<PAGE>
EXHIBIT 99
Wells Fargo & Company's financial results for the quarter ended September 30,
2000
Wells Fargo & Company reported net income of $1,070 million for the
third quarter of 2000, compared with $962 million for the third quarter of
1999. Net income for the first nine months of 2000 was $3,119 million,
compared with $2,777 million in the same period a year ago. Diluted cash
earnings per common share were $.74 for the third quarter of 2000, up 14
percent from the $.65 per share reported in the third quarter of 1999, and a
record $2.16 for the first nine months of 2000, up 14 percent from the $1.89
per share for the same period of 1999. Cash earnings are earnings before the
amortization of goodwill and nonqualifying core deposit intangible. Cash
return on average assets (ROA) was 2.17 percent for the third quarter of 2000
and 2.22 percent for the first nine months of 2000, compared with 2.24
percent and 2.22 percent for the same periods a year ago. Cash return on
average common equity (ROE) was 35.77 percent for the third quarter of 2000
and 35.67 percent for the first nine months of 2000, compared with 34.33
percent and 34.04 percent for the same periods of 1999.
Diluted earnings per common share were $.64 for the third quarter of
2000, up 12 percent from the $.57 reported for the third quarter of 1999, and
$1.89 for the first nine months of 2000, up 15 percent from $1.65 for the
same period of 1999. ROA was 1.81 percent for the third quarter of 2000 and
1.86 percent for the first nine months of 2000, compared with 1.88 percent
for the third quarter of 1999 and 1.85 percent for the first nine months of
1999. ROE was 18.37 percent for the third quarter of 2000, and 18.54 percent
for the first nine months of 2000, compared with 17.97 percent and 17.60
percent for the same periods a year ago.
"We remain confident that, on an originally reported basis (excluding
the effect of pooling accounting treatment for the merger with First Security
Corporation on historical results), we will meet our cash EPS target of $2.91
for this year, despite incurring over $600 million in expenses in 2000 above
what we had anticipated at the time of the Wells Fargo/Norwest merger," said
President and CEO Dick Kovacevich. "These incremental expenses include higher
Internet investment and conversion costs from additional acquisitions. The
First Security merger was recently approved by the Federal Reserve and we
expect to close it by the end of October."
Net interest income on a taxable-equivalent basis was $2,596 million in
the third quarter of 2000, up 8 percent, compared with $2,399 million for the
third quarter of 1999. Net interest income was $7,536 million in the first
nine months of 2000, up 8 percent, compared with $7,007 million for the same
period a year ago. The net interest margin was 5.46 percent for the third
quarter of 2000 and 5.52 percent for the first nine months of 2000, compared
with 5.74 percent and 5.68 percent for the same periods of 1999.
Noninterest income was $2,189 million in the third quarter of 2000, up
21 percent, and $6,192 million in the first nine months of 2000, up 16
percent, compared with $1,809 million and $5,350 million in the same periods
of 1999. The increase in the third
<PAGE>
-2-
quarter of 2000 was largely due to increases in net venture capital gains of
$373 million and trust and investment fee revenue of $58 million, partially
offset by an increase in net losses of $177 million on securities in the
available for sale portfolio.
Noninterest expense was $2,694 million in the third quarter of 2000 and
$7,798 million in the first nine months of 2000, compared with $2,418 million
and $7,124 million in the same periods a year ago. The cash efficiency ratio
was 52.9 percent for the third quarter of 2000, compared with 54.1 percent
for the same quarter of 1999. For the first nine months of 2000, the cash
efficiency ratio was 53.4 percent, compared with 54.2 percent for the same
period a year ago. The efficiency ratio was 56.5 percent for the third
quarter of 2000 and 57.0 percent for the first nine months of 2000, compared
with 57.7 percent and 57.9 percent for the same periods of 1999.
The effective tax rate was 40 percent for the third quarter of 2000,
compared with 37 percent for the third quarter of 1999. The increase in the
quarterly effective tax rate was primarily due to the accrual of deferred
taxes of $36 million on undistributed earnings of a foreign subsidiary that
the Company intends to repatriate.
The provision for loan losses was $288 million for the third quarter of
2000 and $240 million for third quarter of 1999. Net charge-offs totaled $267
million, or .78 percent of average loans (annualized), in the third quarter
of 2000, compared with $241 million, or .85 percent of average loans
(annualized), for the third quarter of 1999. For the nine months ended
September 30, 2000, the loan loss provision was $803 million and net
charge-offs totaled $767 million, or .80 percent of average loans
(annualized), compared with a loan loss provision of $770 million and net
charge-offs of $775 million, or .94 percent of average loans (annualized),
for the same period of 1999.
At September 30, 2000, the allowance for loan losses of $3,417 million
was 2.42 percent of total loans, compared with 2.65 percent at December 31,
1999 and 2.76 percent at September 30, 1999. Total nonaccrual and
restructured loans were $902 million at September 30, 2000, compared with
$669 million at December 31, 1999 and $698 million at September 30, 1999.
On October 10, 2000, Wells Fargo received approval from the Federal
Reserve Board for the merger of Wells Fargo and First Security Corporation,
which is expected to close by the end of October. The merger will be
accounted for as a pooling of interests. Because the merger will occur after
September 30, 2000, this news release does not include the results of First
Security Corporation for the periods presented.
WELLS FARGO & COMPANY IS A DIVERSIFIED FINANCIAL SERVICES COMPANY WITH
$241 BILLION IN ASSETS, PROVIDING BANKING, INSURANCE, INVESTMENTS, MORTGAGE
AND CONSUMER FINANCE FROM ABOUT 5,400 STORES AND THE INTERNET
(wellsfargo.com) ACROSS NORTH AMERICA AND ELSEWHERE INTERNATIONALLY.
<PAGE>
-3-
---------------
The following appears in accordance with the Private Securities Litigation
Reform Act of 1995:
This discussion of financial results may contain forward-looking statements
about the Company, including descriptions of plans or objectives of its
management for future operations, products or services, and forecasts of its
revenues, earnings or other measures of economic performance. Forward-looking
statements can be identified by the fact that they do not relate strictly to
historical or current facts. They often include the words "believe,"
"expect," "anticipate," "intend," "plan," "estimate" or words of similar
meaning, or future or conditional verbs such as "will," "would," "should,"
"could" or "may."
Forward-looking statements, by their nature, are subject to risks and
uncertainties. A number of factors--many of which are beyond the Company's
control--could cause actual conditions, events or results to differ
significantly from those described in the forward-looking statements. The
Company's most recent annual and quarterly reports filed with the Securities
and Exchange Commission, including the Company's Form 10-Q for the quarter
ended June 30, 2000 and Form 10-K for the year ended December 31, 1999,
describe some of these factors, including certain credit, market,
operational, liquidity and interest rate risks associated with the Company's
business and operations. Other factors described in these reports include
changes in business and economic conditions, competition, fiscal and monetary
policies, disintermediation, legislation including the Gramm-Leach-Bliley Act
of 1999, the combination of the former Norwest Corporation and the former
Wells Fargo & Company, and other mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The
Company does not undertake to update forward-looking statements to reflect
circumstances or events that occur after the date the forward-looking
statements are made.
<PAGE>
-4-
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter Nine months
ended Sept. 30, % ended Sept. 30, %
--------------------- ----------------------
(in millions, except per share amounts) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD
Net income $ 1,070 $ 962 11% $ 3,119 $ 2,777 12 %
Net income applicable to common stock 1,066 953 12 3,106 2,751 13
Earnings per common share $ .65 $ .58 12 $ 1.91 $ 1.67 14
Diluted earnings per common share .64 .57 12 1.89 1.65 15
Dividends declared per common share .22 .20 10 .66 .585 13
Average common shares outstanding 1,637.7 1,648.6 (1) 1,626.0 1,649.0 (1)
Diluted common shares outstanding 1,657.0 1,667.1 (1) 1,642.9 1,667.9 (1)
Profitability ratios (annualized)
Net income to average total assets (ROA) 1.81% 1.88% (4) 1.86% 1.85% 1
Net income applicable to common stock to
average common stockholders' equity (ROE) 18.37 17.97 2 18.54 17.60 5
Total revenue $ 4,770 $ 4,191 14 $ 13,683 $ 12,309 11
Efficiency ratio (1) 56.5% 57.7% (2) 57.0% 57.9% (2)
Average loans $136,826 $112,262 22 $128,364 $ 109,714 17
Average assets 235,042 202,972 16 224,129 200,694 12
Average core deposits 135,713 126,759 7 131,430 127,481 3
Net interest margin 5.46% 5.74% (5) 5.52% 5.68% (3)
NET INCOME AND RATIOS EXCLUDING
GOODWILL AND NONQUALIFYING CORE DEPOSIT
INTANGIBLE AMORTIZATION AND BALANCES
("CASH") (2)
Net income applicable to common stock $ 1,223 $ 1,087 13 $ 3,552 $ 3,149 13
Earnings per common share .75 .66 14 2.18 1.91 14
Diluted earnings per common share .74 .65 14 2.16 1.89 14
ROA 2.17% 2.24% (3) 2.22% 2.22% --
ROE 35.77 34.33 4 35.67 34.04 5
Efficiency ratio 52.9 54.1 (2) 53.4 54.2 (1)
AT PERIOD END
Securities available for sale $ 35,703 $ 36,906 (3) $ 35,703 $ 36,906 (3)
Loans 141,377 114,709 23 141,377 114,709 23
Allowance for loan losses 3,417 3,167 8 3,417 3,167 8
Goodwill 8,899 7,620 17 8,899 7,620 17
Assets 241,119 207,060 16 241,119 207,060 16
Core deposits 137,692 125,160 10 137,692 125,160 10
Common stockholders' equity 24,927 21,722 15 24,927 21,722 15
Stockholders' equity 25,192 22,182 14 25,192 22,182 14
Capital ratios
Common stockholders' equity to assets 10.34% 10.49% (1) 10.34% 10.49% (1)
Stockholders' equity to assets 10.45 10.71 (2) 10.45 10.71 (2)
Risk-based capital (3)
Tier 1 capital 7.25 8.71 (17) 7.25 8.71 (17)
Total capital 11.20 11.30 (1) 11.20 11.30 (1)
Leverage (3) 6.35 7.22 (12) 6.35 7.22 (12)
Book value per common share $ 15.20 $ 13.17 15 $ 15.20 $ 13.17 15
Staff (active, full-time equivalent) 97,456 89,528 9 97,456 89,528 9
COMMON STOCK PRICE
High $ 47.13 $ 45.31 4 $ 47.75 $ 45.31 5
Low 38.73 36.44 6 31.00 32.13 (4)
Period end 45.94 39.63 16 45.94 39.63 16
-------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The efficiency ratio is defined as noninterest expense divided by total
revenue (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 and ROA ratios, net of applicable taxes. The pretax amount for
the average balance of nonqualifying CDI was $1,143 million for the quarter
ended September 30, 2000 and $1,178 million for the nine months ended
September 30, 2000. The after-tax amounts for the amortization and average
balance of nonqualifying CDI were $26 million and $708 million,
respectively, for the quarter ended September 30, 2000 and $78 million and
$730 million, respectively, for the nine months ended September 30, 2000.
Goodwill amortization and average balance (which are not tax effected) were
$132 million and $8,768 million, respectively, for the quarter ended
September 30, 2000 and $369 million and $8,340 million, respectively, for
the nine months ended September 30, 2000.
(3) The September 30, 2000 ratios are preliminary.
<PAGE>
-5-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter Nine months
ended Sept. 30, % ended Sept. 30, %
--------------------- -----------------------
(in millions, except per share amounts) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME
Securities available for sale $ 580 $ 586 (1)% $ 1,798 $ 1,612 12%
Mortgages held for sale 224 198 13 566 671 (16)
Loans held for sale 92 80 15 318 280 14
Loans 3,462 2,725 27 9,593 7,912 21
Other interest income 91 52 75 245 150 63
--------- -------- ------- --------
Total interest income 4,449 3,641 22 12,520 10,625 18
--------- -------- ------- --------
INTEREST EXPENSE
Deposits 970 679 43 2,600 2,075 25
Short-term borrowings 404 226 79 1,128 635 78
Long-term debt 479 338 42 1,255 911 38
Guaranteed preferred beneficial interests
in Company's subordinated debentures 15 16 (6) 46 45 2
--------- -------- ------- --------
Total interest expense 1,868 1,259 48 5,029 3,666 37
--------- -------- ------- --------
NET INTEREST INCOME 2,581 2,382 8 7,491 6,959 8
Provision for loan losses 288 240 20 803 770 4
--------- -------- ------- --------
Net interest income after
provision for loan losses 2,293 2,142 7 6,688 6,189 8
--------- -------- ------- --------
NONINTEREST INCOME
Service charges on deposit accounts 413 385 7 1,201 1,096 10
Trust and investment fees 375 317 18 1,095 932 17
Credit card fees 146 138 6 395 395 --
Other fees 321 258 24 884 763 16
Mortgage banking 314 318 (1) 924 969 (5)
Insurance 76 95 (20) 282 299 (6)
Net venture capital gains 535 162 230 1,740 287 506
Net (losses) gains on securities available for sale (179) (2) -- (820) 19 --
Other 188 138 36 491 590 (17)
--------- -------- ------- --------
Total noninterest income 2,189 1,809 21 6,192 5,350 16
--------- -------- ------- --------
NONINTEREST EXPENSE
Salaries 869 776 12 2,525 2,251 12
Incentive compensation 177 124 43 467 393 19
Employee benefits 216 208 4 673 624 8
Equipment 193 193 -- 575 566 2
Net occupancy 222 205 8 666 576 16
Goodwill 132 106 25 369 314 18
Core deposit intangible 44 49 (10) 136 151 (10)
Net (gains) losses on dispositions of premises
and equipment (30) 6 -- (78) (5) --
Other 871 751 16 2,465 2,254 9
--------- -------- ------- --------
Total noninterest expense 2,694 2,418 11 7,798 7,124 9
--------- -------- ------- --------
INCOME BEFORE INCOME TAX EXPENSE 1,788 1,533 17 5,082 4,415 15
Income tax expense 718 571 26 1,963 1,638 20
--------- -------- ------- --------
NET INCOME $ 1,070 $ 962 11% $ 3,119 $ 2,777 12 %
========= ======== ======= ========
NET INCOME APPLICABLE TO
COMMON STOCK $ 1,066 $ 953 12% $ 3,106 $ 2,751 13 %
========= ======== ======= ========
EARNINGS PER COMMON SHARE $ .65 $ .58 12% $ 1.91 $ 1.67 14 %
========= ======== ======= ========
DILUTED EARNINGS PER COMMON SHARE $ .64 $ .57 12% $ 1.89 $ 1.65 15 %
========= ======== ======= ========
DIVIDENDS DECLARED PER COMMON SHARE $ .22 $ .20 10% $ .66 $ .585 13 %
========= ======== ======= ========
Average common shares outstanding 1,637.7 1,648.6 (1)% 1,626.0 1,649.0 (1) %
========= ======== ======= ========
Diluted average common shares outstanding 1,657.0 1,667.1 (1)% 1,642.9 1,667.9 (1) %
========= ======== ======= ========
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-6-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
% Change
Sept. 30, 2000 from
-------------------
Sept. 30, Dec. 31, Sept. 30, Dec. 31, Sept. 30,
(in millions, except shares) 2000 1999 1999 1999 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 14,051 $ 13,250 $ 12,011 6 % 17%
Federal funds sold and securities
purchased under resale agreements 2,153 1,554 1,556 39 38
Securities available for sale 35,703 38,518 36,906 (7) (3)
Mortgages held for sale 10,606 11,707 9,850 (9) 8
Loans held for sale 4,294 4,975 4,661 (14) (8)
Loans 141,377 119,464 114,709 18 23
Allowance for loan losses 3,417 3,170 3,167 8 8
--------- --------- ---------
Net loans 137,960 116,294 111,542 19 24
--------- --------- ---------
Mortgage servicing rights 5,522 4,483 4,341 23 27
Premises and equipment, net 3,024 2,985 3,124 1 (3)
Core deposit intangible 1,197 1,286 1,334 (7) (10)
Goodwill 8,899 7,702 7,620 16 17
Interest receivable and other assets 17,710 15,348 14,115 15 25
--------- --------- ---------
Total assets $ 241,119 $ 218,102 $ 207,060 11 % 16%
========= ========= ========= ==== ====
LIABILITIES
Noninterest-bearing deposits $ 48,741 $ 42,916 $ 41,872 14 % 16%
Interest-bearing deposits 102,228 89,792 89,685 14 14
--------- --------- ---------
Total deposits 150,969 132,708 131,557 14 15
Short-term borrowings 22,476 27,995 19,248 (20) 17
Accrued expenses and other liabilities 12,445 11,108 8,377 12 49
Long-term debt 29,252 23,375 24,911 25 17
Guaranteed preferred beneficial interests
in Company's subordinated debentures 785 785 785 -- --
STOCKHOLDERS' EQUITY
Preferred stock 408 344 560 19 (27)
Unearned ESOP shares (143) (73) (100) 96 43
--------- --------- ---------
Total preferred stock 265 271 460 (2) (42)
Common stock - $1-2/3 par value,
authorized 4,000,000,000 shares;
issued 1,666,095,265 shares 2,777 2,777 2,777 -- --
Additional paid-in capital 8,856 8,786 8,769 1 1
Retained earnings 12,828 11,196 10,625 15 21
Cumulative other comprehensive income 1,709 892 242 92 606
Note receivable from ESOP (1) (1) (1) -- --
Treasury stock - 26,684,920 shares,
39,245,724 shares and 16,331,628 shares (1,242) (1,790) (690) (31) 80
--------- --------- ---------
Total stockholders' equity 25,192 22,131 22,182 14 14
--------- --------- ---------
Total liabilities and stockholders' equity $ 241,119 $ 218,102 $ 207,060 11 % 16%
========= ========= ========= ==== ====
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-7-
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
Nine months ended Sept. 30,
--------------------------
(in millions) 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF PERIOD $ 22,131 $ 20,759
Net income 3,119 2,777
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments (2) 3
Change in investment securities valuation allowance 819 (224)
Common stock issued 357 521
Common stock issued for acquisitions 2,650 67
Common stock repurchased (2,889) (777)
Preferred stock released to ESOP 104 60
Preferred stock repurchased (1) --
Common stock dividends (1,076) (964)
Preferred stock dividends (13) (26)
Cash payments received on notes receivable from ESOP -- 2
Change in Rabbi trust assets (classified as treasury stock) (7) (16)
---------- ---------
BALANCE, END OF PERIOD $ 25,192 $ 22,182
========== =========
-------------------------------------------------------------------------------------------------------------------
LOANS
-------------------------------------------------------------------------------------------------------------------
Sept. 30, Dec. 31, Sept. 30,
(in millions) 2000 1999 1999
-------------------------------------------------------------------------------------------------------------------
Commercial $ 44,204 $ 38,688 $ 37,222
Real estate 1-4 family first mortgage 18,392 12,398 12,375
Other real estate mortgage 21,484 19,178 17,653
Real estate construction 5,867 4,711 4,381
Consumer:
Real estate 1-4 family junior lien mortgage 16,305 12,938 12,171
Credit card 5,903 5,472 5,347
Other revolving credit and monthly payment 19,680 16,656 16,709
---------- ---------- ----------
Total consumer 41,888 35,066 34,227
Lease financing 7,951 7,850 7,292
Foreign 1,591 1,573 1,559
---------- ---------- ----------
Total loans (net of unearned discount) $ 141,377 $ 119,464 $ 114,709
========== ========== ==========
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-8-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
---------------------------------------------------------------------------------------------------------------------------
Quarter ended Nine months ended
----------------------------------- ---------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(in millions) 2000 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF PERIOD $ 3,349 $3,237 $3,165 $3,170 $ 3,134
Allowance related to business combinations, net 47 98 3 211 38
Provision for loan losses 288 260 240 803 770
Loan charge-offs:
Commercial (93) (89) (93) (283) (285)
Real estate 1-4 family first mortgage (4) -- (3) (10) (22)
Other real estate mortgage (9) (13) (8) (25) (20)
Real estate construction (1) (3) -- (5) (1)
Consumer:
Real estate 1-4 family junior lien mortgage (6) (6) (7) (23) (22)
Credit card (86) (84) (93) (252) (299)
Other revolving credit and monthly payment (130) (120) (122) (381) (358)
------- ------ ------ ------ ------
Total consumer (222) (210) (222) (656) (679)
Lease financing (9) (9) (9) (31) (30)
Foreign (20) (21) (18) (65) (57)
------- ------ ------ ------ ------
Total loan charge-offs (358) (345) (353) (1,075) (1,094)
------- ------ ------ ------ ------
Loan recoveries:
Commercial 17 19 25 68 61
Real estate 1-4 family first mortgage 1 1 3 3 6
Other real estate mortgage 3 4 4 10 33
Real estate construction 1 1 -- 3 4
Consumer:
Real estate 1-4 family junior lien mortgage 2 4 3 10 10
Credit card 9 9 10 27 36
Other revolving credit and monthly payment 49 54 60 152 149
------- ------ ------ ------ ------
Total consumer 60 67 73 189 195
Lease financing 3 3 3 9 9
Foreign 6 4 4 26 11
------- ------ ------ ------ ------
Total loan recoveries 91 99 112 308 319
------- ------ ------ ------ ------
Total net loan charge-offs (267) (246) (241) (767) (775)
------- ------ ------ ------ ------
BALANCE, END OF PERIOD $ 3,417 $3,349 $3,167 $3,417 $3,167
======= ====== ====== ====== ======
Total net loan charge-offs as a percentage
of average total loans (annualized) .78% .78% .85% .80% .94%
======= ====== ====== ====== ======
Allowance as a percentage of total loans 2.42% 2.48% 2.76% 2.42% 2.76%
======= ====== ====== ====== ======
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-9-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
-------------------------------------------------------------------------------------------------------------------
Sept. 30, Dec. 31, Sept. 30,
(in millions) 2000 1999 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nonaccrual loans:
Commercial $ 554 $ 344 $ 360
Real estate 1-4 family first mortgage 113 127 148
Other real estate mortgage 114 112 108
Real estate construction 14 7 10
Consumer:
Real estate 1-4 family junior lien mortgage 12 17 14
Other revolving credit and monthly payment 35 27 26
-------- ------ ------
Total consumer 47 44 40
Lease financing 50 22 23
Foreign 8 9 8
-------- ------ ------
Total nonaccrual loans 900 665 697
Restructured loans 2 4 1
-------- ------ ------
Nonaccrual and restructured loans 902 669 698
As a percentage of total loans .6% .6% .6%
Foreclosed assets 126 153 161
Real estate investments (1) 28 33 34
-------- ------ ------
Total nonaccrual and restructured loans
and other assets $ 1,056 $ 855 $ 893
======== ====== ======
-------------------------------------------------------------------------------------------------------------------
</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 recorded as loans. Real estate investments totaled $72
million, $89 million and $108 million at September 30, 2000, December 31,
1999 and September 30, 1999, respectively.
<PAGE>
-10-
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
Quarter ended Sept. 30, % Nine months ended Sept. 30, %
----------------------- ---------------------------
(in millions) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Service charges on deposit accounts $ 413 $ 385 7% $1,201 $ 1,096 10%
Trust and investment fees:
Asset management and custody fees 177 157 13 513 461 11
Mutual fund and annuity sales fees 173 137 26 501 395 27
All other 25 23 9 81 76 7
------- ------ ------ -------
Total trust and investment fees 375 317 18 1,095 932 17
Credit card fees 146 138 6 395 395 --
Other fees:
Cash network fees 78 73 7 226 201 12
Charges and fees on loans 92 78 18 252 241 5
All other 151 107 41 406 321 26
------- ------ ------ -------
Total other fees 321 258 24 884 763 16
Mortgage banking:
Origination and other closing fees 94 101 (7) 242 330 (27)
Servicing fees, net of amortization 171 176 (3) 492 231 113
Net gains (losses) on sales of mortgages 2 (16) -- 41 228 (82)
All other 47 57 (18) 149 180 (17)
------- ------ ------ -------
Total mortgage banking 314 318 (1) 924 969 (5)
Insurance 76 95 (20) 282 299 (6)
Net venture capital gains 535 162 230 1,740 287 506
Net (losses) gains on securities available for sale (179) (2) -- (820) 19 --
Income from equity investments accounted for by the:
Cost method 18 35 (49) 145 99 46
Equity method 13 18 (28) 91 59 54
Net gains on sales of loans 1 6 (83) 6 32 (81)
Net gains on dispositions of operations 2 -- -- 8 102 (92)
All other 154 79 95 241 298 (19)
------- ------ ------ -------
Total $ 2,189 $1,809 21% $6,192 $ 5,350 16%
======= ====== ==== ====== ======= ====
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
-------------------------------------------------------------------------------------------------------------------
Quarter ended Sept. 30, % Nine months ended Sept. 30, %
----------------------- --------------------------
(in millions) 2000 1999 Change 2000 1999 Change
------------ --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries $ 869 $ 776 12% $2,525 $ 2,251 12%
Incentive compensation 177 124 43 467 393 19
Employee benefits 216 208 4 673 624 8
Equipment 193 193 -- 575 566 2
Net occupancy 222 205 8 666 576 16
Goodwill 132 106 25 369 314 18
Core deposit intangible:
Nonqualifying (1) 41 44 (7) 125 135 (7)
Qualifying 3 5 (40) 11 16 (31)
Net (gains) losses on dispositions of premises
and equipment (30) 6 -- (78) (5) --
Contract services 132 119 11 360 320 13
Outside professional services 114 83 37 288 243 19
Outside data processing 78 69 13 219 207 6
Telecommunications 71 66 8 206 191 8
Travel and entertainment 66 58 14 189 173 9
Advertising and promotion 80 54 48 210 160 31
Postage 59 54 9 176 169 4
Stationery and supplies 50 44 14 149 122 22
Insurance 30 41 (27) 126 127 (1)
Operating losses 46 25 84 111 91 22
Security 22 22 -- 66 64 3
All other 123 116 6 365 387 (6)
---------- -------- ---------- ---------
Total $ 2,694 $2,418 11% $7,798 $ 7,124 9%
======= ====== ==== ====== ======= ====
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Represents amortization of core deposit intangible acquired after February
1992 that is subtracted from stockholders' equity in computing regulatory
capital for bank holding companies.
<PAGE>
-11-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Quarter ended September 30,
---------------------------------------------------------------------
2000 1999
------------------------------ ---------------------------------
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
under resale agreements $ 2,710 6.19% $ 42 $ 1,327 5.13% $17
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies 2,347 6.50 38 5,915 5.47 85
Securities of U.S. states and political subdivisions 1,792 8.02 37 1,848 8.31 38
Mortgage-backed securities:
Federal agencies 22,634 7.39 420 20,840 7.11 374
Private collateralized mortgage obligations 1,815 7.59 35 3,003 6.89 53
-------- ------ ------- ------
Total mortgage-backed securities 24,449 7.40 455 23,843 7.08 427
Other debt securities (4) 5,349 8.06 63 3,296 7.76 50
-------- ------ ------- ------
Total debt securities available for sale (4) 33,937 7.44 593 34,902 6.91 600
Loans held for sale (3) 4,115 8.84 92 4,381 7.24 80
Mortgages held for sale (3) 11,116 7.99 224 10,711 7.33 198
Loans:
Commercial 43,104 9.57 1,037 36,011 8.88 806
Real estate 1-4 family first mortgage 16,662 7.86 328 12,236 7.69 236
Other real estate mortgage 21,194 9.02 480 17,243 8.73 379
Real estate construction 5,676 9.89 141 4,189 9.38 99
Consumer:
Real estate 1-4 family junior lien mortgage 15,757 10.43 412 11,817 9.94 294
Credit card 5,836 14.72 215 5,323 13.95 187
Other revolving credit and monthly payment 19,397 12.67 615 16,848 12.06 509
-------- ------ ------- ------
Total consumer 40,990 12.10 1,242 33,988 11.62 990
Lease financing 7,577 7.96 151 7,070 7.76 137
Foreign 1,623 21.06 85 1,525 20.88 80
-------- ------ ------- ------
Total loans (5) 136,826 10.10 3,464 112,262 9.67 2,727
Other 3,009 6.47 49 3,067 4.68 36
-------- ------ ------- ------
Total earning assets $191,713 9.38 4,464 $166,650 8.75 3,658
======== ------ ======== ------
FUNDING SOURCES
Deposits:
Interest-bearing checking $ 2,907 2.10 16 $ 2,723 .92 6
Market rate and other savings 59,497 2.89 431 56,339 2.23 317
Savings certificates 26,073 5.47 359 25,262 4.66 297
Other time deposits 4,242 5.91 63 3,276 4.86 40
Deposits in foreign offices 6,134 6.53 101 1,552 4.86 19
-------- ------ ------- ------
Total interest-bearing deposits 98,853 3.90 970 89,152 3.02 679
Short-term borrowings 24,983 6.44 404 17,649 5.09 226
Long-term debt 27,739 6.90 479 23,112 5.85 339
Guaranteed preferred beneficial interests in Company's
subordinated debentures 785 7.84 15 785 7.56 15
-------- ------ ------- ------
Total interest-bearing liabilities 152,360 4.88 1,868 130,698 3.83 1,259
Portion of noninterest-bearing funding sources 39,353 -- -- 35,952 -- --
-------- ------ ------- ------
Total funding sources $191,713 3.92 1,868 $166,650 3.01 1,259
======== ------ ======== ------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
A TAXABLE-EQUIVALENT BASIS (6) 5.46% $2,596 5.74% $2,399
==== ====== ==== ======
NONINTEREST-EARNING ASSETS
Cash and due from banks $ 12,392 $11,196
Goodwill 8,768 7,674
Other 22,169 17,452
--------- -------
Total noninterest-earning assets $ 43,329 $36,322
========= =======
NONINTEREST-BEARING FUNDING SOURCES
Deposits $ 47,236 $42,435
Other liabilities 12,108 8,337
Preferred stockholders' equity 264 460
Common stockholders' equity 23,074 21,042
Noninterest-bearing funding sources used to
fund earning assets (39,353) (35,952)
--------- -------
Net noninterest-bearing funding sources $ 43,329 $36,322
========= =======
TOTAL ASSETS $235,042 $202,972
========= ========
-----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average prime rate of the Company was 9.50% and 8.10% for the quarters
ended September 30, 2000 and 1999, respectively. The average three-month
London Interbank Offered Rate (LIBOR) was 6.62% and 5.44% for the same
quarters, respectively.
(2) Interest rates and amounts include the effects of hedge and risk management
activities associated with the respective asset and liability categories.
(3) Yields are based on amortized cost balances.
(4) Includes certain preferred securities.
(5) Nonaccrual loans and related income are included in their respective loan
categories.
(6) 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 all
periods presented.
<PAGE>
-12-
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Nine months ended September 30,
------------------------------------------------------------------
2000 1999
----------------------------- ------------------------------
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
under resale agreements $ 2,301 6.06% $ 104 $ 1,311 4.95% $ 49
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies 2,980 6.03 140 5,608 5.43 233
Securities of U.S. states and political subdivisions 1,826 8.01 111 1,797 8.36 108
Mortgage-backed securities:
Federal agencies 23,363 7.29 1,295 19,923 6.81 1,014
Private collateralized mortgage obligations 1,965 7.55 115 3,156 6.82 162
-------- ------ ------- ------
Total mortgage-backed securities 25,328 7.31 1,410 23,079 6.81 1,176
Other debt securities (4) 5,087 7.71 176 2,906 7.65 136
-------- ------ ------- ------
Total debt securities available for sale (4) 35,221 7.27 1,837 33,390 6.71 1,653
Loans held for sale (3) 5,014 8.48 318 5,182 7.23 280
Mortgages held for sale (3) 9,447 7.91 566 12,774 6.97 671
Loans:
Commercial 41,298 9.40 2,905 35,512 8.66 2,302
Real estate 1-4 family first mortgage 14,502 7.78 846 12,134 8.44 767
Other real estate mortgage 20,429 9.06 1,385 16,985 8.82 1,121
Real estate construction 5,203 9.66 376 4,044 9.34 283
Consumer:
Real estate 1-4 family junior lien mortgage 14,535 10.34 1,126 11,336 9.07 770
Credit card 5,450 14.32 585 5,402 13.77 558
Other revolving credit and monthly payment 17,713 12.59 1,671 15,983 12.38 1,482
-------- ------ ------- ------
Total consumer 37,698 11.97 3,382 32,721 11.46 2,810
Lease financing 7,624 7.82 447 6,813 7.81 399
Foreign 1,610 21.33 258 1,505 20.99 237
-------- ------ ------- ------
Total loans (5) 128,364 9.98 9,599 109,714 9.64 7,919
Other 3,096 6.05 141 2,636 5.17 101
-------- ------ ------- ------
Total earning assets $183,443 9.21 12,565 $165,007 8.66 10,673
======== ------ ======== ------
FUNDING SOURCES
Deposits:
Interest-bearing checking $ 3,034 1.75 39 $ 2,764 .89 18
Market rate and other savings 58,189 2.70 1,178 55,996 2.28 956
Savings certificates 25,207 5.18 978 26,077 4.76 929
Other time deposits 3,753 5.63 158 3,528 4.97 131
Deposits in foreign offices 5,341 6.17 247 1,212 4.51 41
-------- ------ ------- ------
Total interest-bearing deposits 95,524 3.64 2,600 89,577 3.10 2,075
Short-term borrowings 24,623 6.12 1,128 17,567 4.83 635
Long-term debt 25,192 6.64 1,255 20,903 5.81 912
Guaranteed preferred beneficial interests in Company's
subordinated debentures 785 7.78 46 785 7.54 44
-------- ------ ------- ------
Total interest-bearing liabilities 146,124 4.59 5,029 128,832 3.80 3,666
Portion of noninterest-bearing funding sources 37,319 -- -- 36,175 -- --
-------- ------ ------- ------
Total funding sources $183,443 3.69 5,029 $165,007 2.98 3,666
======== ------ ======== ------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
A TAXABLE-EQUIVALENT BASIS (6) 5.52% $7,536 5.68% $7,007
==== ====== ==== ======
NONINTEREST-EARNING ASSETS
Cash and due from banks $ 11,978 $11,184
Goodwill 8,340 7,688
Other 20,368 16,815
--------- -------
Total noninterest-earning assets $ 40,686 $35,687
========= =======
NONINTEREST-BEARING FUNDING SOURCES
Deposits $ 45,000 $42,644
Other liabilities 10,366 7,866
Preferred stockholders' equity 266 460
Common stockholders' equity 22,373 20,892
Noninterest-bearing funding sources used to
fund earning assets (37,319) (36,175)
--------- -------
Net noninterest-bearing funding sources $ 40,686 $35,687
========= =======
TOTAL ASSETS $224,129 $200,694
========= =======
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average prime rate of the Company was 9.15% and 7.87% for the nine
months - ended September 30, 2000 and 1999, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 6.46% and 5.17% for
the nine months ended September 30, 2000 and 1999, respectively.
(2) Interest rates and amounts include the effects of hedge and risk management
activities associated with the respective asset and liability categories.
(3) Yields are based on amortized cost balances.
(4) Includes certain preferred securities.
(5) Nonaccrual loans and related income are included in their respective loan
categories.
(6) 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 all
periods presented.
