Wells Fargo Reports $5.8 Billion in Quarterly Net Income
Diluted EPS of $1.07; Revenue of $22.2 billion
Wells Fargo & Company (NYSE:WFC):
-
Strong financial results:
-
Net income of $5.8 billion, up 5 percent from second quarter 2016
-
Diluted earnings per share (EPS) of $1.07, up 6 percent
-
Revenue of $22.2 billion
-
Net interest income of $12.5 billion, up $750 million, or 6
percent
-
Total average deposits of $1.3 trillion, up $64.5 billion, or 5
percent
-
Total average loans of $956.9 billion, up $6.1 billion, or 1
percent
-
Return on assets (ROA) of 1.21 percent and return on equity (ROE)
of 11.95 percent
-
Continued improvement in credit quality:
-
Provision expense of $555 million, down $519 million, or 48
percent, from second quarter 2016
-
Net charge-offs of $655 million, down $269 million
-
Net charge-offs were 0.27 percent of average loans
(annualized), down from 0.39 percent
-
Reserve release1 of $100 million
-
Nonaccrual loans of $9.1 billion, down $2.9 billion, or 24 percent
-
Strong capital position while returning more capital to shareholders:
-
Common Equity Tier 1 ratio (fully phased-in) of 11.6 percent2
-
Period-end common shares outstanding down 81.7 million from second
quarter 2016
-
Returned $3.4 billion to shareholders in the second quarter
through common stock dividends and net share repurchases
-
Received a non-objection to the Company's 2017 Capital Plan submission
from the Federal Reserve
-
As part of this plan, the Company expects to increase its third
quarter 2017 common stock dividend to $0.39 per share from $0.38
per share, subject to approval by the Company's Board of
Directors. The plan also includes up to $11.5 billion of gross
common stock repurchases, subject to management discretion, for
the four-quarter period from third quarter 2017 through second
quarter 2018.
Final financial results and other disclosures will be reported in our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, and
may differ materially from the results and disclosures in this document
due to, among other things, the completion of final review procedures,
the occurrence of subsequent events, or the discovery of additional
information.
|
Selected Financial Information
|
|
|
Quarter ended
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Earnings
|
|
|
|
|
|
|
|
|
Diluted earnings per common share
|
|
$
|
1.07
|
|
|
1.00
|
|
|
1.01
|
Wells Fargo net income (in billions)
|
|
|
5.81
|
|
|
5.46
|
|
|
5.56
|
Return on assets (ROA)
|
|
|
1.21
|
%
|
|
1.15
|
|
|
1.20
|
Return on equity (ROE)
|
|
|
11.95
|
|
|
11.54
|
|
|
11.70
|
Return on average tangible common equity (ROTCE)(a)
|
|
|
14.26
|
|
|
13.85
|
|
|
14.15
|
Asset Quality
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) as a % of average total loans
|
|
|
0.27
|
%
|
|
0.34
|
|
|
0.39
|
Allowance for credit losses as a % of total loans
|
|
|
1.27
|
|
|
1.28
|
|
|
1.33
|
Allowance for credit losses as a % of annualized net charge-offs
|
|
|
462
|
|
|
376
|
|
|
343
|
Other
|
|
|
|
|
|
|
|
|
Revenue (in billions)
|
|
$
|
22.2
|
|
|
22.0
|
|
|
22.2
|
Efficiency ratio (b)
|
|
|
61.1
|
%
|
|
62.7
|
|
|
58.1
|
Average loans (in billions)
|
|
$
|
956.9
|
|
|
963.6
|
|
|
950.8
|
Average deposits (in billions)
|
|
|
1,301.2
|
|
|
1,299.2
|
|
|
1,236.7
|
Net interest margin
|
|
|
2.90
|
%
|
|
2.87
|
|
|
2.86
|
(a) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to
assess the Company's use of equity. For additional information,
including a corresponding reconciliation to GAAP financial
measures, see the "Tangible Common Equity" tables on page 35.
|
(b) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
|
|
Wells Fargo & Company (NYSE:WFC) reported net income of $5.8 billion, or
$1.07 per diluted common share, for second quarter 2017, compared with
$5.6 billion, or $1.01 per share, for second quarter 2016, and
$5.5 billion, or $1.00 per share, for first quarter 2017.
Chief Executive Officer Tim Sloan said, "Second quarter 2017 results
demonstrated the benefit of our diversified business model as we
continued to generate strong financial results, invest for the future,
and adhere to our prudent risk discipline. We remain committed to
reducing expenses and improving the efficiency of our company, and we
are very focused on our recently announced goals. As we work to improve
our efficiency, we will also continue to innovate for the future. We
recently advanced a number of important customer-focused initiatives,
such as the launch of the ZelleSM person-to-person
payment platform to our 28 million digital customers. As always, our
success starts with our customers, and I appreciate the effort of our
271,000 team members in helping our customers succeed financially. We
continued to make progress this quarter in our efforts to rebuild trust
and build a better Wells Fargo and, while there is still more work ahead
of us, we are on the right track and I am confident about our future."
Chief Financial Officer John Shrewsberry said, “Wells Fargo reported
$5.8 billion of net income in the second quarter, up on a linked-quarter
and year-over-year basis. Overall results were solid in a period with
continued modest economic growth and included growth in net interest
income and continued improvement in credit results. Second quarter 2017
also included discrete tax benefits totaling $186 million, or
approximately $0.04 per share, primarily as a result of our agreement to
sell Wells Fargo Insurance Services.
Our liquidity and capital positions remained strong, and we returned
$3.4 billion to shareholders through common stock dividends and net
share repurchases for a net payout ratio3 of 63 percent in
the quarter. In addition, during the quarter we received a non-objection
from the Federal Reserve to our 2017 Capital Plan, which included an
increase, subject to board approval, in our quarterly common stock
dividend rate in third quarter 2017, to $0.39 per share from $0.38 per
share, as well as increased share repurchases."
Net Interest Income
Net interest income in second quarter 2017 increased $183 million from
first quarter 2017 to $12.5 billion, as the benefit of repricing earning
assets in response to higher short-term interest rates exceeded the cost
of repricing liabilities, due in part to continued deposit pricing
discipline. Second quarter results also benefited from one additional
business day. These benefits more than offset the impact of lower
average loan and investment securities balances.
Net interest margin was 2.90 percent, up 3 basis points from first
quarter 2017. The benefit of higher short-term interest rates,
disciplined deposit pricing, and a reduction in long-term debt was
partially offset by the impacts from lower loan and investment
securities balances.
Noninterest Income
Noninterest income in the second quarter was $9.7 billion, in line with
first quarter 2017. Second quarter noninterest income included higher
other income on a $309 million gain on the sale of a Pick-a-Pay
purchased credit-impaired (PCI) loan portfolio, higher card fees on
stronger credit card and debit card purchase volumes, and higher trust
and investment fees reflecting stronger investment banking fees from
both higher equity and debt originations. These increases were offset by
lower market sensitive revenue4 and lower mortgage banking
income.
-
Mortgage banking noninterest income was $1.1 billion, compared with
$1.2 billion in first quarter 2017. As expected, residential mortgage
loan originations increased in the second quarter, up to $56 billion,
from $44 billion in the first quarter. The production margin on
residential held-for-sale mortgage loan originations5 was
1.24 percent, down from 1.68 percent in the first quarter due to
increased price competition and a higher percentage of correspondent
volume, which has lower production margins than retail originations.
Mortgage servicing income was $400 million in the second quarter, down
from $456 million in the first quarter, primarily due to lower net
hedge results and higher prepayments.
-
Market sensitive revenue was $545 million, compared with $878 million
in first quarter 2017, as lower net gains from equity investments and
trading activities were partially offset by higher gains on debt
securities. Net gains from equity investments were down $215 million
from the first quarter on lower venture capital gains. Net gains from
trading activities were down $202 million linked quarter and included
lower deferred compensation plan investment results (largely offset in
employee benefits expense), as well as lower secondary trading results
on reduced client activity and lower valuation adjustments.
Noninterest Expense
Noninterest expense in the second quarter declined $251 million from the
prior quarter to $13.5 billion, primarily due to lower employee benefits
and commission and incentive compensation, which were seasonally
elevated in the first quarter. These declines were partially offset by
increases in outside professional services and salaries, as well as
higher operating losses, reflecting higher litigation accruals. In
addition, the second quarter included a $94 million donation to the
Wells Fargo Foundation. The efficiency ratio improved to 61.1 percent in
second quarter 2017, compared with 62.7 percent in the prior quarter.
Income Taxes
The Company’s effective income tax rate was 27.7 percent for second
quarter 2017, and included discrete tax benefits totaling $186 million,
primarily related to the deferred income tax effect of investment basis
differences recognized as a result of our agreement to sell Wells Fargo
Insurance Services USA and related businesses. This compares with an
effective income tax rate of 27.4 percent in first quarter 2017, which
included discrete tax benefits totaling $197 million, of which $183
million reflected tax benefits associated with stock compensation
activity during the quarter which was subject to ASU 2016-09 accounting
guidance adopted in the first quarter. The Company currently expects the
full-year 2017 tax rate to be approximately 29 percent.
Loans
Total average loans were $956.9 billion in the second quarter, down $6.8
billion from the first quarter. Period-end loan balances were $957.4
billion at June 30, 2017, down $982 million from March 31, 2017,
reflecting an expected decline in auto loans as our tighter underwriting
standards resulted in lower origination volume. Additionally, legacy
junior lien mortgage loans continued to decline as expected. These
declines were partially offset by growth in commercial and industrial
loans, real estate first mortgage loans, and credit card loans.
Period-End Loan Balances
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Commercial
|
|
|
$
|
505,901
|
|
|
505,004
|
|
|
506,536
|
|
|
496,454
|
|
|
494,538
|
Consumer
|
|
|
|
451,522
|
|
|
453,401
|
|
|
461,068
|
|
|
464,872
|
|
|
462,619
|
Total loans
|
|
|
$
|
957,423
|
|
|
958,405
|
|
|
967,604
|
|
|
961,326
|
|
|
957,157
|
Change from prior quarter
|
|
|
$
|
(982
|
)
|
|
(9,199
|
)
|
|
6,278
|
|
|
4,169
|
|
|
9,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities
Investment securities were $409.6 billion at June 30, 2017, up $2.0
billion from the first quarter, as approximately $37.1 billion of
purchases, primarily federal agency mortgage-backed securities in the
available-for-sale portfolio, were partially offset by sales and run-off.
Net unrealized gains on available-for-sale securities were $1.1 billion
at June 30, 2017, compared with net unrealized losses on
available-for-sale securities of $1.2 billion at March 31, 2017,
primarily due to tighter credit spreads during the quarter and a modest
benefit from lower long-term interest rates.
Deposits
Total average deposits for second quarter 2017 were $1.3 trillion,
stable from the prior quarter, as growth in consumer and small business
deposits was offset by lower commercial deposits. The average deposit
cost for second quarter 2017 was 21 basis points, up 4 basis points from
the prior quarter and 10 basis points from a year ago, primarily driven
by an increase in commercial deposit rates.
Capital
Capital levels remained strong in the second quarter, with a Common
Equity Tier 1 ratio (fully phased-in) of 11.6 percent2,
compared with 11.2 percent in the prior quarter. In second quarter 2017,
the Company repurchased 43.0 million shares of its common stock, which
reduced period-end common shares outstanding by 30.0 million. The
Company paid a quarterly common stock dividend of $0.38 per share. In
addition, the Company received a non-objection to its 2017 Capital Plan
from the Federal Reserve. As part of this plan, the Company expects to
increase its third quarter 2017 common stock dividend to $0.39 per
share, subject to approval by the Company's Board of Directors. The plan
also includes up to $11.5 billion of gross common stock repurchases,
subject to management discretion, for the four-quarter period from third
quarter 2017 through second quarter 2018.
Credit Quality
Net Loan Charge-offs
The quarterly loss rate improved to 0.27 percent (annualized) from 0.34
percent in the prior quarter. Commercial and consumer losses improved to
0.06 percent and 0.51 percent, respectively. Credit losses were $655
million in second quarter 2017, down $150 million from first quarter
2017. Consumer losses decreased $82 million, driven by lower losses
across all asset classes with the exception of credit card. Commercial
losses were down $68 million, predominantly driven by lower losses in
our oil and gas portfolio.
Net Loan Charge-Offs
|
|
|
|
Quarter ended
|
|
|
|
June 30, 2017
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
Net loan
|
|
|
As a % of
|
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
|
charge-
|
|
|
average
|
|
($ in millions)
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
|
offs
|
|
|
loans (a)
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
78
|
|
|
0.10
|
%
|
|
$
|
171
|
|
|
0.21
|
%
|
|
$
|
256
|
|
|
0.31
|
%
|
Real estate mortgage
|
|
|
(6
|
)
|
|
(0.02
|
)
|
|
|
(25
|
)
|
|
(0.08
|
)
|
|
|
(12
|
)
|
|
(0.04
|
)
|
Real estate construction
|
|
|
(4
|
)
|
|
(0.05
|
)
|
|
|
(8
|
)
|
|
(0.15
|
)
|
|
|
(8
|
)
|
|
(0.13
|
)
|
Lease financing
|
|
|
7
|
|
|
0.15
|
|
|
|
5
|
|
|
0.11
|
|
|
|
15
|
|
|
0.32
|
|
Total commercial
|
|
|
75
|
|
|
0.06
|
|
|
|
143
|
|
|
0.11
|
|
|
|
251
|
|
|
0.20
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(16
|
)
|
|
(0.02
|
)
|
|
|
7
|
|
|
0.01
|
|
|
|
(3
|
)
|
|
—
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
(4
|
)
|
|
(0.03
|
)
|
|
|
23
|
|
|
0.21
|
|
|
|
44
|
|
|
0.38
|
|
Credit card
|
|
|
320
|
|
|
3.67
|
|
|
|
309
|
|
|
3.54
|
|
|
|
275
|
|
|
3.09
|
|
Automobile
|
|
|
126
|
|
|
0.86
|
|
|
|
167
|
|
|
1.10
|
|
|
|
166
|
|
|
1.05
|
|
Other revolving credit and installment
|
|
|
154
|
|
|
1.58
|
|
|
|
156
|
|
|
1.60
|
|
|
|
172
|
|
|
1.70
|
|
Total consumer
|
|
|
580
|
|
|
0.51
|
|
|
|
662
|
|
|
0.59
|
|
|
|
654
|
|
|
0.56
|
|
Total
|
|
$
|
655
|
|
|
0.27
|
%
|
|
$
|
805
|
|
|
0.34
|
%
|
|
$
|
905
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $827 million from first quarter 2017 to
$9.8 billion. Nonaccrual loans decreased $703 million from first quarter
2017 to $9.1 billion reflecting declines across all commercial asset
classes, as well as continued lower consumer real estate nonaccruals.
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
|
|
|
|
|
June 30, 2017
|
|
|
March 31, 2017
|
|
|
December 31, 2016
|
|
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
As a
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
|
% of
|
|
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
|
Total
|
|
|
total
|
|
($ in millions)
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
|
balances
|
|
|
loans
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
$
|
2,632
|
|
|
0.79
|
%
|
|
$
|
2,898
|
|
|
0.88
|
%
|
|
$
|
3,216
|
|
|
0.97
|
%
|
Real estate mortgage
|
|
|
|
630
|
|
|
0.48
|
|
|
|
672
|
|
|
0.51
|
|
|
|
685
|
|
|
0.52
|
|
Real estate construction
|
|
|
|
34
|
|
|
0.13
|
|
|
|
40
|
|
|
0.16
|
|
|
|
43
|
|
|
0.18
|
|
Lease financing
|
|
|
|
89
|
|
|
0.46
|
|
|
|
96
|
|
|
0.50
|
|
|
|
115
|
|
|
0.60
|
|
Total commercial
|
|
|
|
3,385
|
|
|
0.67
|
|
|
|
3,706
|
|
|
0.73
|
|
|
|
4,059
|
|
|
0.80
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
|
4,413
|
|
|
1.60
|
|
|
|
4,743
|
|
|
1.73
|
|
|
|
4,962
|
|
|
1.80
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
|
1,095
|
|
|
2.56
|
|
|
|
1,153
|
|
|
2.60
|
|
|
|
1,206
|
|
|
2.61
|
|
Automobile
|
|
|
|
104
|
|
|
0.18
|
|
|
|
101
|
|
|
0.17
|
|
|
|
106
|
|
|
0.17
|
|
Other revolving credit and installment
|
|
|
|
59
|
|
|
0.15
|
|
|
|
56
|
|
|
0.14
|
|
|
|
51
|
|
|
0.13
|
|
Total consumer
|
|
|
|
5,671
|
|
|
1.26
|
|
|
|
6,053
|
|
|
1.34
|
|
|
|
6,325
|
|
|
1.37
|
|
Total nonaccrual loans
|
|
|
|
9,056
|
|
|
0.95
|
|
|
|
9,759
|
|
|
1.02
|
|
|
|
10,384
|
|
|
1.07
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
|
|
149
|
|
|
|
|
|
|
179
|
|
|
|
|
|
|
197
|
|
|
|
|
Non-government insured/guaranteed
|
|
|
|
632
|
|
|
|
|
|
|
726
|
|
|
|
|
|
|
781
|
|
|
|
|
Total foreclosed assets
|
|
|
|
781
|
|
|
|
|
|
|
905
|
|
|
|
|
|
|
978
|
|
|
|
|
Total nonperforming assets
|
|
|
$
|
9,837
|
|
|
1.03
|
%
|
|
$
|
10,664
|
|
|
1.11
|
%
|
|
$
|
11,362
|
|
|
1.17
|
%
|
Change from prior quarter:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
|
|
$
|
(703
|
)
|
|
|
|
|
$
|
(625
|
)
|
|
|
|
|
$
|
(602
|
)
|
|
|
|
Total nonperforming assets
|
|
|
|
(827
|
)
|
|
|
|
|
|
(698
|
)
|
|
|
|
|
|
(644
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $12.1 billion at June 30, 2017, which was down $141
million from March 31, 2017. Second quarter 2017 included a $100 million
reserve release1, reflecting continued strong credit
performance. The allowance coverage for total loans was 1.27 percent,
compared with 1.28 percent in first quarter 2017. The allowance covered
4.6 times annualized second quarter net charge-offs, compared with 3.8
times in the prior quarter. The allowance coverage for nonaccrual loans
was 134 percent at June 30, 2017, compared with 126 percent at March 31,
2017. The Company believes the allowance was appropriate for losses
inherent in the loan portfolio at June 30, 2017.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Community Banking
|
|
|
$
|
2,993
|
|
|
3,009
|
|
|
3,179
|
Wholesale Banking
|
|
|
|
2,388
|
|
|
2,115
|
|
|
2,073
|
Wealth and Investment Management
|
|
|
|
682
|
|
|
623
|
|
|
584
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Total revenue
|
|
|
$
|
12,289
|
|
|
12,093
|
|
|
12,204
|
Provision for credit losses
|
|
|
|
623
|
|
|
646
|
|
|
689
|
Noninterest expense
|
|
|
|
7,223
|
|
|
7,221
|
|
|
6,648
|
Segment net income
|
|
|
|
2,993
|
|
|
3,009
|
|
|
3,179
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
477.2
|
|
|
482.7
|
|
|
485.7
|
Average assets
|
|
|
|
983.5
|
|
|
990.7
|
|
|
967.6
|
Average deposits
|
|
|
|
727.2
|
|
|
717.2
|
|
|
703.7
|
|
|
|
|
|
|
|
|
|
|
|
Community Banking reported net income of $3.0 billion, down $16 million,
or 1 percent, from first quarter 2017. Revenue of $12.3 billion
increased $196 million, or 2 percent, from first quarter 2017, driven by
the gain on the sale of a Pick-a-Pay PCI loan portfolio, higher other
income (reflecting the accounting impact of net hedge ineffectiveness),
higher gains on sales of debt securities and higher card fees, partially
offset by lower gains on equity investments, lower net interest income
and lower mortgage banking revenue. Noninterest expense was flat,
compared with first quarter 2017, as lower personnel expense offset
higher professional services. The provision for credit losses decreased
$23 million linked quarter.
Net income decreased $186 million, or 6 percent, from second quarter
2016. Revenue increased $85 million, or 1 percent, compared with a year
ago due to the gain on the sale of a Pick-a-Pay PCI loan portfolio,
higher net interest income, higher gains from deferred compensation plan
investments (offset in benefits expense) and higher card fees, partially
offset by lower mortgage banking revenue and gains on sales of debt
securities. Noninterest expense increased $575 million, or 9 percent,
from a year ago driven by higher personnel and professional services
expense. The provision for credit losses decreased $66 million from a
year ago primarily due to improvement in the consumer real estate
portfolios.
Retail Banking and Consumer Payments, Virtual Solutions and
Innovation
-
With over 400,000 branch customer experience surveys completed during
the second quarter, ‘Overall Satisfaction with Most Recent Visit’ and
‘Loyalty’ scores in June reached their highest levels since August 2016
-
5,977 retail bank branches as of the end of second quarter 2017,
reflecting 54 branch consolidations in the quarter
-
Primary consumer checking customers6,7 up 0.7 percent
year-over-year
-
Debit card point-of-sale purchase volume8 of $80.6 billion
in second quarter, up 6 percent year-over-year
-
Credit card point-of-sale purchase volume of $20.0 billion in second
quarter, up 3 percent year-over-year
-
Credit card penetration in retail banking households of 45.5 percent9
-
27.9 million digital (online and mobile) active customers in June,
including 20.4 million mobile active users10
-
Keynote's Banker Scorecard named Wells Fargo as tied for #1 in online
performance (May 2017)
-
Launched ZelleSM peer-to-peer payments experience to
allow digital customers to send, receive, and request money with
mobile banking customers across the U.S.
Consumer Lending
-
Auto originations of $4.5 billion in second quarter, down 17 percent
from prior quarter and down 45 percent from prior year, as proactive
steps to tighten underwriting standards resulted in lower origination
volume
-
Home Lending
-
Originations of $56 billion, up from $44 billion in prior quarter
-
Applications of $83 billion, up from $59 billion in prior quarter
-
Application pipeline of $34 billion at quarter end, up from $28
billion at March 31, 2017
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
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Total revenue
|
|
|
$
|
6,951
|
|
|
7,038
|
|
|
7,284
|
Provision (reversal of provision) for credit losses
|
|
|
|
(65
|
)
|
|
(43
|
)
|
|
385
|
Noninterest expense
|
|
|
|
4,078
|
|
|
4,225
|
|
|
4,036
|
Segment net income
|
|
|
|
2,388
|
|
|
2,115
|
|
|
2,073
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
464.9
|
|
|
466.3
|
|
|
451.4
|
Average assets
|
|
|
|
817.3
|
|
|
807.8
|
|
|
772.6
|
Average deposits
|
|
|
|
463.0
|
|
|
466.0
|
|
|
425.8
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Banking reported net income of $2.4 billion, up $273 million,
or 13 percent, from first quarter 2017, primarily due to the tax benefit
resulting from our agreement to sell Wells Fargo Insurance Services USA
and related businesses and lower noninterest expense. Revenue of
$7.0 billion decreased $87 million, or 1 percent, from the prior
quarter. Net interest income increased $130 million, or 3 percent, on
higher trading related income, increased loan yields and one additional
business day in the quarter. Noninterest income decreased $217 million,
or 8 percent, as lower customer accommodation trading and lower
principal investing results were partially offset by higher investment
banking and commercial real estate brokerage fees. Noninterest expense
decreased $147 million, or 3 percent, from the prior quarter due to
seasonally higher personnel expenses in the first quarter. The provision
for credit losses decreased $22 million from the prior quarter,
primarily due to improvements in the oil and gas portfolio.
Net income increased $315 million, or 15 percent, from second quarter
2016, primarily due to the tax benefit in second quarter 2017 and lower
loan loss provision. Revenue decreased $333 million, or 5 percent, from
second quarter 2016, which included the gain on sale of our health
benefit services business. Net interest income increased $359 million,
or 9 percent, from second quarter 2016 on deposit and loan growth,
including the GE Capital portfolio acquisitions in the second half of
2016, as well as the impact of rising interest rates. Noninterest income
decreased $692 million, or 21 percent, from a year ago primarily due to
the second quarter 2016 gain on the sale of our health benefit services
business, lower customer accommodation trading results, and lower
principal investing gains. Noninterest expense increased $42 million, or
1 percent, from a year ago primarily due to higher expenses related to
growth initiatives, compliance, and regulatory requirements. The
provision for credit losses decreased $450 million from a year ago
primarily due to improvements in the oil and gas portfolio.
Wealth and Investment Management (WIM)
provides a full range of personalized wealth management, investment
and retirement products and services to clients across U.S. based
businesses including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo
Asset Management. We deliver financial planning, private banking,
credit, investment management and fiduciary services to high-net worth
and ultra-high-net worth individuals and families. We also serve
customers’ brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities
delivered to global institutional clients through separate accounts and
the Wells Fargo Funds.
Selected Financial Information
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
Total revenue
|
|
|
$
|
4,182
|
|
|
4,193
|
|
|
3,919
|
Provision (reversal of provision) for credit losses
|
|
|
|
7
|
|
|
(4
|
)
|
|
2
|
Noninterest expense
|
|
|
|
3,075
|
|
|
3,206
|
|
|
2,976
|
Segment net income
|
|
|
|
682
|
|
|
623
|
|
|
584
|
(in billions)
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
|
71.7
|
|
|
70.7
|
|
|
66.7
|
Average assets
|
|
|
|
213.1
|
|
|
221.9
|
|
|
205.3
|
Average deposits
|
|
|
|
188.2
|
|
|
195.6
|
|
|
182.5
|
|
|
|
|
|
|
|
|
|
|
|
Wealth and Investment Management reported net income of $682 million, up
$59 million, or 9 percent, from first quarter 2017. Revenue of
$4.2 billion decreased $11 million from the prior quarter, primarily due
to lower gains on deferred compensation plan investments (offset in
employee benefits expense) and lower other fee income, partially offset
by higher net interest income and higher asset-based fees. Noninterest
expense decreased $131 million, or 4 percent, from the prior quarter,
primarily driven by lower personnel expenses from seasonally-higher
first quarter expense, lower other non-personnel expenses, and lower
deferred compensation plan expense (offset in trading revenue),
partially offset by higher operating losses.
Net income was up $98 million, or 17 percent, from second quarter 2016.
Revenue increased $263 million, or 7 percent, from a year ago primarily
driven by higher net interest income and asset-based fees, partially
offset by lower transaction revenue. Noninterest expense increased
$99 million, or 3 percent, from a year ago, primarily due to higher
operating losses, broker commissions, and other personnel expenses.
-
WIM total client assets reached a record-high of $1.8 trillion, up 8
percent from a year ago, driven by higher market valuations and
continued positive net flows
-
Second quarter 2017 average closed referred investment assets
(referrals resulting from the WIM/Community Banking partnership) were
up 12 percent from first quarter 2017
Retail Brokerage
-
Client assets of $1.6 trillion, up 8 percent from prior year
-
Advisory assets of $503 billion, up 13 percent from prior year,
primarily driven by higher market valuations and positive net flows
-
Strong loan growth, with average balances up 11 percent from prior
year largely due to continued growth in non-conforming mortgage loans
Wealth Management
-
Client assets of $236 billion, up 5 percent from prior year
-
Average loan balances up 5 percent from prior year primarily driven by
continued growth in non-conforming mortgage loans
Asset Management
-
Total assets under management of $487 billion, up 1 percent from prior
year, primarily due to higher market valuations, positive fixed income
net flows and assets acquired during the prior year, partially offset
by equity and money market net outflows
-
Strong performance in active equity with 70 percent of active equity
mutual funds outperforming their respective benchmarks year-to-date
through the end of June
Retirement
-
IRA assets of $390 billion, up 6 percent from prior year
-
Institutional Retirement plan assets of $375 billion, up 11 percent
from prior year
Conference Call
The Company will host a live conference call on Friday, July 14, at 7:00
a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161
(U.S. and Canada) or 440-424-4922 (International). The call will also be
available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~34999396.
A replay of the conference call will be available beginning at 10:00
a.m. PT (1:00 p.m. ET) on Friday, July 14 through Friday, July 28.
Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #34999396. The replay will also
be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~34999396.
|
Endnotes
|
1
|
|
Reserve build represents the amount by which the provision for
credit losses exceeds net charge-offs, while reserve release
represents the amount by which net charge-offs exceed the provision
for credit losses.
|
2
|
|
See table on page 36 for more information on Common Equity Tier 1.
Common Equity Tier 1 (fully phased-in) is a preliminary estimate and
is calculated assuming the full phase-in of the Basel III capital
rules.
|
3
|
|
Net payout ratio means the ratio of (i) common stock dividends and
share repurchases less issuances and stock compensation-related
items, divided by (ii) net income applicable to common stock.
|
4
|
|
Market sensitive revenue represents net gains from trading
activities, debt securities and equity investments.
|
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 2017, comparisons with May 2016.
|
8
|
|
Combined consumer and business debit card purchase volume dollars.
|
9
|
|
Credit card penetration defined as the percentage of Retail Banking
households that have a credit card with Wells Fargo. Retail Banking
households reflect only those households that maintain a retail
checking account, which we believe provides the foundation for
long-term retail banking relationships. Credit card household
penetration rates have not been adjusted to reflect the impact of
the potentially unauthorized accounts identified by an independent
consulting firm late in 2016 because the maximum impact in any one
quarter was not greater than 86 basis points, or approximately 2
percent. Data as of May 2017.
|
10
|
|
Primarily includes retail banking, consumer lending, small business
and business banking customers.
|
|
|
|
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
“expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,”
“could,” “should,” “can” and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance levels; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital or
liquidity levels or targets and our estimated Common Equity Tier 1 ratio
under Basel III capital standards; (viii) the performance of our
mortgage business and any related exposures; (ix) the expected outcome
and impact of legal, regulatory and legislative developments, as well as
our expectations regarding compliance therewith; (x) future common stock
dividends, common share repurchases and other uses of capital; (xi) our
targeted range for return on assets and return on equity; (xii) the
outcome of contingencies, such as legal proceedings; and (xiii) the
Company’s plans, objectives and strategies.
Forward-looking statements are not based on historical facts but instead
represent our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance that any
list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the following, without
limitation:
-
current and future economic and market conditions, including the
effects of declines in housing prices, high unemployment rates, U.S.
fiscal debt, budget and tax matters, geopolitical matters, and the
overall slowdown in global economic growth;
-
our capital and liquidity requirements (including under regulatory
capital standards, such as the Basel III capital standards) and our
ability to generate capital internally or raise capital on favorable
terms;
-
financial services reform and other current, pending or future
legislation or regulation that could have a negative effect on our
revenue and businesses, including the Dodd-Frank Act and other
legislation and regulation relating to bank products and services;
-
the extent of our success in our loan modification efforts, as well as
the effects of regulatory requirements or guidance regarding loan
modifications;
-
the amount of mortgage loan repurchase demands that we receive and our
ability to satisfy any such demands without having to repurchase loans
related thereto or otherwise indemnify or reimburse third parties, and
the credit quality of or losses on such repurchased mortgage loans;
-
negative effects relating to our mortgage servicing and foreclosure
practices, as well as changes in industry standards or practices,
regulatory or judicial requirements, penalties or fines, increased
servicing and other costs or obligations, including loan modification
requirements, or delays or moratoriums on foreclosures;
-
our ability to realize our efficiency ratio target as part of our
expense management initiatives, including as a result of business and
economic cyclicality, seasonality, changes in our business composition
and operating environment, growth in our businesses and/or
acquisitions, and unexpected expenses relating to, among other things,
litigation and regulatory matters;
-
the effect of the current low interest rate environment or changes in
interest rates on our net interest income, net interest margin and our
mortgage originations, mortgage servicing rights and mortgages held
for sale;
-
significant turbulence or a disruption in the capital or financial
markets, which could result in, among other things, reduced investor
demand for mortgage loans, a reduction in the availability of funding
or increased funding costs, and declines in asset values and/or
recognition of other-than-temporary impairment on securities held in
our investment securities portfolio;
-
the effect of a fall in stock market prices on our investment banking
business and our fee income from our brokerage, asset and wealth
management businesses;
-
negative effects from the retail banking sales practices matter,
including on our legal, operational and compliance costs, our ability
to engage in certain business activities or offer certain products or
services, our ability to keep and attract customers, our ability to
attract and retain qualified team members, and our reputation;
-
reputational damage from negative publicity, protests, fines,
penalties and other negative consequences from regulatory violations
and legal actions;
-
a failure in or breach of our operational or security systems or
infrastructure, or those of our third party vendors or other service
providers, including as a result of cyber attacks;
-
the effect of changes in the level of checking or savings account
deposits on our funding costs and net interest margin;
-
fiscal and monetary policies of the Federal Reserve Board; and
-
the other risk factors and uncertainties described under “Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2016.
In addition to the above factors, we also caution that the amount and
timing of any future common stock dividends or repurchases will depend
on the earnings, cash requirements and financial condition of the
Company, market conditions, capital requirements (including under Basel
capital standards), common stock issuance requirements, applicable law
and regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by the Company’s Board
of Directors, and may be subject to regulatory approval or conditions.
For more information about factors that could cause actual results to
differ materially from our expectations, refer to our reports filed with
the Securities and Exchange Commission, including the discussion under
“Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2016, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, insurance, investments, mortgage, and
consumer and commercial finance through more than 8,500 locations,
13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 42 countries and territories to support customers who conduct
business in the global economy. With approximately 271,000 team members,
Wells Fargo serves one in three households in the United States. Wells
Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of
America’s largest corporations.
|
Wells Fargo & Company and Subsidiaries
|
QUARTERLY FINANCIAL DATA
|
TABLE OF CONTENTS
|
|
|
|
|
Pages
|
|
|
|
|
Summary Information
|
|
|
|
Summary Financial Data
|
|
|
16
|
|
|
|
|
Income
|
|
|
|
Consolidated Statement of Income
|
|
|
18
|
Consolidated Statement of Comprehensive Income
|
|
|
20
|
Condensed Consolidated Statement of Changes in Total Equity
|
|
|
20
|
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)
|
|
|
21
|
Five Quarter Average Balances, Yields and Rates Paid
(Taxable-Equivalent Basis)
|
|
|
23
|
Noninterest Income and Noninterest Expense
|
|
|
24
|
|
|
|
|
Balance Sheet
|
|
|
|
Consolidated Balance Sheet
|
|
|
26
|
Investment Securities
|
|
|
28
|
|
|
|
|
Loans
|
|
|
|
Loans
|
|
|
28
|
Nonperforming Assets
|
|
|
29
|
Loans 90 Days or More Past Due and Still Accruing
|
|
|
30
|
Purchased Credit-Impaired Loans
|
|
|
31
|
Pick-A-Pay Portfolio
|
|
|
32
|
Changes in Allowance for Credit Losses
|
|
|
34
|
|
|
|
|
Equity
|
|
|
|
Tangible Common Equity
|
|
|
35
|
Common Equity Tier 1 Under Basel III
|
|
|
36
|
|
|
|
|
Operating Segments
|
|
|
|
Operating Segment Results
|
|
|
37
|
|
|
|
|
Other
|
|
|
|
Mortgage Servicing and other related data
|
|
|
39
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
SUMMARY FINANCIAL DATA
|
|
|
|
|
|
|
% Change
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Jun 30, 2017 from
|
|
|
Six months ended
|
|
|
|
|
($ in millions, except per
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Jun 30,
|
|
|
Jun 30,
|
|
|
Jun 30,
|
|
|
%
|
|
share amounts)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
For the Period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,810
|
|
|
5,457
|
|
|
5,558
|
|
|
6
|
%
|
|
5
|
|
|
$
|
11,267
|
|
|
11,020
|
|
|
2
|
%
|
Wells Fargo net income applicable to common stock
|
|
|
5,404
|
|
|
5,056
|
|
|
5,173
|
|
|
7
|
|
|
4
|
|
|
|
10,460
|
|
|
10,258
|
|
|
2
|
|
Diluted earnings per common share
|
|
|
1.07
|
|
|
1.00
|
|
|
1.01
|
|
|
7
|
|
|
6
|
|
|
|
2.07
|
|
|
2.00
|
|
|
4
|
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.21
|
%
|
|
1.15
|
|
|
1.20
|
|
|
5
|
|
|
1
|
|
|
|
1.18
|
%
|
|
1.20
|
|
|
(2
|
)
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
11.95
|
|
|
11.54
|
|
|
11.70
|
|
|
4
|
|
|
2
|
|
|
|
11.75
|
|
|
11.72
|
|
|
—
|
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
14.26
|
|
|
13.85
|
|
|
14.15
|
|
|
3
|
|
|
1
|
|
|
|
14.06
|
|
|
14.15
|
|
|
(1
|
)
|
Efficiency ratio (2)
|
|
|
61.1
|
|
|
62.7
|
|
|
58.1
|
|
|
(3
|
)
|
|
5
|
|
|
|
61.9
|
|
|
58.4
|
|
|
6
|
|
Total revenue
|
|
$
|
22,169
|
|
|
22,002
|
|
|
22,162
|
|
|
1
|
|
|
—
|
|
|
$
|
44,171
|
|
|
44,357
|
|
|
—
|
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
8,628
|
|
|
8,210
|
|
|
9,296
|
|
|
5
|
|
|
(7
|
)
|
|
|
16,838
|
|
|
18,463
|
|
|
(9
|
)
|
Dividends declared per common share
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
|
|
—
|
|
|
—
|
|
|
|
0.760
|
|
|
0.755
|
|
|
1
|
|
Average common shares outstanding
|
|
|
4,989.9
|
|
|
5,008.6
|
|
|
5,066.9
|
|
|
—
|
|
|
(2
|
)
|
|
|
4,999.2
|
|
|
5,071.3
|
|
|
(1
|
)
|
Diluted average common shares outstanding
|
|
|
5,037.7
|
|
|
5,070.4
|
|
|
5,118.1
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
5,054.8
|
|
|
5,129.8
|
|
|
(1
|
)
|
Average loans
|
|
$
|
956,879
|
|
|
963,645
|
|
|
950,751
|
|
|
(1
|
)
|
|
1
|
|
|
$
|
960,243
|
|
|
938,986
|
|
|
2
|
|
Average assets
|
|
|
1,927,079
|
|
|
1,931,041
|
|
|
1,862,084
|
|
|
—
|
|
|
3
|
|
|
|
1,929,049
|
|
|
1,840,980
|
|
|
5
|
|
Average total deposits
|
|
|
1,301,195
|
|
|
1,299,191
|
|
|
1,236,658
|
|
|
—
|
|
|
5
|
|
|
|
1,300,198
|
|
|
1,228,044
|
|
|
6
|
|
Average consumer and small business banking deposits (4)
|
|
|
760,149
|
|
|
758,754
|
|
|
726,359
|
|
|
—
|
|
|
5
|
|
|
|
759,455
|
|
|
720,598
|
|
|
5
|
|
Net interest margin
|
|
|
2.90
|
%
|
|
2.87
|
|
|
2.86
|
|
|
1
|
|
|
1
|
|
|
|
2.89
|
%
|
|
2.88
|
|
|
—
|
|
At Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
409,594
|
|
|
407,560
|
|
|
353,426
|
|
|
—
|
|
|
16
|
|
|
$
|
409,594
|
|
|
353,426
|
|
|
16
|
|
Loans
|
|
|
957,423
|
|
|
958,405
|
|
|
957,157
|
|
|
—
|
|
|
—
|
|
|
|
957,423
|
|
|
957,157
|
|
|
—
|
|
Allowance for loan losses
|
|
|
11,073
|
|
|
11,168
|
|
|
11,664
|
|
|
(1
|
)
|
|
(5
|
)
|
|
|
11,073
|
|
|
11,664
|
|
|
(5
|
)
|
Goodwill
|
|
|
26,573
|
|
|
26,666
|
|
|
26,963
|
|
|
—
|
|
|
(1
|
)
|
|
|
26,573
|
|
|
26,963
|
|
|
(1
|
)
|
Assets
|
|
|
1,930,871
|
|
|
1,951,564
|
|
|
1,889,235
|
|
|
(1
|
)
|
|
2
|
|
|
|
1,930,871
|
|
|
1,889,235
|
|
|
2
|
|
Deposits
|
|
|
1,305,830
|
|
|
1,325,444
|
|
|
1,245,473
|
|
|
(1
|
)
|
|
5
|
|
|
|
1,305,830
|
|
|
1,245,473
|
|
|
5
|
|
Common stockholders' equity
|
|
|
181,428
|
|
|
178,388
|
|
|
178,633
|
|
|
2
|
|
|
2
|
|
|
|
181,428
|
|
|
178,633
|
|
|
2
|
|
Wells Fargo stockholders’ equity
|
|
|
205,230
|
|
|
201,500
|
|
|
201,745
|
|
|
2
|
|
|
2
|
|
|
|
205,230
|
|
|
201,745
|
|
|
2
|
|
Total equity
|
|
|
206,145
|
|
|
202,489
|
|
|
202,661
|
|
|
2
|
|
|
2
|
|
|
|
206,145
|
|
|
202,661
|
|
|
2
|
|
Tangible common equity (1)
|
|
|
152,173
|
|
|
148,850
|
|
|
148,110
|
|
|
2
|
|
|
3
|
|
|
|
152,173
|
|
|
148,110
|
|
|
3
|
|
Common shares outstanding
|
|
|
4,966.8
|
|
|
4,996.7
|
|
|
5,048.5
|
|
|
(1
|
)
|
|
(2
|
)
|
|
|
4,966.8
|
|
|
5,048.5
|
|
|
(2
|
)
|
Book value per common share (5)
|
|
$
|
36.53
|
|
|
35.70
|
|
|
35.38
|
|
|
2
|
|
|
3
|
|
|
$
|
36.53
|
|
|
35.38
|
|
|
3
|
|
Tangible book value per common share (1)(5)
|
|
|
30.64
|
|
|
29.79
|
|
|
29.34
|
|
|
3
|
|
|
4
|
|
|
|
30.64
|
|
|
29.34
|
|
|
4
|
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
56.60
|
|
|
59.99
|
|
|
51.41
|
|
|
(6
|
)
|
|
10
|
|
|
|
59.99
|
|
|
53.27
|
|
|
13
|
|
Low
|
|
|
50.84
|
|
|
53.35
|
|
|
44.50
|
|
|
(5
|
)
|
|
14
|
|
|
|
50.84
|
|
|
44.50
|
|
|
14
|
|
Period end
|
|
|
55.41
|
|
|
55.66
|
|
|
47.33
|
|
|
—
|
|
|
17
|
|
|
|
55.41
|
|
|
47.33
|
|
|
17
|
|
Team members (active, full-time equivalent)
|
|
|
270,600
|
|
|
272,800
|
|
|
267,900
|
|
|
(1
|
)
|
|
1
|
|
|
|
270,600
|
|
|
267,900
|
|
|
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)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
For the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income
|
|
$
|
5,810
|
|
|
5,457
|
|
|
5,274
|
|
|
5,644
|
|
|
5,558
|
Wells Fargo net income applicable to common stock
|
|
|
5,404
|
|
|
5,056
|
|
|
4,872
|
|
|
5,243
|
|
|
5,173
|
Diluted earnings per common share
|
|
|
1.07
|
|
|
1.00
|
|
|
0.96
|
|
|
1.03
|
|
|
1.01
|
Profitability ratios (annualized):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo net income to average assets (ROA)
|
|
|
1.21
|
%
|
|
1.15
|
|
|
1.08
|
|
|
1.17
|
|
|
1.20
|
Wells Fargo net income applicable to common stock to average Wells
Fargo common stockholders’ equity (ROE)
|
|
|
11.95
|
|
|
11.54
|
|
|
10.94
|
|
|
11.60
|
|
|
11.70
|
Return on average tangible common equity (ROTCE)(1)
|
|
|
14.26
|
|
|
13.85
|
|
|
13.16
|
|
|
13.96
|
|
|
14.15
|
Efficiency ratio (2)
|
|
|
61.1
|
|
|
62.7
|
|
|
61.2
|
|
|
59.4
|
|
|
58.1
|
Total revenue
|
|
$
|
22,169
|
|
|
22,002
|
|
|
21,582
|
|
|
22,328
|
|
|
22,162
|
Pre-tax pre-provision profit (PTPP) (3)
|
|
|
8,628
|
|
|
8,210
|
|
|
8,367
|
|
|
9,060
|
|
|
9,296
|
Dividends declared per common share
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
Average common shares outstanding
|
|
|
4,989.9
|
|
|
5,008.6
|
|
|
5,025.6
|
|
|
5,043.4
|
|
|
5,066.9
|
Diluted average common shares outstanding
|
|
|
5,037.7
|
|
|
5,070.4
|
|
|
5,078.2
|
|
|
5,094.6
|
|
|
5,118.1
|
Average loans
|
|
$
|
956,879
|
|
|
963,645
|
|
|
964,147
|
|
|
957,484
|
|
|
950,751
|
Average assets
|
|
|
1,927,079
|
|
|
1,931,041
|
|
|
1,944,250
|
|
|
1,914,586
|
|
|
1,862,084
|
Average total deposits
|
|
|
1,301,195
|
|
|
1,299,191
|
|
|
1,284,158
|
|
|
1,261,527
|
|
|
1,236,658
|
Average consumer and small business banking deposits (4)
|
|
|
760,149
|
|
|
758,754
|
|
|
749,946
|
|
|
739,066
|
|
|
726,359
|
Net interest margin
|
|
|
2.90
|
%
|
|
2.87
|
|
|
2.87
|
|
|
2.82
|
|
|
2.86
|
At Quarter End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
|
|
$
|
409,594
|
|
|
407,560
|
|
|
407,947
|
|
|
390,832
|
|
|
353,426
|
Loans
|
|
|
957,423
|
|
|
958,405
|
|
|
967,604
|
|
|
961,326
|
|
|
957,157
|
Allowance for loan losses
|
|
|
11,073
|
|
|
11,168
|
|
|
11,419
|
|
|
11,583
|
|
|
11,664
|
Goodwill
|
|
|
26,573
|
|
|
26,666
|
|
|
26,693
|
|
|
26,688
|
|
|
26,963
|
Assets
|
|
|
1,930,871
|
|
|
1,951,564
|
|
|
1,930,115
|
|
|
1,942,124
|
|
|
1,889,235
|
Deposits
|
|
|
1,305,830
|
|
|
1,325,444
|
|
|
1,306,079
|
|
|
1,275,894
|
|
|
1,245,473
|
Common stockholders' equity
|
|
|
181,428
|
|
|
178,388
|
|
|
176,469
|
|
|
179,916
|
|
|
178,633
|
Wells Fargo stockholders’ equity
|
|
|
205,230
|
|
|
201,500
|
|
|
199,581
|
|
|
203,028
|
|
|
201,745
|
Total equity
|
|
|
206,145
|
|
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
Tangible common equity (1)
|
|
|
152,173
|
|
|
148,850
|
|
|
146,737
|
|
|
149,829
|
|
|
148,110
|
Common shares outstanding
|
|
|
4,966.8
|
|
|
4,996.7
|
|
|
5,016.1
|
|
|
5,023.9
|
|
|
5,048.5
|
Book value per common share (5)
|
|
$
|
36.53
|
|
|
35.70
|
|
|
35.18
|
|
|
35.81
|
|
|
35.38
|
Tangible book value per common share (1)(5)
|
|
|
30.64
|
|
|
29.79
|
|
|
29.25
|
|
|
29.82
|
|
|
29.34
|
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
|
|
|
56.60
|
|
|
59.99
|
|
|
58.02
|
|
|
51.00
|
|
|
51.41
|
Low
|
|
|
50.84
|
|
|
53.35
|
|
|
43.55
|
|
|
44.10
|
|
|
44.50
|
Period end
|
|
|
55.41
|
|
|
55.66
|
|
|
55.11
|
|
|
44.28
|
|
|
47.33
|
Team members (active, full-time equivalent)
|
|
|
270,600
|
|
|
272,800
|
|
|
269,100
|
|
|
268,800
|
|
|
267,900
|
(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)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
710
|
|
|
572
|
|
|
24
|
%
|
|
$
|
1,353
|
|
|
1,168
|
|
|
16
|
%
|
Investment securities
|
|
|
|
2,698
|
|
|
2,176
|
|
|
24
|
|
|
|
5,373
|
|
|
4,438
|
|
|
21
|
|
Mortgages held for sale
|
|
|
|
195
|
|
|
181
|
|
|
8
|
|
|
|
379
|
|
|
342
|
|
|
11
|
|
Loans held for sale
|
|
|
|
4
|
|
|
3
|
|
|
33
|
|
|
|
5
|
|
|
5
|
|
|
—
|
|
Loans
|
|
|
|
10,358
|
|
|
9,822
|
|
|
5
|
|
|
|
20,499
|
|
|
19,399
|
|
|
6
|
|
Other interest income
|
|
|
|
750
|
|
|
392
|
|
|
91
|
|
|
|
1,332
|
|
|
766
|
|
|
74
|
|
Total interest income
|
|
|
|
14,715
|
|
|
13,146
|
|
|
12
|
|
|
|
28,941
|
|
|
26,118
|
|
|
11
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
683
|
|
|
332
|
|
|
106
|
|
|
|
1,220
|
|
|
639
|
|
|
91
|
|
Short-term borrowings
|
|
|
|
163
|
|
|
77
|
|
|
112
|
|
|
|
277
|
|
|
144
|
|
|
92
|
|
Long-term debt
|
|
|
|
1,278
|
|
|
921
|
|
|
39
|
|
|
|
2,461
|
|
|
1,763
|
|
|
40
|
|
Other interest expense
|
|
|
|
108
|
|
|
83
|
|
|
30
|
|
|
|
200
|
|
|
172
|
|
|
16
|
|
Total interest expense
|
|
|
|
2,232
|
|
|
1,413
|
|
|
58
|
|
|
|
4,158
|
|
|
2,718
|
|
|
53
|
|
Net interest income
|
|
|
|
12,483
|
|
|
11,733
|
|
|
6
|
|
|
|
24,783
|
|
|
23,400
|
|
|
6
|
|
Provision for credit losses
|
|
|
|
555
|
|
|
1,074
|
|
|
(48
|
)
|
|
|
1,160
|
|
|
2,160
|
|
|
(46
|
)
|
Net interest income after provision for credit losses
|
|
|
|
11,928
|
|
|
10,659
|
|
|
12
|
|
|
|
23,623
|
|
|
21,240
|
|
|
11
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,276
|
|
|
1,336
|
|
|
(4
|
)
|
|
|
2,589
|
|
|
2,645
|
|
|
(2
|
)
|
Trust and investment fees
|
|
|
|
3,629
|
|
|
3,547
|
|
|
2
|
|
|
|
7,199
|
|
|
6,932
|
|
|
4
|
|
Card fees
|
|
|
|
1,019
|
|
|
997
|
|
|
2
|
|
|
|
1,964
|
|
|
1,938
|
|
|
1
|
|
Other fees
|
|
|
|
902
|
|
|
906
|
|
|
—
|
|
|
|
1,767
|
|
|
1,839
|
|
|
(4
|
)
|
Mortgage banking
|
|
|
|
1,148
|
|
|
1,414
|
|
|
(19
|
)
|
|
|
2,376
|
|
|
3,012
|
|
|
(21
|
)
|
Insurance
|
|
|
|
280
|
|
|
286
|
|
|
(2
|
)
|
|
|
557
|
|
|
713
|
|
|
(22
|
)
|
Net gains from trading activities
|
|
|
|
237
|
|
|
328
|
|
|
(28
|
)
|
|
|
676
|
|
|
528
|
|
|
28
|
|
Net gains on debt securities
|
|
|
|
120
|
|
|
447
|
|
|
(73
|
)
|
|
|
156
|
|
|
691
|
|
|
(77
|
)
|
Net gains from equity investments
|
|
|
|
188
|
|
|
189
|
|
|
(1
|
)
|
|
|
591
|
|
|
433
|
|
|
36
|
|
Lease income
|
|
|
|
493
|
|
|
497
|
|
|
(1
|
)
|
|
|
974
|
|
|
870
|
|
|
12
|
|
Other
|
|
|
|
394
|
|
|
482
|
|
|
(18
|
)
|
|
|
539
|
|
|
1,356
|
|
|
(60
|
)
|
Total noninterest income
|
|
|
|
9,686
|
|
|
10,429
|
|
|
(7
|
)
|
|
|
19,388
|
|
|
20,957
|
|
|
(7
|
)
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,343
|
|
|
4,099
|
|
|
6
|
|
|
|
8,604
|
|
|
8,135
|
|
|
6
|
|
Commission and incentive compensation
|
|
|
|
2,499
|
|
|
2,604
|
|
|
(4
|
)
|
|
|
5,224
|
|
|
5,249
|
|
|
—
|
|
Employee benefits
|
|
|
|
1,308
|
|
|
1,244
|
|
|
5
|
|
|
|
2,994
|
|
|
2,770
|
|
|
8
|
|
Equipment
|
|
|
|
529
|
|
|
493
|
|
|
7
|
|
|
|
1,106
|
|
|
1,021
|
|
|
8
|
|
Net occupancy
|
|
|
|
706
|
|
|
716
|
|
|
(1
|
)
|
|
|
1,418
|
|
|
1,427
|
|
|
(1
|
)
|
Core deposit and other intangibles
|
|
|
|
287
|
|
|
299
|
|
|
(4
|
)
|
|
|
576
|
|
|
592
|
|
|
(3
|
)
|
FDIC and other deposit assessments
|
|
|
|
328
|
|
|
255
|
|
|
29
|
|
|
|
661
|
|
|
505
|
|
|
31
|
|
Other
|
|
|
|
3,541
|
|
|
3,156
|
|
|
12
|
|
|
|
6,750
|
|
|
6,195
|
|
|
9
|
|
Total noninterest expense
|
|
|
|
13,541
|
|
|
12,866
|
|
|
5
|
|
|
|
27,333
|
|
|
25,894
|
|
|
6
|
|
Income before income tax expense
|
|
|
|
8,073
|
|
|
8,222
|
|
|
(2
|
)
|
|
|
15,678
|
|
|
16,303
|
|
|
(4
|
)
|
Income tax expense
|
|
|
|
2,225
|
|
|
2,649
|
|
|
(16
|
)
|
|
|
4,282
|
|
|
5,216
|
|
|
(18
|
)
|
Net income before noncontrolling interests
|
|
|
|
5,848
|
|
|
5,573
|
|
|
5
|
|
|
|
11,396
|
|
|
11,087
|
|
|
3
|
|
Less: Net income from noncontrolling interests
|
|
|
|
38
|
|
|
15
|
|
|
153
|
|
|
|
129
|
|
|
67
|
|
|
93
|
|
Wells Fargo net income
|
|
|
$
|
5,810
|
|
|
5,558
|
|
|
5
|
|
|
$
|
11,267
|
|
|
11,020
|
|
|
2
|
|
Less: Preferred stock dividends and other
|
|
|
|
406
|
|
|
385
|
|
|
5
|
|
|
|
807
|
|
|
762
|
|
|
6
|
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,404
|
|
|
5,173
|
|
|
4
|
|
|
$
|
10,460
|
|
|
10,258
|
|
|
2
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.08
|
|
|
1.02
|
|
|
6
|
|
|
$
|
2.09
|
|
|
2.02
|
|
|
3
|
|
Diluted earnings per common share
|
|
|
|
1.07
|
|
|
1.01
|
|
|
6
|
|
|
|
2.07
|
|
|
2.00
|
|
|
4
|
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
0.380
|
|
|
—
|
|
|
|
0.760
|
|
|
0.755
|
|
|
1
|
|
Average common shares outstanding
|
|
|
|
4,989.9
|
|
|
5,066.9
|
|
|
(2
|
)
|
|
|
4,999.2
|
|
|
5,071.3
|
|
|
(1
|
)
|
Diluted average common shares outstanding
|
|
|
|
5,037.7
|
|
|
5,118.1
|
|
|
(2
|
)
|
|
|
5,054.8
|
|
|
5,129.8
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading assets
|
|
|
$
|
710
|
|
|
643
|
|
|
745
|
|
|
593
|
|
|
572
|
Investment securities
|
|
|
|
2,698
|
|
|
2,675
|
|
|
2,512
|
|
|
2,298
|
|
|
2,176
|
Mortgages held for sale
|
|
|
|
195
|
|
|
184
|
|
|
235
|
|
|
207
|
|
|
181
|
Loans held for sale
|
|
|
|
4
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
Loans
|
|
|
|
10,358
|
|
|
10,141
|
|
|
10,128
|
|
|
9,978
|
|
|
9,822
|
Other interest income
|
|
|
|
750
|
|
|
582
|
|
|
436
|
|
|
409
|
|
|
392
|
Total interest income
|
|
|
|
14,715
|
|
|
14,226
|
|
|
14,058
|
|
|
13,487
|
|
|
13,146
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
683
|
|
|
537
|
|
|
400
|
|
|
356
|
|
|
332
|
Short-term borrowings
|
|
|
|
163
|
|
|
114
|
|
|
101
|
|
|
85
|
|
|
77
|
Long-term debt
|
|
|
|
1,278
|
|
|
1,183
|
|
|
1,061
|
|
|
1,006
|
|
|
921
|
Other interest expense
|
|
|
|
108
|
|
|
92
|
|
|
94
|
|
|
88
|
|
|
83
|
Total interest expense
|
|
|
|
2,232
|
|
|
1,926
|
|
|
1,656
|
|
|
1,535
|
|
|
1,413
|
Net interest income
|
|
|
|
12,483
|
|
|
12,300
|
|
|
12,402
|
|
|
11,952
|
|
|
11,733
|
Provision for credit losses
|
|
|
|
555
|
|
|
605
|
|
|
805
|
|
|
805
|
|
|
1,074
|
Net interest income after provision for credit losses
|
|
|
|
11,928
|
|
|
11,695
|
|
|
11,597
|
|
|
11,147
|
|
|
10,659
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
|
|
1,276
|
|
|
1,313
|
|
|
1,357
|
|
|
1,370
|
|
|
1,336
|
Trust and investment fees
|
|
|
|
3,629
|
|
|
3,570
|
|
|
3,698
|
|
|
3,613
|
|
|
3,547
|
Card fees
|
|
|
|
1,019
|
|
|
945
|
|
|
1,001
|
|
|
997
|
|
|
997
|
Other fees
|
|
|
|
902
|
|
|
865
|
|
|
962
|
|
|
926
|
|
|
906
|
Mortgage banking
|
|
|
|
1,148
|
|
|
1,228
|
|
|
1,417
|
|
|
1,667
|
|
|
1,414
|
Insurance
|
|
|
|
280
|
|
|
277
|
|
|
262
|
|
|
293
|
|
|
286
|
Net gains (losses) from trading activities
|
|
|
|
237
|
|
|
439
|
|
|
(109
|
)
|
|
415
|
|
|
328
|
Net gains on debt securities
|
|
|
|
120
|
|
|
36
|
|
|
145
|
|
|
106
|
|
|
447
|
Net gains from equity investments
|
|
|
|
188
|
|
|
403
|
|
|
306
|
|
|
140
|
|
|
189
|
Lease income
|
|
|
|
493
|
|
|
481
|
|
|
523
|
|
|
534
|
|
|
497
|
Other
|
|
|
|
394
|
|
|
145
|
|
|
(382
|
)
|
|
315
|
|
|
482
|
Total noninterest income
|
|
|
|
9,686
|
|
|
9,702
|
|
|
9,180
|
|
|
10,376
|
|
|
10,429
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
|
|
4,343
|
|
|
4,261
|
|
|
4,193
|
|
|
4,224
|
|
|
4,099
|
Commission and incentive compensation
|
|
|
|
2,499
|
|
|
2,725
|
|
|
2,478
|
|
|
2,520
|
|
|
2,604
|
Employee benefits
|
|
|
|
1,308
|
|
|
1,686
|
|
|
1,101
|
|
|
1,223
|
|
|
1,244
|
Equipment
|
|
|
|
529
|
|
|
577
|
|
|
642
|
|
|
491
|
|
|
493
|
Net occupancy
|
|
|
|
706
|
|
|
712
|
|
|
710
|
|
|
718
|
|
|
716
|
Core deposit and other intangibles
|
|
|
|
287
|
|
|
289
|
|
|
301
|
|
|
299
|
|
|
299
|
FDIC and other deposit assessments
|
|
|
|
328
|
|
|
333
|
|
|
353
|
|
|
310
|
|
|
255
|
Other
|
|
|
|
3,541
|
|
|
3,209
|
|
|
3,437
|
|
|
3,483
|
|
|
3,156
|
Total noninterest expense
|
|
|
|
13,541
|
|
|
13,792
|
|
|
13,215
|
|
|
13,268
|
|
|
12,866
|
Income before income tax expense
|
|
|
|
8,073
|
|
|
7,605
|
|
|
7,562
|
|
|
8,255
|
|
|
8,222
|
Income tax expense
|
|
|
|
2,225
|
|
|
2,057
|
|
|
2,258
|
|
|
2,601
|
|
|
2,649
|
Net income before noncontrolling interests
|
|
|
|
5,848
|
|
|
5,548
|
|
|
5,304
|
|
|
5,654
|
|
|
5,573
|
Less: Net income from noncontrolling interests
|
|
|
|
38
|
|
|
91
|
|
|
30
|
|
|
10
|
|
|
15
|
Wells Fargo net income
|
|
|
$
|
5,810
|
|
|
5,457
|
|
|
5,274
|
|
|
5,644
|
|
|
5,558
|
Less: Preferred stock dividends and other
|
|
|
|
406
|
|
|
401
|
|
|
402
|
|
|
401
|
|
|
385
|
Wells Fargo net income applicable to common stock
|
|
|
$
|
5,404
|
|
|
5,056
|
|
|
4,872
|
|
|
5,243
|
|
|
5,173
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
$
|
1.08
|
|
|
1.01
|
|
|
0.97
|
|
|
1.04
|
|
|
1.02
|
Diluted earnings per common share
|
|
|
|
1.07
|
|
|
1.00
|
|
|
0.96
|
|
|
1.03
|
|
|
1.01
|
Dividends declared per common share
|
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
|
|
0.380
|
Average common shares outstanding
|
|
|
|
4,989.9
|
|
|
5,008.6
|
|
|
5,025.6
|
|
|
5,043.4
|
|
|
5,066.9
|
Diluted average common shares outstanding
|
|
|
|
5,037.7
|
|
|
5,070.4
|
|
|
5,078.2
|
|
|
5,094.6
|
|
|
5,118.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Wells Fargo net income
|
|
|
$
|
5,810
|
|
|
5,558
|
|
|
5
|
%
|
|
$
|
11,267
|
|
|
11,020
|
|
|
2
|
%
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
1,565
|
|
|
1,571
|
|
|
—
|
|
|
|
1,934
|
|
|
2,366
|
|
|
(18
|
)
|
Reclassification of net gains to net income
|
|
|
|
(177
|
)
|
|
(504
|
)
|
|
(65
|
)
|
|
|
(322
|
)
|
|
(808
|
)
|
|
(60
|
)
|
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains arising during the period
|
|
|
|
376
|
|
|
1,057
|
|
|
(64
|
)
|
|
|
243
|
|
|
3,056
|
|
|
(92
|
)
|
Reclassification of net gains on cash flow hedges to net income
|
|
|
|
(153
|
)
|
|
(265
|
)
|
|
(42
|
)
|
|
|
(355
|
)
|
|
(521
|
)
|
|
(32
|
)
|
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial and prior service losses arising during the period
|
|
|
|
—
|
|
|
(19
|
)
|
|
(100
|
)
|
|
|
(7
|
)
|
|
(27
|
)
|
|
(74
|
)
|
Amortization of net actuarial loss, settlements and other to net
income
|
|
|
|
41
|
|
|
39
|
|
|
5
|
|
|
|
79
|
|
|
76
|
|
|
4
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) arising during the period
|
|
|
|
31
|
|
|
(6
|
)
|
|
NM
|
|
|
|
47
|
|
|
37
|
|
|
27
|
|
Other comprehensive income, before tax
|
|
|
|
1,683
|
|
|
1,873
|
|
|
(10
|
)
|
|
|
1,619
|
|
|
4,179
|
|
|
(61
|
)
|
Income tax expense related to other comprehensive income
|
|
|
|
(624
|
)
|
|
(714
|
)
|
|
(13
|
)
|
|
|
(587
|
)
|
|
(1,571
|
)
|
|
(63
|
)
|
Other comprehensive income, net of tax
|
|
|
|
1,059
|
|
|
1,159
|
|
|
(9
|
)
|
|
|
1,032
|
|
|
2,608
|
|
|
(60
|
)
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
|
|
|
(9
|
)
|
|
(15
|
)
|
|
(40
|
)
|
|
|
5
|
|
|
(43
|
)
|
|
NM
|
|
Wells Fargo other comprehensive income, net of tax
|
|
|
|
1,068
|
|
|
1,174
|
|
|
(9
|
)
|
|
|
1,027
|
|
|
2,651
|
|
|
(61
|
)
|
Wells Fargo comprehensive income
|
|
|
|
6,878
|
|
|
6,732
|
|
|
2
|
|
|
|
12,294
|
|
|
13,671
|
|
|
(10
|
)
|
Comprehensive income from noncontrolling interests
|
|
|
|
29
|
|
|
—
|
|
|
—
|
|
|
|
134
|
|
|
24
|
|
|
458
|
|
Total comprehensive income
|
|
|
$
|
6,907
|
|
|
6,732
|
|
|
3
|
|
|
$
|
12,428
|
|
|
13,695
|
|
|
(9
|
)
|
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)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Balance, beginning of period
|
|
$
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
|
198,504
|
|
Wells Fargo net income
|
|
|
5,810
|
|
|
5,457
|
|
|
5,274
|
|
|
5,644
|
|
|
5,558
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
1,068
|
|
|
(41
|
)
|
|
(5,321
|
)
|
|
(764
|
)
|
|
1,174
|
|
Noncontrolling interests
|
|
|
(75
|
)
|
|
75
|
|
|
(13
|
)
|
|
14
|
|
|
(92
|
)
|
Common stock issued
|
|
|
252
|
|
|
1,406
|
|
|
610
|
|
|
300
|
|
|
397
|
|
Common stock repurchased (1)
|
|
|
(2,287
|
)
|
|
(2,175
|
)
|
|
(2,034
|
)
|
|
(1,839
|
)
|
|
(2,214
|
)
|
Preferred stock released by ESOP
|
|
|
406
|
|
|
—
|
|
|
43
|
|
|
236
|
|
|
371
|
|
Common stock warrants repurchased/exercised
|
|
|
(24
|
)
|
|
(44
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
Preferred stock issued
|
|
|
677
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,126
|
|
Common stock dividends
|
|
|
(1,899
|
)
|
|
(1,903
|
)
|
|
(1,909
|
)
|
|
(1,918
|
)
|
|
(1,930
|
)
|
Preferred stock dividends
|
|
|
(406
|
)
|
|
(401
|
)
|
|
(401
|
)
|
|
(401
|
)
|
|
(386
|
)
|
Tax benefit from stock incentive compensation (2)
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
31
|
|
|
23
|
|
Stock incentive compensation expense
|
|
|
145
|
|
|
389
|
|
|
232
|
|
|
39
|
|
|
139
|
|
Net change in deferred compensation and related plans
|
|
|
(11
|
)
|
|
(771
|
)
|
|
(16
|
)
|
|
(28
|
)
|
|
(9
|
)
|
Balance, end of period
|
|
$
|
206,145
|
|
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
(1) For the quarter ended December 31, 2016, includes $750 million
related to a private forward repurchase transaction that settled
in first quarter 2017 for 14.7 million shares of common stock.
|
|
(2) Effective January 1, 2017, we adopted Accounting Standards
Update 2016-09 (Improvements to Employee Share-Based Payment
Accounting). Accordingly, tax benefit from stock incentive
compensation is reported in income tax expense in the consolidated
statement of income.
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
Quarter ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
(in millions)
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
281,619
|
|
|
0.99
|
%
|
|
$
|
698
|
|
|
293,783
|
|
|
0.49
|
%
|
|
$
|
359
|
|
Trading assets
|
|
|
98,086
|
|
|
2.95
|
|
|
|
722
|
|
|
81,380
|
|
|
2.86
|
|
|
|
582
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
18,099
|
|
|
1.53
|
|
|
|
69
|
|
|
31,525
|
|
|
1.56
|
|
|
|
123
|
|
Securities of U.S. states and political subdivisions
|
|
|
53,492
|
|
|
4.03
|
|
|
|
540
|
|
|
52,201
|
|
|
4.24
|
|
|
|
553
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
132,032
|
|
|
2.63
|
|
|
|
868
|
|
|
92,010
|
|
|
2.53
|
|
|
|
583
|
|
Residential and commercial
|
|
|
12,586
|
|
|
5.55
|
|
|
|
175
|
|
|
19,571
|
|
|
5.44
|
|
|
|
266
|
|
Total mortgage-backed securities
|
|
|
144,618
|
|
|
2.89
|
|
|
|
1,043
|
|
|
111,581
|
|
|
3.04
|
|
|
|
849
|
|
Other debt and equity securities
|
|
|
48,962
|
|
|
3.87
|
|
|
|
472
|
|
|
53,301
|
|
|
3.48
|
|
|
|
461
|
|
Total available-for-sale securities
|
|
|
265,171
|
|
|
3.21
|
|
|
|
2,124
|
|
|
248,608
|
|
|
3.20
|
|
|
|
1,986
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,701
|
|
|
2.19
|
|
|
|
244
|
|
|
44,671
|
|
|
2.19
|
|
|
|
243
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,270
|
|
|
5.29
|
|
|
|
83
|
|
|
2,155
|
|
|
5.41
|
|
|
|
29
|
|
Federal agency and other mortgage-backed securities
|
|
|
83,116
|
|
|
2.44
|
|
|
|
507
|
|
|
35,057
|
|
|
1.90
|
|
|
|
166
|
|
Other debt securities
|
|
|
2,798
|
|
|
2.34
|
|
|
|
16
|
|
|
4,077
|
|
|
1.92
|
|
|
|
20
|
|
Total held-to-maturity securities
|
|
|
136,885
|
|
|
2.49
|
|
|
|
850
|
|
|
85,960
|
|
|
2.14
|
|
|
|
458
|
|
Total investment securities
|
|
|
402,056
|
|
|
2.96
|
|
|
|
2,974
|
|
|
334,568
|
|
|
2.93
|
|
|
|
2,444
|
|
Mortgages held for sale (4)
|
|
|
19,758
|
|
|
3.94
|
|
|
|
195
|
|
|
20,140
|
|
|
3.60
|
|
|
|
181
|
|
Loans held for sale (4)
|
|
|
210
|
|
|
6.95
|
|
|
|
4
|
|
|
239
|
|
|
4.83
|
|
|
|
3
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
273,073
|
|
|
3.70
|
|
|
|
2,521
|
|
|
270,862
|
|
|
3.45
|
|
|
|
2,328
|
|
Commercial and industrial - Non U.S.
|
|
|
56,426
|
|
|
2.86
|
|
|
|
402
|
|
|
51,201
|
|
|
2.35
|
|
|
|
300
|
|
Real estate mortgage
|
|
|
131,293
|
|
|
3.68
|
|
|
|
1,206
|
|
|
126,126
|
|
|
3.41
|
|
|
|
1,069
|
|
Real estate construction
|
|
|
25,271
|
|
|
4.10
|
|
|
|
259
|
|
|
23,115
|
|
|
3.49
|
|
|
|
200
|
|
Lease financing
|
|
|
19,058
|
|
|
4.82
|
|
|
|
230
|
|
|
18,930
|
|
|
5.12
|
|
|
|
242
|
|
Total commercial
|
|
|
505,121
|
|
|
3.67
|
|
|
|
4,618
|
|
|
490,234
|
|
|
3.39
|
|
|
|
4,139
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275,108
|
|
|
4.08
|
|
|
|
2,805
|
|
|
275,854
|
|
|
4.01
|
|
|
|
2,765
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
43,602
|
|
|
4.78
|
|
|
|
521
|
|
|
50,609
|
|
|
4.37
|
|
|
|
551
|
|
Credit card
|
|
|
34,868
|
|
|
12.18
|
|
|
|
1,059
|
|
|
33,368
|
|
|
11.52
|
|
|
|
956
|
|
Automobile
|
|
|
59,112
|
|
|
5.43
|
|
|
|
800
|
|
|
61,149
|
|
|
5.66
|
|
|
|
860
|
|
Other revolving credit and installment
|
|
|
39,068
|
|
|
6.13
|
|
|
|
596
|
|
|
39,537
|
|
|
5.91
|
|
|
|
581
|
|
Total consumer
|
|
|
451,758
|
|
|
5.13
|
|
|
|
5,781
|
|
|
460,517
|
|
|
4.98
|
|
|
|
5,713
|
|
Total loans (4)
|
|
|
956,879
|
|
|
4.36
|
|
|
|
10,399
|
|
|
950,751
|
|
|
4.16
|
|
|
|
9,852
|
|
Other
|
|
|
10,713
|
|
|
2.00
|
|
|
|
54
|
|
|
6,014
|
|
|
2.30
|
|
|
|
35
|
|
Total earning assets
|
|
$
|
1,769,321
|
|
|
3.41
|
%
|
|
$
|
15,046
|
|
|
1,686,875
|
|
|
3.20
|
%
|
|
$
|
13,456
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
48,465
|
|
|
0.41
|
%
|
|
$
|
50
|
|
|
39,772
|
|
|
0.13
|
%
|
|
$
|
13
|
|
Market rate and other savings
|
|
|
683,014
|
|
|
0.13
|
|
|
|
214
|
|
|
658,944
|
|
|
0.07
|
|
|
|
110
|
|
Savings certificates
|
|
|
22,599
|
|
|
0.30
|
|
|
|
17
|
|
|
26,246
|
|
|
0.35
|
|
|
|
23
|
|
Other time deposits
|
|
|
57,158
|
|
|
1.43
|
|
|
|
203
|
|
|
61,170
|
|
|
0.85
|
|
|
|
129
|
|
Deposits in foreign offices
|
|
|
123,684
|
|
|
0.65
|
|
|
|
199
|
|
|
97,525
|
|
|
0.23
|
|
|
|
57
|
|
Total interest-bearing deposits
|
|
|
934,920
|
|
|
0.29
|
|
|
|
683
|
|
|
883,657
|
|
|
0.15
|
|
|
|
332
|
|
Short-term borrowings
|
|
|
95,763
|
|
|
0.69
|
|
|
|
164
|
|
|
111,848
|
|
|
0.28
|
|
|
|
78
|
|
Long-term debt
|
|
|
249,518
|
|
|
2.05
|
|
|
|
1,278
|
|
|
236,156
|
|
|
1.56
|
|
|
|
921
|
|
Other liabilities
|
|
|
20,981
|
|
|
2.05
|
|
|
|
108
|
|
|
16,336
|
|
|
2.06
|
|
|
|
83
|
|
Total interest-bearing liabilities
|
|
|
1,301,182
|
|
|
0.69
|
|
|
|
2,233
|
|
|
1,247,997
|
|
|
0.45
|
|
|
|
1,414
|
|
Portion of noninterest-bearing funding sources
|
|
|
468,139
|
|
|
—
|
|
|
|
—
|
|
|
438,878
|
|
|
|
|
|
|
|
Total funding sources
|
|
$
|
1,769,321
|
|
|
0.51
|
|
|
|
2,233
|
|
|
1,686,875
|
|
|
0.34
|
|
|
|
1,414
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
2.90
|
%
|
|
$
|
12,813
|
|
|
|
|
|
2.86
|
%
|
|
$
|
12,042
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18,171
|
|
|
|
|
|
|
|
|
18,818
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,664
|
|
|
|
|
|
|
|
|
27,037
|
|
|
|
|
|
|
|
Other
|
|
|
112,923
|
|
|
|
|
|
|
|
|
129,354
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
157,758
|
|
|
|
|
|
|
|
|
175,209
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
366,275
|
|
|
|
|
|
|
|
|
353,001
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
53,654
|
|
|
|
|
|
|
|
|
60,083
|
|
|
|
|
|
|
|
Total equity
|
|
|
205,968
|
|
|
|
|
|
|
|
|
201,003
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(468,139
|
)
|
|
|
|
|
|
|
|
(438,878
|
)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
157,758
|
|
|
|
|
|
|
|
|
175,209
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,927,079
|
|
|
|
|
|
|
|
|
1,862,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.05% and 3.50% for the quarters
ended June 30, 2017 and 2016, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 1.21% and
0.64% 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 $330 million and
$309 million for the quarters ended June 30, 2017 and 2016,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
|
|
|
|
Six months ended June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
|
|
|
|
|
Interest
|
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
|
Average
|
|
|
Yields/
|
|
|
income/
|
|
(in millions)
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
|
balance
|
|
|
rates
|
|
|
expense
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
282,687
|
|
|
0.88
|
%
|
|
$
|
1,230
|
|
|
289,240
|
|
|
0.49
|
%
|
|
$
|
703
|
|
Trading assets
|
|
|
95,937
|
|
|
2.87
|
|
|
|
1,377
|
|
|
80,922
|
|
|
2.94
|
|
|
|
1,187
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
21,547
|
|
|
1.53
|
|
|
|
164
|
|
|
33,000
|
|
|
1.58
|
|
|
|
259
|
|
Securities of U.S. states and political subdivisions
|
|
|
52,873
|
|
|
4.03
|
|
|
|
1,066
|
|
|
51,357
|
|
|
4.24
|
|
|
|
1,088
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
144,257
|
|
|
2.61
|
|
|
|
1,879
|
|
|
94,216
|
|
|
2.67
|
|
|
|
1,258
|
|
Residential and commercial
|
|
|
13,514
|
|
|
5.43
|
|
|
|
367
|
|
|
20,199
|
|
|
5.32
|
|
|
|
537
|
|
Total mortgage-backed securities
|
|
|
157,771
|
|
|
2.85
|
|
|
|
2,246
|
|
|
114,415
|
|
|
3.14
|
|
|
|
1,795
|
|
Other debt and equity securities
|
|
|
49,787
|
|
|
3.73
|
|
|
|
924
|
|
|
53,430
|
|
|
3.34
|
|
|
|
890
|
|
Total available-for-sale securities
|
|
|
281,978
|
|
|
3.13
|
|
|
|
4,400
|
|
|
252,202
|
|
|
3.20
|
|
|
|
4,032
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,697
|
|
|
2.20
|
|
|
|
487
|
|
|
44,667
|
|
|
2.19
|
|
|
|
487
|
|
Securities of U.S. states and political subdivisions
|
|
|
6,271
|
|
|
5.30
|
|
|
|
166
|
|
|
2,155
|
|
|
5.41
|
|
|
|
58
|
|
Federal agency and other mortgage-backed securities
|
|
|
67,538
|
|
|
2.46
|
|
|
|
831
|
|
|
31,586
|
|
|
2.16
|
|
|
|
341
|
|
Other debt securities
|
|
|
3,062
|
|
|
2.34
|
|
|
|
35
|
|
|
4,338
|
|
|
1.92
|
|
|
|
42
|
|
Total held-to-maturity securities
|
|
|
121,568
|
|
|
2.51
|
|
|
|
1,519
|
|
|
82,746
|
|
|
2.25
|
|
|
|
928
|
|
Total investment securities
|
|
|
403,546
|
|
|
2.94
|
|
|
|
5,919
|
|
|
334,948
|
|
|
2.97
|
|
|
|
4,960
|
|
Mortgages held for sale (4)
|
|
|
19,825
|
|
|
3.82
|
|
|
|
379
|
|
|
19,005
|
|
|
3.60
|
|
|
|
342
|
|
Loans held for sale (4)
|
|
|
161
|
|
|
6.08
|
|
|
|
5
|
|
|
260
|
|
|
3.97
|
|
|
|
5
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
273,905
|
|
|
3.65
|
|
|
|
4,957
|
|
|
264,295
|
|
|
3.42
|
|
|
|
4,505
|
|
Commercial and industrial - Non U.S.
|
|
|
55,890
|
|
|
2.80
|
|
|
|
775
|
|
|
50,354
|
|
|
2.23
|
|
|
|
558
|
|
Real estate mortgage
|
|
|
131,868
|
|
|
3.62
|
|
|
|
2,370
|
|
|
124,432
|
|
|
3.41
|
|
|
|
2,109
|
|
Real estate construction
|
|
|
24,933
|
|
|
3.91
|
|
|
|
484
|
|
|
22,859
|
|
|
3.55
|
|
|
|
403
|
|
Lease financing
|
|
|
19,064
|
|
|
4.88
|
|
|
|
465
|
|
|
16,989
|
|
|
4.95
|
|
|
|
420
|
|
Total commercial
|
|
|
505,660
|
|
|
3.61
|
|
|
|
9,051
|
|
|
478,929
|
|
|
3.35
|
|
|
|
7,995
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275,293
|
|
|
4.05
|
|
|
|
5,571
|
|
|
275,288
|
|
|
4.03
|
|
|
|
5,547
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
44,439
|
|
|
4.69
|
|
|
|
1,036
|
|
|
51,423
|
|
|
4.38
|
|
|
|
1,122
|
|
Credit card
|
|
|
35,151
|
|
|
12.07
|
|
|
|
2,105
|
|
|
33,367
|
|
|
11.56
|
|
|
|
1,919
|
|
Automobile
|
|
|
60,304
|
|
|
5.45
|
|
|
|
1,628
|
|
|
60,631
|
|
|
5.66
|
|
|
|
1,708
|
|
Other revolving credit and installment
|
|
|
39,396
|
|
|
6.07
|
|
|
|
1,186
|
|
|
39,348
|
|
|
5.95
|
|
|
|
1,165
|
|
Total consumer
|
|
|
454,583
|
|
|
5.09
|
|
|
|
11,526
|
|
|
460,057
|
|
|
5.00
|
|
|
|
11,461
|
|
Total loans (4)
|
|
|
960,243
|
|
|
4.31
|
|
|
|
20,577
|
|
|
938,986
|
|
|
4.16
|
|
|
|
19,456
|
|
Other
|
|
|
8,801
|
|
|
2.37
|
|
|
|
104
|
|
|
5,910
|
|
|
2.18
|
|
|
|
65
|
|
Total earning assets
|
|
$
|
1,771,200
|
|
|
3.36
|
%
|
|
$
|
29,591
|
|
|
1,669,271
|
|
|
3.21
|
%
|
|
$
|
26,718
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
49,569
|
|
|
0.35
|
%
|
|
$
|
87
|
|
|
39,242
|
|
|
0.12
|
%
|
|
$
|
24
|
|
Market rate and other savings
|
|
|
683,591
|
|
|
0.11
|
|
|
|
371
|
|
|
655,247
|
|
|
0.07
|
|
|
|
217
|
|
Savings certificates
|
|
|
23,030
|
|
|
0.29
|
|
|
|
34
|
|
|
27,063
|
|
|
0.40
|
|
|
|
54
|
|
Other time deposits
|
|
|
56,043
|
|
|
1.37
|
|
|
|
381
|
|
|
59,688
|
|
|
0.80
|
|
|
|
236
|
|
Deposits in foreign offices
|
|
|
122,946
|
|
|
0.57
|
|
|
|
347
|
|
|
97,604
|
|
|
0.22
|
|
|
|
108
|
|
Total interest-bearing deposits
|
|
|
935,179
|
|
|
0.26
|
|
|
|
1,220
|
|
|
878,844
|
|
|
0.15
|
|
|
|
639
|
|
Short-term borrowings
|
|
|
97,149
|
|
|
0.58
|
|
|
|
279
|
|
|
109,853
|
|
|
0.27
|
|
|
|
145
|
|
Long-term debt
|
|
|
254,627
|
|
|
1.94
|
|
|
|
2,461
|
|
|
226,519
|
|
|
1.56
|
|
|
|
1,763
|
|
Other liabilities
|
|
|
18,905
|
|
|
2.12
|
|
|
|
200
|
|
|
16,414
|
|
|
2.10
|
|
|
|
172
|
|
Total interest-bearing liabilities
|
|
|
1,305,860
|
|
|
0.64
|
|
|
|
4,160
|
|
|
1,231,630
|
|
|
0.44
|
|
|
|
2,719
|
|
Portion of noninterest-bearing funding sources
|
|
|
465,340
|
|
|
—
|
|
|
|
—
|
|
|
437,641
|
|
|
—
|
|
|
|
—
|
|
Total funding sources
|
|
$
|
1,771,200
|
|
|
0.47
|
|
|
|
4,160
|
|
|
1,669,271
|
|
|
0.33
|
|
|
|
2,719
|
|
Net interest margin and net interest income on a
taxable-equivalent basis (5)
|
|
|
|
|
2.89
|
%
|
|
$
|
25,431
|
|
|
|
|
|
2.88
|
%
|
|
$
|
23,999
|
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18,437
|
|
|
|
|
|
|
|
|
18,407
|
|
|
|
|
|
|
|
Goodwill
|
|
|
26,668
|
|
|
|
|
|
|
|
|
26,553
|
|
|
|
|
|
|
|
Other
|
|
|
112,744
|
|
|
|
|
|
|
|
|
126,749
|
|
|
|
|
|
|
|
Total noninterest-earning assets
|
|
$
|
157,849
|
|
|
|
|
|
|
|
|
171,709
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
365,019
|
|
|
|
|
|
|
|
|
349,200
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
54,291
|
|
|
|
|
|
|
|
|
61,355
|
|
|
|
|
|
|
|
Total equity
|
|
|
203,879
|
|
|
|
|
|
|
|
|
198,795
|
|
|
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(465,340
|
)
|
|
|
|
|
|
|
|
(437,641
|
)
|
|
|
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
157,849
|
|
|
|
|
|
|
|
|
171,709
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,929,049
|
|
|
|
|
|
|
|
|
1,840,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 3.92% and 3.50% for the first half
of 2017 and 2016, respectively. The average three-month London
Interbank Offered Rate (LIBOR) was 1.14% and 0.63% 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 $648 million and
$599 million for the first half of 2017 and 2016, respectively,
predominantly related to tax-exempt income on certain loans and
securities. The federal statutory tax rate was 35% for the periods
presented.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
|
|
|
|
Quarter ended
|
|
|
|
Jun 30, 2017
|
|
|
Mar 31, 2017
|
|
|
Dec 31, 2016
|
|
|
Sep 30, 2016
|
|
|
Jun 30, 2016
|
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
|
Average
|
|
|
Yields/
|
|
($ in billions)
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
|
balance
|
|
|
rates
|
|
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
$
|
281.6
|
|
|
0.99
|
%
|
|
$
|
283.8
|
|
|
0.76
|
%
|
|
$
|
273.1
|
|
|
0.56
|
%
|
|
$
|
299.4
|
|
|
0.50
|
%
|
|
$
|
293.8
|
|
|
0.49
|
%
|
Trading assets
|
|
|
98.1
|
|
|
2.95
|
|
|
|
93.8
|
|
|
2.80
|
|
|
|
102.8
|
|
|
2.96
|
|
|
|
88.8
|
|
|
2.72
|
|
|
|
81.4
|
|
|
2.86
|
|
Investment securities (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
18.1
|
|
|
1.53
|
|
|
|
25.0
|
|
|
1.54
|
|
|
|
25.9
|
|
|
1.53
|
|
|
|
25.8
|
|
|
1.52
|
|
|
|
31.5
|
|
|
1.56
|
|
Securities of U.S. states and political subdivisions
|
|
|
53.5
|
|
|
4.03
|
|
|
|
52.2
|
|
|
4.03
|
|
|
|
53.9
|
|
|
4.06
|
|
|
|
55.2
|
|
|
4.28
|
|
|
|
52.2
|
|
|
4.24
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
132.0
|
|
|
2.63
|
|
|
|
156.6
|
|
|
2.58
|
|
|
|
148.0
|
|
|
2.37
|
|
|
|
105.8
|
|
|
2.39
|
|
|
|
92.0
|
|
|
2.53
|
|
Residential and commercial
|
|
|
12.6
|
|
|
5.55
|
|
|
|
14.5
|
|
|
5.32
|
|
|
|
16.5
|
|
|
5.87
|
|
|
|
18.1
|
|
|
5.54
|
|
|
|
19.6
|
|
|
5.44
|
|
Total mortgage-backed securities
|
|
|
144.6
|
|
|
2.89
|
|
|
|
171.1
|
|
|
2.81
|
|
|
|
164.5
|
|
|
2.72
|
|
|
|
123.9
|
|
|
2.85
|
|
|
|
111.6
|
|
|
3.04
|
|
Other debt and equity securities
|
|
|
49.0
|
|
|
3.87
|
|
|
|
50.7
|
|
|
3.60
|
|
|
|
52.7
|
|
|
3.71
|
|
|
|
54.2
|
|
|
3.37
|
|
|
|
53.3
|
|
|
3.48
|
|
Total available-for-sale securities
|
|
|
265.2
|
|
|
3.21
|
|
|
|
299.0
|
|
|
3.05
|
|
|
|
297.0
|
|
|
3.03
|
|
|
|
259.1
|
|
|
3.13
|
|
|
|
248.6
|
|
|
3.20
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44.7
|
|
|
2.19
|
|
|
|
44.7
|
|
|
2.20
|
|
|
|
44.7
|
|
|
2.20
|
|
|
|
44.6
|
|
|
2.19
|
|
|
|
44.6
|
|
|
2.19
|
|
Securities of U.S. states and political subdivisions
|
|
|
6.3
|
|
|
5.29
|
|
|
|
6.3
|
|
|
5.30
|
|
|
|
4.7
|
|
|
5.31
|
|
|
|
2.5
|
|
|
5.24
|
|
|
|
2.2
|
|
|
5.41
|
|
Federal agency and other mortgage-backed securities
|
|
|
83.1
|
|
|
2.44
|
|
|
|
51.8
|
|
|
2.51
|
|
|
|
46.0
|
|
|
1.81
|
|
|
|
48.0
|
|
|
1.97
|
|
|
|
35.1
|
|
|
1.90
|
|
Other debt securities
|
|
|
2.8
|
|
|
2.34
|
|
|
|
3.3
|
|
|
2.34
|
|
|
|
3.6
|
|
|
2.26
|
|
|
|
3.9
|
|
|
1.98
|
|
|
|
4.1
|
|
|
1.92
|
|
Total held-to-maturity securities
|
|
|
136.9
|
|
|
2.49
|
|
|
|
106.1
|
|
|
2.54
|
|
|
|
99.0
|
|
|
2.17
|
|
|
|
99.0
|
|
|
2.15
|
|
|
|
86.0
|
|
|
2.14
|
|
Total investment securities
|
|
|
402.1
|
|
|
2.96
|
|
|
|
405.1
|
|
|
2.92
|
|
|
|
396.0
|
|
|
2.82
|
|
|
|
358.1
|
|
|
2.86
|
|
|
|
334.6
|
|
|
2.93
|
|
Mortgages held for sale
|
|
|
19.8
|
|
|
3.94
|
|
|
|
19.9
|
|
|
3.70
|
|
|
|
27.5
|
|
|
3.43
|
|
|
|
24.1
|
|
|
3.44
|
|
|
|
20.1
|
|
|
3.60
|
|
Loans held for sale
|
|
|
0.2
|
|
|
6.95
|
|
|
|
0.1
|
|
|
4.44
|
|
|
|
0.2
|
|
|
5.42
|
|
|
|
0.2
|
|
|
3.04
|
|
|
|
0.2
|
|
|
4.83
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial - U.S.
|
|
|
273.1
|
|
|
3.70
|
|
|
|
274.8
|
|
|
3.59
|
|
|
|
272.8
|
|
|
3.46
|
|
|
|
271.2
|
|
|
3.48
|
|
|
|
270.9
|
|
|
3.45
|
|
Commercial and industrial - Non U.S.
|
|
|
56.4
|
|
|
2.86
|
|
|
|
55.3
|
|
|
2.73
|
|
|
|
54.4
|
|
|
2.58
|
|
|
|
51.3
|
|
|
2.40
|
|
|
|
51.2
|
|
|
2.35
|
|
Real estate mortgage
|
|
|
131.3
|
|
|
3.68
|
|
|
|
132.4
|
|
|
3.56
|
|
|
|
131.2
|
|
|
3.44
|
|
|
|
128.8
|
|
|
3.48
|
|
|
|
126.1
|
|
|
3.41
|
|
Real estate construction
|
|
|
25.3
|
|
|
4.10
|
|
|
|
24.6
|
|
|
3.72
|
|
|
|
23.9
|
|
|
3.61
|
|
|
|
23.2
|
|
|
3.50
|
|
|
|
23.1
|
|
|
3.49
|
|
Lease financing
|
|
|
19.0
|
|
|
4.82
|
|
|
|
19.1
|
|
|
4.94
|
|
|
|
18.9
|
|
|
5.78
|
|
|
|
18.9
|
|
|
4.70
|
|
|
|
19.0
|
|
|
5.12
|
|
Total commercial
|
|
|
505.1
|
|
|
3.67
|
|
|
|
506.2
|
|
|
3.54
|
|
|
|
501.2
|
|
|
3.45
|
|
|
|
493.4
|
|
|
3.42
|
|
|
|
490.3
|
|
|
3.39
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
275.1
|
|
|
4.08
|
|
|
|
275.5
|
|
|
4.02
|
|
|
|
277.7
|
|
|
4.01
|
|
|
|
278.5
|
|
|
3.97
|
|
|
|
275.9
|
|
|
4.01
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
43.6
|
|
|
4.78
|
|
|
|
45.3
|
|
|
4.60
|
|
|
|
47.2
|
|
|
4.42
|
|
|
|
48.9
|
|
|
4.37
|
|
|
|
50.6
|
|
|
4.37
|
|
Credit card
|
|
|
34.9
|
|
|
12.18
|
|
|
|
35.4
|
|
|
11.97
|
|
|
|
35.4
|
|
|
11.73
|
|
|
|
34.6
|
|
|
11.60
|
|
|
|
33.4
|
|
|
11.52
|
|
Automobile
|
|
|
59.1
|
|
|
5.43
|
|
|
|
61.5
|
|
|
5.46
|
|
|
|
62.5
|
|
|
5.54
|
|
|
|
62.5
|
|
|
5.60
|
|
|
|
61.1
|
|
|
5.66
|
|
Other revolving credit and installment
|
|
|
39.1
|
|
|
6.13
|
|
|
|
39.7
|
|
|
6.02
|
|
|
|
40.1
|
|
|
5.91
|
|
|
|
39.6
|
|
|
5.92
|
|
|
|
39.5
|
|
|
5.91
|
|
Total consumer
|
|
|
451.8
|
|
|
5.13
|
|
|
|
457.4
|
|
|
5.06
|
|
|
|
462.9
|
|
|
5.01
|
|
|
|
464.1
|
|
|
4.97
|
|
|
|
460.5
|
|
|
4.98
|
|
Total loans
|
|
|
956.9
|
|
|
4.36
|
|
|
|
963.6
|
|
|
4.26
|
|
|
|
964.1
|
|
|
4.20
|
|
|
|
957.5
|
|
|
4.17
|
|
|
|
950.8
|
|
|
4.16
|
|
Other
|
|
|
10.6
|
|
|
2.00
|
|
|
|
6.8
|
|
|
2.96
|
|
|
|
6.7
|
|
|
3.27
|
|
|
|
6.4
|
|
|
2.30
|
|
|
|
6.0
|
|
|
2.30
|
|
Total earning assets
|
|
$
|
1,769.3
|
|
|
3.41
|
%
|
|
$
|
1,773.1
|
|
|
3.31
|
%
|
|
$
|
1,770.4
|
|
|
3.24
|
%
|
|
$
|
1,734.5
|
|
|
3.17
|
%
|
|
$
|
1,686.9
|
|
|
3.20
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking
|
|
$
|
48.5
|
|
|
0.41
|
%
|
|
$
|
50.7
|
|
|
0.29
|
%
|
|
$
|
46.9
|
|
|
0.17
|
%
|
|
$
|
44.0
|
|
|
0.15
|
%
|
|
$
|
39.8
|
|
|
0.13
|
%
|
Market rate and other savings
|
|
|
683.0
|
|
|
0.13
|
|
|
|
684.2
|
|
|
0.09
|
|
|
|
676.4
|
|
|
0.07
|
|
|
|
667.2
|
|
|
0.07
|
|
|
|
659.0
|
|
|
0.07
|
|
Savings certificates
|
|
|
22.6
|
|
|
0.30
|
|
|
|
23.5
|
|
|
0.29
|
|
|
|
24.4
|
|
|
0.30
|
|
|
|
25.2
|
|
|
0.30
|
|
|
|
26.2
|
|
|
0.35
|
|
Other time deposits
|
|
|
57.1
|
|
|
1.43
|
|
|
|
54.9
|
|
|
1.31
|
|
|
|
49.2
|
|
|
1.16
|
|
|
|
54.9
|
|
|
0.93
|
|
|
|
61.2
|
|
|
0.85
|
|
Deposits in foreign offices
|
|
|
123.7
|
|
|
0.65
|
|
|
|
122.2
|
|
|
0.49
|
|
|
|
110.4
|
|
|
0.35
|
|
|
|
107.1
|
|
|
0.30
|
|
|
|
97.5
|
|
|
0.23
|
|
Total interest-bearing deposits
|
|
|
934.9
|
|
|
0.29
|
|
|
|
935.5
|
|
|
0.23
|
|
|
|
907.3
|
|
|
0.18
|
|
|
|
898.4
|
|
|
0.16
|
|
|
|
883.7
|
|
|
0.15
|
|
Short-term borrowings
|
|
|
95.8
|
|
|
0.69
|
|
|
|
98.5
|
|
|
0.47
|
|
|
|
124.7
|
|
|
0.33
|
|
|
|
116.2
|
|
|
0.29
|
|
|
|
111.8
|
|
|
0.28
|
|
Long-term debt
|
|
|
249.5
|
|
|
2.05
|
|
|
|
259.8
|
|
|
1.83
|
|
|
|
252.2
|
|
|
1.68
|
|
|
|
252.4
|
|
|
1.59
|
|
|
|
236.2
|
|
|
1.56
|
|
Other liabilities
|
|
|
21.0
|
|
|
2.05
|
|
|
|
16.8
|
|
|
2.22
|
|
|
|
17.1
|
|
|
2.15
|
|
|
|
16.8
|
|
|
2.11
|
|
|
|
16.3
|
|
|
2.06
|
|
Total interest-bearing liabilities
|
|
|
1,301.2
|
|
|
0.69
|
|
|
|
1,310.6
|
|
|
0.59
|
|
|
|
1,301.3
|
|
|
0.51
|
|
|
|
1,283.8
|
|
|
0.48
|
|
|
|
1,248.0
|
|
|
0.45
|
|
Portion of noninterest-bearing funding sources
|
|
|
468.1
|
|
|
—
|
|
|
|
462.5
|
|
|
—
|
|
|
|
469.1
|
|
|
—
|
|
|
|
450.7
|
|
|
—
|
|
|
|
438.9
|
|
|
—
|
|
Total funding sources
|
|
$
|
1,769.3
|
|
|
0.51
|
|
|
$
|
1,773.1
|
|
|
0.44
|
|
|
$
|
1,770.4
|
|
|
0.37
|
|
|
$
|
1,734.5
|
|
|
0.35
|
|
|
$
|
1,686.9
|
|
|
0.34
|
|
Net interest margin on a taxable-equivalent basis
|
|
|
|
|
2.90
|
%
|
|
|
|
|
2.87
|
%
|
|
|
|
|
2.87
|
%
|
|
|
|
|
2.82
|
%
|
|
|
|
|
2.86
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
18.2
|
|
|
|
|
|
|
18.7
|
|
|
|
|
|
|
19.0
|
|
|
|
|
|
|
18.7
|
|
|
|
|
|
|
18.8
|
|
|
|
|
Goodwill
|
|
|
26.7
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
26.7
|
|
|
|
|
|
|
27.0
|
|
|
|
|
|
|
27.0
|
|
|
|
|
Other
|
|
|
112.9
|
|
|
|
|
|
|
112.5
|
|
|
|
|
|
|
128.2
|
|
|
|
|
|
|
134.4
|
|
|
|
|
|
|
129.4
|
|
|
|
|
Total noninterest-earnings assets
|
|
$
|
157.8
|
|
|
|
|
|
|
157.9
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
180.1
|
|
|
|
|
|
|
175.2
|
|
|
|
|
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
366.3
|
|
|
|
|
|
|
363.7
|
|
|
|
|
|
|
376.9
|
|
|
|
|
|
|
363.1
|
|
|
|
|
|
|
353.0
|
|
|
|
|
Other liabilities
|
|
|
53.6
|
|
|
|
|
|
|
54.9
|
|
|
|
|
|
|
64.9
|
|
|
|
|
|
|
63.8
|
|
|
|
|
|
|
60.1
|
|
|
|
|
Total equity
|
|
|
206.0
|
|
|
|
|
|
|
201.8
|
|
|
|
|
|
|
201.2
|
|
|
|
|
|
|
203.9
|
|
|
|
|
|
|
201.0
|
|
|
|
|
Noninterest-bearing funding sources used to fund earning assets
|
|
|
(468.1
|
)
|
|
|
|
|
|
(462.5
|
)
|
|
|
|
|
|
(469.1
|
)
|
|
|
|
|
|
(450.7
|
)
|
|
|
|
|
|
(438.9
|
)
|
|
|
|
Net noninterest-bearing funding sources
|
|
$
|
157.8
|
|
|
|
|
|
|
157.9
|
|
|
|
|
|
|
173.9
|
|
|
|
|
|
|
180.1
|
|
|
|
|
|
|
175.2
|
|
|
|
|
Total assets
|
|
$
|
1,927.1
|
|
|
|
|
|
|
1,931.0
|
|
|
|
|
|
|
1,944.3
|
|
|
|
|
|
|
1,914.6
|
|
|
|
|
|
|
1,862.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our average prime rate was 4.05% for the quarter ended June
30, 2017, 3.80% for the quarter ended March 31, 2017, 3.54% for
the quarter ended December 31, 2016 and 3.50% for the quarters
ended September 30 and June 30, 2016. The average three-month
London Interbank Offered Rate (LIBOR) was 1.21%, 1.07%, 0.92%,
0.79% and 0.64% for the same quarters, respectively.
|
|
(2) Yields/rates include the effects of hedge and risk management
activities associated with the respective asset and liability
categories.
|
|
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
|
NONINTEREST INCOME
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Service charges on deposit accounts
|
|
|
$
|
1,276
|
|
|
1,336
|
|
|
(4
|
)%
|
|
$
|
2,589
|
|
|
2,645
|
|
|
(2
|
)%
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,329
|
|
|
2,291
|
|
|
2
|
|
|
|
4,653
|
|
|
4,530
|
|
|
3
|
|
Trust and investment management
|
|
|
|
837
|
|
|
835
|
|
|
—
|
|
|
|
1,666
|
|
|
1,650
|
|
|
1
|
|
Investment banking
|
|
|
|
463
|
|
|
421
|
|
|
10
|
|
|
|
880
|
|
|
752
|
|
|
17
|
|
Total trust and investment fees
|
|
|
|
3,629
|
|
|
3,547
|
|
|
2
|
|
|
|
7,199
|
|
|
6,932
|
|
|
4
|
|
Card fees
|
|
|
|
1,019
|
|
|
997
|
|
|
2
|
|
|
|
1,964
|
|
|
1,938
|
|
|
1
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
325
|
|
|
317
|
|
|
3
|
|
|
|
632
|
|
|
630
|
|
|
—
|
|
Cash network fees
|
|
|
|
134
|
|
|
138
|
|
|
(3
|
)
|
|
|
260
|
|
|
269
|
|
|
(3
|
)
|
Commercial real estate brokerage commissions
|
|
|
|
102
|
|
|
86
|
|
|
19
|
|
|
|
183
|
|
|
203
|
|
|
(10
|
)
|
Letters of credit fees
|
|
|
|
76
|
|
|
83
|
|
|
(8
|
)
|
|
|
150
|
|
|
161
|
|
|
(7
|
)
|
Wire transfer and other remittance fees
|
|
|
|
112
|
|
|
101
|
|
|
11
|
|
|
|
219
|
|
|
193
|
|
|
13
|
|
All other fees
|
|
|
|
153
|
|
|
181
|
|
|
(15
|
)
|
|
|
323
|
|
|
383
|
|
|
(16
|
)
|
Total other fees
|
|
|
|
902
|
|
|
906
|
|
|
—
|
|
|
|
1,767
|
|
|
1,839
|
|
|
(4
|
)
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
400
|
|
|
360
|
|
|
11
|
|
|
|
856
|
|
|
1,210
|
|
|
(29
|
)
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
748
|
|
|
1,054
|
|
|
(29
|
)
|
|
|
1,520
|
|
|
1,802
|
|
|
(16
|
)
|
Total mortgage banking
|
|
|
|
1,148
|
|
|
1,414
|
|
|
(19
|
)
|
|
|
2,376
|
|
|
3,012
|
|
|
(21
|
)
|
Insurance
|
|
|
|
280
|
|
|
286
|
|
|
(2
|
)
|
|
|
557
|
|
|
713
|
|
|
(22
|
)
|
Net gains from trading activities
|
|
|
|
237
|
|
|
328
|
|
|
(28
|
)
|
|
|
676
|
|
|
528
|
|
|
28
|
|
Net gains on debt securities
|
|
|
|
120
|
|
|
447
|
|
|
(73
|
)
|
|
|
156
|
|
|
691
|
|
|
(77
|
)
|
Net gains from equity investments
|
|
|
|
188
|
|
|
189
|
|
|
(1
|
)
|
|
|
591
|
|
|
433
|
|
|
36
|
|
Lease income
|
|
|
|
493
|
|
|
497
|
|
|
(1
|
)
|
|
|
974
|
|
|
870
|
|
|
12
|
|
Life insurance investment income
|
|
|
|
145
|
|
|
149
|
|
|
(3
|
)
|
|
|
289
|
|
|
303
|
|
|
(5
|
)
|
All other
|
|
|
|
249
|
|
|
333
|
|
|
(25
|
)
|
|
|
250
|
|
|
1,053
|
|
|
(76
|
)
|
Total
|
|
|
$
|
9,686
|
|
|
10,429
|
|
|
(7
|
)
|
|
$
|
19,388
|
|
|
20,957
|
|
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE
|
|
|
|
|
Quarter ended June 30,
|
|
|
%
|
|
|
Six months ended June 30,
|
|
|
%
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
|
2017
|
|
|
2016
|
|
|
Change
|
|
Salaries
|
|
|
$
|
4,343
|
|
|
4,099
|
|
|
6
|
%
|
|
$
|
8,604
|
|
|
8,135
|
|
|
6
|
%
|
Commission and incentive compensation
|
|
|
|
2,499
|
|
|
2,604
|
|
|
(4
|
)
|
|
|
5,224
|
|
|
5,249
|
|
|
—
|
|
Employee benefits
|
|
|
|
1,308
|
|
|
1,244
|
|
|
5
|
|
|
|
2,994
|
|
|
2,770
|
|
|
8
|
|
Equipment
|
|
|
|
529
|
|
|
493
|
|
|
7
|
|
|
|
1,106
|
|
|
1,021
|
|
|
8
|
|
Net occupancy
|
|
|
|
706
|
|
|
716
|
|
|
(1
|
)
|
|
|
1,418
|
|
|
1,427
|
|
|
(1
|
)
|
Core deposit and other intangibles
|
|
|
|
287
|
|
|
299
|
|
|
(4
|
)
|
|
|
576
|
|
|
592
|
|
|
(3
|
)
|
FDIC and other deposit assessments
|
|
|
|
328
|
|
|
255
|
|
|
29
|
|
|
|
661
|
|
|
505
|
|
|
31
|
|
Outside professional services
|
|
|
|
1,029
|
|
|
769
|
|
|
34
|
|
|
|
1,833
|
|
|
1,352
|
|
|
36
|
|
Operating losses
|
|
|
|
350
|
|
|
334
|
|
|
5
|
|
|
|
632
|
|
|
788
|
|
|
(20
|
)
|
Operating leases
|
|
|
|
334
|
|
|
352
|
|
|
(5
|
)
|
|
|
679
|
|
|
587
|
|
|
16
|
|
Contract services
|
|
|
|
349
|
|
|
283
|
|
|
23
|
|
|
|
674
|
|
|
565
|
|
|
19
|
|
Outside data processing
|
|
|
|
236
|
|
|
225
|
|
|
5
|
|
|
|
456
|
|
|
433
|
|
|
5
|
|
Travel and entertainment
|
|
|
|
171
|
|
|
193
|
|
|
(11
|
)
|
|
|
350
|
|
|
365
|
|
|
(4
|
)
|
Postage, stationery and supplies
|
|
|
|
134
|
|
|
153
|
|
|
(12
|
)
|
|
|
279
|
|
|
316
|
|
|
(12
|
)
|
Advertising and promotion
|
|
|
|
150
|
|
|
166
|
|
|
(10
|
)
|
|
|
277
|
|
|
300
|
|
|
(8
|
)
|
Telecommunications
|
|
|
|
91
|
|
|
94
|
|
|
(3
|
)
|
|
|
182
|
|
|
186
|
|
|
(2
|
)
|
Foreclosed assets
|
|
|
|
52
|
|
|
66
|
|
|
(21
|
)
|
|
|
138
|
|
|
144
|
|
|
(4
|
)
|
Insurance
|
|
|
|
24
|
|
|
22
|
|
|
9
|
|
|
|
48
|
|
|
133
|
|
|
(64
|
)
|
All other
|
|
|
|
621
|
|
|
499
|
|
|
24
|
|
|
|
1,202
|
|
|
1,026
|
|
|
17
|
|
Total
|
|
|
$
|
13,541
|
|
|
12,866
|
|
|
5
|
|
|
$
|
27,333
|
|
|
25,894
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONINTEREST INCOME
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Service charges on deposit accounts
|
|
|
$
|
1,276
|
|
|
1,313
|
|
|
1,357
|
|
|
1,370
|
|
|
1,336
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brokerage advisory, commissions and other fees
|
|
|
|
2,329
|
|
|
2,324
|
|
|
2,342
|
|
|
2,344
|
|
|
2,291
|
Trust and investment management
|
|
|
|
837
|
|
|
829
|
|
|
837
|
|
|
849
|
|
|
835
|
Investment banking
|
|
|
|
463
|
|
|
417
|
|
|
519
|
|
|
420
|
|
|
421
|
Total trust and investment fees
|
|
|
|
3,629
|
|
|
3,570
|
|
|
3,698
|
|
|
3,613
|
|
|
3,547
|
Card fees
|
|
|
|
1,019
|
|
|
945
|
|
|
1,001
|
|
|
997
|
|
|
997
|
Other fees:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charges and fees on loans
|
|
|
|
325
|
|
|
307
|
|
|
305
|
|
|
306
|
|
|
317
|
Cash network fees
|
|
|
|
134
|
|
|
126
|
|
|
130
|
|
|
138
|
|
|
138
|
Commercial real estate brokerage commissions
|
|
|
|
102
|
|
|
81
|
|
|
172
|
|
|
119
|
|
|
86
|
Letters of credit fees
|
|
|
|
76
|
|
|
74
|
|
|
79
|
|
|
81
|
|
|
83
|
Wire transfer and other remittance fees
|
|
|
|
112
|
|
|
107
|
|
|
105
|
|
|
103
|
|
|
101
|
All other fees
|
|
|
|
153
|
|
|
170
|
|
|
171
|
|
|
179
|
|
|
181
|
Total other fees
|
|
|
|
902
|
|
|
865
|
|
|
962
|
|
|
926
|
|
|
906
|
Mortgage banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing income, net
|
|
|
|
400
|
|
|
456
|
|
|
196
|
|
|
359
|
|
|
360
|
Net gains on mortgage loan origination/sales activities
|
|
|
|
748
|
|
|
772
|
|
|
1,221
|
|
|
1,308
|
|
|
1,054
|
Total mortgage banking
|
|
|
|
1,148
|
|
|
1,228
|
|
|
1,417
|
|
|
1,667
|
|
|
1,414
|
Insurance
|
|
|
|
280
|
|
|
277
|
|
|
262
|
|
|
293
|
|
|
286
|
Net gains (losses) from trading activities
|
|
|
|
237
|
|
|
439
|
|
|
(109
|
)
|
|
415
|
|
|
328
|
Net gains on debt securities
|
|
|
|
120
|
|
|
36
|
|
|
145
|
|
|
106
|
|
|
447
|
Net gains from equity investments
|
|
|
|
188
|
|
|
403
|
|
|
306
|
|
|
140
|
|
|
189
|
Lease income
|
|
|
|
493
|
|
|
481
|
|
|
523
|
|
|
534
|
|
|
497
|
Life insurance investment income
|
|
|
|
145
|
|
|
144
|
|
|
132
|
|
|
152
|
|
|
149
|
All other
|
|
|
|
249
|
|
|
1
|
|
|
(514
|
)
|
|
163
|
|
|
333
|
Total
|
|
|
$
|
9,686
|
|
|
9,702
|
|
|
9,180
|
|
|
10,376
|
|
|
10,429
|
|
|
|
|
|
|
|
|
FIVE QUARTER NONINTEREST EXPENSE
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
(in millions)
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Salaries
|
|
|
$
|
4,343
|
|
|
4,261
|
|
|
4,193
|
|
|
4,224
|
|
|
4,099
|
Commission and incentive compensation
|
|
|
|
2,499
|
|
|
2,725
|
|
|
2,478
|
|
|
2,520
|
|
|
2,604
|
Employee benefits
|
|
|
|
1,308
|
|
|
1,686
|
|
|
1,101
|
|
|
1,223
|
|
|
1,244
|
Equipment
|
|
|
|
529
|
|
|
577
|
|
|
642
|
|
|
491
|
|
|
493
|
Net occupancy
|
|
|
|
706
|
|
|
712
|
|
|
710
|
|
|
718
|
|
|
716
|
Core deposit and other intangibles
|
|
|
|
287
|
|
|
289
|
|
|
301
|
|
|
299
|
|
|
299
|
FDIC and other deposit assessments
|
|
|
|
328
|
|
|
333
|
|
|
353
|
|
|
310
|
|
|
255
|
Outside professional services
|
|
|
|
1,029
|
|
|
804
|
|
|
984
|
|
|
802
|
|
|
769
|
Operating losses
|
|
|
|
350
|
|
|
282
|
|
|
243
|
|
|
577
|
|
|
334
|
Operating leases
|
|
|
|
334
|
|
|
345
|
|
|
379
|
|
|
363
|
|
|
352
|
Contract services
|
|
|
|
349
|
|
|
325
|
|
|
325
|
|
|
313
|
|
|
283
|
Outside data processing
|
|
|
|
236
|
|
|
220
|
|
|
222
|
|
|
233
|
|
|
225
|
Travel and entertainment
|
|
|
|
171
|
|
|
179
|
|
|
195
|
|
|
144
|
|
|
193
|
Postage, stationery and supplies
|
|
|
|
134
|
|
|
145
|
|
|
156
|
|
|
150
|
|
|
153
|
Advertising and promotion
|
|
|
|
150
|
|
|
127
|
|
|
178
|
|
|
117
|
|
|
166
|
Telecommunications
|
|
|
|
91
|
|
|
91
|
|
|
96
|
|
|
101
|
|
|
94
|
Foreclosed assets
|
|
|
|
52
|
|
|
86
|
|
|
75
|
|
|
(17
|
)
|
|
66
|
Insurance
|
|
|
|
24
|
|
|
24
|
|
|
23
|
|
|
23
|
|
|
22
|
All other
|
|
|
|
621
|
|
|
581
|
|
|
561
|
|
|
677
|
|
|
499
|
Total
|
|
|
$
|
13,541
|
|
|
13,792
|
|
|
13,215
|
|
|
13,268
|
|
|
12,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CONSOLIDATED BALANCE SHEET
|
|
|
Jun 30,
|
|
|
Dec 31,
|
|
|
%
|
(in millions, except shares)
|
|
2017
|
|
|
2016
|
|
|
Change
|
Assets
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
20,248
|
|
|
20,729
|
|
|
(2
|
)%
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
264,706
|
|
|
266,038
|
|
|
(1
|
)
|
Trading assets
|
|
|
83,607
|
|
|
74,397
|
|
|
12
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
269,202
|
|
|
308,364
|
|
|
(13
|
)
|
Held-to-maturity, at cost
|
|
|
140,392
|
|
|
99,583
|
|
|
41
|
|
Mortgages held for sale
|
|
|
24,807
|
|
|
26,309
|
|
|
(6
|
)
|
Loans held for sale
|
|
|
156
|
|
|
80
|
|
|
95
|
|
Loans
|
|
|
957,423
|
|
|
967,604
|
|
|
(1
|
)
|
Allowance for loan losses
|
|
|
(11,073
|
)
|
|
(11,419
|
)
|
|
(3
|
)
|
Net loans
|
|
|
946,350
|
|
|
956,185
|
|
|
(1
|
)
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
12,789
|
|
|
12,959
|
|
|
(1
|
)
|
Amortized
|
|
|
1,399
|
|
|
1,406
|
|
|
—
|
|
Premises and equipment, net
|
|
|
8,403
|
|
|
8,333
|
|
|
1
|
|
Goodwill
|
|
|
26,573
|
|
|
26,693
|
|
|
—
|
|
Derivative assets
|
|
|
13,273
|
|
|
14,498
|
|
|
(8
|
)
|
Other assets
|
|
|
118,966
|
|
|
114,541
|
|
|
4
|
|
Total assets
|
|
$
|
1,930,871
|
|
|
1,930,115
|
|
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
372,766
|
|
|
375,967
|
|
|
(1
|
)
|
Interest-bearing deposits
|
|
|
933,064
|
|
|
930,112
|
|
|
—
|
|
Total deposits
|
|
|
1,305,830
|
|
|
1,306,079
|
|
|
—
|
|
Short-term borrowings
|
|
|
95,356
|
|
|
96,781
|
|
|
(1
|
)
|
Derivative liabilities
|
|
|
11,636
|
|
|
14,492
|
|
|
(20
|
)
|
Accrued expenses and other liabilities
|
|
|
73,035
|
|
|
57,189
|
|
|
28
|
|
Long-term debt
|
|
|
238,869
|
|
|
255,077
|
|
|
(6
|
)
|
Total liabilities
|
|
|
1,724,726
|
|
|
1,729,618
|
|
|
—
|
|
Equity
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
25,785
|
|
|
24,551
|
|
|
5
|
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares;
issued 5,481,811,474 shares
|
|
|
9,136
|
|
|
9,136
|
|
|
—
|
|
Additional paid-in capital
|
|
|
60,689
|
|
|
60,234
|
|
|
1
|
|
Retained earnings
|
|
|
139,524
|
|
|
133,075
|
|
|
5
|
|
Cumulative other comprehensive income (loss)
|
|
|
(2,110
|
)
|
|
(3,137
|
)
|
|
(33
|
)
|
Treasury stock – 515,041,424 shares and 465,702,148 shares
|
|
|
(25,675
|
)
|
|
(22,713
|
)
|
|
13
|
|
Unearned ESOP shares
|
|
|
(2,119
|
)
|
|
(1,565
|
)
|
|
35
|
|
Total Wells Fargo stockholders’ equity
|
|
|
205,230
|
|
|
199,581
|
|
|
3
|
|
Noncontrolling interests
|
|
|
915
|
|
|
916
|
|
|
—
|
|
Total equity
|
|
|
206,145
|
|
|
200,497
|
|
|
3
|
|
Total liabilities and equity
|
|
$
|
1,930,871
|
|
|
1,930,115
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED BALANCE SHEET
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
20,248
|
|
|
19,698
|
|
|
20,729
|
|
|
19,287
|
|
|
20,407
|
|
Federal funds sold, securities purchased under resale agreements and
other short-term investments
|
|
|
264,706
|
|
|
308,747
|
|
|
266,038
|
|
|
298,325
|
|
|
295,521
|
|
Trading assets
|
|
|
83,607
|
|
|
80,326
|
|
|
74,397
|
|
|
81,094
|
|
|
71,556
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale, at fair value
|
|
|
269,202
|
|
|
299,530
|
|
|
308,364
|
|
|
291,591
|
|
|
253,006
|
|
Held-to-maturity, at cost
|
|
|
140,392
|
|
|
108,030
|
|
|
99,583
|
|
|
99,241
|
|
|
100,420
|
|
Mortgages held for sale
|
|
|
24,807
|
|
|
17,822
|
|
|
26,309
|
|
|
27,423
|
|
|
23,930
|
|
Loans held for sale
|
|
|
156
|
|
|
253
|
|
|
80
|
|
|
183
|
|
|
220
|
|
Loans
|
|
|
957,423
|
|
|
958,405
|
|
|
967,604
|
|
|
961,326
|
|
|
957,157
|
|
Allowance for loan losses
|
|
|
(11,073
|
)
|
|
(11,168
|
)
|
|
(11,419
|
)
|
|
(11,583
|
)
|
|
(11,664
|
)
|
Net loans
|
|
|
946,350
|
|
|
947,237
|
|
|
956,185
|
|
|
949,743
|
|
|
945,493
|
|
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at fair value
|
|
|
12,789
|
|
|
13,208
|
|
|
12,959
|
|
|
10,415
|
|
|
10,396
|
|
Amortized
|
|
|
1,399
|
|
|
1,402
|
|
|
1,406
|
|
|
1,373
|
|
|
1,353
|
|
Premises and equipment, net
|
|
|
8,403
|
|
|
8,320
|
|
|
8,333
|
|
|
8,322
|
|
|
8,289
|
|
Goodwill
|
|
|
26,573
|
|
|
26,666
|
|
|
26,693
|
|
|
26,688
|
|
|
26,963
|
|
Derivative assets
|
|
|
13,273
|
|
|
12,564
|
|
|
14,498
|
|
|
18,736
|
|
|
20,999
|
|
Other assets
|
|
|
118,966
|
|
|
107,761
|
|
|
114,541
|
|
|
109,703
|
|
|
110,682
|
|
Total assets
|
|
$
|
1,930,871
|
|
|
1,951,564
|
|
|
1,930,115
|
|
|
1,942,124
|
|
|
1,889,235
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
|
372,766
|
|
|
365,780
|
|
|
375,967
|
|
|
376,136
|
|
|
361,934
|
|
Interest-bearing deposits
|
|
|
933,064
|
|
|
959,664
|
|
|
930,112
|
|
|
899,758
|
|
|
883,539
|
|
Total deposits
|
|
|
1,305,830
|
|
|
1,325,444
|
|
|
1,306,079
|
|
|
1,275,894
|
|
|
1,245,473
|
|
Short-term borrowings
|
|
|
95,356
|
|
|
94,871
|
|
|
96,781
|
|
|
124,668
|
|
|
120,258
|
|
Derivative liabilities
|
|
|
11,636
|
|
|
12,461
|
|
|
14,492
|
|
|
13,603
|
|
|
15,483
|
|
Accrued expenses and other liabilities
|
|
|
73,035
|
|
|
59,831
|
|
|
57,189
|
|
|
69,166
|
|
|
61,433
|
|
Long-term debt
|
|
|
238,869
|
|
|
256,468
|
|
|
255,077
|
|
|
254,835
|
|
|
243,927
|
|
Total liabilities
|
|
|
1,724,726
|
|
|
1,749,075
|
|
|
1,729,618
|
|
|
1,738,166
|
|
|
1,686,574
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
25,785
|
|
|
25,501
|
|
|
24,551
|
|
|
24,594
|
|
|
24,830
|
|
Common stock
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
|
9,136
|
|
Additional paid-in capital
|
|
|
60,689
|
|
|
60,585
|
|
|
60,234
|
|
|
60,685
|
|
|
60,691
|
|
Retained earnings
|
|
|
139,524
|
|
|
136,032
|
|
|
133,075
|
|
|
130,288
|
|
|
127,076
|
|
Cumulative other comprehensive income (loss)
|
|
|
(2,110
|
)
|
|
(3,178
|
)
|
|
(3,137
|
)
|
|
2,184
|
|
|
2,948
|
|
Treasury stock
|
|
|
(25,675
|
)
|
|
(24,030
|
)
|
|
(22,713
|
)
|
|
(22,247
|
)
|
|
(21,068
|
)
|
Unearned ESOP shares
|
|
|
(2,119
|
)
|
|
(2,546
|
)
|
|
(1,565
|
)
|
|
(1,612
|
)
|
|
(1,868
|
)
|
Total Wells Fargo stockholders’ equity
|
|
|
205,230
|
|
|
201,500
|
|
|
199,581
|
|
|
203,028
|
|
|
201,745
|
|
Noncontrolling interests
|
|
|
915
|
|
|
989
|
|
|
916
|
|
|
930
|
|
|
916
|
|
Total equity
|
|
|
206,145
|
|
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
Total liabilities and equity
|
|
$
|
1,930,871
|
|
|
1,951,564
|
|
|
1,930,115
|
|
|
1,942,124
|
|
|
1,889,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER INVESTMENT SECURITIES
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(in millions)
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
$
|
17,896
|
|
24,625
|
|
25,819
|
|
26,376
|
|
27,939
|
Securities of U.S. states and political subdivisions
|
|
|
52,013
|
|
52,061
|
|
51,101
|
|
55,366
|
|
54,024
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies
|
|
|
135,938
|
|
156,966
|
|
161,230
|
|
135,692
|
|
95,868
|
Residential and commercial
|
|
|
12,772
|
|
14,233
|
|
16,318
|
|
18,387
|
|
19,938
|
Total mortgage-backed securities
|
|
|
148,710
|
|
171,199
|
|
177,548
|
|
154,079
|
|
115,806
|
Other debt securities
|
|
|
49,555
|
|
50,520
|
|
52,685
|
|
54,537
|
|
53,935
|
Total available-for-sale debt securities
|
|
|
268,174
|
|
298,405
|
|
307,153
|
|
290,358
|
|
251,704
|
Marketable equity securities
|
|
|
1,028
|
|
1,125
|
|
1,211
|
|
1,233
|
|
1,302
|
Total available-for-sale securities
|
|
|
269,202
|
|
299,530
|
|
308,364
|
|
291,591
|
|
253,006
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
Securities of U.S. Treasury and federal agencies
|
|
|
44,704
|
|
44,697
|
|
44,690
|
|
44,682
|
|
44,675
|
Securities of U.S. states and political subdivisions
|
|
|
6,325
|
|
6,331
|
|
6,336
|
|
2,994
|
|
2,181
|
Federal agency and other mortgage-backed securities (1)
|
|
|
87,525
|
|
53,778
|
|
45,161
|
|
47,721
|
|
49,594
|
Other debt securities
|
|
|
1,838
|
|
3,224
|
|
3,396
|
|
3,844
|
|
3,970
|
Total held-to-maturity debt securities
|
|
|
140,392
|
|
108,030
|
|
99,583
|
|
99,241
|
|
100,420
|
Total investment securities
|
|
$
|
409,594
|
|
407,560
|
|
407,947
|
|
390,832
|
|
353,426
|
(1) Predominantly consists of federal agency mortgage-backed
securities.
|
|
|
|
|
|
|
|
|
|
|
|
|
FIVE QUARTER LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(in millions)
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
331,113
|
|
329,252
|
|
330,840
|
|
324,020
|
|
323,858
|
Real estate mortgage
|
|
|
130,277
|
|
131,532
|
|
132,491
|
|
130,223
|
|
128,320
|
Real estate construction
|
|
|
25,337
|
|
25,064
|
|
23,916
|
|
23,340
|
|
23,387
|
Lease financing
|
|
|
19,174
|
|
19,156
|
|
19,289
|
|
18,871
|
|
18,973
|
Total commercial
|
|
|
505,901
|
|
505,004
|
|
506,536
|
|
496,454
|
|
494,538
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
276,566
|
|
274,633
|
|
275,579
|
|
278,689
|
|
277,162
|
Real estate 1-4 family junior lien mortgage
|
|
|
42,747
|
|
44,333
|
|
46,237
|
|
48,105
|
|
49,772
|
Credit card
|
|
|
35,305
|
|
34,742
|
|
36,700
|
|
34,992
|
|
34,137
|
Automobile
|
|
|
57,958
|
|
60,408
|
|
62,286
|
|
62,873
|
|
61,939
|
Other revolving credit and installment
|
|
|
38,946
|
|
39,285
|
|
40,266
|
|
40,213
|
|
39,609
|
Total consumer
|
|
|
451,522
|
|
453,401
|
|
461,068
|
|
464,872
|
|
462,619
|
Total loans (1)
|
|
$
|
957,423
|
|
958,405
|
|
967,604
|
|
961,326
|
|
957,157
|
(1) Includes $14.3 billion, $15.7 billion, $16.7 billion, $17.7
billion, and $19.3 billion of purchased credit-impaired (PCI)
loans at June 30, and March 31, 2017, and December 31, September
30, and June 30, 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign
loan portfolio is commercial loans. Loans are classified as
foreign primarily based on whether the borrower's primary address
is outside of the United States. The following table presents
total commercial foreign loans outstanding by class of financing
receivable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(in millions)
|
|
2017
|
|
2017
|
|
2016
|
|
2016
|
|
2016
|
Commercial foreign loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
57,825
|
|
56,987
|
|
55,396
|
|
51,515
|
|
50,515
|
Real estate mortgage
|
|
|
8,359
|
|
8,206
|
|
8,541
|
|
8,466
|
|
8,467
|
Real estate construction
|
|
|
585
|
|
471
|
|
375
|
|
310
|
|
246
|
Lease financing
|
|
|
1,092
|
|
986
|
|
972
|
|
958
|
|
987
|
Total commercial foreign loans
|
|
$
|
67,861
|
|
66,650
|
|
65,284
|
|
61,249
|
|
60,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
2,632
|
|
|
2,898
|
|
|
3,216
|
|
|
3,331
|
|
|
3,464
|
Real estate mortgage
|
|
|
630
|
|
|
672
|
|
|
685
|
|
|
780
|
|
|
872
|
Real estate construction
|
|
|
34
|
|
|
40
|
|
|
43
|
|
|
59
|
|
|
59
|
Lease financing
|
|
|
89
|
|
|
96
|
|
|
115
|
|
|
92
|
|
|
112
|
Total commercial
|
|
|
3,385
|
|
|
3,706
|
|
|
4,059
|
|
|
4,262
|
|
|
4,507
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
4,413
|
|
|
4,743
|
|
|
4,962
|
|
|
5,310
|
|
|
5,970
|
Real estate 1-4 family junior lien mortgage
|
|
|
1,095
|
|
|
1,153
|
|
|
1,206
|
|
|
1,259
|
|
|
1,330
|
Automobile
|
|
|
104
|
|
|
101
|
|
|
106
|
|
|
108
|
|
|
111
|
Other revolving credit and installment
|
|
|
59
|
|
|
56
|
|
|
51
|
|
|
47
|
|
|
45
|
Total consumer
|
|
|
5,671
|
|
|
6,053
|
|
|
6,325
|
|
|
6,724
|
|
|
7,456
|
Total nonaccrual loans (1)(2)(3)
|
|
$
|
9,056
|
|
|
9,759
|
|
|
10,384
|
|
|
10,986
|
|
|
11,963
|
As a percentage of total loans
|
|
|
0.95
|
%
|
|
1.02
|
|
|
1.07
|
|
|
1.14
|
|
|
1.25
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government insured/guaranteed
|
|
$
|
149
|
|
|
179
|
|
|
197
|
|
|
282
|
|
|
321
|
Non-government insured/guaranteed
|
|
|
632
|
|
|
726
|
|
|
781
|
|
|
738
|
|
|
796
|
Total foreclosed assets
|
|
|
781
|
|
|
905
|
|
|
978
|
|
|
1,020
|
|
|
1,117
|
Total nonperforming assets
|
|
$
|
9,837
|
|
|
10,664
|
|
|
11,362
|
|
|
12,006
|
|
|
13,080
|
As a percentage of total loans
|
|
|
1.03
|
%
|
|
1.11
|
|
|
1.17
|
|
|
1.25
|
|
|
1.37
|
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
|
(2) Excludes PCI loans because they continue to earn interest
income from accretable yield, independent of performance in
accordance with their contractual terms.
|
(3) Real estate 1-4 family mortgage loans predominantly insured by
the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) and student loans largely
guaranteed by agencies on behalf of the U.S. Department of
Education under the Federal Family Education Loan Program are not
placed on nonaccrual status because they are insured or
guaranteed. All remaining student loans guaranteed under the FFELP
were sold as of March 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
Total (excluding PCI)(1):
|
|
$
|
9,716
|
|
|
10,525
|
|
|
11,858
|
|
|
12,068
|
|
|
12,385
|
Less: FHA insured/guaranteed by the VA (2)(3)
|
|
|
8,873
|
|
|
9,585
|
|
|
10,883
|
|
|
11,198
|
|
|
11,577
|
Less: Student loans guaranteed under the FFELP (4)
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
17
|
|
|
20
|
Total, not government insured/guaranteed
|
|
$
|
843
|
|
|
940
|
|
|
972
|
|
|
853
|
|
|
788
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
$
|
42
|
|
|
88
|
|
|
28
|
|
|
47
|
|
|
36
|
Real estate mortgage
|
|
|
2
|
|
|
11
|
|
|
36
|
|
|
4
|
|
|
22
|
Real estate construction
|
|
|
10
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
Total commercial
|
|
|
54
|
|
|
102
|
|
|
64
|
|
|
51
|
|
|
58
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage (3)
|
|
|
145
|
|
|
149
|
|
|
175
|
|
|
171
|
|
|
169
|
Real estate 1-4 family junior lien mortgage (3)
|
|
|
44
|
|
|
42
|
|
|
56
|
|
|
54
|
|
|
52
|
Credit card
|
|
|
411
|
|
|
453
|
|
|
452
|
|
|
392
|
|
|
348
|
Automobile
|
|
|
91
|
|
|
79
|
|
|
112
|
|
|
81
|
|
|
64
|
Other revolving credit and installment
|
|
|
98
|
|
|
115
|
|
|
113
|
|
|
104
|
|
|
97
|
Total consumer
|
|
|
789
|
|
|
838
|
|
|
908
|
|
|
802
|
|
|
730
|
Total, not government insured/guaranteed
|
|
$
|
843
|
|
|
940
|
|
|
972
|
|
|
853
|
|
|
788
|
(1) PCI loans totaled $1.5 billion, $1.8 billion, $2.0 billion,
$2.2 billion and $2.4 billion, at June 30 and March 31, 2017 and
December 31, September 30, and June 30, 2016, respectively.
|
(2) Represents loans whose repayments are predominantly insured by
the FHA or guaranteed by the VA.
|
(3) Includes mortgages held for sale 90 days or more past due and
still accruing.
|
(4) Represents loans whose repayments are largely guaranteed by
agencies on behalf of the U.S. Department of Education under the
FFELP. All remaining student loans guaranteed under the FFELP were
sold as of March 31, 2017.
|
|
Wells Fargo & Company and Subsidiaries CHANGES IN
ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination
and for which it is probable that all contractually required payments
will not be collected are considered to be credit impaired. PCI loans
predominantly represent loans acquired from Wachovia that were deemed to
be credit impaired. Evidence of credit quality deterioration as of the
purchase date may include statistics such as past due and nonaccrual
status, recent borrower credit scores and recent LTV percentages. PCI
loans are initially measured at fair value, which includes estimated
future credit losses expected to be incurred over the life of the loan.
Accordingly, the associated allowance for credit losses related to these
loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios cannot
be used to compare a portfolio that includes PCI loans against one that
does not, or to compare ratios across quarters or years. The ratios
particularly affected include the allowance for loan losses and
allowance for credit losses as percentages of loans, of nonaccrual loans
and of nonperforming assets; nonaccrual loans and nonperforming assets
as a percentage of total loans; and net charge-offs as a percentage of
loans.
The excess of cash flows expected to be collected over the carrying
value of PCI loans is referred to as the accretable yield and is
accreted into interest income over the estimated lives of the PCI loans
using the effective yield method. The accretable yield is affected by:
-
Changes in interest rate indices for variable rate PCI loans -
Expected future cash flows are based on the variable rates in effect
at the time of the quarterly assessment of expected cash flows;
-
Changes in prepayment assumptions - Prepayments affect the estimated
life of PCI loans which may change the amount of interest income, and
possibly principal, expected to be collected; and
-
Changes in the expected principal and interest payments over the
estimated life - Updates to changes in expected cash flows are driven
by the credit outlook and actions taken with borrowers. Changes in
expected future cash flows from loan modifications are included in the
regular evaluations of cash flows expected to be collected.
The change in the accretable yield related to PCI loans since the merger
with Wachovia is presented in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
|
|
Six months
|
|
|
|
|
|
|
|
ended
|
|
|
|
ended
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
(in millions)
|
|
2017
|
|
|
|
2017
|
|
|
|
2009-2016
|
|
Balance, beginning of period
|
|
$
|
10,315
|
|
|
|
11,216
|
|
|
|
10,447
|
|
Change in accretable yield due to acquisitions
|
|
|
—
|
|
|
|
2
|
|
|
|
159
|
|
Accretion into interest income (1)
|
|
|
(374
|
)
|
|
|
(731
|
)
|
|
|
(15,577
|
)
|
Accretion into noninterest income due to sales (2)
|
|
|
(309
|
)
|
|
|
(334
|
)
|
|
|
(467
|
)
|
Reclassification from nonaccretable difference for loans with
improving credit-related cash flows (3)
|
|
|
—
|
|
|
|
406
|
|
|
|
10,955
|
|
Changes in expected cash flows that do not affect nonaccretable
difference (4)
|
|
|
(263
|
)
|
|
|
(1,190
|
)
|
|
|
5,699
|
|
Balance, end of period
|
|
$
|
9,369
|
|
|
|
9,369
|
|
|
|
11,216
|
|
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
|
(2) Includes accretable yield released as a result of sales to
third parties, which is included in noninterest income.
|
(3) At June 30, 2017, our carrying value for PCI loans totaled
$14.3 billion and the remainder of nonaccretable difference
established in purchase accounting totaled $649 million. The
nonaccretable difference absorbs losses of contractual amounts
that exceed our carrying value for PCI loans.
|
(4) Represents changes in cash flows expected to be collected due
to the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
PICK-A-PAY PORTFOLIO (1)
|
|
|
June 30, 2017
|
|
|
|
PCI loans
|
|
|
|
All other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
|
|
|
|
Ratio of
|
|
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
carrying
|
|
|
|
|
|
|
|
carrying
|
|
|
|
unpaid
|
|
|
|
Current
|
|
|
|
|
|
|
|
value to
|
|
|
|
|
|
|
|
value to
|
|
|
|
principal
|
|
|
|
LTV
|
|
|
|
Carrying
|
|
|
|
current
|
|
|
|
Carrying
|
|
|
|
current
|
|
(in millions)
|
|
balance (2)
|
|
|
|
ratio (3)
|
|
|
|
value (4)
|
|
|
|
value (5)
|
|
|
|
value (4)
|
|
|
|
value (5)
|
|
California
|
|
$
|
12,263
|
|
|
|
63
|
%
|
|
|
$
|
9,511
|
|
|
|
48
|
%
|
|
|
$
|
7,077
|
|
|
|
45
|
%
|
Florida
|
|
|
1,540
|
|
|
|
70
|
|
|
|
|
1,146
|
|
|
|
51
|
|
|
|
|
1,502
|
|
|
|
56
|
|
New Jersey
|
|
|
609
|
|
|
|
77
|
|
|
|
|
447
|
|
|
|
56
|
|
|
|
|
995
|
|
|
|
63
|
|
New York
|
|
|
458
|
|
|
|
70
|
|
|
|
|
360
|
|
|
|
51
|
|
|
|
|
497
|
|
|
|
60
|
|
Texas
|
|
|
141
|
|
|
|
49
|
|
|
|
|
108
|
|
|
|
37
|
|
|
|
|
598
|
|
|
|
38
|
|
Other states
|
|
|
3,057
|
|
|
|
70
|
|
|
|
|
2,308
|
|
|
|
52
|
|
|
|
|
4,147
|
|
|
|
57
|
|
Total Pick-a-Pay loans
|
|
$
|
18,068
|
|
|
|
65
|
|
|
|
$
|
13,880
|
|
|
|
49
|
|
|
|
$
|
14,816
|
|
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The individual states shown in this table represent the top
five states based on the total net carrying value of the
Pick-a-Pay loans at the beginning of 2017.
|
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
|
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
|
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
|
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
Quarter ended June 30,
|
|
|
Six months ended June 30,
|
|
(in millions)
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Balance, beginning of period
|
|
$
|
12,287
|
|
|
12,668
|
|
|
12,540
|
|
|
12,512
|
|
Provision for credit losses
|
|
|
555
|
|
|
1,074
|
|
|
1,160
|
|
|
2,160
|
|
Interest income on certain impaired loans (1)
|
|
|
(46
|
)
|
|
(51
|
)
|
|
(94
|
)
|
|
(99
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(161
|
)
|
|
(437
|
)
|
|
(414
|
)
|
|
(786
|
)
|
Real estate mortgage
|
|
|
(8
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(6
|
)
|
Real estate construction
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
Lease financing
|
|
|
(13
|
)
|
|
(17
|
)
|
|
(20
|
)
|
|
(21
|
)
|
Total commercial
|
|
|
(182
|
)
|
|
(458
|
)
|
|
(447
|
)
|
|
(814
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(55
|
)
|
|
(123
|
)
|
|
(124
|
)
|
|
(260
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
(62
|
)
|
|
(133
|
)
|
|
(155
|
)
|
|
(266
|
)
|
Credit card
|
|
|
(379
|
)
|
|
(320
|
)
|
|
(746
|
)
|
|
(634
|
)
|
Automobile
|
|
|
(212
|
)
|
|
(176
|
)
|
|
(467
|
)
|
|
(387
|
)
|
Other revolving credit and installment
|
|
|
(185
|
)
|
|
(163
|
)
|
|
(374
|
)
|
|
(338
|
)
|
Total consumer
|
|
|
(893
|
)
|
|
(915
|
)
|
|
(1,866
|
)
|
|
(1,885
|
)
|
Total loan charge-offs
|
|
|
(1,075
|
)
|
|
(1,373
|
)
|
|
(2,313
|
)
|
|
(2,699
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
83
|
|
|
69
|
|
|
165
|
|
|
145
|
|
Real estate mortgage
|
|
|
14
|
|
|
23
|
|
|
44
|
|
|
55
|
|
Real estate construction
|
|
|
4
|
|
|
4
|
|
|
12
|
|
|
12
|
|
Lease financing
|
|
|
6
|
|
|
5
|
|
|
8
|
|
|
8
|
|
Total commercial
|
|
|
107
|
|
|
101
|
|
|
229
|
|
|
220
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
71
|
|
|
109
|
|
|
133
|
|
|
198
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
66
|
|
|
71
|
|
|
136
|
|
|
130
|
|
Credit card
|
|
|
59
|
|
|
50
|
|
|
117
|
|
|
102
|
|
Automobile
|
|
|
86
|
|
|
86
|
|
|
174
|
|
|
170
|
|
Other revolving credit and installment
|
|
|
31
|
|
|
32
|
|
|
64
|
|
|
69
|
|
Total consumer
|
|
|
313
|
|
|
348
|
|
|
624
|
|
|
669
|
|
Total loan recoveries
|
|
|
420
|
|
|
449
|
|
|
853
|
|
|
889
|
|
Net loan charge-offs
|
|
|
(655
|
)
|
|
(924
|
)
|
|
(1,460
|
)
|
|
(1,810
|
)
|
Other
|
|
|
5
|
|
|
(18
|
)
|
|
—
|
|
|
(14
|
)
|
Balance, end of period
|
|
$
|
12,146
|
|
|
12,749
|
|
|
12,146
|
|
|
12,749
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
11,073
|
|
|
11,664
|
|
|
11,073
|
|
|
11,664
|
|
Allowance for unfunded credit commitments
|
|
|
1,073
|
|
|
1,085
|
|
|
1,073
|
|
|
1,085
|
|
Allowance for credit losses
|
|
$
|
12,146
|
|
|
12,749
|
|
|
12,146
|
|
|
12,749
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.27
|
%
|
|
0.39
|
|
|
0.31
|
|
|
0.39
|
|
Allowance for loan losses as a percentage of total loans
|
|
|
1.16
|
|
|
1.22
|
|
|
1.16
|
|
|
1.22
|
|
Allowance for credit losses as a percentage of total loans
|
|
|
1.27
|
|
|
1.33
|
|
|
1.27
|
|
|
1.33
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Balance, beginning of quarter
|
|
$
|
12,287
|
|
|
12,540
|
|
|
12,694
|
|
|
12,749
|
|
|
12,668
|
|
Provision for credit losses
|
|
|
555
|
|
|
605
|
|
|
805
|
|
|
805
|
|
|
1,074
|
|
Interest income on certain impaired loans (1)
|
|
|
(46
|
)
|
|
(48
|
)
|
|
(52
|
)
|
|
(54
|
)
|
|
(51
|
)
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
(161
|
)
|
|
(253
|
)
|
|
(309
|
)
|
|
(324
|
)
|
|
(437
|
)
|
Real estate mortgage
|
|
|
(8
|
)
|
|
(5
|
)
|
|
(14
|
)
|
|
(7
|
)
|
|
(3
|
)
|
Real estate construction
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Lease financing
|
|
|
(13
|
)
|
|
(7
|
)
|
|
(16
|
)
|
|
(4
|
)
|
|
(17
|
)
|
Total commercial
|
|
|
(182
|
)
|
|
(265
|
)
|
|
(339
|
)
|
|
(335
|
)
|
|
(458
|
)
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
(55
|
)
|
|
(69
|
)
|
|
(86
|
)
|
|
(106
|
)
|
|
(123
|
)
|
Real estate 1-4 family junior lien mortgage
|
|
|
(62
|
)
|
|
(93
|
)
|
|
(110
|
)
|
|
(119
|
)
|
|
(133
|
)
|
Credit card
|
|
|
(379
|
)
|
|
(367
|
)
|
|
(329
|
)
|
|
(296
|
)
|
|
(320
|
)
|
Automobile
|
|
|
(212
|
)
|
|
(255
|
)
|
|
(243
|
)
|
|
(215
|
)
|
|
(176
|
)
|
Other revolving credit and installment
|
|
|
(185
|
)
|
|
(189
|
)
|
|
(200
|
)
|
|
(170
|
)
|
|
(163
|
)
|
Total consumer
|
|
|
(893
|
)
|
|
(973
|
)
|
|
(968
|
)
|
|
(906
|
)
|
|
(915
|
)
|
Total loan charge-offs
|
|
|
(1,075
|
)
|
|
(1,238
|
)
|
|
(1,307
|
)
|
|
(1,241
|
)
|
|
(1,373
|
)
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
83
|
|
|
82
|
|
|
53
|
|
|
65
|
|
|
69
|
|
Real estate mortgage
|
|
|
14
|
|
|
30
|
|
|
26
|
|
|
35
|
|
|
23
|
|
Real estate construction
|
|
|
4
|
|
|
8
|
|
|
8
|
|
|
18
|
|
|
4
|
|
Lease financing
|
|
|
6
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
5
|
|
Total commercial
|
|
|
107
|
|
|
122
|
|
|
88
|
|
|
120
|
|
|
101
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate 1-4 family first mortgage
|
|
|
71
|
|
|
62
|
|
|
89
|
|
|
86
|
|
|
109
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
66
|
|
|
70
|
|
|
66
|
|
|
70
|
|
|
71
|
|
Credit card
|
|
|
59
|
|
|
58
|
|
|
54
|
|
|
51
|
|
|
50
|
|
Automobile
|
|
|
86
|
|
|
88
|
|
|
77
|
|
|
78
|
|
|
86
|
|
Other revolving credit and installment
|
|
|
31
|
|
|
33
|
|
|
28
|
|
|
31
|
|
|
32
|
|
Total consumer
|
|
|
313
|
|
|
311
|
|
|
314
|
|
|
316
|
|
|
348
|
|
Total loan recoveries
|
|
|
420
|
|
|
433
|
|
|
402
|
|
|
436
|
|
|
449
|
|
Net loan charge-offs
|
|
|
(655
|
)
|
|
(805
|
)
|
|
(905
|
)
|
|
(805
|
)
|
|
(924
|
)
|
Other
|
|
|
5
|
|
|
(5
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(18
|
)
|
Balance, end of quarter
|
|
$
|
12,146
|
|
|
12,287
|
|
|
12,540
|
|
|
12,694
|
|
|
12,749
|
|
Components:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses
|
|
$
|
11,073
|
|
|
11,168
|
|
|
11,419
|
|
|
11,583
|
|
|
11,664
|
|
Allowance for unfunded credit commitments
|
|
|
1,073
|
|
|
1,119
|
|
|
1,121
|
|
|
1,111
|
|
|
1,085
|
|
Allowance for credit losses
|
|
$
|
12,146
|
|
|
12,287
|
|
|
12,540
|
|
|
12,694
|
|
|
12,749
|
|
Net loan charge-offs (annualized) as a percentage of average total
loans
|
|
|
0.27
|
%
|
|
0.34
|
|
|
0.37
|
|
|
0.33
|
|
|
0.39
|
|
Allowance for loan losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.16
|
|
|
1.17
|
|
|
1.18
|
|
|
1.20
|
|
|
1.22
|
|
Nonaccrual loans
|
|
|
122
|
|
|
114
|
|
|
110
|
|
|
105
|
|
|
98
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
113
|
|
|
105
|
|
|
101
|
|
|
96
|
|
|
89
|
|
Allowance for credit losses as a percentage of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
|
1.27
|
|
|
1.28
|
|
|
1.30
|
|
|
1.32
|
|
|
1.33
|
|
Nonaccrual loans
|
|
|
134
|
|
|
126
|
|
|
121
|
|
|
116
|
|
|
107
|
|
Nonaccrual loans and other nonperforming assets
|
|
|
123
|
|
|
115
|
|
|
110
|
|
|
106
|
|
|
97
|
|
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
TANGIBLE COMMON EQUITY (1)
|
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions, except ratios)
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Tangible book value per common share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
$
|
206,145
|
|
|
202,489
|
|
|
200,497
|
|
|
203,958
|
|
|
202,661
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(25,785
|
)
|
|
(25,501
|
)
|
|
(24,551
|
)
|
|
(24,594
|
)
|
|
(24,830
|
)
|
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
|
(136
|
)
|
|
(157
|
)
|
|
(126
|
)
|
|
(130
|
)
|
|
(150
|
)
|
Unearned ESOP shares
|
|
|
|
|
2,119
|
|
|
2,546
|
|
|
1,565
|
|
|
1,612
|
|
|
1,868
|
|
Noncontrolling interests
|
|
|
|
|
(915
|
)
|
|
(989
|
)
|
|
(916
|
)
|
|
(930
|
)
|
|
(916
|
)
|
Total common stockholders' equity
|
|
(A)
|
|
|
181,428
|
|
|
178,388
|
|
|
176,469
|
|
|
179,916
|
|
|
178,633
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
(26,573
|
)
|
|
(26,666
|
)
|
|
(26,693
|
)
|
|
(26,688
|
)
|
|
(26,963
|
)
|
Certain identifiable intangible assets
(other than MSRs)
|
|
|
|
|
(2,147
|
)
|
|
(2,449
|
)
|
|
(2,723
|
)
|
|
(3,001
|
)
|
|
(3,356
|
)
|
Other assets (2)
|
|
|
|
|
(2,159
|
)
|
|
(2,121
|
)
|
|
(2,088
|
)
|
|
(2,230
|
)
|
|
(2,110
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
1,624
|
|
|
1,698
|
|
|
1,772
|
|
|
1,832
|
|
|
1,906
|
|
Tangible common equity
|
|
(B)
|
|
$
|
152,173
|
|
|
148,850
|
|
|
146,737
|
|
|
149,829
|
|
|
148,110
|
|
Common shares outstanding
|
|
(C)
|
|
|
4,966.8
|
|
|
4,996.7
|
|
|
5,016.1
|
|
|
5,023.9
|
|
|
5,048.5
|
|
Book value per common share
|
|
(A)/(C)
|
|
$
|
36.53
|
|
|
35.70
|
|
|
35.18
|
|
|
35.81
|
|
|
35.38
|
|
Tangible book value per common share
|
|
(B)/(C)
|
|
|
30.64
|
|
|
29.79
|
|
|
29.25
|
|
|
29.82
|
|
|
29.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Six months ended
|
|
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Jun 30,
|
|
|
Jun 30,
|
|
(in millions, except ratios)
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Return on average tangible common equity (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income applicable to common stock
|
|
(A)
|
|
$
|
5,404
|
|
|
5,056
|
|
|
4,872
|
|
|
5,243
|
|
|
5,173
|
|
|
10,460
|
|
|
10,258
|
|
Average total equity
|
|
|
|
|
205,968
|
|
|
201,767
|
|
|
201,247
|
|
|
203,883
|
|
|
201,003
|
|
|
203,879
|
|
|
198,795
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(25,849
|
)
|
|
(25,163
|
)
|
|
(24,579
|
)
|
|
(24,813
|
)
|
|
(24,091
|
)
|
|
(25,508
|
)
|
|
(24,027
|
)
|
Additional paid-in capital on ESOP preferred stock
|
|
|
|
|
(144
|
)
|
|
(146
|
)
|
|
(128
|
)
|
|
(148
|
)
|
|
(168
|
)
|
|
(145
|
)
|
|
(184
|
)
|
Unearned ESOP shares
|
|
|
|
|
2,366
|
|
|
2,198
|
|
|
1,596
|
|
|
1,850
|
|
|
2,094
|
|
|
2,282
|
|
|
2,302
|
|
Noncontrolling interests
|
|
|
|
|
(910
|
)
|
|
(957
|
)
|
|
(928
|
)
|
|
(927
|
)
|
|
(984
|
)
|
|
(934
|
)
|
|
(944
|
)
|
Average common stockholders’ equity
|
|
(B)
|
|
|
181,431
|
|
|
177,699
|
|
|
177,208
|
|
|
179,845
|
|
|
177,854
|
|
|
179,574
|
|
|
175,942
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
(26,664
|
)
|
|
(26,673
|
)
|
|
(26,713
|
)
|
|
(26,979
|
)
|
|
(27,037
|
)
|
|
(26,668
|
)
|
|
(26,553
|
)
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
(2,303
|
)
|
|
(2,588
|
)
|
|
(2,871
|
)
|
|
(3,145
|
)
|
|
(3,600
|
)
|
|
(2,445
|
)
|
|
(3,503
|
)
|
Other assets (2)
|
|
|
|
|
(2,160
|
)
|
|
(2,095
|
)
|
|
(2,175
|
)
|
|
(2,131
|
)
|
|
(2,096
|
)
|
|
(2,128
|
)
|
|
(2,081
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
1,648
|
|
|
1,722
|
|
|
1,785
|
|
|
1,855
|
|
|
1,934
|
|
|
1,685
|
|
|
1,974
|
|
Average tangible common equity
|
|
(C)
|
|
$
|
151,952
|
|
|
148,065
|
|
|
147,234
|
|
|
149,445
|
|
|
147,055
|
|
|
150,018
|
|
|
145,779
|
|
Return on average common stockholders' equity (ROE)
|
|
(A)/(B)
|
|
|
11.95
|
%
|
|
11.54
|
|
|
10.94
|
|
|
11.60
|
|
|
11.70
|
|
|
11.75
|
|
|
11.72
|
|
Return on average tangible common equity (ROTCE)
|
|
(A)/(C)
|
|
|
14.26
|
|
|
13.85
|
|
|
13.16
|
|
|
13.96
|
|
|
14.15
|
|
|
14.06
|
|
|
14.15
|
|
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company's
use of equity.
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
|
|
|
|
|
Estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in billions, except ratio)
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Total equity
|
|
|
|
$
|
206.1
|
|
|
202.5
|
|
|
200.5
|
|
|
204.0
|
|
|
202.7
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
(25.8
|
)
|
|
(25.5
|
)
|
|
(24.6
|
)
|
|
(24.6
|
)
|
|
(24.8
|
)
|
Additional paid-in capital on ESOP
preferred stock
|
|
|
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
Unearned ESOP shares
|
|
|
|
|
2.1
|
|
|
2.5
|
|
|
1.6
|
|
|
1.6
|
|
|
1.9
|
|
Noncontrolling interests
|
|
|
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
(0.9
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
Total common stockholders' equity
|
|
|
|
|
181.4
|
|
|
178.3
|
|
|
176.5
|
|
|
179.9
|
|
|
178.6
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
|
(26.6
|
)
|
|
(26.7
|
)
|
|
(26.7
|
)
|
|
(26.7
|
)
|
|
(27.0
|
)
|
Certain identifiable intangible assets (other than MSRs)
|
|
|
|
|
(2.1
|
)
|
|
(2.4
|
)
|
|
(2.7
|
)
|
|
(3.0
|
)
|
|
(3.4
|
)
|
Other assets (2)
|
|
|
|
|
(2.2
|
)
|
|
(2.1
|
)
|
|
(2.1
|
)
|
|
(2.2
|
)
|
|
(2.0
|
)
|
Applicable deferred taxes (3)
|
|
|
|
|
1.6
|
|
|
1.7
|
|
|
1.8
|
|
|
1.8
|
|
|
1.9
|
|
Investment in certain subsidiaries and other
|
|
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
(2.0
|
)
|
|
(2.5
|
)
|
Common Equity Tier 1 (Fully Phased-In) under Basel III
|
|
(A)
|
|
|
151.9
|
|
|
148.7
|
|
|
146.4
|
|
|
147.8
|
|
|
145.6
|
|
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)
|
|
(B)
|
|
$
|
1,312.6
|
|
|
1,324.5
|
|
|
1,358.9
|
|
|
1,380.0
|
|
|
1,372.9
|
|
Common Equity Tier 1 to total RWAs anticipated under Basel III
(Fully Phased-In) (5)
|
|
(A)/(B)
|
|
|
11.6
|
%
|
|
11.2
|
|
|
10.8
|
|
|
10.7
|
|
|
10.6
|
|
(1) Basel III capital rules, adopted by the Federal Reserve Board
on July 2, 2013, revised the definition of capital, increased
minimum capital ratios, and introduced a minimum Common Equity
Tier 1 (CET1) ratio. These rules established a new comprehensive
capital framework for U.S. banking organizations that implements
the Basel III capital framework and certain provisions of the
Dodd-Frank Act. The rules are being phased in through the end of
2021. Fully phased-in capital amounts, ratios and RWAs are
calculated assuming the full phase-in of the Basel III capital
rules. Fully phased-in regulatory capital amounts, ratios and RWAs
are considered non-GAAP financial measures that are used by
management, bank regulatory agencies, investors and analysts to
assess and monitor the Company’s capital position.
|
(2) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
|
(3) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
|
(4) The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach, which replaced Basel I, and
the Advanced Approach applicable to certain institutions. Under
the final rules, we are subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. Because the
final determination of our CET1 ratio and which approach will
produce the lower CET1 ratio as of June 30, 2017, is subject to
detailed analysis of considerable data, our CET1 ratio at that
date has been estimated using the Basel III definition of capital
under the Basel III Standardized Approach RWAs. The capital ratio
for March 31, 2017, and December 31, September 30 and June 30,
2016, was calculated under the Basel III Standardized Approach
RWAs.
|
(5) The Company’s June 30, 2017, RWAs and capital ratio are
preliminary estimates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
OPERATING SEGMENT RESULTS (1)
|
(income/expense in millions, average balances in billions)
|
|
Community Banking
|
|
|
Wholesale Banking
|
|
|
Wealth and Investment Management
|
|
|
Other (2)
|
|
|
Consolidated Company
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
Quarter ended Jun 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
7,548
|
|
|
7,379
|
|
|
4,278
|
|
|
3,919
|
|
|
1,127
|
|
|
932
|
|
|
(470
|
)
|
|
(497
|
)
|
|
12,483
|
|
|
11,733
|
Provision (reversal of provision) for credit losses
|
|
|
|
623
|
|
|
689
|
|
|
(65
|
)
|
|
385
|
|
|
7
|
|
|
2
|
|
|
(10
|
)
|
|
(2
|
)
|
|
555
|
|
|
1,074
|
Noninterest income
|
|
|
|
4,741
|
|
|
4,825
|
|
|
2,673
|
|
|
3,365
|
|
|
3,055
|
|
|
2,987
|
|
|
(783
|
)
|
|
(748
|
)
|
|
9,686
|
|
|
10,429
|
Noninterest expense
|
|
|
|
7,223
|
|
|
6,648
|
|
|
4,078
|
|
|
4,036
|
|
|
3,075
|
|
|
2,976
|
|
|
(835
|
)
|
|
(794
|
)
|
|
13,541
|
|
|
12,866
|
Income (loss) before income tax expense (benefit)
|
|
|
|
4,443
|
|
|
4,867
|
|
|
2,938
|
|
|
2,863
|
|
|
1,100
|
|
|
941
|
|
|
(408
|
)
|
|
(449
|
)
|
|
8,073
|
|
|
8,222
|
Income tax expense (benefit)
|
|
|
|
1,404
|
|
|
1,667
|
|
|
559
|
|
|
795
|
|
|
417
|
|
|
358
|
|
|
(155
|
)
|
|
(171
|
)
|
|
2,225
|
|
|
2,649
|
Net income (loss) before noncontrolling interests
|
|
|
|
3,039
|
|
|
3,200
|
|
|
2,379
|
|
|
2,068
|
|
|
683
|
|
|
583
|
|
|
(253
|
)
|
|
(278
|
)
|
|
5,848
|
|
|
5,573
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
46
|
|
|
21
|
|
|
(9
|
)
|
|
(5
|
)
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
38
|
|
|
15
|
Net income (loss)
|
|
|
$
|
2,993
|
|
|
3,179
|
|
|
2,388
|
|
|
2,073
|
|
|
682
|
|
|
584
|
|
|
(253
|
)
|
|
(278
|
)
|
|
5,810
|
|
|
5,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
$
|
477.2
|
|
|
485.7
|
|
|
464.9
|
|
|
451.4
|
|
|
71.7
|
|
|
66.7
|
|
|
(56.9
|
)
|
|
(53.0
|
)
|
|
956.9
|
|
|
950.8
|
Average assets
|
|
|
|
983.5
|
|
|
967.6
|
|
|
817.3
|
|
|
772.6
|
|
|
213.1
|
|
|
205.3
|
|
|
(86.8
|
)
|
|
(83.4
|
)
|
|
1,927.1
|
|
|
1,862.1
|
Average deposits
|
|
|
|
727.2
|
|
|
703.7
|
|
|
463.0
|
|
|
425.8
|
|
|
188.2
|
|
|
182.5
|
|
|
(77.2
|
)
|
|
(75.3
|
)
|
|
1,301.2
|
|
|
1,236.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (3)
|
|
|
$
|
15,175
|
|
|
14,847
|
|
|
8,426
|
|
|
7,667
|
|
|
2,201
|
|
|
1,875
|
|
|
(1,019
|
)
|
|
(989
|
)
|
|
24,783
|
|
|
23,400
|
Provision (reversal of provision) for credit losses
|
|
|
|
1,269
|
|
|
1,409
|
|
|
(108
|
)
|
|
748
|
|
|
3
|
|
|
(12
|
)
|
|
(4
|
)
|
|
15
|
|
|
1,160
|
|
|
2,160
|
Noninterest income
|
|
|
|
9,207
|
|
|
9,971
|
|
|
5,563
|
|
|
6,575
|
|
|
6,174
|
|
|
5,898
|
|
|
(1,556
|
)
|
|
(1,487
|
)
|
|
19,388
|
|
|
20,957
|
Noninterest expense
|
|
|
|
14,444
|
|
|
13,484
|
|
|
8,303
|
|
|
8,004
|
|
|
6,281
|
|
|
6,018
|
|
|
(1,695
|
)
|
|
(1,612
|
)
|
|
27,333
|
|
|
25,894
|
Income (loss) before income tax expense (benefit)
|
|
|
|
8,669
|
|
|
9,925
|
|
|
5,794
|
|
|
5,490
|
|
|
2,091
|
|
|
1,767
|
|
|
(876
|
)
|
|
(879
|
)
|
|
15,678
|
|
|
16,303
|
Income tax expense (benefit)
|
|
|
|
2,531
|
|
|
3,364
|
|
|
1,305
|
|
|
1,514
|
|
|
779
|
|
|
672
|
|
|
(333
|
)
|
|
(334
|
)
|
|
4,282
|
|
|
5,216
|
Net income (loss) before noncontrolling interests
|
|
|
|
6,138
|
|
|
6,561
|
|
|
4,489
|
|
|
3,976
|
|
|
1,312
|
|
|
1,095
|
|
|
(543
|
)
|
|
(545
|
)
|
|
11,396
|
|
|
11,087
|
Less: Net income (loss) from noncontrolling interests
|
|
|
|
136
|
|
|
86
|
|
|
(14
|
)
|
|
(18
|
)
|
|
7
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
129
|
|
|
67
|
Net income (loss)
|
|
|
$
|
6,002
|
|
|
6,475
|
|
|
4,503
|
|
|
3,994
|
|
|
1,305
|
|
|
1,096
|
|
|
(543
|
)
|
|
(545
|
)
|
|
11,267
|
|
|
11,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans
|
|
|
$
|
479.9
|
|
|
485.0
|
|
|
465.6
|
|
|
440.6
|
|
|
71.2
|
|
|
65.4
|
|
|
(56.5
|
)
|
|
(52.0
|
)
|
|
960.2
|
|
|
939.0
|
Average assets
|
|
|
|
987.0
|
|
|
957.5
|
|
|
812.6
|
|
|
760.6
|
|
|
217.5
|
|
|
206.7
|
|
|
(88.1
|
)
|
|
(83.8
|
)
|
|
1,929.0
|
|
|
1,841.0
|
Average deposits
|
|
|
|
722.2
|
|
|
693.3
|
|
|
464.5
|
|
|
426.9
|
|
|
191.9
|
|
|
183.5
|
|
|
(78.4
|
)
|
|
(75.7
|
)
|
|
1,300.2
|
|
|
1,228.0
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
(2) Includes the elimination of certain items that are included in
more than one business segment, substantially all of which
represents products and services for Wealth and Investment
Management customers served through Community Banking distribution
channels.
|
(3) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(income/expense in millions, average balances in billions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
COMMUNITY BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
7,548
|
|
|
7,627
|
|
|
7,556
|
|
|
7,430
|
|
|
7,379
|
|
Provision for credit losses
|
|
|
623
|
|
|
646
|
|
|
631
|
|
|
651
|
|
|
689
|
|
Noninterest income
|
|
|
4,741
|
|
|
4,466
|
|
|
4,105
|
|
|
4,957
|
|
|
4,825
|
|
Noninterest expense
|
|
|
7,223
|
|
|
7,221
|
|
|
6,985
|
|
|
6,953
|
|
|
6,648
|
|
Income before income tax expense
|
|
|
4,443
|
|
|
4,226
|
|
|
4,045
|
|
|
4,783
|
|
|
4,867
|
|
Income tax expense
|
|
|
1,404
|
|
|
1,127
|
|
|
1,272
|
|
|
1,546
|
|
|
1,667
|
|
Net income before noncontrolling interests
|
|
|
3,039
|
|
|
3,099
|
|
|
2,773
|
|
|
3,237
|
|
|
3,200
|
|
Less: Net income from noncontrolling interests
|
|
|
46
|
|
|
90
|
|
|
40
|
|
|
10
|
|
|
21
|
|
Segment net income
|
|
$
|
2,993
|
|
|
3,009
|
|
|
2,733
|
|
|
3,227
|
|
|
3,179
|
|
Average loans
|
|
$
|
477.2
|
|
|
482.7
|
|
|
488.1
|
|
|
489.2
|
|
|
485.7
|
|
Average assets
|
|
|
983.5
|
|
|
990.7
|
|
|
1,000.7
|
|
|
993.6
|
|
|
967.6
|
|
Average deposits
|
|
|
727.2
|
|
|
717.2
|
|
|
709.8
|
|
|
708.0
|
|
|
703.7
|
|
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
4,278
|
|
|
4,148
|
|
|
4,323
|
|
|
4,062
|
|
|
3,919
|
|
Provision (reversal of provision) for credit losses
|
|
|
(65
|
)
|
|
(43
|
)
|
|
168
|
|
|
157
|
|
|
385
|
|
Noninterest income
|
|
|
2,673
|
|
|
2,890
|
|
|
2,830
|
|
|
3,085
|
|
|
3,365
|
|
Noninterest expense
|
|
|
4,078
|
|
|
4,225
|
|
|
4,002
|
|
|
4,120
|
|
|
4,036
|
|
Income before income tax expense
|
|
|
2,938
|
|
|
2,856
|
|
|
2,983
|
|
|
2,870
|
|
|
2,863
|
|
Income tax expense
|
|
|
559
|
|
|
746
|
|
|
795
|
|
|
827
|
|
|
795
|
|
Net income before noncontrolling interests
|
|
|
2,379
|
|
|
2,110
|
|
|
2,188
|
|
|
2,043
|
|
|
2,068
|
|
Less: Net loss from noncontrolling interests
|
|
|
(9
|
)
|
|
(5
|
)
|
|
(6
|
)
|
|
(4
|
)
|
|
(5
|
)
|
Segment net income
|
|
$
|
2,388
|
|
|
2,115
|
|
|
2,194
|
|
|
2,047
|
|
|
2,073
|
|
Average loans
|
|
$
|
464.9
|
|
|
466.3
|
|
|
461.5
|
|
|
454.3
|
|
|
451.4
|
|
Average assets
|
|
|
817.3
|
|
|
807.8
|
|
|
811.9
|
|
|
794.2
|
|
|
772.6
|
|
Average deposits
|
|
|
463.0
|
|
|
466.0
|
|
|
459.2
|
|
|
441.2
|
|
|
425.8
|
|
WEALTH AND INVESTMENT MANAGEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
1,127
|
|
|
1,074
|
|
|
1,061
|
|
|
977
|
|
|
932
|
|
Provision (reversal of provision) for credit losses
|
|
|
7
|
|
|
(4
|
)
|
|
3
|
|
|
4
|
|
|
2
|
|
Noninterest income
|
|
|
3,055
|
|
|
3,119
|
|
|
3,013
|
|
|
3,122
|
|
|
2,987
|
|
Noninterest expense
|
|
|
3,075
|
|
|
3,206
|
|
|
3,042
|
|
|
2,999
|
|
|
2,976
|
|
Income before income tax expense
|
|
|
1,100
|
|
|
991
|
|
|
1,029
|
|
|
1,096
|
|
|
941
|
|
Income tax expense
|
|
|
417
|
|
|
362
|
|
|
380
|
|
|
415
|
|
|
358
|
|
Net income before noncontrolling interests
|
|
|
683
|
|
|
629
|
|
|
649
|
|
|
681
|
|
|
583
|
|
Less: Net income (loss) from noncontrolling interests
|
|
|
1
|
|
|
6
|
|
|
(4
|
)
|
|
4
|
|
|
(1
|
)
|
Segment net income
|
|
$
|
682
|
|
|
623
|
|
|
653
|
|
|
677
|
|
|
584
|
|
Average loans
|
|
$
|
71.7
|
|
|
70.7
|
|
|
70.0
|
|
|
68.4
|
|
|
66.7
|
|
Average assets
|
|
|
213.1
|
|
|
221.9
|
|
|
220.4
|
|
|
212.1
|
|
|
205.3
|
|
Average deposits
|
|
|
188.2
|
|
|
195.6
|
|
|
194.9
|
|
|
189.2
|
|
|
182.5
|
|
OTHER (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
(470
|
)
|
|
(549
|
)
|
|
(538
|
)
|
|
(517
|
)
|
|
(497
|
)
|
Provision (reversal of provision) for credit losses
|
|
|
(10
|
)
|
|
6
|
|
|
3
|
|
|
(7
|
)
|
|
(2
|
)
|
Noninterest income
|
|
|
(783
|
)
|
|
(773
|
)
|
|
(768
|
)
|
|
(788
|
)
|
|
(748
|
)
|
Noninterest expense
|
|
|
(835
|
)
|
|
(860
|
)
|
|
(814
|
)
|
|
(804
|
)
|
|
(794
|
)
|
Loss before income tax benefit
|
|
|
(408
|
)
|
|
(468
|
)
|
|
(495
|
)
|
|
(494
|
)
|
|
(449
|
)
|
Income tax benefit
|
|
|
(155
|
)
|
|
(178
|
)
|
|
(189
|
)
|
|
(187
|
)
|
|
(171
|
)
|
Net loss before noncontrolling interests
|
|
|
(253
|
)
|
|
(290
|
)
|
|
(306
|
)
|
|
(307
|
)
|
|
(278
|
)
|
Less: Net income from noncontrolling interests
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other net loss
|
|
$
|
(253
|
)
|
|
(290
|
)
|
|
(306
|
)
|
|
(307
|
)
|
|
(278
|
)
|
Average loans
|
|
$
|
(56.9
|
)
|
|
(56.1
|
)
|
|
(55.5
|
)
|
|
(54.4
|
)
|
|
(53.0
|
)
|
Average assets
|
|
|
(86.8
|
)
|
|
(89.4
|
)
|
|
(88.7
|
)
|
|
(85.3
|
)
|
|
(83.4
|
)
|
Average deposits
|
|
|
(77.2
|
)
|
|
(79.6
|
)
|
|
(79.7
|
)
|
|
(76.9
|
)
|
|
(75.3
|
)
|
CONSOLIDATED COMPANY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (2)
|
|
$
|
12,483
|
|
|
12,300
|
|
|
12,402
|
|
|
11,952
|
|
|
11,733
|
|
Provision for credit losses
|
|
|
555
|
|
|
605
|
|
|
805
|
|
|
805
|
|
|
1,074
|
|
Noninterest income
|
|
|
9,686
|
|
|
9,702
|
|
|
9,180
|
|
|
10,376
|
|
|
10,429
|
|
Noninterest expense
|
|
|
13,541
|
|
|
13,792
|
|
|
13,215
|
|
|
13,268
|
|
|
12,866
|
|
Income before income tax expense
|
|
|
8,073
|
|
|
7,605
|
|
|
7,562
|
|
|
8,255
|
|
|
8,222
|
|
Income tax expense
|
|
|
2,225
|
|
|
2,057
|
|
|
2,258
|
|
|
2,601
|
|
|
2,649
|
|
Net income before noncontrolling interests
|
|
|
5,848
|
|
|
5,548
|
|
|
5,304
|
|
|
5,654
|
|
|
5,573
|
|
Less: Net income from noncontrolling interests
|
|
|
38
|
|
|
91
|
|
|
30
|
|
|
10
|
|
|
15
|
|
Wells Fargo net income
|
|
$
|
5,810
|
|
|
5,457
|
|
|
5,274
|
|
|
5,644
|
|
|
5,558
|
|
Average loans
|
|
$
|
956.9
|
|
|
963.6
|
|
|
964.1
|
|
|
957.5
|
|
|
950.8
|
|
Average assets
|
|
|
1,927.1
|
|
|
1,931.0
|
|
|
1,944.3
|
|
|
1,914.6
|
|
|
1,862.1
|
|
Average deposits
|
|
|
1,301.2
|
|
|
1,299.2
|
|
|
1,284.2
|
|
|
1,261.5
|
|
|
1,236.7
|
|
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
|
(2) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
|
(3) Includes the elimination of certain items that are included in
more than one business segment, substantially all of which
represents products and services for Wealth and Investment
Management customers served through Community Banking distribution
channels.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
MSRs measured using the fair value method:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, beginning of quarter
|
|
$
|
13,208
|
|
|
12,959
|
|
|
10,415
|
|
|
10,396
|
|
|
11,333
|
|
Servicing from securitizations or asset transfers (1)
|
|
|
436
|
|
|
583
|
|
|
752
|
|
|
609
|
|
|
477
|
|
Sales and other (2)
|
|
|
(8
|
)
|
|
(47
|
)
|
|
(47
|
)
|
|
4
|
|
|
(22
|
)
|
Net additions
|
|
|
428
|
|
|
536
|
|
|
705
|
|
|
613
|
|
|
455
|
|
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage interest rates (3)
|
|
|
(305
|
)
|
|
152
|
|
|
2,367
|
|
|
39
|
|
|
(779
|
)
|
Servicing and foreclosure costs (4)
|
|
|
(14
|
)
|
|
27
|
|
|
93
|
|
|
(10
|
)
|
|
(4
|
)
|
Prepayment estimates and other (5)
|
|
|
(41
|
)
|
|
(5
|
)
|
|
(106
|
)
|
|
(37
|
)
|
|
(41
|
)
|
Net changes in valuation model inputs or assumptions
|
|
|
(360
|
)
|
|
174
|
|
|
2,354
|
|
|
(8
|
)
|
|
(824
|
)
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
(487
|
)
|
|
(461
|
)
|
|
(515
|
)
|
|
(586
|
)
|
|
(568
|
)
|
Total changes in fair value
|
|
|
(847
|
)
|
|
(287
|
)
|
|
1,839
|
|
|
(594
|
)
|
|
(1,392
|
)
|
Fair value, end of quarter
|
|
$
|
12,789
|
|
|
13,208
|
|
|
12,959
|
|
|
10,415
|
|
|
10,396
|
|
(1) Includes impacts associated with exercising our right to
repurchase delinquent loans from GNMA loan securitization pools.
|
(2) Includes sales and transfers of MSRs, which can result in an
increase of total reported MSRs if the sales or transfers are
related to nonperforming loan portfolios.
|
(3) Includes prepayment speed changes as well as other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances)
|
(4) Includes costs to service and unreimbursed foreclosure costs.
|
(5) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and
other assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior and other
external factors that occur independent of interest rate changes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of quarter
|
|
$
|
1,402
|
|
|
1,406
|
|
|
1,373
|
|
|
1,353
|
|
|
1,359
|
|
Purchases
|
|
|
26
|
|
|
18
|
|
|
34
|
|
|
18
|
|
|
24
|
|
Servicing from securitizations or asset transfers
|
|
|
37
|
|
|
45
|
|
|
66
|
|
|
69
|
|
|
38
|
|
Amortization
|
|
|
(66
|
)
|
|
(67
|
)
|
|
(67
|
)
|
|
(67
|
)
|
|
(68
|
)
|
Balance, end of quarter
|
|
$
|
1,399
|
|
|
1,402
|
|
|
1,406
|
|
|
1,373
|
|
|
1,353
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
$
|
2,051
|
|
|
1,956
|
|
|
1,627
|
|
|
1,620
|
|
|
1,725
|
|
End of quarter
|
|
|
1,989
|
|
|
2,051
|
|
|
1,956
|
|
|
1,627
|
|
|
1,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
|
|
2017
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Servicing income, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Servicing fees (1)
|
|
|
|
$
|
882
|
|
|
|
882
|
|
|
738
|
|
|
878
|
|
|
842
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due to changes in valuation model inputs or assumptions (2)
|
|
(A)
|
|
(360
|
)
|
|
|
174
|
|
|
2,354
|
|
|
(8
|
)
|
|
(824
|
)
|
Changes due to collection/realization of expected cash flows over
time
|
|
|
|
(487
|
)
|
|
|
(461
|
)
|
|
(515
|
)
|
|
(586
|
)
|
|
(568
|
)
|
Total changes in fair value of MSRs carried at fair value
|
|
|
|
(847
|
)
|
|
|
(287
|
)
|
|
1,839
|
|
|
(594
|
)
|
|
(1,392
|
)
|
Amortization
|
|
|
|
(66
|
)
|
|
|
(67
|
)
|
|
(67
|
)
|
|
(67
|
)
|
|
(68
|
)
|
Net derivative gains (losses) from economic hedges (3)
|
|
(B)
|
|
431
|
|
|
|
(72
|
)
|
|
(2,314
|
)
|
|
142
|
|
|
978
|
|
Total servicing income, net
|
|
|
|
$
|
400
|
|
|
|
456
|
|
|
196
|
|
|
359
|
|
|
360
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(3)
|
|
(A)+(B)
|
|
$
|
71
|
|
|
|
102
|
|
|
40
|
|
|
134
|
|
|
154
|
|
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues, net of unreimbursed direct servicing
costs.
|
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
|
(3) Represents results from economic hedges used to hedge the risk
of changes in fair value of MSRs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in billions)
|
|
|
|
2017
|
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Managed servicing portfolio (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
$
|
1,189
|
|
|
|
1,204
|
|
|
1,205
|
|
|
1,226
|
|
|
1,250
|
|
Owned loans serviced
|
|
|
|
343
|
|
|
|
335
|
|
|
347
|
|
|
352
|
|
|
349
|
|
Subserviced for others
|
|
|
|
4
|
|
|
|
4
|
|
|
8
|
|
|
4
|
|
|
4
|
|
Total residential servicing
|
|
|
|
1,536
|
|
|
|
1,543
|
|
|
1,560
|
|
|
1,582
|
|
|
1,603
|
|
Commercial mortgage servicing:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Serviced for others
|
|
|
|
475
|
|
|
|
474
|
|
|
479
|
|
|
477
|
|
|
478
|
|
Owned loans serviced
|
|
|
|
130
|
|
|
|
132
|
|
|
132
|
|
|
130
|
|
|
128
|
|
Subserviced for others
|
|
|
|
8
|
|
|
|
7
|
|
|
8
|
|
|
8
|
|
|
8
|
|
Total commercial servicing
|
|
|
|
613
|
|
|
|
613
|
|
|
619
|
|
|
615
|
|
|
614
|
|
Total managed servicing portfolio
|
|
|
|
$
|
2,149
|
|
|
|
2,156
|
|
|
2,179
|
|
|
2,197
|
|
|
2,217
|
|
Total serviced for others
|
|
|
|
$
|
1,664
|
|
|
|
1,678
|
|
|
1,684
|
|
|
1,703
|
|
|
1,728
|
|
Ratio of MSRs to related loans serviced for others
|
|
|
|
0.85
|
%
|
|
|
0.87
|
|
|
0.85
|
|
|
0.69
|
|
|
0.68
|
|
Weighted-average note rate (mortgage loans serviced for others)
|
|
|
|
4.23
|
|
|
|
4.23
|
|
|
4.26
|
|
|
4.28
|
|
|
4.32
|
|
(1) The components of our managed servicing portfolio are
presented at unpaid principal balance for loans serviced and
subserviced for others and at book value for owned loans serviced.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo & Company and Subsidiaries
|
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Net gains on mortgage loan origination/sales activities (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(A)
|
|
$
|
521
|
|
|
569
|
|
|
939
|
|
|
953
|
|
|
744
|
|
Commercial
|
|
|
|
81
|
|
|
101
|
|
|
90
|
|
|
167
|
|
|
72
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
|
|
146
|
|
|
102
|
|
|
192
|
|
|
188
|
|
|
238
|
|
Total
|
|
|
|
$
|
748
|
|
|
772
|
|
|
1,221
|
|
|
1,308
|
|
|
1,054
|
|
Application data (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells Fargo first mortgage quarterly applications
|
|
|
|
$
|
83
|
|
|
59
|
|
|
75
|
|
|
100
|
|
|
95
|
|
Refinances as a percentage of applications
|
|
|
|
32
|
%
|
|
36
|
|
|
48
|
|
|
55
|
|
|
46
|
|
Wells Fargo first mortgage unclosed pipeline, at quarter end
|
|
|
|
$
|
34
|
|
|
28
|
|
|
30
|
|
|
50
|
|
|
47
|
|
Residential real estate originations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases as a percentage of originations
|
|
|
|
75
|
%
|
|
61
|
|
|
50
|
|
|
58
|
|
|
60
|
|
Refinances as a percentage of originations
|
|
|
|
25
|
|
|
39
|
|
|
50
|
|
|
42
|
|
|
40
|
|
Total
|
|
|
|
100
|
%
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Wells Fargo first mortgage loans (in billions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
$
|
25
|
|
|
21
|
|
|
35
|
|
|
37
|
|
|
34
|
|
Correspondent
|
|
|
|
31
|
|
|
22
|
|
|
36
|
|
|
32
|
|
|
28
|
|
Other (2)
|
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Total quarter-to-date
|
|
|
|
$
|
56
|
|
|
44
|
|
|
72
|
|
|
70
|
|
|
63
|
|
Held-for-sale
|
|
(B)
|
|
$
|
42
|
|
|
34
|
|
|
56
|
|
|
53
|
|
|
46
|
|
Held-for-investment
|
|
|
|
14
|
|
|
10
|
|
|
16
|
|
|
17
|
|
|
17
|
|
Total quarter-to-date
|
|
|
|
$
|
56
|
|
|
44
|
|
|
72
|
|
|
70
|
|
|
63
|
|
Total year-to-date
|
|
|
|
$
|
100
|
|
|
44
|
|
|
249
|
|
|
177
|
|
|
107
|
|
Production margin on residential held-for-sale mortgage
originations
|
|
(A)/(B)
|
|
1.24
|
%
|
|
1.68
|
|
|
1.68
|
|
|
1.81
|
|
|
1.66
|
|
(1) Largely includes the results of GNMA loss mitigation
activities, interest rate management activities and changes in
estimate to the liability for mortgage loan repurchase losses.
|
(2) Consists of home equity loans and lines.
|
|
CHANGES IN MORTGAGE REPURCHASE LIABILITY
|
|
|
|
|
Quarter ended
|
|
|
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
(in millions)
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
2016
|
|
|
2016
|
|
Balance, beginning of period
|
|
|
|
$
|
222
|
|
|
|
229
|
|
|
239
|
|
|
255
|
|
|
355
|
|
Provision for repurchase losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan sales
|
|
|
|
6
|
|
|
|
8
|
|
|
10
|
|
|
11
|
|
|
8
|
|
Change in estimate (1)
|
|
|
|
(45
|
)
|
|
|
(8
|
)
|
|
(7
|
)
|
|
(24
|
)
|
|
(89
|
)
|
Net additions (reductions)
|
|
|
|
(39
|
)
|
|
|
—
|
|
|
3
|
|
|
(13
|
)
|
|
(81
|
)
|
Losses
|
|
|
|
(5
|
)
|
|
|
(7
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
(19
|
)
|
Balance, end of period
|
|
|
|
$
|
178
|
|
|
|
222
|
|
|
229
|
|
|
239
|
|
|
255
|
|
(1) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170714005111/en/ Copyright Business Wire 2017
Source: Business Wire
(July 14, 2017 - 8:00 AM EDT)
News by QuoteMedia
www.quotemedia.com
|