<PAGE>
EXHIBIT 99
Wells Fargo and Company's financial results for the quarter ended
December 31, 2000
Wells Fargo & Company reported net income of $1,128 million for the
fourth quarter of 2000, up 9 percent over fourth quarter of 1999, on revenue
growth of 12 percent. Diluted cash earnings per common share were $.75 for the
fourth quarter of 2000, up 9 percent from the $.69 per share from the fourth
quarter of 1999. Cash earnings are earnings before the amortization of goodwill
and nonqualifying core deposit intangible. Cash return on average assets (ROA)
was 2.06 percent and cash return on average common equity (ROE) was 31.85
percent for the fourth quarter of 2000.
Wells Fargo completed its merger with First Security Corporation on
October 25, 2000. The merger was accounted for under the pooling of interests
method of accounting. These financial results present the results of Wells
Fargo & Company as if the merger with First Security had been in effect for all
periods presented.
Diluted earnings per common share were $.65 for the fourth quarter of
2000, up 10 percent from the $.59 reported for the fourth quarter of 1999, and
$2.33 for the full year of 2000, up 2 percent from $2.29 for the same period of
1999. ROA was 1.73 percent for the fourth quarter of 2000 and 1.61 percent for
the full year of 2000, compared with 1.78 percent for the fourth quarter and
full year of 1999. ROE was 17.16 percent for the fourth quarter of 2000 and
16.31 percent for the full year of 2000, compared with 17.66 percent and 17.55
percent for the same periods a year ago.
Net interest income on a taxable-equivalent basis was $2,803 million in
the fourth quarter of 2000, up 7 percent, compared with $2,623 million in the
fourth quarter of 1999. Net interest income was $10,930 million in the full year
of 2000, up 7 percent, compared with $10,185 million in the same period a year
ago. The net interest margin was 5.30 percent for the fourth quarter of 2000 and
5.35 percent for the full year of 2000, compared with 5.46 percent and 5.47
percent for the same periods of 1999.
Noninterest income was $2,611 million in the fourth quarter of 2000, up
18 percent, and $8,843 million in the full year of 2000, up 11 percent, compared
with $2,207 million and $7,975 million in the same periods of 1999. The increase
in noninterest income for the fourth quarter of 2000 compared with the prior
year was primarily due to higher net gains on sales of securities in the
securities available for sale portfolio and higher net gains on sales of
mortgages, predominantly offset by lower net venture capital gains. The increase
in noninterest income for the full year 2000 compared with the prior year was
largely due to higher net venture capital gains, increased trust and investment
fees and service charges on deposit accounts, primarily offset by net losses on
sales of securities in the securities available for sale portfolio related to
the restructuring of that portfolio in the first nine months of 2000 and net
losses on sales of loans and securitizations associated with First Security.
Noninterest expense was $3,218 million in the fourth quarter of 2000
and $11,830 million in the full year of 2000, compared with $2,879 million and
$10,637 million in the same periods a year ago. Fourth quarter 2000 expenses
included
<PAGE>
$180 million in transition costs related to First Security and $114
million in transition and conversion costs for other acquisitions, including the
Norwest/Wells Fargo merger. Transition and conversion costs for the full year
2000 totaled $643 million. Noninterest expense in the fourth quarter of 2000
also included the reversal of $58 million of the remaining severance reserve
associated with the Norwest/Wells Fargo merger.
The cash efficiency ratio was 56.1 percent for the fourth quarters of
2000 and 1999. For the full year of 2000, the cash efficiency ratio was 56.5
percent, compared with 55.2 percent for the same period a year ago. The
deterioration in the efficiency ratio was due to over a billion dollars of
increased Internet expenditures and the transition and conversion costs of the
Norwest/Wells Fargo merger and other acquisitions.
The effective tax rate was 38.5 percent for 2000, compared with 37.8
percent for 1999. The increase in the effective tax rate was primarily due to
the third quarter 2000 accrual of deferred taxes of $36 million on undistributed
earnings of a foreign subsidiary that the Company now intends to repatriate.
The provision for loan losses was $352 million for the fourth quarter
of 2000 and $294 million for fourth quarter of 1999. Net charge-offs totaled
$352 million, or .90 percent of average loans (annualized), in the fourth
quarter of 2000, $330 million, or .88 percent of average loans (annualized), for
the third quarter of 2000 and $293 million, or .90 percent of average loans
(annualized), for the fourth quarter of 1999. For the year ended December 31,
2000, the provision for loan losses was $1,329 million and net charge-offs
totaled $1,219 million, or .84 percent of average loans, compared with a
provision for loan losses of $1,104 million and net charge-offs of $1,115
million, or .90 percent of average loans, for the same period of 1999.
At December 31, 2000, the allowance for loan losses of $3,719 million
was 2.31 percent of total loans, compared with 2.51 percent at December 31,
1999. Total nonaccrual and restructured loans were $1,195 million at December
31, 2000, $965 million at September 30, 2000, and $728 million at December 31,
1999.
WELLS FARGO & COMPANY IS A DIVERSIFIED FINANCIAL SERVICES COMPANY WITH $272
BILLION IN ASSETS, PROVIDING BANKING, INSURANCE, INVESTMENTS, MORTGAGE AND
CONSUMER FINANCE FROM ABOUT 6,000 STORES AND THE INTERNET (WELLSFARGO.COM)
ACROSS NORTH AMERICA AND ELSEWHERE INTERNATIONALLY.
----------------
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 September 30, 2000 and Form 10-K for the year ended December 31, 1999,
as supplemented by the Company's current report on Form 8-K filed
-2-
<PAGE>
-3-
November 30, 2000 (exhibits 99(a) and 99(b)), describe some 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 Year
ended December 31, ended December 31,
---------------------- % --------------------- %
(in millions, except per share amounts) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FOR THE PERIOD
Net income $ 1,128 $ 1,038 9% $ 4,026 $ 4,012 --%
Net income applicable to common stock 1,124 1,029 9 4,009 3,977 1
Earnings per common share $ .66 $ .60 10 $ 2.36 $ 2.32 2
Diluted earnings per common share .65 .59 10 2.33 2.29 2
Dividends declared per common share .24 .20 20 .90 .785 15
Average common shares outstanding 1,710.5 1,705.1 -- 1,699.5 1,714.0 (1)
Diluted average common shares outstanding 1,732.4 1,727.5 -- 1,718.4 1,735.4 (1)
Profitability ratios (annualized)
Net income to average total assets (ROA) 1.73% 1.78% (3) 1.61% 1.78% (10)
Net income applicable to common stock to
average common stockholders' equity (ROE) 17.16 17.66 (3) 16.31 17.55 (7)
Total revenue $ 5,405 $ 4,811 12 $ 19,708 $ 18,091 9
Efficiency ratio (1) 59.5% 59.8% (1) 60.0% 58.8% 2
Average loans $155,860 $129,328 21 $145,577 $123,638 18
Average assets 259,971 231,689 12 250,188 225,099 11
Average core deposits 151,847 138,889 9 145,793 139,310 5
Net interest margin 5.30% 5.46% (3) 5.35% 5.47% (2)
NET INCOME AND RATIOS EXCLUDING
GOODWILL AND NONQUALIFYING CORE DEPOSIT
INTANGIBLE AMORTIZATION AND BALANCES
("CASH") (2)
Net income applicable to common stock $ 1,291 $ 1,193 8 $ 4,646 $ 4,551 2
Earnings per common share .75 .70 7 2.73 2.66 3
Diluted earnings per common share .75 .69 9 2.70 2.62 3
ROA 2.06% 2.14% (4) 1.94% 2.13% (9)
ROE 31.85 32.91 (3) 30.89 32.85 (6)
Efficiency ratio 56.1 56.1 -- 56.5 55.2 2
AT PERIOD END
Securities available for sale $ 38,655 $ 43,911 (12) $ 38,655 $ 43,911 (12)
Loans 161,124 133,004 21 161,124 133,004 21
Allowance for loan losses 3,719 3,344 11 3,719 3,344 11
Goodwill 9,303 8,046 16 9,303 8,046 16
Assets 272,426 241,053 13 272,426 241,053 13
Core deposits 156,710 138,247 13 156,710 138,247 13
Common stockholders' equity 26,221 23,600 11 26,221 23,600 11
Stockholders' equity 26,488 23,871 11 26,488 23,871 11
Capital ratios
Common stockholders' equity to assets 9.63% 9.79% (2) 9.63% 9.79% (2)
Stockholders' equity to assets 9.72 9.90 (2) 9.72 9.90 (2)
Risk-based capital (3)
Tier 1 capital 7.25 8.00 (9) 7.25 8.00 (9)
Total capital 10.40 10.93 (5) 10.40 10.93 (5)
Leverage (3) 6.45 6.76 (5) 6.45 6.76 (5)
Book value per common share $ 15.29 $ 13.91 10 $ 15.29 $ 13.91 10
Staff (active, full-time equivalent) 108,727 98,715 10 108,727 98,715 10
COMMON STOCK PRICE
High $ 56.38 $ 49.94 13 $ 56.38 $ 49.94 13
Low 39.63 38.38 3 31.00 32.13 (4)
Period end 55.69 40.44 38 55.69 40.44 38
---------------------------------------------------------------------------------------------------------------------------
</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 $1,142 million for the quarter
ended December 31, 2000 and $1,182 million for the year ended December 31,
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 December 31, 2000 and $107 million and $733 million,
respectively, for the year ended December 31, 2000. Goodwill amortization
and average balance (which are not tax effected) were $141 million and
$9,215 million, respectively, for the quarter ended December 31, 2000 and
$530 million and $8,811 million, respectively, for the year ended December
31, 2000.
(3) The December 31, 2000 ratios are preliminary.
<PAGE>
-5-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter Year
ended December 31, ended December 31,
--------------------- % -------------------- %
(in millions, except per share amounts) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME
Securities available for sale $ 625 $ 655 (5)% $ 2,671 $ 2,533 5%
Mortgages held for sale 232 201 15 849 951 (11)
Loans held for sale 95 93 2 418 377 11
Loans 3,902 3,151 24 14,446 11,823 22
Other interest income 80 73 10 341 250 36
-------- -------- ------- --------
Total interest income 4,934 4,173 18 18,725 15,934 18
-------- -------- ------- --------
INTEREST EXPENSE
Deposits 1,133 791 43 4,089 3,166 29
Short-term borrowings 448 344 30 1,758 1,127 56
Long-term debt 540 416 30 1,939 1,452 34
Guaranteed preferred beneficial interests
in Company's subordinated debentures 19 18 6 74 73 1
-------- -------- ------- --------
Total interest expense 2,140 1,569 36 7,860 5,818 35
-------- -------- ------- --------
NET INTEREST INCOME 2,794 2,604 7 10,865 10,116 7
Provision for loan losses 352 294 20 1,329 1,104 20
-------- -------- ------- --------
Net interest income after
provision for loan losses 2,442 2,310 6 9,536 9,012 6
-------- -------- ------- --------
NONINTEREST INCOME
Service charges on deposit accounts 437 418 5 1,704 1,580 8
Trust and investment fees 421 358 18 1,624 1,366 19
Credit card fees 145 151 (4) 563 570 (1)
Other fees 337 283 19 1,271 1,094 16
Mortgage banking 434 306 42 1,444 1,407 3
Insurance 119 87 37 411 395 4
Net venture capital gains 203 721 (72) 1,943 1,008 93
Net gains (losses) on securities available for sale 259 (261) -- (722) (228) 217
Other 256 144 78 605 783 (23)
-------- -------- ------- --------
Total noninterest income 2,611 2,207 18 8,843 7,975 11
-------- -------- ------- --------
NONINTEREST EXPENSE
Salaries 920 867 6 3,652 3,307 10
Incentive compensation 222 164 35 846 643 32
Employee benefits 247 215 15 989 901 10
Equipment 307 294 4 948 928 2
Net occupancy 247 200 24 953 813 17
Goodwill 141 135 4 530 459 15
Core deposit intangible 45 51 (12) 186 206 (10)
Net losses (gains) on dispositions of premises
and equipment 3 (10) -- (58) (16) 263
Other 1,086 963 13 3,784 3,396 11
-------- -------- ------- --------
Total noninterest expense 3,218 2,879 12 11,830 10,637 11
-------- -------- ------- --------
INCOME BEFORE INCOME TAX EXPENSE 1,835 1,638 12 6,549 6,350 3
Income tax expense 707 600 18 2,523 2,338 8
-------- -------- ------- --------
NET INCOME $ 1,128 $ 1,038 9% $ 4,026 $ 4,012 --%
======== ======== ======= ========
NET INCOME APPLICABLE TO
COMMON STOCK $ 1,124 $ 1,029 9% $ 4,009 $ 3,977 1%
======== ======== ======= ========
EARNINGS PER COMMON SHARE $ .66 $ .60 10% $ 2.36 $ 2.32 2%
======== ======== ======= ========
DILUTED EARNINGS PER COMMON SHARE $ .65 $ .59 10% $ 2.33 $ 2.29 2%
======== ======== ======= ========
DIVIDENDS DECLARED PER COMMON SHARE $ .24 $ .20 20% $ .90 $ .785 15%
======== ======== ======= ========
Average common shares outstanding 1,710.5 1,705.1 --% 1,699.5 1,714.0 (1)%
======== ======== ======= ========
Diluted average common shares outstanding 1,732.4 1,727.5 --% 1,718.4 1,735.4 (1)%
======== ======== ======= ========
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-6-
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
December 31,
----------------------------- %
(in millions, except shares) 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 16,978 $ 14,118 20%
Federal funds sold and securities
purchased under resale agreements 1,598 1,722 (7)
Securities available for sale 38,655 43,911 (12)
Mortgages held for sale 11,812 12,678 (7)
Loans held for sale 4,539 5,043 (10)
Loans 161,124 133,004 21
Allowance for loan losses 3,719 3,344 11
-------- --------
Net loans 157,405 129,660 21
-------- --------
Mortgage servicing rights 5,609 4,652 21
Premises and equipment, net 3,415 3,372 1
Core deposit intangible 1,183 1,299 (9)
Goodwill 9,303 8,046 16
Interest receivable and other assets 21,929 16,552 32
-------- --------
Total assets $272,426 $241,053 13%
======== ======== ====
LIABILITIES
Noninterest-bearing deposits $ 55,096 $ 45,520 21%
Interest-bearing deposits 114,463 100,398 14
-------- --------
Total deposits 169,559 145,918 16
Short-term borrowings 28,989 31,727 (9)
Accrued expenses and other liabilities 14,409 11,736 23
Long-term debt 32,046 26,866 19
Guaranteed preferred beneficial interests
in Company's subordinated debentures 935 935 --
STOCKHOLDERS' EQUITY
Preferred stock 385 344 12
Unearned ESOP shares (118) (73) 62
-------- --------
Total preferred stock 267 271 (1)
Common stock - $1-2/3 par value,
authorized 4,000,000,000 shares;
issued 1,736,381,025 shares and 1,736,259,632 shares 2,894 2,894 --
Additional paid-in capital 9,337 9,213 1
Retained earnings 14,541 12,565 16
Cumulative other comprehensive income 524 760 (31)
Note receivable from ESOP -- (1) (100)
Treasury stock - 21,735,182 shares and 39,840,269 shares (1,075) (1,831) (41)
-------- --------
Total stockholders' equity 26,488 23,871 11
-------- --------
Total liabilities and stockholders' equity $272,426 $241,053 13%
======== ======== ====
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-7-
Wells Fargo & Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
Year ended December 31,
---------------------------
(in millions) 2000 1999
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BALANCE, BEGINNING OF PERIOD $23,871 $22,332
Net income 4,026 4,012
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments (2) 4
Change in investment securities valuation allowance (234) 263
Common stock issued 554 632
Common stock issued for acquisitions 2,937 326
Common stock repurchased (3,238) (2,141)
Stock plan modification 48 --
Preferred stock repurchased (1) --
Preferred stock redeemed -- (191)
Preferred stock released to ESOP 128 86
Preferred stock dividends (17) (35)
Common stock dividends (1,569) (1,401)
Cash payments received on notes receivable from ESOP 1 2
Change in Rabbi trust assets (classified as treasury stock) (16) (18)
------- -------
BALANCE, END OF PERIOD $26,488 $23,871
======= =======
-------------------------------------------------------------------------------------------------------------------
</TABLE>
LOANS
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
December 31,
----------------------------
(in millions) 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial $ 50,518 $ 41,671
Real estate 1-4 family first mortgage 18,464 13,506
Other real estate mortgage 23,972 20,899
Real estate construction 7,715 6,067
Consumer:
Real estate 1-4 family junior lien mortgage 18,218 12,949
Credit card 6,616 5,805
Other revolving credit and monthly payment 23,974 20,617
-------- --------
Total consumer 48,808 39,371
Lease financing 10,023 9,890
Foreign 1,624 1,600
-------- --------
Total loans (net of unearned discount) $161,124 $133,004
======== ========
-------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-8-
Wells Fargo & Company and Subsidiaries
CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter ended Year ended
---------------------------------- --------------------
DEC. 31, Sept. 30, Dec. 31, DEC. 31, Dec. 31,
(in millions) 2000 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE, BEGINNING OF PERIOD $3,665 $3,519 $3,341 $3,344 $3,307
Allowance related to business combinations, net 54 51 2 265 48
Provision for loan losses 352 425 294 1,329 1,104
Loan charge-offs:
Commercial (115) (117) (100) (429) (395)
Real estate 1-4 family first mortgage (4) (4) (3) (16) (14)
Other real estate mortgage (6) (10) (8) (32) (28)
Real estate construction (1) (3) (1) (8) (2)
Consumer:
Real estate 1-4 family junior lien mortgage (11) (6) (11) (34) (33)
Credit card (103) (90) (92) (367) (403)
Other revolving credit and monthly payment (167) (168) (173) (623) (585)
------ ------ ------ ------ ------
Total consumer (281) (264) (276) (1,024) (1,021)
Lease financing (21) (9) (8) (52) (38)
Foreign (21) (20) (21) (86) (90)
------ ------ ------ ------ ------
Total loan charge-offs (449) (427) (417) (1,647) (1,588)
------ ------ ------ ------ ------
Loan recoveries:
Commercial 27 18 26 98 90
Real estate 1-4 family first mortgage 1 1 -- 4 6
Other real estate mortgage 3 3 4 13 38
Real estate construction 1 1 1 4 5
Consumer:
Real estate 1-4 family junior lien mortgage 4 2 5 14 15
Credit card 10 9 11 39 49
Other revolving credit and monthly payment 43 54 70 213 243
------ ------ ------ ------ ------
Total consumer 57 65 86 266 307
Lease financing 4 3 3 13 12
Foreign 4 6 4 30 15
------ ------ ------ ------ ------
Total loan recoveries 97 97 124 428 473
------ ------ ------ ------ ------
Total net loan charge-offs (352) (330) (293) (1,219) (1,115)
------ ------ ------ ------ ------
BALANCE, END OF PERIOD $3,719 $3,665 $3,344 $3,719 $3,344
====== ====== ====== ====== ======
Total net loan charge-offs as a percentage
of average total loans (annualized) .90% .88% .90% .84% .90%
====== ====== ====== ====== ======
Allowance as a percentage of total loans 2.31% 2.38% 2.51% 2.31% 2.51%
====== ====== ====== ====== ======
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-9-
Wells Fargo & Company and Subsidiaries
NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
DEC. 31, Dec. 31,
(in millions) 2000 1999
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Nonaccrual loans:
Commercial $ 739 $ 374
Real estate 1-4 family first mortgage 127 144
Other real estate mortgage 113 118
Real estate construction 57 11
Consumer:
Real estate 1-4 family junior lien mortgage 23 17
Other revolving credit and monthly payment 36 27
------ -----
Total consumer 59 44
Lease financing 92 24
Foreign 7 9
------ -----
Total nonaccrual loans 1,194 724
Restructured loans 1 4
------ -----
Nonaccrual and restructured loans 1,195 728
As a percentage of total loans .7% .5%
Foreclosed assets 128 161
Real estate investments (1) 27 33
------ -----
Total nonaccrual and restructured loans
and other assets $ 1,350 $ 922
======= =====
-------------------------------------------------------------------------------------------------------------------
</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 $56
million and $89 million at December 31, 2000 and December 31, 1999,
respectively.
<PAGE>
-10-
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, Year ended December 31,
-------------------------- % ---------------------- %
(in millions) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Service charges on deposit accounts $ 437 $ 418 5% $1,704 $1,580 8%
Trust and investment fees:
Asset management and custody fees 196 190 3 735 784 (6)
Mutual fund and annuity sales fees 200 146 37 763 472 62
All other 25 22 14 126 110 15
------ ------ ------ ------
Total trust and investment fees 421 358 18 1,624 1,366 19
Credit card fees 145 151 (4) 563 570 (1)
Other fees:
Cash network fees 69 77 (10) 303 285 6
Charges and fees on loans 95 73 30 347 314 11
All other 173 133 30 621 495 25
------ ------ ------ ------
Total other fees 337 283 19 1,271 1,094 16
Mortgage banking:
Origination and other closing fees 92 57 61 350 406 (14)
Servicing fees, net of amortization 165 181 (9) 665 404 65
Net gains on sales of mortgage servicing rights 61 35 74 159 193 (18)
Net gains (losses) on sales of mortgages 54 (25) -- 38 117 (68)
All other 62 58 7 232 287 (19)
------ ------ ------ ------
Total mortgage banking 434 306 42 1,444 1,407 3
Insurance 119 87 37 411 395 4
Net venture capital gains 203 721 (72) 1,943 1,008 93
Net gains (losses) on securities available for sale 259 (261) -- (722) (228) 217
Income from equity investments accounted for by the:
Cost method 26 39 (33) 170 138 23
Equity method 6 26 (77) 94 81 16
Net gains (losses) on sales of loans 15 7 114 (134) 68 --
Net gains on dispositions of operations 15 6 150 23 107 (79)
All other 194 66 194 452 389 16
------ ------ ------ ------
Total $2,611 $2,207 18% $8,843 $7,975 11%
====== ====== ==== ====== ====== ===
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
NONINTEREST EXPENSE
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31, Year ended December 31,
------------------------- % ---------------------- %
(in millions) 2000 1999 Change 2000 1999 Change
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Salaries $ 920 $ 867 6% $ 3,652 $ 3,307 10%
Incentive compensation 222 164 35 846 643 32
Employee benefits 247 215 15 989 901 10
Equipment 307 294 4 948 928 2
Net occupancy 247 200 24 953 813 17
Goodwill 141 135 4 530 459 15
Core deposit intangible:
Nonqualifying (1) 42 46 (9) 173 186 (7)
Qualifying 3 5 (40) 13 20 (35)
Net losses (gains) on dispositions of premises
and equipment 3 (10) -- (58) (16) 263
Contract services 172 147 17 536 473 13
Outside professional services 150 132 14 447 381 17
Outside data processing 97 83 17 343 312 10
Advertising and promotion 93 80 16 316 251 26
Telecommunications 80 76 5 303 286 6
Travel and entertainment 88 79 11 287 262 10
Postage 66 57 16 252 239 5
Stationery and supplies 64 53 21 223 191 17
Insurance 30 24 25 157 152 3
Operating losses 57 53 8 179 150 19
Security 26 25 4 98 95 3
All other 163 154 6 643 604 6
------ ------ ------- -------
Total $3,218 $2,879 12% $11,830 $10,637 11%
====== ====== === ======= ======= ===
---------------------------------------------------------------------------------------------------------------------------
</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-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
---------------------------------------------------------------------------------------------------------------------------------
Quarter ended December 31,
------------------------------------------------------------------
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 $ 2,128 5.48% $ 29 $ 2,162 5.06% $27
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies 2,808 6.60 46 6,070 5.55 90
Securities of U.S. states and political subdivisions 1,984 7.31 36 2,106 8.09 43
Mortgage-backed securities:
Federal agencies 24,981 7.35 454 23,706 6.82 412
Private collateralized mortgage obligations 1,333 10.01 34 3,595 6.86 64
-------- ----- ------- -----
Total mortgage-backed securities 26,314 7.48 488 27,301 6.82 476
Other debt securities (4) 4,205 8.00 65 4,588 7.62 62
-------- ----- ------- -----
Total debt securities available for sale (4) 35,311 7.45 635 40,065 6.76 671
Mortgages held for sale (3) 11,895 7.74 232 11,132 7.12 202
Loans held for sale (3) 4,410 8.59 95 4,844 7.62 93
Loans:
Commercial 48,576 9.48 1,157 40,420 8.92 909
Real estate 1-4 family first mortgage 18,293 7.97 365 13,467 7.89 266
Other real estate mortgage 23,597 8.86 525 19,895 8.59 430
Real estate construction 7,576 10.01 191 5,945 9.53 143
Consumer:
Real estate 1-4 family junior lien mortgage 17,510 10.67 468 12,579 10.11 319
Credit card 6,160 15.14 233 5,603 13.66 191
Other revolving credit and monthly payment 22,576 12.25 692 20,327 12.23 623
-------- ----- ------- -----
Total consumer 46,246 12.04 1,393 38,509 11.75 1,133
Lease financing 9,984 7.46 186 9,520 7.98 190
Foreign 1,588 21.18 84 1,572 20.87 83
-------- ----- ------- -----
Total loans (5) 155,860 9.98 3,901 129,328 9.71 3,154
Other 3,049 6.64 51 4,085 4.43 45
-------- ------ -------- -----
Total earning assets $212,653 9.33 4,943 $191,616 8.72 4,192
======== ------ ======== -----
FUNDING SOURCES
Deposits:
Interest-bearing checking $ 3,664 2.24 21 $ 3,062 1.13 9
Market rate and other savings 65,404 3.02 497 61,399 2.27 351
Savings certificates 30,923 5.66 440 29,020 4.84 354
Other time deposits 4,932 5.98 73 3,833 4.98 48
Deposits in foreign offices 6,327 6.38 102 2,244 5.12 29
-------- ------ -------- -----
Total interest-bearing deposits 111,250 4.05 1,133 99,558 3.15 791
Short-term borrowings 27,253 6.54 448 24,930 5.48 344
Long-term debt 31,336 6.88 540 27,233 6.11 416
Guaranteed preferred beneficial interests in Company's
subordinated debentures 935 7.97 19 935 7.83 18
-------- ------ -------- -----
Total interest-bearing liabilities 170,774 4.99 2,140 152,656 4.09 1,569
Portion of noninterest-bearing funding sources 41,879 -- -- 38,960 -- --
-------- ------ -------- -----
Total funding sources $212,653 4.03 2,140 $191,616 3.26 1,569
======== ------ ======== -----
NET INTEREST MARGIN AND NET INTEREST INCOME ON
A TAXABLE-EQUIVALENT BASIS (6) 5.30% $2,803 5.46% $2,623
==== ====== ===== ======
NONINTEREST-EARNING ASSETS
Cash and due from banks $ 13,758 $ 13,075
Goodwill 9,215 7,953
Other 24,345 19,045
------- --------
Total noninterest-earning assets $ 47,318 $ 40,073
======== ========
NONINTEREST-BEARING FUNDING SOURCES
Deposits $ 51,856 $ 45,408
Other liabilities 11,028 10,050
Preferred stockholders' equity 266 461
Common stockholders' equity 26,047 23,114
Noninterest-bearing funding sources used to
fund earning assets (41,879) (38,960)
------- --------
Net noninterest-bearing funding sources $ 47,318 $ 40,073
======== ========
TOTAL ASSETS $259,971 $231,689
======== ========
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average prime rate of the Company was 9.50 % and 8.37% for the quarters
ended December 31, 2000 and 1999, respectively. The average three-month
London Interbank Offered Rate (LIBOR) was 6.69% and 6.14% 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 computed on a settlement date
basis.
(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-
<TABLE>
<CAPTION>
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
----------------------------------------------------------------------------------------------------------------------------------
Year ended December 31,
------------------------------------------------------------------
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 $ 2,370 6.01% $ 143 $ 1,673 5.11% $86
Debt securities available for sale (3):
Securities of U.S. Treasury and federal agencies 3,322 6.16 210 6,124 5.51 348
Securities of U.S. states and political subdivisions 2,080 7.74 162 2,119 8.12 168
Mortgage-backed securities:
Federal agencies 26,054 7.22 1,903 23,542 6.77 1,599
Private collateralized mortgage obligations 2,379 7.61 187 3,945 6.77 270
------- ------- -------- -------
Total mortgage-backed securities 28,433 7.25 2,090 27,487 6.77 1,869
Other debt securities (4) 5,049 7.93 261 3,519 7.49 209
------- ------- -------- -------
Total debt securities available for sale (4) 38,884 7.24 2,723 39,249 6.69 2,594
Mortgages held for sale (3) 10,725 7.85 849 13,559 6.96 951
Loans held for sale (3) 4,915 8.50 418 5,154 7.31 377
Loans:
Commercial 45,352 9.40 4,263 38,932 8.66 3,370
Real estate 1-4 family first mortgage 16,356 7.95 1,300 13,315 7.78 1,036
Other real estate mortgage 22,509 8.99 2,023 18,822 8.74 1,645
Real estate construction 6,934 10.02 695 5,260 9.56 503
Consumer:
Real estate 1-4 family junior lien mortgage 15,292 10.43 1,595 11,656 9.96 1,161
Credit card 5,867 14.58 856 5,686 13.77 783
Other revolving credit and monthly payment 21,824 12.06 2,631 19,561 11.88 2,324
------- ------- -------- -------
Total consumer 42,983 11.82 5,082 36,903 11.57 4,268
Lease financing 9,822 7.66 752 8,852 7.81 691
Foreign 1,621 21.15 343 1,554 20.65 321
------- ------- -------- -------
Total loans (5) 145,577 9.93 14,458 123,638 9.57 11,834
Other 3,206 6.21 199 3,252 5.01 162
------- ------- -------- -------
Total earning assets $205,677 9.19 18,790 $186,525 8.60 16,004
======== ------- ======== ------
FUNDING SOURCES
Deposits:
Interest-bearing checking $ 3,424 1.88 64 $ 3,120 .99 31
Market rate and other savings 63,577 2.81 1,786 60,901 2.30 1,399
Savings certificates 30,101 5.37 1,616 30,088 4.86 1,462
Other time deposits 4,438 5.69 253 3,957 4.94 196
Deposits in foreign offices 5,950 6.22 370 1,658 4.76 79
------- ------- ------- -------
Total interest-bearing deposits 107,490 3.80 4,089 99,724 3.17 3,167
Short-term borrowings 28,222 6.23 1,758 22,559 5.00 1,127
Long-term debt 29,000 6.69 1,939 24,646 5.90 1,453
Guaranteed preferred beneficial interests in Company's
subordinated debentures 935 7.92 74 935 7.73 72
------- ------- ------- -------
Total interest-bearing liabilities 165,647 4.75 7,860 147,864 3.94 5,819
Portion of noninterest-bearing funding sources 40,030 -- -- 38,661 -- --
-------- ------- -------- -------
Total funding sources $205,677 3.84 7,860 $186,525 3.13 5,819
======== ------- ======== -------
NET INTEREST MARGIN AND NET INTEREST INCOME ON
A TAXABLE-EQUIVALENT BASIS (6) 5.35% $10,930 5.47% $10,185
==== ======= ===== =======
NONINTEREST-EARNING ASSETS
Cash and due from banks $ 13,103 $ 12,252
Goodwill 8,811 7,983
Other 22,597 18,339
-------- --------
Total noninterest-earning assets $ 44,511 $ 38,574
======== ========
NONINTEREST-BEARING FUNDING SOURCES
Deposits $ 48,691 $ 45,201
Other liabilities 11,000 8,909
Preferred stockholders' equity 266 461
Common stockholders' equity 24,584 22,664
Noninterest-bearing funding sources used to
fund earning assets (40,030) (38,661)
-------- --------
Net noninterest-bearing funding sources $ 44,511 $ 38,574
======== ========
TOTAL ASSETS $250,188 $225,099
======== ========
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The average prime rate of the Company was 9.24% and 8.00% for the years
ended December 31, 2000 and 1999, respectively. The average three-month
London Interbank Offered Rate (LIBOR) was 6.52% and 5.42% for the same
periods, 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 computed on a settlement date
basis.
(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.
