
111
|
|
|
|
91
|
|
|
|
79
|
|
|
|
112
|
|
|
|
81
|
|
Other revolving credit and installment
|
|
|
98
|
|
|
|
98
|
|
|
|
115
|
|
|
|
113
|
|
|
|
104
|
|
Total consumer
|
|
|
923
|
|
|
|
789
|
|
|
|
838
|
|
|
|
908
|
|
|
|
802
|
|
Total, not government insured/guaranteed
|
|
|
$
|
961
|
|
|
|
843
|
|
|
|
940
|
|
|
|
972
|
|
|
|
853
|
|
(1) PCI loans totaled $1.4 billion, $1.5 billion, $1.8 billion, $2.0
billion and $2.2 billion, at September 30, June 30 and March 31,
2017 and December 31 and September 30, 2016, 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 largely guaranteed by
agencies on behalf of the U.S. Department of Education under the
FFELP. All remaining student loans guaranteed under the FFELP were
sold as of March 31, 2017.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED
CREDIT-IMPAIRED (PCI) LOANS
|
|
|
|
Loans purchased with evidence of credit deterioration since
origination and for which it is probable that all contractually
required payments will not be collected are considered to be credit
impaired. PCI loans predominantly represent loans acquired from
Wachovia that were deemed to be credit impaired. Evidence of credit
quality deterioration as of the purchase date may include statistics
such as past due and nonaccrual status, recent borrower credit
scores and recent LTV percentages. PCI loans are initially measured
at fair value, which includes estimated future credit losses
expected to be incurred over the life of the loan. Accordingly, the
associated allowance for credit losses related to these loans is not
carried over at the acquisition date.
|
|
|
|
As a result of PCI loan accounting, certain credit-related ratios
cannot be used to compare a portfolio that includes PCI loans
against one that does not, or to compare ratios across quarters or
years. The ratios particularly affected include the allowance for
loan losses and allowance for credit losses as percentages of loans,
of nonaccrual loans and of nonperforming assets; nonaccrual loans
and nonperforming assets as a percentage of total loans; and net
charge-offs as a percentage of loans.
|
|
|
|
The excess of cash flows expected to be collected over the
carrying value of PCI loans is referred to as the accretable yield
and is accreted into interest income over the estimated lives of
the PCI loans using the effective yield method. The accretable
yield is affected by:
|
|
• Changes in interest rate indices for variable rate PCI loans -
Expected future cash flows are based on the variable rates in effect
at the time of the quarterly assessment of expected cash flows;
|
|
• Changes in prepayment assumptions - Prepayments affect the
estimated life of PCI loans which may change the amount of interest
income, and possibly principal, expected to be collected; and
|
|
• Changes in the expected principal and interest payments over the
estimated life - Updates to changes in expected cash flows are
driven by the credit outlook and actions taken with borrowers.
Changes in expected future cash flows from loan modifications are
included in the regular evaluations of cash flows expected to be
collected.
|
|
|
|
The change in the accretable yield related to PCI loans since the
merger with Wachovia is presented in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
Quarter
ended
Sep 30,
2017
|
|
|
Nine months
ended
Sep 30,
2017
|
|
|
2009-2016
|
|
Balance, beginning of period
|
|
|
$
|
9,369
|
|
|
|
11,216
|
|
|
|
10,447
|
|
|
Change in accretable yield due to acquisitions
|
|
|
—
|
|
|
|
2
|
|
|
|
159
|
|
|
Accretion into interest income (1)
|
|
|
(340
|
)
|
|
|
(1,071
|
)
|
|
|
(15,577
|
)
|
|
Accretion into noninterest income due to sales (2)
|
|
|
—
|
|
|
|
(334
|
)
|
|
|
(467
|
)
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (3)
|
|
|
234
|
|
|
|
640
|
|
|
|
10,955
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (4)
|
|
|
(20
|
)
|
|
|
(1,210
|
)
|
|
|
5,699
|
|
|
Balance, end of period
|
|
|
$
|
9,243
|
|
|
|
9,243
|
|
|
|
11,216
|
|
|
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
|
|
(2) Includes accretable yield released as a result of sales to third
parties, which is included in noninterest income.
|
|
(3) At September 30, 2017, our carrying value for PCI loans
totaled $13.6 billion and the remainder of nonaccretable
difference established in purchase accounting totaled $454
million. The nonaccretable difference absorbs losses of
contractual amounts that exceed our carrying value for PCI loans.
|
|
(4) Represents changes in cash flows expected to be collected due to
the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
|
|
September 30, 2017
|
|
|
|
|
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
|
|
|
$
|
11,753
|
|
|
|
61
|
%
|
|
|
$
|
9,033
|
|
|
|
47
|
%
|
|
|
$
|
6,703
|
|
|
|
44
|
%
|
|
Florida
|
|
|
1,481
|
|
|
|
69
|
|
|
|
1,076
|
|
|
|
49
|
|
|
|
1,439
|
|
|
|
54
|
|
|
New Jersey
|
|
|
586
|
|
|
|
76
|
|
|
|
429
|
|
|
|
55
|
|
|
|
953
|
|
|
|
62
|
|
|
New York
|
|
|
446
|
|
|
|
69
|
|
|
|
363
|
|
|
|
52
|
|
|
|
477
|
|
|
|
59
|
|
|
Texas
|
|
|
135
|
|
|
|
48
|
|
|
|
102
|
|
|
|
36
|
|
|
|
570
|
|
|
|
37
|
|
|
Other states
|
|
|
2,928
|
|
|
|
68
|
|
|
|
2,208
|
|
|
|
51
|
|
|
|
3,942
|
|
|
|
56
|
|
|
Total Pick-a-Pay loans
|
|
|
$
|
17,329
|
|
|
|
64
|
|
|
|
$
|
13,211
|
|
|
|
48
|
|
|
|
$
|
14,084
|
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 2017.
|
|
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
|
|
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
|
|
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
|
|
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended September 30,
|
|
|
Nine months ended September 30,
|
|
(in millions)
|
|
|
2017
|
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Balance, beginning of period
|
|
|
$
|
12,146
|
|
|
|
12,749
|
|
|
|
12,540
|
|
|
|
12,512
|
|
|
Provision for credit losses
|
|
|
717
|
|
|
|
805
|
|
|
|
1,877
|
|
|
|
2,965
|
|
|
Interest income on certain impaired loans (1)
|
|
|
(43
|
)
|
|
|
(54
|
)
|
|
|
(137
|
)
|
|
|
(153
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(194
|
)
|
|
|
(324
|
)
|
|
|
(608
|
)
|
|
|
(1,110
|
)
|
|
Real estate mortgage
|
|
|
(21
|
)
|
|
|
(7
|
)
|
|
|
(34
|
)
|
|
|
(13
|
)
|
|
Real estate construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
Lease financing
|
|
|
(11
|
)
|
|
|
(4
|
)
|
|
|
(31
|
)
|
|
|
(25
|
)
|
|
Total commercial
|
|
|
(226
|
)
|
|
|
(335
|
)
|
|
|
(673
|
)
|
|
|
(1,149
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(67
|
)
|
|
|
(106
|
)
|
|
|
(191
|
)
|
|
|
(366
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(70
|
)
|
|
|
(119
|
)
|
|
|
(225
|
)
|
|
|
(385
|
)
|
|
Credit card
|
|
|
(337
|
)
|
|
|
(296
|
)
|
|
|
(1,083
|
)
|
|
|
(930
|
)
|
|
Automobile
|
|
|
(274
|
)
|
|
|
(215
|
)
|
|
|
(741
|
)
|
|
|
(602
|
)
|
|
Other revolving credit and installment
|
|
|
(170
|
)
|
|
|
(170
|
)
|
|
|
(544
|
)
|
|
|
(508
|
)
|
|
Total consumer
|
|
|
(918
|
)
|
|
|
(906
|
)
|
|
|
(2,784
|
)
|
|
|
(2,791
|
)
|
|
Total loan charge-offs
|
|
|
(1,144
|
)
|
|
|
(1,241
|
)
|
|
|
(3,457
|
)
|
|
|
(3,940
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
69
|
|
|
|
65
|
|
|
|
234
|
|
|
|
210
|
|
|
Real estate mortgage
|
|
|
24
|
|
|
|
35
|
|
|
|
68
|
|
|
|
90
|
|
|
Real estate construction
|
|
|
15
|
|
|
|
18
|
|
|
|
27
|
|
|
|
30
|
|
|
Lease financing
|
|
|
5
|
|
|
|
2
|
|
|
|
13
|
|
|
|
10
|
|
|
Total commercial
|
|
|
113
|
|
|
|
120
|
|
|
|
342
|
|
|
|
340
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
83
|
|
|
|
86
|
|
|
|
216
|
|
|
|
284
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
69
|
|
|
|
70
|
|
|
|
205
|
|
|
|
200
|
|
|
Credit card
|
|
|
60
|
|
|
|
51
|
|
|
|
177
|
|
|
|
153
|
|
|
Automobile
|
|
|
72
|
|
|
|
78
|
|
|
|
246
|
|
|
|
248
|
|
|
Other revolving credit and installment
|
|
|
30
|
|
|
|
31
|
|
|
|
94
|
|
|
|
100
|
|
|
Total consumer
|
|
|
314
|
|
|
|
316
|
|
|
|
938
|
|
|
|
985
|
|
|
Total loan recoveries
|
|
|
427
|
|
|
|
436
|
|
|
|
1,280
|
|
|
|
1,325
|
|
|
Net loan charge-offs
|
|
|
(717
|
)
|
|
|
(805
|
)
|
|
|
(2,177
|
)
|
|
|
(2,615
|
)
|
|
Other
|
|
|
6
|
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
(15
|
)
|
|
Balance, end of period
|
|
|
$
|
12,109
|
|
|
|
12,694
|
|
|
|
12,109
|
|
|
|
12,694
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
11,078
|
|
|
|
11,583
|
|
|
|
11,078
|
|
|
|
11,583
|
|
|
Allowance for unfunded credit commitments
|
|
|
1,031
|
|
|
|
1,111
|
|
|
|
1,031
|
|
|
|
1,111
|
|
|
Allowance for credit losses
|
|
|
$
|
12,109
|
|
|
|
12,694
|
|
|
|
12,109
|
|
|
|
12,694
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.30
|
%
|
|
|
0.33
|
|
|
|
0.30
|
|
|
|
0.37
|
|
|
Allowance for loan losses as a percentage of total loans
|
|
|
1.16
|
|
|
|
1.20
|
|
|
|
1.16
|
|
|
|
1.20
|
|
|
Allowance for credit losses as a percentage of total loans
|
|
|
1.27
|
|
|
|
1.32
|
|
|
|
1.27
|
|
|
|
1.32
|
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Balance, beginning of quarter
|
|
|
$
|
12,146
|
|
|
|
12,287
|
|
|
|
12,540
|
|
|
|
12,694
|
|
|
|
12,749
|
|
|
Provision for credit losses
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
|
|
805
|
|
|
|
805
|
|
|
Interest income on certain impaired loans (1)
|
|
|
(43
|
)
|
|
|
(46
|
)
|
|
|
(48
|
)
|
|
|
(52
|
)
|
|
|
(54
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(194
|
)
|
|
|
(161
|
)
|
|
|
(253
|
)
|
|
|
(309
|
)
|
|
|
(324
|
)
|
|
Real estate mortgage
|
|
|
(21
|
)
|
|
|
(8
|
)
|
|
|
(5
|
)
|
|
|
(14
|
)
|
|
|
(7
|
)
|
|
Real estate construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Lease financing
|
|
|
(11
|
)
|
|
|
(13
|
)
|
|
|
(7
|
)
|
|
|
(16
|
)
|
|
|
(4
|
)
|
|
Total commercial
|
|
|
(226
|
)
|
|
|
(182
|
)
|
|
|
(265
|
)
|
|
|
(339
|
)
|
|
|
(335
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(67
|
)
|
|
|
(55
|
)
|
|
|
(69
|
)
|
|
|
(86
|
)
|
|
|
(106
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(70
|
)
|
|
|
(62
|
)
|
|
|
(93
|
)
|
|
|
(110
|
)
|
|
|
(119
|
)
|
|
Credit card
|
|
|
(337
|
)
|
|
|
(379
|
)
|
|
|
(367
|
)
|
|
|
(329
|
)
|
|
|
(296
|
)
|
|
Automobile
|
|
|
(274
|
)
|
|
|
(212
|
)
|
|
|
(255
|
)
|
|
|
(243
|
)
|
|
|
(215
|
)
|
|
Other revolving credit and installment
|
|
|
(170
|
)
|
|
|
(185
|
)
|
|
|
(189
|
)
|
|
|
(200
|
)
|
|
|
(170
|
)
|
|
Total consumer
|
|
|
(918
|
)
|
|
|
(893
|
)
|
|
|
(973
|
)
|
|
|
(968
|
)
|
|
|
(906
|
)
|
|
Total loan charge-offs
|
|
|
(1,144
|
)
|
|
|
(1,075
|
)
|
|
|
(1,238
|
)
|
|
|
(1,307
|
)
|
|
|
(1,241
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
69
|
|
|
|
83
|
|
|
|
82
|
|
|
|
53
|
|
|
|
65
|
|
|
Real estate mortgage
|
|
|
24
|
|
|
|
14
|
|
|
|
30
|
|
|
|
26
|
|
|
|
35
|
|
|
Real estate construction
|
|
|
15
|
|
|
|
4
|
|
|
|
8
|
|
|
|
8
|
|
|
|
18
|
|
|
Lease financing
|
|
|
5
|
|
|
|
6
|
|
|
|
2
|
|
|
|
1
|
|
|
|
2
|
|
|
Total commercial
|
|
|
113
|
|
|
|
107
|
|
|
|
122
|
|
|
|
88
|
|
|
|
120
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
83
|
|
|
|
71
|
|
|
|
62
|
|
|
|
89
|
|
|
|
86
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
69
|
|
|
|
66
|
|
|
|
70
|
|
|
|
66
|
|
|
|
70
|
|
|
Credit card
|
|
|
60
|
|
|
|
59
|
|
|
|
58
|
|
|
|
54
|
|
|
|
51
|
|
|
Automobile
|
|
|
72
|
|
|
|
86
|
|
|
|
88
|
|
|
|
77
|
|
|
|
78
|
|
|
Other revolving credit and installment
|
|
|
30
|
|
|
|
31
|
|
|
|
33
|
|
|
|
28
|
|
|
|
31
|
|
|
Total consumer
|
|
|
314
|
|
|
|
313
|
|
|
|
311
|
|
|
|
314
|
|
|
|
316
|
|
|
Total loan recoveries
|
|
|
427
|
|
|
|
420
|
|
|
|
433
|
|
|
|
402
|
|
|
|
436
|
|
|
Net loan charge-offs
|
|
|
(717
|
)
|
|
|
(655
|
)
|
|
|
(805
|
)
|
|
|
(905
|
)
|
|
|
(805
|
)
|
|
Other
|
|
|
6
|
|
|
|
5
|
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
Balance, end of quarter
|
|
|
$
|
12,109
|
|
|
|
12,146
|
|
|
|
12,287
|
|
|
|
12,540
|
|
|
|
12,694
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
11,078
|
|
|
|
11,073
|
|
|
|
11,168
|
|
|
|
11,419
|
|
|
|
11,583
|
|
|
Allowance for unfunded credit commitments
|
|
|
1,031
|
|
|
|
1,073
|
|
|
|
1,119
|
|
|
|
1,121
|
|
|
|
1,111
|
|
|
Allowance for credit losses
|
|
|
$
|
12,109
|
|
|
|
12,146
|
|
|
|
12,287
|
|
|
|
12,540
|
|
|
|
12,694
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.30
|
%
|
|
|
0.27
|
|
|
|
0.34
|
|
|
|
0.37
|
|
|
|
0.33
|
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.16
|
|
|
|
1.16
|
|
|
|
1.17
|
|
|
|
1.18
|
|
|
|
1.20
|
|
|
Nonaccrual loans
|
|
|
129
|
|
|
|
122
|
|
|
|
114
|
|
|
|
110
|
|
|
|
105
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
119
|
|
|
|
113
|
|
|
|
105
|
|
|
|
101
|
|
|
|
96
|
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.27
|
|
|
|
1.27
|
|
|
|
1.28
|
|
|
|
1.30
|
|
|
|
1.32
|
|
|
Nonaccrual loans
|
|
|
141
|
|
|
|
134
|
|
|
|
126
|
|
|
|
121
|
|
|
|
116
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
130
|
|
|
|
123
|
|
|
|
115
|
|
|
|
110
|
|
|
|
106
|
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
TANGIBLE COMMON EQUITY (1)
|
|
(in millions, except ratios)
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Tangible book value per common share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
$
|
206,824
|
|
|
|
206,145
|
|
|
|
202,489
|
|
|
|
200,497
|
|
|
|
203,958
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(25,576
|
)
|
|
|
(25,785
|
)
|
|
|
(25,501
|
)
|
|
|
(24,551
|
)
|
|
|
(24,594
|
)
|
|
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
|
|
(130
|
)
|
|
|
(136
|
)
|
|
|
(157
|
)
|
|
|
(126
|
)
|
|
|
(130
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
|
1,904
|
|
|
|
2,119
|
|
|
|
2,546
|
|
|
|
1,565
|
|
|
|
1,612
|
|
|
Noncontrolling interests
|
|
|
|
|
|
(895
|
)
|
|
|
(915
|
)
|
|
|
(989
|
)
|
|
|
(916
|
)
|
|
|
(930
|
)
|
|
Total common stockholders' equity
|
|
|
(A)
|
|
|
182,127
|
|
|
|
181,428
|
|
|
|
178,388
|
|
|
|
176,469
|
|
|
|
179,916
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,581
|
)
|
|
|
(26,573
|
)
|
|
|
(26,666
|
)
|
|
|
(26,693
|
)
|
|
|
(26,688
|
)
|
|
Certain identifiable intangible assets
(other than MSRs)
|
|
|
|
|
|
(1,913
|
)
|
|
|
(2,147
|
)
|
|
|
(2,449
|
)
|
|
|
(2,723
|
)
|
|
|
(3,001
|
)
|
|
Other assets (2)
|
|
|
|
|
|
(2,282
|
)
|
|
|
(2,268
|
)
|
|
|
(2,121
|
)
|
|
|
(2,088
|
)
|
|
|
(2,230
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
|
1,550
|
|
|
|
1,624
|
|
|
|
1,698
|
|
|
|
1,772
|
|
|
|
1,832
|
|
|
Tangible common equity
|
|
|
(B)
|
|
|
$
|
152,901
|
|
|
|
152,064
|
|
|
|
148,850
|
|
|
|
146,737
|
|
|
|
149,829
|
|
|
Common shares outstanding
|
|
|
(C)
|
|
|
4,927.9
|
|
|
|
4,966.8
|
|
|
|
4,996.7
|
|
|
|
5,016.1
|
|
|
|
5,023.9
|
|
|
Book value per common share
|
|
|
(A)/(C)
|
|
|
$
|
36.96
|
|
|
|
36.53
|
|
|
|
35.70
|
|
|
|
35.18
|
|
|
|
35.81
|
|
|
Tangible book value per common share
|
|
|
(B)/(C)
|
|
|
31.03
|
|
|
|
30.62
|
|
|
|
29.79
|
|
|
|
29.25
|
|
|
|
29.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Nine months ended
|
|
(in millions, except ratios)
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
|
Sep 30,
2017
|
|
|
Sep 30,
2016
|
|
Return on average tangible common equity (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock
|
|
|
(A)
|
|
|
$
|
4,185
|
|
|
|
5,404
|
|
|
|
5,056
|
|
|
|
4,872
|
|
|
|
5,243
|
|
|
|
14,645
|
|
|
|
15,501
|
|
|
Average total equity
|
|
|
|
|
|
207,934
|
|
|
|
205,968
|
|
|
|
201,767
|
|
|
|
201,247
|
|
|
|
203,883
|
|
|
|
205,246
|
|
|
|
200,502
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(25,780
|
)
|
|
|
(25,849
|
)
|
|
|
(25,163
|
)
|
|
|
(24,579
|
)
|
|
|
(24,813
|
)
|
|
|
(25,600
|
)
|
|
|
(24,291
|
)
|
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(136
|
)
|
|
|
(144
|
)
|
|
|
(146
|
)
|
|
|
(128
|
)
|
|
|
(148
|
)
|
|
|
(142
|
)
|
|
|
(172
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
|
2,114
|
|
|
|
2,366
|
|
|
|
2,198
|
|
|
|
1,596
|
|
|
|
1,850
|
|
|
|
2,226
|
|
|
|
2,150
|
|
|
Noncontrolling interests
|
|
|
|
|
|
(926
|
)
|
|
|
(910
|
)
|
|
|
(957
|
)
|
|
|
(928
|
)
|
|
|
(927
|
)
|
|
|
(931
|
)
|
|
|
(938
|
)
|
|
Average common stockholders’ equity
|
|
|
(B)
|
|
|
183,206
|
|
|
|
181,431
|
|
|
|
177,699
|
|
|
|
177,208
|
|
|
|
179,845
|
|
|
|
180,799
|
|
|
|
177,251
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,600
|
)
|
|
|
(26,664
|
)
|
|
|
(26,673
|
)
|
|
|
(26,713
|
)
|
|
|
(26,979
|
)
|
|
|
(26,645
|
)
|
|
|
(26,696
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(2,056
|
)
|
|
|
(2,303
|
)
|
|
|
(2,588
|
)
|
|
|
(2,871
|
)
|
|
|
(3,145
|
)
|
|
|
(2,314
|
)
|
|
|
(3,383
|
)
|
|
Other assets (2)
|
|
|
|
|
|
(2,231
|
)
|
|
|
(2,160
|
)
|
|
|
(2,095
|
)
|
|
|
(2,175
|
)
|
|
|
(2,131
|
)
|
|
|
(2,163
|
)
|
|
|
(2,097
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
|
1,579
|
|
|
|
1,648
|
|
|
|
1,722
|
|
|
|
1,785
|
|
|
|
1,855
|
|
|
|
1,650
|
|
|
|
1,973
|
|
|
Average tangible common equity
|
|
|
(C)
|
|
|
$
|
153,898
|
|
|
|
151,952
|
|
|
|
148,065
|
|
|
|
147,234
|
|
|
|
149,445
|
|
|
|
151,327
|
|
|
|
147,048
|
|
|
Return on average common stockholders' equity (ROE) (annualized)
|
|
|
(A)/(B)
|
|
|
9.06
|
%
|
|
|
11.95
|
|
|
|
11.54
|
|
|
|
10.94
|
|
|
|
11.60
|
|
|
|
10.83
|
|
|
|
11.68
|
|
|
Return on average tangible common equity (ROTCE) (annualized)
|
|
|
(A)/(C)
|
|
|
10.79
|
|
|
|
14.26
|
|
|
|
13.85
|
|
|
|
13.16
|
|
|
|
13.96
|
|
|
|
12.94
|
|
|
|
14.08
|
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity.
|
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions, except ratio)
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Total equity
|
|
|
|
|
$
|
206.8
|
|
|
|
206.1
|
|
|
|
202.5
|
|
|
|
200.5
|
|
|
|
204.0
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(25.6
|
)
|
|
|
(25.8
|
)
|
|
|
(25.5
|
)
|
|
|
(24.6
|
)
|
|
|
(24.6
|
)
|
|
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
1.9
|
|
|
|
2.1
|
|
|
|
2.5
|
|
|
|
1.6
|
|
|
|
1.6
|
|
|
Noncontrolling interests
|
|
|
|
|
(0.9
|
)
|
|
|
(0.9
|
)
|
|
|
(1.0
|
)
|
|
|
(0.9
|
)
|
|
|
(1.0
|
)
|
|
Total common stockholders' equity
|
|
|
|
|
182.1
|
|
|
|
181.4
|
|
|
|
178.3
|
|
|
|
176.5
|
|
|
|
179.9
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
(26.6
|
)
|
|
|
(26.6
|
)
|
|
|
(26.7
|
)
|
|
|
(26.7
|
)
|
|
|
(26.7
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
(1.9
|
)
|
|
|
(2.1
|
)
|
|
|
(2.4
|
)
|
|
|
(2.7
|
)
|
|
|
(3.0
|
)
|
|
Other assets (2)
|
|
|
|
|
(2.3
|
)
|
|
|
(2.2
|
)
|
|
|
(2.1
|
)
|
|
|
(2.1
|
)
|
|
|
(2.2
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
1.6
|
|
|
|
1.6
|
|
|
|
1.7
|
|
|
|
1.8
|
|
|
|
1.8
|
|
|
Investment in certain subsidiaries and other
|
|
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
|
(0.1
|
)
|
|
|
(0.4
|
)
|
|
|
(2.0
|
)
|
|
Common Equity Tier 1 (Fully Phased-In) under Basel III
|
|
|
(A)
|
|
152.8
|
|
|
|
151.9
|
|
|
|
148.7
|
|
|
|
146.4
|
|
|
|
147.8
|
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)
|
|
|
(B)
|
|
$
|
1,297.1
|
|
|
|
1,310.5
|
|
|
|
1,324.5
|
|
|
|
1,358.9
|
|
|
|
1,380.0
|
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (5)
|
|
|
(A)/(B)
|
|
11.8
|
%
|
|
|
11.6
|
|
|
|
11.2
|
|
|
|
10.8
|
|
|
|
10.7
|
|
|
(1) Basel III capital rules, adopted by the Federal Reserve Board
on July 2, 2013, revised the definition of capital, increased
minimum capital ratios, and introduced a minimum Common Equity
Tier 1 (CET1) ratio. These rules established a new comprehensive
capital framework for U.S. banking organizations that implements
the Basel III capital framework and certain provisions of the
Dodd-Frank Act. The rules are being phased in through the end of
2021. Fully phased-in capital amounts, ratios and RWAs are
calculated assuming the full phase-in of the Basel III capital
rules. Fully phased-in regulatory capital amounts, ratios and RWAs
are considered non-GAAP financial measures that are used by
management, bank regulatory agencies, investors and analysts to
assess and monitor the Company’s capital position.
|
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
|
(4) The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach, which replaced Basel I, and
the Advanced Approach applicable to certain institutions. Under the
final rules, we are subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. Because the
final determination of our CET1 ratio and which approach will
produce the lower CET1 ratio as of September 30, 2017, is subject to
detailed analysis of considerable data, our CET1 ratio at that date
has been estimated using the Basel III definition of capital under
the Basel III Standardized Approach RWAs. The capital ratio for June
30 and March 31, 2017, and December 31 and September 30, 2016, was
calculated under the Basel III Standardized Approach RWAs.
|
|
(5) The Company’s September 30, 2017, RWAs and capital ratio are
preliminary estimates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
Community
Banking
|
|
|
Wholesale
Banking
|
|
|
Wealth and
Investment
Management
|
|
|
Other (2)
|
|
|
Consolidated
Company
|
|
(income/expense in millions, average balances in billions)
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Quarter ended Sep 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
7,645
|
|
|
|
7,430
|
|
|
|
4,353
|
|
|
|
4,062
|
|
|
|
1,159
|
|
|
|
977
|
|
|
|
(681
|
)
|
|
|
(517
|
)
|
|
|
12,476
|
|
|
|
11,952
|
|
Provision (reversal of provision) for credit losses
|
|
|
650
|
|
|
|
651
|
|
|
|
69
|
|
|
|
157
|
|
|
|
(1
|
)
|
|
|
4
|
|
|
|
(1
|
)
|
|
|
(7
|
)
|
|
|
717
|
|
|
|
805
|
|
Noninterest income
|
|
|
4,415
|
|
|
|
4,957
|
|
|
|
2,732
|
|
|
|
3,085
|
|
|
|
3,087
|
|
|
|
3,122
|
|
|
|
(784
|
)
|
|
|
(788
|
)
|
|
|
9,450
|
|
|
|
10,376
|
|
Noninterest expense
|
|
|
7,834
|
|
|
|
6,953
|
|
|
|
4,248
|
|
|
|
4,120
|
|
|
|
3,106
|
|
|
|
2,999
|
|
|
|
(837
|
)
|
|
|
(804
|
)
|
|
|
14,351
|
|
|
|
13,268
|
|
Income (loss) before income tax expense (benefit)
|
|
|
3,576
|
|
|
|
4,783
|
|
|
|
2,768
|
|
|
|
2,870
|
|
|
|
1,141
|
|
|
|
1,096
|
|
|
|
(627
|
)
|
|
|
(494
|
)
|
|
|
6,858
|
|
|
|
8,255
|
|
Income tax expense (benefit)
|
|
|
1,286
|
|
|
|
1,546
|
|
|
|
729
|
|
|
|
827
|
|
|
|
427
|
|
|
|
415
|
|
|
|
(238
|
)
|
|
|
(187
|
)
|
|
|
2,204
|
|
|
|
2,601
|
|
Net income (loss) before noncontrolling interests
|
|
|
2,290
|
|
|
|
3,237
|
|
|
|
2,039
|
|
|
|
2,043
|
|
|
|
714
|
|
|
|
681
|
|
|
|
(389
|
)
|
|
|
(307
|
)
|
|
|
4,654
|
|
|
|
5,654
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
61
|
|
|
|
10
|
|
|
|
(7
|
)
|
|
|
(4
|
)
|
|
|
4
|
|
|
|
4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58
|
|
|
|
10
|
|
Net income (loss)
|
|
|
$
|
2,229
|
|
|
|
3,227
|
|
|
|
2,046
|
|
|
|
2,047
|
|
|
|
710
|
|
|
|
677
|
|
|
|
(389
|
)
|
|
|
(307
|
)
|
|
|
4,596
|
|
|
|
5,644
|
|
|
|
Average loans
|
|
|
$
|
473.5
|
|
|
|
489.2
|
|
|
|
463.8
|
|
|
|
454.3
|
|
|
|
72.4
|
|
|
|
68.4
|
|
|
|
(57.4
|
)
|
|
|
(54.4
|
)
|
|
|
952.3
|
|
|
|
957.5
|
|
Average assets
|
|
|
988.9
|
|
|
|
993.6
|
|
|
|
824.3
|
|
|
|
794.2
|
|
|
|
213.4
|
|
|
|
212.1
|
|
|
|
(88.1
|
)
|
|
|
(85.3
|
)
|
|
|
1,938.5
|
|
|
|
1,914.6
|
|
Average deposits
|
|
|
734.5
|
|
|
|
708.0
|
|
|
|
463.4
|
|
|
|
441.2
|
|
|
|
188.1
|
|
|
|
189.2
|
|
|
|
(79.6
|
)
|
|
|
(76.9
|
)
|
|
|
1,306.4
|
|
|
|
1,261.5
|
|
|
|
Nine months ended Sep 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
22,820
|
|
|
|
22,277
|
|
|
|
12,779
|
|
|
|
11,729
|
|
|
|
3,360
|
|
|
|
2,852
|
|
|
|
(1,700
|
)
|
|
|
(1,506
|
)
|
|
|
37,259
|
|
|
|
35,352
|
|
Provision (reversal of provision) for credit losses
|
|
|
1,919
|
|
|
|
2,060
|
|
|
|
(39
|
)
|
|
|
905
|
|
|
|
2
|
|
|
|
(8
|
)
|
|
|
(5
|
)
|
|
|
8
|
|
|
|
1,877
|
|
|
|
2,965
|
|
Noninterest income
|
|
|
13,622
|
|
|
|
14,928
|
|
|
|
8,295
|
|
|
|
9,660
|
|
|
|
9,261
|
|
|
|
9,020
|
|
|
|
(2,340
|
)
|
|
|
(2,275
|
)
|
|
|
28,838
|
|
|
|
31,333
|
|
Noninterest expense
|
|
|
22,278
|
|
|
|
20,437
|
|
|
|
12,551
|
|
|
|
12,124
|
|
|
|
9,387
|
|
|
|
9,017
|
|
|
|
(2,532
|
)
|
|
|
(2,416
|
)
|
|
|
41,684
|
|
|
|
39,162
|
|
Income (loss) before income tax expense (benefit)
|
|
|
12,245
|
|
|
|
14,708
|
|
|
|
8,562
|
|
|
|
8,360
|
|
|
|
3,232
|
|
|
|
2,863
|
|
|
|
(1,503
|
)
|
|
|
(1,373
|
)
|
|
|
22,536
|
|
|
|
24,558
|
|
Income tax expense (benefit)
|
|
|
3,817
|
|
|
|
4,910
|
|
|
|
2,034
|
|
|
|
2,341
|
|
|
|
1,206
|
|
|
|
1,087
|
|
|
|
(571
|
)
|
|
|
(521
|
)
|
|
|
6,486
|
|
|
|
7,817
|
|
Net income (loss) before noncontrolling interests
|
|
|
8,428
|
|
|
|
9,798
|
|
|
|
6,528
|
|
|
|
6,019
|
|
|
|
2,026
|
|
|
|
1,776
|
|
|
|
(932
|
)
|
|
|
(852
|
)
|
|
|
16,050
|
|
|
|
16,741
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
197
|
|
|
|
96
|
|
|
|
(21
|
)
|
|
|
(22
|
)
|
|
|
11
|
|
|
|
3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
187
|
|
|
|
77
|
|
Net income (loss)
|
|
|
$
|
8,231
|
|
|
|
9,702
|
|
|
|
6,549
|
|
|
|
6,041
|
|
|
|
2,015
|
|
|
|
1,773
|
|
|
|
(932
|
)
|
|
|
(852
|
)
|
|
|
15,863
|
|
|
|
16,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
$
|
477.8
|
|
|
|
486.4
|
|
|
|
465.0
|
|
|
|
445.2
|
|
|
|
71.6
|
|
|
|
66.4
|
|
|
|
(56.8
|
)
|
|
|
(52.8
|
)
|
|
|
957.6
|
|
|
|
945.2
|
|
Average assets
|
|
|
987.7
|
|
|
|
969.6
|
|
|
|
816.5
|
|
|
|
771.9
|
|
|
|
216.1
|
|
|
|
208.5
|
|
|
|
(88.1
|
)
|
|
|
(84.3
|
)
|
|
|
1,932.2
|
|
|
|
1,865.7
|
|
Average deposits
|
|
|
726.4
|
|
|
|
698.3
|
|
|
|
464.1
|
|
|
|
431.7
|
|
|
|
190.6
|
|
|
|
185.4
|
|
|
|
(78.8
|
)
|
|
|
(76.1
|
)
|
|
|
1,302.3
|
|
|
|
1,239.3
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is not
necessarily comparable with other similar information for other
financial services companies. We define our operating segments by
product type and customer segment.
|
|
(2) Includes the elimination of certain items that are included in
more than one business segment, most of which represents products
and services for Wealth and Investment Management customers served
through Community Banking distribution channels.
|
|
(3) Net interest income is the difference between interest earned on
assets and the cost of liabilities to fund those assets. Interest
earned includes actual interest earned on segment assets and, if the
segment has excess liabilities, interest credits for providing
funding to other segments. The cost of liabilities includes interest
expense on segment liabilities and, if the segment does not have
enough liabilities to fund its assets, a funding charge based on the
cost of excess liabilities from another segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
Quarter ended
|
|
(income/expense in millions, average balances in billions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
7,645
|
|
|
|
7,548
|
|
|
|
7,627
|
|
|
|
7,556
|
|
|
|
7,430
|
|
|
Provision for credit losses
|
|
|
650
|
|
|
|
623
|
|
|
|
646
|
|
|
|
631
|
|
|
|
651
|
|
|
Noninterest income
|
|
|
4,415
|
|
|
|
4,741
|
|
|
|
4,466
|
|
|
|
4,105
|
|
|
|
4,957
|
|
|
Noninterest expense
|
|
|
7,834
|
|
|
|
7,223
|
|
|
|
7,221
|
|
|
|
6,985
|
|
|
|
6,953
|
|
|
Income before income tax expense
|
|
|
3,576
|
|
|
|
4,443
|
|
|
|
4,226
|
|
|
|
4,045
|
|
|
|
4,783
|
|
|
Income tax expense
|
|
|
1,286
|
|
|
|
1,404
|
|
|
|
1,127
|
|
|
|
1,272
|
|
|
|
1,546
|
|
|
Net income before noncontrolling interests
|
|
|
2,290
|
|
|
|
3,039
|
|
|
|
3,099
|
|
|
|
2,773
|
|
|
|
3,237
|
|
|
Less: Net income from noncontrolling interests
|
|
|
61
|
|
|
|
46
|
|
|
|
90
|
|
|
|
40
|
|
|
|
10
|
|
|
Segment net income
|
|
|
$
|
2,229
|
|
|
|
2,993
|
|
|
|
3,009
|
|
|
|
2,733
|
|
|
|
3,227
|
|
|
Average loans
|
|
|
$
|
473.5
|
|
|
|
477.2
|
|
|
|
482.7
|
|
|
|
488.1
|
|
|
|
489.2
|
|
|
Average assets
|
|
|
988.9
|
|
|
|
983.5
|
|
|
|
990.7
|
|
|
|
1,000.7
|
|
|
|
993.6
|
|
|
Average deposits
|
|
|
734.5
|
|
|
|
727.2
|
|
|
|
717.2
|
|
|
|
709.8
|
|
|
|
708.0
|
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
4,353
|
|
|
|
4,278
|
|
|
|
4,148
|
|
|
|
4,323
|
|
|
|
4,062
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
69
|
|
|
|
(65
|
)
|
|
|
(43
|
)
|
|
|
168
|
|
|
|
157
|
|
|
Noninterest income
|
|
|
2,732
|
|
|
|
2,673
|
|
|
|
2,890
|
|
|
|
2,830
|
|
|
|
3,085
|
|
|
Noninterest expense
|
|
|
4,248
|
|
|
|
4,078
|
|
|
|
4,225
|
|
|
|
4,002
|
|
|
|
4,120
|
|
|
Income before income tax expense
|
|
|
2,768
|
|
|
|
2,938
|
|
|
|
2,856
|
|
|
|
2,983
|
|
|
|
2,870
|
|
|
Income tax expense
|
|
|
729
|
|
|
|
559
|
|
|
|
746
|
|
|
|
795
|
|
|
|
827
|
|
|
Net income before noncontrolling interests
|
|
|
2,039
|
|
|
|
2,379
|
|
|
|
2,110
|
|
|
|
2,188
|
|
|
|
2,043
|
|
|
Less: Net loss from noncontrolling interests
|
|
|
(7
|
)
|
|
|
(9
|
)
|
|
|
(5
|
)
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
Segment net income
|
|
|
$
|
2,046
|
|
|
|
2,388
|
|
|
|
2,115
|
|
|
|
2,194
|
|
|
|
2,047
|
|
|
Average loans
|
|
|
$
|
463.8
|
|
|
|
464.9
|
|
|
|
466.3
|
|
|
|
461.5
|
|
|
|
454.3
|
|
|
Average assets
|
|
|
824.3
|
|
|
|
817.3
|
|
|
|
807.8
|
|
|
|
811.9
|
|
|
|
794.2
|
|
|
Average deposits
|
|
|
463.4
|
|
|
|
463.0
|
|
|
|
466.0
|
|
|
|
459.2
|
|
|
|
441.2
|
|
|
WEALTH AND INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
1,159
|
|
|
|
1,127
|
|
|
|
1,074
|
|
|
|
1,061
|
|
|
|
977
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
(1
|
)
|
|
|
7
|
|
|
|
(4
|
)
|
|
|
3
|
|
|
|
4
|
|
|
Noninterest income
|
|
|
3,087
|
|
|
|
3,055
|
|
|
|
3,119
|
|
|
|
3,013
|
|
|
|
3,122
|
|
|
Noninterest expense
|
|
|
3,106
|
|
|
|
3,075
|
|
|
|
3,206
|
|
|
|
3,042
|
|
|
|
2,999
|
|
|
Income before income tax expense
|
|
|
1,141
|
|
|
|
1,100
|
|
|
|
991
|
|
|
|
1,029
|
|
|
|
1,096
|
|
|
Income tax expense
|
|
|
427
|
|
|
|
417
|
|
|
|
362
|
|
|
|
380
|
|
|
|
415
|
|
|
Net income before noncontrolling interests
|
|
|
714
|
|
|
|
683
|
|
|
|
629
|
|
|
|
649
|
|
|
|
681
|
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
4
|
|
|
|
1
|
|
|
|
6
|
|
|
|
(4
|
)
|
|
|
4
|
|
|
Segment net income
|
|
|
$
|
710
|
|
|
|
682
|
|
|
|
623
|
|
|
|
653
|
|
|
|
677
|
|
|
Average loans
|
|
|
$
|
72.4
|
|
|
|
71.7
|
|
|
|
70.7
|
|
|
|
70.0
|
|
|
|
68.4
|
|
|
Average assets
|
|
|
213.4
|
|
|
|
213.1
|
|
|
|
221.9
|
|
|
|
220.4
|
|
|
|
212.1
|
|
|
Average deposits
|
|
|
188.1
|
|
|
|
188.2
|
|
|
|
195.6
|
|
|
|
194.9
|
|
|
|
189.2
|
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
(681
|
)
|
|
|
(470
|
)
|
|
|
(549
|
)
|
|
|
(538
|
)
|
|
|
(517
|
)
|
|
Provision (reversal of provision) for credit losses
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
6
|
|
|
|
3
|
|
|
|
(7
|
)
|
|
Noninterest income
|
|
|
(784
|
)
|
|
|
(783
|
)
|
|
|
(773
|
)
|
|
|
(768
|
)
|
|
|
(788
|
)
|
|
Noninterest expense
|
|
|
(837
|
)
|
|
|
(835
|
)
|
|
|
(860
|
)
|
|
|
(814
|
)
|
|
|
(804
|
)
|
|
Loss before income tax benefit
|
|
|
(627
|
)
|
|
|
(408
|
)
|
|
|
(468
|
)
|
|
|
(495
|
)
|
|
|
(494
|
)
|
|
Income tax benefit
|
|
|
(238
|
)
|
|
|
(155
|
)
|
|
|
(178
|
)
|
|
|
(189
|
)
|
|
|
(187
|
)
|
|
Net loss before noncontrolling interests
|
|
|
(389
|
)
|
|
|
(253
|
)
|
|
|
(290
|
)
|
|
|
(306
|
)
|
|
|
(307
|
)
|
|
Less: Net income from noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other net loss
|
|
|
$
|
(389
|
)
|
|
|
(253
|
)
|
|
|
(290
|
)
|
|
|
(306
|
)
|
|
|
(307
|
)
|
|
Average loans
|
|
|
$
|
(57.4
|
)
|
|
|
(56.9
|
)
|
|
|
(56.1
|
)
|
|
|
(55.5
|
)
|
|
|
(54.4
|
)
|
|
Average assets
|
|
|
(88.1
|
)
|
|
|
(86.8
|
)
|
|
|
(89.4
|
)
|
|
|
(88.7
|
)
|
|
|
(85.3
|
)
|
|
Average deposits
|
|
|
(79.6
|
)
|
|
|
(77.2
|
)
|
|
|
(79.6
|
)
|
|
|
(79.7
|
)
|
|
|
(76.9
|
)
|
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
12,476
|
|
|
|
12,483
|
|
|
|
12,300
|
|
|
|
12,402
|
|
|
|
11,952
|
|
|
Provision for credit losses
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
|
|
805
|
|
|
|
805
|
|
|
Noninterest income
|
|
|
9,450
|
|
|
|
9,686
|
|
|
|
9,702
|
|
|
|
9,180
|
|
|
|
10,376
|
|
|
Noninterest expense
|
|
|
14,351
|
|
|
|
13,541
|
|
|
|
13,792
|
|
|
|
13,215
|
|
|
|
13,268
|
|
|
Income before income tax expense
|
|
|
6,858
|
|
|
|
8,073
|
|
|
|
7,605
|
|
|
|
7,562
|
|
|
|
8,255
|
|
|
Income tax expense
|
|
|
2,204
|
|
|
|
2,225
|
|
|
|
2,057
|
|
|
|
2,258
|
|
|
|
2,601
|
|
|
Net income before noncontrolling interests
|
|
|
4,654
|
|
|
|
5,848
|
|
|
|
5,548
|
|
|
|
5,304
|
|
|
|
5,654
|
|
|
Less: Net income from noncontrolling interests
|
|
|
58
|
|
|
|
38
|
|
|
|
91
|
|
|
|
30
|
|
|
|
10
|
|
|
Wells Fargo net income
|
|
|
$
|
4,596
|
|
|
|
5,810
|
|
|
|
5,457
|
|
|
|
5,274
|
|
|
|
5,644
|
|
|
Average loans
|
|
|
$
|
952.3
|
|
|
|
956.9
|
|
|
|
963.6
|
|
|
|
964.1
|
|
|
|
957.5
|
|
|
Average assets
|
|
|
1,938.5
|
|
|
|
1,927.1
|
|
|
|
1,931.0
|
|
|
|
1,944.3
|
|
|
|
1,914.6
|
|
|
Average deposits
|
|
|
1,306.4
|
|
|
|
1,301.2
|
|
|
|
1,299.2
|
|
|
|
1,284.2
|
|
|
|
1,261.5
|
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is not
necessarily comparable with other similar information for other
financial services companies. We define our operating segments by
product type and customer segment.
|
|
(2) Net interest income is the difference between interest earned on
assets and the cost of liabilities to fund those assets. Interest
earned includes actual interest earned on segment assets and, if the
segment has excess liabilities, interest credits for providing
funding to other segments. The cost of liabilities includes interest
expense on segment liabilities and, if the segment does not have
enough liabilities to fund its assets, a funding charge based on the
cost of excess liabilities from another segment.
|
|
(3) Includes the elimination of certain items that are included in
more than one business segment, most of which represents products
and services for Wealth and Investment Management customers served
through Community Banking distribution channels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
|
$
|
12,789
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
|
10,415
|
|
|
|
10,396
|
|
|
Purchases
|
|
|
541
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
605
|
|
|
|
436
|
|
|
|
583
|
|
|
|
752
|
|
|
|
609
|
|
|
Sales and other (2)
|
|
|
64
|
|
|
|
(8
|
)
|
|
|
(47
|
)
|
|
|
(47
|
)
|
|
|
4
|
|
|
Net additions
|
|
|
1,210
|
|
|
|
428
|
|
|
|
536
|
|
|
|
705
|
|
|
|
613
|
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (3)
|
|
|
(171
|
)
|
|
|
(305
|
)
|
|
|
152
|
|
|
|
2,367
|
|
|
|
39
|
|
|
Servicing and foreclosure costs (4)
|
|
|
60
|
|
|
|
(14
|
)
|
|
|
27
|
|
|
|
93
|
|
|
|
(10
|
)
|
|
Prepayment estimates and other (5)
|
|
|
(31
|
)
|
|
|
(41
|
)
|
|
|
(5
|
)
|
|
|
(106
|
)
|
|
|
(37
|
)
|
|
Net changes in valuation model inputs or assumptions
|
|
|
(142
|
)
|
|
|
(360
|
)
|
|
|
174
|
|
|
|
2,354
|
|
|
|
(8
|
)
|
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
(519
|
)
|
|
|
(487
|
)
|
|
|
(461
|
)
|
|
|
(515
|
)
|
|
|
(586
|
)
|
|
Total changes in fair value
|
|
|
(661
|
)
|
|
|
(847
|
)
|
|
|
(287
|
)
|
|
|
1,839
|
|
|
|
(594
|
)
|
|
Fair value, end of quarter
|
|
|
$
|
13,338
|
|
|
|
12,789
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
|
10,415
|
|
|
(1) Includes impacts associated with exercising our right to
repurchase delinquent loans from GNMA loan securitization pools.
|
|
(2) Includes sales and transfers of MSRs, which can result in an
increase of total reported MSRs if the sales or transfers are
related to nonperforming loan portfolios or portfolios with
servicing liabilities.
|
|
(3) Includes prepayment speed changes as well as other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances)
|
|
(4) Includes costs to service and unreimbursed foreclosure costs.
|
|
(5) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and other
assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior and other
external factors that occur independent of interest rate changes.
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
$
|
1,399
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
|
1,373
|
|
|
|
1,353
|
|
|
Purchases
|
|
|
31
|
|
|
|
26
|
|
|
|
18
|
|
|
|
34
|
|
|
|
18
|
|
|
Servicing from securitizations or asset transfers
|
|
|
41
|
|
|
|
37
|
|
|
|
45
|
|
|
|
66
|
|
|
|
69
|
|
|
Amortization
|
|
|
(65
|
)
|
|
|
(66
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
Balance, end of quarter
|
|
|
$
|
1,406
|
|
|
|
1,399
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
|
1,373
|
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
$
|
1,989
|
|
|
|
2,051
|
|
|
|
1,956
|
|
|
|
1,627
|
|
|
|
1,620
|
|
|
End of quarter
|
|
|
1,990
|
|
|
|
1,989
|
|
|
|
2,051
|
|
|
|
1,956
|
|
|
|
1,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
|
|
$
|
795
|
|
|
|
882
|
|
|
|
882
|
|
|
|
738
|
|
|
|
878
|
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
|
(A)
|
|
|
(142
|
)
|
|
|
(360
|
)
|
|
|
174
|
|
|
|
2,354
|
|
|
|
(8
|
)
|
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
|
|
|
(519
|
)
|
|
|
(487
|
)
|
|
|
(461
|
)
|
|
|
(515
|
)
|
|
|
(586
|
)
|
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
|
|
(661
|
)
|
|
|
(847
|
)
|
|
|
(287
|
)
|
|
|
1,839
|
|
|
|
(594
|
)
|
|
Amortization
|
|
|
|
|
|
(65
|
)
|
|
|
(66
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
|
(67
|
)
|
|
Net derivative gains (losses) from economic hedges (3)
|
|
|
(B)
|
|
|
240
|
|
|
|
431
|
|
|
|
(72
|
)
|
|
|
(2,314
|
)
|
|
|
142
|
|
|
Total servicing income, net
|
|
|
|
|
|
$
|
309
|
|
|
|
400
|
|
|
|
456
|
|
|
|
196
|
|
|
|
359
|
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(3)
|
|
|
(A)+(B)
|
|
|
$
|
98
|
|
|
|
71
|
|
|
|
102
|
|
|
|
40
|
|
|
|
134
|
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues, net of unreimbursed direct servicing
costs.
|
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
|
(3) Represents results from economic hedges used to hedge the risk
of changes in fair value of MSRs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in billions)
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
|
|
$
|
1,223
|
|
|
|
1,189
|
|
|
|
1,204
|
|
|
|
1,205
|
|
|
|
1,226
|
|
|
Owned loans serviced
|
|
|
|
|
|
340
|
|
|
|
343
|
|
|
|
335
|
|
|
|
347
|
|
|
|
352
|
|
|
Subserviced for others
|
|
|
|
|
|
3
|
|
|
|
4
|
|
|
|
4
|
|
|
|
8
|
|
|
|
4
|
|
|
Total residential servicing
|
|
|
|
|
|
1,566
|
|
|
|
1,536
|
|
|
|
1,543
|
|
|
|
1,560
|
|
|
|
1,582
|
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
|
|
480
|
|
|
|
475
|
|
|
|
474
|
|
|
|
479
|
|
|
|
477
|
|
|
Owned loans serviced
|
|
|
|
|
|
128
|
|
|
|
130
|
|
|
|
132
|
|
|
|
132
|
|
|
|
130
|
|
|
Subserviced for others
|
|
|
|
|
|
8
|
|
|
|
8
|
|
|
|
7
|
|
|
|
8
|
|
|
|
8
|
|
|
Total commercial servicing
|
|
|
|
|
|
616
|
|
|
|
613
|
|
|
|
613
|
|
|
|
619
|
|
|
|
615
|
|
|
Total managed servicing portfolio
|
|
|
|
|
|
$
|
2,182
|
|
|
|
2,149
|
|
|
|
2,156
|
|
|
|
2,179
|
|
|
|
2,197
|
|
|
Total serviced for others
|
|
|
|
|
|
$
|
1,703
|
|
|
|
1,664
|
|
|
|
1,678
|
|
|
|
1,684
|
|
|
|
1,703
|
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
|
|
|
0.87
|
%
|
|
|
0.85
|
|
|
|
0.87
|
|
|
|
0.85
|
|
|
|
0.69
|
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
|
|
|
4.23
|
|
|
|
4.23
|
|
|
|
4.23
|
|
|
|
4.26
|
|
|
|
4.28
|
|
|
(1) The components of our managed servicing portfolio are
presented at unpaid principal balance for loans serviced and
subserviced for others and at book value for owned loans serviced.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Net gains on mortgage loan origination/sales activities (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
(A)
|
|
|
$
|
546
|
|
|
|
521
|
|
|
|
569
|
|
|
|
939
|
|
|
|
953
|
|
|
Commercial
|
|
|
|
|
|
81
|
|
|
|
81
|
|
|
|
101
|
|
|
|
90
|
|
|
|
167
|
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
|
|
|
|
110
|
|
|
|
146
|
|
|
|
102
|
|
|
|
192
|
|
|
|
188
|
|
|
Total
|
|
|
|
|
|
$
|
737
|
|
|
|
748
|
|
|
|
772
|
|
|
|
1,221
|
|
|
|
1,308
|
|
|
Application data (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
|
|
$
|
73
|
|
|
|
83
|
|
|
|
59
|
|
|
|
75
|
|
|
|
100
|
|
|
Refinances as a percentage of applications
|
|
|
|
|
|
37
|
%
|
|
|
32
|
|
|
|
36
|
|
|
|
48
|
|
|
|
55
|
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
|
|
$
|
29
|
|
|
|
34
|
|
|
|
28
|
|
|
|
30
|
|
|
|
50
|
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
|
|
|
|
72
|
%
|
|
|
75
|
|
|
|
61
|
|
|
|
50
|
|
|
|
58
|
|
|
Refinances as a percentage of originations
|
|
|
|
|
|
28
|
|
|
|
25
|
|
|
|
39
|
|
|
|
50
|
|
|
|
42
|
|
|
Total
|
|
|
|
|
|
100
|
%
|
|
|
100
|
|
|
|
100
|
|
|
|
100
|
|
|
|
100
|
|
|
Wells Fargo first mortgage loans (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
$
|
26
|
|
|
|
25
|
|
|
|
21
|
|
|
|
35
|
|
|
|
37
|
|
|
Correspondent
|
|
|
|
|
|
32
|
|
|
|
31
|
|
|
|
22
|
|
|
|
36
|
|
|
|
32
|
|
|
Other (2)
|
|
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
Total quarter-to-date
|
|
|
|
|
|
$
|
59
|
|
|
|
56
|
|
|
|
44
|
|
|
|
72
|
|
|
|
70
|
|
|
Held-for-sale
|
|
|
(B)
|
|
|
$
|
44
|
|
|
|
42
|
|
|
|
34
|
|
|
|
56
|
|
|
|
53
|
|
|
Held-for-investment
|
|
|
|
|
|
15
|
|
|
|
14
|
|
|
|
10
|
|
|
|
16
|
|
|
|
17
|
|
|
Total quarter-to-date
|
|
|
|
|
|
$
|
59
|
|
|
|
56
|
|
|
|
44
|
|
|
|
72
|
|
|
|
70
|
|
|
Total year-to-date
|
|
|
|
|
|
$
|
159
|
|
|
|
100
|
|
|
|
44
|
|
|
|
249
|
|
|
|
177
|
|
|
Production margin on residential held-for-sale mortgage
originations
|
|
|
(A)/(B)
|
|
|
1.24
|
%
|
|
|
1.24
|
|
|
|
1.68
|
|
|
|
1.68
|
|
|
|
1.81
|
|
|
(1) Largely includes the results of GNMA loss mitigation activities,
interest rate management activities and changes in estimate to the
liability for mortgage loan repurchase losses.
|
|
(2) Consists of home equity loans and lines.
|
|
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
|
|
|
Sep 30,
2017
|
|
|
Jun 30,
2017
|
|
|
Mar 31,
2017
|
|
|
Dec 31,
2016
|
|
|
Sep 30,
2016
|
|
Balance, beginning of period
|
|
|
|
|
|
$
|
178
|
|
|
|
222
|
|
|
229
|
|
|
|
239
|
|
|
|
255
|
|
|
Assumed with MSR purchases (1)
|
|
|
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
|
|
|
6
|
|
|
|
6
|
|
|
|
8
|
|
|
|
10
|
|
|
|
11
|
|
|
Change in estimate (2)
|
|
|
|
|
|
(12
|
)
|
|
|
(45
|
)
|
|
|
(8
|
)
|
|
|
(7
|
)
|
|
|
(24
|
)
|
|
Net additions (reductions) to provision
|
|
|
|
|
|
(6
|
)
|
|
|
(39
|
)
|
|
|
—
|
|
|
|
3
|
|
|
|
(13
|
)
|
|
Losses
|
|
|
|
|
|
(3
|
)
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
|
(13
|
)
|
|
|
(3
|
)
|
|
Balance, end of period
|
|
|
|
|
|
$
|
179
|
|
|
|
178
|
|
|
222
|
|
|
|
229
|
|
|
|
239
|
|
|
(1) Represents repurchase liability associated with portfolio of
loans underlying mortgage servicing rights acquired during the
period.
|
|
(2) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.
|
