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<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): July 18, 1995
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 hereto as Exhibit 99 is a Press Release announcing Wells
Fargo & Company's financial results for the quarter ended June 30,
1995. Final financial statements with additional analyses will be
filed as part of the Company's Form 10-Q in August 1995.
Item 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
27 Financial Data Schedule
99 Copy of the Press Release announcing Wells Fargo & Company's
financial results for the quarter ended June 30, 1995.
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 July 18, 1995.
WELLS FARGO & COMPANY
By: FRANK A. MOESLEIN
------------------------------------
Frank A. Moeslein
Executive Vice President and Controller
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 8K DATED
JULY 18, 1995 FOR THE PERIOD ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 2,848
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 375
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,473
<INVESTMENTS-CARRYING> 7,662
<INVESTMENTS-MARKET> 7,602
<LOANS> 33,896
<ALLOWANCE> 1,947
<TOTAL-ASSETS> 50,931
<DEPOSITS> 38,784
<SHORT-TERM> 4,225
<LIABILITIES-OTHER> 1,022
<LONG-TERM> 2,967
<COMMON> 242
0
489
<OTHER-SE> 3,131
<TOTAL-LIABILITIES-AND-EQUITY> 50,931
<INTEREST-LOAN> 1,681
<INTEREST-INVEST> 317
<INTEREST-OTHER> 2
<INTEREST-TOTAL> 2,056
<INTEREST-DEPOSIT> 496
<INTEREST-EXPENSE> 732
<INTEREST-INCOME-NET> 1,324
<LOAN-LOSSES> 0
<SECURITIES-GAINS> (15)
<EXPENSE-OTHER> 1,096
<INCOME-PRETAX> 779
<INCOME-PRE-EXTRAORDINARY> 465
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 465
<EPS-PRIMARY> 8.92
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.63
<LOANS-NON> 631
<LOANS-PAST> 0
<LOANS-TROUBLED> 13
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,082
<CHARGE-OFFS> 181
<RECOVERIES> 46
<ALLOWANCE-CLOSE> 1,947
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE>
FOR IMMEDIATE RELEASE
Tues., July 18, 1995
WELLS FARGO REPORTS SECOND QUARTER PER SHARE EARNINGS OF $4.51 VS. $3.57 A
YEAR AGO
Wells Fargo & Co. (NYSE:WFC) today reported second quarter 1995 per share
earnings of $4.51, compared with $3.57 in the second quarter of 1994, an
increase of 26 percent. Net income for the second quarter of 1995 was $232
million, compared with $206 million for the second quarter of 1994, an increase
of 13 percent. 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.
Second quarter 1995 results were higher than a year ago, primarily due to a
zero loan loss provision compared with $60 million in the second quarter of
1994.
Return on average assets (ROA) was 1.81 percent and return on average
common equity (ROE) was 26.71 percent in the second quarter of 1995. In the
year-ago period, ROA was 1.59 percent and ROE was 21.67 percent.
"The company continues to build a foundation for future revenue growth and
improvements in efficiency," said Chairman Paul Hazen.
Net interest income on a taxable-equivalent basis was $659 million in the
second quarter of 1995, relatively unchanged from $656 million a year ago. The
company's net interest margin for the second quarter of 1995 was 5.66 percent,
compared with 5.56 percent in the same quarter of 1994. The increase in the
margin was partly attributable to the sale of real estate 1-4 family first
mortgage loans from the mortgage loans held for sale category.
-more-
<PAGE>
2/WF Earnings
Noninterest income in the second quarter of 1995 was $310 million, compared
with $299 million in the same quarter of 1994.
Noninterest expense in the second quarter of 1995 was $560 million, up 6
percent from $526 million in the same quarter of 1994. A major portion of the
increase was due to higher contract services related to new product development
and marketing initiatives.
Net charge-offs in the second quarter of 1995 totaled $70 million, or .84
percent of average loans (annualized). The largest category of net charge-offs
was credit card loans ($43 million), reflecting a 34% increase in the portfolio
since the second quarter of 1994. For the second quarter of 1994, net charge-
offs totaled $61 million, or .73 percent of average loans (annualized). The
largest category of net charge-offs in that period was credit card loans ($28
million).
At June 30, 1995, the allowance for loan losses equaled 5.74 percent of
total loans (excluding mortgage loans held for sale), compared with 6.16 percent
at March 31, 1995 and 6.20 percent at June 30, 1994.
At June 30, 1995, total nonaccrual and restructured loans were $644
million, compared with $581 million at March 31, 1995 and $717 million at
June 30, 1994. Foreclosed assets were $224 million at June 30, 1995, compared
with $273 million at March 31, 1995 and $344 million at June 30, 1994.
At June 30, 1995, the company's preliminary risk-based capital ratios were
12.50 percent for total risk-based capital and 8.60 percent for Tier 1 risk-
based capital, exceeding the minimum regulatory guidelines of 8 percent and 4
percent, respectively. At March 31, 1995, these risk-based capital ratios were
12.78 percent and 8.73 percent, respectively. The decrease in total and Tier 1
risk-based capital ratios between March 31, 1995 and June 30, 1995 resulted
primarily from the repurchase of 1,222,228 shares of common stock during the
quarter. At June 30, 1994, the company's total risk-based capital ratio was
14.56 percent and the Tier 1 risk-based capital ratio was 10.06 percent. The
ratio of common equity to total assets at June 30, 1995 was 6.62 percent,
compared with 6.40 percent at March 31, 1995 and 6.96 percent at June 30, 1994.
###
<PAGE>
-3-
Wells Earnings
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA -- NEWS RELEASE
<TABLE>
<CAPTION>
==================================================================================================================================
% Change
Quarter ended June 30, 1995 from Six months ended
------------------------------ ------------------- -------------------
JUNE 30, Mar. 31, June 30, Mar. 31, June 30, JUNE 30, June 30, %
(in millions) 1995 1995 1994 1995 1994 1995 1994 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD
Net income $ 232 $ 233 $ 206 --% 13% $ 465 $ 408 14%
Per common share
Net income $ 4.51 $ 4.41 $ 3.57 2 26 $ 8.92 $ 6.98 28
Dividends declared 1.15 1.15 1.00 -- 15 2.30 2.00 15
Average common shares outstanding 49.1 50.5 54.8 (3) (10) 49.8 55.2 (10)
Profitability ratios (annualized)
Net income to average total assets (ROA) 1.81% 1.80% 1.59% 1 14 1.80% 1.59% 13
Net income applicable to common stock to
average common stockholders' equity (ROE) 26.71 26.89 21.67 (1) 23 26.80 21.38 25
Efficiency ratio (1) 57.8% 59.1% 55.2% (2) 5 58.5% 55.3% 6
Average loans $ 33,202 $ 36,334 $ 33,630 (9) (1) $ 34,759 $ 33,242 5
Average assets 51,491 52,390 52,013 (2) (1) 51,938 51,619 1
Average core deposits 36,226 36,699 40,232 (1) (10) 36,462 40,309 (10)
Net interest margin 5.66% 5.59% 5.56% 1 2 5.63% 5.56% 1
Average staff (full-time equivalent) 19,403 19,493 19,532 -- (1) 19,448 19,483 --
AT PERIOD END
Investment securities $ 10,135 $ 10,576 $ 13,328 (4) (24) $ 10,135 $ 13,328 (24)
Loans (2) 33,896 32,737 34,172 4 (1) 33,896 34,172 (1)
Allowance for loan losses 1,947 2,017 2,120 (3) (8) 1,947 2,120 (8)
Assets 50,931 52,324 52,287 (3) (3) 50,931 52,287 (3)
Core deposits 37,026 36,975 40,249 -- (8) 37,026 40,249 (8)
Common stockholders' equity 3,373 3,351 3,637 1 (7) 3,373 3,637 (7)
Stockholders' equity 3,862 3,840 4,126 1 (6) 3,862 4,126 (6)
Capital ratios
Common stockholders' equity to assets 6.62% 6.40% 6.96% 3 (5) 6.62% 6.96% (5)
Stockholders' equity to assets 7.58 7.34 7.89 3 (4) 7.58 7.89 (4)
Risk-based capital (3)
Tier 1 capital 8.60 8.73 10.06 (1) (15) 8.60 10.06 (15)
Total capital 12.50 12.78 14.56 (2) (14) 12.50 14.56 (14)
Leverage (3) 6.70 6.61 7.20 1 (7) 6.70 7.20 (7)
Book value per common share $ 69.59 $ 67.59 $ 67.04 3 4 $ 69.59 $ 67.04 4
COMMON STOCK PRICE
High $185-7/8 $160-5/8 $159-1/2 16 17 $185-7/8 $159-1/2 17
Low 157 143-3/8 136-5/8 10 15 143-3/8 127-5/8 12
Period end 180-1/4 156-3/8 150-3/8 15 20 180-1/4 150-3/8 20
==================================================================================================================================
<FN>
(1) The efficiency ratio is defined as noninterest expense divided by the total of net interest income and noninterest income.
(2) Loans exclude mortgage loans held for sale of $1,336 million and $3,940 million at June 30, 1995 and March 31, 1995,
respectively.
(3) The June 30, 1995 ratios are preliminary.
</TABLE>
<PAGE>
-4-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
=============================================================================================================================
Quarter Six months
ended June 30, ended June 30,
------------------ % ------------------ %
(in millions) 1995 1994 Change 1995 1994 Change
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME
Federal funds sold and securities purchased
(1) under resale agreements $ 1 $ 1 --% $ 2 $ 5 (60)%
(2) Investment securities 152 197 (23) 317 382 (17)
(3) Mortgage loans held for sale 54 -- -- 54 -- --
(4) Loans 823 733 12 1,681 1,438 17
(5) Other 1 1 -- 2 2 --
------ ----- ------ ------
(6) Total interest income 1,031 932 11 2,056 1,827 13
------ ----- ------ ------
INTEREST EXPENSE
(7) Deposits 254 210 21 496 406 22
Federal funds purchased and securities sold
(8) under repurchase agreements 59 18 228 115 26 342
(9) Commercial paper and other short-term borrowings 9 2 350 19 3 533
(10) Senior and subordinated debt 50 47 6 102 95 7
------ ----- ------ ------
(11) Total interest expense 372 277 34 732 530 38
------ ----- ------ ------
(12) NET INTEREST INCOME 659 655 1 1,324 1,297 2
(13) Provision for loan losses -- 60 (100) -- 120 (100)
------ ----- ------ ------
Net interest income after
(14) provision for loan losses 659 595 11 1,324 1,177 12
------ ----- ------ ------
NONINTEREST INCOME
(15) Service charges on deposit accounts 119 119 -- 236 236 --
(16) Fees and commissions 103 92 12 204 177 15
(17) Trust and investment services income 57 50 14 112 100 12
(18) Investment securities gains (losses) -- 3 (100) (15) 7 --
(19) Other 31 35 (11) 14 79 (82)
------ ----- ------ ------
(20) Total noninterest income 310 299 4 551 599 (8)
------ ----- ------ ------
NONINTEREST EXPENSE
(21) Salaries 177 165 7 349 328 6
(22) Incentive compensation 33 34 (3) 60 62 (3)
(23) Employee benefits 48 49 (2) 101 103 (2)
(24) Net occupancy 53 53 -- 106 108 (2)
(25) Equipment 45 41 10 92 80 15
(26) Federal deposit insurance 24 25 (4) 47 51 (8)
(27) Other 180 159 13 341 317 8
------ ----- ------ ------
(28) Total noninterest expense 560 526 6 1,096 1,049 4
------ ----- ------ ------
INCOME BEFORE INCOME TAX
(29) EXPENSE 409 368 11 779 727 7
(30) Income tax expense 177 162 9 314 319 (2)
====== ===== ====== ======
(31) NET INCOME $ 232 $ 206 13% $ 465 $ 408 14%
====== ===== ==== ====== ====== ====
NET INCOME APPLICABLE TO
(32) COMMON STOCK $ 222 $ 195 14% $ 444 $ 385 15%
====== ===== ==== ====== ====== ====
PER COMMON SHARE
(33) Net income $ 4.51 $3.57 26% $ 8.92 $ 6.98 28%
====== ===== ==== ====== ====== ====
(34) Dividends declared $ 1.15 $1.00 15% $ 2.30 $ 2.00 15%
====== ===== ==== ====== ====== ====
(35) Average common shares outstanding 49.1 54.8 (10)% 49.8 55.2 (10)%
====== ===== ==== ====== ====== ====
=============================================================================================================================
</TABLE>
<PAGE>
-5-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
=================================================================================================================
% Change
June 30, 1995 from
-------------------
JUNE 30, Dec. 31, June 30, Dec. 31, June 30,
(in millions) 1995 1994 1994 1994 1994
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
(1) Cash and due from banks $ 2,848 $ 2,974 $ 2,653 (4)% 7%
Federal funds sold and securities
(2) purchased under resale agreements 375 260 55 44 582
Investment securities:
At cost (estimated fair value $7,602, $8,185
(3) and $9,996) 7,662 8,619 10,261 (11) (25)
(4) At fair value 2,473 2,989 3,067 (17) (19)
------- ------- -------
(5) Total investment securities 10,135 11,608 13,328 (13) (24)
(6) Mortgage loans held for sale 1,336 -- -- -- --
(7) Loans 33,896 36,347 34,172 (7) (1)
(8) Allowance for loan losses 1,947 2,082 2,120 (6) (8)
------- ------- -------
(9) Net loans 31,949 34,265 32,052 (7) --
------- ------- -------
(10) Due from customers on acceptances 71 77 69 (8) 3
(11) Accrued interest receivable 300 328 316 (9) (5)
(12) Premises and equipment, net 863 886 886 (3) (3)
(13) Goodwill 399 416 459 (4) (13)
(14) Other assets 2,655 2,560 2,469 4 8
------- ------- -------
(15) Total assets $50,931 $53,374 $52,287 (5)% (3)%
======= ======= ======= ==== ====
LIABILITIES
(16) Noninterest-bearing deposits $ 9,600 $10,145 $ 9,475 (5)% 1%
(17) Interest-bearing deposits 29,184 32,187 31,730 (9) (8)
------- ------- -------
(18) Total deposits 38,784 42,332 41,205 (8) (6)
Federal funds purchased and securities
(19) sold under repurchase agreements 3,693 3,022 2,331 22 58
(20) Commercial paper and other short-term borrowings 532 189 195 181 173
(21) Acceptances outstanding 71 77 69 (8) 3
(22) Accrued interest payable 89 60 68 48 31
(23) Other liabilities 933 930 848 -- 10
(24) Senior debt 1,485 1,393 1,990 7 (25)
(25) Subordinated debt 1,482 1,460 1,455 2 2
------- ------- -------
(26) Total liabilities 47,069 49,463 48,161 (5) (2)
======= ======= =======
STOCKHOLDERS' EQUITY
(27) Preferred stock 489 489 489 -- --
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 48,473,804 shares,
(28) 51,251,648 shares and 54,255,187 shares 242 256 271 (5) (11)
(29) Additional paid-in capital 407 871 330 (53) 23
(30) Retained earnings 2,737 2,409 3,103 14 (12)
(31) Cumulative foreign currency translation adjustments (4) (4) (4) -- --
(32) Investment securities valuation allowance (9) (110) (63) (92) (86)
------- ------- -------
(33) Total stockholders' equity 3,862 3,911 4,126 (1) (6)
------- ------- -------
(34) Total liabilities and stockholders' equity $50,931 $53,374 $52,287 (5)% (3)%
======= ======= ======= ==== ====
======================================================================================================================
</TABLE>
<PAGE>
-6-
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
========================================================================================================
Six months ended June 30,
------------------------
(in millions) 1995 1994
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF PERIOD $3,911 $4,315
Net income 465 408
Common stock issued under employee benefit and
dividend reinvestment plans 60 13
Preferred stock redeemed -- (150)
Common stock repurchased (538) (242)
Preferred stock dividends (21) (23)
Common stock dividends (116) (111)
Change in investment securities valuation allowance 101 (84)
------ ------
BALANCE, END OF PERIOD $3,862 $4,126
====== ======
========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
LOANS
========================================================================================================
JUNE 30, December 31, June 30,
(in millions) 1995 1994 1994
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial (1) $ 8,872 $ 8,162 $ 7,184
Real estate 1-4 family first mortgage (2) 5,051 9,050 8,681
Other real estate mortgage 7,973 8,079 7,965
Real estate construction 1,110 1,013 985
Consumer:
Real estate 1-4 family junior lien mortgage 3,373 3,332 3,355
Credit card 3,628 3,125 2,706
Other revolving credit and monthly payment 2,409 2,229 1,998
------- ------- -------
Total consumer 9,410 8,686 8,059
Lease financing 1,451 1,330 1,267
Foreign 29 27 31
------- ------- -------
Total loans $33,896 $36,347 $34,172
======= ======= =======
========================================================================================================
<FN>
(1) Includes loans to real estate developers of $467 million, $525 million and $415 million at June 30,
1995, December 31, 1994 and June 30, 1994, respectively.
(2) Excludes mortgage loans held for sale at June 30, 1995 of $1,336 million.
</TABLE>
<PAGE>
-7-
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
==================================================================================================================================
Quarter ended Six months ended
------------------------------------- ----------------------
JUNE 30, March 31, June 30, JUNE 30, June 30,
(in millions) 1995 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF PERIOD $2,017 $2,082 $2,121 $2,082 $2,122
Provision for loan losses -- -- 60 -- 120
Loan charge-offs:
Commercial (1) (10) (7) (5) (17) (30)
Real estate 1-4 family first mortgage (3) (3) (6) (6) (11)
Other real estate mortgage (12) (22) (22) (34) (35)
Real estate construction (1) (2) (1) (4) (5)
Consumer:
Real estate 1-4 family junior lien mortgage (4) (3) (7) (7) (15)
Credit card (46) (38) (35) (83) (75)
Other revolving credit and monthly payment (13) (10) (10) (23) (18)
------ ------ ------ ------ ------
Total consumer (63) (51) (52) (113) (108)
Lease financing (3) (4) (4) (7) (8)
------ ------ ------ ------ ------
Total loan charge-offs (92) (89) (90) (181) (197)
------ ------ ------ ------ ------
Loan recoveries:
Commercial (2) 6 9 12 14 20
Real estate 1-4 family first mortgage 1 1 1 2 4
Other real estate mortgage 7 6 2 13 12
Real estate construction -- -- 2 1 7
Consumer:
Real estate 1-4 family junior lien mortgage 1 1 1 2 2
Credit card 3 3 7 6 12
Other revolving credit and monthly payment 3 2 2 5 5
------ ------ ------ ------ ------
Total consumer 7 6 10 13 19
Lease financing 1 2 2 3 13
------ ------ ------ ------ ------
Total loan recoveries 22 24 29 46 75
------ ------ ------ ------ ------
Total net loan charge-offs (70) (65) (61) (135) (122)
------ ------ ------ ------ ------
BALANCE, END OF PERIOD $1,947 $2,017 $2,120 $1,947 $2,120
====== ====== ====== ====== ======
Total net loan charge-offs as a percentage
of average loans (annualized) .84% .72% .73% .78% .74%
====== ====== ====== ====== ======
Allowance as a percentage of total loans (3) 5.74% 6.16% 6.20% 5.74% 6.20%
====== ====== ====== ====== ======
==================================================================================================================================
<FN>
(1) There were no charge-offs of loans to real estate developers in the quarters ended June 30, 1995, March 31, 1995 and June 30,
1994, respectively, and none and $10 million in the six months ended June 30, 1995 and 1994, respectively.
(2) Includes recoveries from loans to real estate developers of $1 million, none and none for the quarters ended June 30, 1995,
March 31, 1995 and June 30, 1994, respectively, and $1 million and none in the six months ended June 30, 1995 and 1994,
respectively.
(3) Total loans exclude mortgage loans held for sale at June 30, 1995 and March 31, 1995.
</TABLE>
<PAGE>
-8-
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
<TABLE>
<CAPTION>
===========================================================================================================================
JUNE 30, March 31, Dec. 31, Sept. 30, June 30,
(in millions) 1995 1995 1994 1994 1994
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonaccrual loans:
Commercial (1) $121 $ 79 $ 88 $109 $ 121
Real estate 1-4 family first mortgage 64 71 81 76 88
Other real estate mortgage 373 324 328 334 410
Real estate construction 58 77 58 101 72
Consumer:
Real estate 1-4 family junior lien mortgage 12 12 11 14 19
Other revolving credit and monthly payment 3 3 1 3 2
---- ---- ---- ---- ------
Total nonaccrual loans 631 566 567 637 712
Restructured loans 13 15 15 4 5
---- ---- ---- ---- ------
Nonaccrual and restructured loans 644 581 582 641 717
As a percentage of total loans (2) 1.9% 1.8% 1.6% 1.8% 2.1%
Foreclosed assets 224 273 272 306 344
Real estate investments (3) 14 17 17 12 11
---- ---- ---- ---- ------
Total nonaccrual and restructured loans
and other assets $882 $871 $871 $959 $1,072
==== ==== ==== ==== ======
==========================================================================================================================
<FN>
(1) Includes loans to real estate developers of $27 million, $28 million, $30 million, $38 million and $41 million at
June 30, 1995, March 31, 1995, December 31, 1994, September 30, 1994 and June 30, 1994, respectively.
(2) Total loans exclude mortgage loans held for sale at June 30, 1995 and March 31, 1995.
(3) 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 $75 million, $64 million,
$54 million, $26 million and $28 million at June 30, 1995, March 31, 1995, December 31, 1994, September 30, 1994 and
June 30, 1994, respectively.
</TABLE>
QUARTERLY TREND OF CHANGES IN NONACCRUAL LOANS (1)
<TABLE>
<CAPTION>
==========================================================================================================================
JUNE 30, March 31, Dec. 31, Sept. 30, June 30,
(in millions) 1995 1995 1994 1994 1994
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $566 $567 $637 $712 $ 895
New loans placed on nonaccrual 173 127 71 93 124
Loans purchased 1 13 25 -- 9
Charge-offs (18) (28) (25) (38) (27)
Payments (49) (55) (61) (71) (91)
Transfers to foreclosed assets (19) (36) (18) (14) (27)
Loans returned to accrual (23) (24) (62) (45) (172)
Other additions -- 2 -- -- 1
---- ---- ---- ---- ------
BALANCE, END OF QUARTER $631 $566 $567 $637 $ 712
==== ==== ==== ==== ======
==========================================================================================================================
<FN>
(1) The June 30, 1995 amounts are preliminary.
</TABLE>
<PAGE>
-9-
Wells Fargo & Company and Subsidiaries
NONACCRUAL LOANS BY PERFORMANCE CATEGORY (1)
<TABLE>
<CAPTION>
====================================================================================================
Cumulative
cash
Book interest Contractual
principal Cumulative applied to principal
(in millions) balance charge-offs(6) principal(6) balance
- ----------------------------------------------------------------------------------------------------
JUNE 30, 1995
-------------------------------------------------------
<S> <C> <C> <C> <C>
Contractually past due (2):
Payments not made (3):
90 days or more past due $117 $ 3 $ -- $120
Less than 90 days past due 1 -- -- 1
---- ---- ---- ----
118 3 -- 121
---- ---- ---- ----
Payments made (4):
90 days or more past due 215 62 33 310
Less than 90 days past due 83 58 22 163
---- ---- ---- ----
298 120 55 473
---- ---- ---- ----
Total past due 416 123 55 594
Contractually current (5) 215 67 51 333
---- ---- ---- ----
Total nonaccrual loans $631 $190 $106 $927
==== ==== ==== ====
====================================================================================================
<CAPTION>
March 31, 1995
-------------------------------------------------------
<S> <C> <C> <C> <C>
Contractually past due (2):
Payments not made (3):
90 days or more past due $152 $ 3 $ -- $155
Less than 90 days past due 15 -- -- 15
---- ---- ---- ----
167 3 -- 170
---- ---- ---- ----
Payments made (4):
90 days or more past due 152 53 27 232
Less than 90 days past due 80 12 13 105
---- ---- ---- ----
232 65 40 337
---- ---- ---- ----
Total past due 399 68 40 507
Contractually current (5) 167 100 52 319
---- ---- ---- ----
Total nonaccrual loans $566 $168 $ 92 $826
==== ==== ==== ====
====================================================================================================
<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 June 30,
1995 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 $259 million
and $194 million of these loans had some payments made on them during the second and first
quarters of 1995, 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 or is less than 30 days past due. 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-
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
<TABLE>
<CAPTION>
================================================================================================================================
Quarter Six months
ended June 30, ended June 30,
----------------- % ----------------- %
(in millions) 1995 1994 Change 1995 1994 Change
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Service charges on deposit accounts $119 $119 -- % $236 $236 -- %
Fees and commissions:
Credit card membership and other credit card fees 23 15 53 42 31 35
Debit and credit card merchant fees 17 13 31 30 25 20
Mortgage loan servicing fees 15 5 200 25 8 213
Shared ATM network fees 13 11 18 24 20 20
Charges and fees on loans 12 11 9 23 21 10
Mutual fund and annuity sales fees 8 12 (33) 18 21 (14)
All other 15 25 (40) 42 51 (18)
---- ---- ---- ----
Total fees and commissions 103 92 12 204 177 15
Trust and investment services income:
Asset management and custody fees 32 32 -- 63 63 --
Mutual fund management fees 17 11 55 31 22 41
All other 8 7 14 18 15 20
---- ---- ---- ----
Total trust and investment services income 57 50 14 112 100 12
Investment securities gains (losses) -- 3 (100) (15) 7 --
Income from equity investments accounted for by the:
Cost method 13 9 44 32 17 88
Equity method 12 7 71 20 16 25
Check printing charges 9 10 (10) 20 20 --
Gains (losses) from dispositions of operations (9) -- -- (9) 10 --
Gains (losses) on sales of loans 1 1 -- (66) 2 --
All other 5 8 (38) 17 14 21
---- ---- ---- ----
Total $310 $299 4% $551 $599 (8)%
==== ==== ==== ==== ==== ====
================================================================================================================================
</TABLE>
NONINTEREST EXPENSE
<TABLE>
<CAPTION>
================================================================================================================================
Quarter Six months
ended June 30, ended June 30,
----------------- % ----------------- %
(in millions) 1995 1994 Change 1995 1994 Change
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries $177 $165 7% $349 $328 6%
Incentive compensation 33 34 (3) 60 62 (3)
Employee benefits 48 49 (2) 101 103 (2)
Net occupancy 53 53 -- 106 108 (2)
Equipment 45 41 10 92 80 15
Contract services 38 25 52 64 44 45
Federal deposit insurance 24 25 (4) 47 51 (8)
Advertising and promotion 17 18 (6) 31 33 (6)
Certain identifiable intangibles 14 16 (13) 28 32 (13)
Telecommunications 15 12 25 28 23 22
Operating losses 11 11 -- 27 25 8
Postage 14 11 27 26 22 18
Outside professional services 11 10 10 20 19 5
Stationery and supplies 9 8 13 18 15 20
Goodwill 9 9 -- 17 18 (6)
Travel and entertainment 10 8 25 17 15 13
Check printing 6 7 (14) 12 15 (20)
Security 5 5 -- 10 10 --
Escrow and collection agency fees 4 5 (20) 8 10 (20)
Outside data processing 3 2 50 5 5 --
Foreclosed assets 2 -- -- (2) 6 --
All other 12 12 -- 32 25 28
---- ---- ---- ----
Total $560 $526 6% $1,096 $1,049 4%
==== ==== ==== ====== ====== ====
================================================================================================================================
</TABLE>
<PAGE>
-11-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
<TABLE>
<CAPTION>
=============================================================================================================================
Quarter ended June 30,
-------------------------------------------------------------------
1995 1994
------------------------------- -------------------------------
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
Federal funds sold and securities purchased
(1) under resale agreements $ 66 6.18% $ 1 $ 60 4.03% $ 1
Investment securities:
At cost:
(2) U.S. Treasury securities 1,469 4.85 18 2,734 4.84 33
Securities of U.S. government agencies
(3) and corporations 4,996 6.04 75 6,155 6.02 93
(4) Private collateralized mortgage obligations 1,249 5.85 18 1,337 6.14 21
(5) Other securities 156 6.85 3 136 5.73 2
------- ----- ------- ----
(6) Total investment securities at cost 7,870 5.80 114 10,362 5.72 149
At fair value (2):
(7) U.S. Treasury securities 426 6.70 7 97 6.84 2
Securities of U.S. government agencies
(8) and corporations 998 5.38 14 1,594 5.79 24
(9) Private collateralized mortgage obligations 956 6.41 16 1,230 6.91 22
(10) Other securities 62 14.42 1 72 13.77 1
------- ----- ------- ----
(11) Total investment securities at fair value 2,442 6.16 38 2,993 6.40 49
------- ----- ------- ----
(12) Total investment securities 10,312 5.89 152 13,355 5.87 198
(13) Mortgage loans held for sale (2) 2,884 7.33 54 -- -- --
Loans:
(14) Commercial 8,436 10.01 211 6,854 9.26 157
(15) Real estate 1-4 family first mortgage 5,063 7.42 94 8,463 6.76 143
(16) Other real estate mortgage 8,058 9.49 190 8,089 8.52 172
(17) Real estate construction 1,070 10.20 27 910 8.92 20
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,356 8.55 72 3,385 7.59 64
(19) Credit card 3,433 15.62 134 2,614 15.27 100
(20) Other revolving credit and monthly payment 2,353 10.56 62 2,016 9.27 47
------- ----- ------- ----
(21) Total consumer 9,142 11.73 268 8,015 10.52 211
(22) Lease financing 1,405 9.22 32 1,261 9.21 29
(23) Foreign 28 7.98 1 38 4.72 1
------- ----- ------- ----
(24) Total loans 33,202 9.93 823 33,630 8.74 733
(25) Other 61 5.30 1 52 6.00 1
------- ----- ------- ----
(26) Total earning assets $46,525 8.86 1,031 $47,097 7.91 933
======= ----- ======= ----
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 4,210 1.00 11 $ 4,679 .98 11
(28) Savings deposits 2,197 1.99 11 2,600 1.99 13
(29) Market rate savings 12,973 2.63 85 16,974 2.34 99
(30) Savings certificates 7,948 5.27 104 7,022 4.18 73
(31) Certificates of deposit 399 7.13 7 202 7.58 4
(32) Other time deposits 43 8.02 1 108 6.70 2
(33) Deposits in foreign offices 2,309 6.06 35 780 4.06 8
------- ----- ------- ----
(34) Total interest-bearing deposits 30,079 3.38 254 32,365 2.60 210
Federal funds purchased and securities sold
(35) under repurchase agreements 3,924 6.02 59 1,876 3.86 18
(36) Commercial paper and other short-term borrowings 621 5.95 9 176 3.78 2
(37) Senior debt 1,511 6.85 26 2,034 5.05 26
(38) Subordinated debt 1,484 6.54 24 1,449 5.87 21
------- ----- ------- ----
(39) Total interest-bearing liabilities 37,619 3.96 372 37,900 2.93 277
(40) Portion of noninterest-bearing funding sources 8,906 -- -- 9,197 -- --
------- ----- ------- ----
(41) Total funding sources $46,525 3.20 372 $47,097 2.35 277
======= ----- ======= ====
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(42) A TAXABLE-EQUIVALENT BASIS (3) 5.66% $ 659 5.56% $656
==== ===== ==== ====
NONINTEREST-EARNING ASSETS
(43) Cash and due from banks $ 2,602 $ 2,613
(44) Other 2,364 2,303
------- -------
Total noninterest-earning assets $ 4,966 $ 4,916
======= =======
NONINTEREST-BEARING FUNDING SOURCES
(45) Deposits $ 8,898 $ 8,957
(46) Other liabilities 1,157 1,049
(47) Preferred stockholders' equity 489 489
(48) Common stockholders' equity 3,328 3,618
Noninterest-bearing funding sources used to
(49) fund earning assets (8,906) (9,197)
------- -------
(50) Net noninterest-bearing funding sources $ 4,966 $ 4,916
======= =======
(51) TOTAL ASSETS $51,491 $52,013
======= =======
=============================================================================================================================
<FN>
(1) The average prime rate of Wells Fargo Bank was 9.00% and 6.90% for the quarters ended June 30, 1995 and 1994,
respectively. The average three-month London Interbank Offered Rate (LIBOR) was 6.12% and 4.46% for the same
quarters, respectively.
(2) Yields are based on amortized cost balances. The balances for investment securities at fair value totaled
$2,492 million and $3,079 million for the quarters ended June 30, 1995 and 1994, respectively. The balance for
mortgage loans held for sale totaled $2,925 million for the quarter ended June 30, 1995.
(3) Includes taxable-equivalent adjustments that primarily relate to income on certain loans and securities that is
exempt from federal and applicable state income taxes. The federal statutory tax rate was 35% for the quarters ended
June 30, 1995 and 1994.
</TABLE>
<PAGE>
-12-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
<TABLE>
<CAPTION>
=============================================================================================================================
Six months ended June 30,
-------------------------------------------------------------------
1995 1994
------------------------------- -------------------------------
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
Federal funds sold and securities purchased
(1) under resale agreements $ 57 5.93% $ 2 $ 316 3.24% $ 5
Investment securities:
At cost:
(2) U.S. Treasury securities 1,557 4.84 38 2,655 4.86 64
Securities of U.S. government agencies
(3) and corporations 5,114 6.03 154 6,159 6.08 187
(4) Private collateralized mortgage obligations 1,267 5.89 37 1,144 5.76 33
(5) Other securities 160 6.76 5 136 5.71 4
------- ------ ------- ------
(6) Total investment securities at cost 8,098 5.79 234 10,094 5.71 288
At fair value (2):
(7) U.S. Treasury securities 406 6.70 14 49 6.84 2
Securities of U.S. government agencies
(8) and corporations 1,104 5.59 32 1,637 5.91 49
(9) Private collateralized mortgage obligations 1,022 6.38 34 1,259 6.18 40
(10) Other securities 64 14.49 3 78 13.94 3
------- ------ ------- ------
(11) Total investment securities at fair value 2,596 6.21 83 3,023 6.15 94
------- ------ ------- ------
(12) Total investment securities 10,694 5.90 317 13,117 5.82 382
(13) Mortgage loans held for sale (2) 1,450 7.29 54 -- -- --
Loans:
(14) Commercial 8,246 9.89 405 6,742 9.09 303
(15) Real estate 1-4 family first mortgage 7,042 7.24 255 8,117 6.84 278
(16) Other real estate mortgage 8,090 9.54 383 8,124 8.45 341
(17) Real estate construction 1,045 10.18 53 984 8.60 42
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,339 8.60 143 3,439 7.43 128
(19) Credit card 3,280 15.69 257 2,577 15.31 197
(20) Other revolving credit and monthly payment 2,311 10.49 121 1,978 9.27 91
------- ------ ------- ------
(21) Total consumer 8,930 11.70 521 7,994 10.43 416
(22) Lease financing 1,378 9.19 63 1,245 9.29 58
(23) Foreign 28 7.46 1 36 4.54 1
------- ------ ------- ------
(24) Total loans 34,759 9.72 1,681 33,242 8.69 1,439
(25) Other 60 5.44 2 52 6.00 2
------- ------ ------- ------
(26) Total earning assets $47,020 8.76 2,056 $46,727 7.84 1,828
======= ------ ======= ------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 4,287 1.00 21 $ 4,695 .98 23
(28) Savings deposits 2,268 1.99 22 2,583 1.99 26
(29) Market rate savings 13,375 2.65 175 17,065 2.28 193
(30) Savings certificates 7,649 5.09 193 7,032 4.16 145
(31) Certificates of deposit 347 7.22 13 205 7.67 8
(32) Other time deposits 53 -- (2) 106 6.63 3
(33) Deposits in foreign offices 2,486 5.96 74 420 4.01 8
------- ------ ------- ------
(34) Total interest-bearing deposits 30,465 3.28 496 32,106 2.55 406
Federal funds purchased and securities sold
(35) under repurchase agreements 3,905 5.92 115 1,478 3.57 26
(36) Commercial paper and other short-term borrowings 654 5.92 19 163 3.42 3
(37) Senior debt 1,575 6.89 54 2,118 4.77 50
(38) Subordinated debt 1,477 6.57 48 1,563 5.72 45
------- ------ ------- ------
(39) Total interest-bearing liabilities 38,076 3.87 732 37,428 2.85 530
(40) Portion of noninterest-bearing funding sources 8,944 -- -- 9,299 -- --
------- ------ ------- ------
(41) Total funding sources $47,020 3.13 732 $46,727 2.28 530
======= ------ ======= ------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(42) A TAXABLE-EQUIVALENT BASIS (3) 5.63% $1,324 5.56% $1,298
==== ====== ==== ======
NONINTEREST-EARNING ASSETS
(43) Cash and due from banks $ 2,595 $ 2,585
(44) Other 2,323 2,307
------- -------
Total noninterest-earning assets $ 4,918 $ 4,892
======= =======
NONINTEREST-BEARING FUNDING SOURCES
(45) Deposits $ 8,883 $ 8,934
(46) Other liabilities 1,149 1,067
(47) Preferred stockholders' equity 489 554
(48) Common stockholders' equity 3,341 3,636
Noninterest-bearing funding sources used to
(49) fund earning assets (8,944) (9,299)
------- -------
(50) Net noninterest-bearing funding sources $ 4,918 $ 4,892
======= =======
(51) TOTAL ASSETS $51,938 $51,619
======= =======
=============================================================================================================================
<FN>
(1) The average prime rate of Wells Fargo Bank was 8.91% and 6.46% for the six months ended June 30, 1995 and 1994,
respectively. The average three-month London Interbank Offered Rate (LIBOR) was 6.21% and 4.02% for the same
periods, respectively.
(2) Yields are based on amortized cost balances. The balances for investment securities at fair value totaled
$2,685 million and $3,059 million for the six months ended June 30, 1995 and 1994, respectively. The balance for
mortgage loans held for sale totaled $1,470 million for the six months ended June 30, 1995.
(3) Includes taxable-equivalent adjustments that primarily relate to income on certain loans and securities that is
exempt from federal and applicable state income taxes. The federal statutory tax rate was 35% for the quarters ended
June 30, 1995 and 1994.
</TABLE>
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