<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): April 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 are the Press Releases announcing:
(1) Wells Fargo & Company's financial results for the quarter ended
March 31, 1996. Final financial statements with additional
analyses will be filed as part of the Company's Form 10-Q in May
1996.
(2) The Company's share repurchase program and quarterly common stock
dividend.
Item 7: FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
27 Financial Data Schedule
99 (a) Copy of the Press Release announcing Wells Fargo &
Company's financial results for the quarter ended March
31, 1996.
(b) Copy of the Press Release announcing Wells Fargo &
Company's share repurchase program and quarterly 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 April 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 APRIL 16, 1996 FOR THE PERIOD ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,721
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 49
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 8,435
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 35,167
<ALLOWANCE> 1,681
<TOTAL-ASSETS> 48,978
<DEPOSITS> 37,806
<SHORT-TERM> 2,468
<LIABILITIES-OTHER> 1,276
<LONG-TERM> 3,147
0
489
<COMMON> 235
<OTHER-SE> 3,478
<TOTAL-LIABILITIES-AND-EQUITY> 48,978
<INTEREST-LOAN> 875
<INTEREST-INVEST> 128
<INTEREST-OTHER> 3
<INTEREST-TOTAL> 1,006
<INTEREST-DEPOSIT> 241
<INTEREST-EXPENSE> 330
<INTEREST-INCOME-NET> 676
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 567
<INCOME-PRETAX> 463
<INCOME-PRE-EXTRAORDINARY> 264
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 264
<EPS-PRIMARY> 5.39
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.18
<LOANS-NON> 525
<LOANS-PAST> 0
<LOANS-TROUBLED> 12
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,794
<CHARGE-OFFS> 137
<RECOVERIES> 24
<ALLOWANCE-CLOSE> 1,681
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE>
Exhibit 99(a)
FOR IMMEDIATE RELEASE
Tues., April 16, 1996
WELLS FARGO'S FIRST QUARTER EARNINGS INCREASE 13 PERCENT
FIRST QUARTER PER SHARE EARNINGS INCREASE 22 PERCENT: $5.39 VS. $4.41 A
YEAR AGO
Wells Fargo & Co. (NYSE:WFC) today reported net income of $264 million
for the first quarter 1996, compared with $233 million for the first quarter of
1995, an increase of 13 percent. Per share earnings for the first quarter of
1996 were $5.39, compared with $4.41 in the first quarter of 1995, an increase
of 22 percent.
First quarter results were higher than a year ago, reflecting increased
noninterest income partially offset by an increase in income taxes.
Return on average assets (ROA) was 2.16 percent and return on average
common equity (ROE) was 28.34 percent in the first quarter of 1996. In the
year-ago period, ROA was 1.80 percent and ROE was 26.89 percent.
"Going forward, shareholders will have to focus on cash earnings as a
measure of performance because the Company is accounting for the merger with
First Interstate as a purchase," said Chairman Paul Hazen. "We will provide a
special report to shareholders at the time we report second quarter earnings
which details the differences between cash earnings and the way we have
traditionally reported earnings."
-more-
<PAGE>
2/WF Earnings
Net interest income on a taxable-equivalent basis was $676 million in
the first quarter of 1996, up slightly from $665 million a year ago. The
Company's net interest margin for the first quarter of 1996 was 6.18 percent,
compared with 5.59 percent in the same quarter of 1995. The increase in the
margin was substantially attributable to a favorable change in the mix of
earning assets, including reduced levels of lower-yielding securities and single
family loans, partially offset by increased rates on consumer deposits.
Noninterest income (NII) in the first quarter of 1996 was $354 million,
up 46 percent from $242 million in the same quarter of 1995. This increase
included an $83 million write-down to the lower of cost or estimated market
value in the first quarter of 1995 for certain product types within the real
estate 1-4 family first mortgage portfolio that were reclassified to mortgage
loans held for sale.
Noninterest expense (NIE) in the first quarter of 1996 was $567 million,
up 6 percent from $537 million in the same quarter of 1995. The increase
included higher contract service expenses as well as higher salaries and
equipment expense. This increase was primarily offset by a reduction in federal
deposit insurance expense.
Net charge-offs in the first quarter of 1996 totaled $113 million, or
1.30 percent of average loans (annualized). The largest category of net charge-
offs was credit card loans ($81 million), partially reflecting a 22 percent
increase in the credit card loan portfolio since the first quarter of 1995. For
the first quarter of 1995, net charge-offs totaled $65 million, or .72 percent
of average loans (annualized). The largest category of net charge-offs in that
period was also credit card loans ($35 million).
At March 31, 1996, the allowance for loan losses equaled 4.78 percent of
total loans, compared with 5.04 percent at December 31, 1995 and 6.16 percent at
March 31, 1995.
At March 31, 1996, total nonaccrual and restructured loans were $537
million, compared with $552 million at December 31, 1995 and $581 million at
March 31, 1995. Foreclosed assets were $198 million at March 31, 1996, compared
with $186 million at December 31, 1995 and $273 million at March 31, 1995.
-more-
<PAGE>
3/WF Earnings
The Company's effective tax rate for the first quarter of 1996 was 43%,
compared with 37% for the first quarter of 1995. The increase in the effective
tax rate was related to a $22 million reduction of income tax expense in 1995
related to the settlement with the Internal Revenue Service of certain audit
issues pertaining to auto leases.
At March 31, 1996, the Company's preliminary risk-based capital ratios
were 13.05 percent for total risk-based capital and 9.40 percent for Tier 1
risk-based capital, exceeding the minimum regulatory guidelines of 8 percent and
4 percent, respectively. At December 31, 1995, these risk-based capital ratios
were 12.46 percent and 8.81 percent, respectively. At March 31, 1995, the
Company's total risk-based capital ratio was 12.78 percent and the Tier 1 risk-
based capital ratio was 8.73 percent. The leverage ratio at March 31, 1996 was
7.90 percent, compared with 7.46 percent at December 31, 1995 and 6.61 percent
at March 31, 1995. The ratio of common equity to total assets at March 31, 1996
was 7.58 percent, compared with 7.09 percent at December 31, 1995 and 6.40
percent at March 31, 1995.
Summary highlights of First Interstate Bancorp's first quarter earnings
are included in this release. Earnings for the combined company will be
announced at the close of the second quarter of 1996.
###
<PAGE>
-4-
Wells Earnings
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA--NEWS RELEASE
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
% Change
Quarter ended March 31, 1996 from
------------------------------------ ---------------------
MARCH 31, Dec. 31, March 31, Dec. 31, March 31,
(in millions) 1996 1995 1995 1995 1995
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOR THE QUARTER
Net income $ 264 $ 306 $ 233 (14)% 13%
Per common share
Net income $ 5.39 $ 6.29 $ 4.41 (14) 22
Dividends declared 1.30 1.15 1.15 13 13
Average common shares outstanding 47.0 47.0 50.5 -- (7)
Profitability ratios (annualized)
Net income to average total assets (ROA) 2.16% 2.47% 1.80% (13) 20
Net income applicable to common stock to
average common stockholders' equity (ROE) 28.34 34.98 26.89 (19) 5
Efficiency ratio (1) 55.1% 51.1% 59.1% 8 (7)
Average loans $ 35,025 $ 34,423 $ 36,334 2 (4)
Average assets 49,134 49,169 52,390 -- (6)
Average core deposits 36,819 36,943 36,699 -- --
Net interest margin 6.18% 6.08% 5.59% 2 11
Average staff (full-time equivalent) 19,120 19,535 19,493 (2) (2)
AT QUARTER END
Investment securities $ 8,435 $ 8,920 $ 10,576 (5) (20)
Loans 35,167 35,582 32,737 (1) 7
Allowance for loan losses 1,681 1,794 2,017 (6) (17)
Assets 48,978 50,316 52,324 (3) (6)
Core deposits 37,414 37,858 36,975 (1) 1
Common stockholders' equity 3,713 3,566 3,351 4 11
Stockholders' equity 4,202 4,055 3,840 4 9
Capital ratios
Common stockholders' equity to assets 7.58% 7.09% 6.40% 7 18
Stockholders' equity to assets 8.58 8.06 7.34 6 17
Risk-based capital (2)
Tier 1 capital 9.40 8.81 8.73 7 8
Total capital 13.05 12.46 12.78 5 2
Leverage (2) 7.90 7.46 6.61 6 20
Book value per common share $ 79.01 $ 75.93 $ 67.59 4 17
COMMON STOCK PRICE
High $ 261-1/4 $ 229 $ 160-5/8 14 63
Low 203-1/8 190 143-3/8 7 42
Quarter end 261-1/4 216 156-3/8 21 67
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The efficiency ratio is defined as noninterest expense divided by the total
of net interest income and noninterest income.
(2) The March 31, 1996 ratios are preliminary.
<PAGE>
-5-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
- -----------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Quarter
ended March 31, %
-----------------------
(in millions) 1996 1995 Change
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME
Federal funds sold and securities purchased
(1) under resale agreements $ 2 $ 1 100%
(2)Investment securities 128 165 (22)
(3)Loans 875 858 2
(4)Other 1 1 --
------ ------
(5) Total interest income 1,006 1,025 (2)
------ ------
INTEREST EXPENSE
(6)Deposits 241 242 --
Federal funds purchased and securities sold
(7) under repurchase agreements 36 56 (36)
(8)Commercial paper and other short-term borrowings 5 10 (50)
(9)Senior and subordinated debt 48 52 (8)
------ ------
(10) Total interest expense 330 360 (8)
------ ------
(11)NET INTEREST INCOME 676 665 2
------ ------
(12)Provision for loan losses -- -- --
------ ------
Net interest income after
(13) provision for loan losses 676 665 2
------ ------
NONINTEREST INCOME
(14)Service charges on deposit accounts 122 118 3
(15)Fees and commissions 118 101 17
(16)Trust and investment services income 59 55 7
(17)Investment securities gains (losses) -- (15) 100
(18)Other 55 (17) --
------ ------
(19) Total noninterest income 354 242 46
------ ------
NONINTEREST EXPENSE
(20)Salaries 181 172 5
(21)Incentive compensation 32 27 19
(22)Employee benefits 54 53 2
(23)Net occupancy 53 53 --
(24)Equipment 55 47 17
(25)Federal deposit insurance 1 24 (96)
(26)Other 191 161 19
------ ------
(27) Total noninterest expense 567 537 6
------ ------
INCOME BEFORE INCOME TAX
(28) EXPENSE 463 370 25
(29)Income tax expense 199 137 45
------ ------
(30)NET INCOME $ 264 $ 233 13%
------ ------ --
------ ------ --
NET INCOME APPLICABLE TO
(31) COMMON STOCK $ 254 $ 223 14%
------ ------ --
------ ------ --
PER COMMON SHARE
(32)Net income $ 5.39 $ 4.41 22%
------ ------ --
------ ------ --
(33)Dividends declared $ 1.30 $ 1.15 13%
------ ------ --
------ ------ --
(34) Average common shares outstanding 47.0 50.5 (7)%
------ ------ --
------ ------ --
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-6-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
- ----------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------
% Change
Mar. 31, 1996 from
------------------
MAR. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
(in millions) 1996 1995 1995 1995 1995
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
(1) Cash and due from banks $ 2,721 $ 3,375 $ 2,708 (19)% -- %
Federal funds sold and securities
(2) purchased under resale agreements 49 177 39 (72) 26
Investment securities:
(3) At fair value 8,435 8,920 2,403 (5) 251
(4) At cost (estimated fair value $7,928) -- -- 8,173 -- (100)
-------- -------- --------
(5) Total investment securities 8,435 8,920 10,576 (5) (20)
(6) Mortgage loans held for sale -- -- 3,940 -- (100)
(7) Loans 35,167 35,582 32,737 (1) 7
(8) Allowance for loan losses 1,681 1,794 2,017 (6) (17)
-------- -------- --------
(9) Net loans 33,486 33,788 30,720 (1) 9
-------- -------- --------
(10) Due from customers on acceptances 79 98 74 (19) 7
(11) Accrued interest receivable 316 308 316 3 --
(12) Premises and equipment, net 859 862 892 -- (4)
(13) Goodwill 373 382 408 (2) (9)
(14) Other assets 2,660 2,406 2,651 11 --
-------- -------- --------
(15) Total assets $ 48,978 $ 50,316 $ 52,324 (3)% (6)%
-------- -------- -------- ---- ----
-------- -------- -------- ---- ----
LIABILITIES
(16) Noninterest-bearing deposits $ 9,740 $ 10,391 $ 9,431 (6)% 3 %
(17) Interest-bearing deposits 28,066 28,591 29,566 (2) (5)
-------- -------- --------
(18) Total deposits 37,806 38,982 38,997 (3) (3)
Federal funds purchased and securities
(19) sold under repurchase agreements 2,243 2,781 4,770 (19) (53)
Commercial paper and other short-term
(20) borrowings 225 195 526 15 (57)
(21) Acceptances outstanding 79 98 74 (19) 7
(22) Accrued interest payable 110 85 105 29 5
(23) Other liabilities 1,166 1,071 1,074 9 9
(24) Senior debt 1,881 1,783 1,454 5 29
(25) Subordinated debt 1,266 1,266 1,484 -- (15)
-------- -------- --------
(26) Total liabilities 44,776 46,261 48,484 (3) (8)
-------- -------- --------
STOCKHOLDERS' EQUITY
(27) Preferred stock 489 489 489 -- --
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 46,999,455 shares,
(28) 46,973,319 shares and 49,579,908 shares 235 235 248 -- (5)
(29) Additional paid-in capital 1,136 1,135 590 -- 93
(30) Retained earnings 2,366 2,174 2,572 9 (8)
Cumulative foreign currency translation
(31) adjustments (4) (4) (4) -- --
(32) Investment securities valuation allowance (20) 26 (55) -- (64)
-------- -------- --------
(33) Total stockholders' equity 4,202 4,055 3,840 4 9
-------- -------- --------
Total liabilities and
(34) stockholders' equity $ 48,978 $ 50,316 $ 52,324 (3)% (6)%
-------- -------- -------- ---- ----
-------- -------- -------- ---- ----
- ----------------------------------------------------------------------------------------------------------
</TABLE>
-7-
<PAGE>
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Quarter ended March 31,
----------------------
(in millions) 1996 1995
- ------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF QUARTER $ 4,055 $ 3,911
Net income 264 233
Common stock issued under employee benefit and
dividend reinvestment plans 7 37
Common stock repurchased (6) (326)
Preferred stock dividends (10) (10)
Common stock dividends (62) (60)
Change in investment securities valuation
allowance (46) 55
-------- --------
Balance, end of quarter $ 4,202 $ 3,840
-------- --------
-------- --------
- ------------------------------------------------------------------------
</TABLE>
LOANS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31, December 31, March 31,
(in millions) 1996 1995 1995
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial (1) $ 9,393 $ 9,750 $ 8,348
Real estate 1-4 family first mortgage (2) 4,346 4,448 5,025
Other real estate mortgage 8,274 8,263 8,078
Real estate construction 1,312 1,366 1,036
Consumer:
Real estate 1-4 family junior lien mortgage 3,303 3,358 3,312
Credit card 3,928 4,001 3,220
Other revolving credit and monthly payment 2,590 2,576 2,305
-------- -------- --------
Total consumer 9,821 9,935 8,837
Lease financing 1,991 1,789 1,382
Foreign 30 31 31
------- -------- --------
Total loans $ 35,167 $ 35,582 $ 32,737
-------- -------- --------
-------- -------- --------
- ----------------------------------------------------------------------------------
</TABLE>
(1) Includes loans to real estate developers of $576 million, $700 million and
$519 million at March 31, 1996, December 31, 1995 and March 31, 1995,
respectively.
(2) Excludes mortgage loans held for sale at March 31, 1995 of $3,940 million,
net of an $83 million write-down to lower of cost or estimated market.
<PAGE>
-8-
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------
Quarter ended
-------------
MARCH 31, December 31, March 31,
(in millions) 1996 1995 1995
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $ 1,794 $ 1,872 $ 2,082
Loan charge-offs:
Commercial (1) (13) (23) (7)
Real estate 1-4 family first mortgage (4) (3) (3)
Other real estate mortgage (3) (3) (22)
Real estate construction (1) (5) (2)
Consumer:
Real estate 1-4 family junior lien
mortgage (4) (4) (3)
Credit card (86) (69) (38)
Other revolving credit and monthly
payment (20) (17) (10)
-------- -------- --------
Total consumer (110) (90) (51)
Lease financing (6) (4) (4)
-------- -------- --------
Total loan charge-offs (137) (128) (89)
-------- -------- --------
Loan recoveries:
Commercial (2) 5 7 9
Real estate 1-4 family first mortgage 3 -- 1
Other real estate mortgage 4 33 6
Real estate construction 1 -- --
Consumer:
Real estate 1-4 family junior lien
mortgage 1 1 1
Credit card 5 3 3
Other revolving credit and monthly
payment 3 5 2
-------- -------- --------
Total consumer 9 9 6
Lease financing 2 1 2
-------- -------- --------
Total loan recoveries 24 50 24
-------- -------- --------
Total net loan charge-offs (113) (78) (65)
-------- -------- --------
Balance, end of quarter $ 1,681 $ 1,794 $ 2,017
-------- -------- --------
-------- -------- --------
Total net loan charge-offs as a percentage
of average loans (annualized) (3) 1.30% .90% .72%
-------- -------- --------
-------- -------- --------
Allowance as a percentage of total loans (3) 4.78% 5.04% 6.16%
-------- -------- --------
-------- -------- --------
- ----------------------------------------------------------------------------------
</TABLE>
(1) There were no charge-offs of loans to real estate developers for all
periods presented.
(2) Includes recoveries from loans to real estate developers of $1 million, $1
million and none in the quarters ended March 31, 1996, December 31, 1995
and March 31, 1995, 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-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MARCH 31, December 31, March 31,
(in millions) 1996 1995 1995
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Nonaccrual loans:
Commercial (1) $ 120 $ 112 $ 79
Real estate 1-4 family first mortgage 61 64 71
Other real estate mortgage 289 307 324
Real estate construction 44 46 77
Consumer:
Real estate 1-4 family junior lien
mortgage 11 8 12
Other revolving credit and monthly
payment -- 1 3
------ ------ ------
Total nonaccrual loans 525 538 566
Restructured loans 12 14 15
------ ------ ------
Nonaccrual and restructured loans 537 552 581
As a percentage of total loans (2) 1.5% 1.6% 1.8%
Foreclosed assets 198 186 273
Real estate investments (3) 7 12 17
------ ------ ------
Total nonaccrual and restructured loans
and other assets $ 742 $ 750 $ 871
------ ------ ------
------ ------ ------
- --------------------------------------------------------------------------------
</TABLE>
(1) Includes loans to real estate developers of $16 million, $18 million and
$28 million at March 31, 1996, December 31, 1995 and March 31, 1995,
respectively.
(2) Total loans exclude mortgage loans held for sale at 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 $115 million, $95
million and $64 million at March 31, 1996, December 31, 1995 and March 31,
1995, respectively.
<TABLE>
<CAPTION>
QUARTERLY CHANGES IN NONACCRUAL LOANS (1)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MARCH 31, December 31, March 31,
(in millions) 1996 1995 1995
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $ 538 $ 586 $ 567
New loans placed on nonaccrual 113 106 127
Loans purchased -- -- 13
Charge-offs (9) (27) (28)
Payments (54) (71) (55)
Transfers to foreclosed assets (30) (22) (36)
Loans returned to accrual (33) (34) (24)
Other additions -- -- 2
------ ------ ------
BALANCE, END OF QUARTER $ 525 $ 538 $ 566
------ ------ ------
------ ------ ------
- --------------------------------------------------------------------------------
</TABLE>
(1) The March 31, 1996 amounts are preliminary.
<PAGE>
-10-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Quarter
ended March 31, %
------------------
(in millions) 1996 1995 Change
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Service charges on deposit accounts $ 122 $ 118 3%
Fees and commissions:
Credit card membership and other
credit card fees 26 19 37
Charges and fees on loans 17 11 55
Debit and credit card merchant fees 15 14 7
Shared ATM network fees 13 12 8
Mutual fund and annuity sales fees 8 10 (20)
All other 39 35 11
------ ------
Total fees and commissions 118 101 17
Trust and investment services income:
Asset management and custody fees 35 31 13
Mutual fund management fees 21 14 50
All other 3 10 (70)
------ ------
Total trust and investment
services income 59 55 7
Investment securities gains (losses) -- (15) 100
Income from equity investments accounted
for by the:
Cost method 35 19 84
Equity method 2 8 (75)
Check printing charges 9 11 (18)
Gains (losses) from dispositions of
operations 5 (1) --
Gains (losses) on sales of loans 4 (67) --
All other -- 13 (100)
------ ------
Total $ 354 $ 242 46%
------ ------ ---
------ ------ ---
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Quarter
ended March 31, %
------------------
(in millions) 1996 1995 Change
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Salaries $ 181 $ 172 5%
Incentive compensation 32 27 19
Employee benefits 54 53 2
Equipment 55 47 17
Net occupancy 53 53 --
Contract services 42 25 68
Telecommunications 16 13 23
Postage 15 12 25
Operating losses 14 15 (7)
Advertising and promotion 13 14 (7)
Outside professional services 13 10 30
Certain identifiable intangibles 12 14 (14)
Stationery and supplies 10 9 11
Goodwill 9 9 --
Travel and entertainment 9 7 29
Check printing 7 7 --
Security 6 5 20
Escrow and collection agency fees 4 4 --
Outside data processing 3 3 --
Foreclosed assets 2 (4) --
Federal deposit insurance 1 24 (96)
All other 16 18 (11)
------ ------
Total $ 567 $ 537 6%
------ ------ ---
------ ------ ---
- --------------------------------------------------------------------------------
</TABLE>
<PAGE>
-11-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Quarter ended March 31,
---------------------------------------------------------
1996 1995
--------------------------- ---------------------------
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 $ 125 5.68% $ 2 $ 48 5.58% $ 1
Investment securities:
At fair value (2):
(2) U.S. Treasury securities 1,356 5.52 18 385 6.69 6
Securities of U.S. government agencies
(3) and corporations 4,991 5.95 75 1,211 5.75 18
(4) Private collateralized mortgage obligations 2,078 6.05 31 1,090 6.35 20
(5) Other securities 225 7.70 4 65 14.56 1
------- ----- ------- -----
(6) Total investment securities at fair value 8,650 5.95 128 2,751 6.24 45
At cost:
(7) U.S. Treasury securities -- -- -- 1,647 4.83 20
Securities of U.S. government agencies
(8) and corporations -- -- -- 5,234 6.03 78
(9) Private collateralized mortgage obligations -- -- -- 1,285 5.92 19
(10) Other securities -- -- -- 164 6.67 3
------- ----- ------- -----
(11) Total investment securities at cost -- -- -- 8,330 5.79 120
------- ----- ------- -----
(12) Total investment securities 8,650 5.95 128 11,081 5.90 165
Loans:
(13) Commercial 9,308 9.96 231 8,055 9.77 194
(14) Real estate 1-4 family first mortgage 4,400 7.56 83 9,042 7.12 161
(15) Other real estate mortgage 8,197 9.23 188 8,123 9.59 192
(16) Real estate construction 1,327 9.98 33 1,019 10.17 26
Consumer:
(17) Real estate 1-4 family junior lien mortgage 3,334 8.50 71 3,323 8.65 72
(18) Credit card 3,933 15.56 153 3,125 15.78 123
(19) Other revolving credit and monthly payment 2,598 11.19 71 2,268 10.42 59
------- ----- ------- -----
(20) Total consumer 9,865 12.02 295 8,716 11.67 254
(21) Lease financing 1,897 9.20 44 1,351 9.17 31
(22) Foreign 31 6.96 1 28 -- --
------- ----- ------- -----
(23) Total loans 35,025 10.03 875 36,334 9.51 858
(24)Other 69 6.34 1 58 5.60 1
------- ----- ------- -----
(25) Total earning assets $43,869 9.21 1,006 $47,521 8.65 1,025
------- ----- ------- -----
------- -------
FUNDING SOURCES
Interest-bearing liabilities:
Deposits:
(26) Interest-bearing checking $ 856 .99 2 $ 4,365 1.00 11
(27) Market rate and other savings 17,991 2.52 113 16,121 2.56 101
(28) Savings certificates 8,636 5.24 113 7,346 4.89 89
(29) Other time deposits 341 7.26 6 358 2.45 2
(30) Deposits in foreign offices 524 5.42 7 2,665 5.87 39
------- ----- ------- -----
(31) Total interest-bearing deposits 28,348 3.41 241 30,855 3.18 242
Federal funds purchased and securities sold
(32) under repurchase agreements 2,706 5.36 36 3,887 5.82 56
(33) Commercial paper and other short-term borrowings 405 5.27 5 687 5.89 10
(34) Senior debt 1,710 6.26 26 1,640 6.93 28
(35) Subordinated debt 1,266 6.85 22 1,469 6.60 24
------- ----- ------- -----
(36) Total interest-bearing liabilities 34,435 3.86 330 38,538 3.78 360
(37)Portion of noninterest-bearing funding sources 9,434 -- -- 8,983 -- --
------- ----- ------- -----
(38) Total funding sources $43,869 3.03 330 $47,521 3.06 360
------- ----- ------- -----
------- -------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(39) A TAXABLE-EQUIVALENT BASIS (3) 6.18% $ 676 5.59% $ 665
---- ----- ---- -----
---- ----- ---- -----
NONINTEREST-EARNING ASSETS
(40)Cash and due from banks $ 2,873 $ 2,587
(41)Other 2,392 2,282
------- -------
Total noninterest-earning assets $ 5,265 $ 4,869
------- -------
------- -------
NONINTEREST-BEARING FUNDING SOURCES
(42)Deposits $ 9,336 $ 8,867
(43)Other liabilities 1,277 1,141
(44)Preferred stockholders' equity 489 489
(45)Common stockholders' equity 3,597 3,355
Noninterest-bearing funding sources used to
(46) fund earning assets (9,434) (8,983)
------- -------
------- -------
(47) Net noninterest-bearing funding sources $ 5,265 $ 4,869
------- -------
------- -------
(48)TOTAL ASSETS $49,134 $52,390
------- -------
------- -------
</TABLE>
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
(1) The average prime rate of Wells Fargo Bank was 8.33% and 8.83% for
the quarters ended March 31, 1996 and 1995, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.40% and 6.29%
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 $8,614
million and $2,880 million for the quarters ended March 31, 1996 and
1995, respectively.
(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 March 31, 1996 and 1995.
<PAGE>
- 12 -
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SUMMARY OF FIRST QUARTER RESULTS FIRST INTERSTATE BANCORP
- --------------------------------------------------------------------------------
1996 1995
(dollar amounts in millions, except --------- ---------
per share data) March 31 March 31
- --------------------------------------------------------------------------------
<S> <C> <C>
First Quarter
Net Income (Loss) $ (22.5) $ 212.0
Per share (0.39) 2.66
Net interest income* 618.1 637.5
Noninterest income 304.8 268.4
Noninterest expense 807.7 551.7
Provision for credit losses - -
Net chargeoffs 33.5 37.2
Return on assets (0.17)% 1.52 %
Return on equity (common equity) (3.29)% 25.80 %
Net interest margin* 5.46 % 5.31 %
Balance Sheet
Total Assets $ 54,593 $ 56,956
Total Deposits 47,410 48,364
Total Loans (net of unearned interest
and fees) 35,578 35,096
Nonperforming assets (nonaccrual and
renegotiated loans and ORE) 255 262
Allowance for credit losses 770 921
Nonperforming assets/total assets 0.47 % 0.46 %
Nonperforming assets/loans + ORE 0.72 % 0.75 %
Nonperforming loans/loans 0.57 % 0.54 %
Allowance/nonperforming loans 383 % 490 %
Allowance for credit losses/total loans 2.17 % 2.62 %
Leverage capital ratio (1996 estimated) 6.4 % 5.24 %
Tier 1 capital ratio (1996 estimated) 7.9 % 6.91 %
Total capital ratio (1996 estimated) 10.8 % 10.05 %
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
* Taxable-equivalent basis
###
<PAGE>
- 13 -
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS FIRST INTERSTATE BANCORP
- --------------------------------------------------------------------------------
1996 1995
---------- -----------
(dollar amounts in millions, First First
except per share data) Quarter Quarter
- --------------------------------------------------------------------------------
<S> <C> <C>
INTEREST INCOME
Loans, including fees $ 748.7 $ 730.5
Trading account 2.0 1.6
Investment Securities:
Held-to-maturity securities 1.5 177.4
Available-for-sale securities 122.0 5.1
Other interest income 12.3 6.9
----------- -----------
Total Interest Income 886.5 921.5
INTEREST EXPENSE
Deposits 241.4 225.2
Short term borrowings 4.9 35.2
Long term debt 27.0 29.4
----------- -----------
Total Interest Expense 273.3 289.8
----------- -----------
NET INTEREST INCOME 613.2 631.7
Provision for credit losses - -
----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT LOSSES 613.2 631.7
NONINTEREST INCOME
Service charges on deposit accounts 150.2 147.1
Trust fees 41.2 39.4
Other charges, commissions and fees 50.0 34.0
Merchant credit card fees 13.2 12.3
Investment securities gains 4.7 0.5
Other income 45.5 35.1
----------- -----------
Total Noninterest Income 304.8 268.4
NONINTEREST EXPENSES
Salaries and benefits 274.0 273.4
Net occupancy expenses 102.9 100.1
Communications 40.8 33.9
Outside contract fees 36.9 34.0
FDIC assessments 2.4 27.9
Amortization of intangibles 15.1 14.9
Office supplies 9.8 14.0
Advertising 12.4 10.1
Other real estate (2.1) -
Restructuring - 4.8
Merger related 251.3 -
Other expenses 64.2 38.6
----------- -----------
Total Noninterest Expenses 807.7 551.7
----------- -----------
INCOME BEFORE INCOME TAXES 110.3 348.4
Applicable income taxes 132.8 136.4
----------- -----------
NET INCOME (LOSS) $ (22.5) $ 212.0
----------- -----------
----------- -----------
- --------------------------------------------------------------------------------
Net income (loss) applicable to common stock $ (30.8) $ 203.7
Average number of common shares outstanding
(in thousands) 78,212 76,464
Earnings per common share:
Net (loss) income $ (0.39) $ 2.66
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
NOTE: Certain prior year balances have been reclassified to conform to current
year classifications.
<PAGE>
- 14 -
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET FIRST INTERSTATE BANCORP
- ------------------------------------------------------------------------------------------------------------------------------------
1996 1995
----------- --------------------------------
(dollar amounts in millions) March 31 December 31 March 31
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 6,016 $ 7,129 $ 6,230
Time deposits, due from banks 14 14 27
Federal funds sold and securities
purchased under agreements to resell 2,074 1,774 265
Trading account securities 150 54 52
Investment Securities:
Held-to-maturity securities 88 88 12,204
Available-for-sale securities 7,676 9,010 127
------------ ------------ ------------
Total Investment Securities 7,764 9,098 12,331
Loans (net) 35,578 36,673 35,096
Less: Allowance for credit losses 770 804 921
------------ ------------ ------------
Net Loans 34,808 35,869 34,175
Bank premises and equipment 1,258 1,282 1,199
Customers' liability for acceptances 128 94 31
Other assets 2,381 2,757 2,646
------------ ------------ ------------
Total Assets $ 54,593 $ 58,071 $ 56,956
------------ ------------ ------------
------------ ------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest bearing $ 16,817 $ 19,083 $ 16,644
Interest bearing 30,593 31,102 31,720
------------ ------------ ------------
Total Deposits 47,410 50,185 48,364
Short term borrowings 346 1,194 2,361
Acceptances outstanding 128 94 31
Accounts payable and accrued liabilities 1,332 1,089 1,037
Long term debt 1,234 1,355 1,470
------------ ------------ ------------
Total Liabilities 50,450 53,917 53,263
Shareholders' equity:
Preferred Stock 350 350 350
Common Stock, par value $2 a share: (in thousands)
Authorized: 250,000 shares;
Issued: 84,286 shares 169 169 169
Capital surplus 1,639 1,682 1,683
Retained earnings 2,493 2,583 2,113
Unrealized gain (loss) on
available-for-sale securities, net of tax (28) 6 1
------------ ------------ ------------
4,623 4,790 4,316
Less Common Stock in treasury, at cost: (in thousands)
March 31, 1996 - 6,304 shares
December 31, 1995 - 8,357 shares
March 31, 1995 - 8,452 shares 480 636 623
------------ ------------ ------------
Total Shareholders' Equity 4,143 4,154 3,693
------------ ------------ ------------
Total Liabilities and Shareholders' Equity $ 54,593 $ 58,071 $ 56,956
------------ ------------ ------------
------------ ------------ ------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
- 15 -
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
LOANS AND DEPOSITS FIRST INTERSTATE BANCORP
- ------------------------------------------------------------------------------------------------------------------------------------
1996 1995
----------- --------------------------------
(dollar amounts in millions) March 31 December 31 March 31
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOANS:
Commercial, financial and agricultural $ 10,128 $ 10,917 $ 9,636
Real estate construction 1,071 1,063 1,080
Real estate mortgage 10,871 11,211 11,458
Instalment 12,860 12,854 12,400
Foreign 185 185 160
Lease financing 597 587 516
------------ ------------ ------------
Total Loans 35,712 36,817 35,250
Unearned income and deferred fees (134) (144) (154)
------------ ------------ ------------
Net Loans $ 35,578 $ 36,673 $ 35,096
------------ ------------ ------------
------------ ------------ ------------
DEPOSITS:
Demand and other noninterest
bearing time deposits $ 16,817 $ 19,083 $ 16,644
Regular savings 5,336 5,359 5,994
Market interest demand 6,313 6,479 6,689
Market interest savings 10,018 9,948 10,657
Other savings and time under $100,000 7,578 8,039 7,213
Large CDs, other money market funds 1,348 1,277 1,167
------------ ------------ ------------
Total Deposits $ 47,410 $ 50,185 $ 48,364
------------ ------------ ------------
------------ ------------ ------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Exhibit 99(b)
FOR IMMEDIATE RELEASE
Tues., April 16, 1996
WELLS FARGO ANNOUNCES SHARE REPURCHASE PROGRAM AND DECLARES DIVIDEND ON COMMON
STOCK
The Board of Directors of Wells Fargo & Co. (NYSE:WFC) today authorized
the repurchase of up to 9.6 million shares of the Company's outstanding common
stock, representing approximately 10 percent of Wells Fargo's outstanding common
shares. This action reflects the Company's strong capital position and will
continue to allow Wells Fargo to effectively manage its overall capital position
in the best interests of its shareholders. The Company announced no date for
completing the program and will purchase shares from time to time, subject to
market conditions. This authorization continues a repurchase program begun in
1994.
The Company has bought in the past, and will continue to buy, shares to offset
stock issued or expected to be issued under its employee benefit and dividend
reinvestment plans. These repurchases will not be counted as part of the 9.6
million shares authorized today for repurchase.
The Board of Directors also declared a regular quarterly dividend on common
stock of $1.30 per share. The dividend will be payable May 20, 1996 to
shareholders of record at the close of business April 30, 1996.
###
