Wells Fargo Reports $5.7 Billion in Net Income

Diluted EPS of $1.03, Revenue of $21.3 Billion

SAN FRANCISCO--()--Wells Fargo & Company (NYSE:WFC):

  • Continued strong financial results:
    • Net income of $5.7 billion, in line with second quarter 2014
    • Diluted earnings per share (EPS) of $1.03, compared with $1.01
    • Revenue of $21.3 billion, up 1 percent
    • Return on assets (ROA) of 1.33 percent and return on equity (ROE) of 12.71 percent
  • Strong growth in average loans and deposits:
    • Total average loans of $870.4 billion, up $39.4 billion, or 5 percent, from second quarter 2014
      • Quarter-end loans of $888.5 billion, up $59.5 billion, or 7 percent
        • Quarter-end core loans1 of $832.1 billion, up $68.5 billion, or 9 percent
        • Included $11.5 billion from GE Capital loan purchase and financing transaction
    • Total average deposits of $1.2 trillion, up $83.8 billion, or 8 percent
  • Continued strength in credit quality:
    • Net charge-offs of $650 million, down $67 million from second quarter 2014
      • Net charge-off rate of 0.30 percent (annualized), down from 0.35 percent
    • Nonaccrual loans down $1.5 billion, or 11 percent
    • $350 million reserve release2
  • Maintained strong capital levels3 and continued share repurchases:
    • Common Equity Tier 1 ratio under Basel III (fully phased-in) of 10.5 percent
    • Period-end common shares outstanding down 17.7 million from first quarter 2015
    • Increased quarterly common stock dividend to $0.375 per share from $0.35

Endnotes can be found at end of release text

Selected Financial Information

       
      Quarter ended
    Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
Earnings    
Diluted earnings per common share $ 1.03 1.04 1.01
Wells Fargo net income (in billions) 5.72 5.80 5.73
Return on assets (ROA) 1.33 % 1.38 1.47
Return on equity (ROE) 12.71 13.17 13.40
Asset Quality
Net charge-offs (annualized) as a % of avg. total loans 0.30 % 0.33 0.35
Allowance for credit losses as a % of total loans 1.42 1.51 1.67
Allowance for credit losses as a % of annualized net charge-offs 484 453 481
Other
Revenue (in billions) $ 21.3 21.3 21.1
Efficiency ratio 58.5 % 58.8 57.9
Average loans (in billions) $ 870.4 863.3 831.0
Average core deposits (in billions) 1,079.2 1,063.2 991.7
Net interest margin   2.97 %   2.95     3.15
 

Wells Fargo & Company (NYSE:WFC) reported net income of $5.7 billion, or $1.03 per diluted common share, for second quarter 2015, compared with $5.7 billion, or $1.01 per share, for second quarter 2014, and $5.8 billion, or $1.04 per share, for first quarter 2015.

“Wells Fargo’s second quarter results reflected continued strength in the fundamental drivers of long term growth,” said Chairman and CEO John Stumpf. “Compared with a year ago, we grew loans, deposits and capital, and our balance sheet remained strong. Credit results also improved and we continued to adhere to our disciplined approach to risk management. As the economic and interest rate environments evolved, our diversified business model continued to generate strong results for shareholders, and we were pleased to increase our common stock dividend 7 percent in the second quarter, to $0.375 per share. Wells Fargo is well positioned for the future and I remain confident in the ability of our 266,000 team members to help our customers succeed financially and to serve our communities.”

Chief Financial Officer John Shrewsberry said, “Wells Fargo’s second quarter results once again reflected the benefit of our balanced business model. Compared with the first quarter, revenue increased on net interest income growth and expenses declined. Our balance sheet remained strong, as evidenced by solid asset quality, liquidity and capital, and we were within our targeted ranges for ROA, ROE and efficiency.”

Net Interest Income

Net interest income increased $284 million from first quarter 2015 to $11.3 billion, primarily due to broad-based asset growth including investment securities, loans, trading assets and mortgages held-for-sale. The quarter also included one additional day, accounting for approximately 25 percent of the increase in net interest income relative to the first quarter. Net interest income also benefited from increased income from variable sources, lower deposit costs, and higher income from interest rate swaps used to convert a portion of our floating rate commercial loans to fixed rate as we continued to add duration to our balance sheet.

Net interest margin was 2.97 percent, up 2 basis points from first quarter 2015. Many of the same factors that improved net interest income this quarter, including growth in investments and loans, and lower deposit costs, combined to improve the net interest margin by approximately 4 basis points linked-quarter, and income from variable sources contributed 1 basis point. These benefits were partially offset by growth in customer deposits, which had a minimal impact to net interest income, but was dilutive to net interest margin by 3 basis points.

Noninterest Income

Noninterest income was $10.0 billion, compared with $10.3 billion in first quarter 2015, driven by higher mortgage banking revenue, equity investment gains, deposit service charges, card fees, trust and investment fees, and insurance fees. Offsetting this growth were lower gains from trading activities and debt securities, and lower other income, primarily due to variability from the accounting related to our debt hedges.

Mortgage banking noninterest income was $1.7 billion, up $158 million from first quarter. During the second quarter, residential mortgage originations were $62 billion, up $13 billion linked quarter, while the gain on sale ratio4 was 1.88 percent, compared with 2.06 percent in first quarter. Net mortgage servicing rights (MSRs) results were $107 million, compared with $108 million in first quarter 2015.

Noninterest Expense

Noninterest expense declined $38 million from the prior quarter to $12.5 billion, primarily due to lower employee benefits, which were seasonally elevated in first quarter 2015. This decline was partially offset by higher operating losses, reflecting higher litigation accruals for various legal matters, as well as higher salaries, outside professional services, and advertising and promotion expense. The efficiency ratio improved to 58.5 percent in second quarter 2015, compared with 58.8 percent in the prior quarter. The Company expects to operate within its targeted efficiency ratio range of 55 to 59 percent for full year 2015.

Loans

Total loans were $888.5 billion at June 30, 2015, up $27.2 billion from March 31, 2015. Growth was broad-based and was led by commercial and industrial, and commercial real estate, which included $11.5 billion from the GE Capital loan purchase and financing transaction announced in the first quarter. Core loan growth was $29.4 billion, as non-strategic/liquidating portfolios declined $2.2 billion in the quarter. Total average loans were $870.4 billion in the second quarter, up $7.2 billion from the first quarter.

         
  June 30, 2015   March 31, 2015
 
(in millions)   Core   Non-strategic

and liquidating (a)

  Total   Core   Non-strategic

and liquidating

  Total
Commercial $ 437,430   592   438,022 414,600   699   415,299
Consumer   394,670     55,767     450,437     388,077     57,855     445,932  
Total loans   $ 832,100     56,359     888,459     802,677     58,554     861,231  
Change from prior quarter:   $ 29,423     (2,195 )   27,228     914     (2,234 )   (1,320 )
 

(a) See Non-Strategic and Liquidating Loan Portfolios table for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

 

Investment Securities

Investment securities were $340.8 billion at June 30, 2015, up $16.0 billion from first quarter. Purchases of approximately $36 billion (primarily federal agency mortgage-backed securities, U.S. Treasury, and municipal securities), were partially offset by maturities, amortization and sales.

Net unrealized available-for-sale securities gains of $5.7 billion at June 30, 2015, decreased from $7.9 billion at March 31, 2015, primarily due to higher interest rates.

Deposits

Average total deposits for second quarter 2015 were $1.2 trillion, up 4 percent (annualized) from first quarter, driven by both commercial and consumer growth. The average deposit cost for second quarter 2015 was 8 basis points, a reduction of 1 basis point from the prior quarter. Average core deposits were $1.1 trillion, up 9 percent from a year ago.

Capital

Capital levels remained strong in the second quarter, with Common Equity Tier 1 under Basel III (fully phased-in) of $139.9 billion. The Common Equity Tier 1 ratio under Basel III (fully phased-in) was 10.5 percent3. In second quarter 2015, the Company purchased 36.3 million shares of its common stock and paid a quarterly common stock dividend of $0.375 per share, up from $0.35 per share a year ago.

Credit Quality

“Credit performance remained strong during the quarter,” said Chief Risk Officer Mike Loughlin. “Credit losses were $650 million in second quarter 2015, compared with $708 million in the first quarter, an 8 percent improvement. The quarterly loss rate (annualized) was 0.30 percent with commercial losses of 0.06 percent and consumer losses of 0.53 percent. Nonperforming assets declined by $438 million, or 12 percent (annualized), from the prior quarter. Nonaccrual loans decreased $67 million as deterioration in the energy portfolio was offset by improvements across other portfolios. We released $350 million from the allowance for credit losses in the second quarter, reflecting continued credit quality improvement and more specifically, improvement in the residential real estate portfolio. Future allowance levels may increase or decrease based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”

Net Loan Charge-offs

Net loan charge-offs were $650 million in second quarter 2015, or 0.30 percent (annualized) of average loans, compared with $708 million in first quarter 2015, or 0.33 percent (annualized) of average loans.

Net Loan Charge-Offs

  Quarter ended
    June 30, 2015   March 31, 2015   December 31, 2014
($ in millions)   Net loan

charge-

offs

  As a % of

average

loans (a)

  Net loan

charge-

offs

  As a % of

average

loans (a)

  Net loan

charge-

offs

  As a % of

average

loans (a)

Commercial:      
Commercial and industrial $ 81 0.12 % $ 64 0.10 % $ 82 0.12 %
Real estate mortgage (15 ) (0.05 ) (11 ) (0.04 ) (25 ) (0.09 )
Real estate construction (6 ) (0.11 ) (9 ) (0.19 ) (26 ) (0.56 )
Lease financing   2   0.06   1   0.05
Total commercial   62   0.06 44   0.04 32   0.03
Consumer:
Real estate 1-4 family first mortgage 67 0.10 83 0.13 88 0.13
Real estate 1-4 family junior lien mortgage 94 0.66 123 0.85 134 0.88
Credit card 243 3.21 239 3.19 221 2.97
Automobile 68 0.48 101 0.73 132 0.94
Other revolving credit and installment   116   1.26 118   1.32 128   1.45
Total consumer   588   0.53 664   0.60 703   0.63
Total   $ 650   0.30 % $ 708   0.33 % $ 735   0.34 %
 

(a)  Quarterly net charge-offs as a percentage of average loans are annualized. See Purchased Credit-Impaired Loans table for explanation of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

 

 

Nonperforming Assets

Nonperforming assets declined by $438 million from first quarter 2015 to $14.4 billion. Nonaccrual loans decreased $67 million to $12.4 billion as a $388 million decline in consumer real estate nonaccrual loans, as well as improvements in other categories, were partially offset by a $416 million increase in commercial and industrial nonaccrual loans, substantially all of which was from the energy portfolio. Foreclosed assets were $2.0 billion, down from $2.3 billion in first quarter 2015.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

    June 30, 2015   March 31, 2015   December 31, 2014
($ in millions)   Total

balances

 

As a

% of

total

loans

  Total balances  

As a

% of

total

loans

  Total

balances

 

As a

% of

total

loans

Commercial:            
Commercial and industrial $ 1,079 0.38 % $ 663 0.24 % $ 538 0.20 %
Real estate mortgage 1,250 1.04 1,324 1.18 1,490 1.33
Real estate construction 165 0.77 182 0.91 187 1.00
Lease financing   28   0.23 23   0.19 24   0.20
Total commercial   2,522   0.58 2,192   0.53 2,239   0.54
Consumer:
Real estate 1-4 family first mortgage 8,045 3.00 8,345 3.15 8,583 3.23
Real estate 1-4 family junior lien mortgage 1,710 3.04 1,798 3.11 1,848 3.09
Automobile 126 0.22 133 0.24 137 0.25
Other revolving credit and installment   40   0.11 42   0.12 41   0.11
Total consumer  

9,921

  2.20 10,318   2.31 10,609   2.37
Total nonaccrual loans   12,443   1.40 12,510   1.45 12,848   1.49
Foreclosed assets:
Government insured/guaranteed 588 772 982
Non-government insured/guaranteed   1,370   1,557   1,627  
Total foreclosed assets   1,958   2,329   2,609  
Total nonperforming assets   $ 14,401   1.62 % $ 14,839   1.72 % $ 15,457   1.79 %
Change from prior quarter:
Total nonaccrual loans $ (67 ) $ (338 ) $ (517 )
Total nonperforming assets   (438 )       (618 )       (739 )    
 

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $756 million at June 30, 2015, down from $841 million at March 31, 2015. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $14.4 billion at June 30, 2015, down from $15.5 billion at March 31, 2015.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.6 billion at June 30, 2015, down from $13.0 billion at March 31, 2015. The allowance coverage to total loans was 1.42 percent, compared with 1.51 percent in first quarter 2015. The allowance covered 4.8 times annualized second quarter net charge-offs, compared with 4.5 times in the prior quarter. The allowance coverage to nonaccrual loans was 101 percent at June 30, 2015, compared with 104 percent at March 31, 2015. “We believe the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2015,” said Loughlin.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three business segments was:

     
  Quarter ended
(in millions)   Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
Community Banking $ 3,358   3,665   3,431
Wholesale Banking 2,011 1,797 1,952
Wealth, Brokerage and Retirement   602     561     544
 

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards, and auto, student, and small business lending. Community Banking also offers investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Lending business units.

Selected Financial Information

  Quarter ended
(in millions)   Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
Total revenue $ 12,661   12,784   12,606
Provision for credit losses 363 617 279
Noninterest expense 7,164 7,064 7,020
Segment net income 3,358 3,665 3,431
(in billions)
Average loans 506.5 506.4 505.4
Average assets 993.3 993.1 918.1
Average core deposits   685.7     668.9     639.8
 

Community Banking reported net income of $3.4 billion, down $307 million, or 8 percent, from first quarter 2015 primarily due to higher income taxes as first quarter 2015 included a $359 million discrete tax benefit. Revenue of $12.7 billion was $123 million, or 1 percent, lower compared with the prior quarter due to lower market sensitive revenue, mainly gains from trading activities and sale of debt securities, partially offset by higher net interest income, mortgage banking fees, deposit service charges, and card fees. Noninterest expense increased $100 million, or 1 percent, due to higher operating losses, project spending and advertising costs, partially offset by lower personnel, equipment and occupancy expenses. The provision for credit losses decreased $254 million from the prior quarter due to a $190 million higher reserve release as well as a $64 million improvement in net charge offs.

Net income was down $73 million, or 2 percent, from second quarter 2014. Revenue rose slightly from a year ago as higher net interest income, trust and investment fees, and debit and credit card fees, were mostly offset by lower gains from trading activities and lower mortgage banking fees. Noninterest expense increased $144 million, or 2 percent, from a year ago driven by higher personnel expenses and operating losses, partially offset by lower travel, occupancy and advertising expenses. The provision for credit losses increased $84 million from a year ago as the $97 million improvement in net charge-offs was more than offset by a $181 million lower reserve release.

Regional Banking

  • Retail banking
    • Primary consumer checking customers5 up 5.6 percent year-over-year6
    • Retail Bank household cross-sell ratio of 6.13 products per household, compared with 6.17 year-over-year6,7
  • Small Business/Business Banking
    • Primary business checking customers5 up 5.3 percent year-over-year6
    • Combined Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) were up 2 percent in the second quarter and up 12 percent in the first half of 2015, compared with the same periods in the prior year
    • As part of the Wells Fargo Works for Small BusinessSM initiative, Wells Fargo launched the complimentary new Business Plan Center at wellsfargoworks.com to help every business create a plan for success with over 800,000 visits since launching in May
    • Wells Fargo was the nation’s #1 SBA 7(a) small business lender in dollars and units for the first half of the 2015 federal fiscal year8
  • Online and Mobile Banking
    • 26 million active online customers, including nearly 16 million active mobile users, with continued double digit growth in mobile adoption6

Consumer Lending Group

  • Home Lending
    • Originations of $62 billion, up from $49 billion in prior quarter
    • Applications of $81 billion, down from $93 billion in prior quarter
    • Application pipeline of $38 billion at quarter end, down from $44 billion at March 31, 2015
    • Residential mortgage servicing portfolio of $1.7 trillion
  • Consumer Credit
    • Credit card penetration in retail banking households rose to 42.6 percent6, up from 39.0 percent in prior year
    • Auto originations of $8.1 billion in second quarter, up 15 percent from prior quarter and 5 percent from prior year

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products and business segments include Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments, Asset Backed Finance, and Asset Management.

Selected Financial Information

  Quarter ended
(in millions)   Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
Total revenue $ 6,083   5,912   5,946
Reversal of provision for credit losses (58 ) (6 ) (49 )
Noninterest expense 3,295 3,409 3,203
Segment net income 2,011 1,797 1,952
(in billions)
Average loans 343.6 337.6 308.1
Average assets 618.0 594.9 532.4
Average core deposits   304.2     303.4     265.8  
 

Wholesale Banking reported net income of $2.0 billion, up $214 million, or 12 percent, from first quarter 2015. Revenue of $6.1 billion increased $171 million, or 3 percent, from prior quarter. Net interest income increased $147 million, or 5 percent, on broad based loan growth, which included the GE Capital loan purchase and financing transaction, other earning asset growth and increased loan resolutions. Noninterest income increased $24 million, or 1 percent, driven by higher treasury management fees, higher real estate capital markets fees and increased gains on equity fund investments. Noninterest expense decreased $114 million, or 3 percent, linked quarter on seasonally lower personnel expense. The provision for credit losses decreased $52 million from prior quarter.

Net income was up $59 million, or 3 percent, from second quarter 2014. Revenue increased $137 million, or 2 percent, from second quarter 2014 on strong loan and deposit growth, higher commercial real estate brokerage, treasury management, real estate capital markets fees and gains on equity fund investments. Noninterest expense increased $92 million, or 3 percent, from a year ago primarily due to higher personnel expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses decreased $9 million from a year ago.

  • Average loans increased 12 percent in second quarter 2015, compared with second quarter 2014, on broad-based growth, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, equipment finance, government and institutional banking, and real estate capital markets
  • Cross-sell of 7.3 products per relationship, up from 7.2 in second quarter 20149
  • Treasury management revenue up 10 percent from second quarter 2014
  • Total assets under management down $2 billion from second quarter 2014 as fixed income net client inflows were more than offset by equity and stable value outflows

Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a planning approach to meet each client’s financial needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions, including financial planning, private banking, credit, investment management and fiduciary services. Abbot Downing, a Wells Fargo business, provides comprehensive wealth management services to ultra high net worth families and individuals as well as endowments and foundations. Brokerage serves customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the United States. Retirement is a national leader in providing institutional retirement and trust services (including 401(k) and pension plan record keeping) for businesses and reinsurance services for the life insurance industry.

Selected Financial Information

  Quarter ended
(in millions)   Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
Total revenue $ 3,739   3,733   3,550
Reversal of provision for credit losses (10 ) (3 ) (25 )
Noninterest expense 2,775 2,831 2,695
Segment net income 602 561 544
(in billions)
Average loans 59.3 56.9 51.0
Average assets 193.3 195.7 187.6
Average core deposits   159.4     161.4     153.0  
 

Wealth, Brokerage and Retirement (WBR) reported net income of $602 million, up $41 million, or 7 percent, from first quarter 2015. Revenue of $3.7 billion increased $6 million from the prior quarter, predominantly driven by higher asset-based fees, partially offset by lower gains on deferred compensation plan investments (offset in compensation expense) and lower brokerage transaction revenue. Noninterest expense decreased $56 million, or 2 percent, from the prior quarter, as lower personnel expenses and lower deferred compensation plan expense (offset in trading revenue) were partially offset by higher operating losses reflecting increased litigation accruals. The provision for credit losses decreased $7 million from first quarter 2015.

Net income was up $58 million, or 11 percent, from second quarter 2014. Revenue increased $189 million, or 5 percent, from a year ago on growth in asset-based fees and net interest income, partially offset by lower gains on deferred compensation plan investments (offset in compensation expense). Noninterest expense increased $80 million, or 3 percent, from a year ago primarily due to increased litigation accruals and higher broker commissions, partially offset by lower deferred compensation plan expense (offset in trading revenue). The provision for credit losses increased $15 million from a year ago.

Retail Brokerage

  • Client assets of $1.4 trillion, up 1 percent from prior year
  • Managed account assets of $434 billion, increased $25 billion, or 6 percent, from prior year, primarily driven by net flows
  • Strong loan growth, with average balances up 25 percent from prior year largely due to growth in non-conforming mortgages and security-based lending

Wealth Management

  • Client assets of $224 billion, up 2 percent from prior year
  • Average loan balances up 12 percent over prior year driven by growth in non-conforming mortgages, commercial and security-based lending

Retirement

  • IRA assets of $365 billion, up 2 percent from prior year
  • Institutional Retirement plan assets of $346 billion, up 2 percent from prior year

WBR cross-sell ratio of 10.53 products per household, up from 10.44 a year ago6

Conference Call

The Company will host a live conference call on Tuesday, July 14, at 7 a.m. PDT (10 a.m. EDT). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~071415_am.

A replay of the conference call will be available beginning at 10 a.m. PDT (1 p.m. EDT) on July 14 through Tuesday, July 21. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #46479315. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~071415_am.

Endnotes

1  

See table under Loans header for more information on core and non-strategic/liquidating loan portfolios.

2 Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
3

See Common Equity Tier 1 Under Basel III table for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.

4 Net gains on mortgage loan origination/or sales activities less repurchase reserve build/release divided by total originations.
5 Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.
6 Data as of May 2015, comparisons with May 2014.
7 May 2015 Retail Bank household cross-sell ratio includes the impact of the sale of government guaranteed student loans in fourth quarter 2014.
8 U.S. SBA data, partial fiscal year as of March 2015 (federal fiscal full-year 2015 is October 2014-September 2015).
9 Cross-sell reported on a one-quarter lag.
 

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our other documents filed or furnished with the SEC, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our noninterest expense and efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses and allowance levels; (iv) the appropriateness of the allowance for credit losses; (v) our expectations regarding net interest income and net interest margin; (vi) loan growth or the reduction or mitigation of risk in our loan portfolios; (vii) future capital levels or targets and our estimated Common Equity Tier 1 ratio under Basel III capital standards; (viii) the performance of our mortgage business and any related exposures; (ix) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (x) future common stock dividends, common share repurchases and other uses of capital; (xi) our targeted range for return on assets and return on equity; (xii) the outcome of contingencies, such as legal proceedings; and (xiii) the Company’s plans, objectives and strategies.

Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

  • current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;
  • our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
  • financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
  • the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
  • the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
  • negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
  • our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
  • the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
  • a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;
  • the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
  • reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;
  • a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
  • the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
  • fiscal and monetary policies of the Federal Reserve Board; and
  • the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.

For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Wells Fargo

Wells Fargo & Company (NYSE:WFC) is a nationwide, diversified, community-based financial services company with $1.7 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 266,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially.

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS

     
  Pages
 

Summary Information

Summary Financial Data

16
 

Income

Consolidated Statement of Income 18
Consolidated Statement of Comprehensive Income 20
Condensed Consolidated Statement of Changes in Total Equity 20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) 21
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis) 23
Noninterest Income and Noninterest Expense 24
 

Balance Sheet

Consolidated Balance Sheet 26
Investment Securities 28
 

Loans

Loans 28
Nonperforming Assets 29
Loans 90 Days or More Past Due and Still Accruing 30
Purchased Credit-Impaired Loans 31
Pick-A-Pay Portfolio 32
Non-Strategic and Liquidating Loan Portfolios 32
Changes in Allowance for Credit Losses 33
 

Equity

Common Equity Tier 1 Under Basel III 35
 

Operating Segments

Operating Segment Results 36
 

Other

Mortgage Servicing and other related data 38
 

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

  Quarter ended  

% Change
Jun 30, 2015 from

  Six months ended  
($ in millions, except per share amounts)   Jun 30,
2015
  Mar 31,
2015
  Jun 30,
2014
  Mar 31,
2015
  Jun 30,
2014
  Jun 30,
2015
  Jun 30,
2014
  %
Change
For the Period        
Wells Fargo net income $ 5,719 5,804 5,726 (1

)%

$

11,523

11,619 (1 )%
Wells Fargo net income applicable to common stock 5,363 5,461 5,424 (2 ) (1 ) 10,824 11,031 (2 )
Diluted earnings per common share 1.03 1.04 1.01 (1 ) 2 2.07 2.06
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA) 1.33 % 1.38 1.47 (4 ) (10 ) 1.35 1.52 (11 )
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE) 12.71 13.17 13.40 (3 ) (5 ) 12.94 13.86 (7 )
Efficiency ratio (1) 58.5 58.8 57.9 (1 ) 1 58.6 57.9 1
Total revenue $ 21,318 21,278 21,066 1 $ 42,596 41,691 2
Pre-tax pre-provision profit (PTPP) (2) 8,849 8,771 8,872 1 17,620 17,549
Dividends declared per common share 0.375 0.35 0.35 7 7 0.725 0.65 12
Average common shares outstanding 5,151.9 5,160.4 5,268.4 (2 ) 5,156.1 5,265.6 (2 )
Diluted average common shares outstanding 5,220.5 5,243.6 5,350.8 (2 ) 5,233.2 5,353.2 (2 )
Average loans $ 870,446 863,261 831,043 1 5 $ 866,873 827,436 5
Average assets 1,729,278 1,707,798 1,564,003 1 11 1,718,597 1,545,060 11
Average core deposits (3) 1,079,160 1,063,234 991,727 1 9 1,071,241 982,814 9
Average retail core deposits (4) 741,500 731,413 698,763 1 6 736,484 694,726 6
Net interest margin 2.97 % 2.95 3.15 1 (6 ) 2.96 3.17 (7 )
At Period End
Investment securities $ 340,769 324,736 279,069 5 22 $ 340,769 279,069 22
Loans 888,459 861,231 828,942 3 7 888,459 828,942 7
Allowance for loan losses 11,754 12,176 13,101 (3 ) (10 ) 11,754 13,101 (10 )
Goodwill 25,705 25,705 25,705 25,705 25,705
Assets 1,720,617 1,737,737 1,598,874 (1 ) 8 1,720,617 1,598,874 8
Core deposits (3) 1,082,634 1,086,993 1,007,485 7 1,082,634 1,007,485 7
Wells Fargo stockholders’ equity 189,558 188,796 180,859 5 189,558 180,859 5
Total equity 190,676 189,964 181,549 5 190,676 181,549 5
Common shares outstanding 5,145.2 5,162.9 5,249.9 (2 ) 5,145.2 5,249.9 (2 )
Book value per common share $ 32.96 32.70 31.18 1 6 $ 32.96 31.18 6
Common stock price:
High 58.26 56.29 53.05 3 10 58.26 53.05 10
Low 53.56 50.42 46.72 6 15 50.42 44.17 14
Period end 56.24 54.40 52.56 3 7 56.24 52.56 7
Team members (active, full-time equivalent)   265,800     266,000     263,500         1     265,800     263,500     1  

(1)  The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

(2)  Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

(3)  Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).

(4)  Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.

 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA

  Quarter ended
($ in millions, except per share amounts)   Jun 30,
2015
  Mar 31,
2015
  Dec 31,
2014
  Sep 30,
2014
  Jun 30,
2014
For the Quarter        
Wells Fargo net income $ 5,719 5,804 5,709 5,729 5,726
Wells Fargo net income applicable to common stock 5,363 5,461 5,382 5,408 5,424
Diluted earnings per common share 1.03 1.04 1.02 1.02 1.01
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA) 1.33 % 1.38 1.36 1.40 1.47
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE) 12.71 13.17 12.84 13.10 13.40
Efficiency ratio (1) 58.5 58.8 59.0 57.7 57.9
Total revenue $ 21,318 21,278 21,443 21,213 21,066
Pre-tax pre-provision profit (PTPP) (2) 8,849 8,771 8,796 8,965 8,872
Dividends declared per common share 0.375 0.35 0.35 0.35 0.35
Average common shares outstanding 5,151.9 5,160.4 5,192.5 5,225.9 5,268.4
Diluted average common shares outstanding 5,220.5 5,243.6 5,279.2 5,310.4 5,350.8
Average loans $ 870,446 863,261 849,429 833,199 831,043
Average assets 1,729,278 1,707,798 1,663,760 1,617,942 1,564,003
Average core deposits (3) 1,079,160 1,063,234 1,035,999 1,012,219 991,727
Average retail core deposits (4) 741,500 731,413 714,572 703,062 698,763
Net interest margin 2.97 % 2.95 3.04 3.06 3.15
At Quarter End
Investment securities $ 340,769 324,736 312,925 289,009 279,069
Loans 888,459 861,231 862,551 838,883 828,942
Allowance for loan losses 11,754 12,176 12,319 12,681 13,101
Goodwill 25,705 25,705 25,705 25,705 25,705
Assets 1,720,617 1,737,737 1,687,155 1,636,855 1,598,874
Core deposits (3) 1,082,634 1,086,993 1,054,348 1,016,478 1,007,485
Wells Fargo stockholders’ equity 189,558 188,796 184,394 182,481 180,859
Total equity 190,676 189,964 185,262 182,990 181,549
Common shares outstanding 5,145.2 5,162.9 5,170.3 5,215.0 5,249.9
Book value per common share $ 32.96 32.70 32.19 31.55 31.18
Common stock price:
High 58.26 56.29 55.95 53.80 53.05
Low 53.56 50.42 46.44 49.47 46.72
Period end 56.24 54.40 54.82 51.87 52.56
Team members (active, full-time equivalent)   265,800     266,000     264,500     263,900     263,500

(1)  The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

(2)  Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

(3)  Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).

(4)  Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.

 

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

  Quarter ended Jun 30,   %   Six Months Ended June 30,   %
(in millions, except per share amounts)   2015   2014   Change   2015   2014   Change
Interest income    
Trading assets $ 483 407 19 % $ 928 781 19 %
Investment securities 2,181 2,112 3 4,325 4,222 2 %
Mortgages held for sale 209 195 7 386 365 6 %
Loans held for sale 5 1 400 10 3 233 %
Loans 9,098 8,852 3 18,036 17,598 2 %
Other interest income   250     226   11   504     436   16 %
Total interest income   12,226     11,793   4   24,189     23,405   3 %
Interest expense
Deposits 232 275 (16 ) 490 554 (12 )
Short-term borrowings 21 14 50 39 26 50
Long-term debt 620 620 1,224 1,239 (1 )
Other interest expense   83     93   (11 )   180     180  
Total interest expense   956     1,002   (5 )   1,933     1,999   (3 )
Net interest income 11,270 10,791 4 22,256 21,406 4
Provision for credit losses   300     217   38   908     542   68
Net interest income after provision for credit losses   10,970     10,574   4   21,348     20,864   2
Noninterest income
Service charges on deposit accounts 1,289 1,283 2,504 2,498
Trust and investment fees 3,710 3,609 3 7,387 7,021 5
Card fees 930 847 10 1,801 1,631 10
Other fees 1,107 1,088 2 2,185 2,135 2
Mortgage banking 1,705 1,723 (1 ) 3,252 3,233 1
Insurance 461 453 2 891 885 1
Net gains from trading activities 133 382 (65 ) 541 814 (34 )
Net gains on debt securities 181 71 155 459 154 198
Net gains from equity investments 517 449 15 887 1,296 (32 )
Lease income 155 129 20 287 262 10
Other   (140 )   241   NM   146     356   (59 )
Total noninterest income   10,048     10,275   (2 )   20,340     20,285  
Noninterest expense
Salaries 3,936 3,795 4 7,787 7,523 4
Commission and incentive compensation 2,606 2,445 7 5,291 4,861 9
Employee benefits 1,106 1,170 (5 ) 2,583 2,542 2
Equipment 470 445 6 964 935 3
Net occupancy 710 722 (2 ) 1,433 1,464 (2 )
Core deposit and other intangibles 312 349 (11 ) 624 690 (10 )
FDIC and other deposit assessments 222 225 (1 ) 470 468
Other   3,107     3,043   2   5,824     5,659   3
Total noninterest expense   12,469     12,194   2   24,976     24,142   3
Income before income tax expense 8,549 8,655 (1 ) 16,712 17,007 (2 )
Income tax expense   2,763     2,869   (4 )   5,042     5,146   (2 )
Net income before noncontrolling interests 5,786 5,786 11,670 11,861 (2 )
Less: Net income from noncontrolling interests   67     60   12   147     242   (39 )
Wells Fargo net income   $ 5,719     5,726     $ 11,523     11,619   (1 )
Less: Preferred stock dividends and other   356     302   18   699     588   19
Wells Fargo net income applicable to common stock   $ 5,363     5,424   (1 )   $ 10,824     11,031   (2 )
Per share information
Earnings per common share $ 1.04 1.02 2 $ 2.10 2.09
Diluted earnings per common share 1.03 1.01 2 2.07 2.06
Dividends declared per common share 0.375 0.35 7 0.725 0.65 12
Average common shares outstanding 5,151.9 5,268.4 (2 ) 5,156.1 5,265.6 (2 )
Diluted average common shares outstanding   5,220.5     5,350.8     (2 )   5,233.2     5,353.2     (2 )
 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

  Quarter ended
(in millions, except per share amounts)   Jun 30,
2015
  Mar 31,
2015
  Dec 31,
2014
  Sep 30,
2014
  Jun 30,
2014
Interest Income        
Trading assets $ 483 445 477 427 407
Investment securities 2,181 2,144 2,150 2,066 2,112
Mortgages held for sale 209 177 187 215 195
Loans held for sale 5 5 25 50 1
Loans 9,098 8,938 9,091 8,963 8,852
Other interest income   250     254     253     243     226
Total interest income   12,226     11,963     12,183     11,964     11,793
Interest expense
Deposits 232 258 269 273 275
Short-term borrowings 21 18 18 15 14
Long-term debt 620 604 620 629 620
Other interest expense   83     97     96     106     93
Total interest expense   956     977     1,003     1,023     1,002
Net interest income 11,270 10,986 11,180 10,941 10,791
Provision for credit losses   300     608     485     368     217
Net interest income after provision for credit losses   10,970     10,378     10,695     10,573     10,574
Noninterest income
Service charges on deposit accounts 1,289 1,215 1,241 1,311 1,283
Trust and investment fees 3,710 3,677 3,705 3,554 3,609
Card fees 930 871 925 875 847
Other fees 1,107 1,078 1,124 1,090 1,088
Mortgage banking 1,705 1,547 1,515 1,633 1,723
Insurance 461 430 382 388 453
Net gains from trading activities 133 408 179 168 382
Net gains on debt securities 181 278 186 253 71
Net gains from equity investments 517 370 372 712 449
Lease income 155 132 127 137 129
Other   (140 )   286     507     151     241
Total noninterest income   10,048     10,292     10,263     10,272     10,275
Noninterest expense
Salaries 3,936 3,851 3,938 3,914 3,795
Commission and incentive compensation 2,606 2,685 2,582 2,527 2,445
Employee benefits 1,106 1,477 1,124 931 1,170
Equipment 470 494 581 457 445
Net occupancy 710 723 730 731 722
Core deposit and other intangibles 312 312 338 342 349
FDIC and other deposit assessments 222 248 231 229 225
Other   3,107     2,717     3,123     3,117     3,043
Total noninterest expense   12,469     12,507     12,647     12,248     12,194
Income before income tax expense 8,549 8,163 8,311 8,597 8,655
Income tax expense   2,763     2,279     2,519     2,642     2,869
Net income before noncontrolling interests 5,786 5,884 5,792 5,955 5,786
Less: Net income from noncontrolling interests   67     80     83     226     60
Wells Fargo net income   $ 5,719     5,804     5,709     5,729     5,726
Less: Preferred stock dividends and other   356     343     327     321     302
Wells Fargo net income applicable to common stock   $ 5,363     5,461     5,382     5,408     5,424
Per share information
Earnings per common share $ 1.04 1.06 1.04 1.04 1.02
Diluted earnings per common share 1.03 1.04 1.02 1.02 1.01
Dividends declared per common share 0.375 0.35 0.35 0.35 0.35
Average common shares outstanding 5,151.9 5,160.4 5,192.5 5,225.9 5,268.4
Diluted average common shares outstanding   5,220.5     5,243.6     5,279.2     5,310.4     5,350.8
 

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

  Quarter ended June 30,   %   Six months ended June 30,   %
(in millions)   2015   2014   Change   2015   2014   Change
Wells Fargo net income   $ 5,719     5,726   —% $ 11,523     11,619   (1)%
Other comprehensive income (loss), before tax:    
Investment securities:
Net unrealized gains (losses) arising during the period (1,969 ) 2,085 NM (1,576 ) 4,810 NM
Reclassification of net gains to net income (218 ) (150 ) 45 (518 ) (544 ) (5)
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period (488 ) 212 NM 464 256 81
Reclassification of net gains on cash flow hedges to net income (268 ) (115 ) 133 (502 ) (221 ) 127
Defined benefit plans adjustments:
Net actuarial losses arising during the period (12 ) (100) (11 ) (12 ) (8)
Amortization of net actuarial loss, settlements and other to net income 30 20 50 73 38 92
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period 10 17 (41) (45 ) NM
Reclassification of net losses to net income             6   (100)
Other comprehensive income (loss), before tax (2,903 ) 2,057 NM (2,115 ) 4,333 NM
Income tax (expense) benefit related to other comprehensive income   1,040     (816 ) NM 812     (1,647 ) NM
Other comprehensive income (loss), net of tax (1,863 ) 1,241 NM (1,303 ) 2,686 NM
Less: Other comprehensive income (loss) from noncontrolling interests   (154 )   (124 ) 24 147     (45 ) NM
Wells Fargo other comprehensive income (loss), net of tax   (1,709 )   1,365   NM (1,450 )   2,731   NM
Wells Fargo comprehensive income 4,010 7,091 (43) 10,073 14,350 (30)
Comprehensive income (loss) from noncontrolling interests   (87 )   (64 ) 36 294     197   49
Total comprehensive income   $ 3,923     7,027     (44)   $ 10,367     14,547     (29)

NM - Not meaningful

 

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

  Quarter ended
(in millions)   Jun 30,
2015
  Mar 31,
2015
  Dec 31,
2014
  Sep 30,
2014
  Jun 30,
2014
Balance, beginning of period $ 189,964   185,262   182,990   181,549   176,469
Wells Fargo net income 5,719 5,804 5,709 5,729 5,726
Wells Fargo other comprehensive income (loss), net of tax (1,709 ) 259 400 (999 ) 1,365
Noncontrolling interests (51 ) 301 353 (181 ) (125 )
Common stock issued 502 1,327 508 402 579
Common stock repurchased (1) (1,994 ) (2,592 ) (2,945 ) (2,490 ) (2,954 )
Preferred stock released by ESOP 349 41 166 170 430
Common stock warrants repurchased/exercised (24 ) (8 ) (9 )
Preferred stock issued 1,997 780 1,995
Common stock dividends (1,932 ) (1,805 ) (1,816 ) (1,828 ) (1,844 )
Preferred stock dividends (355 ) (344 ) (327 ) (321 ) (302 )
Tax benefit from stock incentive compensation 55 354 75 48 61
Stock incentive compensation expense 166 376 176 144 164
Net change in deferred compensation and related plans   (14 )   (1,008 )   (18 )   (13 )   (15 )
Balance, end of period   $ 190,676     189,964     185,262     182,990     181,549  

(1) For the quarter ended June 30, 2015, includes $750 million related to a private forward repurchase transaction that settled in third quarter 2015 for 13.6 million shares of common stock. For the quarters ended March 31, 2015, and December 31, September 30, and June 30, 2014, includes $750 million, $750 million, $1.0 billion, and $1.0 billion, respectively, related to private forward repurchase transactions that settled in subsequent quarters for 14.0 million, 14.3 million, 19.8 million, and 19.5 million shares of common stock, respectively.

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

  Quarter ended June 30,
2015     2014
(in millions)   Average

balance

    Yields/

rates

    Interest

income/

expense

    Average

balance

    Yields/

rates

    Interest

income/

expense

Earning assets          
Federal funds sold, securities purchased under resale agreements and other short-term investments $ 267,101 0.28

 %

$ 186 229,770 0.28

 %

$ 161
Trading assets 67,615 2.91 492 54,347 3.05 414
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies 31,748 1.58 125 6,580 1.78 29
Securities of U.S. states and political subdivisions 47,075 4.13 486 42,721 4.26 456
Mortgage-backed securities:
Federal agencies 97,958 2.65 650 116,475 2.85 831
Residential and commercial   22,677   5.84 331   27,252   6.11 416
Total mortgage-backed securities 120,635 3.25 981 143,727 3.47 1,247
Other debt and equity securities   48,816   3.51 427   48,734   3.76 457
Total available-for-sale securities   248,274   3.25 2,019   241,762   3.62 2,189
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies 44,492 2.19 243 10,829 2.20 59
Securities of U.S. states and political subdivisions 2,090 5.17 27 8 6.00
Federal agency mortgage-backed securities 21,044 2.00 105 6,089 2.74 42
Other debt securities   6,270   1.70 26   5,206   1.90 25
Total held-to-maturity securities   73,896   2.18 401   22,132   2.28 126
Total investment securities 322,170 3.01 2,420 263,894 3.51 2,315
Mortgages held for sale (4) 23,456 3.57 209 18,824 4.16 195
Loans held for sale (4) 666 3.51 5 157 2.55 1
Loans:
Commercial:
Commercial and industrial - U.S. 231,551 3.36 1,939 199,246 3.39 1,687
Commercial and industrial - Non U.S. 45,123 1.93 217 43,045 2.06 221
Real estate mortgage 113,089 3.48 982 112,795 3.61 1,016
Real estate construction 20,771 4.12 214 17,458 4.18 182
Lease financing   12,364   5.16 160   12,151   5.68 172
Total commercial   422,898   3.33 3,512   384,695   3.42 3,278
Consumer:
Real estate 1-4 family first mortgage 266,023 4.12 2,740 259,985 4.20 2,729
Real estate 1-4 family junior lien mortgage 57,066 4.23 603 63,305 4.31 680
Credit card 30,373 11.69 885 26,442 11.97 790
Automobile 56,974 5.88 836 53,480 6.34 845
Other revolving credit and installment   37,112   5.88 544   43,136   5.07 545
Total consumer   447,548   5.02 5,608   446,348   5.02 5,589
Total loans (4) 870,446 4.20 9,120 831,043 4.28 8,867
Other   4,859   5.14 64   4,535   5.74 65
Total earning assets   $ 1,556,313   3.22

 %

$ 12,496   1,402,570   3.43

 %

$ 12,018
Funding sources
Deposits:
Interest-bearing checking $ 38,551 0.05

 %

$ 5 40,193 0.07

 %

$ 7
Market rate and other savings 619,837 0.06 87 583,907 0.07 101
Savings certificates 32,454 0.63 52 38,754 0.86 82
Other time deposits 52,238 0.42 55 48,512 0.41 50
Deposits in foreign offices   104,334   0.13 33   94,232   0.15 35
Total interest-bearing deposits 847,414 0.11 232 805,598 0.14 275
Short-term borrowings 84,499 0.09 21 58,845 0.10 14
Long-term debt 185,093 1.34 620 159,233 1.56 620
Other liabilities   16,405   2.03 83   13,589   2.73 93
Total interest-bearing liabilities 1,133,411 0.34 956 1,037,265 0.39 1,002
Portion of noninterest-bearing funding sources   422,902  

  365,305  

Total funding sources   $ 1,556,313   0.25   956   1,402,570   0.28   1,002
Net interest margin and net interest income on a taxable-equivalent basis (5) 2.97

 %

  $ 11,540   3.15

 %

  $ 11,016
Noninterest-earning assets
Cash and due from banks $ 17,462 15,956
Goodwill 25,705 25,699
Other   129,798   119,778  
Total noninterest-earning assets   $ 172,965   161,433  
Noninterest-bearing funding sources
Deposits $ 337,890 295,875
Other liabilities 67,595 51,184
Total equity 190,382 179,679
Noninterest-bearing funding sources used to fund earning assets   (422,902 ) (365,305 )
Net noninterest-bearing funding sources   $ 172,965   161,433  
Total assets   $ 1,729,278                 1,564,003            

(1) Our average prime rate was 3.25% for the quarters ended June 30, 2015 and 2014. The average three-month London Interbank Offered Rate (LIBOR) was 0.28% and 0.23% for the same quarters, respectively.

(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $270 million and $225 million for the quarters ended June 30, 2015 and 2014, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

 

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

  Six months ended June 30,
2015     2014
(in millions)   Average

balance

    Yields/

rates

    Interest

income/

expense

    Average

balance

    Yields/

rates

    Interest

income/

expense

Earning assets          
Federal funds sold, securities purchased under resale agreements and other short-term investments $ 271,392 0.28

 %

$ 376 221,573 0.28

 %

$ 305
Trading assets 65,309 2.89 945 51,306 3.10 795
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies 28,971 1.56 225 6,576 1.73 57
Securities of U.S. states and political subdivisions 46,017 4.16 958 42,661

4.32

921
Mortgage-backed securities:
Federal agencies 100,064 2.71 1,356 117,055 2.90 1,695
Residential and commercial   23,304   5.77 673   27,641   6.12 845
Total mortgage-backed securities 123,368 3.29 2,029 144,696 3.51 2,540
Other debt and equity securities   47,938   3.47 827   48,944   3.68 895
Total available-for-sale securities   246,294   3.28 4,039   242,877   3.64 4,413
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies 43,685 2.20 477 5,993 2.20 65
Securities of U.S. states and political subdivisions 2,019 5.16 52 4 5.97
Federal agency mortgage-backed securities 16,208 1.95 158 6,125 2.93 90
Other debt securities   6,530   1.71 55   5,807   1.88 54
Total held-to-maturity securities   68,442   2.18 742   17,929   2.34 209
Total investment securities 314,736 3.04 4,781 260,806 3.55 4,622
Mortgages held for sale (4) 21,530 3.59 386 17,696 4.13 365
Loans held for sale (4) 683 3.08 10 134 4.08 3
Loans:
Commercial:
Commercial and industrial - U.S. 229,627 3.32 3,783 196,570 3.41 3,328
Commercial and industrial - Non U.S. 45,093 1.90 426 42,616 1.99 421
Real estate mortgage 112,298 3.52 1,963 112,810 3.58 2,006
Real estate construction 20,135 3.83 383 17,265 4.28 366
Lease financing   12,341   5.06 312   12,206   5.90 360
Total commercial   419,494   3.30 6,867   381,467   3.42 6,481
Consumer:
Real estate 1-4 family first mortgage 265,923 4.12 5,481 259,737 4.19 5,434
Real estate 1-4 family junior lien mortgage 57,968 4.25 1,224 64,155 4.31 1,372
Credit card 30,376 11.74 1,768 26,363 12.14 1,588
Automobile 56,492 5.91 1,657 52,642 6.42 1,676
Other revolving credit and installment   36,620   5.94 1,079   43,072   5.03 1,076
Total consumer   447,379   5.03 11,209   445,969   5.02 11,146
Total loans (4) 866,873 4.19 18,076 827,436 4.28 17,627
Other   4,795   5.27 127   4,595   5.73 131
Total earning assets   $ 1,545,318   3.21

 %

$ 24,701   1,383,546   3.46

 %

$ 23,848
Funding sources
Deposits:
Interest-bearing checking $ 38,851 0.05

 %

$ 10 38,506 0.07

 %

$ 13
Market rate and other savings 616,643 0.06 184 581,489 0.07 206
Savings certificates 33,525 0.69 116 39,639 0.87 171
Other time deposits 54,381 0.41 111 47,174 0.42 98
Deposits in foreign offices   104,932   0.13 69   92,650   0.14 66
Total interest-bearing deposits 848,332 0.12 490 799,458 0.14 554
Short-term borrowings 78,141 0.10 39 56,686 0.10 27
Long-term debt 184,432 1.33 1,224 156,528 1.59 1,239
Other liabilities   16,648   2.17 180   13,226   2.72 180
Total interest-bearing liabilities 1,127,553 0.34 1,933 1,025,898 0.39 2,000
Portion of noninterest-bearing funding sources   417,765  

  357,648  
Total funding sources   $ 1,545,318   0.25   1,933   1,383,546   0.29   2,000
Net interest margin and net interest income on a taxable-equivalent basis (5)(6) 2.96

 %

  $ 22,768   3.17

 %

  $ 21,848
Noninterest-earning assets
Cash and due from banks $ 17,262 16,159
Goodwill 25,705 25,668
Other   130,312   119,687  
Total noninterest-earning assets   $ 173,279   161,514  
Noninterest-bearing funding sources
Deposits $ 331,745 290,004
Other liabilities 69,779 52,065
Total equity 189,520 177,093
Noninterest-bearing funding sources used to fund earning assets   (417,765 ) (357,648 )
Net noninterest-bearing funding sources   $ 173,279   161,514  
Total assets   $ 1,718,597   1,545,060  

(1) Our average prime rate was 3.25% for the six months ended June 30, 2015 and 2014. The average three-month London Interbank Offered Rate (LIBOR) was 0.27% and 0.23% for the same periods, respectively.

(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $512 million and $442 million for the six months ended June 30, 2015 and 2014, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

  Quarter ended  
    Jun 30, 2015     Mar 31, 2015     Dec 31, 2014     Sep 30, 2014     Jun 30, 2014  
($ in billions)   Average

balance

    Yields/

rates

    Average

balance

    Yields/

rates

    Average

balance

    Yields/

rates

    Average

balance

    Yields/

rates

    Average

balance

    Yields/

rates

 
Earning assets                  
Federal funds sold, securities purchased under resale agreements and other short-term investments $ 267.1 0.28

 %

$ 275.7 0.28

 %

$ 268.1 0.28

 %

$ 253.2 0.28

 %

$ 229.8 0.28

 %

Trading assets 67.6 2.91 63.0 2.88 60.4 3.21 57.5 3.00 54.4 3.05
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies 31.7 1.58 26.2 1.55 19.5 1.55 8.8 1.69 6.6 1.78
Securities of U.S. states and political subdivisions 47.1 4.13 44.9 4.20 43.9 4.30 43.3 4.24 42.7 4.26
Mortgage-backed securities:
Federal agencies 98.0 2.65 102.2 2.76 109.3 2.78 113.0 2.76 116.5 2.85
Residential and commercial   22.7   5.84 23.9   5.71 24.7   5.89 26.0   5.98 27.3   6.11
Total mortgage-backed securities 120.7 3.25 126.1 3.32 134.0 3.36 139.0 3.36 143.8 3.47
Other debt and equity securities   48.8   3.51 47.1   3.43 45.0   3.87 47.1   3.45 48.7   3.76
Total available-for-sale securities   248.3   3.25 244.3   3.32 242.4   3.48 238.2   3.48 241.8   3.62
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies 44.5 2.19 42.9 2.21 32.9 2.25 23.7 2.22 10.8 2.20
Securities of U.S. states and political subdivisions 2.1 5.17 1.9 5.16 0.9 4.92
Federal agency mortgage-backed securities 21.0 2.00 11.3 1.87 5.6 2.07 5.9 2.23 6.1 2.74
Other debt securities   6.3   1.70 6.8   1.72 6.1   1.81 5.9   1.83 5.2   1.90
Total held-to-maturity securities   73.9   2.18 62.9   2.19 45.5   2.22 35.5   2.17 22.1   2.28
Total investment securities 322.2 3.01 307.2 3.08 287.9 3.28 273.7 3.31 263.9 3.51
Mortgages held for sale 23.5 3.57 19.6 3.61 19.2 3.90 21.5 4.01 18.8 4.16
Loans held for sale 0.7 3.51 0.7 2.67 7.0 1.43 9.5 2.10 0.2 2.55
Loans:
Commercial:
Commercial and industrial - U.S. 231.5 3.36 227.7 3.28 218.3 3.32 207.6 3.29 199.2 3.39
Commercial and industrial - Non U.S. 45.1 1.93 45.1 1.88 43.0 2.03 42.4 2.11 43.0 2.06
Real estate mortgage 113.1 3.48 111.5 3.57 112.3 3.69 113.0 3.69 112.8 3.61
Real estate construction 20.8 4.12 19.5 3.52 18.3 4.33 17.8 3.94 17.5 4.18
Lease financing   12.4   5.16 12.3   4.95 12.3   5.35 12.3   5.38 12.2   5.68
Total commercial   422.9   3.33 416.1   3.26 404.2   3.39 393.1   3.37 384.7   3.42
Consumer:
Real estate 1-4 family first mortgage 266.0 4.12 265.8 4.13 264.8 4.16 262.2 4.23 260.0 4.20
Real estate 1-4 family junior lien mortgage 57.0 4.23 58.9 4.27 60.2 4.28 61.6 4.30 63.3 4.31
Credit card 30.4 11.69 30.4 11.78 29.5 11.71 27.7 11.96 26.4 11.97
Automobile 57.0 5.88 56.0 5.95 55.4 6.08 54.6 6.19 53.5 6.34
Other revolving credit and installment   37.1   5.88 36.1   6.01 35.3   6.01 34.0   6.03 43.1   5.07
Total consumer   447.5   5.02 447.2   5.05 445.2   5.06 440.1   5.11 446.3   5.02
Total loans 870.4 4.20 863.3 4.19 849.4 4.27 833.2 4.29 831.0 4.28
Other   4.8   5.14 4.7   5.41 4.8   5.30 4.7   5.41 4.5   5.74
Total earning assets   $ 1,556.3   3.22

 %

$ 1,534.2   3.21

 %

$ 1,496.8   3.31

 %

$ 1,453.3   3.34

 %

$ 1,402.6   3.43

 %

Funding sources
Deposits:
Interest-bearing checking $ 38.6 0.05

 %

$ 39.2 0.05

 %

$ 40.5 0.06

 %

$ 41.4 0.07

 %

$ 40.2 0.07

 %

Market rate and other savings 619.8 0.06 613.4 0.06 593.9 0.07 586.4 0.07 583.9 0.07
Savings certificates 32.5 0.63 34.6 0.75 35.9 0.80 37.3 0.84 38.8 0.86
Other time deposits 52.2 0.42 56.5 0.39 56.1 0.39 55.1 0.39 48.5 0.41
Deposits in foreign offices   104.3   0.13 105.5   0.14 99.3   0.15 98.9   0.14 94.2   0.15
Total interest-bearing deposits 847.4 0.11 849.2 0.12 825.7 0.13 819.1 0.13 805.6 0.14
Short-term borrowings 84.5 0.09 71.7 0.11 64.7 0.12 62.3 0.10 58.9 0.10
Long-term debt 185.1 1.34 183.8 1.32 183.3 1.35 173.0 1.46 159.2 1.56
Other liabilities   16.4   2.03 16.9   2.30 15.6   2.44 15.5   2.73 13.6   2.73
Total interest-bearing liabilities 1,133.4 0.34 1,121.6 0.35 1,089.3 0.37 1,069.9 0.38 1,037.3 0.39
Portion of noninterest-bearing funding sources   422.9   412.6   407.5   383.4   365.3  
Total funding sources   $ 1,556.3   0.25   $ 1,534.2   0.26   $ 1,496.8   0.27   $ 1,453.3   0.28   $ 1,402.6   0.28  
Net interest margin on a taxable-equivalent basis 2.97

 %

2.95

 %

3.04

 %

3.06

 %

3.15

 %

Noninterest-earning assets
Cash and due from banks $ 17.5 17.1 16.9 16.2 15.9
Goodwill 25.7 25.7 25.7 25.7 25.7
Other   129.8   130.8   124.4   122.7   119.8  
Total noninterest-earnings assets   $ 173.0   173.6   167.0   164.6   161.4  
Noninterest-bearing funding sources
Deposits $ 337.9 325.6 324.1 308.0 295.9
Other liabilities 67.6 72.0 65.7 57.9 51.1
Total equity 190.4 188.6 184.7 182.1 179.7
Noninterest-bearing funding sources used to fund earning assets   (422.9 ) (412.6 ) (407.5 ) (383.4 ) (365.3 )
Net noninterest-bearing funding sources   $ 173.0   173.6   167.0   164.6   161.4  
Total assets   $ 1,729.3           1,707.8           1,663.8           1,617.9           1,564.0        

(1) Our average prime rate was 3.25% for quarters ended June 30, and March 31, 2015, and December 31, September 30, and June 30, 2014. The average three-month London Interbank Offered Rate (LIBOR) was 0.28%, 0.26%, 0.24%, 0.23% and 0.23% for the same quarters, respectively.

(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

 

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

  Quarter ended June 30,     %   Six months ended June 30,     %
(in millions)   2015     2014     Change     2015     2014     Change  
Service charges on deposit accounts $ 1,289   1,283   $ 2,504   2,498  
Trust and investment fees:
Brokerage advisory, commissions and other fees 2,399 2,280 5 4,779 4,521 6
Trust and investment management 861 838 3 1,713 1,682 2
Investment banking   450     491   (8 ) 895     818   9
Total trust and investment fees   3,710     3,609   3 7,387     7,021   5
Card fees 930 847 10 1,801 1,631 10
Other fees:
Charges and fees on loans 304 342 (11 ) 613 709 (14 )
Merchant processing fees 202 183 10 389 355 10
Cash network fees 132 128 3 257 248 4
Commercial real estate brokerage commissions 141 99 42 270 171 58
Letters of credit fees 90 92 (2 ) 178 188 (5 )
All other fees   238     244   (2 ) 478     464   3
Total other fees   1,107     1,088   2 2,185     2,135   2
Mortgage banking:
Servicing income, net 514 1,035 (50 ) 1,037 1,973 (47 )
Net gains on mortgage loan origination/sales activities   1,191     688   73 2,215     1,260   76
Total mortgage banking   1,705     1,723   (1 ) 3,252     3,233   1
Insurance 461 453 2 891 885 1
Net gains from trading activities 133 382 (65 ) 541 814 (34 )
Net gains on debt securities 181 71 155 459 154 198
Net gains from equity investments 517 449 15 887 1,296 (32 )
Lease income 155 129 20 287 262 10
Life insurance investment income 145 138 5 290 270 7
All other   (285 )   103   NM (144 )   86   NM
Total   $ 10,048     10,275     (2 )   $ 20,340     20,285      
NM - Not meaningful
 
NONINTEREST EXPENSE                                    
Quarter ended June 30,   % Six months ended June 30,   %
(in millions)   2015     2014     Change     2015     2014     Change  
Salaries $ 3,936 3,795 4 % $ 7,787 7,523 4 %
Commission and incentive compensation 2,606 2,445 7 5,291 4,861 9
Employee benefits 1,106 1,170 (5 ) 2,583 2,542 2
Equipment 470 445 6 964 935 3
Net occupancy 710 722 (2 ) 1,433 1,464 (2 )
Core deposit and other intangibles 312 349 (11 ) 624 690 (10 )
FDIC and other deposit assessments 222 225 (1 ) 470 468
Outside professional services 627 646 (3 ) 1,175 1,205 (2 )
Operating losses 521 364 43 816 523 56
Outside data processing 269 259 4 522 500 4
Contract services 238 249 (4 ) 463 483 (4 )
Travel and entertainment 172 243 (29 ) 330 462 (29 )
Postage, stationery and supplies 180 170 6 351 361 (3 )
Advertising and promotion 169 187 (10 ) 287 305 (6 )
Foreclosed assets 117 130 (10 ) 252 262 (4 )
Telecommunications 113 111 2 224 225
Insurance 156 140 11 296 265 12
Operating leases 64 54 19 126 104 21
All other   481     490   (2 ) 982     964   2
Total   $ 12,469     12,194     2     $ 24,976     24,142     3  
 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME

  Quarter ended
(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Service charges on deposit accounts $ 1,289   1,215     1,241     1,311     1,283
Trust and investment fees:
Brokerage advisory, commissions and other fees 2,399 2,380 2,335 2,327 2,280
Trust and investment management 861 852 849 856 838
Investment banking   450     445     521     371     491
Total trust and investment fees   3,710     3,677     3,705     3,554     3,609
Card fees 930 871 925 875 847
Other fees:
Charges and fees on loans 304 309 311 296 342
Merchant processing fees 202 187 187 184 183
Cash network fees 132 125 125 134 128
Commercial real estate brokerage commissions 141 129 155 143 99
Letters of credit fees 90 88 102 100 92
All other fees   238     240     244     233     244
Total other fees   1,107     1,078     1,124     1,090     1,088
Mortgage banking:
Servicing income, net 514 523 685 679 1,035
Net gains on mortgage loan origination/sales activities   1,191     1,024     830     954     688
Total mortgage banking   1,705     1,547     1,515     1,633     1,723
Insurance 461 430 382 388 453
Net gains from trading activities 133 408 179 168 382
Net gains on debt securities 181 278 186 253 71
Net gains from equity investments 517 370 372 712 449
Lease income 155 132 127 137 129
Life insurance investment income 145 145 145 143 138
All other   (285 )   141     362     8     103
Total   $ 10,048     10,292     10,263     10,272     10,275
 
FIVE QUARTER NONINTEREST EXPENSE                            
Quarter ended
(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Salaries $ 3,936 3,851 3,938 3,914 3,795
Commission and incentive compensation 2,606 2,685 2,582 2,527 2,445
Employee benefits 1,106 1,477 1,124 931 1,170
Equipment 470 494 581 457 445
Net occupancy 710 723 730 731 722
Core deposit and other intangibles 312 312 338 342 349
FDIC and other deposit assessments 222 248 231 229 225
Outside professional services 627 548 800 684 646
Operating losses 521 295 309 417 364
Outside data processing 269 253 270 264 259
Contract services 238 225 245 247 249
Travel and entertainment 172 158 216 226 243
Postage, stationery and supplies 180 171 190 182 170
Advertising and promotion 169 118 195 153 187
Foreclosed assets 117 135 164 157 130
Telecommunications 113 111 106 122 111
Insurance 156 140 60 97 140
Operating leases 64 62 58 58 54
All other   481     501     510     510     490
Total   $ 12,469     12,507     12,647     12,248     12,194
 

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

(in millions, except shares)   Jun 30,
2015
    Dec 31,
2014
    %

Change

Assets      
Cash and due from banks $ 19,687 19,571 1 %
Federal funds sold, securities purchased under resale agreements and other short-term investments 232,247 258,429 (10 )
Trading assets 80,236 78,255 3
Investment securities:
Available-for-sale, at fair value 260,667 257,442 1
Held-to-maturity, at cost 80,102 55,483 44
Mortgages held for sale 25,447 19,536 30
Loans held for sale 621 722 (14 )
Loans 888,459 862,551 3
Allowance for loan losses   (11,754 )   (12,319 ) (5 )
Net loans   876,705     850,232   3
Mortgage servicing rights:
Measured at fair value 12,661 12,738 (1 )
Amortized 1,262 1,242 2
Premises and equipment, net 8,692 8,743 (1 )
Goodwill 25,705 25,705
Other assets   96,585     99,057   (2 )
Total assets   $ 1,720,617     1,687,155   2
Liabilities
Noninterest-bearing deposits $ 343,582 321,963 7
Interest-bearing deposits   842,246     846,347  
Total deposits 1,185,828 1,168,310 1
Short-term borrowings 82,963 63,518 31
Accrued expenses and other liabilities 81,399 86,122 (5 )
Long-term debt   179,751     183,943     (2 )
Total liabilities   1,529,941     1,501,893     2
Equity
Wells Fargo stockholders’ equity:
Preferred stock 21,649 19,213 13
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares and 5,481,811,474 shares 9,136 9,136
Additional paid-in capital 60,154 60,537 (1 )
Retained earnings 114,093 107,040 7
Cumulative other comprehensive income 2,068 3,518 (41 )
Treasury stock – 336,576,217 shares and 311,462,276 shares (15,707 ) (13,690 ) 15
Unearned ESOP shares   (1,835 )   (1,360 ) 35
Total Wells Fargo stockholders’ equity 189,558 184,394 3
Noncontrolling interests   1,118     868   29
Total equity   190,676     185,262   3
Total liabilities and equity   $ 1,720,617     1,687,155     2  
 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
 
Assets          
Cash and due from banks $ 19,687 19,793 19,571 18,032 20,635
Federal funds sold, securities purchased under resale agreements and other short-term investments 232,247 291,317 258,429 261,932 238,719
Trading assets 80,236 79,278 78,255 67,755 71,674
Investment securities:
Available-for-sale, at fair value 260,667 257,603 257,442 248,251 248,961
Held-to-maturity, at cost 80,102 67,133 55,483 40,758 30,108
Mortgages held for sale 25,447 23,606 19,536 20,178 21,064
Loans held for sale 621 681 722 9,292 9,762
Loans 888,459 861,231 862,551 838,883 828,942
Allowance for loan losses   (11,754 )   (12,176 )   (12,319 )   (12,681 )   (13,101 )
Net loans   876,705     849,055     850,232     826,202     815,841  
Mortgage servicing rights:
Measured at fair value 12,661 11,739 12,738 14,031 13,900
Amortized 1,262 1,252 1,242 1,224 1,196
Premises and equipment, net 8,692 8,696 8,743 8,768 8,977
Goodwill 25,705 25,705 25,705 25,705 25,705
Other assets   96,585     101,879     99,057     94,727     92,332  
Total assets   $ 1,720,617     1,737,737     1,687,155     1,636,855     1,598,874  
Liabilities
Noninterest-bearing deposits $ 343,582 335,858 321,963 313,791 308,099
Interest-bearing deposits   842,246     860,805     846,347     816,834     810,478  
Total deposits 1,185,828 1,196,663 1,168,310 1,130,625 1,118,577
Short-term borrowings 82,963 77,697 63,518 62,927 61,849
Accrued expenses and other liabilities 81,399 90,121 86,122 75,727 69,021
Long-term debt   179,751     183,292     183,943     184,586     167,878  
Total liabilities   1,529,941     1,547,773     1,501,893     1,453,865     1,417,325  
Equity
Wells Fargo stockholders’ equity:
Preferred stock 21,649 21,998 19,213 19,379 18,749
Common stock 9,136 9,136 9,136 9,136 9,136
Additional paid-in capital 60,154 59,980 60,537 60,100 59,926
Retained earnings 114,093 110,676 107,040 103,494 99,926
Cumulative other comprehensive income 2,068 3,777 3,518 3,118 4,117
Treasury stock (15,707 ) (14,556 ) (13,690 ) (11,206 ) (9,271 )
Unearned ESOP shares   (1,835 )   (2,215 )   (1,360 )   (1,540 )   (1,724 )
Total Wells Fargo stockholders’ equity 189,558 188,796 184,394 182,481 180,859
Noncontrolling interests   1,118     1,168     868     509     690  
Total equity   190,676     189,964     185,262     182,990     181,549  
Total liabilities and equity   $ 1,720,617     1,737,737     1,687,155     1,636,855     1,598,874  
 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER INVESTMENT SECURITIES

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Available-for-sale securities:                  
Securities of U.S. Treasury and federal agencies $ 35,944 30,031 25,804 14,794 6,414
Securities of U.S. states and political subdivisions 48,298 47,380 44,944 45,805 44,779
Mortgage-backed securities:
Federal agencies 100,078 103,217 110,089 112,613 116,908
Residential and commercial   23,770     24,712     26,263     27,491     29,433
Total mortgage-backed securities 123,848 127,929 136,352 140,104 146,341
Other debt securities   50,090     48,759     46,666     45,013     48,312
Total available-for-sale debt securities 258,180 254,099 253,766 245,716 245,846
Marketable equity securities   2,487     3,504     3,676     2,535     3,115
Total available-for-sale securities   260,667     257,603     257,442     248,251     248,961
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies 44,645 44,244 40,886 28,887 17,777
Securities of U.S. states and political subdivisions 2,174 2,092 1,962 123 41
Federal agency mortgage-backed securities 27,577 14,311 5,476 5,770 6,030
Other debt securities   5,706     6,486     7,159     5,978     6,260
Total held-to-maturity debt securities   80,102     67,133     55,483     40,758     30,108
Total investment securities   $ 340,769     324,736     312,925     289,009     279,069
 

FIVE QUARTER LOANS

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Commercial:                  
Commercial and industrial $ 284,817 271,088 271,795 254,199 248,192
Real estate mortgage 119,695 111,848 111,996 112,064 113,564
Real estate construction 21,309 19,981 18,728 18,090 17,272
Lease financing   12,201     12,382     12,307     12,006     12,252
Total commercial   438,022     415,299     414,826     396,359     391,280
Consumer:
Real estate 1-4 family first mortgage 267,868 265,213 265,386 263,337 260,114
Real estate 1-4 family junior lien mortgage 56,164 57,839 59,717 60,875 62,487
Credit card 31,135 30,078 31,119 28,280 27,226
Automobile 57,801 56,339 55,740 55,242 54,095
Other revolving credit and installment   37,469     36,463     35,763     34,790     33,740
Total consumer   450,437     445,932     447,725     442,524     437,662
Total loans (1)   $ 888,459     861,231     862,551     838,883     828,942

(1) Includes $21.6 billion, $22.4 billion, $23.3 billion, $24.2 billion, and $25.0 billion of purchased credit-impaired (PCI) loans at June 30 and March 31, 2015, and December 31, September 30 and June 30, 2014, respectively.

 

Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.

         
(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Commercial foreign loans:                  
Commercial and industrial $ 44,838 45,325 44,707 41,829 42,136
Real estate mortgage 9,125 5,171 4,776 4,856 5,146
Real estate construction 389 241 218 209 216
Lease financing   301     307     336     332     344
Total commercial foreign loans   $ 54,653     51,044     50,037     47,226     47,842
 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Nonaccrual loans:                
Commercial:
Commercial and industrial $ 1,079 663 538 614 724
Real estate mortgage 1,250 1,324 1,490 1,636 1,805
Real estate construction 165 182 187 217 239
Lease financing   28     23     24     27     29
Total commercial   2,522     2,192     2,239     2,494     2,797
Consumer:
Real estate 1-4 family first mortgage 8,045 8,345 8,583 8,785 9,026
Real estate 1-4 family junior lien mortgage 1,710 1,798 1,848 1,903 1,965
Automobile 126 133 137 143 150
Other revolving credit and installment   40     42     41     40     34
Total consumer   9,921     10,318     10,609     10,871     11,175
Total nonaccrual loans (1)(2)(3)   $ 12,443     12,510     12,848     13,365     13,972
As a percentage of total loans 1.40

 %

1.45 1.49 1.59 1.69
Foreclosed assets:
Government insured/guaranteed (4) $ 588 772 982 1,140 1,257
Non-government insured/guaranteed   1,370     1,557     1,627     1,691     1,748
Total foreclosed assets   1,958     2,329     2,609     2,831     3,005
Total nonperforming assets   $ 14,401     14,839     15,457     16,196     16,977
As a percentage of total loans   1.62

 %

  1.72     1.79     1.93     2.05

(1) Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.

(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.

(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.

(4) Consistent with regulatory reporting requirements, foreclosed real estate resulting from government insured/guaranteed loans are classified as nonperforming. Both principal and interest related to these foreclosed real estate assets are collectible because the loans were predominantly insured by the FHA or guaranteed by the VA. Foreclosure of certain government guaranteed residential real estate mortgage loans that meet criteria specified by Accounting Standards Update (ASU) 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure, effective as of January 1, 2014 are excluded from this table and included in Accounts Receivable in Other Assets. For more information on ASU 2014-14 and the classification of certain government-guaranteed mortgage loans upon foreclosure, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in our 2014 Form 10-K.

 

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Loans 90 days or more past due and still accruing:                  
Total (excluding PCI)(1): $ 15,161 16,344 17,810 18,295 18,582
Less: FHA insured/guaranteed by the VA (2)(3) 14,359 15,453 16,827 16,628 16,978
Less: Student loans guaranteed under the FFELP (4)   46     50     63     721     707
Total, not government insured/guaranteed   $ 756     841     920     946     897
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial $ 17 31 31 35 52
Real estate mortgage 10 43 16 37 53
Real estate construction               18     16
Total commercial   27     74     47     90     121
Consumer:
Real estate 1-4 family first mortgage (3) 220 221 260 327 311
Real estate 1-4 family junior lien mortgage (3) 65 55 83 78 70
Credit card 304 352 364 302 266
Automobile 51 47 73 64 48
Other revolving credit and installment   89     92     93     85     81
Total consumer   729     767     873     856     776
Total, not government insured/guaranteed   $ 756     841     920     946     897

(1) PCI loans totaled $3.4 billion, $3.6 billion, $3.7 billion, $4.0 billion and $4.0 billion, at June 30, and March 31, 2015 and December 31, September 30, and June 30, 2014, respectively.

(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

(3) Includes mortgages held for sale 90 days or more past due and still accruing.

(4) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP. In fourth quarter 2014, substantially all government guaranteed loans were sold.

 
Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS

 

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominantly represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

 

As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.

 

The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:

  • Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
  • Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
  • Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.

The change in the accretable yield related to PCI loans is presented in the following table.

       
(in millions)      
Balance, December 31, 2008   $ 10,447
Addition of accretable yield due to acquisitions 132
Accretion into interest income (1) (12,783 )
Accretion into noninterest income due to sales (2) (430 )
Reclassification from nonaccretable difference for loans with improving credit-related cash flows 8,568
Changes in expected cash flows that do not affect nonaccretable difference (3)   11,856  
Balance, December 31, 2014 17,790
Addition of accretable yield due to acquisitions
Accretion into interest income (1) (764 )
Accretion into noninterest income due to sales (2) (28 )
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (4) 30
Changes in expected cash flows that do not affect nonaccretable difference (3)   (58 )
Balance, June 30, 2015   $ 16,970  
Balance, March 31, 2015 $ 17,325
Addition of accretable yield due to acquisitions
Accretion into interest income (1) (366 )
Accretion into noninterest income due to sales (2)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (4) 8
Changes in expected cash flows that do not affect nonaccretable difference (3)   3  
Balance, June 30, 2015   $ 16,970  

(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.

(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.

(3) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

(4) At June 30, 2015, our carrying value for PCI loans totaled $21.6 billion and the remainder of nonaccretable difference established in purchase accounting totaled $3.0 billion. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.

 

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)

 
  June 30, 2015  
PCI loans     All other loans  
(in millions)   Adjusted

unpaid

principal

balance (2)

    Current

LTV

ratio (3)

    Carrying

value (4)

    Ratio of

carrying

value to

current

value (5)

    Carrying

value (4)

    Ratio of

carrying

value to

current

value (5)

 
California $ 17,529     76

 %

  $ 14,308     62

 %

$ 10,583     55

 %

Florida 1,996 85 1,450 60 2,188 69
New Jersey 839 83 687 63 1,425 70
New York 550 76 487 61 683 66
Texas 220 59 200 53 851 47
Other states   4,063   81 3,288   65 6,072   68
Total Pick-a-Pay loans   $ 25,197     78     $ 20,420     62     $ 21,802     61  

(1) The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2015.

(2) Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

(3) The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.

(4) Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.

(5) The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

 

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS

(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
Commercial:                  
Legacy Wachovia commercial and industrial and commercial real estate PCI loans (1)   $ 592     699     1,125     1,465     1,499
Total commercial   592     699     1,125     1,465     1,499
Consumer:
Pick-a-Pay mortgage (1)(2) 42,222 43,745 45,002 46,389 47,965
Legacy Wells Fargo Financial debt consolidation (3) 10,702 11,067 11,417 11,781 12,169
Liquidating home equity 2,566 2,744 2,910 3,083 3,290
Legacy Wachovia other PCI loans (1) 262 276 300 320 336
Legacy Wells Fargo Financial indirect auto (3)   15     23     34     54     85
Total consumer   55,767     57,855     59,663     61,627     63,845
Total non-strategic and liquidating loan portfolios   $ 56,359     58,554     60,788     63,092     65,344

(1) Net of purchase accounting adjustments related to PCI loans.

(2) Includes PCI loans of $20.4 billion, $21.0 billion, $21.5 billion, $22.1 billion and $22.7 billion at June 30 and March 31, 2015, and December 31, September 30, and June 30, 2014, respectively.

(3) When we refer to "Legacy Wells Fargo", we mean Wells Fargo excluding Wachovia Corporation (Wachovia).

 

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

 
  Quarter ended June 30,     Six months ended June 30,  
(in millions)   2015     2014     2015     2014  
Balance, beginning of period $ 13,013   14,414 13,169   14,971
Provision for credit losses 300 217 908 542
Interest income on certain impaired loans (1) (50 ) (55 ) (102 ) (111 )
Loan charge-offs:
Commercial:
Commercial and industrial (154 ) (146 ) (287 ) (309 )
Real estate mortgage (16 ) (16 ) (39 ) (36 )
Real estate construction (1 ) (3 ) (2 ) (4 )
Lease financing   (3 )   (3 )   (6 )   (7 )
Total commercial   (174 )   (168 )  

(334

)

  (356 )
Consumer:
Real estate 1-4 family first mortgage (119 ) (193 ) (249 ) (416 )
Real estate 1-4 family junior lien mortgage (163 ) (220 ) (342 ) (469 )
Credit card (284 ) (266 ) (562 ) (533 )
Automobile (150 ) (143 ) (345 ) (323 )
Other revolving credit and installment   (151 )   (171 )   (305 )   (348 )
Total consumer   (867 )   (993 )   (1,803 )   (2,089 )
Total loan charge-offs   (1,041 )   (1,161 )   (2,137 )   (2,445 )
Loan recoveries:
Commercial:
Commercial and industrial 73 86 142 200
Real estate mortgage 31 26 65 68
Real estate construction 7 23 17 47
Lease financing   1     2     4     5  
Total commercial   112     137     228     320  
Consumer:
Real estate 1-4 family first mortgage 52 56 99 109
Real estate 1-4 family junior lien mortgage 69 60 125 117
Credit card 41 55 80 91
Automobile 82 97 176 187
Other revolving credit and installment   35     39     71     79  
Total consumer   279     307     551     583  
Total loan recoveries   391     444     779     903  
Net loan charge-offs (2)   (650 )   (717 )   (1,358 )   (1,542 )
Allowances related to business combinations/other   1     (25 )   (3 )   (26 )
Balance, end of period   $ 12,614     13,834     12,614     13,834  
Components:
Allowance for loan losses $ 11,754 13,101 11,754 13,101
Allowance for unfunded credit commitments   860     733     860     733  
Allowance for credit losses (3)   $ 12,614     13,834     12,614     13,834  
Net loan charge-offs (annualized) as a percentage of average total loans (2) 0.30

 %

0.35 0.32 0.38
Allowance for loan losses as a percentage of total loans (3) 1.32 1.58 1.32 1.58
Allowance for credit losses as a percentage of total loans (3)   1.42     1.67     1.42     1.67  

(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

(2) For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.

(3) The allowance for credit losses includes $7 million and $8 million at June 30, 2015 and 2014, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

 

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES

  Quarter ended  
(in millions)   Jun 30,
2015
    Mar 31,
2015
    Dec 31,
2014
    Sep 30,
2014
    Jun 30,
2014
 
Balance, beginning of quarter $ 13,013   13,169   13,481   13,834   14,414
Provision for credit losses 300 608 485 368 217
Interest income on certain impaired loans (1) (50 ) (52 ) (48 ) (52 ) (55 )
Loan charge-offs:
Commercial:
Commercial and industrial (154 ) (133 ) (161 ) (157 ) (146 )
Real estate mortgage (16 ) (23 ) (19