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WFC · WELLS FARGO & COMPANY/MN

36 filings

10-K

WFC 10-K Annual Reports

WELLS FARGO & COMPANY/MN - 36 annual reports

Filing record · 2016–202610-K410-Q128-K584

2025
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2025
Wells Fargo's 2025 Form 10-K shows a year of stronger earnings and a continued retreat from legacy constraints. Net income rose 8% to $21.3 billion and diluted EPS increased 17% to $6.26, driven by a $1.6 billion increase in noninterest income (wealth management fees, investment banking, and a merchant services joint venture acquisition) and a $676 million decline in the provision for credit losses. Net interest income was roughly flat at $47.5 billion, as lower rates and a shift in deposit mix offset balance growth. Total revenue rose 2% to $83.7 billion, while noninterest expense was flat at $54.8 billion, keeping the efficiency ratio at 66%. Return on average tangible common equity improved to 14.6% from 13.4%. Credit quality improved modestly. The allowance for loan credit losses fell to $14.3 billion (1.45% of loans) from $14.6 billion, driven by commercial real estate office improvement. Nonperforming assets rose to $8.5 billion, mainly on commercial and industrial nonaccrual loans. Loans grew 8% to $986 billion and deposits rose 4% to $1.43 trillion. Regulatory constraints are a key investor consideration: the Federal Reserve lifted the asset growth cap in June 2025, but the 2018 governance consent order and the 2024 OCC anti-money laundering formal agreement remain in effect. Capital and liquidity remain strong, with a 10.61% CET1 ratio versus an 8.50% requirement and a 119% liquidity coverage ratio. Capital return remained a priority. The company repurchased $17.7 billion of stock in 2025 and paid $6.5 billion in common and preferred dividends, and it declared $1.70 per share in common dividends. Roughly $29.8 billion remained under the $40 billion repurchase authorization at year end. Book value per share rose to $53.24 from $48.85.
Feb 24, 2026
2024
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2024
Wells Fargo's 2024 Form 10-K (filed February 25, 2025) shows a company that remained profitable and well capitalized while still working through regulatory remediation. Net income was $19.7 billion ($5.37 diluted EPS), up from $19.1 billion ($4.83) in 2023, but total revenue was roughly flat at $82.3 billion. Net interest income fell 9% to $47.7 billion as deposit costs rose and loan balances declined, and that decline was offset by a 15% increase in noninterest income to $34.6 billion, driven by investment advisory fees, trading gains, and investment banking. Noninterest expense fell 2% to $54.6 billion, helped by lower FDIC special assessment expense, although operating losses rose 49% on customer remediation and legal costs. Credit quality was mixed. Net charge-offs rose to $4.8 billion, led by credit card losses and commercial real estate office exposure. The allowance for credit losses for loans declined slightly to $14.6 billion (1.60% of loans), and nonperforming assets fell 6% to $7.9 billion. Capital and liquidity remained strong, with a CET1 ratio of 11.07% against a 9.80% requirement, a TLAC ratio of 24.83%, and an LCR of 125%. Share repurchases totaled $19.6 billion in 2024, and the company's $30 billion buyback authorization had about $7.3 billion remaining at year-end. The filing also highlights ongoing regulatory constraints. The 2018 Federal Reserve consent order still caps total assets at the December 31, 2017 level, and the company faces a September 2024 OCC formal agreement on anti-money laundering and sanctions. During 2024 the OCC terminated the 2018 CFPB/OCC compliance consent order, and the CFPB terminated its 2022 consent order in January 2025. Management's remediation work is therefore still in progress, and the timing of the asset cap's removal remains a key uncertainty for growth.
Feb 25, 2025
2023
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2023
Wells Fargo closed 2023 with $1.9 trillion in assets, $936.7 billion in loans, $1.4 trillion in deposits, and $185.7 billion in stockholders' equity, making it the fourth-largest U.S. bank holding company by assets. Net income rose to $19.1 billion ($4.83 diluted EPS) from $13.7 billion ($3.27) in 2022, driven by a $7.4 billion increase in net interest income and a $1.6 billion decline in noninterest expense, partially offset by a $3.9 billion rise in the provision for credit losses. Return on average equity improved to 11.0% from 7.8%, and the efficiency ratio improved to 67% from 77%. Credit quality weakened, mainly in commercial real estate. Nonperforming assets rose 47% to $8.4 billion, driven by office-property nonaccruals, and the allowance for loan credit losses increased to $15.1 billion (1.61% of loans). Net charge-offs rose to $3.5 billion, with credit card losses the primary driver on the consumer side. Results also absorbed a $1.9 billion pre-tax FDIC special assessment, which will be paid over eight quarters beginning June 2024. The company remains well capitalized, with a 11.43% CET1 ratio (Standardized, binding), an LCR of 125%, and $30 billion of buyback authority of which about $26.7 billion remained at year-end. Management flags continuing regulatory consent orders, a proposed Basel III endgame rule expected to significantly raise risk-weighted assets, and proposed overdraft and interchange fee limits that could materially reduce fee income. Investors should weigh the earnings recovery against these regulatory overhangs and the commercial real estate exposure.
Feb 20, 2024
2022
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2022
Wells Fargo reported 2022 net income of $13.2 billion and diluted EPS of $3.14, down from $21.5 billion and $4.95 in 2021, as a $13.9 billion drop in noninterest income (lower equity-security gains, mortgage banking and advisory fees) and a $5.7 billion swing in provision for credit losses outweighed a $9.2 billion rise in net interest income. Net interest income grew 26% to $45.0 billion as higher rates lifted asset yields, while operating losses jumped to $7.0 billion, driven largely by litigation, regulatory and customer remediation matters. The efficiency ratio deteriorated to 78% from 69%. The balance sheet shrank modestly, with total assets of $1.88 trillion (down $67 billion) and deposits down 7% to $1.38 trillion as customers moved cash into higher-yielding alternatives. Capital and liquidity remained solid: the binding CET1 ratio was 10.60% against a 9.20% requirement, TLAC was 23.27% of RWAs, and the LCR was 122%. Return on average equity fell to 7.5% from 12.0%, and the company repurchased 110 million shares for $6 billion in 2022. The most important investor issue is the ongoing consent-order regime: the 2018 Federal Reserve asset cap remains in place, and a new CFPB consent order (December 2022, $1.7 billion penalty) was added to earlier OCC and CFPB orders. The filing stresses that remediation will take multiple years and that failures to meet requirements could bring further penalties or business restrictions, so regulatory progress and legal costs remain the key swing factors for future earnings.
Feb 21, 2023
2021
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2021
Wells Fargo reported 2021 net income of $21.5 billion ($4.95 diluted EPS), a sharp rebound from $3.4 billion ($0.43 EPS) in 2020, driven mainly by a $18.3 billion swing in the provision for credit losses to a $4.2 billion release, along with an $8.4 billion increase in noninterest income. Net interest income fell 10% to $35.8 billion as lower rates, shrinking loan balances and the student loan sale weighed on earnings, while noninterest expense declined 7% to $53.8 billion. The balance sheet remained large at approximately $1.95 trillion in assets, with deposits of $1.48 trillion and total equity of $190.1 billion. Capital and liquidity ratios stayed comfortably above requirements: the Standardized CET1 ratio was 11.35% versus a 9.60% requirement, total loss absorbing capacity was 23.03% versus 21.50%, and the liquidity coverage ratio was 118%. The Board approved an increase in the first-quarter 2022 dividend to $0.25 per share, and the company repurchased 306 million shares for $14.5 billion during 2021. Investors should keep the ongoing regulatory overhang in view. The February 2018 Federal Reserve consent order still caps total consolidated assets at year-end 2017 levels, the company remains subject to multiple CFPB and OCC consent orders, and a $250 million OCC civil money penalty was assessed in September 2021. Management says resolving these matters will take multiple years, and further penalties remain possible, so the earnings recovery is partly dependent on continued progress in remediation.
Feb 22, 2022
2020
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2020
Wells Fargo reported a sharply weaker 2020 as the COVID-19 pandemic forced a large increase in credit provisioning and pressured revenue. Net income fell to $3.3 billion ($0.41 diluted EPS) from $19.5 billion ($4.05) in 2019. The provision for credit losses rose to $14.1 billion from $2.7 billion, net interest income fell 16% to $39.8 billion, and noninterest income fell 14% to $32.5 billion. Restructuring charges of $1.5 billion tied to the efficiency initiatives also weighed on results. The return on average equity dropped to 1.04% and the efficiency ratio rose to 79.7%. Balance sheet strength remained a bright spot. Total assets were about $1.96 trillion, deposits grew 6% to $1.40 trillion, and the Common Equity Tier 1 ratio was 11.59%, above the 9% requirement and the company's 10% internal target. The allowance for credit losses for loans more than doubled to $19.7 billion, with the allowance coverage at 2.22% of total loans, and nonperforming assets rose 57% to $8.9 billion. The company is still operating under the February 2018 Federal Reserve consent order, which caps total consolidated assets at the December 31, 2017 level. Regulators also limited capital distributions for the first quarter of 2021, which constrains buybacks and dividend growth. Looking ahead, management announced the sale of Wells Fargo Asset Management for $2.1 billion (retaining a 9.9% stake), an increase of 500 million shares to its buyback authorization, and about $4.5 billion of preferred stock redemptions in March 2021. Investors will focus on whether credit losses have peaked, whether the regulatory asset cap and capital distribution limits ease, and whether the efficiency initiatives can lower the expense base.
Feb 23, 2021
2019
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2019
Wells Fargo reported 2019 net income of $19.5 billion, or $4.05 diluted EPS, down from $22.4 billion and $4.28 in 2018. The decline was driven by a $2.8 billion drop in net interest income (net interest margin fell to 2.73% from 2.91%, reflecting a flatter yield curve and higher promotional deposit costs), a $2.1 billion rise in noninterest expense (to $58.2 billion, with operating losses up 38% on litigation accruals), and a $943 million increase in the provision for credit losses. Partial offsets included a $1.4 billion increase in noninterest income, helped by gains on the sales of the Institutional Retirement and Trust business, Eastdil, and equity securities. Credit quality remained solid, with net charge-offs flat at 0.29% and nonaccrual loans down 18% to $5.3 billion. Capital remained strong. The CET1 ratio was 11.14% (versus an internal target of 10%), and the company returned $30.2 billion to shareholders through dividends and net buybacks, while repurchasing 502.4 million shares. The dividend was raised to $0.51 per quarter from $0.43. Total assets were $1.93 trillion, and the company remains the fourth-largest U.S. bank holding company by assets. The filing is dominated by the company's ongoing regulatory remediation. A February 2018 Federal Reserve consent order caps total consolidated assets at the December 31, 2017 level until governance and risk-management plans are approved and third-party reviews are completed. Additional CFPB/OCC consent orders and the 'Needs to Improve' CRA rating remain in place. In February 2020, after the period end, the company agreed to pay $3.0 billion to resolve Department of Justice and SEC investigations into its retail sales practices, and it faces a range of other legal matters, with a reasonably possible additional loss of up to about $2.6 billion above accruals.
Feb 27, 2020
2018
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2018
Wells Fargo's 2018 Form 10-K (filed February 27, 2019) shows a $1.9 trillion diversified financial services company, the fourth-largest U.S. bank holding company by assets, with 258,700 full-time equivalent team members. Net income rose modestly to $22.4 billion, and diluted EPS increased 4% to $4.28, helped by a lower 20.2% effective tax rate after the 2017 Tax Act. Revenue fell 2% to $86.4 billion as noninterest income dropped 6% on weaker mortgage banking, insurance, and deposit service charges. Net interest income grew 1% to $50.0 billion, and net interest margin improved to 2.91%. Credit quality remained strong, with a net charge-off rate of 0.29% and nonaccrual loans down 15% to $6.5 billion. The central investor concern is the company's ongoing remediation and regulatory overhang. A February 2018 Federal Reserve consent order caps total consolidated assets at the December 31, 2017 level, and the company expects to operate under that cap through the end of 2019. Separate April 2018 CFPB and OCC consent orders carry $1 billion in civil penalties, and the company disclosed continuing reviews of retail sales practices, automobile lending, fiduciary fees, and foreign exchange pricing. Deposits fell $49.8 billion, or 4%, partly due to asset-cap actions. The company also disclosed a February 7, 2019 data center outage that disrupted online banking and mortgage origination systems. Capital returns remained substantial. The company returned $25.8 billion to shareholders through dividends and net buybacks, repurchasing 375.5 million shares. The Common Equity Tier 1 ratio was 11.74% on a fully phased-in basis, above the company's 10% internal target. The dividend was raised from $0.39 to $0.43 per quarter during 2018. Management expects further share count reduction in 2019.
Feb 27, 2019
2017
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2017
Wells Fargo closed 2017 with $2.0 trillion in assets, $1.3 trillion in deposits, and $207 billion in stockholders' equity, remaining the third-largest U.S. bank holding company by assets. The company earned $22.2 billion of net income ($4.10 diluted EPS) versus $21.9 billion ($3.99) in 2016, but the headline figure was flattered by a $3.4 billion after-tax benefit from the Tax Act. Revenue was roughly flat at $88.4 billion, net interest income rose 4% to $49.6 billion, and noninterest expense jumped 12% to $58.5 billion, driven by $5.5 billion of operating losses that include litigation accruals tied to sales practices and mortgage matters. The efficiency ratio deteriorated to 66.2% from 59.3%. Credit quality improved: net charge-offs fell to 0.31% of average loans, nonaccrual loans dropped to $8.0 billion, and the allowance for credit losses declined to $12.0 billion. Capital remained strong, with a fully phased-in Common Equity Tier 1 ratio of 11.98% under the Standardized Approach, and the company returned $14.5 billion to shareholders through dividends and net buybacks. However, the filing is dominated by governance and regulatory overhang: a February 2018 Federal Reserve consent order caps total consolidated assets at the December 2017 level pending third-party reviews due by September 30, 2018, and the company disclosed a sales practices investigation, a CFPB auto lending probe, and a fiduciary fee-overcharge review. Credit rating agencies took negative actions in 2017 and early 2018, with S&P and Fitch downgrading the company by one notch. For investors, the key tension is between a financially solid balance sheet and earnings that are increasingly exposed to legal costs, remediation, and a constrained growth profile under the asset cap.
Mar 1, 2018
2016
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2016
Wells Fargo closed 2016 as the third-largest U.S. bank holding company by assets, with $1.9 trillion in assets, $968 billion in loans, $1.3 trillion in deposits and $200 billion of equity. Net income was $21.9 billion, or $3.99 diluted EPS, down from $4.12 in 2015 as higher net interest income was offset by a $1.3 billion increase in credit provisions and a $2.4 billion rise in noninterest expense. Revenue grew 3% to $88.3 billion, and net interest income rose to 54% of revenue, reflecting loan growth that included $27.9 billion of commercial loans and leases acquired from GE Capital. Credit quality was stable, with net charge-offs of 0.37% of average loans, although oil and gas losses drove a $250 million reserve build. Capital remained strong, with a 10.77% fully phased-in Common Equity Tier 1 ratio, and the company returned $12.5 billion to shareholders. The dominant investor issue is the retail banking sales practices matter, which led to September 2016 settlements with the CFPB, OCC and Los Angeles City Attorney. The company has launched remediation, eliminated product sales goals, and faces ongoing investigations, lawsuits and possible further costs. Fitch, S&P and DBRS revised their outlooks to negative in the fourth quarter. The Federal Reserve and FDIC also identified deficiencies in the 2015 resolution plan, and the company must file a revised submission by March 31, 2017. Until those deficiencies are remedied, the company faces restrictions on foreign and nonbank acquisitions and on the size of nonbank and broker-dealer assets. Looking ahead, management expects the efficiency ratio to stay elevated, the share count to keep declining through buybacks, and the net interest margin to face pressure from funding costs. The company is also preparing for new rules, including CECL, lease accounting and TLAC requirements, which will require additional long-term debt issuance.
Mar 1, 2017
2015
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2015
Wells Fargo's 2015 Form 10-K (filed February 24, 2016) reports a franchise that remained highly profitable and well capitalized, though growth was modest. Net income was $22.9 billion ($4.12 diluted EPS, a record), essentially flat versus $23.1 billion in 2014, with revenue up 2% to $86.1 billion. Net interest income rose 4% to $45.3 billion, while the net interest margin compressed to 2.95% from 3.11%, reflecting deposit growth that was deployed into lower-yielding liquid assets. Noninterest income was stable at $40.8 billion, and noninterest expense rose 2% to $50.0 billion, leaving the efficiency ratio at 58.1%. Credit quality continued to improve, with net charge-offs falling to 0.33% of average loans and nonperforming assets declining for 13 consecutive quarters. However, the filing flags emerging stress in the oil and gas portfolio (under 2% of loans, roughly $1.2 billion of allowance allocated to it), which drove a commercial allowance build and could worsen if oil prices stay low. The provision for credit losses rose to $2.4 billion from $1.4 billion, and the company recorded smaller allowance releases ($450 million versus $1.6 billion a year earlier). Operating losses rose 50% to $1.9 billion, including litigation accruals, and a $1.2 billion FHA settlement was agreed in principle after year-end. Capital strength is a central investor takeaway: the Common Equity Tier 1 ratio (fully phased-in, Standardized Approach) reached 10.77%, up from 10.43%, and the company returned $12.6 billion to shareholders through dividends and net buybacks. Total assets reached $1.8 trillion, loans grew 6% to $917 billion, and deposits grew 5% to $1.2 trillion. The company also disclosed pending GE Capital commercial finance acquisitions (about $31 billion in assets) and remains a G-SIB subject to a surcharge that the FRB estimated at 2.0%, with a long-term CET1 target of at least 10%.
Feb 24, 2016
2014
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2014
Wells Fargo closed 2014 as the fourth-largest U.S. bank holding company by assets, with $1.7 trillion in assets, $1.2 trillion in deposits, and $184 billion in stockholders' equity. The company reported record 2014 net income of $23.1 billion, up 5% from 2013, and record diluted EPS of $4.10, also up 5%. Revenue rose 1% to $84.3 billion, and the efficiency ratio improved slightly to 58.1%. Growth came from core loans (up $60.3 billion, or 8%) and deposits (up $89.1 billion, or 8%), while the non-strategic and liquidating portfolios shrank by $20.1 billion. Credit quality continued to improve. Net charge-offs fell to 0.35% of average loans from 0.56% in 2013, nonperforming assets declined 21%, and the provision for credit losses dropped to $1.4 billion from $2.3 billion. The allowance for credit losses was reduced to $13.2 billion, or 1.53% of total loans, and management noted that future allowance levels may rise or fall. Mortgage banking income fell 27% to $6.4 billion as originations dropped to $175 billion from $351 billion, which pressured noninterest income. Capital strengthened: the estimated Basel III Advanced Approach CET1 ratio (fully phased-in) rose to 10.43% from 9.76%, and the company returned $12.5 billion to shareholders through dividends and net buybacks. Investors should watch the net interest margin, which compressed to 3.11% from 3.40%, the pending G-SIB surcharge and TLAC rules, the Basel III phase-in, and ongoing legal and regulatory matters, including the FHA insurance litigation and the Gutierrez posting-order judgment of about $203 million.
Feb 25, 2015
2013
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2013
Wells Fargo closed 2013 as a record-earnings year: net income rose 16% to $21.9 billion and diluted EPS reached $3.89. Results were driven by a sharply lower provision for credit losses ($2.3 billion, down $4.9 billion year over year) and strong fee income in brokerage, investment banking, cards and mortgage servicing, partly offset by a 25% decline in mortgage banking income as refinancing volume fell. Revenue dipped 3% to $83.8 billion, and the efficiency ratio improved to 58.3%. The company ended the year with $1.5 trillion in assets, $1.1 trillion in deposits and $170 billion of equity. Credit quality continued to improve: net charge-offs fell 50% to $4.5 billion (0.56% of average loans), nonaccrual loans declined to $15.7 billion, and the allowance for credit losses dropped to $15.0 billion. Management expects further allowance releases absent a significant economic deterioration. Capital strengthened, with the estimated Basel III Common Equity Tier 1 ratio rising to 9.76%, above the company's 9% internal target. The company returned $11.4 billion to shareholders through dividends and buybacks, and the quarterly dividend was raised to $0.30. Key pressures for investors include a net interest margin that compressed to 3.39% from 3.76% as deposit growth and liquidity-driven funding diluted yields, the ongoing legacy mortgage servicing and repurchase matters, the phase-in of Basel III and the Volcker Rule, and a $1.15 billion increase in total long-term debt. Management also flagged cyber-attack risk and the possibility of future regulatory fines and litigation outcomes that could be material.
Feb 26, 2014
2012
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2012
Wells Fargo closed 2012 as a larger, more profitable franchise: net income rose 19% to $18.9 billion, diluted EPS reached $3.36, and return on assets improved to 1.41%, the highest in five years. Total revenue grew 6% to $86.1 billion, driven mainly by a $3.8 billion increase in mortgage banking income on record mortgage originations of $524 billion, while net interest income was roughly flat at $43.2 billion as the net interest margin compressed to 3.76%. The efficiency ratio improved to 58.5% from 61.0%, though noninterest expense still rose to $50.4 billion, including a $766 million Independent Foreclosure Review accrual, a $175 million DOJ settlement, and a $250 million Wells Fargo Foundation contribution. Credit quality continued to improve. Net charge-offs fell to $9.0 billion (1.17% of average loans) from $11.3 billion, nonperforming assets declined to $24.5 billion, and the provision for credit losses ($7.2 billion) was $1.8 billion below net charge-offs, so the allowance was released. Part of the improvement was offset by regulatory guidance on junior-lien mortgages and bankruptcy-discharged consumer loans, which added roughly $2.8 billion to nonperforming assets. The company's capital position is strong: Tier 1 common equity reached 10.12% under Basel I, the Tier 1 risk-based capital ratio was 11.75%, and Basel III estimates exceeded the 7.0% minimum by 119 basis points. Management also raised the quarterly dividend to $0.22 and later to $0.25, and repurchased about 120 million shares. Key risks for investors include a flattening yield curve pressuring the net interest margin, mortgage banking volatility tied to interest rates and MSR hedging, unresolved regulatory items (Dodd-Frank rulemaking, Basel III finalization, and G-SIB surcharge of 1.0%), ongoing mortgage repurchase exposure with a $2.2 billion liability, and pending litigation including the FHA insurance suit and the interchange settlement of roughly $6.6 billion across defendants.
Feb 27, 2013
2011
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2011
Wells Fargo's 2011 Form 10-K (filed February 28, 2012) shows a year of strong earnings recovery driven mainly by lower credit costs rather than revenue growth. Net income rose 28% to $15.9 billion, and diluted EPS reached $2.82, up from $2.21. The provision for credit losses fell by half to $7.9 billion, and net charge-offs dropped to $11.3 billion from $17.8 billion. Total revenue declined 5% to $80.9 billion, reflecting lower net interest income (down 4% as net interest margin compressed 32 basis points to 3.94%), weaker mortgage banking income, and reduced debit interchange fees after the Durbin Amendment took effect. Noninterest expense fell 2% to $49.4 billion, though efficiency remained a concern at a 61% efficiency ratio, and management targets $11 billion of quarterly noninterest expense by Q4 2012. Balance sheet strength improved meaningfully. Total assets reached $1.3 trillion, deposits grew 9% to $920 billion, and core deposits funded 113% of loans. Tier 1 common equity rose to 9.46% under Basel I, and management estimates 7.50% under proposed Basel III, 50 basis points above the 7.0% fully phased-in minimum. The company repurchased about 80 million shares and redeemed $9.2 billion of trust preferred securities, and it raised its quarterly dividend to $0.12. Key risks remain. Nonperforming assets are still elevated at $26.0 billion, and the company faces mortgage-related exposure, including a February 2012 settlement in principle with federal and state authorities worth $5.3 billion in commitments, along with ongoing repurchase demands and foreclosure-related consent orders. Regulatory reform (Dodd-Frank, Volcker Rule, G-SIB surcharge) adds uncertainty, and Moody's and S&P downgraded the parent's senior debt by one notch in 2011.
Feb 28, 2012
2010
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2010
Wells Fargo's 2010 Form 10-K (filed February 25, 2011) shows a company that grew earnings and rebuilt capital while its credit costs and mortgage exposures remained elevated. Net income was a record $12.4 billion ($2.21 diluted EPS) versus $12.3 billion ($1.75) in 2009, and revenue fell 4% to $85.2 billion as noninterest income and net interest income both declined. The earnings improvement came mainly from a $7.9 billion reduction in the provision for credit losses ($15.8 billion vs. $21.7 billion), which ran $2.0 billion below net charge-offs. Management frames the credit cycle as turning, with net charge-offs falling each quarter from the late-2009 peak and nonaccrual loans declining for the first time since the Wachovia merger, though total nonperforming assets still stood at $32.4 billion (4.27% of loans). Capital strengthened materially. Tier 1 common equity rose to $81.3 billion, or 8.30% of risk-weighted assets, up from 6.46%, and the Tier 1 capital ratio reached 11.16%. However, dividends remain constrained: the quarterly common dividend is $0.05 per share, and any increase or share repurchase requires Federal Reserve approval of the Capital Plan Review submitted January 7, 2011, with no guarantee of timing or outcome. Management also flagged significant risk areas, including repurchase demands on mortgages (a $1.6 billion provision in 2010), foreclosure-documentation litigation and regulatory investigations, Dodd-Frank rulemaking still in progress, and Basel III's pending U.S. implementation. The Wachovia integration is described as on track to be substantially complete by the end of 2011, with merger integration costs of $1.9 billion in 2010. Core deposits grew 2% to $798 billion, and the company remains the fourth-largest U.S. bank holding company by assets at $1.26 trillion. Investors should weigh the strong capital build and improving credit trends against the still-high nonperforming asset levels, dependence on the Federal Reserve for capital distributions, and legal and mortgage-related exposures.
Feb 25, 2011
2009
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2009
Wells Fargo & Company's 2009 Form 10-K reports a transformative year shaped by the December 31, 2008 Wachovia acquisition, which lifted total assets to $1.24 trillion (fourth-largest U.S. bank holding company by assets) and roughly doubled revenue to $88.7 billion. Net income was a record $12.3 billion, or $1.75 per diluted share, with $8.0 billion applicable to common stock after preferred dividends. Earnings were also weighed down by $1.0 billion of accretion-related preferred dividends and a $0.76 per-share hit from fully repaying the $25 billion TARP preferred investment in December 2009. Pre-tax pre-provision profit of $39.7 billion covered net charge-offs more than 2.1 times, and management highlighted that the credit cycle appears to be turning, with consumer credit losses expected to peak in the first half of 2010 and commercial losses later in 2010. Capital strength improved markedly. Tier 1 common equity rose to $65.5 billion, or 6.46% of risk-weighted assets, up from 3.13% a year earlier, helped by three common stock offerings totaling over $33 billion since the Wachovia deal was announced, including $8.6 billion in May 2009 (to satisfy the SCAP stress-test buffer) and $12.2 billion in December 2009 (to refinance TARP). The Tier 1 capital ratio was 9.25%. The quarterly common dividend was cut to $0.05 per share in 2009 to retain earnings. Credit costs remained elevated: the provision for credit losses was $21.7 billion, nonaccrual loans reached $24.4 billion (3.12% of loans), total nonperforming assets were $27.6 billion, and the allowance for credit losses stood at $25.0 billion (3.20% of loans). Growth engines included a strong mortgage banking year ($12.0 billion of noninterest income, aided by a $5.3 billion net MSR valuation gain), trust and investment fees that rose to $9.7 billion, and core deposits that grew 5% to $780.7 billion. Investors should weigh the upside of a larger, more diversified franchise with a stronger balance sheet against integration execution risk, the potential for further credit deterioration in home-equity and Pick-a-Pay portfolios, legal exposures (including the Adelphia litigation, the Interchange litigation and Wachovia-related securities cases), and the modest 2010 fee-revenue headwinds from new overdraft and card regulations (approximately $500 million and $235 million after tax, respectively).
Feb 26, 2010
2008
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2008
Wells Fargo's 10-K for fiscal 2008, filed February 27, 2009, shows a company transformed by its December 31, 2008 acquisition of Wachovia, which was valued at $12.5 billion to Wachovia shareholders and created a $1.3 trillion-asset franchise, the fourth-largest U.S. bank holding company by assets. Reported 2008 results were sharply weaker: net income fell 67% to $2.66 billion ($0.70 diluted EPS) from $8.06 billion ($2.38) in 2007, driven by an $8.14 billion pre-tax credit reserve build, a provision for credit losses of $15.98 billion (up from $4.94 billion), and $2.01 billion of other-than-temporary impairment. Revenue nonetheless grew 6% to a record $41.9 billion, net interest margin rose to 4.83%, and noninterest expense declined 1%. Balance sheet strength was reinforced by a $25 billion U.S. Treasury preferred stock investment under TARP, which lifted Tier 1 capital and supported a Tier 1 risk-based capital ratio of 7.84% and total RBC of 11.83%, both above regulatory minimums. Nonaccrual loans rose to $6.80 billion (0.79% of loans) from $2.68 billion, and the allowance for credit losses reached $21.7 billion, about 3.2 times nonaccrual loans. Wachovia's Pick-a-Pay option ARM portfolio and home equity exposure, particularly in California, Florida and Arizona, remain the principal credit risks going forward. For investors, the key tensions are the reported earnings decline and dividend constraints versus the scale and franchise benefits of the merger. Dividends are restricted while TARP preferred stock is outstanding: any increase above the $0.34 quarterly common dividend and any common repurchases require Treasury consent until October 2011. The filing also flags integration risk, possible further Wachovia loan losses as purchase accounting is finalized, and pending litigation including Citigroup's claim seeking $20 billion in compensatory and $40 billion in punitive damages related to the merger.
Feb 27, 2009
2007
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2007
Wells Fargo & Company's 2007 Form 10-K, filed February 29, 2008, shows a company that absorbed a sharp housing downturn while still growing revenue and earnings. Net income was $8.06 billion ($2.38 diluted EPS), down 4% from $2.47 in 2006, as a $2.7 billion increase in the provision for credit losses cut after-tax earnings by about 18%. Revenue rose 10.4% to a record $39.4 billion, driven by 17% growth in noninterest income and 5% growth in net interest income. Return on average assets was 1.55% and return on equity 17.12%, both near the top of large bank peers. The main investor concern is credit quality, concentrated in the Home Equity portfolio. Management took a $1.4 billion special reserve build in Q4 2007, and net charge-offs rose to 1.03% of average loans from 0.73%. Nonaccrual loans climbed to $2.68 billion and nonperforming assets to $3.87 billion. Management explicitly expects higher net charge-offs in 2008, particularly in Home Equity. The $11.9 billion liquidating portfolio of third-party-sourced home equity loans is flagged as the highest-risk segment, with a 4.80% annualized loss rate versus 0.86% for the remainder. The balance sheet remains strong. Total assets were $575 billion, deposits $344 billion, and stockholders' equity $47.6 billion. The Tier 1 risk-based capital ratio was 7.59% and the total risk-based ratio 10.68%, both above minimums. Wells Fargo Bank, N.A. holds AAA from S&P and Aaa from Moody's, and the bank is one of only two banks worldwide with the top rating from both agencies. The company also grew through acquisitions, including Greater Bay Bancorp ($7.4 billion in assets), Placer Sierra Bancshares, and the CIT construction business, and repurchased 220 million shares during 2007.
Feb 29, 2008
2006
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2006
Wells Fargo's 2006 10-K (filed March 1, 2007) reports a year of record results: revenue rose 8% to a record $35.7 billion, net income grew 11% to a record $8.5 billion, and diluted EPS reached $2.49 (after the August 2006 two-for-one stock split). Return on average equity was 19.65% and return on assets 1.75%. Growth was broad-based across the company's three segments (Community Banking, Wholesale Banking, Wells Fargo Financial), with Wholesale Banking net income up 17% to a record $2.09 billion and Wells Fargo Financial up 111%. Home Mortgage revenue fell 15% to $4.2 billion, reflecting the company's ARM sales and a weaker mortgage environment. Credit quality showed some pressure beneath the headline numbers. Net charge-offs were 0.73% of average loans (down from 0.77% in 2005), but nonaccrual loans rose to $1.67 billion from $1.34 billion, and total nonperforming assets reached $2.42 billion (0.76% of loans). Auto loan losses rose $160 million due to collection constraints during the integration of prime and non-prime auto businesses. The allowance for credit losses covered 1.24% of total loans, down from 1.31%, and the company released $50 million of Hurricane Katrina reserves. Balance sheet strength was a clear positive. Total assets were $482 billion, deposits $310 billion, and stockholders' equity $46 billion (equity-to-assets of 9.52%, up from 8.44%). Wells Fargo Bank, N.A. was upgraded to AAA by S&P in February 2007, making it the only U.S. bank rated AAA by both S&P and Moody's. Management also returned capital through $3.6 billion in dividends and 59 million repurchased shares, with 62 million shares remaining under authorization.
Mar 1, 2007
2005
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2005
Wells Fargo & Company (WFC) closed 2005 as a $482 billion diversified financial services company and the fifth-largest U.S. bank holding company by assets. The company reported record net income of $7.7 billion, up 9% from $7.0 billion in 2004, and record diluted EPS of $4.50, up 10% from $4.09. Revenue rose 10% to a record $32.9 billion, driven by 8% growth in net interest income to $18.5 billion (reported; $18.6 billion taxable-equivalent) and 12% growth in noninterest income to $14.4 billion. Return on average assets was 1.72% and return on average common equity was 19.57%. Average loans grew 10%, and management emphasized a cross-selling strategy, with the average retail banking household holding 4.8 products. Credit quality was solid but carried some one-time pressures. Net charge-offs rose to 0.77% of average loans from 0.62%, mainly due to the October 2005 bankruptcy law change ($171 million), a Wells Fargo Financial charge-off timing conformance ($163 million), and a $100 million Hurricane Katrina provision. The allowance for credit losses was $4.06 billion, or 1.31% of loans, and nonaccrual loans fell slightly to 0.43% of total loans. Balance sheet repositioning cost roughly $239 million in losses from the sale of $48 billion of low-yielding ARMs and $17 billion of debt securities. Capital remained strong, with a Tier 1 RBC ratio of 8.26% and total RBC of 11.64%, and the Company is rated Aaa by Moody's through Wells Fargo Bank, N.A. Investors should note that stock option expensing under FAS 123R begins in 2006, with an estimated impact of about $0.06 per share, and the filing flags interest rate, mortgage servicing rights, and regulatory risks.
Mar 9, 2006
2004-A
WELLS FARGO & COMPANY/MN Annual Report (Amendment), Year Ended Dec 31, 2004
This filing is an amendment to Wells Fargo & Company's 2004 Annual Report on Form 10-K, primarily to correct Exhibit 23, the Consent of Independent Registered Public Accounting Firm, and to file new Exhibits 31(a) and 31(b). The core financial and operational details for the fiscal year ended December 31, 2004, were presented in the original 10-K filed on March 10, 2005. This amendment does not introduce new material financial information but rather addresses procedural and disclosure requirements related to exhibits. Investors should refer to the original 10-K filing for comprehensive information on Wells Fargo's performance, financial condition, and strategic outlook for 2004.
Mar 17, 2005
2004
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2004
Wells Fargo & Company's 2004 Form 10-K (filed March 10, 2005) portrays a year of record earnings and continued balance sheet growth for the fifth-largest U.S. bank holding company, with $427.8 billion in total assets at year-end 2004. Net income rose 13% to $7.0 billion, and diluted EPS increased 12% to a record $4.09. Total revenue grew 6% to a record $30.1 billion despite a 37% decline in mortgage originations, and noninterest expense rose only 2%, which improved operating leverage. Results were supported by average loan growth of 26%, average retail core deposit growth of 11%, and a 4% increase in noninterest income led by trust, investment, card and loan fees. The main offsets for investors were margin compression and higher investment spending. The net interest margin fell to 4.89% from 5.08%, reflecting lower investment portfolio yields and new loans added below the portfolio average. Management also absorbed a $217 million charitable contribution to the Wells Fargo Foundation, a $44 million special 401(k) stock contribution, and a $174 million loss on debt extinguishment. Asset quality improved: net charge-offs fell to 0.62% of average loans from 0.81%, and nonaccrual loans declined to 0.47% of total loans. The allowance for credit losses covered 237% of net charge-offs. Capital and liquidity remained strong. The Tier 1 risk-based capital ratio was 8.41% and the total risk-based capital ratio was 12.07%, both above regulatory minimums, and the company was rated Aaa by Moody's at the bank level. The board authorized an additional 25 million share repurchase in January 2005, and dividends declared rose 24% to $1.86 per share. Management also flagged upcoming headwinds: expensing of stock options beginning July 1, 2005 (about $0.03 per share in the second half of 2005), integration costs tied to the Strong Financial acquisition and the pending First Community Capital deal, and continued sensitivity to interest rates and mortgage refinancing activity.
Mar 10, 2005
2003
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2003
Wells Fargo & Company's 2003 Form 10-K shows a company at record scale and profitability: net income of $6.2 billion ($3.65 diluted EPS, up 10% from $3.32 before the accounting change), revenue of about $28.4 billion (up 12%), and total assets of $387.8 billion, making it the fifth-largest U.S. bank holding company by assets. Growth was driven by lending and deposits. Average loans rose 22% to $213.1 billion, average core deposits rose 12%, and mortgage originations jumped 41% to a record $470 billion. ROE was 19.36% and ROA 1.64%, though the net interest margin compressed to 5.08% from 5.53% as new loans were priced at lower yields. Credit quality improved on most measures. Net charge-offs fell to 0.81% of average loans from 0.96%, and nonaccrual loans declined to 0.58% of total loans from 0.78%. The allowance for loan losses was $3.89 billion, or 1.54% of loans, down from 1.98%, mainly because the loan mix shifted toward lower-loss residential real estate and consumer loans. Some items deserve attention. Noninterest expense rose 17% to $17.2 billion, partly from mortgage-driven growth and a large charitable stock donation. Mortgage servicing rights carry a $1.9 billion valuation allowance, and net servicing fees were a $954 million loss. The company also has a sizable interest-rate sensitivity in its mortgage business. Capital remained strong. The Tier 1 RBC ratio was 8.42% and total RBC was 12.21%, both above regulatory minimums, and the Tier 1 leverage ratio was 6.93%. The dividend was raised sharply during 2003, to $0.45 per quarter from $0.28, and the company repurchased about 31 million shares. Overall, the filing presents a company with strong earnings momentum, a high-quality balance sheet, and a rising dividend, with margin pressure and mortgage-related volatility as the main risks to monitor.
Mar 12, 2004
2002-A
WELLS FARGO & COMPANY/MN Annual Report (Amendment), Year Ended Dec 31, 2002
Wells Fargo & Company's Form 10-K/A for fiscal 2002 (filed January 16, 2004) shows a $349 billion diversified financial services company with 2002 net income of $5.43 billion ($3.16 diluted EPS) after a $276 million after-tax goodwill impairment charge; before that charge, net income was $5.71 billion ($3.32 diluted EPS), up 67% from 2001 when results were depressed by roughly $1.16 billion after-tax of equity-security impairments. Revenue rose 20% to $25.25 billion, driven by a 21% jump in net interest income to $14.59 billion (taxable-equivalent) and a 5.53% net interest margin, plus a 20% rise in noninterest income to $10.77 billion. Mortgage origination volume reached a record $333 billion, but heavy prepayments forced $2.1 billion of MSR impairment provisions and a $1.07 billion direct write-down, which pushed net servicing fees to a $737 million loss. Credit quality improved: net charge-offs fell to 0.96% of average loans from 1.10%, nonaccrual loans declined to $1.49 billion, and the allowance stood at $3.82 billion (1.98% of loans). Capital remained strong, with a 7.70% Tier 1 risk-based ratio, 11.44% total risk-based ratio, and all covered banks rated well capitalized. The company returned $1.9 billion in dividends and repurchased about 43 million shares, and the board raised the quarterly dividend 7% to $0.30 in January 2003. This amended filing reflects a reclassification of auto leases from direct finance leases to operating leases under EITF D-107, which lifted reported noninterest income and expense while leaving net income essentially unchanged (2002 net income was $5.434 billion both before and after the revision). Investors should note the sensitivity of mortgage servicing earnings to interest-rate moves and the large unallocated share of the loan loss allowance (34%).
Jan 16, 2004
2002
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2002
Wells Fargo's 2002 10-K (filed March 14, 2003) reports a year of strong growth in its core franchise, offset by a sharp rise in mortgage servicing costs. Net income was $5.43 billion ($3.16 diluted EPS) after a $276 million after-tax transitional goodwill impairment charge under FAS 142; before that charge, net income was $5.71 billion ($3.32 diluted EPS), up from $3.99 billion (adjusted) in 2001. Net interest income rose 19% to $14.86 billion on a taxable-equivalent net interest margin of 5.57%, up from 5.36%, driven by loan growth of 14% to $196.6 billion and a 10% increase in average core deposits. Total assets reached $349 billion, making the company the fourth largest U.S. bank holding company by assets. Credit quality improved modestly. Net charge-offs were 0.96% of average loans, down from 1.09%, and nonaccrual loans fell to $1.49 billion (0.8% of loans) from $1.64 billion. The allowance for loan losses was $3.86 billion, or 1.96% of total loans, down from 2.18%, though management noted that the unallocated portion rose to a third of the total reserve, reflecting economic uncertainty in agriculture, used-car lending and commercial office markets. The main risk flagged for investors is mortgage servicing. Mortgage servicing rights were written down by $1.07 billion and carried a $2.19 billion valuation allowance, driven by prepayment speeds after the 30-year mortgage rate fell to 5.01%. Net servicing fees were a $737 million loss. Originations surged to $333 billion, and noninterest income still rose 25% to $9.64 billion. Capital remained strong, with a total risk-based capital ratio of 11.31%, a Tier 1 ratio of 7.60%, and a leverage ratio of 6.58%, all above regulatory minimums. The Board also raised the quarterly dividend to $0.30 per share from $0.28.
Mar 14, 2003
2001
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2001
Wells Fargo & Company's 2001 Form 10-K (filed March 15, 2002) describes a $308 billion diversified financial services company, the fifth largest U.S. bank holding company by assets and third by market capitalization. Net income for 2001 was $3.42 billion, down from $4.03 billion in 2000, and diluted EPS fell to $1.97 from $2.33. The decline was driven by roughly $1.72 billion (pre-tax) of non-cash impairment write-downs on public and private equity securities, mainly in the venture capital portfolio, taken in the second quarter of 2001. Excluding these special charges, ROA was 1.60% and ROE was 17.13%, and revenue (net interest income plus noninterest income, adjusted for impairments) grew about 11% to $21.87 billion. Core banking momentum was solid: net interest income rose 15% to $12.46 billion, the net interest margin widened to 5.36%, and record mortgage originations boosted fee income. Credit quality weakened modestly. The provision for loan losses rose to $1.78 billion from $1.33 billion, net charge-offs reached 1.09% of average loans versus 0.84% in 2000, and nonaccrual and restructured loans climbed to $1.64 billion (1.0% of total loans). The allowance for loan losses stood at $3.76 billion, or 2.18% of total loans, which management considers adequate. Capital remained strong, with a total risk-based capital ratio of 10.45%, a Tier 1 ratio of 6.99%, and a leverage ratio of 6.25%, all above regulatory minimums and consistent with a well-capitalized status. Management also flagged risks including the post-September 11 economic slowdown, the California energy crisis, equity market volatility affecting its venture capital holdings, and the mortgage servicing rights valuation sensitivity to interest rates. Looking ahead, management expects the elimination of goodwill amortization under FAS 142 to reduce 2002 noninterest expense by about $600 million pre-tax and raise net income by about $560 million after tax. The company also repurchased shares and paid $1.00 per share in dividends in 2001, and it filed a $10 billion universal shelf registration in February 2002 to support future funding and acquisitions. Investors should weigh the strong franchise, cross-selling model, and expected earnings tailwind against elevated credit costs, earnings volatility from equity investments, and sensitivity to interest-rate and economic conditions.
Mar 15, 2002
2000
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2000
Wells Fargo & Company's fiscal 2000 10-K (filed March 2001) describes a $272 billion diversified financial services company that ranks fourth among U.S. bank holding companies by assets. Net income rose slightly to $4,026 million from $4,012 million in 1999, and diluted EPS was $2.33 versus $2.29, up 2%. Results were shaped by the October 2000 First Security (FSCO) merger, which contributed a $220 million after-tax loss for the first three quarters, and by $110 million in after-tax integration costs in Q4. Excluding goodwill and nonqualifying core deposit intangible amortization, diluted 'cash' EPS was $2.70 and cash ROE was 30.89%, though GAAP ROE was a more modest 16.31%. Revenue growth was healthy but mixed in quality. Net interest income increased about 7% to $10,865 million, while the net interest margin compressed to 5.35% from 5.47% as strong loan growth (total loans up 21% to $161.1 billion) was funded with higher-cost borrowings. Noninterest income rose 11% to $8,843 million, but was inflated by $1.94 billion in net venture capital gains, including a $560 million gain on Siara Systems, and was offset by $722 million in net securities losses from a portfolio restructuring and $177 million of auto lease residual write-downs. Noninterest expense rose 11% to $11,830 million, driven by merger integration costs. The efficiency ratio deteriorated to 60.0% from 58.8%. Credit quality remained sound but showed some pressure. Net charge-offs were $1,219 million (0.84% of average loans, improved from 0.90%), while nonaccrual and restructured loans rose to $1,195 million (0.7% of loans) from $728 million. The allowance for loan losses was $3,719 million, or 2.31% of loans. Capital remained well above regulatory minimums, with a Tier 1 risk-based capital ratio of 7.29% (versus an 8% minimum for bank holding companies in the filing's own text, which it describes as the regulatory guideline of 4%) and total RBC of 10.43%. Tier 1 capital fell from 8.00% in 1999, reflecting the acquisition-related goodwill and growth. Management flagged rising-rate risk for 2001 given a negative one-year gap, while the 10-K itself is largely a wrapper that incorporates the financial statements and MD&A by reference from the 2000 Annual Report.
Mar 16, 2001
1999
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1999
Wells Fargo & Company's 1999 Form 10-K, filed March 17, 2000, describes a $218 billion diversified financial services company (seventh-largest U.S. bank holding company by assets) formed by the November 1998 merger of Norwest and the former Wells Fargo, accounted for as a pooling of interests. Results were strong in 1999: net income rose 92% to $3,747 million, diluted EPS was $2.23 (versus $1.17), and ROA and ROE were 1.85% and 17.66%. Much of the jump reflects the absence of 1998 Merger-related charges and a $1,008 million in net venture capital gains, including roughly $560 million from the Cerent Corporation investment, which management notes are inherently unpredictable. Excluding goodwill and nonqualifying core deposit intangible amortization, 'cash' EPS was $2.56 and cash ROE was 34.08%. Core banking metrics were mixed. Net interest margin compressed to 5.66% from 5.79%, driven by growth in lower-yielding securities and lower consumer loan yields, though management expects the Q4 1999 securities restructuring to help beginning in Q1 2000. Credit quality remained sound: net charge-offs fell to 0.94% of average loans from 1.52%, the allowance covered 2.65% of loans, and nonaccrual loans were 0.6% of total loans. Capital was solid, with a total risk-based capital ratio of 10.50% and Tier 1 of 8.07%, both above regulatory minimums. Deposits declined 3% to $132.7 billion while total loans grew 11% to $119.5 billion. Looking ahead, the filing flags the Gramm-Leach-Bliley Act (effective March 13, 2000), which lets the Company become a financial holding company and affiliate with securities and insurance firms. The Company elected this status, and the filing expects more competition as a result. The filing also notes a February 2000 board authorization to repurchase up to 81 million additional shares, and that Year 2000 remediation cost about $320 million with no significant issues reported as of January 2000.
Mar 17, 2000
1998-A
WELLS FARGO & COMPANY/MN Annual Report (Amendment), Year Ended Dec 31, 1998
This document is Amendment No. 1 (Form 10-K/A) to Wells Fargo & Company's Annual Report for the year ended December 31, 1998. It contains no financial statements, operating results, segment data, or management discussion. Its only purpose is to amend the cover page to address the Item 405 delinquent filer disclosure checkbox, which was left unchecked. The filing identifies the registrant as a Delaware corporation headquartered at 420 Montgomery Street, San Francisco, and notes that it is the former Norwest Corporation, which reflects the 1998 merger between Norwest and Wells Fargo. Because this amendment covers only the cover page, it cannot support an investment analysis of Wells Fargo's 1998 performance, including earnings, capital position, credit quality, or valuation. Investors would need the original 10-K for the fiscal year ended December 31, 1998, which contains the full financial statements and disclosures, along with the company's 1998 annual report to shareholders. For investors, the practical takeaway is limited to a clerical correction. The amendment does not indicate any material change to the company's financial condition or disclosures.
Mar 23, 1999
1997
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1997
Norwest Corporation (the filing names it as the registrant, reported under the WFC/MN ticker in this request) reported record 1997 net income of $1,351.0 million, up 17.1% from $1,153.9 million in 1996, with diluted EPS of $1.75 (up 13.6%) and return on realized common equity of 22.1%. Growth was driven by a 9.2% increase in tax-equivalent net interest income, a 15.5% rise in non-interest income (led by mortgage banking, trust, insurance and venture capital gains), and disciplined balance sheet expansion. Total assets reached $88.5 billion at year-end, and the company maintained strong capital, with a Tier 1 risk-based ratio of 9.09%, total capital of 11.01%, and a 6.63% leverage ratio, all banking subsidiaries rated well capitalized. The company's franchise breadth is a central theme. Norwest Mortgage is the largest U.S. mortgage banker by originations ($55.3 billion funded in 1997) and servicing ($205.8 billion portfolio). Norwest Financial, the consumer finance arm, operates through 1,447 stores across North America and the Caribbean, and it absorbed the Fidelity Acceptance subprime auto lender in 1997. Consumer credit quality is the key watch item: net charge-offs rose to 1.23% of average loans from 0.99% in 1996, the provision for credit losses increased 32.9% to $524.7 million, and Norwest Financial's charge-off ratio reached 3.72%. Non-performing assets remained modest at 0.4% of total assets. Management's outlook points to continued acquisition-driven growth, with six pending deals expected to close in 1998, and a Year 2000 remediation budget of $100 to $125 million over 1997 to 1999. Interest rate risk is modestly asymmetric, with a 100 basis point rate rise projected to reduce net income by about $18 million. Investors should weigh the strong earnings momentum and capital position against rising consumer credit costs and the reliance on acquisitions and fee income.
Feb 27, 1998
1996
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1996
Norwest Corporation (the filing entity; the input labels it Wells Fargo & Company/MN, WFC, which is its later name after the 1998 merger) reported record 1996 net income of $1,153.9 million, up 20.7% from $956.0 million in 1995, with fully diluted EPS of $3.07 versus $2.73. Return on realized common equity was 21.9% and return on assets 1.51%. Excluding a $19.0 million pre-tax SAIF recapitalization charge, operating earnings were $1,165.7 million, or $3.10 per diluted share. Growth was driven by a 13.0% rise in tax-equivalent net interest income, a 38.8% jump in non-interest income (boosted by $256.4 million of venture capital gains and a $286 million increase in mortgage banking revenue), and acquisitions, partly offset by a 20.9% increase in non-interest expenses to $4,089.7 million and higher credit losses. Credit costs rose: the provision for credit losses reached $394.7 million (1.02% of average loans, versus 0.88% in 1995), and net charge-offs were 0.99% of average loans. Consumer lending, particularly at Norwest Financial and Norwest Card Services, drove most of the deterioration. The allowance for credit losses stood at 2.64% of loans. Total assets grew to $80.2 billion, and the Tier 1 risk-based capital ratio was 8.63% with a total capital ratio of 10.42%, both above well-capitalized thresholds. The leverage ratio was 6.15%. The business mix is diversified across three segments: Banking (operating earnings of $776.4 million), Mortgage Banking (record $125.0 million, with $51.5 billion in fundings and a $179.7 billion servicing portfolio after the Prudential Home acquisition), and Norwest Financial (record $264.3 million, with 1,244 consumer finance stores). Management raised the quarterly dividend 11.1% to $0.30 per share in January 1997, consistent with a 30–35% payout policy, and six pending acquisitions with about $2.0 billion in total assets were expected to close in 1997.
Mar 4, 1997
1995
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1995
Norwest Corporation (the filing's registrant, which the request labels Wells Fargo & Company/MN, WFC; the two merged in 2000) reported record 1995 net income of $956.0 million, up 19.4% from $800.4 million in 1994, with fully diluted EPS of $2.73 (up 13.3%) and return on realized common equity of 22.3%. Growth was driven by a 16.6% rise in tax-equivalent net interest income to $3.30 billion, on 18.7% growth in average earning assets, and by the Mortgage Banking and Norwest Financial segments, which posted records of $104.9 million and $248.9 million. Non-interest income rose 13.8% to $1.87 billion, while non-interest expense rose 9.8% to $3.40 billion, so efficiency was broadly maintained even as acquisitions added costs. Credit costs rose meaningfully. The provision for credit losses increased 89% to $312.4 million, and net charge-offs were 0.86% of average loans versus 0.64% in 1994, driven mainly by consumer and credit card losses at Norwest Financial and Norwest Card Services. The allowance for credit losses stood at 2.54% of loans, and non-performing assets were modest at $297.9 million (0.4% of total assets). Management judged all banking subsidiaries well capitalized, though the consolidated Tier 1 risk-based ratio fell to 8.11% from 9.89% and the leverage ratio to 5.65% from 6.94%, largely reflecting intangibles from purchase acquisitions completed in 1995. The company remained acquisitive, completing 25 transactions in 1995 (including Island Finance from ITT, The Foothill Group and Directors Mortgage), with 11 more pending at year-end representing about $6.6 billion in assets. Total assets grew 21.6% to $72.1 billion, funded by a 42% increase in long-term debt to $13.7 billion. Investors should weigh the strong earnings momentum and acquisition-driven growth against rising credit losses, thinner capital ratios, and reliance on the mortgage and consumer finance cycle.
Mar 7, 1996
1994
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1994
Norwest Corporation (the filing names the registrant WELLS FARGO & COMPANY/MN in the request, but the document itself is Norwest Corporation's 1994 annual report, the Minneapolis-based regional bank holding company that later merged with Wells Fargo in 1998) reported record 1994 net income of $800.4 million, up 30.6% from $613.1 million in 1993. Primary earnings per share rose to $2.45 from $1.89, and return on realized common equity improved to 21.4% from 18.2%. Growth was driven by a 17.1% increase in banking-group tax-equivalent net interest income, a 25.9% rise in mortgage banking earnings to $70.8 million, and an 11.2% increase in consumer finance earnings at Norwest Financial to $222.5 million. Total assets reached $59.3 billion, up from $54.7 billion, and acquisitions (including First United Bank Group, accounted for as a pooling of interests) contributed to the expansion. Asset quality improved meaningfully. Net credit losses were 0.64% of average loans versus 0.67% in 1993, the allowance for credit losses stood at 2.42% of loans, and non-performing assets fell to $218.3 million from $319.8 million. Capital remained strong, with a Tier 1 ratio of 9.89%, a total capital ratio of 12.23%, and a leverage ratio of 6.94%, all well above regulatory minimums, and all subsidiary banks were classified as well capitalized. Key risks noted by management include a $560 million net unrealized loss on available-for-sale securities at year-end 1994 (after adoption of FAS 115), a one-year cumulative gap of negative $2.6 billion, and a pending $15 billion BarclaysAmerican servicing acquisition plus other acquisitions adding roughly $4.2 billion in assets. For investors, the filing points to a company with rising earnings, improving credit quality, a dividend payout ratio of about 31%, and an active acquisition strategy supported by a strong capital base. The principal watch items are mortgage banking sensitivity to interest rates (fundings fell from $33.7 billion to $24.9 billion) and the securities losses recorded in 1994.
Mar 16, 1995
1993-A
WELLS FARGO & COMPANY/MN Annual Report (Amendment), Year Ended Dec 31, 1993
This Form 10-K/A (Amendment No. 1) restates the 1993 consolidated financial statements of Norwest Corporation, Minneapolis-based regional bank holding company, to reflect its January 14, 1994 pooling-of-interests acquisition of First United Bank Group, Inc. (about $3.9 billion in assets). The filing covers financial statements only. Note that the document is filed under Norwest Corporation, not Wells Fargo; Norwest later merged with Wells Fargo and adopted its name, which is likely the source of the WFC ticker reference. On a restated basis, 1993 net income was $613.1 million, up from $394.0 million in 1992, or $470.0 million before the 1992 cumulative accounting charge (a 30% increase). Primary EPS was $1.89 versus $1.19 reported in 1992 ($1.44 before the charge), and the dividend rose to $0.64 from $0.54. Growth was driven by net interest income, which rose about 14% to $2,503.4 million, and by non-interest income, which rose about 24% to $1,585.0 million. Mortgage banking income nearly doubled to $472.3 million, and the servicing portfolio grew to $45.7 billion from $21.6 billion. Credit quality improved: the provision for credit losses fell to $158.2 million from $270.8 million, net charge-offs fell to $178.3 million, and non-performing assets declined to $269.0 million from $376.7 million. Non-interest expense rose about 19% to $3,050.4 million, reflecting acquisitions and higher personnel costs, and the effective tax rate increased to 30.3% from 24.9%. Total assets reached $54.7 billion (up about 9%), and total stockholders' equity was $3.76 billion, or roughly 6.9% of assets. Long-term debt more than doubled to $6.85 billion, reflecting heavy 1993 issuance of senior, subordinated and medium-term notes. Investors should note that the restated figures include First United's results, which posted a 1993 net loss of $40.5 million on a standalone basis, and that the acquisition added 17.8 million common shares.
May 13, 1994
1993
WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 1993
Norwest Corporation (the filing registrant, labeled in the request as Wells Fargo & Company/MN, WFC, though the document itself is Norwest's 1993 10-K) reported record 1993 net income of $653.6 million, up 79.5% from $364.1 million in 1992, with primary EPS of $2.13 versus $1.16 (or $1.42 excluding the 1992 FAS 106 accounting charge). Return on common equity rose to 20.9% and return on assets to 1.38%. Growth was driven by a sharp fall in the provision for credit losses to $140.1 million (from $266.7 million), a 13.9% rise in tax-equivalent net interest income to $2,408.7 million, and a 25.5% jump in non-interest income to $1,542.5 million, led by mortgage banking and venture capital gains. Those gains were partly offset by a 16.6% rise in non-interest expenses to $2,840.8 million, which reflected acquisition charges, writedowns, and higher salaries. Credit quality improved meaningfully. Non-performing assets and 90-day past-due loans fell to $285.5 million (0.6% of total assets) from $372.7 million, and net credit losses dropped to 0.70% of average loans from 1.00%. The allowance for credit losses stood at 2.76% of loans. Capital remained strong, with a Tier 1 risk-based ratio of 9.84%, a total capital ratio of 12.60%, and a leverage ratio of 6.60%, all above regulatory minimums. Total assets reached $50.8 billion, up from $46.7 billion, with growth supported by acquisitions, including the pending First United Bank Group deal (completed January 1994), and by mortgage banking, where fundings reached $33.7 billion and the servicing portfolio grew to $45.7 billion. The main risks flagged are the rising interest-rate sensitivity of the mortgage banking and consumer finance franchises, possible future FDIC premium increases or special assessments, and reliance on acquisitions for growth. Management also disclosed a dividend increase of 12.1% to $0.185 per quarter in January 1994 and a rating upgrade from S&P, which signal confidence in the earnings trajectory.
Mar 8, 1994