<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): January 16, 1996
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 the Press Release announcing:
(1) Wells Fargo & Company's financial results for the quarter and
year ended December 31, 1995. Final financial statements with
additional analyses will be filed as part of the Company's Form
10-K in March 1996.
(2) An increase in Wells Fargo & Company's common stock dividend.
Item 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
27 Financial Data Schedule
99 (1) Copy of the Press Release announcing Wells Fargo &
Company's financial results for the quarter and year
ended December 31, 1995.
(2) Copy of the Press Release announcing an increase in
Wells Fargo & Company's common stock dividend.
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 January 16, 1996.
WELLS FARGO & COMPANY
By: /s/ 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
8-K DATED JANUARY 16, 1996 FOR THE PERIOD ENDED DECEMBER 31, 1995 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 3,375
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 177
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,920
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 35,582
<ALLOWANCE> 1,794
<TOTAL-ASSETS> 50,316
<DEPOSITS> 38,982
<SHORT-TERM> 2,976
<LIABILITIES-OTHER> 1,156
<LONG-TERM> 3,049
0
489
<COMMON> 235
<OTHER-SE> 3,331
<TOTAL-LIABILITIES-AND-EQUITY> 50,316
<INTEREST-LOAN> 3,403
<INTEREST-INVEST> 599
<INTEREST-OTHER> 7
<INTEREST-TOTAL> 4,085
<INTEREST-DEPOSIT> 997
<INTEREST-EXPENSE> 1,431
<INTEREST-INCOME-NET> 2,654
<LOAN-LOSSES> 0
<SECURITIES-GAINS> (17)
<EXPENSE-OTHER> 2,201
<INCOME-PRETAX> 1,777
<INCOME-PRE-EXTRAORDINARY> 1,032
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,032
<EPS-PRIMARY> 20.37
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.08
<LOANS-NON> 538
<LOANS-PAST> 0
<LOANS-TROUBLED> 14
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,082
<CHARGE-OFFS> 422
<RECOVERIES> 134
<ALLOWANCE-CLOSE> 1,794
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE>
[Letterhead - (News Release)]
FOR IMMEDIATE RELEASE
Tues., January 16, 1996
WELLS FARGO'S FOURTH QUARTER EARNINGS INCREASE 42 PERCENT
FOURTH QUARTER PER SHARE EARNINGS INCREASE 59 PERCENT: $6.29 VS. $3.96 A
YEAR AGO
Wells Fargo & Co. (NYSE:WFC) today reported net income of $306 million for
the fourth quarter 1995, compared with $215 million for the fourth quarter of
1994, an increase of 42 percent. Per share earnings for the fourth quarter of
1995 were $6.29, compared with $3.96 in the fourth quarter of 1994, an increase
of 59 percent. The percentage increase in per share earnings was greater than
the percentage increase in net income due to the Company's stock repurchase
program. Earnings for the full year of 1995 were $1.032 billion, or $20.37 per
share, compared with $841 million, or $14.78 per share, for 1994.
The results for both fourth quarter and full year 1995 reflected a $163
million ($94 million after tax) gain resulting from the sale of the Company's
joint venture interest in Wells Fargo Nikko Investment Advisors (WFNIA). Both
periods also reflected zero loan loss provisions, compared with $30 million for
the fourth quarter of 1994 and $200 million for the full year of 1994.
Return on average assets (ROA) was 2.47 percent and return on average
common equity (ROE) was 34.98 percent in the fourth quarter of 1995. In the
year-ago period, ROA was 1.64 percent and ROE was 23.96 percent. ROA was 2.03
percent and ROE was 29.70 percent for the full year 1995, compared with 1.62
percent and 22.41 percent, respectively, in 1994.
"We're pleased to see another quarter of revenue growth resulting from
investment spending in some of our core businesses," said Chairman Paul Hazen.
"This sustained growth enables us to enter the new year with confidence and
optimism."
-more-
<PAGE>
2/WF Earnings
Net interest income on a taxable-equivalent basis was $667 million in the
fourth quarter of 1995, up slightly from $656 million a year ago. For the full
year 1995, net interest income on a taxable-equivalent basis was $2.655 billion,
compared with $2.610 billion for the prior year. The Company's net interest
margin for the fourth quarter of 1995 was 6.08 percent, compared with 5.53
percent in the same quarter of 1994. The increase in the margin was
substantially attributable to a change in the mix of earning assets. The net
interest margin for the full year of 1995 was 5.80 percent, compared with
5.55 percent for 1994.
Noninterest income (NII) in the fourth quarter of 1995 was $434 million, up
48 percent from $294 million in the same quarter of 1994. This increase was
substantially due to a pretax gain of $163 million resulting from the sale of
the Company's joint venture interest in WFNIA to Barclays PLC of the U.K.
(Barclays). As part of the sale, Barclays also acquired the Company's
MasterWorks division. A significant portion of the NII increase was offset by a
$70 million accrual related to the disposition of operations. For the full year
1995, NII was $1.324 billion, compared with $1.200 billion for 1994.
Noninterest expense (NIE) in the fourth quarter of 1995 was $563 million,
down 2 percent from $577 million in the same quarter of 1994. The decrease
reflected lower federal deposit insurance expense resulting from the new rate
structure established by the FDIC in 1995. NIE totaled $2.201 billion in 1995,
compared with $2.156 billion in 1994.
Net charge-offs in the fourth quarter of 1995 totaled $78 million, or .90
percent of average loans (annualized). The largest category of net charge-offs
was credit card loans ($66 million), partially reflecting a 28 percent increase
in the credit card loan portfolio since the fourth quarter of 1994. For the
fourth quarter of 1994, net charge-offs totaled $58 million, or .65 percent of
average loans (annualized). The largest category of net charge-offs in that
period was also credit card loans ($28 million).
For the full year 1995, net charge-offs totaled $288 million, or .83
percent of average total loans. The largest category of net charge-offs was
credit card loans ($195 million). Full year 1994 net charge-offs totaled $240
million, or .70 percent of average total loans. The largest category of net
charge-offs in that period was also credit card loans ($120 million).
At December 31, 1995, the allowance for loan losses equaled 5.04 percent of
total loans, compared with 5.46 percent at September 30, 1995 and 5.73 percent
at December 31, 1994.
-more-
<PAGE>
3/WF Earnings
At December 31, 1995, total nonaccrual and restructured loans were $552
million, compared with $600 million at September 30, 1995 and $582 million at
December 31, 1994. Foreclosed assets were $186 million at December 31, 1995,
compared with $214 million at September 30, 1995 and $272 million at December
31, 1994.
At December 31, 1995, the Company's preliminary risk-based capital ratios
were 12.45 percent for total risk-based capital and 8.80 percent for Tier 1
risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and
4 percent, respectively. At September 30, 1995, these risk-based capital ratios
were 12.25 percent and 8.56 percent, respectively. At December 31, 1994, the
Company's total risk-based capital ratio was 13.16 percent and the Tier 1 risk-
based capital ratio was 9.09 percent. The leverage ratio at December 31, 1995
was 7.45 percent, compared with 6.93 percent at September 30, 1995 and 6.89
percent at December 31, 1994. The ratio of common equity to total assets at
December 31, 1995 was 7.09 percent, compared with 6.78 percent at September 30,
1995 and 6.41 percent at December 31, 1994.
In October 1995, the FASB agreed to a one-time opportunity for companies to
reassess by year-end 1995 their classification of securities under FAS 115,
Accounting for Certain Investments in Debt and Equity Securities. As a result,
the Company reclassified all of its held-to-maturity investment securities at
cost portfolio to the available-for-sale investment securities at fair value
portfolio.
###
<PAGE>
- 4 -
Wells Earnings
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA -- NEWS RELEASE
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
% Change
Quarter ended Dec. 31, 1995 from Year ended
-------------------------------- -------------------- --------------------
DEC. 31, Sept. 30, Dec. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31, %
(in millions) 1995 1995 1994 1995 1994 1995 1994 Change
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD
Net income $ 306 $ 261 $ 215 17% 42% $ 1,032 $ 841 23%
Per common share
Net income $ 6.29 $ 5.23 $ 3.96 20 59 $ 20.37 $ 14.78 38
Dividends declared 1.15 1.15 1.00 -- 15 4.60 4.00 15
Average common shares outstanding 47.0 47.9 51.8 (2) (9) 48.6 53.9 (10)
Profitability ratios (annualized)
Net income to average total
assets (ROA) 2.47% 2.07% 1.64% 19 51 2.03% 1.62% 25
Net income applicable to common
stock to average common
stockholders' equity (ROE) 34.98 30.13 23.96 16 46 29.70 22.41 33
Efficiency ratio (1) 51.1% 54.1% 60.7% (6) (16) 55.3% 56.6% (2)
Average loans $ 34,423 $ 34,103 $ 35,326 1 (3) $ 34,508 $ 34,039 1
Average assets 49,169 50,062 52,090 (2) (6) 50,767 51,849 (2)
Average core deposits 36,943 36,618 38,307 1 (4) 36,624 39,592 (7)
Net interest margin 6.08% 5.90% 5.53% 3 10 5.80% 5.55% 5
Average staff (full-time
equivalent) 19,535 19,651 19,562 (1) -- 19,520 19,558 --
AT PERIOD END
Investment securities $ 8,920 $ 9,436 $ 11,608 (5) (23) $ 8,920 $ 11,608 (23)
Loans 35,582 34,298 36,347 4 (2) 35,582 36,347 (2)
Allowance for loan losses 1,794 1,872 2,082 (4) (14) 1,794 2,082 (14)
Assets 50,316 49,934 53,374 1 (6) 50,316 53,374 (6)
Core deposits 37,858 37,151 38,508 2 (2) 37,858 38,508 (2)
Common stockholders' equity 3,566 3,385 3,422 5 4 3,566 3,422 4
Stockholders' equity 4,055 3,874 3,911 5 4 4,055 3,911 4
Capital ratios
Common stockholders' equity
to assets 7.09% 6.78% 6.41% 5 11 7.09% 6.41% 11
Stockholders' equity to assets 8.06 7.76 7.33 4 10 8.06 7.33 10
Risk-based capital (2)
Tier 1 capital 8.80 8.56 9.09 3 (3) 8.80 9.09 (3)
Total capital 12.45 12.25 13.16 2 (5) 12.45 13.16 (5)
Leverage (2) 7.45 6.93 6.89 8 8 7.45 6.89 8
Book value per common share $ 75.93 $ 71.32 $ 66.77 6 14 $ 75.93 $ 66.77 14
COMMON STOCK PRICE
High $ 229 $ 189 $ 149-5/8 21 53 $ 229 $ 160-3/8 43
Low 190 177-3/4 141 7 35 143-3/8 127-5/8 12
Period end 216 185-5/8 145 16 49 216 145 49
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The efficiency ratio is defined as noninterest expense divided by the total
of net interest income and noninterest income.
(2) The December 31, 1995 ratios are preliminary.
<PAGE>
- 5 -
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
------------------ % ------------------ %
(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 -- % $ 4 $ 7 (43)%
(2) Investment securities 139 173 (20) 599 740 (19)
(3) Mortgage loans held for sale 3 -- -- 76 -- --
(4) Loans 867 809 7 3,403 3,015 13
(5) Other -- 1 (100) 3 3 --
------ ------ ------ ------
(6) Total interest income 1,010 984 3 4,085 3,765 8
------ ------ ------ ------
INTEREST EXPENSE
(7) Deposits 247 230 7 997 854 17
Federal funds purchased and securities sold
(8) under repurchase agreements 38 45 (16) 199 99 101
(9) Commercial paper and other short-term borrowings 6 5 20 32 10 220
(10) Senior and subordinated debt 52 48 8 203 192 6
------ ------ ------ ------
(11) Total interest expense 343 328 5 1,431 1,155 24
------ ------ ------ ------
(12) NET INTEREST INCOME 667 656 2 2,654 2,610 2
(13) Provision for loan losses -- 30 (100) -- 200 (100)
------ ------ ------ ------
Net interest income after
(14) provision for loan losses 667 626 7 2,654 2,410 10
------ ------ ------ ------
NONINTEREST INCOME
(15) Service charges on deposit accounts 121 118 3 478 473 1
(16) Fees and commissions 116 106 9 433 387 12
(17) Trust and investment services income 65 51 27 241 203 19
(18) Investment securities gains (losses) (3) -- -- (17) 8 --
(19) Sale of joint venture interest 163 -- -- 163 -- --
(20) Other (28) 19 -- 26 129 (80)
------ ------ ------ ------
(21) Total noninterest income 434 294 48 1,324 1,200 10
------ ------ ------ ------
NONINTEREST EXPENSE
(22) Salaries 187 171 9 713 671 6
(23) Incentive compensation 33 49 (33) 126 155 (19)
(24) Employee benefits 40 48 (17) 187 201 (7)
(25) Net occupancy 52 54 (4) 211 215 (2)
(26) Equipment 54 54 -- 193 174 11
(27) Federal deposit insurance 5 25 (80) 52 101 (49)
(28) Other 192 176 9 719 639 13
------ ------ ------ ------
(29) Total noninterest expense 563 577 (2) 2,201 2,156 2
------ ------ ------ ------
INCOME BEFORE INCOME TAX
(30) EXPENSE 538 343 57 1,777 1,454 22
(31) Income tax expense 232 128 81 745 613 22
------ ------ ------ ------
(32) NET INCOME $ 306 $ 215 42 % $1,032 $ 841 23 %
------ ------ ---- ------ ------ ----
------ ------ ---- ------ ------ ----
NET INCOME APPLICABLE TO
(33) COMMON STOCK $ 295 $ 205 44 % $ 990 $ 798 24 %
------ ------ ---- ------ ------ ----
------ ------ ---- ------ ------ ----
PER COMMON SHARE
(34) Net income $ 6.29 $ 3.96 59 % $20.37 $14.78 38 %
------ ------ ---- ------ ------ ----
------ ------ ---- ------ ------ ----
(35) Dividends declared $ 1.15 $ 1.00 15 % $ 4.60 $ 4.00 15 %
------ ------ ---- ------ ------ ----
------ ------ ---- ------ ------ ----
(36) Average common shares outstanding 47.0 51.8 (9)% 48.6 53.9 (10)%
------ ------ ---- ------ ------ ----
------ ------ ---- ------ ------ ----
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- 6 -
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
December 31, %
-----------------------
(in millions) 1995 1994 Change
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
(1) Cash and due from banks $ 3,375 $ 2,974 13 %
Federal funds sold and securities
(2) purchased under resale agreements 177 260 (32)
Investment securities:
(3) At fair value 8,920 2,989 198
(4) At cost (estimated fair value $8,185) -- 8,619 (100)
-------- --------
(5) Total investment securities 8,920 11,608 (23)
(6) Loans 35,582 36,347 (2)
(7) Allowance for loan losses 1,794 2,082 (14)
-------- --------
(8) Net loans 33,788 34,265 (1)
-------- --------
(9) Due from customers on acceptances 98 77 27
(10) Accrued interest receivable 308 328 (6)
(11) Premises and equipment, net 862 886 (3)
(12) Goodwill 382 416 (8)
(13) Other assets 2,406 2,560 (6)
-------- --------
(14) Total assets $ 50,316 $ 53,374 (6)%
-------- -------- ---
-------- -------- ---
LIABILITIES
(15) Noninterest-bearing deposits $ 10,391 $ 10,145 2 %
(16) Interest-bearing deposits 28,591 32,187 (11)
-------- --------
(17) Total deposits 38,982 42,332 (8)
Federal funds purchased and securities
(18) sold under repurchase agreements 2,781 3,022 (8)
(19) Commercial paper and other short-term borrowings 195 189 3
(20) Acceptances outstanding 98 77 27
(21) Accrued interest payable 85 60 42
(22) Other liabilities 1,071 930 15
(23) Senior debt 1,783 1,393 28
(24) Subordinated debt 1,266 1,460 (13)
-------- --------
(25) Total liabilities 46,261 49,463 (6)
-------- --------
STOCKHOLDERS' EQUITY
(26) Preferred stock 489 489 --
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 46,973,319 shares
(27) and 51,251,648 shares 235 256 (8)
(28) Additional paid-in capital 1,135 871 30
(29) Retained earnings 2,174 2,409 (10)
(30) Cumulative foreign currency translation adjustments (4) (4) --
(31) Investment securities valuation allowance 26 (110) --
-------- --------
(32) Total stockholders' equity 4,055 3,911 4
-------- --------
(33) Total liabilities and stockholders' equity $ 50,316 $ 53,374 (6)%
-------- -------- ---
-------- -------- ---
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- 7 -
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
Year ended December 31,
----------------------
(in millions) 1995 1994
- -----------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF YEAR $3,911 $4,315
Net income 1,032 841
Common stock issued under employee benefit and
dividend reinvestment plans 90 57
Preferred stock redeemed -- (150)
Common stock repurchased (847) (760)
Preferred stock dividends (42) (43)
Common stock dividends (225) (218)
Change in investment securities valuation allowance 136 (131)
------ ------
BALANCE, END OF YEAR $4,055 $3,911
------ ------
------ ------
- -----------------------------------------------------------------------------
</TABLE>
LOANS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
December 31,
-------------------
(in millions) 1995 1994
- -----------------------------------------------------------------------------
<S> <C> <C>
Commercial (1) $ 9,750 $ 8,162
Real estate 1-4 family first mortgage 4,448 9,050
Other real estate mortgage 8,263 8,079
Real estate construction 1,366 1,013
Consumer:
Real estate 1-4 family junior lien mortgage 3,358 3,332
Credit card 4,001 3,125
Other revolving credit and monthly payment 2,576 2,229
------- -------
Total consumer 9,935 8,686
Lease financing 1,789 1,330
Foreign 31 27
------- -------
Total loans $35,582 $36,347
------- -------
------- -------
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</TABLE>
(1) Includes loans to real estate developers of $700 million and $525 million
at December 31, 1995 and 1994, respectively.
<PAGE>
- 8 -
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Quarter ended Year ended
--------------------------- -----------------
DEC. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31,
(in millions) 1995 1995 1994 1995 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF PERIOD $1,872 $1,947 $2,110 $2,082 $2,122
Provision for loan losses -- -- 30 -- 200
Loan charge-offs:
Commercial (1) (23) (15) (15) (55) (54)
Real estate 1-4 family first mortgage (3) (4) (2) (13) (18)
Other real estate mortgage (3) (15) (8) (52) (66)
Real estate construction (5) (1) (5) (10) (19)
Consumer:
Real estate 1-4 family junior lien mortgage (4) (5) (4) (16) (24)
Credit card (69) (55) (31) (208) (138)
Other revolving credit and monthly payment (17) (15) (11) (53) (36)
------ ------ ------ ------ ------
Total consumer (90) (75) (46) (277) (198)
Lease financing (4) (4) (3) (15) (14)
------ ------ ------ ------ ------
Total loan charge-offs (128) (114) (79) (422) (369)
------ ------ ------ ------ ------
Loan recoveries:
Commercial (2) 7 17 7 38 37
Real estate 1-4 family first mortgage -- 1 -- 3 6
Other real estate mortgage 33 7 3 53 22
Real estate construction -- -- 3 1 15
Consumer:
Real estate 1-4 family junior lien mortgage 1 1 1 3 4
Credit card 3 3 3 13 18
Other revolving credit and monthly payment 5 4 3 12 11
------ ------ ------ ------ ------
Total consumer 9 8 7 28 33
Lease financing 1 6 1 11 16
------ ------ ------ ------ ------
Total loan recoveries 50 39 21 134 129
------ ------ ------ ------ ------
Total net loan charge-offs (78) (75) (58) (288) (240)
------ ------ ------ ------ ------
BALANCE, END OF PERIOD $1,794 $1,872 $2,082 $1,794 $2,082
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Total net loan charge-offs as a percentage
of average loans (annualized) (3) .90% .86% .65% .83% .70%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
Allowance as a percentage of total loans (3) 5.04% 5.46% 5.73% 5.04% 5.73%
------ ------ ------ ------ ------
------ ------ ------ ------ ------
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
</TABLE>
(1) Includes charge-offs of loans to real estate developers of $4 million and
$14 million in the quarter and year ended December 31, 1994, respectively.
(2) Includes recoveries from loans to real estate developers of $1 million, $1
million and none in the quarters ended December 31, 1995, September 30,
1995 and December 31, 1994, respectively, and $3 million and $2 million in
the years ended December 31, 1995 and 1994, respectively.
(3) Average and total loans exclude first mortgage loans that were reclassified
to a held-for-sale category on March 31, 1995 and subsequently sold by
year-end 1995.
<PAGE>
- 9 -
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
DEC. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
(in millions) 1995 1995 1995 1995 1994
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nonaccrual loans:
Commercial (1) $ 112 $ 128 $ 121 $ 79 $ 88
Real estate 1-4 family first mortgage 64 56 64 71 81
Other real estate mortgage 307 335 373 324 328
Real estate construction 46 55 58 77 58
Consumer:
Real estate 1-4 family junior lien mortgage 8 11 12 12 11
Other revolving credit and monthly payment 1 1 3 3 1
---- ---- ---- ---- ----
Total nonaccrual loans 538 586 631 566 567
Restructured loans (2) 14 14 13 15 15
---- ---- ---- ---- ----
Nonaccrual and restructured loans 552 600 644 581 582
As a percentage of total loans (3) 1.6% 1.8% 1.9% 1.8% 1.6%
Foreclosed assets 186 214 224 273 272
Real estate investments (4) 12 13 14 17 17
---- ---- ---- ---- ----
Total nonaccrual and restructured loans
and other assets $750 $827 $882 $871 $871
---- ---- ---- ---- ----
---- ---- ---- ---- ----
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Includes loans to real estate developers of $18 million, $23 million, $27
million, $28 million and $30 million at December 31, 1995, September 30,
1995, June 30, 1995, March 31, 1995 and December 31, 1994, respectively.
(2) In addition to originated loans that were subsequently restructured, there
were loans of $50 million at December 31, 1995 that were purchased at a
steep discount whose contractual terms were modified after acquisition.
The modified terms did not affect the book balance nor the yields expected
at the date of purchase.
(3) Total loans exclude mortgage loans held for sale at September 30, 1995,
June 30, 1995 and March 31, 1995.
(4) 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 $95 million, $116
million, $75 million, $64 million and $54 million at December 31, 1995,
September 30, 1995, June 30, 1995, March 31, 1995 and December 31, 1994,
respectively.
QUARTERLY TREND OF CHANGES IN NONACCRUAL LOANS (1)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
DEC. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
(in millions) 1995 1995 1995 1995 1994 1994 1994 1994
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $586 $631 $566 $567 $637 $712 $895 $1,194
New loans placed on nonaccrual 106 108 173 127 71 93 124 52
Loans purchased -- -- 1 13 25 -- 9 --
Loans sold -- (13) -- -- -- -- -- (3)
Charge-offs (27) (27) (18) (28) (25) (38) (27) (35)
Payments (71) (70) (49) (55) (61) (71) (91) (121)
Transfers to foreclosed assets (22) (29) (19) (36) (18) (14) (27) (37)
Loans returned to accrual (34) (14) (23) (24) (62) (45) (172) (157)
Other additions -- -- -- 2 -- -- 1 2
---- ---- ---- ---- ---- ---- ---- ----
BALANCE, END OF QUARTER $538 $586 $631 $566 $567 $637 $712 $895
---- ---- ---- ---- ---- ---- ---- ----
---- ---- ---- ---- ---- ---- ---- ----
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The December 31, 1995 amounts are preliminary.
<PAGE>
- 10 -
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
- --------------------------------------------------------------------------------------------------------------
DECEMBER 31, 1995
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Contractually past due (2):
Payments not made (3):
90 days or more past due $ 86 $ 1 $ -- $ 87
Less than 90 days past due 2 -- -- 2
---- ---- ---- ----
88 1 -- 89
---- ---- ---- ----
Payments made (4):
90 days or more past due 187 130 48 365
Less than 90 days past due 94 25 27 146
---- ---- ---- ----
281 155 75 511
---- ---- ---- ----
Total past due 369 156 75 600
Contractually current (5) 169 54 35 258
---- ---- ---- ----
Total nonaccrual loans $538 $210 $110 $858
---- ---- ---- ----
---- ---- ---- ----
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
September 30, 1995
----------------------------------------------------------------
Contractually past due (2):
Payments not made (3):
90 days or more past due $ 90 $ 2 $ -- $ 92
Less than 90 days past due 5 -- -- 5
---- ---- ---- ----
95 2 -- 97
---- ---- ---- ----
Payments made (4):
90 days or more past due 228 132 48 408
Less than 90 days past due 38 6 8 52
---- ---- ---- ----
266 138 56 460
---- ---- ---- ----
Total past due 361 140 56 557
Contractually current (5) 225 68 53 346
---- ---- ---- ----
Total nonaccrual loans $586 $208 $109 $903
---- ---- ---- ----
---- ---- ---- ----
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(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 December 31, 1995 amounts are preliminary.
(2) 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 $175 million and $197 million of these loans had some
payments made on them during the fourth and third quarters of 1995,
respectively.
(5) 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.
<PAGE>
- 11 -
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
----------------- % ----------------- %
(in millions) 1995 1994 Change 1995 1994 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Service charges on deposit accounts $121 $118 3% $ 478 $ 473 1%
Fees and commissions:
Credit card membership and other credit card fees 26 17 53 95 64 48
Debit and credit card merchant fees 17 15 13 65 55 18
Charges and fees on loans 15 10 50 52 42 24
Shared ATM network fees 13 12 8 51 43 19
Mutual fund and annuity sales fees 8 20 (60) 33 64 (48)
All other 37 32 16 137 119 15
---- ---- ------ ------
Total fees and commissions 116 106 9 433 387 12
Trust and investment services income:
Asset management and custody fees 33 31 6 129 124 4
Mutual fund management fees 21 12 75 71 46 54
All other 11 8 38 41 33 24
---- ---- ------ ------
Total trust and investment services income 65 51 27 241 203 19
Investment securities gains (losses) (3) -- -- (17) 8 --
Sale of joint venture interest 163 -- -- 163 -- --
Income from equity investments accounted for by the:
Cost method 18 14 29 58 31 87
Equity method 9 7 29 39 31 26
Check printing charges 10 10 -- 39 40 (3)
Losses from dispositions of operations (67) (15) 347 (89) (5) --
Gains (losses) on sales of loans 6 1 500 (40) 4 --
All other (4) 2 (300) 19 28 (32)
---- ---- ------ ------
Total $434 $294 48% $1,324 $1,200 10%
---- ---- ---- ------ ------ ---
---- ---- ---- ------ ------ ---
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
----------------- % ----------------- %
(in millions) 1995 1994 Change 1995 1994 Change
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries $187 $171 9% $ 713 $ 671 6%
Incentive compensation 33 49 (33) 126 155 (19)
Employee benefits 40 48 (17) 187 201 (7)
Net occupancy 52 54 (4) 211 215 (2)
Equipment 54 54 -- 193 174 11
Contract services 46 30 53 149 101 48
Advertising and promotion 24 21 14 73 65 12
Telecommunications 14 14 -- 58 49 18
Certain identifiable intangibles 13 15 (13) 54 62 (13)
Federal deposit insurance 5 25 (80) 52 101 (49)
Postage 13 11 18 52 44 18
Outside professional services 13 8 63 45 33 36
Operating losses 6 21 (71) 45 62 (27)
Stationery and supplies 10 8 25 37 30 23
Travel and entertainment 11 8 38 36 30 20
Goodwill 9 9 -- 35 36 (3)
Check printing 7 6 17 25 29 (14)
Security 6 5 20 21 20 5
Escrow and collection agency fees 4 4 -- 15 19 (21)
Outside data processing 3 3 -- 11 10 10
All other 13 13 -- 63 49 29
---- ---- ------ ------
Total $563 $577 (2)% $2,201 $2,156 2%
---- ---- ---- ------ ------ ---
---- ---- ---- ------ ------ ---
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- 12 -
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31,
--------------------------------------------------------------------
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 $ 83 5.59% $ 1 $ 46 5.04% $ 1
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 753 5.84 11 365 6.63 6
Securities of U.S. government agencies
(3) and corporations 2,476 5.61 35 1,412 5.67 22
(4) Private collateralized mortgage obligations 1,370 6.01 21 1,198 6.20 20
(5) Other securities 125 26.47 6 81 14.21 1
------- ----- -------- ----
(6) Total investment securities at fair value 4,724 6.20 73 3,056 6.10 49
------- ----- -------- ----
At cost:
(7) U.S. Treasury securities 676 5.04 9 1,821 4.65 21
Securities of U.S. government agencies
(8) and corporations 2,842 6.21 44 5,488 6.03 83
(9) Private collateralized mortgage obligations 762 5.91 11 1,319 5.74 19
(10) Other securities 102 7.02 2 129 5.89 2
------- ----- -------- ----
(11) Total investment securities at cost 4,382 6.00 66 8,757 5.70 125
(12) Total investment securities 9,106 6.10 139 11,813 5.80 174
(13)Mortgage loans held for sale (2) 160 7.55 3 -- -- --
Loans:
(14) Commercial 9,167 9.83 227 7,653 9.35 180
(15) Real estate 1-4 family first mortgage 4,461 7.51 84 8,939 6.91 155
(16) Other real estate mortgage 8,010 9.46 191 8,056 9.06 183
(17) Real estate construction 1,307 10.05 33 973 10.06 25
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,356 8.67 73 3,333 8.30 69
(19) Credit card 3,882 15.49 151 2,910 15.50 113
(20) Other revolving credit and monthly payment 2,517 10.97 69 2,126 10.06 54
------- ----- -------- ----
(21) Total consumer 9,755 11.98 293 8,369 11.25 236
(22) Lease financing 1,705 9.22 39 1,315 8.94 29
(23) Foreign 18 -- -- 21 -- --
------- ----- -------- ----
(24) Total loans 34,423 10.03 867 35,326 9.12 808
(25)Other 70 -- -- 57 5.64 1
------- ----- -------- ----
(26) Total earning assets $43,842 9.19 1,010 $ 47,242 8.27 984
------- ----- -------- ----
------- --------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $2,946 1.01 8 $ 4,515 .98 11
(28) Market rate and other savings 15,955 2.66 107 17,548 2.52 112
(29) Savings certificates 8,609 5.40 117 7,054 4.52 80
(30) Other time deposits 297 7.64 6 296 7.44 5
(31) Deposits in foreign offices 673 5.75 9 1,639 5.29 22
------- ----- -------- ----
(32) Total interest-bearing deposits 28,480 3.44 247 31,052 2.94 230
Federal funds purchased and securities sold
(33) under repurchase agreements 2,665 5.69 38 3,483 5.15 46
(34) Commercial paper and other short-term borrowings 431 5.69 6 358 4.95 4
(35) Senior debt 1,768 6.37 29 1,578 6.18 25
(36) Subordinated debt 1,405 6.60 23 1,461 6.30 23
------- ----- -------- ----
(37) Total interest-bearing liabilities 34,749 3.92 343 37,932 3.43 328
(38)Portion of noninterest-bearing funding sources 9,093 -- -- 9,310 -- --
------- ----- -------- ----
(39) Total funding sources $43,842 3.11 343 $ 47,242 2.74 328
------- ----- -------- ----
------- --------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(40) A TAXABLE-EQUIVALENT BASIS (3) 6.08% $ 667 5.53% $656
---- ----- ---- ----
---- ----- ---- ----
NONINTEREST-EARNING ASSETS
(41)Cash and due from banks $ 2,858 $ 2,680
(42)Other 2,469 2,168
------- --------
Total noninterest-earning assets $ 5,327 $ 4,848
------- --------
------- --------
NONINTEREST-BEARING FUNDING SOURCES
(43)Deposits $9,433 $ 9,190
(44)Other liabilities 1,148 1,084
(45)Preferred stockholders' equity 489 489
(46)Common stockholders' equity 3,350 3,395
Noninterest-bearing funding sources used to
(47) fund earning assets (9,093) (9,310)
------- --------
(48) Net noninterest-bearing funding sources $ 5,327 $ 4,848
------- --------
------- --------
(49)TOTAL ASSETS $49,169 $ 52,090
------- --------
------- --------
</TABLE>
- --------------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.72% and 8.13% for the
quarters ended December 31, 1995 and 1994, respectively.
The average three-month London Interbank Offered Rate (LIBOR) was
5.86% and 5.97% for the same quarters, respectively.
(2) Yields are based on amortized cost balances. The average
amortized cost balances for investment securities at fair value
totaled $4,708 million and $3,200 million for the quarters ended
December 31, 1995 and 1994, respectively. The average amortized
cost balance for mortgage loans held for sale totaled $160
million for the quarter ended December 31, 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 December 31, 1995 and
1994.
<PAGE>
- 13 -
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Year ended December 31,
---------------------------------------------------------------------
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 $ 69 5.94% $ 4 $ 189 3.51% $ 7
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 499 6.34 31 190 6.66 13
Securities of U.S. government agencies
(3) and corporations 1,426 5.55 81 1,547 5.82 93
(4) Private collateralized mortgage obligations 1,095 6.24 71 1,240 6.14 80
(5) Other securities 81 19.69 11 76 14.13 6
------- ------ -------- ------
(6) Total investment securities at fair value 3,101 6.17 194 3,053 6.12 192
------- ------ -------- ------
At cost:
(7) U.S. Treasury securities 1,246 4.88 61 2,376 4.77 113
Securities of U.S. government agencies
(8) and corporations 4,428 6.07 269 5,902 6.05 357
(9) Private collateralized mortgage obligations 1,124 5.87 66 1,242 5.74 71
(10) Other securities 145 6.90 10 133 5.75 8
------- ------ -------- ------
(11) Total investment securities at cost 6,943 5.84 406 9,653 5.69 549
(12) Total investment securities 10,044 5.94 600 12,706 5.79 741
(13)Mortgage loans held for sale (2) 1,002 7.48 76 -- -- --
Loans:
(14) Commercial 8,635 9.88 853 7,092 9.19 652
(15) Real estate 1-4 family first mortgage 5,867 7.36 432 8,484 6.85 581
(16) Other real estate mortgage 8,046 9.50 765 8,071 8.68 700
(17) Real estate construction 1,146 10.16 116 977 9.29 91
Consumer:
(18) Real estate 1-4 family junior lien mortgage 3,349 8.61 288 3,387 7.75 262
(19) Credit card 3,547 15.59 552 2,703 15.39 416
(20) Other revolving credit and monthly payment 2,397 10.68 257 2,023 9.60 194
------- ------ -------- ------
(21) Total consumer 9,293 11.81 1,097 8,113 10.75 872
(22) Lease financing 1,498 9.22 138 1,271 9.16 116
(23) Foreign 23 7.54 2 31 5.06 2
------- ------ -------- ------
(24) Total loans 34,508 9.86 3,403 34,039 8.85 3,014
(25)Other 62 5.47 3 54 5.89 3
------- ------ -------- ------
(26) Total earning assets $45,685 8.93 4,086 $ 46,988 8.00 3,765
------- ------ -------- ------
------- --------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(27) Interest-bearing checking $ 3,907 1.00 39 $ 4,622 .98 45
(28) Market rate and other savings 15,552 2.61 405 18,921 2.34 442
(29) Savings certificates 8,080 5.25 424 7,030 4.28 301
(30) Other time deposits 385 6.14 24 304 7.35 22
(31) Deposits in foreign offices 1,771 5.91 105 925 4.75 44
------- ------ -------- ------
(32) Total interest-bearing deposits 29,695 3.36 997 31,802 2.69 854
Federal funds purchased and securities sold
(33) under repurchase agreements 3,401 5.84 199 2,223 4.45 99
(34) Commercial paper and other short-term borrowings 544 5.82 32 224 4.25 10
(35) Senior debt 1,618 6.67 107 1,930 5.29 102
(36) Subordinated debt 1,459 6.55 96 1,510 5.94 90
------- ------ -------- ------
(37) Total interest-bearing liabilities 36,717 3.90 1,431 37,689 3.06 1,155
(38)Portion of noninterest-bearing funding sources 8,968 -- -- 9,299 -- --
------- ------ -------- ------
(39) Total funding sources $45,685 3.13 1,431 $ 46,988 2.45 1,155
------- ------ -------- ------
------- --------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(40) A TAXABLE-EQUIVALENT BASIS (3) 5.80% $ 2,655 5.55% $2,610
---- ------- ---- ------
---- ------- ---- ------
NONINTEREST-EARNING ASSETS
(41)Cash and due from banks $ 2,681 $ 2,618
(42)Other 2,401 2,243
------- --------
Total noninterest-earning assets $ 5,082 $ 4,861
------- --------
------- --------
NONINTEREST-BEARING FUNDING SOURCES
(43)Deposits $9,085 $ 9,019
(44)Other liabilities 1,142 1,062
(45)Preferred stockholders' equity 489 521
(46)Common stockholders' equity 3,334 3,558
Noninterest-bearing funding sources used to
(47) fund earning assets (8,968) (9,299)
------- --------
(48) Net noninterest-bearing funding sources $ 5,082 $ 4,861
------- --------
------- --------
(49)TOTAL ASSETS $50,767 $ 51,849
------- --------
------- --------
</TABLE>
- --------------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.83% and 7.14%
for the years ended December 31, 1995 and 1994, respectively.
The average three-month London Interbank Offered Rate (LIBOR) was
6.04% and 4.75% for the same years, respectively.
(2) Yields are based on amortized cost balances. The average
amortized cost balances for investment securities at fair value
totaled $3,144 million and $3,131 million for the years ended
December 31, 1995 and 1994, respectively. The average amortized
cost balance for mortgage loans held for sale totaled
$1,012 million for the year ended December 31, 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 years ended December 31, 1995 and 1994.
<PAGE>
Exhibit 99 (2)
FOR IMMEDIATE RELEASE
Tues., Jan. 16, 1996
WELLS FARGO INCREASES DIVIDEND ON COMMON STOCK TO $1.30
UP FROM $1.15
The Board of Directors of Wells Fargo & Co. (NYSE: WFC) today increased
its regular quarterly dividend on common stock to $1.30 per share. This
dividend represents a 15 cent increase from the previous dividend of $1.15 per
share that was announced Oct. 17, 1995.
The dividend will be payable Feb. 20, 1996 to shareholders of record at
the close of business Jan. 31, 1996.
