Diluted EPS of $1.01; Revenue Up 4 Percent from Prior Year
Wells Fargo & Company (NYSE:WFC):
-
Continued strong financial results:
-
Net income of $5.6 billion, compared with $5.7 billion in second
quarter 2015
-
Diluted earnings per share (EPS) of $1.01, compared with $1.03
-
Revenue of $22.2 billion, up 4 percent
-
Pre-tax pre-provision profit1 of $9.3 billion, up 5
percent
-
Return on assets of 1.20 percent and return on equity of 11.70
percent
-
Strong growth in loans and deposits:
-
Total average loans of $950.8 billion, up $80.3 billion, or 9
percent, from second quarter 2015
-
Total average deposits of $1.2 trillion, up $51.4 billion, or 4
percent
-
Solid overall credit quality:
-
Net charge-offs of $924 million, up $274 million from second
quarter 2015 on higher losses in the oil and gas portfolio
-
Net charge-offs were 0.39 percent of average loans
(annualized), up from 0.30 percent
-
Nonaccrual loans down $480 million, or 4 percent
-
Reserve build2 of $150 million, primarily driven by
loan growth, compared with a $350 million reserve release2
in second quarter 2015
-
Maintained strong capital levels while continuing to return capital to
shareholders:
-
Common Equity Tier 1 ratio (fully phased-in) of 10.6 percent3
-
Total stockholders' equity exceeded $200 billion for the first time
-
Period-end common shares outstanding down 27.4 million from first
quarter 2016
-
Increased quarterly common stock dividend to $0.38 per share under
the Company's 2015 Comprehensive Capital Analysis and Review
(CCAR) submission
-
Received a non-objection to the Company's 2016 CCAR submission from
the Federal Reserve.
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
|
|
|
Jun 30,
2016
|
|
|
|
Mar 31,
2016
|
|
|
|
Jun 30,
2015
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
|
$
|
1.01
|
|
|
|
0.99
|
|
|
|
1.03
|
|
Wells Fargo net income (in billions)
|
|
|
5.56
|
|
|
|
5.46
|
|
|
|
5.72
|
|
Return on assets (ROA)
|
|
|
1.20
|
%
|
|
|
1.21
|
|
|
|
1.33
|
|
Return on equity (ROE)
|
|
|
11.70
|
|
|
|
11.75
|
|
|
|
12.71
|
|
Return on average tangible common equity (ROTCE)(a)
|
|
|
14.15
|
|
|
|
14.15
|
|
|
|
15.32
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
0.39
|
%
|
|
|
0.38
|
|
|
|
0.30
|
|
Allowance for credit losses as a % of total loans
|
|
|
1.33
|
|
|
|
1.34
|
|
|
|
1.42
|
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
343
|
|
|
|
355
|
|
|
|
484
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
|
$
|
22.2
|
|
|
|
22.2
|
|
|
|
21.3
|
|
Efficiency ratio
|
|
|
58.1
|
%
|
|
|
58.7
|
|
|
|
58.5
|
|
Average loans (in billions)
|
|
|
$
|
950.8
|
|
|
|
927.2
|
|
|
|
870.4
|
|
Average deposits (in billions)
|
|
|
1,236.7
|
|
|
|
1,219.4
|
|
|
|
1,185.3
|
|
Net interest margin
|
|
|
2.86
|
%
|
|
|
2.90
|
|
|
|
2.97
|
|
(a) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to
assess the Company's use of equity. For additional information,
including a corresponding reconciliation to GAAP financial
measures, see the "Tangible Common Equity" tables on page 35.
|
|
|
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.6 billion, or
$1.01 per diluted common share, for second quarter 2016, compared with
$5.7 billion, or $1.03 per share, for second quarter 2015, and
$5.5 billion, or $0.99 per share, for first quarter 2016.
Chairman and CEO John Stumpf said, “Wells Fargo's second quarter results
demonstrated our ability to generate consistent performance during
periods of economic, capital markets and interest rate uncertainty.
Compared with a year ago, we had solid growth in loans, deposits and
customers, which are our fundamental drivers of long-term value. We also
improved our efficiency ratio while continuing to reinvest in the
franchise. We returned more capital to our shareholders in the quarter
and were pleased to have received a non-objection to our 2016 Capital
Plan from the Federal Reserve. We remain well positioned to continue to
meet the financial needs of our customers.”
Chief Financial Officer John Shrewsberry added, “Second quarter results
benefited from our diversified business model, as demonstrated by higher
linked-quarter net interest income, growth in many of our fee-based
businesses and positive operating leverage. Earning assets increased in
the second quarter, driven by growth in both loans and investment
securities. Investment securities were up $18.5 billion in the second
quarter, reflecting gross purchases of approximately $38 billion
compared with $5 billion in first quarter. Second quarter purchases were
made at interest rate levels above those available late in the quarter,
after the 'Brexit' vote. We continue to have capacity for additional
deployment of liquidity, but will remain disciplined in our investment
approach. Capital remained strong with a net payout ratio4 of
62 percent in the quarter, as we returned $3.2 billion to shareholders
through common stock dividends and net share repurchases."
Net Interest Income
Net interest income in second quarter 2016 increased $66 million from
first quarter 2016 to $11.7 billion, primarily driven by loan growth,
including the full quarter benefit of the assets acquired from GE
Capital that closed late in the first quarter. The benefit to net
interest income from loan growth was partially offset by reduced income
in the investment securities portfolio reflecting accelerated
prepayments, primarily on our mortgage-backed securities (MBS),
increased interest expense from higher debt balances, and lower interest
income from trading assets.
Net interest margin was 2.86 percent, down 4 basis points from first
quarter 2016. The decline was primarily driven by the impact of growth
in long-term debt, growth in deposits and reduced income on investment
securities. The impact of all other balance sheet growth, mix changes
and repricing was beneficial to the net interest margin.
Noninterest Income
Noninterest income in the second quarter was $10.4 billion, down from
$10.5 billion in first quarter 2016. Second quarter noninterest income
reflected higher net gains on debt securities, trust and investment
fees, net gains from trading activities, lease income, card fees and
service charges on deposit accounts. These increases were partially
offset by a linked-quarter reduction in other income, driven by a
decline in hedge ineffectiveness income from $379 million in first
quarter 2016 to $56 million in second quarter. Other income also
included a $290 million gain on the sale of our health benefit services
business in second quarter 2016, while first quarter results included a
$381 million gain from the sale of our crop insurance business.
Insurance revenue declined $141 million linked quarter, due to the sale
of our crop insurance business.
Trust and investment fees were $3.5 billion, up $162 million from the
prior quarter, primarily due to higher investment banking fees, as well
as higher retail brokerage asset-based fees and transaction activity,
and trust and investment management fees.
Mortgage banking noninterest income was $1.4 billion, down $184 million
from first quarter 2016, as a $306 million increase in origination gains
was more than offset by a decline in servicing revenue due in part to
lower mortgage servicing rights (MSR) hedging results. Residential
mortgage loan originations were $63 billion in the second quarter, up
$19 billion linked quarter. The production margin on residential
held-for-sale mortgage loan originations5 was 1.66 percent,
compared with 1.68 percent in first quarter.
Noninterest Expense
Noninterest expense declined $162 million from the prior quarter,
primarily due to lower employee benefits, which were seasonally elevated
in first quarter 2016, as well as lower operating losses. Insurance
expense also declined as a result of the first quarter 2016 sale of our
crop insurance business. The decline in noninterest expense was
partially offset by higher outside professional services, primarily for
project-related expenses, and higher operating lease depreciation
expense as a result of the GE Capital transactions. The efficiency ratio
was 58.1 percent in second quarter 2016, compared with 58.7 percent in
the prior quarter. The Company continues to expect to operate at the
higher end of its targeted efficiency ratio range of 55 to 59 percent
for full year 2016.
Loans
Total loans were $957.2 billion at June 30, 2016, up $9.9 billion, or 1
percent, from March 31, 2016, driven by growth in commercial loans,
including commercial and industrial and real estate mortgage loans, as
well as growth in consumer loans, including real estate 1-4 family first
mortgage loans, credit card and automobile. Total average loans were
$950.8 billion in the second quarter, up $23.5 billion from the prior
quarter, and included the full quarter impact of the March 1, 2016
acquisition of GE Capital's Commercial Distribution Finance and Vendor
Finance businesses, as well as a portion of its Corporate Finance
business.
|
|
|
|
|
|
|
Period-End Loan Balances
|
|
(in millions)
|
|
|
Jun 30,
2016
|
|
|
Mar 31,
2016
|
|
|
Dec 31,
2015
|
|
|
Sep 30,
2015
|
|
|
Jun 30,
2015
|
|
Commercial
|
|
|
$
|
494,538
|
|
|
488,205
|
|
|
456,583
|
|
|
447,338
|
|
|
438,022
|
|
Consumer
|
|
|
462,619
|
|
|
459,053
|
|
|
459,976
|
|
|
455,895
|
|
|
450,437
|
|
Total loans
|
|
|
$
|
957,157
|
|
|
947,258
|
|
|
916,559
|
|
|
903,233
|
|
|
888,459
|
|
Change from prior quarter
|
|
|
$
|
9,899
|
|
|
30,699
|
|
|
13,326
|
|
|
14,774
|
|
|
27,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
Investment securities were $353.4 billion at June 30, 2016, up $18.5
billion from first quarter, as approximately $38 billion of purchases,
predominantly federal agency MBS for our held-to-maturity portfolio,
were partially offset by run-off, including accelerated prepayments of
investment securities, and sales.
Net unrealized available-for-sale securities gains of $4.5 billion at
June 30, 2016, increased from $3.5 billion at March 31, 2016, primarily
due to a decline in interest rates, which was partially offset by
widening credit spreads.
Deposits
Total average deposits for second quarter 2016 were $1.2 trillion, up 1
percent from the prior quarter, driven by a $13.4 billion increase in
consumer and small business. The average deposit cost for second quarter
2016 was 11 basis points, up 3 basis points from a year ago and up 1
basis point from the prior quarter.
Capital
Capital levels remained strong in the second quarter, with Common Equity
Tier 1 (fully phased-in) (CET1) of 10.6 percent3,
compared with 10.6 percent in the prior quarter. In second quarter 2016,
the Company repurchased 44.8 million shares of its common stock,
reducing period-end common shares outstanding by 27.4 million shares.
The Company paid a quarterly common stock dividend of $0.38 per share,
up from $0.375 per share a year ago. The Company received a
non-objection to its 2016 Capital Plan from the Federal Reserve.
Credit Quality
“Overall credit results were solid in the second quarter as our
quarterly loss rate remained low, at 0.39 percent (annualized)," said
Chief Risk Officer Mike Loughlin. "The loan portfolio continued to
perform well, led by further improvement in consumer real estate. Oil
and gas portfolio performance during the quarter was generally
consistent with our expectations. Results in the oil and gas portfolio
remained under pressure with higher credit losses and nonaccrual loans,
while our allowance coverage ratio for the portfolio remained stable at
9.2 percent at quarter-end. The allowance for credit losses in the
second quarter reflected a reserve build2 of $150 million,
primarily attributable to loan growth in the commercial, automobile and
credit card portfolios. Future allowance levels will be based on a
variety of factors, including loan growth, portfolio performance and
general economic conditions.”
Net Loan Charge-offs
The quarterly loss rate of 0.39 percent (annualized) reflected
commercial losses of 0.29 percent and consumer losses of 0.49 percent.
Credit losses were $924 million in second quarter 2016, compared with
$886 million in first quarter 2016, on $59 million higher oil and gas
portfolio losses. Consumer losses decreased $82 million, driven by a
$46 million decline in consumer real estate losses and a $37 million
decline in automobile losses reflecting seasonality.
|
|
|
|
|
|
|
|
|
Net Loan Charge-Offs
|
|
|
|
|
Quarter ended
|
|
|
|
|
June 30, 2016
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
($ in millions)
|
|
|
Net loan
charge-
offs
|
|
|
|
As a % of
average
loans (a)
|
|
|
|
Net loan
charge-
offs
|
|
|
|
As a % of
average
loans (a)
|
|
|
|
Net loan
charge-
offs
|
|
|
|
As a % of
average
loans (a)
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
368
|
|
|
|
0.46
|
%
|
|
|
$
|
273
|
|
|
|
0.36
|
%
|
|
|
$
|
215
|
|
|
|
0.29
|
%
|
|
Real estate mortgage
|
|
|
(20
|
)
|
|
|
(0.06
|
)
|
|
|
(29
|
)
|
|
|
(0.10
|
)
|
|
|
(19
|
)
|
|
|
(0.06
|
)
|
|
Real estate construction
|
|
|
(3
|
)
|
|
|
(0.06
|
)
|
|
|
(8
|
)
|
|
|
(0.13
|
)
|
|
|
(10
|
)
|
|
|
(0.18
|
)
|
|
Lease financing
|
|
|
12
|
|
|
|
0.27
|
|
|
|
1
|
|
|
|
0.01
|
|
|
|
1
|
|
|
|
0.01
|
|
|
Total commercial
|
|
|
357
|
|
|
|
0.29
|
|
|
|
237
|
|
|
|
0.20
|
|
|
|
187
|
|
|
|
0.16
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
14
|
|
|
|
0.02
|
|
|
|
48
|
|
|
|
0.07
|
|
|
|
50
|
|
|
|
0.07
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
62
|
|
|
|
0.49
|
|
|
|
74
|
|
|
|
0.57
|
|
|
|
70
|
|
|
|
0.52
|
|
|
Credit card
|
|
|
270
|
|
|
|
3.25
|
|
|
|
262
|
|
|
|
3.16
|
|
|
|
243
|
|
|
|
2.93
|
|
|
Automobile
|
|
|
90
|
|
|
|
0.59
|
|
|
|
127
|
|
|
|
0.85
|
|
|
|
135
|
|
|
|
0.90
|
|
|
Other revolving credit and installment
|
|
|
131
|
|
|
|
1.32
|
|
|
|
138
|
|
|
|
1.42
|
|
|
|
146
|
|
|
|
1.49
|
|
|
Total consumer
|
|
|
567
|
|
|
|
0.49
|
|
|
|
649
|
|
|
|
0.57
|
|
|
|
644
|
|
|
|
0.56
|
|
|
Total
|
|
|
$
|
924
|
|
|
|
0.39
|
%
|
|
|
$
|
886
|
|
|
|
0.38
|
%
|
|
|
$
|
831
|
|
|
|
0.36
|
%
|
|
|
|
|
|
|
|
|
|
(a) Quarterly net charge-offs as a percentage of average loans are
annualized. See explanation on page 31 of the accounting for
purchased credit-impaired (PCI) loans and the impact on selected
financial ratios.
|
|
|
|
|
|
|
|
|
Nonperforming Assets
Nonperforming assets decreased $433 million from first quarter 2016 to
$13.1 billion. Nonaccrual loans decreased $271 million from first
quarter to $12.0 billion as an $809 million decrease in consumer
nonaccruals was partially offset by a $651 million increase in oil and
gas nonaccruals. Foreclosed assets of $1.1 billion were down
$162 million from first quarter 2016.
|
|
|
|
|
|
|
|
|
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
June 30, 2016
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
($ in millions)
|
|
|
Total
balances
|
|
|
|
As a
% of
total
loans
|
|
|
|
Total
balances
|
|
|
|
As a
% of
total
loans
|
|
|
|
Total
balances
|
|
|
|
As a
% of
total
loans
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
3,464
|
|
|
|
1.07
|
%
|
|
|
$
|
2,911
|
|
|
|
0.91
|
%
|
|
|
$
|
1,363
|
|
|
|
0.45
|
%
|
|
Real estate mortgage
|
|
|
872
|
|
|
|
0.68
|
|
|
|
896
|
|
|
|
0.72
|
|
|
|
969
|
|
|
|
0.79
|
|
|
Real estate construction
|
|
|
59
|
|
|
|
0.25
|
|
|
|
63
|
|
|
|
0.27
|
|
|
|
66
|
|
|
|
0.30
|
|
|
Lease financing
|
|
|
112
|
|
|
|
0.59
|
|
|
|
99
|
|
|
|
0.52
|
|
|
|
26
|
|
|
|
0.21
|
|
|
Total commercial
|
|
|
4,507
|
|
|
|
0.91
|
|
|
|
3,969
|
|
|
|
0.81
|
|
|
|
2,424
|
|
|
|
0.53
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
5,970
|
|
|
|
2.15
|
|
|
|
6,683
|
|
|
|
2.43
|
|
|
|
7,293
|
|
|
|
2.66
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,330
|
|
|
|
2.67
|
|
|
|
1,421
|
|
|
|
2.77
|
|
|
|
1,495
|
|
|
|
2.82
|
|
|
Automobile
|
|
|
111
|
|
|
|
0.18
|
|
|
|
114
|
|
|
|
0.19
|
|
|
|
121
|
|
|
|
0.20
|
|
|
Other revolving credit and installment
|
|
|
45
|
|
|
|
0.11
|
|
|
|
47
|
|
|
|
0.12
|
|
|
|
49
|
|
|
|
0.13
|
|
|
Total consumer
|
|
|
7,456
|
|
|
|
1.61
|
|
|
|
8,265
|
|
|
|
1.80
|
|
|
|
8,958
|
|
|
|
1.95
|
|
|
Total nonaccrual loans
|
|
|
11,963
|
|
|
|
1.25
|
|
|
|
12,234
|
|
|
|
1.29
|
|
|
|
11,382
|
|
|
|
1.24
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
321
|
|
|
|
|
|
|
|
386
|
|
|
|
|
|
|
|
446
|
|
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
796
|
|
|
|
|
|
|
|
893
|
|
|
|
|
|
|
|
979
|
|
|
|
|
|
|
Total foreclosed assets
|
|
|
1,117
|
|
|
|
|
|
|
|
1,279
|
|
|
|
|
|
|
|
1,425
|
|
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
13,080
|
|
|
|
1.37
|
%
|
|
|
$
|
13,513
|
|
|
|
1.43
|
%
|
|
|
$
|
12,807
|
|
|
|
1.40
|
%
|
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(271
|
)
|
|
|
|
|
|
|
$
|
852
|
|
|
|
|
|
|
|
$
|
(155
|
)
|
|
|
|
|
|
Total nonperforming assets
|
|
|
(433
|
)
|
|
|
|
|
|
|
706
|
|
|
|
|
|
|
|
(497
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 90 Days or More Past Due and Still Accruing
Loans 90 days or more past due and still accruing (excluding government
insured/guaranteed) totaled $788 million at June 30, 2016, down from
$803 million at March 31, 2016. Loans 90 days or more past due and still
accruing with repayments insured by the Federal Housing Administration
(FHA) or predominantly guaranteed by the Department of Veterans Affairs
(VA) for mortgage loans and the U.S. Department of Education for student
loans under the Federal Family Education Loan Program were $11.6 billion
at June 30, 2016, down from $12.3 billion at March 31, 2016.
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.7 billion at June 30, 2016, compared with $12.7
billion at March 31, 2016. The allowance coverage for total loans was
1.33 percent, compared with 1.34 percent in first quarter 2016. The
allowance covered 3.4 times annualized second quarter net charge-offs,
compared with 3.6 times in the prior quarter. The allowance coverage for
nonaccrual loans was 107 percent at June 30, 2016, compared with
104 percent at March 31, 2016. “We believe the allowance was appropriate
for losses inherent in the loan portfolio at June 30, 2016,” said
Loughlin.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Jun 30,
2016
|
|
|
|
Mar 31,
2016
|
|
|
|
Jun 30,
2015
|
|
Community Banking
|
|
|
$
|
3,179
|
|
|
|
3,296
|
|
|
|
3,215
|
|
Wholesale Banking
|
|
|
2,073
|
|
|
|
1,921
|
|
|
|
2,191
|
|
Wealth and Investment Management
|
|
|
584
|
|
|
|
512
|
|
|
|
586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and auto, student, and small business lending.
Community Banking also offers investment, insurance and trust services
in 39 states and D.C., and mortgage and home equity loans in all 50
states and D.C. through its Regional Banking and Wells Fargo Home
Lending business units.
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Jun 30,
2016
|
|
|
|
Mar 31,
2016
|
|
|
|
Jun 30,
2015
|
|
Total revenue
|
|
|
$
|
12,204
|
|
|
|
12,614
|
|
|
|
11,967
|
|
Provision for credit losses
|
|
|
689
|
|
|
|
720
|
|
|
|
397
|
|
Noninterest expense
|
|
|
6,648
|
|
|
|
6,836
|
|
|
|
6,719
|
|
Segment net income
|
|
|
3,179
|
|
|
|
3,296
|
|
|
|
3,215
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
485.7
|
|
|
|
484.3
|
|
|
|
472.3
|
|
Average assets
|
|
|
967.6
|
|
|
|
947.4
|
|
|
|
910.0
|
|
Average deposits
|
|
|
703.7
|
|
|
|
683.0
|
|
|
|
654.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.2 billion, down
$117 million, or 4 percent, from first quarter 2016. Revenue of
$12.2 billion decreased $410 million, or 3 percent, from first quarter
2016 due to lower other income (hedge ineffectiveness), mortgage banking
revenue, and net interest income, partially offset by higher gains from
sale of debt securities. Noninterest expense decreased $188 million, or
3 percent, compared with first quarter 2016, due to lower operating
losses and other expense, partially offset by higher project-related
expense. The provision for credit losses decreased $31 million from the
prior quarter.
Net income was down $36 million, or 1 percent, from second quarter 2015.
Revenue increased $237 million, or 2 percent, compared with a year ago
due to higher gains on sale of debt securities, other income (hedge
ineffectiveness), net interest income and card fees, partially offset by
lower mortgage banking revenue, gains on equity investments, and trust
and investment fees. Noninterest expense decreased $71 million, or 1
percent, from a year ago driven by lower operating losses and foreclosed
assets expense, partially offset by higher personnel costs. The
provision for credit losses increased $292 million from a year ago
primarily due to a reserve build compared with a reserve release in
second quarter 2015.
Regional Banking
-
Retail Banking
-
Primary consumer checking customers6 up 4.7 percent
year-over-year7
-
Debit card purchase volume8 of $76.4 billion in second
quarter, up 8 percent year-over-year
-
Retail Banking household cross-sell ratio of 6.27 products per
household, compared with 6.32 year-over-year7,9
-
Small Business Banking
-
Launched new online FastFlexSM Small Business
Loan offering a fast decision and funding as soon as the next
business day
-
Wells Fargo was the nation’s #1 SBA 7(a) small business lender in
dollars and units for the first three quarters of the 2016 federal
fiscal year10
-
Digital Banking
-
27.4 million digital (online and mobile) active customers,
including 18 million mobile active users7,11
Consumer Lending Group
-
Home Lending
-
Originations of $63 billion, up from $44 billion in prior quarter
-
Applications of $95 billion, up from $77 billion in prior quarter
-
Application pipeline of $47 billion at quarter end, up from $39
billion at March 31, 2016
-
Launched yourFirst MortgageSM to help more
first-time homebuyers and low- to moderate-income families achieve
sustainable homeownership
-
Consumer Credit
-
Credit card purchase volume of $19.4 billion in second quarter, up
10 percent year-over-year
-
Credit card penetration in retail banking households rose to 45.6
percent, up from 44.6 percent in prior year7,12
-
Auto originations of $8.3 billion in second quarter, up 8 percent
from prior quarter and up 2 percent from prior year
Wholesale Banking provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $5 million. Products and
businesses include Business Banking, Middle Market Commercial Banking,
Government and Institutional Banking, Corporate Banking, Commercial Real
Estate, Treasury Management, Wells Fargo Capital Finance, Insurance,
International, Real Estate Capital Markets, Commercial Mortgage
Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities,
Principal Investments and Asset Backed Finance.
|
|
|
|
|
|
Selected Financial Information
|
|
|
|
|
Quarter ended
|
|
(in millions)
|
|
|
Jun 30,
2016
|
|
|
|
Mar 31,
2016
|
|
|
|
Jun 30,
2015
|
|
|
Total revenue
|
|
|
$
|
7,284
|
|
|
|
6,958
|
|
|
|
6,610
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
385
|
|
|
|
363
|
|
|
|
(84
|
)
|
|
Noninterest expense
|
|
|
4,036
|
|
|
|
3,968
|
|
|
|
3,504
|
|
|
Segment net income
|
|
|
2,073
|
|
|
|
1,921
|
|
|
|
2,191
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
451.4
|
|
|
|
429.8
|
|
|
|
386.2
|
|
|
Average assets
|
|
|
772.6
|
|
|
|
748.6
|
|
|
|
713.7
|
|
|
Average deposits
|
|
|
425.8
|
|
|
|
428.0
|
|
|
|
432.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $2.1 billion, up $152 million,
or 8 percent, from first quarter 2016. Revenue of $7.3 billion increased
$326 million, or 5 percent, from prior quarter due to the full quarter
impact of the March 1, 2016 GE Capital acquisition, broad-based loan
growth, strong customer accommodation trading results and increased
investment banking fees as well as the gain on sale of our health
benefit services business, partially offset by lower insurance fees due
to the sale of our crop insurance business in the first quarter.
Noninterest expense increased $68 million, or 2 percent, from the prior
quarter driven by the full quarter impact of the GE Capital acquisition,
as well as higher project-related spending, partially offset by
seasonally lower personnel expenses and lower insurance commissions due
to the sale of our crop insurance business. The provision for credit
losses increased $22 million from the prior quarter.
Net income was down $118 million, or 5 percent, from second quarter
2015. Revenue increased $674 million, or 10 percent, from second quarter
2015, on strong loan growth, including the GE Capital acquisitions, the
gain on sale of our health benefit services business, higher customer
accommodation trading, increased investment banking fees and higher
treasury management fees, partially offset by lower insurance fees due
to the sale of our crop insurance business, lower commercial real estate
brokerage fees and lower gains on equity investments. Noninterest
expense increased $532 million, or 15 percent, from a year ago primarily
due to the GE Capital acquisitions and higher personnel expenses related
to growth initiatives, compliance, and regulatory requirements. The
provision for credit losses increased $469 million from a year ago
primarily due to higher oil and gas net charge-offs. The second quarter
2015 results included an $89 million reserve release.
-
Average loans increased 17 percent from second quarter 2015, on
broad-based growth, including asset-backed finance, commercial real
estate, corporate banking, equipment finance and structured real
estate as well as the GE Capital acquisitions
-
Treasury management revenue up 5 percent from second quarter 2015
-
The Commercial Electronic Office® (CEO) mobile channel
piloted biometric authentication to customers in second quarter, using
eyeprint image capture technology
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
|
|
(in millions)
|
|
|
Jun 30,
2016
|
|
|
|
Mar 31,
2016
|
|
|
|
Jun 30,
2015
|
|
|
Total revenue
|
|
|
$
|
3,919
|
|
|
|
3,854
|
|
|
|
3,976
|
|
|
Provision (reversal of provision) for credit losses
|
|
|
2
|
|
|
|
(14
|
)
|
|
|
(10
|
)
|
|
Noninterest expense
|
|
|
2,976
|
|
|
|
3,042
|
|
|
|
3,038
|
|
|
Segment net income
|
|
|
584
|
|
|
|
512
|
|
|
|
586
|
|
|
(in billions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
66.7
|
|
|
|
64.1
|
|
|
|
59.3
|
|
|
Average assets
|
|
|
205.3
|
|
|
|
208.1
|
|
|
|
189.1
|
|
|
Average deposits
|
|
|
182.5
|
|
|
|
184.5
|
|
|
|
168.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $584 million, up
$72 million, or 14 percent, from first quarter 2016. Revenue of
$3.9 billion increased $65 million, or 2 percent, from the prior
quarter, primarily due to higher asset-based fees and brokerage
transaction revenue. Noninterest expense decreased $66 million, or
2 percent, from the prior quarter, primarily driven by lower personnel
expenses from seasonally higher first quarter expense, partially offset
by higher broker commissions. The provision for credit losses was up
$16 million from first quarter 2016 due to higher net charge-offs.
Net income was relatively flat compared with second quarter 2015.
Revenue decreased $57 million, or 1 percent, from a year ago primarily
driven by lower asset-based fees and brokerage transaction revenue,
partially offset by higher net interest income as average loans
increased $7.4 billion, or 12 percent, to $66.7 billion. Noninterest
expense decreased $62 million, or 2 percent, from a year ago, primarily
due to lower operating losses. The provision for credit losses increased
$12 million from a year ago primarily due to higher net charge-offs.
Retail Brokerage
-
Client assets of $1.5 trillion, up 2 percent from prior year
-
Advisory assets of $444 billion, up 2 percent from prior year,
primarily driven by positive net flows
-
Strong loan growth, with average balances up 20 percent from prior
year largely due to continued growth in non-conforming mortgage loans
and security-based lending
Wealth Management
-
Client assets of $224 billion, stable from prior year
-
Average loan balances up 9 percent over prior year primarily driven by
continued growth in non-conforming mortgage loans, commercial loans
and security-based lending
Retirement
-
IRA assets of $367 billion, up 1 percent from prior year
-
Institutional Retirement plan assets of $337 billion, down 3 percent
from prior year
Asset Management
-
Total assets under management of $484 billion, down 1 percent from
prior year primarily due to equity fund outflows, partially offset by
favorable fixed income net inflows and higher market valuations
Conference Call
The Company will host a live conference call on Friday, July 15, at 7
a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S.
and Canada) or 706-643-1962 (International). The call will also be
available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/rt/wells_fargo_ao~071516.
A replay of the conference call will be available beginning at 10 a.m.
PT (1 p.m. ET) on Friday, July 15 through Friday, July 29. Please dial
855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter
Conference ID #96514871. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and at https://engage.vevent.com/rt/wells_fargo_ao~071516.
|
|
|
Endnotes
|
|
1
|
|
Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to assess
the Company's ability to generate capital to cover credit losses
through a credit cycle.
|
|
2
|
|
Reserve build represents the amount by which the provision for
credit losses exceeds net charge-offs, while reserve release
represents the amount by which net charge-offs exceed the provision
for credit losses.
|
|
3
|
|
See table on page 36 for more information on Common Equity Tier 1.
Common Equity Tier 1 (fully phased-in) is a preliminary estimate and
is calculated assuming the full phase-in of the Basel III capital
rules.
|
|
4
|
|
Net payout ratio means the ratio of (i) common stock dividends and
share repurchases less issuances and stock compensation-related
items, divided by (ii) net income applicable to common stock.
|
|
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 41 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 May 2016, comparisons with May 2015.
|
|
8
|
|
Combined consumer and business debit card purchase volume dollars.
|
|
9
|
|
Effective second quarter 2016, Retail Banking households reflect
only those households that maintain a retail checking account, which
we believe provides the foundation for long-term retail banking
relationships. Additionally, we updated the products included to
capture business products in addition to retail products that have
the potential for revenue generation and long-term viability.
Products and services that generally do not meet these criteria -
such as ATM cards, online banking, bill pay and direct deposit - are
not included. Prior period metrics have been revised to conform with
the updated methodology.
|
|
10
|
|
U.S. SBA data, partial fiscal year as of June 2016 (federal fiscal
full-year 2016 is October 2015-September 2016).
|
|
11
|
|
Primarily includes retail banking, consumer lending, small business
and business banking customers.
|
|
12
|
|
Effective second quarter 2016, Retail Banking households reflect
only those households that maintain a retail checking account, which
we believe provides the foundation for long-term retail banking
relationships. Prior period metrics have been revised to conform
with the updated methodology.
|
|
|
|
|
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,”
“could,” “should,” “can” and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance levels; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital levels
or targets and our estimated Common Equity Tier 1 ratio under Basel III
capital standards; (viii) the performance of our mortgage business and
any related exposures; (ix) the expected outcome and impact of legal,
regulatory and legislative developments, as well as our expectations
regarding compliance therewith; (x) future common stock dividends,
common share repurchases and other uses of capital; (xi) our targeted
range for return on assets and return on equity; (xii) the outcome of
contingencies, such as legal proceedings; and (xiii) the Company’s
plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead
represent our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance that any
list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the following, without
limitation:
-
current and future economic and market conditions, including the
effects of declines in housing prices, high unemployment rates, U.S.
fiscal debt, budget and tax matters, geopolitical matters, and the
overall slowdown in global economic growth;
-
our capital and liquidity requirements (including under regulatory
capital standards, such as the Basel III capital standards) and our
ability to generate capital internally or raise capital on favorable
terms;
-
financial services reform and other current, pending or future
legislation or regulation that could have a negative effect on our
revenue and businesses, including the Dodd-Frank Act and other
legislation and regulation relating to bank products and services;
-
the extent of our success in our loan modification efforts, as well as
the effects of regulatory requirements or guidance regarding loan
modifications;
-
the amount of mortgage loan repurchase demands that we receive and our
ability to satisfy any such demands without having to repurchase loans
related thereto or otherwise indemnify or reimburse third parties, and
the credit quality of or losses on such repurchased mortgage loans;
-
negative effects relating to our mortgage servicing and foreclosure
practices, as well as changes in industry standards or practices,
regulatory or judicial requirements, penalties or fines, increased
servicing and other costs or obligations, including loan modification
requirements, or delays or moratoriums on foreclosures;
-
our ability to realize our efficiency ratio target as part of our
expense management initiatives, including as a result of business and
economic cyclicality, seasonality, changes in our business composition
and operating environment, growth in our businesses and/or
acquisitions, and unexpected expenses relating to, among other things,
litigation and regulatory matters;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
significant turbulence or a disruption in the capital or financial
markets, which could result in, among other things, reduced investor
demand for mortgage loans, a reduction in the availability of funding
or increased funding costs, and declines in asset values and/or
recognition of other-than-temporary impairment on securities held in
our investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2015.
In addition to the above factors, we also caution that the amount and
timing of any future common stock dividends or repurchases will depend
on the earnings, cash requirements and financial condition of the
Company, market conditions, capital requirements (including under Basel
capital standards), common stock issuance requirements, applicable law
and regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by the Company’s Board
of Directors, and may be subject to regulatory approval or conditions.
For more information about factors that could cause actual results to
differ materially from our expectations, refer to our reports filed with
the Securities and Exchange Commission, including the discussion under
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2015, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Founded in 1852
and headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial finance
through more than 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com)
and mobile banking, and has offices in 36 countries and territories to
support customers who conduct business in the global economy. With
approximately 268,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 27
on Fortune’s 2016 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and help
them succeed financially.
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
QUARTERLY FINANCIAL DATA
|
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
|
|
Pages
|
|
|
|
|
|
|
Summary Information
|
|
|
|
|
Summary Financial Data
|
|
|
16
|
|
|
|
|
|
|
Income
|
|
|
|
|
Consolidated Statement of Income
|
|
|
18
|
|
Consolidated Statement of Comprehensive Income
|
|
|
20
|
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
|
20
|
|
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
|
21
|
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
|
23
|
|
Noninterest Income and Noninterest Expense
|
|
|
24
|
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
Consolidated Balance Sheet
|
|
|
26
|
|
Investment Securities
|
|
|
28
|
|
|
|
|
|
|
Loans
|
|
|
|
|
Loans
|
|
|
28
|
|
Nonperforming Assets
|
|
|
29
|
|
Loans 90 Days or More Past Due and Still Accruing
|
|
|
30
|
|
Purchased Credit-Impaired Loans
|
|
|
31
|
|
Pick-A-Pay Portfolio
|
|
|
32
|
|
Changes in Allowance for Credit Losses
|
|
|
34
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Tangible Common Equity
|
|
|
35
|
|
Common Equity Tier 1 Under Basel III
|
|
|
36
|
|
|
|
|
|
|
Operating Segments
|
|
|
|
|
Operating Segment Results
|
|
|
37
|
|
|
|
|
|
|
Other
|
|
|
|
|
Mortgage Servicing and other related data
|
|
|
39
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Jun 30, 2016 from
|
|
|
|
Six months ended
|
|
|
|
|
|
|
($ in millions, except per share
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Jun 30,
|
|
|
|
Jun 30,
|
|
|
|
Jun 30,
|
|
|
|
%
|
|
|
amounts)
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$
|
5,558
|
|
|
|
5,462
|
|
|
|
5,719
|
|
|
|
2
|
%
|
|
|
(3
|
)
|
|
|
$
|
11,020
|
|
|
|
11,523
|
|
|
|
(4
|
)%
|
|
Wells Fargo net income applicable to common stock
|
|
|
|
5,173
|
|
|
|
5,085
|
|
|
|
5,363
|
|
|
|
2
|
|
|
|
(4
|
)
|
|
|
|
10,258
|
|
|
|
10,824
|
|
|
|
(5
|
)
|
|
Diluted earnings per common share
|
|
|
|
1.01
|
|
|
|
0.99
|
|
|
|
1.03
|
|
|
|
2
|
|
|
|
(2
|
)
|
|
|
|
2.00
|
|
|
|
2.07
|
|
|
|
(3
|
)
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
|
1.20
|
%
|
|
|
1.21
|
|
|
|
1.33
|
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
|
1.20
|
|
|
|
1.35
|
|
|
|
(11
|
)
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
|
11.70
|
|
|
|
11.75
|
|
|
|
12.71
|
|
|
|
—
|
|
|
|
(8
|
)
|
|
|
|
11.72
|
|
|
|
12.94
|
|
|
|
(9
|
)
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
|
14.15
|
|
|
|
14.15
|
|
|
|
15.32
|
|
|
|
—
|
|
|
|
(8
|
)
|
|
|
|
14.15
|
|
|
|
15.61
|
|
|
|
(9
|
)
|
|
Efficiency ratio (2)
|
|
|
|
58.1
|
|
|
|
58.7
|
|
|
|
58.5
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
|
58.4
|
|
|
|
58.6
|
|
|
|
—
|
|
|
Total revenue
|
|
|
$
|
22,162
|
|
|
|
22,195
|
|
|
|
21,318
|
|
|
|
—
|
|
|
|
4
|
|
|
|
$
|
44,357
|
|
|
|
42,596
|
|
|
|
4
|
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
|
9,296
|
|
|
|
9,167
|
|
|
|
8,849
|
|
|
|
1
|
|
|
|
5
|
|
|
|
|
18,463
|
|
|
|
17,620
|
|
|
|
5
|
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
|
1
|
|
|
|
1
|
|
|
|
|
0.755
|
|
|
|
0.725
|
|
|
|
4
|
|
|
Average common shares outstanding
|
|
|
|
5,066.9
|
|
|
|
5,075.7
|
|
|
|
5,151.9
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
|
5,071.3
|
|
|
|
5,156.1
|
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
|
5,118.1
|
|
|
|
5,139.4
|
|
|
|
5,220.5
|
|
|
|
—
|
|
|
|
(2
|
)
|
|
|
|
5,129.8
|
|
|
|
5,233.2
|
|
|
|
(2
|
)
|
|
Average loans
|
|
|
$
|
950,751
|
|
|
|
927,220
|
|
|
|
870,446
|
|
|
|
3
|
|
|
|
9
|
|
|
|
$
|
938,986
|
|
|
|
866,873
|
|
|
|
8
|
|
|
Average assets
|
|
|
|
1,862,084
|
|
|
|
1,819,875
|
|
|
|
1,729,278
|
|
|
|
2
|
|
|
|
8
|
|
|
|
|
1,840,980
|
|
|
|
1,718,597
|
|
|
|
7
|
|
|
Average total deposits
|
|
|
|
1,236,658
|
|
|
|
1,219,430
|
|
|
|
1,185,304
|
|
|
|
1
|
|
|
|
4
|
|
|
|
|
1,228,044
|
|
|
|
1,180,077
|
|
|
|
4
|
|
|
Average consumer and small business banking deposits (4)
|
|
|
|
726,359
|
|
|
|
714,837
|
|
|
|
674,889
|
|
|
|
2
|
|
|
|
8
|
|
|
|
|
720,598
|
|
|
|
670,418
|
|
|
|
7
|
|
|
Net interest margin
|
|
|
|
2.86
|
%
|
|
|
2.90
|
|
|
|
2.97
|
|
|
|
(1
|
)
|
|
|
(4
|
)
|
|
|
|
2.88
|
|
|
|
2.96
|
|
|
|
(3
|
)
|
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$
|
353,426
|
|
|
|
334,899
|
|
|
|
340,769
|
|
|
|
6
|
|
|
|
4
|
|
|
|
$
|
353,426
|
|
|
|
340,769
|
|
|
|
4
|
|
|
Loans
|
|
|
|
957,157
|
|
|
|
947,258
|
|
|
|
888,459
|
|
|
|
1
|
|
|
|
8
|
|
|
|
|
957,157
|
|
|
|
888,459
|
|
|
|
8
|
|
|
Allowance for loan losses
|
|
|
|
11,664
|
|
|
|
11,621
|
|
|
|
11,754
|
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
|
11,664
|
|
|
|
11,754
|
|
|
|
(1
|
)
|
|
Goodwill
|
|
|
|
26,963
|
|
|
|
27,003
|
|
|
|
25,705
|
|
|
|
—
|
|
|
|
5
|
|
|
|
|
26,963
|
|
|
|
25,705
|
|
|
|
5
|
|
|
Assets
|
|
|
|
1,889,235
|
|
|
|
1,849,182
|
|
|
|
1,720,617
|
|
|
|
2
|
|
|
|
10
|
|
|
|
|
1,889,235
|
|
|
|
1,720,617
|
|
|
|
10
|
|
|
Deposits
|
|
|
|
1,245,473
|
|
|
|
1,241,490
|
|
|
|
1,185,828
|
|
|
|
—
|
|
|
|
5
|
|
|
|
|
1,245,473
|
|
|
|
1,185,828
|
|
|
|
5
|
|
|
Common stockholders' equity
|
|
|
|
178,633
|
|
|
|
175,534
|
|
|
|
169,596
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
178,633
|
|
|
|
169,596
|
|
|
|
5
|
|
|
Wells Fargo stockholders’ equity
|
|
|
|
201,745
|
|
|
|
197,496
|
|
|
|
189,558
|
|
|
|
2
|
|
|
|
6
|
|
|
|
|
201,745
|
|
|
|
189,558
|
|
|
|
6
|
|
|
Total equity
|
|
|
|
202,661
|
|
|
|
198,504
|
|
|
|
190,676
|
|
|
|
2
|
|
|
|
6
|
|
|
|
|
202,661
|
|
|
|
190,676
|
|
|
|
6
|
|
|
Tangible common equity (1)
|
|
|
|
148,110
|
|
|
|
144,679
|
|
|
|
140,520
|
|
|
|
2
|
|
|
|
5
|
|
|
|
|
148,110
|
|
|
|
140,520
|
|
|
|
5
|
|
|
Common shares outstanding
|
|
|
|
5,048.5
|
|
|
|
5,075.9
|
|
|
|
5,145.2
|
|
|
|
(1
|
)
|
|
|
(2
|
)
|
|
|
|
5,048.5
|
|
|
|
5,145.2
|
|
|
|
(2
|
)
|
|
Book value per common share (5)
|
|
|
$
|
35.38
|
|
|
|
34.58
|
|
|
|
32.96
|
|
|
|
2
|
|
|
|
7
|
|
|
|
$
|
35.38
|
|
|
|
32.96
|
|
|
|
7
|
|
|
Tangible book value per common share (1)(5)
|
|
|
|
29.34
|
|
|
|
28.50
|
|
|
|
27.31
|
|
|
|
3
|
|
|
|
7
|
|
|
|
|
29.34
|
|
|
|
27.31
|
|
|
|
7
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
|
51.41
|
|
|
|
53.27
|
|
|
|
58.26
|
|
|
|
(3
|
)
|
|
|
(12
|
)
|
|
|
|
53.27
|
|
|
|
58.26
|
|
|
|
(9
|
)
|
|
Low
|
|
|
|
44.50
|
|
|
|
44.50
|
|
|
|
53.56
|
|
|
|
—
|
|
|
|
(17
|
)
|
|
|
|
44.50
|
|
|
|
50.42
|
|
|
|
(12
|
)
|
|
Period end
|
|
|
|
47.33
|
|
|
|
48.36
|
|
|
|
56.24
|
|
|
|
(2
|
)
|
|
|
(16
|
)
|
|
|
|
47.33
|
|
|
|
56.24
|
|
|
|
(16
|
)
|
|
Team members (active, full-time equivalent)
|
|
|
|
267,900
|
|
|
|
268,600
|
|
|
|
265,800
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
267,900
|
|
|
|
265,800
|
|
|
|
1
|
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
|
(4) Consumer and small business banking deposits are total deposits
excluding mortgage escrow and wholesale deposits.
|
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
|
FIVE QUARTER SUMMARY FINANCIAL DATA
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
($ in millions, except per share amounts)
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
|
$5,558
|
|
|
|
5,462
|
|
|
|
5,575
|
|
|
|
5,796
|
|
|
|
5,719
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
5,173
|
|
|
|
5,085
|
|
|
|
5,203
|
|
|
|
5,443
|
|
|
|
5,363
|
|
|
Diluted earnings per common share
|
|
|
1.01
|
|
|
|
0.99
|
|
|
|
1.00
|
|
|
|
1.05
|
|
|
|
1.03
|
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.20
|
%
|
|
|
1.21
|
|
|
|
1.24
|
|
|
|
1.32
|
|
|
|
1.33
|
|
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
11.70
|
|
|
|
11.75
|
|
|
|
11.93
|
|
|
|
12.62
|
|
|
|
12.71
|
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
14.15
|
|
|
|
14.15
|
|
|
|
14.30
|
|
|
|
15.19
|
|
|
|
15.32
|
|
|
Efficiency ratio (2)
|
|
|
58.1
|
|
|
|
58.7
|
|
|
|
58.4
|
|
|
|
56.7
|
|
|
|
58.5
|
|
|
Total revenue
|
|
|
$22,162
|
|
|
|
22,195
|
|
|
|
21,586
|
|
|
|
21,875
|
|
|
|
21,318
|
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
9,296
|
|
|
|
9,167
|
|
|
|
8,987
|
|
|
|
9,476
|
|
|
|
8,849
|
|
|
Dividends declared per common share
|
|
|
0.380
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
Average common shares outstanding
|
|
|
5,066.9
|
|
|
|
5,075.7
|
|
|
|
5,108.5
|
|
|
|
5,125.8
|
|
|
|
5,151.9
|
|
|
Diluted average common shares outstanding
|
|
|
5,118.1
|
|
|
|
5,139.4
|
|
|
|
5,177.9
|
|
|
|
5,193.8
|
|
|
|
5,220.5
|
|
|
Average loans
|
|
|
$950,751
|
|
|
|
927,220
|
|
|
|
912,280
|
|
|
|
895,095
|
|
|
|
870,446
|
|
|
Average assets
|
|
|
1,862,084
|
|
|
|
1,819,875
|
|
|
|
1,787,287
|
|
|
|
1,746,402
|
|
|
|
1,729,278
|
|
|
Average total deposits
|
|
|
1,236,658
|
|
|
|
1,219,430
|
|
|
|
1,216,809
|
|
|
|
1,198,874
|
|
|
|
1,185,304
|
|
|
Average consumer and small business banking deposits (4)
|
|
|
726,359
|
|
|
|
714,837
|
|
|
|
696,484
|
|
|
|
683,245
|
|
|
|
674,889
|
|
|
Net interest margin
|
|
|
2.86
|
%
|
|
|
2.90
|
|
|
|
2.92
|
|
|
|
2.96
|
|
|
|
2.97
|
|
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
|
$353,426
|
|
|
|
334,899
|
|
|
|
347,555
|
|
|
|
345,074
|
|
|
|
340,769
|
|
|
Loans
|
|
|
957,157
|
|
|
|
947,258
|
|
|
|
916,559
|
|
|
|
903,233
|
|
|
|
888,459
|
|
|
Allowance for loan losses
|
|
|
11,664
|
|
|
|
11,621
|
|
|
|
11,545
|
|
|
|
11,659
|
|
|
|
11,754
|
|
|
Goodwill
|
|
|
26,963
|
|
|
|
27,003
|
|
|
|
25,529
|
|
|
|
25,684
|
|
|
|
25,705
|
|
|
Assets
|
|
|
1,889,235
|
|
|
|
1,849,182
|
|
|
|
1,787,632
|
|
|
|
1,751,265
|
|
|
|
1,720,617
|
|
|
Deposits
|
|
|
1,245,473
|
|
|
|
1,241,490
|
|
|
|
1,223,312
|
|
|
|
1,202,179
|
|
|
|
1,185,828
|
|
|
Common stockholders' equity
|
|
|
178,633
|
|
|
|
175,534
|
|
|
|
172,036
|
|
|
|
172,089
|
|
|
|
169,596
|
|
|
Wells Fargo stockholders’ equity
|
|
|
201,745
|
|
|
|
197,496
|
|
|
|
192,998
|
|
|
|
193,051
|
|
|
|
189,558
|
|
|
Total equity
|
|
|
202,661
|
|
|
|
198,504
|
|
|
|
193,891
|
|
|
|
194,043
|
|
|
|
190,676
|
|
|
Tangible common equity (1)
|
|
|
148,110
|
|
|
|
144,679
|
|
|
|
143,337
|
|
|
|
143,352
|
|
|
|
140,520
|
|
|
Common shares outstanding
|
|
|
5,048.5
|
|
|
|
5,075.9
|
|
|
|
5,092.1
|
|
|
|
5,108.5
|
|
|
|
5,145.2
|
|
|
Book value per common share (5)
|
|
|
$35.38
|
|
|
|
34.58
|
|
|
|
33.78
|
|
|
|
33.69
|
|
|
|
32.96
|
|
|
Tangible book value per common share (1)(5)
|
|
|
29.34
|
|
|
|
28.50
|
|
|
|
28.15
|
|
|
|
28.06
|
|
|
|
27.31
|
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
51.41
|
|
|
|
53.27
|
|
|
|
56.34
|
|
|
|
58.77
|
|
|
|
58.26
|
|
|
Low
|
|
|
44.50
|
|
|
|
44.50
|
|
|
|
49.51
|
|
|
|
47.75
|
|
|
|
53.56
|
|
|
Period end
|
|
|
47.33
|
|
|
|
48.36
|
|
|
|
54.36
|
|
|
|
51.35
|
|
|
|
56.24
|
|
|
Team members (active, full-time equivalent)
|
|
|
267,900
|
|
|
|
268,600
|
|
|
|
264,700
|
|
|
|
265,200
|
|
|
|
265,800
|
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
|
|
|
(2) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
|
(3) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
|
|
|
(4) Consumer and small business banking deposits are total
deposits excluding mortgage escrow and wholesale deposits.
|
|
|
(5) Book value per common share is common stockholders' equity
divided by common shares outstanding. Tangible book value per
common share is tangible common equity divided by common shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
|
Six months ended June 30,
|
|
|
%
|
|
|
(in millions, except per share amounts)
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
572
|
|
|
|
483
|
|
|
|
18
|
%
|
|
|
$
|
1,168
|
|
|
|
928
|
|
|
|
26
|
%
|
|
Investment securities
|
|
|
|
2,176
|
|
|
|
2,181
|
|
|
|
—
|
|
|
|
|
4,438
|
|
|
|
4,325
|
|
|
|
3
|
|
|
Mortgages held for sale
|
|
|
|
181
|
|
|
|
209
|
|
|
|
(13
|
)
|
|
|
|
342
|
|
|
|
386
|
|
|
|
(11
|
)
|
|
Loans held for sale
|
|
|
|
3
|
|
|
|
5
|
|
|
|
(40
|
)
|
|
|
|
5
|
|
|
|
10
|
|
|
|
(50
|
)
|
|
Loans
|
|
|
|
9,822
|
|
|
|
9,098
|
|
|
|
8
|
|
|
|
|
19,399
|
|
|
|
18,036
|
|
|
|
8
|
|
|
Other interest income
|
|
|
|
392
|
|
|
|
250
|
|
|
|
57
|
|
|
|
|
766
|
|
|
|
504
|
|
|
|
52
|
|
|
Total interest income
|
|
|
|
13,146
|
|
|
|
12,226
|
|
|
|
8
|
|
|
|
|
26,118
|
|
|
|
24,189
|
|
|
|
8
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
332
|
|
|
|
232
|
|
|
|
43
|
|
|
|
|
639
|
|
|
|
490
|
|
|
|
30
|
|
|
Short-term borrowings
|
|
|
|
77
|
|
|
|
21
|
|
|
|
267
|
|
|
|
|
144
|
|
|
|
39
|
|
|
|
269
|
|
|
Long-term debt
|
|
|
|
921
|
|
|
|
620
|
|
|
|
49
|
|
|
|
|
1,763
|
|
|
|
1,224
|
|
|
|
44
|
|
|
Other interest expense
|
|
|
|
83
|
|
|
|
83
|
|
|
|
—
|
|
|
|
|
172
|
|
|
|
180
|
|
|
|
(4
|
)
|
|
Total interest expense
|
|
|
|
1,413
|
|
|
|
956
|
|
|
|
48
|
|
|
|
|
2,718
|
|
|
|
1,933
|
|
|
|
41
|
|
|
Net interest income
|
|
|
|
11,733
|
|
|
|
11,270
|
|
|
|
4
|
|
|
|
|
23,400
|
|
|
|
22,256
|
|
|
|
5
|
|
|
Provision for credit losses
|
|
|
|
1,074
|
|
|
|
300
|
|
|
|
258
|
|
|
|
|
2,160
|
|
|
|
908
|
|
|
|
138
|
|
|
Net interest income after provision for credit losses
|
|
|
|
10,659
|
|
|
|
10,970
|
|
|
|
(3
|
)
|
|
|
|
21,240
|
|
|
|
21,348
|
|
|
|
(1
|
)
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,336
|
|
|
|
1,289
|
|
|
|
4
|
|
|
|
|
2,645
|
|
|
|
2,504
|
|
|
|
6
|
|
|
Trust and investment fees
|
|
|
|
3,547
|
|
|
|
3,710
|
|
|
|
(4
|
)
|
|
|
|
6,932
|
|
|
|
7,387
|
|
|
|
(6
|
)
|
|
Card fees
|
|
|
|
997
|
|
|
|
930
|
|
|
|
7
|
|
|
|
|
1,938
|
|
|
|
1,801
|
|
|
|
8
|
|
|
Other fees
|
|
|
|
906
|
|
|
|
1,107
|
|
|
|
(18
|
)
|
|
|
|
1,839
|
|
|
|
2,185
|
|
|
|
(16
|
)
|
|
Mortgage banking
|
|
|
|
1,414
|
|
|
|
1,705
|
|
|
|
(17
|
)
|
|
|
|
3,012
|
|
|
|
3,252
|
|
|
|
(7
|
)
|
|
Insurance
|
|
|
|
286
|
|
|
|
461
|
|
|
|
(38
|
)
|
|
|
|
713
|
|
|
|
891
|
|
|
|
(20
|
)
|
|
Net gains from trading activities
|
|
|
|
328
|
|
|
|
133
|
|
|
|
147
|
|
|
|
|
528
|
|
|
|
541
|
|
|
|
(2
|
)
|
|
Net gains on debt securities
|
|
|
|
447
|
|
|
|
181
|
|
|
|
147
|
|
|
|
|
691
|
|
|
|
459
|
|
|
|
51
|
|
|
Net gains from equity investments
|
|
|
|
189
|
|
|
|
517
|
|
|
|
(63
|
)
|
|
|
|
433
|
|
|
|
887
|
|
|
|
(51
|
)
|
|
Lease income
|
|
|
|
497
|
|
|
|
155
|
|
|
|
221
|
|
|
|
|
870
|
|
|
|
287
|
|
|
|
203
|
|
|
Other
|
|
|
|
482
|
|
|
|
(140
|
)
|
|
|
NM
|
|
|
|
|
1,356
|
|
|
|
146
|
|
|
|
829
|
|
|
Total noninterest income
|
|
|
|
10,429
|
|
|
|
10,048
|
|
|
|
4
|
|
|
|
|
20,957
|
|
|
|
20,340
|
|
|
|
3
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,099
|
|
|
|
3,936
|
|
|
|
4
|
|
|
|
|
8,135
|
|
|
|
7,787
|
|
|
|
4
|
|
|
Commission and incentive compensation
|
|
|
|
2,604
|
|
|
|
2,606
|
|
|
|
—
|
|
|
|
|
5,249
|
|
|
|
5,291
|
|
|
|
(1
|
)
|
|
Employee benefits
|
|
|
|
1,244
|
|
|
|
1,106
|
|
|
|
12
|
|
|
|
|
2,770
|
|
|
|
2,583
|
|
|
|
7
|
|
|
Equipment
|
|
|
|
493
|
|
|
|
470
|
|
|
|
5
|
|
|
|
|
1,021
|
|
|
|
964
|
|
|
|
6
|
|
|
Net occupancy
|
|
|
|
716
|
|
|
|
710
|
|
|
|
1
|
|
|
|
|
1,427
|
|
|
|
1,433
|
|
|
|
—
|
|
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
|
312
|
|
|
|
(4
|
)
|
|
|
|
592
|
|
|
|
624
|
|
|
|
(5
|
)
|
|
FDIC and other deposit assessments
|
|
|
|
255
|
|
|
|
222
|
|
|
|
15
|
|
|
|
|
505
|
|
|
|
470
|
|
|
|
7
|
|
|
Other
|
|
|
|
3,156
|
|
|
|
3,107
|
|
|
|
2
|
|
|
|
|
6,195
|
|
|
|
5,824
|
|
|
|
6
|
|
|
Total noninterest expense
|
|
|
|
12,866
|
|
|
|
12,469
|
|
|
|
3
|
|
|
|
|
25,894
|
|
|
|
24,976
|
|
|
|
4
|
|
|
Income before income tax expense
|
|
|
|
8,222
|
|
|
|
8,549
|
|
|
|
(4
|
)
|
|
|
|
16,303
|
|
|
|
16,712
|
|
|
|
(2
|
)
|
|
Income tax expense
|
|
|
|
2,649
|
|
|
|
2,763
|
|
|
|
(4
|
)
|
|
|
|
5,216
|
|
|
|
5,042
|
|
|
|
3
|
|
|
Net income before noncontrolling interests
|
|
|
|
5,573
|
|
|
|
5,786
|
|
|
|
(4
|
)
|
|
|
|
11,087
|
|
|
|
11,670
|
|
|
|
(5
|
)
|
|
Less: Net income from noncontrolling interests
|
|
|
|
15
|
|
|
|
67
|
|
|
|
(78
|
)
|
|
|
|
67
|
|
|
|
147
|
|
|
|
(54
|
)
|
|
Wells Fargo net income
|
|
|
$
|
5,558
|
|
|
|
5,719
|
|
|
|
(3
|
)
|
|
|
$
|
11,020
|
|
|
|
11,523
|
|
|
|
(4
|
)
|
|
Less: Preferred stock dividends and other
|
|
|
|
385
|
|
|
|
356
|
|
|
|
8
|
|
|
|
|
762
|
|
|
|
699
|
|
|
|
9
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,173
|
|
|
|
5,363
|
|
|
|
(4
|
)
|
|
|
$
|
10,258
|
|
|
|
10,824
|
|
|
|
(5
|
)
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.02
|
|
|
|
1.04
|
|
|
|
(2
|
)
|
|
|
$
|
2.02
|
|
|
|
2.10
|
|
|
|
(4
|
)
|
|
Diluted earnings per common share
|
|
|
|
1.01
|
|
|
|
1.03
|
|
|
|
(2
|
)
|
|
|
|
2.00
|
|
|
|
2.07
|
|
|
|
(3
|
)
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.375
|
|
|
|
1
|
|
|
|
|
0.755
|
|
|
|
0.725
|
|
|
|
4
|
|
|
Average common shares outstanding
|
|
|
|
5,066.9
|
|
|
|
5,151.9
|
|
|
|
(2
|
)
|
|
|
|
5,071.3
|
|
|
|
5,156.1
|
|
|
|
(2
|
)
|
|
Diluted average common shares outstanding
|
|
|
|
5,118.1
|
|
|
|
5,220.5
|
|
|
|
(2
|
)
|
|
|
|
5,129.8
|
|
|
|
5,233.2
|
|
|
|
(2
|
)
|
|
NM – Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
|
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
(in millions, except per share amounts)
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
572
|
|
|
|
596
|
|
|
|
558
|
|
|
|
485
|
|
|
|
483
|
|
|
Investment securities
|
|
|
|
2,176
|
|
|
|
2,262
|
|
|
|
2,323
|
|
|
|
2,289
|
|
|
|
2,181
|
|
|
Mortgages held for sale
|
|
|
|
181
|
|
|
|
161
|
|
|
|
176
|
|
|
|
223
|
|
|
|
209
|
|
|
Loans held for sale
|
|
|
|
3
|
|
|
|
2
|
|
|
|
5
|
|
|
|
4
|
|
|
|
5
|
|
|
Loans
|
|
|
|
9,822
|
|
|
|
9,577
|
|
|
|
9,323
|
|
|
|
9,216
|
|
|
|
9,098
|
|
|
Other interest income
|
|
|
|
392
|
|
|
|
374
|
|
|
|
258
|
|
|
|
228
|
|
|
|
250
|
|
|
Total interest income
|
|
|
|
13,146
|
|
|
|
12,972
|
|
|
|
12,643
|
|
|
|
12,445
|
|
|
|
12,226
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
332
|
|
|
|
307
|
|
|
|
241
|
|
|
|
232
|
|
|
|
232
|
|
|
Short-term borrowings
|
|
|
|
77
|
|
|
|
67
|
|
|
|
13
|
|
|
|
12
|
|
|
|
21
|
|
|
Long-term debt
|
|
|
|
921
|
|
|
|
842
|
|
|
|
713
|
|
|
|
655
|
|
|
|
620
|
|
|
Other interest expense
|
|
|
|
83
|
|
|
|
89
|
|
|
|
88
|
|
|
|
89
|
|
|
|
83
|
|
|
Total interest expense
|
|
|
|
1,413
|
|
|
|
1,305
|
|
|
|
1,055
|
|
|
|
988
|
|
|
|
956
|
|
|
Net interest income
|
|
|
|
11,733
|
|
|
|
11,667
|
|
|
|
11,588
|
|
|
|
11,457
|
|
|
|
11,270
|
|
|
Provision for credit losses
|
|
|
|
1,074
|
|
|
|
1,086
|
|
|
|
831
|
|
|
|
703
|
|
|
|
300
|
|
|
Net interest income after provision for credit losses
|
|
|
|
10,659
|
|
|
|
10,581
|
|
|
|
10,757
|
|
|
|
10,754
|
|
|
|
10,970
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,336
|
|
|
|
1,309
|
|
|
|
1,329
|
|
|
|
1,335
|
|
|
|
1,289
|
|
|
Trust and investment fees
|
|
|
|
3,547
|
|
|
|
3,385
|
|
|
|
3,511
|
|
|
|
3,570
|
|
|
|
3,710
|
|
|
Card fees
|
|
|
|
997
|
|
|
|
941
|
|
|
|
966
|
|
|
|
953
|
|
|
|
930
|
|
|
Other fees
|
|
|
|
906
|
|
|
|
933
|
|
|
|
1,040
|
|
|
|
1,099
|
|
|
|
1,107
|
|
|
Mortgage banking
|
|
|
|
1,414
|
|
|
|
1,598
|
|
|
|
1,660
|
|
|
|
1,589
|
|
|
|
1,705
|
|
|
Insurance
|
|
|
|
286
|
|
|
|
427
|
|
|
|
427
|
|
|
|
376
|
|
|
|
461
|
|
|
Net gains (losses) from trading activities
|
|
|
|
328
|
|
|
|
200
|
|
|
|
99
|
|
|
|
(26
|
)
|
|
|
133
|
|
|
Net gains on debt securities
|
|
|
|
447
|
|
|
|
244
|
|
|
|
346
|
|
|
|
147
|
|
|
|
181
|
|
|
Net gains from equity investments
|
|
|
|
189
|
|
|
|
244
|
|
|
|
423
|
|
|
|
920
|
|
|
|
517
|
|
|
Lease income
|
|
|
|
497
|
|
|
|
373
|
|
|
|
145
|
|
|
|
189
|
|
|
|
155
|
|
|
Other
|
|
|
|
482
|
|
|
|
874
|
|
|
|
52
|
|
|
|
266
|
|
|
|
(140
|
)
|
|
Total noninterest income
|
|
|
|
10,429
|
|
|
|
10,528
|
|
|
|
9,998
|
|
|
|
10,418
|
|
|
|
10,048
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,099
|
|
|
|
4,036
|
|
|
|
4,061
|
|
|
|
4,035
|
|
|
|
3,936
|
|
|
Commission and incentive compensation
|
|
|
|
2,604
|
|
|
|
2,645
|
|
|
|
2,457
|
|
|
|
2,604
|
|
|
|
2,606
|
|
|
Employee benefits
|
|
|
|
1,244
|
|
|
|
1,526
|
|
|
|
1,042
|
|
|
|
821
|
|
|
|
1,106
|
|
|
Equipment
|
|
|
|
493
|
|
|
|
528
|
|
|
|
640
|
|
|
|
459
|
|
|
|
470
|
|
|
Net occupancy
|
|
|
|
716
|
|
|
|
711
|
|
|
|
725
|
|
|
|
728
|
|
|
|
710
|
|
|
Core deposit and other intangibles
|
|
|
|
299
|
|
|
|
293
|
|
|
|
311
|
|
|
|
311
|
|
|
|
312
|
|
|
FDIC and other deposit assessments
|
|
|
|
255
|
|
|
|
250
|
|
|
|
258
|
|
|
|
245
|
|
|
|
222
|
|
|
Other
|
|
|
|
3,156
|
|
|
|
3,039
|
|
|
|
3,105
|
|
|
|
3,196
|
|
|
|
3,107
|
|
|
Total noninterest expense
|
|
|
|
12,866
|
|
|
|
13,028
|
|
|
|
12,599
|
|
|
|
12,399
|
|
|
|
12,469
|
|
|
Income before income tax expense
|
|
|
|
8,222
|
|
|
|
8,081
|
|
|
|
8,156
|
|
|
|
8,773
|
|
|
|
8,549
|
|
|
Income tax expense
|
|
|
|
2,649
|
|
|
|
2,567
|
|
|
|
2,533
|
|
|
|
2,790
|
|
|
|
2,763
|
|
|
Net income before noncontrolling interests
|
|
|
|
5,573
|
|
|
|
5,514
|
|
|
|
5,623
|
|
|
|
5,983
|
|
|
|
5,786
|
|
|
Less: Net income from noncontrolling interests
|
|
|
|
15
|
|
|
|
52
|
|
|
|
48
|
|
|
|
187
|
|
|
|
67
|
|
|
Wells Fargo net income
|
|
|
$
|
5,558
|
|
|
|
5,462
|
|
|
|
5,575
|
|
|
|
5,796
|
|
|
|
5,719
|
|
|
Less: Preferred stock dividends and other
|
|
|
|
385
|
|
|
|
377
|
|
|
|
372
|
|
|
|
353
|
|
|
|
356
|
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,173
|
|
|
|
5,085
|
|
|
|
5,203
|
|
|
|
5,443
|
|
|
|
5,363
|
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.02
|
|
|
|
1.00
|
|
|
|
1.02
|
|
|
|
1.06
|
|
|
|
1.04
|
|
|
Diluted earnings per common share
|
|
|
|
1.01
|
|
|
|
0.99
|
|
|
|
1.00
|
|
|
|
1.05
|
|
|
|
1.03
|
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
|
0.375
|
|
|
Average common shares outstanding
|
|
|
|
5,066.9
|
|
|
|
5,075.7
|
|
|
|
5,108.5
|
|
|
|
5,125.8
|
|
|
|
5,151.9
|
|
|
Diluted average common shares outstanding
|
|
|
|
5,118.1
|
|
|
|
5,139.4
|
|
|
|
5,177.9
|
|
|
|
5,193.8
|
|
|
|
5,220.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
(in millions)
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
Change
|
|
Wells Fargo net income
|
|
|
$
|
5,558
|
|
|
|
5,719
|
|
|
|
(3
|
)%
|
|
|
$
|
11,020
|
|
|
|
11,523
|
|
|
|
(4
|
)%
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
1,571
|
|
|
|
(1,969
|
)
|
|
|
NM
|
|
|
|
|
2,366
|
|
|
|
(1,576
|
)
|
|
|
NM
|
|
|
Reclassification of net gains to net income
|
|
|
|
(504
|
)
|
|
|
(218
|
)
|
|
|
131
|
|
|
|
|
(808
|
)
|
|
|
(518
|
)
|
|
|
56
|
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
1,057
|
|
|
|
(488
|
)
|
|
|
NM
|
|
|
|
|
3,056
|
|
|
|
464
|
|
|
|
559
|
|
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(265
|
)
|
|
|
(268
|
)
|
|
|
(1
|
)
|
|
|
|
(521
|
)
|
|
|
(502
|
)
|
|
|
4
|
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial losses arising during the period
|
|
|
|
(19
|
)
|
|
|
—
|
|
|
|
NM
|
|
|
|
|
(27
|
)
|
|
|
(11
|
)
|
|
|
145
|
|
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
|
39
|
|
|
|
30
|
|
|
|
30
|
|
|
|
|
76
|
|
|
|
73
|
|
|
|
4
|
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
(6
|
)
|
|
|
10
|
|
|
|
NM
|
|
|
|
|
37
|
|
|
|
(45
|
)
|
|
|
NM
|
|
|
Other comprehensive income (loss), before tax
|
|
|
|
1,873
|
|
|
|
(2,903
|
)
|
|
|
NM
|
|
|
|
|
4,179
|
|
|
|
(2,115
|
)
|
|
|
NM
|
|
|
Income tax (expense) benefit related to other comprehensive income
|
|
|
|
(714
|
)
|
|
|
1,040
|
|
|
|
NM
|
|
|
|
|
(1,571
|
)
|
|
|
812
|
|
|
|
NM
|
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
1,159
|
|
|
|
(1,863
|
)
|
|
|
NM
|
|
|
|
|
2,608
|
|
|
|
(1,303
|
)
|
|
|
NM
|
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
|
(15
|
)
|
|
|
(154
|
)
|
|
|
(90
|
)
|
|
|
|
(43
|
)
|
|
|
147
|
|
|
|
NM
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
1,174
|
|
|
|
(1,709
|
)
|
|
|
NM
|
|
|
|
|
2,651
|
|
|
|
(1,450
|
)
|
|
|
NM
|
|
|
Wells Fargo comprehensive income
|
|
|
|
6,732
|
|
|
|
4,010
|
|
|
|
68
|
|
|
|
|
13,671
|
|
|
|
10,073
|
|
|
|
36
|
|
|
Comprehensive income (loss) from noncontrolling interests
|
|
|
|
—
|
|
|
|
(87
|
)
|
|
|
(100
|
)
|
|
|
|
24
|
|
|
|
294
|
|
|
|
(92
|
)
|
|
Total comprehensive income
|
|
|
$
|
6,732
|
|
|
|
3,923
|
|
|
|
72
|
|
|
|
$
|
13,695
|
|
|
|
10,367
|
|
|
|
32
|
|
|
NM – Not meaningful
|
|
|
|
|
|
|
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
|
Dec 31,
|
|
|
|
Sep 30,
|
|
|
|
Jun 30,
|
|
|
(in millions)
|
|
|
2016
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2015
|
|
|
|
2015
|
|
|
Balance, beginning of period
|
|
|
$
|
198,504
|
|
|
|
193,891
|
|
|
|
194,043
|
|
|
|
190,676
|
|
|
|
189,964
|
|
|
Cumulative effect from change in consolidation accounting (1)
|
|
|
|
—
|
|
|
|
121
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Wells Fargo net income
|
|
|
|
5,558
|
|
|
|
5,462
|
|
|
|
5,575
|
|
|
|
5,796
|
|
|
|
5,719
|
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
1,174
|
|
|
|
1,477
|
|
|
|
(2,092
|
)
|
|
|
321
|
|
|
|
(1,709
|
)
|
|
Noncontrolling interests
|
|
|
|
(92
|
)
|
|
|
(5
|
)
|
|
|
(100
|
)
|
|
|
(123
|
)
|
|
|
(51
|
)
|
|
Common stock issued
|
|
|
|
397
|
|
|
|
1,079
|
|
|
|
310
|
|
|
|
505
|
|
|
|
502
|
|
|
Common stock repurchased (2)
|
|
|
|
(2,214
|
)
|
|
|
(2,029
|
)
|
|
|
(1,974
|
)
|
|
|
(2,137
|
)
|
|
|
(1,994
|
)
|
|
Preferred stock released by ESOP
|
|
|
|
371
|
|
|
|
313
|
|
|
|
210
|
|
|
|
225
|
|
|
|
349
|
|
|
Common stock warrants repurchased/exercised
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17
|
)
|
|
|
(24
|
)
|
|
Preferred stock issued
|
|
|
|
1,126
|
|
|
|
975
|
|
|
|
—
|
|
|
|
975
|
|
|
|
—
|
|
|
Common stock dividends
|
|
|
|
(1,930
|
)
|
|
|
(1,904
|
)
|
|
|
(1,917
|
)
|
|
|
(1,926
|
)
|
|
|
(1,932
|
)
|
|
Preferred stock dividends
|
|
|
|
(386
|
)
|
|
|
(378
|
)
|
|
|
(371
|
)
|
|
|
(356
|
)
|
|
|
(355
|
)
|
|
Tax benefit from stock incentive compensation
|
|
|
|
23
|
|
|
|
149
|
|
|
|
22
|
|
|
|
22
|
|
|
|
55
|
|
|
Stock incentive compensation expense
|
|
|
|
139
|
|
|
|
369
|
|
|
|
204
|
|
|
|
98
|
|
|
|
166
|
|
|
Net change in deferred compensation and related plans
|
|
|
|
(9
|
)
|
|
|
(1,016
|
)
|
|
|
(19
|
)
|
|
|
(16
|
)
|
|
|
(14
|
)
|
|
Balance, end of period
|
|
|
$
|
202,661
|
|
|
|
198,504
|
|
|
|
193,891
|
|
|
|
194,043
|
|
|
|
190,676
|
|
|
(1) Effective January 1, 2016, we adopted changes in consolidation
accounting pursuant to Accounting Standards Update 2015-02 (Amendments
to the Consolidation Analysis). Accordingly, we recorded a
$121 million net increase to beginning noncontrolling interests as
a cumulative-effect adjustment.
|
|
|
(2) For the quarters ended December 31 and June 30, 2015, includes
$500 million and $750 million related to private forward
repurchase transactions that settled in subsequent quarters for
9.2 million and 13.6 million shares of common stock, respectively.
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Quarter ended June 30,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
income/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
income/
|
|
|
(in millions)
|
|
|
balance
|
|
|
|
rates
|
|
|
|
expense
|
|
|
|
balance
|
|
|
|
rates
|
|
|
|
expense
|
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
$
|
293,783
|
|
|
|
0.49
|
%
|
|
|
$
|
359
|
|
|
|
267,101
|
|
|
|
0.28
|
%
|
|
|
$
|
186
|
|
|
Trading assets
|
|
|
81,380
|
|
|
|
2.86
|
|
|
|
582
|
|
|
|
67,615
|
|
|
|
2.91
|
|
|
|
492
|
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
31,525
|
|
|
|
1.56
|
|
|
|
123
|
|
|
|
31,748
|
|
|
|
1.58
|
|
|
|
125
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
52,201
|
|
|
|
4.24
|
|
|
|
553
|
|
|
|
47,075
|
|
|
|
4.13
|
|
|
|
486
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
92,010
|
|
|
|
2.53
|
|
|
|
583
|
|
|
|
97,958
|
|
|
|
2.65
|
|
|
|
650
|
|
|
Residential and commercial
|
|
|
19,571
|
|
|
|
5.44
|
|
|
|
266
|
|
|
|
22,677
|
|
|
|
5.84
|
|
|
|
331
|
|
|
Total mortgage-backed securities
|
|
|
111,581
|
|
|
|
3.04
|
|
|
|
849
|
|
|
|
120,635
|
|
|
|
3.25
|
|
|
|
981
|
|
|
Other debt and equity securities
|
|
|
53,301
|
|
|
|
3.48
|
|
|
|
461
|
|
|
|
48,816
|
|
|
|
3.51
|
|
|
|
427
|
|
|
Total available-for-sale securities
|
|
|
248,608
|
|
|
|
3.20
|
|
|
|
1,986
|
|
|
|
248,274
|
|
|
|
3.25
|
|
|
|
2,019
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,671
|
|
|
|
2.19
|
|
|
|
243
|
|
|
|
44,492
|
|
|
|
2.19
|
|
|
|
243
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
2,155
|
|
|
|
5.41
|
|
|
|
29
|
|
|
|
2,090
|
|
|
|
5.17
|
|
|
|
27
|
|
|
Federal agency mortgage-backed securities
|
|
|
35,057
|
|
|
|
1.90
|
|
|
|
166
|
|
|
|
21,044
|
|
|
|
2.00
|
|
|
|
105
|
|
|
Other debt securities
|
|
|
4,077
|
|
|
|
1.92
|
|
|
|
20
|
|
|
|
6,270
|
|
|
|
1.70
|
|
|
|
26
|
|
|
Total held-to-maturity securities
|
|
|
85,960
|
|
|
|
2.14
|
|
|
|
458
|
|
|
|
73,896
|
|
|
|
2.18
|
|
|
|
401
|
|
|
Total investment securities
|
|
|
334,568
|
|
|
|
2.93
|
|
|
|
2,444
|
|
|
|
322,170
|
|
|
|
3.01
|
|
|
|
2,420
|
|
|
Mortgages held for sale (4)
|
|
|
20,140
|
|
|
|
3.60
|
|
|
|
181
|
|
|
|
23,456
|
|
|
|
3.57
|
|
|
|
209
|
|
|
Loans held for sale (4)
|
|
|
239
|
|
|
|
4.83
|
|
|
|
3
|
|
|
|
666
|
|
|
|
3.51
|
|
|
|
5
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
270,862
|
|
|
|
3.45
|
|
|
|
2,328
|
|
|
|
231,551
|
|
|
|
3.36
|
|
|
|
1,939
|
|
|
Commercial and industrial - Non U.S.
|
|
|
51,201
|
|
|
|
2.35
|
|
|
|
300
|
|
|
|
45,123
|
|
|
|
1.93
|
|
|
|
217
|
|
|
Real estate mortgage
|
|
|
126,126
|
|
|
|
3.41
|
|
|
|
1,069
|
|
|
|
113,089
|
|
|
|
3.48
|
|
|
|
982
|
|
|
Real estate construction
|
|
|
23,115
|
|
|
|
3.49
|
|
|
|
200
|
|
|
|
20,771
|
|
|
|
4.12
|
|
|
|
214
|
|
|
Lease financing
|
|
|
18,930
|
|
|
|
5.12
|
|
|
|
242
|
|
|
|
12,364
|
|
|
|
5.16
|
|
|
|
160
|
|
|
Total commercial
|
|
|
490,234
|
|
|
|
3.39
|
|
|
|
4,139
|
|
|
|
422,898
|
|
|
|
3.33
|
|
|
|
3,512
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275,854
|
|
|
|
4.01
|
|
|
|
2,765
|
|
|
|
266,023
|
|
|
|
4.12
|
|
|
|
2,740
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
50,609
|
|
|
|
4.37
|
|
|
|
551
|
|
|
|
57,066
|
|
|
|
4.23
|
|
|
|
603
|
|
|
Credit card
|
|
|
33,368
|
|
|
|
11.52
|
|
|
|
956
|
|
|
|
30,373
|
|
|
|
11.69
|
|
|
|
885
|
|
|
Automobile
|
|
|
61,149
|
|
|
|
5.66
|
|
|
|
860
|
|
|
|
56,974
|
|
|
|
5.88
|
|
|
|
836
|
|
|
Other revolving credit and installment
|
|
|
39,537
|
|
|
|
5.91
|
|
|
|
581
|
|
|
|
37,112
|
|
|
|
5.88
|
|
|
|
544
|
|
|
Total consumer
|
|
|
460,517
|
|
|
|
4.98
|
|
|
|
5,713
|
|
|
|
447,548
|
|
|
|
5.02
|
|
|
|
5,608
|
|
|
Total loans (4)
|
|
|
950,751
|
|
|
|
4.16
|
|
|
|
9,852
|
|
|
|
870,446
|
|
|
|
4.20
|
|
|
|
9,120
|
|
|
Other
|
|
|
6,014
|
|
|
|
2.30
|
|
|
|
35
|
|
|
|
4,859
|
|
|
|
5.14
|
|
|
|
64
|
|
|
Total earning assets
|
|
|
$
|
1,686,875
|
|
|
|
3.20
|
%
|
|
|
$
|
13,456
|
|
|
|
1,556,313
|
|
|
|
3.22
|
%
|
|
|
$
|
12,496
|
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
39,772
|
|
|
|
0.13
|
%
|
|
|
$
|
13
|
|
|
|
38,551
|
|
|
|
0.05
|
%
|
|
|
$
|
5
|
|
|
Market rate and other savings
|
|
|
658,944
|
|
|
|
0.07
|
|
|
|
110
|
|
|
|
619,837
|
|
|
|
0.06
|
|
|
|
87
|
|
|
Savings certificates
|
|
|
26,246
|
|
|
|
0.35
|
|
|
|
23
|
|
|
|
32,454
|
|
|
|
0.63
|
|
|
|
52
|
|
|
Other time deposits
|
|
|
61,170
|
|
|
|
0.85
|
|
|
|
129
|
|
|
|
52,238
|
|
|
|
0.42
|
|
|
|
55
|
|
|
Deposits in foreign offices
|
|
|
97,525
|
|
|
|
0.23
|
|
|
|
57
|
|
|
|
104,334
|
|
|
|
0.13
|
|
|
|
33
|
|
|
Total interest-bearing deposits
|
|
|
883,657
|
|
|
|
0.15
|
|
|
|
332
|
|
|
|
847,414
|
|
|
|
0.11
|
|
|
|
232
|
|
|
Short-term borrowings
|
|
|
111,848
|
|
|
|
0.28
|
|
|
|
78
|
|
|
|
84,499
|
|
|
|
0.09
|
|
|
|
21
|
|
|
Long-term debt
|
|
|
236,156
|
|
|
|
1.56
|
|
|
|
921
|
|
|
|
185,093
|
|
|
|
1.34
|
|
|
|
620
|
|
|
Other liabilities
|
|
|
16,336
|
|
|
|
2.06
|
|
|
|
83
|
|
|
|
16,405
|
|
|
|
2.03
|
|
|
|
83
|
|
|
Total interest-bearing liabilities
|
|
|
1,247,997
|
|
|
|
0.45
|
|
|
|
1,414
|
|
|
|
1,133,411
|
|
|
|
0.34
|
|
|
|
956
|
|
|
Portion of noninterest-bearing funding sources
|
|
|
438,878
|
|
|
|
|
|
|
|
|
|
|
|
422,902
|
|
|
|
|
|
|
|
|
|
|
Total funding sources
|
|
|
$
|
1,686,875
|
|
|
|
0.34
|
|
|
|
1,414
|
|
|
|
1,556,313
|
|
|
|
0.25
|
|
|
|
956
|
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
|
2.86
|
%
|
|
|
$
|
12,042
|
|
|
|
|
|
|
|
2.97
|
%
|
|
|
$
|
11,540
|
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,818
|
|
|
|
|
|
|
|
|
|
|
|
17,462
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
27,037
|
|
|
|
|
|
|
|
|
|
|
|
25,705
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
129,354
|
|
|
|
|
|
|
|
|
|
|
|
129,798
|
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
175,209
|
|
|
|
|
|
|
|
|
|
|
|
172,965
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
353,001
|
|
|
|
|
|
|
|
|
|
|
|
337,890
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
60,083
|
|
|
|
|
|
|
|
|
|
|
|
67,595
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
201,003
|
|
|
|
|
|
|
|
|
|
|
|
190,382
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(438,878
|
)
|
|
|
|
|
|
|
|
|
|
|
(422,902
|
)
|
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
175,209
|
|
|
|
|
|
|
|
|
|
|
|
172,965
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,862,084
|
|
|
|
|
|
|
|
|
|
|
|
1,729,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% and 3.25% for the quarters
ended June 30, 2016 and 2015, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 0.64% and
0.28% for the same quarters, respectively.
|
|
|
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
|
(5) Includes taxable-equivalent adjustments of $309 million and
$270 million for the quarters ended June 30, 2016 and 2015,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
income/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
income/
|
|
|
(in millions)
|
|
|
balance
|
|
|
|
rates
|
|
|
|
expense
|
|
|
|
balance
|
|
|
|
rates
|
|
|
|
expense
|
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
$
|
289,240
|
|
|
|
0.49
|
%
|
|
|
$
|
703
|
|
|
|
271,392
|
|
|
|
0.28
|
%
|
|
|
$
|
376
|
|
|
Trading assets
|
|
|
|
80,922
|
|
|
|
2.94
|
|
|
|
|
1,187
|
|
|
|
65,309
|
|
|
|
2.89
|
|
|
|
|
945
|
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
33,000
|
|
|
|
1.58
|
|
|
|
|
259
|
|
|
|
28,971
|
|
|
|
1.56
|
|
|
|
|
225
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
51,357
|
|
|
|
4.24
|
|
|
|
|
1,088
|
|
|
|
46,017
|
|
|
|
4.16
|
|
|
|
|
958
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
|
94,216
|
|
|
|
2.67
|
|
|
|
|
1,258
|
|
|
|
100,064
|
|
|
|
2.71
|
|
|
|
|
1,356
|
|
|
Residential and commercial
|
|
|
|
20,199
|
|
|
|
5.32
|
|
|
|
|
537
|
|
|
|
23,304
|
|
|
|
5.77
|
|
|
|
|
673
|
|
|
Total mortgage-backed securities
|
|
|
|
114,415
|
|
|
|
3.14
|
|
|
|
|
1,795
|
|
|
|
123,368
|
|
|
|
3.29
|
|
|
|
|
2,029
|
|
|
Other debt and equity securities
|
|
|
|
53,430
|
|
|
|
3.34
|
|
|
|
|
890
|
|
|
|
47,938
|
|
|
|
3.47
|
|
|
|
|
827
|
|
|
Total available-for-sale securities
|
|
|
|
252,202
|
|
|
|
3.20
|
|
|
|
|
4,032
|
|
|
|
246,294
|
|
|
|
3.28
|
|
|
|
|
4,039
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
|
44,667
|
|
|
|
2.19
|
|
|
|
|
487
|
|
|
|
43,685
|
|
|
|
2.20
|
|
|
|
|
477
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
|
2,155
|
|
|
|
5.41
|
|
|
|
|
58
|
|
|
|
2,019
|
|
|
|
5.16
|
|
|
|
|
52
|
|
|
Federal agency mortgage-backed securities
|
|
|
|
31,586
|
|
|
|
2.16
|
|
|
|
|
341
|
|
|
|
16,208
|
|
|
|
1.95
|
|
|
|
|
158
|
|
|
Other debt securities
|
|
|
|
4,338
|
|
|
|
1.92
|
|
|
|
|
42
|
|
|
|
6,530
|
|
|
|
1.71
|
|
|
|
|
55
|
|
|
Total held-to-maturity securities
|
|
|
|
82,746
|
|
|
|
2.25
|
|
|
|
|
928
|
|
|
|
68,442
|
|
|
|
2.18
|
|
|
|
|
742
|
|
|
Total investment securities
|
|
|
|
334,948
|
|
|
|
2.97
|
|
|
|
|
4,960
|
|
|
|
314,736
|
|
|
|
3.04
|
|
|
|
|
4,781
|
|
|
Mortgages held for sale (4)
|
|
|
|
19,005
|
|
|
|
3.60
|
|
|
|
|
342
|
|
|
|
21,530
|
|
|
|
3.59
|
|
|
|
|
386
|
|
|
Loans held for sale (4)
|
|
|
|
260
|
|
|
|
3.97
|
|
|
|
|
5
|
|
|
|
683
|
|
|
|
3.08
|
|
|
|
|
10
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
|
264,295
|
|
|
|
3.42
|
|
|
|
|
4,505
|
|
|
|
229,627
|
|
|
|
3.32
|
|
|
|
|
3,783
|
|
|
Commercial and industrial - Non U.S.
|
|
|
|
50,354
|
|
|
|
2.23
|
|
|
|
|
558
|
|
|
|
45,093
|
|
|
|
1.90
|
|
|
|
|
426
|
|
|
Real estate mortgage
|
|
|
|
124,432
|
|
|
|
3.41
|
|
|
|
|
2,109
|
|
|
|
112,298
|
|
|
|
3.52
|
|
|
|
|
1,963
|
|
|
Real estate construction
|
|
|
|
22,859
|
|
|
|
3.55
|
|
|
|
|
403
|
|
|
|
20,135
|
|
|
|
3.83
|
|
|
|
|
383
|
|
|
Lease financing
|
|
|
|
16,989
|
|
|
|
4.95
|
|
|
|
|
420
|
|
|
|
12,341
|
|
|
|
5.06
|
|
|
|
|
312
|
|
|
Total commercial
|
|
|
|
478,929
|
|
|
|
3.35
|
|
|
|
|
7,995
|
|
|
|
419,494
|
|
|
|
3.30
|
|
|
|
|
6,867
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
275,288
|
|
|
|
4.03
|
|
|
|
|
5,547
|
|
|
|
265,923
|
|
|
|
4.12
|
|
|
|
|
5,481
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
51,423
|
|
|
|
4.38
|
|
|
|
|
1,122
|
|
|
|
57,968
|
|
|
|
4.25
|
|
|
|
|
1,224
|
|
|
Credit card
|
|
|
|
33,367
|
|
|
|
11.56
|
|
|
|
|
1,919
|
|
|
|
30,376
|
|
|
|
11.74
|
|
|
|
|
1,768
|
|
|
Automobile
|
|
|
|
60,631
|
|
|
|
5.66
|
|
|
|
|
1,708
|
|
|
|
56,492
|
|
|
|
5.91
|
|
|
|
|
1,657
|
|
|
Other revolving credit and installment
|
|
|
|
39,348
|
|
|
|
5.95
|
|
|
|
|
1,165
|
|
|
|
36,620
|
|
|
|
5.94
|
|
|
|
|
1,079
|
|
|
Total consumer
|
|
|
|
460,057
|
|
|
|
5.00
|
|
|
|
|
11,461
|
|
|
|
447,379
|
|
|
|
5.03
|
|
|
|
|
11,209
|
|
|
Total loans (4)
|
|
|
|
938,986
|
|
|
|
4.16
|
|
|
|
|
19,456
|
|
|
|
866,873
|
|
|
|
4.19
|
|
|
|
|
18,076
|
|
|
Other
|
|
|
|
5,910
|
|
|
|
2.18
|
|
|
|
|
65
|
|
|
|
4,795
|
|
|
|
5.27
|
|
|
|
|
127
|
|
|
Total earning assets
|
|
|
$
|
1,669,271
|
|
|
|
3.21
|
%
|
|
|
$
|
26,718
|
|
|
|
1,545,318
|
|
|
|
3.21
|
%
|
|
|
$
|
24,701
|
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
39,242
|
|
|
|
0.12
|
%
|
|
|
$
|
24
|
|
|
|
38,851
|
|
|
|
0.05
|
%
|
|
|
$
|
10
|
|
|
Market rate and other savings
|
|
|
|
655,247
|
|
|
|
0.07
|
|
|
|
|
217
|
|
|
|
616,643
|
|
|
|
0.06
|
|
|
|
|
184
|
|
|
Savings certificates
|
|
|
|
27,063
|
|
|
|
0.40
|
|
|
|
|
54
|
|
|
|
33,525
|
|
|
|
0.69
|
|
|
|
|
116
|
|
|
Other time deposits
|
|
|
|
59,688
|
|
|
|
0.80
|
|
|
|
|
236
|
|
|
|
54,381
|
|
|
|
0.41
|
|
|
|
|
111
|
|
|
Deposits in foreign offices
|
|
|
|
97,604
|
|
|
|
0.22
|
|
|
|
|
108
|
|
|
|
104,932
|
|
|
|
0.13
|
|
|
|
|
69
|
|
|
Total interest-bearing deposits
|
|
|
|
878,844
|
|
|
|
0.15
|
|
|
|
|
639
|
|
|
|
848,332
|
|
|
|
0.12
|
|
|
|
|
490
|
|
|
Short-term borrowings
|
|
|
|
109,853
|
|
|
|
0.27
|
|
|
|
|
145
|
|
|
|
78,141
|
|
|
|
0.10
|
|
|
|
|
39
|
|
|
Long-term debt
|
|
|
|
226,519
|
|
|
|
1.56
|
|
|
|
|
1,763
|
|
|
|
184,432
|
|
|
|
1.33
|
|
|
|
|
1,224
|
|
|
Other liabilities
|
|
|
|
16,414
|
|
|
|
2.10
|
|
|
|
|
172
|
|
|
|
16,648
|
|
|
|
2.17
|
|
|
|
|
180
|
|
|
Total interest-bearing liabilities
|
|
|
|
1,231,630
|
|
|
|
0.44
|
|
|
|
|
2,719
|
|
|
|
1,127,553
|
|
|
|
0.34
|
|
|
|
|
1,933
|
|
|
Portion of noninterest-bearing funding sources
|
|
|
|
437,641
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
417,765
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Total funding sources
|
|
|
$
|
1,669,271
|
|
|
|
0.33
|
|
|
|
|
2,719
|
|
|
|
1,545,318
|
|
|
|
0.25
|
|
|
|
|
1,933
|
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
|
|
2.88
|
%
|
|
|
$
|
23,999
|
|
|
|
|
|
|
|
2.96
|
%
|
|
|
$
|
22,768
|
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18,407
|
|
|
|
|
|
|
|
|
|
|
|
17,262
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
26,553
|
|
|
|
|
|
|
|
|
|
|
|
25,705
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
126,749
|
|
|
|
|
|
|
|
|
|
|
|
130,312
|
|
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
|
$
|
171,709
|
|
|
|
|
|
|
|
|
|
|
|
173,279
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
349,200
|
|
|
|
|
|
|
|
|
|
|
|
331,745
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
|
61,355
|
|
|
|
|
|
|
|
|
|
|
|
69,779
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
198,795
|
|
|
|
|
|
|
|
|
|
|
|
189,520
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
|
(437,641
|
)
|
|
|
|
|
|
|
|
|
|
|
(417,765
|
)
|
|
|
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
|
$
|
171,709
|
|
|
|
|
|
|
|
|
|
|
|
173,279
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,840,980
|
|
|
|
|
|
|
|
|
|
|
|
1,718,597
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.50% and 3.25% for the first half
of 2016 and 2015, respectively. The average three-month London
Interbank Offered Rate (LIBOR) was 0.63% and 0.27% for the same
periods, respectively.
|
|
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
(4) Nonaccrual loans and related income are included in their
respective loan categories.
|
|
(5) Includes taxable-equivalent adjustments of $599 million and
$512 million for the first half of 2016 and 2015, respectively,
predominantly related to tax-exempt income on certain loans and
securities. The federal statutory tax rate was 35% for the periods
presented.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30, 2016
|
|
|
|
Mar 31, 2016
|
|
|
|
Dec 31, 2015
|
|
|
|
Sep 30, 2015
|
|
|
|
Jun 30, 2015
|
|
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
|
Average
|
|
|
|
Yields/
|
|
|
($ in billions)
|
|
|
balance
|
|
|
|
rates
|
|
|
|
balance
|
|
|
|
rates
|
|
|
|
balance
|
|
|
|
rates
|
|
|
|
balance
|
|
|
|
rates
|
|
|
|
balance
|
|
|
|
rates
|
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements
and other short-term investments
|
|
|
$
|
293.8
|
|
|
|
0.49
|
%
|
|
|
$
|
284.7
|
|
|
|
0.49
|
%
|
|
|
$
|
274.6
|
|
|
|
0.28
|
%
|
|
|
$
|
250.1
|
|
|
|
0.26
|
%
|
|
|
$
|
267.1
|
|
|
|
0.28
|
%
|
|
Trading assets
|
|
|
81.4
|
|
|
|
2.86
|
|
|
|
80.5
|
|
|
|
3.01
|
|
|
|
68.8
|
|
|
|
3.33
|
|
|
|
67.2
|
|
|
|
2.93
|
|
|
|
67.6
|
|
|
|
2.91
|
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
31.5
|
|
|
|
1.56
|
|
|
|
34.4
|
|
|
|
1.59
|
|
|
|
34.6
|
|
|
|
1.58
|
|
|
|
35.7
|
|
|
|
1.59
|
|
|
|
31.7
|
|
|
|
1.58
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
52.2
|
|
|
|
4.24
|
|
|
|
50.5
|
|
|
|
4.24
|
|
|
|
49.3
|
|
|
|
4.37
|
|
|
|
48.2
|
|
|
|
4.22
|
|
|
|
47.1
|
|
|
|
4.13
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
92.0
|
|
|
|
2.53
|
|
|
|
96.5
|
|
|
|
2.80
|
|
|
|
102.3
|
|
|
|
2.79
|
|
|
|
98.4
|
|
|
|
2.70
|
|
|
|
98.0
|
|
|
|
2.65
|
|
|
Residential and commercial
|
|
|
19.6
|
|
|
|
5.44
|
|
|
|
20.8
|
|
|
|
5.20
|
|
|
|
21.5
|
|
|
|
5.51
|
|
|
|
21.9
|
|
|
|
5.84
|
|
|
|
22.7
|
|
|
|
5.84
|
|
|
Total mortgage-backed securities
|
|
|
111.6
|
|
|
|
3.04
|
|
|
|
117.3
|
|
|
|
3.23
|
|
|
|
123.8
|
|
|
|
3.26
|
|
|
|
120.3
|
|
|
|
3.27
|
|
|
|
120.7
|
|
|
|
3.25
|
|
|
Other debt and equity securities
|
|
|
53.3
|
|
|
|
3.48
|
|
|
|
53.6
|
|
|
|
3.21
|
|
|
|
52.7
|
|
|
|
3.35
|
|
|
|
50.4
|
|
|
|
3.40
|
|
|
|
48.8
|
|
|
|
3.51
|
|
|
Total available-for-sale securities
|
|
|
248.6
|
|
|
|
3.20
|
|
|
|
255.8
|
|
|
|
3.20
|
|
|
|
260.4
|
|
|
|
3.27
|
|
|
|
254.6
|
|
|
|
3.24
|
|
|
|
248.3
|
|
|
|
3.25
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44.6
|
|
|
|
2.19
|
|
|
|
44.7
|
|
|
|
2.20
|
|
|
|
44.7
|
|
|
|
2.18
|
|
|
|
44.6
|
|
|
|
2.18
|
|
|
|
44.5
|
|
|
|
2.19
|
|
|
Securities of U.S. states and political subdivisions
|
|
|
2.2
|
|
|
|
5.41
|
|
|
|
2.1
|
|
|
|
5.41
|
|
|
|
2.1
|
|
|
|
6.07
|
|
|
|
2.2
|
|
|
|
5.17
|
|
|
|
2.1
|
|
|
|
5.17
|
|
|
Federal agency mortgage-backed securities
|
|
|
35.1
|
|
|
|
1.90
|
|
|
|
28.1
|
|
|
|
2.49
|
|
|
|
28.2
|
|
|
|
2.42
|
|
|
|
27.1
|
|
|
|
2.38
|
|
|
|
21.0
|
|
|
|
2.00
|
|
|
Other debt securities
|
|
|
4.1
|
|
|
|
1.92
|
|
|
|
4.6
|
|
|
|
1.92
|
|
|
|
4.9
|
|
|
|
1.77
|
|
|
|
5.4
|
|
|
|
1.75
|
|
|
|
6.3
|
|
|
|
1.70
|
|
|
Total held-to-maturity securities
|
|
|
86.0
|
|
|
|
2.14
|
|
|
|
79.5
|
|
|
|
2.37
|
|
|
|
79.9
|
|
|
|
2.35
|
|
|
|
79.3
|
|
|
|
2.30
|
|
|
|
73.9
|
|
|
|
2.18
|
|
|
Total investment securities
|
|
|
334.6
|
|
|
|
2.93
|
|
|
|
335.3
|
|
|
|
3.01
|
|
|
|
340.3
|
|
|
|
3.05
|
|
|
|
333.9
|
|
|
|
3.02
|
|
|
|
322.2
|
|
|
|
3.01
|
|
|
Mortgages held for sale
|
|
|
20.1
|
|
|
|
3.60
|
|
|
|
17.9
|
|
|
|
3.59
|
|
|
|
19.2
|
|
|
|
3.66
|
|
|
|
24.2
|
|
|
|
3.69
|
|
|
|
23.5
|
|
|
|
3.57
|
|
|
Loans held for sale
|
|
|
0.2
|
|
|
|
4.83
|
|
|
|
0.3
|
|
|
|
3.23
|
|
|
|
0.4
|
|
|
|
4.96
|
|
|
|
0.6
|
|
|
|
2.57
|
|
|
|
0.7
|
|
|
|
3.51
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
270.9
|
|
|
|
3.45
|
|
|
|
257.7
|
|
|
|
3.39
|
|
|
|
250.5
|
|
|
|
3.25
|
|
|
|
241.4
|
|
|
|
3.30
|
|
|
|
231.5
|
|
|
|
3.36
|
|
|
Commercial and industrial - Non U.S.
|
|
|
51.2
|
|
|
|
2.35
|
|
|
|
49.5
|
|
|
|
2.10
|
|
|
|
48.0
|
|
|
|
1.97
|
|
|
|
45.9
|
|
|
|
1.83
|
|
|
|
45.1
|
|
|
|
1.93
|
|
|
Real estate mortgage
|
|
|
126.1
|
|
|
|
3.41
|
|
|
|
122.7
|
|
|
|
3.41
|
|
|
|
121.8
|
|
|
|
3.30
|
|
|
|
121.0
|
|
|
|
3.31
|
|
|
|
113.1
|
|
|
|
3.48
|
|
|
Real estate construction
|
|
|
23.1
|
|
|
|
3.49
|
|
|
|
22.6
|
|
|
|
3.61
|
|
|
|
22.0
|
|
|
|
3.27
|
|
|
|
21.6
|
|
|
|
3.39
|
|
|
|
20.8
|
|
|
|
4.12
|
|
|
Lease financing
|
|
|
19.0
|
|
|
|
5.12
|
|
|
|
15.1
|
|
|
|
4.74
|
|
|
|
12.2
|
|
|
|
4.48
|
|
|
|
12.3
|
|
|
|
4.18
|
|
|
|
12.4
|
|
|
|
5.16
|
|
|
Total commercial
|
|
|
490.3
|
|
|
|
3.39
|
|
|
|
467.6
|
|
|
|
3.31
|
|
|
|
454.5
|
|
|
|
3.16
|
|
|
|
442.2
|
|
|
|
3.18
|
|
|
|
422.9
|
|
|
|
3.33
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275.9
|
|
|
|
4.01
|
|
|
|
274.7
|
|
|
|
4.05
|
|
|
|
272.9
|
|
|
|
4.04
|
|
|
|
269.4
|
|
|
|
4.10
|
|
|
|
266.0
|
|
|
|
4.12
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
50.6
|
|
|
|
4.37
|
|
|
|
52.2
|
|
|
|
4.39
|
|
|
|
53.8
|
|
|
|
4.28
|
|
|
|
55.3
|
|
|
|
4.22
|
|
|
|
57.0
|
|
|
|
4.23
|
|
|
Credit card
|
|
|
33.4
|
|
|
|
11.52
|
|
|
|
33.4
|
|
|
|
11.61
|
|
|
|
32.8
|
|
|
|
11.61
|
|
|
|
31.7
|
|
|
|
11.73
|
|
|
|
30.4
|
|
|
|
11.69
|
|
|
Automobile
|
|
|
61.1
|
|
|
|
5.66
|
|
|
|
60.1
|
|
|
|
5.67
|
|
|
|
59.5
|
|
|
|
5.74
|
|
|
|
58.5
|
|
|
|
5.80
|
|
|
|
57.0
|
|
|
|
5.88
|
|
|
Other revolving credit and installment
|
|
|
39.5
|
|
|
|
5.91
|
|
|
|
39.2
|
|
|
|
5.99
|
|
|
|
38.8
|
|
|
|
5.83
|
|
|
|
38.0
|
|
|
|
5.84
|
|
|
|
37.1
|
|
|
|
5.88
|
|
|
Total consumer
|
|
|
460.5
|
|
|
|
4.98
|
|
|
|
459.6
|
|
|
|
5.02
|
|
|
|
457.8
|
|
|
|
4.99
|
|
|
|
452.9
|
|
|
|
5.01
|
|
|
|
447.5
|
|
|
|
5.02
|
|
|
Total loans
|
|
|
950.8
|
|
|
|
4.16
|
|
|
|
927.2
|
|
|
|
4.16
|
|
|
|
912.3
|
|
|
|
4.08
|
|
|
|
895.1
|
|
|
|
4.11
|
|
|
|
870.4
|
|
|
|
4.20
|
|
|
Other
|
|
|
6.0
|
|
|
|
2.30
|
|
|
|
5.8
|
|
|
|
2.06
|
|
|
|
5.1
|
|
|
|
4.82
|
|
|
|
5.0
|
|
|
|
5.11
|
|
|
|
4.8
|
|
|
|
5.14
|
|
|
Total earning assets
|
|
|
$
|
1,686.9
|
|
|
|
3.20
|
%
|
|
|
$
|
1,651.7
|
|
|
|
3.22
|
%
|
|
|
$
|
1,620.7
|
|
|
|
3.18
|
%
|
|
|
$
|
1,576.1
|
|
|
|
3.21
|
%
|
|
|
$
|
1,556.3
|
|
|
|
3.22
|
%
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
|
$
|
39.8
|
|
|
|
0.13
|
%
|
|
|
$
|
38.7
|
|
|
|
0.12
|
%
|
|
|
$
|
39.1
|
|
|
|
0.05
|
%
|
|
|
$
|
37.8
|
|
|
|
0.05
|
%
|
|
|
$
|
38.6
|
|
|
|
0.05
|
%
|
|
Market rate and other savings
|
|
|
659.0
|
|
|
|
0.07
|
|
|
|
651.5
|
|
|
|
0.07
|
|
|
|
640.5
|
|
|
|
0.06
|
|
|
|
628.1
|
|
|
|
0.06
|
|
|
|
619.8
|
|
|
|
0.06
|
|
|
Savings certificates
|
|
|
26.2
|
|
|
|
0.35
|
|
|
|
27.9
|
|
|
|
0.45
|
|
|
|
29.6
|
|
|
|
0.54
|
|
|
|
30.9
|
|
|
|
0.58
|
|
|
|
32.5
|
|
|
|
0.63
|
|
|
Other time deposits
|
|
|
61.2
|
|
|
|
0.85
|
|
|
|
58.2
|
|
|
|
0.74
|
|
|
|
49.8
|
|
|
|
0.52
|
|
|
|
48.7
|
|
|
|
0.46
|
|
|
|
52.2
|
|
|
|
0.42
|
|
|
Deposits in foreign offices
|
|
|
97.5
|
|
|
|
0.23
|
|
|
|
97.7
|
|
|
|
0.21
|
|
|
|
107.1
|
|
|
|
0.14
|
|
|
|
111.5
|
|
|
|
0.13
|
|
|
|
104.3
|
|
|
|
0.13
|
|
|
Total interest-bearing deposits
|
|
|
883.7
|
|
|
|
0.15
|
|
|
|
874.0
|
|
|
|
0.14
|
|
|
|
866.1
|
|
|
|
0.11
|
|
|
|
857.0
|
|
|
|
0.11
|
|
|
|
847.4
|
|
|
|
0.11
|
|
|
Short-term borrowings
|
|
|
111.8
|
|
|
|
0.28
|
|
|
|
107.9
|
|
|
|
0.25
|
|
|
|
102.9
|
|
|
|
0.05
|
|
|
|
90.4
|
|
|
|
0.06
|
|
|
|
84.5
|
|
|
|
0.09
|
|
|
Long-term debt
|
|
|
236.2
|
|
|
|
1.56
|
|
|
|
216.9
|
|
|
|
1.56
|
|
|
|
190.9
|
|
|
|
1.49
|
|
|
|
180.6
|
|
|
|
1.45
|
|
|
|
185.1
|
|
|
|
1.34
|
|
|
Other liabilities
|
|
|
16.3
|
|
|
|
2.06
|
|
|
|
16.5
|
|
|
|
2.14
|
|
|
|
16.5
|
|
|
|
2.14
|
|
|
|
16.4
|
|
|
|
2.13
|
|
|
|
16.4
|
|
|
|
2.03
|
|
|
Total interest-bearing liabilities
|
|
|
1,248.0
|
|
|
|
0.45
|
|
|
|
1,215.3
|
|
|
|
0.43
|
|
|
|
1,176.4
|
|
|
|
0.36
|
|
|
|
1,144.4
|
|
|
|
0.34
|
|
|
|
1,133.4
|
|
|
|
0.34
|
|
|
Portion of noninterest-bearing funding sources
|
|
|
438.9
|
|
|
|
—
|
|
|
|
436.4
|
|
|
|
—
|
|
|
|
444.3
|
|
|
|
—
|
|
|
|
431.7
|
|
|
|
—
|
|
|
|
422.9
|
|
|
|
—
|
|
|
Total funding sources
|
|
|
$
|
1,686.9
|
|
|
|
0.34
|
|
|
|
$
|
1,651.7
|
|
|
|
0.32
|
|
|
|
$
|
1,620.7
|
|
|
|
0.26
|
|
|
|
$
|
1,576.1
|
|
|
|
0.25
|
|
|
|
$
|
1,556.3
|
|
|
|
0.25
|
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
|
2.90
|
%
|
|
|
|
|
|
|
2.92
|
%
|
|
|
|
|
|
|
2.96
|
%
|
|
|
|
|
|
|
2.97
|
%
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
$
|
18.8
|
|
|
|
|
|
|
|
18.0
|
|
|
|
|
|
|
|
17.8
|
|
|
|
|
|
|
|
17.0
|
|
|
|
|
|
|
|
17.5
|
|
|
|
|
|
|
Goodwill
|
|
|
27.0
|
|
|
|
|
|
|
|
26.1
|
|
|
|
|
|
|
|
25.6
|
|
|
|
|
|
|
|
25.7
|
|
|
|
|
|
|
|
25.7
|
|
|
|
|
|
|
Other
|
|
|
129.4
|
|
|
|
|
|
|
|
124.1
|
|
|
|
|
|
|
|
123.2
|
|
|
|
|
|
|
|
127.6
|
|
|
|
|
|
|
|
129.8
|
|
|
|
|
|
|
Total noninterest-earnings assets
|
|
|
$
|
175.2
|
|
|
|
|
|
|
|
168.2
|
|
|
|
|
|
|
|
166.6
|
|
|
|
|
|
|
|
170.3
|
|
|
|
|
|
|
|
173.0
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
$
|
353.0
|
|
|
|
|
|
|
|
345.4
|
|
|
|
|
|
|
|
350.7
|
|
|
|
|
|
|
|
341.9
|
|
|
|
|
|
|
|
337.9
|
|
|
|
|
|
|
Other liabilities
|
|
|
60.1
|
|
|
|
|
|
|
|
62.6
|
|
|
|
|
|
|
|
65.2
|
|