-----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, NyeUn0MUTk7pFxOacFgkHGIPTsa5NlcPFTjW+J+MOOkL7jdwg6F1a927KDpvZb1S SdUkl1xu7Dgo2ZMPXiZwbg== 0000912057-96-006527.txt : 19960417 0000912057-96-006527.hdr.sgml : 19960417 ACCESSION NUMBER: 0000912057-96-006527 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960416 ITEM INFORMATION: Other events ITEM INFORMATION: Change in fiscal year FILED AS OF DATE: 19960416 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: 96547733 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): April 16, 1996 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 ended March 31, 1996. Final financial statements with additional analyses will be filed as part of the Company's Form 10-Q in May 1996. (2) The Company's share repurchase program and quarterly common stock dividend. Item 7: FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits 27 Financial Data Schedule 99 (a) Copy of the Press Release announcing Wells Fargo & Company's financial results for the quarter ended March 31, 1996. (b) Copy of the Press Release announcing Wells Fargo & Company's share repurchase program and quarterly 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 April 16, 1996. 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 APRIL 16, 1996 FOR THE PERIOD ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION. 1,000,000 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 2,721 0 49 0 8,435 0 0 35,167 1,681 48,978 37,806 2,468 1,276 3,147 0 489 235 3,478 48,978 875 128 3 1,006 241 330 676 0 0 567 463 264 0 0 264 5.39 0 6.18 525 0 12 0 1,794 137 24 1,681 0 0 0
EX-99.(A) 3 EXHIBIT 99(A) Exhibit 99(a) FOR IMMEDIATE RELEASE Tues., April 16, 1996 WELLS FARGO'S FIRST QUARTER EARNINGS INCREASE 13 PERCENT FIRST QUARTER PER SHARE EARNINGS INCREASE 22 PERCENT: $5.39 VS. $4.41 A YEAR AGO Wells Fargo & Co. (NYSE:WFC) today reported net income of $264 million for the first quarter 1996, compared with $233 million for the first quarter of 1995, an increase of 13 percent. Per share earnings for the first quarter of 1996 were $5.39, compared with $4.41 in the first quarter of 1995, an increase of 22 percent. First quarter results were higher than a year ago, reflecting increased noninterest income partially offset by an increase in income taxes. Return on average assets (ROA) was 2.16 percent and return on average common equity (ROE) was 28.34 percent in the first quarter of 1996. In the year-ago period, ROA was 1.80 percent and ROE was 26.89 percent. "Going forward, shareholders will have to focus on cash earnings as a measure of performance because the Company is accounting for the merger with First Interstate as a purchase," said Chairman Paul Hazen. "We will provide a special report to shareholders at the time we report second quarter earnings which details the differences between cash earnings and the way we have traditionally reported earnings." -more- 2/WF Earnings Net interest income on a taxable-equivalent basis was $676 million in the first quarter of 1996, up slightly from $665 million a year ago. The Company's net interest margin for the first quarter of 1996 was 6.18 percent, compared with 5.59 percent in the same quarter of 1995. The increase in the margin was substantially attributable to a favorable change in the mix of earning assets, including reduced levels of lower-yielding securities and single family loans, partially offset by increased rates on consumer deposits. Noninterest income (NII) in the first quarter of 1996 was $354 million, up 46 percent from $242 million in the same quarter of 1995. This increase included an $83 million write-down to the lower of cost or estimated market value in the first quarter of 1995 for certain product types within the real estate 1-4 family first mortgage portfolio that were reclassified to mortgage loans held for sale. Noninterest expense (NIE) in the first quarter of 1996 was $567 million, up 6 percent from $537 million in the same quarter of 1995. The increase included higher contract service expenses as well as higher salaries and equipment expense. This increase was primarily offset by a reduction in federal deposit insurance expense. Net charge-offs in the first quarter of 1996 totaled $113 million, or 1.30 percent of average loans (annualized). The largest category of net charge- offs was credit card loans ($81 million), partially reflecting a 22 percent increase in the credit card loan portfolio since the first quarter of 1995. For the first quarter of 1995, net charge-offs totaled $65 million, or .72 percent of average loans (annualized). The largest category of net charge-offs in that period was also credit card loans ($35 million). At March 31, 1996, the allowance for loan losses equaled 4.78 percent of total loans, compared with 5.04 percent at December 31, 1995 and 6.16 percent at March 31, 1995. At March 31, 1996, total nonaccrual and restructured loans were $537 million, compared with $552 million at December 31, 1995 and $581 million at March 31, 1995. Foreclosed assets were $198 million at March 31, 1996, compared with $186 million at December 31, 1995 and $273 million at March 31, 1995. -more- 3/WF Earnings The Company's effective tax rate for the first quarter of 1996 was 43%, compared with 37% for the first quarter of 1995. The increase in the effective tax rate was related to a $22 million reduction of income tax expense in 1995 related to the settlement with the Internal Revenue Service of certain audit issues pertaining to auto leases. At March 31, 1996, the Company's preliminary risk-based capital ratios were 13.05 percent for total risk-based capital and 9.40 percent for Tier 1 risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and 4 percent, respectively. At December 31, 1995, these risk-based capital ratios were 12.46 percent and 8.81 percent, respectively. At March 31, 1995, the Company's total risk-based capital ratio was 12.78 percent and the Tier 1 risk- based capital ratio was 8.73 percent. The leverage ratio at March 31, 1996 was 7.90 percent, compared with 7.46 percent at December 31, 1995 and 6.61 percent at March 31, 1995. The ratio of common equity to total assets at March 31, 1996 was 7.58 percent, compared with 7.09 percent at December 31, 1995 and 6.40 percent at March 31, 1995. Summary highlights of First Interstate Bancorp's first quarter earnings are included in this release. Earnings for the combined company will be announced at the close of the second quarter of 1996. ### -4- Wells Earnings
Wells Fargo & Company and Subsidiaries SUMMARY FINANCIAL DATA--NEWS RELEASE - ------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------ % Change Quarter ended March 31, 1996 from ------------------------------------ --------------------- MARCH 31, Dec. 31, March 31, Dec. 31, March 31, (in millions) 1996 1995 1995 1995 1995 - ------------------------------------------------------------------------------------------------------------------------ FOR THE QUARTER Net income $ 264 $ 306 $ 233 (14)% 13% Per common share Net income $ 5.39 $ 6.29 $ 4.41 (14) 22 Dividends declared 1.30 1.15 1.15 13 13 Average common shares outstanding 47.0 47.0 50.5 -- (7) Profitability ratios (annualized) Net income to average total assets (ROA) 2.16% 2.47% 1.80% (13) 20 Net income applicable to common stock to average common stockholders' equity (ROE) 28.34 34.98 26.89 (19) 5 Efficiency ratio (1) 55.1% 51.1% 59.1% 8 (7) Average loans $ 35,025 $ 34,423 $ 36,334 2 (4) Average assets 49,134 49,169 52,390 -- (6) Average core deposits 36,819 36,943 36,699 -- -- Net interest margin 6.18% 6.08% 5.59% 2 11 Average staff (full-time equivalent) 19,120 19,535 19,493 (2) (2) AT QUARTER END Investment securities $ 8,435 $ 8,920 $ 10,576 (5) (20) Loans 35,167 35,582 32,737 (1) 7 Allowance for loan losses 1,681 1,794 2,017 (6) (17) Assets 48,978 50,316 52,324 (3) (6) Core deposits 37,414 37,858 36,975 (1) 1 Common stockholders' equity 3,713 3,566 3,351 4 11 Stockholders' equity 4,202 4,055 3,840 4 9 Capital ratios Common stockholders' equity to assets 7.58% 7.09% 6.40% 7 18 Stockholders' equity to assets 8.58 8.06 7.34 6 17 Risk-based capital (2) Tier 1 capital 9.40 8.81 8.73 7 8 Total capital 13.05 12.46 12.78 5 2 Leverage (2) 7.90 7.46 6.61 6 20 Book value per common share $ 79.01 $ 75.93 $ 67.59 4 17 COMMON STOCK PRICE High $ 261-1/4 $ 229 $ 160-5/8 14 63 Low 203-1/8 190 143-3/8 7 42 Quarter end 261-1/4 216 156-3/8 21 67 - ------------------------------------------------------------------------------------------------------------------------
(1) The efficiency ratio is defined as noninterest expense divided by the total of net interest income and noninterest income. (2) The March 31, 1996 ratios are preliminary. -5-
Wells Fargo & Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- Quarter ended March 31, % ----------------------- (in millions) 1996 1995 Change - ----------------------------------------------------------------------------------------------------- INTEREST INCOME Federal funds sold and securities purchased (1) under resale agreements $ 2 $ 1 100% (2)Investment securities 128 165 (22) (3)Loans 875 858 2 (4)Other 1 1 -- ------ ------ (5) Total interest income 1,006 1,025 (2) ------ ------ INTEREST EXPENSE (6)Deposits 241 242 -- Federal funds purchased and securities sold (7) under repurchase agreements 36 56 (36) (8)Commercial paper and other short-term borrowings 5 10 (50) (9)Senior and subordinated debt 48 52 (8) ------ ------ (10) Total interest expense 330 360 (8) ------ ------ (11)NET INTEREST INCOME 676 665 2 ------ ------ (12)Provision for loan losses -- -- -- ------ ------ Net interest income after (13) provision for loan losses 676 665 2 ------ ------ NONINTEREST INCOME (14)Service charges on deposit accounts 122 118 3 (15)Fees and commissions 118 101 17 (16)Trust and investment services income 59 55 7 (17)Investment securities gains (losses) -- (15) 100 (18)Other 55 (17) -- ------ ------ (19) Total noninterest income 354 242 46 ------ ------ NONINTEREST EXPENSE (20)Salaries 181 172 5 (21)Incentive compensation 32 27 19 (22)Employee benefits 54 53 2 (23)Net occupancy 53 53 -- (24)Equipment 55 47 17 (25)Federal deposit insurance 1 24 (96) (26)Other 191 161 19 ------ ------ (27) Total noninterest expense 567 537 6 ------ ------ INCOME BEFORE INCOME TAX (28) EXPENSE 463 370 25 (29)Income tax expense 199 137 45 ------ ------ (30)NET INCOME $ 264 $ 233 13% ------ ------ -- ------ ------ -- NET INCOME APPLICABLE TO (31) COMMON STOCK $ 254 $ 223 14% ------ ------ -- ------ ------ -- PER COMMON SHARE (32)Net income $ 5.39 $ 4.41 22% ------ ------ -- ------ ------ -- (33)Dividends declared $ 1.30 $ 1.15 13% ------ ------ -- ------ ------ -- (34) Average common shares outstanding 47.0 50.5 (7)% ------ ------ -- ------ ------ -- - ------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------
-6-
Wells Fargo & Company and Subsidiaries CONSOLIDATED BALANCE SHEET - ---------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- % Change Mar. 31, 1996 from ------------------ MAR. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31, (in millions) 1996 1995 1995 1995 1995 - ---------------------------------------------------------------------------------------------------------- ASSETS (1) Cash and due from banks $ 2,721 $ 3,375 $ 2,708 (19)% -- % Federal funds sold and securities (2) purchased under resale agreements 49 177 39 (72) 26 Investment securities: (3) At fair value 8,435 8,920 2,403 (5) 251 (4) At cost (estimated fair value $7,928) -- -- 8,173 -- (100) -------- -------- -------- (5) Total investment securities 8,435 8,920 10,576 (5) (20) (6) Mortgage loans held for sale -- -- 3,940 -- (100) (7) Loans 35,167 35,582 32,737 (1) 7 (8) Allowance for loan losses 1,681 1,794 2,017 (6) (17) -------- -------- -------- (9) Net loans 33,486 33,788 30,720 (1) 9 -------- -------- -------- (10) Due from customers on acceptances 79 98 74 (19) 7 (11) Accrued interest receivable 316 308 316 3 -- (12) Premises and equipment, net 859 862 892 -- (4) (13) Goodwill 373 382 408 (2) (9) (14) Other assets 2,660 2,406 2,651 11 -- -------- -------- -------- (15) Total assets $ 48,978 $ 50,316 $ 52,324 (3)% (6)% -------- -------- -------- ---- ---- -------- -------- -------- ---- ---- LIABILITIES (16) Noninterest-bearing deposits $ 9,740 $ 10,391 $ 9,431 (6)% 3 % (17) Interest-bearing deposits 28,066 28,591 29,566 (2) (5) -------- -------- -------- (18) Total deposits 37,806 38,982 38,997 (3) (3) Federal funds purchased and securities (19) sold under repurchase agreements 2,243 2,781 4,770 (19) (53) Commercial paper and other short-term (20) borrowings 225 195 526 15 (57) (21) Acceptances outstanding 79 98 74 (19) 7 (22) Accrued interest payable 110 85 105 29 5 (23) Other liabilities 1,166 1,071 1,074 9 9 (24) Senior debt 1,881 1,783 1,454 5 29 (25) Subordinated debt 1,266 1,266 1,484 -- (15) -------- -------- -------- (26) Total liabilities 44,776 46,261 48,484 (3) (8) -------- -------- -------- STOCKHOLDERS' EQUITY (27) Preferred stock 489 489 489 -- -- Common stock - $5 par value, authorized 150,000,000 shares; issued and outstanding 46,999,455 shares, (28) 46,973,319 shares and 49,579,908 shares 235 235 248 -- (5) (29) Additional paid-in capital 1,136 1,135 590 -- 93 (30) Retained earnings 2,366 2,174 2,572 9 (8) Cumulative foreign currency translation (31) adjustments (4) (4) (4) -- -- (32) Investment securities valuation allowance (20) 26 (55) -- (64) -------- -------- -------- (33) Total stockholders' equity 4,202 4,055 3,840 4 9 -------- -------- -------- Total liabilities and (34) stockholders' equity $ 48,978 $ 50,316 $ 52,324 (3)% (6)% -------- -------- -------- ---- ---- -------- -------- -------- ---- ---- - ----------------------------------------------------------------------------------------------------------
-7- Wells Fargo & Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
- ------------------------------------------------------------------------ - ------------------------------------------------------------------------ Quarter ended March 31, ---------------------- (in millions) 1996 1995 - ------------------------------------------------------------------------ BALANCE, BEGINNING OF QUARTER $ 4,055 $ 3,911 Net income 264 233 Common stock issued under employee benefit and dividend reinvestment plans 7 37 Common stock repurchased (6) (326) Preferred stock dividends (10) (10) Common stock dividends (62) (60) Change in investment securities valuation allowance (46) 55 -------- -------- Balance, end of quarter $ 4,202 $ 3,840 -------- -------- -------- -------- - ------------------------------------------------------------------------
LOANS - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
MARCH 31, December 31, March 31, (in millions) 1996 1995 1995 - ---------------------------------------------------------------------------------- Commercial (1) $ 9,393 $ 9,750 $ 8,348 Real estate 1-4 family first mortgage (2) 4,346 4,448 5,025 Other real estate mortgage 8,274 8,263 8,078 Real estate construction 1,312 1,366 1,036 Consumer: Real estate 1-4 family junior lien mortgage 3,303 3,358 3,312 Credit card 3,928 4,001 3,220 Other revolving credit and monthly payment 2,590 2,576 2,305 -------- -------- -------- Total consumer 9,821 9,935 8,837 Lease financing 1,991 1,789 1,382 Foreign 30 31 31 ------- -------- -------- Total loans $ 35,167 $ 35,582 $ 32,737 -------- -------- -------- -------- -------- -------- - ----------------------------------------------------------------------------------
(1) Includes loans to real estate developers of $576 million, $700 million and $519 million at March 31, 1996, December 31, 1995 and March 31, 1995, respectively. (2) Excludes mortgage loans held for sale at March 31, 1995 of $3,940 million, net of an $83 million write-down to lower of cost or estimated market. -8- Wells Fargo & Company and Subsidiaries CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
- ---------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------- Quarter ended ------------- MARCH 31, December 31, March 31, (in millions) 1996 1995 1995 - ---------------------------------------------------------------------------------- BALANCE, BEGINNING OF QUARTER $ 1,794 $ 1,872 $ 2,082 Loan charge-offs: Commercial (1) (13) (23) (7) Real estate 1-4 family first mortgage (4) (3) (3) Other real estate mortgage (3) (3) (22) Real estate construction (1) (5) (2) Consumer: Real estate 1-4 family junior lien mortgage (4) (4) (3) Credit card (86) (69) (38) Other revolving credit and monthly payment (20) (17) (10) -------- -------- -------- Total consumer (110) (90) (51) Lease financing (6) (4) (4) -------- -------- -------- Total loan charge-offs (137) (128) (89) -------- -------- -------- Loan recoveries: Commercial (2) 5 7 9 Real estate 1-4 family first mortgage 3 -- 1 Other real estate mortgage 4 33 6 Real estate construction 1 -- -- Consumer: Real estate 1-4 family junior lien mortgage 1 1 1 Credit card 5 3 3 Other revolving credit and monthly payment 3 5 2 -------- -------- -------- Total consumer 9 9 6 Lease financing 2 1 2 -------- -------- -------- Total loan recoveries 24 50 24 -------- -------- -------- Total net loan charge-offs (113) (78) (65) -------- -------- -------- Balance, end of quarter $ 1,681 $ 1,794 $ 2,017 -------- -------- -------- -------- -------- -------- Total net loan charge-offs as a percentage of average loans (annualized) (3) 1.30% .90% .72% -------- -------- -------- -------- -------- -------- Allowance as a percentage of total loans (3) 4.78% 5.04% 6.16% -------- -------- -------- -------- -------- -------- - ----------------------------------------------------------------------------------
(1) There were no charge-offs of loans to real estate developers for all periods presented. (2) Includes recoveries from loans to real estate developers of $1 million, $1 million and none in the quarters ended March 31, 1996, December 31, 1995 and March 31, 1995, respectively. (3) Average and total loans exclude first mortgage loans that were reclassified to a held-for-sale category on March 31, 1995 and subsequently sold by year-end 1995. -9-
Wells Fargo & Company and Subsidiaries NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MARCH 31, December 31, March 31, (in millions) 1996 1995 1995 - -------------------------------------------------------------------------------- Nonaccrual loans: Commercial (1) $ 120 $ 112 $ 79 Real estate 1-4 family first mortgage 61 64 71 Other real estate mortgage 289 307 324 Real estate construction 44 46 77 Consumer: Real estate 1-4 family junior lien mortgage 11 8 12 Other revolving credit and monthly payment -- 1 3 ------ ------ ------ Total nonaccrual loans 525 538 566 Restructured loans 12 14 15 ------ ------ ------ Nonaccrual and restructured loans 537 552 581 As a percentage of total loans (2) 1.5% 1.6% 1.8% Foreclosed assets 198 186 273 Real estate investments (3) 7 12 17 ------ ------ ------ Total nonaccrual and restructured loans and other assets $ 742 $ 750 $ 871 ------ ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------
(1) Includes loans to real estate developers of $16 million, $18 million and $28 million at March 31, 1996, December 31, 1995 and March 31, 1995, respectively. (2) Total loans exclude mortgage loans held for sale at 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 $115 million, $95 million and $64 million at March 31, 1996, December 31, 1995 and March 31, 1995, respectively.
QUARTERLY CHANGES IN NONACCRUAL LOANS (1) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MARCH 31, December 31, March 31, (in millions) 1996 1995 1995 - -------------------------------------------------------------------------------- BALANCE, BEGINNING OF QUARTER $ 538 $ 586 $ 567 New loans placed on nonaccrual 113 106 127 Loans purchased -- -- 13 Charge-offs (9) (27) (28) Payments (54) (71) (55) Transfers to foreclosed assets (30) (22) (36) Loans returned to accrual (33) (34) (24) Other additions -- -- 2 ------ ------ ------ BALANCE, END OF QUARTER $ 525 $ 538 $ 566 ------ ------ ------ ------ ------ ------ - --------------------------------------------------------------------------------
(1) The March 31, 1996 amounts are preliminary. -10-
Wells Fargo & Company and Subsidiaries NONINTEREST INCOME - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Quarter ended March 31, % ------------------ (in millions) 1996 1995 Change - -------------------------------------------------------------------------------- Service charges on deposit accounts $ 122 $ 118 3% Fees and commissions: Credit card membership and other credit card fees 26 19 37 Charges and fees on loans 17 11 55 Debit and credit card merchant fees 15 14 7 Shared ATM network fees 13 12 8 Mutual fund and annuity sales fees 8 10 (20) All other 39 35 11 ------ ------ Total fees and commissions 118 101 17 Trust and investment services income: Asset management and custody fees 35 31 13 Mutual fund management fees 21 14 50 All other 3 10 (70) ------ ------ Total trust and investment services income 59 55 7 Investment securities gains (losses) -- (15) 100 Income from equity investments accounted for by the: Cost method 35 19 84 Equity method 2 8 (75) Check printing charges 9 11 (18) Gains (losses) from dispositions of operations 5 (1) -- Gains (losses) on sales of loans 4 (67) -- All other -- 13 (100) ------ ------ Total $ 354 $ 242 46% ------ ------ --- ------ ------ --- - --------------------------------------------------------------------------------
NONINTEREST EXPENSE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Quarter ended March 31, % ------------------ (in millions) 1996 1995 Change - -------------------------------------------------------------------------------- Salaries $ 181 $ 172 5% Incentive compensation 32 27 19 Employee benefits 54 53 2 Equipment 55 47 17 Net occupancy 53 53 -- Contract services 42 25 68 Telecommunications 16 13 23 Postage 15 12 25 Operating losses 14 15 (7) Advertising and promotion 13 14 (7) Outside professional services 13 10 30 Certain identifiable intangibles 12 14 (14) Stationery and supplies 10 9 11 Goodwill 9 9 -- Travel and entertainment 9 7 29 Check printing 7 7 -- Security 6 5 20 Escrow and collection agency fees 4 4 -- Outside data processing 3 3 -- Foreclosed assets 2 (4) -- Federal deposit insurance 1 24 (96) All other 16 18 (11) ------ ------ Total $ 567 $ 537 6% ------ ------ --- ------ ------ --- - --------------------------------------------------------------------------------
-11-
Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1) - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, --------------------------------------------------------- 1996 1995 --------------------------- --------------------------- 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 $ 125 5.68% $ 2 $ 48 5.58% $ 1 Investment securities: At fair value (2): (2) U.S. Treasury securities 1,356 5.52 18 385 6.69 6 Securities of U.S. government agencies (3) and corporations 4,991 5.95 75 1,211 5.75 18 (4) Private collateralized mortgage obligations 2,078 6.05 31 1,090 6.35 20 (5) Other securities 225 7.70 4 65 14.56 1 ------- ----- ------- ----- (6) Total investment securities at fair value 8,650 5.95 128 2,751 6.24 45 At cost: (7) U.S. Treasury securities -- -- -- 1,647 4.83 20 Securities of U.S. government agencies (8) and corporations -- -- -- 5,234 6.03 78 (9) Private collateralized mortgage obligations -- -- -- 1,285 5.92 19 (10) Other securities -- -- -- 164 6.67 3 ------- ----- ------- ----- (11) Total investment securities at cost -- -- -- 8,330 5.79 120 ------- ----- ------- ----- (12) Total investment securities 8,650 5.95 128 11,081 5.90 165 Loans: (13) Commercial 9,308 9.96 231 8,055 9.77 194 (14) Real estate 1-4 family first mortgage 4,400 7.56 83 9,042 7.12 161 (15) Other real estate mortgage 8,197 9.23 188 8,123 9.59 192 (16) Real estate construction 1,327 9.98 33 1,019 10.17 26 Consumer: (17) Real estate 1-4 family junior lien mortgage 3,334 8.50 71 3,323 8.65 72 (18) Credit card 3,933 15.56 153 3,125 15.78 123 (19) Other revolving credit and monthly payment 2,598 11.19 71 2,268 10.42 59 ------- ----- ------- ----- (20) Total consumer 9,865 12.02 295 8,716 11.67 254 (21) Lease financing 1,897 9.20 44 1,351 9.17 31 (22) Foreign 31 6.96 1 28 -- -- ------- ----- ------- ----- (23) Total loans 35,025 10.03 875 36,334 9.51 858 (24)Other 69 6.34 1 58 5.60 1 ------- ----- ------- ----- (25) Total earning assets $43,869 9.21 1,006 $47,521 8.65 1,025 ------- ----- ------- ----- ------- ------- FUNDING SOURCES Interest-bearing liabilities: Deposits: (26) Interest-bearing checking $ 856 .99 2 $ 4,365 1.00 11 (27) Market rate and other savings 17,991 2.52 113 16,121 2.56 101 (28) Savings certificates 8,636 5.24 113 7,346 4.89 89 (29) Other time deposits 341 7.26 6 358 2.45 2 (30) Deposits in foreign offices 524 5.42 7 2,665 5.87 39 ------- ----- ------- ----- (31) Total interest-bearing deposits 28,348 3.41 241 30,855 3.18 242 Federal funds purchased and securities sold (32) under repurchase agreements 2,706 5.36 36 3,887 5.82 56 (33) Commercial paper and other short-term borrowings 405 5.27 5 687 5.89 10 (34) Senior debt 1,710 6.26 26 1,640 6.93 28 (35) Subordinated debt 1,266 6.85 22 1,469 6.60 24 ------- ----- ------- ----- (36) Total interest-bearing liabilities 34,435 3.86 330 38,538 3.78 360 (37)Portion of noninterest-bearing funding sources 9,434 -- -- 8,983 -- -- ------- ----- ------- ----- (38) Total funding sources $43,869 3.03 330 $47,521 3.06 360 ------- ----- ------- ----- ------- ------- NET INTEREST MARGIN AND NET INTEREST INCOME ON (39) A TAXABLE-EQUIVALENT BASIS (3) 6.18% $ 676 5.59% $ 665 ---- ----- ---- ----- ---- ----- ---- ----- NONINTEREST-EARNING ASSETS (40)Cash and due from banks $ 2,873 $ 2,587 (41)Other 2,392 2,282 ------- ------- Total noninterest-earning assets $ 5,265 $ 4,869 ------- ------- ------- ------- NONINTEREST-BEARING FUNDING SOURCES (42)Deposits $ 9,336 $ 8,867 (43)Other liabilities 1,277 1,141 (44)Preferred stockholders' equity 489 489 (45)Common stockholders' equity 3,597 3,355 Noninterest-bearing funding sources used to (46) fund earning assets (9,434) (8,983) ------- ------- ------- ------- (47) Net noninterest-bearing funding sources $ 5,265 $ 4,869 ------- ------- ------- ------- (48)TOTAL ASSETS $49,134 $52,390 ------- ------- ------- -------
----------------------------------------------------------------------------- ----------------------------------------------------------------------------- (1) The average prime rate of Wells Fargo Bank was 8.33% and 8.83% for the quarters ended March 31, 1996 and 1995, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 5.40% and 6.29% for the same quarters, respectively. (2) Yields are based on amortized cost balances. The average amortized cost balances for investment securities at fair value totaled $8,614 million and $2,880 million for the quarters ended March 31, 1996 and 1995, respectively. (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 March 31, 1996 and 1995. - 12 -
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUMMARY OF FIRST QUARTER RESULTS FIRST INTERSTATE BANCORP - -------------------------------------------------------------------------------- 1996 1995 (dollar amounts in millions, except --------- --------- per share data) March 31 March 31 - -------------------------------------------------------------------------------- First Quarter Net Income (Loss) $ (22.5) $ 212.0 Per share (0.39) 2.66 Net interest income* 618.1 637.5 Noninterest income 304.8 268.4 Noninterest expense 807.7 551.7 Provision for credit losses - - Net chargeoffs 33.5 37.2 Return on assets (0.17)% 1.52 % Return on equity (common equity) (3.29)% 25.80 % Net interest margin* 5.46 % 5.31 % Balance Sheet Total Assets $ 54,593 $ 56,956 Total Deposits 47,410 48,364 Total Loans (net of unearned interest and fees) 35,578 35,096 Nonperforming assets (nonaccrual and renegotiated loans and ORE) 255 262 Allowance for credit losses 770 921 Nonperforming assets/total assets 0.47 % 0.46 % Nonperforming assets/loans + ORE 0.72 % 0.75 % Nonperforming loans/loans 0.57 % 0.54 % Allowance/nonperforming loans 383 % 490 % Allowance for credit losses/total loans 2.17 % 2.62 % Leverage capital ratio (1996 estimated) 6.4 % 5.24 % Tier 1 capital ratio (1996 estimated) 7.9 % 6.91 % Total capital ratio (1996 estimated) 10.8 % 10.05 % - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
* Taxable-equivalent basis ### - 13 -
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF OPERATIONS FIRST INTERSTATE BANCORP - -------------------------------------------------------------------------------- 1996 1995 ---------- ----------- (dollar amounts in millions, First First except per share data) Quarter Quarter - -------------------------------------------------------------------------------- INTEREST INCOME Loans, including fees $ 748.7 $ 730.5 Trading account 2.0 1.6 Investment Securities: Held-to-maturity securities 1.5 177.4 Available-for-sale securities 122.0 5.1 Other interest income 12.3 6.9 ----------- ----------- Total Interest Income 886.5 921.5 INTEREST EXPENSE Deposits 241.4 225.2 Short term borrowings 4.9 35.2 Long term debt 27.0 29.4 ----------- ----------- Total Interest Expense 273.3 289.8 ----------- ----------- NET INTEREST INCOME 613.2 631.7 Provision for credit losses - - ----------- ----------- NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 613.2 631.7 NONINTEREST INCOME Service charges on deposit accounts 150.2 147.1 Trust fees 41.2 39.4 Other charges, commissions and fees 50.0 34.0 Merchant credit card fees 13.2 12.3 Investment securities gains 4.7 0.5 Other income 45.5 35.1 ----------- ----------- Total Noninterest Income 304.8 268.4 NONINTEREST EXPENSES Salaries and benefits 274.0 273.4 Net occupancy expenses 102.9 100.1 Communications 40.8 33.9 Outside contract fees 36.9 34.0 FDIC assessments 2.4 27.9 Amortization of intangibles 15.1 14.9 Office supplies 9.8 14.0 Advertising 12.4 10.1 Other real estate (2.1) - Restructuring - 4.8 Merger related 251.3 - Other expenses 64.2 38.6 ----------- ----------- Total Noninterest Expenses 807.7 551.7 ----------- ----------- INCOME BEFORE INCOME TAXES 110.3 348.4 Applicable income taxes 132.8 136.4 ----------- ----------- NET INCOME (LOSS) $ (22.5) $ 212.0 ----------- ----------- ----------- ----------- - -------------------------------------------------------------------------------- Net income (loss) applicable to common stock $ (30.8) $ 203.7 Average number of common shares outstanding (in thousands) 78,212 76,464 Earnings per common share: Net (loss) income $ (0.39) $ 2.66 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
NOTE: Certain prior year balances have been reclassified to conform to current year classifications. - 14 -
- ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED BALANCE SHEET FIRST INTERSTATE BANCORP - ------------------------------------------------------------------------------------------------------------------------------------ 1996 1995 ----------- -------------------------------- (dollar amounts in millions) March 31 December 31 March 31 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Cash and due from banks $ 6,016 $ 7,129 $ 6,230 Time deposits, due from banks 14 14 27 Federal funds sold and securities purchased under agreements to resell 2,074 1,774 265 Trading account securities 150 54 52 Investment Securities: Held-to-maturity securities 88 88 12,204 Available-for-sale securities 7,676 9,010 127 ------------ ------------ ------------ Total Investment Securities 7,764 9,098 12,331 Loans (net) 35,578 36,673 35,096 Less: Allowance for credit losses 770 804 921 ------------ ------------ ------------ Net Loans 34,808 35,869 34,175 Bank premises and equipment 1,258 1,282 1,199 Customers' liability for acceptances 128 94 31 Other assets 2,381 2,757 2,646 ------------ ------------ ------------ Total Assets $ 54,593 $ 58,071 $ 56,956 ------------ ------------ ------------ ------------ ------------ ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest bearing $ 16,817 $ 19,083 $ 16,644 Interest bearing 30,593 31,102 31,720 ------------ ------------ ------------ Total Deposits 47,410 50,185 48,364 Short term borrowings 346 1,194 2,361 Acceptances outstanding 128 94 31 Accounts payable and accrued liabilities 1,332 1,089 1,037 Long term debt 1,234 1,355 1,470 ------------ ------------ ------------ Total Liabilities 50,450 53,917 53,263 Shareholders' equity: Preferred Stock 350 350 350 Common Stock, par value $2 a share: (in thousands) Authorized: 250,000 shares; Issued: 84,286 shares 169 169 169 Capital surplus 1,639 1,682 1,683 Retained earnings 2,493 2,583 2,113 Unrealized gain (loss) on available-for-sale securities, net of tax (28) 6 1 ------------ ------------ ------------ 4,623 4,790 4,316 Less Common Stock in treasury, at cost: (in thousands) March 31, 1996 - 6,304 shares December 31, 1995 - 8,357 shares March 31, 1995 - 8,452 shares 480 636 623 ------------ ------------ ------------ Total Shareholders' Equity 4,143 4,154 3,693 ------------ ------------ ------------ Total Liabilities and Shareholders' Equity $ 54,593 $ 58,071 $ 56,956 ------------ ------------ ------------ ------------ ------------ ------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ LOANS AND DEPOSITS FIRST INTERSTATE BANCORP - ------------------------------------------------------------------------------------------------------------------------------------ 1996 1995 ----------- -------------------------------- (dollar amounts in millions) March 31 December 31 March 31 - ------------------------------------------------------------------------------------------------------------------------------------ LOANS: Commercial, financial and agricultural $ 10,128 $ 10,917 $ 9,636 Real estate construction 1,071 1,063 1,080 Real estate mortgage 10,871 11,211 11,458 Instalment 12,860 12,854 12,400 Foreign 185 185 160 Lease financing 597 587 516 ------------ ------------ ------------ Total Loans 35,712 36,817 35,250 Unearned income and deferred fees (134) (144) (154) ------------ ------------ ------------ Net Loans $ 35,578 $ 36,673 $ 35,096 ------------ ------------ ------------ ------------ ------------ ------------ DEPOSITS: Demand and other noninterest bearing time deposits $ 16,817 $ 19,083 $ 16,644 Regular savings 5,336 5,359 5,994 Market interest demand 6,313 6,479 6,689 Market interest savings 10,018 9,948 10,657 Other savings and time under $100,000 7,578 8,039 7,213 Large CDs, other money market funds 1,348 1,277 1,167 ------------ ------------ ------------ Total Deposits $ 47,410 $ 50,185 $ 48,364 ------------ ------------ ------------ ------------ ------------ ------------ - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------
EX-99.(B) 4 EXHIBIT 99(B) Exhibit 99(b) FOR IMMEDIATE RELEASE Tues., April 16, 1996 WELLS FARGO ANNOUNCES SHARE REPURCHASE PROGRAM AND DECLARES DIVIDEND ON COMMON STOCK The Board of Directors of Wells Fargo & Co. (NYSE:WFC) today authorized the repurchase of up to 9.6 million shares of the Company's outstanding common stock, representing approximately 10 percent of Wells Fargo's outstanding common shares. This action reflects the Company's strong capital position and will continue to allow Wells Fargo to effectively manage its overall capital position in the best interests of its shareholders. The Company announced no date for completing the program and will purchase shares from time to time, subject to market conditions. This authorization continues a repurchase program begun in 1994. The Company has bought in the past, and will continue to buy, shares to offset stock issued or expected to be issued under its employee benefit and dividend reinvestment plans. These repurchases will not be counted as part of the 9.6 million shares authorized today for repurchase. The Board of Directors also declared a regular quarterly dividend on common stock of $1.30 per share. The dividend will be payable May 20, 1996 to shareholders of record at the close of business April 30, 1996. ### -----END PRIVACY-ENHANCED MESSAGE-----