SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): January 21, 1997
WELLS FARGO & COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-6214 No. 13-2553920
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
420 Montgomery Street, San Francisco, California 94163
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 477-1000
Not applicable
(Former name or former address, if changed since last report)
Item 5: OTHER EVENTS
Attached hereto as Exhibit 99 is a Press Release announcing Wells
Fargo & Company's financial results for the quarter and year ended
December 31, 1996. Final financial statements with additional
analyses will be filed as part of the Company's Form 10-K in March
1997.
Item 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
27 Financial Data Schedule
99 Copy of the Press Release announcing Wells Fargo & Company's
financial results for the quarter and year ended December
31, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on January 21, 1997.
WELLS FARGO & COMPANY
By: FRANK A. MOESLEIN
-------------------------
Frank A. Moeslein
Executive Vice President and Controller
- 3 -
WELLS EARNINGS
WELLS FARGO & COMPANY AND SUBSIDIARIES
SUMMARY FINANCIAL DATA -- NEWS RELEASE
- ------------------------------------------------------------------------------------------------------------------------------------
% Change
Quarter ended Dec. 31, 1996 from Year ended
----------------------------- ------------------- ------------------
DEC. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31, %
(in millions) 1996 1996 1995 1996 1995 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD
Net income $ 123 $ 321 $ 306 (62)% (60)% $ 1,071 $ 1,032 4%
Net income applicable to common stock 103 302 295 (66) (65) 1,004 990 1
Per common share
Net income $ 1.12 $ 3.23 $ 6.29 (65) (82) $ 12.21 $ 20.37 (40)
Dividends declared 1.30 1.30 1.15 -- 13 5.20 4.60 13
Average common shares outstanding 92.2 93.7 47.0 (2) 96 82.2 48.6 69
Profitability ratios (annualized)
Net income to average total assets (ROA) 0.45% 1.18% 2.47% (62) (82) 1.15% 2.03% (43)
Net income applicable to common stock to
average common stockholders' equity (ROE) 2.99 8.64 34.98 (65) (91) 8.83 29.70 (70)
Efficiency ratio (1) 82.0% 67.3% 51.1% 22 60 69.0% 55.3% 25
Average loans $ 67,097 $ 69,274 $ 34,423 (3) 95 $ 60,574 $ 34,508 76
Average assets 107,308 108,378 49,169 (1) 118 93,392 50,767 84
Average core deposits 80,776 82,378 36,943 (2) 119 70,890 36,624 94
Net interest margin 6.14% 6.15% 6.08% -- 1 6.11% 5.80% 5
AT PERIOD END
Investment securities $ 13,505 $ 13,433 $ 8,920 1 51 $ 13,505 $ 8,920 51
Loans 67,389 69,233 35,582 (3) 89 67,389 35,582 89
Allowance for loan losses 2,018 2,137 1,794 (6) 12 2,018 1,794 12
Goodwill 7,322 7,407 382 (1) -- 7,322 382 --
Assets 108,888 109,176 50,316 -- 116 108,888 50,316 116
Core deposits 81,581 83,308 37,858 (2) 115 81,581 37,858 115
Common stockholders' equity 13,512 13,884 3,566 (3) 279 13,512 3,566 279
Stockholders' equity 14,112 14,923 4,055 (5) 248 14,112 4,055 248
Capital ratios
Common stockholders' equity to assets 12.41% 12.71% 7.09% (2) 75 12.41% 7.09% 75
Stockholders' equity to assets 12.96 13.66 8.06 (5) 61 12.96 8.06 61
Risk-based capital (2)
Tier 1 capital 7.60 7.04 8.81 8 (14) 7.60 8.81 (14)
Total capital 11.60 11.05 12.46 5 (7) 11.60 12.46 (7)
Leverage (2) 6.60 6.12 7.46 8 (12) 6.60 7.46 (12)
Book value per common share $ 147.72 $ 149.44 $ 75.93 (1) 95 $ 147.72 $ 75.93 95
Staff (active, full-time equivalent) 36,902 38,859 19,249 (5) 92 36,902 19,249 92
NET INCOME AND RATIOS EXCLUDING
GOODWILL AND NONQUALIFYING CORE DEPOSIT
INTANGIBLE AMORTIZATION AND BALANCES
("CASH" OR "TANGIBLE") (3)
Net income applicable to common stock $ 222 $ 424 $ 304 (48) (27) $ 1,376 $ 1,025 34
Net income per common share 2.41 4.52 6.47 (47) (63) 16.74 21.08 (21)
ROA 0.97% 1.77% 2.56% (45) (62) 1.66% 2.12% (22)
ROE 16.99 31.91 40.69 (47) (58) 28.46 34.92 (18)
Efficiency ratio 74.0 59.6 50.3 24 47 62.2 54.5 14
COMMON STOCK PRICE
High $ 289.88 $ 264.00 $ 229.00 10 27 $ 289.88 $ 229.00 27
Low 250.25 220.13 190.00 14 32 203.13 143.38 42
Period end 269.75 260.00 216.00 4 25 269.75 216.00 25
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The efficiency ratio is defined as noninterest expense divided by the total
of net interest income and noninterest income.
(2) The December 31, 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 $38 million and
$1,151 million for the quarter ended December 31, 1996, respectively, and
$122 million and $922 million for the year ended December 31, 1996,
respectively. Goodwill amortization and average balance (which are not tax
effected) were $80 million and $7,362 million for the quarter ended
December 31, 1996, respectively, and $250 million and $5,614 million for
the year ended December 31, 1996, respectively.
-4-
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
- -------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
----------------- % ----------------- %
(in millions) 1996 1995 Change 1996 1995 Change
- -------------------------------------------------------------------------------------------------------------------
INTEREST INCOME
Federal funds sold and securities purchased
(1) under resale agreements $ 8 $ 1 700% $ 29 $ 4 625%
(2) Investment securities 211 139 52 779 599 30
(3) Mortgage loans held for sale -- 3 (100) -- 76 (100)
(4) Loans 1,582 867 82 5,688 3,403 67
(5) Other 11 -- -- 27 3 800
------ ------ ------ ------
(6) Total interest income 1,812 1,010 79 6,523 4,085 60
------ ------ ------ ------
INTEREST EXPENSE
(7) Deposits 446 247 81 1,586 997 59
Federal funds purchased and securities sold
(8) under repurchase agreements 20 38 (47) 92 199 (54)
(9) Commercial paper and other short-term borrowings 4 6 (33) 16 32 (50)
(10) Senior and subordinated debt 86 52 65 302 203 49
(11) Guaranteed preferred beneficial interests in
Company's subordinated debentures 6 -- -- 6 -- --
------ ------ ------ ------
(12) Total interest expense 562 343 64 2,002 1,431 40
------ ------ ------ ------ --
(13) NET INTEREST INCOME 1,250 667 87 4,521 2,654 70
(14) Provision for loan losses 70 -- -- 105 -- --
------ ------ ------ ------
Net interest income after
(15) provision for loan losses 1,180 667 77 4,416 2,654 66
------ ------ ------ ------
NONINTEREST INCOME
(16) Service charges on deposit accounts 233 121 93 868 478 82
(17) Fees and commissions 207 116 78 740 433 71
(18) Trust and investment services income 110 65 69 377 241 56
(19) Investment securities gains (losses) 8 (3) -- 10 (17) --
(20) Sale of joint venture interest -- 163 (100) -- 163 (100)
(21) Other 6 (28) -- 205 26 688
------ ------ ------ ------
(22) Total noninterest income 564 434 30 2,200 1,324 66
------ ------ ------ ------
NONINTEREST EXPENSE
(23) Salaries 397 187 112 1,357 713 90
(24) Incentive compensation 80 33 142 227 126 80
(25) Employee benefits 112 40 180 373 187 99
(26) Equipment 129 54 139 399 193 107
(27) Net occupancy 109 52 110 366 211 73
(28) Goodwill 80 9 789 250 35 614
(29) Core deposit intangible 73 10 630 243 42 479
(30) Other 508 178 185 1,422 694 105
------ ------ ------ ------
(31) Total noninterest expense 1,488 563 164 4,637 2,201 111
------ ------ ------ ------
INCOME BEFORE INCOME TAX
(32) EXPENSE 256 538 (52) 1,979 1,777 11
(33) Income tax expense 133 232 (43) 908 745 22
------ ------ ------ ------
(34) NET INCOME $ 123 $ 306 (60)% $1,071 $1,032 4%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
NET INCOME APPLICABLE TO
(35) COMMON STOCK $ 103 $ 295 (65)% $1,004 $ 990 1%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
PER COMMON SHARE
(36) Net income $ 1.12 $ 6.29 (82)% $12.21 $20.37 (40)%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
(37) Dividends declared $ 1.30 $ 1.15 13% $ 5.20 $ 4.60 13%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
(38) Average common shares outstanding 92.2 47.0 96% 82.2 48.6 69%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
- ------------------------------------------------------------------------------------------------------------------------------------
-5-
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
- ----------------------------------------------------------------------------------------------------------------------
December 31, %
------------------------
(in millions) 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------------
ASSETS
(1) Cash and due from banks $ 11,736 $ 3,375 248%
Federal funds sold and securities
(2) purchased under resale agreements 187 177 6
(3) Investment securities at fair value 13,505 8,920 51
(4) Loans 67,389 35,582 89
(5) Allowance for loan losses 2,018 1,794 12
-------- -------
(6) Net loans 65,371 33,788 93
-------- -------
(7) Due from customers on acceptances 197 98 101
(8) Accrued interest receivable 665 308 116
(9) Premises and equipment, net 2,406 862 179
(10) Core deposit intangible 2,038 166 --
(11) Goodwill 7,322 382 --
(12) Other assets 5,461 2,240 144
-------- -------
(13) Total assets $108,888 $50,316 116%
-------- ------- ---
-------- ------- ---
LIABILITIES
(14) Noninterest-bearing deposits $ 29,073 $10,391 180%
(15) Interest-bearing deposits 52,748 28,591 84
-------- -------
(16) Total deposits 81,821 38,982 110
Federal funds purchased and securities
(17) sold under repurchase agreements 2,029 2,781 (27)
(18) Commercial paper and other short-term borrowings 401 195 106
(19) Acceptances outstanding 197 98 101
(20) Accrued interest payable 171 85 101
(21) Other liabilities 3,947 1,071 269
(22) Senior debt 2,120 1,783 19
(23) Subordinated debt 2,940 1,266 132
(24) Guaranteed preferred beneficial interests in
Company's subordinated debentures 1,150 -- --
STOCKHOLDERS' EQUITY
(25) Preferred stock 600 489 23
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 91,474,425 shares and 46,973,319 shares 457 235 94
(26) Additional paid-in capital 10,287 1,135 806
(27) Retained earnings 2,749 2,174 26
(28) Cumulative foreign currency translation adjustments (4) (4) --
(29) Investment securities valuation allowance 23 26 (12)
-------- -------
(30) Total stockholders' equity 14,112 4,055 248
-------- -------
(31) Total liabilities and stockholders' equity $108,888 $50,316 116%
-------- ------- ---
-------- ------- ---
- ----------------------------------------------------------------------------------------------------------------------
-6-
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
- -----------------------------------------------------------------------------------------------
Year ended December 31,
-----------------------
(in millions) 1996 1995
- -----------------------------------------------------------------------------------------------
BALANCE, BEGINNING OF YEAR $ 4,055 $ 3,911
Net income 1,071 1,032
Preferred stock issued to First Interstate stockholders 360 --
Preferred stock issued, net of issuance costs 197 --
Common stock issued to First Interstate stockholders 11,297 --
Common stock issued under employee benefit and
dividend reinvestment 117 90
Preferred stock redeemed (439) --
Common stock repurchased (2,158) (847)
Preferred stock dividends (67) (42)
Common stock dividends (429) (225)
Change in investment securities valuation allowance (3) 136
Fair value adjustment related to First Interstate stock options 111 --
-------- --------
BALANCE, END OF YEAR $ 14,112 $ 4,055
-------- --------
-------- --------
- -----------------------------------------------------------------------------------------------
LOANS
- -----------------------------------------------------------------------------------------------
December 31,
-----------------------
(in millions) 1996 1995
- -----------------------------------------------------------------------------------------------
Commercial $ 19,515 $ 9,750
Real estate 1-4 family first mortgage 10,425 4,448
Other real estate mortgage 11,860 8,263
Real estate construction 2,303 1,366
Consumer:
Real estate 1-4 family junior lien mortgage 6,278 3,358
Credit card 5,462 4,001
Other revolving credit and monthly payment 8,374 2,576
-------- --------
Total consumer 20,114 9,935
Lease financing 3,003 1,789
Foreign 169 31
-------- --------
Total loans $ 67,389 $ 35,582
-------- --------
-------- --------
- -----------------------------------------------------------------------------------------------
-7-
WELLS FARGO & COMPANY AND SUBSIDIARIES
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
- ------------------------------------------------------------------------------------------------------------------------
Quarter ended Year ended
- ------------------------------------------------------------------------------------------ ------------------------
DEC. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31,
(in millions) 1996 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------
BALANCE, BEGINNING OF PERIOD $ 2,137 $ 2,273 $ 1,872 $ 1,794 $ 2,082
Allowance of First Interstate -- -- -- 770 --
Sale of former First Interstate banks (11) -- -- (11) --
Provision for loan losses 70 35 -- 105 --
Loan charge-offs:
Commercial (49) (30) (23) (140) (55)
Real estate 1-4 family first mortgage (6) (4) (3) (18) (13)
Other real estate mortgage (11) (13) (3) (40) (52)
Real estate construction (3) (5) (5) (13) (10)
Consumer:
Real estate 1-4 family junior lien mortgage (5) (7) (4) (28) (16)
Credit card (112) (105) (69) (404) (208)
Other revolving credit and monthly payment (62) (52) (17) (186) (53)
-------- -------- -------- -------- --------
Total consumer (179) (164) (90) (618) (277)
Lease financing (9) (7) (4) (31) (15)
-------- -------- -------- -------- --------
Total loan charge-offs (257) (223) (128) (860) (422)
-------- -------- -------- -------- --------
Loan recoveries:
Commercial 24 16 7 54 38
Real estate 1-4 family first mortgage 2 1 -- 8 3
Other real estate mortgage 14 9 33 47 53
Real estate construction 5 2 -- 11 1
Consumer:
Real estate 1-4 family junior lien mortgage 2 2 1 9 3
Credit card 11 10 3 36 13
Other revolving credit and monthly payment 19 10 5 47 12
-------- -------- -------- -------- --------
Total consumer 32 22 9 92 28
Lease financing 2 2 1 8 11
-------- -------- -------- -------- --------
Total loan recoveries 79 52 50 220 134
-------- -------- -------- -------- --------
Total net loan charge-offs (178) (171) (78) (640) (288)
-------- -------- -------- -------- --------
BALANCE, END OF PERIOD $ 2,018 $ 2,137 $ 1,794 $ 2,018 $ 1,794
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total net loan charge-offs as a percentage
of average loans (annualized) (1) 1.04% .98% .90% 1.05% .83%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Allowance as a percentage of total loans 3.00% 3.09% 5.04% 3.00% 5.04%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
- ------------------------------------------------------------------------------------------------------------------------
(1) Average loans exclude first mortgage loans that were reclassified to a
held-for-sale category on March 31, 1995 and subsequently sold by year-end
1995.
-8-
WELLS FARGO & COMPANY AND SUBSIDIARIES
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
- -------------------------------------------------------------------------------------
December 31,
---------------------
(in millions) 1996 1995
- -------------------------------------------------------------------------------------
Nonaccrual loans:
Commercial $ 223 $ 112
Real estate 1-4 family first mortgage 99 64
Other real estate mortgage 349 307
Real estate construction 25 46
Consumer:
Real estate 1-4 family junior lien mortgage 15 8
Other revolving credit and monthly payment 1 1
Lease financing 2 --
------ ------
Total nonaccrual loans 714 538
Restructured loans 10 14
------ ------
Nonaccrual and restructured loans 724 552
As a percentage of total loans 1.1% 1.6%
Foreclosed assets 219 186
Real estate investments (1) 4 12
------ ------
Total nonaccrual and restructured loans
and other assets $ 947 $ 750
------ ------
------ ------
- -------------------------------------------------------------------------------------
(1) 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 $154 million and
$95 million at December 31, 1996 and 1995, respectively.
-9-
WELLS FARGO & COMPANY AND SUBSIDIARIES
NONINTEREST INCOME
- ----------------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
------------------- % ------------------- %
(in millions) 1996 1995 Change 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------------------------
Service charges on deposit accounts $ 233 $ 121 93% $ 868 $ 478 82%
Fees and commissions:
Credit card membership and other credit card fees 33 26 27 116 95 22
Debit and credit card merchant fees 27 17 59 112 65 72
Charges and fees on loans 30 15 100 112 52 115
Shared ATM network fees 35 13 169 102 51 100
Mutual fund and annuity sales fees 18 8 125 61 33 85
All other 64 37 73 237 137 73
------ ------ ------ ------
Total fees and commissions 207 116 78 740 433 71
Trust and investment services income:
Asset management and custody fees 60 33 82 214 129 66
Mutual fund management fees 40 21 90 129 71 82
All other 10 11 (9) 34 41 (17)
------ ------ ------ ------
Total trust and investment services income 110 65 69 377 241 56
Investment securities gains (losses) 8 (3) -- 10 (17) --
Sale of joint venture interest -- 163 (100) -- 163 (100)
Income from equity investments accounted for by the:
Cost method 45 18 150 137 58 136
Equity method 11 9 22 24 39 (38)
Check printing charges 22 10 120 61 39 56
Losses from dispositions of operations (100) (67) 49 (95) (89) 7
Gains (losses) on sales of loans 11 6 83 22 (40) --
Losses on dispositions of premises and equipment (21) (16) 31 (46) (31) 48
All other 38 12 217 102 50 104
------ ------ ------ ------
Total $ 564 $ 434 30% $2,200 $1,324 66%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
- ----------------------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
- ----------------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
------------------- % ------------------- %
(in millions) 1996 1995 Change 1996 1995 Change
- ----------------------------------------------------------------------------------------------------------------------------------
Salaries $ 397 $ 187 112% $1,357 $ 713 90%
Incentive compensation 80 33 142 227 126 80
Employee benefits 112 40 180 373 187 99
Equipment 129 54 139 399 193 107
Net occupancy 109 52 110 366 211 73
Contract services 100 46 117 295 149 98
Goodwill 80 9 789 250 35 614
Core deposit intangible:
Nonqualifying (1) 64 -- -- 206 -- --
Qualifying 9 10 (10) 37 42 (12)
Operating losses 73 6 -- 145 45 222
Telecommunications 55 14 293 140 58 141
Advertising and promotion 50 24 108 116 73 59
Outside professional services 36 13 177 112 45 149
Postage 28 13 115 96 52 85
Travel and entertainment 29 11 164 78 36 117
Stationery and supplies 27 10 170 76 37 105
Security 18 6 200 56 21 167
Outside data processing 19 3 533 55 11 400
Check printing 17 7 143 43 25 72
Escrow and collection agency fees 11 4 175 33 15 120
Federal deposit insurance 1 5 (80) 28 52 (46)
Foreclosed assets 3 (1) -- 7 1 600
All other 41 17 141 142 74 92
------ ------ ------ ------
Total $1,488 $ 563 164% $ 4,637 $2,201 111%
------ ------ --- ------ ------ ---
------ ------ --- ------ ------ ---
- ----------------------------------------------------------------------------------------------------------------------------------
(1) Amortization of core deposit intangibles acquired after February 1992 that
are subtracted from stockholders' equity in computing regulatory capital
for bank holding companies.
- 10 -
WELLS FARGO & COMPANY AND SUBSIDIARIES
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
- ---------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31,
- ---------------------------------------------------------------------------------------------------------------------------------
1996 1995
--------------------------------- -------------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
- ---------------------------------------------------------------------------------------------------------------------------------
EARNING ASSETS
Federal funds sold and securities purchased
(1) under resale agreements $ 570 5.88% $ 8 $ 83 5.59% $ 1
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 2,624 6.06 40 753 5.84 11
Securities of U.S. government agencies
(3) and corporations 7,017 6.41 112 2,476 5.61 35
(4) Private collateralized mortgage obligations 3,105 6.67 52 1,370 6.01 21
(5) Other securities 440 6.83 7 125 26.47 6
-------- ----- -------- -----
(6) Total investment securities at fair value 13,186 6.42 211 4,724 6.20 73
At cost:
(7) U.S. Treasury securities -- -- -- 676 5.04 9
Securities of U.S. government agencies
(8) and corporations -- -- -- 2,842 6.21 44
(9) Private collateralized mortgage obligations -- -- -- 762 5.91 11
(10) Other securities -- -- -- 102 7.02 2
-------- ----- -------- -----
(11) Total investment securities at cost -- -- -- 4,382 6.00 66
-------- ----- -------- -----
(12) Total investment securities 13,186 6.42 211 9,106 6.10 139
(13) Mortgage loans held for sale (2) -- -- -- 160 7.55 3
Loans:
(14) Commercial 18,897 8.93 424 9,167 9.83 227
(15) Real estate 1-4 family first mortgage 10,535 7.42 196 4,461 7.51 84
(16) Other real estate mortgage 12,039 9.54 288 8,010 9.46 191
(17) Real estate construction 2,311 10.52 61 1,307 10.05 33
Consumer:
(18) Real estate 1-4 family junior lien mortgage 6,348 9.45 151 3,356 8.67 73
(19) Credit card 5,335 14.65 195 3,882 15.49 151
(20) Other revolving credit and monthly payment 8,522 9.47 203 2,517 10.97 69
-------- ----- -------- -----
(21) Total consumer 20,205 10.83 549 9,755 11.98 293
(22) Lease financing 2,936 8.71 64 1,705 9.22 39
(23) Foreign 174 7.80 3 18 -- --
-------- ----- -------- -----
(24) Total loans 67,097 9.42 1,585 34,423 10.03 867
(25) Other 709 6.15 11 70 -- --
-------- ----- -------- -----
(26) Total earning assets $ 81,562 8.88 1,815 $ 43,842 9.19 1,010
-------- ----- -------- -----
-------- --------
FUNDING SOURCES
Deposits:
(27) Interest-bearing checking $ 3,000 1.28 10 $ 2,946 1.01 8
(28) Market rate and other savings 34,012 2.66 227 15,955 2.66 107
(29) Savings certificates 15,785 5.07 201 8,609 5.40 117
(30) Other time deposits 331 6.79 5 297 7.64 6
(31) Deposits in foreign offices 227 4.85 3 673 5.75 9
-------- ----- -------- -----
(32) Total interest-bearing deposits 53,355 3.33 446 28,480 3.44 247
Federal funds purchased and securities sold
(33) under repurchase agreements 1,493 5.29 20 2,665 5.69 38
(34) Commercial paper and other short-term borrowings 416 3.66 4 431 5.69 6
(35) Senior debt 2,240 6.19 35 1,768 6.37 29
(36) Subordinated debt 2,941 6.90 51 1,405 6.60 23
Guaranteed preferred beneficial interests in Company's
(37) subordinated debentures 326 7.86 6 -- -- --
-------- ----- -------- -----
(38) Total interest-bearing liabilities 60,771 3.68 562 34,749 3.92 343
(39) Portion of noninterest-bearing funding sources 20,791 -- -- 9,093 -- --
-------- ----- -------- -----
(40) Total funding sources $ 81,562 2.74 562 $ 43,842 3.11 343
-------- ----- -------- -----
-------- --------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(41) A TAXABLE-EQUIVALENT BASIS (3) 6.14% $ 1,253 6.08% $ 667
----- -------- ----- -------
----- -------- ----- -------
NONINTEREST-EARNING ASSETS
(42) Cash and due from banks $ 10,539 $ 2,858
(43) Goodwill 7,362 386
(44) Other 7,845 2,083
--------- --------
Total noninterest-earning assets $ 25,746 $ 5,327
--------- --------
--------- --------
NONINTEREST-BEARING FUNDING SOURCES
(45) Deposits $ 27,979 $ 9,433
(46) Other liabilities 3,917 1,148
(47) Preferred stockholders' equity 934 489
(48) Common stockholders' equity 13,707 3,350
Noninterest-bearing funding sources used to
(49) fund earning assets (20,791) (9,093)
--------- --------
(50) Net noninterest-bearing funding sources $ 25,746 $ 5,327
--------- --------
--------- --------
(51) TOTAL ASSETS $ 107,308 $ 49,169
--------- --------
--------- --------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.25% and 8.72% for the
quarters ended December 31, 1996 and 1995, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.53% and 5.86%
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 $13,145
million and $4,708 million for the quarters ended December 31, 1996
and 1995, respectively. The average amortized cost balance for mortgage
loans held for sale totaled $160 million for the quarter ended
December 31, 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 both quarterly periods presented.
-11-
WELLS FARGO & COMPANY AND SUBSIDIARIES
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
- ----------------------------------------------------------------------------------------------------------------------------------
Year ended December 31,
1996 1995
--------------------------------- ---------------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
- ----------------------------------------------------------------------------------------------------------------------------------
EARNING ASSETS
Federal funds sold and securities purchased
(1) under resale agreements $ 522 5.55% $ 29 $ 69 5.94% $ 4
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 2,460 5.77 142 499 6.34 31
Securities of U.S. government agencies
(3) and corporations 6,980 6.20 435 1,426 5.55 81
(4) Private collateralized mortgage obligations 2,691 6.39 174 1,095 6.24 71
(5) Other securities 455 6.84 28 81 19.69 11
-------- -------- -------- --------
(6) Total investment securities at fair value 12,586 6.18 779 3,101 6.17 194
At cost:
(7) U.S. Treasury securities -- -- -- 1,246 4.88 61
Securities of U.S. government agencies
(8) and corporations -- -- -- 4,428 6.07 269
(9) Private collateralized mortgage obligations -- -- -- 1,124 5.87 66
(10) Other securities -- -- -- 145 6.90 10
-------- -------- -------- --------
(11) Total investment securities at cost -- -- -- 6,943 5.84 406
-------- -------- -------- --------
(12) Total investment securities 12,586 6.18 779 10,044 5.94 600
(13)Mortgage loans held for sale (2) -- -- -- 1,002 7.48 76
Loans:
(14) Commercial 16,640 9.02 1,501 8,635 9.88 853
(15) Real estate 1-4 family first mortgage 9,601 7.43 713 5,867 7.36 432
(16) Other real estate mortgage 11,470 9.31 1,068 8,046 9.50 765
(17) Real estate construction 2,093 10.43 218 1,146 10.16 116
Consumer:
(18) Real estate 1-4 family junior lien mortgage 5,801 9.09 528 3,349 8.61 288
(19) Credit card 4,938 14.87 734 3,547 15.59 552
(20) Other revolving credit and monthly payment 7,329 9.57 701 2,397 10.68 257
-------- -------- -------- --------
(21) Total consumer 18,068 10.87 1,963 9,293 11.81 1,097
(22) Lease financing 2,557 8.82 226 1,498 9.22 138
(23) Foreign 145 6.62 10 23 7.54 2
-------- -------- -------- --------
(24) Total loans 60,574 9.41 5,699 34,508 9.86 3,403
(25)Other 432 6.29 27 62 5.47 3
-------- -------- -------- --------
(26) Total earning assets $ 74,114 8.81 6,534 $ 45,685 8.93 4,086
-------- -------- -------- --------
-------- --------
FUNDING SOURCES
Deposits:
(27) Interest-bearing checking $ 4,236 1.26 53 $ 3,907 1.00 39
(28) Market rate and other savings 29,482 2.64 777 15,552 2.61 405
(29) Savings certificates 14,433 4.93 712 8,080 5.25 424
(30) Other time deposits 385 6.64 27 385 6.14 24
(31) Deposits in foreign offices 336 5.19 17 1,771 5.91 105
-------- -------- -------- --------
(32) Total interest-bearing deposits 48,872 3.25 1,586 29,695 3.36 997
Federal funds purchased and securities sold
(33) under repurchase agreements 1,769 5.22 92 3,401 5.84 199
(34)Commercial paper and other short-term borrowings 369 4.13 16 544 5.82 32
(35)Senior debt 2,213 6.13 136 1,618 6.67 107
(36)Subordinated debt 2,403 6.93 166 1,459 6.55 96
Guaranteed preferred beneficial interests in
(37) Company's subordinated debentures 82 7.82 6 -- -- --
-------- -------- -------- --------
(38) Total interest-bearing liabilities 55,708 3.59 2,002 36,717 3.90 1,431
(39)Portion of noninterest-bearing funding sources 18,406 -- -- 8,968 -- --
-------- -------- -------- --------
(40) Total funding sources $ 74,114 2.70 2,002 $ 45,685 3.13 1,431
-------- -------- -------- --------
-------- --------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(41) A TAXABLE-EQUIVALENT BASIS (3) 6.11% $ 4,532 5.80% $ 2,655
----- -------- ----- --------
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NONINTEREST-EARNING ASSETS
(42)Cash and due from banks $ 7,977 $ 2,681
(43)Goodwill 5,614 399
(44)Other 5,687 2,002
-------- --------
Total noninterest-earning assets $ 19,278 $ 5,082
-------- --------
-------- --------
NONINTEREST-BEARING FUNDING SOURCES
(45)Deposits $ 22,739 $ 9,085
(46)Other liabilities 2,796 1,142
(47)Preferred stockholders' equity 779 489
(48)Common stockholders' equity 11,370 3,334
Noninterest-bearing funding sources used to
(49) fund earning assets (18,406) (8,968)
-------- --------
(50) Net noninterest-bearing funding sources $ 19,278 $ 5,082
-------- --------
-------- --------
TOTAL ASSETS $ 93,392 $ 50,767
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-------- --------
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(1) The average prime rate of Wells Fargo Bank was 8.27% and 8.83% for the
years ended December 31, 1996 and 1995, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.51% and 6.04%
for the same years, respectively.
(2) Yields are based on amortized cost balances. The average amortized cost
balances for investment securities at fair value totaled $12,610 million
and $3,144 million for the years ended December 31, 1996 and 1995,
respectively. The average amortized cost balance for mortgage loans held
for sale totaled $1,012 million for the year ended December 31, 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 both years presented.