EXHIBIT 99
CINDY KOEHN 415/396-3099
INVESTOR RELATIONS
FOR IMMEDIATE RELEASE
Tues., Oct. 15, 1996
WELLS FARGO REPORTS THIRD QUARTER EARNINGS
PER SHARE EARNINGS OF $3.23 FOR SECOND POST-MERGER QUARTER
Wells Fargo & Co. (NYSE:WFC) today reported net income of $321 million for
the third quarter of 1996. Per share earnings for the quarter were $3.23.
Return on average assets (ROA) was 1.18 percent and return on average common
equity (ROE) was 8.64 percent.
Earnings before the amortization of goodwill and nonqualifying core deposit
intangibles ("cash earnings") were $4.52 per share. Cash ROA was 1.77 percent;
cash ROE was 31.91 percent.
"During the third quarter we completed the conversion of our California
customer base," said Chairman Paul Hazen. "We owe our employees tremendous
thanks for their effort during these past few months, and also appreciate the
patience our customers have demonstrated throughout this transition period."
Since the Company's third quarter 1996 results reflect the effects of the
merger beginning April 1, 1996, these results and the results for the first nine
months of 1996 are not comparable to the reported results for the corresponding
prior periods of 1995.
Net interest income on a taxable-equivalent basis was $1,299 million in the
third quarter. The Company's net interest margin for the quarter was 6.15
percent. Noninterest income (NII) for the quarter was $643 million.
Noninterest expense (NIE) for the quarter was $1,305 million, including a $22
million one-time assessment to replenish the Savings Association Insurance Fund.
-more-
2/WF Earnings
The loan loss provision in the third quarter was $35 million. Net charge-
offs in the quarter totaled $171 million, or 0.98 percent of average loans
(annualized). The largest category of net charge-offs was credit card loans
($95 million).
At September 30, 1996, the allowance for loan losses equaled 3.09 percent
of total loans. Total nonaccrual and restructured loans were $728 million at
September 30, 1996. Foreclosed assets were $227 million.
In September, the Company completed the required divestiture of 61 branches
to Home Savings of America. These branches had aggregate deposits of
approximately $1.9 billion and loans of approximately $1.1 billion.
The Company's effective tax rate for the third quarter of 1996 was 46%.
At September 30, 1996, the Company's preliminary risk-based capital ratios
were 11.20 percent for total risk-based capital and 7.15 percent for Tier 1
risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and
4 percent, respectively. The leverage ratio was 6.10 percent. The ratio of
common equity to total assets at the end of the quarter was 12.71 percent.
###
-3-
Wells Earnings
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA--NEWS RELEASE
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
% Change
Quarter ended Sept. 30, 1996 from Nine months ended
------------------------------- ------------------- --------------------
SEPT. 30, June 30, Sept. 30, June 30, Sept. 30, SEPT. 30, Sept. 30, %
(in millions) 1996 1996 1995 1996 1995 1996 1995 Change
- -----------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD
Net income $ 321 $ 363 $ 261 (12)% 23% $ 948 $ 726 31%
Net income applicable to common
stock 302 344 251 (12) 20 901 695 30
Per common share
Net income $ 3.23 $ 3.61 $ 5.23 (11) (38) $ 11.42 $ 14.14 (19)
Dividends declared 1.30 1.30 1.15 -- 13 3.90 3.45 13
Average common shares outstanding 93.7 95.6 47.9 (2) 96 78.8 49.2 60
Profitability ratios (annualized)
Net income to average total
assets (ROA) 1.18% 1.35% 2.07% (13) (43) 1.43% 1.89% (24)
Net income applicable to common
stock to average common
stockholders' equity (ROE) 8.64 9.77 30.13 (12) (71) 11.36 27.91 (59)
Efficiency ratio (1) 67.3% 65.8% 54.1% 2 24 64.2% 56.9% 13
Average loans $ 69,274 $ 70,734 $ 34,103 (2) 103 $ 58,384 $ 34,538 69
Average assets 108,378 108,430 50,062 -- 116 88,719 51,306 73
Average core deposits 82,378 83,356 36,618 (1) 125 67,572 36,515 85
Net interest margin 6.15% 6.03% 5.90% 2 4 6.11% 5.72% 7
AT PERIOD END
Investment securities $ 13,433 $ 13,692 $ 9,436 (2) 42 $ 13,433 $ 9,436 42
Loans 69,233 70,541 34,298 (2) 102 69,233 34,298 102
Allowance for loan losses 2,137 2,273 1,872 (6) 14 2,137 1,872 14
Goodwill 7,407 7,479 391 (1) -- 7,407 391 --
Assets 109,176 108,586 49,934 1 119 109,176 49,934 119
Core deposits 83,308 83,331 37,151 -- 124 83,308 37,151 124
Common stockholders' equity 13,884 14,191 3,385 (2) 310 13,884 3,385 310
Stockholders' equity 14,923 15,030 3,874 (1) 285 14,923 3,874 285
Capital ratios
Common stockholders' equity to
assets 12.71% 13.07% 6.78% (3) 87 12.71% 6.78% 87
Stockholders' equity to assets 13.66 13.84 7.76 (1) 76 13.66 7.76 76
Risk-based capital (2)
Tier 1 capital 7.15 7.40 8.56 (3) (16) 7.15 8.56 (16)
Total capital 11.20 11.18 12.25 -- (9) 11.20 12.25 (9)
Leverage (2) 6.10 6.37 6.93 (4) (12) 6.10 6.93 (12)
Book value per common share $ 149.44 $ 149.52 $ 71.32 -- 110 $ 149.44 $ 71.32 110
Staff (active, full-time equivalent) 38,859 41,548 19,196 (6) 102 38,859 19,196 102
NET INCOME AND RATIOS EXCLUDING
GOODWILL AND NONQUALIFYING CORE
DEPOSIT
INTANGIBLE AMORTIZATION AND
BALANCES
("CASH" OR "TANGIBLE") (3)
Net income applicable to common
stock $ 424 $ 468 $ 260 (9) 63 $ 1,154 $ 721 60
Net income per common share 4.52 4.89 5.41 (8) (16) 14.64 14.66 --
ROA 1.77% 1.96% 2.16% (10) (18) 1.94% 1.98% (2)
ROE 31.91 33.43 35.40 (5) (10) 32.70 32.95 (1)
Efficiency ratio 59.6 58.0 53.2 3 12 57.8 56.0 3
COMMON STOCK PRICE
High $264 $264-1/2 $189 -- 40 $ 264-1/2 $189 40
Low 220-1/8 232-1/8 177-3/4 (5) 24 203-1/8 143-3/8 42
Period end 260 239-1/8 185-5/8 9 40 260 185-5/8 40
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<FN>
1. The efficiency ratio is defined as noninterest expense divided by the
total of net interest income and noninterest income.
2. The September 30, 1996 ratios are preliminary.
3. Nonqualifying core deposit intangible (CDI) amortization and average
balance excluded from these calculations are, with the exception of
the efficiency ratio, net of applicable taxes. The after-tax amounts
for the amortization and average balance of nonqualifying CDI were $41
million and $1,196 million for the quarter ended September 30, 1996,
respectively, and $84 million and $844 million for the nine months ended
September 30, 1996, respectively. Goodwill amortization and average
balance (which are not tax effected) were $81 million and $7,439 million
for the quarter ended September 30, 1996, respectively, and $170 million
and $5,027 million for the nine months ended September 30, 1996,
respectively.
</FN>
-4-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
Quarter Nine months
ended Sept. 30, ended Sept. 30,
-------------- % -------------- %
(in millions) 1996 1995 Change 1996 1995 Change
---------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Federal funds sold and securities purchased
(1) under resale agreements $ 11 $ 1 -- % $ 21 $ 3 600 %
(2) Investment securities 215 143 50 568 460 23
(3) Mortgage loans held for sale -- 19 (100) -- 73 (100)
(4) Loans 1,612 855 89 4,106 2,536 62
(5) Other 9 1 800 16 2 700
----- ----- ----- -----
(6) Total interest income 1,847 1,019 81 4,711 3,074 53
----- ----- ----- -----
INTEREST EXPENSE
(7) Deposits 446 254 76 1,140 750 52
Federal funds purchased and securities sold
(8) under repurchase agreements 15 46 (67) 72 160 (55)
(9) Commercial paper and other short-term
borrowings 3 6 (50) 11 25 (56)
(10) Senior and subordinated debt 88 50 76 217 152 43
----- ----- ----- -----
(11) Total interest expense 552 356 55 1,440 1,087 32
----- ----- ----- -----
(12) NET INTEREST INCOME 1,295 663 95 3,271 1,987 65
(13) Provision for loan losses 35 -- -- 35 -- --
----- ----- ----- -----
Net interest income after
(14) provision for loan losses 1,260 663 90 3,236 1,987 63
----- ----- ----- -----
NONINTEREST INCOME
(15) Service charges on deposit accounts 254 121 110 634 357 78
(16) Fees and commissions 205 112 83 534 316 69
(17) Trust and investment services income 104 63 65 267 176 52
(18) Investment securities gains (losses) -- -- -- 2 (15) --
(19) Other 80 43 86 199 56 255
----- ----- ----- -----
(20) Total noninterest income 643 339 90 1,636 890 84
----- ----- ----- -----
NONINTEREST EXPENSE
(21) Salaries 378 176 115 960 526 83
(22) Incentive compensation 53 33 61 146 92 59
(23) Employee benefits 105 46 128 261 147 78
(24) Equipment 103 47 119 269 139 94
(25) Net occupancy 96 54 78 257 159 62
(26) Goodwill 81 9 800 170 26 554
(27) Core deposit intangible 78 10 680 170 32 431
(28) Other 411 167 146 916 517 77
----- ----- ----- -----
(29) Total noninterest expense 1,305 542 141 3,149 1,638 92
----- ----- ----- -----
INCOME BEFORE INCOME TAX
(30) EXPENSE 598 460 30 1,723 1,239 39
(31) Income tax expense 277 199 39 775 513 51
----- ----- ----- -----
(32) NET INCOME $ 321 $ 261 23 % $ 948 $ 726 31 %
----- ----- ---- ----- ----- -----
----- ----- ---- ----- ----- -----
NET INCOME APPLICABLE TO
(33) COMMON STOCK $ 302 $ 251 20 % $ 901 $ 695 30 %
----- ----- ---- ----- ----- -----
----- ----- ---- ----- ----- -----
PER COMMON SHARE
(34) Net income $ 3.23 $ 5.23 (38)% $11.42 $ 14.14 (19)%
----- ----- ---- ----- ----- -----
----- ----- ---- ----- ----- -----
(35) Dividends declared $ 1.30 $ 1.15 13 % $ 3.90 $ 3.45 13 %
----- ----- ---- ----- ----- -----
----- ----- ---- ----- ----- -----
(36) Average common shares outstanding 93.7 47.9 96 % 78.8 49.2 60 %
----- ----- ---- ----- ----- -----
----- ----- ---- ----- ----- -----
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-5-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
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---------------------------------------------------------------------------------------------------------
% Change
Sept. 30, 1996 from
--------------------
SEPT. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
(in millions) 1996 1995 1995 1995 1995
---------------------------------------------------------------------------------------------------------
ASSETS
(1) Cash and due from banks $ 11,622 $ 3,375 $ 3,183 244 % 265 %
Federal funds sold and securities
(2) purchased under resale agreements 284 177 52 60 446
Investment securities:
(3) At fair value 13,433 8,920 2,476 51 443
(4) At cost (estimated fair value $6,903) -- -- 6,960 -- (100)
------- ------- ------
(5) Total investment securities 13,433 8,920 9,436 51 42
(6) Mortgage loans held for sale -- -- 510 -- (100)
(7) Loans 69,233 35,582 34,298 95 102
(8) Allowance for loan losses 2,137 1,794 1,872 19 14
------- ------- ------
(9) Net loans 67,096 33,788 32,426 99 107
------- ------- ------
(10) Due from customers on acceptances 356 98 83 263 329
(11) Accrued interest receivable 590 308 321 92 84
(12) Premises and equipment, net 2,380 862 873 176 173
(13) Core deposit intangible 2,130 166 176 -- --
(14) Goodwill 7,407 382 391 -- --
(15) Other assets 3,878 2,240 2,483 73 56
------- ------- ------
(16) Total assets $ 109,176 $ 50,316 $ 49,934 117 % 119 %
------- ------- ------ --- ---
------- ------- ------ --- ---
LIABILITIES
(17) Noninterest-bearing deposits $ 29,512 $ 10,391 $ 9,627 184 % 207 %
(18) Interest-bearing deposits 54,225 28,591 29,321 90 85
------- ------- ------
(19) Total deposits 83,737 38,982 38,948 115 115
Federal funds purchased and securities
(20) sold under repurchase agreements 1,033 2,781 2,554 (63) (60)
(21) Commercial paper and other short-term borrowings 350 195 417 79 (16)
(22) Acceptances outstanding 356 98 83 263 329
(23) Accrued interest payable 215 85 113 153 90
(24) Other liabilities 3,151 1,071 925 194 241
(25) Senior debt 2,470 1,783 1,544 39 60
(26) Subordinated debt 2,941 1,266 1,476 132 99
------- ------- ------
(27) Total liabilities 94,253 46,261 46,060 104 105
------- ------- ------
STOCKHOLDERS' EQUITY
(28) Preferred stock 1,039 489 489 112 112
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 92,875,661 shares,
(29) 46,973,319 shares and 47,465,721 shares 464 235 237 97 96
(30) Additional paid-in capital 10,674 1,135 1,221 840 774
(31) Retained earnings 2,766 2,174 1,932 27 43
(32) Cumulative foreign currency translation adjustments (4) (4) (4) -- --
(33) Investment securities valuation allowance (16) 26 (1) -- --
------- ------- ------
(34) Total stockholders' equity 14,923 4,055 3,874 268 285
------- ------- ------
(35) Total liabilities and stockholders' equity $109,176 $ 50,316 $ 49,934 117 % 119 %
------- ------- ------ ------- -------
------- ------- ------ ------- -------
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-6-
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Nine months ended September 30,
------------------------------
(in millions) 1996 1995
- -------------------------------------------------------------------------------------
BALANCE, BEGINNING OF PERIOD $ 4,055 $ 3,911
Net income 948 726
Common stock issued to First Interstate stockholders 11,297 --
Common stock issued under employee benefit and
dividend reinvestment plans 88 81
Preferred stock issued to First Interstate stockholders 360 --
Preferred stock issued, net of issuance costs 197 --
Common stock repurchased (1,735) (750)
Preferred stock dividends (47) (31)
Common stock dividends (309) (172)
Change in investment securities valuation allowance (42) 109
Fair value adjustment related to First Interstate stock options 111 --
------- -------
BALANCE, END OF PERIOD $14,923 $ 3,874
------- -------
------- -------
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- -------------------------------------------------------------------------------------
LOANS
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
SEPTEMBER 30, December 31, September 30,
(in millions) 1996 1995 1995
- -------------------------------------------------------------------------------------
Commercial $20,064 $ 9,750 $ 9,247
Real estate 1-4 family first mortgage (1) 10,754 4,448 4,496
Other real estate mortgage 12,462 8,263 7,943
Real estate construction 2,331 1,366 1,283
Consumer:
Real estate 1-4 family junior lien mortgage 6,406 3,358 3,365
Credit card 5,292 4,001 3,852
Other revolving credit and monthly payment 8,846 2,576 2,479
------- ------- -------
Total consumer 20,544 9,935 9,696
Lease financing 2,891 1,789 1,610
Foreign 187 31 23
------- ------- -------
Total loans $69,233 $35,582 $34,298
------- ------- -------
------- ------- -------
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- -------------------------------------------------------------------------------------
<FN>
(1) Excludes mortgage loans held for sale of $510 million at September 30,
1995.
</FN>
-7-
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended
------------------------------------ --------------------
SEPT. 30, June 30, Sept. 30, SEPT. 30, Sept. 30,
(in millions) 1996 1996 1995 1996 1995
- -------------------------------------------------------------------------------------------------------
BALANCE, BEGINNING OF PERIOD $2,273 $1,681 $1,947 $1,794 $2,082
Allowance of First Interstate -- 770 -- 770 --
Provision for loan losses 35 -- -- 35 --
Loan charge-offs:
Commercial (30) (48) (15) (91) (32)
Real estate 1-4 family first mortgage (4) (5) (4) (13) (10)
Other real estate mortgage (13) (13) (15) (29) (49)
Real estate construction (5) (4) (1) (9) (5)
Consumer:
Real estate 1-4 family junior lien
mortgage (7) (13) (5) (24) (12)
Credit card (105) (101) (55) (292) (138)
Other revolving credit and monthly
payment (52) (51) (15) (124) (38)
------- ------ ----- ------ ------
Total consumer (164) (165) (75) (440) (188)
Lease financing (7) (8) (4) (21) (11)
------- ------ ------ ------ ------
Total loan charge-offs (223) (243) (114) (603) (295)
------- ------ ------ ------ ------
Loan recoveries:
Commercial 16 8 17 30 31
Real estate 1-4 family first mortgage 1 2 1 6 3
Other real estate mortgage 9 19 7 32 20
Real estate construction 2 4 -- 6 1
Consumer:
Real estate 1-4 family junior lien
mortgage 2 4 1 7 3
Credit card 10 11 3 26 9
Other revolving credit and monthly
payment 10 15 4 28 9
------- ------ ------ ------ ------
Total consumer 22 30 8 61 21
Lease financing 2 2 6 6 9
------- ------ ------ ------ ------
Total loan recoveries 52 65 39 141 85
------- ------ ------ ------ ------
Total net loan charge-offs (171) (178) (75) (462) (210)
------- ------ ------ ------ ------
BALANCE, END OF PERIOD $2,137 $2,273 $1,872 $2,137 $1,872
------- ------ ------ ------ ------
------- ------ ------ ------ ------
Total net loan charge-offs as a
percentage of average loans
(annualized) (1) .98% 1.01% .86% 1.05% .81%
------- ------ ------ ------ ------
------- ------ ------ ------ ------
Allowance as a percentage of total
loans (1) 3.09% 3.22% 5.46% 3.09% 5.46%
------- ------- ------ ------ ------
------- ------- ------ ------ ------
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- --------------------------------------------------------------------------------------------------------
<FN>
(1) Average and total loans exclude first mortgage loans held for sale at
September 30, 1995.
</FN>
-8-
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
SEPT. 30, Dec. 31, Sept. 30,
(in millions) 1996 1995 1995
- -------------------------------------------------------------------------------------
Nonaccrual loans:
Commercial $216 $112 $128
Real estate 1-4 family first mortgage 77 64 56
Other real estate mortgage 370 307 335
Real estate construction 28 46 55
Consumer:
Real estate 1-4 family junior lien mortgage 21 8 11
Other revolving credit and monthly payment 2 1 1
Lease financing 3 -- --
----- ----- -----
Total nonaccrual loans 717 538 586
Restructured loans 11 14 14
----- ----- -----
Nonaccrual and restructured loans 728 552 600
As a percentage of total loans (1) 1.1% 1.6% 1.8%
Foreclosed assets 227 186 214
Real estate investments (2) 6 12 13
----- ----- -----
Total nonaccrual and restructured loans
and other assets $961 $750 $827
----- ----- -----
----- ----- -----
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- --------------------------------------------------------------------------------------
<FN>
(1) Total loans exclude mortgage loans held for sale at September 30, 1995.
(2) Represents the amount of real estate investments (contingent interest
loans accounted for as investments) that would be classified as nonaccrual
if such assets were loans. Real estate investments totaled $128 million,
$95 million and $116 million at September 30, 1996, December 31, 1995 and
September 30, 1995, respectively.
</FN>
-9-
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Quarter Nine months
ended September 30, ended September 30,
------------------ % ------------------ %
(in millions) 1996 1995 Change 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts $254 $121 110% $ 634 $357 78%
Fees and commissions:
Debit and credit card merchant fees 33 17 94 85 48 77
Credit card membership and other credit card
fees 30 27 11 83 68 22
Charges and fees on loans 32 13 146 81 36 125
Shared ATM network fees 28 13 115 67 38 76
Mutual fund and annuity sales fees 17 7 143 44 25 76
All other 65 35 86 174 101 72
--- ---- ------ ----
Total fees and commissions 205 112 83 534 316 69
Trust and investment services income:
Asset management and custody fees 59 33 79 154 96 60
Mutual fund management fees 34 19 79 89 51 75
All other 11 11 -- 24 29 (17)
--- ---- ------ ----
Total trust and investment services
income 104 63 65 267 176 52
Investment securities gains (losses) -- -- -- 2 (15) --
Income from equity investments accounted for by
the:
Cost method 37 9 311 92 41 124
Equity method 3 11 (73) 13 31 (58)
Check printing charges 15 9 67 39 29 34
Gains (losses) on sales of loans 6 19 (68) 11 (46) --
Gains (losses) from dispositions of operations (1) (13) 92 5 (22) --
Losses on dispositions of premises and equipment (8) (3) (167) (25) (11) (127)
All other 28 11 155 64 34 88
---- ---- ----- ----
Total $643 $339 90% $1,636 $890 84%
---- ---- ---- ------ ---- ----
---- ---- ---- ------ ---- ----
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NONINTEREST EXPENSE
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Quarter Nine months
ended September 30, ended September 30,
------------------ % ------------------ %
(in millions) 1996 1995 Change 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------
Salaries $ 378 $176 115% $960 $526 83%
Incentive compensation 53 33 61 146 92 59
Employee benefits 105 46 128 261 147 78
Equipment 103 47 119 269 139 94
Net occupancy 96 54 78 257 159 62
Contract services 88 40 120 196 104 88
Goodwill 81 9 800 170 26 554
Core deposit intangible:
Nonqualifying (1) 69 -- -- 142 -- --
Qualifying 9 10 (10) 28 32 (13)
Telecommunications 42 16 163 85 43 98
Outside professional services 32 11 191 76 31 145
Operating losses 31 13 138 72 39 85
Postage 27 13 108 68 39 74
Advertising and promotion 32 18 78 66 49 35
Stationery and supplies 18 9 100 49 27 81
Travel and entertainment 23 9 156 48 26 85
Security 16 5 220 38 15 153
Outside data processing 17 3 467 36 8 350
Federal deposit insurance 24 -- -- 28 47 (40)
Check printing 11 6 83 27 19 42
Escrow and collection agency fees 9 3 200 22 11 100
Foreclosed assets 2 4 (50) 5 2 150
All other 39 17 129 100 57 75
------ ---- ------ ------
Total $1,305 $542 141% $3,149 $1,638 92%
------- ----- ---- ------- ------- ---
------- ----- ---- ------- ------- ---
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- ----------------------------------------------------------------------------------------------------------------
<FN>
(1) Amortization of core deposit intangibles acquired after February 1992
that are subtracted from stockholders' equity in computing regulatory
capital for bank holding companies.
</FN>
-10-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
--------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------
Quarter ended September 30,
-----------------------------------------------------------------------
1996 1995
--------------------------------- --------------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
--------------------------------------------------------------------------------------------------------------------------------
EARNING ASSETS
Federal funds sold and securities purchased
(1) under resale agreements $ 800 5.44% $ 11 $ 79 6.32% $ 1
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 2,678 5.92 40 430 6.54 7
Securities of U.S. government agencies
(3) and corporations 7,473 6.32 119 1,008 5.37 14
(4) Private collateralized mortgage obligations 2,920 6.49 48 964 6.27 15
(5) Other securities 489 6.49 8 68 14.28 2
-------- ------ ------- ------
(6) Total investment securities at fair value 13,560 6.28 215 2,470 6.07 38
At cost:
(7) U.S. Treasury securities -- -- -- 1,203 4.89 15
Securities of U.S. government agencies
(8) and corporations -- -- -- 4,663 6.04 70
(9) Private collateralized mortgage obligations -- -- -- 1,205 5.77 17
(10) Other securities -- -- -- 161 7.08 3
-------- ------ ------- ------
(11) Total investment securities at cost -- -- -- 7,232 5.83 105
-------- ------ ------- ------
(12) Total investment securities 13,560 6.28 215 9,702 5.89 143
(13)Mortgage loans held for sale (2) -- -- -- 963 7.94 19
Loans:
(14) Commercial 18,848 8.92 422 8,869 9.90 221
(15) Real estate 1-4 family first mortgage 11,514 7.32 211 4,962 7.50 93
(16) Other real estate mortgage 12,614 9.15 290 7,994 9.47 191
(17) Real estate construction 2,345 10.97 65 1,184 10.24 31
Consumer:
(18) Real estate 1-4 family junior lien mortgage 6,716 9.17 154 3,364 8.58 72
(19) Credit card 5,295 14.84 196 3,738 15.56 145
(20) Other revolving credit and monthly payment 9,011 9.44 214 2,445 10.73 67
-------- ------ ------- ------
(21) Total consumer 21,022 10.71 564 9,547 11.87 284
(22) Lease financing 2,791 8.75 61 1,528 9.28 35
(23) Foreign 140 8.25 3 19 -- --
-------- ------ ------- ------
(24) Total loans 69,274 9.30 1,616 34,103 9.98 855
(25)Other 550 6.25 9 57 5.82 1
-------- ------ ------- ------
(26) Total earning assets $ 84,184 8.76 1,851 $44,904 9.05 1,019
-------- ------ ------- ------
-------- -------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 6,022 1.31 20 $ 4,118 1.00 10
(28) Market rate and other savings 32,918 2.64 218 14,970 2.66 100
(29) Savings certificates 16,496 4.74 197 8,398 5.39 114
(30) Other time deposits 381 6.89 7 444 6.99 8
(31) Deposits in foreign offices 293 5.08 4 1,464 5.84 22
-------- ------ ------- ------
(32) Total interest-bearing deposits 56,110 3.15 446 29,394 3.43 254
Federal funds purchased and securities sold
(33) under repurchase agreements 1,217 5.01 15 3,144 5.77 46
(34) Commercial paper and other short-term borrowings 361 3.37 3 442 5.65 6
(35) Senior debt 2,607 6.05 40 1,555 6.56 26
(36) Subordinated debt 2,816 6.92 48 1,478 6.47 24
-------- ------ ------- ------
(37) Total interest-bearing liabilities 63,111 3.48 552 36,013 3.92 356
(38)Portion of noninterest-bearing funding sources 21,073 -- -- 8,891 -- --
-------- ------ ------- ------
(39) Total funding sources $ 84,184 2.61 552 $44,904 3.15 356
-------- ------ ------- ------
-------- -------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(40) A TAXABLE-EQUIVALENT BASIS (3) 6.15% $1,299 5.90% $ 663
-------- ------ ------- ------
-------- ------ ------- ------
NONINTEREST-EARNING ASSETS
(41)Cash and due from banks $ 9,877 $ 2,673
(42)Goodwill 7,439 395
(43)Other 6,878 2,090
-------- -------
Total noninterest-earning assets $ 24,194 $ 5,158
-------- -------
-------- -------
NONINTEREST-BEARING FUNDING SOURCES
(44)Deposits $ 26,942 $ 9,132
(45)Other liabilities 3,551 1,124
(46)Preferred stockholders' equity 854 489
(47)Common stockholders' equity 13,920 3,304
Noninterest-bearing funding sources used to
(48) fund earning assets (21,073) (8,891)
-------- -------
(49) Net noninterest-bearing funding sources $ 24,194 $ 5,158
-------- -------
-------- -------
(50)TOTAL ASSETS $108,378 $50,062
-------- -------
-------- -------
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) The average prime rate of Wells Fargo Bank was 8.25% and 8.77% for the
quarters ended September 30, 1996 and 1995, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.59% and 5.89%
for the same quarters, respectively.
(2) Yields are based on amortized cost balances. The average amortized cost
balances for investment securities at fair value totaled $13,651 million
and $2,482 million for the quarters ended September 30, 1996 and 1995,
respectively. The average amortized cost balance for mortgage loans held
for sale totaled $963 million for the quarter ended September 30, 1995.
(3) Includes taxable-equivalent adjustments that primarily relate to income
on certain loans and securities that is exempt from federal and
applicable state income taxes. The federal statutory tax rate was 35%
for all periods presented.
</FN>
-11-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Nine months ended September 30,
-----------------------------------------------------------------
1996 1995
----------------------------- ----------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
-----------------------------------------------------------------------------------------------------------------
EARNING ASSETS
Federal funds sold and securities purchased
(1) under resale agreements $ 505 5.43% $ 21 $ 64 6.09% $ 3
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 2,405 5.67 102 414 6.64 20
Securities of U.S. government
(3) agencies and corporations 6,968 6.13 322 1,072 5.52 46
(4) Private collateralized mortgage obligations 2,552 6.28 122 1,003 6.35 50
(5) Other securities 460 6.84 22 65 14.42 5
------- ------- ------- -----
(6) Total investment securities at fair value 12,385 6.09 568 2,554 6.17 121
At cost:
(7) U.S. Treasury securities -- -- -- 1,438 4.86 52
Securities of U.S. government agencies
(8) and corporations -- -- -- 4,962 6.04 225
(9) Private collateralized mortgage obligations -- -- -- 1,246 5.85 55
(10) Other securities -- -- -- 160 6.86 8
------- ------- ------- -----
(11) Total investment securities at cost -- -- -- 7,806 5.81 340
------- ------- ------- -----
(12) Total investment securities 12,385 6.09 568 10,360 5.90 461
(13) Mortgage loans held for sale (2) -- -- -- 1,286 7.46 73
Loans:
(14) Commercial 15,883 9.05 1,077 8,455 9.89 626
(15) Real estate 1-4 family first mortgage 9,287 7.43 518 6,341 7.32 348
(16) Other real estate mortgage 11,277 9.23 778 8,058 9.52 574
(17) Real estate construction 2,020 10.40 157 1,092 10.20 83
Consumer:
(18) Real estate 1-4 family junior lien mortgage 5,617 8.95 377 3,347 8.59 216
(19) Credit card 4,805 14.95 539 3,435 15.64 403
(20) Other revolving credit and monthly payment 6,929 9.62 499 2,356 10.58 186
------- ------- ------- -----
(21) Total consumer 17,351 10.88 1,415 9,138 11.75 805
(22) Lease financing 2,430 8.87 162 1,429 9.22 99
(23) Foreign 136 6.11 6 25 7.58 1
------- ------- ------- -----
(24) Total loans 58,384 9.40 4,113 34,538 9.80 2,536
(25) Other 339 6.39 16 59 5.57 2
------- ------- ------- -----
(26) Total earning assets $71,613 8.79 4,718 $46,307 8.85 3,075
------- ------- ------- -----
------- -------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $4,651 1.26 44 $ 4,230 1.00 32
(28) Market rate and other savings 27,962 2.63 550 15,417 2.59 298
(29) Savings certificates 13,979 4.88 511 7,901 5.20 307
(30) Other time deposits 402 6.59 20 415 5.78 18
(31) Deposits in foreign offices 373 5.26 15 2,142 5.93 95
------- ------- ------- -----
(32) Total interest-bearing deposits 47,367 3.21 1,140 30,105 3.33 750
Federal funds purchased and securities sold
(33) under repurchase agreements 1,861 5.20 72 3,649 5.88 160
(34) Commercial paper and other short-term borrowings 354 4.32 11 582 5.85 26
(35) Senior debt 2,204 6.11 101 1,568 6.78 80
(36) Subordinated debt 2,222 6.94 116 1,477 6.53 72
------- ------- ------- -----
(37) Total interest-bearing liabilities 54,008 3.56 1,440 37,381 3.89 1,088
(38) Portion of noninterest-bearing funding sources 17,605 -- -- 8,926 -- --
------- ------- ------- -----
(39) Total funding sources $71,613 2.68 1,440 $46,307 3.13 1,088
------- ------- ------- -----
------- -------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(40) A TAXABLE-EQUIVALENT BASIS (3) 6.11% $3,278 5.72% $1,987
---- ------ ---- ------
---- ------ ---- ------
NONINTEREST-EARNING ASSETS
(41) Cash and due from banks $ 7,116 $ 2,621
(42) Goodwill 5,027 403
(43) Other 4,963 1,975
------- -------
Total noninterest-earning assets $17,106 $ 4,999
------- -------
------- -------
NONINTEREST-BEARING FUNDING SOURCES
(44) Deposits $20,980 $ 8,967
(45) Other liabilities 2,418 1,140
(46) Preferred stockholders' equity 728 489
(47) Common stockholders' equity 10,585 3,329
Noninterest-bearing funding sources used to
(48) fund earning assets (17,605) (8,926)
------- -------
(49) Net noninterest-bearing funding
sources $17,106 $ 4,999
------- -------
------- -------
(50) TOTAL ASSETS $88,719 $51,306
------- -------
------- -------
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------
<FN>
(1) The average prime rate of Wells Fargo Bank was 8.28% and 8.86% for the
nine months ended September 30, 1996 and 1995, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.51% and 6.10% for
the same periods, respectively.
(2) Yields are based on amortized cost balances. The average amortized cost
balances for investment securities at fair value totaled $12,431 million
and $2,617 million for the nine months ended September 30, 1996 and 1995,
respectively. The average amortized cost balance for mortgage loans held
for sale totaled $1,300 million for the nine months ended September 30,
1995.
(3) Includes taxable-equivalent adjustments that primarily relate to income
on certain loans and securities that is exempt from federal and applicable
state income taxes. The federal statutory tax rate was 35% for all
periods presented.
</FN>