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Previous: WMX TECHNOLOGIES INC, 8-K, 1994-10-18 |
Next: LIBERTY U S GOVERNMENT MONEY MARKET TRUST, 485APOS, 1994-10-18 |
<PAGE>
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): October 18, 1994
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)
<PAGE>
Item 5: OTHER EVENTS
Attached is the Press Release announcing Wells Fargo & Company's
financial results for the quarter ended September 30, 1994. Final
financial statements with additional analyses will be filed as part of
the Company's Form 10-Q in November 1994.
Item 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
27 Financial Data Schedule
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 October 18, 1994.
WELLS FARGO & COMPANY
By: /s/ Frank A. Moeslein
-------------------------------
Frank A. Moeslein
Executive Vice President
and Controller
<PAGE>
FOR IMMEDIATE RELEASE
Tues., October 18, 1994
WELLS FARGO REPORTS THIRD QUARTER EARNINGS OF $217 MILLION;
PER SHARE EARNINGS $3.86 VS. $2.74 A YEAR AGO
Wells Fargo & Co. (NYSE:WFC) today reported net income of $217 million for
the third quarter of 1994, compared with $165 million for the third quarter of
1993, an increase of 32 percent. Per share earnings for the third quarter of
1994 were $3.86, compared with $2.74 in the third quarter of 1993, an increase
of 41 percent. A significant portion of the increase in net income from a year
ago was due to a lower loan loss provision. The percentage increase in per
share earnings was greater than the percentage increase in net income due to the
company's continuing stock repurchase program.
Return on average assets (ROA) was 1.65 percent and return on average
common equity (ROE) was 22.99 percent in the third quarter of 1994. In the
year-ago period, ROA was 1.29 percent and ROE was 17.75 percent.
"During the past quarter, credit quality has continued to improve," said
Chairman Carl E. Reichardt. "This is encouraging, but we are still closely
monitoring our underwriting standards in view of the highly competitive market
for new loan volume." Loan balances increased 4 percent since the end of the
third quarter of 1993, rising to $34.951 billion from $33.606 billion.
Net interest income on a taxable-equivalent basis was $656 million in the
third quarter of 1994, flat with $656 million a year ago. The company's net
interest margin for the third quarter of 1994 was 5.53 percent, down from 5.65
percent in the same quarter of 1993. A major portion of the decrease was due to
higher funding costs.
Noninterest income in the third quarter of 1994 was $307 million, compared
with $264 million in the same quarter of 1993, an increase of 16 percent. The
increase was primarily due to a $36 million accrual related to the disposition
of owned and leased premises that reduced noninterest income in the third
quarter of 1993. A $13 million increase in service charges on deposit accounts
and a $12 million increase in mutual fund and annuity sales fees also
contributed to the increase.
Noninterest expense in the third quarter of 1994 was $531 million, down 1
percent from $535 million in the same quarter of 1993. A decline in foreclosed
assets expense was largely offset by a higher level of incentive compensation.
The provision for loan losses in the third quarter of 1994 was $50 million,
compared with $120 million in the third quarter of 1993. Continued improvement
in the company's loan portfolio resulted in the reduction of the provision.
-more-
<PAGE>
-2-
Net charge-offs in the third quarter of 1994 totaled $60 million, or .69
percent of average total loans (annualized). The largest categories of net
charge-offs were credit card loans ($29 million) and real estate mortgage loans
other than 1-4 family ($16 million). For the third quarter of 1993, net charge-
offs totaled $121 million, or 1.42 percent of average total loans (annualized).
The largest categories of net charge-offs were real estate mortgage loans other
than 1-4 family ($42 million) and credit card loans ($38 million).
At September 30, 1994, the allowance for loan losses equaled 6.04 percent
of total loans, compared with 6.20 percent at June 30, 1994 and 6.32 percent at
September 30, 1993.
At September 30, 1994, total nonaccrual and restructured loans decreased to
$641 million (1.8 percent of total loans), of which an estimated 39 percent were
current as to payment of principal and interest. This compares with $717
million (2.1 percent of total loans) at June 30, 1994, of which an estimated 34
percent were current, and $1.702 billion (5.1 percent of total loans) at
September 30, 1993, of which an estimated 52 percent were current. Foreclosed
assets were $306 million at September 30, 1994, compared with $344 million at
June 30, 1994 and $357 million at September 30, 1993.
During the third quarter of 1994, an estimated $16 million of cash interest
payments were received from all loans that were on nonaccrual during the
quarter. Of that amount, $4 million was recognized as interest income and $12
million was used to reduce book loan balances. The average nonaccrual book loan
balance (net of charge-offs and interest applied to principal) was $662 million
for the quarter. The estimated average cash yield was 9.6 percent.
During the second quarter of 1994, an estimated $18 million of cash
interest payments were received from all loans that were on nonaccrual during
the quarter. Of that amount, $7 million was recognized as interest income and
$11 million was used to reduce book loan balances. The average nonaccrual book
loan balance (net of charge-offs and interest applied to principal) was $830
million for the quarter. The estimated average cash yield was 8.7 percent.
At September 30, 1994, the company's preliminary risk-based capital ratios
were 13.90 percent for total risk-based capital and 9.60 percent for Tier 1
risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and
4 percent, respectively. At June 30, 1994, these risk-based capital ratios were
14.56 percent and 10.06 percent, respectively. The decrease in total and Tier 1
risk-based capital ratios between June 30, 1994 and September 30, 1994 resulted
primarily from the repurchase of 1,465,125 shares of common stock during the
quarter (net of 312,473 shares issued under employee benefit and dividend
reinvestment programs). At September 30, 1993, the company's total risk-based
capital ratio was 14.60 percent and the Tier 1 risk-based capital ratio was 9.91
percent. The ratio of common equity to total assets at September 30, 1994 was
6.77 percent, compared with 6.96 percent at June 30, 1994 and 6.81 percent at
September 30, 1993.
###
<PAGE>
-3-
Wells Earnings
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA -- NEWS RELEASE
==================================================================================================================================
% Change
Quarter ended Sept. 30, 1994 from Nine months ended
----------------------------- ------------------- -------------------
SEPT. 30, June 30, Sept. 30, June 30, Sept. 30, SEPT. 30, Sept. 30, %
(in millions) 1994 1994 1993 1994 1993 1994 1993 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD
Net income $ 217 $ 206 $ 165 5 % 32 % $ 625 $ 422 48 %
Per common share
Net income $ 3.86 $ 3.57 $ 2.74 8 41 $ 10.83 $ 6.92 57
Dividends declared 1.00 1.00 .50 -- 100 3.00 1.50 100
Average common shares outstanding 53.6 54.8 55.7 (2) (4) 54.7 55.5 (1)
Profitability ratios (annualized)
Net income to average total assets (ROA) 1.65% 1.59% 1.29% 4 28 1.61% 1.11% 45
Net income applicable to common stock to
average common stockholders' equity (ROE) 22.99 21.67 17.75 6 30 21.91 15.61 40
Efficiency ratio (1) 55.1% 55.2% 58.2% -- (5) 55.3% 57.5% (4)
Average loans $ 34,325 $ 33,630 $ 33,682 2 2 $ 33,607 $ 34,692 (3)
Average assets 52,061 52,013 51,009 -- 2 51,768 50,946 2
Average core deposits 39,466 40,232 40,272 (2) (2) 40,025 40,288 (1)
Net interest margin 5.53% 5.56% 5.65% (1) (2) 5.55% 5.76% (4)
Average staff (full-time equivalent) 19,700 19,500 20,700 1 (5) 19,600 21,000 (7)
AT PERIOD END
Investment securities $ 12,260 $ 13,328 $ 12,796 (8) (4) $ 12,260 $ 12,796 (4)
Loans 34,951 34,172 33,606 2 4 34,951 33,606 4
Allowance for loan losses 2,110 2,120 2,123 -- (1) 2,110 2,123 (1)
Assets 52,164 52,287 51,579 -- 1 52,164 51,579 1
Core deposits 39,097 40,249 40,532 (3) (4) 39,097 40,532 (4)
Common stockholders' equity 3,533 3,637 3,513 (3) 1 3,533 3,513 1
Stockholders' equity 4,022 4,126 4,152 (3) (3) 4,022 4,152 (3)
Capital ratios
Common stockholders' equity to assets 6.77% 6.96% 6.81% (3) (1) 6.77% 6.81% (1)
Stockholders' equity to assets 7.71 7.89 8.05 (2) (4) 7.71 8.05 (4)
Risk-based capital (2)
Tier 1 capital 9.60 10.06 9.91 (5) (3) 9.60 9.91 (3)
Total capital 13.90 14.56 14.60 (5) (5) 13.90 14.60 (5)
Leverage (2) 7.00 7.20 7.21 (3) (3) 7.00 7.21 (3)
Book value per common share $ 66.93 $ 67.04 $ 62.98 -- 6 $ 66.93 $ 62.98 6
COMMON STOCK PRICE
High $160-3/8 $159-1/2 $127-3/8 1 26 $160-3/8 $127-3/8 26
Low 145-1/8 136-5/8 107-1/4 6 35 127-5/8 75-1/2 69
Period end 145-1/8 150-3/8 126-3/8 (3) 15 145-1/8 126-3/8 15
==================================================================================================================================
<FN>
(1) The efficiency ratio is defined as noninterest expense divided by the total of net interest income and noninterest income.
(2) The September 30, 1994 ratios are preliminary.
</TABLE>
<PAGE>
-4-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
=============================================================================================================================
Quarter Nine months
ended Sept. 30, ended Sept. 30,
------------------ % ------------------ %
(in millions) 1994 1993 Change 1994 1993 Change
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME
(1) Loans $ 768 $ 745 3 % $2,206 $2,322 (5)%
(2) Investment securities 185 174 6 567 494 15
Federal funds sold and securities purchased
(3) under resale agreements 1 6 (83) 6 15 (60)
(4) Other -- -- -- 2 -- --
----- ----- ------ ------
(5) Total interest income 954 925 3 2,781 2,831 (2)
----- ----- ------ ------
INTEREST EXPENSE
(6) Deposits 218 211 3 624 659 (5)
Federal funds purchased and securities sold
(7) under repurchase agreements 28 7 300 54 23 135
(8) Commercial paper and other short-term borrowings 2 2 -- 5 5 --
(9) Senior and subordinated debt 49 50 (2) 144 153 (6)
----- ----- ------ ------
(10) Total interest expense 297 270 10 827 840 (2)
----- ----- ------ ------
(11) NET INTEREST INCOME 657 655 -- 1,954 1,991 (2)
(12) Provision for loan losses 50 120 (58) 170 470 (64)
----- ----- ------ ------
Net interest income after
(13) provision for loan losses 607 535 13 1,784 1,521 17
----- ----- ------ ------
NONINTEREST INCOME
(14) Service charges on deposit accounts 119 106 12 355 311 14
(15) Fees and commissions 104 98 6 281 285 (1)
(16) Trust and investment services income 52 48 8 152 142 7
(17) Investment securities gains 1 -- -- 8 -- --
(18) Other 31 12 158 110 60 83
----- ----- ------ ------
(19) Total noninterest income 307 264 16 906 798 14
----- ----- ------ ------
NONINTEREST EXPENSE
(20) Salaries 213 193 10 598 574 4
(21) Employee benefits 53 63 (16) 161 172 (6)
(22) Net occupancy 53 56 (5) 161 166 (3)
(23) Equipment 40 36 11 120 104 15
(24) Federal deposit insurance 25 28 (11) 76 86 (12)
(25) Other 147 159 (8) 464 503 (8)
----- ----- ------ ------
(26) Total noninterest expense 531 535 (1) 1,580 1,605 (2)
----- ----- ------ ------
(27) INCOME BEFORE INCOME TAX EXPENSE 383 264 45 1,110 714 55
(28) Income tax expense 166 99 68 485 292 66
----- ----- ------ ------
(29) NET INCOME $ 217 $ 165 32 % $ 625 $ 422 48 %
===== ===== ===== ====== ====== ====
(30) NET INCOME APPLICABLE TO COMMON STOCK $ 207 $ 152 36 % $ 592 $ 384 54 %
===== ===== ===== ====== ====== ====
PER COMMON SHARE
(31) Net income $3.86 $2.74 41 % $10.83 $ 6.92 57 %
===== ===== ===== ====== ====== ====
(32) Dividends declared $1.00 $ .50 100 % $ 3.00 $ 1.50 100 %
===== ===== ===== ====== ====== ====
(33) Average common shares outstanding 53.6 55.7 (4)% 54.7 55.5 (1)%
===== ===== ===== ====== ====== ====
=============================================================================================================================
</TABLE>
<PAGE>
-5-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
=============================================================================================================================
% Change
Sept. 30, 1994 from
-------------------
SEPT. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
(in millions) 1994 1993 1993 1993 1993
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
(1) Cash and due from banks $ 2,828 $ 2,644 $ 2,490 7 % 14 %
Investment securities:
At cost (estimated fair value $8,821, $9,978
(2) and $12,959) 9,120 9,887 12,796 (8) (29)
(3) At fair value 3,140 3,171 -- (1) --
------- ------- -------
(4) Total investment securities 12,260 13,058 12,796 (6) (4)
Federal funds sold and securities
(5) purchased under resale agreements 36 1,668 584 (98) (94)
(6) Loans 34,951 33,099 33,606 6 4
(7) Allowance for loan losses 2,110 2,122 2,123 (1) (1)
------- ------- -------
(8) Net loans 32,841 30,977 31,483 6 4
------- ------- -------
(9) Due from customers on acceptances 81 70 83 16 (2)
(10) Accrued interest receivable 313 297 318 5 (2)
(11) Premises and equipment, net 883 898 908 (2) (3)
(12) Goodwill 450 477 486 (6) (7)
(13) Other assets 2,472 2,424 2,431 2 2
------- ------- -------
(14) Total assets $52,164 $52,513 $51,579 (1)% 1 %
======= ======= ======= === ===
LIABILITIES
(15) Noninterest-bearing deposits $ 9,447 $ 9,719 $ 9,096 (3)% 4 %
(16) Interest-bearing deposits 30,553 31,925 31,769 (4) (4)
------- ------- -------
(17) Total deposits 40,000 41,644 40,865 (4) (2)
Federal funds purchased and securities
(18) sold under repurchase agreements 3,729 1,079 1,136 246 228
(19) Commercial paper and other short-term borrowings 186 188 235 (1) (21)
(20) Acceptances outstanding 81 70 83 16 (2)
(21) Accrued interest payable 93 63 100 48 (7)
(22) Other liabilities 861 933 890 (8) (3)
(23) Senior debt 1,732 2,256 2,190 (23) (21)
(24) Subordinated debt 1,460 1,965 1,928 (26) (24)
------- ------- -------
(25) Total liabilities 48,142 48,198 47,427 -- 2
------- ------- -------
STOCKHOLDERS' EQUITY
(26) Preferred stock 489 639 639 (23) (23)
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 52,790,062 shares,
(27) 55,812,592 shares and 55,786,482 shares 264 279 279 (5) (5)
(28) Additional paid-in capital 1,084 551 545 97 99
(29) Retained earnings 2,256 2,829 2,693 (20) (16)
(30) Cumulative foreign currency translation adjustments (4) (4) (4) -- --
(31) Investment securities valuation allowance (67) 21 -- -- --
------- ------- -------
(32) Total stockholders' equity 4,022 4,315 4,152 (7) (3)
------- ------- -------
(33) Total liabilities and stockholders' equity $52,164 $52,513 $51,579 (1)% 1 %
======= ======= ======= === ===
=============================================================================================================================
</TABLE>
<PAGE>
-6-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
===================================================================================================
Nine months ended September 30,
------------------------------
(in millions) 1994 1993
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF PERIOD $4,315 $3,809
Net income 625 422
Common stock issued under employee benefit and
dividend reinvestment plans 36 44
Preferred stock redeemed (150) --
Common stock repurchased (518) (2)
Preferred stock dividends (33) (38)
Common stock dividends (165) (83)
Change in investment securities valuation allowance (88) --
------ ------
BALANCE, END OF PERIOD $4,022 $4,152
====== ======
===================================================================================================
</TABLE>
<TABLE>
<CAPTION>
LOANS
===================================================================================================
SEPTEMBER 30, December 31, September 30,
(in millions) 1994 1993 1993
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial (1) $ 7,511 $ 6,912 $ 6,982
Real estate 1-4 family first mortgage 8,883 7,458 6,913
Other real estate mortgage 8,040 8,286 9,096
Real estate construction 950 1,110 1,206
Consumer:
Real estate 1-4 family junior lien mortgage 3,342 3,583 3,793
Credit card 2,830 2,600 2,538
Other revolving credit and monthly payment 2,071 1,920 1,865
------- ------- -------
Total consumer 8,243 8,103 8,196
Lease financing 1,300 1,212 1,196
Foreign 24 18 17
------- ------- -------
Total loans $34,951 $33,099 $33,606
======= ======= =======
===================================================================================================
<FN>
(1) Includes loans to real estate developers of $371 million, $505 million and $506 million at
September 30, 1994, December 31, 1993 and September 30, 1993, respectively.
</TABLE>
<PAGE>
-7-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
==================================================================================================================================
Quarter ended Nine months ended
-------------------------------------- -----------------------
SEPT. 30, June 30, Sept. 30, SEPT. 30, Sept. 30,
(in millions) 1994 1994 1993 1994 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF PERIOD $2,120 $2,121 $2,124 $2,122 $2,067
Provision for loan losses 50 60 120 170 470
Loan charge-offs:
Commercial (1) (9) (5) (22) (39) (81)
Real estate 1-4 family first mortgage (5) (6) (5) (16) (17)
Other real estate mortgage (23) (22) (61) (58) (176)
Real estate construction (9) (1) (16) (14) (55)
Consumer:
Real estate 1-4 family junior lien mortgage (5) (7) (5) (20) (19)
Credit card (32) (35) (43) (107) (137)
Other revolving credit and monthly payment (7) (10) (9) (25) (32)
------ ------ ------ ------ ------
Total consumer (44) (52) (57) (152) (188)
Lease financing (3) (4) (4) (11) (13)
------ ------ ------ ------ ------
Total loan charge-offs (93) (90) (165) (290) (530)
------ ------ ------ ------ ------
Loan recoveries:
Commercial (2) 10 12 11 30 49
Real estate 1-4 family first mortgage 2 1 1 6 2
Other real estate mortgage 7 2 19 19 31
Real estate construction 5 2 1 12 1
Consumer:
Real estate 1-4 family junior lien mortgage 1 1 1 3 2
Credit card 3 7 5 15 15
Other revolving credit and monthly payment 3 2 3 8 9
------ ------ ------ ------ ------
Total consumer 7 10 9 26 26
Lease financing 2 2 3 15 7
------ ------ ------ ------ ------
Total loan recoveries 33 29 44 108 116
------ ------ ------ ------ ------
Total net loan charge-offs (60) (61) (121) (182) (414)
------ ------ ------ ------ ------
BALANCE, END OF PERIOD $2,110 $2,120 $2,123 $2,110 $2,123
====== ====== ====== ====== ======
Total net loan charge-offs as a percentage
of average total loans (annualized) .69% .73% 1.42% .72% 1.59%
====== ====== ====== ====== ======
Allowance as a percentage of total loans 6.04% 6.20% 6.32% 6.04% 6.32%
====== ====== ====== ====== ======
==================================================================================================================================
<FN>
(1) Includes charge-offs of loans to real estate developers of none, none and $1 million in the quarters ended September 30, 1994,
June 30, 1994 and September 30, 1993, respectively, and $10 million and $5 million in the nine months ended September 30, 1994
and 1993, respectively.
(2) Includes recoveries from loans to real estate developers of $2 million, none and $1 million in the quarters ended September 30,
1994, June 30, 1994 and September 30, 1993, and $2 million and $2 million in the nine months ended September 30, 1994 and 1993,
respectively.
</TABLE>
<PAGE>
-8-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
==================================================================================================================================
SEPT. 30, June 30, March 31, Dec. 31, Sept. 30,
(in millions) 1994 1994 1994 1993 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonaccrual loans:
Commercial (1) $109 $121 $165 $252 $441
Real estate 1-4 family first mortgage 76 88 90 99 96
Other real estate mortgage 334 410 413 578 850
Real estate construction 101 72 202 235 278
Consumer:
Real estate 1-4 family junior lien mortgage 14 19 22 27 25
Other revolving credit and monthly payment 3 2 3 3 6
---- ------ ------ ------ ------
Total nonaccrual loans 637 712 895 1,194 1,696
Restructured loans 4 5 5 6 6
---- ------ ------ ------ ------
Nonaccrual and restructured loans 641 717 900 1,200 1,702
As a percentage of total loans 1.8% 2.1% 2.7% 3.6% 5.1%
Foreclosed assets 306 344 354 348 357
Real estate investments (2) 12 11 11 15 15
---- ------ ------ ------ ------
Total nonaccrual and restructured loans
and other assets $959 $1,072 $1,265 $1,563 $2,074
==== ====== ====== ====== ======
==================================================================================================================================
<FN>
(1) Includes loans to real estate developers of $38 million, $41 million, $47 million, $91 million and $116 million at September 30,
1994, June 30, 1994, March 31, 1994, December 31, 1993 and September 30, 1993, respectively.
(2) Represents the amount of real estate investments (contingent interest loans accounted for as investments) that would be
classified as nonaccrual if such assets were loans. Real estate investments totaled $26 million, $28 million, $29 million, $34
million and $39 million at September 30, 1994, June 30, 1994, March 31, 1994, December 31, 1993 and September 30, 1993,
respectively.
</TABLE>
<TABLE>
<CAPTION>
QUARTERLY TREND OF CHANGES IN NONACCRUAL LOANS (1)
==================================================================================================================================
SEPT. 30, June 30, March 31, Dec. 31, Sept. 30,
(in millions) 1994 1994 1994 1993 1993
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $712 $895 $1,194 $1,696 $1,898
New loans placed on nonaccrual 93 133 52 113 195
Charge-offs (38) (27) (35) (55) (90)
Payments (71) (91) (121) (309) (188)
Transfers to foreclosed assets (14) (27) (37) (64) (32)
Loans returned to accrual (45) (172) (157) (188) (81)
Loans sold -- -- (3) -- (2)
Other additions (deductions) -- 1 2 1 (4)
---- ---- ---- ------ ------
BALANCE, END OF QUARTER $637 $712 $895 $1,194 $1,696
==== ==== ==== ====== ======
==================================================================================================================================
<FN>
(1) The September 30, 1994 amounts are preliminary.
</TABLE>
<PAGE>
-9-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONACCRUAL LOANS BY PERFORMANCE CATEGORY (1)
==============================================================================================================
Cumulative
cash
Book interest Contractual
principal Cumulative applied to principal
(in millions) balance charge-offs(6) principal(6) balance
- --------------------------------------------------------------------------------------------------------------
SEPTEMBER 30, 1994
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Contractually past due (2):
Payments not made (3):
90 days or more past due $113 $ 5 $ -- $ 118
Less than 90 days past due 2 -- -- 2
---- ---- ---- ------
115 5 -- 120
---- ---- ---- ------
Payments made (4):
90 days or more past due 205 79 22 306
Less than 90 days past due 69 38 23 130
---- ---- ---- ------
274 117 45 436
---- ---- ---- ------
Total past due 389 122 45 556
Contractually current (5) 248 131 60 439
---- ---- ---- ------
Total nonaccrual loans $637 $253 $105 $ 995
==== ==== ==== ======
- --------------------------------------------------------------------------------------------------------------
June 30, 1994
---------------------------------------------------------------------
Contractually past due (2):
Payments not made (3):
90 days or more past due $155 $ 4 $ -- $ 159
Less than 90 days past due 14 1 -- 15
---- ---- ---- ------
169 5 -- 174
---- ---- ---- ------
Payments made (4):
90 days or more past due 221 80 27 328
Less than 90 days past due 80 43 20 143
---- ---- ---- ------
301 123 47 471
---- ---- ---- ------
Total past due 470 128 47 645
Contractually current (5) 242 125 61 428
---- ---- ---- ------
Total nonaccrual loans $712 $253 $108 $1,073
==== ==== ==== ======
==============================================================================================================
<FN>
(1) There can be no assurance that individual borrowers will continue to perform at the level indicated or that
the performance characteristics will not change significantly. The September 30, 1994 amounts are
preliminary.
(2) Contractually past due is defined as a borrower whose loan principal or interest payment is 30 days or more
past due.
(3) Borrower has made no payments since being placed on nonaccrual.
(4) Borrower has made some payments since being placed on nonaccrual. Approximately $215 million and $239
million of these loans had some payments made on them during the third and second quarters of 1994,
respectively.
(5) Contractually current is defined as a loan for which principal and interest are being paid in accordance
with the terms of the loan. All of the contractually current loans were placed on nonaccrual due to
uncertainty of receiving full timely collection of interest or principal.
(6) Cumulative amounts recorded since inception of the loan.
</TABLE>
<PAGE>
-10-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
==================================================================================================================================
Quarter Nine months
ended September 30, ended September 30,
------------------ % ------------------ %
(in millions) 1994 1993 Change 1994 1993 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Service charges on deposit accounts $119 $106 12 % $355 $311 14 %
Fees and commissions:
Credit card membership and other credit card fees 16 16 -- 47 51 (8)
Mutual fund and annuity sales fees 23 11 109 44 34 29
Debit and credit card merchant fees 15 22 (32) 40 63 (37)
Charges and fees on loans 11 13 (15) 32 36 (11)
Shared ATM network fees 11 10 10 31 28 11
All other 28 26 8 87 73 19
---- ---- ---- ----
Total fees and commissions 104 98 6 281 285 (1)
Trust and investment services income:
Asset management and custody fees 30 31 (3) 93 94 (1)
Mutual fund management fees 12 10 20 34 27 26
All other 10 7 43 25 21 19
---- ---- ---- ----
Total trust and investment services income 52 48 8 152 142 7
Investment securities gains 1 -- -- 8 -- --
Income from equity investments accounted for by the:
Equity method 8 7 14 24 20 20
Cost method -- 9 (100) 17 22 (23)
Check printing charges 10 9 11 30 28 7
Gains (losses) from dispositions of operations -- (36) (100) 10 (35) --
Real estate investment gains (losses) -- -- -- 3 (7) --
Gains on sale of loans 1 4 (75) 3 10 (70)
All other 12 19 (37) 23 22 5
---- ---- ---- ----
Total $307 $264 16 % $906 $798 14 %
==== ==== ==== ==== ==== ====
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
==================================================================================================================================
Quarter Nine months
ended September 30, ended September 30,
------------------ % ------------------ %
(in millions) 1994 1993 Change 1994 1993 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries $213 $193 10 % $ 598 $ 574 4 %
Employee benefits 53 63 (16) 161 172 (6)
Net occupancy 53 56 (5) 161 166 (3)
Equipment 40 36 11 120 104 15
Federal deposit insurance 25 28 (11) 76 86 (12)
Contract services 27 15 80 71 41 73
Certain identifiable intangibles 15 18 (17) 47 60 (22)
Advertising and promotion 11 10 10 44 44 --
Operating losses 16 10 60 41 36 14
Telecommunications 12 11 9 35 33 6
Postage 11 11 -- 33 33 --
Goodwill 9 9 -- 27 28 (4)
Outside professional services 6 10 (40) 25 31 (19)
Check printing 8 8 -- 23 25 (8)
Stationery and supplies 7 8 (13) 22 23 (4)
Travel and entertainment 7 7 -- 22 20 10
Escrow and collection agency fees 5 6 (17) 15 19 (21)
Security 5 5 -- 15 14 7
Outside data processing 2 5 (60) 7 13 (46)
Foreclosed assets (8) 15 -- (2) 50 --
All other 14 11 27 39 33 18
---- ---- ------ ------
Total $531 $535 (1)% $1,580 $1,605 (2)%
==== ==== ==== ====== ====== ====
==================================================================================================================================
</TABLE>
<PAGE>
-11-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
=============================================================================================================================
Quarter ended September 30,
-----------------------------------------------------------------
1994 1993
----------------------------- -----------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNING ASSETS
Investment securities:
At cost:
(1) U.S. Treasury securities $ 2,382 4.66% $ 28 $ 2,323 4.91% $ 29
Securities of U.S. government agencies
(2) and corporations 5,808 6.00 87 8,092 6.31 128
(3) Obligations of states and political subdivisions 16 -- -- 20 -- --
(4) Private collateralized mortgage obligations 1,358 5.74 19 1,265 4.93 16
(5) Other securities 117 5.52 2 173 5.47 2
------- ---- ------- ----
(6) Total investment securities at cost 9,681 5.63 136 11,873 5.88 175
At fair value (2):
(7) U.S. Treasury securities 293 6.65 5 -- -- --
Securities of U.S. government agencies
(8) and corporations 1,503 5.78 23 -- -- --
(9) Private collateralized mortgage obligations 1,245 6.00 20 -- -- --
(10) Other securities 67 14.43 1 -- -- --
------- ---- ------- ----
(11) Total investment securities at fair value 3,108 6.06 49 -- -- --
------- ---- ------- ----
(12) Total investment securities 12,789 5.74 185 11,873 5.88 175
Federal funds sold and securities purchased
(13) under resale agreements 80 4.71 1 804 3.17 6
Loans:
(14) Commercial 7,218 9.20 167 6,917 9.10 159
(15) Real estate 1-4 family first mortgage 8,754 6.80 149 6,726 7.67 129
(16) Other real estate mortgage 7,982 8.74 176 9,357 8.24 194
(17) Real estate construction 969 9.88 24 1,234 8.08 25
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,342 7.84 66 3,866 6.91 67
(19) Credit card 2,744 15.46 106 2,543 15.53 98
(20) Other revolving credit and monthly payment 2,010 9.75 49 1,846 9.51 44
------- ---- ------- ----
(21) Total consumer 8,096 10.90 221 8,255 10.15 209
(22) Lease financing 1,277 9.15 29 1,190 9.81 29
(23) Foreign 29 -- -- 3 -- --
------- ---- ------- ----
(24) Total loans 34,325 8.89 766 33,682 8.82 745
(25) Other 53 5.94 1 -- -- --
------- ---- ------- ----
(26) Total earning assets $47,247 8.02 953 $46,359 7.96 926
======= ---- ======= ----
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 4,585 .98 11 $ 4,604 1.08 12
(28) Savings deposits 2,553 1.99 13 2,668 2.08 14
(29) Market rate savings 16,314 2.42 99 16,837 2.23 95
(30) Savings certificates 7,000 4.27 75 7,671 4.33 84
(31) Certificates of deposit 206 7.67 4 211 7.83 4
(32) Other time deposits 92 6.56 2 107 6.65 2
(33) Deposits in foreign offices 1,203 4.52 14 8 -- --
------- ---- ------- ----
(34) Total interest-bearing deposits 31,953 2.71 218 32,106 2.61 211
Federal funds purchased and securities sold
(35) under repurchase agreements 2,427 4.50 28 1,052 2.79 7
(36) Commercial paper and other short-term borrowings 210 4.31 2 243 3.00 2
(37) Senior debt 1,912 5.65 27 2,135 4.57 24
(38) Subordinated debt 1,456 6.07 22 1,921 5.26 26
------- ---- ------- ----
(39) Total interest-bearing liabilities 37,958 3.11 297 37,457 2.86 270
(40) Portion of noninterest-bearing funding sources 9,289 -- -- 8,902 -- --
------- ---- ------- ----
(41) Total funding sources $47,247 2.49 297 $46,359 2.31 270
======= ---- ======= ----
Net interest margin and net interest income on
(42) a taxable-equivalent basis (3) 5.53% $656 5.65% $656
===== ==== ===== ====
NONINTEREST-EARNING ASSETS
(43) Cash and due from banks $ 2,622 $ 2,405
(44) Other 2,192 2,245
------- -------
Total noninterest-earning assets $ 4,814 $ 4,650
======= =======
NONINTEREST-BEARING FUNDING SOURCES
(45) Deposits $ 9,014 $ 8,492
(46) Other liabilities 1,031 1,004
(47) Preferred stockholders' equity 489 639
(48) Common stockholders' equity 3,569 3,417
Noninterest-bearing funding sources used to
(49) fund earning assets (9,289) (8,902)
------- -------
(50) Net noninterest-bearing funding sources $ 4,814 $ 4,650
======= =======
(51) TOTAL ASSETS $52,061 $51,009
======= =======
=============================================================================================================================
<FN>
(1) The average prime rate of Wells Fargo Bank was 7.50% and 6.00% for the quarters ended September 30, 1994 and 1993,
respectively. The average three-month London Interbank Offered Rate (LIBOR) was 4.97% and 3.26% for the same quarters,
respectively.
(2) Yields are based on amortized cost balances, which totaled $3,203 million for the quarter ended September 30, 1994.
(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 the quarters ended September 30,
1994 and 1993.
</TABLE>
<PAGE>
-12-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
=============================================================================================================================
Nine months ended September 30,
-----------------------------------------------------------------
1994 1993
----------------------------- -----------------------------
INTEREST Interest
AVERAGE YIELDS/ INCOME/ Average Yields/ income/
(in millions) BALANCE RATES EXPENSE balance rates expense
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNING ASSETS
Investment securities:
At cost:
(1) U.S. Treasury securities $ 2,563 4.80% $ 92 $ 2,256 5.09% $ 86
Securities of U.S. government agencies
(2) and corporations 6,041 6.05 274 7,861 6.43 379
(3) Obligations of states and political subdivisions 18 7.17 1 23 7.44 1
(4) Private collateralized mortgage obligations 1,216 5.75 52 571 5.12 22
(5) Other securities 117 5.49 5 164 5.37 7
------- ------ ------- ------
(6) Total investment securities at cost 9,955 5.69 424 10,875 6.07 495
At fair value (2):
(7) U.S. Treasury securities 131 6.70 7 -- -- --
Securities of U.S. government agencies
(8) and corporations 1,591 5.87 72 -- -- --
(9) Private collateralized mortgage obligations 1,255 6.12 60 -- -- --
(10) Other securities 74 14.10 4 -- -- --
------- ------ ------- ------
(11) Total investment securities at fair value 3,051 6.12 143 -- -- --
------- ------ ------- ------
(12) Total investment securities 13,006 5.79 567 10,875 6.07 495
Federal funds sold and securities purchased
(13) under resale agreements 237 3.41 6 642 3.20 15
Loans:
(14) Commercial 6,902 9.13 472 7,305 9.29 508
(15) Real estate 1-4 family first mortgage 8,332 6.82 426 6,665 8.13 406
(16) Other real estate mortgage 8,076 8.55 517 9,682 8.05 583
(17) Real estate construction 979 9.03 66 1,347 8.61 87
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,406 7.57 193 3,993 7.03 210
(19) Credit card 2,633 15.36 304 2,614 15.65 307
(20) Other revolving credit and monthly payment 1,989 9.43 140 1,902 9.44 134
------- ------ ------- ------
(21) Total consumer 8,028 10.58 637 8,509 10.22 651
(22) Lease financing 1,256 9.24 87 1,183 9.91 88
(23) Foreign 34 4.78 1 1 -- --
------- ------ ------- ------
(24) Total loans 33,607 8.76 2,206 34,692 8.94 2,323
(25) Other 52 5.98 2 -- -- --
------- ------ ------- ------
(26) Total earning assets $46,902 7.90 2,781 $46,209 8.19 2,833
======= ------ ======= ------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 4,658 .98 34 $ 4,608 1.25 43
(28) Savings deposits 2,572 1.99 38 2,792 2.25 47
(29) Market rate savings 16,812 2.33 293 16,416 2.31 283
(30) Savings certificates 7,021 4.19 220 8,164 4.39 268
(31) Certificates of deposit 205 7.67 12 222 8.02 13
(32) Other time deposits 102 6.61 5 114 5.31 5
(33) Deposits in foreign offices 684 4.31 22 8 -- --
------- ------ ------- ------
(34) Total interest-bearing deposits 32,054 2.60 624 32,324 2.73 659
Federal funds purchased and securities sold
(35) under repurchase agreements 1,798 3.99 54 1,092 2.79 23
(36) Commercial paper and other short-term borrowings 179 3.78 5 209 2.90 5
(37) Senior debt 2,048 5.05 77 2,171 4.84 78
(38) Subordinated debt 1,527 5.83 67 1,925 5.17 75
------- ------ ------- ------
(39) Total interest-bearing liabilities 37,606 2.94 827 37,721 2.98 840
(40) Portion of noninterest-bearing funding sources 9,296 -- -- 8,488 -- --
------- ------ ------- ------
(41) Total funding sources $46,902 2.35 827 $46,209 2.43 840
======= ------ ======= ------
Net interest margin and net interest income on
(42) a taxable-equivalent basis (3) 5.55% $1,954 5.76% $1,993
===== ====== ===== ======
NONINTEREST-EARNING ASSETS
(43) Cash and due from banks $ 2,598 $ 2,426
(44) Other 2,268 2,311
------- -------
Total noninterest-earning assets $ 4,866 $ 4,737
======= =======
NONINTEREST-BEARING FUNDING SOURCES
(45) Deposits $ 8,962 $ 8,308
(46) Other liabilities 1,055 984
(47) Preferred stockholders' equity 532 639
(48) Common stockholders' equity 3,613 3,294
Noninterest-bearing funding sources used to
(49) fund earning assets (9,296) (8,488)
------- -------
(50) Net noninterest-bearing funding sources $ 4,866 $ 4,737
======= =======
(51) TOTAL ASSETS $51,768 $50,946
======= =======
=============================================================================================================================
<FN>
(1) The average prime rate of Wells Fargo Bank was 6.81% and 6.00% for the nine months ended September 30, 1994 and 1993,
respectively. The average three-month London Interbank Offered Rate (LIBOR) was 4.34% and 3.25% for the nine months ended
September 30, 1994 and 1993, respectively.
(2) Yields are based on amortized cost balances, which totaled $3,107 million for the nine months ended September 30, 1994.
(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 the nine months ended September 30,
1994 and 1993.
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
8K DATED OCTOBER 18, 1994 FOR THE PERIOD ENDED SEPTEMBER 30, 1994 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 2,828
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 36
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 3,140
<INVESTMENTS-CARRYING> 9,120
<INVESTMENTS-MARKET> 8,821
<LOANS> 34,951
<ALLOWANCE> 2,110
<TOTAL-ASSETS> 52,164
<DEPOSITS> 40,000
<SHORT-TERM> 3,915
<LIABILITIES-OTHER> 954
<LONG-TERM> 3,192
<COMMON> 264
0
489
<OTHER-SE> 3,269
<TOTAL-LIABILITIES-AND-EQUITY> 52,164
<INTEREST-LOAN> 2,206
<INTEREST-INVEST> 567
<INTEREST-OTHER> 8
<INTEREST-TOTAL> 2,781
<INTEREST-DEPOSIT> 624
<INTEREST-EXPENSE> 827
<INTEREST-INCOME-NET> 1,954
<LOAN-LOSSES> 170
<SECURITIES-GAINS> 8
<EXPENSE-OTHER> 1,580
<INCOME-PRETAX> 1,110
<INCOME-PRE-EXTRAORDINARY> 625
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 625
<EPS-PRIMARY> 10.83
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.55
<LOANS-NON> 637
<LOANS-PAST> 0
<LOANS-TROUBLED> 4
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,122
<CHARGE-OFFS> 290
<RECOVERIES> 108
<ALLOWANCE-CLOSE> 2,110
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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