-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, dfNOMxKpmv0snD3QtF1zUei6WkKwJb0GeqQl0juxrN4nFI/1c4076k58ehZU7sS+ HlCkAlv3/4pgOU0eC2Ayow== 0000912057-95-000117.txt : 19950509 0000912057-95-000117.hdr.sgml : 19950508 ACCESSION NUMBER: 0000912057-95-000117 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950117 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950117 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WELLS FARGO & CO CENTRAL INDEX KEY: 0000105598 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 132553920 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06214 FILM NUMBER: 95501712 BUSINESS ADDRESS: STREET 1: 420 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94163 BUSINESS PHONE: 4154771000 MAIL ADDRESS: STREET 1: 343 SANSOME ST 3RD FL STREET 2: WELLS FARGO BANK CITY: SAN FRANCISCO STATE: CA ZIP: 94163 8-K 1 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): January 17, 1995 WELLS FARGO & COMPANY (Exact name of registrant as specified in its charter) Delaware 1-6214 No. 13-2553920 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 420 Montgomery Street, San Francisco, California 94163 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (415) 477-1000 Not applicable (Former name or former address, if changed since last report) Item 5: Other Events ------------ Attached hereto as Exhibit 99 are the Press Releases announcing: (1) Wells Fargo & Company's financial results for the quarter and year ended December 31, 1994. Final financial statements with additional analyses will be filed as part of the Company's Form 10-K in March 1995. (2) An increase in Wells Fargo & Company's common stock dividend. Item 7: Financial Statements and Exhibits --------------------------------- (c) Exhibits 27 Financial Data Schedule 99 (1) Copy of the Press Release announcing Wells Fargo & Company's financial results for the quarter and year ended December 31, 1994. (2) Copy of the Press Release announcing an increase in Wells Fargo & Company's common stock dividend. SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on January 17, 1995. WELLS FARGO & COMPANY By: FRANK A. MOESLEIN ------------------------ Frank A. Moeslein Executive Vice President and Controller EX-27 2 EXHIBIT 27
9 This schedule contains summary Financial Information extracted from the 8K dated January 17, 1995 for the period ended December 31, 1994 and is qualified in its entirety by reference to such financial information. 1,000,000 12-MOS DEC-31-1994 JAN-01-1994 DEC-31-1994 2,974 0 260 0 2,989 8,619 8,185 36,347 2,082 53,374 42,332 3,211 990 2,853 256 0 489 3,166 53,374 3,015 740 10 3,765 854 1,155 2,610 200 8 2,156 1,454 841 0 0 841 14.78 0 5.55 567 0 15 0 2,122 369 129 2,082 0 0 0
EX-99. 3 EXHIBIT 99 Exhibit 99 FOR IMMEDIATE RELEASE - --------------------- Tues., Jan. 17, 1995 WELLS FARGO REPORTS FOURTH QUARTER EARNINGS OF $215 MILLION; FULL YEAR PER SHARE EARNINGS $14.78 VS. $10.10 A YEAR AGO Wells Fargo & Co. (NYSE: WFC) today reported net income of $215 million for the fourth quarter of 1994, compared with $190 million for the fourth quarter of 1993, an increase of 13 percent. Per share earnings for the fourth quarter of 1994 were $3.96, compared with $3.18 in the fourth quarter of 1993, an increase of 25 percent. Earnings for the full year of 1994 were $841 million, or $14.78 per share, compared with $612 million, or $10.10 per share, for 1993. Both fourth quarter and full year 1994 results reflected smaller loan loss provisions than were taken in comparable periods in 1993. The results for the fourth quarter also reflected an effective tax rate that was lower than the fourth quarter of 1993. The percentage increase in per share earnings was greater than the percentage increase in net income due to the company's continuing stock repurchase program. Return on average assets (ROA) was 1.64 percent and return on average common equity (ROE) was 23.96 percent in the fourth quarter of 1994. In the year-ago period, ROA was 1.46 percent and ROE was 19.85 percent. ROA was 1.62 percent and ROE was 22.41 percent for the full year 1994, compared with 1.20 percent and 16.74 percent, respectively, in 1993. "Our company did well in 1994," said Chairman Paul Hazen. "As we came out of the recession in California, our credit quality improved rapidly but we faced challenges in resuming growth. We were particularly pleased by our loan growth in the fourth quarter and see it as a foundation for further business expansion in 1995." Net interest income on a taxable-equivalent basis was $656 million in the fourth quarter of 1994, down from $666 million a year ago. For the full year 1994, net interest income on a taxable-equivalent basis was $2.610 billion, compared with $2.659 billion for the prior year. The company's net interest margin for the fourth quarter of 1994 was 5.53 percent, down from 5.69 percent in the same quarter of 1993. The net interest margin for the full year of 1994 was 5.55 percent, compared with 5.74 percent for 1993. -more- 2\WF Earnings Noninterest income (NII) in the fourth quarter of 1994 was $294 million, flat with $295 million in the same quarter of 1993. Included in the fourth quarter of 1994 was a $24 million accrual that was primarily related to the disposition of owned and leased premises associated with expected branch and other facility closures or relocations, as the bank expands its alternative distribution channels. For the full year 1994, NII was $1.200 billion, compared with $1.093 billion for 1993. Noninterest expense (NIE) in the fourth quarter of 1994 was $577 million, up 4 percent from $557 million in the same quarter of 1993. A significant portion of the increases in equipment expenses, contract services and incentive compensation was offset by a decline in foreclosed assets expense. NIE totaled $2.156 billion in 1994, compared with $2.162 billion in 1993. The provision for loan losses in the fourth quarter of 1994 was $30 million, compared with $80 million in the fourth quarter of 1993. Continued improvement in the company's loan portfolio resulted in the reduction of the provision. For 1994, the provision totaled $200 million, compared with $550 million in 1993. Net charge-offs in the fourth quarter of 1994 totaled $58 million, or .65 percent of average total loans (annualized). The largest category of net charge-offs was credit card loans ($28 million). For the fourth quarter of 1993, net charge-offs totaled $81 million, or .97 percent of average total loans (annualized). The largest category of net charge-offs was credit card loans ($34 million). For the full year 1994, net charge-offs totaled $240 million, or .70 percent of average total loans. The largest categories of net charge-offs were credit card loans ($120 million) and real estate mortgage loans other than 1-4 family ($44 million). Full year 1993 net charge-offs totaled $495 million, or 1.44 percent of average total loans. The largest categories of net charge-offs were credit card loans ($156 million) and real estate mortgage loans other than 1-4 family ($150 million). At December 31, 1994, the allowance for loan losses equaled 5.73 percent of total loans, compared with 6.04 percent at September 30, 1994 and 6.41 percent at December 31, 1993. At December 31, 1994, total nonaccrual and restructured loans decreased to $582 million (1.6 percent of total loans), of which an estimated 34 percent were current as to payment of principal and interest. This compares with $641 million (1.8 percent of total loans) at September 30, 1994, of which an estimated 39 percent were current, and $1.200 billion (3.6 percent of total loans) at December 31, 1993, of which an estimated 50 percent were current. Foreclosed assets were $272 million at December 31, 1994, compared with $306 million at September 30, 1994 and $348 million at December 31, 1993. -more- 3\WF Earnings During the fourth quarter of 1994, an estimated $18 million of cash interest payments were received from all loans that were on nonaccrual during the quarter. Of that amount, $6 million was recognized as interest income and $12 million was used to reduce book loan balances. The average nonaccrual book loan balance (net of charge-offs and interest applied to principal) was $617 million for the quarter. The estimated average cash yield was 11.6 percent. During the third quarter of 1994, an estimated $16 million of cash interest payments were received from all loans that were on nonaccrual during the quarter. Of that amount, $4 million was recognized as interest income and $12 million was used to reduce book loan balances. The average nonaccrual book loan balance (net of charge-offs and interest applied to principal) was $662 million for the quarter. The estimated average cash yield was 9.6 percent. The Company's effective tax rate for the fourth quarter of 1994 was 37 percent, compared with 41 percent for the fourth quarter of 1993. The decrease in the effective tax rate was due to a $23 million reduction of income tax expense primarily related to the settlement with the Internal Revenue Service of certain audit issues, including the finalization of the deductibility of the amortization of certain identifiable intangible assets. For the full year 1994, the effective tax rate was 42 percent, compared with 41 percent in 1993. At December 31, 1994, the company's preliminary risk-based capital ratios were 13.20 percent for total risk-based capital and 9.10 percent for Tier 1 risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and 4 percent, respectively. At September 30, 1994, these risk-based capital ratios were 13.93 percent and 9.62 percent, respectively. The decrease in total and Tier 1 risk-based capital ratios between September 30, 1994 and December 31, 1994 resulted primarily from the repurchase of 1,664,290 shares of common stock during the quarter. At December 31, 1993, the company's total risk-based capital ratio was 15.12 percent and the Tier 1 risk-based capital ratio was 10.48 percent. The ratio of common equity to total assets at December 31, 1994 was 6.41 percent, compared with 6.77 percent at September 30, 1994 and 7.00 percent at December 31, 1993. ###
-4- Wells Earnings Wells Fargo & Company and Subsidiaries SUMMARY FINANCIAL DATA -- NEWS RELEASE - ----------------------------------------------------------------------------------------------------------------------------- % Change Quarter ended Dec. 31, 1994 from Year ended --------------------------- ------------------ ----------------- DEC. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31, % (in millions) 1994 1994 1993 1994 1993 1994 1993 Change - ----------------------------------------------------------------------------------------------------------------------------- FOR THE PERIOD Net income $ 215 $ 217 $ 190 (1)% 13 % $ 841 $ 612 37 % Per common share Net income $ 3.96 $ 3.86 $ 3.18 3 25 $ 14.78 $ 10.10 46 Dividends declared 1.00 1.00 .75 -- 33 4.00 2.25 78 Average common shares outstanding 51.8 53.6 55.8 (3) (7) 53.9 55.6 (3) Profitability ratios (annualized) Net income to average total assets (ROA) 1.64% 1.65% 1.46% (1) 12 1.62% 1.20% 35 Net income applicable to common stock to average common stockholders' equity (ROE) 23.96 22.99 19.85 4 21 22.41 16.74 34 Efficiency ratio (1) 60.7% 55.1% 58.0% 10 5 56.6% 57.7% (2) Average loans $ 35,326 $ 34,325 $ 33,149 3 7 $ 34,039 $ 34,304 (1) Average assets 52,090 52,061 51,597 -- 1 51,849 51,110 1 Average core deposits 38,307 39,466 40,691 (3) (6) 39,592 40,389 (2) Net interest margin 5.53% 5.53% 5.69% -- (3) 5.55% 5.74% (3) Average staff (full-time equivalent) 19,562 19,705 19,860 (1) (2) 19,558 20,766 (6) AT PERIOD END Investment securities $ 11,608 $ 12,260 $ 13,058 (5) (11) $ 11,608 $ 13,058 (11) Loans 36,347 34,951 33,099 4 10 36,347 33,099 10 Allowance for loan losses 2,082 2,110 2,122 (1) (2) 2,082 2,122 (2) Assets 53,374 52,164 52,513 2 2 53,374 52,513 2 Core deposits 38,508 39,097 41,291 (2) (7) 38,508 41,291 (7) Common stockholders' equity 3,422 3,533 3,676 (3) (7) 3,422 3,676 (7) Stockholders' equity 3,911 4,022 4,315 (3) (9) 3,911 4,315 (9) Capital ratios Common stockholders' equity to assets 6.41% 6.77% 7.00% (5) (8) 6.41% 7.00% (8) Stockholders' equity to assets 7.33 7.71 8.22 (5) (11) 7.33 8.22 (11) Risk-based capital (2) Tier 1 capital 9.10 9.62 10.48 (5) (13) 9.10 10.48 (13) Total capital 13.20 13.93 15.12 (5) (13) 13.20 15.12 (13) Leverage (2) 6.90 7.01 7.39 (2) (7) 6.90 7.39 (7) Book value per common share $ 66.77 $ 66.93 $ 65.87 -- 1 $ 66.77 $ 65.87 1 COMMON STOCK PRICE High $149-5/8 $160-3/8 $133 (7) 13 $160-3/8 $133 21 Low 141 145-1/8 105-7/8 (3) 33 127-5/8 75-1/2 69 Period end 145 145-1/8 129-3/8 -- 12 145 129-3/8 12 - ----------------------------------------------------------------------------------------------------------------------------- (1) The efficiency ratio is defined as noninterest expense divided by the total of net interest income and noninterest income. (2) The December 31, 1994 ratios are preliminary.
-5- Wells Fargo & Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME ------------------------------------------------------------------------------------------------------------------------ Quarter Year ended December 31, % ended December 31, % ----------------- ----------------- (in millions) 1994 1993 Change 1994 1993 Change ------------------------------------------------------------------------------------------------------------------------ INTEREST INCOME (1) Loans $ 809 $ 744 9 % $3,015 $3,066 (2)% (2) Investment securities 173 178 (3) 740 672 10 Federal funds sold and securities purchased (3) under resale agreements 1 8 (88) 7 23 (70) (4) Other 1 -- -- 3 -- -- ----- ----- ------ ------ (5) Total interest income 984 930 6 3,765 3,761 -- ----- ----- ------ ------ INTEREST EXPENSE (6) Deposits 230 204 13 854 863 (1) Federal funds purchased and securities sold (7) under repurchase agreements 45 6 650 99 29 241 (8) Commercial paper and other short-term borrowings 5 1 400 10 6 67 (9) Senior and subordinated debt 48 53 (9) 192 206 (7) ----- ----- ------ ------ (10) Total interest expense 328 264 24 1,155 1,104 5 ----- ----- ------ ------ (11) NET INTEREST INCOME 656 666 (2) 2,610 2,657 (2) (12) Provision for loan losses 30 80 (63) 200 550 (64) ----- ----- ------ ------ Net interest income after (13) provision for loan losses 626 586 7 2,410 2,107 14 ----- ----- ------ ------ NONINTEREST INCOME (14) Service charges on deposit accounts 118 112 5 473 423 12 (15) Fees and commissions 106 91 16 387 376 3 (16) Trust and investment services income 51 48 6 203 190 7 (17) Investment securities gains -- -- -- 8 -- -- (18) Other 19 44 (57) 129 104 24 ----- ----- ------ ------ (19) Total noninterest income 294 295 -- 1,200 1,093 10 ----- ----- ------ ------ NONINTEREST EXPENSE (20) Salaries 171 171 -- 671 684 (2) (21) Incentive compensation 49 41 20 155 109 42 (22) Employee benefits 48 48 -- 201 213 (6) (23) Net occupancy 54 58 (7) 215 224 (4) (24) Equipment 54 44 23 174 148 18 (25) Federal deposit insurance 25 28 (11) 101 114 (11) (26) Other 176 167 5 639 670 (5) ----- ----- ------ ------ (27) Total noninterest expense 577 557 4 2,156 2,162 -- ----- ----- ------ ------ INCOME BEFORE INCOME TAX (28) EXPENSE 343 324 6 1,454 1,038 40 (29) Income tax expense 128 134 (4) 613 426 44 ----- ----- ------ ------ (30) NET INCOME $ 215 $ 190 13 % $ 841 $ 612 37 % ===== ===== ====== ====== ====== === NET INCOME APPLICABLE TO (31) COMMON STOCK $ 205 $ 178 15 % $ 798 $ 562 42 % ===== ===== ====== ====== ====== === PER COMMON SHARE (32) Net income $3.96 $3.18 25 % $14.78 $10.10 46 % ===== ===== ====== ====== ====== === (33) Dividends declared $1.00 $ .75 33 % $ 4.00 $ 2.25 78 % ===== ===== ====== ====== ====== === (34) Average common shares outstanding 51.8 55.8 (7)% 53.9 55.6 (3)% ===== ===== ====== ====== ====== === ------------------------------------------------------------------------------------------------------------------------
-6- Wells Fargo & Company and Subsidiaries CONSOLIDATED BALANCE SHEET ----------------------------------------------------------------------------------------------------------------------------- December 31, % ----------------- (in millions) 1994 1993 Change ----------------------------------------------------------------------------------------------------------------------------- ASSETS (1) Cash and due from banks $ 2,974 $ 2,644 12 % Investment securities: (2) At cost (estimated fair value $8,185 and $9,978) 8,619 9,887 (13) (3) At fair value 2,989 3,171 (6) ------- ------- (4) Total investment securities 11,608 13,058 (11) Federal funds sold and securities (5) purchased under resale agreements 260 1,668 (84) (6) Loans 36,347 33,099 10 (7) Allowance for loan losses 2,082 2,122 (2) ------- ------- (8) Net loans 34,265 30,977 11 ------- ------- (9) Due from customers on acceptances 77 70 10 (10) Accrued interest receivable 328 297 10 (11) Premises and equipment, net 886 898 (1) (12) Goodwill 416 477 (13) (13) Other assets 2,560 2,424 6 ------- ------- (14) Total assets $53,374 $52,513 2 % ======= ======= === LIABILITIES (15) Noninterest-bearing deposits $10,145 $ 9,719 4 % (16) Interest-bearing deposits 32,187 31,925 1 ------- ------- (17) Total deposits 42,332 41,644 2 Federal funds purchased and securities (18) sold under repurchase agreements 3,022 1,079 180 (19) Commercial paper and other short-term borrowings 189 188 1 (20) Acceptances outstanding 77 70 10 (21) Accrued interest payable 60 63 (5) (22) Other liabilities 930 933 -- (23) Senior debt 1,393 2,256 (38) (24) Subordinated debt 1,460 1,965 (26) ------- ------- (25) Total liabilities 49,463 48,198 3 ------- ------- STOCKHOLDERS' EQUITY (26) Preferred stock 489 639 (23) Common stock - $5 par value, authorized 150,000,000 shares; issued and outstanding 51,251,648 shares and (27) 55,812,592 shares 256 279 (8) (28) Additional paid-in capital 871 551 58 (29) Retained earnings 2,409 2,829 (15) (30) Cumulative foreign currency translation adjustments (4) (4) -- (31) Investment securities valuation allowance (110) 21 -- ------- ------- (32) Total stockholders' equity 3,911 4,315 (9) ------- ------- (33) Total liabilities and stockholders' equity $53,374 $52,513 2 % ======= ======= === ------------------------------------------------------------------------------------------------------------------------
-7-
Wells Fargo & Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - --------------------------------------------------------------------------- Year ended December 31, ---------------------- (in millions) 1994 1993 - --------------------------------------------------------------------------- BALANCE, BEGINNING OF YEAR $4,315 $3,809 Net income 841 612 Common stock issued under employee benefit and dividend reinvestment plans 57 53 Preferred stock redeemed (150) -- Common stock repurchased (760) (5) Preferred stock dividends (43) (50) Common stock dividends (218) (125) Change in investment securities valuation allowance (131) -- Cumulative unrealized net gains, after applicable taxes, at December 31, 1993(1) -- 21 ------ ------ BALANCE, END OF YEAR $3,911 $4,315 ====== ====== - --------------------------------------------------------------------------- (1) Represents valuation allowance for available-for-sale investment securities carried at fair value resulting from the adoption of Financial Accounting Standard No. 115 at December 31, 1993.
LOANS - --------------------------------------------------------------------------- December 31, ----------------- (in millions) 1994 1993 - --------------------------------------------------------------------------- Commercial (1) $ 8,162 $ 6,912 Real estate 1-4 family first mortgage 9,050 7,458 Other real estate mortgage 8,079 8,286 Real estate construction 1,013 1,110 Consumer: Real estate 1-4 family junior lien mortgage 3,332 3,583 Credit card 3,125 2,600 Other revolving credit and monthly payment 2,229 1,920 ------- ------- Total consumer 8,686 8,103 Lease financing 1,330 1,212 Foreign 27 18 ------- ------- Total loans $36,347 $33,099 ======= ======= - --------------------------------------------------------------------------- (1) Includes loans to real estate developers of $525 million and $505 million at December 31, 1994 and December 31, 1993, respectively.
-8- Wells Fargo & Company and Subsidiaries CHANGES IN THE ALLOWANCE FOR LOAN LOSSES - ----------------------------------------------------------------------------------------------------------------------------- Quarter ended Year ended --------------------------- ----------------- DEC. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31, (in millions) 1994 1994 1993 1994 1993 - ----------------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $2,110 $2,120 $2,123 $2,122 $2,067 Provision for loan losses 30 50 80 200 550 Loan charge-offs: Commercial (1) (15) (9) (29) (54) (110) Real estate 1-4 family first mortgage (2) (5) (8) (18) (25) Other real estate mortgage (8) (23) (21) (66) (197) Real estate construction (5) (9) (13) (19) (68) Consumer: Real estate 1-4 family junior lien mortgage (4) (5) (9) (24) (28) Credit card (31) (32) (40) (138) (177) Other revolving credit and monthly payment (11) (7) (9) (36) (41) ------ ------ ------ ------ ------ Total consumer (46) (44) (58) (198) (246) Lease financing (3) (3) (5) (14) (18) ------ ------ ------ ------ ------ Total loan charge-offs (79) (93) (134) (369) (664) ------ ------ ------ ------ ------ Loan recoveries: Commercial (2) 7 10 22 37 71 Real estate 1-4 family first mortgage -- 2 -- 6 2 Other real estate mortgage 3 7 16 22 47 Real estate construction 3 5 3 15 4 Consumer: Real estate 1-4 family junior lien mortgage 1 1 1 4 3 Credit card 3 3 6 18 21 Other revolving credit and monthly payment 3 3 3 11 12 ------ ------ ------ ------ ------ Total consumer 7 7 10 33 36 Lease financing 1 2 2 16 9 ------ ------ ------ ------ ------ Total loan recoveries 21 33 53 129 169 ------ ------ ------ ------ ------ Total net loan charge-offs (58) (60) (81) (240) (495) ------ ------ ------ ------ ------ BALANCE, END OF PERIOD $2,082 $2,110 $2,122 $2,082 $2,122 ====== ====== ====== ====== ====== Total net loan charge-offs as a percentage of average total loans (annualized) .65% .69% .97% .70% 1.44% ====== ====== ====== ====== ====== Allowance as a percentage of total loans 5.73% 6.04% 6.41% 5.73% 6.41% ====== ====== ====== ====== ====== - ----------------------------------------------------------------------------------------------------------------------------- (1) Includes charge-offs of loans to real estate developers of $4 million, none and $15 million in the quarters ended December 31, 1994, September 30, 1994 and December 31, 1993, respectively, and $14 million and $21 million in the years ended December 31, 1994 and 1993, respectively. (2) Includes recoveries from loans to real estate developers of none, $2 million and $1 million in the quarters ended December 31, 1994, September 30, 1994 and December 31, 1993, respectively, and $2 million and $3 million in the years ended December 31, 1994 and 1993, respectively.
-9- Wells Fargo & Company and Subsidiaries NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS - ----------------------------------------------------------------------------------------------------------------------------- DEC. 31, Sept. 30, June 30, March 31, Dec. 31, (in millions) 1994 1994 1994 1994 1993 - ----------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans: Commercial (1) $ 88 $109 $ 121 $ 165 $ 252 Real estate 1-4 family first mortgage 81 76 88 90 99 Other real estate mortgage 328 334 410 413 578 Real estate construction 58 101 72 202 235 Consumer: Real estate 1-4 family junior lien mortgage 11 14 19 22 27 Other revolving credit and monthly payment 1 3 2 3 3 ---- ---- ------ ------ ------ Total nonaccrual loans 567 637 712 895 1,194 Restructured loans 15 4 5 5 6 ---- ---- ------ ------ ------ Nonaccrual and restructured loans 582 641 717 900 1,200 As a percentage of total loans 1.6% 1.8% 2.1% 2.7% 3.6% Foreclosed assets 272 306 344 354 348 Real estate investments (2) 17 12 11 11 15 ---- ---- ------ ------ ------ Total nonaccrual and restructured loans and other assets $871 $959 $1,072 $1,265 $1,563 ==== ==== ====== ====== ====== - ----------------------------------------------------------------------------------------------------------------------------- (1) Includes loans to real estate developers of $30 million, $38 million, $41 million, $47 million and $91 million at December 31, 1994, September 30, 1994, June 30, 1994, March 31, 1994 and December 31, 1993, respectively. (2) Represents the amount of real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if such assets were loans. Real estate investments totaled $54 million, $26 million, $28 million, $29 million and $34 million at December 31, 1994, September 30, 1994, June 30, 1994, March 31, 1994 and December 31, 1993, respectively.
QUARTERLY TREND OF CHANGES IN NONACCRUAL LOANS (1) - ----------------------------------------------------------------------------------------------------------------------------- DEC. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, (in millions) 1994 1994 1994 1994 1993 1993 1993 1993 - ----------------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF QUARTER $637 $712 $895 $1,194 $1,696 $1,898 $1,966 $2,134 New loans placed on nonaccrual 71 93 124 52 113 195 264 249 Loans purchased 28 -- 9 -- -- -- -- -- Charge-offs (25) (38) (27) (35) (55) (90) (71) (109) Payments (64) (71) (91) (121) (309) (188) (144) (156) Transfers to foreclosed assets (18) (14) (27) (37) (64) (32) (104) (41) Transfers from foreclosed assets (2) -- -- -- -- -- -- 99 -- Loans returned to accrual (62) (45) (172) (157) (188) (81) (107) (82) Loans sold -- -- -- (3) -- (2) (5) (26) Other additions (deductions) -- -- 1 2 1 (4) -- (3) ---- ---- ---- ------ ------ ------ ------ ------ BALANCE, END OF QUARTER $567 $637 $712 $ 895 $1,194 $1,696 $1,898 $1,966 ==== ==== ==== ====== ====== ====== ====== ====== - ----------------------------------------------------------------------------------------------------------------------------- (1) The December 31, 1994 amounts are preliminary. (2) Reclassification due to clarification of criteria used in determining when a loan is in-substance foreclosed.
-10- Wells Fargo & Company and Subsidiaries NONACCRUAL LOANS BY PERFORMANCE CATEGORY (1) - ----------------------------------------------------------------------------------------------------------------------------- Cumulative cash Book interest Contractual principal Cumulative applied to principal (in millions) balance charge-offs(6) principal(6) balance - ----------------------------------------------------------------------------------------------------------------------------- DECEMBER 31, 1994 ---------------------------------------------------------------- Contractually past due (2): Payments not made (3): 90 days or more past due $111 $ 3 $ -- $114 Less than 90 days past due 2 -- -- 2 ---- ---- ---- ---- 113 3 -- 116 ---- ---- ---- ---- Payments made (4): 90 days or more past due 210 75 28 313 Less than 90 days past due 60 4 12 76 ---- ---- ---- ---- 270 79 40 389 ---- ---- ---- ---- Total past due 383 82 40 505 Contractually current (5) 184 115 62 361 ---- ---- ---- ---- Total nonaccrual loans $567 $197 $102 $866 ==== ==== ==== ==== - ----------------------------------------------------------------------------------------------------------------------------- September 30, 1994 ---------------------------------------------------------------- Contractually past due (2): Payments not made (3): 90 days or more past due $113 $5 $-- $118 Less than 90 days past due 2 -- -- 2 ---- ---- ---- ---- 115 5 -- 120 ---- ---- ---- ---- Payments made (4): 90 days or more past due 205 79 22 306 Less than 90 days past due 69 38 23 130 ---- ---- ---- ---- 274 117 45 436 ---- ---- ---- ---- Total past due 389 122 45 556 Contractually current (5) 248 131 60 439 ---- ---- ---- ---- Total nonaccrual loans $637 $253 $105 $995 ==== ==== ==== ==== - ----------------------------------------------------------------------------------------------------------------------------- (1) There can be no assurance that individual borrowers will continue to perform at the level indicated or that the performance characteristics will not change significantly. The December 31, 1994 amounts are preliminary. (2) Contractually past due is defined as a borrower whose loan principal or interest payment is 30 days or more past due. (3) Borrower has made no payments since being placed on nonaccrual. (4) Borrower has made some payments since being placed on nonaccrual. Approximately $168 million and $215 million of these loans had some payments made on them during the fourth and third quarters of 1994, respectively. (5) Contractually current is defined as a loan for which principal and interest are being paid in accordance with the terms of the loan. All of the contractually current loans were placed on nonaccrual due to uncertainty of receiving full timely collection of interest or principal. (6) Cumulative amounts recorded since inception of the loan.
-11- Wells Fargo & Company and Subsidiaries NONINTEREST INCOME - ----------------------------------------------------------------------------------------------------------------------------- Quarter Year ended December 31, % ended December 31, % ----------------- ----------------- (in millions) 1994 1993 Change 1994 1993 Change - ----------------------------------------------------------------------------------------------------------------------------- Service charges on deposit accounts $118 $112 5 % $ 473 $ 423 12 % Fees and commissions: Credit card membership and other credit card fees 17 17 -- 64 68 (6) Mutual fund and annuity sales fees 20 9 122 64 43 49 Debit and credit card merchant fees 15 17 (12) 55 80 (31) Shared ATM network fees 12 10 20 43 38 13 Charges and fees on loans 10 12 (17) 42 48 (13) All other 32 26 23 119 99 20 ---- ---- ------ ------ Total fees and commissions 106 91 16 387 376 3 Trust and investment services income: Asset management and custody fees 31 31 -- 124 125 (1) Mutual fund management fees 12 10 20 46 37 24 All other 8 7 14 33 28 18 ---- ---- ------ ------ Total trust and investment services income 51 48 6 203 190 7 Investment securities gains -- -- -- 8 -- -- Income from equity investments accounted for by the: Equity method 7 4 75 31 24 29 Cost method 14 20 (30) 31 42 (26) Check printing charges 10 10 -- 40 38 5 Gains (losses) from dispositions of operations (15) 7 -- (5) (28) (82) All other 3 3 -- 32 28 14 ---- ---- ------ ------ Total $294 $295 -- % $1,200 $1,093 10 % ==== ==== === ====== ====== === - -----------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE - ----------------------------------------------------------------------------------------------------------------------------- Quarter Year ended December 31, % ended December 31, % ----------------- ----------------- (in millions) 1994 1993 Change 1994 1993 Change - ----------------------------------------------------------------------------------------------------------------------------- Salaries $171 $171 -- % $ 671 $ 684 (2)% Incentive compensation 49 41 20 155 109 42 Employee benefits 48 48 -- 201 213 (6) Net occupancy 54 58 (7) 215 224 (4) Equipment 54 44 23 174 148 18 Federal deposit insurance 25 28 (11) 101 114 (11) Contract services 30 20 50 101 61 66 Advertising and promotion 21 15 40 65 59 10 Certain identifiable intangibles 15 17 (12) 62 77 (19) Operating losses 21 16 31 62 52 19 Telecommunications 14 11 27 49 44 11 Postage 11 10 10 44 43 2 Goodwill 9 9 -- 36 37 (3) Outside professional services 8 11 (27) 33 42 (21) Stationery and supplies 8 8 -- 30 31 (3) Travel and entertainment 8 8 -- 30 28 7 Check printing 6 9 (33) 29 34 (15) Security 5 5 -- 20 19 5 Escrow and collection agency fees 4 5 (20) 19 24 (21) Outside data processing 3 3 -- 10 16 (38) Foreclosed assets 2 10 (80) -- 60 (100) All other 11 10 10 49 43 14 ---- ---- ------ ------ Total $577 $557 4 % $2,156 $2,162 -- % ==== ==== === ====== ====== === - -----------------------------------------------------------------------------------------------------------------------------
-12- Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1) ------------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, --------------------------------------------------------- 1994 1993 --------------------------- --------------------------- INTEREST Interest AVERAGE YIELDS/ INCOME/ Average Yields/ income/ (in millions) BALANCE RATES EXPENSE balance rates expense ------------------------------------------------------------------------------------------------------------------------ EARNING ASSETS Investment securities: At cost: (1) U.S. Treasury securities $ 1,821 4.65% $ 21 $ 2,366 4.84% $ 29 Securities of U.S. government agencies (2) and corporations 5,488 6.03 83 8,306 6.38 132 (3) Private collateralized mortgage obligations 1,319 5.74 19 1,737 3.25 14 (4) Other securities 129 5.89 2 193 5.70 3 ------- ---- ------- ---- (5) Total investment securities at cost 8,757 5.70 125 12,602 5.65 178 At fair value (2): (6) U.S. Treasury securities 365 6.63 6 -- -- -- Securities of U.S. government agencies (7) and corporations 1,412 5.67 22 -- -- -- (8) Private collateralized mortgage obligations 1,198 6.20 20 -- -- -- (9) Other securities 81 14.21 1 -- -- -- ------- ---- ------- ---- (10) Total investment securities at fair value 3,056 6.10 49 -- -- -- ------- ---- ------- ---- (11) Total investment securities 11,813 5.80 174 12,602 5.65 178 Federal funds sold and securities purchased (12) under resale agreements 46 5.04 1 1,009 3.13 8 Loans: (13) Commercial 7,653 9.35 180 6,701 9.60 162 (14) Real estate 1-4 family first mortgage 8,939 6.91 155 7,150 7.36 132 (15) Other real estate mortgage 8,056 9.06 183 8,829 8.70 193 (16) Real estate construction 973 10.06 25 1,173 8.11 24 Consumer: (17) Real estate 1-4 family junior lien mortgage 3,333 8.30 69 3,686 6.76 62 (18) Credit card 2,910 15.50 113 2,509 15.52 98 (19) Other revolving credit and monthly payment 2,126 10.06 54 1,867 9.49 45 ------- ---- ------- ---- (20) Total consumer 8,369 11.25 236 8,062 10.12 205 (21) Lease financing 1,315 8.94 29 1,208 9.59 29 (22) Foreign 21 -- -- 26 -- -- ------- ---- ------- ---- (23) Total loans 35,326 9.12 808 33,149 8.95 745 (24) Other 57 5.64 1 -- -- -- ------- ---- ------- ---- (25) Total earning assets $47,242 8.27 984 $46,760 7.93 931 ======= ---- ======= ---- FUNDING SOURCES Interest-bearing liabilities: Deposits: (26) Interest-bearing checking $ 4,515 .98 11 $ 4,678 .99 12 (27) Savings deposits 2,449 1.99 12 2,589 1.99 13 (28) Market rate savings 15,099 2.61 100 17,115 2.19 95 (29) Savings certificates 7,054 4.52 80 7,307 4.29 79 (30) Certificates of deposit 209 7.79 4 211 7.91 5 (31) Other time deposits 87 6.61 1 106 6.61 1 (32) Deposits in foreign offices 1,639 5.29 22 5 -- -- ------- ---- ------- ---- (33) Total interest-bearing deposits 31,052 2.94 230 32,011 2.53 205 Federal funds purchased and securities sold (34) under repurchase agreements 3,483 5.15 46 927 2.76 6 (35) Commercial paper and other short-term borrowings 358 4.95 4 201 2.92 1 (36) Senior debt 1,578 6.18 25 2,180 4.48 25 (37) Subordinated debt 1,461 6.30 23 2,058 5.39 28 ------- ---- ------- ---- (38) Total interest-bearing liabilities 37,932 3.43 328 37,377 2.81 265 (39) Portion of noninterest-bearing funding sources 9,310 -- -- 9,383 -- -- ------- ---- ------- ---- (40) Total funding sources $47,242 2.74 328 $46,760 2.24 265 ======= ---- ======= ---- NET INTEREST MARGIN AND NET INTEREST INCOME ON (41) A TAXABLE-EQUIVALENT BASIS (3) 5.53% $656 5.69% $666 ===== ==== ===== ==== NONINTEREST-EARNING ASSETS (42) Cash and due from banks $ 2,680 $ 2,546 (43) Other 2,168 2,291 ------- ------- Total noninterest-earning assets $ 4,848 $ 4,837 ======= ======= NONINTEREST-BEARING FUNDING SOURCES (44) Deposits $ 9,190 $ 9,002 (45) Other liabilities 1,084 1,034 (46) Preferred stockholders' equity 489 639 (47) Common stockholders' equity 3,395 3,545 Noninterest-bearing funding sources used to (48) fund earning assets (9,310) (9,383) ------- ------- (49) Net noninterest-bearing funding sources $ 4,848 $ 4,837 ======= ======= (50) TOTAL ASSETS $52,090 $51,597 ======= ======= -------------------------------------------------------------------------------------------------------------------------- (1) The average prime rate of Wells Fargo Bank was 8.13% and 6.00% for the quarters ended December 31, 1994 and 1993, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.97% and 3.42% for the same quarters, respectively. (2) Yields are based on amortized cost balances, which totaled $3,200 million for the quarter ended December 31, 1994. (3) Includes taxable-equivalent adjustments that primarily relate to income on certain loans and securities that is exempt from federal and applicable state income taxes. The federal statutory tax rate was 35% for the quarters ended December 31, 1994 and 1993.
-13- Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1) ------------------------------------------------------------------------------------------------------------------------ Year ended December 31, --------------------------------------------------------- 1994 1993 --------------------------- --------------------------- INTEREST Interest AVERAGE YIELDS/ INCOME/ Average Yields/ income/ (in millions) BALANCE RATES EXPENSE balance rates expense ------------------------------------------------------------------------------------------------------------------------ EARNING ASSETS Investment securities: At cost: (1) U.S. Treasury securities $ 2,376 4.77% $ 113 $ 2,283 5.03% $ 115 Securities of U.S. government agencies (2) and corporations 5,902 6.05 357 7,974 6.41 511 (3) Private collateralized mortgage obligations 1,242 5.74 71 864 4.16 36 (4) Other securities 133 5.75 8 189 5.67 11 ------- ------ ------- ------ (5) Total investment securities at cost 9,653 5.69 549 11,310 5.95 673 At fair value (2): (6) U.S. Treasury securities 190 6.66 13 -- -- -- Securities of U.S. government agencies (7) and corporations 1,547 5.82 93 -- -- -- (8) Private collateralized mortgage obligations 1,240 6.14 80 -- -- -- (9) Other securities 76 14.13 6 -- -- -- ------- ------ ------- ------ (10) Total investment securities at fair value 3,053 6.12 192 -- -- -- ------- ------ ------- ------ (11) Total investment securities 12,706 5.79 741 11,310 5.95 673 Federal funds sold and securities purchased (12) under resale agreements 189 3.51 7 734 3.17 23 Loans: (13) Commercial 7,092 9.19 652 7,154 9.36 670 (14) Real estate 1-4 family first mortgage 8,484 6.85 581 6,787 7.92 538 (15) Other real estate mortgage 8,071 8.68 700 9,467 8.20 776 (16) Real estate construction 977 9.29 91 1,303 8.50 111 Consumer: (17) Real estate 1-4 family junior lien mortgage 3,387 7.75 262 3,916 6.97 273 (18) Credit card 2,703 15.39 416 2,587 15.62 404 (19) Other revolving credit and monthly payment 2,023 9.60 194 1,893 9.45 179 ------- ------ ------- ------ (20) Total consumer 8,113 10.75 872 8,396 10.19 856 (21) Lease financing 1,271 9.16 116 1,190 9.83 117 (22) Foreign 31 5.06 2 7 -- -- ------- ------ ------- ------ (23) Total loans 34,039 8.85 3,014 34,304 8.94 3,068 (24) Other 54 5.89 3 -- -- -- ------- ------ ------- ------ (25) Total earning assets $46,988 8.00 3,765 $46,348 8.12 3,764 ======= ------ ======= ------ FUNDING SOURCES Interest-bearing liabilities: Deposits: (26) Interest-bearing checking $ 4,622 .98 45 $ 4,626 1.18 55 (27) Savings deposits 2,541 1.99 51 2,741 2.19 60 (28) Market rate savings 16,380 2.39 391 16,592 2.28 378 (29) Savings certificates 7,030 4.28 301 7,948 4.37 347 (30) Certificates of deposit 206 7.70 16 219 7.99 18 (31) Other time deposits 98 6.61 6 112 5.62 6 (32) Deposits in foreign offices 925 4.75 44 7 -- -- ------- ------ ------- ------ (33) Total interest-bearing deposits 31,802 2.69 854 32,245 2.68 864 Federal funds purchased and securities sold (34) under repurchase agreements 2,223 4.45 99 1,051 2.79 29 (35) Commercial paper and other short-term borrowings 224 4.25 10 207 2.90 6 (36) Senior debt 1,930 5.29 102 2,174 4.75 103 (37) Subordinated debt 1,510 5.94 90 1,958 5.23 103 ------- ------ ------- ------ (38) Total interest-bearing liabilities 37,689 3.06 1,155 37,635 2.93 1,105 (39) Portion of noninterest-bearing funding sources 9,299 -- -- 8,713 -- -- ------- ------ ------- ------ (40) Total funding sources $46,988 2.45 1,155 $46,348 2.38 1,105 ======= ------ ======= ------ Net interest margin and net interest income on (41) a taxable-equivalent basis (3) 5.55% $2,610 5.74% $2,659 ===== ====== ===== ====== NONINTEREST-EARNING ASSETS (42) Cash and due from banks $ 2,618 $ 2,456 (43) Other 2,243 2,306 ------- ------- Total noninterest-earning assets $ 4,861 $ 4,762 ======= ======= NONINTEREST-BEARING FUNDING SOURCES (44) Deposits $ 9,019 $ 8,482 (45) Other liabilities 1,062 997 (46) Preferred stockholders' equity 521 639 (47) Common stockholders' equity 3,558 3,357 Noninterest-bearing funding sources used to (48) fund earning assets (9,299) (8,713) ------- ------- (49) Net noninterest-bearing funding sources $ 4,861 $ 4,762 ======= ======= (50) TOTAL ASSETS $51,849 $51,110 ======= ======= ------------------------------------------------------------------------------------------------------------------------ (1) The average prime rate of Wells Fargo Bank was 7.14% and 6.00% for the years ended December 31, 1994 and 1993, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 4.75% and 3.29% for the same years, respectively. (2) Yields are based on amortized cost balances, which totaled $3,131 million for the year ended December 31, 1994. (3) Includes taxable-equivalent adjustments that primarily relate to income on certain loans and securities that is exempt from federal and applicable state income taxes. The federal statutory tax rate was 35% for the years ended December 31, 1994 and 1993.
FOR IMMEDIATE RELEASE - --------------------- Tues., Jan. 17, 1995 WELLS FARGO ISSUES DIVIDEND ON COMMON STOCK The Board of Directors of Wells Fargo & Co. (NYSE:WFC) declared a regular quarterly dividend on common stock of $1.15 per share. The dividend will be payable Feb. 21, 1995 to shareholders of record at the close of business Jan. 31, 1995. -----END PRIVACY-ENHANCED MESSAGE-----