What was the impact of the merger with First Security Corporation on Wells Fargo's reporting?

The merger with First Security Corporation, completed on October 25, 2000, was accounted for using the pooling-of-interests method. This means that the financial statements and disclosures in this report present the combined results of both companies as if the merger had been effective for all periods presented.

How is Wells Fargo regulated, and what are the implications for investors?

Wells Fargo is regulated as a bank holding company and a financial holding company by the Board of Governors of the Federal Reserve System (FRB) and other federal and state agencies. These regulations govern its activities, capital requirements, and dividend policies. While designed to protect depositors and the banking system, these regulations can influence the company's ability to diversify, acquire other institutions, and pay dividends, which could indirectly affect shareholder returns.

What is the status of Wells Fargo's loan portfolio and its allowance for loan losses?

As of December 31, 2001, Wells Fargo's total loans amounted to approximately $172.5 billion. The allowance for loan losses was $3,761 million, representing 2.18% of total loans. While net charge-offs were significant in 2001, the company considered its allowance for loan losses adequate to cover inherent losses. The allocated portion of the allowance increased, driven by loan growth and changes in risk assumptions, while the unallocated portion decreased.

What are Wells Fargo's primary business segments?

Wells Fargo operates through three principal segments for management reporting: Community Banking, Wholesale Banking, and Wells Fargo Financial.

WELLS FARGO & COMPANY/MN 10-K FY2001 Annual Report

Summary

Wells Fargo & Company/MN (WFC) filed its 2001 Form 10-K on March 14, 2002, providing a comprehensive overview of its financial condition and operations for the year ended December 30, 2001. The company, a diversified financial services provider, highlights its recent merger with First Security Corporation in October 2000, which was accounted for using the pooling-of-interests method, presenting combined results for all periods. Wells Fargo operates across three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. The filing also details the company's extensive regulatory environment as a bank and financial holding company, managed by the Federal Reserve Board and other agencies, emphasizing compliance with capital requirements and deposit insurance provisions. Key financial indicators and operational details are referenced from the 2001 Annual Report to Stockholders. The company emphasizes its strategy of growth through acquisitions and its competitive landscape within the financial services industry. Investors should note the information regarding the company's loan portfolio, including its composition, maturities, and allowance for loan losses, as well as its real estate holdings and property portfolio. The report also lists numerous exhibits related to executive compensation plans and corporate governance documents.

Key Highlights

1Wells Fargo & Company merged with First Security Corporation in October 2000, with results presented on a combined basis for all periods.

2The company operates through three main segments: Community Banking, Wholesale Banking, and Wells Fargo Financial.

3Wells Fargo is a diversified financial services company subject to significant regulation by the Federal Reserve Board and other agencies, holding both bank holding company and financial holding company status.

4The company continues to explore strategic acquisitions as a key growth driver.

5The allowance for loan losses stood at $3,761 million (2.18% of total loans) as of December 31, 2001, with a decrease in the unallocated component and an increase in the allocated component reflecting portfolio risk and growth.

6The loan portfolio is diverse, with significant holdings in commercial loans, first mortgage loans, and other real estate mortgages, with no single loan concentration exceeding 10% of total loans.

7The company owns and leases a substantial number of properties, including corporate headquarters, regional offices, and over 5,400 banking and mortgage stores.

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