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Full Year 2018 Net Income of $22.4 Billion; Diluted EPS of $4.28
Wells Fargo & Company (NYSE:WFC):
Financial results reported in this document are preliminary. Final
financial results and other disclosures will be reported in our Annual
Report on Form 10-K for the year ended December 31, 2018, and may differ
materially from the results and disclosures in this document due to,
among other things, the completion of final review procedures, the
occurrence of subsequent events, or the discovery of additional
information.
Selected Financial Information |
|||||||||||||||
Quarter ended | Year ended Dec. 31, | ||||||||||||||
Dec 31, |
Sep 30, 2018 |
Dec 31, |
2018 | 2017 | |||||||||||
Earnings | |||||||||||||||
Diluted earnings per common share | $ | 1.21 | 1.13 | 1.16 | 4.28 | 4.10 | |||||||||
Wells Fargo net income (in billions) | 6.06 | 6.01 | 6.15 | 22.39 | 22.18 | ||||||||||
Return on assets (ROA) | 1.28 | % | 1.27 | 1.26 | 1.19 | 1.15 | |||||||||
Return on equity (ROE) | 12.89 | 12.04 | 12.47 | 11.53 | 11.35 | ||||||||||
Return on average tangible common equity (ROTCE) (a) | 15.39 | 14.33 | 14.85 | 13.73 | 13.55 | ||||||||||
Asset Quality | |||||||||||||||
Net charge-offs (annualized) as a % of average total loans | 0.30 | % | 0.29 | 0.31 | 0.29 | 0.31 | |||||||||
Allowance for credit losses as a % of total loans | 1.12 | 1.16 | 1.25 | 1.12 | 1.25 | ||||||||||
Allowance for credit losses as a % of annualized net charge-offs | 374 | 406 | 401 | 390 | 408 | ||||||||||
Other | |||||||||||||||
Revenue (in billions) | $ | 21.0 | 21.9 | 22.1 | 86.4 | 88.4 | |||||||||
Efficiency ratio (b) | 63.6 | % | 62.7 | 76.2 | 65.0 | 66.2 | |||||||||
Average loans (in billions) | $ | 946.3 | 939.5 | 951.8 | 945.2 | 956.1 | |||||||||
Average deposits (in billions) | 1,268.9 | 1,266.4 | 1,311.6 | 1,275.9 | 1,304.6 | ||||||||||
Net interest margin | 2.94 | % | 2.94 | 2.84 | 2.91 | 2.87 | |||||||||
(a) Tangible common equity is a non-GAAP financial measure and |
|||||||||||||||
(b) The efficiency ratio is noninterest expense divided by total |
|||||||||||||||
Wells Fargo & Company (NYSE:WFC) reported net income of $6.1 billion, or
$1.21 per diluted common share, for fourth quarter 2018, compared with
$6.2 billion, or $1.16 per share, for fourth quarter 2017, and
$6.0 billion, or $1.13 per share, for third quarter 2018.
Chief Executive Officer Tim Sloan said, "I'm proud of the
transformational changes we made at Wells Fargo during 2018 including
significant progress on our six goals. We have made meaningful
improvements to how we manage risk across the company, particularly
operational and compliance risk. We improved customer service which
resulted in both ‘Customer Loyalty' and ‘Overall Satisfaction with Most
Recent Visit' branch survey scores reaching a 24-month high in December.
Our voluntary team member attrition in 2018 improved to its lowest level
in six years reflecting our efforts to make Wells Fargo a better place
to work, and we continue to attract impressive leaders from outside the
company. We launched many customer-focused innovations including our
online mortgage application, Control TowerSM, Pay with Wells
Fargo, and our new Propel® Card. Our commitment to building
stronger communities was demonstrated by exceeding our target of
donating $400 million to communities across the U.S., and a recent
example was our Holiday Food Bank program which provided over 50 million
meals during the holidays. Our focus on delivering long-term shareholder
value included meeting our 2018 expense target and returning a record
$25.8 billion to shareholders in 2018, up 78% from 2017. I want to thank
our team members for their commitment to making Wells Fargo a better
bank in 2018. I'm confident that we'll continue to make Wells Fargo even
better in 2019."
Chief Financial Officer John Shrewsberry said, "Wells Fargo reported
$6.1 billion of net income in the fourth quarter. Compared with the
third quarter, we grew both loans and deposits and credit performance
remained strong. In addition, our effective income tax rate was lower
compared with the prior quarter, and we maintained solid capital levels
even as we reduced our common shares outstanding. We continued to have
positive business trends in the fourth quarter with primary consumer
checking customers, consumer credit card active accounts, debit and
credit card usage, commercial loan balances, and loan originations in
auto, small business, home equity and student lending all growing
compared with a year ago. Our focus on reducing expenses enabled us to
meet our 2018 expense target, and we are on track to meet our 2019
expense target as well."
Net Interest Income
Net interest income in the fourth quarter was $12.6 billion, up $72
million from third quarter 2018, driven primarily by the benefits of
higher average interest rates and favorable hedge ineffectiveness
accounting results, partially offset by the impacts from balance sheet
mix and lower variable income. Net interest margin was 2.94 percent,
flat compared with the prior quarter.
Noninterest Income
Noninterest income in the fourth quarter was $8.3 billion, down $1.0
billion from third quarter 2018. Fourth quarter noninterest income
included lower market sensitive revenue3, mortgage banking
fees and trust and investment fees, partially offset by higher other
income.
Noninterest Expense
Noninterest expense in the fourth quarter declined $424 million from the
prior quarter to $13.3 billion, predominantly due to a $671 million
decline in employee benefits driven by lower deferred compensation
expense (largely offset in market sensitive revenue), lower FDIC expense
due to the completion of their special assessment, and lower operating
losses. These decreases were partially offset by higher other expense,
operating lease expense on lease asset impairment, outside professional
services and salary expense. The efficiency ratio was 63.6 percent in
fourth quarter 2018, compared with 62.7 percent in the third quarter.
Fourth quarter 2018 operating losses were $432 million and included a
$175 million accrual for an agreement reached in December 2018 with all
50 state Attorneys General and the District of Columbia regarding
previously disclosed matters.
Income Taxes
The Company's effective income tax rate was 13.7 percent for fourth
quarter 2018, compared with 20.1 percent for third quarter 2018, which
included net discrete income tax expense in the third quarter related to
re-measurement of our initial estimates for the impacts of the Tax Cuts
& Jobs Act (Tax Act) recognized in fourth quarter 2017. The fourth
quarter 2018 income tax rate included $158 million of net discrete
income tax benefits primarily related to the results of state income tax
audits and incremental state tax credits. In addition, the fourth
quarter income tax rate benefited from $137 million related to revisions
to our full year 2018 effective income tax rate made during the quarter.
The Company's full year 2018 effective income tax rate was 20.2 percent
(18 percent before discrete items). We currently expect the effective
income tax rate for full year 2019 to be approximately 18 percent,
excluding the impact of any unanticipated discrete items.
Loans
Total average loans were $946.3 billion in the fourth quarter, up
$6.9 billion from the third quarter. Period-end loan balances were
$953.1 billion at December 31, 2018, up $10.8 billion from September 30,
2018. Commercial loans were up $11.5 billion compared with September 30,
2018, due to $12.2 billion of growth in commercial and industrial loans,
partially offset by a $583 million decline in commercial real estate
loans. Consumer loans decreased $709 million from the prior quarter,
reflecting the following:
Period-End Loan Balances |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Commercial | $ | 513,405 | 501,886 | 503,105 | 503,396 | 503,388 | |||||||||
Consumer | 439,705 | 440,414 | 441,160 | 443,912 | 453,382 | ||||||||||
Total loans | $ | 953,110 | 942,300 | 944,265 | 947,308 | 956,770 | |||||||||
Change from prior quarter | $ | 10,810 | (1,965 | ) | (3,043 | ) | (9,462 | ) | 4,897 | ||||||
Debt and Equity Securities
Debt securities include available-for-sale and held-to-maturity debt
securities, as well as debt securities held for trading. Debt securities
were $484.7 billion at December 31, 2018, up $12.4 billion from the
third quarter, predominantly due to a net increase in available-for-sale
and held for trading debt securities. Debt securities purchases of
approximately $16.9 billion, primarily U.S. Treasury and federal agency
mortgage-backed securities (MBS) in the available-for-sale portfolio,
more than offset runoff and sales.
Net unrealized losses on available-for-sale debt securities were $2.6
billion at December 31, 2018, compared with net unrealized losses of
$3.8 billion at September 30, 2018, predominantly due to lower interest
rates, partially offset by higher credit spreads.
Equity securities include marketable and non-marketable equity
securities, as well as equity securities held for trading. Equity
securities were $55.1 billion at December 31, 2018, down $6.6 billion
from the third quarter, predominantly due to a decrease in equity
securities held for trading.
Deposits
Total average deposits for fourth quarter 2018 were $1.3 trillion, up
$2.6 billion from the prior quarter as growth in commercial deposits was
partially offset by lower consumer and small business banking deposits,
which included $1.8 billion of deposits associated with the previously
announced sale of 52 branches that closed on November 30. The average
deposit cost for fourth quarter 2018 was 55 basis points, up 8 basis
points from the prior quarter and 27 basis points from a year ago.
Capital
Capital in the fourth quarter continued to exceed our internal target,
with a Common Equity Tier 1 ratio (fully phased-in) of 11.7 percent5,
down from 11.9 percent in the prior quarter. In fourth quarter 2018, the
Company repurchased 142.7 million shares of its common stock, which net
of issuances, reduced period-end common shares outstanding by
130.3 million. The Company paid a quarterly common stock dividend of
$0.43 per share.
Credit Quality
Net Loan Charge-offs
The quarterly loss rate in the fourth quarter was 0.30 percent
(annualized), compared with 0.29 percent in the prior quarter and 0.31
percent a year ago. Commercial and consumer losses were 0.10 percent and
0.53 percent, respectively. Total credit losses were $721 million in
fourth quarter 2018, up $41 million from third quarter 2018. Commercial
losses decreased $20 million driven by lower commercial and industrial
loan net charge-offs and higher recoveries in commercial real estate,
while consumer losses increased $61 million predominantly driven by
seasonal increases in credit card and other revolving credit and
installment loan charge-offs.
Net Loan Charge-Offs |
|||||||||||||||||||||
Quarter ended | |||||||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||
($ in millions) |
Net loan |
As a % of |
Net loan |
As a % of |
Net loan |
As a % of |
|||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | 132 | 0.15 | % | $ | 148 | 0.18 | % | $ | 118 | 0.14 | % | |||||||||
Real estate mortgage | (12 | ) | (0.04 | ) | (1 | ) | — | (10 | ) | (0.03 | ) | ||||||||||
Real estate construction | (1 | ) | (0.01 | ) | (2 | ) | (0.04 | ) | (3 | ) | (0.05 | ) | |||||||||
Lease financing | 13 | 0.26 | 7 | 0.14 | 10 | 0.20 | |||||||||||||||
Total commercial | 132 | 0.10 | 152 | 0.12 | 115 | 0.09 | |||||||||||||||
Consumer: | |||||||||||||||||||||
Real estate 1-4 family first mortgage | (22 | ) | (0.03 | ) | (25 | ) | (0.04 | ) | (23 | ) | (0.03 | ) | |||||||||
Real estate 1-4 family junior lien mortgage | (10 | ) | (0.11 | ) | (9 | ) | (0.10 | ) | (7 | ) | (0.06 | ) | |||||||||
Credit card | 338 | 3.54 | 299 | 3.22 | 336 | 3.66 | |||||||||||||||
Automobile | 133 | 1.16 | 130 | 1.10 | 188 | 1.38 | |||||||||||||||
Other revolving credit and installment | 150 | 1.64 | 133 | 1.44 | 142 | 1.46 | |||||||||||||||
Total consumer | 589 | 0.53 | 528 | 0.47 | 636 | 0.56 | |||||||||||||||
Total | $ | 721 | 0.30 | % | $ | 680 | 0.29 | % | $ | 751 | 0.31 | % | |||||||||
(a) Quarterly net charge-offs (recoveries) as a percentage of |
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Nonperforming Assets
Nonperforming assets decreased $289 million, or 4 percent, from third
quarter 2018 to $6.9 billion. Nonaccrual loans decreased $218 million
from third quarter 2018 to $6.5 billion reflecting both lower consumer
and commercial nonaccruals.
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets) |
|||||||||||||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||||||||||||
($ in millions) |
Total |
As a |
Total |
As a |
Total |
As a |
|||||||||||||||
Commercial: | |||||||||||||||||||||
Commercial and industrial | $ | 1,486 | 0.42 | % | $ | 1,555 | 0.46 | % | $ | 1,899 | 0.57 | % | |||||||||
Real estate mortgage | 580 | 0.48 | 603 | 0.50 | 628 | 0.50 | |||||||||||||||
Real estate construction | 32 | 0.14 | 44 | 0.19 | 37 | 0.15 | |||||||||||||||
Lease financing | 90 | 0.46 | 96 | 0.49 | 76 | 0.39 | |||||||||||||||
Total commercial | 2,188 | 0.43 | 2,298 | 0.46 | 2,640 | 0.52 | |||||||||||||||
Consumer: | |||||||||||||||||||||
Real estate 1-4 family first mortgage | 3,183 | 1.12 | 3,267 | 1.15 | 3,732 | 1.31 | |||||||||||||||
Real estate 1-4 family junior lien mortgage | 945 | 2.75 | 983 | 2.78 | 1,086 | 2.73 | |||||||||||||||
Automobile | 130 | 0.29 | 118 | 0.26 | 130 | 0.24 | |||||||||||||||
Other revolving credit and installment | 50 | 0.14 | 48 | 0.13 | 58 | 0.15 | |||||||||||||||
Total consumer | 4,308 | 0.98 | 4,416 | 1.00 | 5,006 | 1.10 | |||||||||||||||
Total nonaccrual loans (a) | 6,496 | 0.68 | 6,714 | 0.71 | 7,646 | 0.80 | |||||||||||||||
Foreclosed assets: | |||||||||||||||||||||
Government insured/guaranteed | 88 | 87 | 120 | ||||||||||||||||||
Non-government insured/guaranteed | 363 | 435 | 522 | ||||||||||||||||||
Total foreclosed assets | 451 | 522 | 642 | ||||||||||||||||||
Total nonperforming assets | $ | 6,947 | 0.73 | % | $ | 7,236 | 0.77 | % | $ | 8,288 | 0.87 | % | |||||||||
Change from prior quarter: | |||||||||||||||||||||
Total nonaccrual loans (a) | $ | (218 | ) | $ | (412 | ) | $ | (572 | ) | ||||||||||||
Total nonperforming assets | (289 | ) | (389 | ) | (636 | ) | |||||||||||||||
(a) Financial information for periods prior to December 31, 2018, |
|||||||||||||||||||||
Allowance for Credit Losses
The allowance for credit losses, including the allowance for unfunded
commitments, totaled $10.7 billion at December 31, 2018, down $249
million from September 30, 2018. Fourth quarter 2018 included a $200
million reserve release2, which reflected continued
improvement in the credit quality of the loan portfolio. The allowance
coverage for total loans was 1.12 percent, compared with 1.16 percent in
third quarter 2018. The allowance covered 3.7 times annualized fourth
quarter net charge-offs, compared with 4.1 times in the prior quarter.
The allowance coverage for nonaccrual loans was 165 percent at
December 31, 2018, compared with 163 percent at September 30, 2018.
Business Segment Performance
Wells Fargo defines its operating segments by product type and customer
segment. Segment net income for each of the three business segments was:
Quarter ended | |||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Dec 31, 2017 |
||||||
Community Banking | $ | 3,169 | 2,816 | 3,472 | |||||
Wholesale Banking | 2,671 | 2,851 | 2,373 | ||||||
Wealth and Investment Management | 689 | 732 | 675 | ||||||
Community Banking offers a
complete line of diversified financial products and services for
consumers and small businesses including checking and savings accounts,
credit and debit cards, and automobile, student, mortgage, home equity
and small business lending, as well as referrals to Wholesale Banking
and Wealth and Investment Management business partners. The Community
Banking segment also includes the results of our Corporate Treasury
activities net of allocations in support of the other operating segments
and results of investments in our affiliated venture capital and private
equity partnerships.
Selected Financial Information |
|||||||||
Quarter ended | |||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Dec 31, |
||||||
Total revenue | $ | 11,461 | 11,816 | 11,720 | |||||
Provision for credit losses | 534 | 547 | 636 | ||||||
Noninterest expense | 7,032 | 7,467 | 10,216 | ||||||
Segment net income | 3,169 | 2,816 | 3,472 | ||||||
(in billions) | |||||||||
Average loans | 459.7 | 460.9 | 473.2 | ||||||
Average assets | 1,015.9 | 1,024.9 | 1,073.2 | ||||||
Average deposits | 759.4 | 760.9 | 738.3 | ||||||
Fourth Quarter 2018 vs. Third Quarter 2018
Fourth Quarter 2018 vs. Fourth Quarter 2017
Business Metrics and Highlights
Wholesale Banking provides
financial solutions to businesses across the United States and globally
with annual sales generally in excess of $5 million. Products and
businesses include Commercial Banking, Commercial Real Estate, Corporate
and Investment Banking, Principal Investments, Treasury Management, and
Commercial Capital.
Selected Financial Information |
|||||||||
Quarter ended | |||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Dec 31, 2017 |
||||||
Total revenue | $ | 6,926 | 7,304 | 7,440 | |||||
Provision (reversal of provision) for credit losses | (28 | ) | 26 | 20 | |||||
Noninterest expense | 4,025 | 3,935 | 4,187 | ||||||
Segment net income | 2,671 | 2,851 | 2,373 | ||||||
(in billions) | |||||||||
Average loans | 470.2 | 462.8 | 463.5 | ||||||
Average assets | 839.1 | 827.2 | 837.2 | ||||||
Average deposits | 421.6 | 413.6 | 465.7 | ||||||
Fourth Quarter 2018 vs. Third Quarter 2018
Fourth Quarter 2018 vs. Fourth Quarter 2017
Business Metrics and Highlights
Wealth and Investment Management (WIM)
provides a full range of personalized wealth management, investment
and retirement products and services to clients across U.S. based
businesses including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo
Asset Management. We deliver financial planning, private banking,
credit, investment management and fiduciary services to high-net worth
and ultra-high-net worth individuals and families. We also serve
clients' brokerage needs, supply retirement and trust services to
institutional clients and provide investment management capabilities
delivered to global institutional clients through separate accounts and
the Wells Fargo Funds.
Selected Financial Information |
||||||||||
Quarter ended | ||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Dec 31, 2017 |
|||||||
Total revenue | $ | 3,957 | 4,226 | 4,333 | ||||||
Provision (reversal of provision) for credit losses | (3 | ) | 6 | (7 | ) | |||||
Noninterest expense | 3,044 | 3,243 | 3,246 | |||||||
Segment net income | 689 | 732 | 675 | |||||||
(in billions) | ||||||||||
Average loans | 75.2 | 74.6 | 72.9 | |||||||
Average assets | 83.6 | 83.8 | 83.7 | |||||||
Average deposits | 155.5 | 159.8 | 184.1 | |||||||
Fourth Quarter 2018 vs. Third Quarter 2018
Fourth Quarter 2018 vs. Fourth Quarter 2017
Business Metrics and Highlights
Total WIM Segment
Retail Brokerage
Wealth Management
Asset Management
Retirement
Conference Call
The Company will host a live conference call on Tuesday, January 15, at
7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing
866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call
will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~7179357.
A replay of the conference call will be available beginning at 11:00
a.m. PT (2:00 p.m. ET) on Tuesday, January 15 through Tuesday, January
29. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406
(International) and enter Conference ID #7179357. The replay will also
be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/
and https://engage.vevent.com/rt/wells_fargo_ao~7179357.
End Notes
1 Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling interests,
and goodwill and certain identifiable intangible assets (including
goodwill and intangible assets associated with certain of our
nonmarketable equity securities but excluding mortgage servicing
rights), net of applicable deferred taxes. The methodology of
determining tangible common equity may differ among companies.
Management believes that return on average tangible common equity, which
utilizes tangible common equity, is a useful financial measure because
it enables investors and others to assess the Company's use of equity.
For additional information, including a corresponding reconciliation to
GAAP financial measures, see the "Tangible Common Equity" tables on page
36.
2 Reserve build represents the amount by which the provision
for credit losses exceeds net charge-offs, while reserve release
represents the amount by which net charge-offs exceed the provision for
credit losses.
3 Market sensitive revenue represents net gains from trading
activities, debt securities, and equity securities.
4 Production margin represents net gains on residential
mortgage loan origination/sales activities divided by total residential
held-for-sale mortgage originations. See the "Selected Five Quarter
Residential Mortgage Production Data" table on page 42 for more
information.
5 See table on page 37 for more information on Common Equity
Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate
and is calculated assuming the full phase-in of the Basel III capital
rules.
6 Customers who actively use their checking account with
transactions such as debit card purchases, online bill payments, and
direct deposit.
7 Data as of November 2018, comparisons with November 2017.
8 Combined consumer and business debit card purchase volume
dollars.
9 Primarily includes retail banking, consumer lending, small
business and business banking customers.
10 Small Business Lending includes credit card, lines of
credit and loan products (primarily under $100,000 sold through our
retail banking branches).
11 Includes commercial card volume for the entire company.
12 Source: Dealogic U.S. investment banking fee market share.
Forward-Looking Statements
This document contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. In addition, we
may make forward-looking statements in our other documents filed or
furnished with the SEC, and our management may make forward-looking
statements orally to analysts, investors, representatives of the media
and others. Forward-looking statements can be identified by words such
as "anticipates," "intends," "plans," "seeks," "believes," "estimates,"
"expects," "target," "projects," "outlook," "forecast," "will," "may,"
"could," "should," "can" and similar references to future periods. In
particular, forward-looking statements include, but are not limited to,
statements we make about: (i) the future operating or financial
performance of the Company, including our outlook for future growth;
(ii) our noninterest expense and efficiency ratio; (iii) future credit
quality and performance, including our expectations regarding future
loan losses and allowance levels; (iv) the appropriateness of the
allowance for credit losses; (v) our expectations regarding net interest
income and net interest margin; (vi) loan growth or the reduction or
mitigation of risk in our loan portfolios; (vii) future capital or
liquidity levels or targets and our estimated Common Equity Tier 1 ratio
under Basel III capital standards; (viii) the performance of our
mortgage business and any related exposures; (ix) the expected outcome
and impact of legal, regulatory and legislative developments, as well as
our expectations regarding compliance therewith; (x) future common stock
dividends, common share repurchases and other uses of capital; (xi) our
targeted range for return on assets, return on equity, and return on
tangible common equity; (xii) the outcome of contingencies, such as
legal proceedings; and (xiii) the Company's plans, objectives and
strategies.
Forward-looking statements are not based on historical facts but instead
represent our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject to
inherent uncertainties, risks and changes in circumstances that are
difficult to predict. Our actual results may differ materially from
those contemplated by the forward-looking statements. We caution you,
therefore, against relying on any of these forward-looking statements.
They are neither statements of historical fact nor guarantees or
assurances of future performance. While there is no assurance that any
list of risks and uncertainties or risk factors is complete, important
factors that could cause actual results to differ materially from those
in the forward-looking statements include the following, without
limitation:
In addition to the above factors, we also caution that the amount and
timing of any future common stock dividends or repurchases will depend
on the earnings, cash requirements and financial condition of the
Company, market conditions, capital requirements (including under Basel
capital standards), common stock issuance requirements, applicable law
and regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by the Company's Board
of Directors, and may be subject to regulatory approval or conditions.
For more information about factors that could cause actual results to
differ materially from our expectations, refer to our reports filed with
the Securities and Exchange Commission, including the discussion under
"Risk Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2017, as filed with the Securities and Exchange Commission
and available on its website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on
which it is made. Factors or events that could cause our actual results
to differ may emerge from time to time, and it is not possible for us to
predict all of them. We undertake no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
Forward-looking Non-GAAP Financial Measures.
From time to time management may discuss forward-looking non-GAAP
financial measures, such as forward-looking estimates or targets for
return on average tangible common equity. We are unable to provide a
reconciliation of forward-looking non-GAAP financial measures to their
most directly comparable GAAP financial measures because we are unable
to provide, without unreasonable effort, a meaningful or accurate
calculation or estimation of amounts that would be necessary for the
reconciliation due to the complexity and inherent difficulty in
forecasting and quantifying future amounts or when they may occur. Such
unavailable information could be significant to future results.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo's
vision is to satisfy our customers' financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investment and mortgage products and
services, as well as consumer and commercial finance, through 7,800
locations, more than 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 37 countries and territories to
support customers who conduct business in the global economy. With
approximately 259,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 26
on Fortune's 2018 rankings of America's largest corporations.
Wells Fargo & Company and Subsidiaries |
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QUARTERLY FINANCIAL DATA |
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TABLE OF CONTENTS |
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Pages | ||
Summary Information |
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Summary Financial Data |
17 |
|
Income |
||
Consolidated Statement of Income | 19 | |
Consolidated Statement of Comprehensive Income | 21 | |
Condensed Consolidated Statement of Changes in Total Equity | 21 | |
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) | 22 | |
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) |
24 | |
Noninterest Income and Noninterest Expense | 25 | |
Balance Sheet |
||
Consolidated Balance Sheet | 27 | |
Trading Activities | 29 | |
Debt Securities | 29 | |
Equity Securities | 30 | |
Loans |
||
Loans | 31 | |
Nonperforming Assets | 32 | |
Loans 90 Days or More Past Due and Still Accruing | 32 | |
Purchased Credit-Impaired Loans | 33 | |
Changes in Allowance for Credit Losses | 35 | |
Equity |
||
Tangible Common Equity | 36 | |
Common Equity Tier 1 Under Basel III | 37 | |
Operating Segments |
||
Operating Segment Results | 38 | |
Other |
||
Mortgage Servicing and other related data | 40 | |
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||||||||||
SUMMARY FINANCIAL DATA |
||||||||||||||||||||||||||
Quarter ended |
% Change Dec 31, 2018 from |
Year ended | ||||||||||||||||||||||||
($ in millions, except per share amounts) |
Dec 31, 2018 |
Sep 30, 2018 |
Dec 31, 2017 |
Sep 30, 2018 |
Dec 31, 2017 |
Dec 31, 2018 |
Dec 31, 2017 |
% Change |
||||||||||||||||||
For the Period | ||||||||||||||||||||||||||
Wells Fargo net income | $ | 6,064 | 6,007 | 6,151 | 1 | % | (1 | ) | $ | 22,393 | 22,183 | 1 | % | |||||||||||||
Wells Fargo net income applicable to common stock | 5,711 | 5,453 | 5,740 | 5 | (1 | ) | 20,689 | 20,554 | 1 | |||||||||||||||||
Diluted earnings per common share | 1.21 | 1.13 | 1.16 | 7 | 4 | 4.28 | 4.10 | 4 | ||||||||||||||||||
Profitability ratios (annualized): | ||||||||||||||||||||||||||
Wells Fargo net income to average assets (ROA) | 1.28 | % | 1.27 | 1.26 | 1 | 2 | 1.19 | % | 1.15 | 3 | ||||||||||||||||
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE) |
12.89 | 12.04 | 12.47 | 7 | 3 | 11.53 | 11.35 | 2 | ||||||||||||||||||
Return on average tangible common equity (ROTCE)(1) | 15.39 | 14.33 | 14.85 | 7 | 4 | 13.73 | 13.55 | 1 | ||||||||||||||||||
Efficiency ratio (2) | 63.6 | 62.7 | 76.2 | 1 | (17 | ) | 65.0 | 66.2 | (2 | ) | ||||||||||||||||
Total revenue | $ | 20,980 | 21,941 | 22,050 | (4 | ) | (5 | ) | $ | 86,408 | 88,389 | (2 | ) | |||||||||||||
Pre-tax pre-provision profit (PTPP) (3) | 7,641 | 8,178 | 5,250 | (7 | ) | 46 | 30,282 | 29,905 | 1 | |||||||||||||||||
Dividends declared per common share | 0.43 | 0.43 | 0.39 | — | 10 | 1.64 | 1.54 | 6 | ||||||||||||||||||
Average common shares outstanding | 4,665.8 | 4,784.0 | 4,912.5 | (2 | ) | (5 | ) | 4,799.7 | 4,964.6 | (3 | ) | |||||||||||||||
Diluted average common shares outstanding | 4,700.8 | 4,823.2 | 4,963.1 | (3 | ) | (5 | ) | 4,838.4 | 5,017.3 | (4 | ) | |||||||||||||||
Average loans | $ | 946,336 | 939,462 | 951,822 | 1 | (1 | ) | $ | 945,197 | 956,129 | (1 | ) | ||||||||||||||
Average assets | 1,879,047 | 1,876,283 | 1,935,318 | — | (3 | ) | 1,888,892 | 1,933,005 | (2 | ) | ||||||||||||||||
Average total deposits | 1,268,948 | 1,266,378 | 1,311,592 | — | (3 | ) | 1,275,857 | 1,304,622 | (2 | ) | ||||||||||||||||
Average consumer and small business banking deposits (4) | 736,295 | 743,503 | 757,541 | (1 | ) | (3 | ) | 747,183 | 758,271 | (1 | ) | |||||||||||||||
Net interest margin | 2.94 | % | 2.94 | 2.84 | — | 4 | 2.91 |
% |
2.87 | 1 | ||||||||||||||||
At Period End | ||||||||||||||||||||||||||
Debt securities (5) | $ | 484,689 | 472,283 | 473,366 | 3 | 2 | $ | 484,689 | 473,366 | 2 | ||||||||||||||||
Loans | 953,110 | 942,300 | 956,770 | 1 | — | 953,110 | 956,770 | — | ||||||||||||||||||
Allowance for loan losses | 9,775 | 10,021 | 11,004 | (2 | ) | (11 | ) | 9,775 | 11,004 | (11 | ) | |||||||||||||||
Goodwill | 26,418 | 26,425 | 26,587 | — | (1 | ) | 26,418 | 26,587 | (1 | ) | ||||||||||||||||
Equity securities (5) | 55,148 | 61,755 | 62,497 | (11 | ) | (12 | ) | 55,148 | 62,497 | (12 | ) | |||||||||||||||
Assets | 1,895,883 | 1,872,981 | 1,951,757 | 1 | (3 | ) | 1,895,883 | 1,951,757 | (3 | ) | ||||||||||||||||
Deposits | 1,286,170 | 1,266,594 | 1,335,991 | 2 | (4 | ) | 1,286,170 | 1,335,991 | (4 | ) | ||||||||||||||||
Common stockholders' equity | 174,359 | 176,934 | 183,134 | (1 | ) | (5 | ) | 174,359 | 183,134 | (5 | ) | |||||||||||||||
Wells Fargo stockholders' equity | 196,166 | 198,741 | 206,936 | (1 | ) | (5 | ) | 196,166 | 206,936 | (5 | ) | |||||||||||||||
Total equity | 197,066 | 199,679 | 208,079 | (1 | ) | (5 | ) | 197,066 | 208,079 | (5 | ) | |||||||||||||||
Tangible common equity (1) | 145,980 | 148,391 | 153,730 | (2 | ) | (5 | ) | 145,980 | 153,730 | (5 | ) | |||||||||||||||
Common shares outstanding | 4,581.3 | 4,711.6 | 4,891.6 | (3 | ) | (6 | ) | 4,581.3 | 4,891.6 | (6 | ) | |||||||||||||||
Book value per common share (6) | $ | 38.06 | 37.55 | 37.44 | 1 | 2 | $ | 38.06 | 37.44 | 2 | ||||||||||||||||
Tangible book value per common share (1)(6) | 31.86 | 31.49 | 31.43 | 1 | 1 | 31.86 | 31.43 | 1 | ||||||||||||||||||
Team members (active, full-time equivalent) | 258,700 | 261,700 | 262,700 | (1 | ) | (2 | ) | 258,700 | 262,700 | (2 | ) | |||||||||||||||
(1) Tangible common equity is a non-GAAP financial measure and |
||||||||||||||||||||||||||
(2) The efficiency ratio is noninterest expense divided by total |
||||||||||||||||||||||||||
(3) Pre-tax pre-provision profit (PTPP) is total revenue less |
||||||||||||||||||||||||||
(4) Consumer and small business banking deposits are total |
||||||||||||||||||||||||||
(5) Financial information for the prior periods of 2017 has been |
||||||||||||||||||||||||||
(6) Book value per common share is common stockholders' equity |
||||||||||||||||||||||||||
Wells Fargo & Company and Subsidiaries |
|||||||||||||||
FIVE QUARTER SUMMARY FINANCIAL DATA |
|||||||||||||||
Quarter ended | |||||||||||||||
($ in millions, except per share amounts) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
For the Quarter | |||||||||||||||
Wells Fargo net income | $ | 6,064 | 6,007 | 5,186 | 5,136 | 6,151 | |||||||||
Wells Fargo net income applicable to common stock | 5,711 | 5,453 | 4,792 | 4,733 | 5,740 | ||||||||||
Diluted earnings per common share | 1.21 | 1.13 | 0.98 | 0.96 | 1.16 | ||||||||||
Profitability ratios (annualized): | |||||||||||||||
Wells Fargo net income to average assets (ROA) | 1.28 | % | 1.27 | 1.10 | 1.09 | 1.26 | |||||||||
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders' equity (ROE) |
12.89 | 12.04 | 10.60 | 10.58 | 12.47 | ||||||||||
Return on average tangible common equity (ROTCE)(1) | 15.39 | 14.33 | 12.62 | 12.62 | 14.85 | ||||||||||
Efficiency ratio (2) | 63.6 | 62.7 | 64.9 | 68.6 | 76.2 | ||||||||||
Total revenue | $ | 20,980 | 21,941 | 21,553 | 21,934 | 22,050 | |||||||||
Pre-tax pre-provision profit (PTPP) (3) | 7,641 | 8,178 | 7,571 | 6,892 | 5,250 | ||||||||||
Dividends declared per common share | 0.43 | 0.43 | 0.39 | 0.39 | 0.39 | ||||||||||
Average common shares outstanding | 4,665.8 | 4,784.0 | 4,865.8 | 4,885.7 | 4,912.5 | ||||||||||
Diluted average common shares outstanding | 4,700.8 | 4,823.2 | 4,899.8 | 4,930.7 | 4,963.1 | ||||||||||
Average loans | $ | 946,336 | 939,462 | 944,079 | 951,024 | 951,822 | |||||||||
Average assets | 1,879,047 | 1,876,283 | 1,884,884 | 1,915,896 | 1,935,318 | ||||||||||
Average total deposits | 1,268,948 | 1,266,378 | 1,271,339 | 1,297,178 | 1,311,592 | ||||||||||
Average consumer and small business banking deposits (4) | 736,295 | 743,503 | 754,047 | 755,483 | 757,541 | ||||||||||
Net interest margin | 2.94 | % | 2.94 | 2.93 | 2.84 | 2.84 | |||||||||
At Quarter End | |||||||||||||||
Debt securities (5) | $ | 484,689 | 472,283 | 475,495 | 472,968 | 473,366 | |||||||||
Loans | 953,110 | 942,300 | 944,265 | 947,308 | 956,770 | ||||||||||
Allowance for loan losses | 9,775 | 10,021 | 10,193 | 10,373 | 11,004 | ||||||||||
Goodwill | 26,418 | 26,425 | 26,429 | 26,445 | 26,587 | ||||||||||
Equity securities (5) | 55,148 | 61,755 | 57,505 | 58,935 | 62,497 | ||||||||||
Assets | 1,895,883 | 1,872,981 | 1,879,700 | 1,915,388 | 1,951,757 | ||||||||||
Deposits | 1,286,170 | 1,266,594 | 1,268,864 | 1,303,689 | 1,335,991 | ||||||||||
Common stockholders' equity | 174,359 | 176,934 | 181,386 | 181,150 | 183,134 | ||||||||||
Wells Fargo stockholders' equity | 196,166 | 198,741 | 205,188 | 204,952 | 206,936 | ||||||||||
Total equity | 197,066 | 199,679 | 206,069 | 205,910 | 208,079 | ||||||||||
Tangible common equity (1) | 145,980 | 148,391 | 152,580 | 151,878 | 153,730 | ||||||||||
Common shares outstanding | 4,581.3 | 4,711.6 | 4,849.1 | 4,873.9 | 4,891.6 | ||||||||||
Book value per common share (6) | $ | 38.06 | 37.55 | 37.41 | 37.17 | 37.44 | |||||||||
Tangible book value per common share (1)(6) | 31.86 | 31.49 | 31.47 | 31.16 | 31.43 | ||||||||||
Team members (active, full-time equivalent) | 258,700 | 261,700 | 264,500 | 265,700 | 262,700 | ||||||||||
(1) Tangible common equity is a non-GAAP financial measure and |
|||||||||||||||
(2) The efficiency ratio is noninterest expense divided by total |
|||||||||||||||
(3) Pre-tax pre-provision profit (PTPP) is total revenue less |
|||||||||||||||
(4) Consumer and small business banking deposits are total |
|||||||||||||||
(5) Financial information for the quarter ended December 31, 2017, |
|||||||||||||||
(6) Book value per common share is common stockholders' equity |
|||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME |
||||||||||||||||||||
Quarter ended December 31, | % | Year ended December 31, | % | |||||||||||||||||
(in millions, except per share amounts) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Interest income | ||||||||||||||||||||
Debt securities (1) | $ | 3,803 | 3,294 | 15 | % | $ | 14,406 | 12,946 | 11 | % | ||||||||||
Mortgage loans held for sale | 190 | 196 | (3 | ) | 777 | 786 | (1 | ) | ||||||||||||
Loans held for sale (1) | 33 | 12 | 175 | 140 | 50 | 180 | ||||||||||||||
Loans | 11,367 | 10,367 | 10 | 43,974 | 41,388 | 6 | ||||||||||||||
Equity securities (1) | 260 | 239 | 9 | 992 | 799 | 24 | ||||||||||||||
Other interest income (1) | 1,268 | 850 | 49 | 4,358 | 2,940 | 48 | ||||||||||||||
Total interest income | 16,921 | 14,958 | 13 | 64,647 | 58,909 | 10 | ||||||||||||||
Interest expense | ||||||||||||||||||||
Deposits | 1,765 | 931 | 90 | 5,622 | 3,013 | 87 | ||||||||||||||
Short-term borrowings | 546 | 255 | 114 | 1,717 | 758 | 127 | ||||||||||||||
Long-term debt | 1,802 | 1,344 | 34 | 6,703 | 5,157 | 30 | ||||||||||||||
Other interest expense | 164 | 115 | 43 | 610 | 424 | 44 | ||||||||||||||
Total interest expense | 4,277 | 2,645 | 62 | 14,652 | 9,352 | 57 | ||||||||||||||
Net interest income | 12,644 | 12,313 | 3 | 49,995 | 49,557 | 1 | ||||||||||||||
Provision for credit losses | 521 | 651 | (20 | ) | 1,744 | 2,528 | (31 | ) | ||||||||||||
Net interest income after provision for credit losses | 12,123 | 11,662 | 4 | 48,251 | 47,029 | 3 | ||||||||||||||
Noninterest income | ||||||||||||||||||||
Service charges on deposit accounts | 1,176 | 1,246 | (6 | ) | 4,716 | 5,111 | (8 | ) | ||||||||||||
Trust and investment fees | 3,520 | 3,687 | (5 | ) | 14,509 | 14,495 | — | |||||||||||||
Card fees | 981 | 996 | (2 | ) | 3,907 | 3,960 | (1 | ) | ||||||||||||
Other fees | 888 | 913 | (3 | ) | 3,384 | 3,557 | (5 | ) | ||||||||||||
Mortgage banking | 467 | 928 | (50 | ) | 3,017 | 4,350 | (31 | ) | ||||||||||||
Insurance | 109 | 223 | (51 | ) | 429 | 1,049 | (59 | ) | ||||||||||||
Net gains (losses) from trading activities (1) | 10 | (1 | ) | NM | 602 | 542 | 11 | |||||||||||||
Net gains on debt securities | 9 | 157 | (94 | ) | 108 | 479 | (77 | ) | ||||||||||||
Net gains from equity securities (1) | 21 | 572 | (96 | ) | 1,515 | 1,779 | (15 | ) | ||||||||||||
Lease income | 402 | 458 | (12 | ) | 1,753 | 1,907 | (8 | ) | ||||||||||||
Other | 753 | 558 | 35 | 2,473 | 1,603 | 54 | ||||||||||||||
Total noninterest income | 8,336 | 9,737 | (14 | ) | 36,413 | 38,832 | (6 | ) | ||||||||||||
Noninterest expense | ||||||||||||||||||||
Salaries | 4,545 | 4,403 | 3 | 17,834 | 17,363 | 3 | ||||||||||||||
Commission and incentive compensation | 2,427 | 2,665 | (9 | ) | 10,264 | 10,442 | (2 | ) | ||||||||||||
Employee benefits | 706 | 1,293 | (45 | ) | 4,926 | 5,566 | (11 | ) | ||||||||||||
Equipment | 643 | 608 | 6 | 2,444 | 2,237 | 9 | ||||||||||||||
Net occupancy | 735 | 715 | 3 | 2,888 | 2,849 | 1 | ||||||||||||||
Core deposit and other intangibles | 264 | 288 | (8 | ) | 1,058 | 1,152 | (8 | ) | ||||||||||||
FDIC and other deposit assessments | 153 | 312 | (51 | ) | 1,110 | 1,287 | (14 | ) | ||||||||||||
Other | 3,866 | 6,516 | (41 | ) | 15,602 | 17,588 | (11 | ) | ||||||||||||
Total noninterest expense | 13,339 | 16,800 | (21 | ) | 56,126 | 58,484 | (4 | ) | ||||||||||||
Income before income tax expense | 7,120 | 4,599 | 55 | 28,538 | 27,377 | 4 | ||||||||||||||
Income tax expense (benefit) | 966 | (1,642 | ) | NM | 5,662 | 4,917 | 15 | |||||||||||||
Net income before noncontrolling interests | 6,154 | 6,241 | (1 | ) | 22,876 | 22,460 | 2 | |||||||||||||
Less: Net income from noncontrolling interests | 90 | 90 | — | 483 | 277 | 74 | ||||||||||||||
Wells Fargo net income | $ | 6,064 | 6,151 | (1 | ) | $ | 22,393 | 22,183 | 1 | |||||||||||
Less: Preferred stock dividends and other | 353 | 411 | (14 | ) | 1,704 | 1,629 | 5 | |||||||||||||
Wells Fargo net income applicable to common stock | $ | 5,711 | 5,740 | (1 | ) | $ | 20,689 | 20,554 | 1 | |||||||||||
Per share information | ||||||||||||||||||||
Earnings per common share | $ | 1.22 | 1.17 | 4 | $ | 4.31 | 4.14 | 4 | ||||||||||||
Diluted earnings per common share | 1.21 | 1.16 | 4 | 4.28 | 4.10 | 4 | ||||||||||||||
Average common shares outstanding | 4,665.8 | 4,912.5 | (5 | ) | 4,799.7 | 4,964.6 | (3 | ) | ||||||||||||
Diluted average common shares outstanding | 4,700.8 | 4,963.1 | (5 | ) | 4,838.4 | 5,017.3 | (4 | ) | ||||||||||||
NM - Not meaningful |
||||||||||||||||||||
(1) Financial information for the prior periods of 2017 has been |
||||||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME |
||||||||||||||||
Quarter ended | ||||||||||||||||
(in millions, except per share amounts) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Interest income | ||||||||||||||||
Debt securities (1) | $ | 3,803 | 3,595 | 3,594 | 3,414 | 3,294 | ||||||||||
Mortgage loans held for sale | 190 | 210 | 198 | 179 | 196 | |||||||||||
Loans held for sale (1) | 33 | 35 | 48 | 24 | 12 | |||||||||||
Loans | 11,367 | 11,116 | 10,912 | 10,579 | 10,367 | |||||||||||
Equity securities (1) | 260 | 280 | 221 | 231 | 239 | |||||||||||
Other interest income (1) | 1,268 | 1,128 | 1,042 | 920 | 850 | |||||||||||
Total interest income | 16,921 | 16,364 | 16,015 | 15,347 | 14,958 | |||||||||||
Interest expense | ||||||||||||||||
Deposits | 1,765 | 1,499 | 1,268 | 1,090 | 931 | |||||||||||
Short-term borrowings | 546 | 462 | 398 | 311 | 255 | |||||||||||
Long-term debt | 1,802 | 1,667 | 1,658 | 1,576 | 1,344 | |||||||||||
Other interest expense | 164 | 164 | 150 | 132 | 115 | |||||||||||
Total interest expense | 4,277 | 3,792 | 3,474 | 3,109 | 2,645 | |||||||||||
Net interest income | 12,644 | 12,572 | 12,541 | 12,238 | 12,313 | |||||||||||
Provision for credit losses | 521 | 580 | 452 | 191 | 651 | |||||||||||
Net interest income after provision for credit losses | 12,123 | 11,992 | 12,089 | 12,047 | 11,662 | |||||||||||
Noninterest income | ||||||||||||||||
Service charges on deposit accounts | 1,176 | 1,204 | 1,163 | 1,173 | 1,246 | |||||||||||
Trust and investment fees | 3,520 | 3,631 | 3,675 | 3,683 | 3,687 | |||||||||||
Card fees | 981 | 1,017 | 1,001 | 908 | 996 | |||||||||||
Other fees | 888 | 850 | 846 | 800 | 913 | |||||||||||
Mortgage banking | 467 | 846 | 770 | 934 | 928 | |||||||||||
Insurance | 109 | 104 | 102 | 114 | 223 | |||||||||||
Net gains (losses) from trading activities (1) | 10 | 158 | 191 | 243 | (1 | ) | ||||||||||
Net gains on debt securities | 9 | 57 | 41 | 1 | 157 | |||||||||||
Net gains from equity securities (1) | 21 | 416 | 295 | 783 | 572 | |||||||||||
Lease income | 402 | 453 | 443 | 455 | 458 | |||||||||||
Other | 753 | 633 | 485 | 602 | 558 | |||||||||||
Total noninterest income | 8,336 | 9,369 | 9,012 | 9,696 | 9,737 | |||||||||||
Noninterest expense | ||||||||||||||||
Salaries | 4,545 | 4,461 | 4,465 | 4,363 | 4,403 | |||||||||||
Commission and incentive compensation | 2,427 | 2,427 | 2,642 | 2,768 | 2,665 | |||||||||||
Employee benefits | 706 | 1,377 | 1,245 | 1,598 | 1,293 | |||||||||||
Equipment | 643 | 634 | 550 | 617 | 608 | |||||||||||
Net occupancy | 735 | 718 | 722 | 713 | 715 | |||||||||||
Core deposit and other intangibles | 264 | 264 | 265 | 265 | 288 | |||||||||||
FDIC and other deposit assessments | 153 | 336 | 297 | 324 | 312 | |||||||||||
Other | 3,866 | 3,546 | 3,796 | 4,394 | 6,516 | |||||||||||
Total noninterest expense | 13,339 | 13,763 | 13,982 | 15,042 | 16,800 | |||||||||||
Income before income tax expense | 7,120 | 7,598 | 7,119 | 6,701 | 4,599 | |||||||||||
Income tax expense (benefit) | 966 | 1,512 | 1,810 | 1,374 | (1,642 | ) | ||||||||||
Net income before noncontrolling interests | 6,154 | 6,086 | 5,309 | 5,327 | 6,241 | |||||||||||
Less: Net income from noncontrolling interests | 90 | 79 | 123 | 191 | 90 | |||||||||||
Wells Fargo net income | $ | 6,064 | 6,007 | 5,186 | 5,136 | 6,151 | ||||||||||
Less: Preferred stock dividends and other | 353 | 554 | 394 | 403 | 411 | |||||||||||
Wells Fargo net income applicable to common stock | $ | 5,711 | 5,453 | 4,792 | 4,733 | 5,740 | ||||||||||
Per share information | ||||||||||||||||
Earnings per common share | $ | 1.22 | 1.14 | 0.98 | 0.97 | 1.17 | ||||||||||
Diluted earnings per common share | 1.21 | 1.13 | 0.98 | 0.96 | 1.16 | |||||||||||
Average common shares outstanding | 4,665.8 | 4,784.0 | 4,865.8 | 4,885.7 | 4,912.5 | |||||||||||
Diluted average common shares outstanding | 4,700.8 | 4,823.2 | 4,899.8 | 4,930.7 | 4,963.1 | |||||||||||
(1) Financial information for the quarter ended December 31, 2017, |
||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
||||||||||||||||||
Quarter ended December 31, | % | Year ended December 31, | % | |||||||||||||||
(in millions) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||
Wells Fargo net income | $ | 6,064 | 6,151 | (1)% | $ | 22,393 | 22,183 | 1% | ||||||||||
Other comprehensive income (loss), before tax: | ||||||||||||||||||
Debt securities (1): | ||||||||||||||||||
Net unrealized gains (losses) arising during the period | 1,035 | (106 | ) | NM | (4,493 | ) | 2,719 | NM | ||||||||||
Reclassification of net (gains) losses to net income | 80 | (215 | ) | NM | 248 | (737 | ) | NM | ||||||||||
Derivatives and hedging activities: | ||||||||||||||||||
Net unrealized losses arising during the period | (116 | ) | (558 | ) | (79) | (532 | ) | (540 | ) | (1) | ||||||||
Reclassification of net (gains) losses to net income | 78 | (83 | ) | NM | 294 | (543 | ) | NM | ||||||||||
Defined benefit plans adjustments: | ||||||||||||||||||
Net actuarial and prior service gains (losses) arising during the period |
(440 | ) | 45 | NM | (434 | ) | 49 | NM | ||||||||||
Amortization of net actuarial loss, settlements and other to net income |
163 | 33 | 394 | 253 | 153 | 65 | ||||||||||||
Foreign currency translation adjustments: | ||||||||||||||||||
Net unrealized gains (losses) arising during the period | (62 | ) | 10 | NM | (156 | ) | 96 | NM | ||||||||||
Other comprehensive income (loss), before tax | 738 | (874 | ) | NM | (4,820 | ) | 1,197 | NM | ||||||||||
Income tax benefit (expense) related to other comprehensive income | (202 | ) | 319 | NM | 1,144 | (434 | ) | NM | ||||||||||
Other comprehensive income (loss), net of tax | 536 | (555 | ) | NM | (3,676 | ) | 763 | NM | ||||||||||
Less: Other comprehensive loss from noncontrolling interests | (1 | ) | (33 | ) | (97) | (2 | ) | (62 | ) | (97) | ||||||||
Wells Fargo other comprehensive income (loss), net of tax | 537 | (522 | ) | NM | (3,674 | ) | 825 | NM | ||||||||||
Wells Fargo comprehensive income | 6,601 | 5,629 | 17 | 18,719 | 23,008 | (19) | ||||||||||||
Comprehensive income from noncontrolling interests | 89 | 57 | 56 | 481 | 215 | 124 | ||||||||||||
Total comprehensive income | $ | 6,690 | 5,686 | 18 | $ | 19,200 | 23,223 | (17) | ||||||||||
NM – Not meaningful |
||||||||||||||||||
(1) The quarter and year ended December 31, 2017, includes net |
||||||||||||||||||
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN |
||||||||||||||||
Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Balance, beginning of period | $ | 199,679 | 206,069 | 205,910 | 208,079 | 206,617 | ||||||||||
Cumulative effect from change in accounting policies (1) | — | — | — | (24 | ) | — | ||||||||||
Wells Fargo net income | 6,064 | 6,007 | 5,186 | 5,136 | 6,151 | |||||||||||
Wells Fargo other comprehensive income (loss), net of tax | 537 | (1,012 | ) | (540 | ) | (2,659 | ) | (522 | ) | |||||||
Noncontrolling interests | (38 | ) | 57 | (77 | ) | (178 | ) | 247 | ||||||||
Common stock issued | 239 | 156 | 73 | 1,208 | 436 | |||||||||||
Common stock repurchased (2) | (7,299 | ) | (7,382 | ) | (2,923 | ) | (3,029 | ) | (2,845 | ) | ||||||
Preferred stock redeemed (3) | — | (2,150 | ) | — | — | — | ||||||||||
Preferred stock released by ESOP | 268 | 260 | 490 | 231 | 218 | |||||||||||
Common stock warrants repurchased/exercised | (131 | ) | (36 | ) | (1 | ) | (157 | ) | (46 | ) | ||||||
Common stock dividends | (2,016 | ) | (2,062 | ) | (1,900 | ) | (1,911 | ) | (1,920 | ) | ||||||
Preferred stock dividends | (353 | ) | (399 | ) | (394 | ) | (410 | ) | (411 | ) | ||||||
Stock incentive compensation expense | 144 | 202 | 258 | 437 | 206 | |||||||||||
Net change in deferred compensation and related plans | (28 | ) | (31 | ) | (13 | ) | (813 | ) | (52 | ) | ||||||
Balance, end of period | $ | 197,066 | 199,679 | 206,069 | 205,910 | 208,079 | ||||||||||
(1) The cumulative effect for the quarter ended March 31, 2018, |
||||||||||||||||
(2) For the quarter ended June 30, 2018, includes $1.0 billion |
||||||||||||||||
(3) Represents the impact of the redemption of preferred stock, |
||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||||
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT |
||||||||||||||||||||
Quarter ended December 31, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
(in millions) |
Average |
Yields/ |
Interest |
Average |
Yields/ |
Interest |
||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-earning deposits with banks (3) | $ | 150,091 | 2.18 | % | $ | 825 | 189,114 | 1.27 | % | $ | 605 | |||||||||
Federal funds sold and securities purchased under resale agreements (3) |
76,108 | 2.22 | 426 | 75,826 | 1.20 | 230 | ||||||||||||||
Debt securities (4): | ||||||||||||||||||||
Trading debt securities (5) | 90,110 | 3.52 | 794 | 81,580 | 3.17 | 647 | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 7,195 | 1.80 | 32 | 6,423 | 1.66 | 27 | ||||||||||||||
Securities of U.S. states and political subdivisions | 47,618 | 4.05 | 483 | 52,390 | 3.91 | 513 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Federal agencies | 155,322 | 2.91 | 1,128 | 152,910 | 2.62 | 1,000 | ||||||||||||||
Residential and commercial | 6,666 | 4.87 | 81 | 9,371 | 4.85 | 114 | ||||||||||||||
Total mortgage-backed securities | 161,988 | 2.99 | 1,209 | 162,281 | 2.75 | 1,114 | ||||||||||||||
Other debt securities (5) | 46,072 | 4.46 | 518 | 48,679 | 3.62 | 443 | ||||||||||||||
Total available-for-sale debt securities (5) | 262,873 | 3.41 | 2,242 | 269,773 | 3.10 | 2,097 | ||||||||||||||
Held-to-maturity debt securities: |
||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,747 | 2.19 | 247 | 44,716 | 2.19 | 246 | ||||||||||||||
Securities of U.S. states and political subdivisions | 6,247 | 4.34 | 67 | 6,263 | 5.26 | 83 | ||||||||||||||
Federal agency and other mortgage-backed securities | 95,748 | 2.46 | 589 | 89,622 | 2.25 | 503 | ||||||||||||||
Other debt securities | 68 | 3.65 | 1 | 1,194 | 2.64 | 8 | ||||||||||||||
Total held-to-maturity debt securities | 146,810 | 2.46 | 904 | 141,795 | 2.36 | 840 | ||||||||||||||
Total debt securities (5) | 499,793 | 3.15 | 3,940 | 493,148 | 2.90 | 3,584 | ||||||||||||||
Mortgage loans held for sale (6) | 17,044 | 4.46 | 190 | 20,517 | 3.82 | 196 | ||||||||||||||
Loans held for sale (5)(6) | 1,992 | 6.69 | 33 | 1,490 | 3.19 | 12 | ||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial and industrial - U.S. | 281,431 | 4.40 | 3,115 | 270,294 | 3.89 | 2,649 | ||||||||||||||
Commercial and industrial - Non U.S. | 62,035 | 3.73 | 584 | 59,233 | 2.96 | 442 | ||||||||||||||
Real estate mortgage | 120,404 | 4.51 | 1,369 | 127,199 | 3.88 | 1,244 | ||||||||||||||
Real estate construction | 23,090 | 5.32 | 310 | 24,408 | 4.38 | 270 | ||||||||||||||
Lease financing | 19,519 | 4.48 | 219 | 19,226 | 0.62 | 31 | ||||||||||||||
Total commercial loans | 506,479 | 4.39 | 5,597 | 500,360 | 3.68 | 4,636 | ||||||||||||||
Consumer loans: | ||||||||||||||||||||
Real estate 1-4 family first mortgage | 285,260 | 4.02 | 2,868 | 281,966 | 4.01 | 2,826 | ||||||||||||||
Real estate 1-4 family junior lien mortgage | 34,844 | 5.60 | 491 | 40,379 | 4.96 | 505 | ||||||||||||||
Credit card | 37,858 | 12.69 | 1,211 | 36,428 | 12.37 | 1,136 | ||||||||||||||
Automobile | 45,536 | 5.16 | 592 | 54,323 | 5.13 | 702 | ||||||||||||||
Other revolving credit and installment | 36,359 | 6.95 | 637 | 38,366 | 6.28 | 607 | ||||||||||||||
Total consumer loans | 439,857 | 5.25 | 5,799 | 451,462 | 5.10 | 5,776 | ||||||||||||||
Total loans (6) | 946,336 | 4.79 | 11,396 | 951,822 | 4.35 | 10,412 | ||||||||||||||
Equity securities (5) | 37,412 | 2.79 | 261 | 38,001 | 2.60 | 246 | ||||||||||||||
Other (5) | 4,074 | 1.78 | 18 | 7,103 | 0.88 | 16 | ||||||||||||||
Total earning assets (5) | $ | 1,732,850 | 3.93 | % | $ | 17,089 | 1,777,021 | 3.43 | % | $ | 15,301 | |||||||||
Funding sources | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 53,983 | 1.21 | % | $ | 165 | 50,483 | 0.68 | % | $ | 86 | |||||||||
Market rate and other savings | 689,639 | 0.43 | 741 | 679,893 | 0.19 | 319 | ||||||||||||||
Savings certificates | 21,955 | 0.87 | 48 | 20,920 | 0.31 | 17 | ||||||||||||||
Other time deposits | 92,676 | 2.46 | 575 | 68,187 | 1.49 | 255 | ||||||||||||||
Deposits in foreign offices | 56,098 | 1.66 | 236 | 124,597 | 0.81 | 254 | ||||||||||||||
Total interest-bearing deposits | 914,351 | 0.77 | 1,765 | 944,080 | 0.39 | 931 | ||||||||||||||
Short-term borrowings | 105,962 | 2.04 | 546 | 102,142 | 0.99 | 256 | ||||||||||||||
Long-term debt | 226,591 | 3.17 | 1,802 | 231,598 | 2.32 | 1,344 | ||||||||||||||
Other liabilities | 27,365 | 2.41 | 164 | 24,728 | 1.86 | 115 | ||||||||||||||
Total interest-bearing liabilities | 1,274,269 | 1.34 | 4,277 | 1,302,548 | 0.81 | 2,646 | ||||||||||||||
Portion of noninterest-bearing funding sources (5) | 458,581 | — | — | 474,473 | — | — | ||||||||||||||
Total funding sources (5) | $ | 1,732,850 | 0.99 | 4,277 | 1,777,021 | 0.59 | 2,646 | |||||||||||||
Net interest margin and net interest income on a taxable-equivalent basis (7) |
2.94 | % | $ | 12,812 | 2.84 | % | $ | 12,655 | ||||||||||||
Noninterest-earning assets | ||||||||||||||||||||
Cash and due from banks | $ | 19,288 | 19,152 | |||||||||||||||||
Goodwill | 26,423 | 26,579 | ||||||||||||||||||
Other (5) | 100,486 | 112,566 | ||||||||||||||||||
Total noninterest-earning assets (5) | $ | 146,197 | 158,297 | |||||||||||||||||
Noninterest-bearing funding sources | ||||||||||||||||||||
Deposits | $ | 354,597 | 367,512 | |||||||||||||||||
Other liabilities | 51,739 | 57,845 | ||||||||||||||||||
Total equity | 198,442 | 207,413 | ||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets (5) | (458,581 | ) | (474,473 | ) | ||||||||||||||||
Net noninterest-bearing funding sources (5) | $ | 146,197 | 158,297 | |||||||||||||||||
Total assets | $ | 1,879,047 | 1,935,318 | |||||||||||||||||
(1) Our average prime rate was 5.28% and 4.30% for the quarters |
||||||||||||||||||||
(2) Yields/rates and amounts include the effects of hedge and risk |
||||||||||||||||||||
(3) Financial information for the prior period has been revised to |
||||||||||||||||||||
(4) Yields and rates are based on interest income/expense amounts |
||||||||||||||||||||
(5) Financial information for the prior period has been revised to |
||||||||||||||||||||
(6) Nonaccrual loans and related income are included in their |
||||||||||||||||||||
(7) Includes taxable-equivalent adjustments of $168 million and |
||||||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||||
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT |
||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
(in millions) |
Average |
Yields/ |
Interest |
Average |
Yields/ |
Interest |
||||||||||||||
Earning assets | ||||||||||||||||||||
Interest-earning deposits with banks (3) | $ | 156,366 | 1.82 | % | $ | 2,854 | 201,864 | 1.07 | % | $ | 2,162 | |||||||||
Federal funds sold and securities purchased under resale agreements (3) |
78,547 | 1.82 | 1,431 | 74,697 | 0.98 | 735 | ||||||||||||||
Debt securities (4): | ||||||||||||||||||||
Trading debt securities (5) | 83,526 | 3.42 | 2,856 | 74,475 | 3.16 | 2,356 | ||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 6,618 | 1.70 | 112 | 15,966 | 1.49 | 239 | ||||||||||||||
Securities of U.S. states and political subdivisions | 47,884 | 3.77 | 1,806 | 52,658 | 3.95 | 2,082 | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Federal agencies | 156,052 | 2.79 | 4,348 | 145,310 | 2.60 | 3,782 | ||||||||||||||
Residential and commercial | 7,769 | 4.62 | 358 | 11,839 | 5.33 | 631 | ||||||||||||||
Total mortgage-backed securities | 163,821 | 2.87 | 4,706 | 157,149 | 2.81 | 4,413 | ||||||||||||||
Other debt securities (5) | 46,875 | 4.22 | 1,980 | 48,714 | 3.68 | 1,794 | ||||||||||||||
Total available-for-sale debt securities (5) | 265,198 | 3.24 | 8,604 | 274,487 | 3.11 | 8,528 | ||||||||||||||
Held-to-maturity debt securities: | ||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,735 | 2.19 | 980 | 44,705 | 2.19 | 979 | ||||||||||||||
Securities of U.S. states and political subdivisions | 6,253 | 4.34 | 271 | 6,268 | 5.32 | 334 | ||||||||||||||
Federal agency and other mortgage-backed securities | 94,216 | 2.36 | 2,221 | 78,330 | 2.34 | 1,832 | ||||||||||||||
Other debt securities | 361 | 4.00 | 15 | 2,194 | 2.50 | 55 | ||||||||||||||
Total held-to-maturity debt securities | 145,565 | 2.40 | 3,487 | 131,497 | 2.43 | 3,200 | ||||||||||||||
Total debt securities (5) | 494,289 | 3.02 | 14,947 | 480,459 | 2.93 | 14,084 | ||||||||||||||
Mortgage loans held for sale (6) | 18,394 | 4.22 | 777 | 20,780 | 3.78 | 786 | ||||||||||||||
Loans held for sale (5)(6) | 2,526 | 5.56 | 140 | 1,487 | 3.40 | 50 | ||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial and industrial - U.S. | 275,656 | 4.16 | 11,465 | 272,034 | 3.75 | 10,196 | ||||||||||||||
Commercial and industrial - Non U.S. | 60,718 | 3.53 | 2,143 | 57,198 | 2.86 | 1,639 | ||||||||||||||
Real estate mortgage | 122,947 | 4.29 | 5,279 | 129,990 | 3.74 | 4,859 | ||||||||||||||
Real estate construction | 23,609 | 4.94 | 1,167 | 24,813 | 4.10 | 1,017 | ||||||||||||||
Lease financing | 19,392 | 4.74 | 919 | 19,128 | 3.74 | 715 | ||||||||||||||
Total commercial loans | 502,322 | 4.18 | 20,973 | 503,163 | 3.66 | 18,426 | ||||||||||||||
Consumer loans: | ||||||||||||||||||||
Real estate 1-4 family first mortgage | 284,178 | 4.04 | 11,481 | 277,751 | 4.03 | 11,206 | ||||||||||||||
Real estate 1-4 family junior lien mortgage | 36,687 | 5.38 | 1,975 | 42,780 | 4.82 | 2,062 | ||||||||||||||
Credit card | 36,780 | 12.72 | 4,678 | 35,600 | 12.23 | 4,355 | ||||||||||||||
Automobile | 48,115 | 5.18 | 2,491 | 57,900 | 5.34 | 3,094 | ||||||||||||||
Other revolving credit and installment | 37,115 | 6.70 | 2,488 | 38,935 | 6.18 | 2,408 | ||||||||||||||
Total consumer loans | 442,875 | 5.22 | 23,113 | 452,966 | 5.11 | 23,125 | ||||||||||||||
Total loans (6) | 945,197 | 4.66 | 44,086 | 956,129 | 4.35 | 41,551 | ||||||||||||||
Equity securities (5) | 38,092 | 2.62 | 999 | 36,105 | 2.27 | 821 | ||||||||||||||
Other (5) | 5,071 | 1.46 | 74 | 5,069 | 0.85 | 44 | ||||||||||||||
Total earning assets (5) | $ | 1,738,482 | 3.76 | % | $ | 65,308 | 1,776,590 | 3.40 | % | $ | 60,233 | |||||||||
Funding sources | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing checking | $ | 63,243 | 0.96 | % | $ | 606 | 49,474 | 0.49 | % | $ | 242 | |||||||||
Market rate and other savings | 684,882 | 0.31 | 2,157 | 682,053 | 0.14 | 983 | ||||||||||||||
Savings certificates | 20,653 | 0.57 | 118 | 22,190 | 0.30 | 67 | ||||||||||||||
Other time deposits | 84,822 | 2.25 | 1,906 | 61,625 | 1.43 | 880 | ||||||||||||||
Deposits in foreign offices | 63,945 | 1.30 | 835 | 123,816 | 0.68 | 841 | ||||||||||||||
Total interest-bearing deposits | 917,545 | 0.61 | 5,622 | 939,158 | 0.32 | 3,013 | ||||||||||||||
Short-term borrowings | 104,267 | 1.65 | 1,719 | 98,922 | 0.77 | 761 | ||||||||||||||
Long-term debt | 224,268 | 2.99 | 6,703 | 246,195 | 2.09 | 5,157 | ||||||||||||||
Other liabilities | 27,648 | 2.21 | 610 | 21,872 | 1.94 | 424 | ||||||||||||||
Total interest-bearing liabilities | 1,273,728 | 1.15 | 14,654 | 1,306,147 | 0.72 | 9,355 | ||||||||||||||
Portion of noninterest-bearing funding sources (5) | 464,754 | — | — | 470,443 | — | — | ||||||||||||||
Total funding sources (5) | $ | 1,738,482 | 0.85 | 14,654 | 1,776,590 | 0.53 | 9,355 | |||||||||||||
Net interest margin and net interest income on a taxable-equivalent basis (7) |
2.91 | % | $ | 50,654 | 2.87 | % | $ | 50,878 | ||||||||||||
Noninterest-earning assets | ||||||||||||||||||||
Cash and due from banks | $ | 18,777 | 18,622 | |||||||||||||||||
Goodwill | 26,453 | 26,629 | ||||||||||||||||||
Other (5) | 105,180 | 111,164 | ||||||||||||||||||
Total noninterest-earning assets (5) | $ | 150,410 | 156,415 | |||||||||||||||||
Noninterest-bearing funding sources | ||||||||||||||||||||
Deposits | $ | 358,312 | 365,464 | |||||||||||||||||
Other liabilities | 53,496 | 55,740 | ||||||||||||||||||
Total equity | 203,356 | 205,654 | ||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets (5) | (464,754 | ) | (470,443 | ) | ||||||||||||||||
Net noninterest-bearing funding sources (5) | $ | 150,410 | 156,415 | |||||||||||||||||
Total assets | $ | 1,888,892 | 1,933,005 | |||||||||||||||||
(1) Our average prime rate was 4.91% and 4.10% for 2018 and 2017, |
||||||||||||||||||||
(2) Yields/rates and amounts include the effects of hedge and risk |
||||||||||||||||||||
(3) Financial information for the prior period has been revised to |
||||||||||||||||||||
(4) Yields and rates are based on interest income/expense amounts |
||||||||||||||||||||
(5) Financial information for the year ended December 31, 2017, |
||||||||||||||||||||
(6) Nonaccrual loans and related income are included in their |
||||||||||||||||||||
(7) Includes taxable-equivalent adjustments of $659 million and |
||||||||||||||||||||
Wells Fargo & Company and Subsidiaries |
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FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID |
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Quarter ended | |||||||||||||||||||||||||||||||||||
Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||||||||||||||||||||||||
($ in billions) |
Average |
Yields/ |
Average |
Yields/ |
Average |
Yields/ |
Average |
Yields/ |
Average |
Yields/ |
|||||||||||||||||||||||||
Earning assets | |||||||||||||||||||||||||||||||||||
Interest-earning deposits with banks (3) | $ | 150.1 | 2.18 | % | $ | 148.6 | 1.93 | % | $ | 154.8 | 1.75 | % | $ | 172.3 | 1.49 | % | $ | 189.1 | 1.27 | % | |||||||||||||||
Federal funds sold and securities purchased under resale agreements (3) |
76.1 | 2.22 | 79.9 | 1.93 | 80.0 | 1.73 | 78.1 | 1.40 | 75.8 | 1.20 | |||||||||||||||||||||||||
Debt securities (4): | |||||||||||||||||||||||||||||||||||
Trading debt securities (5) | 90.1 | 3.52 | 84.5 | 3.45 | 80.7 | 3.45 | 78.7 | 3.24 | 81.6 | 3.17 | |||||||||||||||||||||||||
Available-for-sale debt securities: | |||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 7.2 | 1.80 | 6.4 | 1.65 | 6.4 | 1.66 | 6.4 | 1.66 | 6.4 | 1.66 | |||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 47.6 | 4.05 | 46.6 | 3.76 | 47.4 | 3.91 | 50.0 | 3.37 | 52.4 | 3.91 | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Federal agencies | 155.3 | 2.91 | 155.5 | 2.77 | 154.9 | 2.75 | 158.4 | 2.72 | 152.9 | 2.62 | |||||||||||||||||||||||||
Residential and commercial | 6.7 | 4.87 | 7.3 | 4.68 | 8.2 | 4.86 | 8.9 | 4.12 | 9.4 | 4.85 | |||||||||||||||||||||||||
Total mortgage-backed securities | 162.0 | 2.99 | 162.8 | 2.86 | 163.1 | 2.86 | 167.3 | 2.79 | 162.3 | 2.75 | |||||||||||||||||||||||||
Other debt securities (5) | 46.1 | 4.46 | 46.4 | 4.39 | 47.1 | 4.33 | 48.1 | 3.73 | 48.6 | 3.62 | |||||||||||||||||||||||||
Total available-for-sale debt securities (5) | 262.9 | 3.41 | 262.2 | 3.26 | 264.0 | 3.28 | 271.8 | 3.04 | 269.7 | 3.10 | |||||||||||||||||||||||||
Held-to-maturity debt securities: | |||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies | 44.7 | 2.19 | 44.7 | 2.18 | 44.7 | 2.19 | 44.7 | 2.20 | 44.7 | 2.19 | |||||||||||||||||||||||||
Securities of U.S. states and political subdivisions | 6.2 | 4.34 | 6.3 | 4.33 | 6.3 | 4.34 | 6.3 | 4.34 | 6.3 | 5.26 | |||||||||||||||||||||||||
Federal agency and other mortgage-backed securities | 95.8 | 2.46 | 95.3 | 2.27 | 94.9 | 2.33 | 90.8 | 2.38 | 89.6 | 2.25 | |||||||||||||||||||||||||
Other debt securities | 0.1 | 3.65 | 0.1 | 5.61 | 0.6 | 4.66 | 0.7 | 3.23 | 1.2 | 2.64 | |||||||||||||||||||||||||
Total held-to-maturity debt securities | 146.8 | 2.46 | 146.4 | 2.33 | 146.5 | 2.38 | 142.5 | 2.42 | 141.8 | 2.36 | |||||||||||||||||||||||||
Total debt securities (5) | 499.8 | 3.15 | 493.1 | 3.02 | 491.2 | 3.04 | 493.0 | 2.89 | 493.1 | 2.90 | |||||||||||||||||||||||||
Mortgage loans held for sale | 17.0 | 4.46 | 19.3 | 4.33 | 18.8 | 4.22 | 18.4 | 3.89 | 20.5 | 3.82 | |||||||||||||||||||||||||
Loans held for sale (5) | 2.0 | 6.69 | 2.6 | 5.28 | 3.5 | 5.48 | 2.0 | 4.92 | 1.5 | 3.19 | |||||||||||||||||||||||||
Commercial loans: | |||||||||||||||||||||||||||||||||||
Commercial and industrial - U.S. | 281.4 | 4.40 | 273.8 | 4.22 | 275.3 | 4.16 | 272.0 | 3.85 | 270.3 | 3.89 | |||||||||||||||||||||||||
Commercial and industrial - Non U.S. | 62.0 | 3.73 | 60.9 | 3.63 | 59.7 | 3.51 | 60.2 | 3.23 | 59.2 | 2.96 | |||||||||||||||||||||||||
Real estate mortgage | 120.4 | 4.51 | 121.3 | 4.35 | 124.0 | 4.27 | 126.2 | 4.05 | 127.2 | 3.88 | |||||||||||||||||||||||||
Real estate construction | 23.1 | 5.32 | 23.3 | 5.05 | 23.6 | 4.88 | 24.4 | 4.54 | 24.4 | 4.38 | |||||||||||||||||||||||||
Lease financing | 19.5 | 4.48 | 19.5 | 4.69 | 19.3 | 4.48 | 19.4 | 5.30 | 19.3 | 0.62 | |||||||||||||||||||||||||
Total commercial loans | 506.4 | 4.39 | 498.8 | 4.24 | 501.9 | 4.15 | 502.2 | 3.91 | 500.4 | 3.68 | |||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage | 285.3 | 4.02 | 284.1 | 4.07 | 283.1 | 4.06 | 284.2 | 4.02 | 282.0 | 4.01 | |||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage | 34.8 | 5.60 | 35.9 | 5.50 | 37.2 | 5.32 | 38.8 | 5.13 | 40.4 | 4.96 | |||||||||||||||||||||||||
Credit card | 37.9 | 12.69 | 36.9 | 12.77 | 35.9 | 12.66 | 36.4 | 12.75 | 36.4 | 12.37 | |||||||||||||||||||||||||
Automobile | 45.5 | 5.16 | 47.0 | 5.20 | 48.6 | 5.18 | 51.5 | 5.16 | 54.3 | 5.13 | |||||||||||||||||||||||||
Other revolving credit and installment | 36.4 | 6.95 | 36.8 | 6.78 | 37.4 | 6.62 | 37.9 | 6.46 | 38.3 | 6.28 | |||||||||||||||||||||||||
Total consumer loans | 439.9 | 5.25 | 440.7 | 5.26 | 442.2 | 5.20 | 448.8 | 5.16 | 451.4 | 5.10 | |||||||||||||||||||||||||
Total loans | 946.3 | 4.79 | 939.5 | 4.72 | 944.1 | 4.64 | 951.0 | 4.50 | 951.8 | 4.35 | |||||||||||||||||||||||||
Equity securities (5) | 37.4 | 2.79 | 37.9 | 2.98 | 37.3 | 2.38 | 39.8 | 2.35 | 38.0 | 2.60 | |||||||||||||||||||||||||
Other (5) | 4.2 | 1.78 | 4.7 | 1.47 | 5.6 | 1.48 | 6.0 | 1.21 | 7.2 | 0.88 | |||||||||||||||||||||||||
Total earning assets (5) | $ | 1,732.9 | 3.93 | % | $ | 1,725.6 | 3.81 | % | $ | 1,735.3 | 3.73 | % | $ | 1,760.6 | 3.55 | % | $ | 1,777.0 | 3.43 | % | |||||||||||||||
Funding sources | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Interest-bearing checking | $ | 54.0 | 1.21 | % | $ | 51.2 | 1.01 | % | $ | 80.3 | 0.90 | % | $ | 67.8 | 0.77 | % | $ | 50.5 | 0.68 | % | |||||||||||||||
Market rate and other savings | 689.6 | 0.43 | 693.9 | 0.35 | 676.7 | 0.26 | 679.1 | 0.22 | 679.9 | 0.19 | |||||||||||||||||||||||||
Savings certificates | 22.0 | 0.87 | 20.6 | 0.62 | 20.0 | 0.43 | 20.0 | 0.34 | 20.9 | 0.31 | |||||||||||||||||||||||||
Other time deposits | 92.6 | 2.46 | 87.8 | 2.35 | 82.1 | 2.26 | 76.6 | 1.84 | 68.2 | 1.49 | |||||||||||||||||||||||||
Deposits in foreign offices | 56.1 | 1.66 | 53.9 | 1.50 | 51.5 | 1.30 | 94.8 | 0.98 | 124.6 | 0.81 | |||||||||||||||||||||||||
Total interest-bearing deposits | 914.3 | 0.77 | 907.4 | 0.66 | 910.6 | 0.56 | 938.3 | 0.47 | 944.1 | 0.39 | |||||||||||||||||||||||||
Short-term borrowings | 106.0 | 2.04 | 105.5 | 1.74 | 103.8 | 1.54 | 101.8 | 1.24 | 102.1 | 0.99 | |||||||||||||||||||||||||
Long-term debt | 226.6 | 3.17 | 220.7 | 3.02 | 223.8 | 2.97 | 226.0 | 2.80 | 231.6 | 2.32 | |||||||||||||||||||||||||
Other liabilities | 27.4 | 2.41 | 27.0 | 2.40 | 28.2 | 2.12 | 27.9 | 1.92 | 24.7 | 1.86 | |||||||||||||||||||||||||
Total interest-bearing liabilities | 1,274.3 | 1.34 | 1,260.6 | 1.20 | 1,266.4 | 1.10 | 1,294.0 | 0.97 | 1,302.5 | 0.81 | |||||||||||||||||||||||||
Portion of noninterest-bearing funding sources (5) | 458.6 | — | 465.0 | — | 468.9 | — | 466.6 | — | 474.5 | — | |||||||||||||||||||||||||
Total funding sources (5) | $ | 1,732.9 | 0.99 | $ | 1,725.6 | 0.87 | $ | 1,735.3 | 0.80 | $ | 1,760.6 | 0.71 | $ | 1,777.0 | 0.59 | ||||||||||||||||||||
Net interest margin on a taxable-equivalent basis | 2.94 | % | 2.94 | % | 2.93 | % | 2.84 | % | 2.84 | % | |||||||||||||||||||||||||
Noninterest-earning assets | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 19.3 | 18.4 | 18.6 | 18.9 | 19.2 | |||||||||||||||||||||||||||||
Goodwill | 26.4 | 26.4 | 26.4 | 26.5 | 26.6 | ||||||||||||||||||||||||||||||
Other (5) | 100.4 | 105.9 | 104.6 | 109.9 | 112.5 | ||||||||||||||||||||||||||||||
Total noninterest-earnings assets (5) | $ | 146.1 | 150.7 | 149.6 | 155.3 | 158.3 | |||||||||||||||||||||||||||||
Noninterest-bearing funding sources | |||||||||||||||||||||||||||||||||||
Deposits | $ | 354.6 | 359.0 | 360.7 | 358.9 | 367.5 | |||||||||||||||||||||||||||||
Other liabilities (5) | 51.7 | 53.9 | 51.7 | 56.8 | 57.9 | ||||||||||||||||||||||||||||||
Total equity | 198.4 | 202.8 | 206.1 | 206.2 | 207.4 | ||||||||||||||||||||||||||||||
Noninterest-bearing funding sources used to fund earning assets (5) | (458.6 | ) | (465.0 | ) | (468.9 | ) | (466.6 | ) | (474.5 | ) | |||||||||||||||||||||||||
Net noninterest-bearing funding sources (5) | $ | 146.1 | 150.7 | 149.6 | 155.3 | 158.3 | |||||||||||||||||||||||||||||
Total assets | $ | 1,879.0 | 1,876.3 | 1,884.9 | 1,915.9 | 1,935.3 | |||||||||||||||||||||||||||||
(1) Our average prime rate was 5.28% for the quarter ended |
|||||||||||||||||||||||||||||||||||
(2) Yields/rates include the effects of hedge and risk management |
|||||||||||||||||||||||||||||||||||
(3) Financial information for the quarter ended December 31, 2017 |
|||||||||||||||||||||||||||||||||||
(4) Yields and rates are based on interest income/expense amounts |
|||||||||||||||||||||||||||||||||||
(5) Financial information for the quarter ended December 31, 2017 |
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Wells Fargo & Company and Subsidiaries |
||||||||||||||||||||
NONINTEREST INCOME |
||||||||||||||||||||
Quarter ended December 31, | % | Year ended December 31, | % | |||||||||||||||||
(in millions) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Service charges on deposit accounts | $ | 1,176 | 1,246 | (6 | )% | $ | 4,716 | 5,111 | (8 | )% | ||||||||||
Trust and investment fees: | ||||||||||||||||||||
Brokerage advisory, commissions and other fees | 2,345 | 2,401 | (2 | ) | 9,436 | 9,358 | 1 | |||||||||||||
Trust and investment management | 796 | 866 | (8 | ) | 3,316 | 3,372 | (2 | ) | ||||||||||||
Investment banking | 379 | 420 | (10 | ) | 1,757 | 1,765 | — | |||||||||||||
Total trust and investment fees | 3,520 | 3,687 | (5 | ) | 14,509 | 14,495 | — | |||||||||||||
Card fees | 981 | 996 | (2 | ) | 3,907 | 3,960 | (1 | ) | ||||||||||||
Other fees: | ||||||||||||||||||||
Lending related charges and fees (1) | 400 | 391 | 2 | 1,526 | 1,568 | (3 | ) | |||||||||||||
Cash network fees | 114 | 120 | (5 | ) | 481 | 506 | (5 | ) | ||||||||||||
Commercial real estate brokerage commissions | 145 | 159 | (9 | ) | 468 | 462 | 1 | |||||||||||||
Wire transfer and other remittance fees | 120 | 115 | 4 | 477 | 448 | 6 | ||||||||||||||
All other fees | 109 | 128 | (15 | ) | 432 | 573 | (25 | ) | ||||||||||||
Total other fees | 888 | 913 | (3 | ) | 3,384 | 3,557 | (5 | ) | ||||||||||||
Mortgage banking: | ||||||||||||||||||||
Servicing income, net | 109 | 262 | (58 | ) | 1,373 | 1,427 | (4 | ) | ||||||||||||
Net gains on mortgage loan origination/sales activities | 358 | 666 | (46 | ) | 1,644 | 2,923 | (44 | ) | ||||||||||||
Total mortgage banking | 467 | 928 | (50 | ) | 3,017 | 4,350 | (31 | ) | ||||||||||||
Insurance | 109 | 223 | (51 | ) | 429 | 1,049 | (59 | ) | ||||||||||||
Net gains (losses) from trading activities (2) | 10 | (1 | ) | NM | 602 | 542 | 11 | |||||||||||||
Net gains on debt securities | 9 | 157 | (94 | ) | 108 | 479 | (77 | ) | ||||||||||||
Net gains from equity securities (2) | 21 | 572 | (96 | ) | 1,515 | 1,779 | (15 | ) | ||||||||||||
Lease income | 402 | 458 | (12 | ) | 1,753 | 1,907 | (8 | ) | ||||||||||||
Life insurance investment income | 158 | 153 | 3 | 651 | 594 | 10 | ||||||||||||||
All other | 595 | 405 | 47 | 1,822 | 1,009 | 81 | ||||||||||||||
Total | $ | 8,336 | 9,737 | (14 | ) | $ | 36,413 | 38,832 | (6 | ) | ||||||||||
NM - Not meaningful |
||||||||||||||||||||
(1) Represents combined amount of previously reported "Charges and |
||||||||||||||||||||
(2) Financial information for the prior periods has been revised |
||||||||||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||||||
Quarter ended December 31, | % | Year ended December 31, | % | |||||||||||||||||
(in millions) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||
Salaries | $ | 4,545 | 4,403 | 3 | % | $ | 17,834 | 17,363 | 3 | % | ||||||||||
Commission and incentive compensation | 2,427 | 2,665 | (9 | ) | 10,264 | 10,442 | (2 | ) | ||||||||||||
Employee benefits | 706 | 1,293 | (45 | ) | 4,926 | 5,566 | (11 | ) | ||||||||||||
Equipment | 643 | 608 | 6 | 2,444 | 2,237 | 9 | ||||||||||||||
Net occupancy | 735 | 715 | 3 | 2,888 | 2,849 | 1 | ||||||||||||||
Core deposit and other intangibles | 264 | 288 | (8 | ) | 1,058 | 1,152 | (8 | ) | ||||||||||||
FDIC and other deposit assessments | 153 | 312 | (51 | ) | 1,110 | 1,287 | (14 | ) | ||||||||||||
Outside professional services | 843 | 1,025 | (18 | ) | 3,306 | 3,813 | (13 | ) | ||||||||||||
Operating losses | 432 | 3,531 | (88 | ) | 3,124 | 5,492 | (43 | ) | ||||||||||||
Contract services (1) | 616 | 410 | 50 | 2,192 | 1,638 | 34 | ||||||||||||||
Operating leases | 392 | 325 | 21 | 1,334 | 1,351 | (1 | ) | |||||||||||||
Advertising and promotion | 254 | 200 | 27 | 857 | 614 | 40 | ||||||||||||||
Outside data processing | 168 | 208 | (19 | ) | 660 | 891 | (26 | ) | ||||||||||||
Travel and entertainment | 168 | 183 | (8 | ) | 618 | 687 | (10 | ) | ||||||||||||
Postage, stationery and supplies | 132 | 137 | (4 | ) | 515 | 544 | (5 | ) | ||||||||||||
Telecommunications | 91 | 92 | (1 | ) | 361 | 364 | (1 | ) | ||||||||||||
Foreclosed assets | 47 | 47 | — | 188 | 251 | (25 | ) | |||||||||||||
Insurance | 25 | 28 | (11 | ) | 101 | 100 | 1 | |||||||||||||
All other (1) | 698 | 330 | 112 | 2,346 | 1,843 | 27 | ||||||||||||||
Total | $ | 13,339 | 16,800 | (21 | ) | $ | 56,126 | 58,484 | (4 | ) | ||||||||||
(1) The prior periods have been revised to conform with the |
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Wells Fargo & Company and Subsidiaries |
||||||||||||||||
FIVE QUARTER NONINTEREST INCOME |
||||||||||||||||
Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Service charges on deposit accounts | $ | 1,176 | 1,204 | 1,163 | 1,173 | 1,246 | ||||||||||
Trust and investment fees: | ||||||||||||||||
Brokerage advisory, commissions and other fees | 2,345 | 2,334 | 2,354 | 2,403 | 2,401 | |||||||||||
Trust and investment management | 796 | 835 | 835 | 850 | 866 | |||||||||||
Investment banking | 379 | 462 | 486 | 430 | 420 | |||||||||||
Total trust and investment fees | 3,520 | 3,631 | 3,675 | 3,683 | 3,687 | |||||||||||
Card fees | 981 | 1,017 | 1,001 | 908 | 996 | |||||||||||
Other fees: | ||||||||||||||||
Lending related charges and fees (1) | 400 | 370 | 376 | 380 | 391 | |||||||||||
Cash network fees | 114 | 121 | 120 | 126 | 120 | |||||||||||
Commercial real estate brokerage commissions | 145 | 129 | 109 | 85 | 159 | |||||||||||
Wire transfer and other remittance fees | 120 | 120 | 121 | 116 | 115 | |||||||||||
All other fees | 109 | 110 | 120 | 93 | 128 | |||||||||||
Total other fees | 888 | 850 | 846 | 800 | 913 | |||||||||||
Mortgage banking: | ||||||||||||||||
Servicing income, net | 109 | 390 | 406 | 468 | 262 | |||||||||||
Net gains on mortgage loan origination/sales activities | 358 | 456 | 364 | 466 | 666 | |||||||||||
Total mortgage banking | 467 | 846 | 770 | 934 | 928 | |||||||||||
Insurance | 109 | 104 | 102 | 114 | 223 | |||||||||||
Net gains (losses) from trading activities (2) | 10 | 158 | 191 | 243 | (1 | ) | ||||||||||
Net gains on debt securities | 9 | 57 | 41 | 1 | 157 | |||||||||||
Net gains from equity securities (2) | 21 | 416 | 295 | 783 | 572 | |||||||||||
Lease income | 402 | 453 | 443 | 455 | 458 | |||||||||||
Life insurance investment income | 158 | 167 | 162 | 164 | 153 | |||||||||||
All other | 595 | 466 | 323 | 438 | 405 | |||||||||||
Total | $ | 8,336 | 9,369 | 9,012 | 9,696 | 9,737 | ||||||||||
(1) Represents combined amount of previously reported "Charges and |
||||||||||||||||
(2) Financial information for the quarter ended December 31, 2017 |
||||||||||||||||
FIVE QUARTER NONINTEREST EXPENSE |
|||||||||||||||
Quarter ended | |||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Salaries | $ | 4,545 | 4,461 | 4,465 | 4,363 | 4,403 | |||||||||
Commission and incentive compensation | 2,427 | 2,427 | 2,642 | 2,768 | 2,665 | ||||||||||
Employee benefits | 706 | 1,377 | 1,245 | 1,598 | 1,293 | ||||||||||
Equipment | 643 | 634 | 550 | 617 | 608 | ||||||||||
Net occupancy | 735 | 718 | 722 | 713 | 715 | ||||||||||
Core deposit and other intangibles | 264 | 264 | 265 | 265 | 288 | ||||||||||
FDIC and other deposit assessments | 153 | 336 | 297 | 324 | 312 | ||||||||||
Outside professional services | 843 | 761 | 881 | 821 | 1,025 | ||||||||||
Operating losses | 432 | 605 | 619 | 1,468 | 3,531 | ||||||||||
Contract services (1) | 616 | 593 | 536 | 447 | 410 | ||||||||||
Operating leases | 392 | 311 | 311 | 320 | 325 | ||||||||||
Advertising and promotion | 254 | 223 | 227 | 153 | 200 | ||||||||||
Outside data processing | 168 | 166 | 164 | 162 | 208 | ||||||||||
Travel and entertainment | 168 | 141 | 157 | 152 | 183 | ||||||||||
Postage, stationery and supplies | 132 | 120 | 121 | 142 | 137 | ||||||||||
Telecommunications | 91 | 90 | 88 | 92 | 92 | ||||||||||
Foreclosed assets | 47 | 59 | 44 | 38 | 47 | ||||||||||
Insurance | 25 | 26 | 24 | 26 | 28 | ||||||||||
All other (1) | 698 | 451 | 624 | 573 | 330 | ||||||||||
Total | $ | 13,339 | 13,763 | 13,982 | 15,042 | 16,800 | |||||||||
(1) The quarter ended December 31, 2017, has been revised to |
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Wells Fargo & Company and Subsidiaries |
||||||||||
CONSOLIDATED BALANCE SHEET |
||||||||||
(in millions, except shares) |
Dec 31, 2018 |
Dec 31, 2017 |
% |
|||||||
Assets | ||||||||||
Cash and due from banks | $ | 23,551 | 23,367 | 1 |
% |
|||||
Interest-earning deposits with banks (1) | 149,736 | 192,580 | (22 | ) | ||||||
Total cash, cash equivalents, and restricted cash (1) | 173,287 | 215,947 | (20 | ) | ||||||
Federal funds sold and securities purchased under resale agreements (1) |
80,207 | 80,025 | — | |||||||
Debt securities: | ||||||||||
Trading, at fair value (2) | 69,989 | 57,624 | 21 | |||||||
Available-for-sale, at fair value (2) | 269,912 | 276,407 | (2 | ) | ||||||
Held-to-maturity, at cost | 144,788 | 139,335 | 4 | |||||||
Mortgage loans held for sale | 15,126 | 20,070 | (25 | ) | ||||||
Loans held for sale (2) | 2,041 | 1,131 | 80 | |||||||
Loans | 953,110 | 956,770 | — | |||||||
Allowance for loan losses | (9,775 | ) | (11,004 | ) | (11 | ) | ||||
Net loans | 943,335 | 945,766 | — | |||||||
Mortgage servicing rights: | ||||||||||
Measured at fair value | 14,649 | 13,625 | 8 | |||||||
Amortized | 1,443 | 1,424 | 1 | |||||||
Premises and equipment, net | 8,920 | 8,847 | 1 | |||||||
Goodwill | 26,418 | 26,587 | (1 | ) | ||||||
Derivative assets | 10,770 | 12,228 | (12 | ) | ||||||
Equity securities (2) | 55,148 | 62,497 | (12 | ) | ||||||
Other assets (2) | 79,850 | 90,244 | (12 | ) | ||||||
Total assets | $ | 1,895,883 | 1,951,757 | (3 | ) | |||||
Liabilities | ||||||||||
Noninterest-bearing deposits | $ | 349,534 | 373,722 | (6 | ) | |||||
Interest-bearing deposits | 936,636 | 962,269 | (3 | ) | ||||||
Total deposits | 1,286,170 | 1,335,991 | (4 | ) | ||||||
Short-term borrowings | 105,787 | 103,256 | 2 | |||||||
Derivative liabilities | 8,499 | 8,796 | (3 | ) | ||||||
Accrued expenses and other liabilities | 69,317 | 70,615 | (2 | ) | ||||||
Long-term debt | 229,044 | 225,020 | 2 | |||||||
Total liabilities | 1,698,817 | 1,743,678 | (3 | ) | ||||||
Equity | ||||||||||
Wells Fargo stockholders' equity: | ||||||||||
Preferred stock | 23,214 | 25,358 | (8 | ) | ||||||
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares |
9,136 | 9,136 | — | |||||||
Additional paid-in capital | 60,685 | 60,893 | — | |||||||
Retained earnings | 158,163 | 145,263 | 9 | |||||||
Cumulative other comprehensive income (loss) | (6,336 | ) | (2,144 | ) | 196 | |||||
Treasury stock – 900,557,866 shares and 590,194,846 shares | (47,194 | ) | (29,892 | ) | 58 | |||||
Unearned ESOP shares | (1,502 | ) | (1,678 | ) | (10 | ) | ||||
Total Wells Fargo stockholders' equity | 196,166 | 206,936 | (5 | ) | ||||||
Noncontrolling interests | 900 | 1,143 | (21 | ) | ||||||
Total equity | 197,066 | 208,079 | (5 | ) | ||||||
Total liabilities and equity | $ | 1,895,883 | 1,951,757 | (3 | ) | |||||
(1) Financial information has been revised to reflect the impact |
||||||||||
(2) Financial information for the prior period has been revised to |
||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||
FIVE QUARTER CONSOLIDATED BALANCE SHEET |
||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Assets | ||||||||||||||||
Cash and due from banks | $ | 23,551 | 18,791 | 20,450 | 18,145 | 23,367 | ||||||||||
Interest-earning deposits with banks (1) | 149,736 | 140,732 | 142,999 | 184,250 | 192,580 | |||||||||||
Total cash, cash equivalents, and restricted cash (1) | 173,287 | 159,523 | 163,449 | 202,395 | 215,947 | |||||||||||
Federal funds sold and securities purchased under resale agreements (1) |
80,207 | 83,471 | 80,184 | 73,550 | 80,025 | |||||||||||
Debt securities: | ||||||||||||||||
Trading, at fair value (2) | 69,989 | 65,188 | 65,602 | 59,866 | 57,624 | |||||||||||
Available-for-sale, at fair value (2) | 269,912 | 262,964 | 265,687 | 271,656 | 276,407 | |||||||||||
Held-to-maturity, at cost | 144,788 | 144,131 | 144,206 | 141,446 | 139,335 | |||||||||||
Mortgage loans held for sale | 15,126 | 19,225 | 21,509 | 17,944 | 20,070 | |||||||||||
Loans held for sale (2) | 2,041 | 1,765 | 3,408 | 3,581 | 1,131 | |||||||||||
Loans | 953,110 | 942,300 | 944,265 | 947,308 | 956,770 | |||||||||||
Allowance for loan losses | (9,775 | ) | (10,021 | ) | (10,193 | ) | (10,373 | ) | (11,004 | ) | ||||||
Net loans | 943,335 | 932,279 | 934,072 | 936,935 | 945,766 | |||||||||||
Mortgage servicing rights: | ||||||||||||||||
Measured at fair value | 14,649 | 15,980 | 15,411 | 15,041 | 13,625 | |||||||||||
Amortized | 1,443 | 1,414 | 1,407 | 1,411 | 1,424 | |||||||||||
Premises and equipment, net | 8,920 | 8,802 | 8,882 | 8,828 | 8,847 | |||||||||||
Goodwill | 26,418 | 26,425 | 26,429 | 26,445 | 26,587 | |||||||||||
Derivative assets | 10,770 | 11,811 | 11,099 | 11,467 | 12,228 | |||||||||||
Equity securities (2) | 55,148 | 61,755 | 57,505 | 58,935 | 62,497 | |||||||||||
Other assets (2) | 79,850 | 78,248 | 80,850 | 85,888 | 90,244 | |||||||||||
Total assets | $ | 1,895,883 | 1,872,981 | 1,879,700 | 1,915,388 | 1,951,757 | ||||||||||
Liabilities | ||||||||||||||||
Noninterest-bearing deposits | $ | 349,534 | 352,869 | 365,021 | 370,085 | 373,722 | ||||||||||
Interest-bearing deposits | 936,636 | 913,725 | 903,843 | 933,604 | 962,269 | |||||||||||
Total deposits | 1,286,170 | 1,266,594 | 1,268,864 | 1,303,689 | 1,335,991 | |||||||||||
Short-term borrowings | 105,787 | 105,451 | 104,496 | 97,207 | 103,256 | |||||||||||
Derivative liabilities | 8,499 | 8,586 | 8,507 | 7,883 | 8,796 | |||||||||||
Accrued expenses and other liabilities | 69,317 | 71,348 | 72,480 | 73,397 | 70,615 | |||||||||||
Long-term debt | 229,044 | 221,323 | 219,284 | 227,302 | 225,020 | |||||||||||
Total liabilities | 1,698,817 | 1,673,302 | 1,673,631 | 1,709,478 | 1,743,678 | |||||||||||
Equity | ||||||||||||||||
Wells Fargo stockholders' equity: | ||||||||||||||||
Preferred stock | 23,214 | 23,482 | 25,737 | 26,227 | 25,358 | |||||||||||
Common stock | 9,136 | 9,136 | 9,136 | 9,136 | 9,136 | |||||||||||
Additional paid-in capital | 60,685 | 60,738 | 59,644 | 60,399 | 60,893 | |||||||||||
Retained earnings | 158,163 | 154,576 | 150,803 | 147,928 | 145,263 | |||||||||||
Cumulative other comprehensive income (loss) | (6,336 | ) | (6,873 | ) | (5,461 | ) | (4,921 | ) | (2,144 | ) | ||||||
Treasury stock | (47,194 | ) | (40,538 | ) | (32,620 | ) | (31,246 | ) | (29,892 | ) | ||||||
Unearned ESOP shares | (1,502 | ) | (1,780 | ) | (2,051 | ) | (2,571 | ) | (1,678 | ) | ||||||
Total Wells Fargo stockholders' equity | 196,166 | 198,741 | 205,188 | 204,952 | 206,936 | |||||||||||
Noncontrolling interests | 900 | 938 | 881 | 958 | 1,143 | |||||||||||
Total equity | 197,066 | 199,679 | 206,069 | 205,910 | 208,079 | |||||||||||
Total liabilities and equity | $ | 1,895,883 | 1,872,981 | 1,879,700 | 1,915,388 | 1,951,757 | ||||||||||
(1) Financial information has been revised to reflect the impact |
||||||||||||||||
(2) Financial information for the quarter ended December 31, 2017, |
||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||
FIVE QUARTER TRADING ASSETS AND LIABILITIES |
||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Trading assets | ||||||||||||||||
Debt securities | $ | 69,989 | 65,188 | 65,602 | 59,866 | 57,624 | ||||||||||
Equity securities (1) | 19,449 | 26,138 | 22,978 | 25,327 | 30,004 | |||||||||||
Loans held for sale | 1,469 | 1,266 | 1,350 | 1,695 | 1,023 | |||||||||||
Gross trading derivative assets | 29,216 | 30,302 | 30,758 | 30,644 | 31,340 | |||||||||||
Netting (2) | (19,807 | ) | (19,188 | ) | (20,687 | ) | (20,112 | ) | (19,629 | ) | ||||||
Total trading derivative assets | 9,409 | 11,114 | 10,071 | 10,532 | 11,711 | |||||||||||
Total trading assets | 100,316 | 103,706 | 100,001 | 97,420 | 100,362 | |||||||||||
Trading liabilities | ||||||||||||||||
Short sales | 19,720 | 23,992 | 21,765 | 23,303 | 18,472 | |||||||||||
Gross trading derivative liabilities | 28,717 | 29,268 | 29,847 | 29,717 | 31,386 | |||||||||||
Netting (2) | (21,178 | ) | (21,842 | ) | (22,311 | ) | (22,569 | ) | (23,062 | ) | ||||||
Total trading derivative liabilities | 7,539 | 7,426 | 7,536 | 7,148 | 8,324 | |||||||||||
Total trading liabilities | $ | 27,259 | 31,418 | 29,301 | 30,451 | 26,796 | ||||||||||
(1) Financial information for the quarter ended December 31, 2017, |
||||||||||||||||
(2) Represents balance sheet netting for trading derivative assets |
||||||||||||||||
FIVE QUARTER DEBT SECURITIES |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Trading debt securities | $ | 69,989 | 65,188 | 65,602 | 59,866 | 57,624 | |||||||||
Available-for-sale debt securities: | |||||||||||||||
Securities of U.S. Treasury and federal agencies | 13,348 | 6,187 | 6,271 | 6,279 | 6,319 | ||||||||||
Securities of U.S. states and political subdivisions | 49,264 | 48,216 | 47,559 | 49,643 | 51,326 | ||||||||||
Mortgage-backed securities: | |||||||||||||||
Federal agencies | 153,203 | 153,511 | 154,556 | 156,814 | 160,219 | ||||||||||
Residential and commercial | 7,000 | 6,939 | 8,286 | 9,264 | 9,173 | ||||||||||
Total mortgage-backed securities | 160,203 | 160,450 | 162,842 | 166,078 | 169,392 | ||||||||||
Other debt securities | 47,097 | 48,111 | 49,015 | 49,656 | 49,370 | ||||||||||
Total available-for-sale debt securities | 269,912 | 262,964 | 265,687 | 271,656 | 276,407 | ||||||||||
Held-to-maturity debt securities: | |||||||||||||||
Securities of U.S. Treasury and federal agencies | 44,751 | 44,743 | 44,735 | 44,727 | 44,720 | ||||||||||
Securities of U.S. states and political subdivisions | 6,286 | 6,293 | 6,300 | 6,307 | 6,313 | ||||||||||
Federal agency and other mortgage-backed securities (1) | 93,685 | 93,020 | 93,016 | 89,748 | 87,527 | ||||||||||
Other debt securities | 66 | 75 | 155 | 664 | 775 | ||||||||||
Total held-to-maturity debt securities | 144,788 | 144,131 | 144,206 | 141,446 | 139,335 | ||||||||||
Total debt securities | $ | 484,689 | 472,283 | 475,495 | 472,968 | 473,366 | |||||||||
(1) Predominantly consists of federal agency mortgage-backed |
|||||||||||||||
Wells Fargo & Company and Subsidiaries |
|||||||||||||||
FIVE QUARTER EQUITY SECURITIES |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Held for trading at fair value: | |||||||||||||||
Marketable equity securities | $ | 19,449 | 26,138 | 22,978 | 25,327 | 30,004 | |||||||||
Not held for trading: | |||||||||||||||
Fair value: | |||||||||||||||
Marketable equity securities (1) | 4,513 | 5,705 | 5,273 | 4,931 | 4,356 | ||||||||||
Nonmarketable equity securities (2) | 5,594 | 6,479 | 5,876 | 5,303 | 4,867 | ||||||||||
Total equity securities at fair value | 10,107 | 12,184 | 11,149 | 10,234 | 9,223 | ||||||||||
Equity method: | |||||||||||||||
LIHTC (3) | 10,999 | 10,453 | 10,361 | 10,318 | 10,269 | ||||||||||
Private equity | 3,832 | 3,838 | 3,732 | 3,840 | 3,839 | ||||||||||
Tax-advantaged renewable energy | 3,073 | 1,967 | 1,950 | 1,822 | 1,950 | ||||||||||
New market tax credit and other | 311 | 259 | 262 | 268 | 294 | ||||||||||
Total equity method | 18,215 | 16,517 | 16,305 | 16,248 | 16,352 | ||||||||||
Other: | |||||||||||||||
Federal bank stock and other at cost (4) | 5,643 | 5,467 | 5,673 | 5,780 | 5,828 | ||||||||||
Private equity (5) | 1,734 | 1,449 | 1,400 | 1,346 | 1,090 | ||||||||||
Total equity securities not held for trading | 35,699 | 35,617 | 34,527 | 33,608 | 32,493 | ||||||||||
Total equity securities | $ | 55,148 | 61,755 | 57,505 | 58,935 | 62,497 | |||||||||
(1) Includes $3.2 billion, $3.6 billion, $3.5 billion, $3.5 |
|||||||||||||||
(2) Includes $5.5 billion, $6.3 billion, $5.5 billion, $5.0 |
|||||||||||||||
(3) Represents low-income housing tax credit investments. |
|||||||||||||||
(4) Includes $5.6 billion, $5.4 billion, $5.6 billion, $5.7 |
|||||||||||||||
(5) Represents nonmarketable equity securities for which we have |
|||||||||||||||
Wells Fargo & Company and Subsidiaries |
|||||||||||||||
FIVE QUARTER LOANS |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 350,199 | 338,048 | 336,590 | 334,678 | 333,125 | |||||||||
Real estate mortgage | 121,014 | 120,403 | 123,964 | 125,543 | 126,599 | ||||||||||
Real estate construction | 22,496 | 23,690 | 22,937 | 23,882 | 24,279 | ||||||||||
Lease financing | 19,696 | 19,745 | 19,614 | 19,293 | 19,385 | ||||||||||
Total commercial | 513,405 | 501,886 | 503,105 | 503,396 | 503,388 | ||||||||||
Consumer: | |||||||||||||||
Real estate 1-4 family first mortgage | 285,065 | 284,273 | 283,001 | 282,658 | 284,054 | ||||||||||
Real estate 1-4 family junior lien mortgage | 34,398 | 35,330 | 36,542 | 37,920 | 39,713 | ||||||||||
Credit card | 39,025 | 37,812 | 36,684 | 36,103 | 37,976 | ||||||||||
Automobile | 45,069 | 46,075 | 47,632 | 49,554 | 53,371 | ||||||||||
Other revolving credit and installment | 36,148 | 36,924 | 37,301 | 37,677 | 38,268 | ||||||||||
Total consumer | 439,705 | 440,414 | 441,160 | 443,912 | 453,382 | ||||||||||
Total loans (1) | $ | 953,110 | 942,300 | 944,265 | 947,308 | 956,770 | |||||||||
(1) Includes $5.0 billion, $6.9 billion, $9.0 billion, $10.7 |
|||||||||||||||
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign loan
portfolio is commercial loans. Loans are classified as foreign primarily
based on whether the borrower's primary address is outside of the United
States. The following table presents total commercial foreign loans
outstanding by class of financing receivable.
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Commercial foreign loans: | |||||||||||||||
Commercial and industrial | $ | 62,564 | 61,696 | 61,732 | 59,696 | 60,106 | |||||||||
Real estate mortgage | 6,731 | 6,891 | 7,617 | 8,082 | 8,033 | ||||||||||
Real estate construction | 1,011 | 726 | 542 | 668 | 655 | ||||||||||
Lease financing | 1,159 | 1,187 | 1,097 | 1,077 | 1,126 | ||||||||||
Total commercial foreign loans | $ | 71,465 | 70,500 | 70,988 | 69,523 | 69,920 | |||||||||
Wells Fargo & Company and Subsidiaries |
|||||||||||||||
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Nonaccrual loans: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 1,486 | 1,555 | 1,559 | 1,516 | 1,899 | |||||||||
Real estate mortgage | 580 | 603 | 765 | 755 | 628 | ||||||||||
Real estate construction | 32 | 44 | 51 | 45 | 37 | ||||||||||
Lease financing | 90 | 96 | 80 | 93 | 76 | ||||||||||
Total commercial | 2,188 | 2,298 | 2,455 | 2,409 | 2,640 | ||||||||||
Consumer: | |||||||||||||||
Real estate 1-4 family first mortgage | 3,183 | 3,267 | 3,469 | 3,673 | 3,732 | ||||||||||
Real estate 1-4 family junior lien mortgage | 945 | 983 | 1,029 | 1,087 | 1,086 | ||||||||||
Automobile | 130 | 118 | 119 | 117 | 130 | ||||||||||
Other revolving credit and installment | 50 | 48 | 54 | 53 | 58 | ||||||||||
Total consumer | 4,308 | 4,416 | 4,671 | 4,930 | 5,006 | ||||||||||
Total nonaccrual loans (1)(2)(3) | $ | 6,496 | 6,714 | 7,126 | 7,339 | 7,646 | |||||||||
As a percentage of total loans | 0.68 | % | 0.71 | 0.75 | 0.77 | 0.80 | |||||||||
Foreclosed assets: | |||||||||||||||
Government insured/guaranteed | $ | 88 | 87 | 90 | 103 | 120 | |||||||||
Non-government insured/guaranteed | 363 | 435 | 409 | 468 | 522 | ||||||||||
Total foreclosed assets | 451 | 522 | 499 | 571 | 642 | ||||||||||
Total nonperforming assets | $ | 6,947 | 7,236 | 7,625 | 7,910 | 8,288 | |||||||||
As a percentage of total loans | 0.73 | % | 0.77 | 0.81 | 0.83 | 0.87 | |||||||||
(1) Financial information for periods prior to December 31, 2018 |
|||||||||||||||
(2) Excludes PCI loans because they continue to earn interest |
|||||||||||||||
(3) Real estate 1-4 family mortgage loans predominantly insured by |
|||||||||||||||
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING (1) |
|||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
||||||||||
Total (excluding PCI)(2): | $ | 8,704 | 8,838 | 9,087 | 10,351 | 11,532 | |||||||||
Less: FHA insured/VA guaranteed (3) | 7,725 | 7,906 | 8,246 | 9,385 | 10,475 | ||||||||||
Total, not government insured/guaranteed | $ | 979 | 932 | 841 | 966 | 1,057 | |||||||||
By segment and class, not government insured/guaranteed: | |||||||||||||||
Commercial: | |||||||||||||||
Commercial and industrial | $ | 43 | 42 | 23 | 40 | 26 | |||||||||
Real estate mortgage | 51 | 56 | 26 | 23 | 23 | ||||||||||
Real estate construction | — | — | — | 1 | — | ||||||||||
Total commercial | 94 | 98 | 49 | 64 | 49 | ||||||||||
Consumer: | |||||||||||||||
Real estate 1-4 family first mortgage | 124 | 128 | 132 | 163 | 213 | ||||||||||
Real estate 1-4 family junior lien mortgage | 32 | 32 | 33 | 48 | 60 | ||||||||||
Credit card | 513 | 460 | 429 | 473 | 492 | ||||||||||
Automobile | 114 | 108 | 105 | 113 | 143 | ||||||||||
Other revolving credit and installment | 102 | 106 | 93 | 105 | 100 | ||||||||||
Total consumer | 885 | 834 | 792 | 902 | 1,008 | ||||||||||
Total, not government insured/guaranteed | $ | 979 | 932 | 841 | 966 | 1,057 | |||||||||
(1) Financial information for periods prior to December 31, 2018 |
|||||||||||||||
(1) PCI loans totaled $370 million, $567 million, $811 million, |
|||||||||||||||
(2) Represents loans whose repayments are predominantly insured by |
|||||||||||||||
Wells Fargo & Company and Subsidiaries
CHANGES IN
ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination
and for which it is probable that all contractually required payments
will not be collected are considered to be credit impaired. PCI loans
predominantly represent loans acquired from Wachovia that were deemed to
be credit impaired. Evidence of credit quality deterioration as of the
purchase date may include statistics such as past due and nonaccrual
status, recent borrower credit scores and recent LTV percentages. PCI
loans are initially measured at fair value, which includes estimated
future credit losses expected to be incurred over the life of the loan.
Accordingly, the associated allowance for credit losses related to these
loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios cannot
be used to compare a portfolio that includes PCI loans against one that
does not, or to compare ratios across quarters or years. The ratios
particularly affected include the allowance for loan losses and
allowance for credit losses as percentages of loans, of nonaccrual loans
and of nonperforming assets; nonaccrual loans and nonperforming assets
as a percentage of total loans; and net charge-offs as a percentage of
loans.
The excess of cash flows expected to be collected over the carrying
value of PCI loans is referred to as the accretable yield and is
accreted into interest income over the estimated lives of the PCI loans
using the effective yield method. The accretable yield is affected by:
The change in the accretable yield related to PCI loans since the merger
with Wachovia is presented in the following table.
(in millions) |
Quarter ended Dec 31, 2018 |
Year ended |
2009-2017 | |||||||
Balance, beginning of period | $ | 4,409 | 8,887 | 10,447 | ||||||
Change in accretable yield due to acquisitions | — | — | 161 | |||||||
Accretion into interest income (1) | (202 | ) | (1,094 | ) | (16,983 | ) | ||||
Accretion into noninterest income due to sales (2) | (614 | ) | (2,374 | ) | (801 | ) | ||||
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3) |
1 | 403 | 11,597 | |||||||
Changes in expected cash flows that do not affect nonaccretable difference (4) |
(561 | ) | (2,789 | ) | 4,466 | |||||
Balance, end of period | $ | 3,033 | 3,033 | 8,887 | ||||||
(1) Includes accretable yield released as a result of settlements |
||||||||||
(2) Includes accretable yield released as a result of sales to |
||||||||||
(3) At December 31, 2018, our carrying value for PCI loans totaled |
||||||||||
(4) Represents changes in cash flows expected to be collected due |
||||||||||
Wells Fargo & Company and Subsidiaries |
|||||||||||||
CHANGES IN ALLOWANCE FOR CREDIT LOSSES |
|||||||||||||
Quarter ended December 31, | Year ended December 31, | ||||||||||||
(in millions) | 2018 | 2017 | 2018 | 2017 | |||||||||
Balance, beginning of period | $ | 10,956 | 12,109 | 11,960 | 12,540 | ||||||||
Provision for credit losses | 521 | 651 | 1,744 | 2,528 | |||||||||
Interest income on certain impaired loans (1) | (38 | ) | (49 | ) | (166 | ) | (186 | ) | |||||
Loan charge-offs: | |||||||||||||
Commercial: | |||||||||||||
Commercial and industrial | (220 | ) | (181 | ) | (727 | ) | (789 | ) | |||||
Real estate mortgage | (12 | ) | (4 | ) | (42 | ) | (38 | ) | |||||
Real estate construction | — | — | — | — | |||||||||
Lease financing | (18 | ) | (14 | ) | (70 | ) | (45 | ) | |||||
Total commercial | (250 | ) | (199 | ) | (839 | ) | (872 | ) | |||||
Consumer: | |||||||||||||
Real estate 1-4 family first mortgage | (38 | ) | (49 | ) | (179 | ) | (240 | ) | |||||
Real estate 1-4 family junior lien mortgage | (38 | ) | (54 | ) | (179 | ) | (279 | ) | |||||
Credit card | (414 | ) | (398 | ) | (1,599 | ) | (1,481 | ) | |||||
Automobile | (217 | ) | (261 | ) | (947 | ) | (1,002 | ) | |||||
Other revolving credit and installment | (180 | ) | (169 | ) | (685 | ) | (713 | ) | |||||
Total consumer | (887 | ) | (931 | ) | (3,589 | ) | (3,715 | ) | |||||
Total loan charge-offs | (1,137 | ) | (1,130 | ) | (4,428 | ) | (4,587 | ) | |||||
Loan recoveries: | |||||||||||||
Commercial: | |||||||||||||
Commercial and industrial | 88 | 63 | 304 | 297 | |||||||||
Real estate mortgage | 24 | 14 | 70 | 82 | |||||||||
Real estate construction | 1 | 3 | 13 | 30 | |||||||||
Lease financing | 5 | 4 | 23 | 17 | |||||||||
Total commercial | 118 | 84 | 410 | 426 | |||||||||
Consumer: |
|||||||||||||
Real estate 1-4 family first mortgage | 60 | 72 | 267 | 288 | |||||||||
Real estate 1-4 family junior lien mortgage | 48 | 61 | 219 | 266 | |||||||||
Credit card | 76 | 62 | 307 | 239 | |||||||||
Automobile | 84 | 73 | 363 | 319 | |||||||||
Other revolving credit and installment | 30 | 27 | 118 | 121 | |||||||||
Total consumer | 298 | 295 | 1,274 | 1,233 | |||||||||
Total loan recoveries | 416 | 379 | 1,684 | 1,659 | |||||||||
Net loan charge-offs | (721 | ) | (751 | ) | (2,744 | ) | (2,928 | ) | |||||
Other | (11 | ) | — | (87 | ) | 6 | |||||||
Balance, end of period | $ | 10,707 | 11,960 | 10,707 | 11,960 | ||||||||
Components: | |||||||||||||
Allowance for loan losses | $ | 9,775 | 11,004 | 9,775 | 11,004 | ||||||||
Allowance for unfunded credit commitments | 932 | 956 | 932 | 956 | |||||||||
Allowance for credit losses | $ | 10,707 | 11,960 | 10,707 | 11,960 | ||||||||
Net loan charge-offs (annualized) as a percentage of average total loans |
0.30 | % | 0.31 | 0.29 | 0.31 | ||||||||
Allowance for loan losses as a percentage of total loans | 1.03 | 1.15 | 1.03 | 1.15 | |||||||||
Allowance for credit losses as a percentage of total loans | 1.12 | 1.25 | 1.12 | 1.25 | |||||||||
(1) Certain impaired loans with an allowance calculated by |
|||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES |
||||||||||||||||
Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
Balance, beginning of quarter | $ | 10,956 | 11,110 | 11,313 | 11,960 | 12,109 | ||||||||||
Provision for credit losses | 521 | 580 | 452 | 191 | 651 | |||||||||||
Interest income on certain impaired loans (1) | (38 | ) | (42 | ) | (43 | ) | (43 | ) | (49 | ) | ||||||
Loan charge-offs: | ||||||||||||||||
Commercial: | ||||||||||||||||
Commercial and industrial | (220 | ) | (209 | ) | (134 | ) | (164 | ) | (181 | ) | ||||||
Real estate mortgage | (12 | ) | (9 | ) | (19 | ) | (2 | ) | (4 | ) | ||||||
Real estate construction | — | — | — | — | — | |||||||||||
Lease financing | (18 | ) | (15 | ) | (20 | ) | (17 | ) | (14 | ) | ||||||
Total commercial | (250 | ) | (233 | ) | (173 | ) | (183 | ) | (199 | ) | ||||||
Consumer: | ||||||||||||||||
Real estate 1-4 family first mortgage | (38 | ) | (45 | ) | (55 | ) | (41 | ) | (49 | ) | ||||||
Real estate 1-4 family junior lien mortgage | (38 | ) | (47 | ) | (47 | ) | (47 | ) | (54 | ) | ||||||
Credit card | (414 | ) | (376 | ) | (404 | ) | (405 | ) | (398 | ) | ||||||
Automobile | (217 | ) | (214 | ) | (216 | ) | (300 | ) | (261 | ) | ||||||
Other revolving credit and installment | (180 | ) | (161 | ) | (164 | ) | (180 | ) | (169 | ) | ||||||
Total consumer | (887 | ) | (843 | ) | (886 | ) | (973 | ) | (931 | ) | ||||||
Total loan charge-offs | (1,137 | ) | (1,076 | ) | (1,059 | ) | (1,156 | ) | (1,130 | ) | ||||||
Loan recoveries: | ||||||||||||||||
Commercial: | ||||||||||||||||
Commercial and industrial | 88 | 61 | 76 | 79 | 63 | |||||||||||
Real estate mortgage | 24 | 10 | 19 | 17 | 14 | |||||||||||
Real estate construction | 1 | 2 | 6 | 4 | 3 | |||||||||||
Lease financing | 5 | 8 | 5 | 5 | 4 | |||||||||||
Total commercial | 118 | 81 | 106 | 105 | 84 | |||||||||||
Consumer: | ||||||||||||||||
Real estate 1-4 family first mortgage | 60 | 70 | 78 | 59 | 72 | |||||||||||
Real estate 1-4 family junior lien mortgage | 48 | 56 | 60 | 55 | 61 | |||||||||||
Credit card | 76 | 77 | 81 | 73 | 62 | |||||||||||
Automobile | 84 | 84 | 103 | 92 | 73 | |||||||||||
Other revolving credit and installment | 30 | 28 | 29 | 31 | 27 | |||||||||||
Total consumer | 298 | 315 | 351 | 310 | 295 | |||||||||||
Total loan recoveries | 416 | 396 | 457 | 415 | 379 | |||||||||||
Net loan charge-offs | (721 | ) | (680 | ) | (602 | ) | (741 | ) | (751 | ) | ||||||
Other | (11 | ) | (12 | ) | (10 | ) | (54 | ) | — | |||||||
Balance, end of quarter | $ | 10,707 | 10,956 | 11,110 | 11,313 | 11,960 | ||||||||||
Components: | ||||||||||||||||
Allowance for loan losses | $ | 9,775 | 10,021 | 10,193 | 10,373 | 11,004 | ||||||||||
Allowance for unfunded credit commitments | 932 | 935 | 917 | 940 | 956 | |||||||||||
Allowance for credit losses | $ | 10,707 | 10,956 | 11,110 | 11,313 | 11,960 | ||||||||||
Net loan charge-offs (annualized) as a percentage of average total loans |
0.30 | % | 0.29 | 0.26 | 0.32 | 0.31 | ||||||||||
Allowance for loan losses as a percentage of: | ||||||||||||||||
Total loans | 1.03 | 1.06 | 1.08 | 1.10 | 1.15 | |||||||||||
Nonaccrual loans (2) | 150 | 149 | 143 | 141 | 144 | |||||||||||
Nonaccrual loans and other nonperforming assets (2) | 141 | 138 | 134 | 131 | 133 | |||||||||||
Allowance for credit losses as a percentage of: | ||||||||||||||||
Total loans | 1.12 | 1.16 | 1.18 | 1.19 | 1.25 | |||||||||||
Nonaccrual loans (2) | 165 | 163 | 156 | 154 | 156 | |||||||||||
Nonaccrual loans and other nonperforming assets (2) | 154 | 151 | 146 | 143 | 144 | |||||||||||
(1) Certain impaired loans with an allowance calculated by |
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(2) Financial information for periods prior to the quarter ended |
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Wells Fargo & Company and Subsidiaries |
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TANGIBLE COMMON EQUITY (1) |
||||||||||||||||||
(in millions, except ratios) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||||
Tangible book value per common share (1): | ||||||||||||||||||
Total equity | $ | 197,066 | 199,679 | 206,069 | 205,910 | 208,079 | ||||||||||||
Adjustments: | ||||||||||||||||||
Preferred stock | (23,214 | ) | (23,482 | ) | (25,737 | ) | (26,227 | ) | (25,358 | ) | ||||||||
Additional paid-in capital on ESOP
preferred stock |
(95 | ) | (105 | ) | (116 | ) | (146 | ) | (122 | ) | ||||||||
Unearned ESOP shares | 1,502 | 1,780 | 2,051 | 2,571 | 1,678 | |||||||||||||
Noncontrolling interests | (900 | ) | (938 | ) | (881 | ) | (958 | ) | (1,143 | ) | ||||||||
Total common stockholders' equity | (A) | 174,359 | 176,934 | 181,386 | 181,150 | 183,134 | ||||||||||||
Adjustments: | ||||||||||||||||||
Goodwill | (26,418 | ) | (26,425 | ) | (26,429 | ) | (26,445 | ) | (26,587 | ) | ||||||||
Certain identifiable intangible assets
(other than MSRs) |
(559 | ) | (826 | ) | (1,091 | ) | (1,357 | ) | (1,624 | ) | ||||||||
Other assets (2) | (2,187 | ) | (2,121 | ) | (2,160 | ) | (2,388 | ) | (2,155 | ) | ||||||||
Applicable deferred taxes (3) | 785 | 829 | 874 | 918 | 962 | |||||||||||||
Tangible common equity | (B) | $ | 145,980 | 148,391 | 152,580 | 151,878 | 153,730 | |||||||||||
Common shares outstanding | (C) | 4,581.3 | 4,711.6 | 4,849.1 | 4,873.9 | 4,891.6 | ||||||||||||
Book value per common share | (A)/(C) | $ | 38.06 | 37.55 | 37.41 | 37.17 | 37.44 | |||||||||||
Tangible book value per common share | (B)/(C) | 31.86 | 31.49 | 31.47 | 31.16 | 31.43 |
Quarter ended | Year ended | ||||||||||||||||||||||||
(in millions, except ratios) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
Dec 31, 2018 |
Dec 31, 2017 |
||||||||||||||||||
Return on average tangible common equity (1): | |||||||||||||||||||||||||
Net income applicable to common stock | (A) | $ | 5,711 | 5,453 | 4,792 | 4,733 | 5,740 | 20,689 | 20,554 | ||||||||||||||||
Average total equity | 198,442 | 202,826 | 206,067 | 206,180 | 207,413 | 203,356 | 205,654 | ||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Preferred stock | (23,463 | ) | (24,219 | ) | (26,021 | ) | (26,157 | ) | (25,569 | ) | (24,956 | ) | (25,592 | ) | |||||||||||
Additional paid-in capital on ESOP preferred stock | (105 | ) | (115 | ) | (129 | ) | (153 | ) | (129 | ) | (125 | ) | (139 | ) | |||||||||||
Unearned ESOP shares | 1,761 | 2,026 | 2,348 | 2,508 | 1,896 | 2,159 | 2,143 | ||||||||||||||||||
Noncontrolling interests | (910 | ) | (892 | ) | (919 | ) | (997 | ) | (998 | ) | (929 | ) | (948 | ) | |||||||||||
Average common stockholders' equity | (B) | 175,725 | 179,626 | 181,346 | 181,381 | 182,613 | 179,505 | 181,118 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Goodwill | (26,423 | ) | (26,429 | ) | (26,444 | ) | (26,516 | ) | (26,579 | ) | (26,453 | ) | (26,629 | ) | |||||||||||
Certain identifiable intangible assets (other than MSRs) | (693 | ) | (958 | ) | (1,223 | ) | (1,489 | ) | (1,767 | ) | (1,088 | ) | (2,176 | ) | |||||||||||
Other assets (2) | (2,204 | ) | (2,083 | ) | (2,271 | ) | (2,233 | ) | (2,245 | ) | (2,197 | ) | (2,184 | ) | |||||||||||
Applicable deferred taxes (3) | 800 | 845 | 889 | 933 | 1,332 | 866 | 1,570 | ||||||||||||||||||
Average tangible common equity | (C) | $ | 147,205 | 151,001 | 152,297 | 152,076 | 153,354 | 150,633 | 151,699 | ||||||||||||||||
Return on average common stockholders' equity (ROE) (annualized) | (A)/(B) | 12.89 | % | 12.04 | 10.60 | 10.58 | 12.47 | 11.53 | 11.35 | ||||||||||||||||
Return on average tangible common equity (ROTCE) (annualized) | (A)/(C) | 15.39 | 14.33 | 12.62 | 12.62 | 14.85 | 13.73 | 13.55 | |||||||||||||||||
(1) Tangible common equity is a non-GAAP financial measure and |
|||||||||||||||||||||||||
(2) Represents goodwill and other intangibles on nonmarketable |
|||||||||||||||||||||||||
(3) Applicable deferred taxes relate to goodwill and other |
|||||||||||||||||||||||||
Wells Fargo & Company and Subsidiaries |
||||||||||||||||||
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1) |
||||||||||||||||||
Estimated | ||||||||||||||||||
(in billions, except ratio) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||||
Total equity | $ | 197.1 | 199.7 | 206.1 | 205.9 | 208.1 | ||||||||||||
Adjustments: | ||||||||||||||||||
Preferred stock | (23.2 | ) | (23.5 | ) | (25.7 | ) | (26.2 | ) | (25.4 | ) | ||||||||
Additional paid-in capital on ESOP
preferred stock |
(0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||
Unearned ESOP shares | 1.5 | 1.8 | 2.0 | 2.6 | 1.7 | |||||||||||||
Noncontrolling interests | (0.9 | ) | (0.9 | ) | (0.9 | ) | (1.0 | ) | (1.1 | ) | ||||||||
Total common stockholders' equity | 174.4 | 177.0 | 181.4 | 181.2 | 183.2 | |||||||||||||
Adjustments: | ||||||||||||||||||
Goodwill | (26.4 | ) | (26.4 | ) | (26.4 | ) | (26.4 | ) | (26.6 | ) | ||||||||
Certain identifiable intangible assets (other than MSRs) | (0.6 | ) | (0.8 | ) | (1.1 | ) | (1.4 | ) | (1.6 | ) | ||||||||
Other assets (2) | (2.2 | ) | (2.1 | ) | (2.2 | ) | (2.4 | ) | (2.2 | ) | ||||||||
Applicable deferred taxes (3) | 0.8 | 0.8 | 0.9 | 0.9 | 1.0 | |||||||||||||
Investment in certain subsidiaries and other | 0.4 | 0.4 | 0.4 | 0.4 | 0.2 | |||||||||||||
Common Equity Tier 1 (Fully Phased-In) under Basel III | (A) | 146.4 | 148.9 | 153.0 | 152.3 | 154.0 | ||||||||||||
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5) | (B) | $ | 1,248.4 | 1,250.2 | 1,276.3 | 1,278.1 | 1,285.6 | |||||||||||
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5) |
(A)/(B) | 11.7 | % | 11.9 | 12.0 | 11.9 | 12.0 | |||||||||||
(1) Basel III capital rules, adopted by the Federal Reserve Board |
||||||||||||||||||
(2) Represents goodwill and other intangibles on nonmarketable |
||||||||||||||||||
(3) Applicable deferred taxes relate to goodwill and other |
||||||||||||||||||
(4) The final Basel III capital rules provide for two capital |
||||||||||||||||||
(5) The Company's December 31, 2018, RWAs and capital ratio are |
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Wells Fargo & Company and Subsidiaries |
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OPERATING SEGMENT RESULTS (1) |
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(income/expense in millions, |
Community Banking |
Wholesale |
Wealth and |
Other (2) |
Consolidated |
||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
Quarter ended Dec 31, | |||||||||||||||||||||||||||||||
Net interest income (3) | $ | 7,340 | 7,239 | 4,739 | 4,557 | 1,116 | 1,152 | (551 | ) | (635 | ) | 12,644 | 12,313 | ||||||||||||||||||
Provision (reversal of provision) for credit losses | 534 | 636 | (28 | ) | 20 | (3 | ) | (7 | ) | 18 | 2 | 521 | 651 | ||||||||||||||||||
Noninterest income | 4,121 | 4,481 | 2,187 | 2,883 | 2,841 | 3,181 | (813 | ) | (808 | ) | 8,336 | 9,737 | |||||||||||||||||||
Noninterest expense | 7,032 | 10,216 | 4,025 | 4,187 | 3,044 | 3,246 | (762 | ) | (849 | ) | 13,339 | 16,800 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 3,895 | 868 | 2,929 | 3,233 | 916 | 1,094 | (620 | ) | (596 | ) | 7,120 | 4,599 | |||||||||||||||||||
Income tax expense (benefit) | 637 | (2,682 | ) | 253 | 854 | 231 | 413 | (155 | ) | (227 | ) | 966 | (1,642 | ) | |||||||||||||||||
Net income (loss) before noncontrolling interests | 3,258 | 3,550 | 2,676 | 2,379 | 685 | 681 | (465 | ) | (369 | ) | 6,154 | 6,241 | |||||||||||||||||||
Less: Net income (loss) from noncontrolling interests | 89 | 78 | 5 | 6 | (4 | ) | 6 | — | — | 90 | 90 | ||||||||||||||||||||
Net income (loss) | $ | 3,169 | 3,472 | 2,671 | 2,373 | 689 | 675 | (465 | ) | (369 | ) | 6,064 | 6,151 | ||||||||||||||||||
Average loans | $ | 459.7 | 473.2 | 470.2 | 463.5 | 75.2 | 72.9 | (58.8 | ) | (57.8 | ) | 946.3 | 951.8 | ||||||||||||||||||
Average assets | 1,015.9 | 1,073.2 | 839.1 | 837.2 | 83.6 | 83.7 | (59.6 | ) | (58.8 | ) | 1,879.0 | 1,935.3 | |||||||||||||||||||
Average deposits | 759.4 | 738.3 | 421.6 | 465.7 | 155.5 | 184.1 | (67.6 | ) | (76.5 | ) | 1,268.9 | 1,311.6 | |||||||||||||||||||
Year ended Dec 31, | |||||||||||||||||||||||||||||||
Net interest income (3) | $ | 29,219 | 28,658 | 18,690 | 18,810 | 4,441 | 4,641 | (2,355 | ) | (2,552 | ) | 49,995 | 49,557 | ||||||||||||||||||
Provision (reversal of provision) for credit losses | 1,783 | 2,555 | (58 | ) | (19 | ) | (5 | ) | (5 | ) | 24 | (3 | ) | 1,744 | 2,528 | ||||||||||||||||
Noninterest income | 17,694 | 18,360 | 10,016 | 11,190 | 11,935 | 12,431 | (3,232 | ) | (3,149 | ) | 36,413 | 38,832 | |||||||||||||||||||
Noninterest expense | 30,491 | 32,615 | 16,157 | 16,624 | 12,938 | 12,623 | (3,460 | ) | (3,378 | ) | 56,126 | 58,484 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | 14,639 | 11,848 | 12,607 | 13,395 | 3,443 | 4,454 | (2,151 | ) | (2,320 | ) | 28,538 | 27,377 | |||||||||||||||||||
Income tax expense (benefit) | 3,784 | 634 | 1,555 | 3,496 | 861 | 1,668 | (538 | ) | (881 | ) | 5,662 | 4,917 | |||||||||||||||||||
Net income (loss) before noncontrolling interests | 10,855 | 11,214 | 11,052 | 9,899 | 2,582 | 2,786 | (1,613 | ) | (1,439 | ) | 22,876 | 22,460 | |||||||||||||||||||
Less: Net income (loss) from noncontrolling interests | 461 | 276 | 20 | (15 | ) | 2 | 16 | — | — | 483 | 277 | ||||||||||||||||||||
Net income (loss) | $ | 10,394 | 10,938 | 11,032 | 9,914 | 2,580 | 2,770 | (1,613 | ) | (1,439 | ) | 22,393 | 22,183 | ||||||||||||||||||
Average loans | $ | 463.7 | 475.7 | 465.7 | 465.6 | 74.6 | 71.9 | (58.8 | ) | (57.1 | ) | 945.2 | 956.1 | ||||||||||||||||||
Average assets | 1,034.1 | 1,085.5 | 830.5 | 822.8 | 83.9 | 82.8 | (59.6 | ) | (58.1 | ) | 1,888.9 | 1,933.0 | |||||||||||||||||||
Average deposits | 757.2 | 729.6 | 423.7 | 464.2 | 165.0 | 189.0 | (70.0 | ) | (78.2 | ) | 1,275.9 | 1,304.6 | |||||||||||||||||||
(1) The management accounting process measures the performance of |
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(2) Includes the elimination of certain items that are included in |
|||||||||||||||||||||||||||||||
(3) Net interest income is the difference between interest earned |
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Wells Fargo & Company and Subsidiaries |
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FIVE QUARTER OPERATING SEGMENT RESULTS (1) |
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Quarter ended | ||||||||||||||||
(income/expense in millions, average balances in billions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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COMMUNITY BANKING | ||||||||||||||||
Net interest income (2) | $ | 7,340 | 7,338 | 7,346 | 7,195 | 7,239 | ||||||||||
Provision for credit losses | 534 | 547 | 484 | 218 | 636 | |||||||||||
Noninterest income | 4,121 | 4,478 | 4,460 | 4,635 | 4,481 | |||||||||||
Noninterest expense | 7,032 | 7,467 | 7,290 | 8,702 | 10,216 | |||||||||||
Income before income tax expense | 3,895 | 3,802 | 4,032 | 2,910 | 868 | |||||||||||
Income tax expense (benefit) | 637 | 925 | 1,413 | 809 | (2,682 | ) | ||||||||||
Net income before noncontrolling interests | 3,258 | 2,877 | 2,619 | 2,101 | 3,550 | |||||||||||
Less: Net income from noncontrolling interests | 89 | 61 | 123 | 188 | 78 | |||||||||||
Segment net income | $ | 3,169 | 2,816 | 2,496 | 1,913 | 3,472 | ||||||||||
Average loans | $ | 459.7 | 460.9 | 463.8 | 470.5 | 473.2 | ||||||||||
Average assets | 1,015.9 | 1,024.9 | 1,034.3 | 1,061.9 | 1,073.2 | |||||||||||
Average deposits | 759.4 | 760.9 | 760.6 | 747.5 | 738.3 | |||||||||||
WHOLESALE BANKING | ||||||||||||||||
Net interest income (2) | $ | 4,739 | 4,726 | 4,693 | 4,532 | 4,557 | ||||||||||
Provision (reversal of provision) for credit losses | (28 | ) | 26 | (36 | ) | (20 | ) | 20 | ||||||||
Noninterest income | 2,187 | 2,578 | 2,504 | 2,747 | 2,883 | |||||||||||
Noninterest expense | 4,025 | 3,935 | 4,219 | 3,978 | 4,187 | |||||||||||
Income before income tax expense | 2,929 | 3,343 | 3,014 | 3,321 | 3,233 | |||||||||||
Income tax expense | 253 | 475 | 379 | 448 | 854 | |||||||||||
Net income before noncontrolling interests | 2,676 | 2,868 | 2,635 | 2,873 | 2,379 | |||||||||||
Less: Net income (loss) from noncontrolling interests | 5 | 17 | — | (2 | ) | 6 | ||||||||||
Segment net income | $ | 2,671 | 2,851 | 2,635 | 2,875 | 2,373 | ||||||||||
Average loans | $ | 470.2 | 462.8 | 464.7 | 465.1 | 463.5 | ||||||||||
Average assets | 839.1 | 827.2 | 826.4 | 829.2 | 837.2 | |||||||||||
Average deposits | 421.6 | 413.6 | 414.0 | 446.0 | 465.7 | |||||||||||
WEALTH AND INVESTMENT MANAGEMENT | ||||||||||||||||
Net interest income (2) | $ | 1,116 | 1,102 | 1,111 | 1,112 | 1,152 | ||||||||||
Provision (reversal of provision) for credit losses | (3 | ) | 6 | (2 | ) | (6 | ) | (7 | ) | |||||||
Noninterest income | 2,841 | 3,124 | 2,840 | 3,130 | 3,181 | |||||||||||
Noninterest expense | 3,044 | 3,243 | 3,361 | 3,290 | 3,246 | |||||||||||
Income before income tax expense | 916 | 977 | 592 | 958 | 1,094 | |||||||||||
Income tax expense | 231 | 244 | 147 | 239 | 413 | |||||||||||
Net income before noncontrolling interests | 685 | 733 | 445 | 719 | 681 | |||||||||||
Less: Net income (loss) from noncontrolling interests | (4 | ) | 1 | — | 5 | 6 | ||||||||||
Segment net income | $ | 689 | 732 | 445 | 714 | 675 | ||||||||||
Average loans | $ | 75.2 | 74.6 | 74.7 | 73.9 | 72.9 | ||||||||||
Average assets | 83.6 | 83.8 | 84.0 | 84.2 | 83.7 | |||||||||||
Average deposits | 155.5 | 159.8 | 167.1 | 177.9 | 184.1 | |||||||||||
OTHER (3) | ||||||||||||||||
Net interest income (2) | $ | (551 | ) | (594 | ) | (609 | ) | (601 | ) | (635 | ) | |||||
Provision (reversal of provision) for credit losses | 18 | 1 | 6 | (1 | ) | 2 | ||||||||||
Noninterest income | (813 | ) | (811 | ) | (792 | ) | (816 | ) | (808 | ) | ||||||
Noninterest expense | (762 | ) | (882 | ) | (888 | ) | (928 | ) | (849 | ) | ||||||
Loss before income tax benefit | (620 | ) | (524 | ) | (519 | ) | (488 | ) | (596 | ) | ||||||
Income tax benefit | (155 | ) | (132 | ) | (129 | ) | (122 | ) | (227 | ) | ||||||
Net loss before noncontrolling interests | (465 | ) | (392 | ) | (390 | ) | (366 | ) | (369 | ) | ||||||
Less: Net income from noncontrolling interests | — | — | — | — | — | |||||||||||
Other net loss | $ | (465 | ) | (392 | ) | (390 | ) | (366 | ) | (369 | ) | |||||
Average loans | $ | (58.8 | ) | (58.8 | ) | (59.1 | ) | (58.5 | ) | (57.8 | ) | |||||
Average assets | (59.6 | ) | (59.6 | ) | (59.8 | ) | (59.4 | ) | (58.8 | ) | ||||||
Average deposits | (67.6 | ) | (67.9 | ) | (70.4 | ) | (74.2 | ) | (76.5 | ) | ||||||
CONSOLIDATED COMPANY | ||||||||||||||||
Net interest income (2) | $ | 12,644 | 12,572 | 12,541 | 12,238 | 12,313 | ||||||||||
Provision for credit losses | 521 | 580 | 452 | 191 | 651 | |||||||||||
Noninterest income | 8,336 | 9,369 | 9,012 | 9,696 | 9,737 | |||||||||||
Noninterest expense | 13,339 | 13,763 | 13,982 | 15,042 | 16,800 | |||||||||||
Income before income tax expense | 7,120 | 7,598 | 7,119 | 6,701 | 4,599 | |||||||||||
Income tax expense (benefit) | 966 | 1,512 | 1,810 | 1,374 | (1,642 | ) | ||||||||||
Net income before noncontrolling interests | 6,154 | 6,086 | 5,309 | 5,327 | 6,241 | |||||||||||
Less: Net income from noncontrolling interests | 90 | 79 | 123 | 191 | 90 | |||||||||||
Wells Fargo net income | $ | 6,064 | 6,007 | 5,186 | 5,136 | 6,151 | ||||||||||
Average loans | $ | 946.3 | 939.5 | 944.1 | 951.0 | 951.8 | ||||||||||
Average assets | 1,879.0 | 1,876.3 | 1,884.9 | 1,915.9 | 1,935.3 | |||||||||||
Average deposits | 1,268.9 | 1,266.4 | 1,271.3 | 1,297.2 | 1,311.6 | |||||||||||
(1) The management accounting process measures the performance of |
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(2) Net interest income is the difference between interest earned |
||||||||||||||||
(3) Includes the elimination of certain items that are included in |
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Wells Fargo & Company and Subsidiaries |
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FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING |
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Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
|||||||||||
MSRs measured using the fair value method: | ||||||||||||||||
Fair value, beginning of quarter | $ | 15,980 | 15,411 | 15,041 | 13,625 | 13,338 | ||||||||||
Servicing from securitizations or asset transfers (1) | 449 | 502 | 486 | 573 | 639 | |||||||||||
Sales and other (2) | (64 | ) | (2 | ) | (1 | ) | (4 | ) | (32 | ) | ||||||
Net additions | 385 | 500 | 485 | 569 | 607 | |||||||||||
Changes in fair value: | ||||||||||||||||
Due to changes in valuation model inputs or assumptions: | ||||||||||||||||
Mortgage interest rates (3) | (874 | ) | 582 | 376 | 1,253 | 221 | ||||||||||
Servicing and foreclosure costs (4) | 763 | (9 | ) | 30 | 34 | 23 | ||||||||||
Discount rates (5) | (821 | ) | (9 | ) | — | — | 13 | |||||||||
Prepayment estimates and other (6) | (314 | ) | (33 | ) | (61 | ) | 43 | (55 | ) | |||||||
Net changes in valuation model inputs or assumptions | (1,246 | ) | 531 | 345 | 1,330 | 202 | ||||||||||
Changes due to collection/realization of expected cash flows over time |
(470 | ) | (462 | ) | (460 | ) | (483 | ) | (522 | ) | ||||||
Total changes in fair value | (1,716 | ) | 69 | (115 | ) | 847 | (320 | ) | ||||||||
Fair value, end of quarter | $ | 14,649 | 15,980 | 15,411 | 15,041 | 13,625 | ||||||||||
(1) Includes impacts associated with exercising our right to |
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(2) Includes sales and transfers of MSRs, which can result in an |
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(3) Includes prepayment speed changes as well as other valuation |
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(4) Includes costs to service and unreimbursed foreclosure costs. |
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(5) Reflects discount rate assumption change, excluding portion |
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(6) Represents changes driven by other valuation model inputs or |
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Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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Amortized MSRs: | ||||||||||||||||
Balance, beginning of quarter | $ | 1,414 | 1,407 | 1,411 | 1,424 | 1,406 | ||||||||||
Purchases | 45 | 42 | 22 | 18 | 40 | |||||||||||
Servicing from securitizations or asset transfers | 52 | 33 | 39 | 34 | 43 | |||||||||||
Amortization | (68 | ) | (68 | ) | (65 | ) | (65 | ) | (65 | ) | ||||||
Balance, end of quarter | $ | 1,443 | 1,414 | 1,407 | 1,411 | 1,424 | ||||||||||
Fair value of amortized MSRs: | ||||||||||||||||
Beginning of quarter | $ | 2,389 | 2,309 | 2,307 | 2,025 | 1,990 | ||||||||||
End of quarter | 2,288 | 2,389 | 2,309 | 2,307 | 2,025 | |||||||||||
Wells Fargo & Company and Subsidiaries |
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FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED) |
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Quarter ended | ||||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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Servicing income, net: | ||||||||||||||||||
Servicing fees (1) | $ | 925 | 890 | 905 | 906 | 833 | ||||||||||||
Changes in fair value of MSRs carried at fair value: | ||||||||||||||||||
Due to changes in valuation model inputs or assumptions (2) | (A) | (1,246 | ) | 531 | 345 | 1,330 | 202 | |||||||||||
Changes due to collection/realization of expected cash flows over time |
(470 | ) | (462 | ) | (460 | ) | (483 | ) | (522 | ) | ||||||||
Total changes in fair value of MSRs carried at fair value | (1,716 | ) | 69 | (115 | ) | 847 | (320 | ) | ||||||||||
Amortization | (68 | ) | (68 | ) | (65 | ) | (65 | ) | (65 | ) | ||||||||
Net derivative gains (losses) from economic hedges (3) | (B) | 968 | (501 | ) | (319 | ) | (1,220 | ) | (186 | ) | ||||||||
Total servicing income, net | $ | 109 | 390 | 406 | 468 | 262 | ||||||||||||
Market-related valuation changes to MSRs, net of hedge results (2)(3) |
(A)+(B) |
$ | (278 | ) | 30 | 26 | 110 | 16 | ||||||||||
(1) Includes contractually specified servicing fees, late charges |
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(2) Refer to the changes in fair value MSRs table on the previous |
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(3) Represents results from economic hedges used to hedge the risk |
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(in billions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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Managed servicing portfolio (1): | |||||||||||||||
Residential mortgage servicing: | |||||||||||||||
Serviced for others | $ | 1,164 | 1,184 | 1,190 | 1,201 | 1,209 | |||||||||
Owned loans serviced | 334 | 337 | 340 | 337 | 342 | ||||||||||
Subserviced for others | 4 | 5 | 4 | 5 | 3 | ||||||||||
Total residential servicing | 1,502 | 1,526 | 1,534 | 1,543 | 1,554 | ||||||||||
Commercial mortgage servicing: | |||||||||||||||
Serviced for others | 543 | 529 | 518 | 510 | 495 | ||||||||||
Owned loans serviced | 121 | 121 | 124 | 125 | 127 | ||||||||||
Subserviced for others | 9 | 9 | 10 | 10 | 9 | ||||||||||
Total commercial servicing | 673 | 659 | 652 | 645 | 631 | ||||||||||
Total managed servicing portfolio | $ | 2,175 | 2,185 | 2,186 | 2,188 | 2,185 | |||||||||
Total serviced for others | $ | 1,707 | 1,713 | 1,708 | 1,711 | 1,704 | |||||||||
Ratio of MSRs to related loans serviced for others | 0.94 | % | 1.02 | 0.98 | 0.96 | 0.88 | |||||||||
Weighted-average note rate (mortgage loans serviced for others) | 4.32 | 4.29 | 4.27 | 4.24 | 4.23 | ||||||||||
(1) The components of our managed servicing portfolio are |
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Wells Fargo & Company and Subsidiaries |
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SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA |
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Quarter ended | |||||||||||||||||
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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Net gains on mortgage loan origination/sales activities (in millions): |
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Residential | (A) | $ | 245 | 324 | 281 | 324 | 504 | ||||||||||
Commercial | 65 | 75 | 49 | 76 | 95 | ||||||||||||
Residential pipeline and unsold/repurchased loan management (1) | 48 | 57 | 34 | 66 | 67 | ||||||||||||
Total | $ | 358 | 456 | 364 | 466 | 666 | |||||||||||
Application data (in billions): | |||||||||||||||||
Wells Fargo first mortgage quarterly applications | $ | 48 | 57 | 67 | 58 | 63 | |||||||||||
Refinances as a percentage of applications | 30 | % | 26 | 25 | 35 | 38 | |||||||||||
Wells Fargo first mortgage unclosed pipeline, at quarter end | $ | 18 | 22 | 26 | 24 | 23 | |||||||||||
Residential real estate originations: | |||||||||||||||||
Purchases as a percentage of originations | 78 | % | 81 | 78 | 65 | 64 | |||||||||||
Refinances as a percentage of originations | 22 | 19 | 22 | 35 | 36 | ||||||||||||
Total | 100 | % | 100 | 100 | 100 | 100 | |||||||||||
Wells Fargo first mortgage loans (in billions): | |||||||||||||||||
Retail | $ | 16 | 18 | 21 | 16 | 23 | |||||||||||
Correspondent | 21 | 27 | 28 | 27 | 30 | ||||||||||||
Other (2) | 1 | 1 | 1 | — | — | ||||||||||||
Total quarter-to-date | $ | 38 | 46 | 50 | 43 | 53 | |||||||||||
Held-for-sale | (B) | $ | 28 | 33 | 37 | 34 | 40 | ||||||||||
Held-for-investment | 10 | 13 | 13 | 9 | 13 | ||||||||||||
Total quarter-to-date | $ | 38 | 46 | 50 | 43 | 53 | |||||||||||
Total year-to-date | $ | 177 | 139 | 93 | 43 | 212 | |||||||||||
Production margin on residential held-for-sale mortgage originations |
(A)/(B) | 0.89 | % | 0.97 | 0.77 | 0.94 | 1.25 | ||||||||||
(1) Predominantly includes the results of sales of modified GNMA |
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(2) Consists of home equity loans and lines. |
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CHANGES IN MORTGAGE REPURCHASE LIABILITY |
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Quarter ended | ||||||||||||||||
(in millions) |
Dec 31, 2018 |
Sep 30, 2018 |
Jun 30, 2018 |
Mar 31, 2018 |
Dec 31, 2017 |
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Balance, beginning of period | $ | 178 | 179 | 181 | 181 | 179 | ||||||||||
Provision for repurchase losses: | ||||||||||||||||
Loan sales | 5 | 5 | 4 | 3 | 4 | |||||||||||
Change in estimate (1) | (15 | ) | (4 | ) | (2 | ) | 1 | 2 | ||||||||
Net additions (reductions) to provision | (10 | ) | 1 | 2 | 4 | 6 | ||||||||||
Losses | (3 | ) | (2 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||
Balance, end of period | $ | 165 | 178 | 179 | 181 | 181 | ||||||||||
(1) Results from changes in investor demand and mortgage insurer |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20190115005297/en/