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Previous: WD 40 CO, NT 10-Q, 1997-04-15 |
Next: GREENBRIAR CORP, 10KSB, 1997-04-15 |
<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 15, 1997
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 March 31,
1997. Final financial statements with additional analyses will be
filed as part of the Company's Form 10-Q in May 1997.
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 March 31, 1997.
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 15, 1997.
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 15, 1997 FOR THE PERIOD ENDED MARCH 31, 1997 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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 8,530
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 209
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 12,634
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 65,436
<ALLOWANCE> 1,922
<TOTAL-ASSETS> 101,863
<DEPOSITS> 76,427
<SHORT-TERM> 1,926
<LIABILITIES-OTHER> 3,642
<LONG-TERM> 6,177
0
425
<COMMON> 450
<OTHER-SE> 12,720
<TOTAL-LIABILITIES-AND-EQUITY> 101,863
<INTEREST-LOAN> 1,549
<INTEREST-INVEST> 208
<INTEREST-OTHER> 16
<INTEREST-TOTAL> 1,773
<INTEREST-DEPOSIT> 422
<INTEREST-EXPENSE> 561
<INTEREST-INCOME-NET> 1,212
<LOAN-LOSSES> 105
<SECURITIES-GAINS> 4
<EXPENSE-OTHER> 1,117
<INCOME-PRETAX> 630
<INCOME-PRE-EXTRAORDINARY> 339
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 339
<EPS-PRIMARY> 3.62
<EPS-DILUTED> 0
<YIELD-ACTUAL> 6.14
<LOANS-NON> 645
<LOANS-PAST> 0
<LOANS-TROUBLED> 10
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 2,018
<CHARGE-OFFS> 270
<RECOVERIES> 69
<ALLOWANCE-CLOSE> 1,922
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE>
Cindy Koehn 415/396-3099
Investor Relations
FOR IMMEDIATE RELEASE
Tues., April 15, 1997
WELLS FARGO REPORTS FIRST QUARTER EARNINGS
FIRST QUARTER PER SHARE EARNINGS OF $3.62 VS. $1.12 IN FOURTH QUARTER 1996
Wells Fargo & Co. (NYSE:WFC) today reported net income of $339 million for
the first quarter 1997. Per share earnings for the quarter were $3.62. Return
on average assets (ROA) was 1.31 percent and return on average common equity
(ROE) was 10.02 percent for the quarter.
Cash earnings for the first quarter of 1997 were $4.88 per share. Cash ROA
was 1.90 percent; cash ROE was 36.67 percent. Cash earnings are earnings before
the amortization of goodwill and nonqualifying core deposit intangibles.
"We're pleased that we've met our expense reduction target this quarter,"
said Chairman Paul Hazen. "We are now half-way to our goal of $800 million in
gross annual expense reductions. However, due to runoff in our loan and deposit
portfolios we are not where we would like to be with respect to revenue."
Since the Company's results for the first quarter of 1997 reflect the
effects of the First Interstate merger which was completed on April 1, 1996,
these results are not comparable to the reported results for the first quarter
of 1996.
Net interest income on a taxable-equivalent basis was $1.2 billion in the
first quarter of 1997. The Company's net interest margin for the first quarter
of 1997 was 6.14 percent.
Noninterest income (NII) in the first quarter of 1997 was $640 million.
Noninterest expense (NIE) in the first quarter of 1997 was $1.1 billion.
-more-
<PAGE>
2/WF Earnings
The loan loss provision was $105 million for the first quarter. Net
charge-offs in the first quarter of 1997 totaled $201 million, or 1.23 percent
of average loans (annualized). The largest category of net charge-offs was
credit card loans ($104 million).
At March 31, 1997, the allowance for loan losses equaled 2.94 percent of
total loans. Total nonaccrual and restructured loans were $655 million at March
31, 1997. Foreclosed assets were $207 million at March 31, 1997.
At March 31, 1997, the Company's preliminary risk-based capital ratios were
12.00 percent for total risk-based capital and 7.75 percent for Tier 1 risk-
based capital, exceeding the minimum regulatory guidelines of 8 percent and 4
percent, respectively. The leverage ratio at March 31, 1997 was 6.60 percent.
The ratio of common equity to total assets at March 31, 1997 was 12.93 percent.
________________
The following appears in accordance with the Securities Litigation Reform Act:
This press release includes forward-looking statements that involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking statements. Those
factors include fluctuations in interest rates, inflation, government
regulations, the progress of integrating First Interstate and economic
conditions and competition in the geographic and business areas in which the
Company conducts its operations.
###
VISIT WELLS FARGO ON THE WORLD WIDE WEB AT http://www.wellsfargo.com
<PAGE>
-3-
Wells Earnings
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA -- NEWS RELEASE
- ------------------------------------------------------------------------------------------------------------------------
% Change
Quarter ended March 31, 1997 from
--------------------------------------------------------------------
MARCH 31, Dec. 31, March 31, Dec. 31, March 31,
(in millions) 1997 1996 1996 1996 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FOR THE QUARTER
Net income $ 339 $ 123 $ 264 176% 28%
Net income applicable to common stock 329 103 254 219 30
Per common share
Net income $ 3.62 $ 1.12 $ 5.39 223 (33)
Dividends declared 1.30 1.30 1.30 -- --
Average common shares outstanding 90.8 92.2 47.0 (2) 93
Profitability ratios (annualized)
Net income to average total assets (ROA) 1.31% 0.45% 2.16% 191 (39)
Net income applicable to common stock to
average common stockholders' equity (ROE) 10.02 2.99 28.34 235 (65)
Efficiency ratio (1) 60.3% 82.0% 55.1% (26) 9
Average loans $ 65,493 $ 67,097 $ 35,025 (2) 87
Average assets 105,430 107,308 49,134 (2) 115
Average core deposits 77,622 80,776 36,819 (4) 111
Net interest margin 6.14% 6.14% 6.18% -- (1)
NET INCOME AND RATIOS EXCLUDING
GOODWILL AND NONQUALIFYING CORE DEPOSIT
INTANGIBLE AMORTIZATION AND BALANCES
(CASH OR TANGIBLE) (2)
Net income applicable to common stock $ 443 $ 222 $ 262 100 69
Net income per common share 4.88 2.41 5.58 102 (13)
ROA 1.90% 0.97% 2.25% 96 (16)
ROE 36.67 16.99 32.74 116 12
Efficiency ratio 52.9 74.0 54.3 (29) (3)
AT QUARTER END
Investment securities $ 12,634 $ 13,505 $ 8,435 (6) 50
Loans 65,436 67,389 35,167 (3) 86
Allowance for loan losses 1,922 2,018 1,681 (5) 14
Goodwill 7,312 7,322 373 -- --
Assets 101,863 108,888 48,978 (6) 108
Core deposits 76,156 81,581 37,414 (7) 104
Common stockholders' equity 13,170 13,512 3,713 (3) 255
Stockholders' equity 13,595 14,112 4,202 (4) 224
Capital ratios
Common stockholders' equity to assets 12.93% 12.41% 7.58% 4 71
Stockholders' equity to assets 13.35 12.96 8.58 3 56
Risk-based capital (3)
Tier 1 capital 7.75 7.68 9.40 1 (18)
Total capital 12.00 11.70 13.04 3 (8)
Leverage (3) 6.60 6.65 7.91 (1) (17)
Book value per common share $ 146.37 $ 147.72 $ 79.01 (1) 85
Staff (active, full-time equivalent) 34,486 36,902 18,748 (7) 84
COMMON STOCK PRICE
High $ 319.25 $ 289.88 $ 261.25 10 22
Low 271.00 250.25 203.13 8 33
Quarter end 284.13 269.75 261.25 5 9
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The efficiency ratio is defined as noninterest expense divided by the total
of net interest income and noninterest income.
(2) Nonqualifying core deposit intangible (CDI) amortization and average
balance excluded from these calculations are, with the exception of the
efficiency ratio, net of applicable taxes. The after-tax amounts for the
amortization and average balance of nonqualifying CDI were $32 million and
$1,095 million for the quarter ended March 31, 1997, respectively.
Goodwill amortization and average balance (which are not tax effected) were
$83 million and $7,306 million for the quarter ended March 31, 1997,
respectively.
(3) The March 31, 1997 ratios are preliminary.
<PAGE>
-4-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
-------------------------------------------------------------------------------------------------------------------
Quarter
ended March 31,
---------------------- %
(in millions) 1997 1996 Change
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTEREST INCOME
Federal funds sold and securities purchased
(1) under resale agreements $ 5 $ 2 150%
(2) Investment securities 208 128 63
(3) Loans 1,549 875 77
(4) Other 11 1 --
------- -------
(5) Total interest income 1,773 1,006 76
------- -------
INTEREST EXPENSE
(6) Deposits 422 241 75
Federal funds purchased and securities sold
(7) under repurchase agreements 31 36 (14)
(8) Commercial paper and other short-term borrowings 2 5 (60)
(9) Senior and subordinated debt 81 48 69
Guaranteed preferred beneficial interests in
(10) Company's subordinated debentures 25 -- --
------- -------
(11) Total interest expense 561 330 70
------- -------
(12) NET INTEREST INCOME 1,212 676 79
(13) Provision for loan losses 105 -- --
------- -------
Net interest income after
(14) provision for loan losses 1,107 676 64
------- -------
NONINTEREST INCOME
(15) Service charges on deposit accounts 221 122 81
(16) Fees and commissions 214 118 81
(17) Trust and investment services income 109 59 85
(18) Investment securities gains 4 -- --
(19) Other 92 55 67
------- -------
(20) Total noninterest income 640 354 81
------- -------
NONINTEREST EXPENSE
(21) Salaries 341 181 88
(22) Incentive compensation 41 32 28
(23) Employee benefits 95 54 76
(24) Equipment 94 55 71
(25) Net occupancy 102 53 92
(26) Goodwill 83 9 822
(27) Core deposit intangible 62 10 520
(28) Other 299 173 73
------- -------
(29) Total noninterest expense 1,117 567 97
------- -------
INCOME BEFORE INCOME TAX
(30) EXPENSE 630 463 36
(31) Income tax expense 291 199 46
------- -------
(32) NET INCOME $ 339 $ 264 28%
======= ======= =======
NET INCOME APPLICABLE TO
(33) COMMON STOCK $ 329 $ 254 30%
======= ======= =======
PER COMMON SHARE
(34) Net income $ 3.62 $ 5.39 (33)%
======= ======= =======
(35) Dividends declared $ 1.30 $ 1.30 --%
======= ======= =======
(36) Average common shares outstanding 90.8 47.0 93%
======= ======= =======
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-5-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
-------------------------------------------------------------------------------------------------------------------
% Change
March 31, 1997 from
--------------------
MAR. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
(in millions) 1997 1996 1996 1996 1996
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
(1) Cash and due from banks $ 8,530 $ 11,736 $ 2,721 (27)% 213%
Federal funds sold and securities
(2) purchased under resale agreements 209 187 49 12 327
(3) Investment securities at fair value 12,634 13,505 8,435 (6) 50
(4) Loans 65,436 67,389 35,167 (3) 86
(5) Allowance for loan losses 1,922 2,018 1,681 (5) 14
-------- -------- --------
(6) Net loans 63,514 65,371 33,486 (3) 90
-------- -------- --------
(7) Due from customers on acceptances 96 197 79 (51) 22
(8) Accrued interest receivable 611 665 316 (8) 93
(9) Premises and equipment, net 2,310 2,406 859 (4) 169
(10) Core deposit intangible 1,901 2,038 156 (7) --
(11) Goodwill 7,312 7,322 373 -- --
(12) Other assets 4,746 5,461 2,504 (13) 90
-------- -------- --------
(13) Total assets $101,863 $108,888 $ 48,978 (6)% 108%
======== ======== ======== === ===
LIABILITIES
(14) Noninterest-bearing deposits $ 25,337 $ 29,073 $ 9,740 (13)% 160%
(15) Interest-bearing deposits 51,090 52,748 28,066 (3) 82
-------- -------- --------
(16) Total deposits 76,427 81,821 37,806 (7) 102
Federal funds purchased and securities
(17) sold under repurchase agreements 1,685 2,029 2,243 (17) (25)
(18) Commercial paper and other short-term borrowings 241 401 225 (40) 7
(19) Acceptances outstanding 96 197 79 (51) 22
(20) Accrued interest payable 242 171 110 42 120
(21) Other liabilities 3,400 3,947 1,166 (14) 192
(22) Senior debt 1,940 2,120 1,881 (8) 3
(23) Subordinated debt 2,938 2,940 1,266 -- 132
Guaranteed preferred beneficial interests in
(24) Company's subordinated debentures 1,299 1,150 -- 13 --
STOCKHOLDERS' EQUITY
(25) Preferred stock 425 600 489 (29) (13)
Common stock - $5 par value,
authorized 150,000,000 shares;
issued and outstanding 89,977,610 shares,
(26) 91,474,425 shares and 46,999,455 shares 450 457 235 (2) 91
(27) Additional paid-in capital 9,801 10,287 1,136 (5) 763
(28) Retained earnings 2,959 2,749 2,366 8 25
(29) Cumulative foreign currency translation adjustments -- (4) (4) (100) (100)
(30) Investment securities valuation allowance (40) 23 (20) -- 100
-------- -------- --------
(31) Total stockholders' equity 13,595 14,112 4,202 (4) 224
-------- -------- --------
(32) Total liabilities and stockholders' equity $101,863 $108,888 $ 48,978 (6)% 108%
======== ======== ======== === ===
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-6-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
- --------------------------------------------------------------------------------------------------------------
Quarter ended March 31,
-----------------------
(in millions) 1997 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF QUARTER $14,112 $4,055
Net income 339 264
Common stock issued under employee benefit and
dividend reinvestment plans 24 7
Preferred stock redeemed (175) --
Common stock repurchased (517) (6)
Preferred stock dividends (10) (10)
Common stock dividends (119) (62)
Change in foreign currency translation adjustments 4 --
Change in investment securities valuation allowance (63) (46)
-------- --------
BALANCE, END OF QUARTER $13,595 $4,202
======== ========
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
LOANS
- --------------------------------------------------------------------------------------------------------------
MARCH 31, December 31, March 31,
(in millions) 1997 1996 1996
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Commercial $19,025 $19,515 $ 9,393
Real estate 1-4 family first mortgage 10,032 10,425 4,346
Other real estate mortgage 11,497 11,860 8,274
Real estate construction 2,243 2,303 1,312
Consumer:
Real estate 1-4 family junior lien mortgage 6,112 6,278 3,303
Credit card 5,232 5,462 3,928
Other revolving credit and monthly payment 7,984 8,374 2,590
-------- -------- --------
Total consumer 19,328 20,114 9,821
Lease financing 3,152 3,003 1,991
Foreign 159 169 30
-------- -------- --------
Total loans $65,436 $67,389 $35,167
======== ======== ========
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-7-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
- ------------------------------------------------------------------------------------------------------------------------
Quarter ended
--------------------------------------
MARCH 31, December 31, March 31,
(in millions) 1997 1996 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BALANCE, BEGINNING OF QUARTER $2,018 $2,137 $1,794
Sale of former First Interstate banks -- (11) --
Provision for loan losses 105 70 --
Loan charge-offs:
Commercial (69) (49) (13)
Real estate 1-4 family first mortgage (5) (6) (4)
Other real estate mortgage (8) (11) (3)
Real estate construction (1) (3) (1)
Consumer:
Real estate 1-4 family junior lien mortgage (6) (5) (4)
Credit card (115) (112) (86)
Other revolving credit and monthly payment (56) (62) (20)
-------- -------- --------
Total consumer (177) (179) (110)
Lease financing (10) (9) (6)
-------- -------- --------
Total loan charge-offs (270) (257) (137)
-------- -------- --------
Loan recoveries:
Commercial 13 24 5
Real estate 1-4 family first mortgage 1 2 3
Other real estate mortgage 22 14 4
Real estate construction 1 5 1
Consumer:
Real estate 1-4 family junior lien mortgage 2 2 1
Credit card 11 11 5
Other revolving credit and monthly payment 16 19 3
-------- -------- --------
Total consumer 29 32 9
Lease financing 3 2 2
-------- -------- --------
Total loan recoveries 69 79 24
-------- -------- --------
Total net loan charge-offs (201) (178) (113)
-------- -------- --------
BALANCE, END OF QUARTER $1,922 $2,018 $1,681
======== ======== ========
Total net loan charge-offs as a percentage
of average loans (annualized) 1.23% 1.04% 1.30%
======== ======== ========
Allowance as a percentage of total loans 2.94% 3.00% 4.78%
======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-8-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
- ------------------------------------------------------------------------------------------------------------------------
MARCH 31, December 31, March 31,
(in millions) 1997 1996 1996
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nonaccrual loans:
Commercial $199 $223 $120
Real estate 1-4 family first mortgage 97 99 61
Other real estate mortgage 306 349 289
Real estate construction 24 25 44
Consumer:
Real estate 1-4 family junior lien mortgage 16 15 11
Other revolving credit and monthly payment 1 1 --
Lease financing 2 2 --
-------- -------- --------
Total nonaccrual loans 645 714 525
Restructured loans 10 10 12
-------- -------- --------
Nonaccrual and restructured loans 655 724 537
As a percentage of total loans 1.0% 1.1% 1.5%
Foreclosed assets 207 219 198
Real estate investments (1) 5 4 7
-------- -------- --------
Total nonaccrual and restructured loans
and other assets $867 $947 $742
======== ======== ========
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) 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 $158 million,
$154 million and $115 million at March 31, 1997, December 31, 1996 and
March 31, 1996, respectively.
<PAGE>
-9-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
- ------------------------------------------------------------------------------------------------------------------------
Quarter
ended March 31,
--------------------- %
(in millions) 1997 1996 Change
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Service charges on deposit accounts $221 $122 81%
Fees and commissions:
Credit card membership and other credit card fees 45 26 73
Debit and credit card merchant fees 22 15 47
Charges and fees on loans 31 17 82
Shared ATM network fees 39 13 200
Mutual fund and annuity sales fees 16 8 100
All other 61 39 56
------ ------
Total fees and commissions 214 118 81
Trust and investment services income:
Asset management and custody fees 61 35 74
Mutual fund management fees 40 21 90
All other 8 3 167
------ ------
Total trust and investment services income 109 59 85
Investment securities gains 4 -- --
Income from equity investments accounted for by the:
Cost method 51 35 46
Equity method 16 2 700
Check printing charges 17 9 89
Gains from dispositions of operations 7 5 40
Gains on sales of loans 6 4 50
Losses on dispositions of premises and equipment (30) (11) 173
All other 25 11 127
------ ------
Total $640 $354 81%
====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NONINTEREST EXPENSE
- ------------------------------------------------------------------------------------------------------------------------
Quarter
ended March 31,
--------------------- %
(in millions) 1997 1996 Change
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Salaries $ 341 $181 88%
Incentive compensation 41 32 28
Employee benefits 95 54 76
Equipment 94 55 71
Net occupancy 102 53 92
Goodwill 83 9 822
Core deposit intangible:
Nonqualifying (1) 54 -- --
Qualifying 8 10 (20)
Contract services 56 42 33
Operating losses 42 14 200
Telecommunications 38 16 138
Postage 23 15 53
Security 22 6 267
Stationery and supplies 21 10 110
Check printing 15 7 114
Outside professional services 15 13 15
Travel and entertainment 14 9 56
Outside data processing 13 3 333
Advertising and promotion 13 13 --
Foreclosed assets (9) 2 --
All other 36 23 57
------ ------ ------
Total $1,117 $567 97%
====== ====== ======
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Amortization of core deposit intangibles acquired after February 1992 that
are subtracted from stockholders' equity in computing regulatory capital
for bank holding companies.
<PAGE>
-10-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)
-----------------------------------------------------------------------------------------------------------------------------
Quarter ended March 31,
--------------------------------------------------------------------
1997 1996
-------------------------------- --------------------------------
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 $ 374 5.43% $ 5 $ 125 5.68% $ 2
Investment securities at fair value (2):
(2) U.S. Treasury securities 2,916 6.04 43 1,356 5.52 18
Securities of U.S. government agencies
(3) and corporations 6,703 6.41 107 4,991 5.95 75
(4) Private collateralized mortgage obligations 3,134 6.57 52 2,078 6.05 31
(5) Other securities 368 6.35 6 225 7.70 4
-------- -------- -------- --------
(6) Total investment securities at fair value 13,121 6.36 208 8,650 5.95 128
Loans:
(7) Commercial 18,406 8.98 409 9,308 9.96 231
(8) Real estate 1-4 family first mortgage 10,236 7.41 189 4,400 7.56 83
(9) Other real estate mortgage 11,550 10.89 310 8,197 9.23 188
(10) Real estate construction 2,299 9.75 55 1,327 9.98 33
Consumer:
(11) Real estate 1-4 family junior lien mortgage 6,170 9.30 142 3,334 8.50 71
(12) Credit card 5,330 14.07 188 3,933 15.56 153
(13) Other revolving credit and monthly payment 8,271 9.27 189 2,598 11.19 71
-------- -------- -------- --------
(14) Total consumer 19,771 10.57 519 9,865 12.02 295
(15) Lease financing 3,079 8.84 68 1,897 9.20 44
(16) Foreign 152 7.34 3 31 6.96 1
-------- -------- -------- --------
(17) Total loans 65,493 9.57 1,553 35,025 10.03 875
(18) Other 706 6.25 11 69 6.34 1
-------- -------- -------- --------
(19) Total earning assets $ 79,694 8.99 1,777 $43,869 9.21 1,006
======== ======== ======== ========
FUNDING SOURCES
Deposits:
(20) Interest-bearing checking $ 1,913 1.14 5 $ 856 .99 2
(21) Market rate and other savings 34,103 2.55 214 17,991 2.52 113
(22) Savings certificates 15,518 5.05 193 8,636 5.24 113
(23) Other time deposits 180 3.94 2 341 7.26 6
(24) Deposits in foreign offices 559 5.13 7 524 5.42 7
-------- -------- -------- --------
(25) Total interest-bearing deposits 52,273 3.27 421 28,348 3.41 241
Federal funds purchased and securities sold
(26) under repurchase agreements 2,425 5.18 31 2,706 5.36 36
(27) Commercial paper and other short-term borrowings 230 5.07 2 405 5.27 5
(28) Senior debt 2,001 6.19 31 1,710 6.26 26
(29) Subordinated debt 2,939 6.92 51 1,266 6.85 22
Guaranteed preferred beneficial interests in Company's
(30) subordinated debentures 1,251 7.85 25 -- -- --
-------- -------- -------- --------
(31) Total interest-bearing liabilities 61,119 3.72 561 34,435 3.86 330
(32) Portion of noninterest-bearing funding sources 18,575 -- -- 9,434 -- --
-------- -------- -------- --------
(33) Total funding sources $ 79,694 2.85 561 $43,869 3.03 330
======== -------- ======== --------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
(34) A TAXABLE-EQUIVALENT BASIS (3) 6.14% $1,216 6.18% $ 676
====== ======== ====== ========
NONINTEREST-EARNING ASSETS
(35) Cash and due from banks $ 9,956 $ 2,873
(36) Goodwill 7,306 377
(37) Other 8,474 2,015
-------- --------
Total noninterest-earning assets $ 25,736 $ 5,265
======== ========
NONINTEREST-BEARING FUNDING SOURCES
(38) Deposits $ 26,088 $ 9,336
(39) Other liabilities 4,370 1,277
(40) Preferred stockholders' equity 548 489
(41) Common stockholders' equity 13,305 3,597
Noninterest-bearing funding sources used to
(42) fund earning assets (18,575) (9,434)
-------- --------
(43) Net noninterest-bearing funding sources $ 25,736 $ 5,265
======== ========
(44) TOTAL ASSETS $105,430 $49,134
======== ========
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average prime rate of Wells Fargo Bank was 8.27% and 8.33% for the
quarters ended March 31, 1997 and 1996, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 5.57% and 5.40%
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 $13,116 million
and $8,614 million for the quarters ended March 31, 1997 and 1996,
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, 1997 and 1996.
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