Wells Fargo & Company (NYSE:WFC):
-
Our preliminary financial results may need to be revised to reflect
additional accruals for the CFPB/OCC matter, discussed on page 2, when
we file our final financial statements in our Quarterly Report on Form
10-Q.
-
Preliminary financial results:
-
Preliminary net income of $5.9 billion, compared with $5.6 billion
in first quarter 2017
-
Diluted earnings per share (EPS) of $1.12, compared with $1.03
-
Revenue of $21.9 billion, down from $22.3 billion
-
Net interest income of $12.2 billion, down $86 million, or 1
percent
-
Noninterest income of $9.7 billion, down $235 million, or 2
percent
-
Average deposits of $1.3 trillion, down $2.0 billion
-
Average loans of $951.0 billion, down $12.6 billion, or 1 percent
-
Return on assets (ROA) of 1.26 percent, return on equity (ROE) of
12.37 percent, and return on average tangible common equity
(ROTCE) of 14.75 percent1
-
Credit quality:
-
Provision expense of $191 million, down $414 million, or 68
percent, from first quarter 2017
-
Net charge-offs of $741 million, down $64 million
-
Net charge-offs were 0.32 percent of average loans
(annualized), down from 0.34 percent
-
Reserve release2 of $550 million, compared with a
$200 million reserve release in first quarter 2017
-
Nonaccrual loans of $7.7 billion, down $2.0 billion, or 21 percent
-
Capital position and return:
-
Common Equity Tier 1 ratio (fully phased-in) of 12.0 percent3
-
Returned $4.0 billion to shareholders through common stock
dividends and net share repurchases, up 30 percent from $3.1
billion in first quarter 2017
-
Net share repurchases of $2.1 billion, up 78 percent
-
Period-end common shares outstanding down 122.9 million shares
Final financial results and other disclosures will be reported in our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, 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, including developments with respect
to the resolution of regulatory matters, which could cause us to take
additional accruals in the first quarter, or the discovery of additional
information.
|
|
|
|
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
1.12
|
|
|
|
1.16
|
|
|
|
1.03
|
|
Wells Fargo net income (in billions)
|
|
|
5.94
|
|
|
|
6.15
|
|
|
|
5.63
|
|
Return on assets (ROA)
|
|
|
1.26
|
%
|
|
|
1.26
|
|
|
|
1.18
|
|
Return on equity (ROE)
|
|
|
12.37
|
|
|
|
12.47
|
|
|
|
11.96
|
|
Return on average tangible common equity (ROTCE) (a)
|
|
|
14.75
|
|
|
|
14.85
|
|
|
|
14.35
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
0.32
|
%
|
|
|
0.31
|
|
|
|
0.34
|
|
Allowance for credit losses as a % of total loans
|
|
|
1.19
|
|
|
|
1.25
|
|
|
|
1.28
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
376
|
|
|
|
401
|
|
|
|
376
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
21.9
|
|
|
|
22.1
|
|
|
|
22.3
|
|
Efficiency ratio (b)
|
|
|
64.9
|
%
|
|
|
76.2
|
|
|
|
62.0
|
|
Average loans (in billions)
|
|
|
$
|
951.0
|
|
|
|
951.8
|
|
|
|
963.6
|
|
Average deposits (in billions)
|
|
|
1,297.2
|
|
|
|
1,311.6
|
|
|
|
1,299.2
|
|
Net interest margin
|
|
|
2.84
|
%
|
|
|
2.84
|
|
|
|
2.87
|
|
(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 securities 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 36.
|
|
(b) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
Wells Fargo & Company (NYSE:WFC) reported preliminary results, including
net income of $5.9 billion, or $1.12 per diluted common share, for first
quarter 2018, compared with $5.6 billion, or $1.03 per share, for first
quarter 2017, and $6.2 billion, or $1.16 per share, for fourth quarter
2017. These preliminary results are subject to change due to our ongoing
discussions with the Consumer Financial Protection Bureau (CFPB) and
Office of the Comptroller of the Currency (OCC) to resolve matters
regarding our compliance risk management program and our past practices
involving certain automobile collateral protection insurance policies
and certain mortgage interest rate lock extensions (the “CFPB/OCC
matter”), which the CFPB and OCC have collectively offered to resolve
for an aggregate of $1 billion in civil money penalties. At this time,
we are unable to predict final resolution of the CFPB/OCC matter and
cannot reasonably estimate our related loss contingency. Accordingly,
the preliminary financial results we report today may need to be revised
to reflect additional accruals for the CFPB/OCC matter when we file our
final financial statements in our Quarterly Report on Form 10-Q with the
SEC.
Chief Executive Officer Tim Sloan said, “I’m confident that our
outstanding team will continue to transform Wells Fargo into a better,
stronger company; however, we recognize that it will take time to put
all of our challenges behind us. During the first quarter our team
members continued to focus on our vision of satisfying our customers’
financial needs and helping them succeed financially. We also made
progress on our priority of rebuilding trust with our customers, team
members, communities, regulators, and shareholders. The efforts to build
a better Wells Fargo during the quarter included continuing to improve
our compliance and operational risk management programs, investing in
innovative products and services that enhance the customer experience
including the roll-out of our digital mortgage application and
predictive banking service, and increasing the minimum hourly pay rate
for U.S.-based team members. We also began executing on our goal to
increase donations to nonprofit and community organizations by
approximately 40 percent in 2018, and we’re proud that Wells Fargo was
recently named number one in U.S. workplace giving for the ninth
consecutive year by United Way Worldwide. In addition, we continued to
make progress on our expense savings initiatives and remain on track to
achieve our target of $4 billion in expense reductions by the end of
2019.”
Chief Financial Officer John Shrewsberry said, “Wells Fargo
preliminarily reported $5.9 billion of net income in the first quarter,
subject to the resolution of the CFPB/OCC matter noted in today's
earnings release. Our financial results included continued strong credit
performance, liquidity and capital levels. We returned $4.0 billion to
shareholders through common stock dividends and net share repurchases in
the first quarter, up 30 percent from a year ago. Our capital remained
well above our internal target, and returning more capital to
shareholders remains a priority. Our expenses in the first quarter
included typically higher personnel expense; however, our noninterest
expense dollar target range for full year 2018 remains unchanged.”
Net Interest Income
Net interest income in first quarter 2018 was $12.2 billion, down $75
million, compared with fourth quarter 2017, driven primarily by two
fewer days in the quarter, hedge ineffectiveness accounting, and lower
loan swap income related to the unwind of the receive-fixed swap
portfolio, partially offset by the net repricing impact of higher
interest rates.
Net interest margin was 2.84 percent, flat compared with fourth quarter
2017. The negative impact to net interest margin from hedge
ineffectiveness accounting and lower loan swap income was offset by the
net repricing benefit of higher interest rates.
Noninterest Income
Noninterest income in first quarter was $9.7 billion, down $41 million,
compared with fourth quarter 2017. First quarter noninterest income
reflected lower deposit service charges, card fees, other fees and
insurance income, partially offset by higher market sensitive revenue4.
First quarter results include the impact of the adoption of new
accounting standards for Recognition and Measurement of Financial Assets
and Financial Liabilities (Financial Instruments) and Revenue from
Contracts With Customers (Revenue Recognition). See pages 17 and 18 in
this Report for more information.
-
Deposit service charges of $1.2 billion were down $73 million in the
first quarter primarily driven by the impact of customer-friendly
changes including the first full quarter impact of Overdraft RewindSM.
-
Card fees were $908 million, down from $996 million in fourth quarter
2017, and included the impact of the new accounting standard for
Revenue Recognition, which lowered card fees and reduced noninterest
expense by an equal amount due to the netting of card payment network
charges against related interchange and network revenues in card fees.
Additionally, interchange revenue was seasonally lower in the first
quarter.
-
Other fees were $800 million, compared with $913 million in fourth
quarter 2017, as first quarter results included lower commercial real
estate brokerage commissions.
-
Mortgage banking income was $934 million, up slightly from
$928 million in fourth quarter 2017. As expected, residential mortgage
loan originations declined in the first quarter, down to $43 billion,
from $53 billion in the fourth quarter. The production margin on
residential held-for-sale mortgage loan originations5 was
0.94 percent, compared with 1.25 percent in the fourth quarter, due to
increased price competition and a higher percentage of correspondent
volume, which has lower production margins than retail originations.
Net mortgage servicing income was $468 million in the first quarter,
up from $262 million in the fourth quarter, driven by higher net
mortgage servicing rights (MSR) valuation gains, lower unreimbursed
servicing costs and lower loan payoffs.
-
Insurance income was $114 million, down $109 million from fourth
quarter 2017, due to the sale of Wells Fargo Insurance Services USA,
which closed in November 2017.
-
Market sensitive revenue was $1.0 billion, compared with $728 million
in fourth quarter 2017. Net gains from equity securities included $250
million of gains from the impact of the new accounting standard for
Financial Instruments which requires any gain or loss associated with
the fair value measurement of equity securities to be reflected in
earnings. In addition, net gains from trading activities were higher
in first quarter 2018 due to increased trading results in Wells Fargo
Securities. These increases were partially offset by lower net gains
from debt securities.
-
Other income was $438 million, compared with $405 million in the
fourth quarter. First quarter results included a $643 million gain
from sales of $1.6 billion of purchased credit-impaired Pick-a-Pay
loans and a $202 million gain from the sale of Wells Fargo Shareowner
Services, which closed in February 2018. These gains were partially
offset by a lower of cost or market (LOCOM) adjustment related to the
previously announced sale of certain automobile loans of Reliable
Financial Services Inc., as well as other mark-to-market adjustments.
Fourth quarter 2017 included an $848 million gain on the sale of Wells
Fargo Insurance Services USA, partially offset by $414 million of
impairments on low income housing and renewable energy investments due
to the Tax Cuts & Jobs Act (Tax Act).
Noninterest Expense
Noninterest expense in the first quarter was $14.2 billion, compared
with $16.8 billion in the prior quarter. First quarter expenses included
operating losses of $668 million, down from $3.5 billion in fourth
quarter 2017, which were elevated due to litigation accruals for a
variety of matters, including mortgage-related regulatory
investigations, sales practices, and other consumer-related matters.
First quarter expenses also included $781 million of seasonally higher
employee benefits and incentive compensation expense. Other expense was
higher primarily due to a reduction in other expense in fourth quarter
2017 as a result of a $117 million gain on the sale of a corporate
property. Outside professional services and advertising and promotion
expense, which typically decline in the first quarter, were lower
compared with fourth quarter 2017. The efficiency ratio was 64.9 percent
in first quarter 2018, down from 76.2 percent in the fourth quarter,
driven primarily by lower operating losses.
Loans
Total average loans were $951.0 billion in the first quarter, down $798
million from the fourth quarter. Period-end loan balances were $947.3
billion at March 31, 2018, down $9.5 billion from December 31, 2017.
Commercial loans were flat compared with December 31, 2017 with growth
in commercial and industrial loans, largely offset by declines in
commercial real estate loans. Consumer loans decreased $9.5 billion from
the prior quarter, driven by:
-
a $3.8 billion decline in automobile loans due to the reclassification
of $1.6 billion to loans held for sale as a result of the previously
announced sale of certain assets of Reliable Financial Services Inc.,
as well as expected continued runoff
-
a $1.9 billion decline in credit card balances primarily due to
seasonality
-
a $1.8 billion decline in the junior lien mortgage portfolio as
payoffs continued to exceed new originations
-
a $1.4 billion decline in 1-4 family first mortgage loans, driven by
$1.6 billion of sales of purchased credit-impaired Pick-a-Pay loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-End Loan Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Commercial
|
|
|
$
|
503,396
|
|
|
|
503,388
|
|
|
|
500,150
|
|
|
|
505,901
|
|
|
|
505,004
|
|
|
Consumer
|
|
|
443,912
|
|
|
|
453,382
|
|
|
|
451,723
|
|
|
|
451,522
|
|
|
|
453,401
|
|
|
Total loans
|
|
|
$
|
947,308
|
|
|
|
956,770
|
|
|
|
951,873
|
|
|
|
957,423
|
|
|
|
958,405
|
|
|
Change from prior quarter
|
|
|
$
|
(9,462
|
)
|
|
|
4,897
|
|
|
|
(5,550
|
)
|
|
|
(982
|
)
|
|
|
(9,199
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt and Equity Securities
As a result of the adoption of the new accounting standard for Financial
Instruments, the balance sheet now includes more detailed disclosure of
debt and equity securities.
Debt securities include debt securities available for sale and held to
maturity, as well as debt securities held for trading. Debt securities
were $473.0 billion at March 31, 2018, down $398 million from the fourth
quarter, as approximately $13.1 billion of purchases, primarily federal
agency mortgage-backed securities (MBS) in the available-for-sale
portfolio, were more than offset by run-off and sales.
Net unrealized losses on available-for-sale debt securities were $(1.9)
billion at March 31, 2018, compared with net unrealized gains of
$1.5 billion at December 31, 2017, primarily due to higher interest
rates and wider MBS spreads during the quarter.
Equity securities include marketable and non-marketable equity
securities, as well as equity securities held for trading. Equity
securities were $58.9 billion at March 31, 2018, down $3.6 billion from
the fourth quarter, predominantly due to a decline in equity securities
held for trading.
Deposits
Total average deposits for first quarter 2018 were $1.3 trillion, down
$14.4 billion from the prior quarter. The decline was driven by a
decrease in commercial deposits primarily from financial institutions,
including a modest impact from actions the Company took to comply with
the asset cap included in the consent order issued by the Board of
Governors of the Federal Reserve System on February 2, 2018. Average
consumer and small business banking deposits of $755.5 billion for first
quarter 2018 were down $2.1 billion from the prior quarter, as growth in
Community Banking deposits was more than offset by lower Wealth and
Investment Management deposits. The average deposit cost for first
quarter 2018 was 34 basis points, up 6 basis points from the prior
quarter and 17 basis points from a year ago, primarily driven by an
increase in commercial and Wealth and Investment Management deposit
rates.
Capital
Capital in the first quarter continued to exceed our internal target,
with a Common Equity Tier 1 ratio (fully phased-in) of 12.0 percent3,
flat compared with the prior quarter. In first quarter 2018, the Company
repurchased 50.6 million shares of its common stock, which reduced
period-end common shares outstanding by 17.7 million.
Credit Quality
Net Loan Charge-offs
The quarterly loss rate was 0.32 percent (annualized), compared with
0.31 percent in the prior quarter and 0.34 percent a year ago.
Commercial and consumer losses were 0.06 percent and 0.60 percent,
respectively. Total credit losses were $741 million in first quarter
2018, down $10 million from fourth quarter 2017. Commercial losses were
down $37 million driven by lower oil and gas portfolio losses. Consumer
losses increased $27 million driven by higher automobile loan losses.
|
|
|
Net Loan Charge-Offs
|
|
|
|
|
Quarter ended
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
|
March 31, 2017
|
|
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
($ in millions)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
85
|
|
|
|
0.10
|
%
|
|
|
$
|
118
|
|
|
|
0.14
|
%
|
|
|
$
|
171
|
|
|
|
0.21
|
%
|
|
Real estate mortgage
|
|
|
(15
|
)
|
|
|
(0.05
|
)
|
|
|
(10
|
)
|
|
|
(0.03
|
)
|
|
|
(25
|
)
|
|
|
(0.08
|
)
|
|
Real estate construction
|
|
|
(4
|
)
|
|
|
(0.07
|
)
|
|
|
(3
|
)
|
|
|
(0.05
|
)
|
|
|
(8
|
)
|
|
|
(0.15
|
)
|
|
Lease financing
|
|
|
12
|
|
|
|
0.25
|
|
|
|
10
|
|
|
|
0.20
|
|
|
|
5
|
|
|
|
0.11
|
|
|
Total commercial
|
|
|
78
|
|
|
|
0.06
|
|
|
|
115
|
|
|
|
0.09
|
|
|
|
143
|
|
|
|
0.11
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(18
|
)
|
|
|
(0.03
|
)
|
|
|
(23
|
)
|
|
|
(0.03
|
)
|
|
|
7
|
|
|
|
0.01
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(8
|
)
|
|
|
(0.09
|
)
|
|
|
(7
|
)
|
|
|
(0.06
|
)
|
|
|
23
|
|
|
|
0.21
|
|
|
Credit card
|
|
|
332
|
|
|
|
3.69
|
|
|
|
336
|
|
|
|
3.66
|
|
|
|
309
|
|
|
|
3.54
|
|
|
Automobile
|
|
|
208
|
|
|
|
1.64
|
|
|
|
188
|
|
|
|
1.38
|
|
|
|
167
|
|
|
|
1.10
|
|
|
Other revolving credit and installment
|
|
|
149
|
|
|
|
1.60
|
|
|
|
142
|
|
|
|
1.46
|
|
|
|
156
|
|
|
|
1.60
|
|
|
Total consumer
|
|
|
663
|
|
|
|
0.60
|
|
|
|
636
|
|
|
|
0.56
|
|
|
|
662
|
|
|
|
0.59
|
|
|
Total
|
|
|
$
|
741
|
|
|
|
0.32
|
%
|
|
|
$
|
751
|
|
|
|
0.31
|
%
|
|
|
$
|
805
|
|
|
|
0.34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs (recoveries) as a percentage of
average loans are annualized. See explanation on page 34 of the
accounting for purchased credit-impaired (PCI) loans and the
impact on selected financial ratios.
|
|
|
Nonperforming Assets
Nonperforming assets decreased $388 million, or 4 percent, from fourth
quarter 2017 to $8.3 billion. Nonaccrual loans decreased $317 million
from fourth quarter 2017 to $7.7 billion primarily driven by lower
commercial and industrial nonaccruals reflecting continued improvement
in the oil and gas portfolio, as well as continued declines in consumer
real estate nonaccruals.
|
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
March 31, 2018
|
|
|
December 31, 2017
|
|
|
March 31, 2017
|
|
|
|
|
|
|
|
As a %
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
of
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
1,516
|
|
|
|
0.45
|
%
|
|
|
$
|
1,899
|
|
|
|
0.57
|
%
|
|
|
$
|
2,898
|
|
|
|
0.88
|
%
|
|
Real estate mortgage
|
|
|
755
|
|
|
|
0.60
|
|
|
|
628
|
|
|
|
0.50
|
|
|
|
672
|
|
|
|
0.51
|
|
|
Real estate construction
|
|
|
45
|
|
|
|
0.19
|
|
|
|
37
|
|
|
|
0.15
|
|
|
|
40
|
|
|
|
0.16
|
|
|
Lease financing
|
|
|
93
|
|
|
|
0.48
|
|
|
|
76
|
|
|
|
0.39
|
|
|
|
96
|
|
|
|
0.50
|
|
|
Total commercial
|
|
|
2,409
|
|
|
|
0.48
|
|
|
|
2,640
|
|
|
|
0.52
|
|
|
|
3,706
|
|
|
|
0.73
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
4,053
|
|
|
|
1.43
|
|
|
|
4,122
|
|
|
|
1.45
|
|
|
|
4,743
|
|
|
|
1.73
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,087
|
|
|
|
2.87
|
|
|
|
1,086
|
|
|
|
2.73
|
|
|
|
1,153
|
|
|
|
2.60
|
|
|
Automobile
|
|
|
117
|
|
|
|
0.24
|
|
|
|
130
|
|
|
|
0.24
|
|
|
|
101
|
|
|
|
0.17
|
|
|
Other revolving credit and installment
|
|
|
53
|
|
|
|
0.14
|
|
|
|
58
|
|
|
|
0.15
|
|
|
|
56
|
|
|
|
0.14
|
|
|
Total consumer
|
|
|
5,310
|
|
|
|
1.20
|
|
|
|
5,396
|
|
|
|
1.19
|
|
|
|
6,053
|
|
|
|
1.34
|
|
|
Total nonaccrual loans
|
|
|
7,719
|
|
|
|
0.81
|
|
|
|
8,036
|
|
|
|
0.84
|
|
|
|
9,759
|
|
|
|
1.02
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
103
|
|
|
|
|
|
|
120
|
|
|
|
|
|
|
179
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
468
|
|
|
|
|
|
|
522
|
|
|
|
|
|
|
726
|
|
|
|
|
|
Total foreclosed assets
|
|
|
571
|
|
|
|
|
|
|
642
|
|
|
|
|
|
|
905
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
8,290
|
|
|
|
0.88
|
%
|
|
|
$
|
8,678
|
|
|
|
0.91
|
%
|
|
|
$
|
10,664
|
|
|
|
1.11
|
%
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(317
|
)
|
|
|
|
|
|
$
|
(583
|
)
|
|
|
|
|
|
$
|
(625
|
)
|
|
|
|
|
Total nonperforming assets
|
|
|
(388
|
)
|
|
|
|
|
|
(647
|
)
|
|
|
|
|
|
(698
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $11.3 billion at March 31, 2018, down $647 million
from December 31, 2017. “Credit performance remained strong in the first
quarter,” said Chief Risk Officer Mike Loughlin. “We released $550
million from the allowance for credit losses. Approximately $400 million
of the release was driven by a reduction in allowance previously held
for hurricane-related losses. The remainder of the release was due to
continued improvement in residential real estate, both in first and
junior lien mortgage loan portfolios, and lower loan balances.” The
allowance coverage for total loans was 1.19 percent, compared with 1.25
percent in fourth quarter 2017. The allowance covered 3.8 times
annualized first quarter net charge-offs, compared with 4.0 times in the
prior quarter. The allowance coverage for nonaccrual loans was
147 percent at March 31, 2018, compared with 149 percent at December 31,
2017. The Company believes the allowance was appropriate for losses
inherent in the loan portfolio at March 31, 2018.
Business Segment Performance
Financial information for our operating segments reflect revisions to
our previously reported amounts to reflect a change, adopted in first
quarter 2018, in our methodology for assigning funding charges and
credits to our lines of business and for reclassifications made in
connection with the adoption of a new accounting standard for Financial
Instruments. See pages 17 and 18 in this Report for more information.
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Community Banking
|
|
|
$
|
2,713
|
|
|
|
3,472
|
|
|
|
2,824
|
|
Wholesale Banking
|
|
|
2,875
|
|
|
|
2,373
|
|
|
|
2,485
|
|
Wealth and Investment Management
|
|
|
714
|
|
|
|
675
|
|
|
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Total revenue
|
|
|
$
|
11,830
|
|
|
|
11,720
|
|
|
|
11,823
|
|
Provision for credit losses
|
|
|
218
|
|
|
|
636
|
|
|
|
646
|
|
Noninterest expense
|
|
|
7,902
|
|
|
|
10,216
|
|
|
|
7,281
|
|
Segment net income
|
|
|
2,713
|
|
|
|
3,472
|
|
|
|
2,824
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
470.5
|
|
|
|
473.2
|
|
|
|
480.7
|
|
Average assets
|
|
|
1,061.9
|
|
|
|
1,073.2
|
|
|
|
1,095.8
|
|
Average deposits
|
|
|
747.5
|
|
|
|
738.3
|
|
|
|
717.8
|
|
|
Community Banking reported net income of $2.7 billion, down
$759 million, or 22 percent, from fourth quarter 2017. The decline in
net income from fourth quarter 2017 was primarily driven by the
inclusion in the fourth quarter of the benefit of the estimated impact
of the Tax Act to the Company. Revenue in the first quarter was
$11.8 billion, up $110 million, or 1 percent, from fourth quarter 2017,
and included a gain on sales of Pick-a-Pay loans and higher market
sensitive revenue, partially offset by lower net interest income, card
fees, and service charges on deposit accounts. Noninterest expense
decreased $2.3 billion, or 23 percent, compared with fourth quarter
2017, driven primarily by a decline in litigation accruals, partially
offset by seasonally higher personnel expense. The provision for credit
losses decreased $418 million from the prior quarter.
Net income was down $111 million, or 4 percent, from first quarter 2017
due to higher expenses, partially offset by a lower provision for credit
losses and the lower income tax rate. Revenue was flat compared with a
year ago due to higher net interest income, a gain on sales of
Pick-a-Pay loans, higher market sensitive revenue, and higher trust and
investment fees, offset by lower mortgage banking revenue and service
charges on deposit accounts. Noninterest expense increased $621 million,
or 9 percent, from a year ago primarily driven by higher operating
losses and personnel expense. The provision for credit losses decreased
$428 million from a year ago.
Retail Banking and Consumer Payments, Virtual Solutions and
Innovation
-
Nearly 387,000 branch customer experience surveys completed during
first quarter 2018, with ‘Loyalty’ scores reaching their highest
levels since August 2016, while ‘Overall Satisfaction with Most Recent
Visit’ scores continued to improve from the prior quarter
-
5,805 retail bank branches as of the end of first quarter 2018,
reflecting 58 branch consolidations in the quarter
-
Primary consumer checking customers6,7 up 0.9 percent
year-over-year
-
Debit card point-of-sale purchase volume8 of $81.8 billion
in first quarter, up 8 percent year-over-year
-
Credit card point-of-sale purchase volume of $17.4 billion in first
quarter, up 8 percent year-over-year
-
28.8 million digital (online and mobile) active customers, including
21.8 million mobile active users7,9
-
Dynatrace's Mobile Banking Scorecard named Wells Fargo's mobile app #1
in Overall Performance, Functionality, and Quality and Availability
(March 2018)
-
In March, Barlow Research awarded Wells Fargo Gateway "Overall Most
Innovative" in its 2018 Monarch Innovation Awards
Consumer Lending
-
Home Lending
-
Originations of $43 billion, down from $53 billion in prior
quarter, primarily due to seasonality
-
Applications of $58 billion, down from $63 billion in prior
quarter, primarily due to seasonality
-
Application pipeline of $24 billion at quarter end, up from $23
billion at December 31, 2017
-
Automobile originations of $4.4 billion in first quarter, up 2 percent
compared with prior quarter; and down 20 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, Middle Market Banking, Principal Investments, Treasury
Management, Wells Fargo Commercial Capital, and Wells Fargo Securities.
|
Selected Financial Information
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Total revenue
|
|
|
$
|
7,279
|
|
|
|
7,440
|
|
|
7,577
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
(20
|
)
|
|
|
20
|
|
|
(43
|
)
|
|
Noninterest expense
|
|
|
3,978
|
|
|
|
4,187
|
|
|
4,167
|
|
|
Segment net income
|
|
|
2,875
|
|
|
|
2,373
|
|
|
2,485
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
465.1
|
|
|
|
463.5
|
|
|
468.3
|
|
|
Average assets
|
|
|
829.2
|
|
|
|
837.2
|
|
|
810.5
|
|
|
Average deposits
|
|
|
446.0
|
|
|
|
465.7
|
|
|
465.3
|
|
Wholesale Banking reported net income of $2.9 billion, up $502 million,
or 21 percent, from fourth quarter 2017. First quarter results benefited
from the reduced income tax rate. Revenue of $7.3 billion decreased
$161 million, or 2 percent, compared with the prior quarter, due to
lower net interest income, lower commercial real estate brokerage fees,
lower insurance income related to the sale of Wells Fargo Insurance
Services USA (WFIS), and the gain on the sale of WFIS recognized in
fourth quarter 2017, partially offset by the gain on the sale of Wells
Fargo Shareowner Services recognized in the first quarter and higher
market sensitive revenue. Fourth quarter 2017 also included impairments
on low income housing and tax-advantaged renewable energy investments
due to the Tax Act. Noninterest expense decreased $209 million, or 5
percent, from the prior quarter reflecting two less months of WFIS
operating expenses and lower operating losses, partially offset by
seasonally higher personnel expenses. The provision for credit losses
decreased $40 million from the prior quarter.
Net income increased $390 million, or 16 percent, from first quarter
2017 and benefited from the lower income tax rate. Revenue decreased
$298 million, or 4 percent, from first quarter 2017, on lower net
interest income, the impact of the sale of WFIS in fourth quarter 2017,
lower mortgage banking fees, and lower operating lease income, partially
offset by the gain related to the sale of Wells Fargo Shareowner
Services. Noninterest expense decreased $189 million, or 5 percent, from
a year ago reflecting the sale of WFIS, partially offset by higher
regulatory, risk, cyber and technology expenses. The provision for
credit losses increased $23 million from a year ago.
Wealth and Investment Management
(WIM)
provides a full range of personalized wealth management, investment
and retirement products and services to clients across U.S. based
businesses including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo
Asset Management. We deliver financial planning, private banking,
credit, investment management and fiduciary services to high-net worth
and ultra-high-net worth individuals and families. We also serve
customers’ brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities
delivered to global institutional clients through separate accounts and
the Wells Fargo Funds.
|
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
Total revenue
|
|
|
$
|
4,242
|
|
|
|
4,333
|
|
|
|
4,257
|
|
|
Reversal of provision for credit losses
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
(4
|
)
|
|
Noninterest expense
|
|
|
3,290
|
|
|
|
3,246
|
|
|
|
3,204
|
|
|
Segment net income
|
|
|
714
|
|
|
|
675
|
|
|
|
665
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
73.9
|
|
|
|
72.9
|
|
|
|
70.7
|
|
|
Average assets
|
|
|
84.2
|
|
|
|
83.7
|
|
|
|
81.8
|
|
|
Average deposits
|
|
|
177.9
|
|
|
|
184.1
|
|
|
|
197.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $714 million, up
$39 million, or 6 percent, from fourth quarter 2017. First quarter
results benefited from the reduced income tax rate. Revenue of
$4.2 billion decreased $91 million, or 2 percent, from the prior
quarter, primarily due to lower gains on deferred compensation plan
investments (offset in employee benefits expense), lower net interest
income, and lower transaction revenue, partially offset by higher
asset-based fees. Noninterest expense increased $44 million, or 1
percent, from the prior quarter, primarily driven by seasonally higher
personnel expenses, partially offset by lower non-personnel expense and
lower deferred compensation plan expense (offset in gains on equity
securities).
Net income was up $49 million, or 7 percent, from first quarter 2017 and
benefited from the lower income tax rate. Revenue decreased $15 million
from a year ago primarily driven by lower gains on deferred compensation
plan investments (offset in employee benefits expense), lower
transaction revenue, lower net interest income, and lower other revenue,
partially offset by higher asset-based fees. Noninterest expense
increased $86 million, or 3 percent, from a year ago, primarily due to
higher broker commissions, higher regulatory, risk, cyber and technology
expenses, and higher other personnel expense, partially offset by lower
deferred compensation plan expense (offset in gains on equity
securities).
-
WIM total client assets of $1.9 trillion, up 4 percent from a year
ago, driven by higher market valuations
-
Continued loan growth, with average balances up 5 percent from a year
ago largely due to growth in non-conforming mortgage loans
-
First quarter 2018 average closed referred investment assets
(referrals resulting from the WIM/Community Banking partnership) were
up 5 percent compared with the prior quarter and up 6 percent from a
year ago
Retail Brokerage
-
Client assets of $1.6 trillion, up 4 percent from prior year
-
Advisory assets of $540 billion, up 10 percent from prior year,
primarily driven by higher market valuations and positive net flows
Wealth Management
-
Client assets of $242 billion, up 2 percent from prior year
Asset Management
-
Total assets under management of $497 billion, up 3 percent from prior
year, driven by higher market valuations, positive money market and
fixed income net flows, partially offset by equity net outflows
Retirement
-
IRA assets of $403 billion, up 5 percent from prior year
-
Institutional Retirement plan assets of $386 billion, up 7 percent
from prior year
Conference Call
The Company will host a live conference call on Friday, April 13, at
7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing
866-872-5161 (U.S. and Canada) or 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~1293006.
A replay of the conference call will be available beginning at 10:00
a.m. PT (1:00 p.m. ET) on Friday, April 13 through Friday, April 27.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #1293006. 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~1293006.
End Notes
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 securities 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
36.
2 Reserve build represents the amount by which the provision
for credit losses exceeds net charge-offs, while reserve release
represents the amount by which net charge-offs exceed the provision for
credit losses.
3 See table on page 37 for more information on Common Equity
Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate
and is calculated assuming the full phase-in of the Basel III capital
rules.
4 Market sensitive revenue represents net gains from trading
activities, debt securities, and equity securities.
5 Production margin represents net gains on residential
mortgage loan origination/sales activities divided by total residential
held-for-sale mortgage originations. See the Selected Five Quarter
Residential Mortgage Production Data table on page 42 for more
information.
6 Customers who actively use their checking account with
transactions such as debit card purchases, online bill payments, and
direct deposit.
7 Data as of February 2018, comparisons with February 2017.
8 Combined consumer and business debit card purchase volume
dollars.
9 Primarily includes retail banking, consumer lending, small
business and business banking customers.
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,”
“could,” “should,” “can” and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance levels; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital 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 (including the impact of the Tax
Cuts & Jobs Act), 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;
-
resolution of regulatory matters, including the claims pending against
us from the Consumer Financial Protection Bureau and Office of the
Comptroller of the Currency regarding our compliance risk management
program and our past practices involving certain automobile collateral
protection insurance policies and certain mortgage interest rate lock
extensions;
-
our ability to realize our efficiency ratio target as part of our
expense management initiatives, including as a result of business and
economic cyclicality, seasonality, changes in our business composition
and operating environment, growth in our businesses and/or
acquisitions, and unexpected expenses relating to, among other things,
litigation and regulatory matters;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
significant turbulence or a disruption in the capital or financial
markets, which could result in, among other things, reduced investor
demand for mortgage loans, a reduction in the availability of funding
or increased funding costs, and declines in asset values and/or
recognition of other-than-temporary impairment on securities held in
our debt securities and equity securities portfolios;
-
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 and
from other instances where customers may have experienced financial
harm, 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, 2017.
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, 2017, 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, investments, mortgage, and consumer and
commercial finance through 8,200 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 265,000 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.
|
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Wells Fargo & Company and Subsidiaries
|
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QUARTERLY FINANCIAL DATA
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TABLE OF CONTENTS
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Pages
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Summary Information
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Significant Accounting and Presentation Changes
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17
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Summary Financial Data
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19
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Income
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Consolidated Statement of Income
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21
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Consolidated Statement of Comprehensive Income
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23
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Condensed Consolidated Statement of Changes in Total Equity
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23
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Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
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24
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Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
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25
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Noninterest Income and Noninterest Expense
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26
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Balance Sheet
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Consolidated Balance Sheet
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28
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Trading Activities
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30
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Debt Securities
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30
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Equity Securities
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31
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Loans
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Loans
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32
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Nonperforming Assets
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33
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Loans 90 Days or More Past Due and Still Accruing
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33
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Purchased Credit-Impaired Loans
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34
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Changes in Allowance for Credit Losses
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35
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Equity
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Tangible Common Equity
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36
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Common Equity Tier 1 Under Basel III
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37
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Operating Segments
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Operating Segment Results
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38
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Other
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Mortgage Servicing and other related data
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40
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SIGNIFICANT ACCOUNTING AND PRESENTATION CHANGES
Following is a discussion of key accounting and presentation changes in
first quarter 2018 that resulted from adoption of new accounting
standards and a change in our methodology for measuring operating
segment results. Prior periods have been revised as appropriate for
these changes to maintain comparability.
Accounting Standards Adopted in 2018
In first quarter 2018, we adopted the following new accounting guidance:
-
Accounting Standards Update (ASU or Update) 2016-18 - Statement
of Cash Flows (Topic 230): Restricted Cash
-
ASU 2016-04 - Liabilities - Extinguishments of Liabilities (Subtopic
405-20): Recognition of Breakage for Certain Prepaid Stored-Value
Products;
-
ASU 2016-01 - Financial Instruments - Overall (Subtopic
825-10): Recognition and Measurement of Financial Assets and
Financial Liabilities; and
-
ASU 2014-09 - Revenue from Contracts With Customers (Topic 606) and
subsequent related Updates.
In connection with the adoption of ASU 2016-18 we have changed
the presentation of our cash and cash equivalents to include both cash
and due from banks as well as interest-earning deposits with banks,
which are inclusive of any restricted cash.
ASU 2016-04 modifies the accounting for certain prepaid card
products to require the recognition of breakage. Breakage represents the
estimated amount that will not be redeemed by the cardholder for goods
or services. Upon adoption, we recorded a cumulative-effect adjustment
that increased retained earnings, given estimated breakage, by $26
million.
ASU 2016-01 changes the accounting for certain equity investments
to record at fair value with unrealized gains or losses reflected in
earnings, as well as improve the disclosures of equity investments and
the fair value of financial instruments.
We adopted the Update in first quarter 2018 and recorded a
cumulative-effect adjustment as of January 1, 2018, that increased
retained earnings by $106 million as a result of a transition adjustment
to reclassify $118 million in net unrealized gains from other
comprehensive income to retained earnings, partially offset by a
transition adjustment to decrease retained earnings by $12 million to
adjust the carrying value of our auction rate securities from cost to
fair value. No transition adjustment was recorded for investments
changed to the measurement alternative (described below), which was
applied prospectively.
As a result of adopting this ASU, our investments in marketable equity
securities, including those previously classified as available-for-sale,
are now accounted for at fair value with unrealized gains or losses
reflected in earnings. Additionally, our share of unrealized gains or
losses of marketable equity securities held by investees in our
nonmarketable equity securities accounted for using the equity method
are now reflected in earnings. Prior to adoption, such unrealized gains
and losses were reflected in other comprehensive income. Our investments
in nonmarketable equity securities previously accounted for under the
cost method of accounting, except for federal bank stock, are now
accounted for either at fair value with unrealized gains and losses
reflected in earnings or using the measurement alternative. The
measurement alternative is similar to the cost method of accounting,
except the carrying value is adjusted through earnings for impairment,
if any, and changes in observable and orderly transactions in the same
or similar investment. We now account for substantially all of our
private equity investments using the measurement alternative, except for
those accounted for using the equity method of accounting. Our auction
rate securities portfolio is now accounted for at fair value with
unrealized gains or losses reflected in earnings.
In connection with our adoption of this Update, we have modified our
balance sheet and income statement presentation to report marketable and
nonmarketable equity securities and their results separately from debt
securities by now reporting all equity securities in a new line labeled
“Equity securities” in both the balance sheet and income statement.
Additionally we now report loans held for trading purposes in loans held
for sale and have reclassified net gains and losses on marketable equity
securities used as economic hedges of deferred compensation obligations
from “Net gains for trading activities” to “Net gains from equity
securities”. All prior periods have been revised to conform to these
changes in reporting.
The following table provides a summary of our reporting changes
implemented in connection with our adoption of ASU 2016-01.
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Financial instrument or
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transaction type
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As previously reported
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Revised reporting
|
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Balance Sheet
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Marketable equity securities
|
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Trading assets and available for sale investment securities
|
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Equity securities (new caption)
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Nonmarketable equity securities
|
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Other assets
|
|
|
Equity securities (new caption)
|
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Loans held for trading
|
|
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Trading assets
|
|
|
Loans held for sale
|
|
Debt securities held for trading
|
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Trading assets
|
|
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Debt securities (formerly “Investment securities”)
|
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|
|
|
|
|
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Income Statement
|
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Interest income:
|
|
|
|
|
|
|
|
Marketable equity securities
|
|
|
Trading assets and investment securities
|
|
|
Equity securities (new caption)
|
|
Nonmarketable equity securities
|
|
|
Other
|
|
|
Equity securities (new caption)
|
|
Loans held for trading
|
|
|
Trading assets
|
|
|
Loans held for sale
|
|
Debt securities held for trading
|
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Trading assets
|
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Debt securities (formerly “Investment securities”)
|
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Noninterest income:
|
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Deferred compensation gains (1)
|
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Net gains from trading activities
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Net gains from equity securities
|
|
(1) Reclassification of net gains and losses on marketable equity
securities economically hedging our deferred compensation
obligations.
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The following table illustrates the changes to the balance sheet as of
December 31, 2017, and related consolidated statement of income for the
year ended December 31, 2017, in connection with our adoption of ASU
2016-01.
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Reclassification adjustments
|
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|
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|
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Marketable
|
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|
|
|
|
|
|
|
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As previously
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Debt
|
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equity
|
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Nonmarketable
|
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Loans held for
|
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Revised
|
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Change in
|
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(in millions)
|
|
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reported
|
|
|
securities
|
|
|
securities
|
|
|
equity securities
|
|
|
trading
|
|
|
reporting
|
|
|
balance
|
|
Balance sheet as of December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Trading assets
|
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$
|
92,329
|
|
|
|
(57,624
|
)
|
|
|
(33,682
|
)
|
|
|
—
|
|
|
|
(1,023
|
)
|
|
|
—
|
|
|
|
(92,329
|
)
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
|
|
|
—
|
|
|
|
57,624
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
57,624
|
|
|
|
57,624
|
|
|
Available for sale
|
|
|
277,085
|
|
|
|
—
|
|
|
|
(678
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
276,407
|
|
|
|
(678
|
)
|
|
Loans held for sale
|
|
|
108
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,023
|
|
|
|
1,131
|
|
|
|
1,023
|
|
|
Equity securities
|
|
|
—
|
|
|
|
—
|
|
|
|
34,360
|
|
|
|
28,137
|
|
|
|
—
|
|
|
|
62,497
|
|
|
|
62,497
|
|
|
Other assets
|
|
|
118,381
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(28,137
|
)
|
|
|
—
|
|
|
|
90,244
|
|
|
|
(28,137
|
)
|
|
Total impact to assets
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Income statement for the year ended December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
2,928
|
|
|
|
(2,313
|
)
|
|
|
(577
|
)
|
|
|
—
|
|
|
|
(38
|
)
|
|
|
—
|
|
|
|
(2,928
|
)
|
|
Debt securities
|
|
|
10,664
|
|
|
|
2,313
|
|
|
|
(31
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
12,946
|
|
|
|
2,282
|
|
|
Loans held for sale
|
|
|
12
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38
|
|
|
|
50
|
|
|
|
38
|
|
|
Equity securities
|
|
|
—
|
|
|
|
—
|
|
|
|
608
|
|
|
|
191
|
|
|
|
—
|
|
|
|
799
|
|
|
|
799
|
|
|
Other
|
|
|
3,131
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(191
|
)
|
|
|
—
|
|
|
|
2,940
|
|
|
|
(191
|
)
|
|
Total impact to interest income
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains from trading activities
|
|
|
1,053
|
|
|
|
—
|
|
|
|
(511
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
542
|
|
|
|
(511
|
)
|
|
Net gains from equity securities
|
|
|
1,268
|
|
|
|
—
|
|
|
|
511
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,779
|
|
|
|
511
|
|
|
Total impact to noninterest income
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
|
|
ASU 2014-09 modifies the guidance used to recognize revenue from
contracts with customers for transfers of goods or services and
transfers of non-financial assets, unless those contracts are within the
scope of other guidance. Upon adoption, we recorded a cumulative-effect
adjustment that decreased retained earnings by $44 million, due to
changes in the timing of revenue for corporate trust services that are
provided over the life of the associated trust. In addition, we changed
the presentation of some costs such that underwriting expenses of our
broker-dealer business that were previously netted against revenue are
now included in noninterest expense, and card payment network charges
that were previously included in noninterest expense are now netted
against card fee revenue.
Operating Segment Financial Information Changes
Financial information for our operating segments presented in this
Report reflect revisions to our previously reported amounts to reflect a
change, adopted in first quarter 2018, in our methodology for assigning
funding charges and credits to our lines of business and for the
reclassifications made in connection with the adoption of ASU 2016-01.
Effective first quarter 2018, assets and liabilities will receive a
funding charge or credit that considers interest rate risk, liquidity
risk, and other product characteristics on a more granular level. This
methodology change affects results across all three of our reportable
operating segments. Our previously reported consolidated financial
results were not impacted by the methodology change; however, in
connection with the adoption of ASU 2016-01, certain reclassifications
will occur within noninterest income.
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
Quarter ended
|
|
|
Mar 31, 2018 from
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Mar 31,
|
|
($ in millions, except per share amounts)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
6,151
|
|
|
|
5,634
|
|
|
|
(3
|
)%
|
|
|
5
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
5,533
|
|
|
|
5,740
|
|
|
|
5,233
|
|
|
|
(4
|
)
|
|
|
6
|
|
|
Diluted earnings per common share
|
|
|
1.12
|
|
|
|
1.16
|
|
|
|
1.03
|
|
|
|
(3
|
)
|
|
|
9
|
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.26
|
%
|
|
|
1.26
|
|
|
|
1.18
|
|
|
|
—
|
|
|
|
7
|
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
12.37
|
|
|
|
12.47
|
|
|
|
11.96
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
14.75
|
|
|
|
14.85
|
|
|
|
14.35
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
Efficiency ratio (2)
|
|
|
64.9
|
|
|
|
76.2
|
|
|
|
62.0
|
|
|
|
(15
|
)
|
|
|
5
|
|
|
Total revenue
|
|
|
$
|
21,934
|
|
|
|
22,050
|
|
|
|
22,255
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
7,692
|
|
|
|
5,250
|
|
|
|
8,463
|
|
|
|
47
|
|
|
|
(9
|
)
|
|
Dividends declared per common share
|
|
|
0.39
|
|
|
|
0.39
|
|
|
|
0.38
|
|
|
|
—
|
|
|
|
3
|
|
|
Average common shares outstanding
|
|
|
4,885.7
|
|
|
|
4,912.5
|
|
|
|
5,008.6
|
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
4,930.7
|
|
|
|
4,963.1
|
|
|
|
5,070.4
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
Average loans
|
|
|
$
|
951,024
|
|
|
|
951,822
|
|
|
|
963,645
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
Average assets
|
|
|
1,915,896
|
|
|
|
1,935,318
|
|
|
|
1,931,040
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Average total deposits
|
|
|
1,297,178
|
|
|
|
1,311,592
|
|
|
|
1,299,191
|
|
|
|
(1
|
)
|
|
|
—
|
|
|
Average consumer and small business banking deposits (4)
|
|
|
755,483
|
|
|
|
757,541
|
|
|
|
758,754
|
|
|
|
—
|
|
|
|
—
|
|
|
Net interest margin
|
|
|
2.84
|
%
|
|
|
2.84
|
|
|
|
2.87
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities (5)
|
|
|
$
|
472,968
|
|
|
|
473,366
|
|
|
|
456,969
|
|
|
|
—
|
|
|
|
4
|
|
|
Loans
|
|
|
947,308
|
|
|
|
956,770
|
|
|
|
958,405
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Allowance for loan losses
|
|
|
10,373
|
|
|
|
11,004
|
|
|
|
11,168
|
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
Goodwill
|
|
|
26,445
|
|
|
|
26,587
|
|
|
|
26,666
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Equity securities (5)
|
|
|
58,935
|
|
|
|
62,497
|
|
|
|
56,991
|
|
|
|
(6
|
)
|
|
|
3
|
|
|
Assets
|
|
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
1,951,501
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Deposits
|
|
|
1,303,689
|
|
|
|
1,335,991
|
|
|
|
1,325,444
|
|
|
|
(2
|
)
|
|
|
(2
|
)
|
|
Common stockholders' equity
|
|
|
181,950
|
|
|
|
183,134
|
|
|
|
178,209
|
|
|
|
(1
|
)
|
|
|
2
|
|
|
Wells Fargo stockholders’ equity
|
|
|
205,752
|
|
|
|
206,936
|
|
|
|
201,321
|
|
|
|
(1
|
)
|
|
|
2
|
|
|
Total equity
|
|
|
206,710
|
|
|
|
208,079
|
|
|
|
202,310
|
|
|
|
(1
|
)
|
|
|
2
|
|
|
Tangible common equity (1)
|
|
|
152,678
|
|
|
|
153,730
|
|
|
|
148,671
|
|
|
|
(1
|
)
|
|
|
3
|
|
|
Common shares outstanding
|
|
|
4,873.9
|
|
|
|
4,891.6
|
|
|
|
4,996.7
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
Book value per common share (6)
|
|
|
$
|
37.33
|
|
|
|
37.44
|
|
|
|
35.67
|
|
|
|
—
|
|
|
|
5
|
|
|
Tangible book value per common share (1)(6)
|
|
|
31.33
|
|
|
|
31.43
|
|
|
|
29.75
|
|
|
|
—
|
|
|
|
5
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
66.31
|
|
|
|
62.24
|
|
|
|
59.99
|
|
|
|
7
|
|
|
|
11
|
|
|
Low
|
|
|
50.70
|
|
|
|
52.84
|
|
|
|
53.35
|
|
|
|
(4
|
)
|
|
|
(5
|
)
|
|
Period end
|
|
|
52.41
|
|
|
|
60.67
|
|
|
|
55.66
|
|
|
|
(14
|
)
|
|
|
(6
|
)
|
|
Team members (active, full-time equivalent)
|
|
|
265,700
|
|
|
|
262,700
|
|
|
|
272,800
|
|
|
|
1
|
|
|
|
(3
|
)
|
|
(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 securities 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 36.
|
|
(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) Financial information for prior quarters has been revised to
reflect the impact of the adoption of Accounting Standards Update
(ASU) 2016-01 – Financial Instruments – Overall (Subtopic 825-10):
Recognition and Measurement of Financial Assets and Financial
Liabilities. See pages 17 and 18 for more information.
|
|
(6) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
($ in millions, except per share amounts)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
6,151
|
|
|
|
4,542
|
|
|
|
5,856
|
|
|
|
5,634
|
|
Wells Fargo net income applicable to common stock
|
|
|
5,533
|
|
|
|
5,740
|
|
|
|
4,131
|
|
|
|
5,450
|
|
|
|
5,233
|
|
Diluted earnings per common share
|
|
|
1.12
|
|
|
|
1.16
|
|
|
|
0.83
|
|
|
|
1.08
|
|
|
|
1.03
|
|
Profitability ratios (annualized) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.26
|
%
|
|
|
1.26
|
|
|
|
0.93
|
|
|
|
1.22
|
|
|
|
1.18
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
12.37
|
|
|
|
12.47
|
|
|
|
8.96
|
|
|
|
12.06
|
|
|
|
11.96
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
14.75
|
|
|
|
14.85
|
|
|
|
10.66
|
|
|
|
14.41
|
|
|
|
14.35
|
|
Efficiency ratio (2)
|
|
|
64.9
|
|
|
|
76.2
|
|
|
|
65.7
|
|
|
|
60.9
|
|
|
|
62.0
|
|
Total revenue
|
|
|
$
|
21,934
|
|
|
|
22,050
|
|
|
|
21,849
|
|
|
|
22,235
|
|
|
|
22,255
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
7,692
|
|
|
|
5,250
|
|
|
|
7,498
|
|
|
|
8,694
|
|
|
|
8,463
|
|
Dividends declared per common share
|
|
|
0.39
|
|
|
|
0.39
|
|
|
|
0.39
|
|
|
|
0.38
|
|
|
|
0.38
|
|
Average common shares outstanding
|
|
|
4,885.7
|
|
|
|
4,912.5
|
|
|
|
4,948.6
|
|
|
|
4,989.9
|
|
|
|
5,008.6
|
|
Diluted average common shares outstanding
|
|
|
4,930.7
|
|
|
|
4,963.1
|
|
|
|
4,996.8
|
|
|
|
5,037.7
|
|
|
|
5,070.4
|
|
Average loans
|
|
|
$
|
951,024
|
|
|
|
951,822
|
|
|
|
952,343
|
|
|
|
956,879
|
|
|
|
963,645
|
|
Average assets
|
|
|
1,915,896
|
|
|
|
1,935,318
|
|
|
|
1,938,461
|
|
|
|
1,927,021
|
|
|
|
1,931,040
|
|
Average total deposits
|
|
|
1,297,178
|
|
|
|
1,311,592
|
|
|
|
1,306,356
|
|
|
|
1,301,195
|
|
|
|
1,299,191
|
|
Average consumer and small business banking deposits (4)
|
|
|
755,483
|
|
|
|
757,541
|
|
|
|
755,094
|
|
|
|
760,149
|
|
|
|
758,754
|
|
Net interest margin
|
|
|
2.84
|
%
|
|
|
2.84
|
|
|
|
2.86
|
|
|
|
2.90
|
|
|
|
2.87
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities (5)
|
|
|
$
|
472,968
|
|
|
|
473,366
|
|
|
|
474,710
|
|
|
|
462,890
|
|
|
|
456,969
|
|
Loans
|
|
|
947,308
|
|
|
|
956,770
|
|
|
|
951,873
|
|
|
|
957,423
|
|
|
|
958,405
|
|
Allowance for loan losses
|
|
|
10,373
|
|
|
|
11,004
|
|
|
|
11,078
|
|
|
|
11,073
|
|
|
|
11,168
|
|
Goodwill
|
|
|
26,445
|
|
|
|
26,587
|
|
|
|
26,581
|
|
|
|
26,573
|
|
|
|
26,666
|
|
Equity securities (5)
|
|
|
58,935
|
|
|
|
62,497
|
|
|
|
54,981
|
|
|
|
55,742
|
|
|
|
56,991
|
|
Assets
|
|
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
1,934,880
|
|
|
|
1,930,792
|
|
|
|
1,951,501
|
|
Deposits
|
|
|
1,303,689
|
|
|
|
1,335,991
|
|
|
|
1,306,706
|
|
|
|
1,305,830
|
|
|
|
1,325,444
|
|
Common stockholders' equity
|
|
|
181,950
|
|
|
|
183,134
|
|
|
|
181,920
|
|
|
|
181,233
|
|
|
|
178,209
|
|
Wells Fargo stockholders’ equity
|
|
|
205,752
|
|
|
|
206,936
|
|
|
|
205,722
|
|
|
|
205,034
|
|
|
|
201,321
|
|
Total equity
|
|
|
206,710
|
|
|
|
208,079
|
|
|
|
206,617
|
|
|
|
205,949
|
|
|
|
202,310
|
|
Tangible common equity (1)
|
|
|
152,678
|
|
|
|
153,730
|
|
|
|
152,694
|
|
|
|
151,868
|
|
|
|
148,671
|
|
Common shares outstanding
|
|
|
4,873.9
|
|
|
|
4,891.6
|
|
|
|
4,927.9
|
|
|
|
4,966.8
|
|
|
|
4,996.7
|
|
Book value per common share (6)
|
|
|
$
|
37.33
|
|
|
|
37.44
|
|
|
|
36.92
|
|
|
|
36.49
|
|
|
|
35.67
|
|
Tangible book value per common share (1)(6)
|
|
|
31.33
|
|
|
|
31.43
|
|
|
|
30.99
|
|
|
|
30.58
|
|
|
|
29.75
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
66.31
|
|
|
|
62.24
|
|
|
|
56.45
|
|
|
|
56.60
|
|
|
|
59.99
|
|
Low
|
|
|
50.70
|
|
|
|
52.84
|
|
|
|
49.28
|
|
|
|
50.84
|
|
|
|
53.35
|
|
Period end
|
|
|
52.41
|
|
|
|
60.67
|
|
|
|
55.15
|
|
|
|
55.41
|
|
|
|
55.66
|
|
Team members (active, full-time equivalent)
|
|
|
265,700
|
|
|
|
262,700
|
|
|
|
268,000
|
|
|
|
270,600
|
|
|
|
272,800
|
|
(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 securities 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 36.
|
|
(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) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
(6) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
(in millions, except per share amounts)
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
Debt securities (1)
|
|
|
$
|
3,414
|
|
|
|
3,173
|
|
|
|
8
|
%
|
|
Mortgages held for sale
|
|
|
179
|
|
|
|
182
|
|
|
|
(2
|
)
|
|
Loans held for sale (1)
|
|
|
24
|
|
|
|
10
|
|
|
|
140
|
|
|
Loans
|
|
|
10,579
|
|
|
|
10,141
|
|
|
|
4
|
|
|
Equity securities (1)
|
|
|
231
|
|
|
|
175
|
|
|
|
32
|
|
|
Other interest income
|
|
|
920
|
|
|
|
532
|
|
|
|
73
|
|
|
Total interest income
|
|
|
15,347
|
|
|
|
14,213
|
|
|
|
8
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,090
|
|
|
|
536
|
|
|
|
103
|
|
|
Short-term borrowings
|
|
|
311
|
|
|
|
114
|
|
|
|
173
|
|
|
Long-term debt
|
|
|
1,576
|
|
|
|
1,147
|
|
|
|
37
|
|
|
Other interest expense
|
|
|
132
|
|
|
|
92
|
|
|
|
43
|
|
|
Total interest expense
|
|
|
3,109
|
|
|
|
1,889
|
|
|
|
65
|
|
|
Net interest income
|
|
|
12,238
|
|
|
|
12,324
|
|
|
|
(1
|
)
|
|
Provision for credit losses
|
|
|
191
|
|
|
|
605
|
|
|
|
(68
|
)
|
|
Net interest income after provision for credit losses
|
|
|
12,047
|
|
|
|
11,719
|
|
|
|
3
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,173
|
|
|
|
1,313
|
|
|
|
(11
|
)
|
|
Trust and investment fees
|
|
|
3,683
|
|
|
|
3,570
|
|
|
|
3
|
|
|
Card fees
|
|
|
908
|
|
|
|
945
|
|
|
|
(4
|
)
|
|
Other fees
|
|
|
800
|
|
|
|
865
|
|
|
|
(8
|
)
|
|
Mortgage banking
|
|
|
934
|
|
|
|
1,228
|
|
|
|
(24
|
)
|
|
Insurance
|
|
|
114
|
|
|
|
277
|
|
|
|
(59
|
)
|
|
Net gains from trading activities (1)
|
|
|
243
|
|
|
|
272
|
|
|
|
(11
|
)
|
|
Net gains on debt securities
|
|
|
1
|
|
|
|
36
|
|
|
|
(97
|
)
|
|
Net gains from equity securities (1)
|
|
|
783
|
|
|
|
570
|
|
|
|
37
|
|
|
Lease income
|
|
|
455
|
|
|
|
481
|
|
|
|
(5
|
)
|
|
Other
|
|
|
602
|
|
|
|
374
|
|
|
|
61
|
|
|
Total noninterest income
|
|
|
9,696
|
|
|
|
9,931
|
|
|
|
(2
|
)
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
4,363
|
|
|
|
4,261
|
|
|
|
2
|
|
|
Commission and incentive compensation
|
|
|
2,768
|
|
|
|
2,725
|
|
|
|
2
|
|
|
Employee benefits
|
|
|
1,598
|
|
|
|
1,686
|
|
|
|
(5
|
)
|
|
Equipment
|
|
|
617
|
|
|
|
577
|
|
|
|
7
|
|
|
Net occupancy
|
|
|
713
|
|
|
|
712
|
|
|
|
—
|
|
|
Core deposit and other intangibles
|
|
|
265
|
|
|
|
289
|
|
|
|
(8
|
)
|
|
FDIC and other deposit assessments
|
|
|
324
|
|
|
|
333
|
|
|
|
(3
|
)
|
|
Other
|
|
|
3,594
|
|
|
|
3,209
|
|
|
|
12
|
|
|
Total noninterest expense
|
|
|
14,242
|
|
|
|
13,792
|
|
|
|
3
|
|
|
Income before income tax expense
|
|
|
7,501
|
|
|
|
7,858
|
|
|
|
(5
|
)
|
|
Income tax expense
|
|
|
1,374
|
|
|
|
2,133
|
|
|
|
(36
|
)
|
|
Net income before noncontrolling interests
|
|
|
6,127
|
|
|
|
5,725
|
|
|
|
7
|
|
|
Less: Net income from noncontrolling interests
|
|
|
191
|
|
|
|
91
|
|
|
|
110
|
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
5,634
|
|
|
|
5
|
|
|
Less: Preferred stock dividends and other
|
|
|
403
|
|
|
|
401
|
|
|
|
—
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,533
|
|
|
|
5,233
|
|
|
|
6
|
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.13
|
|
|
|
1.05
|
|
|
|
8
|
|
|
Diluted earnings per common share
|
|
|
1.12
|
|
|
|
1.03
|
|
|
|
9
|
|
|
Dividends declared per common share
|
|
|
0.390
|
|
|
|
0.380
|
|
|
|
3
|
|
|
Average common shares outstanding
|
|
|
4,885.7
|
|
|
|
5,008.6
|
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
4,930.7
|
|
|
|
5,070.4
|
|
|
|
(3
|
)
|
|
(1) Financial information for the prior quarter has been revised
to reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions, except per share amounts)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities (1)
|
|
|
$
|
3,414
|
|
|
|
3,294
|
|
|
|
3,253
|
|
|
|
3,226
|
|
|
|
3,173
|
|
Mortgages held for sale
|
|
|
179
|
|
|
|
196
|
|
|
|
217
|
|
|
|
191
|
|
|
|
182
|
|
Loans held for sale (1)
|
|
|
24
|
|
|
|
12
|
|
|
|
15
|
|
|
|
13
|
|
|
|
10
|
|
Loans
|
|
|
10,579
|
|
|
|
10,367
|
|
|
|
10,522
|
|
|
|
10,358
|
|
|
|
10,141
|
|
Equity securities (1)
|
|
|
231
|
|
|
|
239
|
|
|
|
186
|
|
|
|
199
|
|
|
|
175
|
|
Other interest income
|
|
|
920
|
|
|
|
850
|
|
|
|
851
|
|
|
|
707
|
|
|
|
532
|
|
Total interest income
|
|
|
15,347
|
|
|
|
14,958
|
|
|
|
15,044
|
|
|
|
14,694
|
|
|
|
14,213
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
1,090
|
|
|
|
931
|
|
|
|
869
|
|
|
|
677
|
|
|
|
536
|
|
Short-term borrowings
|
|
|
311
|
|
|
|
255
|
|
|
|
226
|
|
|
|
163
|
|
|
|
114
|
|
Long-term debt
|
|
|
1,576
|
|
|
|
1,344
|
|
|
|
1,391
|
|
|
|
1,275
|
|
|
|
1,147
|
|
Other interest expense
|
|
|
132
|
|
|
|
115
|
|
|
|
109
|
|
|
|
108
|
|
|
|
92
|
|
Total interest expense
|
|
|
3,109
|
|
|
|
2,645
|
|
|
|
2,595
|
|
|
|
2,223
|
|
|
|
1,889
|
|
Net interest income
|
|
|
12,238
|
|
|
|
12,313
|
|
|
|
12,449
|
|
|
|
12,471
|
|
|
|
12,324
|
|
Provision for credit losses
|
|
|
191
|
|
|
|
651
|
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
Net interest income after provision for credit losses
|
|
|
12,047
|
|
|
|
11,662
|
|
|
|
11,732
|
|
|
|
11,916
|
|
|
|
11,719
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
1,173
|
|
|
|
1,246
|
|
|
|
1,276
|
|
|
|
1,276
|
|
|
|
1,313
|
|
Trust and investment fees
|
|
|
3,683
|
|
|
|
3,687
|
|
|
|
3,609
|
|
|
|
3,629
|
|
|
|
3,570
|
|
Card fees
|
|
|
908
|
|
|
|
996
|
|
|
|
1,000
|
|
|
|
1,019
|
|
|
|
945
|
|
Other fees
|
|
|
800
|
|
|
|
913
|
|
|
|
877
|
|
|
|
902
|
|
|
|
865
|
|
Mortgage banking
|
|
|
934
|
|
|
|
928
|
|
|
|
1,046
|
|
|
|
1,148
|
|
|
|
1,228
|
|
Insurance
|
|
|
114
|
|
|
|
223
|
|
|
|
269
|
|
|
|
280
|
|
|
|
277
|
|
Net gains (losses) from trading activities (1)
|
|
|
243
|
|
|
|
(1
|
)
|
|
|
120
|
|
|
|
151
|
|
|
|
272
|
|
Net gains on debt securities
|
|
|
1
|
|
|
|
157
|
|
|
|
166
|
|
|
|
120
|
|
|
|
36
|
|
Net gains from equity securities (1)
|
|
|
783
|
|
|
|
572
|
|
|
|
363
|
|
|
|
274
|
|
|
|
570
|
|
Lease income
|
|
|
455
|
|
|
|
458
|
|
|
|
475
|
|
|
|
493
|
|
|
|
481
|
|
Other
|
|
|
602
|
|
|
|
558
|
|
|
|
199
|
|
|
|
472
|
|
|
|
374
|
|
Total noninterest income
|
|
|
9,696
|
|
|
|
9,737
|
|
|
|
9,400
|
|
|
|
9,764
|
|
|
|
9,931
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
4,363
|
|
|
|
4,403
|
|
|
|
4,356
|
|
|
|
4,343
|
|
|
|
4,261
|
|
Commission and incentive compensation
|
|
|
2,768
|
|
|
|
2,665
|
|
|
|
2,553
|
|
|
|
2,499
|
|
|
|
2,725
|
|
Employee benefits
|
|
|
1,598
|
|
|
|
1,293
|
|
|
|
1,279
|
|
|
|
1,308
|
|
|
|
1,686
|
|
Equipment
|
|
|
617
|
|
|
|
608
|
|
|
|
523
|
|
|
|
529
|
|
|
|
577
|
|
Net occupancy
|
|
|
713
|
|
|
|
715
|
|
|
|
716
|
|
|
|
706
|
|
|
|
712
|
|
Core deposit and other intangibles
|
|
|
265
|
|
|
|
288
|
|
|
|
288
|
|
|
|
287
|
|
|
|
289
|
|
FDIC and other deposit assessments
|
|
|
324
|
|
|
|
312
|
|
|
|
314
|
|
|
|
328
|
|
|
|
333
|
|
Other
|
|
|
3,594
|
|
|
|
6,516
|
|
|
|
4,322
|
|
|
|
3,541
|
|
|
|
3,209
|
|
Total noninterest expense
|
|
|
14,242
|
|
|
|
16,800
|
|
|
|
14,351
|
|
|
|
13,541
|
|
|
|
13,792
|
|
Income before income tax expense
|
|
|
7,501
|
|
|
|
4,599
|
|
|
|
6,781
|
|
|
|
8,139
|
|
|
|
7,858
|
|
Income tax expense (benefit)
|
|
|
1,374
|
|
|
|
(1,642
|
)
|
|
|
2,181
|
|
|
|
2,245
|
|
|
|
2,133
|
|
Net income before noncontrolling interests
|
|
|
6,127
|
|
|
|
6,241
|
|
|
|
4,600
|
|
|
|
5,894
|
|
|
|
5,725
|
|
Less: Net income from noncontrolling interests
|
|
|
191
|
|
|
|
90
|
|
|
|
58
|
|
|
|
38
|
|
|
|
91
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
6,151
|
|
|
|
4,542
|
|
|
|
5,856
|
|
|
|
5,634
|
|
Less: Preferred stock dividends and other
|
|
|
403
|
|
|
|
411
|
|
|
|
411
|
|
|
|
406
|
|
|
|
401
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,533
|
|
|
|
5,740
|
|
|
|
4,131
|
|
|
|
5,450
|
|
|
|
5,233
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.13
|
|
|
|
1.17
|
|
|
|
0.83
|
|
|
|
1.09
|
|
|
|
1.05
|
|
Diluted earnings per common share
|
|
|
1.12
|
|
|
|
1.16
|
|
|
|
0.83
|
|
|
|
1.08
|
|
|
|
1.03
|
|
Dividends declared per common share
|
|
|
0.390
|
|
|
|
0.390
|
|
|
|
0.390
|
|
|
|
0.380
|
|
|
|
0.380
|
|
Average common shares outstanding
|
|
|
4,885.7
|
|
|
|
4,912.5
|
|
|
|
4,948.6
|
|
|
|
4,989.9
|
|
|
|
5,008.6
|
|
Diluted average common shares outstanding
|
|
|
4,930.7
|
|
|
|
4,963.1
|
|
|
|
4,996.8
|
|
|
|
5,037.7
|
|
|
|
5,070.4
|
|
(1) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
Quarter ended Mar 31,
|
|
|
%
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
5,634
|
|
|
|
5
|
%
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
Debt securities (1):
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
(3,443
|
)
|
|
|
369
|
|
|
|
NM
|
|
Reclassification of net (gains) losses to net income
|
|
|
68
|
|
|
|
(145
|
)
|
|
|
NM
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized losses arising during the period
|
|
|
(242
|
)
|
|
|
(362
|
)
|
|
|
(33
|
)
|
|
Reclassification of net (gains) losses to net income
|
|
|
60
|
|
|
|
(202
|
)
|
|
|
NM
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
Net actuarial and prior service gains (losses) arising during the
period
|
|
|
6
|
|
|
|
(7
|
)
|
|
|
NM
|
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
32
|
|
|
|
38
|
|
|
|
(16
|
)
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
(2
|
)
|
|
|
16
|
|
|
|
NM
|
|
Other comprehensive loss, before tax
|
|
|
(3,521
|
)
|
|
|
(293
|
)
|
|
|
NM
|
|
Income tax benefit related to other comprehensive income
|
|
|
862
|
|
|
|
123
|
|
|
|
601
|
|
|
Other comprehensive loss, net of tax
|
|
|
(2,659
|
)
|
|
|
(170
|
)
|
|
|
NM
|
|
Less: Other comprehensive income from noncontrolling interests
|
|
|
—
|
|
|
|
14
|
|
|
|
(100
|
)
|
|
Wells Fargo other comprehensive loss, net of tax
|
|
|
(2,659
|
)
|
|
|
(184
|
)
|
|
|
NM
|
|
Wells Fargo comprehensive income
|
|
|
3,277
|
|
|
|
5,450
|
|
|
|
(40
|
)
|
|
Comprehensive income from noncontrolling interests
|
|
|
191
|
|
|
|
105
|
|
|
|
82
|
|
|
Total comprehensive income
|
|
|
$
|
3,468
|
|
|
|
5,555
|
|
|
|
(38
|
)
|
|
NM – Not meaningful
|
|
(1) The quarter ended March 31, 2017, includes net unrealized
gains from equity securities of $61 million and reclassification
of gains to net income related to equity securities of ($116)
million. Per the adoption of ASU 2016-01, the quarter ended March
31, 2018, reflects only net unrealized gains and reclassification
of net gains to net income from debt securities.
|
|
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Balance, beginning of period
|
|
|
$
|
208,079
|
|
|
|
206,617
|
|
|
|
205,949
|
|
|
|
202,310
|
|
|
|
200,497
|
|
|
Cumulative effect from change in accounting policy (1)
|
|
|
(24
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(213
|
)
|
|
Wells Fargo net income
|
|
|
5,936
|
|
|
|
6,151
|
|
|
|
4,542
|
|
|
|
5,856
|
|
|
|
5,634
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
(2,659
|
)
|
|
|
(522
|
)
|
|
|
526
|
|
|
|
1,005
|
|
|
|
(184
|
)
|
|
Noncontrolling interests
|
|
|
(178
|
)
|
|
|
247
|
|
|
|
(20
|
)
|
|
|
(75
|
)
|
|
|
75
|
|
|
Common stock issued
|
|
|
1,208
|
|
|
|
436
|
|
|
|
254
|
|
|
|
252
|
|
|
|
1,406
|
|
|
Common stock repurchased
|
|
|
(3,029
|
)
|
|
|
(2,845
|
)
|
|
|
(2,601
|
)
|
|
|
(2,287
|
)
|
|
|
(2,175
|
)
|
|
Preferred stock released by ESOP
|
|
|
231
|
|
|
|
218
|
|
|
|
209
|
|
|
|
406
|
|
|
|
—
|
|
|
Common stock warrants repurchased/exercised
|
|
|
(157
|
)
|
|
|
(46
|
)
|
|
|
(19
|
)
|
|
|
(24
|
)
|
|
|
(44
|
)
|
|
Preferred stock issued
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
677
|
|
|
|
—
|
|
|
Common stock dividends
|
|
|
(1,911
|
)
|
|
|
(1,920
|
)
|
|
|
(1,936
|
)
|
|
|
(1,899
|
)
|
|
|
(1,903
|
)
|
|
Preferred stock dividends
|
|
|
(410
|
)
|
|
|
(411
|
)
|
|
|
(411
|
)
|
|
|
(406
|
)
|
|
|
(401
|
)
|
|
Stock incentive compensation expense
|
|
|
437
|
|
|
|
206
|
|
|
|
135
|
|
|
|
145
|
|
|
|
389
|
|
|
Net change in deferred compensation and related plans
|
|
|
(813
|
)
|
|
|
(52
|
)
|
|
|
(11
|
)
|
|
|
(11
|
)
|
|
|
(771
|
)
|
|
Balance, end of period
|
|
|
$
|
206,710
|
|
|
|
208,079
|
|
|
|
206,617
|
|
|
|
205,949
|
|
|
|
202,310
|
|
|
(1) The cumulative effect for the quarter ended March 31, 2018,
reflects the impact of the adoption in first quarter 2018 of ASU
2016-04, ASU 2016-01 and ASU 2014-09. See pages 17 and 18 for more
information. The cumulative effect for the quarter ended March 31,
2017, reflects the impact of the adoption in fourth quarter 2017
of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted
Improvements to Accounting for Hedging Activities.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Quarter ended March 31,
|
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
(in millions)
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks (3)
|
|
|
$
|
172,291
|
|
|
|
1.49
|
%
|
|
|
$
|
632
|
|
|
|
208,486
|
|
|
|
0.79
|
%
|
|
|
$
|
405
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments (3)
|
|
|
78,135
|
|
|
|
1.40
|
|
|
|
271
|
|
|
|
75,281
|
|
|
|
0.68
|
|
|
|
127
|
|
Debt securities (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading debt securities (7)
|
|
|
78,715
|
|
|
|
3.24
|
|
|
|
637
|
|
|
|
69,120
|
|
|
|
3.03
|
|
|
|
523
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
6,426
|
|
|
|
1.66
|
|
|
|
26
|
|
|
|
25,034
|
|
|
|
1.54
|
|
|
|
95
|
|
Securities of U.S. states and political subdivisions (7)
|
|
|
49,956
|
|
|
|
3.37
|
|
|
|
421
|
|
|
|
52,248
|
|
|
|
3.93
|
|
|
|
513
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
158,472
|
|
|
|
2.72
|
|
|
|
1,076
|
|
|
|
156,617
|
|
|
|
2.58
|
|
|
|
1,011
|
|
Residential and commercial (7)
|
|
|
8,871
|
|
|
|
4.12
|
|
|
|
91
|
|
|
|
14,452
|
|
|
|
5.34
|
|
|
|
193
|
|
Total mortgage-backed securities (7)
|
|
|
167,343
|
|
|
|
2.79
|
|
|
|
1,167
|
|
|
|
171,069
|
|
|
|
2.81
|
|
|
|
1,204
|
|
Other debt securities (7)(8)
|
|
|
48,094
|
|
|
|
3.73
|
|
|
|
444
|
|
|
|
50,149
|
|
|
|
3.61
|
|
|
|
447
|
|
Total available-for-sale debt securities (7)(8)
|
|
|
271,819
|
|
|
|
3.04
|
|
|
|
2,058
|
|
|
|
298,500
|
|
|
|
3.04
|
|
|
|
2,259
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,723
|
|
|
|
2.20
|
|
|
|
243
|
|
|
|
44,693
|
|
|
|
2.20
|
|
|
|
243
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,259
|
|
|
|
4.34
|
|
|
|
68
|
|
|
|
6,273
|
|
|
|
5.30
|
|
|
|
83
|
|
Federal agency and other mortgage-backed securities
|
|
|
90,789
|
|
|
|
2.38
|
|
|
|
541
|
|
|
|
51,786
|
|
|
|
2.51
|
|
|
|
324
|
|
Other debt securities
|
|
|
695
|
|
|
|
3.23
|
|
|
|
5
|
|
|
|
3,329
|
|
|
|
2.34
|
|
|
|
19
|
|
Total held-to-maturity debt securities
|
|
|
142,466
|
|
|
|
2.42
|
|
|
|
857
|
|
|
|
106,081
|
|
|
|
2.54
|
|
|
|
669
|
|
Total debt securities (7)(8)
|
|
|
493,000
|
|
|
|
2.89
|
|
|
|
3,552
|
|
|
|
473,701
|
|
|
|
2.92
|
|
|
|
3,451
|
|
Mortgages held for sale (5)(7)
|
|
|
18,406
|
|
|
|
3.89
|
|
|
|
179
|
|
|
|
19,893
|
|
|
|
3.67
|
|
|
|
182
|
|
Loans held for sale (5)(8)
|
|
|
2,011
|
|
|
|
4.92
|
|
|
|
24
|
|
|
|
1,600
|
|
|
|
2.50
|
|
|
|
10
|
|
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
272,040
|
|
|
|
3.85
|
|
|
|
2,584
|
|
|
|
274,749
|
|
|
|
3.59
|
|
|
|
2,436
|
|
Commercial and industrial - Non U.S.
|
|
|
60,216
|
|
|
|
3.23
|
|
|
|
479
|
|
|
|
55,347
|
|
|
|
2.73
|
|
|
|
373
|
|
Real estate mortgage
|
|
|
126,200
|
|
|
|
4.05
|
|
|
|
1,262
|
|
|
|
132,449
|
|
|
|
3.56
|
|
|
|
1,164
|
|
Real estate construction
|
|
|
24,449
|
|
|
|
4.54
|
|
|
|
274
|
|
|
|
24,591
|
|
|
|
3.72
|
|
|
|
225
|
|
Lease financing
|
|
|
19,265
|
|
|
|
5.30
|
|
|
|
255
|
|
|
|
19,070
|
|
|
|
4.94
|
|
|
|
235
|
|
Total commercial loans
|
|
|
502,170
|
|
|
|
3.91
|
|
|
|
4,854
|
|
|
|
506,206
|
|
|
|
3.54
|
|
|
|
4,433
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
284,207
|
|
|
|
4.02
|
|
|
|
2,852
|
|
|
|
275,480
|
|
|
|
4.02
|
|
|
|
2,766
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
38,844
|
|
|
|
5.13
|
|
|
|
493
|
|
|
|
45,285
|
|
|
|
4.60
|
|
|
|
515
|
|
Credit card
|
|
|
36,468
|
|
|
|
12.75
|
|
|
|
1,147
|
|
|
|
35,437
|
|
|
|
11.97
|
|
|
|
1,046
|
|
Automobile
|
|
|
51,469
|
|
|
|
5.16
|
|
|
|
655
|
|
|
|
61,510
|
|
|
|
5.46
|
|
|
|
828
|
|
Other revolving credit and installment
|
|
|
37,866
|
|
|
|
6.46
|
|
|
|
604
|
|
|
|
39,727
|
|
|
|
6.02
|
|
|
|
590
|
|
Total consumer loans
|
|
|
448,854
|
|
|
|
5.16
|
|
|
|
5,751
|
|
|
|
457,439
|
|
|
|
5.06
|
|
|
|
5,745
|
|
Total loans (5)
|
|
|
951,024
|
|
|
|
4.50
|
|
|
|
10,605
|
|
|
|
963,645
|
|
|
|
4.26
|
|
|
|
10,178
|
|
Equity securities (8)
|
|
|
39,754
|
|
|
|
2.35
|
|
|
|
233
|
|
|
|
33,926
|
|
|
|
2.11
|
|
|
|
179
|
|
Other (8)
|
|
|
6,015
|
|
|
|
1.21
|
|
|
|
19
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total earning assets (7)(8)
|
|
|
$
|
1,760,636
|
|
|
|
3.55
|
%
|
|
|
$
|
15,515
|
|
|
|
1,776,532
|
|
|
|
3.30
|
%
|
|
|
$
|
14,532
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
67,774
|
|
|
|
0.77
|
%
|
|
|
$
|
129
|
|
|
|
50,686
|
|
|
|
0.29
|
%
|
|
|
$
|
37
|
|
Market rate and other savings
|
|
|
679,068
|
|
|
|
0.22
|
|
|
|
368
|
|
|
|
684,175
|
|
|
|
0.09
|
|
|
|
157
|
|
Savings certificates
|
|
|
20,018
|
|
|
|
0.34
|
|
|
|
17
|
|
|
|
23,466
|
|
|
|
0.29
|
|
|
|
17
|
|
Other time deposits (7)
|
|
|
76,589
|
|
|
|
1.84
|
|
|
|
347
|
|
|
|
54,915
|
|
|
|
1.30
|
|
|
|
177
|
|
Deposits in foreign offices
|
|
|
94,810
|
|
|
|
0.98
|
|
|
|
229
|
|
|
|
122,200
|
|
|
|
0.49
|
|
|
|
148
|
|
Total interest-bearing deposits (7)
|
|
|
938,259
|
|
|
|
0.47
|
|
|
|
1,090
|
|
|
|
935,442
|
|
|
|
0.23
|
|
|
|
536
|
|
Short-term borrowings
|
|
|
101,779
|
|
|
|
1.24
|
|
|
|
312
|
|
|
|
98,549
|
|
|
|
0.47
|
|
|
|
115
|
|
Long-term debt (7)
|
|
|
226,062
|
|
|
|
2.80
|
|
|
|
1,576
|
|
|
|
260,130
|
|
|
|
1.77
|
|
|
|
1,147
|
|
Other liabilities
|
|
|
27,927
|
|
|
|
1.92
|
|
|
|
132
|
|
|
|
16,806
|
|
|
|
2.22
|
|
|
|
92
|
|
Total interest-bearing liabilities (7)
|
|
|
1,294,027
|
|
|
|
0.97
|
|
|
|
3,110
|
|
|
|
1,310,927
|
|
|
|
0.58
|
|
|
|
1,890
|
|
Portion of noninterest-bearing funding sources (7)(8)
|
|
|
466,609
|
|
|
|
—
|
|
|
|
—
|
|
|
|
465,605
|
|
|
|
—
|
|
|
|
—
|
|
Total funding sources (7)(8)
|
|
|
$
|
1,760,636
|
|
|
|
0.71
|
|
|
|
3,110
|
|
|
|
1,776,532
|
|
|
|
0.43
|
|
|
|
1,890
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (6)(7)
|
|
|
|
|
|
2.84
|
%
|
|
|
$
|
12,405
|
|
|
|
|
|
|
2.87
|
%
|
|
|
$
|
12,642
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,853
|
|
|
|
|
|
|
|
|
|
18,706
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,516
|
|
|
|
|
|
|
|
|
|
26,673
|
|
|
|
|
|
|
|
|
Other (7)(8)
|
|
|
109,891
|
|
|
|
|
|
|
|
|
|
109,129
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets (7)(8)
|
|
|
$
|
155,260
|
|
|
|
|
|
|
|
|
|
154,508
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
358,919
|
|
|
|
|
|
|
|
|
|
363,749
|
|
|
|
|
|
|
|
|
Other liabilities (7)
|
|
|
56,761
|
|
|
|
|
|
|
|
|
|
54,805
|
|
|
|
|
|
|
|
|
Total equity (7)
|
|
|
206,189
|
|
|
|
|
|
|
|
|
|
201,559
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
(7)(8)
|
|
|
(466,609
|
)
|
|
|
|
|
|
|
|
|
(465,605
|
)
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources (7)(8)
|
|
|
$
|
155,260
|
|
|
|
|
|
|
|
|
|
154,508
|
|
|
|
|
|
|
|
|
Total assets (7)
|
|
|
$
|
1,915,896
|
|
|
|
|
|
|
|
|
|
1,931,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.52% and 3.80% for the quarters
ended March 31, 2018 and 2017, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 1.93% and
1.07% 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) Financial information has been revised to reflect the impact
of the adoption of ASU 2016-18 – Statement of Cash Flows (Topic
230): Restricted Cash in which we changed the presentation of our
cash and cash equivalents to include both cash and due from banks
as well as interest-earning deposits with banks, which are
inclusive of any restricted cash.
|
|
(4) 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.
|
|
(5) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(6) Includes taxable-equivalent adjustments of $167 million and
$318 million for the quarters ended March 31, 2018 and 2017,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
21% and 35% for the quarters ended March 31, 2018 and 2017,
respectively.
|
|
(7) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted
Improvements to Accounting for Hedging Activities.
|
|
(8) Financial information for the prior quarter has been revised
to reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Sep 30, 2017
|
|
|
Jun 30, 2017
|
|
|
Mar 31, 2017
|
|
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
($ in billions)
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning deposits with banks (3)
|
|
|
$
|
172.3
|
|
|
|
1.49
|
%
|
|
|
$
|
189.1
|
|
|
|
1.27
|
%
|
|
|
$
|
205.5
|
|
|
|
1.21
|
%
|
|
|
$
|
204.5
|
|
|
|
1.03
|
%
|
|
|
$
|
208.5
|
|
|
|
0.79
|
%
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments (3)
|
|
|
78.1
|
|
|
|
1.40
|
|
|
|
75.8
|
|
|
|
1.20
|
|
|
|
70.6
|
|
|
|
1.14
|
|
|
|
77.1
|
|
|
|
0.91
|
|
|
|
75.3
|
|
|
|
0.68
|
|
|
Debt securities (4):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading debt securities (5)
|
|
|
78.7
|
|
|
|
3.24
|
|
|
|
81.6
|
|
|
|
3.17
|
|
|
|
76.6
|
|
|
|
3.21
|
|
|
|
70.4
|
|
|
|
3.24
|
|
|
|
69.1
|
|
|
|
3.03
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
6.4
|
|
|
|
1.66
|
|
|
|
6.4
|
|
|
|
1.66
|
|
|
|
14.5
|
|
|
|
1.31
|
|
|
|
18.1
|
|
|
|
1.53
|
|
|
|
25.0
|
|
|
|
1.54
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
50.0
|
|
|
|
3.37
|
|
|
|
52.4
|
|
|
|
3.91
|
|
|
|
52.5
|
|
|
|
4.08
|
|
|
|
53.5
|
|
|
|
3.89
|
|
|
|
52.2
|
|
|
|
3.93
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
158.4
|
|
|
|
2.72
|
|
|
|
152.9
|
|
|
|
2.62
|
|
|
|
139.8
|
|
|
|
2.58
|
|
|
|
132.0
|
|
|
|
2.63
|
|
|
|
156.6
|
|
|
|
2.58
|
|
|
Residential and commercial
|
|
|
8.9
|
|
|
|
4.12
|
|
|
|
9.4
|
|
|
|
4.85
|
|
|
|
11.0
|
|
|
|
5.44
|
|
|
|
12.6
|
|
|
|
5.55
|
|
|
|
14.5
|
|
|
|
5.34
|
|
|
Total mortgage-backed securities
|
|
|
167.3
|
|
|
|
2.79
|
|
|
|
162.3
|
|
|
|
2.75
|
|
|
|
150.8
|
|
|
|
2.79
|
|
|
|
144.6
|
|
|
|
2.89
|
|
|
|
171.1
|
|
|
|
2.81
|
|
|
Other debt securities (5)
|
|
|
48.1
|
|
|
|
3.73
|
|
|
|
48.6
|
|
|
|
3.62
|
|
|
|
47.7
|
|
|
|
3.73
|
|
|
|
48.5
|
|
|
|
3.77
|
|
|
|
50.2
|
|
|
|
3.61
|
|
|
Total available-for-sale debt securities (5)
|
|
|
271.8
|
|
|
|
3.04
|
|
|
|
269.7
|
|
|
|
3.10
|
|
|
|
265.5
|
|
|
|
3.13
|
|
|
|
264.7
|
|
|
|
3.16
|
|
|
|
298.5
|
|
|
|
3.04
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44.7
|
|
|
|
2.20
|
|
|
|
44.7
|
|
|
|
2.19
|
|
|
|
44.7
|
|
|
|
2.18
|
|
|
|
44.7
|
|
|
|
2.19
|
|
|
|
44.7
|
|
|
|
2.20
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
6.3
|
|
|
|
4.34
|
|
|
|
6.3
|
|
|
|
5.26
|
|
|
|
6.3
|
|
|
|
5.44
|
|
|
|
6.3
|
|
|
|
5.29
|
|
|
|
6.3
|
|
|
|
5.30
|
|
|
Federal agency and other mortgage-backed securities
|
|
|
90.8
|
|
|
|
2.38
|
|
|
|
89.6
|
|
|
|
2.25
|
|
|
|
88.3
|
|
|
|
2.26
|
|
|
|
83.1
|
|
|
|
2.44
|
|
|
|
51.8
|
|
|
|
2.51
|
|
|
Other debt securities
|
|
|
0.7
|
|
|
|
3.23
|
|
|
|
1.2
|
|
|
|
2.64
|
|
|
|
1.4
|
|
|
|
3.05
|
|
|
|
2.8
|
|
|
|
2.34
|
|
|
|
3.3
|
|
|
|
2.34
|
|
|
Total held-to-maturity debt securities
|
|
|
142.5
|
|
|
|
2.42
|
|
|
|
141.8
|
|
|
|
2.36
|
|
|
|
140.7
|
|
|
|
2.38
|
|
|
|
136.9
|
|
|
|
2.49
|
|
|
|
106.1
|
|
|
|
2.54
|
|
|
Total debt securities (5)
|
|
|
493.0
|
|
|
|
2.89
|
|
|
|
493.1
|
|
|
|
2.90
|
|
|
|
482.8
|
|
|
|
2.93
|
|
|
|
472.0
|
|
|
|
2.98
|
|
|
|
473.7
|
|
|
|
2.92
|
|
|
Mortgages held for sale
|
|
|
18.4
|
|
|
|
3.89
|
|
|
|
20.5
|
|
|
|
3.82
|
|
|
|
22.9
|
|
|
|
3.79
|
|
|
|
19.8
|
|
|
|
3.87
|
|
|
|
19.9
|
|
|
|
3.67
|
|
|
Loans held for sale (5)
|
|
|
2.0
|
|
|
|
4.92
|
|
|
|
1.5
|
|
|
|
3.19
|
|
|
|
1.4
|
|
|
|
4.39
|
|
|
|
1.5
|
|
|
|
3.65
|
|
|
|
1.6
|
|
|
|
2.50
|
|
|
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
272.0
|
|
|
|
3.85
|
|
|
|
270.3
|
|
|
|
3.89
|
|
|
|
270.1
|
|
|
|
3.81
|
|
|
|
273.1
|
|
|
|
3.70
|
|
|
|
274.8
|
|
|
|
3.59
|
|
|
Commercial and industrial - Non U.S.
|
|
|
60.2
|
|
|
|
3.23
|
|
|
|
59.2
|
|
|
|
2.96
|
|
|
|
57.7
|
|
|
|
2.89
|
|
|
|
56.4
|
|
|
|
2.86
|
|
|
|
55.3
|
|
|
|
2.73
|
|
|
Real estate mortgage
|
|
|
126.2
|
|
|
|
4.05
|
|
|
|
127.2
|
|
|
|
3.88
|
|
|
|
129.1
|
|
|
|
3.83
|
|
|
|
131.3
|
|
|
|
3.68
|
|
|
|
132.4
|
|
|
|
3.56
|
|
|
Real estate construction
|
|
|
24.4
|
|
|
|
4.54
|
|
|
|
24.4
|
|
|
|
4.38
|
|
|
|
25.0
|
|
|
|
4.18
|
|
|
|
25.3
|
|
|
|
4.10
|
|
|
|
24.6
|
|
|
|
3.72
|
|
|
Lease financing
|
|
|
19.4
|
|
|
|
5.30
|
|
|
|
19.3
|
|
|
|
0.62
|
|
|
|
19.2
|
|
|
|
4.59
|
|
|
|
19.0
|
|
|
|
4.82
|
|
|
|
19.1
|
|
|
|
4.94
|
|
|
Total commercial loans
|
|
|
502.2
|
|
|
|
3.91
|
|
|
|
500.4
|
|
|
|
3.68
|
|
|
|
501.1
|
|
|
|
3.76
|
|
|
|
505.1
|
|
|
|
3.67
|
|
|
|
506.2
|
|
|
|
3.54
|
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
284.2
|
|
|
|
4.02
|
|
|
|
282.0
|
|
|
|
4.01
|
|
|
|
278.4
|
|
|
|
4.03
|
|
|
|
275.1
|
|
|
|
4.08
|
|
|
|
275.5
|
|
|
|
4.02
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
38.8
|
|
|
|
5.13
|
|
|
|
40.4
|
|
|
|
4.96
|
|
|
|
41.9
|
|
|
|
4.95
|
|
|
|
43.6
|
|
|
|
4.78
|
|
|
|
45.3
|
|
|
|
4.60
|
|
|
Credit card
|
|
|
36.4
|
|
|
|
12.75
|
|
|
|
36.4
|
|
|
|
12.37
|
|
|
|
35.6
|
|
|
|
12.41
|
|
|
|
34.9
|
|
|
|
12.18
|
|
|
|
35.4
|
|
|
|
11.97
|
|
|
Automobile
|
|
|
51.5
|
|
|
|
5.16
|
|
|
|
54.3
|
|
|
|
5.13
|
|
|
|
56.7
|
|
|
|
5.34
|
|
|
|
59.1
|
|
|
|
5.43
|
|
|
|
61.5
|
|
|
|
5.46
|
|
|
Other revolving credit and installment
|
|
|
37.9
|
|
|
|
6.46
|
|
|
|
38.3
|
|
|
|
6.28
|
|
|
|
38.6
|
|
|
|
6.31
|
|
|
|
39.1
|
|
|
|
6.13
|
|
|
|
39.7
|
|
|
|
6.02
|
|
|
Total consumer loans
|
|
|
448.8
|
|
|
|
5.16
|
|
|
|
451.4
|
|
|
|
5.10
|
|
|
|
451.2
|
|
|
|
5.14
|
|
|
|
451.8
|
|
|
|
5.13
|
|
|
|
457.4
|
|
|
|
5.06
|
|
|
Total loans
|
|
|
951.0
|
|
|
|
4.50
|
|
|
|
951.8
|
|
|
|
4.35
|
|
|
|
952.3
|
|
|
|
4.41
|
|
|
|
956.9
|
|
|
|
4.36
|
|
|
|
963.6
|
|
|
|
4.26
|
|
|
Equity securities (5)
|
|
|
39.8
|
|
|
|
2.35
|
|
|
|
38.0
|
|
|
|
2.60
|
|
|
|
35.9
|
|
|
|
2.12
|
|
|
|
36.6
|
|
|
|
2.24
|
|
|
|
33.9
|
|
|
|
2.11
|
|
|
Other (5)
|
|
|
6.0
|
|
|
|
1.21
|
|
|
|
7.2
|
|
|
|
0.88
|
|
|
|
8.7
|
|
|
|
0.90
|
|
|
|
4.3
|
|
|
|
0.70
|
|
|
|
—
|
|
|
|
—
|
|
|
Total earning assets (5)
|
|
|
$
|
1,760.6
|
|
|
|
3.55
|
%
|
|
|
$
|
1,777.0
|
|
|
|
3.43
|
%
|
|
|
$
|
1,780.1
|
|
|
|
3.44
|
%
|
|
|
$
|
1,772.7
|
|
|
|
3.40
|
%
|
|
|
$
|
1,776.5
|
|
|
|
3.30
|
%
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
67.8
|
|
|
|
0.77
|
%
|
|
|
$
|
50.5
|
|
|
|
0.68
|
%
|
|
|
$
|
48.3
|
|
|
|
0.57
|
%
|
|
|
$
|
48.5
|
|
|
|
0.41
|
%
|
|
|
$
|
50.7
|
|
|
|
0.29
|
%
|
|
Market rate and other savings
|
|
|
679.1
|
|
|
|
0.22
|
|
|
|
679.9
|
|
|
|
0.19
|
|
|
|
681.2
|
|
|
|
0.17
|
|
|
|
683.0
|
|
|
|
0.13
|
|
|
|
684.2
|
|
|
|
0.09
|
|
|
Savings certificates
|
|
|
20.0
|
|
|
|
0.34
|
|
|
|
20.9
|
|
|
|
0.31
|
|
|
|
21.8
|
|
|
|
0.31
|
|
|
|
22.6
|
|
|
|
0.30
|
|
|
|
23.5
|
|
|
|
0.29
|
|
|
Other time deposits
|
|
|
76.6
|
|
|
|
1.84
|
|
|
|
68.2
|
|
|
|
1.49
|
|
|
|
66.1
|
|
|
|
1.51
|
|
|
|
57.1
|
|
|
|
1.39
|
|
|
|
54.9
|
|
|
|
1.30
|
|
|
Deposits in foreign offices
|
|
|
94.8
|
|
|
|
0.98
|
|
|
|
124.6
|
|
|
|
0.81
|
|
|
|
124.7
|
|
|
|
0.76
|
|
|
|
123.7
|
|
|
|
0.65
|
|
|
|
122.2
|
|
|
|
0.49
|
|
|
Total interest-bearing deposits
|
|
|
938.3
|
|
|
|
0.47
|
|
|
|
944.1
|
|
|
|
0.39
|
|
|
|
942.1
|
|
|
|
0.37
|
|
|
|
934.9
|
|
|
|
0.29
|
|
|
|
935.5
|
|
|
|
0.23
|
|
|
Short-term borrowings
|
|
|
101.8
|
|
|
|
1.24
|
|
|
|
102.1
|
|
|
|
0.99
|
|
|
|
99.2
|
|
|
|
0.91
|
|
|
|
95.8
|
|
|
|
0.69
|
|
|
|
98.5
|
|
|
|
0.47
|
|
|
Long-term debt
|
|
|
226.0
|
|
|
|
2.80
|
|
|
|
231.6
|
|
|
|
2.32
|
|
|
|
243.5
|
|
|
|
2.28
|
|
|
|
249.9
|
|
|
|
2.04
|
|
|
|
260.1
|
|
|
|
1.77
|
|
|
Other liabilities
|
|
|
27.9
|
|
|
|
1.92
|
|
|
|
24.7
|
|
|
|
1.86
|
|
|
|
24.8
|
|
|
|
1.74
|
|
|
|
21.0
|
|
|
|
2.05
|
|
|
|
16.8
|
|
|
|
2.22
|
|
|
Total interest-bearing liabilities
|
|
|
1,294.0
|
|
|
|
0.97
|
|
|
|
1,302.5
|
|
|
|
0.81
|
|
|
|
1,309.6
|
|
|
|
0.79
|
|
|
|
1,301.6
|
|
|
|
0.68
|
|
|
|
1,310.9
|
|
|
|
0.58
|
|
|
Portion of noninterest-bearing funding sources (5)
|
|
|
466.6
|
|
|
|
—
|
|
|
|
474.5
|
|
|
|
—
|
|
|
|
470.5
|
|
|
|
—
|
|
|
|
471.1
|
|
|
|
—
|
|
|
|
465.6
|
|
|
|
—
|
|
|
Total funding sources (5)
|
|
|
$
|
1,760.6
|
|
|
|
0.71
|
|
|
|
$
|
1,777.0
|
|
|
|
0.59
|
|
|
|
$
|
1,780.1
|
|
|
|
0.58
|
|
|
|
$
|
1,772.7
|
|
|
|
0.50
|
|
|
|
$
|
1,776.5
|
|
|
|
0.43
|
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
2.84
|
%
|
|
|
|
|
|
2.84
|
%
|
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
2.90
|
%
|
|
|
|
|
|
2.87
|
%
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18.9
|
|
|
|
|
|
|
19.2
|
|
|
|
|
|
|
18.5
|
|
|
|
|
|
|
18.2
|
|
|
|
|
|
|
18.7
|
|
|
|
|
|
Goodwill
|
|
|
26.5
|
|
|
|
|
|
|
26.6
|
|
|
|
|
|
|
26.6
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
Other (5)
|
|
|
109.9
|
|
|
|
|
|
|
112.5
|
|
|
|
|
|
|
113.3
|
|
|
|
|
|
|
109.4
|
|
|
|
|
|
|
109.1
|
|
|
|
|
|
Total noninterest-earnings assets (5)
|
|
|
$
|
155.3
|
|
|
|
|
|
|
158.3
|
|
|
|
|
|
|
158.4
|
|
|
|
|
|
|
154.3
|
|
|
|
|
|
|
154.5
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
358.9
|
|
|
|
|
|
|
367.5
|
|
|
|
|
|
|
364.3
|
|
|
|
|
|
|
366.3
|
|
|
|
|
|
|
363.7
|
|
|
|
|
|
Other liabilities (5)
|
|
|
56.8
|
|
|
|
|
|
|
57.9
|
|
|
|
|
|
|
56.9
|
|
|
|
|
|
|
53.3
|
|
|
|
|
|
|
54.8
|
|
|
|
|
|
Total equity
|
|
|
206.2
|
|
|
|
|
|
|
207.4
|
|
|
|
|
|
|
207.7
|
|
|
|
|
|
|
205.8
|
|
|
|
|
|
|
201.6
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets (5)
|
|
|
(466.6
|
)
|
|
|
|
|
|
(474.5
|
)
|
|
|
|
|
|
(470.5
|
)
|
|
|
|
|
|
(471.1
|
)
|
|
|
|
|
|
(465.6
|
)
|
|
|
|
|
Net noninterest-bearing funding sources (5)
|
|
|
$
|
155.3
|
|
|
|
|
|
|
158.3
|
|
|
|
|
|
|
158.4
|
|
|
|
|
|
|
154.3
|
|
|
|
|
|
|
154.5
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,915.9
|
|
|
|
|
|
|
1,935.3
|
|
|
|
|
|
|
1,938.5
|
|
|
|
|
|
|
1,927.0
|
|
|
|
|
|
|
1,931.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.52% for the quarter ended March
31, 2018, 4.30% for the quarter ended December 31,2017, 4.25% for
the quarter ended September 30, 2017, 4.05% for the quarter ended
June 30, 2017 and 3.80% for the quarter ended March 31, 2017. The
average three-month London Interbank Offered Rate (LIBOR) was
1.93%, 1.46%, 1.31%, 1.21% and 1.07% 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) Financial information has been revised to reflect the impact
of the adoption of ASU 2016-18 – Statement of Cash Flows (Topic
230): Restricted Cash in which we changed the presentation
of our cash and cash equivalents to include both cash and due from
banks as well as interest-earning deposits with banks, which are
inclusive of any restricted cash.
|
|
(4) 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.
|
|
(5) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
(1)
|
|
|
Our average prime rate was 4.52% for the quarter ended March 31,
2018, 4.30% for the quarter ended December 31,2017, 4.25% for the
quarter ended September 30, 2017, 4.05% for the quarter ended June
30, 2017 and 3.80% for the quarter ended March 31, 2017. The average
three-month London Interbank Offered Rate (LIBOR) was 1.93%, 1.46%,
1.31%, 1.21% and 1.07% 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)
|
|
|
Financial information has been revised to reflect the impact of the
adoption of ASU 2016-18 – Statement of Cash Flows (Topic 230):
Restricted Cash in which we changed the presentation of our cash and
cash equivalents to include both cash and due from banks as well as
interest-earning deposits with banks, which are inclusive of any
restricted cash.
|
|
(4)
|
|
|
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.
|
|
(5)
|
|
|
Financial information for prior quarters has been revised to reflect
the impact of the adoption of ASU 2016-01 – Financial Instruments –
Overall (Subtopic 825-10): Recognition and Measurement of Financial
Assets and Financial Liabilities. See pages 17 and 18 for more
information.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
NONINTEREST INCOME
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Service charges on deposit accounts
|
|
|
$
|
1,173
|
|
|
1,313
|
|
|
(11
|
)%
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,403
|
|
|
2,324
|
|
|
3
|
|
|
Trust and investment management
|
|
|
850
|
|
|
829
|
|
|
3
|
|
|
Investment banking
|
|
|
430
|
|
|
417
|
|
|
3
|
|
|
Total trust and investment fees
|
|
|
3,683
|
|
|
3,570
|
|
|
3
|
|
|
Card fees
|
|
|
908
|
|
|
945
|
|
|
(4
|
)
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
301
|
|
|
307
|
|
|
(2
|
)
|
|
Cash network fees
|
|
|
126
|
|
|
126
|
|
|
—
|
|
|
Commercial real estate brokerage commissions
|
|
|
85
|
|
|
81
|
|
|
5
|
|
|
Letters of credit fees
|
|
|
79
|
|
|
74
|
|
|
7
|
|
|
Wire transfer and other remittance fees
|
|
|
116
|
|
|
107
|
|
|
8
|
|
|
All other fees
|
|
|
93
|
|
|
170
|
|
|
(45
|
)
|
|
Total other fees
|
|
|
800
|
|
|
865
|
|
|
(8
|
)
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
468
|
|
|
456
|
|
|
3
|
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
466
|
|
|
772
|
|
|
(40
|
)
|
|
Total mortgage banking
|
|
|
934
|
|
|
1,228
|
|
|
(24
|
)
|
|
Insurance
|
|
|
114
|
|
|
277
|
|
|
(59
|
)
|
|
Net gains from trading activities (1)
|
|
|
243
|
|
|
272
|
|
|
(11
|
)
|
|
Net gains on debt securities
|
|
|
1
|
|
|
36
|
|
|
(97
|
)
|
|
Net gains from equity securities (1)
|
|
|
783
|
|
|
570
|
|
|
37
|
|
|
Lease income
|
|
|
455
|
|
|
481
|
|
|
(5
|
)
|
|
Life insurance investment income
|
|
|
164
|
|
|
144
|
|
|
14
|
|
|
All other
|
|
|
438
|
|
|
230
|
|
|
90
|
|
|
Total
|
|
|
$
|
9,696
|
|
|
9,931
|
|
|
(2
|
)
|
|
(1) Financial information for the prior quarter has been revised
to reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
Quarter ended March 31,
|
|
|
%
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Salaries
|
|
|
$
|
4,363
|
|
|
4,261
|
|
|
2
|
%
|
|
Commission and incentive compensation
|
|
|
2,768
|
|
|
2,725
|
|
|
2
|
|
|
Employee benefits
|
|
|
1,598
|
|
|
1,686
|
|
|
(5
|
)
|
|
Equipment
|
|
|
617
|
|
|
577
|
|
|
7
|
|
|
Net occupancy
|
|
|
713
|
|
|
712
|
|
|
—
|
|
|
Core deposit and other intangibles
|
|
|
265
|
|
|
289
|
|
|
(8
|
)
|
|
FDIC and other deposit assessments
|
|
|
324
|
|
|
333
|
|
|
(3
|
)
|
|
Operating losses
|
|
|
668
|
|
|
282
|
|
|
137
|
|
|
Outside professional services
|
|
|
821
|
|
|
804
|
|
|
2
|
|
|
Contract services (1)
|
|
|
447
|
|
|
397
|
|
|
13
|
|
|
Operating leases
|
|
|
320
|
|
|
345
|
|
|
(7
|
)
|
|
Outside data processing
|
|
|
162
|
|
|
220
|
|
|
(26
|
)
|
|
Travel and entertainment
|
|
|
152
|
|
|
179
|
|
|
(15
|
)
|
|
Advertising and promotion
|
|
|
153
|
|
|
127
|
|
|
20
|
|
|
Postage, stationery and supplies
|
|
|
142
|
|
|
145
|
|
|
(2
|
)
|
|
Telecommunications
|
|
|
92
|
|
|
91
|
|
|
1
|
|
|
Foreclosed assets
|
|
|
38
|
|
|
86
|
|
|
(56
|
)
|
|
Insurance
|
|
|
26
|
|
|
24
|
|
|
8
|
|
|
All other (1)
|
|
|
573
|
|
|
509
|
|
|
13
|
|
|
Total
|
|
|
$
|
14,242
|
|
|
13,792
|
|
|
3
|
|
|
(1) The prior period has been revised to conform with the current
period presentation whereby temporary help is included in contract
services rather than in all other noninterest expense.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Service charges on deposit accounts
|
|
|
$
|
1,173
|
|
|
1,246
|
|
|
|
1,276
|
|
|
1,276
|
|
|
1,313
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
2,403
|
|
|
2,401
|
|
|
|
2,304
|
|
|
2,329
|
|
|
2,324
|
|
Trust and investment management
|
|
|
850
|
|
|
866
|
|
|
|
840
|
|
|
837
|
|
|
829
|
|
Investment banking
|
|
|
430
|
|
|
420
|
|
|
|
465
|
|
|
463
|
|
|
417
|
|
Total trust and investment fees
|
|
|
3,683
|
|
|
3,687
|
|
|
|
3,609
|
|
|
3,629
|
|
|
3,570
|
|
Card fees
|
|
|
908
|
|
|
996
|
|
|
|
1,000
|
|
|
1,019
|
|
|
945
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
301
|
|
|
313
|
|
|
|
318
|
|
|
325
|
|
|
307
|
|
Cash network fees
|
|
|
126
|
|
|
120
|
|
|
|
126
|
|
|
134
|
|
|
126
|
|
Commercial real estate brokerage commissions
|
|
|
85
|
|
|
159
|
|
|
|
120
|
|
|
102
|
|
|
81
|
|
Letters of credit fees
|
|
|
79
|
|
|
78
|
|
|
|
77
|
|
|
76
|
|
|
74
|
|
Wire transfer and other remittance fees
|
|
|
116
|
|
|
115
|
|
|
|
114
|
|
|
112
|
|
|
107
|
|
All other fees
|
|
|
93
|
|
|
128
|
|
|
|
122
|
|
|
153
|
|
|
170
|
|
Total other fees
|
|
|
800
|
|
|
913
|
|
|
|
877
|
|
|
902
|
|
|
865
|
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
468
|
|
|
262
|
|
|
|
309
|
|
|
400
|
|
|
456
|
|
Net gains on mortgage loan origination/sales activities
|
|
|
466
|
|
|
666
|
|
|
|
737
|
|
|
748
|
|
|
772
|
|
Total mortgage banking
|
|
|
934
|
|
|
928
|
|
|
|
1,046
|
|
|
1,148
|
|
|
1,228
|
|
Insurance
|
|
|
114
|
|
|
223
|
|
|
|
269
|
|
|
280
|
|
|
277
|
|
Net gains (losses) from trading activities (1)
|
|
|
243
|
|
|
(1
|
)
|
|
|
120
|
|
|
151
|
|
|
272
|
|
Net gains on debt securities
|
|
|
1
|
|
|
157
|
|
|
|
166
|
|
|
120
|
|
|
36
|
|
Net gains from equity securities (1)
|
|
|
783
|
|
|
572
|
|
|
|
363
|
|
|
274
|
|
|
570
|
|
Lease income
|
|
|
455
|
|
|
458
|
|
|
|
475
|
|
|
493
|
|
|
481
|
|
Life insurance investment income
|
|
|
164
|
|
|
153
|
|
|
|
152
|
|
|
145
|
|
|
144
|
|
All other
|
|
|
438
|
|
|
405
|
|
|
|
47
|
|
|
327
|
|
|
230
|
|
Total
|
|
|
$
|
9,696
|
|
|
9,737
|
|
|
|
9,400
|
|
|
9,764
|
|
|
9,931
|
|
(1) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Salaries
|
|
|
$
|
4,363
|
|
|
4,403
|
|
|
4,356
|
|
|
4,343
|
|
|
4,261
|
|
Commission and incentive compensation
|
|
|
2,768
|
|
|
2,665
|
|
|
2,553
|
|
|
2,499
|
|
|
2,725
|
|
Employee benefits
|
|
|
1,598
|
|
|
1,293
|
|
|
1,279
|
|
|
1,308
|
|
|
1,686
|
|
Equipment
|
|
|
617
|
|
|
608
|
|
|
523
|
|
|
529
|
|
|
577
|
|
Net occupancy
|
|
|
713
|
|
|
715
|
|
|
716
|
|
|
706
|
|
|
712
|
|
Core deposit and other intangibles
|
|
|
265
|
|
|
288
|
|
|
288
|
|
|
287
|
|
|
289
|
|
FDIC and other deposit assessments
|
|
|
324
|
|
|
312
|
|
|
314
|
|
|
328
|
|
|
333
|
|
Operating losses
|
|
|
668
|
|
|
3,531
|
|
|
1,329
|
|
|
350
|
|
|
282
|
|
Outside professional services
|
|
|
821
|
|
|
1,025
|
|
|
955
|
|
|
1,029
|
|
|
804
|
|
Contract services (1)
|
|
|
447
|
|
|
410
|
|
|
415
|
|
|
416
|
|
|
397
|
|
Operating leases
|
|
|
320
|
|
|
325
|
|
|
347
|
|
|
334
|
|
|
345
|
|
Outside data processing
|
|
|
162
|
|
|
208
|
|
|
227
|
|
|
236
|
|
|
220
|
|
Travel and entertainment
|
|
|
152
|
|
|
183
|
|
|
154
|
|
|
171
|
|
|
179
|
|
Advertising and promotion
|
|
|
153
|
|
|
200
|
|
|
137
|
|
|
150
|
|
|
127
|
|
Postage, stationery and supplies
|
|
|
142
|
|
|
137
|
|
|
128
|
|
|
134
|
|
|
145
|
|
Telecommunications
|
|
|
92
|
|
|
92
|
|
|
90
|
|
|
91
|
|
|
91
|
|
Foreclosed assets
|
|
|
38
|
|
|
47
|
|
|
66
|
|
|
52
|
|
|
86
|
|
Insurance
|
|
|
26
|
|
|
28
|
|
|
24
|
|
|
24
|
|
|
24
|
|
All other (1)
|
|
|
573
|
|
|
330
|
|
|
450
|
|
|
554
|
|
|
509
|
|
Total
|
|
|
$
|
14,242
|
|
|
16,800
|
|
|
14,351
|
|
|
13,541
|
|
|
13,792
|
|
(1) Prior periods have been revised to conform with the current
period presentation whereby temporary help is included in contract
services rather than in all other noninterest expense.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
%
|
|
(in millions, except shares)
|
|
|
2018
|
|
|
2017
|
|
|
Change
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,145
|
|
|
|
23,367
|
|
|
|
(22
|
)%
|
|
Interest-earning deposits with banks (1)
|
|
|
184,250
|
|
|
|
192,580
|
|
|
|
(4
|
)
|
|
Total cash, cash equivalents, and restricted cash (1)
|
|
|
202,395
|
|
|
|
215,947
|
|
|
|
(6
|
)
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments (1)
|
|
|
73,550
|
|
|
|
80,025
|
|
|
|
(8
|
)
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
Trading, at fair value (2)
|
|
|
59,866
|
|
|
|
57,624
|
|
|
|
4
|
|
|
Available-for-sale, at fair value (2)
|
|
|
271,656
|
|
|
|
276,407
|
|
|
|
(2
|
)
|
|
Held-to-maturity, at cost
|
|
|
141,446
|
|
|
|
139,335
|
|
|
|
2
|
|
|
Mortgages held for sale
|
|
|
17,944
|
|
|
|
20,070
|
|
|
|
(11
|
)
|
|
Loans held for sale (2)
|
|
|
3,581
|
|
|
|
1,131
|
|
|
|
217
|
|
|
Loans
|
|
|
947,308
|
|
|
|
956,770
|
|
|
|
(1
|
)
|
|
Allowance for loan losses
|
|
|
(10,373
|
)
|
|
|
(11,004
|
)
|
|
|
(6
|
)
|
|
Net loans
|
|
|
936,935
|
|
|
|
945,766
|
|
|
|
(1
|
)
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
15,041
|
|
|
|
13,625
|
|
|
|
10
|
|
|
Amortized
|
|
|
1,411
|
|
|
|
1,424
|
|
|
|
(1
|
)
|
|
Premises and equipment, net
|
|
|
8,828
|
|
|
|
8,847
|
|
|
|
—
|
|
|
Goodwill
|
|
|
26,445
|
|
|
|
26,587
|
|
|
|
(1
|
)
|
|
Derivative assets
|
|
|
11,467
|
|
|
|
12,228
|
|
|
|
(6
|
)
|
|
Equity securities (2)
|
|
|
58,935
|
|
|
|
62,497
|
|
|
|
(6
|
)
|
|
Other assets (2)
|
|
|
85,888
|
|
|
|
90,244
|
|
|
|
(5
|
)
|
|
Total assets
|
|
|
$
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
(2
|
)
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
370,085
|
|
|
|
373,722
|
|
|
|
(1
|
)
|
|
Interest-bearing deposits
|
|
|
933,604
|
|
|
|
962,269
|
|
|
|
(3
|
)
|
|
Total deposits
|
|
|
1,303,689
|
|
|
|
1,335,991
|
|
|
|
(2
|
)
|
|
Short-term borrowings
|
|
|
97,207
|
|
|
|
103,256
|
|
|
|
(6
|
)
|
|
Derivative liabilities
|
|
|
7,883
|
|
|
|
8,796
|
|
|
|
(10
|
)
|
|
Accrued expenses and other liabilities
|
|
|
72,597
|
|
|
|
70,615
|
|
|
|
3
|
|
|
Long-term debt
|
|
|
227,302
|
|
|
|
225,020
|
|
|
|
1
|
|
|
Total liabilities
|
|
|
1,708,678
|
|
|
|
1,743,678
|
|
|
|
(2
|
)
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
26,227
|
|
|
|
25,358
|
|
|
|
3
|
|
|
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
|
|
|
60,399
|
|
|
|
60,893
|
|
|
|
(1
|
)
|
|
Retained earnings
|
|
|
148,728
|
|
|
|
145,263
|
|
|
|
2
|
|
|
Cumulative other comprehensive income (loss)
|
|
|
(4,921
|
)
|
|
|
(2,144
|
)
|
|
|
130
|
|
|
Treasury stock – 607,928,993 shares and 590,194,846 shares
|
|
|
(31,246
|
)
|
|
|
(29,892
|
)
|
|
|
5
|
|
|
Unearned ESOP shares
|
|
|
(2,571
|
)
|
|
|
(1,678
|
)
|
|
|
53
|
|
|
Total Wells Fargo stockholders’ equity
|
|
|
205,752
|
|
|
|
206,936
|
|
|
|
(1
|
)
|
|
Noncontrolling interests
|
|
|
958
|
|
|
|
1,143
|
|
|
|
(16
|
)
|
|
Total equity
|
|
|
206,710
|
|
|
|
208,079
|
|
|
|
(1
|
)
|
|
Total liabilities and equity
|
|
|
$
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
(2
|
)
|
|
(1) Financial information has been revised to reflect the impact
of the adoption of ASU 2016-18 – Statement of Cash Flows (Topic
230): Restricted Cash in which we changed the presentation
of our cash and cash equivalents to include both cash and due from
banks as well as interest-earning deposits with banks, which are
inclusive of any restricted cash.
|
|
(2) Financial information for the prior quarter has been revised
to reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,145
|
|
|
|
23,367
|
|
|
|
19,206
|
|
|
|
20,248
|
|
|
|
19,698
|
|
|
Interest-earning deposits with banks (1)
|
|
|
184,250
|
|
|
|
192,580
|
|
|
|
205,648
|
|
|
|
195,700
|
|
|
|
227,635
|
|
|
Total cash, cash equivalents, and restricted cash (1)
|
|
|
202,395
|
|
|
|
215,947
|
|
|
|
224,854
|
|
|
|
215,948
|
|
|
|
247,333
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments (1)
|
|
|
73,550
|
|
|
|
80,025
|
|
|
|
67,457
|
|
|
|
69,006
|
|
|
|
81,112
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading, at fair value (2)
|
|
|
59,866
|
|
|
|
57,624
|
|
|
|
60,970
|
|
|
|
54,324
|
|
|
|
50,534
|
|
|
Available-for-sale, at fair value (2)
|
|
|
271,656
|
|
|
|
276,407
|
|
|
|
271,317
|
|
|
|
268,174
|
|
|
|
298,405
|
|
|
Held-to-maturity, at cost
|
|
|
141,446
|
|
|
|
139,335
|
|
|
|
142,423
|
|
|
|
140,392
|
|
|
|
108,030
|
|
|
Mortgages held for sale
|
|
|
17,944
|
|
|
|
20,070
|
|
|
|
20,009
|
|
|
|
24,807
|
|
|
|
17,822
|
|
|
Loans held for sale (2)
|
|
|
3,581
|
|
|
|
1,131
|
|
|
|
1,339
|
|
|
|
1,898
|
|
|
|
1,373
|
|
|
Loans
|
|
|
947,308
|
|
|
|
956,770
|
|
|
|
951,873
|
|
|
|
957,423
|
|
|
|
958,405
|
|
|
Allowance for loan losses
|
|
|
(10,373
|
)
|
|
|
(11,004
|
)
|
|
|
(11,078
|
)
|
|
|
(11,073
|
)
|
|
|
(11,168
|
)
|
|
Net loans
|
|
|
936,935
|
|
|
|
945,766
|
|
|
|
940,795
|
|
|
|
946,350
|
|
|
|
947,237
|
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
15,041
|
|
|
|
13,625
|
|
|
|
13,338
|
|
|
|
12,789
|
|
|
|
13,208
|
|
|
Amortized
|
|
|
1,411
|
|
|
|
1,424
|
|
|
|
1,406
|
|
|
|
1,399
|
|
|
|
1,402
|
|
|
Premises and equipment, net
|
|
|
8,828
|
|
|
|
8,847
|
|
|
|
8,449
|
|
|
|
8,403
|
|
|
|
8,320
|
|
|
Goodwill
|
|
|
26,445
|
|
|
|
26,587
|
|
|
|
26,581
|
|
|
|
26,573
|
|
|
|
26,666
|
|
|
Derivative assets
|
|
|
11,467
|
|
|
|
12,228
|
|
|
|
12,580
|
|
|
|
13,273
|
|
|
|
12,564
|
|
|
Equity securities (2)
|
|
|
58,935
|
|
|
|
62,497
|
|
|
|
54,981
|
|
|
|
55,742
|
|
|
|
56,991
|
|
|
Other assets (2)
|
|
|
85,888
|
|
|
|
90,244
|
|
|
|
88,381
|
|
|
|
91,714
|
|
|
|
80,504
|
|
|
Total assets
|
|
|
$
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
1,934,880
|
|
|
|
1,930,792
|
|
|
|
1,951,501
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
|
$
|
370,085
|
|
|
|
373,722
|
|
|
|
366,528
|
|
|
|
372,766
|
|
|
|
365,780
|
|
|
Interest-bearing deposits
|
|
|
933,604
|
|
|
|
962,269
|
|
|
|
940,178
|
|
|
|
933,064
|
|
|
|
959,664
|
|
|
Total deposits
|
|
|
1,303,689
|
|
|
|
1,335,991
|
|
|
|
1,306,706
|
|
|
|
1,305,830
|
|
|
|
1,325,444
|
|
|
Short-term borrowings
|
|
|
97,207
|
|
|
|
103,256
|
|
|
|
93,811
|
|
|
|
95,356
|
|
|
|
94,871
|
|
|
Derivative liabilities
|
|
|
7,883
|
|
|
|
8,796
|
|
|
|
9,497
|
|
|
|
11,636
|
|
|
|
12,461
|
|
|
Accrued expenses and other liabilities
|
|
|
72,597
|
|
|
|
70,615
|
|
|
|
78,993
|
|
|
|
72,799
|
|
|
|
59,629
|
|
|
Long-term debt
|
|
|
227,302
|
|
|
|
225,020
|
|
|
|
239,256
|
|
|
|
239,222
|
|
|
|
256,786
|
|
|
Total liabilities
|
|
|
1,708,678
|
|
|
|
1,743,678
|
|
|
|
1,728,263
|
|
|
|
1,724,843
|
|
|
|
1,749,191
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
26,227
|
|
|
|
25,358
|
|
|
|
25,576
|
|
|
|
25,785
|
|
|
|
25,501
|
|
|
Common stock
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
|
9,136
|
|
|
Additional paid-in capital
|
|
|
60,399
|
|
|
|
60,893
|
|
|
|
60,759
|
|
|
|
60,689
|
|
|
|
60,585
|
|
|
Retained earnings
|
|
|
148,728
|
|
|
|
145,263
|
|
|
|
141,549
|
|
|
|
139,366
|
|
|
|
135,828
|
|
|
Cumulative other comprehensive income (loss)
|
|
|
(4,921
|
)
|
|
|
(2,144
|
)
|
|
|
(1,622
|
)
|
|
|
(2,148
|
)
|
|
|
(3,153
|
)
|
|
Treasury stock
|
|
|
(31,246
|
)
|
|
|
(29,892
|
)
|
|
|
(27,772
|
)
|
|
|
(25,675
|
)
|
|
|
(24,030
|
)
|
|
Unearned ESOP shares
|
|
|
(2,571
|
)
|
|
|
(1,678
|
)
|
|
|
(1,904
|
)
|
|
|
(2,119
|
)
|
|
|
(2,546
|
)
|
|
Total Wells Fargo stockholders’ equity
|
|
|
205,752
|
|
|
|
206,936
|
|
|
|
205,722
|
|
|
|
205,034
|
|
|
|
201,321
|
|
|
Noncontrolling interests
|
|
|
958
|
|
|
|
1,143
|
|
|
|
895
|
|
|
|
915
|
|
|
|
989
|
|
|
Total equity
|
|
|
206,710
|
|
|
|
208,079
|
|
|
|
206,617
|
|
|
|
205,949
|
|
|
|
202,310
|
|
|
Total liabilities and equity
|
|
|
$
|
1,915,388
|
|
|
|
1,951,757
|
|
|
|
1,934,880
|
|
|
|
1,930,792
|
|
|
|
1,951,501
|
|
|
(1) Financial information has been revised to reflect the impact
of the adoption of ASU 2016-18 – Statement of Cash Flows (Topic
230): Restricted Cash in which we changed the presentation
of our cash and cash equivalents to include both cash and due from
banks as well as interest-earning deposits with banks, which are
inclusive of any restricted cash.
|
|
(2) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 – Financial
Instruments – Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. See
pages 17 and 18 for more information.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER TRADING ASSETS AND LIABILITIES
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Trading assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities
|
|
|
$
|
59,866
|
|
|
|
57,624
|
|
|
|
60,970
|
|
|
|
54,324
|
|
|
|
50,534
|
|
|
Equity securities (1)
|
|
|
25,327
|
|
|
|
30,004
|
|
|
|
22,797
|
|
|
|
24,229
|
|
|
|
25,358
|
|
|
Loans held for sale
|
|
|
1,695
|
|
|
|
1,023
|
|
|
|
1,182
|
|
|
|
1,742
|
|
|
|
1,120
|
|
|
Gross trading derivative assets
|
|
|
30,644
|
|
|
|
31,340
|
|
|
|
31,052
|
|
|
|
31,451
|
|
|
|
71,793
|
|
|
Netting (2)
|
|
|
(20,112
|
)
|
|
|
(19,629
|
)
|
|
|
(18,881
|
)
|
|
|
(19,289
|
)
|
|
|
(60,483
|
)
|
|
Total trading derivative assets
|
|
|
10,532
|
|
|
|
11,711
|
|
|
|
12,171
|
|
|
|
12,162
|
|
|
|
11,310
|
|
|
Total trading assets
|
|
|
97,420
|
|
|
|
100,362
|
|
|
|
97,120
|
|
|
|
92,457
|
|
|
|
88,322
|
|
|
Trading liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short sales
|
|
|
23,303
|
|
|
|
18,472
|
|
|
|
19,096
|
|
|
|
16,845
|
|
|
|
19,982
|
|
|
Gross trading derivative liabilities
|
|
|
29,717
|
|
|
|
31,386
|
|
|
|
30,365
|
|
|
|
31,172
|
|
|
|
75,441
|
|
|
Netting (2)
|
|
|
(22,569
|
)
|
|
|
(23,062
|
)
|
|
|
(21,662
|
)
|
|
|
(20,544
|
)
|
|
|
(64,138
|
)
|
|
Total trading derivative liabilities
|
|
|
7,148
|
|
|
|
8,324
|
|
|
|
8,703
|
|
|
|
10,628
|
|
|
|
11,303
|
|
|
Total trading liabilities
|
|
|
$
|
30,451
|
|
|
|
26,796
|
|
|
|
27,799
|
|
|
|
27,473
|
|
|
|
31,285
|
|
|
(1) Financial information for prior quarters has been revised to
reflect the impact of the adoption of ASU 2016-01 and assets held
as economic hedges for our deferred compensation plan obligations
have been reclassified as marketable equity securities not held
for trading.
|
|
(2) Represents balance sheet netting for trading derivative assets
and liability balances, and trading portfolio level counterparty
valuation adjustments.
|
|
|
|
|
|
FIVE QUARTER DEBT SECURITIES
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Trading debt securities
|
|
|
$
|
59,866
|
|
|
57,624
|
|
|
60,970
|
|
|
54,324
|
|
|
50,534
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
6,279
|
|
|
6,319
|
|
|
6,350
|
|
|
17,896
|
|
|
24,625
|
|
Securities of U.S. states and political subdivisions
|
|
|
49,643
|
|
|
51,326
|
|
|
52,774
|
|
|
52,013
|
|
|
52,061
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
156,814
|
|
|
160,219
|
|
|
150,181
|
|
|
135,938
|
|
|
156,966
|
|
Residential and commercial
|
|
|
9,264
|
|
|
9,173
|
|
|
11,046
|
|
|
12,772
|
|
|
14,233
|
|
Total mortgage-backed securities
|
|
|
166,078
|
|
|
169,392
|
|
|
161,227
|
|
|
148,710
|
|
|
171,199
|
|
Other debt securities
|
|
|
49,656
|
|
|
49,370
|
|
|
50,966
|
|
|
49,555
|
|
|
50,520
|
|
Total available-for-sale debt securities
|
|
|
271,656
|
|
|
276,407
|
|
|
271,317
|
|
|
268,174
|
|
|
298,405
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,727
|
|
|
44,720
|
|
|
44,712
|
|
|
44,704
|
|
|
44,697
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,307
|
|
|
6,313
|
|
|
6,321
|
|
|
6,325
|
|
|
6,331
|
|
Federal agency and other mortgage-backed securities (1)
|
|
|
89,748
|
|
|
87,527
|
|
|
90,071
|
|
|
87,525
|
|
|
53,778
|
|
Other debt securities
|
|
|
664
|
|
|
775
|
|
|
1,319
|
|
|
1,838
|
|
|
3,224
|
|
Total held-to-maturity debt securities
|
|
|
141,446
|
|
|
139,335
|
|
|
142,423
|
|
|
140,392
|
|
|
108,030
|
|
Total debt securities
|
|
|
$
|
472,968
|
|
|
473,366
|
|
|
474,710
|
|
|
462,890
|
|
|
456,969
|
|
(1) Predominantly consists of federal agency mortgage-backed
securities.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER EQUITY SECURITIES
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Held for trading at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable equity securities
|
|
|
$
|
25,327
|
|
|
30,004
|
|
|
22,797
|
|
|
24,229
|
|
|
25,358
|
|
Not held for trading:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable equity securities (1)
|
|
|
4,931
|
|
|
4,356
|
|
|
4,348
|
|
|
4,340
|
|
|
4,439
|
|
Nonmarketable equity securities (2)
|
|
|
5,303
|
|
|
4,867
|
|
|
4,523
|
|
|
3,986
|
|
|
3,780
|
|
Total equity securities at fair value
|
|
|
10,234
|
|
|
9,223
|
|
|
8,871
|
|
|
8,326
|
|
|
8,219
|
|
Equity method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIHTC (3)
|
|
|
10,318
|
|
|
10,269
|
|
|
9,884
|
|
|
9,828
|
|
|
9,624
|
|
Private equity
|
|
|
3,840
|
|
|
3,839
|
|
|
3,757
|
|
|
3,740
|
|
|
3,620
|
|
Tax-advantaged renewable energy
|
|
|
1,822
|
|
|
1,950
|
|
|
1,954
|
|
|
1,960
|
|
|
2,013
|
|
New market tax credit and other
|
|
|
268
|
|
|
294
|
|
|
292
|
|
|
295
|
|
|
277
|
|
Total equity method
|
|
|
16,248
|
|
|
16,352
|
|
|
15,887
|
|
|
15,823
|
|
|
15,534
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal bank stock and other at cost (4)
|
|
|
5,780
|
|
|
5,828
|
|
|
6,251
|
|
|
6,247
|
|
|
6,645
|
|
Private equity (5)
|
|
|
1,346
|
|
|
1,090
|
|
|
1,175
|
|
|
1,117
|
|
|
1,235
|
|
Total equity securities not held for trading
|
|
|
33,608
|
|
|
32,493
|
|
|
32,184
|
|
|
31,513
|
|
|
31,633
|
|
Total equity securities
|
|
|
58,935
|
|
|
62,497
|
|
|
54,981
|
|
|
55,742
|
|
|
56,991
|
|
(1) Includes $3.5 billion, $3.7 billion, $3.5 billion, $3.3
billion and $3.3 billion at March 31, 2018, and December 31,
September 30, June 30, and March 31, 2017, respectively, related
to investments held as economic hedges of our deferred
compensation plan obligations.
|
|
(2) Includes $5.0 billion, $4.9 billion, $4.5 billion, $4.0
billion and $3.8 billion at March 31, 2018, and December 31,
September 30, June 30, and March 31, 2017, respectively, related
to investments in which we elected the fair value option.
|
|
(3) Represents low-income housing tax credit investments.
|
|
(4) Includes $5.7 billion, $5.4 billion, $5.8 billion, $5.8
billion and $6.2 billion at March 31, 2018, and December 31,
September 30, June 30, and March 31, 2017, respectively, related
to investments in Federal Reserve Bank and Federal Home Loan Bank
stock.
|
|
(5) Represents nonmarketable equity securities for which we have
elected to account for the investment under the measurement
alternative.
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER LOANS
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
334,678
|
|
|
333,125
|
|
|
327,944
|
|
|
331,113
|
|
|
329,252
|
|
Real estate mortgage
|
|
|
125,543
|
|
|
126,599
|
|
|
128,475
|
|
|
130,277
|
|
|
131,532
|
|
Real estate construction
|
|
|
23,882
|
|
|
24,279
|
|
|
24,520
|
|
|
25,337
|
|
|
25,064
|
|
Lease financing
|
|
|
19,293
|
|
|
19,385
|
|
|
19,211
|
|
|
19,174
|
|
|
19,156
|
|
Total commercial
|
|
|
503,396
|
|
|
503,388
|
|
|
500,150
|
|
|
505,901
|
|
|
505,004
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
282,658
|
|
|
284,054
|
|
|
280,173
|
|
|
276,566
|
|
|
274,633
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
37,920
|
|
|
39,713
|
|
|
41,152
|
|
|
42,747
|
|
|
44,333
|
|
Credit card
|
|
|
36,103
|
|
|
37,976
|
|
|
36,249
|
|
|
35,305
|
|
|
34,742
|
|
Automobile
|
|
|
49,554
|
|
|
53,371
|
|
|
55,455
|
|
|
57,958
|
|
|
60,408
|
|
Other revolving credit and installment
|
|
|
37,677
|
|
|
38,268
|
|
|
38,694
|
|
|
38,946
|
|
|
39,285
|
|
Total consumer
|
|
|
443,912
|
|
|
453,382
|
|
|
451,723
|
|
|
451,522
|
|
|
453,401
|
|
Total loans (1)
|
|
|
$
|
947,308
|
|
|
956,770
|
|
|
951,873
|
|
|
957,423
|
|
|
958,405
|
|
(1) Includes $10.7 billion, $12.8 billion, $13.6 billion, $14.3
billion, and $15.7 billion of purchased credit-impaired (PCI)
loans at March 31, 2018 and December 31, September 30, June 30,
and March 31, 2017, respectively.
|
|
|
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign loan
portfolio is commercial loans. Loans are classified as foreign primarily
based on whether the borrower's primary address is outside of the United
States. The following table presents total commercial foreign loans
outstanding by class of financing receivable.
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
59,696
|
|
|
60,106
|
|
|
58,570
|
|
|
57,825
|
|
|
56,987
|
|
Real estate mortgage
|
|
|
8,082
|
|
|
8,033
|
|
|
8,032
|
|
|
8,359
|
|
|
8,206
|
|
Real estate construction
|
|
|
668
|
|
|
655
|
|
|
647
|
|
|
585
|
|
|
471
|
|
Lease financing
|
|
|
1,077
|
|
|
1,126
|
|
|
1,141
|
|
|
1,092
|
|
|
986
|
|
Total commercial foreign loans
|
|
|
$
|
69,523
|
|
|
69,920
|
|
|
68,390
|
|
|
67,861
|
|
|
66,650
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
2017
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
1,516
|
|
|
|
1,899
|
|
|
2,397
|
|
|
2,632
|
|
|
2,898
|
|
Real estate mortgage
|
|
|
755
|
|
|
|
628
|
|
|
593
|
|
|
630
|
|
|
672
|
|
Real estate construction
|
|
|
45
|
|
|
|
37
|
|
|
38
|
|
|
34
|
|
|
40
|
|
Lease financing
|
|
|
93
|
|
|
|
76
|
|
|
81
|
|
|
89
|
|
|
96
|
|
Total commercial
|
|
|
2,409
|
|
|
|
2,640
|
|
|
3,109
|
|
|
3,385
|
|
|
3,706
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
4,053
|
|
|
|
4,122
|
|
|
4,213
|
|
|
4,413
|
|
|
4,743
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,087
|
|
|
|
1,086
|
|
|
1,101
|
|
|
1,095
|
|
|
1,153
|
|
Automobile
|
|
|
117
|
|
|
|
130
|
|
|
137
|
|
|
104
|
|
|
101
|
|
Other revolving credit and installment
|
|
|
53
|
|
|
|
58
|
|
|
59
|
|
|
59
|
|
|
56
|
|
Total consumer
|
|
|
5,310
|
|
|
|
5,396
|
|
|
5,510
|
|
|
5,671
|
|
|
6,053
|
|
Total nonaccrual loans (1)(2)(3)
|
|
|
$
|
7,719
|
|
|
|
8,036
|
|
|
8,619
|
|
|
9,056
|
|
|
9,759
|
|
As a percentage of total loans
|
|
|
0.81
|
%
|
|
|
0.84
|
|
|
0.91
|
|
|
0.95
|
|
|
1.02
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
$
|
103
|
|
|
|
120
|
|
|
137
|
|
|
149
|
|
|
179
|
|
Non-government insured/guaranteed
|
|
|
468
|
|
|
|
522
|
|
|
569
|
|
|
632
|
|
|
726
|
|
Total foreclosed assets
|
|
|
571
|
|
|
|
642
|
|
|
706
|
|
|
781
|
|
|
905
|
|
Total nonperforming assets
|
|
|
$
|
8,290
|
|
|
|
8,678
|
|
|
9,325
|
|
|
9,837
|
|
|
10,664
|
|
As a percentage of total loans
|
|
|
0.88
|
%
|
|
|
0.91
|
|
|
0.98
|
|
|
1.03
|
|
|
1.11
|
|
(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) are not placed on nonaccrual
status because they are insured or guaranteed.
|
|
|
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Total (excluding PCI)(1):
|
|
|
$
|
10,753
|
|
|
11,997
|
|
|
10,227
|
|
|
9,716
|
|
|
10,525
|
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
9,786
|
|
|
10,934
|
|
|
9,266
|
|
|
8,873
|
|
|
9,585
|
|
Total, not government insured/guaranteed
|
|
|
$
|
967
|
|
|
1,063
|
|
|
961
|
|
|
843
|
|
|
940
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
40
|
|
|
26
|
|
|
27
|
|
|
42
|
|
|
88
|
|
Real estate mortgage
|
|
|
23
|
|
|
23
|
|
|
11
|
|
|
2
|
|
|
11
|
|
Real estate construction
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
3
|
|
Total commercial
|
|
|
64
|
|
|
49
|
|
|
38
|
|
|
54
|
|
|
102
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
164
|
|
|
219
|
|
|
190
|
|
|
145
|
|
|
149
|
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
48
|
|
|
60
|
|
|
49
|
|
|
44
|
|
|
42
|
|
Credit card
|
|
|
473
|
|
|
492
|
|
|
475
|
|
|
411
|
|
|
453
|
|
Automobile
|
|
|
113
|
|
|
143
|
|
|
111
|
|
|
91
|
|
|
79
|
|
Other revolving credit and installment
|
|
|
105
|
|
|
100
|
|
|
98
|
|
|
98
|
|
|
115
|
|
Total consumer
|
|
|
903
|
|
|
1,014
|
|
|
923
|
|
|
789
|
|
|
838
|
|
Total, not government insured/guaranteed
|
|
|
$
|
967
|
|
|
1,063
|
|
|
961
|
|
|
843
|
|
|
940
|
|
(1) PCI loans totaled $1.0 billion, $1.4 billion, $1.4 billion,
$1.5 billion and $1.8 billion, at March 31, 2018 and December 31,
September 30, June 30, and March 31, 2017, 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.
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
|
|
|
|
|
|
ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
(in millions)
|
|
|
2018
|
|
|
2009-2017
|
|
Balance, beginning of period
|
|
|
$
|
8,887
|
|
|
|
10,447
|
|
|
Change in accretable yield due to acquisitions
|
|
|
—
|
|
|
|
161
|
|
|
Accretion into interest income (1)
|
|
|
(314
|
)
|
|
|
(16,983
|
)
|
|
Accretion into noninterest income due to sales (2)
|
|
|
(643
|
)
|
|
|
(801
|
)
|
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (3)
|
|
|
340
|
|
|
|
11,597
|
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (4)
|
|
|
(1,406
|
)
|
|
|
4,466
|
|
|
Balance, end of period
|
|
|
$
|
6,864
|
|
|
|
8,887
|
|
|
(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 March 31, 2018, our carrying value for PCI loans totaled
$10.7 billion and the remainder of nonaccretable difference
established in purchase accounting totaled $293 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
|
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Balance, beginning of quarter
|
|
|
$
|
11,960
|
|
|
|
12,109
|
|
|
|
12,146
|
|
|
|
12,287
|
|
|
|
12,540
|
|
|
Provision for credit losses
|
|
|
191
|
|
|
|
651
|
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
|
Interest income on certain impaired loans (1)
|
|
|
(43
|
)
|
|
|
(49
|
)
|
|
|
(43
|
)
|
|
|
(46
|
)
|
|
|
(48
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(164
|
)
|
|
|
(181
|
)
|
|
|
(194
|
)
|
|
|
(161
|
)
|
|
|
(253
|
)
|
|
Real estate mortgage
|
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
(21
|
)
|
|
|
(8
|
)
|
|
|
(5
|
)
|
|
Real estate construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Lease financing
|
|
|
(17
|
)
|
|
|
(14
|
)
|
|
|
(11
|
)
|
|
|
(13
|
)
|
|
|
(7
|
)
|
|
Total commercial
|
|
|
(183
|
)
|
|
|
(199
|
)
|
|
|
(226
|
)
|
|
|
(182
|
)
|
|
|
(265
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(41
|
)
|
|
|
(49
|
)
|
|
|
(67
|
)
|
|
|
(55
|
)
|
|
|
(69
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(47
|
)
|
|
|
(54
|
)
|
|
|
(70
|
)
|
|
|
(62
|
)
|
|
|
(93
|
)
|
|
Credit card
|
|
|
(405
|
)
|
|
|
(398
|
)
|
|
|
(337
|
)
|
|
|
(379
|
)
|
|
|
(367
|
)
|
|
Automobile
|
|
|
(300
|
)
|
|
|
(261
|
)
|
|
|
(274
|
)
|
|
|
(212
|
)
|
|
|
(255
|
)
|
|
Other revolving credit and installment
|
|
|
(180
|
)
|
|
|
(169
|
)
|
|
|
(170
|
)
|
|
|
(185
|
)
|
|
|
(189
|
)
|
|
Total consumer
|
|
|
(973
|
)
|
|
|
(931
|
)
|
|
|
(918
|
)
|
|
|
(893
|
)
|
|
|
(973
|
)
|
|
Total loan charge-offs
|
|
|
(1,156
|
)
|
|
|
(1,130
|
)
|
|
|
(1,144
|
)
|
|
|
(1,075
|
)
|
|
|
(1,238
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
79
|
|
|
|
63
|
|
|
|
69
|
|
|
|
83
|
|
|
|
82
|
|
|
Real estate mortgage
|
|
|
17
|
|
|
|
14
|
|
|
|
24
|
|
|
|
14
|
|
|
|
30
|
|
|
Real estate construction
|
|
|
4
|
|
|
|
3
|
|
|
|
15
|
|
|
|
4
|
|
|
|
8
|
|
|
Lease financing
|
|
|
5
|
|
|
|
4
|
|
|
|
5
|
|
|
|
6
|
|
|
|
2
|
|
|
Total commercial
|
|
|
105
|
|
|
|
84
|
|
|
|
113
|
|
|
|
107
|
|
|
|
122
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
59
|
|
|
|
72
|
|
|
|
83
|
|
|
|
71
|
|
|
|
62
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
55
|
|
|
|
61
|
|
|
|
69
|
|
|
|
66
|
|
|
|
70
|
|
|
Credit card
|
|
|
73
|
|
|
|
62
|
|
|
|
60
|
|
|
|
59
|
|
|
|
58
|
|
|
Automobile
|
|
|
92
|
|
|
|
73
|
|
|
|
72
|
|
|
|
86
|
|
|
|
88
|
|
|
Other revolving credit and installment
|
|
|
31
|
|
|
|
27
|
|
|
|
30
|
|
|
|
31
|
|
|
|
33
|
|
|
Total consumer
|
|
|
310
|
|
|
|
295
|
|
|
|
314
|
|
|
|
313
|
|
|
|
311
|
|
|
Total loan recoveries
|
|
|
415
|
|
|
|
379
|
|
|
|
427
|
|
|
|
420
|
|
|
|
433
|
|
|
Net loan charge-offs
|
|
|
(741
|
)
|
|
|
(751
|
)
|
|
|
(717
|
)
|
|
|
(655
|
)
|
|
|
(805
|
)
|
|
Other
|
|
|
(54
|
)
|
|
|
—
|
|
|
|
6
|
|
|
|
5
|
|
|
|
(5
|
)
|
|
Balance, end of quarter
|
|
|
$
|
11,313
|
|
|
|
11,960
|
|
|
|
12,109
|
|
|
|
12,146
|
|
|
|
12,287
|
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
|
$
|
10,373
|
|
|
|
11,004
|
|
|
|
11,078
|
|
|
|
11,073
|
|
|
|
11,168
|
|
|
Allowance for unfunded credit commitments
|
|
|
940
|
|
|
|
956
|
|
|
|
1,031
|
|
|
|
1,073
|
|
|
|
1,119
|
|
|
Allowance for credit losses
|
|
|
$
|
11,313
|
|
|
|
11,960
|
|
|
|
12,109
|
|
|
|
12,146
|
|
|
|
12,287
|
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.32
|
%
|
|
|
0.31
|
|
|
|
0.30
|
|
|
|
0.27
|
|
|
|
0.34
|
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.10
|
|
|
|
1.15
|
|
|
|
1.16
|
|
|
|
1.16
|
|
|
|
1.17
|
|
|
Nonaccrual loans
|
|
|
134
|
|
|
|
137
|
|
|
|
129
|
|
|
|
122
|
|
|
|
114
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
125
|
|
|
|
127
|
|
|
|
119
|
|
|
|
113
|
|
|
|
105
|
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.19
|
|
|
|
1.25
|
|
|
|
1.27
|
|
|
|
1.27
|
|
|
|
1.28
|
|
|
Nonaccrual loans
|
|
|
147
|
|
|
|
149
|
|
|
|
141
|
|
|
|
134
|
|
|
|
126
|
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
136
|
|
|
|
138
|
|
|
|
130
|
|
|
|
123
|
|
|
|
115
|
|
|
(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)
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions, except ratios)
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Tangible book value per common share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
|
|
$
|
206,710
|
|
|
|
208,079
|
|
|
|
206,617
|
|
|
|
205,949
|
|
|
|
202,310
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(26,227
|
)
|
|
|
(25,358
|
)
|
|
|
(25,576
|
)
|
|
|
(25,785
|
)
|
|
|
(25,501
|
)
|
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(146
|
)
|
|
|
(122
|
)
|
|
|
(130
|
)
|
|
|
(136
|
)
|
|
|
(157
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
|
2,571
|
|
|
|
1,678
|
|
|
|
1,904
|
|
|
|
2,119
|
|
|
|
2,546
|
|
|
Noncontrolling interests
|
|
|
|
|
|
(958
|
)
|
|
|
(1,143
|
)
|
|
|
(895
|
)
|
|
|
(915
|
)
|
|
|
(989
|
)
|
|
Total common stockholders' equity
|
|
|
(A)
|
|
|
181,950
|
|
|
|
183,134
|
|
|
|
181,920
|
|
|
|
181,232
|
|
|
|
178,209
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,445
|
)
|
|
|
(26,587
|
)
|
|
|
(26,581
|
)
|
|
|
(26,573
|
)
|
|
|
(26,666
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(1,357
|
)
|
|
|
(1,624
|
)
|
|
|
(1,913
|
)
|
|
|
(2,147
|
)
|
|
|
(2,449
|
)
|
|
Other assets (2)
|
|
|
|
|
|
(2,388
|
)
|
|
|
(2,155
|
)
|
|
|
(2,282
|
)
|
|
|
(2,268
|
)
|
|
|
(2,121
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
|
918
|
|
|
|
962
|
|
|
|
1,550
|
|
|
|
1,624
|
|
|
|
1,698
|
|
|
Tangible common equity
|
|
|
(B)
|
|
|
$
|
152,678
|
|
|
|
153,730
|
|
|
|
152,694
|
|
|
|
151,868
|
|
|
|
148,671
|
|
|
Common shares outstanding
|
|
|
(C)
|
|
|
4,873.9
|
|
|
|
4,891.6
|
|
|
|
4,927.9
|
|
|
|
4,966.8
|
|
|
|
4,996.7
|
|
|
Book value per common share
|
|
|
(A)/(C)
|
|
|
$
|
37.33
|
|
|
|
37.44
|
|
|
|
36.92
|
|
|
|
36.49
|
|
|
|
35.67
|
|
|
Tangible book value per common share
|
|
|
(B)/(C)
|
|
|
31.33
|
|
|
|
31.43
|
|
|
|
30.99
|
|
|
|
30.58
|
|
|
|
29.75
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions, except ratios)
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Return on average tangible common equity (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock
|
|
|
(A)
|
|
|
$
|
5,533
|
|
|
|
5,740
|
|
|
|
4,131
|
|
|
|
5,450
|
|
|
|
5,233
|
|
|
Average total equity
|
|
|
|
|
|
206,189
|
|
|
|
207,413
|
|
|
|
207,723
|
|
|
|
205,755
|
|
|
|
201,559
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(26,157
|
)
|
|
|
(25,569
|
)
|
|
|
(25,780
|
)
|
|
|
(25,849
|
)
|
|
|
(25,163
|
)
|
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(153
|
)
|
|
|
(129
|
)
|
|
|
(136
|
)
|
|
|
(144
|
)
|
|
|
(146
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
|
2,508
|
|
|
|
1,896
|
|
|
|
2,114
|
|
|
|
2,366
|
|
|
|
2,198
|
|
|
Noncontrolling interests
|
|
|
|
|
|
(997
|
)
|
|
|
(998
|
)
|
|
|
(926
|
)
|
|
|
(910
|
)
|
|
|
(957
|
)
|
|
Average common stockholders’ equity
|
|
|
(B)
|
|
|
181,390
|
|
|
|
182,613
|
|
|
|
182,995
|
|
|
|
181,218
|
|
|
|
177,491
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26,516
|
)
|
|
|
(26,579
|
)
|
|
|
(26,600
|
)
|
|
|
(26,664
|
)
|
|
|
(26,673
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(1,489
|
)
|
|
|
(1,767
|
)
|
|
|
(2,056
|
)
|
|
|
(2,303
|
)
|
|
|
(2,588
|
)
|
|
Other assets (2)
|
|
|
|
|
|
(2,233
|
)
|
|
|
(2,245
|
)
|
|
|
(2,231
|
)
|
|
|
(2,160
|
)
|
|
|
(2,095
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
|
933
|
|
|
|
1,332
|
|
|
|
1,579
|
|
|
|
1,648
|
|
|
|
1,722
|
|
|
Average tangible common equity
|
|
|
(C)
|
|
|
$
|
152,085
|
|
|
|
153,354
|
|
|
|
153,687
|
|
|
|
151,739
|
|
|
|
147,857
|
|
|
Return on average common stockholders' equity (ROE) (annualized)
|
|
|
(A)/(B)
|
|
|
12.37
|
%
|
|
|
12.47
|
|
|
|
8.96
|
|
|
|
12.06
|
|
|
|
11.96
|
|
|
Return on average tangible common equity (ROTCE) (annualized)
|
|
|
(A)/(C)
|
|
|
14.75
|
|
|
|
14.85
|
|
|
|
10.66
|
|
|
|
14.41
|
|
|
|
14.35
|
|
|
(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 securities 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 securities.
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in billions, except ratio)
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Total equity
|
|
|
|
|
|
$
|
206.7
|
|
|
|
208.1
|
|
|
|
206.6
|
|
|
|
205.9
|
|
|
|
202.3
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
(26.2
|
)
|
|
|
(25.4
|
)
|
|
|
(25.6
|
)
|
|
|
(25.8
|
)
|
|
|
(25.5
|
)
|
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
Unearned ESOP shares
|
|
|
|
|
|
2.6
|
|
|
|
1.7
|
|
|
|
1.9
|
|
|
|
2.1
|
|
|
|
2.5
|
|
|
Noncontrolling interests
|
|
|
|
|
|
(1.0
|
)
|
|
|
(1.1
|
)
|
|
|
(0.9
|
)
|
|
|
(0.9
|
)
|
|
|
(1.0
|
)
|
|
Total common stockholders' equity
|
|
|
|
|
|
182.0
|
|
|
|
183.2
|
|
|
|
181.9
|
|
|
|
181.2
|
|
|
|
178.1
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
|
(26.4
|
)
|
|
|
(26.6
|
)
|
|
|
(26.6
|
)
|
|
|
(26.6
|
)
|
|
|
(26.7
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
|
(1.4
|
)
|
|
|
(1.6
|
)
|
|
|
(1.9
|
)
|
|
|
(2.1
|
)
|
|
|
(2.4
|
)
|
|
Other assets (2)
|
|
|
|
|
|
(2.4
|
)
|
|
|
(2.2
|
)
|
|
|
(2.3
|
)
|
|
|
(2.2
|
)
|
|
|
(2.1
|
)
|
|
Applicable deferred taxes (3)
|
|
|
|
|
|
0.9
|
|
|
|
1.0
|
|
|
|
1.6
|
|
|
|
1.6
|
|
|
|
1.7
|
|
|
Investment in certain subsidiaries and other
|
|
|
|
|
|
0.4
|
|
|
|
0.2
|
|
|
|
(0.1
|
)
|
|
|
(0.2
|
)
|
|
|
(0.1
|
)
|
|
Common Equity Tier 1 (Fully Phased-In) under Basel III
|
|
|
(A)
|
|
|
153.1
|
|
|
|
154.0
|
|
|
|
152.6
|
|
|
|
151.7
|
|
|
|
148.5
|
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)
|
|
|
(B)
|
|
|
$
|
1,280.9
|
|
|
|
1,285.6
|
|
|
|
1,292.8
|
|
|
|
1,310.5
|
|
|
|
1,324.5
|
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (5)
|
|
|
(A)/(B)
|
|
|
12.0
|
%
|
|
|
12.0
|
|
|
|
11.8
|
|
|
|
11.6
|
|
|
|
11.2
|
|
|
(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 securities.
|
|
(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 March 31, 2018, is subject to
detailed analysis of considerable data, our CET1 ratio at that
date has been estimated using the Basel III definition of capital
under the Basel III Standardized Approach RWAs. The capital ratio
for December 31, September 30, June 30 and March 31, 2017, was
calculated under the Basel III Standardized Approach RWAs.
|
|
(5) The Company’s March 31, 2018, RWAs and capital ratio are
preliminary estimates.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
OPERATING SEGMENT RESULTS (1)
|
|
(income/expense in millions,
average balances in billions)
|
|
|
Community
Banking
|
|
|
Wholesale
Banking
|
|
|
Wealth and
Investment
Management
|
|
|
Other (2)
|
|
|
Consolidated
Company
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Quarter ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
7,195
|
|
|
7,132
|
|
|
4,532
|
|
|
|
4,681
|
|
|
|
1,112
|
|
|
|
1,141
|
|
|
|
(601
|
)
|
|
|
(630
|
)
|
|
|
12,238
|
|
|
12,324
|
|
Provision (reversal of provision) for credit losses
|
|
|
218
|
|
|
646
|
|
|
(20
|
)
|
|
|
(43
|
)
|
|
|
(6
|
)
|
|
|
(4
|
)
|
|
|
(1
|
)
|
|
|
6
|
|
|
|
191
|
|
|
605
|
|
Noninterest income
|
|
|
4,635
|
|
|
4,691
|
|
|
2,747
|
|
|
|
2,896
|
|
|
|
3,130
|
|
|
|
3,116
|
|
|
|
(816
|
)
|
|
|
(772
|
)
|
|
|
9,696
|
|
|
9,931
|
|
Noninterest expense
|
|
|
7,902
|
|
|
7,281
|
|
|
3,978
|
|
|
|
4,167
|
|
|
|
3,290
|
|
|
|
3,204
|
|
|
|
(928
|
)
|
|
|
(860
|
)
|
|
|
14,242
|
|
|
13,792
|
|
Income (loss) before income tax expense (benefit)
|
|
|
3,710
|
|
|
3,896
|
|
|
3,321
|
|
|
|
3,453
|
|
|
|
958
|
|
|
|
1,057
|
|
|
|
(488
|
)
|
|
|
(548
|
)
|
|
|
7,501
|
|
|
7,858
|
|
Income tax expense (benefit)
|
|
|
809
|
|
|
982
|
|
|
448
|
|
|
|
973
|
|
|
|
239
|
|
|
|
386
|
|
|
|
(122
|
)
|
|
|
(208
|
)
|
|
|
1,374
|
|
|
2,133
|
|
Net income (loss) before noncontrolling interests
|
|
|
2,901
|
|
|
2,914
|
|
|
2,873
|
|
|
|
2,480
|
|
|
|
719
|
|
|
|
671
|
|
|
|
(366
|
)
|
|
|
(340
|
)
|
|
|
6,127
|
|
|
5,725
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
188
|
|
|
90
|
|
|
(2
|
)
|
|
|
(5
|
)
|
|
|
5
|
|
|
|
6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
191
|
|
|
91
|
|
Net income (loss)
|
|
|
$
|
2,713
|
|
|
2,824
|
|
|
2,875
|
|
|
|
2,485
|
|
|
|
714
|
|
|
|
665
|
|
|
|
(366
|
)
|
|
|
(340
|
)
|
|
|
5,936
|
|
|
5,634
|
|
|
|
Average loans
|
|
|
$
|
470.5
|
|
|
480.7
|
|
|
465.1
|
|
|
|
468.3
|
|
|
|
73.9
|
|
|
|
70.7
|
|
|
|
(58.5
|
)
|
|
|
(56.1
|
)
|
|
|
951.0
|
|
|
963.6
|
|
Average assets
|
|
|
1,061.9
|
|
|
1,095.8
|
|
|
829.2
|
|
|
|
810.5
|
|
|
|
84.2
|
|
|
|
81.8
|
|
|
|
(59.4
|
)
|
|
|
(57.1
|
)
|
|
|
1,915.9
|
|
|
1,931.0
|
|
Average deposits
|
|
|
747.5
|
|
|
717.8
|
|
|
446.0
|
|
|
|
465.3
|
|
|
|
177.9
|
|
|
|
197.5
|
|
|
|
(74.2
|
)
|
|
|
(81.4
|
)
|
|
|
1,297.2
|
|
|
1,299.2
|
|
|
|
(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. Effective first
quarter 2018, assets and liabilities receive a funding charge or
credit that considers interest rate risk, liquidity risk, and
other product characteristics on a more granular level. This
methodology change affects results across all three of our
reportable operating segments and prior period operating segment
results have been revised to reflect this methodology change. Our
previously reported consolidated financial results were not
impacted by the methodology change; however, in connection with
the adoption of ASU 2016-01 in first quarter 2018, certain
reclassifications will occur within noninterest income.
|
|
(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
as well as interest credits for any funding of a segment available
to be provided to other segments. The cost of liabilities includes
actual interest expense on segment liabilities as well as funding
charges for any funding provided from other segments.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(income/expense in millions, average balances in billions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
7,195
|
|
|
|
7,239
|
|
|
|
7,154
|
|
|
|
7,133
|
|
|
|
7,132
|
|
|
Provision for credit losses
|
|
|
218
|
|
|
|
636
|
|
|
|
650
|
|
|
|
623
|
|
|
|
646
|
|
|
Noninterest income
|
|
|
4,635
|
|
|
|
4,481
|
|
|
|
4,366
|
|
|
|
4,822
|
|
|
|
4,691
|
|
|
Noninterest expense
|
|
|
7,902
|
|
|
|
10,216
|
|
|
|
7,852
|
|
|
|
7,266
|
|
|
|
7,281
|
|
|
Income before income tax expense
|
|
|
3,710
|
|
|
|
868
|
|
|
|
3,018
|
|
|
|
4,066
|
|
|
|
3,896
|
|
|
Income tax expense (benefit)
|
|
|
809
|
|
|
|
(2,682
|
)
|
|
|
1,079
|
|
|
|
1,255
|
|
|
|
982
|
|
|
Net income before noncontrolling interests
|
|
|
2,901
|
|
|
|
3,550
|
|
|
|
1,939
|
|
|
|
2,811
|
|
|
|
2,914
|
|
|
Less: Net income from noncontrolling interests
|
|
|
188
|
|
|
|
78
|
|
|
|
62
|
|
|
|
46
|
|
|
|
90
|
|
|
Segment net income
|
|
|
$
|
2,713
|
|
|
|
3,472
|
|
|
|
1,877
|
|
|
|
2,765
|
|
|
|
2,824
|
|
|
Average loans
|
|
|
$
|
470.5
|
|
|
|
473.2
|
|
|
|
473.7
|
|
|
|
475.1
|
|
|
|
480.7
|
|
|
Average assets
|
|
|
1,061.9
|
|
|
|
1,073.2
|
|
|
|
1,089.6
|
|
|
|
1,083.6
|
|
|
|
1,095.8
|
|
|
Average deposits
|
|
|
747.5
|
|
|
|
738.3
|
|
|
|
734.6
|
|
|
|
727.7
|
|
|
|
717.8
|
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
4,532
|
|
|
|
4,557
|
|
|
|
4,763
|
|
|
|
4,809
|
|
|
|
4,681
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
(20
|
)
|
|
|
20
|
|
|
|
69
|
|
|
|
(65
|
)
|
|
|
(43
|
)
|
|
Noninterest income
|
|
|
2,747
|
|
|
|
2,883
|
|
|
|
2,741
|
|
|
|
2,670
|
|
|
|
2,896
|
|
|
Noninterest expense
|
|
|
3,978
|
|
|
|
4,187
|
|
|
|
4,234
|
|
|
|
4,036
|
|
|
|
4,167
|
|
|
Income before income tax expense
|
|
|
3,321
|
|
|
|
3,233
|
|
|
|
3,201
|
|
|
|
3,508
|
|
|
|
3,453
|
|
|
Income tax expense
|
|
|
448
|
|
|
|
854
|
|
|
|
894
|
|
|
|
775
|
|
|
|
973
|
|
|
Net income before noncontrolling interests
|
|
|
2,873
|
|
|
|
2,379
|
|
|
|
2,307
|
|
|
|
2,733
|
|
|
|
2,480
|
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
(2
|
)
|
|
|
6
|
|
|
|
(7
|
)
|
|
|
(9
|
)
|
|
|
(5
|
)
|
|
Segment net income
|
|
|
$
|
2,875
|
|
|
|
2,373
|
|
|
|
2,314
|
|
|
|
2,742
|
|
|
|
2,485
|
|
|
Average loans
|
|
|
$
|
465.1
|
|
|
|
463.5
|
|
|
|
463.7
|
|
|
|
466.9
|
|
|
|
468.3
|
|
|
Average assets
|
|
|
829.2
|
|
|
|
837.2
|
|
|
|
824.2
|
|
|
|
818.8
|
|
|
|
810.5
|
|
|
Average deposits
|
|
|
446.0
|
|
|
|
465.7
|
|
|
|
463.4
|
|
|
|
462.4
|
|
|
|
465.3
|
|
|
WEALTH AND INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
1,112
|
|
|
|
1,152
|
|
|
|
1,177
|
|
|
|
1,171
|
|
|
|
1,141
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
(6
|
)
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
7
|
|
|
|
(4
|
)
|
|
Noninterest income
|
|
|
3,130
|
|
|
|
3,181
|
|
|
|
3,079
|
|
|
|
3,055
|
|
|
|
3,116
|
|
|
Noninterest expense
|
|
|
3,290
|
|
|
|
3,246
|
|
|
|
3,102
|
|
|
|
3,071
|
|
|
|
3,204
|
|
|
Income before income tax expense
|
|
|
958
|
|
|
|
1,094
|
|
|
|
1,155
|
|
|
|
1,148
|
|
|
|
1,057
|
|
|
Income tax expense
|
|
|
239
|
|
|
|
413
|
|
|
|
433
|
|
|
|
436
|
|
|
|
386
|
|
|
Net income before noncontrolling interests
|
|
|
719
|
|
|
|
681
|
|
|
|
722
|
|
|
|
712
|
|
|
|
671
|
|
|
Less: Net income from noncontrolling interests
|
|
|
5
|
|
|
|
6
|
|
|
|
3
|
|
|
|
1
|
|
|
|
6
|
|
|
Segment net income
|
|
|
$
|
714
|
|
|
|
675
|
|
|
|
719
|
|
|
|
711
|
|
|
|
665
|
|
|
Average loans
|
|
|
$
|
73.9
|
|
|
|
72.9
|
|
|
|
72.4
|
|
|
|
71.7
|
|
|
|
70.7
|
|
|
Average assets
|
|
|
84.2
|
|
|
|
83.7
|
|
|
|
83.2
|
|
|
|
82.4
|
|
|
|
81.8
|
|
|
Average deposits
|
|
|
177.9
|
|
|
|
184.1
|
|
|
|
184.4
|
|
|
|
190.1
|
|
|
|
197.5
|
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
(601
|
)
|
|
|
(635
|
)
|
|
|
(645
|
)
|
|
|
(642
|
)
|
|
|
(630
|
)
|
|
Provision (reversal of provision) for credit losses
|
|
|
(1
|
)
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
6
|
|
|
Noninterest income
|
|
|
(816
|
)
|
|
|
(808
|
)
|
|
|
(786
|
)
|
|
|
(783
|
)
|
|
|
(772
|
)
|
|
Noninterest expense
|
|
|
(928
|
)
|
|
|
(849
|
)
|
|
|
(837
|
)
|
|
|
(832
|
)
|
|
|
(860
|
)
|
|
Loss before income tax benefit
|
|
|
(488
|
)
|
|
|
(596
|
)
|
|
|
(593
|
)
|
|
|
(583
|
)
|
|
|
(548
|
)
|
|
Income tax benefit
|
|
|
(122
|
)
|
|
|
(227
|
)
|
|
|
(225
|
)
|
|
|
(221
|
)
|
|
|
(208
|
)
|
|
Net loss before noncontrolling interests
|
|
|
(366
|
)
|
|
|
(369
|
)
|
|
|
(368
|
)
|
|
|
(362
|
)
|
|
|
(340
|
)
|
|
Less: Net income from noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other net loss
|
|
|
$
|
(366
|
)
|
|
|
(369
|
)
|
|
|
(368
|
)
|
|
|
(362
|
)
|
|
|
(340
|
)
|
|
Average loans
|
|
|
$
|
(58.5
|
)
|
|
|
(57.8
|
)
|
|
|
(57.5
|
)
|
|
|
(56.8
|
)
|
|
|
(56.1
|
)
|
|
Average assets
|
|
|
(59.4
|
)
|
|
|
(58.8
|
)
|
|
|
(58.5
|
)
|
|
|
(57.8
|
)
|
|
|
(57.1
|
)
|
|
Average deposits
|
|
|
(74.2
|
)
|
|
|
(76.5
|
)
|
|
|
(76.0
|
)
|
|
|
(79.0
|
)
|
|
|
(81.4
|
)
|
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
|
$
|
12,238
|
|
|
|
12,313
|
|
|
|
12,449
|
|
|
|
12,471
|
|
|
|
12,324
|
|
|
Provision for credit losses
|
|
|
191
|
|
|
|
651
|
|
|
|
717
|
|
|
|
555
|
|
|
|
605
|
|
|
Noninterest income
|
|
|
9,696
|
|
|
|
9,737
|
|
|
|
9,400
|
|
|
|
9,764
|
|
|
|
9,931
|
|
|
Noninterest expense
|
|
|
14,242
|
|
|
|
16,800
|
|
|
|
14,351
|
|
|
|
13,541
|
|
|
|
13,792
|
|
|
Income before income tax expense
|
|
|
7,501
|
|
|
|
4,599
|
|
|
|
6,781
|
|
|
|
8,139
|
|
|
|
7,858
|
|
|
Income tax expense (benefit)
|
|
|
1,374
|
|
|
|
(1,642
|
)
|
|
|
2,181
|
|
|
|
2,245
|
|
|
|
2,133
|
|
|
Net income before noncontrolling interests
|
|
|
6,127
|
|
|
|
6,241
|
|
|
|
4,600
|
|
|
|
5,894
|
|
|
|
5,725
|
|
|
Less: Net income from noncontrolling interests
|
|
|
191
|
|
|
|
90
|
|
|
|
58
|
|
|
|
38
|
|
|
|
91
|
|
|
Wells Fargo net income
|
|
|
$
|
5,936
|
|
|
|
6,151
|
|
|
|
4,542
|
|
|
|
5,856
|
|
|
|
5,634
|
|
|
Average loans
|
|
|
$
|
951.0
|
|
|
|
951.8
|
|
|
|
952.3
|
|
|
|
956.9
|
|
|
|
963.6
|
|
|
Average assets
|
|
|
1,915.9
|
|
|
|
1,935.3
|
|
|
|
1,938.5
|
|
|
|
1,927.0
|
|
|
|
1,931.0
|
|
|
Average deposits
|
|
|
1,297.2
|
|
|
|
1,311.6
|
|
|
|
1,306.4
|
|
|
|
1,301.2
|
|
|
|
1,299.2
|
|
|
(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. Effective first
quarter 2018, assets and liabilities receive a funding charge or
credit that considers interest rate risk, liquidity risk, and
other product characteristics on a more granular level. This
methodology change affects results across all three of our
reportable operating segments and prior period operating segment
results have been revised to reflect this methodology change. Our
previously reported consolidated financial results were not
impacted by the methodology change; however, in connection with
the adoption of ASU 2016-01 in first quarter 2018, certain
reclassifications will occur within noninterest income.
|
|
(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
as well as interest credits for any funding of a segment available
to be provided to other segments. The cost of liabilities includes
actual interest expense on segment liabilities as well as funding
charges for any funding provided from other segments.
|
|
(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
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
|
$
|
13,625
|
|
|
|
13,338
|
|
|
|
12,789
|
|
|
|
13,208
|
|
|
|
12,959
|
|
|
Purchases
|
|
|
—
|
|
|
|
—
|
|
|
|
541
|
|
|
|
—
|
|
|
|
—
|
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
573
|
|
|
|
639
|
|
|
|
605
|
|
|
|
436
|
|
|
|
583
|
|
|
Sales and other (2)
|
|
|
(4
|
)
|
|
|
(32
|
)
|
|
|
64
|
|
|
|
(8
|
)
|
|
|
(47
|
)
|
|
Net additions
|
|
|
569
|
|
|
|
607
|
|
|
|
1,210
|
|
|
|
428
|
|
|
|
536
|
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (3)
|
|
|
1,253
|
|
|
|
221
|
|
|
|
(171
|
)
|
|
|
(305
|
)
|
|
|
152
|
|
|
Servicing and foreclosure costs (4)
|
|
|
34
|
|
|
|
23
|
|
|
|
60
|
|
|
|
(14
|
)
|
|
|
27
|
|
|
Discount rates (5)
|
|
|
—
|
|
|
|
13
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Prepayment estimates and other (6)
|
|
|
43
|
|
|
|
(55
|
)
|
|
|
(31
|
)
|
|
|
(41
|
)
|
|
|
(5
|
)
|
|
Net changes in valuation model inputs or assumptions
|
|
|
1,330
|
|
|
|
202
|
|
|
|
(142
|
)
|
|
|
(360
|
)
|
|
|
174
|
|
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
(483
|
)
|
|
|
(522
|
)
|
|
|
(519
|
)
|
|
|
(487
|
)
|
|
|
(461
|
)
|
|
Total changes in fair value
|
|
|
847
|
|
|
|
(320
|
)
|
|
|
(661
|
)
|
|
|
(847
|
)
|
|
|
(287
|
)
|
|
Fair value, end of quarter
|
|
|
$
|
15,041
|
|
|
|
13,625
|
|
|
|
13,338
|
|
|
|
12,789
|
|
|
|
13,208
|
|
|
(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) Reflects discount rate assumption change, excluding portion
attributable to changes in mortgage interest rates.
|
|
(6) 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
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
|
$
|
1,424
|
|
|
|
1,406
|
|
|
|
1,399
|
|
|
|
1,402
|
|
|
|
1,406
|
|
|
Purchases
|
|
|
18
|
|
|
|
40
|
|
|
|
31
|
|
|
|
26
|
|
|
|
18
|
|
|
Servicing from securitizations or asset transfers
|
|
|
34
|
|
|
|
43
|
|
|
|
41
|
|
|
|
37
|
|
|
|
45
|
|
|
Amortization
|
|
|
(65
|
)
|
|
|
(65
|
)
|
|
|
(65
|
)
|
|
|
(66
|
)
|
|
|
(67
|
)
|
|
Balance, end of quarter
|
|
|
$
|
1,411
|
|
|
|
1,424
|
|
|
|
1,406
|
|
|
|
1,399
|
|
|
|
1,402
|
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
$
|
2,025
|
|
|
|
1,990
|
|
|
|
1,989
|
|
|
|
2,051
|
|
|
|
1,956
|
|
|
End of quarter
|
|
|
2,307
|
|
|
|
2,025
|
|
|
|
1,990
|
|
|
|
1,989
|
|
|
|
2,051
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
|
|
$
|
906
|
|
|
|
833
|
|
|
|
795
|
|
|
|
882
|
|
|
|
882
|
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
|
(A)
|
|
|
1,330
|
|
|
|
202
|
|
|
|
(142
|
)
|
|
|
(360
|
)
|
|
|
174
|
|
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
|
|
|
(483
|
)
|
|
|
(522
|
)
|
|
|
(519
|
)
|
|
|
(487
|
)
|
|
|
(461
|
)
|
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
|
|
847
|
|
|
|
(320
|
)
|
|
|
(661
|
)
|
|
|
(847
|
)
|
|
|
(287
|
)
|
|
Amortization
|
|
|
|
|
|
(65
|
)
|
|
|
(65
|
)
|
|
|
(65
|
)
|
|
|
(66
|
)
|
|
|
(67
|
)
|
|
Net derivative gains (losses) from economic hedges (3)
|
|
|
(B)
|
|
|
(1,220
|
)
|
|
|
(186
|
)
|
|
|
240
|
|
|
|
431
|
|
|
|
(72
|
)
|
|
Total servicing income, net
|
|
|
|
|
|
$
|
468
|
|
|
|
262
|
|
|
|
309
|
|
|
|
400
|
|
|
|
456
|
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(3)
|
|
|
(A)+(B)
|
|
|
$
|
110
|
|
|
|
16
|
|
|
|
98
|
|
|
|
71
|
|
|
|
102
|
|
|
(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.
|
|
|
|
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
(in billions)
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2017
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
$
|
1,201
|
|
|
1,209
|
|
|
1,223
|
|
|
1,189
|
|
|
1,204
|
|
Owned loans serviced
|
337
|
|
|
342
|
|
|
340
|
|
|
343
|
|
|
335
|
|
Subserviced for others
|
5
|
|
|
3
|
|
|
3
|
|
|
4
|
|
|
4
|
|
Total residential servicing
|
1,543
|
|
|
1,554
|
|
|
1,566
|
|
|
1,536
|
|
|
1,543
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
510
|
|
|
495
|
|
|
480
|
|
|
475
|
|
|
474
|
|
Owned loans serviced
|
125
|
|
|
127
|
|
|
128
|
|
|
130
|
|
|
132
|
|
Subserviced for others
|
10
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
7
|
|
Total commercial servicing
|
645
|
|
|
631
|
|
|
616
|
|
|
613
|
|
|
613
|
|
Total managed servicing portfolio
|
$
|
2,188
|
|
|
2,185
|
|
|
2,182
|
|
|
2,149
|
|
|
2,156
|
|
Total serviced for others
|
$
|
1,711
|
|
|
1,704
|
|
|
1,703
|
|
|
1,664
|
|
|
1,678
|
|
Ratio of MSRs to related loans serviced for others
|
0.96
|
%
|
|
0.88
|
|
|
0.87
|
|
|
0.85
|
|
|
0.87
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
4.24
|
|
|
4.23
|
|
|
4.23
|
|
|
4.23
|
|
|
4.23
|
|
(1) The components of our managed servicing portfolio are
presented at unpaid principal balance for loans serviced and
subserviced for others and at book value for owned loans serviced.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Net gains on mortgage loan origination/sales activities (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
(A)
|
|
|
$
|
324
|
|
|
|
504
|
|
|
|
546
|
|
|
|
521
|
|
|
|
569
|
|
Commercial
|
|
|
|
|
|
76
|
|
|
|
95
|
|
|
|
81
|
|
|
|
81
|
|
|
|
101
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
|
|
|
|
66
|
|
|
|
67
|
|
|
|
110
|
|
|
|
146
|
|
|
|
102
|
|
Total
|
|
|
|
|
|
$
|
466
|
|
|
|
666
|
|
|
|
737
|
|
|
|
748
|
|
|
|
772
|
|
Application data (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
|
|
$
|
58
|
|
|
|
63
|
|
|
|
73
|
|
|
|
83
|
|
|
|
59
|
|
Refinances as a percentage of applications
|
|
|
|
|
|
35
|
%
|
|
|
38
|
|
|
|
37
|
|
|
|
32
|
|
|
|
36
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
|
|
$
|
24
|
|
|
|
23
|
|
|
|
29
|
|
|
|
34
|
|
|
|
28
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
|
|
|
|
65
|
%
|
|
|
64
|
|
|
|
72
|
|
|
|
75
|
|
|
|
61
|
|
Refinances as a percentage of originations
|
|
|
|
|
|
35
|
|
|
|
36
|
|
|
|
28
|
|
|
|
25
|
|
|
|
39
|
|
Total
|
|
|
|
|
|
100
|
%
|
|
|
100
|
|
|
|
100
|
|
|
|
100
|
|
|
|
100
|
|
Wells Fargo first mortgage loans (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
$
|
16
|
|
|
|
23
|
|
|
|
26
|
|
|
|
25
|
|
|
|
21
|
|
Correspondent
|
|
|
|
|
|
27
|
|
|
|
30
|
|
|
|
32
|
|
|
|
31
|
|
|
|
22
|
|
Other (2)
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
Total quarter-to-date
|
|
|
|
|
|
$
|
43
|
|
|
|
53
|
|
|
|
59
|
|
|
|
56
|
|
|
|
44
|
|
Held-for-sale
|
|
|
(B)
|
|
|
$
|
34
|
|
|
|
40
|
|
|
|
44
|
|
|
|
42
|
|
|
|
34
|
|
Held-for-investment
|
|
|
|
|
|
9
|
|
|
|
13
|
|
|
|
15
|
|
|
|
14
|
|
|
|
10
|
|
Total quarter-to-date
|
|
|
|
|
|
$
|
43
|
|
|
|
53
|
|
|
|
59
|
|
|
|
56
|
|
|
|
44
|
|
Total year-to-date
|
|
|
|
|
|
$
|
43
|
|
|
|
212
|
|
|
|
159
|
|
|
|
100
|
|
|
|
44
|
|
Production margin on residential held-for-sale mortgage
originations
|
|
|
(A)/(B)
|
|
|
0.94
|
%
|
|
|
1.25
|
|
|
|
1.24
|
|
|
|
1.24
|
|
|
|
1.68
|
|
(1) Predominantly includes the results of sales of modified
Government National Mortgage Association (GNMA) loans, interest
rate management activities and changes in estimate to the
liability for mortgage loan repurchase losses.
|
|
(2) Consists of home equity loans and lines.
|
|
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
|
Quarter ended
|
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
(in millions)
|
|
|
2018
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
|
2017
|
|
Balance, beginning of period
|
|
|
$
|
181
|
|
|
|
179
|
|
|
|
178
|
|
|
|
222
|
|
|
|
229
|
|
|
Assumed with MSR purchases (1)
|
|
|
—
|
|
|
|
—
|
|
|
|
10
|
|
|
|
—
|
|
|
|
—
|
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
3
|
|
|
|
4
|
|
|
|
6
|
|
|
|
6
|
|
|
|
8
|
|
|
Change in estimate (2)
|
|
|
1
|
|
|
|
2
|
|
|
|
(12
|
)
|
|
|
(45
|
)
|
|
|
(8
|
)
|
|
Net additions (reductions) to provision
|
|
|
4
|
|
|
|
6
|
|
|
|
(6
|
)
|
|
|
(39
|
)
|
|
|
—
|
|
|
Losses
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(3
|
)
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
Balance, end of period
|
|
|
$
|
181
|
|
|
|
181
|
|
|
|
179
|
|
|
|
178
|
|
|
|
222
|
|
|
(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.
|
|
|
