-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DvNflhXrGJQHiLsQOSseCL5vksWMpORlpk7a2B7E/ZO3jHJn4Gey2SOQGG5lxNqq xE9YHE9U5OkaB3tYJS0Ojw== 0000912057-95-008666.txt : 19951018 0000912057-95-008666.hdr.sgml : 19951018 ACCESSION NUMBER: 0000912057-95-008666 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19951017 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951017 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: 95581222 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 FORM 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): October 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 is a Press Release announcing Wells Fargo & Company's financial results for the quarter ended September 30, 1995. Final financial statements with additional analyses will be filed as part of the Company's Form 10-Q in November 1995. Item 7: FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 27 Financial Data Schedule 99 Copy of the Press Release announcing Wells Fargo & Company's financial results for the quarter ended September 30, 1995. 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 October 17, 1995. WELLS FARGO & COMPANY By: /s/ FRANK A. MOESLEIN ---------------------- Frank A. Moeslein Executive Vice President and Controller EX-27 2 FINANCIAL DATA SCHEDULE
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 8-K DATED OCTOBER 17, 1995 FOR THE PERIOD ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION. 1,000,000 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 3,183 0 52 0 2,476 6,960 6,903 34,298 1,872 49,934 38,948 2,971 1,038 3,020 237 0 489 3,148 49,934 2,536 460 2 3,074 750 1,087 1,987 0 (15) 1,638 1,239 726 0 0 726 14.14 0 5.72 586 0 14 0 2,082 295 85 1,872 0 0 0
EX-99 3 EXHIBIT 99 FOR IMMEDIATE RELEASE - --------------------- Tues., October 17, 1995 WELLS FARGO REPORTS THIRD QUARTER PER SHARE EARNINGS OF $5.23 VS. $3.86 A YEAR AGO Wells Fargo & Co. (NYSE:WFC) today reported third quarter 1995 per share earnings of $5.23, compared with $3.86 in the third quarter of 1994, an increase of 35 percent. Net income for the third quarter of 1995 was $261 million, compared with $217 million for the third quarter of 1994, an increase of 20 percent. 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. Third quarter 1995 results were higher than a year ago substantially due to a zero loan loss provision compared with $50 million in the third quarter of 1994 and an increase in noninterest income of $32 million. Return on average assets (ROA) was 2.07 percent and return on average common equity (ROE) was 30.13 percent in the third quarter of 1995. In the year-ago period, ROA was 1.65 percent and ROE was 22.99 percent. "We are pleased with the sustained growth of our loan portfolio and the broad-based expansion of fee income," said Chairman Paul Hazen. Net interest income on a taxable-equivalent basis was $663 million in the third quarter of 1995, up slightly from $656 million a year ago. The company's net interest margin for the third quarter of 1995 was 5.90 percent, compared with 5.53 percent in the same quarter of 1994. The increase in the margin was largely attributable to changes in the spread between loans and deposits. -more- 2/WF Earnings Noninterest income in the third quarter of 1995 was $339 million, up 10% from $307 million in the same quarter of 1994, reflecting an overall increase in fee-based products and services. Noninterest expense in the third quarter of 1995 was $542 million, up 2 percent from $531 million in the same quarter of 1994. Noninterest expense benefited from a $23 million refund received from the FDIC for the period June 1 through September 30, 1995. Net charge-offs in the third quarter of 1995 totaled $75 million, or .86 percent of average loans (annualized). The largest category of net charge-offs was credit card loans ($52 million), partially reflecting a 36 percent increase in the portfolio since the third quarter of 1994. For the third quarter of 1994, net charge-offs totaled $60 million, or .69 percent of average loans (annualized). The largest category of net charge-offs in that period was also credit card loans ($29 million). At September 30, 1995, the allowance for loan losses equaled 5.46 percent of total loans (excluding mortgage loans held for sale), compared with 5.74 percent at June 30, 1995 and 6.04 percent at September 30, 1994. At September 30, 1995, total nonaccrual and restructured loans were $600 million, compared with $644 million at June 30, 1995 and $641 million at September 30, 1994. Foreclosed assets were $214 million at September 30, 1995, compared with $224 million at June 30, 1995 and $306 million at September 30, 1994. At September 30, 1995, the company's preliminary risk-based capital ratios were 12.25 percent for total risk-based capital and 8.55 percent for Tier 1 risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and 4 percent, respectively. At June 30, 1995, these risk-based capital ratios were 12.48 percent and 8.60 percent, respectively. The decrease in total and Tier 1 risk-based capital ratios between June 30, 1995 and September 30, 1995 resulted primarily from the repurchase of 1.2 million shares of common stock during the quarter. At September 30, 1994, the company's total risk-based capital ratio was 13.93 percent and the Tier 1 risk-based capital ratio was 9.62 percent. The ratio of common equity to total assets at September 30, 1995 was 6.78 percent, compared with 6.62 percent at June 30, 1995 and 6.77 percent at September 30, 1994. ### - 3 - Wells Earnings
Wells Fargo & Company and Subsidiaries SUMMARY FINANCIAL DATA -- NEWS RELEASE - ------------------------------------------------------------------------------------------------------------------------------------ % Change Quarter ended Sept. 30, 1995 from Nine months ended -------------------------------- ------------------- ------------------ SEPT. 30, June 30, Sept. 30, June 30, Sept. 30, SEPT. 30, Sept. 30, % (in millions) 1995 1995 1994 1995 1994 1995 1994 Change - ----------------------------------------------------------------------------------------------------------------------------------- FOR THE PERIOD Net income $ 261 $ 232 $ 217 13% 20% $ 726 $ 625 16% Per common share Net income $ 5.23 $ 4.51 $ 3.86 16 35 $ 14.14 $ 10.83 31 Dividends declared 1.15 1.15 1.00 -- 15 3.45 3.00 15 Average common shares outstanding 47.9 49.1 53.6 (2) (11) 49.2 54.7 (10) Profitability ratios (annualized) Net income to average total assets (ROA) 2.07% 1.81% 1.65% 14 25 1.89% 1.61% 17 Net income applicable to common stock to average common stockholders' equity (ROE) 30.13 26.71 22.99 13 31 27.91 21.91 27 Efficiency ratio (1) 54.1% 57.8% 55.1% (6) (2) 56.9% 55.3% 3 Average loans $ 34,103 $ 33,202 $ 34,325 3 (1) $ 34,538 $ 33,607 3 Average assets 50,062 51,491 52,061 (3) (4) 51,306 51,768 (1) Average core deposits 36,618 36,226 39,466 1 (7) 36,515 40,025 (9) Net interest margin 5.90% 5.66% 5.53% 4 7 5.72% 5.55% 3 Average staff (full-time equivalent) 19,651 19,403 19,705 1 -- 19,516 19,596 -- AT PERIOD END Investment securities $ 9,436 $ 10,135 $ 12,260 (7) (23) $ 9,436 $ 12,260 (23) Loans (2) 34,298 33,896 34,951 1 (2) 34,298 34,951 (2) Allowance for loan losses 1,872 1,947 2,110 (4) (11) 1,872 2,110 (11) Assets 49,934 50,931 52,164 (2) (4) 49,934 52,164 (4) Core deposits 37,151 37,026 39,097 -- (5) 37,151 39,097 (5) Common stockholders' equity 3,385 3,373 3,533 -- (4) 3,385 3,533 (4) Stockholders' equity 3,874 3,862 4,022 -- (4) 3,874 4,022 (4) Capital ratios Common stockholders' equity to assets 6.78% 6.62% 6.77% 2 -- 6.78% 6.77% -- Stockholders' equity to assets 7.76 7.58 7.71 2 1 7.76 7.71 1 Risk-based capital (3) Tier 1 capital 8.55 8.60 9.62 (1) (11) 8.55 9.62 (11) Total capital 12.25 12.48 13.93 (2) (12) 12.25 13.93 (12) Leverage (3) 6.95 6.69 7.01 4 (1) 6.95 7.01 (1) Book value per common share $ 71.32 $ 69.59 $ 66.93 2 7 $ 71.32 $ 66.93 7 COMMON STOCK PRICE High $189 $185-7/8 $160-3/8 2 18 $189 $160-3/8 18 Low 177-3/4 157 145-1/8 13 22 143-3/8 127-5/8 12 Period end 185-5/8 180-1/4 145-1/8 3 28 185-5/8 145-1/8 28 - ------------------------------------------------------------------------------------------------------------------------------------
(1) The efficiency ratio is defined as noninterest expense divided by the total of net interest income and noninterest income. (2) Loans exclude mortgage loans held for sale of $510 million and $1,336 million at September 30, 1995 and June 30, 1995, respectively. (3) The September 30, 1995 ratios are preliminary. - 4 -
Wells Fargo & Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME - ------------------------------------------------------------------------------------------------------------------------- Quarter Nine months ended Sept. 30, ended Sept. 30, ----------------- % ------------------ % (in millions) 1995 1994 Change 1995 1994 Change - ------------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Federal funds sold and securities purchased (1) under resale agreements $ 1 $ 1 --% $ 3 $ 6 (50)% (2) Investment securities 143 185 (23) 460 567 (19) (3) Mortgage loans held for sale 19 -- -- 73 -- -- (4) Loans 855 768 11 2,536 2,206 15 (5) Other 1 -- -- 2 2 -- ----- ----- ------ ------ (6) Total interest income 1,019 954 7 3,074 2,781 11 ----- ----- ------ ------ INTEREST EXPENSE (7) Deposits 254 218 17 750 624 20 Federal funds purchased and securities sold (8) under repurchase agreements 46 28 64 160 54 196 (9) Commercial paper and other short-term borrowings 6 2 200 25 5 400 (10) Senior and subordinated debt 50 49 2 152 144 6 ----- ----- ------ ------ (11) Total interest expense 356 297 20 1,087 827 31 ----- ----- ------ ------ (12) NET INTEREST INCOME 663 657 1 1,987 1,954 2 (13) Provision for loan losses -- 50 (100) -- 170 (100) ----- ----- ------ ------ Net interest income after (14) provision for loan losses 663 607 9 1,987 1,784 11 ----- ----- ------ ------ NONINTEREST INCOME (15) Service charges on deposit accounts 121 119 2 357 355 1 (16) Fees and commissions 112 104 8 316 281 12 (17) Trust and investment services income 63 52 21 176 152 16 (18) Investment securities gains (losses) -- 1 (100) (15) 8 -- (19) Other 43 31 39 56 110 (49) ----- ----- ------ ------ (20) Total noninterest income 339 307 10 890 906 (2) ----- ----- ------ ------ NONINTEREST EXPENSE (21) Salaries 176 172 2 526 500 5 (22) Incentive compensation 33 44 (25) 92 106 (13) (23) Employee benefits 46 50 (8) 147 153 (4) (24) Net occupancy 54 53 2 159 161 (1) (25) Equipment 47 40 18 139 120 16 (26) Federal deposit insurance -- 25 (100) 47 76 (38) (27) Other 186 147 27 528 464 14 ----- ----- ------ ------ (28) Total noninterest expense 542 531 2 1,638 1,580 4 ----- ----- ------ ------ INCOME BEFORE INCOME TAX (29) EXPENSE 460 383 20 1,239 1,110 12 (30) Income tax expense 199 166 20 513 485 6 ----- ----- ------ ------ (31) NET INCOME $ 261 $ 217 20% $ 726 $ 625 16% ----- ----- ---- ------ ------ ---- NET INCOME APPLICABLE TO (32) COMMON STOCK $ 251 $ 207 21% $ 695 $ 592 17% ----- ----- ---- ------ ------ ---- PER COMMON SHARE (33) Net income $5.23 $3.86 35% $14.14 $10.83 31% ----- ----- ---- ------ ------ ---- (34) Dividends declared $1.15 $1.00 15% $ 3.45 $ 3.00 15% ----- ----- ---- ------ ------ ---- (35) Average common shares outstanding 47.9 53.6 (11)% 49.2 54.7 (10)% ----- ----- ---- ------ ------ ---- --------------------------------------------------------------------------------------------------------------------
- 5 -
Wells Fargo & Company and Subsidiaries CONSOLIDATED BALANCE SHEET - ---------------------------------------------------------------------------------------------------------------------------- % Change Sept. 30, 1995 from ------------------- SEPT. 30, Dec. 31, Sept. 30, Dec. 31, Sept.30, (in millions) 1995 1994 1994 1994 1994 - ---------------------------------------------------------------------------------------------------------------------------- ASSETS (1) Cash and due from banks $ 3,183 $ 2,974 $ 2,828 7% 13% Federal funds sold and securities (2) purchased under resale agreements 52 260 36 (80) 44 Investment securities: At cost (estimated fair value $6,903, $8,185 (3) and $8,821) 6,960 8,619 9,120 (19) (24) (4) At fair value 2,476 2,989 3,140 (17) (21) ------- ------- ------- (5) Total investment securities 9,436 11,608 12,260 (19) (23) (6) Mortgage loans held for sale 510 -- -- -- -- (7) Loans 34,298 36,347 34,951 (6) (2) (8) Allowance for loan losses 1,872 2,082 2,110 (10) (11) ------- ------- ------- (9) Net loans 32,426 34,265 32,841 (5) (1) ------- ------- ------- (10) Due from customers on acceptances 83 77 81 8 2 (11) Accrued interest receivable 321 328 313 (2) 3 (12) Premises and equipment, net 873 886 883 (1) (1) (13) Goodwill 391 416 450 (6) (13) (14) Other assets 2,659 2,560 2,472 4 8 ------- ------- ------- (15) Total assets $49,934 $53,374 $52,164 (6)% (4)% ------- ------- ------- ---- ---- LIABILITIES (16) Noninterest-bearing deposits $ 9,627 $10,145 $ 9,447 (5)% 2% (17) Interest-bearing deposits 29,321 32,187 30,553 (9) (4) ------- ------- ------- (18) Total deposits 38,948 42,332 40,000 (8) (3) Federal funds purchased and securities (19) sold under repurchase agreements 2,554 3,022 3,729 (15) (32) (20) Commercial paper and other short-term borrowings 417 189 186 121 124 (21) Acceptances outstanding 83 77 81 8 2 (22) Accrued interest payable 113 60 93 88 22 (23) Other liabilities 925 930 861 (1) 7 (24) Senior debt 1,544 1,393 1,732 11 (11) (25) Subordinated debt 1,476 1,460 1,460 1 1 ------- ------- ------- (26) Total liabilities 46,060 49,463 48,142 (7) (4) ------- ------- ------- STOCKHOLDERS' EQUITY (27) Preferred stock 489 489 489 -- -- Common stock - $5 par value, authorized 150,000,000 shares; issued and outstanding 47,465,721 shares, (28) 51,251,648 shares and 52,790,062 shares 237 256 264 (7) (10) (29) Additional paid-in capital 1,221 871 1,084 40 13 (30) Retained earnings 1,932 2,409 2,256 (20) (14) (31) Cumulative foreign currency translation adjustments (4) (4) (4) -- -- (32) Investment securities valuation allowance (1) (110) (67) (99) (99) ------- ------- ------- (33) Total stockholders' equity 3,874 3,911 4,022 (1) (4) ------- ------- ------- (34) Total liabilities and stockholders' equity $49,934 $53,374 $52,164 (6)% (4)% ------- ------- ------- ----- ---- -----------------------------------------------------------------------------------------------------------------------
- 6 -
Wells Fargo & Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - -------------------------------------------------------------------------------------------------------------- Nine months ended September 30, ------------------------------ (in millions) 1995 1994 - -------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $3,911 $4,315 Net income 726 625 Common stock issued under employee benefit and dividend reinvestment plans 81 36 Preferred stock redeemed -- (150) Common stock repurchased (750) (518) Preferred stock dividends (31) (33) Common stock dividends (172) (165) Change in investment securities valuation allowance 109 (88) ------ ------ BALANCE, END OF PERIOD $3,874 $4,022 ------ ------ - --------------------------------------------------------------------------------------------------------------
LOANS - -------------------------------------------------------------------------------------------------------------- SEPTEMBER 30, December 31, September 30, (in millions) 1995 1994 1994 - -------------------------------------------------------------------------------------------------------------- Commercial (1) $ 9,247 $ 8,162 $ 7,511 Real estate 1-4 family first mortgage (2) 4,496 9,050 8,883 Other real estate mortgage 7,943 8,079 8,040 Real estate construction 1,283 1,013 950 Consumer: Real estate 1-4 family junior lien mortgage 3,365 3,332 3,342 Credit card 3,852 3,125 2,830 Other revolving credit and monthly payment 2,479 2,229 2,071 ------- ------- ------- Total consumer 9,696 8,686 8,243 Lease financing 1,610 1,330 1,300 Foreign 23 27 24 ------- ------- ------- Total loans $34,298 $36,347 $34,951 ------- ------- ------- - --------------------------------------------------------------------------------------------------------------
(1) Includes loans to real estate developers of $455 million, $525 million and $371 million at September 30, 1995, December 31, 1994 and September 30, 1994, respectively. (2) Excludes mortgage loans held for sale at September 30, 1995 of $510 million. - 7 -
Wells Fargo & Company and Subsidiaries CHANGES IN THE ALLOWANCE FOR LOAN LOSSES - ---------------------------------------------------------------------------------------------------------------------- Quarter ended Nine months ended ------------------------------------- --------------------- SEPT. 30, June 30, Sept. 30, SEPT. 30, Sept.30, (in millions) 1995 1995 1994 1995 1994 - ---------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $ 1,947 $ 2,017 $ 2,120 $ 2,082 $ 2,122 Provision for loan losses -- -- 50 -- 170 Loan charge-offs: Commercial (1) (15) (10) (9) (32) (39) Real estate 1-4 family first mortgage (4) (3) (5) (10) (16) Other real estate mortgage (15) (12) (23) (49) (58) Real estate construction (1) (1) (9) (5) (14) Consumer: Real estate 1-4 family junior lien mortgage (5) (4) (5) (12) (20) Credit card (55) (46) (32) (138) (107) Other revolving credit and monthly payment (15) (13) (7) (38) (25) ------- ------- ------- ------- ------- Total consumer (75) (63) (44) (188) (152) Lease financing (4) (3) (3) (11) (11) ------- ------- ------- ------- ------- Total loan charge-offs (114) (92) (93) (295) (290) ------- ------- ------- ------- ------- Loan recoveries: Commercial (2) 17 6 10 31 30 Real estate 1-4 family first mortgage 1 1 2 3 6 Other real estate mortgage 7 7 7 20 19 Real estate construction -- -- 5 1 12 Consumer: Real estate 1-4 family junior lien mortgage 1 1 1 3 3 Credit card 3 3 3 9 15 Other revolving credit and monthly payment 4 3 3 9 8 ------- ------- ------- ------- ------- Total consumer 8 7 7 21 26 Lease financing 6 1 2 9 15 ------- ------- ------- ------- ------- Total loan recoveries 39 22 33 85 108 ------- ------- ------- ------- ------- Total net loan charge-offs (75) (70) (60) (210) (182) ------- ------- ------- ------- ------- BALANCE, END OF PERIOD $ 1,872 $ 1,947 $ 2,110 $ 1,872 $ 2,110 ------- ------- ------- ------- ------- Total net loan charge-offs as a percentage of average loans (annualized) .86% .84% .69% .81% .72% ------- ------- ------- ------- ------- Allowance as a percentage of total loans (3) 5.46% 5.74% 6.04% 5.46% 6.04% ------- ------- ------- ------- ------- - ----------------------------------------------------------------------------------------------------------------------
(1) There were no charge-offs of loans to real estate developers in the quarters ended September 30, 1995, June 30, 1995 and September 30, 1994, respectively, and none and $10 million in the nine months ended September 30, 1995 and 1994, respectively. (2) Includes recoveries from loans to real estate developers of $1 million, $1 million and $2 million for the quarters ended September 30, 1995, June 30, 1995 and September 30, 1994, respectively, and $3 million and $2 million for the nine months ended September 30, 1995 and 1994, respectively. (3) Total loans exclude mortgage loans held for sale at September 30, 1995 and June 30, 1995. - 8 -
Wells Fargo & Company and Subsidiaries NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS - ----------------------------------------------------------------------------------------------------------- SEPT. 30, June 30, March 31, Dec. 31, Sept. 30, (in millions) 1995 1995 1995 1994 1994 - ----------------------------------------------------------------------------------------------------------- Nonaccrual loans: Commercial (1) $ 128 $ 121 $ 79 $ 88 $ 109 Real estate 1-4 family first mortgage 56 64 71 81 76 Other real estate mortgage 335 373 324 328 334 Real estate construction 55 58 77 58 101 Consumer: Real estate 1-4 family junior lien mortgage 11 12 12 11 14 Other revolving credit and monthly payment 1 3 3 1 3 ----- ----- ----- ----- ----- Total nonaccrual loans 586 631 566 567 637 Restructured loans 14 13 15 15 4 ----- ----- ----- ----- ----- Nonaccrual and restructured loans 600 644 581 582 641 As a percentage of total loans (2) 1.8% 1.9% 1.8% 1.6% 1.8% Foreclosed assets 214 224 273 272 306 Real estate investments (3) 13 14 17 17 12 ----- ----- ----- ----- ----- Total nonaccrual and restructured loans and other assets $ 827 $ 882 $ 871 $ 871 $ 959 ----- ----- ----- ----- ----- - -----------------------------------------------------------------------------------------------------------
(1) Includes loans to real estate developers of $23 million, $27 million, $28 million, $30 million and $38 million at September 30, 1995, June 30, 1995, March 31, 1995, December 31, 1994 and September 30, 1994, respectively. (2) Total loans exclude mortgage loans held for sale at September 30, 1995, June 30, 1995 and March 31, 1995. (3) 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 $116 million, $75 million, $64 million, $54 million and $26 million at September 30, 1995, June 30, 1995, March 31, 1995, December 31, 1994 and September 30, 1994, respectively.
QUARTERLY TREND OF CHANGES IN NONACCRUAL LOANS (1) - ----------------------------------------------------------------------------------------------------------- SEPT. 30, June 30, March 31, Dec. 31, Sept. 30, (in millions) 1995 1995 1995 1994 1994 - ----------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF QUARTER $ 631 $ 566 $ 567 $ 637 $ 712 New loans placed on nonaccrual 108 173 127 71 93 Loans purchased -- 1 13 25 -- Charge-offs (27) (18) (28) (25) (38) Payments (83) (49) (55) (61) (71) Transfers to foreclosed assets (29) (19) (36) (18) (14) Loans returned to accrual (14) (23) (24) (62) (45) Other additions -- -- 2 -- -- ----- ----- ----- ----- ----- BALANCE, END OF QUARTER $ 586 $ 631 $ 566 $ 567 $ 637 ----- ----- ----- ----- ----- - -----------------------------------------------------------------------------------------------------------
(1) The September 30, 1995 amounts are preliminary. - 9 - 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 - ----------------------------------------------------------------------------------------------------------------------- SEPTEMBER 30, 1995 -------------------------------------------------------------------- Contractually past due (2): Payments not made (3): 90 days or more past due $ 90 $ 2 $ -- $ 92 Less than 90 days past due 5 -- -- 5 ---- ---- ---- ---- 95 2 -- 97 ---- ---- ---- ---- Payments made (4): 90 days or more past due 228 132 48 408 Less than 90 days past due 38 6 8 52 ---- ---- ---- ---- 266 138 56 460 ---- ---- ---- ---- Total past due 361 140 56 557 Contractually current (5) 225 68 53 346 ---- ---- ---- ---- Total nonaccrual loans $586 $208 $109 $903 ---- ---- ---- ---- - ----------------------------------------------------------------------------------------------------------------------- June 30, 1995 -------------------------------------------------------------------- Contractually past due (2): Payments not made (3): 90 days or more past due $117 $ 3 $ -- $120 Less than 90 days past due 1 -- -- 1 ---- ---- ---- ---- 118 3 -- 121 ---- ---- ---- ---- Payments made (4): 90 days or more past due 215 62 33 310 Less than 90 days past due 83 58 22 163 ---- ---- ---- ---- 298 120 55 473 ---- ---- ---- ---- Total past due 416 123 55 594 Contractually current (5) 215 67 51 333 ---- ---- ---- ---- Total nonaccrual loans $631 $190 $106 $927 ---- ---- ---- ---- - -----------------------------------------------------------------------------------------------------------------------
(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 September 30, 1995 amounts are preliminary. (2) 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 $197 million and $259 million of these loans had some payments made on them during the third and second quarters of 1995, respectively. (5) Current is defined as a loan for which principal and interest are being paid in accordance with the terms of the loan or is less than 30 days past due. 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. - 10 - Wells Fargo & Company and Subsidiaries NONINTEREST INCOME
- ---------------------------------------------------------------------------------------------------------------------------------- Quarter Nine months ended September 30, % ended September 30, % (in millions) 1995 1994 Change 1995 1994 Change - ---------------------------------------------------------------------------------------------------------------------------------- Service charges on deposit accounts $121 $119 2% $357 $355 1% Fees and commissions: Credit card membership and other credit card fees 27 16 69 68 47 45 Debit and credit card merchant fees 17 15 13 48 40 20 Shared ATM network fees 13 11 18 38 31 23 Charges and fees on loans 13 11 18 36 32 13 Mutual fund and annuity sales fees 7 23 (70) 25 44 (43) All other 35 28 25 101 87 16 ---- ---- ---- ---- Total fees and commissions 112 104 8 316 281 12 Trust and investment services income: Asset management and custody fees 33 30 10 96 93 3 Mutual fund management fees 19 12 58 51 34 50 All other 11 10 10 29 25 16 ---- ---- ---- ---- Total trust and investment services income 63 52 21 176 152 16 Investment securities gains (losses) -- 1 (100) (15) 8 -- Income from equity investments accounted for by the: Cost method 9 -- -- 41 17 141 Equity method 11 8 38 31 24 29 Check printing charges 9 10 (10) 29 30 (3) Gains (losses) from dispositions of operations (13) -- -- (22) 10 -- Gains (losses) on sales of loans 19 1 -- (46) 3 -- All other 8 12 (33) 23 26 (12) ---- ---- ---- ---- Total $339 $307 10% $890 $906 (2)% ---- ---- --- ---- ---- ---- - ----------------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
- ---------------------------------------------------------------------------------------------------------------------------------- Quarter Nine months ended September 30, % ended September 30, % (in millions) 1995 1994 Change 1995 1994 Change - ---------------------------------------------------------------------------------------------------------------------------------- Salaries $176 $172 2% $ 526 $ 500 5% Incentive compensation 33 44 (25) 92 106 (13) Employee benefits 46 50 (8) 147 153 (4) Net occupancy 54 53 2 159 161 (1) Equipment 47 40 18 139 120 16 Contract services 40 27 48 104 71 46 Advertising and promotion 18 11 64 49 44 11 Federal deposit insurance -- 25 (100) 47 76 (38) Telecommunications 16 12 33 43 35 23 Certain identifiable intangibles 13 15 (13) 41 47 (13) Operating losses 13 16 (19) 39 41 (5) Postage 13 11 18 39 33 18 Outside professional services 11 6 83 31 25 24 Stationery and supplies 9 7 29 27 22 23 Goodwill 9 9 -- 26 27 (4) Travel and entertainment 9 7 29 26 22 18 Check printing 6 8 (25) 19 23 (17) Security 5 5 -- 15 15 -- Escrow and collection agency fees 3 5 (40) 11 15 (27) Outside data processing 3 2 50 8 7 14 Foreclosed assets 4 (8) -- 2 (2) -- All other 14 14 -- 48 39 23 ---- ---- ------ ------ Total $542 $531 2% $1,638 $1,580 4% ---- ---- --- ------ ------ --- - ----------------------------------------------------------------------------------------------------------------------------------
- 11 - Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
- ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended September 30, ------------------------------------------------------------------------ 1995 1994 -------------------------------- ------------------------------ INTEREST Interest AVERAGE YIELDS/ INCOME/ Average Yields/ income/ (in millions) BALANCE RATES EXPENSE balance rates expense - --------------------------------------------------------------------------------------------------------------------------------- EARNING ASSETS Federal funds sold and securities purchased (1) under resale agreements $ 79 6.32% $ 1 $ 80 4.71% $ 1 Investment securities: At cost: (2) U.S. Treasury securities 1,203 4.89 15 2,382 4.66 28 Securities of U.S. government agencies (3) and corporations 4,663 6.04 70 5,808 6.00 87 (4) Private collateralized mortgage obligations 1,205 5.77 17 1,358 5.74 19 (5) Other securities 161 7.08 3 133 5.72 2 ------- ------ ------- ---- (6) Total investment securities at cost 7,232 5.83 105 9,681 5.63 136 At fair value (2): (7) U.S. Treasury securities 430 6.54 7 293 6.65 5 Securities of U.S. government agencies (8) and corporations 1,008 5.37 14 1,503 5.78 23 (9) Private collateralized mortgage obligations 964 6.27 15 1,245 6.00 20 (10) Other securities 68 14.28 2 67 14.43 1 ------- ------ ------- ---- (11) Total investment securities at fair value 2,470 6.07 38 3,108 6.06 49 ------- ------ ------- ---- (12) Total investment securities 9,702 5.89 143 12,789 5.74 185 (13) Mortgage loans held for sale (2) 963 7.94 19 -- -- -- Loans: (14) Commercial 8,869 9.90 221 7,218 9.20 167 (15) Real estate 1-4 family first mortgage 4,962 7.50 93 8,754 6.80 149 (16) Other real estate mortgage 7,994 9.47 191 7,982 8.74 176 (17) Real estate construction 1,184 10.24 31 969 9.88 24 Consumer: (18) Real estate 1-4 family junior lien mortgage 3,364 8.58 72 3,342 7.84 66 (19) Credit card 3,738 15.56 145 2,744 15.46 106 (20) Other revolving credit and monthly payment 2,445 10.73 67 2,010 9.75 49 ------- ------ ------- ---- (21) Total consumer 9,547 11.87 284 8,096 10.90 221 (22) Lease financing 1,528 9.28 35 1,277 9.15 29 (23) Foreign 19 -- -- 29 -- -- ------- ------ ------- ---- (24) Total loans 34,103 9.98 855 34,325 8.89 766 (25) Other 57 5.82 1 53 5.94 1 ------- ------ ------- ---- (26) Total earning assets $44,904 9.05 1,019 $47,247 8.02 953 ------- ------ ------- ---- FUNDING SOURCES Interest-bearing liabilities: Deposits: (27) Interest-bearing checking $ 4,118 1.00 10 $ 4,585 .98 11 (28) Market rate and other savings 14,970 2.66 100 18,867 2.36 112 (29) Savings certificates 8,398 5.39 114 7,000 4.27 75 (30) Other time deposits 444 6.99 8 298 7.33 6 (31) Deposits in foreign offices 1,464 5.84 22 1,203 4.52 14 ------- ------ ------- ---- (32) Total interest-bearing deposits 29,394 3.43 254 31,953 2.71 218 Federal funds purchased and securities sold (33) under repurchase agreements 3,144 5.77 46 2,427 4.50 28 (34) Commercial paper and other short-term borrowings 442 5.65 6 210 4.31 2 (35) Senior debt 1,555 6.56 26 1,912 5.65 27 (36) Subordinated debt 1,478 6.47 24 1,456 6.07 22 ------- ------ ------- ---- (37) Total interest-bearing liabilities 36,013 3.92 356 37,958 3.11 297 (38) Portion of noninterest-bearing funding sources 8,891 -- -- 9,289 -- -- ------- ------ ------- ---- (39) Total funding sources $44,904 3.15 356 $47,247 2.49 297 ------- ------ ------- ---- NET INTEREST MARGIN AND NET INTEREST INCOME ON (40) A TAXABLE-EQUIVALENT BASIS (3) 5.90% $ 663 5.53% $656 ----- ------ ----- ---- NONINTEREST-EARNING ASSETS (41) Cash and due from banks $ 2,673 $ 2,622 (42) Other 2,485 2,192 ------- ------- Total noninterest-earning assets $ 5,158 $ 4,814 ------- ------- NONINTEREST-BEARING FUNDING SOURCES (43) Deposits $ 9,132 $ 9,014 (44) Other liabilities 1,124 1,031 (45) Preferred stockholders' equity 489 489 (46) Common stockholders' equity 3,304 3,569 Noninterest-bearing funding sources used to (47) fund earning assets (8,891) (9,289) ------- ------- (48) Net noninterest-bearing funding sources $ 5,158 $ 4,814 ------- ------- (49) TOTAL ASSETS $50,062 $52,061 ------- ------- - ----------------------------------------------------------------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.77% and 7.50% for the quarters ended September 30, 1995 and 1994, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.89% and 4.97% for the same quarters, respectively. (2) Yields are based on amortized cost balances. The average balances for investment securities at fair value totaled $2,482 million and $3,203 million for the quarters ended September 30, 1995 and 1994, respectively. The average balance for mortgage loans held for sale totaled $963 million for the quarter ended September 30, 1995. (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 September 30, 1995 and 1994. - 12 -
Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1) - --------------------------------------------------------------------------------------------------------------------------- Nine months ended September 30, ------------------------------------------------------------------ 1995 1994 ---------------------------- ------------------------------ INTEREST Interest AVERAGE YIELDS/ INCOME/ Average Yields/ income/ (in millions) BALANCE RATES EXPENSE - --------------------------------------------------------------------------------------------------------------------------- EARNING ASSETS Federal funds sold and securities purchased (1) under resale agreements $ 64 6.09% $ 3 $ 237 3.41% $ 6 Investment securities: At cost: (2) U.S. Treasury securities 1,438 4.86 52 2,563 4.80 92 Securities of U.S. government agencies (3) and corporations 4,962 6.04 225 6,041 6.05 274 (4) Private collateralized mortgage obligations 1,246 5.85 55 1,216 5.75 52 (5) Other securities 160 6.86 8 135 5.71 6 ------- -------- ------- ------- (6) Total investment securities at cost 7,806 5.81 340 9,955 5.69 424 At fair value (2): (7) U.S. Treasury securities 414 6.64 20 131 6.70 7 Securities of U.S. government agencies (8) and corporations 1,072 5.52 46 1,591 5.87 72 (9) Private collateralized mortgage obligations 1,003 6.35 50 1,255 6.12 60 (10) Other securities 65 14.42 5 74 14.10 4 ------- -------- ------- ------- (11) Total investment securities at fair value 2,554 6.17 121 3,051 6.12 143 ------- -------- ------- ------- (12) Total investment securities 10,360 5.90 461 13,006 5.79 567 (13) Mortgage loans held for sale (2) 1,286 7.46 73 - - - Loans: (14) Commercial 8,455 9.89 626 6,902 9.13 472 (15) Real estate 1-4 family first mortgage 6,341 7.32 348 8,332 6.82 426 (16) Other real estate mortgage 8,058 9.52 574 8,076 8.55 517 (17) Real estate construction 1,092 10.20 83 979 9.03 66 Consumer: (18) Real estate 1-4 family junior lien mortgage 3,347 8.59 216 3,406 7.57 193 (19) Credit card 3,435 15.64 403 2,633 15.36 304 (20) Other revolving credit and monthly payment 2,356 10.58 186 1,989 9.43 140 ------- -------- ------- ------- (21) Total consumer 9,138 11.75 805 8,028 10.58 637 (22) Lease financing 1,429 9.22 99 1,256 9.24 87 (23) Foreign 25 7.58 1 34 4.78 1 ------- -------- ------- ------- (24) Total loans 34,538 9.80 2,536 33,607 8.76 2,206 (25) Other 59 5.57 2 52 5.98 2 ------- -------- ------- ------- (26) Total earning assets $46,307 8.85 3,075 $46,902 7.90 2,781 ------- -------- ------- ------- FUNDING SOURCES Interest-bearing liabilities: Deposits: (27) Interest-bearing checking $ 4,230 1.00 32 $ 4,658 .98 34 (28) Market rate and other savings 15,417 2.59 298 19,384 2.28 331 (29) Savings certificates 7,901 5.20 307 7,021 4.19 220 (30) Other time deposits 415 5.78 18 307 7.32 17 (31) Deposits in foreign offices 2,142 5.93 95 684 4.31 22 ------- -------- ------- ------- (32) Total interest-bearing deposits 30,105 3.33 750 32,054 2.60 624 Federal funds purchased and securities sold (33) under repurchase agreements 3,649 5.88 160 1,798 3.99 54 (34) Commercial paper and other short-term borrowings 582 5.85 26 179 3.78 5 (35) Senior debt 1,568 6.78 80 2,048 5.05 77 (36) Subordinated debt 1,477 6.53 72 1,527 5.83 67 ------- -------- ------- ------- (37) Total interest-bearing liabilities 37,381 3.89 1,088 37,606 2.94 827 (38) Portion of noninterest-bearing funding sources 8,926 - - 9,296 - - ------- -------- ------- ------- (39) Total funding sources $46,307 3.13 1,088 $46,902 2.35 827 ------- -------- ------- ------- NET INTEREST MARGIN AND NET INTEREST INCOME ON (40) A TAXABLE-EQUIVALENT BASIS (3) 5.72% $1,987 5.55% $1,954 ---- ------ ---- ------ NONINTEREST-EARNING ASSETS (41) Cash and due from banks $ 2,621 $ 2,598 (42) Other 2,378 2,268 ------- ------- Total noninterest-earning assets $ 4,999 $ 4,866 ------- ------- NONINTEREST-BEARING FUNDING SOURCES (43) Deposits $ 8,967 $ 8,962 (44) Other liabilities 1,140 1,055 (45) Preferred stockholders' equity 489 532 (46) Common stockholders' equity 3,329 3,613 Noninterest-bearing funding sources used to (47) fund earning assets (8,926) (9,296) ------- ------- (48) Net noninterest-bearing funding sources $4,999 $ 4,866 ------- ------- (49) TOTAL ASSETS $ 51,306 $51,768 ------- ------- - ----------------------------------------------------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.86% and 6.81% for the nine months ended September 30, 1995 and 1994, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 6.10% and 4.34% for the same periods, respectively. (2) Yields are based on amortized cost balances. The average balances for investment securities at fair value totaled $2,617 million and $3,107 million for the nine months ended September 30, 1995 and 1994, respectively. The average balance for mortgage loans held for sale totaled $1,300 million for the nine months ended September 30, 1995. (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 nine months ended September 30, 1995 and 1994. -----END PRIVACY-ENHANCED MESSAGE-----