10-KPeriod: FY2009

WELLS FARGO & COMPANY/MN Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:WFCWFC-PDWFC-PCWFC-PYWFC-PAWFC-PLWFCNPWFC-PZ

Summary

Wells Fargo & Company's (WFC) 2010 10-K filing provides a comprehensive overview of its business, financial condition, and risk factors as of December 31, 2009. The report highlights the significant merger with Wachovia Corporation completed on December 31, 2008, which substantially increased the company's asset base to $1.2 trillion and expanded its retail banking presence. As of year-end 2009, Wells Fargo ranked as the fourth-largest bank holding company in the United States by assets, with Wells Fargo Bank, N.A. and Wachovia Bank, N.A. operating as its principal subsidiaries. The filing details the company's diversified financial services operations across three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage, and Retirement. It also emphasizes the highly competitive nature of the financial services industry and the extensive regulatory framework governing bank holding companies and their subsidiaries, including capital requirements, deposit insurance assessments, and dividend restrictions. Notably, Wells Fargo successfully redeemed its $25 billion investment from the U.S. Treasury's TARP Capital Purchase Program in December 2009, a significant step towards normalizing its capital structure.

Financial Highlights

38 data points
Beta

Net Income

$12.28B

EPS (Diluted)

$1.75

Total Assets

$1.24T

Free Cash Flow

$28.61B

Financial Statements
Beta
Interest Expense$9.95B
Net Income$12.28B
EPS (Basic)$1.76
EPS (Diluted)$1.75
Shares Outstanding (Basic)4.55B
Shares Outstanding (Diluted)4.56B

Key Highlights

  • 1Completed the transformative merger with Wachovia Corporation on December 31, 2008, significantly increasing assets to $1.2 trillion and expanding its geographic reach.
  • 2Ranked as the fourth-largest bank holding company in the U.S. by assets ($1.2 trillion) as of December 31, 2009, with two principal banking subsidiaries: Wells Fargo Bank, N.A. and Wachovia Bank, N.A.
  • 3Operates through three primary segments: Community Banking, Wholesale Banking, and Wealth, Brokerage, and Retirement.
  • 4Successfully redeemed its entire $25 billion investment from the U.S. Treasury's TARP Capital Purchase Program in December 2009.
  • 5Maintains a strong regulatory capital position, with both the company and its subsidiary banks classified as 'well capitalized' as of December 31, 2009.
  • 6The company's common stock is listed on the NYSE under the ticker symbol 'WFC'.
  • 7Filed under the Bank Holding Company Act and subject to extensive regulation by the Federal Reserve Board, OCC, FDIC, and SEC.

Frequently Asked Questions

The most significant event was the completion of the merger with Wachovia Corporation on December 31, 2008. This acquisition substantially increased Wells Fargo's asset base, expanded its retail banking footprint, and integrated a major financial institution into its operations.

Wells Fargo participated in the U.S. Treasury's TARP Capital Purchase Program, issuing preferred stock. A key development reported is the successful redemption of this $25 billion investment from the U.S. Treasury in December 2009, which was a significant step in deleveraging and normalizing the company's capital structure. The company also met and exceeded capital requirements mandated by the Supervisory Capital Assessment Program (SCAP).

Wells Fargo's business is organized into three operating segments for management reporting: Community Banking, Wholesale Banking, and Wealth, Brokerage, and Retirement.

Wells Fargo operates in a highly regulated environment. As a bank holding company, it is subject to oversight from the Board of Governors of the Federal Reserve System (Federal Reserve Board), the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Securities and Exchange Commission (SEC), among other state and federal agencies. Regulations cover capital requirements, dividend payments, deposit insurance, and other operational aspects.