Title of Each Class
|
Trading Symbol
|
Name of Each Exchange
on Which Registered |
Common Stock, par value $1-2/3
|
WFC
|
NYSE
|
7.5% Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L
|
WFC.PRL
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series N
|
WFC.PRN
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series O
|
WFC.PRO
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series P
|
WFC.PRP
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of 5.85% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series Q
|
WFC.PRQ
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series R
|
WFC.PRR
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series T
|
WFC.PRT
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series V
|
WFC.PRV
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series W
|
WFC.PRW
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series X
|
WFC.PRX
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Y
|
WFC.PRY
|
NYSE
|
Depositary Shares, each representing a 1/1000th interest in a share of Non-Cumulative Perpetual Class A Preferred Stock, Series Z
|
WFC.PRZ
|
NYSE
|
Guarantee of 5.80% Fixed-to-Floating Rate Normal Wachovia Income Trust Securities of Wachovia Capital Trust III
|
WFC/TP
|
NYSE
|
Guarantee of Medium-Term Notes, Series A, due October 30, 2028 of Wells Fargo Finance LLC
|
WFC/28A
|
NYSE
|
Incorporated Documents
|
Where incorporated in Form 10-K
|
1. Portions of the Company’s Annual Report to Shareholders for the year ended December 31, 2019 (“2019 Annual Report to Shareholders”)
|
Part I – Items 1, 1A, 2 and 3; Part II – Items 5, 6, 7, 7A, 8 and 9A; and Part IV– Item 15.
|
2. Portions of the Company’s Proxy Statement for the Annual
Meeting of Shareholders to be held April 28, 2020 (“2020 Proxy Statement”)
|
Part III – Items 10, 11, 12, 13 and 14
|
ITEM 1.
|
BUSINESS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
December 31, 2019
|
|
Approximate square footage
(in millions)
|
We currently occupy properties in:
|
|
|
|
|
|
United States
|
|
|
San Francisco, California
|
|
|
420 Montgomery Street (corporate headquarters)
|
|
0.4
|
All other San Francisco locations
|
|
3.7
|
Total San Francisco, California
|
|
4.1
|
|
|
|
Top 10 other U.S. locations:
|
|
|
Charlotte-Concord-Gastonia, NC-SC
|
|
8.1
|
Minneapolis-St. Paul-Bloomington, MN-WI
|
|
5.7
|
New York-Newark-Jersey City, NY-NJ-PA
|
|
3.9
|
Los Angeles-Long Beach-Anaheim, CA
|
|
3.7
|
Phoenix-Mesa-Scottsdale, AZ
|
|
3.5
|
Des Moines-West Des Moines, IA
|
|
3.3
|
St. Louis, MO-IL
|
|
2.5
|
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
|
|
2.0
|
Dallas-Fort Worth-Arlington, TX
|
|
1.7
|
Miami-Fort Lauderdale-West Palm Beach, FL
|
|
1.6
|
All other U.S. locations
|
|
42.9
|
Total United States
|
|
83.0
|
|
|
|
Top 5 International locations:
|
|
|
India
|
|
2.3
|
Philippines
|
|
0.9
|
United Kingdom
|
|
0.3
|
Canada
|
|
0.2
|
China
|
|
0.1
|
All other international locations
|
|
0.2
|
Total International
|
|
4.0
|
|
|
|
Total square footage property occupied
|
|
87.0
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
(1)
|
All shares were repurchased under an authorization covering up to 350 million shares of common stock approved by the Board of Directors and publicly announced by the Company on October 23, 2018, or an authorization covering up to an additional 350 million shares of common stock approved by the Board of Directors and publicly announced by the Company on July 23, 2019. Unless modified or revoked by the Board, these authorizations do not expire.
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Equity Compensation Plan Information
|
|
|
|
|
|
||||||||||
|
|
|
|
(a)
|
|
|
|
(b)
|
|
(c)
|
|
||||
|
|
|
|
|
|
|
|
|
|
# of shares remaining
|
|
|
|||
|
|
|
|
# of shares to be
|
|
|
|
|
|
|
available for future
|
|
|
||
|
|
|
|
issued upon exercise
|
|
|
|
|
Weighted-average
|
|
|
issuance under equity
|
|
|
|
|
|
|
|
of outstanding
|
|
|
|
|
exercise price of
|
|
|
compensation plans
|
|
|
|
|
|
|
|
options, warrants
|
|
|
|
|
outstanding options,
|
|
|
(excluding securities
|
|
|
|
Plan category
|
|
and rights
|
|
|
|
|
warrants and rights (1)
|
|
|
reflected in column (a))
|
|
|
|||
Equity compensation plans approved by security holders
|
|
62,323,188
|
|
|
(2)
|
|
$
|
31.72
|
|
|
248,151,530
|
|
(3)
|
||
Equity compensation plans not approved by security holders
|
|
4,834,689
|
|
|
(4)
|
|
NA
|
|
|
3,746,048
|
|
(5)
|
|||
|
|
Total
|
|
67,157,877
|
|
|
|
|
31.72
|
|
|
251,897,578
|
|
|
(1)
|
Does not reflect restricted share rights (RSRs), restricted share units (RSUs), performance share awards or deferred compensation benefits because they have no exercise price.
|
(2)
|
For the Long-Term Incentive Compensation Plan (LTICP), consists of 60,560 shares subject to options, 50,915,461 shares subject to RSRs, and a maximum of 8,971,975 performance shares. For the Supplemental 401(k) Plan, consists of 1,896,923 shares issuable upon distribution of benefits. For the Directors Stock Compensation and Deferral Plan (Directors Plan), consists of 255,613 shares issuable upon distribution of deferred stock awards, and 222,655 shares issuable upon distribution of deferred compensation benefits.
|
(3)
|
We could have issued the number of shares of our common stock indicated in the following table pursuant to any of the award types listed for the plan or, if indicated for the plan, pursuant to distributions of deferred compensation benefits. Each share of common stock issued under the LTICP pursuant to awards other than options or stock appreciation rights (SARs) counts as two shares.
|
(4)
|
This consists of shares of common stock issuable upon distribution of deferred compensation benefits and 4,760 shares issuable upon distribution related to the Norwest Corporation Directors’ Formula Stock Award Plan.
|
(5)
|
We could have issued the number of shares of our common stock indicated in the following table pursuant to distributions of deferred compensation benefits. No information is provided for the Norwest Corporation Directors’ Formula Stock Award Plan because no future awards or deferrals will be made under this plan and because column (a) reflects all shares issuable under those plans upon exercise or distribution of outstanding awards or deferred compensation benefits.
|
|
|
|
|
# of shares remaining
|
|
|
|
|
|
|
|
|
|
|
|
|
available for future
|
|
|
|
|
|
|
|
|
|
|
|
|
issuance under equity
|
|
|
|
|
|
|
|
|
Plans approved by security holders
|
|
compensation plans
|
|
|
|
|
Award types
|
|
|
|
||
LTICP
|
|
245,964,204
|
|
|
|
|
Stock options, stock, SARs, restricted stock, RSRs, performance shares, performance units
|
|
||||
Supplemental 401(k) Plan
|
|
1,812,033
|
|
|
|
|
Deferral distribution
|
|
||||
Directors Plan
|
|
375,293
|
|
|
|
|
Stock options, deferral distribution
|
|
||||
|
|
Total
|
|
248,151,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# of shares remaining
|
|
|
|
|
|
|
|
|
|
|
|
|
available for future
|
|
|
|
|
|
|
|
|
|
|
|
|
issuance under equity
|
|
|
|
|
|
|
|
|
Plans not approved by security holders
|
|
compensation plans
|
|
|
|
|
Award types
|
|
|
|
||
Deferred Compensation Plan
|
|
3,573,157
|
|
|
|
|
Deferral distribution
|
|
||||
Non-Qualified Deferred Compensation Plan for Independent Contractors
|
|
172,891
|
|
|
|
|
Deferral distribution
|
|
|
|
||
|
|
Total
|
|
3,746,048
|
|
|
|
|
|
|
|
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Exhibit
Number
|
|
Description
|
|
Location
|
||||||||||||||||
3(a)
|
|
|
Filed herewith.
|
|||||||||||||||||
3(b)
|
|
|
Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed March 1, 2018.
|
|||||||||||||||||
4(a)
|
|
See Exhibits 3(a) and 3(b).
|
|
|
||||||||||||||||
4(b)
|
|
The Company agrees to furnish upon request to the Commission a copy of each instrument defining the rights of holders of senior and subordinated debt of the Company.
|
|
|
||||||||||||||||
4(c)
|
|
|
Filed herewith.
|
|||||||||||||||||
10(a)*
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Current Report on Form 8-K filed April 26, 2019.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Current Report on Form 8-K filed April 26, 2013
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009
|
|||||||||||||||||
|
|
Forms of Performance Share Award Agreement:
|
|
|
||||||||||||||||
|
|
|
Filed herewith.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
|
|||||||||||||||||
|
|
Forms of Restricted Share Rights Award Agreement:
|
|
|
||||||||||||||||
|
|
|
Filed herewith.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Current Report on Form 8-K filed October 25, 2019.
|
|||||||||||||||||
* Management contract or compensatory plan or arrangement.
|
|
|
Exhibit
Number
|
|
Description
|
|
Location
|
||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
|
|||||||||||||||||
10(b)*
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
10(c)*
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019.
|
|||||||||||||||||
10(d)*
|
|
|
Filed herewith.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(c) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(c) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(d) to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(e) to the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.
|
Exhibit
Number
|
|
Description
|
|
Location
|
||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(e) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.
|
|||||||||||||||||
10(e)*
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007.
|
|||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
|
||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013.
|
||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.
|
||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(d) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.
|
||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.
|
||||||||||||||||
|
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.
|
||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.
|
|||||||||||||||||
10(f)*
|
|
|
Incorporated by reference to Exhibit 10(b) to the former Wells Fargo’s Annual Report on Form 10-K for the year ended December 31, 1997.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(d) to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2003.
|
|||||||||||||||||
10(g)*
|
|
|
Incorporated by reference to Exhibit 10(c) to the Company’s Current Report on Form 8-K filed May 4, 2009.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(i) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(d) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014.
|
|||||||||||||||||
10(h)*
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Current Report on Form 8-K filed May 4, 2009.
|
Exhibit
Number
|
|
Description
|
|
Location
|
||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(j) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
|
|
|
Filed herewith.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(e) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
10(i)*
|
|
Supplemental Long-Term Disability Plan.
|
|
Incorporated by reference to Exhibit 10(f) to the Company’s Annual Report on Form 10-K for the year ended December 31, 1990.
|
||||||||||||||||
|
|
Amendment to Supplemental Long-Term Disability Plan.
|
|
Incorporated by reference to Exhibit 10(g) to the Company’s Annual Report on Form 10-K for the year ended December 31, 1992.
|
||||||||||||||||
10(j)*
|
|
|
Incorporated by reference to Exhibit 10(y) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003.
|
|||||||||||||||||
10(k)*
|
|
|
Incorporated by reference to Exhibit 10(w) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008.
|
|||||||||||||||||
10(l)*
|
|
|
Incorporated by reference to Exhibit 10(q) to the Company's Annual Report on Form 10-K for the year ended December 31, 2015.
|
|||||||||||||||||
10(m)*
|
|
|
Incorporated by reference to Exhibit 10(s) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
|
|||||||||||||||||
10(n)*
|
|
|
Incorporated by reference to Exhibit (10)(f) to Wachovia Corporation’s Current Report on Form 8-K filed December 29, 2008.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(aa) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.
|
|||||||||||||||||
10(o)*
|
|
|
Incorporated by reference to Exhibit (10)(d) to Wachovia Corporation’s Annual Report on Form 10-K for the year ended December 31, 1997.
|
|||||||||||||||||
10(p)*
|
|
|
Incorporated by reference to Exhibit (99) to Wachovia Corporation’s Current Report on Form 8-K filed January 5, 2005.
|
|||||||||||||||||
10(q)*
|
|
|
Incorporated by reference to Exhibit 10(b) to Wachovia Corporation's Current Report on Form 8-K filed December 29, 2008.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit (10)(gg) to Wachovia Corporation’s Annual Report on Form 10-K for the year ended December 31, 2002.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(s) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(f) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit (10)(c) to Wachovia Corporation’s Current Report on Form 8-K filed December 29, 2008.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit (10)(b) to Wachovia Corporation’s Current Report on Form 8-K filed December 20, 2007.
|
|||||||||||||||||
10(r)*
|
|
|
Incorporated by reference to Appendix E to Wachovia Corporation’s Registration Statement on Form S-4 (Reg. No. 333-134656) filed on July 24, 2006.
|
Exhibit
Number
|
|
Description
|
|
Location
|
||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.
|
|||||||||||||||||
|
|
|
Incorporated by reference to Exhibit 10(g) to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2017.
|
|||||||||||||||||
10(s)*
|
|
|
Incorporated by reference to Exhibit 10(bb) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
|
|||||||||||||||||
10(t)*
|
|
|
Incorporated by reference to Exhibit 10(v) to the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
|
|||||||||||||||||
10(u)*
|
|
|
Incorporated by reference to Exhibit 10(a) to the Company's Current Report on Form 8-K filed September 27, 2019.
|
13
|
|
|
Filed herewith.
|
|||||||||||||||||
21
|
|
|
Filed herewith.
|
|||||||||||||||||
23
|
|
|
Filed herewith.
|
|||||||||||||||||
24
|
|
|
Filed herewith.
|
|||||||||||||||||
31(a)
|
|
|
Filed herewith.
|
|||||||||||||||||
31(b)
|
|
|
Filed herewith.
|
|||||||||||||||||
32(a)
|
|
|
Furnished herewith.
|
|||||||||||||||||
32(b)
|
|
|
Furnished herewith.
|
|||||||||||||||||
99
|
|
|
Incorporated by reference to Exhibit 99 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.
|
|||||||||||||||||
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
Filed herewith.
|
||||||||||||||||
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
Filed herewith.
|
||||||||||||||||
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
Filed herewith.
|
||||||||||||||||
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
Filed herewith.
|
||||||||||||||||
101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document.
|
|
Filed herewith.
|
||||||||||||||||
104
|
|
Cover Page Interactive Data File.
|
|
Formatted as Inline XBRL and contained in Exhibit 101.
|
/s/ CHARLES W. SCHARF
|
/s/ CHARLES W. SCHARF
|
/s/ JOHN R. SHREWSBERRY
|
/s/ RICHARD D. LEVY
|
John D. Baker II
|
Wayne M. Hewett
|
Richard B. Payne, Jr.
|
Ronald L. Sargent
|
Celeste A. Clark
|
Donald M. James
|
Juan A. Pujadas
|
Charles W. Scharf
|
Theodore F. Craver, Jr.
|
Maria R. Morris
|
James H. Quigley
|
Suzanne M. Vautrinot
|
Elizabeth A. Duke
|
Charles H. Noski
|
|
|
/s/ JAMES H. QUIGLEY
|
Exhibit A
|
1997 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit B
|
1998 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit C
|
1999 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit D
|
2000 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit E
|
2001 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit F
|
2002 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit G
|
2003 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit H
|
2004 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit I
|
2005 ESOP Cumulative Convertible Preferred Stock*
|
Exhibit J
|
2006 ESOP Cumulative Convertible Preferred Stock*
|
Effective Date
|
|
$
|
120.54
|
|
|
$
|
125.57
|
|
|
$
|
138.12
|
|
|
$
|
150.68
|
|
|
$
|
156.71
|
|
|
$
|
175.79
|
|
|
$
|
203.72
|
|
|
$
|
226.02
|
|
|
$
|
251.13
|
|
|
$
|
301.36
|
|
|
$
|
401.81
|
|
|
$
|
502.26
|
|
April 17, 2008........
|
|
1.9153
|
|
|
1.8855
|
|
|
1.5191
|
|
|
1.1110
|
|
|
0.9497
|
|
|
0.6471
|
|
|
0.3962
|
|
|
0.2847
|
|
|
0.2091
|
|
|
0.1354
|
|
|
0.0757
|
|
|
0.0458
|
|
||||||||||||
March 15, 2009........
|
|
1.9153
|
|
|
1.8775
|
|
|
1.5052
|
|
|
1.0951
|
|
|
0.9437
|
|
|
0.6331
|
|
|
0.3763
|
|
|
0.2588
|
|
|
0.1852
|
|
|
0.1175
|
|
|
0.0697
|
|
|
0.0438
|
|
||||||||||||
March 15, 2010........
|
|
1.9153
|
|
|
1.8397
|
|
|
1.4913
|
|
|
1.0871
|
|
|
0.9378
|
|
|
0.6073
|
|
|
0.3365
|
|
|
0.2210
|
|
|
0.1533
|
|
|
0.0956
|
|
|
0.0577
|
|
|
0.0358
|
|
||||||||||||
March 15, 2011........
|
|
1.9153
|
|
|
1.7899
|
|
|
1.4694
|
|
|
1.0731
|
|
|
0.9238
|
|
|
0.5794
|
|
|
0.2887
|
|
|
0.1712
|
|
|
0.1075
|
|
|
0.0657
|
|
|
0.0398
|
|
|
0.0259
|
|
||||||||||||
March 15, 2012........
|
|
1.9153
|
|
|
1.7561
|
|
|
1.4355
|
|
|
1.0652
|
|
|
0.9139
|
|
|
0.5356
|
|
|
0.2051
|
|
|
0.0896
|
|
|
0.0458
|
|
|
0.0299
|
|
|
0.0199
|
|
|
0.0119
|
|
||||||||||||
March 15, 2013........
|
|
1.9153
|
|
|
1.6704
|
|
|
1.4275
|
|
|
1.0592
|
|
|
0.9119
|
|
|
0.5097
|
|
|
0.0916
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
||||||||||||
Thereafter................
|
|
1.9153
|
|
|
1.6704
|
|
|
1.4275
|
|
|
1.0592
|
|
|
0.9119
|
|
|
0.5097
|
|
|
0.0916
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
|
0.0000
|
|
Closing Price on 11/30
|
|
First Target Price
|
|
Second Target Price
|
||
2012
|
|
38.559
|
|
|
45.346
|
|
2013
|
|
42.705
|
|
|
55.095
|
|
2014
|
|
47.295
|
|
|
66.941
|
|
2015
|
|
52.380
|
|
|
81.333
|
|
2016
|
|
58.010
|
|
|
98.820
|
|
2017
|
|
64.247
|
|
|
120.066
|
|
2018
|
|
71.153
|
|
|
145.880
|
|
2019
|
|
78.802
|
|
|
177.244
|
|
2020
|
|
87.273
|
|
|
215.352
|
|
Closing Price on 11/30
|
|
First Target Price
|
|
Second Target Price
|
||
2013
|
|
28.424
|
|
|
30.617
|
|
2014
|
|
31.124
|
|
|
34.980
|
|
2015
|
|
34.081
|
|
|
39.964
|
|
2016
|
|
37.319
|
|
|
45.659
|
|
2017
|
|
40.864
|
|
|
52.166
|
|
2018
|
|
44.746
|
|
|
59.599
|
|
2019
|
|
48.997
|
|
|
68.092
|
|
2020
|
|
53.652
|
|
|
77.795
|
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President
and Assistant Treasurer
|
Closing Price on 11/30
|
|
First Target Price
|
|
Second Target Price
|
2014
|
|
$36.562
|
|
$39.174
|
2015
|
|
$39.761
|
|
$44.316
|
2016
|
|
$43.240
|
|
$50.132
|
2017
|
|
$47.023
|
|
$56.712
|
2018
|
|
$51.138
|
|
$64.156
|
2019
|
|
$55.612
|
|
$72.576
|
2020
|
|
$60.479
|
|
$82.102
|
2021
|
|
$65.770
|
|
$92.878
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Closing Price on 11/30
|
|
First Target Price
|
|
Second Target Price
|
2015
|
|
$50.366
|
|
$53.676
|
2016
|
|
$54.396
|
|
$60.117
|
2017
|
|
$58.747
|
|
$67.331
|
2018
|
|
$63.447
|
|
$75.411
|
2019
|
|
$68.523
|
|
$84.461
|
2020
|
|
$74.005
|
|
$94.596
|
2021
|
|
$79.925
|
|
$105.947
|
2022
|
|
$86.319
|
|
$118.661
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Wells Fargo & Company
|
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Wells Fargo & Company
|
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Closing Price on 11/30
|
First Target Price
|
Second Target Price
|
|
|
|
2016
|
$61.50
|
$64.98
|
2017
|
$65.80
|
$71.80
|
2018
|
$70.41
|
$79.34
|
2019
|
$75.34
|
$87.67
|
2020
|
$80.61
|
$96.87
|
2021
|
$86.25
|
$107.04
|
2022
|
$92.29
|
$118.28
|
2023
|
$98.75
|
$130.70
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and
Assistant Treasurer
|
Closing Price on 11/30
|
First Target Price
|
Second Target Price
|
|
|
|
2017
|
$63.00
|
$66.74
|
2018
|
$67.10
|
$73.25
|
2019
|
$71.46
|
$80.39
|
2020
|
$76.10
|
$88.23
|
2021
|
$81.05
|
$96.83
|
2022
|
$86.32
|
$106.27
|
2023
|
$91.93
|
$116.63
|
2024
|
$97.91
|
$128.00
|
|
Wells Fargo & Company
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and
Assistant Treasurer
|
Wells Fargo & Company
|
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Closing Price on 11/30
|
First Target Price
|
Second Target Price
|
|
|
|
2018
|
$62.09
|
$66.02
|
2019
|
$66.59
|
$73.20
|
2020
|
$71.41
|
$81.16
|
2021
|
$76.59
|
$89.98
|
2022
|
$82.14
|
$99.77
|
2023
|
$88.10
|
$110.62
|
2024
|
$94.49
|
$122.65
|
2025
|
$101.34
|
$135.99
|
|
|
|
Wells Fargo & Company
|
|
|
|
By:
|
/s/ Barbara S. Brett
|
|
Barbara S. Brett, Senior Vice President and Assistant Treasurer
|
Closing Price on 11/30
|
First Target Price
|
Second Target Price
|
|
|
|
2019
|
$70.95
|
$75.35
|
2020
|
$75.92
|
$83.26
|
2021
|
$81.23
|
$92.00
|
2022
|
$86.92
|
$101.66
|
2023
|
$93.00
|
$112.33
|
2024
|
$99.51
|
$124.13
|
2025
|
$106.48
|
$137.16
|
2026
|
$113.93
|
$151.57
|
|
|
|
Wells Fargo & Company
|
|
|
|
By:
|
/s/ Le Roy Davis
|
|
Le Roy Davis, Senior Vice President and Assistant Treasurer
|
•
|
a “person” or “group” within the meaning of Section 13(d) of the Exchange Act files a Schedule TO or any schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect ultimate “beneficial owner,” as defined in Rule 13d-3 under the Exchange Act, of our common equity representing more than 50% of the voting power of our common stock; or
|
•
|
consummation of any consolidation or merger or similar transaction or any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of us and our subsidiaries, taken as a whole, to any person other than one of our subsidiaries, in each case pursuant to which our shares of common stock will be converted into cash, securities or other property, other than pursuant to a transaction in which the persons that “beneficially owned” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, voting shares immediately prior to such transaction beneficially own, directly or indirectly, voting shares representing a majority of the total voting power of all outstanding classes of voting shares of the continuing or surviving person immediately after the transaction.
|
CR0
|
=
|
the conversion rate in effect at the close of business on the record date
|
CR1
|
=
|
the conversion rate in effect immediately after the record date
|
OS0
|
=
|
the number of shares of our common stock outstanding at the close of business on the record date prior to giving effect to such event
|
OS1
|
=
|
the number of shares of our common stock that would be outstanding immediately after, and solely as a result of, such event
|
CR0
|
=
|
the conversion rate in effect at the close of business on the record date
|
CR1
|
=
|
the conversion rate in effect immediately after the record date
|
OS0
|
=
|
the number of shares of our common stock outstanding at the close of business on the record date
|
X
|
=
|
the total number of shares of our common stock issuable pursuant to such rights or warrants (or upon conversion of such securities)
|
Y
|
=
|
the number of shares equal to quotient of the aggregate price payable to exercise such rights or warrants (or the conversion price for such securities paid upon conversion) divided by the average of the volume-weighted average price of our common stock over each of the ten consecutive volume-weighted average price trading days prior to the Business Day immediately preceding the announcement of the issuance of such rights or warrants
|
CR0
|
=
|
the conversion rate in effect at the close of business on the record date
|
CR1
|
=
|
the conversion rate in effect immediately after the record date
|
SP0
|
=
|
the current market price as of the record date
|
FMV
|
=
|
the fair market value (as determined by our board of directors) on the record date of the shares of capital stock, evidences of indebtedness or assets so distributed, applicable to one share of our common stock
|
CR0
|
=
|
the conversion rate in effect at the close of business on the record date
|
CR1
|
=
|
the conversion rate in effect immediately after the record date
|
|
|
|
FMV0
|
=
|
the average of the volume-weighted average price of the capital stock or similar equity interests distributed to holders of our common stock applicable to one share of our common stock over each of the ten consecutive volume-weighted average price trading days commencing on and including the third volume-weighted average price trading day after the date on which “ex-distribution trading” commences for such dividend or distribution on the New York Stock Exchange or such other national or regional exchange or association or over-the-counter market or if not so traded or quoted, the fair market value of the capital stock or similar equity interests distributed to holders of our common stock applicable to one share of our common stock as determined by our board of directors
|
MP0
|
=
|
the average of the volume-weighted average price of our common stock over each of the ten consecutive volume-weighted average price trading days commencing on and including the third volume-weighted average price trading day after the date on which “ex-distribution trading” commences for such dividend or distribution on the New York Stock Exchange or such other national or regional exchange or association or over-the-counter market on which our common stock is then traded or quoted
|
CR0
|
=
|
the conversion rate in effect at the close of business on the record date
|
CR1
|
=
|
the conversion rate in effect immediately after the record date
|
SP0
|
=
|
the current market price as of the record date
|
C
|
=
|
the amount in cash per share equal to (1) in the case of a regular quarterly dividend, the amount we distribute to holders or pay, less the dividend threshold amount or (2) in any other case, the amount we distributes to holders or pay
|
CR0
|
=
|
the conversion rate in effect at the close of business on the expiration date
|
CR1
|
=
|
the conversion rate in effect immediately after the expiration date
|
FMV
|
=
|
the fair market value (as determined by our board of directors), on the expiration date, of the aggregate value of all cash and any other consideration paid or payable for shares validly tendered or exchanged and not withdrawn as of the expiration date
|
OS1
|
=
|
the number of shares of our common stock outstanding as of the last time tenders or exchanges may be made pursuant to such tender or exchange offer (expiration time) less any purchased shares
|
OS0
|
=
|
the number of shares of our common stock outstanding at the expiration time, including any purchased shares
|
SP1
|
=
|
the average of the volume-weighted average price of common stock over each of the ten consecutive volume-weighted average price trading days commencing with the volume-weighted average price trading day immediately after the expiration date
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificates of designations creating the Series L preferred stock) or our by-laws that would alter or change the voting powers, preferences or special rights of the holders of the Series L preferred stock so as to affect them adversely;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, to authorize or create, or increase the authorized amount of, or any issuance of any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking prior to the Series L preferred stock in the payment of dividends or in the distribution of assets on our liquidation, dissolution or winding up; or
|
•
|
the consummation of a binding share exchange or reclassification involving the Series L preferred stock or a merger or consolidation with another entity, except holders of our Series L preferred stock will have no right to vote under this provision or otherwise under Delaware law if, in each case, (i) the Series L preferred stock remains outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, is converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such Series L preferred stock remaining outstanding or such preference securities, as the case may be, has such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series L preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series N preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series N preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series N preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series N preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series N preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series N preferred stock will have no right to vote under this provision if in each case (i) the shares of Series N preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series N preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series N preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series O preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series O preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series O preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series O preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series O preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series O preferred stock will have no right to vote under this provision if in each case (i) the shares of Series O preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series O preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series O preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series P preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series P preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series P preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series P preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series P preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series P preferred stock will have no right to vote under this provision if in each case (i) the shares of Series P preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series P preferred stock remaining outstanding or such preference securities, as the case may be, have such rights,
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series Q preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series Q preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series Q preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series Q preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series Q preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series Q preferred stock will have no right to vote under this provision if in each case (i) the shares of Series Q preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series Q preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series Q preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series R preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series R preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series R preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series R preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series R preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series R preferred stock will have no right to vote under this provision if in each case (i) the shares of Series R preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series R preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series R preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series T preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series T preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series T preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series T preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series T preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series T preferred stock will have no right to vote under this provision if in each case (i) the shares of Series T preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series T preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series T preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series V preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series V preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series V preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series V preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series V preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series V preferred stock will have no right to vote under this provision if in each case (i) the shares of Series V preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series V preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series V preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series W preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series W preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series W preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series W preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series W preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series W preferred stock will have no right to vote under this provision if in each case (i) the shares of Series W preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series W preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series W preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series X preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series X preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series X preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series X preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series X preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series X preferred stock will have no right to vote under this provision if in each case (i) the shares of Series X preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series X preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series X preferred stock, taken as a whole;
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series Y preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series Y preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series Y preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series Y preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series Y preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series Y preferred stock will have no right to vote under this provision if in each case (i) the shares of Series Y preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or
|
•
|
the issuance of any series of preferred stock or preference stock ranking senior to the Series Z preferred stock with respect to either the payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up;
|
•
|
any amendment, alteration or repeal of any provision of our restated certificate of incorporation, as amended (including the certificate of designation relating to the Series Z preferred stock) or our by-laws that would adversely affect the rights, preferences, privileges or voting powers of the Series Z preferred stock;
|
•
|
any amendment or alteration of our restated certificate of incorporation, as amended, or by-laws to authorize, create or increase the authorized amount of, any shares of, or any securities convertible into shares of, any class or series of our capital stock ranking senior to the Series Z preferred stock with respect to either payment of dividends or the distribution of assets in the event of any voluntary or involuntary liquidation, dissolution or winding up; or
|
•
|
the consummation of a reclassification involving the Series Z preferred stock or a merger or consolidation with another corporation or other entity, except holders of the Series Z preferred stock will have no right to vote under this provision if in each case (i) the shares of Series Z preferred stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, and (ii) such shares of Series Z preferred stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Series Z preferred stock, taken as a whole;
|
•
|
all rights of the holders of the WITS called for redemption will cease, except the right of the holders of such WITS to receive the redemption price and any distribution payable in respect of the WITS on or prior to the redemption date, but without interest on such redemption price; and
|
•
|
the WITS called for redemption will cease to be outstanding.
|
•
|
certain events of bankruptcy, dissolution or liquidation of the Company;
|
•
|
redemption of all of the WITS as described above; and
|
•
|
the entry of an order for the dissolution of the Trust by a court of competent jurisdiction.
|
•
|
the WITS will no longer be deemed to be outstanding;
|
•
|
if the assets to be distributed are shares of Preferred Stock, DTC or its nominee, as the record holder of the WITS, will receive a registered global certificate or certificates representing the Preferred Stock to be delivered upon such distribution
|
•
|
any certificates representing the WITS not held by DTC or its nominee or surrendered to the exchange agent will be deemed to represent shares of Preferred Stock having a liquidation preference equal to the WITS until such certificates are so surrendered for transfer and reissuance; and
|
•
|
all rights of the holders of the WITS will cease, except the right to receive Preferred Stock upon such surrender.
|
•
|
the failure to comply in any material respect with the Company’s obligations as issuer of the Preferred Stock or those of the Trust or arising under applicable law;
|
•
|
the default by the Trust in the payment of any distribution on any Trust security of the Trust when such becomes due and payable, and continuation of such default for a period of 30 days;
|
•
|
the default by the Trust in the payment of any redemption price of any Trust security of the Trust when such becomes due and payable;
|
•
|
the failure to perform or the breach, in any material respect, of any other covenant or warranty of the trustees in the Trust Agreement for 90 days after the defaulting trustee or trustees have received written notice of the failure to perform or breach in the manner specified in such Trust Agreement; or
|
•
|
the occurrence of certain events of bankruptcy or insolvency with respect to the property trustee and the Company’s failure to appoint a successor property trustee within 90 days.
|
•
|
such successor entity either:
|
•
|
expressly assumes all of the obligations of the Trust with respect to the WITS, or
|
•
|
substitutes for the WITS other securities having substantially the same terms as the WITS, or the “Successor Securities,” so long as the Successor Securities rank the same as the WITS in priority with respect to distributions and payments upon liquidation, redemption and otherwise;
|
•
|
a trustee of such successor entity possessing the same powers and duties as the property trustee is appointed to hold the Preferred Stock then held by or on behalf of the property trustee;
|
•
|
such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not cause the WITS, including any Successor Securities, to be downgraded by any nationally recognized statistical rating organization;
|
•
|
such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the holders of the WITS, including any Successor Securities, in any material respect;
|
•
|
such successor entity has purposes substantially identical to those of the Trust;
|
•
|
prior to such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, the property trustee has received an opinion from counsel to the Trust experienced in such matters to the effect that:
|
•
|
such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease does not adversely affect the rights, preferences and privileges of the holders the WITS, including any Successor Securities, in any material respect, and
|
•
|
following such merger, consolidation, amalgamation, replacement, conveyance, transfer or lease, neither the Trust nor such successor entity will be required to register as an
|
•
|
the Trust has received an opinion of counsel experienced in such matters that such merger, consolidation, amalgamation, conveyance, transfer or lease will not cause the Trust or the successor entity to be classified as an association or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes; and
|
•
|
the Company or any permitted successor or assignee owns all of the common securities of such successor entity and guarantees the obligations of such successor entity under the Successor Securities at least to the extent provided by the Guarantee.
|
•
|
cure any ambiguity, correct or supplement any provisions in the Trust Agreement that may be inconsistent with any other provision, or to make any other provisions with respect to matters or questions arising under such Trust Agreement, which may not be inconsistent with the other provisions of the Trust Agreement;
|
•
|
modify, eliminate or add to any provisions of the Trust Agreement to such extent as shall be necessary to ensure that the Trust will be classified for U.S. federal income tax purposes as one or more grantor trusts and/or agency arrangements and not as an association or a publicly traded partnership taxable as a corporation at all times that any Trust Securities are
|
•
|
provide that certificates for the WITS may be executed by an administrative trustee by facsimile signature instead of manual signature, in which case such amendment(s) shall also provide for the appointment by the Company of an authentication agent and certain related provisions;
|
•
|
require that holders that are not U.S. persons for U.S. federal income tax purposes irrevocably appoint a U.S. person to exercise any voting rights to ensure that the Trust will not be treated as a foreign trust for U.S. federal income tax purposes; or
|
•
|
conform the terms of the Trust Agreement to the description of the Trust Agreement, the WITS and the Trust Common Securities in the applicable prospectus, in the manner provided in the Trust Agreement.
|
•
|
the consent of holders representing not less than a majority, based upon liquidation amounts, of the WITS affected by the amendments; and
|
•
|
receipt by the trustees of the Trust of an opinion of counsel to the effect that such amendment or the exercise of any power granted to the trustees of the Trust or the administrative trustees in accordance with such amendment will not affect the Trust’s status as one or more grantor trusts and/or agency arrangements for U.S. federal income tax purposes or affect the Trust’s exemption from status as an “investment company” under the ICA.
|
•
|
change the amount or timing, or otherwise adversely affect the amount, of any distribution required to be made in respect of Trust Securities as of a specified date; or
|
•
|
restrict the right of a holder of Trust Securities to institute a suit for the enforcement of any such payment on or after such date.
|
•
|
all debts and other obligations of the Trust (other than with respect to the WITS);
|
•
|
all costs and expenses of the Trust, including costs and expenses relating to the organization of the Trust, the fees and expenses of the trustees and the cost and expenses relating to the operation of the Trust; and
|
•
|
any and all taxes and costs and expenses with respect thereto, other than U.S. withholding taxes, to which the Trust might become subject.
|
•
|
any accumulated and unpaid distributions required to be paid on the WITS, to the extent the Trust has funds available to make the payment;
|
•
|
the redemption price for any WITS called for redemption, to the extent the Trust has funds available to make the payment; and
|
•
|
upon a voluntary or involuntary dissolution, winding-up or liquidation of the Trust, other than in connection with a distribution of a like amount of corresponding assets to the holders of the WITS, the lesser of:
|
•
|
the aggregate of the liquidation amount and all accumulated and unpaid distributions on the WITS to the date of payment, to the extent the Trust has funds available to make the payment; and
|
•
|
the amount of assets of the Trust remaining available for distribution to holders of the WITS upon liquidation of the Trust.
|
•
|
subordinate and junior in right of payment to all of the Company’s senior debt in the same manner as the Remarketable Junior Subordinated Notes due 2042 originally issued in connection with the issuance of the WITS pursuant to an indenture dated as of February 1, 2006 between the Company and U.S. Bank National Association, as indenture trustee (the “original junior subordinated notes”), as set forth in such indenture; and
|
•
|
equally with all other guarantees for payments on WITS that the Company issues in the future to the extent the related subordinated notes by their terms rank pari passu with the original junior subordinated notes, subordinated notes that the Company issues in the future to the extent that by their terms rank pari passu with the original junior subordinated notes and any of the Company’s other present or future obligations that by their terms rank pari passu with such Guarantee.
|
•
|
upon full payment of the redemption price of all WITS; or
|
•
|
upon full payment of the amounts payable in accordance with the Trust Agreement upon liquidation of the Trust.
|
•
|
issuing the Trust Securities representing beneficial interests in the Trust;
|
•
|
purchasing and holding the Preferred Stock; and
|
•
|
engaging in only those activities necessary or incidental thereto.
|
•
|
the Trust holds an aggregate liquidation preference of Preferred Stock equal to the aggregate liquidation amount of the Trust Securities and the dividend payment rates and dates on the Preferred Stock match the distribution payment rates and dates on the Trust securities;
|
•
|
under the Guarantee Agreement, the Company will pay, and the Trust will not be obligated to pay, directly or indirectly, all costs, expenses, debts and obligations of the Trust, other than those relating to such Trust Securities; and
|
•
|
the Trust Agreement further provides that the trustees may not cause or permit the Trust to engage in any activity that is not consistent with the purposes of the Trust.
|
(1)
|
the Company will not be liable for any amount of payment that Wells Fargo Finance is excused from making or any amount in excess of the amount actually due and owing by Wells Fargo Finance, and
|
(2)
|
any defenses or counterclaims available to Wells Fargo Finance (except those resulting solely from, or on account of, its insolvency or its status as debtor or subject of a bankruptcy or insolvency proceeding) will also be available to the Company to the same extent as these defenses or counterclaims are available to Wells Fargo Finance, whether or not asserted by Wells Fargo Finance.
|
•
|
incur, assume or become liable for any type of debt or other obligation;
|
•
|
create liens on Wells Fargo Finance’s property for any purpose; or
|
•
|
pay dividends or make distributions on Wells Fargo Finance’s capital stock or repurchase or redeem Wells Fargo Finance’s capital stock.
|
•
|
the resulting or acquiring entity, if other than Wells Fargo Finance, is organized and existing under the laws of a domestic jurisdiction and assumes all of Wells Fargo Finance’s responsibilities and liabilities under the indenture, including the payment of all amounts due on the debt securities and performance of the covenants in the indenture; and
|
•
|
immediately after the transaction, and giving effect to the transaction, no covenant breach (as defined below) or event of default under the indenture exists.
|
•
|
the resulting or acquiring entity, if other than the Company, is organized and existing under the laws of a domestic jurisdiction and assumes all of the Company’s responsibilities and liabilities under the indenture, including the guarantee of the payment of all amounts due on the debt securities to the extent provided in the indenture and performance of the covenants in the indenture; and
|
•
|
immediately after the transaction, and giving effect to the transaction, no covenant breach (as defined below) or event of default under the indenture exists.
|
(1)
|
failure to pay interest on any debt security of that series for 30 days after the payment is due;
|
(2)
|
failure to pay the principal of or any premium on any debt security of that series for 30 days after the payment is due;
|
(3)
|
the entry by a court having jurisdiction of (A) a decree or order for relief in respect of Wells Fargo Finance in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or similar law or (B) a decree or order adjudging Wells Fargo Finance a bankrupt or insolvent, or approving a petition seeking receivership, insolvency or liquidation of or in respect of Wells Fargo Finance under any applicable Federal or State law, or appointing a receiver, liquidator, trustee or similar official of Wells Fargo Finance, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days;
|
(4)
|
the commencement by Wells Fargo Finance of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency or similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, the appointment of a receiver for Wells Fargo Finance under any applicable Federal or State bankruptcy, insolvency or similar law following consent by the Board of Directors of Wells Fargo Finance to such appointment, or the entry of a decree or order for relief in respect of Wells Fargo Finance in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, receivership, liquidation or similar law following Wells Fargo Finance’s consent to such decree or order; or
|
(5)
|
the guarantee ceases to be in full force and effect, other than in accordance with the indenture, or the Company denies or disaffirms its obligations under the guarantee, provided that no event of default with respect to the guarantee will occur as a result of, or because it is related directly or indirectly to, the insolvency of the Company or the commencement of proceedings under Title 11, or the appointment of a receiver for the Company under the Dodd-Frank Act or the Federal Deposit Insurance Corporation having separately repudiated the guarantee in any receivership of the Company, or the commencement of any proceeding under any other applicable Federal or State bankruptcy, insolvency, resolution or other similar law, or a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official having been appointed for or having taken possession of the Company or its property, or the institution of any other comparable judicial or regulatory proceedings relative to the Company, or to the creditors or property of the Company.
|
•
|
conducting any proceeding for any remedy available to the trustee; or
|
•
|
exercising any trust or power conferred upon the trustee.
|
•
|
the holder has previously given the trustee written notice of a continuing covenant breach or event of default with respect to that series;
|
•
|
the holders of at least 25% in aggregate principal amount of the outstanding debt securities of that series have made a written request of, and offered reasonable indemnification to, the trustee to begin such proceeding with respect to such covenant breach or event of default;
|
•
|
the trustee has not started such proceeding within 60 days after receiving the request; and
|
•
|
the trustee has not received directions inconsistent with such request from the holders of a majority in aggregate principal amount of the outstanding debt securities of that series during those 60 days.
|
•
|
a change in the stated maturity date of any payment of principal or interest;
|
•
|
a reduction in payments due on the debt securities;
|
•
|
a change in the place of payment or currency in which any payment on the debt securities is payable;
|
•
|
a limitation of a holder’s right to sue Wells Fargo Finance for the enforcement of payments due on the debt securities;
|
•
|
a reduction in the percentage of outstanding debt securities required to consent to a modification or amendment of the indenture or required to consent to a waiver of compliance with certain provisions of the indenture or certain defaults under the indenture;
|
•
|
a reduction in the requirements contained in the indenture for quorum or voting;
|
•
|
a limitation of a holder’s right, if any, to repayment of debt securities at the holder’s option;
|
•
|
make any change in the guarantee that would adversely affect any holder or release the Company from the guarantee other than pursuant to the terms of the indenture; and
|
•
|
a modification of any of the foregoing requirements contained in the indenture.
|
•
|
a default in the payment of the principal of or any premium or interest on any debt securities of that series; or
|
•
|
a default under any provision of the indenture which itself cannot be modified or amended without the consent of the holders of each outstanding debt security of that series.
|
1.
|
Award. Wells Fargo & Company (the “Company”) has awarded you Performance Shares to provide an incentive for you to remain in the employment of the Company or an Affiliate and provide valuable services to the Company or an Affiliate. The target number of Performance Shares (“Target Award Number”) awarded you is identified as the “Total Granted” on the acknowledgement screen for your grant on this website. The Target Award Number is subject to upward and downward adjustments based on Company performance during the [performance period] (the “Performance Period”) as set forth on Exhibit A. The “Final Award Number” is the number of Performance Shares awarded to you under this Award Agreement after adjusting the Target Award Number in accordance with Exhibit A. This Award Agreement also grants Performance Shares with respect to dividend equivalents as provided in paragraph 4. Each Performance Share entitles you to receive one share of Wells Fargo & Company common stock ("Common Stock") contingent upon earning such Performance Share based on the Company performance criteria set forth on Exhibit A, vesting as set forth in paragraph 2 and subject to the other terms and conditions set forth in the Company’s Long‑Term Incentive Compensation Plan, as may be amended from time to time (the “Plan”) and this Award Agreement, including the performance conditions in paragraph 8,[and] Exhibits A and B hereto [and the attached Wells Fargo Agreement Regarding Trade Secrets, Confidential Information, Non-Solicitation and Assignment of Inventions].
|
2.
|
Vesting. Except as otherwise provided in this Award Agreement, the Final Award Number of Performance Shares will vest on the Determination Date as set forth on Exhibit A (“Determination Date”), subject to the performance conditions in paragraph 8, which apply through the Settlement Date. Shares of Common Stock will be issued to you or, in case of your death, your Beneficiary determined in accordance with the Plan. You will have no rights as a stockholder of the Company with respect to your Performance Shares (including any Performance Shares with respect to dividend equivalents as provided below) until settlement. However, you may be entitled to dividend equivalents as set forth in paragraph 4. Except as otherwise provided in the Plan or this Award Agreement, vested Performance Shares will be settled and distributed in shares of Common Stock on [applicable date] (the “Settlement Date”).
|
3.
|
Termination.
|
(a)
|
If prior to [end of Performance Period] you cease to be an Employee due to your death, the Target Award Number of Performance Shares under this Award Agreement after giving effect to any Net Operating Loss adjustments determined in accordance with Exhibit A for any years in the Performance Period completed prior to the year in which you die (and any Performance Shares with respect to dividend equivalents as provided below) will immediately vest upon the date of your death and will be distributed to your Beneficiary in shares of Common Stock between January 2 and March 1 of the year following the year in which you die. If you cease to be an Employee due to your death on or after [end of Performance Period] and prior to the Determination Date, the Final Award Number of Performance Shares under this Award Agreement (and any Performance Shares with respect to dividend equivalents as provided below) will vest upon the Determination Date and will be distributed to your Beneficiary on [applicable date]. Notwithstanding the foregoing, if by the applicable last payment date set forth herein your Beneficiary has not presented evidence deemed satisfactory by the Company to allow transfer of the shares of Common Stock to the Beneficiary under applicable laws, the Company may treat all Performance Shares awarded hereby as forfeited, in which case the Company shall have no obligation to issue shares of Common Stock or benefits in lieu of such shares to your Beneficiary and shall have no liability therefor.
|
(b)
|
If prior to the Determination Date you have an involuntary Separation from Service due to [(i)] application of the Company’s Extended Absence Policy to you in connection with a Disability[, (ii) your displacement and receipt of an immediate lump sum severance benefit, placement on a Salary Continuation Leave of Absence or placement on another leave of absence which will result in your receipt of a severance benefit in connection with that leave, or (iii) the Company or an Affiliate entering into a corporate transaction with another company (the “buyer”) (including a transaction where the buyer acquires all or any portion of the assets, stock or
|
(c)
|
[If prior to the Determination Date, the Affiliate that employs you incurs a Change in Control and you continue employment with the buyer immediately after the Change in Control, then the Final Award Number of Performance Shares under this Award Agreement (and any Performance Shares with respect to dividend equivalents as provided below) will continue to vest upon the Determination Date and will be distributed to you (or your Beneficiary if you have died before such distribution) in shares of Common Stock on [applicable date], subject to the restrictions in paragraph 7, the performance conditions in paragraph 8 and the stock ownership requirements in paragraph 9 below. For purposes of this Award, the term “Change in Control” is defined as set forth on Exhibit B to this Award Agreement, which definition is incorporated by reference herein. Notwithstanding the foregoing, if you die following such event and prior to [end of Performance Period], the Target Award Number of Performance Shares under this Award Agreement after giving effect to any Net Operating Loss adjustments determined in accordance with Exhibit A for any years in the Performance Period completed prior to the year in which you die (and any Performance Shares with respect to dividend equivalents as provided below) will immediately vest and will be distributed to your Beneficiary in accordance with paragraph 3(a) above.]
|
(d)
|
[If prior to the Determination Date you have a Separation from Service for a reason other than Cause and you have satisfied the definition of Retirement under the Plan on your Separation from Service date or you satisfy the definition of Retirement following your Separation from Service date at the end of an approved leave of absence not to exceed six months, the Final Award Number of Performance Shares under this Award Agreement (and any Performance Shares with respect to dividend equivalents as provided below) will continue to vest upon the Determination Date and will be distributed to you (or your Beneficiary if you have died before such distribution) in shares of Common Stock on [applicable date] subject to the restrictions in paragraph 7, the performance conditions in paragraph 8 and the stock ownership requirements in paragraph 9 below, and provided that beginning immediately after you cease to be an Employee and continuing until the Determination Date you satisfy each of the following conditions (“vesting conditions”): (i) you comply with the terms of the attached Wells Fargo Agreement Regarding Trade Secrets, Confidential Information, Non-Solicitation and Assignment of Inventions, which agreement is incorporated by reference herein, (ii) you do not express any derogatory or damaging statements about the Company or any Affiliate, the management or the board of directors of the Company or any Affiliate, the products, services or the business condition of the Company or any Affiliate in any public way or to anyone who could make those statements public, and (iii) to the fullest extent enforceable under the applicable state law, you do not perform services as an officer, director, employee, consultant or otherwise for any business which is in competition with any line of business of the Company or any Affiliate for which you had executive responsibilities while you were employed by the Company or any Affiliate (including predecessors thereof) and which does business in any location in the geographic footprint of the Company or any Affiliate in which you had executive responsibilities. For purposes of this Award, the term “Cause” is defined as set forth on Exhibit B to this Award Agreement, which definition is incorporated by reference herein. [For purposes of this Award, the term “Retirement” is defined as termination of employment after reaching (i) age 55 with five completed years of service or (ii) such more favorable treatment as may apply based on the practices of the Company in effect from time to time.] Notwithstanding the foregoing, if you die following your Retirement and prior to [end of Performance Period] and have satisfied the vesting conditions set forth above through your date of death, the Target Award Number of Performance Shares under this Award Agreement after giving effect to any Net Operating Loss
|
(e)
|
If prior to the Determination Date you incur a Separation from Service other than for a reason described in paragraph 3(a),[or] 3(b), [3(c) or 3(d),] or you fail to comply with any applicable vesting condition [(including the vesting conditions set forth in paragraph 3(d))], any then unvested Performance Shares awarded hereby (including any Performance Shares with respect to dividend equivalents as provided below) will immediately terminate without notice to you and will be forfeited. For avoidance of doubt, a “Separation from Service other than as described in paragraph 3(a), [or] 3(b)[, 3(c) or 3(d)]” includes, without limitation, a voluntary Separation from Service [that does not constitute a Retirement] and an involuntary Separation from Service [for Cause][other than due to death or application of the Company’s Extended Absence Policy to you in connection with Disability].
|
4.
|
Dividend Equivalents. During the period beginning on the Grant Date and ending on the Settlement Date for the Performance Shares or the date the Performance Shares are forfeited, whichever occurs first, if the Company pays a dividend on the Common Stock, you will automatically receive, as of the payment date for such dividend, dividend equivalents in the form of additional Performance Shares based on the amount or number of shares that would have been paid on the Final Award Number of Performance Shares (or the NOL Adjusted Target Award Number of Performance Shares as applicable under paragraphs 3(a)[, and] 3(b)[, 3(c) and 3(d)]) had they been issued and outstanding shares of Common Stock as of the record date and, if a cash dividend, the closing price of the Common Stock on the New York Stock Exchange as of the dividend payment date. You will also automatically receive dividend equivalents with respect to such additional Performance Shares, to be determined in the same manner. Performance Shares granted with respect to dividend equivalents will be subject to the same vesting schedule and other terms and conditions as the underlying Performance Shares, including the Company’s right of recoupment or forfeiture, and will be distributed in shares of Common Stock when, and if, the underlying Performance Shares are settled and distributed.
|
5.
|
Tax Withholding. The Company will withhold from the number of shares of Common Stock otherwise issuable hereunder (including with respect to dividend equivalents) a number of shares necessary to satisfy any and all applicable federal, state, local and foreign tax withholding obligations and employment-related tax requirements (“Tax-Related Items”). In addition, the Company (or your employer, if different) will withhold from your compensation any and all applicable Tax-Related Items in the event all or a portion of the Performance Shares are treated as taxable prior to or other than on the vesting date set forth in paragraph 2 above and the number of shares of Common Stock otherwise issuable (if any) is insufficient to satisfy such Tax-Related Items withholding obligations. Finally, you shall pay to the Company (or your employer, if different) any amount of Tax-Related Items that the Company or your employer may be required to withhold or account for as a result of your participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Common Stock if you fail to comply with your obligations in connection with the Tax-Related Items.
|
6.
|
Nontransferable. Unless the Committee provides otherwise, (i) no rights under this Award will be assignable or transferable, and neither you nor your Beneficiary will have any power to anticipate, alienate, dispose of, pledge or encumber any rights under this Award, and (ii) the rights and the benefits of this Award may be exercised and received during your lifetime only by you or your legal representative.
|
7.
|
Other Restrictions; Amendment. The grant of the Award and issuance of Common Stock hereunder is subject to compliance by the Company, its Affiliates and you with all legal and regulatory requirements applicable thereto, including compliance with the requirements of 12 C.F.R. Part 359, orders issued under 12 U.S.C. § 1818(b) (together with any agreements related thereto, “orders”) and tax withholding obligations, and with all applicable regulations of any stock exchange on which the Common Stock may be listed at the time of issuance. For the avoidance of doubt, regulatory approval under Part 359 or any orders to which the Company is a party may be required for the issuance of Common Stock hereunder in certain circumstances, and the Company cannot provide any assurance that it will be able to request such approval in accordance with the requirements of Part 359 or any applicable order or that any requested approval will be received. Subject to paragraphs 12 and 13 below, the Committee or its delegate may, in its sole discretion and without your consent, reduce, delay vesting, modify, revoke, cancel, impose additional
|
8.
|
Performance Conditions. This Award is fully conditioned on and subject to performance adjustments, which include the right of the Committee to cause you to forfeit all or any unpaid portion of an Award, if the Committee determines in its sole discretion that:
|
▪
|
You engage in misconduct which has or might reasonably be expected to have reputational or other harm to the Company or any conduct that constitutes Cause;
|
▪
|
You engage in misconduct or commit a material error that causes or might reasonably be expected to cause significant financial or reputational harm to the Company or your business group;
|
▪
|
The Award was based on materially inaccurate performance metrics, whether or not you were responsible for the inaccuracy;
|
▪
|
You improperly or with gross negligence, including in a supervisory capacity, fail to identify, escalate, monitor, or manage, in a timely manner and as reasonably expected, risks material to the Company or your business group; or
|
▪
|
The Company or your business group suffers a material downturn in its financial performance or suffers a material failure of risk management.
|
9.
|
Stock Ownership Provision. In accordance with the terms of the Company’s stock ownership policy, as may be amended from time to time: (a) if you are an Executive Officer of the Company or a member of its Operating Committee, as a condition to receiving this Award, you agree to hold, while employed by the Company or any Affiliate and for a period of one year after your Retirement, a number of shares of Common Stock equal to at least 50% of the after-tax shares of Common Stock (assuming a 50% tax rate) acquired upon vesting and settlement of Company stock-based awards or pursuant to the exercise of Company stock options (if applicable), subject to a maximum holding requirement of shares with a value equal to ten (10) times your cash salary; and (b) if you are not an Executive Officer or member of the Operating Committee, you are expected to hold that number of shares while employed by the Company or any Affiliate.
|
10.
|
Additional Provisions. This Award Agreement is subject to the provisions of the Plan. Capitalized terms not defined in this Award Agreement or by reference to another document are used as defined in the Plan. If the Plan and this Award Agreement conflict, the provisions of the Plan will govern. Interpretations of the Plan and this Award Agreement by the Committee are binding on you and the Company.
|
11.
|
No Employment Agreement. Neither the award to you of the Performance Shares nor the delivery to you of this Award Agreement or any other document relating to the Performance Shares will confer on you the right to continued employment with the Company or any Affiliate. You understand that your employment with the Company or any Affiliate is “at will” and nothing in this document changes, alters or modifies your “at will” status or your obligation to comply with all policies, procedures and rules of the Company, as they may be adopted or amended from time to time.
|
12.
|
Section 409A. This Award is intended to be exempt from or comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the applicable Treasury regulations or other binding guidance thereunder (“Section 409A”). Accordingly, all provisions included in this Award Agreement, or incorporated by reference, will be interpreted and administered in accordance with that intent. If any provision of the Plan or this Award Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended or limited so as to avoid the conflict; provided, however, that the Company makes no representation that the Award is exempt from or complies with Section 409A and makes no undertaking to preclude Section 409A from applying to the Award. The Company will have no liability to you or to any other party if the Award or payment of the Award that is intended to be exempt from or compliant with Section 409A is not so exempt or compliant or for any action taken by the Committee with respect thereto.
|
13.
|
Six-month Delay. Notwithstanding any provision of the Plan or this Award Agreement to the contrary, if, upon your Separation from Service for any reason, the Company determines that you are a “Specified Employee” for purposes of Section 409A and in accordance with the definition set forth on Exhibit B to this Award Agreement, which definition is incorporated by reference herein, your Performance Shares, if subject to settlement upon your Separation from Service and if required pursuant to Section 409A, will not settle before the date that is the first business day following the six-month anniversary of such Separation from Service, or, if earlier, upon your death.
|
14.
|
No Fractional Shares. The number of Performance Shares to be distributed to you under this Award Agreement will be rounded down to the nearest whole share.
|
15.
|
Severability and Judicial Modification. If any provision of this Award Agreement is held to be invalid or unenforceable under pertinent state law or otherwise or the Company elects not to enforce any such provision, the remaining provisions shall remain in full force and effect and the invalid or unenforceable provision shall be modified only to the extent necessary to render that provision valid and enforceable to the fullest extent permitted by law. If the invalid or unenforceable provision cannot be, or is not, modified, that provision shall be severed from this Award Agreement and all other provisions shall remain valid and enforceable.
|
16.
|
Applicable Law. This Award Agreement and the award of Performance Shares evidenced hereby will be governed by, and construed in accordance with the laws of the state of Delaware (without regard to its choice-of-law provisions), except to the extent Federal law would apply.
|
17.
|
Imposition of Other Requirements. The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with applicable law or facilitate the administration of the Plan and provided the imposition of the term or condition will not result in adverse accounting expense to the Company, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
|
18.
|
Electronic Delivery and Acceptance. The Company is electronically delivering documents related to current or future participation in the Plan and is requesting your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through the current plan administrator’s on-line system, or any other on-line system or electronic means that the Company may decide, in its sole discretion, to use in the future.
|
19.
|
Entire Agreement. The Plan is incorporated herein by reference. The Plan and this Award Agreement (including Exhibits A and B attached hereto) constitute the entire agreement of the parties with respect to the Award and supersede in their entirety all prior proposals, undertakings and agreements, written or oral, and all other communications between you and the Company with respect to the Award.
|
1.
|
Absolute ROTCE. If the Company Return on Tangible Common Equity is equal to or greater than [applicable %], your Final Award Number will be determined by multiplying the NOL Adjusted Target Award Number by [applicable %]. If the Company Average Return on Tangible Common Equity is less than [applicable %], your Final Award Number will be [applicable % or other applicable number].
|
2.
|
Relative ROTCE. If the Company Average Return on Tangible Common Equity is less than [applicable %] but equal to or greater than [applicable %], the Final Award Number will be determined by the Company Return on Tangible Common Equity Ranking in accordance with the chart below to calculate your Final Award Number of Performance Shares. The Final Award Number of Performance Shares will be determined by multiplying (i) the Final Award Number Percentage (rounded to the nearest whole percent) by (ii) your NOL Adjusted Target Award Number. Each Final Award Number Percentage in the chart below will be based on the Company Return on Tangible Common Equity Ranking in each quartile among the Financial Performance Group Companies and applies to the lowest ranking percentile in each quartile that is equal to or greater than the Company Return on Tangible Common Equity Ranking percentile shown.
|
Company Return on Tangible Common Equity Ranking
|
Final Award Number Percentage
|
Final Award Number of
Performance Shares
|
[applicable ranking]
|
[applicable %]
|
[applicable %] x NOL Adjusted Target Award Number
|
[applicable ranking]
|
[applicable %]
|
[applicable %] x NOL Adjusted Target Award Number
|
[applicable ranking]
|
[applicable %]
|
[applicable %] x NOL Adjusted Target Award Number
|
[applicable ranking]
|
[applicable %]
|
[applicable %] x NOL Adjusted Target Award Number
|
---
|
[applicable %]
|
[applicable %] x NOL Adjusted Target Award Number
|
(1)
|
Transfers. A Separation from Service has not occurred upon your transfer of employment from the Company to an Affiliate or vice versa, or from an Affiliate to another Affiliate.
|
(2)
|
Medical leave of absence. Where you have a medical leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, and you have not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the earlier of: (A) the first day on which you would not be considered “disabled” under any disability policy of the Company or Affiliate under which you are then receiving a benefit; or (B) the first day on which your medical leave of absence period exceeds 29 months.
|
(3)
|
Military leave of absence. Where you have a military leave of absence, and you have not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the day next following the last day on which you are entitled to reemployment rights under USERRA.
|
(4)
|
Salary continuation leave. A Separation from Service has occurred on the first day of your salary continuation leave taken under the Company’s Salary Continuation Pay Plan.
|
(5)
|
Other leaves of absence. In the event that you are on a bona fide leave of absence, not otherwise described in this definition, from which you have not returned to employment with the Company or an Affiliate, your Separation from Service has occurred on the first day on which your leave of absence period exceeds six months or, if earlier, upon your termination of employment (provided that such termination of employment constitutes a Separation from Service in accordance with the last sentence of the first paragraph of this definition).
|
(6)
|
Asset purchase transaction. If, in connection with the sale or other disposition of substantial assets (such as a division or substantially all assets of a trade or business) of the Company or an Affiliate to an unrelated buyer, you become an employee of the buyer or an affiliate of the buyer upon the closing of or in connection with such transaction, a Separation from Service has not occurred if the Company and the buyer have specified that such transaction will not, with respect to any individual affected by such transaction who becomes an employee of the buyer or an affiliate, be considered a “separation from service” under Treasury Regulation Section 1.409A-1(h), and such specification meets the requirements of Treasury Regulation Section 1.409A-1(h)(4).
|
(1)
|
one of the top 50 most highly compensated officers in the Controlled Group with a title of Senior Vice President or above (where the “Controlled Group” includes the Company and its controlled group members); or
|
(2)
|
a member of the Wells Fargo Operating Committee or the Wells Fargo Management Committee Review Group; or
|
(3)
|
a "key employee" under Internal Revenue Code Section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Internal Revenue Code Section 416(i)(5)).
|
•
|
The names, address, and contact information of the Company’s customers and prospective customers, as well as any other personal or financial information relating to any customer or prospect, including, without limitation, account numbers, balances, portfolios, maturity and/or expiration or renewal dates, loans, policies, investment activities, purchasing practices, insurance, annuity policies and objectives;
|
•
|
Any information concerning the Company’s operations, including without limitation, information related to its methods, services, pricing, costs, margins and mark ups, finances, practices, strategies, business plans, agreements, decision-making, systems, technology, policies, procedures, marketing, sales, techniques, agent information, and processes; and
|
•
|
Any other proprietary and/or confidential information relating to the Company’s customers, products, services, sales, technologies, or business affairs.
|
a.
|
solicit, recruit or promote the solicitation or recruitment of any employee or consultant of the Company for the purpose of encouraging that employee or consultant to leave the Company’s employ or sever an agreement for services; or
|
b.
|
to the fullest extent enforceable under the applicable state law, solicit, participate in or promote the solicitation of any of the Company's clients, customers, or prospective customers with whom I had Material Contact and/or regarding whom I received Confidential Information, for the purpose of providing products or services (“Competitive Products/Services”). “Material Contact” means interaction between me and the customer, client or prospective customer within one (1) year prior to my Separation of Service (as defined in the Performance Award Agreement) which takes place to manage, service or further the business relationship.
|
1.
|
Award. To encourage your continued employment with the Company or any Affiliate and to motivate you to help the Company increase stockholder value over the long term, Wells Fargo & Company (the “Company”) has awarded you the number of Restricted Share Rights as set forth on the acknowledgement screen for your grant on this website (the “Award”). Each Restricted Share Right entitles you to receive one share of Wells Fargo & Company common stock ("Common Stock") contingent upon vesting and subject to the other terms and conditions set forth in the Company’s Long‑Term Incentive Compensation Plan, as may be amended from time to time (the “Plan”) and this Award Agreement.
|
2.
|
Vesting. Except as otherwise provided in this Award Agreement, and subject to the Company’s right to recoup or forfeit all or any portion of this Award and other conditions as provided in this Award Agreement, the Restricted Share Rights will vest and be settled according to the following schedule:
|
3.
|
Termination.
|
(a)
|
If you cease to be an Employee due to your death, any then unvested Restricted Share Rights awarded hereby (including any Restricted Share Rights granted with respect to dividend equivalents as provided below) will immediately vest upon your date of death and will be settled and distributed to your Beneficiary in shares of Common Stock between January 2 and March 1 of the year following the year in which you die. Notwithstanding the foregoing, if by the last date set forth herein your Beneficiary has not presented evidence deemed satisfactory by the Company to allow transfer of the shares of Common Stock to the Beneficiary under applicable laws, the Company may treat all unvested Restricted Share Rights as forfeited, in which case the Company shall have no obligation to issue shares of Common Stock or benefits in lieu of such shares to your Beneficiary and shall have no liability therefor.
|
(b)
|
If you incur an involuntary [Separation from Service][termination of employment] as a result of [one of] the [following:]
|
[(1)]
|
application of the Company’s Extended Absence Policy to you in connection with a Disability,
|
(1)
|
[your displacement and receipt of an immediate lump sum severance benefit, placement on a Salary Continuation Leave of Absence or placement on another leave of absence which will result in your receipt of a severance benefit in connection with that leave, or]
|
(2)
|
[the Company or an Affiliate entering into a corporate transaction with another company (the “buyer”) (including a transaction where the buyer acquires all or any portion of the assets, stock or operations of the Company or Affiliate) and pursuant to the terms of the transaction you are continuing in employment with the buyer after completion of the corporate transaction,]
|
(c)
|
[If you have a Separation from Service that is not addressed in paragraph 3(b) above for a reason other than Cause and you satisfy the definition of Retirement under the Plan on your Separation from Service date or you satisfy the definition of Retirement following your Separation from Service date at the end of an approved leave of absence not to exceed six months, any then unvested Restricted Share Rights awarded hereby (including any Restricted Share Rights granted with respect to dividend equivalents as provided below) will continue to vest and be settled upon the scheduled vesting date as set forth in paragraph 2 above[, subject to the restrictions in [applicable paragraphs], the performance conditions in [applicable paragraph] and the stock ownership requirements in [applicable paragraphs] below]; provided, however, if you die following Retirement, subject to the limitations set forth in paragraph 3(a), any then unvested Restricted Share Rights will vest immediately upon your date of death and will be settled and distributed to your Beneficiary in shares of Common Stock between January 2 and March 1 of the year following the year in which you die. The definition of the term “Cause” is set forth on Exhibit A to this Award Agreement, which definition is incorporated by reference herein.]
|
(d)
|
[If the Affiliate that employs you incurs a Change in Control and you continue employment with the buyer immediately after the Change in Control, any then unvested Restricted Share Rights awarded hereby (including any Restricted Share Rights granted with respect to dividend equivalents as provided below) will immediately vest and will be settled and distributed to you in shares of Common Stock within 90 days from the date the Change in Control occurred [or, if earlier, by March 1 of the year immediately following the year in which the Change in Control occurred][, subject to the restrictions in [applicable paragraphs], the performance conditions in [applicable paragraph] and the stock ownership requirements in [applicable paragraphs] below]. Exhibit A to this Award Agreement sets forth the definition of the term “Change in Control,” which definition is incorporated in this Award Agreement by reference.]
|
(a)
|
If you [incur a Separation from Service][terminate employment] other than for a reason described in [applicable paragraphs] above, any then unvested Restricted Share Rights awarded hereby (including any Restricted Share Rights granted with respect to dividend equivalents as provided below) will immediately terminate without notice to you and will be forfeited.
|
4.
|
Dividend Equivalents. During the period beginning on the Grant Date and ending on the date the applicable Restricted Share Rights vest and are distributed, or are forfeited, whichever occurs first, if the Company pays a dividend on the Common Stock, you will automatically receive, as of the payment date for such dividend, dividend equivalents in the form of additional Restricted Share Rights based on the amount or number of shares that would have been paid on the Restricted Share Rights had they been issued and outstanding shares of Common Stock as of the record date and, if a cash dividend, the closing price of the Common Stock on the New York Stock Exchange as of the dividend payment date. You will also automatically receive dividend equivalents with respect to such additional Restricted Share Rights, to be granted in the same manner. Restricted Share Rights granted with respect to dividend equivalents will be subject to the same vesting schedule and other terms and conditions as the underlying Restricted Share Rights, including the Company’s right of recoupment or forfeiture, and will be distributed in shares of Common Stock when, and if, the underlying Restricted Share Rights are settled and distributed.
|
5.
|
Tax Withholding. Regardless of any action the Company or an Affiliate which is your employer (the “Employer”) takes with respect to any or all income tax, payroll tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you or deemed by the Company or the Employer to be an appropriate charge to you even if technically due by the Company or the Employer (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount (if any) withheld by the Company or the Employer. You further acknowledge that the Company and/or the Employer: (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including the grant, vesting or settlement of the Restricted Share Rights, the issuance of shares of Common Stock upon settlement of the Restricted Share Rights, the subsequent sale of
|
6.
|
Nontransferable. Unless the Committee provides otherwise, (i) no rights under this Award will be assignable or transferable, and neither you nor your Beneficiary will have any power to anticipate, alienate, dispose of, pledge or encumber any rights under this Award, and (ii) the rights and the benefits of this Award may be exercised and received during your lifetime only by you or your legal representative.
|
7.
|
Other Restrictions; Amendment. The grant of the Award and issuance of Common Stock hereunder is subject to compliance by the Company, its Affiliates and you with all legal and regulatory requirements applicable thereto, including compliance with the requirements of 12 C.F.R. Part 359, orders issued under 12 U.S.C. § 1818(b) (together with any agreements related thereto, “orders”) and tax withholding obligations, and with all applicable regulations of any stock exchange on which the Common Stock may be listed at the time of issuance. For the avoidance of doubt, regulatory approval under Part 359 or any orders to which the Company is a party may be required for the issuance of Common Stock hereunder in certain circumstances, and the Company cannot provide any assurance that it will be able to request such approval in accordance with the requirements of Part 359 or any applicable order or that any requested approval will be received. Subject to paragraph[s] 11 [and 12] below, the Committee or its delegate may, in its sole discretion and without your consent, reduce, delay vesting, modify, revoke, cancel, impose additional conditions and restrictions on or recover all or a portion of this Award if the Committee or its delegate deems it necessary or advisable to comply with, or to promote or facilitate compliance with, applicable laws, rules and regulations or as required under any procedures or policies implemented by the Company in furtherance of such
|
8.
|
Performance Conditions. The Award is fully conditioned on and subject to performance adjustments, which include the right of the Committee to cause you to forfeit all or any unpaid portion of an Award, if the Committee determines in its sole discretion that:
|
▪
|
You engage in misconduct which has or might reasonably be expected to have reputational or other harm to the Company or any conduct that constitutes Cause;
|
▪
|
You engage in misconduct or commit a material error that causes or might reasonably be expected to cause significant financial or reputational harm to the Company or your business group;
|
▪
|
The Award was based on materially inaccurate performance metrics, whether or not you were responsible for the inaccuracy;
|
▪
|
You improperly or with gross negligence, including in a supervisory capacity, fail to identify, escalate, monitor, or manage, in a timely manner and as reasonably expected, risks material to the Company or your business group; or
|
▪
|
The Company or your business group suffers a material downturn in its financial performance or suffers a material failure of risk management.
|
9.
|
Restrictive Covenants. In consideration of the terms of this Award and your access to Confidential Information, you agree to the restrictive covenants and associated remedies as set forth below, which exist independently of and in addition to any obligation to which you are subject under the terms of the Wells Fargo Agreement Regarding Trade Secrets, Confidential Information, Non-Solicitation, And Assignment Of Inventions (the “TSA”):
|
(a)
|
Trade Secrets and Confidential Information. During the course of your employment, you will acquire knowledge of the Company’s and/or any Affiliate’s (collectively “WFC”) Trade Secrets and other proprietary information relating to its business, business methods, personnel, and customers (collectively, “Confidential Information”). “Trade Secrets” means WFC’s confidential information, which has an economic value in being secret and which WFC has taken steps to keep secret and you understand and agree that Trade Secrets include, but are not limited to, confidentially maintained client and customer lists and information, and confidentially maintained prospective client and customer lists and information. You agree that Confidential Information of WFC is to be used solely and exclusively for the purpose of conducting business on behalf of WFC. You agree to keep such Confidential Information confidential and will not divulge, use or disclose this information except for that purpose. In addition, you agree that, both during and after your employment, you will not remove, share, disseminate or otherwise use WFC’s Trade Secrets to directly or indirectly solicit, participate in or promote the solicitation of any of WFC’s clients, customers, or prospective customers for the purpose of providing products or services that are in competition with WFC’s products or services. Notwithstanding the foregoing, nothing contained in this Award Agreement prohibits or restricts you (or your attorney) from initiating communications directly with, or responding to any inquiry from, or providing testimony before, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the National Labor Relations Board, the Equal Employment Opportunity Commission, or any self-regulatory organization or governmental authority charged with the enforcement of any laws.
|
(b)
|
Assignment of Inventions. You acknowledge and agree that all inventions and all worldwide intellectual property rights that you make, conceive or first reduce to practice (alone or in conjunction with others) during your employment with WFC are owned by WFC that (1) relate at the time of conception or reduction to practice of the invention to WFC’s business, or actual or demonstrably anticipated research or development of WFC whether or not you made, conceived or first reduced the inventions to practice during normal working hours; and (2) involve the use of any time, material, information, or facility of WFC.
|
(c)
|
Non-solicitation. If you are currently subject to a TSA, you shall continue to be bound by the terms of the TSA. If you are not currently subject to a TSA, you agree to the following:
|
i.
|
solicit, recruit or promote the solicitation or recruitment of any employee or consultant of WFC for the purpose of encouraging that employee or consultant to leave WFC’s employ or sever an agreement for services; or
|
ii.
|
to the fullest extent enforceable under the applicable state law, solicit, participate in or promote the solicitation of any of WFC’s clients, customers, or prospective customers with whom you had Material Contact and/or regarding whom you received Confidential Information, for the purpose of providing products or services that are in competition with WFC’s products or services. "Material Contact" means interaction between you and the customer, client or prospective customer within one (1) year prior to your last day as a team member which takes place to manage, service or further the business relationship.
|
(d)
|
Violation of TSA or Restrictive Covenants. If you breach any of the terms of a TSA and/or the restrictive covenants above, all unvested Restricted Share Rights shall be immediately and irrevocably forfeited. For any Restricted Share Rights that vested within one (1) year prior to the termination of your employment with WFC or at any time after your termination, you shall be required to repay or otherwise reimburse WFC an amount having a value equal to the aggregate fair market value (determined as of the date of vesting) of such vested shares. This paragraph does not constitute the Company’s exclusive remedy for violation of your restrictive covenant obligations, and WFC may seek any additional legal or equitable remedy, including injunctive relief, for any such violation.
|
10.
|
No Employment Agreement. Neither the award to you of the Restricted Share Rights nor the delivery to you of this Award Agreement or any other document relating to the Restricted Share Rights will confer on you the right to continued employment with the Company or any Affiliate. You understand that your employment with the Company or any Affiliate is “at will” and nothing in this document changes, alters or modifies your “at will” status or your obligation to comply with all policies, procedures and rules of the Company, as they may be adopted or amended from time to time.
|
11.
|
Section 409A. This Award is intended to [comply with the requirements of][be exempt from] Section 409A of the Internal Revenue Code of 1986, as amended, and the applicable Treasury Regulations or other binding guidance thereunder (“Section 409A”). Accordingly, all provisions included in this Award Agreement, or incorporated by reference, will be interpreted and administered in accordance with that intent. [Therefore, all Restricted Share Rights will be settled and distributed no later than March 1 of the year following the year when such Restricted Share Rights vest.] If any provision of the Plan or this Award Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended or limited so as to avoid the conflict; provided, however, that the Company makes no representation that the Award is exempt from or complies with Section 409A and makes no undertaking to preclude Section 409A from applying to the Award. The Company will have no liability to you or to any other party if the Award or payment of the Award that is intended to be [compliant with][exempt from] Section 409A is not so [compliant][exempt] or for any action taken by the Committee with respect thereto.
|
12.
|
[Six-month Delay. Notwithstanding any provision of the Plan or this Award Agreement to the contrary, if, upon your Separation from Service for any reason, the Company determines that you are a “Specified Employee” for purposes of Section 409A and in accordance with the definition set forth on Exhibit A to this Award Agreement, which definition is incorporated by reference herein, your Restricted Share Rights, if subject to settlement upon your Separation from Service and if required pursuant to Section 409A, will not settle before the date that is the first business day following the six-month anniversary of such Separation from Service, or, if earlier, upon your death.]
|
13.
|
Stock Ownership Provision. In accordance with the terms of the Company’s stock ownership policy, as may be amended from time to time: (a) if you are an Executive Officer of the Company or a member of its Operating Committee, as a condition to receiving this Award, you agree to hold, while employed by the Company or any Affiliate and for a period of one year after your Retirement, a number of shares of Common Stock equal to at least 50% of the after-tax shares of Common Stock (assuming a 50% tax rate) acquired upon vesting and settlement of Company stock-based awards or pursuant to the exercise of Company stock options (if applicable), subject to a maximum holding requirement of shares with a value equal to ten (10) times your cash salary; and (b) if you are not an Executive
|
14.
|
Severability and Judicial Modification. If any provision of this Award Agreement is held to be invalid or unenforceable under pertinent state law or otherwise or the Company elects not to enforce any such provision, including but not limited to paragraph 9(c)(ii), the remaining provisions shall remain in full force and effect and the invalid or unenforceable provision shall be modified only to the extent necessary to render that provision valid and enforceable to the fullest extent permitted by law. If the invalid or unenforceable provision cannot be, or is not, modified, that provision shall be severed from this Award Agreement and all other provisions shall remain valid and enforceable.
|
15.
|
Additional Provisions. This Award Agreement is subject to the provisions of the Plan. Capitalized terms not defined in this Award Agreement are used as defined in the Plan. If the Plan and this Award Agreement are inconsistent, the provisions of the Plan will govern. Interpretations of the Plan and this Award Agreement by the Committee are binding on you and the Company.
|
16.
|
Applicable Law. This Award Agreement and the award of Restricted Share Rights evidenced hereby will be governed by, and construed in accordance with the laws of the state of Delaware (without regard to its choice-of-law provisions), except to the extent Federal law would apply.
|
17.
|
Imposition of Other Requirements. The Company reserves the right to impose other requirements on your participation in the Plan, on the Award and on any shares of Common Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with applicable law or facilitate the administration of the Plan and provided the imposition of the term or condition will not result in adverse accounting expense to the Company, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
|
18.
|
Electronic Delivery and Acceptance. The Company is electronically delivering documents related to current or future participation in the Plan and is requesting your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through the current plan administrator’s on-line system, or any other on-line system or electronic means that the Company may decide, in its sole discretion, to use in the future.
|
19.
|
Entire Agreement. The Plan is incorporated herein by reference. The Plan and this Award Agreement [(including Exhibit A attached hereto)] constitute the entire agreement of the parties with respect to the Award and supersede in their entirety all prior proposals, undertakings and agreements, written or oral, and all other communications between you and the Company with respect to the Award.
|
(1)
|
Transfers. A Separation from Service has not occurred upon the Participant’s transfer of employment from the Company to an Affiliate or vice versa, or from an Affiliate to another Affiliate.
|
(2)
|
Medical leave of absence. Where the Participant has a medical leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, and he or she has not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the earlier of: (A) the first day on which the Participant would not be considered “disabled” under any disability policy of the Company or Affiliate under which the Participant is then receiving a benefit; or (B) the first day on which the Participant’s medical leave of absence period exceeds 29 months.
|
(3)
|
Military leave of absence. Where the Participant has a military leave of absence, and he or she has not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the day next following the last day on which the Participant is entitled to reemployment rights under USERRA.
|
(4)
|
Salary continuation leave. A Separation from Service has occurred on the first day of the Participant’s salary continuation leave taken under the Company’s Salary Continuation Pay Plan.
|
(5)
|
Other leaves of absence. In the event that the Participant is on a bona fide leave of absence, not otherwise described in this definition, from which he or she has not returned to employment with the Company or an Affiliate, the Participant’s Separation from Service has occurred on the first day on which the Participant’s leave of absence period exceeds six months or, if earlier, upon the Participant’s termination of employment (provided that such termination of employment constitutes a Separation from Service in accordance with the last sentence of the first paragraph of this definition).
|
(6)
|
Asset purchase transaction. If, in connection with the sale or other disposition of substantial assets (such as a division or substantially all assets of a trade or business) of the Company or an Affiliate to an unrelated buyer, the Participant becomes an employee of the buyer or an affiliate of the buyer upon the closing of or in connection with such transaction, a Separation from Service has not occurred if the Company and the buyer have specified that such transaction will not, with respect to any individual affected by such transaction who becomes an employee of the buyer or an affiliate, be considered a “separation from service” under Treasury Regulation Section 1.409A-1(h), and such specification meets the requirements of Treasury Regulation Section 1.409A-1(h)(4).]
|
(1)
|
one of the top 50 most highly compensated officers in the Controlled Group with a title of Senior Vice President or above (where the “Controlled Group” includes the Company and its controlled group members); or
|
(2)
|
a member of the Wells Fargo Operating Committee or the Wells Fargo Management Committee Review Group; or
|
(3)
|
a "key employee" under Internal Revenue Code Section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Internal Revenue Code Section 416(i)(5)).
|
(A)
|
Affiliate. Any entity other than the Company that is part of a “single employer” within the meaning of subsection (b) or (c) of Code §414 that includes the Company; subject, however, to such aggregation rules as may be provided in applicable guidance under Code §409A.
|
(B)
|
CD Option. An earnings option based on a certificate of deposit in such denomination and for such duration as is determined from time to time by the Plan Administrator.
|
(C)
|
Code. The Internal Revenue Code of 1986, as from time to time amended.
|
(D)
|
Common Stock. Shares of Wells Fargo & Company common stock.
|
(E)
|
Common Stock Earnings Option. An earnings option based on shares of Common Stock.
|
(F)
|
Compensation. Base salary, bonuses, incentives and commissions earned by an Eligible Employee during the Deferral Year for services rendered to the Company or its Affiliates as determined by the Plan Administrator for that Deferral Year and payable (if not deferred) no later than March 15 of the Plan Year following the Deferral Year; provided, however, that Compensation shall not include:
|
(1)
|
any award under the Company’s Long-Term Incentive Compensation Plan, or any successor to the plan;
|
(2)
|
any amount if the right to receive that amount is conditioned on the Eligible Employee’s Separation from Service;
|
(3)
|
compensation paid on account of salary continuation leave;
|
(4)
|
any amount paid after the pay period in which the Eligible Employee’s Separation from Service (including a resignation or termination of employment at retirement age) occurs except bonuses payable after the March 1 immediately following the date the Employee incurs a Separation from Service if the Eligible Employee elected payment in annual installment’s and Section 9(I) does not apply.
|
(G)
|
Deferral Accounts. Bookkeeping accounts maintained for a Participant to which are credited the amounts deferred under Deferral Elections, Stock Option Gain Deferral Elections and amounts credited pursuant to Appendix B and/or Appendix C of the Plan, together with any increase or decrease thereon, based on the earnings option(s) selected by the Participant or mandated by the Plan.
|
(H)
|
Deferral Election. An irrevocable election made by an Eligible Employee during an enrollment period specified by the Plan Administrator or the Plan to defer the receipt of Compensation for a given Deferral Year. The term “Deferral Election” does not include a Stock Option Gain Deferral Election or the automatic deferral of supplemental Company matching contributions credited pursuant to Appendix B of the Plan and/or supplemental discretionary profit sharing contributions credited pursuant to Appendix C of the Plan.
|
(I)
|
Deferral Year. The Plan Year for which a Deferral Election is made.
|
(J)
|
Eligible Employee. Each employee of the Company or any of its Affiliates who has been selected for participation in the Plan for a given Plan Year pursuant to Section 3 of the Plan and/or who receives an allocation pursuant to Appendix B and/or Appendix C of the Plan for a given Plan Year. Each Eligible Employee shall be a member of a “select group of management or highly compensated employees,” within the meaning of Sections 201, 301 and 401 of ERISA,
|
(K)
|
ERISA. The Employee Retirement Income Security Act of 1974, as from time to time amended.
|
(L)
|
Fund Option. An earnings option based on a selection of registered investment companies, collective investment funds, private portfolios, or other comparable investment media chosen from time to time by the Company’s Employee Benefit Review Committee, unless or until the Plan Administrator appoints a different individual or committee to select all or some of the earnings options.
|
(M)
|
Initial Deferral Election. The special Deferral Election described in Section 6(C) that is available only to certain Eligible Employees who have not previously participated in an account balance nonqualified deferred compensation plan maintained by the Company or an Affiliate.
|
(N)
|
Key Employee. If the Participant is determined to be a “Key Employee” for purposes of Code section 409A, no lump sum or installment payment shall be paid to the Participant prior to the date that is six months after the date the Participant’s Separation from Service occurred. For purposes of this Plan, a Participant’s status as a Key Employee shall be determined in accordance with the Wells Fargo & Company Key/Specified Employee Policy as adopted and amended from time to time by the Human Resources Committee of the Company’s Board of Directors.
|
(O)
|
Participant. Each Eligible Employee who enters into a Deferral Election, who receives an allocation pursuant to Appendix B of the Plan, who receives an allocation pursuant to Appendix C of the Plan, who prior to 2004 entered into a Stock Option Gain Deferral Election, or who has a Transferred Account set up under the Plan. An employee who has become a Participant shall remain a Participant in the Plan until the date of the Participant’s death, or if earlier, the date the Participant no longer has any accounts under the Plan.
|
(P)
|
Plan Administrator. “Plan Administrator” of the Plan is the Director of Human Resources and the Director of Compensation and Benefits, each of whom, acting individually, may take action as the Plan Administrator.
|
(Q)
|
Plan Year. The twelve-month period beginning on any January 1 and ending the following December 31.
|
(R)
|
Separation from Service. For purposes of this Plan, a participant’s “Separation from Service” occurs upon his or her death, retirement or other termination of employment or other event that qualifies as a “separation from service” under Code section 409A and the applicable regulations thereunder as in effect from time to time. The Plan Administrator shall determine in each case when a participant’s Separation from Service has occurred, which determination shall be made in a manner consistent with Treasury Regulation Section 1.409A-1(h). The Plan Administrator shall determine that a Separation from Service has occurred as of a certain date when the facts and circumstances indicate that the Company (or an Affiliate, if applicable) and the participant reasonably anticipate that, after that date, the participant will render no further services, or the participant’s level of bona fide services (either as an employee or independent contractor) will permanently decrease to a level that is 20% or less than the average level of the participant’s bona fide services (either as an employee or independent contractor) previously in effect for such participant over the immediately preceding 36-month period (or the participant’s entire period of service, if the participant has been providing services for less than 36 months). If the Participant incurs a Separation from Service as determined by the Plan Administrator, a subsequent rehire will not impact the prior Separation from Service determination and distribution will commence pursuant to Section 9.
|
(1)
|
Transfers. A Separation from Service has not occurred upon the participant’s transfer of employment or of provision of services from the Company to an Affiliate or vice versa, or from an Affiliate to another Affiliate.
|
(2)
|
Medical leave of absence. Where the participant has a medical leave of absence due to any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than six months, and he or she has not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the earlier of: (A) the first day on which the participant would not be considered “disabled” under any disability policy of the Company or Affiliate under which the participant is then receiving a benefit; or (B) the first day on which the participant’s medical leave of absence period exceeds 29 months.
|
(3)
|
Military leave of absence. Where the participant has a military leave of absence, and he or she has not returned to employment with the Company or an Affiliate, a Separation from Service has occurred on the day next following the last day on which the participant is entitled to reemployment rights under USERRA.
|
(4)
|
Salary continuation leave. A Separation from Service has occurred on the first day of the Participant’s salary continuation leave taken under the Company’s salary continuation leave program.
|
(5)
|
Other leaves of absence. In the event that the participant is on a bona fide leave of absence, not otherwise described in this Sec. 2(R), from which he or she has not returned to employment with the Company or an Affiliate, the participant’s Separation from Service has occurred on the first day on which the participant’s leave of absence period exceeds six months or, if earlier, upon the participant’s termination of employment (provided that such termination of employment constitutes a Separation from Service):
|
(6)
|
Asset purchase transaction. If, in connection with the sale or other disposition of substantial assets (such as a division or substantially all assets of a trade or business) of the Company or an Affiliate to an unrelated buyer, the participant becomes an employee of the buyer or an affiliate of the buyer upon the closing of or in connection with such transaction,
|
(S)
|
Stock Option Gain Compensation. Gain realized from the exercise of specified Common Stock option grants under the Company’s Long-Term Incentive Compensation Plan, or any other stock option plan approved by the Plan Administrator, using the stock-for-stock swap (“stock swap”) method of exercise. Stock option gains derived from either a cash exercise or a same day sale are not Stock Option Gain Compensation.
|
(T)
|
Stock Option Gain Deferral Election. An irrevocable election to defer the receipt of Stock Option Gain Compensation made by an Eligible Employee prior to January 1, 2004.
|
(U)
|
Transferred Account. A bookkeeping account maintained for a Participant to which is credited the Participant’s interest in any nonqualified deferred compensation plan transferred to this Plan, together with any increase or decrease thereon based on the earnings option(s) selected by the Participant or mandated by the Plan.
|
(A)
|
Deferral Elections for Deferral Years Beginning On or After January 1, 2008. An Eligible Employee may elect to defer all or any part of his or her Compensation for a Deferral Year beginning on or after January 1, 2008, by making a Deferral Election in accordance with Section 6 below.
|
(B)
|
Deferral Elections for Deferral Years Beginning Prior to January 1, 2008. Deferral Elections for Deferral Years beginning prior to January 1, 2008, were made pursuant to the terms of the Plan in effect at the time of the Deferral Election.
|
(C)
|
Stock Option Gain Deferral Elections. Effective January 1, 2004, the Plan no longer permits Eligible Employees to enter into Stock Option Gain Deferral Elections. Stock Option Gain Deferral Elections made prior to that date were made pursuant to the terms of the Plan in effect at the time of the
|
(A)
|
Time. Except as otherwise provided in (C) below, an Eligible Employee who wishes to defer Compensation earned in a Deferral Year must file an irrevocable Deferral Election with respect to that Compensation during the enrollment period specified by the Plan Administrator for that Deferral Year, but no later than December 31 of the Plan Year preceding that Deferral Year. A Deferral Election shall be effective only for the Deferral Year specified in the Deferral Election. A new Deferral Election must be filed for each Deferral Year. For purposes of election timing under this Section 6(A), if Compensation consists of sales commissions, the Participant is treated as providing the services giving rise to such commissions in the Participant’s taxable year in which the customer remits payment to the Company or its Affiliates, or, if applied consistently to all similarly situated service providers, in the Participant’s taxable year in which the sale giving rise to the commissions occurs. For purposes of election timing under this Section 6(A), if Compensation consists of investment commissions, the Participant is treated as providing the services giving rise to such commissions over the 12 months preceding the date as of which the overall value of the assets or the asset accounts is determined for purposes of calculation of the commissions.
|
(B)
|
Content. An Eligible Employee’s Deferral Election shall indicate the percentage of Compensation to be deferred, the earnings option(s) that will determine earnings on the deferred Compensation (see Section 7(A)), and the time and form of distribution (see Section 9). The Eligible Employee shall specify for each Compensation category the percentage to be deferred per pay period.
|
(C)
|
Initial Deferral Elections. An employee who:
|
(1)
|
has not previously been eligible to participate in any “account balance plan” (as defined in Treas. Reg. §31.3121(v)(2)-1(c)(1)(ii)(A)) maintained by the Company or any Affiliate, other than a plan described in paragraph (c)(2)(i)(D), (E), (F), (G) or (H) of Treas. Reg. §1.409A-1, including any arrangement that would have been such an account balance plan if the person had been an employee at the time of his or her participation, and
|
(2)
|
becomes an Eligible Employee on or before the one-month anniversary of the employee’s date of hire,
|
(D)
|
Charges Against Accounts. The Plan Administrator may allocate a portion of any administrative expenses of the Plan to each Participant’s Deferral Accounts and/or Transferred Accounts, as applicable.
|
(E)
|
Cancellation of Deferral Election. Notwithstanding any other provision in the Plan to the contrary, an Eligible Employee’s Deferral Election for a Deferral Year will be cancelled for the remainder of the Deferral Year following the date the Eligible Employee receives a hardship distribution from any Code section 401(k) plan maintained by the Company or an Affiliate of the Company in accordance with Treas. Reg. section 1.409A-3(j)(4)(viii). In the event that the end of a six month period following the date that an Eligible Employee receives a hardship distribution from any Code section 401(k) plan maintained by the Company or an Affiliate of the Company spans two Deferral Years, the Eligible Employee’s Deferral Election for the second Deferral Year shall not become effective until after the end of the six month period.
|
(F)
|
Reduced by Payroll Deductions. The amount of Compensation actually deferred shall be reduced to the extent necessary (1) to pay the Federal Insurance Contributions Act (“FICA”) taxes imposed under §3101 and §3111 of the Code and any other payroll deductions determined by the Plan Administrator prior to the beginning of the Deferral Year, or (2) to satisfy any limitations established by the Plan Administrator prior to the beginning of the Deferral Year.
|
(A)
|
Earnings Options. At the time of the Participant’s Deferral Election, a Participant must choose to allocate the amounts that will be credited to the Participant’s Deferral Account among the following earnings options in increments of one (1) percent:
|
(1)
|
Common Stock Earnings Option
|
(2)
|
CD Option
|
(3)
|
Fund Options
|
(B)
|
Periodic Credits of Deferral Amounts. Deferred Compensation shall be credited to a Participant’s Deferral Account as of the day it would otherwise have been paid to the Participant. Stock Option Gain Compensation will be credited to a Participant’s Deferral Account as of the stock option exercise date. All periodic credits to a Participant’s Deferral Account under the Fund Options shall be in share equivalents of the Fund Options. All periodic credits to a Participant’s Deferral Account under the Common Stock Earnings Option shall be in share equivalents of Common Stock. The number of share equivalents of Common Stock credited to a Deferral Account for Compensation or Stock Option Gain Compensation allocated to the Common Stock Earnings Option shall be determined by dividing the amount so allocated by the New York Stock Exchange-only closing price per share of Common Stock on the day as of which the amount is credited (or, if the New York Stock Exchange is closed on that date, on the next preceding date on which it is open).
|
(C)
|
Increase or Decrease to Deferral Accounts. The value of a Participant’s Deferral Account will increase or decrease as follows:
|
(1)
|
CD Option. The amount of the increase or decrease for the CD Option for a particular calendar month is calculated based on the interest rate as of the first business day of that month for a certificate of deposit in such denomination and for such duration as is determined by the Plan Administrator.
|
(2)
|
Fund Options. The amount of the increase or decrease for a Fund Option is based on the performance for the selected Fund Option.
|
(3)
|
Common Stock Earnings Option. The amount of the increase or decrease for the Common Stock Earnings Option is based on the performance of the Common Stock including dividends. Common Stock dividend equivalents will be credited under the Common Stock Earnings Option at the same time and same rate as dividends are paid on shares of Common Stock. Cash dividend equivalents shall be converted to share equivalents based on the New York Stock Exchange-only closing price per share of Common Stock on the last business day prior to the dividend payment date (or, if the New York Stock Exchange is closed on that date, on the next preceding date on which it is open).
|
(A)
|
Lump Sum or Installment Distributions. The Participant must elect to receive the balance of each Deferral Account in either a lump sum or in annual installments over a period of years up to ten.
|
(B)
|
Timing of Distribution. The Participant must designate on his or her Deferral Election the year that distribution from the resulting Deferral Account shall commence. For purposes of Stock Option Gain Deferral Elections, the Participant may not elect to receive the distribution earlier than twelve (12) months after the date on which the option is exercised. In all events, however, distribution shall commence as soon as practicable after the March 1 immediately following the date the Participant ceases to be employed by the Company and its Affiliates. A Participant who is actively employed by the Company or an Affiliate shall be permitted to make a one-time redeferral election to push back the timing of distribution of a particular Deferral Year by selecting a new distribution year that is at least three (3) years beyond the originally elected distribution year and by completing an election form in a form provided by the Plan Administrator at least twelve (12) months prior to the originally elected distribution year. If a Participant redefers by electing a new distribution year for a particular Deferral Year, that Deferral Account shall become subject to the terms of the Plan in effect for Deferral Accounts earned and vested prior to January 1, 2005 at the time of the new distribution election including the early withdrawal provisions. An election of a new distribution year shall not change the form of distribution (lump sum or installments) originally selected on the Participant’s Deferral Election.
|
(C)
|
Upon Death. If a Participant dies before receiving all payments under the Plan, payment of the balance in the Participant’s Deferral Accounts shall be made to the Participant’s designated beneficiary in the forms of distribution elected by the Participant on the Participant’s Deferral Elections as soon as practicable after the March 1 following the date of the Participant’s death. To be valid, any such designation shall be in such form as the Plan Administrator may prescribe, and shall be filed with the Plan Administrator or its agent prior to the Participant’s death.
|
(1)
|
The Participant’s spouse or domestic partner.
|
(2)
|
The Participant’s biological and adopted children, except that if any of his or her children predecease the Participant but leave descendants surviving the Participant, such
|
(3)
|
The Participant’s parents.
|
(4)
|
The Participant’s brothers and sisters.
|
(5)
|
The Participant’s estate.
|
(D)
|
Transitional Rule. Notwithstanding the foregoing distribution rules contained in this Section 8, a Participant who was employed by the Company on January 1, 2000 and who entered into a Deferral Election for a Deferral Year prior to January 1, 2000 or had a Transferred Account (collectively “Prior Deferral Elections”) and who had not commenced distribution of such Prior Deferral Election prior to January 1, 2000, was given a one-time opportunity effective January 1, 2000 to elect to change the method of distribution (lump sum versus installments) or to postpone the distribution commencement date for a Prior Deferral Election for a period of at least one year from the original distribution commencement date selected on the Prior Deferral Election. To be effective, such change had to be submitted to the Plan Administrator on a form provided by the Plan Administrator by December 31, 1999, or if earlier, a date required by the Plan Administrator. If the change was not submitted by December 31, 1999, the method and timing of distribution elected on the Prior Deferral Election remained in effect. If the Participant elected to make a change to a Prior Deferral Election, the amount deferred under the Prior Deferral Election and all earnings attributable to that Prior Deferral Election became subject to the distribution rules contained in this Section 8 and the timing and form of distribution selected on the Prior Deferral Election was no longer applicable with respect to distributions on account of termination of employment, retirement or disability. For purposes of a Prior Deferral Election made under this Plan, “retirement” means the Participant’s termination of employment with the Company after the Participant’s attainment of regular or early retirement as defined in Section 6.1 or 6.2 of the Norwest Corporation Pension Plan in effect on June 30, 1999. Also, for purposes of Prior Deferral Elections made under this Plan, “disability” means the Participant’s total disability as described in the Wells Fargo & Company Long-Term Disability Plan, as amended from time to time.
|
(E)
|
Form of Distributions. All distributions from Deferral Accounts shall be payable as follows:
|
(1)
|
in cash, for all Deferral Accounts in an earnings option other than the Common Stock Earnings Option; or
|
(2)
|
in shares of Common Stock (and cash for any fractional share), for the portion of the Deferral Accounts in the Common Stock Earnings Option.
|
(F)
|
Valuation of Deferral Accounts for Distribution.
|
(1)
|
The amount of the distribution in cash and/or Common Stock shall be determined based on the Participant’s Deferral Account balance (and, if applicable, the price of Common Stock) as of the close of business on March 1 of the year of distribution (or the next following business day if March 1 is not a business day). The amount of the distribution in cash and/or Common Stock as of any other date on which a distribution is made shall be determined based on the Participant’s Deferral Account balance (and, if applicable, the price of Common Stock) as of the close of business on the last business day of the month in which the event which triggers distribution occurs. Earnings adjustments to amounts that have been valued for distribution shall cease as of the date used to value such amounts.
|
(2)
|
The amount of each installment payment will be based on the value of the Participant’s Deferral Account as of the close of business on March 1 of the year of the installment
|
(G)
|
Early Withdrawal. Effective January 1, 2004, the Plan will not allow early withdrawals for any reason from Deferral Accounts attributable to Deferral Years commencing on or after January 1, 2004 and to Deferral Accounts attributable to Deferral Years commencing prior to January 1, 2004 that were subject to a change in the time of distribution election made pursuant to Section 8(B). A Participant or beneficiary who wishes to receive payment of all or part of the Participant’s other Deferral Accounts for Deferral Years prior to 2004 on a date earlier than that specified in the Deferral Election or in the case of a beneficiary in accordance with Section 8(C), may do so by filing with the Plan Administrator a request for early withdrawal. Such payment will be made from the earliest Deferral Year(s) in which the Participant has participated in the Plan. Partial withdrawals of a given Deferral Year’s deferral are not permitted. Deferral Accounts will be distributed in the order in which the accounts were established. Stock Option Gain Compensation deferrals will be distributed in the order in which the accounts were established following the distribution of all funds from the Compensation Deferrals. For the appropriate Deferral Year(s), account accruals to date shall be disbursed completely, less a 10% early withdrawal penalty on the amount distributed. The 10% penalty assessed for early withdrawal will be permanently forfeited by the Participant and will be credited to the account of the Company. Further, the Participant shall forfeit eligibility to defer Compensation under this Plan during the two Deferral Years following the year in which the early withdrawal is made, but in no case shall an early withdrawal cause a current Deferral Election (either of Compensation or Stock Option Gain Compensation) to be suspended or canceled. In no case may a Participant or beneficiary make more than one early withdrawal per calendar year.
|
(H)
|
Accounts Less Than $25,000. Notwithstanding the foregoing provisions of this Section 8, if the aggregate value of the Participant’s Deferral Accounts attributable to (a) Deferral Elections made for Deferral Years commencing on or after January 1, 2000, (b) Deferral Elections made on July 1, 1999 by transferred BRP Participants, and (c) any Prior Deferral Elections that became subject to the terms of this Plan in accordance with Section 8 (D), is less than $25,000 at the end of the month in which the Participant’s employment terminates, then the portion of such Deferral Accounts subject to the distribution rules in this Section 8 shall be paid in a lump sum as soon as practicable after the March 1 immediately following the Participant’s termination date.
|
(I)
|
Definitions Relating to Marital Status. For all purposes under this Plan, the following terms have the meanings assigned to them below:
|
(1)
|
The term “spouse” means a person to whom the Participant is legally married at the relevant time under the laws of any U.S. or foreign jurisdiction having the legal authority to sanction marriages, including the common-law spouse of a Participant in a legally recognized common-law marriage. The term “spouse” does not include an individual who has entered into a registered domestic partnership, civil union or other similar formal relationship with a Participant recognized under the law of any U.S. or foreign jurisdiction that is not denominated as a marriage under the laws of that U.S. or foreign jurisdiction. Notwithstanding any provision of this Plan to the contrary, this provision shall be construed in accordance with Federal law.
|
(2)
|
The term “domestic partner” means a person who is not the spouse of the Participant as defined in subsection (1) of this section, but who at the relevant time is the Participant’s significant other (together referred to as “partners”) with whom the Participant lives and shares financial responsibility. A domestic partner may be of the same gender as the Participant or of opposite gender. A person will be considered a domestic partner of the Participant if the person and the Participant are joined in a civil union (or other similar formal relationship) that is recognized as creating some or all of the rights of marriage under the laws of the state or country in which the union was created, but which is not denominated or recognized as marriage under the laws of that state or country. A person will be considered a domestic partner of the Participant if the Participant or other person
|
(a)
|
The partners have shared a single, intimate, and committed relationship of mutual caring for at least six months and intend to remain in the relationship indefinitely.
|
(b)
|
The partners reside together in the same residence and have lived in a spouse-like relationship for at least six months.
|
(c)
|
The partners are not related by blood or a degree of closeness which would prohibit marriage under the law of the state in which they reside.
|
(d)
|
Neither partner is married to another person under federal, state, or common law, and neither has another domestic partner or is a member of another domestic partnership.
|
(e)
|
Each partner is mentally competent to consent or contract.
|
(f)
|
Both partners are at least 18 years of age.
|
(g)
|
The partners are financially interdependent, are jointly responsible for each other’s basic living expenses, and are able to provide documents proving at least three of the following situations to demonstrate such financial interdependence:
|
(i)
|
Joint ownership of real property or a common leasehold interest in real property.
|
(ii)
|
Common ownership of an automobile.
|
(iii)
|
Joint bank or credit accounts.
|
(iv)
|
A will which designates the other as primary beneficiary.
|
(v)
|
A beneficiary designation form for a retirement plan or life insurance policy signed
|
(vi)
|
Designation of one partner as holding power of attorney for health care decisions for the other.
|
(A)
|
Lump Sum or Installment Distributions. The Participant must elect to receive the balance of each Deferral Account in either a lump sum or in annual installments over a period of years up to ten (10) years, except that the total amount accumulated pursuant to Appendix B and/or Appendix C of the Plan shall automatically be paid in a lump sum.
|
(B)
|
Timing of Distribution. Except with respect to the total amount accumulated pursuant to Appendix B and/or Appendix C of the Plan, the Participant must designate on his or her Deferral Election the year that distribution from the resulting Deferral Account shall commence. Distribution will commence on or as soon as practicable after March 1 of the distribution commencement year, but not later than December 31 of that year. If the Participant elected to receive installments, distribution of each subsequent annual installment shall occur on or as soon as practicable after March 1 of the installment year, but not later than December 31 of that year. If distribution does
|
(C)
|
Redeferral. A Participant who has not had a Separation from Service may elect to delay the distribution of any one or more of such Participant’s Deferral Accounts except any amounts accumulated under Appendix B and/or Appendix C of the Plan, subject to the provisions of Section 9(B) above regarding payment following Separation from Service, by electing a new distribution commencement year that is at least five (5) years beyond the originally elected distribution commencement year. Any such redeferral election shall be made by filing an election on a form and in the manner provided by the Plan Administrator at least twelve (12) months prior to the originally elected distribution year and shall not take effect until at least 12 months after the date on which it is filed. A redeferral election shall not change the form of distribution (lump sum or installments) originally selected on the Participant’s Deferral Election for the relevant Deferral Account. Only one redeferral election shall be permitted for any Deferral Account.
|
(D)
|
Upon Death. If a Participant dies before receiving all payments under the Plan, payment of the balance in the Participant’s Deferral Accounts, excluding the amounts accumulated under Appendix B and/or Appendix C of the Plan shall be made to the Participant’s designated beneficiary in the forms of distribution elected by the Participant on the Participant’s Deferral Elections. Payment of the amounts accumulated under Appendix B and/or Appendix C of the Plan shall be paid in a lump sum to the Participant’s designated beneficiary as soon as practicable after the March 1 following the date of the Participant’s death. If a payment of a Deferral Account, excluding the amounts accumulated under Appendix B and/or Appendix C commenced prior to the Participant’s death, payments from that Deferral Account after the Participant’s death shall be made to the Participant’s designated beneficiary when they would have been made to the Participant if the Participant had survived. If payment of a Deferral Account, excluding the amounts accumulated under Appendix B and/or Appendix C did not commence prior to the Participant’s death, payments from that Deferral Account after the Participant’s death shall commence as soon as practicable after March 1 following the date of the Participant’s death. To be valid, any such designation shall be in such form as the Plan Administrator may prescribe, and shall be filed with the Plan Administrator or its agent prior to the Participant’s death.
|
(1)
|
The Participant’s spouse or domestic partner.
|
(2)
|
The Participant’s biological and adopted children, except that if any of his or her children predecease the Participant but leave descendants surviving the Participant, such descendants shall take by right of representation the share their parent would have taken if living.
|
(3)
|
The Participant’s parents.
|
(4)
|
The Participant’s brothers and sisters.
|
(5)
|
The Participant’s estate.
|
(E)
|
Form of Distributions. All distributions from Deferral Accounts shall be payable as follows:
|
(1)
|
in cash, for all Deferral Accounts in an earnings option other than the Common Stock Earnings Option; or
|
(2)
|
in shares of Common Stock (and cash for any fractional share), for the portion of the Deferral Accounts in the Common Stock Earnings Option.
|
(F)
|
Valuation of Deferral Accounts for Distribution.
|
(1)
|
The amount of the distribution in cash and/or Common Stock shall be determined based on the Participant’s Deferral Account balance as of the close of business on March 1 of the year of distribution (or the next following business day if March 1 is not a business day). Earnings adjustments to amounts that have been valued for distribution shall cease as of the date used to value such amounts.
|
(2)
|
The amount of each installment payment will be based on the value of the Participant’s Deferral Account as of the close of business on March 1 of the year of the installment payment (or the next following business day if March 1 is not a business day) and the number of the installments remaining. The balance remaining in the Deferral Account shall continue to be adjusted based on the earnings option(s) among which the Deferral Account is allocated until the valuation date used to determine the amount of the last payment. All installment payments will be made by pro rata distributions from each earnings option.
|
(G)
|
Withdrawals Due to Unforeseeable Emergency. Notwithstanding any provision of this Section 9 to the contrary, a Participant may withdraw all or a portion of the balance of the Participant’s Deferral Accounts, except the total amount accumulated pursuant to Appendix B and/Appendix C of the Plan, established for Deferral Years commencing on or after January 1, 2013 (the “eligible Deferral Accounts”) due to unforeseeable emergency, subject to the following:
|
(a)
|
For purposes of this section, “unforeseeable emergency” means a severe financial hardship resulting from (i) illness or accident of the Participant or his or her spouse, beneficiary or dependent, (ii) loss of the Participant’s home or property due to casualty, or (iii) other similar extraordinary and unforeseeable circumstances beyond the control of the Participant. For example, needs such as the following may constitute unforeseeable emergencies: (1) imminent foreclosure of or eviction from the Participant’s primary residence; (2) funeral expenses for the Participant’s spouse, beneficiary or dependent; or (3) uninsured medical expenses of the Participant or his or her spouse, beneficiary or dependent.
|
(b)
|
Withdrawals are available both before and after a Participant’s Separation from Service.
|
(c)
|
Withdrawals under this Section are not permitted to the extent the Participant’s hardship is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets (to the extent liquidation would not cause a severe financial hardship), or by cessation of deferrals under the Plan. For this purpose, any additional compensation that is available from a qualified employer plan (including any loan) or that, due to the unforeseeable emergency, is available under another nonqualified deferred compensation plan may be disregarded.
|
(d)
|
If a Participant takes a withdrawal under this section, his or her Deferral Election for the Deferral Year in which the withdrawal occurs (if any) will be terminated and no eligible Compensation will be deferred under Section 5 for the remainder of that Deferral Year.
|
(e)
|
The amount withdrawn shall not exceed the amount reasonably necessary to satisfy the unforeseeable emergency (which may include amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the withdrawal).
|
(f)
|
Withdrawal requests must be made in writing and are subject to approval by the Plan Administrator. The Plan Administrator has discretionary authority to determine the extent to which a payment available under this Section 9(G) will be made. The Participant must supply any financial or other information the Plan Administrator determines is necessary to determine whether to permit the withdrawal.
|
(g)
|
The Participant’s eligible Deferral Account balance will be reduced by the amounts withdrawn. If the Participant has more than one eligible Deferral Account, the Plan Administrator will designate how the withdrawal amount is allocated among those eligible Deferral Accounts at the time the withdrawal is paid.
|
(H)
|
Definitions Relating to Marital Status. For all purposes under this Plan, the following terms have the meanings assigned to them below:
|
(1)
|
The term “spouse” means a person to whom the Participant is legally married at the relevant time under the laws of any U.S. or foreign jurisdiction having the legal authority to sanction marriages, including the common-law spouse of a Participant in a legally recognized common-law marriage. The term “spouse” does not include an individual who has entered into a registered domestic partnership, civil union or other similar formal relationship with a Participant recognized under the law of any U.S. or foreign jurisdiction that is not denominated as a marriage under the laws of that U.S. or foreign jurisdiction. Notwithstanding any provision of this Plan to the contrary, this provision shall be construed in accordance with Federal law.
|
(2)
|
The term “domestic partner” means a person who is not the spouse of the Participant as defined in subsection (1) of this section, but who at the relevant time is the Participant’s significant other (together referred to as “partners”) with whom the Participant lives and shares financial responsibility. A domestic partner may be of the same gender as the Participant or of opposite gender. A person will be considered a domestic partner of the Participant if the person and the Participant are joined in a civil union (or other similar formal relationship) that is recognized as creating some or all of the rights of marriage under the laws of the state or country in which the union was created, but which is not denominated or recognized as marriage under the laws of that state or country. A person will be considered a domestic partner of the Participant if the Participant or other person can provide a domestic partnership certificate to the Plan Administrator from a city, county, state or country which offers the ability to register a domestic partnership. A person who is not joined in civil union (or similar formal relationship) and is not registered in a domestic partnership with the Participant will not be considered a domestic partner unless the Participant and/or domestic partner provide sufficient evidence to the Plan Administrator that all of the following requirements are satisfied:
|
(a)
|
The partners have shared a single, intimate, and committed relationship of mutual caring for at least six months and intend to remain in the relationship indefinitely.
|
(b)
|
The partners reside together in the same residence and have lived in a spouse-like relationship for at least six months.
|
(c)
|
The partners are not related by blood or a degree of closeness which would prohibit marriage under the law of the state in which they reside.
|
(d)
|
Neither partner is married to another person under federal, state, or common law, and neither has another domestic partner or is a member of another domestic partnership.
|
(e)
|
Each partner is mentally competent to consent or contract.
|
(f)
|
Both partners are at least 18 years of age.
|
(g)
|
The partners are financially interdependent, are jointly responsible for each other’s basic living expenses, and are able to provide documents proving at least three of the following situations to demonstrate such financial interdependence:
|
(i)
|
Joint ownership of real property or a common leasehold interest in real property.
|
(ii)
|
Common ownership of an automobile.
|
(iii)
|
Joint bank or credit accounts.
|
(iv)
|
A will which designates the other as primary beneficiary.
|
(v)
|
A beneficiary designation form for a retirement plan or life insurance policy signed and completed to the effect that one partner is a beneficiary of the other.
|
(vi)
|
Designation of one partner as holding power of attorney for health care decisions for the other.
|
(I)
|
Accounts Less Than Code §402(g) Threshold. Notwithstanding the foregoing provisions of this Section 9, if
|
(1)
|
the aggregate value of the Participant’s Deferral Accounts that are subject to the distribution rules in this Section 9, Appendix B and/or Appendix C of the Plan due to Separation from Service or death is less than the applicable dollar amount under Code §402(g)(1)(B) as of the end of the month following the Participant’s Separation from Service or death, and
|
(2)
|
a lump sum payment of the value referred to in (1) above would result in the termination and liquidation of the entirety of the Participant’s interest under the Plan and any other agreements, methods, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Treas. Reg. §1.409A-1(c)(2), taking into account only such interests as are subject to Code §409A,
|
(A)
|
Claims and Appeals. If the Participant believes there is an error in his or her account or in a distribution, believes he or she is entitled to different benefits from the Plan, or disagrees with any determination that has been made reflecting the Participant’s benefits under the Plan, the Participant (or the Participant’s authorized representative) may present a claim in
|
(B)
|
Initial Review. Ordinarily, the Plan Administrator will respond to a claim within 90 days after receiving it. The Participant will receive either:
|
•
|
A notice describing special circumstances requiring a specified amount of additional time (but no more than 180 days from the day the Participant delivered the claim) to reach a decision.
|
•
|
Any additional information needed from the Participant in connection with the claim and the reason such information is needed.
|
(C)
|
Appealing a Decision, If the Participant does not agree with the Plan Administrator’s decision and the Participant wants to pursue the matter further, the Participant (or the Participant’s authorized representative) must request that the decision be reviewed by the Plan Administrator by filing a written request for review within 60 days after receiving the notice that the claim has been denied. The Plan Administrator reserves the right to delegate its authority to review appeals.
|
(D)
|
Deadline for Legal Action. Any lawsuit challenging a claim denial must be commenced within six months after the date on the denial letter. In addition to that six month deadline, there is an additional “catch-all” limitation that applies to all lawsuits involving Plan benefits. Any such lawsuit must be commenced no later than two years after the Participant or other claimant first receives information that constitutes a clear repudiation of the rights the individual is seeking to assert. This two-year limitation period will not run during the period of time, if any, when the claim is in the claims procedure process. Once that process is completed, however, the two year period will continue running where it left off.
|
(A)
|
accelerated payment pursuant to a termination and liquidation of the Plan if that occurs within 12 months of a corporate dissolution or bankruptcy;
|
(B)
|
termination and liquidation of the Plan pursuant to irrevocable action taken during the period commencing 30 days before and ending 12 months after a change in control event within the meaning of Treas. Reg. §1.409A-3(i)(5), but only if all deferred compensation arrangements sponsored by the Company and its Affiliates that are treated as a single plan under Treas. Reg. §1.409A-1(c)(2) that includes this Plan are terminated and liquidated with respect to every participant who experienced such change in control event, and all amounts
|
(C)
|
termination and liquidation of the Plan, provided:
|
(1)
|
the termination and liquidation is not proximate to a downturn in the financial health of the Company and its Affiliates,
|
(2)
|
the Company and its Affiliates also terminate and liquidate all other deferral arrangements that would be aggregated with the Plan under Treas. Reg. §1.409A-1(c)(2);
|
(3)
|
no accelerated payments are made within 12 months after irrevocable action is taken to terminate and liquidate the Plan,
|
(4)
|
all payments are made within 24 months after all necessary action is taken to irrevocably terminate and liquidate the Plan, and
|
(5)
|
during the three years after such irrevocable action is taken the Company and its Affiliates do not adopt a new plan that would be aggregated with the Plan under Treas. Reg. §1.409A-1(c)(2) if the Plan still existed.
|
1.
|
Section 13(f)(2) of the Supplemental Cash Balance Plan is amended in its entirety effective December 31, 2018 to read in full as follows:
|
2.
|
Except as herein expressly amended, all the terms and provisions of the Supplemental Cash Balance Plan shall continue in full force and effect.
|
|
|
|
|
Financial Review
|
|
|
|
|
|
|
||
|
|
|
Overview
|
|
|
5
|
|
|
Available-for-Sale and Held-to-Maturity Debt Securities
|
|||
|
|
|
Earnings Performance
|
|
|
6
|
|
|
Loans and Allowance for Credit Losses
|
|||
|
|
|
Balance Sheet Analysis
|
|
|
7
|
|
|
Leasing Activity
|
|||
|
|
|
Off-Balance Sheet Arrangements
|
|
|
8
|
|
|
Equity Securities
|
|||
|
|
|
Risk Management
|
|
|
9
|
|
|
Premises, Equipment and Other Assets
|
|||
|
|
|
Capital Management
|
|
|
10
|
|
|
Securitizations and Variable Interest Entities
|
|||
|
|
|
Regulatory Matters
|
|
|
11
|
|
|
Mortgage Banking Activities
|
|||
|
|
|
Critical Accounting Policies
|
|
|
12
|
|
|
Intangible Assets
|
|||
|
|
|
Current Accounting Developments
|
|
|
13
|
|
|
Deposits
|
|||
|
|
|
Forward-Looking Statements
|
|
|
14
|
|
|
Short-Term Borrowings
|
|||
|
|
|
Risk Factors
|
|
|
15
|
|
|
Long-Term Debt
|
|||
|
|
|
|
|
|
|
16
|
|
|
Guarantees, Pledged Assets and Collateral, and Other Commitments
|
||
|
|
|
|
Controls and Procedures
|
|
|
17
|
|
|
Legal Actions
|
||
|
|
|
Disclosure Controls and Procedures
|
|
|
18
|
|
|
Derivatives
|
|||
|
|
|
Internal Control Over Financial Reporting
|
|
|
19
|
|
|
Fair Values of Assets and Liabilities
|
|||
|
|
|
Management’s Report on Internal Control over Financial Reporting
|
|
|
20
|
|
|
Preferred Stock
|
|||
|
|
|
Report of Independent Registered Public Accounting Firm
|
|
|
21
|
|
|
Common Stock and Stock Plans
|
|||
|
|
|
|
|
|
|
22
|
|
|
Revenue from Contracts with Customers
|
||
|
|
|
|
Financial Statements
|
|
|
23
|
|
|
Employee Benefits and Other Expenses
|
||
|
|
|
Consolidated Statement of Income
|
|
|
24
|
|
|
Income Taxes
|
|||
|
|
|
Consolidated Statement of Comprehensive Income
|
|
|
25
|
|
|
Earnings and Dividends Per Common Share
|
|||
|
|
|
Consolidated Balance Sheet
|
|
|
26
|
|
|
Other Comprehensive Income
|
|||
|
|
|
Consolidated Statement of Changes in Equity
|
|
|
27
|
|
|
Operating Segments
|
|||
|
|
|
Consolidated Statement of Cash Flows
|
|
|
28
|
|
|
Parent-Only Financial Statements
|
|||
|
|
|
|
|
|
|
29
|
|
|
Regulatory and Agency Capital Requirements
|
||
|
|
|
|
Notes to Financial Statements
|
|
|
|
|
|
|
||
|
1
|
|
|
Summary of Significant Accounting Policies
|
|
|
|
|
|
|
||
|
2
|
|
|
Business Combinations
|
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
|||
|
3
|
|
|
Cash, Loan and Dividend Restrictions
|
|
|
|
|
Quarterly Financial Data
|
|||
|
4
|
|
|
Trading Activities
|
|
|
|
|
Glossary of Acronyms
|
|
Wells Fargo & Company
|
29
|
Overview
|
30
|
Wells Fargo & Company
|
|
•
|
revenue of $85.1 billion, down from $86.4 billion, with net interest income of $47.2 billion, down $2.8 billion, or 6%, and noninterest income of $37.8 billion, up $1.4 billion, or 4%;
|
•
|
the net interest margin was 2.73%, down 18 basis points;
|
•
|
noninterest expense of $58.2 billion, up $2.1 billion, or 4%;
|
•
|
an efficiency ratio of 68.4%, compared with 65.0%;
|
•
|
average loans of $951.0 billion, up $5.8 billion;
|
•
|
average deposits of $1.3 trillion, up $10.4 billion;
|
•
|
our credit results remained strong with a net charge-off rate of 0.29%, flat compared with a year ago;
|
•
|
nonaccrual loans of $5.3 billion, down $1.2 billion, or 18%;
|
•
|
$30.2 billion in capital returned to our shareholders through common stock dividends and net share repurchases, up 17% from $25.8 billion a year ago; and
|
•
|
return on assets (ROA) of 1.02% and return on equity (ROE) of 10.23%, down from 1.19% and 11.53%, respectively.
|
|
Wells Fargo & Company
|
31
|
(in millions, except per share amounts)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
|
%
Change
2019/
2018
|
|
|
Five-year
compound
growth
rate
|
|
|
Income statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
$
|
47,231
|
|
|
49,995
|
|
|
49,557
|
|
|
47,754
|
|
|
45,301
|
|
|
43,527
|
|
|
(6
|
)%
|
|
2
|
|
Noninterest income
|
37,832
|
|
|
36,413
|
|
|
38,832
|
|
|
40,513
|
|
|
40,756
|
|
|
40,820
|
|
|
4
|
|
|
(2
|
)
|
|
Revenue
|
85,063
|
|
|
86,408
|
|
|
88,389
|
|
|
88,267
|
|
|
86,057
|
|
|
84,347
|
|
|
(2
|
)
|
|
—
|
|
|
Provision for credit losses
|
2,687
|
|
|
1,744
|
|
|
2,528
|
|
|
3,770
|
|
|
2,442
|
|
|
1,395
|
|
|
54
|
|
|
14
|
|
|
Noninterest expense
|
58,178
|
|
|
56,126
|
|
|
58,484
|
|
|
52,377
|
|
|
49,974
|
|
|
49,037
|
|
|
4
|
|
|
3
|
|
|
Net income before noncontrolling interests
|
20,041
|
|
|
22,876
|
|
|
22,460
|
|
|
22,045
|
|
|
23,276
|
|
|
23,608
|
|
|
(12
|
)
|
|
(3
|
)
|
|
Less: Net income from noncontrolling interests
|
492
|
|
|
483
|
|
|
277
|
|
|
107
|
|
|
382
|
|
|
551
|
|
|
2
|
|
|
(2
|
)
|
|
Wells Fargo net income
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
|
21,938
|
|
|
22,894
|
|
|
23,057
|
|
|
(13
|
)
|
|
(3
|
)
|
|
Earnings per common share
|
4.08
|
|
|
4.31
|
|
|
4.14
|
|
|
4.03
|
|
|
4.18
|
|
|
4.17
|
|
|
(5
|
)
|
|
—
|
|
|
Diluted earnings per common share
|
4.05
|
|
|
4.28
|
|
|
4.10
|
|
|
3.99
|
|
|
4.12
|
|
|
4.10
|
|
|
(5
|
)
|
|
—
|
|
|
Dividends declared per common share
|
1.920
|
|
|
1.640
|
|
|
1.540
|
|
|
1.515
|
|
|
1.475
|
|
|
1.350
|
|
|
17
|
|
|
7
|
|
|
Balance sheet (at year end)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds sold and securities purchased under resale agreements
|
$
|
102,140
|
|
|
80,207
|
|
|
80,025
|
|
|
65,725
|
|
|
49,721
|
|
|
39,210
|
|
|
27
|
%
|
|
21
|
|
Debt securities
|
497,125
|
|
|
484,689
|
|
|
473,366
|
|
|
459,038
|
|
|
394,744
|
|
|
350,661
|
|
|
3
|
|
|
7
|
|
|
Loans
|
962,265
|
|
|
953,110
|
|
|
956,770
|
|
|
967,604
|
|
|
916,559
|
|
|
862,551
|
|
|
1
|
|
|
2
|
|
|
Allowance for loan losses
|
9,551
|
|
|
9,775
|
|
|
11,004
|
|
|
11,419
|
|
|
11,545
|
|
|
12,319
|
|
|
(2
|
)
|
|
(5
|
)
|
|
Goodwill
|
26,390
|
|
|
26,418
|
|
|
26,587
|
|
|
26,693
|
|
|
25,529
|
|
|
25,705
|
|
|
—
|
|
|
1
|
|
|
Equity securities
|
68,241
|
|
|
55,148
|
|
|
62,497
|
|
|
49,110
|
|
|
40,266
|
|
|
44,005
|
|
|
24
|
|
|
9
|
|
|
Assets
|
1,927,555
|
|
|
1,895,883
|
|
|
1,951,757
|
|
|
1,930,115
|
|
|
1,787,632
|
|
|
1,687,155
|
|
|
2
|
|
|
3
|
|
|
Deposits
|
1,322,626
|
|
|
1,286,170
|
|
|
1,335,991
|
|
|
1,306,079
|
|
|
1,223,312
|
|
|
1,168,310
|
|
|
3
|
|
|
3
|
|
|
Long-term debt
|
228,191
|
|
|
229,044
|
|
|
225,020
|
|
|
255,077
|
|
|
199,536
|
|
|
183,943
|
|
|
—
|
|
|
4
|
|
|
Wells Fargo stockholders’ equity
|
187,146
|
|
|
196,166
|
|
|
206,936
|
|
|
199,581
|
|
|
192,998
|
|
|
184,394
|
|
|
(5
|
)
|
|
—
|
|
|
Noncontrolling interests
|
838
|
|
|
900
|
|
|
1,143
|
|
|
916
|
|
|
893
|
|
|
868
|
|
|
(7
|
)
|
|
(1
|
)
|
|
Total equity
|
187,984
|
|
|
197,066
|
|
|
208,079
|
|
|
200,497
|
|
|
193,891
|
|
|
185,262
|
|
|
(5
|
)
|
|
—
|
|
32
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
|||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Profitability ratios
|
|
|
|
|
|
||||
Wells Fargo net income to average assets (ROA)
|
1.02
|
%
|
|
1.19
|
|
|
1.15
|
|
|
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)
|
10.23
|
|
|
11.53
|
|
|
11.35
|
|
|
Return on average tangible common equity (ROTCE) (1)
|
12.20
|
|
|
13.73
|
|
|
13.55
|
|
|
Efficiency ratio (2)
|
68.4
|
|
|
65.0
|
|
|
66.2
|
|
|
Capital ratios (3)
|
|
|
|
|
|
||||
At year end:
|
|
|
|
|
|
||||
Wells Fargo common stockholders’ equity to assets
|
8.65
|
|
|
9.20
|
|
|
9.38
|
|
|
Total equity to assets
|
9.75
|
|
|
10.39
|
|
|
10.66
|
|
|
Risk-based capital (4):
|
|
|
|
|
|
||||
Common Equity Tier 1
|
11.14
|
|
|
11.74
|
|
|
12.28
|
|
|
Tier 1 capital
|
12.76
|
|
|
13.46
|
|
|
14.14
|
|
|
Total capital
|
15.31
|
|
|
16.60
|
|
|
17.46
|
|
|
Tier 1 leverage
|
8.31
|
|
|
9.07
|
|
|
9.35
|
|
|
Average balances:
|
|
|
|
|
|
||||
Average Wells Fargo common stockholders’ equity to average assets
|
9.16
|
|
|
9.50
|
|
|
9.37
|
|
|
Average total equity to average assets
|
10.33
|
|
|
10.77
|
|
|
10.64
|
|
|
Per common share data
|
|
|
|
|
|
||||
Dividend payout (5)
|
47.4
|
|
|
38.3
|
|
|
37.6
|
|
|
Book value (6)
|
$
|
40.31
|
|
|
38.06
|
|
|
37.44
|
|
(1)
|
Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, goodwill, certain identifiable intangible assets (other than mortgage servicing rights) and goodwill and other intangibles on nonmarketable equity securities, net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company’s use of equity. For additional information, including a corresponding reconciliation to generally accepted accounting principles (GAAP) financial measures, see the “Capital Management – Tangible Common Equity” section in this Report.
|
(2)
|
The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
|
(3)
|
See the “Capital Management” section and Note 29 (Regulatory and Agency Capital Requirements) to Financial Statements in this Report for additional information.
|
(4)
|
The risk-based capital ratios were calculated under the lower of the Standardized or Advanced Approach determined pursuant to Basel III. Beginning January 1, 2018, the requirements for calculating common equity tier 1 and tier 1 capital, along with risk-weighted assets, became fully phased-in. Accordingly, the information presented reflects fully phased-in common equity tier 1 capital, tier 1 capital and risk-weighted assets for the years ended December 31, 2019 and 2018, but reflects all other ratios still in accordance with Transition Requirements. See the “Capital Management” section and Note 29 (Regulatory and Agency Capital Requirements) to Financial Statements in this Report for additional information.
|
(5)
|
Dividend payout ratio is dividends declared per common share as a percentage of diluted earnings per common share.
|
(6)
|
Book value per common share is common stockholders’ equity divided by common shares outstanding.
|
|
Wells Fargo & Company
|
33
|
Earnings Performance
|
|
Wells Fargo & Company
|
34
|
|
Year ended December 31,
|
|
||||||||||||||||||
(in millions)
|
2019
|
|
|
% of revenue
|
|
|
2018
|
|
|
% of revenue
|
|
|
2017
|
|
|
% of revenue
|
|
|||
Interest income (on a taxable-equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Debt securities
|
$
|
15,456
|
|
|
18
|
%
|
|
$
|
14,947
|
|
|
17
|
%
|
|
$
|
14,084
|
|
|
16
|
%
|
Mortgage loans held for sale (MLHFS)
|
813
|
|
|
1
|
|
|
777
|
|
|
1
|
|
|
786
|
|
|
1
|
|
|||
Loans held for sale (LHFS)
|
79
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|||
Loans
|
44,253
|
|
|
52
|
|
|
44,086
|
|
|
51
|
|
|
41,551
|
|
|
47
|
|
|||
Equity securities
|
966
|
|
|
1
|
|
|
999
|
|
|
1
|
|
|
821
|
|
|
1
|
|
|||
Other interest income
|
5,129
|
|
|
7
|
|
|
4,359
|
|
|
6
|
|
|
2,941
|
|
|
3
|
|
|||
Total interest income (on a taxable-equivalent basis)
|
66,696
|
|
|
79
|
|
|
65,308
|
|
|
76
|
|
|
60,233
|
|
|
68
|
|
|||
Interest expense (on a taxable-equivalent basis)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
8,635
|
|
|
10
|
|
|
5,622
|
|
|
7
|
|
|
3,013
|
|
|
3
|
|
|||
Short-term borrowings
|
2,317
|
|
|
3
|
|
|
1,719
|
|
|
2
|
|
|
761
|
|
|
1
|
|
|||
Long-term debt
|
7,350
|
|
|
9
|
|
|
6,703
|
|
|
8
|
|
|
5,157
|
|
|
6
|
|
|||
Other interest expense
|
551
|
|
|
—
|
|
|
610
|
|
|
—
|
|
|
424
|
|
|
1
|
|
|||
Total interest expense (on a taxable-equivalent basis)
|
18,853
|
|
|
22
|
|
|
14,654
|
|
|
17
|
|
|
9,355
|
|
|
11
|
|
|||
Net interest income (on a taxable-equivalent basis)
|
47,843
|
|
|
57
|
|
|
50,654
|
|
|
59
|
|
|
50,878
|
|
|
57
|
|
|||
Taxable-equivalent adjustment
|
(612
|
)
|
|
(1
|
)
|
|
(659
|
)
|
|
(1
|
)
|
|
(1,321
|
)
|
|
(1
|
)
|
|||
Net interest income (A)
|
47,231
|
|
|
56
|
|
|
49,995
|
|
|
58
|
|
|
49,557
|
|
|
56
|
|
|||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Service charges on deposit accounts
|
4,798
|
|
|
6
|
|
|
4,716
|
|
|
5
|
|
|
5,111
|
|
|
6
|
|
|||
Trust and investment fees (1)
|
14,072
|
|
|
17
|
|
|
14,509
|
|
|
17
|
|
|
14,495
|
|
|
16
|
|
|||
Card fees
|
4,016
|
|
|
5
|
|
|
3,907
|
|
|
5
|
|
|
3,960
|
|
|
4
|
|
|||
Other fees (1)
|
3,084
|
|
|
4
|
|
|
3,384
|
|
|
4
|
|
|
3,557
|
|
|
4
|
|
|||
Mortgage banking (1)
|
2,715
|
|
|
3
|
|
|
3,017
|
|
|
3
|
|
|
4,350
|
|
|
5
|
|
|||
Insurance
|
378
|
|
|
—
|
|
|
429
|
|
|
—
|
|
|
1,049
|
|
|
1
|
|
|||
Net gains from trading activities
|
993
|
|
|
1
|
|
|
602
|
|
|
1
|
|
|
542
|
|
|
1
|
|
|||
Net gains on debt securities
|
140
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
479
|
|
|
1
|
|
|||
Net gains from equity securities
|
2,843
|
|
|
3
|
|
|
1,515
|
|
|
2
|
|
|
1,779
|
|
|
2
|
|
|||
Lease income
|
1,612
|
|
|
2
|
|
|
1,753
|
|
|
2
|
|
|
1,907
|
|
|
2
|
|
|||
Other (1)
|
3,181
|
|
|
3
|
|
|
2,473
|
|
|
3
|
|
|
1,603
|
|
|
2
|
|
|||
Total noninterest income (B)
|
37,832
|
|
|
44
|
|
|
36,413
|
|
|
42
|
|
|
38,832
|
|
|
44
|
|
|||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries
|
18,382
|
|
|
22
|
|
|
17,834
|
|
|
21
|
|
|
17,363
|
|
|
20
|
|
|||
Commission and incentive compensation
|
10,828
|
|
|
13
|
|
|
10,264
|
|
|
12
|
|
|
10,442
|
|
|
12
|
|
|||
Employee benefits
|
5,874
|
|
|
7
|
|
|
4,926
|
|
|
6
|
|
|
5,566
|
|
|
6
|
|
|||
Technology and equipment
|
2,763
|
|
|
3
|
|
|
2,444
|
|
|
3
|
|
|
2,237
|
|
|
3
|
|
|||
Net occupancy
|
2,945
|
|
|
3
|
|
|
2,888
|
|
|
3
|
|
|
2,849
|
|
|
3
|
|
|||
Core deposit and other intangibles
|
108
|
|
|
—
|
|
|
1,058
|
|
|
1
|
|
|
1,152
|
|
|
1
|
|
|||
FDIC and other deposit assessments
|
526
|
|
|
1
|
|
|
1,110
|
|
|
1
|
|
|
1,287
|
|
|
1
|
|
|||
Operating losses
|
4,321
|
|
|
5
|
|
|
3,124
|
|
|
4
|
|
|
5,492
|
|
|
6
|
|
|||
Outside professional services
|
3,198
|
|
|
4
|
|
|
3,306
|
|
|
4
|
|
|
3,813
|
|
|
4
|
|
|||
Other (2)
|
9,233
|
|
|
10
|
|
|
9,172
|
|
|
10
|
|
|
8,283
|
|
|
10
|
|
|||
Total noninterest expense
|
58,178
|
|
|
68
|
|
|
56,126
|
|
|
65
|
|
|
58,484
|
|
|
66
|
|
|||
Revenue (A) + (B)
|
$
|
85,063
|
|
|
|
|
$
|
86,408
|
|
|
|
|
$
|
88,389
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See Table 7 – Noninterest Income in this Report for additional detail.
|
(2)
|
See Table 8 – Noninterest Expense in this Report for additional detail.
|
|
Wells Fargo & Company
|
35
|
36
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
|
Change from prior year
|
|
|
% Change from prior year
|
|
||||||||||||
|
2019
|
|
|
2018
|
|
|
|
|||||||||||||
(in millions)
|
Average balance
|
|
|
% of earning assets
|
|
|
Average balance
|
|
|
% of earning assets
|
|
|
|
|||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning deposits with banks
|
$
|
135,741
|
|
|
8
|
%
|
|
$
|
156,366
|
|
|
9
|
%
|
|
$
|
(20,625
|
)
|
|
(13
|
)%
|
Federal funds sold and securities purchased under resale agreements
|
99,286
|
|
|
6
|
|
|
78,547
|
|
|
5
|
|
|
20,739
|
|
|
26
|
|
|||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities
|
93,655
|
|
|
5
|
|
|
83,526
|
|
|
5
|
|
|
10,129
|
|
|
12
|
|
|||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
15,293
|
|
|
1
|
|
|
6,618
|
|
|
—
|
|
|
8,675
|
|
|
131
|
|
|||
Securities of U.S. states and political subdivisions
|
44,203
|
|
|
3
|
|
|
47,884
|
|
|
3
|
|
|
(3,681
|
)
|
|
(8
|
)
|
|||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Federal agencies
|
154,160
|
|
|
9
|
|
|
156,052
|
|
|
9
|
|
|
(1,892
|
)
|
|
(1
|
)
|
|||
Residential and commercial
|
5,363
|
|
|
—
|
|
|
7,769
|
|
|
—
|
|
|
(2,406
|
)
|
|
(31
|
)
|
|||
Total mortgage-backed securities
|
159,523
|
|
|
9
|
|
|
163,821
|
|
|
9
|
|
|
(4,298
|
)
|
|
(3
|
)
|
|||
Other debt securities
|
43,675
|
|
|
2
|
|
|
46,875
|
|
|
3
|
|
|
(3,200
|
)
|
|
(7
|
)
|
|||
Total available-for-sale debt securities
|
262,694
|
|
|
15
|
|
|
265,198
|
|
|
15
|
|
|
(2,504
|
)
|
|
(1
|
)
|
|||
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities of U.S. Treasury and federal agencies
|
44,850
|
|
|
3
|
|
|
44,735
|
|
|
3
|
|
|
115
|
|
|
—
|
|
|||
Securities of U.S. states and political subdivisions
|
8,644
|
|
|
1
|
|
|
6,253
|
|
|
—
|
|
|
2,391
|
|
|
38
|
|
|||
Federal agency and mortgage-backed securities
|
95,559
|
|
|
5
|
|
|
94,216
|
|
|
5
|
|
|
1,343
|
|
|
1
|
|
|||
Other debt securities
|
52
|
|
|
—
|
|
|
361
|
|
|
—
|
|
|
(309
|
)
|
|
(86
|
)
|
|||
Total held-to-maturity debt securities
|
149,105
|
|
|
9
|
|
|
145,565
|
|
|
8
|
|
|
3,540
|
|
|
2
|
|
|||
Total debt securities
|
505,454
|
|
|
29
|
|
|
494,289
|
|
|
28
|
|
|
11,165
|
|
|
2
|
|
|||
Mortgage loans held for sale (1)
|
19,808
|
|
|
1
|
|
|
18,394
|
|
|
1
|
|
|
1,414
|
|
|
8
|
|
|||
Loans held for sale (1)
|
1,708
|
|
|
—
|
|
|
2,526
|
|
|
—
|
|
|
(818
|
)
|
|
(32
|
)
|
|||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial – U.S.
|
284,888
|
|
|
16
|
|
|
275,656
|
|
|
16
|
|
|
9,232
|
|
|
3
|
|
|||
Commercial and industrial – Non-U.S.
|
64,274
|
|
|
4
|
|
|
60,718
|
|
|
4
|
|
|
3,556
|
|
|
6
|
|
|||
Real estate mortgage
|
121,813
|
|
|
7
|
|
|
122,947
|
|
|
7
|
|
|
(1,134
|
)
|
|
(1
|
)
|
|||
Real estate construction
|
21,183
|
|
|
1
|
|
|
23,609
|
|
|
1
|
|
|
(2,426
|
)
|
|
(10
|
)
|
|||
Lease financing
|
19,302
|
|
|
1
|
|
|
19,392
|
|
|
1
|
|
|
(90
|
)
|
|
—
|
|
|||
Total commercial loans
|
511,460
|
|
|
29
|
|
|
502,322
|
|
|
29
|
|
|
9,138
|
|
|
2
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage
|
288,059
|
|
|
16
|
|
|
284,178
|
|
|
16
|
|
|
3,881
|
|
|
1
|
|
|||
Real estate 1-4 family junior lien mortgage
|
31,989
|
|
|
2
|
|
|
36,687
|
|
|
2
|
|
|
(4,698
|
)
|
|
(13
|
)
|
|||
Credit card
|
38,865
|
|
|
2
|
|
|
36,780
|
|
|
2
|
|
|
2,085
|
|
|
6
|
|
|||
Automobile
|
45,901
|
|
|
3
|
|
|
48,115
|
|
|
3
|
|
|
(2,214
|
)
|
|
(5
|
)
|
|||
Other revolving credit and installment
|
34,682
|
|
|
2
|
|
|
37,115
|
|
|
2
|
|
|
(2,433
|
)
|
|
(7
|
)
|
|||
Total consumer loans
|
439,496
|
|
|
25
|
|
|
442,875
|
|
|
25
|
|
|
(3,379
|
)
|
|
(1
|
)
|
|||
Total loans (1)
|
950,956
|
|
|
54
|
|
|
945,197
|
|
|
54
|
|
|
5,759
|
|
|
1
|
|
|||
Equity securities
|
35,930
|
|
|
2
|
|
|
38,092
|
|
|
2
|
|
|
(2,162
|
)
|
|
(6
|
)
|
|||
Other
|
5,579
|
|
|
—
|
|
|
5,071
|
|
|
1
|
|
|
508
|
|
|
10
|
|
|||
Total earning assets
|
$
|
1,754,462
|
|
|
100
|
%
|
|
$
|
1,738,482
|
|
|
100
|
%
|
|
$
|
15,980
|
|
|
1
|
%
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing checking
|
$
|
59,121
|
|
|
4
|
%
|
|
$
|
63,243
|
|
|
4
|
%
|
|
$
|
(4,122
|
)
|
|
(7
|
)%
|
Market rate and other savings
|
705,957
|
|
|
40
|
|
|
684,882
|
|
|
39
|
|
|
21,075
|
|
|
3
|
|
|||
Savings certificates
|
30,266
|
|
|
2
|
|
|
20,653
|
|
|
1
|
|
|
9,613
|
|
|
47
|
|
|||
Other time deposits
|
93,368
|
|
|
5
|
|
|
84,822
|
|
|
5
|
|
|
8,546
|
|
|
10
|
|
|||
Deposits in non-U.S. offices
|
53,438
|
|
|
3
|
|
|
63,945
|
|
|
4
|
|
|
(10,507
|
)
|
|
(16
|
)
|
|||
Total interest-bearing deposits
|
942,150
|
|
|
54
|
|
|
917,545
|
|
|
53
|
|
|
24,605
|
|
|
3
|
|
|||
Short-term borrowings
|
115,337
|
|
|
7
|
|
|
104,267
|
|
|
6
|
|
|
11,070
|
|
|
11
|
|
|||
Long-term debt
|
232,491
|
|
|
13
|
|
|
224,268
|
|
|
13
|
|
|
8,223
|
|
|
4
|
|
|||
Other liabilities
|
25,771
|
|
|
1
|
|
|
27,648
|
|
|
1
|
|
|
(1,877
|
)
|
|
(7
|
)
|
|||
Total interest-bearing liabilities
|
1,315,749
|
|
|
75
|
|
|
1,273,728
|
|
|
73
|
|
|
42,021
|
|
|
3
|
|
|||
Portion of noninterest-bearing funding sources
|
438,713
|
|
|
25
|
|
|
464,754
|
|
|
27
|
|
|
(26,041
|
)
|
|
(6
|
)
|
|||
Total funding sources
|
$
|
1,754,462
|
|
|
100
|
%
|
|
$
|
1,738,482
|
|
|
100
|
%
|
|
$
|
15,980
|
|
|
1
|
%
|
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Cash and due from banks
|
$
|
19,558
|
|
|
|
|
18,777
|
|
|
|
|
$
|
781
|
|
|
4
|
%
|
|||
Goodwill
|
26,409
|
|
|
|
|
26,453
|
|
|
|
|
(44
|
)
|
|
—
|
|
|||||
Other
|
113,015
|
|
|
|
|
105,180
|
|
|
|
|
7,835
|
|
|
7
|
|
|||||
Total noninterest-earning assets
|
$
|
158,982
|
|
|
|
|
150,410
|
|
|
|
|
$
|
8,572
|
|
|
6
|
%
|
|||
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits
|
$
|
344,111
|
|
|
|
|
358,312
|
|
|
|
|
$
|
(14,201
|
)
|
|
(4
|
)%
|
|||
Other liabilities
|
55,963
|
|
|
|
|
53,496
|
|
|
|
|
2,467
|
|
|
5
|
|
|||||
Total equity
|
197,621
|
|
|
|
|
203,356
|
|
|
|
|
(5,735
|
)
|
|
(3
|
)
|
|||||
Noninterest-bearing funding sources used to fund earning assets
|
(438,713
|
)
|
|
|
|
(464,754
|
)
|
|
|
|
26,041
|
|
|
(6
|
)
|
|||||
Net noninterest-bearing funding sources
|
$
|
158,982
|
|
|
|
|
150,410
|
|
|
|
|
$
|
8,572
|
|
|
6
|
%
|
|||
Total assets
|
$
|
1,913,444
|
|
|
|
|
1,888,892
|
|
|
|
|
$
|
24,552
|
|
|
1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Nonaccrual loans are included in their respective loan categories.
|
|
Wells Fargo & Company
|
37
|
|
|
|
|
|
2019
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
2017
|
|
||||||||||
(in millions)
|
Average
balance |
|
|
Yields/
rates |
|
|
Interest
income/ expense |
|
|
Average
balance |
|
|
Yields/
rates |
|
|
Interest
income/ expense |
|
|
Average
balance |
|
|
Yields/
rates |
|
|
Interest
income/ expense |
|
||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-earning deposits with banks
|
$
|
135,741
|
|
|
2.12
|
%
|
|
$
|
2,875
|
|
|
156,366
|
|
|
1.82
|
%
|
|
$
|
2,854
|
|
|
201,864
|
|
|
1.07
|
%
|
|
$
|
2,162
|
|
Federal funds sold and securities purchased under resale agreements
|
99,286
|
|
|
2.18
|
|
|
2,164
|
|
|
78,547
|
|
|
1.82
|
|
|
1,431
|
|
|
74,697
|
|
|
0.98
|
|
|
735
|
|
||||
Debt securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Trading debt securities
|
93,655
|
|
|
3.36
|
|
|
3,149
|
|
|
83,526
|
|
|
3.42
|
|
|
2,856
|
|
|
74,475
|
|
|
3.16
|
|
|
2,356
|
|
||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Securities of U.S. Treasury and federal agencies
|
15,293
|
|
|
2.07
|
|
|
316
|
|
|
6,618
|
|
|
1.70
|
|
|
112
|
|
|
15,966
|
|
|
1.49
|
|
|
239
|
|
||||
Securities of U.S. states and political subdivisions
|
44,203
|
|
|
3.87
|
|
|
1,709
|
|
|
47,884
|
|
|
3.77
|
|
|
1,806
|
|
|
52,658
|
|
|
3.95
|
|
|
2,082
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Federal agencies
|
154,160
|
|
|
2.85
|
|
|
4,397
|
|
|
156,052
|
|
|
2.79
|
|
|
4,348
|
|
|
145,310
|
|
|
2.60
|
|
|
3,782
|
|
||||
Residential and commercial
|
5,363
|
|
|
4.19
|
|
|
225
|
|
|
7,769
|
|
|
4.62
|
|
|
358
|
|
|
11,839
|
|
|
5.33
|
|
|
631
|
|
||||
Total mortgage-backed securities
|
159,523
|
|
|
2.90
|
|
|
4,622
|
|
|
163,821
|
|
|
2.87
|
|
|
4,706
|
|
|
157,149
|
|
|
2.81
|
|
|
4,413
|
|
||||
Other debt securities
|
43,675
|
|
|
4.23
|
|
|
1,846
|
|
|
46,875
|
|
|
4.22
|
|
|
1,980
|
|
|
48,714
|
|
|
3.68
|
|
|
1,794
|
|
||||
Total available-for-sale debt securities
|
262,694
|
|
|
3.23
|
|
|
8,493
|
|
|
265,198
|
|
|
3.24
|
|
|
8,604
|
|
|
274,487
|
|
|
3.11
|
|
|
8,528
|
|
||||
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Securities of U.S. Treasury and federal agencies
|
44,850
|
|
|
2.19
|
|
|
982
|
|
|
44,735
|
|
|
2.19
|
|
|
980
|
|
|
44,705
|
|
|
2.19
|
|
|
979
|
|
||||
Securities of U.S. states and political subdivisions
|
8,644
|
|
|
3.97
|
|
|
343
|
|
|
6,253
|
|
|
4.34
|
|
|
271
|
|
|
6,268
|
|
|
5.32
|
|
|
334
|
|
||||
Federal agency and other mortgage-backed securities
|
95,559
|
|
|
2.60
|
|
|
2,487
|
|
|
94,216
|
|
|
2.36
|
|
|
2,221
|
|
|
78,330
|
|
|
2.34
|
|
|
1,832
|
|
||||
Other debt securities
|
52
|
|
|
3.71
|
|
|
2
|
|
|
361
|
|
|
4.00
|
|
|
15
|
|
|
2,194
|
|
|
2.50
|
|
|
55
|
|
||||
Total held-to-maturity debt securities
|
149,105
|
|
|
2.56
|
|
|
3,814
|
|
|
145,565
|
|
|
2.40
|
|
|
3,487
|
|
|
131,497
|
|
|
2.43
|
|
|
3,200
|
|
||||
Total debt securities
|
505,454
|
|
|
3.06
|
|
|
15,456
|
|
|
494,289
|
|
|
3.02
|
|
|
14,947
|
|
|
480,459
|
|
|
2.93
|
|
|
14,084
|
|
||||
Mortgage loans held for sale (3)
|
19,808
|
|
|
4.10
|
|
|
813
|
|
|
18,394
|
|
|
4.22
|
|
|
777
|
|
|
20,780
|
|
|
3.78
|
|
|
786
|
|
||||
Loans held for sale (3)
|
1,708
|
|
|
4.60
|
|
|
79
|
|
|
2,526
|
|
|
5.56
|
|
|
140
|
|
|
1,487
|
|
|
3.40
|
|
|
50
|
|
||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Commercial and industrial – U.S.
|
284,888
|
|
|
4.25
|
|
|
12,107
|
|
|
275,656
|
|
|
4.16
|
|
|
11,465
|
|
|
272,034
|
|
|
3.75
|
|
|
10,196
|
|
||||
Commercial and industrial – Non-U.S.
|
64,274
|
|
|
3.71
|
|
|
2,385
|
|
|
60,718
|
|
|
3.53
|
|
|
2,143
|
|
|
57,198
|
|
|
2.86
|
|
|
1,639
|
|
||||
Real estate mortgage
|
121,813
|
|
|
4.40
|
|
|
5,356
|
|
|
122,947
|
|
|
4.29
|
|
|
5,279
|
|
|
129,990
|
|
|
3.74
|
|
|
4,859
|
|
||||
Real estate construction
|
21,183
|
|
|
5.17
|
|
|
1,095
|
|
|
23,609
|
|
|
4.94
|
|
|
1,167
|
|
|
24,813
|
|
|
4.10
|
|
|
1,017
|
|
||||
Lease financing
|
19,302
|
|
|
4.52
|
|
|
873
|
|
|
19,392
|
|
|
4.74
|
|
|
919
|
|
|
19,128
|
|
|
3.74
|
|
|
715
|
|
||||
Total commercial loans
|
511,460
|
|
|
4.27
|
|
|
21,816
|
|
|
502,322
|
|
|
4.18
|
|
|
20,973
|
|
|
503,163
|
|
|
3.66
|
|
|
18,426
|
|
||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Real estate 1-4 family first mortgage
|
288,059
|
|
|
3.81
|
|
|
10,974
|
|
|
284,178
|
|
|
4.04
|
|
|
11,481
|
|
|
277,751
|
|
|
4.03
|
|
|
11,206
|
|
||||
Real estate 1-4 family junior lien mortgage
|
31,989
|
|
|
5.63
|
|
|
1,800
|
|
|
36,687
|
|
|
5.38
|
|
|
1,975
|
|
|
42,780
|
|
|
4.82
|
|
|
2,062
|
|
||||
Credit card
|
38,865
|
|
|
12.58
|
|
|
4,889
|
|
|
36,780
|
|
|
12.72
|
|
|
4,678
|
|
|
35,600
|
|
|
12.23
|
|
|
4,355
|
|
||||
Automobile
|
45,901
|
|
|
5.15
|
|
|
2,362
|
|
|
48,115
|
|
|
5.18
|
|
|
2,491
|
|
|
57,900
|
|
|
5.34
|
|
|
3,094
|
|
||||
Other revolving credit and installment
|
34,682
|
|
|
6.95
|
|
|
2,412
|
|
|
37,115
|
|
|
6.70
|
|
|
2,488
|
|
|
38,935
|
|
|
6.18
|
|
|
2,408
|
|
||||
Total consumer loans
|
439,496
|
|
|
5.11
|
|
|
22,437
|
|
|
442,875
|
|
|
5.22
|
|
|
23,113
|
|
|
452,966
|
|
|
5.11
|
|
|
23,125
|
|
||||
Total loans (3)
|
950,956
|
|
|
4.65
|
|
|
44,253
|
|
|
945,197
|
|
|
4.66
|
|
|
44,086
|
|
|
956,129
|
|
|
4.35
|
|
|
41,551
|
|
||||
Equity securities
|
35,930
|
|
|
2.69
|
|
|
966
|
|
|
38,092
|
|
|
2.62
|
|
|
999
|
|
|
36,105
|
|
|
2.27
|
|
|
821
|
|
||||
Other
|
5,579
|
|
|
1.62
|
|
|
90
|
|
|
5,071
|
|
|
1.46
|
|
|
74
|
|
|
5,069
|
|
|
0.85
|
|
|
44
|
|
||||
Total earning assets
|
$
|
1,754,462
|
|
|
3.80
|
%
|
|
$
|
66,696
|
|
|
1,738,482
|
|
|
3.76
|
%
|
|
$
|
65,308
|
|
|
1,776,590
|
|
|
3.40
|
%
|
|
$
|
60,233
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest-bearing checking
|
$
|
59,121
|
|
|
1.33
|
%
|
|
$
|
789
|
|
|
63,243
|
|
|
0.96
|
%
|
|
$
|
606
|
|
|
49,474
|
|
|
0.49
|
%
|
|
$
|
242
|
|
Market rate and other savings
|
705,957
|
|
|
0.59
|
|
|
4,132
|
|
|
684,882
|
|
|
0.31
|
|
|
2,157
|
|
|
682,053
|
|
|
0.14
|
|
|
983
|
|
||||
Savings certificates
|
30,266
|
|
|
1.59
|
|
|
481
|
|
|
20,653
|
|
|
0.57
|
|
|
118
|
|
|
22,190
|
|
|
0.30
|
|
|
67
|
|
||||
Other time deposits
|
93,368
|
|
|
2.46
|
|
|
2,295
|
|
|
84,822
|
|
|
2.25
|
|
|
1,906
|
|
|
61,625
|
|
|
1.43
|
|
|
880
|
|
||||
Deposits in non-U.S. offices
|
53,438
|
|
|
1.75
|
|
|
938
|
|
|
63,945
|
|
|
1.30
|
|
|
835
|
|
|
123,816
|
|
|
0.68
|
|
|
841
|
|
||||
Total interest-bearing deposits
|
942,150
|
|
|
0.92
|
|
|
8,635
|
|
|
917,545
|
|
|
0.61
|
|
|
5,622
|
|
|
939,158
|
|
|
0.32
|
|
|
3,013
|
|
||||
Short-term borrowings
|
115,337
|
|
|
2.01
|
|
|
2,317
|
|
|
104,267
|
|
|
1.65
|
|
|
1,719
|
|
|
98,922
|
|
|
0.77
|
|
|
761
|
|
||||
Long-term debt
|
232,491
|
|
|
3.16
|
|
|
7,350
|
|
|
224,268
|
|
|
2.99
|
|
|
6,703
|
|
|
246,195
|
|
|
2.09
|
|
|
5,157
|
|
||||
Other liabilities
|
25,771
|
|
|
2.13
|
|
|
551
|
|
|
27,648
|
|
|
2.21
|
|
|
610
|
|
|
21,872
|
|
|
1.94
|
|
|
424
|
|
||||
Total interest-bearing liabilities
|
1,315,749
|
|
|
1.43
|
|
|
18,853
|
|
|
1,273,728
|
|
|
1.15
|
|
|
14,654
|
|
|
1,306,147
|
|
|
0.72
|
|
|
9,355
|
|
||||
Portion of noninterest-bearing funding sources
|
438,713
|
|
|
—
|
|
|
—
|
|
|
464,754
|
|
|
—
|
|
|
—
|
|
|
470,443
|
|
|
—
|
|
|
—
|
|
||||
Total funding sources
|
$
|
1,754,462
|
|
|
1.07
|
|
|
18,853
|
|
|
1,738,482
|
|
|
0.85
|
|
|
14,654
|
|
|
1,776,590
|
|
|
0.53
|
|
|
9,355
|
|
|||
Net interest margin and net interest income on a taxable-equivalent basis (4)
|
|
|
2.73
|
%
|
|
$
|
47,843
|
|
|
|
|
2.91
|
%
|
|
$
|
50,654
|
|
|
|
|
2.87
|
%
|
|
$
|
50,878
|
|
||||
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash and due from banks
|
$
|
19,558
|
|
|
|
|
|
|
18,777
|
|
|
|
|
|
|
18,622
|
|
|
|
|
|
|||||||||
Goodwill
|
26,409
|
|
|
|
|
|
|
26,453
|
|
|
|
|
|
|
26,629
|
|
|
|
|
|
||||||||||
Other
|
113,015
|
|
|
|
|
|
|
105,180
|
|
|
|
|
|
|
111,164
|
|
|
|
|
|
||||||||||
Total noninterest-earning assets
|
$
|
158,982
|
|
|
|
|
|
|
150,410
|
|
|
|
|
|
|
156,415
|
|
|
|
|
|
|||||||||
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Deposits
|
$
|
344,111
|
|
|
|
|
|
|
358,312
|
|
|
|
|
|
|
365,464
|
|
|
|
|
|
|||||||||
Other liabilities
|
55,963
|
|
|
|
|
|
|
53,496
|
|
|
|
|
|
|
55,740
|
|
|
|
|
|
||||||||||
Total equity
|
197,621
|
|
|
|
|
|
|
203,356
|
|
|
|
|
|
|
205,654
|
|
|
|
|
|
||||||||||
Noninterest-bearing funding sources used to fund earning assets
|
(438,713
|
)
|
|
|
|
|
|
(464,754
|
)
|
|
|
|
|
|
(470,443
|
)
|
|
|
|
|
||||||||||
Net noninterest-bearing funding sources
|
$
|
158,982
|
|
|
|
|
|
|
150,410
|
|
|
|
|
|
|
156,415
|
|
|
|
|
|
|||||||||
Total assets
|
$
|
1,913,444
|
|
|
|
|
|
|
1,888,892
|
|
|
|
|
|
|
1,933,005
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average prime rate
|
|
|
5.28
|
%
|
|
|
|
|
|
4.91
|
%
|
|
|
|
|
|
4.10
|
%
|
|
|
||||||||||
Average three-month London Interbank Offered Rate (LIBOR)
|
|
|
2.33
|
|
|
|
|
|
|
2.31
|
|
|
|
|
|
|
1.26
|
|
|
|
(1)
|
Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
|
(2)
|
Yields/rates are based on interest income/expense amounts for the period. The average balance amounts represent amortized cost for the periods presented.
|
(3)
|
Nonaccrual loans and related income are included in their respective loan categories.
|
(4)
|
Includes taxable-equivalent adjustments of $612 million, $659 million and $1.3 billion for the years ended December 31, 2019, 2018 and 2017, respectively, predominantly related to tax-exempt income on certain loans and securities.
|
38
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
||||||||||||||||
|
2019 over 2018
|
|
|
2018 over 2017
|
|
|||||||||||||
(in millions)
|
Volume
|
|
|
Rate
|
|
|
Total
|
|
|
Volume
|
|
|
Rate
|
|
|
Total
|
|
|
Increase (decrease) in interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-earning deposits with banks
|
$
|
(407
|
)
|
|
428
|
|
|
21
|
|
|
(569
|
)
|
|
1,261
|
|
|
692
|
|
Federal funds sold and securities purchased under resale agreements
|
419
|
|
|
314
|
|
|
733
|
|
|
40
|
|
|
656
|
|
|
696
|
|
|
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading debt securities
|
343
|
|
|
(50
|
)
|
|
293
|
|
|
298
|
|
|
202
|
|
|
500
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
175
|
|
|
29
|
|
|
204
|
|
|
(157
|
)
|
|
30
|
|
|
(127
|
)
|
|
Securities of U.S. states and political subdivisions
|
(143
|
)
|
|
46
|
|
|
(97
|
)
|
|
(184
|
)
|
|
(92
|
)
|
|
(276
|
)
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Federal agencies
|
(50
|
)
|
|
99
|
|
|
49
|
|
|
285
|
|
|
281
|
|
|
566
|
|
|
Residential and commercial
|
(103
|
)
|
|
(30
|
)
|
|
(133
|
)
|
|
(197
|
)
|
|
(76
|
)
|
|
(273
|
)
|
|
Total mortgage-backed securities
|
(153
|
)
|
|
69
|
|
|
(84
|
)
|
|
88
|
|
|
205
|
|
|
293
|
|
|
Other debt securities
|
(139
|
)
|
|
5
|
|
|
(134
|
)
|
|
(70
|
)
|
|
256
|
|
|
186
|
|
|
Total available-for-sale debt securities
|
(260
|
)
|
|
149
|
|
|
(111
|
)
|
|
(323
|
)
|
|
399
|
|
|
76
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
2
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Securities of U.S. states and political subdivisions
|
97
|
|
|
(25
|
)
|
|
72
|
|
|
(1
|
)
|
|
(62
|
)
|
|
(63
|
)
|
|
Federal agency mortgage-backed securities
|
33
|
|
|
233
|
|
|
266
|
|
|
373
|
|
|
16
|
|
|
389
|
|
|
Other debt securities
|
(12
|
)
|
|
(1
|
)
|
|
(13
|
)
|
|
(62
|
)
|
|
22
|
|
|
(40
|
)
|
|
Total held-to-maturity debt securities
|
120
|
|
|
207
|
|
|
327
|
|
|
311
|
|
|
(24
|
)
|
|
287
|
|
|
Mortgage loans held for sale
|
59
|
|
|
(23
|
)
|
|
36
|
|
|
(95
|
)
|
|
86
|
|
|
(9
|
)
|
|
Loans held for sale
|
(40
|
)
|
|
(21
|
)
|
|
(61
|
)
|
|
47
|
|
|
43
|
|
|
90
|
|
|
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial – U.S.
|
390
|
|
|
252
|
|
|
642
|
|
|
138
|
|
|
1,131
|
|
|
1,269
|
|
|
Commercial and industrial – Non-U.S.
|
130
|
|
|
112
|
|
|
242
|
|
|
105
|
|
|
399
|
|
|
504
|
|
|
Real estate mortgage
|
(51
|
)
|
|
128
|
|
|
77
|
|
|
(272
|
)
|
|
692
|
|
|
420
|
|
|
Real estate construction
|
(124
|
)
|
|
52
|
|
|
(72
|
)
|
|
(51
|
)
|
|
201
|
|
|
150
|
|
|
Lease financing
|
(4
|
)
|
|
(42
|
)
|
|
(46
|
)
|
|
10
|
|
|
194
|
|
|
204
|
|
|
Total commercial loans
|
341
|
|
|
502
|
|
|
843
|
|
|
(70
|
)
|
|
2,617
|
|
|
2,547
|
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate 1-4 family first mortgage
|
155
|
|
|
(662
|
)
|
|
(507
|
)
|
|
248
|
|
|
27
|
|
|
275
|
|
|
Real estate 1-4 family junior lien mortgage
|
(263
|
)
|
|
88
|
|
|
(175
|
)
|
|
(312
|
)
|
|
225
|
|
|
(87
|
)
|
|
Credit card
|
262
|
|
|
(51
|
)
|
|
211
|
|
|
146
|
|
|
177
|
|
|
323
|
|
|
Automobile
|
(115
|
)
|
|
(14
|
)
|
|
(129
|
)
|
|
(512
|
)
|
|
(91
|
)
|
|
(603
|
)
|
|
Other revolving credit and installment
|
(167
|
)
|
|
91
|
|
|
(76
|
)
|
|
(116
|
)
|
|
196
|
|
|
80
|
|
|
Total consumer loans
|
(128
|
)
|
|
(548
|
)
|
|
(676
|
)
|
|
(546
|
)
|
|
534
|
|
|
(12
|
)
|
|
Total loans
|
213
|
|
|
(46
|
)
|
|
167
|
|
|
(616
|
)
|
|
3,151
|
|
|
2,535
|
|
|
Equity securities
|
(59
|
)
|
|
26
|
|
|
(33
|
)
|
|
47
|
|
|
131
|
|
|
178
|
|
|
Other
|
7
|
|
|
9
|
|
|
16
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
Total increase in interest income
|
395
|
|
|
993
|
|
|
1,388
|
|
|
(860
|
)
|
|
5,935
|
|
|
5,075
|
|
|
Increase (decrease) in interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing checking
|
(42
|
)
|
|
225
|
|
|
183
|
|
|
82
|
|
|
282
|
|
|
364
|
|
|
Market rate and other savings
|
65
|
|
|
1,910
|
|
|
1,975
|
|
|
4
|
|
|
1,170
|
|
|
1,174
|
|
|
Savings certificates
|
75
|
|
|
288
|
|
|
363
|
|
|
(5
|
)
|
|
56
|
|
|
51
|
|
|
Other time deposits
|
202
|
|
|
187
|
|
|
389
|
|
|
407
|
|
|
619
|
|
|
1,026
|
|
|
Deposits in non-U.S. offices
|
(152
|
)
|
|
255
|
|
|
103
|
|
|
(534
|
)
|
|
528
|
|
|
(6
|
)
|
|
Total interest-bearing deposits
|
148
|
|
|
2,865
|
|
|
3,013
|
|
|
(46
|
)
|
|
2,655
|
|
|
2,609
|
|
|
Short-term borrowings
|
196
|
|
|
402
|
|
|
598
|
|
|
43
|
|
|
915
|
|
|
958
|
|
|
Long-term debt
|
254
|
|
|
393
|
|
|
647
|
|
|
(495
|
)
|
|
2,041
|
|
|
1,546
|
|
|
Other liabilities
|
(38
|
)
|
|
(21
|
)
|
|
(59
|
)
|
|
122
|
|
|
64
|
|
|
186
|
|
|
Total increase in interest expense
|
560
|
|
|
3,639
|
|
|
4,199
|
|
|
(376
|
)
|
|
5,675
|
|
|
5,299
|
|
|
Increase (decrease) in net interest income on a taxable-equivalent basis
|
$
|
(165
|
)
|
|
(2,646
|
)
|
|
(2,811
|
)
|
|
(484
|
)
|
|
260
|
|
|
(224
|
)
|
|
Wells Fargo & Company
|
39
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Service charges on deposit accounts
|
$
|
4,798
|
|
|
4,716
|
|
|
5,111
|
|
Trust and investment fees:
|
|
|
|
|
|
||||
Brokerage advisory, commissions and other fees
|
9,237
|
|
|
9,436
|
|
|
9,358
|
|
|
Trust and investment management
|
3,038
|
|
|
3,316
|
|
|
3,372
|
|
|
Investment banking
|
1,797
|
|
|
1,757
|
|
|
1,765
|
|
|
Total trust and investment fees
|
14,072
|
|
|
14,509
|
|
|
14,495
|
|
|
Card fees
|
4,016
|
|
|
3,907
|
|
|
3,960
|
|
|
Other fees:
|
|
|
|
|
|
||||
Lending related charges and fees
|
1,379
|
|
|
1,526
|
|
|
1,568
|
|
|
Cash network fees
|
452
|
|
|
481
|
|
|
506
|
|
|
Commercial real estate
brokerage commissions
|
358
|
|
|
468
|
|
|
462
|
|
|
Wire transfer and other remittance fees
|
474
|
|
|
477
|
|
|
448
|
|
|
All other fees
|
421
|
|
|
432
|
|
|
573
|
|
|
Total other fees
|
3,084
|
|
|
3,384
|
|
|
3,557
|
|
|
Mortgage banking:
|
|
|
|
|
|
||||
Servicing income, net
|
522
|
|
|
1,373
|
|
|
1,427
|
|
|
Net gains on mortgage loan
origination/sales activities
|
2,193
|
|
|
1,644
|
|
|
2,923
|
|
|
Total mortgage banking
|
2,715
|
|
|
3,017
|
|
|
4,350
|
|
|
Insurance
|
378
|
|
|
429
|
|
|
1,049
|
|
|
Net gains from trading activities
|
993
|
|
|
602
|
|
|
542
|
|
|
Net gains on debt securities
|
140
|
|
|
108
|
|
|
479
|
|
|
Net gains from equity securities
|
2,843
|
|
|
1,515
|
|
|
1,779
|
|
|
Lease income
|
1,612
|
|
|
1,753
|
|
|
1,907
|
|
|
Life insurance investment income
|
658
|
|
|
651
|
|
|
594
|
|
|
All other
|
2,523
|
|
|
1,822
|
|
|
1,009
|
|
|
Total
|
$
|
37,832
|
|
|
36,413
|
|
|
38,832
|
|
40
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
MSR valuation gain (loss)
|
$
|
(2,569
|
)
|
|
960
|
|
|
(126
|
)
|
Net derivative gains (losses) from economic hedges of residential MSRs
|
2,318
|
|
|
(1,072
|
)
|
|
413
|
|
|
Net MSR valuation gain (loss)
|
$
|
(251
|
)
|
|
(112
|
)
|
|
287
|
|
|
|
Year ended December 31,
|
|
|||||
|
|
2019
|
|
2018
|
|
2017
|
|
|
Net gains on mortgage loan origination/sales activities (in millions):
|
|
|
|
|
||||
Residential
|
(A)
|
$
|
1,518
|
|
1,174
|
|
2,140
|
|
Commercial
|
|
337
|
|
265
|
|
358
|
|
|
Residential pipeline and unsold/repurchased loan management (1)
|
|
338
|
|
205
|
|
425
|
|
|
Total
|
|
$
|
2,193
|
|
1,644
|
|
2,923
|
|
Residential real estate originations (in billions):
|
|
|
|
|
||||
Held-for-sale
|
(B)
|
$
|
135
|
|
132
|
|
160
|
|
Held-for-investment
|
|
69
|
|
45
|
|
52
|
|
|
Total
|
|
$
|
204
|
|
177
|
|
212
|
|
Production margin on residential held-for-sale mortgage originations
|
(A)/(B)
|
1.12
|
%
|
0.89
|
|
1.34
|
|
(1)
|
Primarily includes the results of Government National Mortgage Association (GNMA) loss mitigation activities, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
|
|
Wells Fargo & Company
|
41
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Salaries
|
$
|
18,382
|
|
|
17,834
|
|
|
17,363
|
|
Commission and incentive compensation
|
10,828
|
|
|
10,264
|
|
|
10,442
|
|
|
Employee benefits
|
5,874
|
|
|
4,926
|
|
|
5,566
|
|
|
Technology and equipment
|
2,763
|
|
|
2,444
|
|
|
2,237
|
|
|
Net occupancy (1)
|
2,945
|
|
|
2,888
|
|
|
2,849
|
|
|
Core deposit and other intangibles
|
108
|
|
|
1,058
|
|
|
1,152
|
|
|
FDIC and other deposit assessments
|
526
|
|
|
1,110
|
|
|
1,287
|
|
|
Operating losses
|
4,321
|
|
|
3,124
|
|
|
5,492
|
|
|
Outside professional services
|
3,198
|
|
|
3,306
|
|
|
3,813
|
|
|
Contract services (2)
|
2,489
|
|
|
2,192
|
|
|
1,638
|
|
|
Leases (3)
|
1,155
|
|
|
1,334
|
|
|
1,351
|
|
|
Advertising and promotion
|
1,076
|
|
|
857
|
|
|
614
|
|
|
Outside data processing
|
673
|
|
|
660
|
|
|
891
|
|
|
Travel and entertainment
|
580
|
|
|
618
|
|
|
687
|
|
|
Postage, stationery and supplies
|
518
|
|
|
515
|
|
|
544
|
|
|
Telecommunications
|
367
|
|
|
361
|
|
|
364
|
|
|
Foreclosed assets
|
163
|
|
|
188
|
|
|
251
|
|
|
Insurance
|
100
|
|
|
101
|
|
|
100
|
|
|
All other (2)
|
2,112
|
|
|
2,346
|
|
|
1,843
|
|
|
Total
|
$
|
58,178
|
|
|
56,126
|
|
|
58,484
|
|
(1)
|
Represents expenses for both leased and owned properties.
|
(2)
|
The amount for 2017 has been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.
|
(3)
|
Represents expenses for assets we lease to customers.
|
|
Year ended December 31,
|
|
||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Net interest income
|
$
|
70
|
|
|
60
|
|
Net gains (losses) from equity securities
|
664
|
|
|
(303
|
)
|
|
Total revenue (losses) from deferred compensation plan investments
|
734
|
|
|
(243
|
)
|
|
Employee benefits expense (1)
|
739
|
|
|
(242
|
)
|
|
Income (loss) before income tax expense
|
$
|
(5
|
)
|
|
(1
|
)
|
(1)
|
Represents change in deferred compensation plan liability.
|
42
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
|||||||||||||
(in millions, except average balances which are in billions)
|
Community Banking
|
|
|
Wholesale Banking
|
|
|
Wealth and Investment Management
|
|
|
Other (1)
|
|
|
Consolidated Company
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
45,316
|
|
|
27,677
|
|
|
17,341
|
|
|
(5,271
|
)
|
|
85,063
|
|
Provision (reversal of provision) for credit losses
|
2,319
|
|
|
378
|
|
|
5
|
|
|
(15
|
)
|
|
2,687
|
|
|
Net income (loss)
|
7,398
|
|
|
10,696
|
|
|
2,713
|
|
|
(1,258
|
)
|
|
19,549
|
|
|
Average loans
|
$
|
459.4
|
|
|
475.3
|
|
|
75.6
|
|
|
(59.3
|
)
|
|
951.0
|
|
Average deposits
|
782.0
|
|
|
422.5
|
|
|
146.0
|
|
|
(64.2
|
)
|
|
1,286.3
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
46,913
|
|
|
28,706
|
|
|
16,376
|
|
|
(5,587
|
)
|
|
86,408
|
|
Provision (reversal of provision) for credit losses
|
1,783
|
|
|
(58
|
)
|
|
(5
|
)
|
|
24
|
|
|
1,744
|
|
|
Net income (loss)
|
10,394
|
|
|
11,032
|
|
|
2,580
|
|
|
(1,613
|
)
|
|
22,393
|
|
|
Average loans
|
$
|
463.7
|
|
|
465.7
|
|
|
74.6
|
|
|
(58.8
|
)
|
|
945.2
|
|
Average deposits
|
757.2
|
|
|
423.7
|
|
|
165.0
|
|
|
(70.0
|
)
|
|
1,275.9
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
$
|
47,018
|
|
|
30,000
|
|
|
17,072
|
|
|
(5,701
|
)
|
|
88,389
|
|
Provision (reversal of provision) for credit losses
|
2,555
|
|
|
(19
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
2,528
|
|
|
Net income (loss)
|
10,938
|
|
|
9,914
|
|
|
2,770
|
|
|
(1,439
|
)
|
|
22,183
|
|
|
Average loans
|
$
|
475.7
|
|
|
465.6
|
|
|
71.9
|
|
|
(57.1
|
)
|
|
956.1
|
|
Average deposits
|
729.6
|
|
|
464.2
|
|
|
189.0
|
|
|
(78.2
|
)
|
|
1,304.6
|
|
(1)
|
Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for WIM customers served through Community Banking distribution channels.
|
|
Wells Fargo & Company
|
43
|
|
Year ended December 31,
|
|
||||||||||||||
(in millions, except average balances which are in billions)
|
2019
|
|
|
2018
|
|
|
% Change
|
|
|
2017
|
|
|
% Change
|
|
||
Net interest income
|
$
|
27,610
|
|
|
29,219
|
|
|
(6
|
)%
|
|
$
|
28,658
|
|
|
2
|
%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|||||||
Service charges on deposit accounts
|
2,823
|
|
|
2,641
|
|
|
7
|
|
|
2,909
|
|
|
(9
|
)
|
||
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|||||||
Brokerage advisory, commissions and other fees (1)
|
1,931
|
|
|
1,887
|
|
|
2
|
|
|
1,830
|
|
|
3
|
|
||
Trust and investment management (1)
|
805
|
|
|
910
|
|
|
(12
|
)
|
|
889
|
|
|
2
|
|
||
Investment banking (2)
|
(93
|
)
|
|
(35
|
)
|
|
NM
|
|
|
(59
|
)
|
|
41
|
|
||
Total trust and investment fees
|
2,643
|
|
|
2,762
|
|
|
(4
|
)
|
|
2,660
|
|
|
4
|
|
||
Card fees
|
3,655
|
|
|
3,543
|
|
|
3
|
|
|
3,613
|
|
|
(2
|
)
|
||
Other fees
|
1,278
|
|
|
1,359
|
|
|
(6
|
)
|
|
1,497
|
|
|
(9
|
)
|
||
Mortgage banking
|
2,307
|
|
|
2,659
|
|
|
(13
|
)
|
|
3,895
|
|
|
(32
|
)
|
||
Insurance
|
44
|
|
|
83
|
|
|
(47
|
)
|
|
139
|
|
|
(40
|
)
|
||
Net gains (losses) from trading activities
|
24
|
|
|
28
|
|
|
(14
|
)
|
|
(251
|
)
|
|
111
|
|
||
Net gains (losses) on debt securities
|
51
|
|
|
(3
|
)
|
|
NM
|
|
|
709
|
|
|
NM
|
|
||
Net gains from equity securities (3)
|
2,155
|
|
|
1,505
|
|
|
43
|
|
|
1,455
|
|
|
3
|
|
||
Other income of the segment
|
2,726
|
|
|
3,117
|
|
|
(13
|
)
|
|
1,734
|
|
|
80
|
|
||
Total noninterest income
|
17,706
|
|
|
17,694
|
|
|
—
|
|
|
18,360
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Total revenue
|
45,316
|
|
|
46,913
|
|
|
(3
|
)
|
|
47,018
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Provision for credit losses
|
2,319
|
|
|
1,783
|
|
|
30
|
|
|
2,555
|
|
|
(30
|
)
|
||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|||||||
Personnel expense
|
22,867
|
|
|
21,252
|
|
|
8
|
|
|
20,381
|
|
|
4
|
|
||
Technology and equipment
|
2,423
|
|
|
2,356
|
|
|
3
|
|
|
2,157
|
|
|
9
|
|
||
Net occupancy
|
2,236
|
|
|
2,166
|
|
|
3
|
|
|
2,111
|
|
|
3
|
|
||
Core deposit and other intangibles
|
3
|
|
|
404
|
|
|
(99
|
)
|
|
446
|
|
|
(9
|
)
|
||
FDIC and other deposit assessments
|
327
|
|
|
624
|
|
|
(48
|
)
|
|
715
|
|
|
(13
|
)
|
||
Outside professional services
|
1,942
|
|
|
1,560
|
|
|
24
|
|
|
1,875
|
|
|
(17
|
)
|
||
Operating losses
|
3,846
|
|
|
2,656
|
|
|
45
|
|
|
5,312
|
|
|
(50
|
)
|
||
Other expense of the segment
|
(948
|
)
|
|
(527
|
)
|
|
(80
|
)
|
|
(382
|
)
|
|
(38
|
)
|
||
Total noninterest expense
|
32,696
|
|
|
30,491
|
|
|
7
|
|
|
32,615
|
|
|
(7
|
)
|
||
Income before income tax expense and noncontrolling interests
|
10,301
|
|
|
14,639
|
|
|
(30
|
)
|
|
11,848
|
|
|
24
|
|
||
Income tax expense
|
2,426
|
|
|
3,784
|
|
|
(36
|
)
|
|
634
|
|
|
497
|
|
||
Less: Net income from noncontrolling interests (4)
|
477
|
|
|
461
|
|
|
3
|
|
|
276
|
|
|
67
|
|
||
Net income
|
$
|
7,398
|
|
|
10,394
|
|
|
(29
|
)
|
|
$
|
10,938
|
|
|
(5
|
)
|
Average loans
|
$
|
459.4
|
|
|
463.7
|
|
|
(1
|
)
|
|
$
|
475.7
|
|
|
(3
|
)
|
Average deposits
|
782.0
|
|
|
757.2
|
|
|
3
|
|
|
729.6
|
|
|
4
|
|
(1)
|
Represents income on products and services for WIM customers served through Community Banking distribution channels which is eliminated in consolidation.
|
(2)
|
Includes underwriting fees paid to Wells Fargo Securities for services related to the issuance of our corporate securities which are offset in our Wholesale Banking segment and eliminated in consolidation.
|
(3)
|
Largely represents gains resulting from venture capital investments.
|
(4)
|
Reflects results attributable to noncontrolling interests predominantly associated with the Company’s consolidated venture capital investments.
|
44
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
45
|
|
Year ended December 31,
|
|
||||||||||||||
(in millions, except average balances which are in billions)
|
2019
|
|
|
2018
|
|
|
% Change
|
|
|
2017
|
|
|
% Change
|
|
||
Net interest income
|
$
|
17,699
|
|
|
18,690
|
|
|
(5
|
)%
|
|
$
|
18,810
|
|
|
(1
|
)%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|||||||
Service charges on deposit accounts
|
1,974
|
|
|
2,074
|
|
|
(5
|
)
|
|
2,201
|
|
|
(6
|
)
|
||
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|||||||
Brokerage advisory, commissions and other fees
|
292
|
|
|
317
|
|
|
(8
|
)
|
|
304
|
|
|
4
|
|
||
Trust and investment management
|
486
|
|
|
445
|
|
|
9
|
|
|
523
|
|
|
(15
|
)
|
||
Investment banking
|
1,889
|
|
|
1,783
|
|
|
6
|
|
|
1,827
|
|
|
(2
|
)
|
||
Total trust and investment fees
|
2,667
|
|
|
2,545
|
|
|
5
|
|
|
2,654
|
|
|
(4
|
)
|
||
Card fees
|
359
|
|
|
362
|
|
|
(1
|
)
|
|
345
|
|
|
5
|
|
||
Other fees
|
1,801
|
|
|
2,019
|
|
|
(11
|
)
|
|
2,054
|
|
|
(2
|
)
|
||
Mortgage banking
|
412
|
|
|
362
|
|
|
14
|
|
|
458
|
|
|
(21
|
)
|
||
Insurance
|
303
|
|
|
312
|
|
|
(3
|
)
|
|
872
|
|
|
(64
|
)
|
||
Net gains from trading activities
|
915
|
|
|
516
|
|
|
77
|
|
|
701
|
|
|
(26
|
)
|
||
Net gains (losses) on debt securities
|
89
|
|
|
102
|
|
|
(13
|
)
|
|
(232
|
)
|
|
144
|
|
||
Net gains from equity securities
|
416
|
|
|
293
|
|
|
42
|
|
|
116
|
|
|
153
|
|
||
Other income of the segment
|
1,042
|
|
|
1,431
|
|
|
(27
|
)
|
|
2,021
|
|
|
(29
|
)
|
||
Total noninterest income
|
9,978
|
|
|
10,016
|
|
|
—
|
|
|
11,190
|
|
|
(10
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Total revenue
|
27,677
|
|
|
28,706
|
|
|
(4
|
)
|
|
30,000
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Provision (reversal of provision) for credit losses
|
378
|
|
|
(58
|
)
|
|
752
|
|
|
(19
|
)
|
|
NM
|
|
||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|||||||
Personnel expense
|
5,560
|
|
|
5,567
|
|
|
—
|
|
|
6,603
|
|
|
(16
|
)
|
||
Technology and equipment
|
38
|
|
|
48
|
|
|
(21
|
)
|
|
55
|
|
|
(13
|
)
|
||
Net occupancy
|
388
|
|
|
403
|
|
|
(4
|
)
|
|
425
|
|
|
(5
|
)
|
||
Core deposit and other intangibles
|
92
|
|
|
378
|
|
|
(76
|
)
|
|
414
|
|
|
(9
|
)
|
||
FDIC and other deposit assessments
|
172
|
|
|
419
|
|
|
(59
|
)
|
|
481
|
|
|
(13
|
)
|
||
Outside professional services
|
600
|
|
|
958
|
|
|
(37
|
)
|
|
1,134
|
|
|
(16
|
)
|
||
Operating losses
|
35
|
|
|
246
|
|
|
(86
|
)
|
|
74
|
|
|
232
|
|
||
Other expense of the segment
|
8,467
|
|
|
8,138
|
|
|
4
|
|
|
7,438
|
|
|
9
|
|
||
Total noninterest expense
|
15,352
|
|
|
16,157
|
|
|
(5
|
)
|
|
16,624
|
|
|
(3
|
)
|
||
Income before income tax expense and noncontrolling interest
|
11,947
|
|
|
12,607
|
|
|
(5
|
)
|
|
13,395
|
|
|
(6
|
)
|
||
Income tax expense (1)
|
1,246
|
|
|
1,555
|
|
|
(20
|
)
|
|
3,496
|
|
|
(56
|
)
|
||
Less: Net income (loss) from noncontrolling interest
|
5
|
|
|
20
|
|
|
(75
|
)
|
|
(15
|
)
|
|
233
|
|
||
Net income
|
$
|
10,696
|
|
|
11,032
|
|
|
(3
|
)
|
|
$
|
9,914
|
|
|
11
|
|
Average loans
|
$
|
475.3
|
|
|
465.7
|
|
|
2
|
|
|
$
|
465.6
|
|
|
—
|
|
Average deposits
|
422.5
|
|
|
423.7
|
|
|
—
|
|
|
464.2
|
|
|
(9
|
)
|
(1)
|
Income tax expense for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $1.8 billion, $1.6 billion and $1.4 billion for the years ended December 31, 2019, 2018 and 2017, respectively.
|
46
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
||||||||||||||
(in millions, except average balances which are in billions)
|
2019
|
|
|
2018
|
|
|
% Change
|
|
|
2017
|
|
|
% Change
|
|
||
Net interest income
|
$
|
4,037
|
|
|
4,441
|
|
|
(9
|
)%
|
|
$
|
4,641
|
|
|
(4
|
)%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|||||||
Service charges on deposit accounts
|
16
|
|
|
16
|
|
|
—
|
|
|
17
|
|
|
(6
|
)
|
||
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
|||||||
Brokerage advisory, commissions and other fees
|
8,946
|
|
|
9,161
|
|
|
(2
|
)
|
|
9,072
|
|
|
1
|
|
||
Trust and investment management
|
2,587
|
|
|
2,893
|
|
|
(11
|
)
|
|
2,877
|
|
|
1
|
|
||
Investment banking
|
6
|
|
|
9
|
|
|
(33
|
)
|
|
(2
|
)
|
|
550
|
|
||
Total trust and investment fees
|
11,539
|
|
|
12,063
|
|
|
(4
|
)
|
|
11,947
|
|
|
1
|
|
||
Card fees
|
6
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||
Other fees
|
17
|
|
|
17
|
|
|
—
|
|
|
18
|
|
|
(6
|
)
|
||
Mortgage banking
|
(12
|
)
|
|
(11
|
)
|
|
(9
|
)
|
|
(10
|
)
|
|
(10
|
)
|
||
Insurance
|
72
|
|
|
82
|
|
|
(12
|
)
|
|
88
|
|
|
(7
|
)
|
||
Net gains from trading activities
|
53
|
|
|
57
|
|
|
(7
|
)
|
|
92
|
|
|
(38
|
)
|
||
Net gains on debt securities
|
—
|
|
|
9
|
|
|
(100
|
)
|
|
2
|
|
|
350
|
|
||
Net gains (losses) from equity securities
|
272
|
|
|
(283
|
)
|
|
196
|
|
|
208
|
|
|
NM
|
|
||
Other income of the segment
|
1,341
|
|
|
(21
|
)
|
|
NM
|
|
|
63
|
|
|
NM
|
|
||
Total noninterest income
|
13,304
|
|
|
11,935
|
|
|
11
|
|
|
12,431
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Total revenue
|
17,341
|
|
|
16,376
|
|
|
6
|
|
|
17,072
|
|
|
(4
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|||||||
Provision (reversal of provision) for credit losses
|
5
|
|
|
(5
|
)
|
|
200
|
|
|
(5
|
)
|
|
—
|
|
||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|||||||
Personnel expense
|
8,477
|
|
|
8,085
|
|
|
5
|
|
|
8,126
|
|
|
(1
|
)
|
||
Technology and equipment
|
304
|
|
|
42
|
|
|
624
|
|
|
28
|
|
|
50
|
|
||
Net occupancy
|
448
|
|
|
440
|
|
|
2
|
|
|
431
|
|
|
2
|
|
||
Core deposit and other intangibles
|
13
|
|
|
276
|
|
|
(95
|
)
|
|
292
|
|
|
(5
|
)
|
||
FDIC and other deposit assessments
|
49
|
|
|
116
|
|
|
(58
|
)
|
|
154
|
|
|
(25
|
)
|
||
Outside professional services
|
684
|
|
|
815
|
|
|
(16
|
)
|
|
834
|
|
|
(2
|
)
|
||
Operating losses
|
452
|
|
|
232
|
|
|
95
|
|
|
115
|
|
|
102
|
|
||
Other expense of the segment
|
3,282
|
|
|
2,932
|
|
|
12
|
|
|
2,643
|
|
|
11
|
|
||
Total noninterest expense
|
13,709
|
|
|
12,938
|
|
|
6
|
|
|
12,623
|
|
|
2
|
|
||
Income before income tax expense and noncontrolling interest
|
3,627
|
|
|
3,443
|
|
|
5
|
|
|
4,454
|
|
|
(23
|
)
|
||
Income tax expense
|
904
|
|
|
861
|
|
|
5
|
|
|
1,668
|
|
|
(48
|
)
|
||
Less: Net income from noncontrolling interest
|
10
|
|
|
2
|
|
|
400
|
|
|
16
|
|
|
(88
|
)
|
||
Net income
|
$
|
2,713
|
|
|
2,580
|
|
|
5
|
|
|
$
|
2,770
|
|
|
(7
|
)
|
Average loans
|
$
|
75.6
|
|
|
74.6
|
|
|
1
|
|
|
$
|
71.9
|
|
|
4
|
|
Average deposits
|
146.0
|
|
|
165.0
|
|
|
(12
|
)
|
|
189.0
|
|
|
(13
|
)
|
|
Wells Fargo & Company
|
47
|
48
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
|||||||
(in billions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Retail brokerage client assets
|
$
|
1,646.0
|
|
|
1,487.6
|
|
|
1,651.3
|
|
Advisory account client assets
|
589.5
|
|
|
501.1
|
|
|
542.8
|
|
|
Advisory account client assets as a percentage of total client assets
|
36
|
%
|
|
34
|
|
|
33
|
|
|
Year ended
|
|
|||||||||
(in billions)
|
Balance, beginning of period
|
|
Inflows (1)
|
|
Outflows (2)
|
|
Market impact (3)
|
|
Balance, end of period
|
|
|
December 31, 2019
|
|
|
|
|
|
||||||
Client directed (4)
|
$
|
151.5
|
|
33.5
|
|
(41.8
|
)
|
26.2
|
|
169.4
|
|
Financial advisor directed (5)
|
141.9
|
|
33.9
|
|
(34.7
|
)
|
35.2
|
|
176.3
|
|
|
Separate accounts (6)
|
136.4
|
|
24.2
|
|
(29.7
|
)
|
29.2
|
|
160.1
|
|
|
Mutual fund advisory (7)
|
71.3
|
|
11.8
|
|
(14.1
|
)
|
14.7
|
|
83.7
|
|
|
Total advisory client assets
|
$
|
501.1
|
|
103.4
|
|
(120.3
|
)
|
105.3
|
|
589.5
|
|
December 31, 2018
|
|
|
|
|
|
||||||
Client directed (4)
|
$
|
170.9
|
|
33.6
|
|
(41.0
|
)
|
(12.0
|
)
|
151.5
|
|
Financial advisor directed (5)
|
147.0
|
|
30.0
|
|
(32.9
|
)
|
(2.2
|
)
|
141.9
|
|
|
Separate accounts (6)
|
149.1
|
|
23.8
|
|
(29.1
|
)
|
(7.4
|
)
|
136.4
|
|
|
Mutual fund advisory (7)
|
75.8
|
|
12.8
|
|
(13.8
|
)
|
(3.5
|
)
|
71.3
|
|
|
Total advisory client assets
|
$
|
542.8
|
|
100.2
|
|
(116.8
|
)
|
(25.1
|
)
|
501.1
|
|
December 31, 2017
|
|
|
|
|
|
||||||
Client directed (4)
|
$
|
159.1
|
|
37.1
|
|
(39.2
|
)
|
13.9
|
|
170.9
|
|
Financial advisor directed (5)
|
115.7
|
|
30.6
|
|
(24.5
|
)
|
25.2
|
|
147.0
|
|
|
Separate accounts (6)
|
125.7
|
|
26.1
|
|
(23.5
|
)
|
20.8
|
|
149.1
|
|
|
Mutual fund advisory (7)
|
63.3
|
|
13.1
|
|
(11.1
|
)
|
10.5
|
|
75.8
|
|
|
Total advisory client assets
|
$
|
463.8
|
|
106.9
|
|
(98.3
|
)
|
70.4
|
|
542.8
|
|
(1)
|
Inflows include new advisory account assets, contributions, dividends and interest.
|
(2)
|
Outflows include closed advisory account assets, withdrawals and client management fees.
|
(3)
|
Market impact reflects gains and losses on portfolio investments.
|
(4)
|
Investment advice and other services are provided to client, but decisions are made by the client and the fees earned are based on a percentage of the advisory account assets, not the number and size of transactions executed by the client.
|
(5)
|
Professionally managed portfolios with fees earned based on respective strategies and as a percentage of certain client assets.
|
(6)
|
Professional advisory portfolios managed by Wells Fargo Asset Management or third-party asset managers. Fees are earned based on a percentage of certain client assets.
|
(7)
|
Program with portfolios constructed of load-waived, no-load and institutional share class mutual funds. Fees are earned based on a percentage of certain client assets.
|
|
Wells Fargo & Company
|
49
|
|
Year ended
|
|
|||||||||
(in billions)
|
Balance, beginning of period
|
|
Inflows (1)
|
|
Outflows (2)
|
|
Market impact (3)
|
|
Balance, end of period
|
|
|
December 31, 2019
|
|
|
|
|
|
||||||
Assets managed by WFAM (4):
|
|
|
|
|
|
||||||
Money market funds (5)
|
$
|
112.4
|
|
18.2
|
|
—
|
|
—
|
|
130.6
|
|
Other assets managed
|
353.5
|
|
75.1
|
|
(86.1
|
)
|
35.7
|
|
378.2
|
|
|
Assets managed by Wealth and IRT (6)
|
170.7
|
|
33.6
|
|
(40.5
|
)
|
23.6
|
|
187.4
|
|
|
Total assets under management
|
$
|
636.6
|
|
126.9
|
|
(126.6
|
)
|
59.3
|
|
696.2
|
|
December 31, 2018
|
|
|
|
|
|
||||||
Assets managed by WFAM (4):
|
|
|
|
|
|
||||||
Money market funds (5)
|
$
|
108.2
|
|
4.2
|
|
—
|
|
—
|
|
112.4
|
|
Other assets managed
|
395.7
|
|
85.5
|
|
(120.2
|
)
|
(7.5
|
)
|
353.5
|
|
|
Assets managed by Wealth and IRT (6)
|
186.2
|
|
36.3
|
|
(39.5
|
)
|
(12.3
|
)
|
170.7
|
|
|
Total assets under management
|
$
|
690.1
|
|
126.0
|
|
(159.7
|
)
|
(19.8
|
)
|
636.6
|
|
December 31, 2017
|
|
|
|
|
|
||||||
Assets managed by WFAM (4):
|
|
|
|
|
|
||||||
Money market funds (5)
|
$
|
102.6
|
|
5.6
|
|
—
|
|
—
|
|
108.2
|
|
Other assets managed
|
379.6
|
|
116.0
|
|
(130.9
|
)
|
31.0
|
|
395.7
|
|
|
Assets managed by Wealth and IRT (6)
|
168.5
|
|
41.1
|
|
(39.4
|
)
|
16.0
|
|
186.2
|
|
|
Total assets under management
|
$
|
650.7
|
|
162.7
|
|
(170.3
|
)
|
47.0
|
|
690.1
|
|
(1)
|
Inflows include new managed account assets, contributions, dividends and interest.
|
(2)
|
Outflows include closed managed account assets, withdrawals and client management fees.
|
(3)
|
Market impact reflects gains and losses on portfolio investments.
|
(4)
|
Assets managed by WFAM consist of equity, alternative, balanced, fixed income, money market, and stable value, and include client assets that are managed or sub-advised on behalf of other Wells Fargo lines of business.
|
(5)
|
Money Market funds activity is presented on a net inflow or net outflow basis, because the gross flows are not meaningful nor used by management as an indicator of performance.
|
(6)
|
Includes $5.0 billion, $4.9 billion and $5.5 billion as of December 31, 2019, 2018 and 2017, respectively, of client assets invested in proprietary funds managed by WFAM.
|
50
|
Wells Fargo & Company
|
|
Balance Sheet Analysis
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Amortized cost
|
|
|
Net
unrealized
gain (loss)
|
|
|
Fair
value
|
|
|
Amortized cost
|
|
|
Net
unrealized gain (loss) |
|
|
Fair
value |
|
|
Available-for-sale
|
$
|
260,060
|
|
|
3,399
|
|
|
263,459
|
|
|
272,471
|
|
|
(2,559
|
)
|
|
269,912
|
|
Held-to-maturity
|
153,933
|
|
|
2,927
|
|
|
156,860
|
|
|
144,788
|
|
|
(2,673
|
)
|
|
142,115
|
|
|
Total (1)
|
413,993
|
|
|
6,326
|
|
|
420,319
|
|
|
417,259
|
|
|
(5,232
|
)
|
|
412,027
|
|
(1)
|
Available-for-sale debt securities are carried on the balance sheet at fair value. Held-to-maturity debt securities are carried on the balance sheet at amortized cost.
|
51
|
Wells Fargo & Company
|
|
(in billions)
|
Fair
value
|
|
|
Net
unrealized
gain (loss)
|
|
|
Expected
remaining
maturity
(in years)
|
At December 31, 2019
|
|
|
|
|
|
||
Actual
|
167.2
|
|
|
2.2
|
|
|
4.6
|
Assuming a 200 basis point:
|
|
|
|
|
|
||
Increase in interest rates
|
151.3
|
|
|
(13.7
|
)
|
|
6.9
|
Decrease in interest rates
|
176.9
|
|
|
11.9
|
|
|
3.2
|
(in millions)
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
Commercial
|
|
$
|
515,719
|
|
|
513,405
|
|
Consumer
|
|
446,546
|
|
|
439,705
|
|
|
Total loans
|
|
962,265
|
|
|
953,110
|
|
|
Change from prior year
|
|
$
|
9,155
|
|
|
(3,660
|
)
|
|
December 31, 2019
|
|
||||||||||
(in millions)
|
Within
one
year
|
|
|
After
one year
through
five years
|
|
|
After
five
years
|
|
|
Total
|
|
|
Selected loan maturities:
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
$
|
130,342
|
|
|
196,460
|
|
|
27,323
|
|
|
354,125
|
|
Real estate mortgage
|
27,951
|
|
|
64,506
|
|
|
29,367
|
|
|
121,824
|
|
|
Real estate construction
|
9,219
|
|
|
10,178
|
|
|
542
|
|
|
19,939
|
|
|
Total selected loans
|
$
|
167,512
|
|
|
271,144
|
|
|
57,232
|
|
|
495,888
|
|
Distribution of loans to changes in interest rates:
|
|
|
|
|
|
|
|
|||||
Loans at fixed interest rates
|
$
|
22,660
|
|
|
28,688
|
|
|
18,479
|
|
|
69,827
|
|
Loans at floating/variable interest rates
|
144,852
|
|
|
242,456
|
|
|
38,753
|
|
|
426,061
|
|
|
Total selected loans
|
$
|
167,512
|
|
|
271,144
|
|
|
57,232
|
|
|
495,888
|
|
52
|
Wells Fargo & Company
|
|
($ in millions)
|
Dec 31,
2019 |
|
|
% of
total
deposits
|
|
|
Dec 31,
2018 |
|
|
% of
total
deposits |
|
|
% Change
|
|
||
Noninterest-bearing
|
$
|
344,496
|
|
|
26
|
%
|
|
$
|
349,534
|
|
|
27
|
%
|
|
(1
|
)
|
Interest-bearing checking
|
62,814
|
|
|
5
|
|
|
56,797
|
|
|
4
|
|
|
11
|
|
||
Market rate and other savings
|
751,080
|
|
|
57
|
|
|
703,338
|
|
|
55
|
|
|
7
|
|
||
Savings certificates
|
31,715
|
|
|
2
|
|
|
22,648
|
|
|
2
|
|
|
40
|
|
||
Other time deposits
|
78,609
|
|
|
6
|
|
|
95,602
|
|
|
7
|
|
|
(18
|
)
|
||
Deposits in non-U.S. offices (1)
|
53,912
|
|
|
4
|
|
|
58,251
|
|
|
5
|
|
|
(7
|
)
|
||
Total deposits
|
$
|
1,322,626
|
|
|
100
|
%
|
|
$
|
1,286,170
|
|
|
100
|
%
|
|
3
|
|
(1)
|
Includes Eurodollar sweep balances of $34.2 billion and $31.8 billion at December 31, 2019 and 2018, respectively.
|
|
Wells Fargo & Company
|
53
|
Off-Balance Sheet Arrangements
|
|
Wells Fargo & Company
|
54
|
|
|
|
December 31, 2019
|
|
||||||||||||||||
(in millions)
|
Note(s) to
Financial
Statements
|
|
Less than
1 year
|
|
|
1-3
years
|
|
|
3-5
years
|
|
|
More
than
5 years
|
|
|
Indeterminate
maturity
|
|
|
Total
|
|
|
Contractual payments by period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Deposits (1)
|
13
|
|
$
|
88,259
|
|
|
21,484
|
|
|
6,036
|
|
|
3,070
|
|
|
1,203,777
|
|
|
1,322,626
|
|
Long-term debt (2)
|
15
|
|
39,646
|
|
|
73,329
|
|
|
29,776
|
|
|
85,440
|
|
|
—
|
|
|
228,191
|
|
|
Interest (3)
|
|
|
6,805
|
|
|
8,748
|
|
|
5,733
|
|
|
19,648
|
|
|
—
|
|
|
40,934
|
|
|
Operating leases
|
7
|
|
1,006
|
|
|
1,942
|
|
|
1,347
|
|
|
1,672
|
|
|
—
|
|
|
5,967
|
|
|
Unrecognized tax obligations
|
24
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,676
|
|
|
3,681
|
|
|
Commitments to purchase debt
and equity securities (4)
|
16
|
|
2,706
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
2,724
|
|
|
Purchase and other obligations (5)
|
|
|
855
|
|
|
1,009
|
|
|
438
|
|
|
314
|
|
|
—
|
|
|
2,616
|
|
|
Total contractual obligations
|
|
|
$
|
139,282
|
|
|
106,512
|
|
|
43,330
|
|
|
110,162
|
|
|
1,207,453
|
|
|
1,606,739
|
|
(1)
|
Includes interest-bearing and noninterest-bearing checking, and market rate and other savings accounts.
|
(2)
|
Balances are presented net of unamortized debt discounts and premiums and purchase accounting adjustments.
|
(3)
|
Represents the future interest obligations related to interest-bearing time deposits and long-term debt in the normal course of business including a net reduction of $7.1 billion related to hedges used to manage interest rate risk. These interest obligations assume no early debt redemption. We estimated variable interest rate payments using December 31, 2019, rates, which we held constant until maturity. We have excluded interest related to structured notes where our payment obligation is contingent on the performance of certain benchmarks.
|
(4)
|
Includes unfunded commitments to purchase debt securities of $18 million and equity securities of $2.7 billion, respectively. Substantially all of our equity commitments are included in the ‘Less than one year’ category as there are no specified contribution dates in the agreements. These obligations may be requested at any time by the investment manager.
|
(5)
|
Represents agreements related to unrecognized obligations to purchase goods or services.
|
|
Wells Fargo & Company
|
55
|
Risk Management
|
56
|
Wells Fargo & Company
|
|
(1)
|
The Audit Committee additionally oversees the internal audit function; external auditor independence, activities, and performance; and the disclosure framework for financial, regulatory and risk reports prepared for the Board, management, and bank regulatory agencies; and assists the Board in its oversight of the Company’s compliance with legal and regulatory requirements.
|
•
|
Front Line The front line, which is composed of business groups and certain activities of enterprise functions, is the first line of defense. In the course of its business activities, the front line identifies, measures and assesses, manages, controls, monitors, and reports on risk associated with its business activities and balances risk and reward in decision making while remaining within the Company’s risk appetite.
|
•
|
Independent Risk Management IRM is the second line of defense. It establishes and maintains the Company’s risk management program and provides oversight, including challenge to and independent assessment of the front line’s execution of its risk management responsibilities.
|
•
|
Internal Audit Internal Audit is the third line of defense. It is responsible for acting as an independent assurance function and validates that the risk management program is adequately designed and functioning effectively.
|
|
Wells Fargo & Company
|
57
|
58
|
Wells Fargo & Company
|
|
(in millions)
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Commercial:
|
|
|
|
|||
Commercial and industrial
|
$
|
354,125
|
|
|
350,199
|
|
Real estate mortgage
|
121,824
|
|
|
121,014
|
|
|
Real estate construction
|
19,939
|
|
|
22,496
|
|
|
Lease financing
|
19,831
|
|
|
19,696
|
|
|
Total commercial
|
515,719
|
|
|
513,405
|
|
|
Consumer:
|
|
|
|
|||
Real estate 1-4 family first mortgage
|
293,847
|
|
|
285,065
|
|
|
Real estate 1-4 family junior lien mortgage
|
29,509
|
|
|
34,398
|
|
|
Credit card
|
41,013
|
|
|
39,025
|
|
|
Automobile
|
47,873
|
|
|
45,069
|
|
|
Other revolving credit and installment
|
34,304
|
|
|
36,148
|
|
|
Total consumer
|
446,546
|
|
|
439,705
|
|
|
Total loans
|
$
|
962,265
|
|
|
953,110
|
|
|
Wells Fargo & Company
|
59
|
•
|
Nonaccrual loans were $5.3 billion at December 31, 2019, down from $6.5 billion at December 31, 2018. Commercial nonaccrual loans increased to $2.3 billion at December 31, 2019, compared with $2.2 billion at December 31, 2018, and consumer nonaccrual loans declined to $3.1 billion at December 31, 2019, compared with $4.3 billion at December 31, 2018. A decline in real estate 1-4 family mortgage nonaccrual loans reflecting an improved housing market, sales of nonaccrual mortgage loans, and the reclassification of nonaccrual mortgage loans to MLHFS was partially offset by an increase in commercial and industrial nonaccrual loans driven by the oil and gas portfolio. Nonaccrual loans represented 0.56% of total loans at December 31, 2019, compared with 0.68% at December 31, 2018.
|
•
|
Net charge-offs as a percentage of our average commercial and consumer portfolios were 0.13% and 0.48%, respectively, in 2019, compared with 0.09% and 0.52% in 2018.
|
•
|
Loans that are not government insured/guaranteed and 90 days or more past due and still accruing were $78 million and $855 million in our commercial and consumer portfolios, respectively, at December 31, 2019, compared with $94 million and $885 million at December 31, 2018.
|
•
|
Our provision for credit losses was $2.7 billion in 2019, compared with $1.7 billion in 2018. The provision for credit losses in both 2019 and 2018 reflected continuing solid underlying credit performance. The provision for credit losses in 2018 also reflected a higher level of credit quality improvement compared with 2019, as well as an improvement in the outlook associated with 2017 hurricane-related losses.
|
•
|
The allowance for credit losses declined to $10.5 billion, or 1.09% of total loans, at December 31, 2019, compared with $10.7 billion, or 1.12%, at December 31, 2018.
|
60
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||
(in millions)
|
Nonaccrual loans
|
|
|
Total portfolio
|
|
|
% of total loans
|
|
|
Nonaccrual loans
|
|
|
Total portfolio
|
|
|
% of total loans
|
|
||
Financials except banks
|
$
|
112
|
|
|
117,312
|
|
|
12
|
%
|
|
$
|
305
|
|
|
105,925
|
|
|
11
|
%
|
Equipment, machinery and parts manufacturing
|
36
|
|
|
23,457
|
|
|
2
|
|
|
47
|
|
|
20,850
|
|
|
2
|
|
||
Technology, telecom and media
|
28
|
|
|
22,447
|
|
|
2
|
|
|
26
|
|
|
25,681
|
|
|
3
|
|
||
Real estate and construction
|
47
|
|
|
22,011
|
|
|
2
|
|
|
31
|
|
|
23,380
|
|
|
2
|
|
||
Banks
|
—
|
|
|
20,070
|
|
|
2
|
|
|
—
|
|
|
18,407
|
|
|
2
|
|
||
Retail
|
105
|
|
|
19,923
|
|
|
2
|
|
|
87
|
|
|
19,541
|
|
|
2
|
|
||
Materials and commodities
|
33
|
|
|
16,375
|
|
|
2
|
|
|
136
|
|
|
18,688
|
|
|
2
|
|
||
Automobile related
|
24
|
|
|
15,996
|
|
|
2
|
|
|
16
|
|
|
16,801
|
|
|
2
|
|
||
Food and beverage manufacturing
|
9
|
|
|
14,991
|
|
|
2
|
|
|
48
|
|
|
15,448
|
|
|
2
|
|
||
Health care and pharmaceuticals
|
28
|
|
|
14,920
|
|
|
2
|
|
|
124
|
|
|
15,529
|
|
|
2
|
|
||
Oil, gas and pipelines
|
615
|
|
|
13,562
|
|
|
1
|
|
|
417
|
|
|
12,840
|
|
|
1
|
|
||
Entertainment and recreation
|
44
|
|
|
13,462
|
|
|
1
|
|
|
33
|
|
|
14,045
|
|
|
1
|
|
||
Transportation services
|
224
|
|
|
10,957
|
|
|
1
|
|
|
176
|
|
|
12,029
|
|
|
1
|
|
||
Commercial services
|
50
|
|
|
10,455
|
|
|
1
|
|
|
48
|
|
|
10,591
|
|
|
1
|
|
||
Agribusiness
|
35
|
|
|
7,539
|
|
|
1
|
|
|
46
|
|
|
7,996
|
|
|
1
|
|
||
Utilities
|
224
|
|
|
5,995
|
|
|
1
|
|
|
6
|
|
|
5,756
|
|
|
1
|
|
||
Insurance and fiduciaries
|
1
|
|
|
5,525
|
|
|
1
|
|
|
1
|
|
|
5,510
|
|
|
1
|
|
||
Government and education
|
6
|
|
|
5,363
|
|
|
1
|
|
|
3
|
|
|
6,160
|
|
|
1
|
|
||
Other (2)
|
19
|
|
|
13,596
|
|
|
1
|
|
|
26
|
|
|
14,718
|
|
|
1
|
|
||
Total
|
$
|
1,640
|
|
|
373,956
|
|
|
39
|
%
|
|
$
|
1,576
|
|
|
369,895
|
|
|
39
|
%
|
(1)
|
Industry categories are based on the North American Industry Classification System and the amounts reported include non-U.S. loans. The industry categories were updated in 2019 to align with industry groupings that our regulators use to monitor industry concentration risks. The amounts for December 31, 2018, have been reclassified to conform with the current period presentation. See Note 6 (Loans and Allowance for Credit Losses) to Financial Statements in this Report for a breakout of non-U.S. commercial loans.
|
(2)
|
No other single industry had total loans in excess of $4.7 billion and $4.5 billion at December 31, 2019 and 2018, respectively.
|
|
Wells Fargo & Company
|
61
|
|
December 31, 2019
|
|
|||||||||||||||||||
|
Real estate mortgage
|
|
|
Real estate construction
|
|
|
Total
|
|
|
% of
total
loans
|
|
||||||||||
(in millions)
|
Nonaccrual loans
|
|
|
Total portfolio
|
|
|
Nonaccrual loans
|
|
|
Total portfolio
|
|
|
Nonaccrual loans
|
|
|
Total portfolio
|
|
|
|||
By state:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
California
|
$
|
149
|
|
|
32,079
|
|
|
12
|
|
|
4,415
|
|
|
161
|
|
|
36,494
|
|
|
4
|
%
|
New York
|
21
|
|
|
12,076
|
|
|
2
|
|
|
1,863
|
|
|
23
|
|
|
13,939
|
|
|
1
|
|
|
Florida
|
23
|
|
|
8,081
|
|
|
4
|
|
|
1,450
|
|
|
27
|
|
|
9,531
|
|
|
1
|
|
|
Texas
|
42
|
|
|
7,877
|
|
|
5
|
|
|
1,389
|
|
|
47
|
|
|
9,266
|
|
|
1
|
|
|
Arizona
|
70
|
|
|
4,212
|
|
|
—
|
|
|
303
|
|
|
70
|
|
|
4,515
|
|
|
1
|
|
|
Washington
|
9
|
|
|
3,757
|
|
|
—
|
|
|
709
|
|
|
9
|
|
|
4,466
|
|
|
1
|
|
|
North Carolina
|
17
|
|
|
3,823
|
|
|
4
|
|
|
540
|
|
|
21
|
|
|
4,363
|
|
|
1
|
|
|
Georgia
|
15
|
|
|
3,819
|
|
|
—
|
|
|
401
|
|
|
15
|
|
|
4,220
|
|
|
*
|
|
|
Virginia
|
6
|
|
|
2,808
|
|
|
—
|
|
|
680
|
|
|
6
|
|
|
3,488
|
|
|
*
|
|
|
New Jersey
|
16
|
|
|
2,846
|
|
|
—
|
|
|
628
|
|
|
16
|
|
|
3,474
|
|
|
*
|
|
|
Other
|
205
|
|
|
40,446
|
|
|
14
|
|
|
7,561
|
|
|
219
|
|
|
48,007
|
|
(1)
|
5
|
|
|
Total
|
$
|
573
|
|
|
121,824
|
|
|
41
|
|
|
19,939
|
|
|
614
|
|
|
141,763
|
|
|
15
|
%
|
By property:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Office buildings
|
$
|
105
|
|
|
34,188
|
|
|
6
|
|
|
2,919
|
|
|
111
|
|
|
37,107
|
|
|
4
|
%
|
Apartments
|
9
|
|
|
18,243
|
|
|
—
|
|
|
6,415
|
|
|
9
|
|
|
24,658
|
|
|
3
|
|
|
Industrial/warehouse
|
81
|
|
|
15,813
|
|
|
2
|
|
|
1,492
|
|
|
83
|
|
|
17,305
|
|
|
2
|
|
|
Retail (excluding shopping center)
|
128
|
|
|
14,510
|
|
|
5
|
|
|
210
|
|
|
133
|
|
|
14,720
|
|
|
2
|
|
|
Shopping center
|
2
|
|
|
10,816
|
|
|
—
|
|
|
1,313
|
|
|
2
|
|
|
12,129
|
|
|
1
|
|
|
Hotel/motel
|
16
|
|
|
10,319
|
|
|
—
|
|
|
1,459
|
|
|
16
|
|
|
11,778
|
|
|
1
|
|
|
Mixed use properties (2)
|
92
|
|
|
6,377
|
|
|
1
|
|
|
487
|
|
|
93
|
|
|
6,864
|
|
|
1
|
|
|
Institutional
|
39
|
|
|
3,617
|
|
|
10
|
|
|
1,924
|
|
|
49
|
|
|
5,541
|
|
|
*
|
|
|
Collateral pool
|
—
|
|
|
2,328
|
|
|
—
|
|
|
198
|
|
|
—
|
|
|
2,526
|
|
|
*
|
|
|
Agriculture
|
91
|
|
|
2,116
|
|
|
—
|
|
|
10
|
|
|
91
|
|
|
2,126
|
|
|
*
|
|
|
Other
|
10
|
|
|
3,497
|
|
|
17
|
|
|
3,512
|
|
|
27
|
|
|
7,009
|
|
|
1
|
|
|
Total
|
$
|
573
|
|
|
121,824
|
|
|
41
|
|
|
19,939
|
|
|
614
|
|
|
141,763
|
|
|
15
|
%
|
(1)
|
Includes 40 states; no state had loans in excess of $3.5 billion.
|
(2)
|
Mixed use properties combines residential, commercial, cultural, and other usage within the same building. This also includes data centers, flexible spaces leased to multiple tenants, light manufacturing, and other specialized uses.
|
62
|
Wells Fargo & Company
|
|
•
|
Lending exposure includes outstanding loans, unfunded credit commitments, and deposits with non-U.S. banks. These balances are presented prior to the deduction of allowance for credit losses or collateral received under the terms of the credit agreements, if any.
|
•
|
Securities exposure represents debt and equity securities of non-U.S. issuers. Long and short positions are netted, and net short positions are reflected as negative exposure.
|
•
|
Derivatives and other exposure represents foreign exchange contracts, derivative contracts, securities resale agreements, and securities lending agreements.
|
|
December 31, 2019
|
|
|||||||||||||||||||||||||
|
Lending
|
|
|
Securities
|
|
|
Derivatives and other
|
|
|
Total exposure
|
|
||||||||||||||||
(in millions)
|
Sovereign
|
|
|
Non-sovereign
|
|
|
Sovereign
|
|
|
Non-sovereign
|
|
|
Sovereign
|
|
|
Non-sovereign
|
|
|
Sovereign
|
|
|
Non-
sovereign (1)
|
|
|
Total
|
|
|
Top 20 country exposures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United Kingdom
|
$
|
7,989
|
|
|
21,617
|
|
|
—
|
|
|
881
|
|
|
2
|
|
|
1,067
|
|
|
7,991
|
|
|
23,565
|
|
|
31,556
|
|
Canada
|
36
|
|
|
17,661
|
|
|
(68
|
)
|
|
194
|
|
|
—
|
|
|
272
|
|
|
(32
|
)
|
|
18,127
|
|
|
18,095
|
|
|
Cayman Islands
|
—
|
|
|
7,442
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
126
|
|
|
—
|
|
|
7,599
|
|
|
7,599
|
|
|
Ireland
|
225
|
|
|
4,971
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
137
|
|
|
225
|
|
|
5,210
|
|
|
5,435
|
|
|
China
|
—
|
|
|
4,022
|
|
|
5
|
|
|
408
|
|
|
59
|
|
|
20
|
|
|
64
|
|
|
4,450
|
|
|
4,514
|
|
|
Luxembourg
|
—
|
|
|
3,636
|
|
|
—
|
|
|
654
|
|
|
—
|
|
|
83
|
|
|
—
|
|
|
4,373
|
|
|
4,373
|
|
|
Bermuda
|
—
|
|
|
3,824
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
3,981
|
|
|
3,981
|
|
|
Guernsey
|
—
|
|
|
3,554
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
65
|
|
|
—
|
|
|
3,620
|
|
|
3,620
|
|
|
Germany
|
—
|
|
|
2,773
|
|
|
—
|
|
|
128
|
|
|
3
|
|
|
42
|
|
|
3
|
|
|
2,943
|
|
|
2,946
|
|
|
Netherlands
|
—
|
|
|
2,019
|
|
|
—
|
|
|
364
|
|
|
20
|
|
|
126
|
|
|
20
|
|
|
2,509
|
|
|
2,529
|
|
|
South Korea
|
—
|
|
|
2,023
|
|
|
—
|
|
|
268
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
2,297
|
|
|
2,297
|
|
|
Brazil
|
—
|
|
|
2,075
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
2,077
|
|
|
2,078
|
|
|
France
|
—
|
|
|
1,882
|
|
|
—
|
|
|
137
|
|
|
29
|
|
|
9
|
|
|
29
|
|
|
2,028
|
|
|
2,057
|
|
|
Australia
|
—
|
|
|
1,720
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
1,873
|
|
|
1,873
|
|
|
India
|
—
|
|
|
1,734
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,864
|
|
|
1,864
|
|
|
Chile
|
—
|
|
|
1,698
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,697
|
|
|
1,697
|
|
|
Switzerland
|
—
|
|
|
1,482
|
|
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
57
|
|
|
—
|
|
|
1,488
|
|
|
1,488
|
|
|
Taiwan
|
—
|
|
|
1,369
|
|
|
—
|
|
|
(6
|
)
|
|
1
|
|
|
2
|
|
|
1
|
|
|
1,365
|
|
|
1,366
|
|
|
United Arab Emirates
|
—
|
|
|
1,323
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
1,326
|
|
|
1,326
|
|
|
Hong Kong
|
—
|
|
|
1,333
|
|
|
—
|
|
|
(14
|
)
|
|
1
|
|
|
2
|
|
|
1
|
|
|
1,321
|
|
|
1,322
|
|
|
Total top 20 country exposures
|
$
|
8,250
|
|
|
88,158
|
|
|
(63
|
)
|
|
3,475
|
|
|
116
|
|
|
2,080
|
|
|
8,303
|
|
|
93,713
|
|
|
102,016
|
|
Eurozone exposure:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Eurozone countries included in Top 20 above (2)
|
$
|
225
|
|
|
15,281
|
|
|
—
|
|
|
1,385
|
|
|
52
|
|
|
397
|
|
|
277
|
|
|
17,063
|
|
|
17,340
|
|
Spain
|
—
|
|
|
401
|
|
|
—
|
|
|
466
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
897
|
|
|
897
|
|
|
Belgium
|
—
|
|
|
766
|
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
695
|
|
|
695
|
|
|
Austria
|
—
|
|
|
305
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
305
|
|
|
305
|
|
|
Other Eurozone countries
|
—
|
|
|
230
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
286
|
|
|
286
|
|
|
Total Eurozone exposure
|
$
|
225
|
|
|
16,983
|
|
|
—
|
|
|
1,834
|
|
|
52
|
|
|
429
|
|
|
277
|
|
|
19,246
|
|
|
19,523
|
|
(1)
|
For countries presented in the table, total non-sovereign exposure comprises $53.1 billion exposure to financial institutions and $42.8 billion to non-financial corporations at December 31, 2019.
|
(2)
|
Consists of exposure to Ireland, Luxembourg, Germany, Netherlands and France, which are included in the Top 20 country exposures.
|
|
Wells Fargo & Company
|
63
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||
(in millions)
|
Balance
|
|
% of portfolio
|
|
|
Balance
|
|
% of portfolio
|
|
||
Real estate 1-4 family first mortgage
|
$
|
293,847
|
|
91
|
%
|
|
$
|
285,065
|
|
89
|
%
|
Real estate 1-4 family junior lien mortgage
|
29,509
|
|
9
|
|
|
34,398
|
|
11
|
|
||
Total real estate 1-4 family mortgage loans
|
$
|
323,356
|
|
100
|
%
|
|
$
|
319,463
|
|
100
|
%
|
64
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
||||||||||
(in millions)
|
Real estate 1-4 family first mortgage
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
Total real estate 1-4 family mortgage
|
|
|
% of total loans
|
|
|
Real estate 1-4 family mortgage loans (excluding PCI):
|
|
|
|
|
|
|
|
|||||
California
|
$
|
118,256
|
|
|
8,054
|
|
|
126,310
|
|
|
13
|
%
|
New York
|
31,336
|
|
|
1,508
|
|
|
32,844
|
|
|
3
|
|
|
New Jersey
|
14,113
|
|
|
2,744
|
|
|
16,857
|
|
|
2
|
|
|
Florida
|
11,804
|
|
|
2,600
|
|
|
14,404
|
|
|
2
|
|
|
Washington
|
10,863
|
|
|
655
|
|
|
11,518
|
|
|
1
|
|
|
Virginia
|
8,857
|
|
|
1,712
|
|
|
10,569
|
|
|
1
|
|
|
Texas
|
8,963
|
|
|
596
|
|
|
9,559
|
|
|
1
|
|
|
North Carolina
|
5,839
|
|
|
1,388
|
|
|
7,227
|
|
|
1
|
|
|
Colorado
|
6,382
|
|
|
664
|
|
|
7,046
|
|
|
1
|
|
|
Other (1)
|
65,709
|
|
|
9,575
|
|
|
75,284
|
|
|
8
|
|
|
Government insured/guaranteed loans (2)
|
11,170
|
|
|
—
|
|
|
11,170
|
|
|
1
|
|
|
Real estate 1-4 family loans (excluding PCI)
|
293,292
|
|
|
29,496
|
|
|
322,788
|
|
|
34
|
|
|
Real estate 1-4 family PCI loans
|
555
|
|
|
13
|
|
|
568
|
|
|
—
|
|
|
Total
|
$
|
293,847
|
|
|
29,509
|
|
|
323,356
|
|
|
34
|
%
|
(1)
|
Consists of 41 states; no state had loans in excess of $7.0 billion.
|
(2)
|
Represents loans whose repayments are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).
|
|
Outstanding balance
|
|
|
% of loans 30 days
or more past due
|
|
Loss (recovery) rate
|
|
|||||||
|
December 31,
|
|
|
December 31,
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
California
|
$
|
118,256
|
|
109,092
|
|
|
0.48
|
%
|
0.68
|
|
(0.02
|
)
|
(0.06
|
)
|
New York
|
31,336
|
|
28,954
|
|
|
0.83
|
|
1.12
|
|
0.02
|
|
0.04
|
|
|
New Jersey
|
14,113
|
|
13,811
|
|
|
1.40
|
|
1.91
|
|
0.02
|
|
0.03
|
|
|
Florida
|
11,804
|
|
12,350
|
|
|
1.81
|
|
2.58
|
|
(0.06
|
)
|
(0.17
|
)
|
|
Washington
|
10,863
|
|
9,677
|
|
|
0.29
|
|
0.57
|
|
(0.02
|
)
|
(0.06
|
)
|
|
Other
|
95,750
|
|
93,261
|
|
|
1.20
|
|
1.70
|
|
(0.02
|
)
|
(0.02
|
)
|
|
Total
|
282,122
|
|
267,145
|
|
|
0.86
|
|
1.23
|
|
(0.02
|
)
|
(0.03
|
)
|
|
Government insured/guaranteed loans
|
11,170
|
|
12,932
|
|
|
|
|
|
|
|
||||
PCI
|
555
|
|
4,988
|
|
|
|
|
|
|
|
||||
Total first mortgage portfolio
|
$
|
293,847
|
|
285,065
|
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
65
|
|
December 31,
|
|
|||||||||||
|
2019
|
|
|
2018
|
|
||||||||
(in millions)
|
Adjusted unpaid principal balance (1)
|
|
|
% of total
|
|
|
Adjusted
unpaid principal balance (1)
|
|
|
% of total
|
|
||
Option payment loans
|
$
|
4,571
|
|
|
50
|
%
|
|
$
|
8,813
|
|
|
50
|
%
|
Non-option payment adjustable-rate and fixed-rate loans
|
2,161
|
|
|
24
|
|
|
2,848
|
|
|
16
|
|
||
Full-term loan modifications
|
2,320
|
|
|
26
|
|
|
6,080
|
|
|
34
|
|
||
Total adjusted unpaid principal balance
|
$
|
9,052
|
|
|
100
|
%
|
|
$
|
17,741
|
|
|
100
|
%
|
Total carrying value
|
$
|
8,936
|
|
|
|
|
$
|
16,115
|
|
|
|
(1)
|
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.
|
66
|
Wells Fargo & Company
|
|
|
Outstanding balance
|
|
|
% of loans 30 days
or more past due
|
|
Loss (recovery) rate
|
|
||||||||
|
December 31,
|
|
|
December 31,
|
|
Year ended December 31,
|
|
||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
California
|
$
|
8,054
|
|
|
9,338
|
|
|
1.62
|
%
|
1.67
|
|
(0.44
|
)
|
(0.46
|
)
|
New Jersey
|
2,744
|
|
|
3,152
|
|
|
2.74
|
|
2.57
|
|
0.07
|
|
0.25
|
|
|
Florida
|
2,600
|
|
|
3,140
|
|
|
2.93
|
|
2.73
|
|
(0.09
|
)
|
—
|
|
|
Virginia
|
1,712
|
|
|
2,020
|
|
|
1.97
|
|
1.91
|
|
(0.02
|
)
|
0.19
|
|
|
Pennsylvania
|
1,674
|
|
|
1,929
|
|
|
2.16
|
|
2.10
|
|
(0.10
|
)
|
0.15
|
|
|
Other
|
12,712
|
|
|
14,802
|
|
|
2.05
|
|
2.12
|
|
(0.18
|
)
|
(0.07
|
)
|
|
Total
|
29,496
|
|
|
34,381
|
|
|
2.07
|
|
2.08
|
|
(0.21
|
)
|
(0.11
|
)
|
|
PCI
|
13
|
|
|
17
|
|
|
|
|
|
|
|
||||
Total junior lien mortgage portfolio
|
$
|
29,509
|
|
|
34,398
|
|
|
|
|
|
|
|
|
Wells Fargo & Company
|
67
|
|
|
|
|
|
|
Scheduled end of draw/term
|
|
|
|
|
||||||||||||||
|
Outstanding balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 and
|
|
|
|
|
|||
(in millions)
|
December 31, 2019
|
|
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024
|
|
|
thereafter (1)
|
|
|
Amortizing
|
|
|
Junior lien lines and loans
|
$
|
29,496
|
|
|
334
|
|
|
863
|
|
|
3,308
|
|
|
2,276
|
|
|
1,850
|
|
|
11,754
|
|
|
9,111
|
|
First lien lines
|
10,384
|
|
|
139
|
|
|
414
|
|
|
1,618
|
|
|
1,214
|
|
|
956
|
|
|
4,328
|
|
|
1,715
|
|
|
Total
|
$
|
39,880
|
|
|
473
|
|
|
1,277
|
|
|
4,926
|
|
|
3,490
|
|
|
2,806
|
|
|
16,082
|
|
|
10,826
|
|
% of portfolios
|
100
|
%
|
|
1
|
|
|
3
|
|
|
12
|
|
|
9
|
|
|
7
|
|
|
40
|
|
|
28
|
|
(1)
|
Substantially all lines and loans are scheduled to convert to amortizing loans by the end of 2029, with annual scheduled amounts through 2029 ranging from $1.9 billion to $4.8 billion and averaging $3.2 billion per year.
|
68
|
Wells Fargo & Company
|
|
•
|
the full and timely collection of interest or principal becomes uncertain (generally based on an assessment of the borrower’s financial condition and the adequacy of collateral, if any), such as in bankruptcy or other circumstances;
|
•
|
they are 90 days (120 days with respect to real estate 1-4 family mortgages) past due for interest or principal, unless both well-secured and in the process of collection;
|
•
|
part of the principal balance has been charged off; or
|
•
|
for junior lien mortgages, we have evidence that the related first lien mortgage may be 120 days past due or in the process of foreclosure regardless of the junior lien delinquency status.
|
|
|
December 31,
|
|
|||||||||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
$
|
1,545
|
|
|
1,486
|
|
|
1,899
|
|
|
3,199
|
|
|
1,363
|
|
Real estate mortgage
|
|
573
|
|
|
580
|
|
|
628
|
|
|
685
|
|
|
969
|
|
|
Real estate construction
|
|
41
|
|
|
32
|
|
|
37
|
|
|
43
|
|
|
66
|
|
|
Lease financing
|
|
95
|
|
|
90
|
|
|
76
|
|
|
115
|
|
|
26
|
|
|
Total commercial
|
|
2,254
|
|
|
2,188
|
|
|
2,640
|
|
|
4,042
|
|
|
2,424
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage (1)
|
|
2,150
|
|
|
3,183
|
|
|
3,732
|
|
|
4,516
|
|
|
6,829
|
|
|
Real estate 1-4 family junior lien mortgage (1)
|
|
796
|
|
|
945
|
|
|
1,086
|
|
|
1,206
|
|
|
1,495
|
|
|
Automobile
|
|
106
|
|
|
130
|
|
|
130
|
|
|
106
|
|
|
121
|
|
|
Other revolving credit and installment
|
|
40
|
|
|
50
|
|
|
58
|
|
|
51
|
|
|
49
|
|
|
Total consumer
|
|
3,092
|
|
|
4,308
|
|
|
5,006
|
|
|
5,879
|
|
|
8,494
|
|
|
Total nonaccrual loans (2)(3)
|
|
$
|
5,346
|
|
|
6,496
|
|
|
7,646
|
|
|
9,921
|
|
|
10,918
|
|
As a percentage of total loans
|
|
0.56
|
%
|
|
0.68
|
|
|
0.80
|
|
|
1.03
|
|
|
1.19
|
|
|
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
||||||
Government insured/guaranteed (4)
|
|
$
|
50
|
|
|
88
|
|
|
120
|
|
|
197
|
|
|
446
|
|
Non-government insured/guaranteed
|
|
253
|
|
|
363
|
|
|
522
|
|
|
781
|
|
|
979
|
|
|
Total foreclosed assets
|
|
303
|
|
|
451
|
|
|
642
|
|
|
978
|
|
|
1,425
|
|
|
Total nonperforming assets
|
|
$
|
5,649
|
|
|
6,947
|
|
|
8,288
|
|
|
10,899
|
|
|
12,343
|
|
As a percentage of total loans
|
|
0.59
|
%
|
|
0.73
|
|
|
0.87
|
|
|
1.13
|
|
|
1.35
|
|
(1)
|
Real estate 1-4 family mortgage loans predominantly insured by the FHA or guaranteed by the VA are not placed on nonaccrual status because they are insured or guaranteed.
|
(2)
|
Financial information for periods prior to December 31, 2018, has been revised to exclude mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value of $390 million, $463 million, and $464 million at December 31, 2017, 2016, and 2015, respectively.
|
(3)
|
Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
|
(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. Receivables related to the foreclosure of certain government guaranteed real estate mortgage loans are excluded from this table and included in Accounts Receivable in Other Assets. For more information on the classification of certain government-guaranteed mortgage loans upon foreclosure, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report.
|
|
Wells Fargo & Company
|
69
|
|
|
December 31, 2019
|
|
|
September 30, 2019
|
|
|
June 30, 2019
|
|
|
March 31, 2019
|
|
||||||||||||||||
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
||||||||
|
|
|
|
total
|
|
|
|
|
total
|
|
|
|
|
total
|
|
|
|
|
total
|
|
||||||||
(in millions)
|
|
Balance
|
|
|
loans
|
|
|
Balance
|
|
|
loans
|
|
|
Balance
|
|
|
loans
|
|
|
Balance
|
|
|
loans
|
|
||||
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
$
|
1,545
|
|
|
0.44
|
%
|
|
$
|
1,539
|
|
|
0.44
|
%
|
|
$
|
1,634
|
|
|
0.47
|
%
|
|
$
|
1,986
|
|
|
0.57
|
%
|
Real estate mortgage
|
|
573
|
|
|
0.47
|
|
|
669
|
|
|
0.55
|
|
|
737
|
|
|
0.60
|
|
|
699
|
|
|
0.57
|
|
||||
Real estate construction
|
|
41
|
|
|
0.21
|
|
|
32
|
|
|
0.16
|
|
|
36
|
|
|
0.17
|
|
|
36
|
|
|
0.16
|
|
||||
Lease financing
|
|
95
|
|
|
0.48
|
|
|
72
|
|
|
0.37
|
|
|
63
|
|
|
0.33
|
|
|
76
|
|
|
0.40
|
|
||||
Total commercial
|
|
2,254
|
|
|
0.44
|
|
|
2,312
|
|
|
0.45
|
|
|
2,470
|
|
|
0.48
|
|
|
2,797
|
|
|
0.55
|
|
||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Real estate 1-4 family first mortgage (1)
|
|
2,150
|
|
|
0.73
|
|
|
2,261
|
|
|
0.78
|
|
|
2,425
|
|
|
0.85
|
|
|
3,026
|
|
|
1.06
|
|
||||
Real estate 1-4 family junior lien mortgage (1)
|
|
796
|
|
|
2.70
|
|
|
819
|
|
|
2.66
|
|
|
868
|
|
|
2.71
|
|
|
916
|
|
|
2.77
|
|
||||
Automobile
|
|
106
|
|
|
0.22
|
|
|
110
|
|
|
0.24
|
|
|
115
|
|
|
0.25
|
|
|
116
|
|
|
0.26
|
|
||||
Other revolving credit and installment
|
|
40
|
|
|
0.12
|
|
|
43
|
|
|
0.12
|
|
|
44
|
|
|
0.13
|
|
|
50
|
|
|
0.14
|
|
||||
Total consumer
|
|
3,092
|
|
|
0.69
|
|
|
3,233
|
|
|
0.73
|
|
|
3,452
|
|
|
0.79
|
|
|
4,108
|
|
|
0.94
|
|
||||
Total nonaccrual loans (2)
|
|
5,346
|
|
|
0.56
|
|
|
5,545
|
|
|
0.58
|
|
|
5,922
|
|
|
0.62
|
|
|
6,905
|
|
|
0.73
|
|
||||
Foreclosed assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Government insured/guaranteed (3)
|
|
50
|
|
|
|
|
59
|
|
|
|
|
68
|
|
|
|
|
75
|
|
|
|
||||||||
Non-government insured/guaranteed
|
|
253
|
|
|
|
|
378
|
|
|
|
|
309
|
|
|
|
|
361
|
|
|
|
||||||||
Total foreclosed assets
|
|
303
|
|
|
|
|
437
|
|
|
|
|
377
|
|
|
|
|
436
|
|
|
|
||||||||
Total nonperforming assets
|
|
$
|
5,649
|
|
|
0.59
|
%
|
|
$
|
5,982
|
|
|
0.63
|
%
|
|
$
|
6,299
|
|
|
0.66
|
%
|
|
$
|
7,341
|
|
|
0.77
|
%
|
Change in NPAs from prior quarter
|
|
$
|
(333
|
)
|
|
|
|
(317
|
)
|
|
|
|
(1,042
|
)
|
|
|
|
394
|
|
|
|
(1)
|
Real estate 1-4 family mortgage loans predominantly insured by the FHA or guaranteed by the VA are not placed on nonaccrual status because they are insured or guaranteed.
|
(2)
|
Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
|
(3)
|
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. Receivables related to the foreclosure of certain government guaranteed real estate mortgage loans are excluded from this table and included in Accounts Receivable in Other Assets. For more information on the classification of certain government-guaranteed residential mortgage loans upon foreclosure, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in this Report.
|
70
|
Wells Fargo & Company
|
|
|
Quarter ended
|
|
|
|
|
|
||||||||||||
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Year ended Dec 31,
|
|
||||
(in millions)
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2018
|
|
|
Commercial nonaccrual loans
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period
|
$
|
2,312
|
|
|
2,470
|
|
|
2,797
|
|
|
2,188
|
|
|
2,188
|
|
|
2,640
|
|
Inflows
|
652
|
|
|
710
|
|
|
621
|
|
|
1,238
|
|
|
3,221
|
|
|
2,767
|
|
|
Outflows:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Returned to accruing
|
(124
|
)
|
|
(52
|
)
|
|
(46
|
)
|
|
(43
|
)
|
|
(265
|
)
|
|
(323
|
)
|
|
Foreclosures
|
—
|
|
|
(78
|
)
|
|
(2
|
)
|
|
(15
|
)
|
|
(95
|
)
|
|
(12
|
)
|
|
Charge-offs
|
(201
|
)
|
|
(194
|
)
|
|
(187
|
)
|
|
(158
|
)
|
|
(740
|
)
|
|
(636
|
)
|
|
Payments, sales and other
|
(385
|
)
|
|
(544
|
)
|
|
(713
|
)
|
|
(413
|
)
|
|
(2,055
|
)
|
|
(2,248
|
)
|
|
Total outflows
|
(710
|
)
|
|
(868
|
)
|
|
(948
|
)
|
|
(629
|
)
|
|
(3,155
|
)
|
|
(3,219
|
)
|
|
Balance, end of period
|
2,254
|
|
|
2,312
|
|
|
2,470
|
|
|
2,797
|
|
|
2,254
|
|
|
2,188
|
|
|
Consumer nonaccrual loans
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period
|
3,233
|
|
|
3,452
|
|
|
4,108
|
|
|
4,308
|
|
|
4,308
|
|
|
5,006
|
|
|
Inflows
|
473
|
|
|
448
|
|
|
437
|
|
|
552
|
|
|
1,910
|
|
|
2,433
|
|
|
Outflows:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Returned to accruing
|
(227
|
)
|
|
(274
|
)
|
|
(250
|
)
|
|
(248
|
)
|
|
(999
|
)
|
|
(1,304
|
)
|
|
Foreclosures
|
(29
|
)
|
|
(32
|
)
|
|
(34
|
)
|
|
(42
|
)
|
|
(137
|
)
|
|
(166
|
)
|
|
Charge-offs
|
(45
|
)
|
|
(44
|
)
|
|
(34
|
)
|
|
(49
|
)
|
|
(172
|
)
|
|
(292
|
)
|
|
Payments, sales and other
|
(313
|
)
|
|
(317
|
)
|
|
(775
|
)
|
|
(413
|
)
|
|
(1,818
|
)
|
|
(1,369
|
)
|
|
Total outflows
|
(614
|
)
|
|
(667
|
)
|
|
(1,093
|
)
|
|
(752
|
)
|
|
(3,126
|
)
|
|
(3,131
|
)
|
|
Balance, end of period
|
3,092
|
|
|
3,233
|
|
|
3,452
|
|
|
4,108
|
|
|
3,092
|
|
|
4,308
|
|
|
Total nonaccrual loans
|
$
|
5,346
|
|
|
5,545
|
|
|
5,922
|
|
|
6,905
|
|
|
5,346
|
|
|
6,496
|
|
•
|
86% of total commercial nonaccrual loans and 99% of total consumer nonaccrual loans are secured. Of the consumer nonaccrual loans, 95% are secured by real estate and 88% have a combined LTV (CLTV) ratio of 80% or less.
|
•
|
losses of $360 million and $941 million have already been recognized on 19% of commercial nonaccrual loans and 35% of consumer nonaccrual loans, respectively, in accordance with our charge-off policies. Once we write down loans to the net realizable value (fair value of collateral less estimated costs to sell), we re-evaluate each loan regularly and record additional write-downs if needed.
|
•
|
71% of commercial nonaccrual loans were current on interest and 66% of commercial nonaccrual loans were current on both principal and interest. These commercial loans were on nonaccrual status because the full or timely collection of interest or principal had become uncertain.
|
•
|
of the $1.3 billion of consumer loans in bankruptcy or discharged in bankruptcy, and classified as nonaccrual, $916 million were current.
|
•
|
the remaining risk of loss of all nonaccrual loans has been considered and we believe is adequately covered by the allowance for loan losses.
|
|
Wells Fargo & Company
|
71
|
|
Quarter ended
|
|
|
|
|
|
||||||||||||
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Year ended Dec 31,
|
|
||||
(in millions)
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
2018
|
|
|
Summary by loan segment
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Government insured/guaranteed
|
$
|
50
|
|
|
59
|
|
|
68
|
|
|
75
|
|
|
50
|
|
|
88
|
|
Commercial
|
62
|
|
|
180
|
|
|
101
|
|
|
124
|
|
|
62
|
|
|
127
|
|
|
Consumer
|
191
|
|
|
198
|
|
|
208
|
|
|
237
|
|
|
191
|
|
|
236
|
|
|
Total foreclosed assets
|
303
|
|
|
437
|
|
|
377
|
|
|
436
|
|
|
303
|
|
|
451
|
|
|
Analysis of changes in foreclosed assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period
|
$
|
437
|
|
|
377
|
|
|
436
|
|
|
451
|
|
|
451
|
|
|
642
|
|
Net change in government insured/guaranteed (1)
|
(9
|
)
|
|
(9
|
)
|
|
(7
|
)
|
|
(13
|
)
|
|
(38
|
)
|
|
(32
|
)
|
|
Additions to foreclosed assets (2)
|
126
|
|
|
235
|
|
|
144
|
|
|
193
|
|
|
698
|
|
|
778
|
|
|
Reductions:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sales
|
(250
|
)
|
|
(155
|
)
|
|
(199
|
)
|
|
(205
|
)
|
|
(809
|
)
|
|
(957
|
)
|
|
Write-downs and gains (losses) on sales
|
(1
|
)
|
|
(11
|
)
|
|
3
|
|
|
10
|
|
|
1
|
|
|
20
|
|
|
Total reductions
|
(251
|
)
|
|
(166
|
)
|
|
(196
|
)
|
|
(195
|
)
|
|
(808
|
)
|
|
(937
|
)
|
|
Balance, end of period
|
$
|
303
|
|
|
437
|
|
|
377
|
|
|
436
|
|
|
303
|
|
|
451
|
|
(1)
|
Foreclosed government insured/guaranteed loans are temporarily transferred to and held by us as servicer, until reimbursement is received from FHA or VA.
|
(2)
|
Includes loans moved into foreclosed assets from nonaccrual status, PCI loans transitioned directly to foreclosed assets and repossessed automobiles.
|
72
|
Wells Fargo & Company
|
|
|
December 31,
|
|
|||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
1,183
|
|
|
1,623
|
|
|
2,096
|
|
|
2,584
|
|
|
1,123
|
|
Real estate mortgage
|
669
|
|
|
704
|
|
|
901
|
|
|
1,119
|
|
|
1,456
|
|
|
Real estate construction
|
36
|
|
|
39
|
|
|
44
|
|
|
91
|
|
|
125
|
|
|
Lease financing
|
13
|
|
|
56
|
|
|
35
|
|
|
6
|
|
|
1
|
|
|
Total commercial TDRs
|
1,901
|
|
|
2,422
|
|
|
3,076
|
|
|
3,800
|
|
|
2,705
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage
|
7,589
|
|
|
10,629
|
|
|
12,080
|
|
|
14,134
|
|
|
16,812
|
|
|
Real estate 1-4 family junior lien mortgage
|
1,407
|
|
|
1,639
|
|
|
1,849
|
|
|
2,074
|
|
|
2,306
|
|
|
Credit card
|
520
|
|
|
449
|
|
|
356
|
|
|
300
|
|
|
299
|
|
|
Automobile
|
81
|
|
|
89
|
|
|
87
|
|
|
85
|
|
|
105
|
|
|
Other revolving credit and installment
|
170
|
|
|
154
|
|
|
126
|
|
|
101
|
|
|
73
|
|
|
Trial modifications
|
115
|
|
|
149
|
|
|
194
|
|
|
299
|
|
|
402
|
|
|
Total consumer TDRs
|
9,882
|
|
|
13,109
|
|
|
14,692
|
|
|
16,993
|
|
|
19,997
|
|
|
Total TDRs
|
$
|
11,783
|
|
|
15,531
|
|
|
17,768
|
|
|
20,793
|
|
|
22,702
|
|
TDRs on nonaccrual status
|
$
|
2,833
|
|
|
4,058
|
|
|
4,801
|
|
|
6,193
|
|
|
6,506
|
|
TDRs on accrual status:
|
|
|
|
|
|
|
|
|
|
||||||
Government insured/guaranteed
|
1,190
|
|
|
1,299
|
|
|
1,359
|
|
|
1,526
|
|
|
1,771
|
|
|
Non-government insured/guaranteed
|
7,760
|
|
|
10,174
|
|
|
11,608
|
|
|
13,074
|
|
|
14,425
|
|
|
Total TDRs
|
$
|
11,783
|
|
|
15,531
|
|
|
17,768
|
|
|
20,793
|
|
|
22,702
|
|
(in millions)
|
Dec 31,
2019 |
|
|
Sep 30,
2019 |
|
|
Jun 30,
2019 |
|
|
Mar 31,
2019 |
|
|
Commercial:
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
$
|
1,183
|
|
|
1,162
|
|
|
1,294
|
|
|
1,740
|
|
Real estate mortgage
|
669
|
|
|
598
|
|
|
620
|
|
|
681
|
|
|
Real estate construction
|
36
|
|
|
40
|
|
|
43
|
|
|
45
|
|
|
Lease financing
|
13
|
|
|
16
|
|
|
31
|
|
|
46
|
|
|
Total commercial TDRs
|
1,901
|
|
|
1,816
|
|
|
1,988
|
|
|
2,512
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|||||
Real estate 1-4 family first mortgage
|
7,589
|
|
|
7,905
|
|
|
8,218
|
|
|
10,343
|
|
|
Real estate 1-4 family junior lien mortgage
|
1,407
|
|
|
1,457
|
|
|
1,550
|
|
|
1,604
|
|
|
Credit card
|
520
|
|
|
504
|
|
|
486
|
|
|
473
|
|
|
Automobile
|
81
|
|
|
82
|
|
|
85
|
|
|
85
|
|
|
Other revolving credit and installment
|
170
|
|
|
167
|
|
|
159
|
|
|
156
|
|
|
Trial modifications
|
115
|
|
|
123
|
|
|
127
|
|
|
136
|
|
|
Total consumer TDRs
|
9,882
|
|
|
10,238
|
|
|
10,625
|
|
|
12,797
|
|
|
Total TDRs
|
$
|
11,783
|
|
|
12,054
|
|
|
12,613
|
|
|
15,309
|
|
TDRs on nonaccrual status
|
$
|
2,833
|
|
|
2,775
|
|
|
3,058
|
|
|
4,037
|
|
TDRs on accrual status:
|
|
|
|
|
|
|
|
|||||
Government insured/guaranteed
|
1,190
|
|
|
1,199
|
|
|
1,209
|
|
|
1,275
|
|
|
Non-government insured/guaranteed
|
7,760
|
|
|
8,080
|
|
|
8,346
|
|
|
9,997
|
|
|
Total TDRs
|
$
|
11,783
|
|
|
12,054
|
|
|
12,613
|
|
|
15,309
|
|
|
Wells Fargo & Company
|
73
|
|
|
|
|
|
Quarter ended
|
|
|
Year ended Dec 31,
|
|
|||||||||
(in millions)
|
Dec 31,
2019 |
|
|
Sep 30,
2019 |
|
|
Jun 30,
2019 |
|
|
Mar 31,
2019 |
|
|
2019
|
|
|
2018
|
|
|
Commercial TDRs
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period
|
$
|
1,816
|
|
|
1,988
|
|
|
2,512
|
|
|
2,422
|
|
|
2,422
|
|
|
3,076
|
|
Inflows (1)
|
476
|
|
|
293
|
|
|
232
|
|
|
539
|
|
|
1,540
|
|
|
1,764
|
|
|
Outflows
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Charge-offs
|
(48
|
)
|
|
(66
|
)
|
|
(37
|
)
|
|
(44
|
)
|
|
(195
|
)
|
|
(284
|
)
|
|
Foreclosure
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(15
|
)
|
|
Payments, sales and other (2)
|
(342
|
)
|
|
(399
|
)
|
|
(719
|
)
|
|
(405
|
)
|
|
(1,865
|
)
|
|
(2,119
|
)
|
|
Balance, end of period
|
1,901
|
|
|
1,816
|
|
|
1,988
|
|
|
2,512
|
|
|
1,901
|
|
|
2,422
|
|
|
Consumer TDRs
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period
|
10,238
|
|
|
10,625
|
|
|
12,797
|
|
|
13,109
|
|
|
13,109
|
|
|
14,692
|
|
|
Inflows (1)
|
350
|
|
|
360
|
|
|
336
|
|
|
439
|
|
|
1,485
|
|
|
1,747
|
|
|
Outflows
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Charge-offs
|
(57
|
)
|
|
(56
|
)
|
|
(61
|
)
|
|
(60
|
)
|
|
(234
|
)
|
|
(223
|
)
|
|
Foreclosure
|
(61
|
)
|
|
(70
|
)
|
|
(74
|
)
|
|
(86
|
)
|
|
(290
|
)
|
|
(470
|
)
|
|
Payments, sales and other (2)
|
(580
|
)
|
|
(617
|
)
|
|
(2,364
|
)
|
|
(593
|
)
|
|
(4,154
|
)
|
|
(2,591
|
)
|
|
Net change in trial modifications (3)
|
(8
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(12
|
)
|
|
(34
|
)
|
|
(46
|
)
|
|
Balance, end of period
|
9,882
|
|
|
10,238
|
|
|
10,625
|
|
|
12,797
|
|
|
9,882
|
|
|
13,109
|
|
|
Total TDRs
|
$
|
11,783
|
|
|
12,054
|
|
|
12,613
|
|
|
15,309
|
|
|
11,783
|
|
|
15,531
|
|
(1)
|
Inflows include loans that modify, even if they resolve within the period, as well as gross advances on term loans that modified in a prior period and net advances on revolving TDRs that modified in a prior period.
|
(2)
|
Other outflows include normal amortization/accretion of loan basis adjustments and loans transferred to held for sale. Occasionally, loans that have been refinanced or restructured at market terms qualify as new loans, which are also included as other outflows.
|
(3)
|
Net change in trial modifications includes: inflows of new TDRs entering the trial payment period, net of outflows for modifications that either (i) successfully perform and enter into a permanent modification, or (ii) did not successfully perform according to the terms of the trial period plan and are subsequently charged-off, foreclosed upon or otherwise resolved.
|
74
|
Wells Fargo & Company
|
|
|
|
|
December 31,
|
|
|||||||||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
||
Total (excluding PCI (2)):
|
|
$
|
7,285
|
|
|
8,704
|
|
|
11,532
|
|
|
11,437
|
|
|
13,866
|
|
|
|
Less: FHA insured/VA guaranteed (3)
|
|
6,352
|
|
|
7,725
|
|
|
10,475
|
|
|
10,467
|
|
|
12,863
|
|
|
|
Less: Student loans guaranteed under the FFELP (4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
26
|
|
|
|
Total, not government insured/guaranteed
|
|
$
|
933
|
|
|
979
|
|
|
1,057
|
|
|
967
|
|
|
977
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commercial and industrial
|
|
$
|
47
|
|
|
43
|
|
|
26
|
|
|
28
|
|
|
97
|
|
|
Real estate mortgage
|
|
31
|
|
|
51
|
|
|
23
|
|
|
36
|
|
|
13
|
|
|
|
Real estate construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
Total commercial
|
|
78
|
|
|
94
|
|
|
49
|
|
|
64
|
|
|
114
|
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Real estate 1-4 family first mortgage
|
|
112
|
|
|
124
|
|
|
213
|
|
|
170
|
|
|
220
|
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
32
|
|
|
32
|
|
|
60
|
|
|
56
|
|
|
65
|
|
|
|
Credit card
|
|
546
|
|
|
513
|
|
|
492
|
|
|
452
|
|
|
397
|
|
|
|
Automobile
|
|
78
|
|
|
114
|
|
|
143
|
|
|
112
|
|
|
79
|
|
|
|
Other revolving credit and installment
|
|
87
|
|
|
102
|
|
|
100
|
|
|
113
|
|
|
102
|
|
|
|
Total consumer
|
|
855
|
|
|
885
|
|
|
1,008
|
|
|
903
|
|
|
863
|
|
|
|
Total, not government insured/guaranteed
|
|
$
|
933
|
|
|
979
|
|
|
1,057
|
|
|
967
|
|
|
977
|
|
(1)
|
Financial information for periods prior to December 31, 2018, has been revised to exclude MLHFS, LHFS and loans held at fair value, which reduced “Total, not government insured/guaranteed” by $6 million, $5 million and $4 million at December 31, 2017, 2016 and 2015, respectively.
|
(2)
|
PCI loans totaled $102 million, $370 million, $1.4 billion, $2.0 billion and $2.9 billion at December 31, 2019, 2018, 2017, 2016 and 2015, respectively.
|
(3)
|
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
|
(4)
|
Represents loans whose repayments are largely guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP). All remaining student loans guaranteed under the FFELP were sold as of March 31, 2017.
|
|
Wells Fargo & Company
|
75
|
|
|
|
Year ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|||||||||||||||||
|
|
|
December 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
||||||||||||||||||||
|
|
|
Net loan
|
|
|
% of
|
|
|
Net loan
|
|
|
% of
|
|
|
Net loan
|
|
|
% of
|
|
|
Net loan
|
|
|
% of
|
|
|
Net loan
|
|
|
% of
|
|
|||||
|
|
|
charge-
|
|
|
avg.
|
|
|
charge-
|
|
|
avg.
|
|
|
charge-
|
|
|
avg.
|
|
|
charge-
|
|
|
avg.
|
|
|
charge-
|
|
|
avg.
|
|
|||||
($ in millions)
|
|
offs
|
|
|
loans
|
|
|
offs
|
|
|
loans (1)
|
|
|
offs
|
|
|
loans (1)
|
|
|
offs
|
|
|
loans (1)
|
|
|
offs
|
|
|
loans (1)
|
|
||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Commercial and industrial
|
|
$
|
607
|
|
|
0.17
|
%
|
|
$
|
168
|
|
|
0.19
|
%
|
|
$
|
147
|
|
|
0.17
|
%
|
|
$
|
159
|
|
|
0.18
|
%
|
|
$
|
133
|
|
|
0.15
|
%
|
|
Real estate mortgage
|
|
6
|
|
|
—
|
|
|
4
|
|
|
0.01
|
|
|
(8
|
)
|
|
(0.02
|
)
|
|
4
|
|
|
0.01
|
|
|
6
|
|
|
0.02
|
|
|||||
|
Real estate construction
|
|
(12
|
)
|
|
(0.06
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
(0.14
|
)
|
|
(2
|
)
|
|
(0.04
|
)
|
|
(2
|
)
|
|
(0.04
|
)
|
|||||
|
Lease financing
|
|
51
|
|
|
0.26
|
|
|
31
|
|
|
0.63
|
|
|
8
|
|
|
0.17
|
|
|
4
|
|
|
0.09
|
|
|
8
|
|
|
0.17
|
|
|||||
Total commercial
|
|
652
|
|
|
0.13
|
|
|
203
|
|
|
0.16
|
|
|
139
|
|
|
0.11
|
|
|
165
|
|
|
0.13
|
|
|
145
|
|
|
0.11
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Real estate 1-4 family first mortgage
|
|
(50
|
)
|
|
(0.02
|
)
|
|
(3
|
)
|
|
—
|
|
|
(5
|
)
|
|
(0.01
|
)
|
|
(30
|
)
|
|
(0.04
|
)
|
|
(12
|
)
|
|
(0.02
|
)
|
|||||
|
Real estate 1-4 family junior lien mortgage
|
|
(66
|
)
|
|
(0.21
|
)
|
|
(16
|
)
|
|
(0.20
|
)
|
|
(22
|
)
|
|
(0.28
|
)
|
|
(19
|
)
|
|
(0.24
|
)
|
|
(9
|
)
|
|
(0.10
|
)
|
|||||
|
Credit card
|
|
1,370
|
|
|
3.53
|
|
|
350
|
|
|
3.48
|
|
|
319
|
|
|
3.22
|
|
|
349
|
|
|
3.68
|
|
|
352
|
|
|
3.73
|
|
|||||
|
Automobile
|
|
306
|
|
|
0.67
|
|
|
87
|
|
|
0.73
|
|
|
76
|
|
|
0.65
|
|
|
52
|
|
|
0.46
|
|
|
91
|
|
|
0.82
|
|
|||||
|
Other revolving credit and installment
|
|
550
|
|
|
1.59
|
|
|
148
|
|
|
1.71
|
|
|
138
|
|
|
1.60
|
|
|
136
|
|
|
1.56
|
|
|
128
|
|
|
1.47
|
|
|||||
Total consumer
|
|
2,110
|
|
|
0.48
|
|
|
566
|
|
|
0.51
|
|
|
506
|
|
|
0.46
|
|
|
488
|
|
|
0.45
|
|
|
550
|
|
|
0.51
|
|
||||||
|
Total
|
|
$
|
2,762
|
|
|
0.29
|
%
|
|
$
|
769
|
|
|
0.32
|
%
|
|
$
|
645
|
|
|
0.27
|
%
|
|
$
|
653
|
|
|
0.28
|
%
|
|
$
|
695
|
|
|
0.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Commercial and industrial
|
|
$
|
423
|
|
|
0.13
|
%
|
|
$
|
132
|
|
|
0.15
|
%
|
|
$
|
148
|
|
|
0.18
|
%
|
|
$
|
58
|
|
|
0.07
|
%
|
|
$
|
85
|
|
|
0.10
|
%
|
|
Real estate mortgage
|
|
(28
|
)
|
|
(0.02
|
)
|
|
(12
|
)
|
|
(0.04
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(0.05
|
)
|
|||||
|
Real estate construction
|
|
(13
|
)
|
|
(0.05
|
)
|
|
(1
|
)
|
|
(0.01
|
)
|
|
(2
|
)
|
|
(0.04
|
)
|
|
(6
|
)
|
|
(0.09
|
)
|
|
(4
|
)
|
|
(0.07
|
)
|
|||||
|
Lease financing
|
|
47
|
|
|
0.24
|
|
|
13
|
|
|
0.26
|
|
|
7
|
|
|
0.14
|
|
|
15
|
|
|
0.32
|
|
|
12
|
|
|
0.25
|
|
|||||
Total commercial
|
|
429
|
|
|
0.09
|
|
|
132
|
|
|
0.10
|
|
|
152
|
|
|
0.12
|
|
|
67
|
|
|
0.05
|
|
|
78
|
|
|
0.06
|
|
||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Real estate 1-4 family first mortgage
|
|
(88
|
)
|
|
(0.03
|
)
|
|
(22
|
)
|
|
(0.03
|
)
|
|
(25
|
)
|
|
(0.04
|
)
|
|
(23
|
)
|
|
(0.03
|
)
|
|
(18
|
)
|
|
(0.03
|
)
|
|||||
|
Real estate 1-4 family junior lien mortgage
|
|
(40
|
)
|
|
(0.11
|
)
|
|
(10
|
)
|
|
(0.11
|
)
|
|
(9
|
)
|
|
(0.10
|
)
|
|
(13
|
)
|
|
(0.13
|
)
|
|
(8
|
)
|
|
(0.09
|
)
|
|||||
|
Credit card
|
|
1,292
|
|
|
3.51
|
|
|
338
|
|
|
3.54
|
|
|
299
|
|
|
3.22
|
|
|
323
|
|
|
3.61
|
|
|
332
|
|
|
3.69
|
|
|||||
|
Automobile
|
|
584
|
|
|
1.21
|
|
|
133
|
|
|
1.16
|
|
|
130
|
|
|
1.10
|
|
|
113
|
|
|
0.93
|
|
|
208
|
|
|
1.64
|
|
|||||
|
Other revolving credit and installment
|
|
567
|
|
|
1.53
|
|
|
150
|
|
|
1.64
|
|
|
133
|
|
|
1.44
|
|
|
135
|
|
|
1.44
|
|
|
149
|
|
|
1.60
|
|
|||||
Total consumer
|
|
2,315
|
|
|
0.52
|
|
|
589
|
|
|
0.53
|
|
|
528
|
|
|
0.47
|
|
|
535
|
|
|
0.49
|
|
|
663
|
|
|
0.60
|
|
||||||
|
Total
|
|
$
|
2,744
|
|
|
0.29
|
%
|
|
$
|
721
|
|
|
0.30
|
%
|
|
$
|
680
|
|
|
0.29
|
%
|
|
$
|
602
|
|
|
0.26
|
%
|
|
$
|
741
|
|
|
0.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Quarterly net charge-offs (recoveries) as a percentage of average respective loans are annualized.
|
76
|
Wells Fargo & Company
|
|
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 31, 2016
|
|
|
Dec 31, 2015
|
|
||||||||||||||||||||
|
Loans
|
|
|
Loans
|
|
|
Loans
|
|
|
Loans
|
|
|
Loans
|
|
||||||||||||||||||||
|
|
|
as %
|
|
|
|
|
as %
|
|
|
|
|
as %
|
|
|
|
|
as %
|
|
|
|
|
as %
|
|
||||||||||
|
|
of total
|
|
|
|
of total
|
|
|
|
of total
|
|
|
|
of total
|
|
|
|
of total
|
|
|||||||||||||||
(in millions)
|
ACL
|
|
|
loans
|
|
|
ACL
|
|
|
loans
|
|
|
ACL
|
|
|
loans
|
|
|
ACL
|
|
|
loans
|
|
|
ACL
|
|
|
loans
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial and industrial
|
$
|
3,600
|
|
|
37
|
%
|
|
$
|
3,628
|
|
|
37
|
%
|
|
$
|
3,752
|
|
|
35
|
%
|
|
$
|
4,560
|
|
|
34
|
%
|
|
$
|
4,231
|
|
|
33
|
%
|
Real estate mortgage
|
1,236
|
|
|
13
|
|
|
1,282
|
|
|
13
|
|
|
1,374
|
|
|
13
|
|
|
1,320
|
|
|
14
|
|
|
1,264
|
|
|
13
|
|
|||||
Real estate construction
|
1,079
|
|
|
2
|
|
|
1,200
|
|
|
2
|
|
|
1,238
|
|
|
3
|
|
|
1,294
|
|
|
2
|
|
|
1,210
|
|
|
3
|
|
|||||
Lease financing
|
330
|
|
|
2
|
|
|
307
|
|
|
2
|
|
|
268
|
|
|
2
|
|
|
220
|
|
|
2
|
|
|
167
|
|
|
1
|
|
|||||
Total commercial
|
6,245
|
|
|
54
|
|
|
6,417
|
|
|
54
|
|
|
6,632
|
|
|
53
|
|
|
7,394
|
|
|
52
|
|
|
6,872
|
|
|
50
|
|
|||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Real estate 1-4 family first mortgage
|
692
|
|
|
30
|
|
|
750
|
|
|
30
|
|
|
1,085
|
|
|
30
|
|
|
1,270
|
|
|
29
|
|
|
1,895
|
|
|
30
|
|
|||||
Real estate 1-4 family junior lien mortgage
|
247
|
|
|
3
|
|
|
431
|
|
|
3
|
|
|
608
|
|
|
4
|
|
|
815
|
|
|
5
|
|
|
1,223
|
|
|
6
|
|
|||||
Credit card
|
2,252
|
|
|
4
|
|
|
2,064
|
|
|
4
|
|
|
1,944
|
|
|
4
|
|
|
1,605
|
|
|
4
|
|
|
1,412
|
|
|
4
|
|
|||||
Automobile
|
459
|
|
|
5
|
|
|
475
|
|
|
5
|
|
|
1,039
|
|
|
5
|
|
|
817
|
|
|
6
|
|
|
529
|
|
|
6
|
|
|||||
Other revolving credit and installment
|
561
|
|
|
4
|
|
|
570
|
|
|
4
|
|
|
652
|
|
|
4
|
|
|
639
|
|
|
4
|
|
|
581
|
|
|
4
|
|
|||||
Total consumer
|
4,211
|
|
|
46
|
|
|
4,290
|
|
|
46
|
|
|
5,328
|
|
|
47
|
|
|
5,146
|
|
|
48
|
|
|
5,640
|
|
|
50
|
|
|||||
Total
|
$
|
10,456
|
|
|
100
|
%
|
|
$
|
10,707
|
|
|
100
|
%
|
|
$
|
11,960
|
|
|
100
|
%
|
|
$
|
12,540
|
|
|
100
|
%
|
|
$
|
12,512
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Dec 31, 2017
|
|
|
Dec 31, 2016
|
|
|
Dec 31, 2015
|
|
||||||||||||||||||||
Components:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Allowance for loan losses
|
$
|
9,551
|
|
|
9,775
|
|
|
11,004
|
|
|
11,419
|
|
|
11,545
|
|
|||||||||||||||||||
Allowance for unfunded credit commitments
|
905
|
|
|
932
|
|
|
956
|
|
|
1,121
|
|
|
967
|
|
||||||||||||||||||||
Allowance for credit losses
|
$
|
10,456
|
|
|
10,707
|
|
|
11,960
|
|
|
12,540
|
|
|
12,512
|
|
|||||||||||||||||||
Allowance for loan losses as a percentage of total loans
|
|
0.99
|
%
|
|
|
1.03
|
|
|
|
1.15
|
|
|
|
1.18
|
|
|
|
1.26
|
|
|||||||||||||||
Allowance for loan losses as a percentage of total net charge-offs
|
|
346
|
|
|
|
356
|
|
|
|
376
|
|
|
|
324
|
|
|
|
399
|
|
|||||||||||||||
Allowance for credit losses as a percentage of total loans
|
|
1.09
|
|
|
|
1.12
|
|
|
|
1.25
|
|
|
|
1.30
|
|
|
|
1.37
|
|
|||||||||||||||
Allowance for credit losses as a percentage of total nonaccrual loans
|
|
196
|
|
|
|
165
|
|
|
|
156
|
|
|
|
126
|
|
|
|
115
|
|
|
Wells Fargo & Company
|
77
|
78
|
Wells Fargo & Company
|
|
•
|
assets and liabilities may mature or reprice at different times (for example, if assets reprice faster than liabilities and interest rates are generally rising, earnings will initially increase);
|
•
|
assets and liabilities may reprice at the same time but by different amounts (for example, when the general level of interest rates is rising, we may increase rates paid on checking and savings deposit accounts by an amount that is less than the general rise in market interest rates);
|
•
|
short-term and long-term market interest rates may change by different amounts (for example, the shape of the yield curve may affect new loan yields and funding costs differently);
|
•
|
the remaining maturity of various assets or liabilities may shorten or lengthen as interest rates change (for example, if long-term mortgage interest rates increase sharply, MBS held in the debt securities portfolio may pay down slower than anticipated, which could impact portfolio income); or
|
•
|
interest rates may also have a direct or indirect effect on loan demand, collateral values, credit losses, mortgage origination volume, the fair value of MSRs and other financial instruments, the value of the pension liability and other items affecting earnings.
|
•
|
Simulations are dynamic and reflect anticipated growth across assets and liabilities.
|
•
|
Other macroeconomic variables that could be correlated with the changes in interest rates are held constant.
|
•
|
Mortgage prepayment and origination assumptions vary across scenarios and reflect only the impact of the higher or lower interest rates.
|
•
|
Our base scenario deposit forecast incorporates mix changes consistent with the base interest rate trajectory. Deposit mix is modeled to be the same as in the base scenario across the alternative scenarios. In higher interest rate scenarios, customer activity that shifts balances into higher-yielding products could reduce expected net interest income.
|
•
|
We hold the size of the projected debt and equity securities portfolios constant across scenarios.
|
|
|
|
Lower Rates
|
|
Higher Rates
|
||
($ in billions)
|
Base
|
|
100 bps
Ramp
Parallel
Decrease
|
|
100 bps Instantaneous
Parallel
Increase
|
|
200 bps
Ramp
Parallel
Increase
|
First Year of Forecasting Horizon
|
|
|
|
|
|
|
|
Net Interest Income Sensitivity to Base Scenario
|
|
$
|
(1.8) - (1.3)
|
|
1.5 - 2.0
|
|
1.1 - 1.6
|
Key Rates at Horizon End
|
|
|
|
|
|
|
|
Fed Funds Target
|
1.87
|
%
|
0.87
|
|
2.87
|
|
3.87
|
10-year CMT (1)
|
1.97
|
|
0.97
|
|
2.97
|
|
3.97
|
Second Year of Forecasting Horizon
|
|
|
|
|
|
|
|
Net Interest Income Sensitivity to Base Scenario
|
|
$
|
(4.4) - (3.9)
|
|
2.0 - 2.5
|
|
2.7 - 3.2
|
Key Rates at Horizon End
|
|
|
|
|
|
|
|
Fed Funds Target
|
2.25
|
%
|
1.25
|
|
3.25
|
|
4.25
|
10-year CMT (1)
|
2.36
|
|
1.36
|
|
3.36
|
|
4.36
|
(1)
|
U.S. Constant Maturity Treasury Rate
|
|
Wells Fargo & Company
|
79
|
•
|
to convert the cash flows from selected asset and/or liability instruments/portfolios including investments, commercial loans and long-term debt, from fixed-rate payments to floating-rate payments, or vice versa; and
|
•
|
to economically hedge our mortgage origination pipeline, funded mortgage loans and MSRs using interest rate swaps, swaptions, futures, forwards and options.
|
80
|
Wells Fargo & Company
|
|
•
|
Valuation changes for MSRs associated with interest rate changes are recorded in earnings immediately within the accounting period in which those interest rate changes occur, whereas the impact of those same changes in interest rates on origination and servicing fees occur with a lag and over time. Thus, the mortgage business could be protected from adverse changes in interest rates over a period of time
|
•
|
The degree to which our net gains on loan originations offsets valuation changes for MSRs is imperfect, varies at different points in the interest rate cycle, and depends not just on the direction of interest rates but on the pattern of quarterly interest rate changes.
|
•
|
Origination volumes, the valuation of MSRs and hedging results and associated costs are also affected by many factors. Such factors include the mix of new business between ARMs and fixed-rate mortgages, the relationship between short-term and long-term interest rates, the degree of volatility in interest rates, the relationship between mortgage interest rates and other interest rate markets, and other interest rate factors. Additional factors that can impact the valuation of the MSRs include changes in servicing and foreclosure costs due to changes in investor or regulatory guidelines, as well as individual state foreclosure legislation, and changes in discount rates due to market participants requiring a higher return due to updated market expectations on costs and risks associated with investing in MSRs. Many of these factors are hard to predict and we may not be able to directly or perfectly hedge their effect.
|
•
|
While our hedging activities are designed to balance our mortgage banking interest rate risks, the financial instruments we use may not perfectly correlate with the values and income being hedged. For example, the change in the value of ARM production held for sale from changes in mortgage interest rates may or may not be fully offset by index-based financial instruments used as economic hedges for such ARMs. Hedge results may also be impacted as the overall level of hedges changes as interest rates change, or as there are other changes in the market for mortgage forwards that may affect the implied carry on the MSRs. For example, the hedge-carry income on our economic hedges for the MSRs did not continue at levels consistent with 2018 as the flat to inverted yield curve resulted in negative hedge carry in 2019.
|
|
Wells Fargo & Company
|
81
|
82
|
Wells Fargo & Company
|
|
|
Year ended
|
|
||||||||||||||||||||||
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||||||||
(in millions)
|
Period
end
|
|
|
Average
|
|
|
Low
|
|
|
High
|
|
|
Period
end
|
|
|
Average
|
|
|
Low
|
|
|
High
|
|
|
Company Trading General VaR Risk Categories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Credit
|
$
|
15
|
|
|
17
|
|
|
11
|
|
|
30
|
|
|
18
|
|
|
16
|
|
|
10
|
|
|
55
|
|
Interest rate
|
14
|
|
|
27
|
|
|
9
|
|
|
49
|
|
|
28
|
|
|
17
|
|
|
6
|
|
|
52
|
|
|
Equity
|
5
|
|
|
5
|
|
|
4
|
|
|
11
|
|
|
5
|
|
|
8
|
|
|
2
|
|
|
16
|
|
|
Commodity
|
2
|
|
|
2
|
|
|
1
|
|
|
6
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
4
|
|
|
Foreign exchange
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
0
|
|
|
3
|
|
|
Diversification benefit (1)
|
(13
|
)
|
|
(30
|
)
|
|
|
|
|
|
|
(33
|
)
|
|
(28
|
)
|
|
|
|
|
||||
Company Trading General VaR
|
$
|
24
|
|
|
22
|
|
|
|
|
|
|
21
|
|
|
15
|
|
|
|
|
|
(1)
|
The period-end VaR was less than the sum of the VaR components described above, which is due to portfolio diversification. The diversification effect arises because the risks are not perfectly correlated causing a portfolio of positions to usually be less risky than the sum of the risks of the positions alone. The diversification benefit is not meaningful for low and high metrics since they may occur on different days.
|
|
Wells Fargo & Company
|
83
|
(in millions, except ratio)
|
Average for Quarter ended December 31, 2019
|
|
||
HQLA (1)(2)
|
$
|
373,362
|
|
|
Projected net cash outflows
|
312,019
|
|
||
LCR
|
|
120
|
%
|
(1)
|
Excludes excess HQLA at Wells Fargo Bank, N.A.
|
(2)
|
Net of applicable haircuts required under the LCR rule.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Total
|
|
|
Encumbered
|
|
|
Unencumbered
|
|
|
Total
|
|
|
Encumbered
|
|
|
Unencumbered
|
|
|
Interest-earning deposits with banks
|
$
|
119,493
|
|
|
—
|
|
|
119,493
|
|
|
149,736
|
|
|
—
|
|
|
149,736
|
|
Debt securities of U.S. Treasury and federal agencies
|
61,099
|
|
|
3,107
|
|
|
57,992
|
|
|
57,688
|
|
|
1,504
|
|
|
56,184
|
|
|
Mortgage-backed securities of federal agencies (1)
|
258,589
|
|
|
41,135
|
|
|
217,454
|
|
|
244,211
|
|
|
35,656
|
|
|
208,555
|
|
|
Total
|
$
|
439,181
|
|
|
44,242
|
|
|
394,939
|
|
|
451,635
|
|
|
37,160
|
|
|
414,475
|
|
(1)
|
Included in encumbered securities at December 31, 2019, were securities with a fair value of $263 million which were purchased in December 2019, but settled in January 2020.
|
84
|
Wells Fargo & Company
|
|
|
Quarter ended
|
|
|||||||||||||
(in millions)
|
Dec 31,
2019 |
|
|
Sep 30,
2019 |
|
|
Jun 30,
2019 |
|
|
Mar 31,
2019 |
|
|
Dec 31,
2018 |
|
|
Balance, period end
|
|
|
|
|
|
|
|
|
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
92,403
|
|
|
110,399
|
|
|
102,560
|
|
|
93,896
|
|
|
92,430
|
|
Other short-term borrowings
|
12,109
|
|
|
13,509
|
|
|
12,784
|
|
|
12,701
|
|
|
13,357
|
|
|
Total
|
$
|
104,512
|
|
|
123,908
|
|
|
115,344
|
|
|
106,597
|
|
|
105,787
|
|
Average daily balance for period
|
|
|
|
|
|
|
|
|
|
||||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
103,614
|
|
|
109,499
|
|
|
102,557
|
|
|
95,721
|
|
|
93,483
|
|
Other short-term borrowings
|
12,335
|
|
|
12,343
|
|
|
12,197
|
|
|
12,930
|
|
|
12,479
|
|
|
Total
|
$
|
115,949
|
|
|
121,842
|
|
|
114,754
|
|
|
108,651
|
|
|
105,962
|
|
Maximum month-end balance for period
|
|
|
|
|
|
|
|
|
|
||||||
Federal funds purchased and securities sold under agreements to repurchase (1)
|
$
|
111,727
|
|
|
110,399
|
|
|
105,098
|
|
|
97,650
|
|
|
93,918
|
|
Other short-term borrowings (2)
|
12,708
|
|
|
13,509
|
|
|
12,784
|
|
|
14,129
|
|
|
13,357
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Highest month-end balance in each of the last five quarters was in October, September, May and January 2019, and November 2018.
|
(2)
|
Highest month-end balance in each of the last five quarters was in October, September, June, and February 2019, and December 2018.
|
|
|
|
Wells Fargo & Company
|
|
Wells Fargo Bank, N.A.
|
||||
|
Senior debt
|
|
Short-term
borrowings
|
|
Long-term
deposits
|
|
Short-term
borrowings
|
||
Moody’s
|
A2
|
|
P-1
|
|
Aa1
|
|
P-1
|
||
S&P Global Ratings
|
A-
|
|
A-2
|
|
A+
|
|
A-1
|
||
Fitch Ratings, Inc.
|
A+
|
|
F1
|
|
AA
|
|
F1+
|
||
DBRS Morningstar
|
AA (low)
|
|
R-1 (middle)
|
|
AA
|
|
R-1 (high)
|
|
Wells Fargo & Company
|
85
|
86
|
Wells Fargo & Company
|
|
Capital Management
|
•
|
a minimum Common Equity Tier 1 (CET1) ratio of 9.00%, comprised of a 4.50% minimum requirement plus a capital conservation buffer of 2.50% and for us, as a global systemically important bank (G-SIB), a capital surcharge of 2.00%;
|
•
|
a minimum tier 1 capital ratio of 10.50%, comprised of a 6.00% minimum requirement plus the capital conservation buffer of 2.50% and the G-SIB capital surcharge of 2.00%;
|
•
|
a minimum total capital ratio of 12.50%, comprised of a 8.00% minimum requirement plus the capital conservation buffer of 2.50% and the G-SIB capital surcharge of 2.00%;
|
•
|
a potential countercyclical buffer of up to 2.50% to be added to the minimum capital ratios, which could be imposed by regulators at their discretion if it is determined that a period of excessive credit growth is contributing to an increase in systemic risk; and
|
•
|
a minimum tier 1 leverage ratio of 4.00%.
|
|
Wells Fargo & Company
|
87
|
(in millions, except ratios)
|
|
|
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
|
||||||||
|
Required Minimum
Capital Ratios
|
|
|
Advanced Approach
|
|
|
Standardized Approach
|
|
|
|
Advanced Approach
|
|
|
Standardized Approach
|
|
|
||
Common Equity Tier 1
|
(A)
|
|
|
$
|
138,760
|
|
|
138,760
|
|
|
|
146,363
|
|
|
146,363
|
|
|
|
Tier 1 Capital
|
(B)
|
|
|
158,949
|
|
|
158,949
|
|
|
|
167,866
|
|
|
167,866
|
|
|
||
Total Capital (2)
|
(C)
|
|
|
187,813
|
|
|
195,703
|
|
|
|
198,103
|
|
|
206,346
|
|
|
||
Risk-Weighted Assets
|
(D)
|
|
|
1,230,066
|
|
|
1,245,853
|
|
|
|
1,177,350
|
|
|
1,247,210
|
|
|
||
Common Equity Tier 1 Capital Ratio
|
(A)/(D)
|
9.00
|
%
|
|
11.28
|
|
|
11.14
|
|
*
|
|
12.43
|
|
|
11.74
|
|
*
|
|
Tier 1 Capital Ratio
|
(B)/(D)
|
10.50
|
|
|
12.92
|
|
|
12.76
|
|
*
|
|
14.26
|
|
|
13.46
|
|
*
|
|
Total Capital Ratio (2)
|
(C)/(D)
|
12.50
|
|
|
15.27
|
|
*
|
15.71
|
|
|
|
16.83
|
|
|
16.54
|
|
*
|
*
|
Denotes the lowest capital ratio as determined under the Advanced and Standardized Approaches.
|
(1)
|
See Table 44 for information regarding the calculation and components of CET1, tier 1 capital, total capital and RWAs.
|
(2)
|
The fully phased-in total capital amounts and ratios are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position. See Table 44 for information regarding the calculation and components of our fully phased-in total capital amounts, including a corresponding reconciliation to GAAP financial measures.
|
88
|
Wells Fargo & Company
|
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||
(in millions)
|
|
Advanced Approach
|
|
|
Standardized Approach
|
|
|
Advanced Approach
|
|
|
Standardized Approach
|
|
|
Total equity
|
|
$
|
187,984
|
|
|
187,984
|
|
|
197,066
|
|
|
197,066
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|||||
Preferred stock
|
|
(21,549
|
)
|
|
(21,549
|
)
|
|
(23,214
|
)
|
|
(23,214
|
)
|
|
Additional paid-in capital on ESOP preferred stock
|
|
(71
|
)
|
|
(71
|
)
|
|
(95
|
)
|
|
(95
|
)
|
|
Unearned ESOP shares
|
|
1,143
|
|
|
1,143
|
|
|
1,502
|
|
|
1,502
|
|
|
Noncontrolling interests
|
|
(838
|
)
|
|
(838
|
)
|
|
(900
|
)
|
|
(900
|
)
|
|
Total common stockholders’ equity
|
|
166,669
|
|
|
166,669
|
|
|
174,359
|
|
|
174,359
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|||||
Goodwill
|
|
(26,390
|
)
|
|
(26,390
|
)
|
|
(26,418
|
)
|
|
(26,418
|
)
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
(437
|
)
|
|
(437
|
)
|
|
(559
|
)
|
|
(559
|
)
|
|
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)
|
|
(2,146
|
)
|
|
(2,146
|
)
|
|
(2,187
|
)
|
|
(2,187
|
)
|
|
Applicable deferred taxes related to goodwill and other intangible assets (1)
|
|
810
|
|
|
810
|
|
|
785
|
|
|
785
|
|
|
Other
|
|
254
|
|
|
254
|
|
|
383
|
|
|
383
|
|
|
Common Equity Tier 1
|
|
138,760
|
|
|
138,760
|
|
|
146,363
|
|
|
146,363
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common Equity Tier 1
|
|
$
|
138,760
|
|
|
138,760
|
|
|
146,363
|
|
|
146,363
|
|
Preferred stock
|
|
21,549
|
|
|
21,549
|
|
|
23,214
|
|
|
23,214
|
|
|
Additional paid-in capital on ESOP preferred stock
|
|
71
|
|
|
71
|
|
|
95
|
|
|
95
|
|
|
Unearned ESOP shares
|
|
(1,143
|
)
|
|
(1,143
|
)
|
|
(1,502
|
)
|
|
(1,502
|
)
|
|
Other
|
|
(288
|
)
|
|
(288
|
)
|
|
(304
|
)
|
|
(304
|
)
|
|
Total Tier 1 capital
|
(A)
|
158,949
|
|
|
158,949
|
|
|
167,866
|
|
|
167,866
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term debt and other instruments qualifying as Tier 2
|
|
26,515
|
|
|
26,515
|
|
|
27,946
|
|
|
27,946
|
|
|
Qualifying allowance for credit losses (2)
|
|
2,566
|
|
|
10,456
|
|
|
2,463
|
|
|
10,706
|
|
|
Other
|
|
(217
|
)
|
|
(217
|
)
|
|
(172
|
)
|
|
(172
|
)
|
|
Total Tier 2 capital (Fully Phased-In)
|
(B)
|
28,864
|
|
|
36,754
|
|
|
30,237
|
|
|
38,480
|
|
|
Effect of Transition Requirements
|
|
520
|
|
|
520
|
|
|
695
|
|
|
695
|
|
|
Total Tier 2 capital (Transition Requirements)
|
|
$
|
29,384
|
|
|
37,274
|
|
|
30,932
|
|
|
39,175
|
|
|
|
|
|
|
|
|
|
|
|||||
Total qualifying capital (Fully Phased-In)
|
(A)+(B)
|
$
|
187,813
|
|
|
195,703
|
|
|
198,103
|
|
|
206,346
|
|
Total Effect of Transition Requirements
|
|
520
|
|
|
520
|
|
|
695
|
|
|
695
|
|
|
Total qualifying capital (Transition Requirements)
|
|
$
|
188,333
|
|
|
196,223
|
|
|
198,798
|
|
|
207,041
|
|
|
|
|
|
|
|
|
|
|
|||||
Risk-Weighted Assets (RWAs) (3)(4):
|
|
|
|
|
|
|
|
|
|||||
Credit risk
|
|
$
|
790,784
|
|
|
1,210,209
|
|
|
803,273
|
|
|
1,201,246
|
|
Market risk
|
|
35,644
|
|
|
35,644
|
|
|
45,964
|
|
|
45,964
|
|
|
Operational risk
|
|
403,638
|
|
|
—
|
|
|
328,113
|
|
|
—
|
|
|
Total RWAs
|
|
$
|
1,230,066
|
|
|
1,245,853
|
|
|
1,177,350
|
|
|
1,247,210
|
|
(1)
|
Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
|
(2)
|
Under the Advanced Approach, the allowance for credit losses that exceeds expected credit losses is eligible for inclusion in Tier 2 Capital, to the extent the excess allowance does not exceed 0.60% of Advanced credit RWAs, and under the Standardized Approach, the allowance for credit losses is includable in Tier 2 Capital up to 1.25% of Standardized credit RWAs, with any excess allowance for credit losses being deducted from total RWAs.
|
(3)
|
RWAs calculated under the Advanced Approach utilize a risk-sensitive methodology, which relies upon the use of internal credit models based upon our experience with internal rating grades. Advanced Approach also includes an operational risk component, which reflects the risk of operating loss resulting from inadequate or failed internal processes or systems.
|
(4)
|
Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWAs.
|
|
Wells Fargo & Company
|
89
|
(in millions)
|
|
|
||
Common Equity Tier 1 at December 31, 2018
|
|
$
|
146,363
|
|
Net income applicable to common stock
|
|
17,938
|
|
|
Common stock dividends
|
|
(8,444
|
)
|
|
Common stock issued, repurchased, and stock compensation-related items
|
|
(21,719
|
)
|
|
Changes in cumulative other comprehensive income
|
|
4,544
|
|
|
Cumulative effect from change in accounting policies (1)
|
|
(11
|
)
|
|
Goodwill
|
|
27
|
|
|
Certain identifiable intangible assets (other than MSRs)
|
|
122
|
|
|
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)
|
|
41
|
|
|
Applicable deferred taxes related to goodwill and other intangible assets (2)
|
|
26
|
|
|
Other
|
|
(127
|
)
|
|
Change in Common Equity Tier 1
|
|
(7,603
|
)
|
|
Common Equity Tier 1 at December 31, 2019
|
|
$
|
138,760
|
|
(1)
|
Effective January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02 – Leases (Topic 842) and subsequent related Updates, ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. See Note 1 (Summary of Significant Accounting Policies) for more information.
|
(2)
|
Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
|
(in millions)
|
Advanced Approach
|
|
Standardized Approach
|
|
|
RWAs at December 31, 2018
|
$
|
1,177,350
|
|
1,247,210
|
|
Net change in credit risk RWAs
|
(12,489
|
)
|
8,963
|
|
|
Net change in market risk RWAs
|
(10,320
|
)
|
(10,320
|
)
|
|
Net change in operational risk RWAs
|
75,525
|
|
—
|
|
|
Total change in RWAs
|
52,716
|
|
(1,357
|
)
|
|
RWAs at December 31, 2019
|
$
|
1,230,066
|
|
1,245,853
|
|
90
|
Wells Fargo & Company
|
|
•
|
Tangible book value per common share, which represents tangible common equity divided by common shares outstanding; and
|
•
|
Return on average tangible common equity (ROTCE), which represents our annualized earnings contribution as a percentage of tangible common equity.
|
|
|
|
Balance at period end
|
|
|
Average balance for the year ended
|
|
||||||||||
(in millions, except ratios)
|
|
|
Dec 31,
2019 |
|
Dec 31,
2018 |
|
Dec 31,
2017 |
|
|
Dec 31,
2019 |
|
Dec 31,
2018 |
|
Dec 31,
2017 |
|
||
Total equity
|
|
|
$
|
187,984
|
|
197,066
|
|
208,079
|
|
|
197,621
|
|
203,356
|
|
205,654
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock
|
|
|
(21,549
|
)
|
(23,214
|
)
|
(25,358
|
)
|
|
(22,522
|
)
|
(24,956
|
)
|
(25,592
|
)
|
||
Additional paid-in capital on ESOP preferred stock
|
|
|
(71
|
)
|
(95
|
)
|
(122
|
)
|
|
(81
|
)
|
(125
|
)
|
(139
|
)
|
||
Unearned ESOP shares
|
|
|
1,143
|
|
1,502
|
|
1,678
|
|
|
1,306
|
|
2,159
|
|
2,143
|
|
||
Noncontrolling interests
|
|
|
(838
|
)
|
(900
|
)
|
(1,143
|
)
|
|
(962
|
)
|
(929
|
)
|
(948
|
)
|
||
Total common stockholders’ equity
|
(A)
|
|
166,669
|
|
174,359
|
|
183,134
|
|
|
175,362
|
|
179,505
|
|
181,118
|
|
||
Adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||
Goodwill
|
|
|
(26,390
|
)
|
(26,418
|
)
|
(26,587
|
)
|
|
(26,409
|
)
|
(26,453
|
)
|
(26,629
|
)
|
||
Certain identifiable intangible assets (other than MSRs)
|
|
|
(437
|
)
|
(559
|
)
|
(1,624
|
)
|
|
(493
|
)
|
(1,088
|
)
|
(2,176
|
)
|
||
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)
|
|
|
(2,146
|
)
|
(2,187
|
)
|
(2,155
|
)
|
|
(2,174
|
)
|
(2,197
|
)
|
(2,184
|
)
|
||
Applicable deferred taxes related to goodwill and other intangible assets (1)
|
|
|
810
|
|
785
|
|
962
|
|
|
792
|
|
866
|
|
1,570
|
|
||
Tangible common equity
|
(B)
|
|
$
|
138,506
|
|
145,980
|
|
153,730
|
|
|
147,078
|
|
150,633
|
|
151,699
|
|
|
Common shares outstanding
|
(C)
|
|
4,134.4
|
|
4,581.3
|
|
4,891.6
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
||
Net income applicable to common stock
|
(D)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
$
|
17,938
|
|
20,689
|
|
20,554
|
|
|
Book value per common share
|
(A)/(C)
|
|
$
|
40.31
|
|
38.06
|
|
37.44
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
Tangible book value per common share
|
(B)/(C)
|
|
33.50
|
|
31.86
|
|
31.43
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
||
Return on average common stockholders’ equity (ROE)
|
(D)/(A)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
10.23
|
%
|
11.53
|
|
11.35
|
|
||
Return on average tangible common equity (ROTCE)
|
(D)/(B)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
12.20
|
|
13.73
|
|
13.55
|
|
(1)
|
Determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
|
|
Wells Fargo & Company
|
91
|
(in millions, except ratio)
|
|
Quarter ended December 31, 2019
|
|
|
Tier 1 capital
|
(A)
|
$
|
158,949
|
|
Total average assets
|
|
1,941,843
|
|
|
Less: Goodwill and other permitted Tier 1 capital deductions (net of deferred tax liabilities)
|
|
28,546
|
|
|
Total adjusted average assets
|
|
1,913,297
|
|
|
Plus adjustments for off-balance sheet exposures:
|
|
|
||
Derivatives (1)
|
|
67,645
|
|
|
Repo-style transactions (2)
|
|
5,162
|
|
|
Other (3)
|
|
261,625
|
|
|
Total off-balance sheet exposures
|
|
334,432
|
|
|
Total leverage exposure
|
(B)
|
$
|
2,247,729
|
|
Supplementary leverage ratio
|
(A)/(B)
|
7.07
|
%
|
(1)
|
Adjustment represents derivatives and collateral netting exposures as defined for supplementary leverage ratio determination purposes.
|
(2)
|
Adjustment represents counterparty credit risk for repo-style transactions where Wells Fargo & Company is the principal (i.e., principal counterparty facing the client).
|
(3)
|
Adjustment represents credit equivalent amounts of other off-balance sheet exposures not already included as derivatives and repo-style transactions exposures.
|
92
|
Wells Fargo & Company
|
|
Regulatory Matters
|
•
|
Enhanced supervision and regulation of systemically important firms. The Dodd-Frank Act grants broad authority to federal banking regulators to establish enhanced supervisory and regulatory requirements for systemically important firms. The FRB has finalized a number of regulations implementing enhanced prudential requirements for large bank holding companies (BHCs) like Wells Fargo regarding risk-based capital and leverage, risk and liquidity management, and
|
•
|
Regulation of consumer financial products. The Dodd-Frank Act established the Consumer Financial Protection Bureau (CFPB) to ensure consumers receive clear and accurate
|
|
Wells Fargo & Company
|
93
|
•
|
Volcker Rule. The Volcker Rule, with certain exceptions, prohibits banking entities from engaging in proprietary trading or owning any interest in or sponsoring or having certain relationships with a hedge fund, a private equity fund or certain structured transactions that are deemed covered funds. Federal banking regulators, the SEC, and the Commodity Futures Trading Commission (CFTC) jointly released a final rule to implement the Volcker Rule’s restrictions, and have adopted amendments to the rule to streamline and tailor the requirements for compliance.
|
•
|
Regulation of swaps and other derivatives activities. The Dodd-Frank Act established a comprehensive framework for regulating over-the-counter derivatives and authorized the CFTC and the SEC to regulate swaps and security-based swaps, respectively. The CFTC has adopted rules applicable to our provisionally registered swap dealer, Wells Fargo Bank, N.A., that require, among other things, extensive regulatory and public reporting of swaps, central clearing and trading of swaps on exchanges or other multilateral platforms, and compliance with comprehensive internal and external business conduct standards. The SEC has implemented parallel rules applicable to security-based swaps, and is expected to implement additional related rules. In addition, federal regulators have adopted final rules establishing initial and variation margin requirements for swaps and security-based swaps not centrally cleared, rules placing restrictions on a party’s right to exercise default rights under derivatives and other qualified financial contracts against applicable banking organizations, and record-keeping requirements for qualified financial contracts. All of these new rules, as well as others being considered by regulators in other jurisdictions, may negatively impact customer demand for over-the-counter derivatives, impact our ability to offer customers new derivatives or amendments to existing derivatives, and may increase our costs for engaging in swaps, security-based swaps, and other derivatives activities.
|
•
|
Regulation of interchange transaction fees (the Durbin Amendment). The FRB has enacted a rule to implement the Durbin Amendment to the Dodd-Frank Act, which limits
|
94
|
Wells Fargo & Company
|
|
•
|
Broker-dealer standards of conduct. In June 2019, the SEC finalized a rule that requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. This rule impacts the manner in which business is conducted with customers seeking investment advice and may affect certain investment product offerings.
|
•
|
Community Reinvestment Act (CRA) rating. In March 2017, we announced that the OCC had downgraded our most recent CRA rating, which covers the years 2009 – 2012, to “Needs to Improve” due to previously issued regulatory consent orders. A “Needs to Improve” rating imposes regulatory restrictions and limitations on certain of the Company’s nonbank activities, including its ability to engage in certain nonbank mergers and acquisitions or undertake new financial in nature activities, and CRA performance is taken into account by regulators in reviewing applications to establish bank branches and for approving proposed bank mergers and acquisitions. The rating also results in the loss of expedited processing of applications to undertake certain activities, and requires the Company to receive prior regulatory approval for certain activities, including to issue or prepay certain subordinated debt obligations, open or relocate bank branches, or make certain public welfare investments. In addition, a “Needs to Improve” rating could have an impact on the Company’s relationships with certain states, counties, municipalities or other public agencies to the extent applicable law, regulation or policy limits, restricts or influences whether such entity may do business with a company that has a below “Satisfactory” rating.
|
•
|
FRB consent order regarding governance oversight and compliance and operational risk management. On February 2, 2018, the Company entered into a consent order with the FRB. As required by the consent order, the Board submitted to the FRB a plan to further enhance the Board’s governance and oversight of the Company, and the Company submitted to the FRB a plan to further improve the Company’s compliance and operational risk management program. The Company continues to engage with the FRB as the Company works to address the consent order provisions. The consent order also requires the Company, following the FRB’s acceptance and approval of the plans and the Company’s
|
|
Wells Fargo & Company
|
95
|
•
|
Consent orders with the CFPB and OCC regarding compliance risk management program, automobile collateral protection insurance policies, and mortgage interest rate lock extensions. On April 20, 2018, the Company entered into consent orders with the CFPB and OCC to pay an aggregate of $1 billion in civil money penalties to resolve matters regarding the Company’s compliance risk management program and past practices involving certain automobile collateral protection insurance policies and certain
|
•
|
OCC approval of director and senior executive officer appointments and certain post-termination payments. Under the April 2018 consent order with the OCC, Wells Fargo Bank, N.A., remains subject to requirements that were originally imposed in November 2016 to provide prior written notice to, and obtain non-objection from, the OCC with respect to changes in directors and senior executive officers, and remains subject to certain regulatory limitations on post-termination payments to certain individuals and employees.
|
Critical Accounting Policies
|
•
|
the allowance for credit losses;
|
•
|
the valuation of residential MSRs;
|
•
|
the fair value of financial instruments;
|
•
|
income taxes; and
|
•
|
liability for contingent litigation losses.
|
•
|
Credit risk ratings applied to individual commercial loans and unfunded credit commitments. We estimate the probability of default in accordance with the borrower’s financial strength using a borrower quality rating and the severity of loss in the event of default using a collateral quality rating. Collectively, these ratings are referred to as credit risk ratings and are assigned to our commercial loans. Probability of default and severity at the time of default are statistically derived through historical observations of defaults and losses after default within each credit risk rating. Commercial loan risk ratings are evaluated based on each situation by experienced senior credit officers and are subject to periodic review by an internal team of credit specialists.
|
•
|
Economic assumptions applied to pools of consumer loans (statistically modeled). Losses are estimated using economic variables to represent our best estimate of inherent loss. Our forecasted losses are modeled using a range of economic scenarios.
|
•
|
Selection of a credit loss estimation model that fits the credit risk characteristics of its portfolio. We use both internally developed and vendor supplied models in this process. We often use expected loss, transition rate, flow rate, competing hazard, vintage maturation, and time series or statistical trend models, including those with economic correlations. Management must use judgment in establishing additional input metrics for the modeling processes, considering further stratification into reference data time series, sub-product, origination channel, vintage, loss type, geographic location and other predictive characteristics. The models used to determine the allowance for credit losses are validated in accordance with Company policies by an internal model validation group.
|
•
|
Assessment of limitations to credit loss estimation models. We apply our judgment to adjust our modeled estimates to
|
96
|
Wells Fargo & Company
|
|
•
|
Identification and measurement of impaired loans, including loans modified in a TDR. Our experienced senior credit officers may consider a loan impaired based on their evaluation of current information and events, including loans modified in a TDR. The measurement of impairment is typically based on an analysis of the present value of expected future cash flows. The development of these expectations requires significant management judgment and review.
|
•
|
An amount for imprecision or uncertainty which reflects management’s overall estimate of the effect of quantitative and qualitative factors on inherent credit losses. This amount represents management’s judgment of risks inherent in the processes and assumptions used in establishing the allowance for credit losses. This imprecision considers economic environmental factors, modeling assumptions and performance, process risk, and other subjective factors, including industry trends and emerging risk assessments.
|
|
|
|
|
December 31, 2019
|
|
||||||
|
|
|
|
|
|
|
Estimated
|
|
|||
|
|
|
|
|
|
|
increase/(decrease)
|
|
|||
(in billions)
|
|
|
|
|
in allowance
|
|
|||||
Assumption:
|
|
|
|
|
|
|
|||||
|
Favorable (1)
|
|
|
|
|
|
|
$
|
(3.1
|
)
|
|
|
Adverse (2)
|
|
|
|
|
|
|
7.1
|
|
(1)
|
Represents a one risk rating upgrade throughout our commercial portfolio segment and a more optimistic economic outlook for modeled losses on our consumer portfolio segment.
|
(2)
|
Represents a one risk rating downgrade throughout our commercial portfolio segment, a more pessimistic economic outlook for modeled losses on our consumer portfolio segment, and incremental deterioration for PCI loans.
|
•
|
The mortgage loan prepayment speed used to estimate future net servicing income. The prepayment speed is the annual rate at which borrowers are forecasted to repay their mortgage loan principal; this rate also includes estimated borrower defaults. We use models to estimate prepayment speeds and borrower defaults which are influenced by changes in mortgage interest rates and borrower behavior.
|
•
|
The discount rate used to present value estimated future net servicing income. The discount rate is the required rate of return investors in the market would expect for an asset with similar risk. To determine the discount rate, we consider the risk premium for uncertainties in the cash flow estimates such as from servicing operations (e.g., possible changes in future servicing costs, ancillary income and earnings on escrow accounts).
|
•
|
The expected cost to service loans used to estimate future net servicing income. The cost to service loans includes estimates for unreimbursed expenses, such as delinquency and foreclosure costs, which considers the number of defaulted loans as well as changes in servicing processes associated with default and foreclosure management.
|
|
Wells Fargo & Company
|
97
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||
($ in billions)
|
Total balance
|
|
|
Level 3 (1)
|
|
|
Total balance
|
|
|
Level 3 (1)
|
|
|
Assets carried at fair value
|
$
|
428.6
|
|
|
24.3
|
|
|
408.4
|
|
|
25.3
|
|
As a percentage
of total assets
|
22
|
%
|
|
1
|
|
|
22
|
|
|
1
|
|
|
Liabilities carried at fair value
|
$
|
26.5
|
|
|
1.8
|
|
|
28.2
|
|
|
1.6
|
|
As a percentage of
total liabilities
|
2
|
%
|
|
*
|
|
|
2
|
|
|
*
|
|
(1)
|
Before derivative netting adjustments.
|
98
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
99
|
Current Accounting Developments
|
100
|
Wells Fargo & Company
|
|
Loan Portfolio
|
|
Key economic variables
|
Total commercial
|
|
• Gross domestic product
• Commercial real estate asset prices, where applicable
|
Real estate 1-4 family mortgage
|
|
• Home price index
• Unemployment rate
|
Other consumer (including credit card, automobile, and other revolving credit and installment)
|
|
• Unemployment rate
|
|
|
|
Dec 31, 2019
|
|
ASU 2016-13 Adoption Impact
|
|
|
Jan 1, 2020
|
|
|||||
(in billions)
|
Balance Outstanding
|
|
ACL Balance
|
|
Coverage
|
|
ACL Balance
|
|
Coverage
|
|
||||
Total commercial (2)
|
$
|
515.7
|
|
6.2
|
|
1.2
|
%
|
$
|
(2.9
|
)
|
3.4
|
|
0.7
|
%
|
|
|
|
|
|
|
|
||||||||
Real estate 1-4 family mortgage (3)
|
323.4
|
|
0.9
|
|
0.3
|
|
—
|
|
0.9
|
|
0.3
|
|
||
Credit card (4)
|
41.0
|
|
2.3
|
|
5.5
|
|
0.7
|
|
2.9
|
|
7.1
|
|
||
Automobile (4)
|
47.9
|
|
0.5
|
|
1.0
|
|
0.3
|
|
0.7
|
|
1.5
|
|
||
Other revolving credit and installment (4)
|
34.3
|
|
0.6
|
|
1.6
|
|
0.6
|
|
1.2
|
|
3.5
|
|
||
Total consumer
|
446.5
|
|
4.2
|
|
0.9
|
|
1.5
|
|
5.7
|
|
1.3
|
|
||
Total loans
|
962.3
|
|
10.5
|
|
1.1
|
|
(1.3
|
)
|
9.1
|
|
0.9
|
|
||
Available-for-sale and held-to-maturity debt securities and other assets (5)
|
420.0
|
|
0.1
|
|
NM
|
|
—
|
|
0.1
|
|
NM
|
|
||
Total
|
$
|
1,382.3
|
|
10.6
|
|
NM
|
|
$
|
(1.3
|
)
|
9.3
|
|
NM
|
|
(1)
|
Amounts presented in this table may not equal the sum of its components due to rounding.
|
(2)
|
Decrease reflecting shorter contractual maturities given limitation to contractual term.
|
(3)
|
Impact reflects an increase due to longer contractual term, offset by expectation of recoveries in collateral value on mortgage loans previously written down significantly below current recovery value.
|
(4)
|
Increase due to longer contractual term or indeterminate maturities.
|
(5)
|
Excludes other financial assets in the scope of CECL that do not have an allowance for credit losses based on the nature of the asset.
|
•
|
ASU 2020-01 – Investments - Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 (a consensus of the FASB Emerging Issues Task Force)
|
•
|
ASU 2019-12 – Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
|
•
|
ASU 2019-04 – Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This Update includes guidance on recoveries of financial assets, which has been included in the discussion for ASU 2016-13 above.
|
•
|
ASU 2018-17 – Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities
|
•
|
ASU 2018-15 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)
|
•
|
ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. We fully adopted this guidance in first quarter 2020.
|
•
|
ASU 2017-04 – Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
|
|
Wells Fargo & Company
|
101
|
Forward-Looking Statements
|
•
|
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 any 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;
|
•
|
developments in our mortgage banking business, including the extent of the success of our mortgage loan modification
|
•
|
our ability to realize any efficiency ratio or expense 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 interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
|
•
|
significant turbulence or a 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 debt securities and equity securities portfolios;
|
•
|
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;
|
•
|
negative effects from the retail banking sales practices matter and from other instances where customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;
|
•
|
resolution of regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
|
•
|
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;
|
•
|
changes to U.S. tax guidance and regulations, as well as the effect of discrete items on our effective income tax rate;
|
•
|
our ability to develop and execute effective business plans and strategies; and
|
•
|
the other risk factors and uncertainties described under “Risk Factors” in this Report.
|
|
Wells Fargo & Company
|
102
|
Risk Factors
|
|
Wells Fargo & Company
|
103
|
104
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
105
|
106
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
107
|
108
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
109
|
110
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
111
|
112
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
113
|
114
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
115
|
116
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
117
|
118
|
Wells Fargo & Company
|
|
Controls and Procedures
|
Disclosure Controls and Procedures
|
Internal Control Over Financial Reporting
|
•
|
pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Company;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
|
Wells Fargo & Company
|
119
|
120
|
Wells Fargo & Company
|
|
Wells Fargo & Company and Subsidiaries
|
|||||||||
Consolidated Statement of Income
|
|||||||||
|
Year ended December 31,
|
|
|||||||
(in millions, except per share amounts)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Interest income
|
|
|
|
|
|
||||
Debt securities
|
$
|
14,955
|
|
|
14,406
|
|
|
12,946
|
|
Mortgage loans held for sale
|
813
|
|
|
777
|
|
|
786
|
|
|
Loans held for sale
|
79
|
|
|
140
|
|
|
50
|
|
|
Loans
|
44,146
|
|
|
43,974
|
|
|
41,388
|
|
|
Equity securities
|
962
|
|
|
992
|
|
|
799
|
|
|
Other interest income
|
5,128
|
|
|
4,358
|
|
|
2,940
|
|
|
Total interest income
|
66,083
|
|
|
64,647
|
|
|
58,909
|
|
|
Interest expense
|
|
|
|
|
|
||||
Deposits
|
8,635
|
|
|
5,622
|
|
|
3,013
|
|
|
Short-term borrowings
|
2,316
|
|
|
1,717
|
|
|
758
|
|
|
Long-term debt
|
7,350
|
|
|
6,703
|
|
|
5,157
|
|
|
Other interest expense
|
551
|
|
|
610
|
|
|
424
|
|
|
Total interest expense
|
18,852
|
|
|
14,652
|
|
|
9,352
|
|
|
Net interest income
|
47,231
|
|
|
49,995
|
|
|
49,557
|
|
|
Provision for credit losses
|
2,687
|
|
|
1,744
|
|
|
2,528
|
|
|
Net interest income after provision for credit losses
|
44,544
|
|
|
48,251
|
|
|
47,029
|
|
|
Noninterest income
|
|
|
|
|
|
||||
Service charges on deposit accounts
|
4,798
|
|
|
4,716
|
|
|
5,111
|
|
|
Trust and investment fees
|
14,072
|
|
|
14,509
|
|
|
14,495
|
|
|
Card fees
|
4,016
|
|
|
3,907
|
|
|
3,960
|
|
|
Other fees
|
3,084
|
|
|
3,384
|
|
|
3,557
|
|
|
Mortgage banking
|
2,715
|
|
|
3,017
|
|
|
4,350
|
|
|
Insurance
|
378
|
|
|
429
|
|
|
1,049
|
|
|
Net gains from trading activities
|
993
|
|
|
602
|
|
|
542
|
|
|
Net gains on debt securities (1)
|
140
|
|
|
108
|
|
|
479
|
|
|
Net gains from equity securities (2)
|
2,843
|
|
|
1,515
|
|
|
1,779
|
|
|
Lease income
|
1,612
|
|
|
1,753
|
|
|
1,907
|
|
|
Other
|
3,181
|
|
|
2,473
|
|
|
1,603
|
|
|
Total noninterest income
|
37,832
|
|
|
36,413
|
|
|
38,832
|
|
|
Noninterest expense
|
|
|
|
|
|
||||
Salaries
|
18,382
|
|
|
17,834
|
|
|
17,363
|
|
|
Commission and incentive compensation
|
10,828
|
|
|
10,264
|
|
|
10,442
|
|
|
Employee benefits
|
5,874
|
|
|
4,926
|
|
|
5,566
|
|
|
Technology and equipment
|
2,763
|
|
|
2,444
|
|
|
2,237
|
|
|
Net occupancy
|
2,945
|
|
|
2,888
|
|
|
2,849
|
|
|
Core deposit and other intangibles
|
108
|
|
|
1,058
|
|
|
1,152
|
|
|
FDIC and other deposit assessments
|
526
|
|
|
1,110
|
|
|
1,287
|
|
|
Other
|
16,752
|
|
|
15,602
|
|
|
17,588
|
|
|
Total noninterest expense
|
58,178
|
|
|
56,126
|
|
|
58,484
|
|
|
Income before income tax expense
|
24,198
|
|
|
28,538
|
|
|
27,377
|
|
|
Income tax expense
|
4,157
|
|
|
5,662
|
|
|
4,917
|
|
|
Net income before noncontrolling interests
|
20,041
|
|
|
22,876
|
|
|
22,460
|
|
|
Less: Net income from noncontrolling interests
|
492
|
|
|
483
|
|
|
277
|
|
|
Wells Fargo net income
|
$
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
Less: Preferred stock dividends and other
|
1,611
|
|
|
1,704
|
|
|
1,629
|
|
|
Wells Fargo net income applicable to common stock
|
$
|
17,938
|
|
|
20,689
|
|
|
20,554
|
|
Per share information
|
|
|
|
|
|
||||
Earnings per common share
|
$
|
4.08
|
|
|
4.31
|
|
|
4.14
|
|
Diluted earnings per common share
|
4.05
|
|
|
4.28
|
|
|
4.10
|
|
|
Average common shares outstanding
|
4,393.1
|
|
|
4,799.7
|
|
|
4,964.6
|
|
|
Diluted average common shares outstanding
|
4,425.4
|
|
|
4,838.4
|
|
|
5,017.3
|
|
(1)
|
Total other-than-temporary impairment (OTTI) losses were $64 million, $17 million and $205 million for the years ended December 31, 2019, 2018 and 2017, respectively. Of total OTTI, losses of $63 million, $28 million and $262 million were recognized in earnings, and losses (reversal of losses) of $1 million, $(11) million and $(57) million were recognized as non-credit-related OTTI in other comprehensive income for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(2)
|
Includes OTTI losses of $245 million, $352 million and $344 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
|
Wells Fargo & Company
|
121
|
Wells Fargo & Company and Subsidiaries
|
|||||||||
Consolidated Statement of Comprehensive Income
|
|||||||||
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Wells Fargo net income
|
$
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
||||
Debt securities (1):
|
|
|
|
|
|
||||
Net unrealized gains (losses) arising during the period
|
5,439
|
|
|
(4,493
|
)
|
|
2,719
|
|
|
Reclassification of net (gains) losses to net income
|
122
|
|
|
248
|
|
|
(737
|
)
|
|
Derivatives and hedging activities:
|
|
|
|
|
|
||||
Net unrealized losses arising during the period
|
(24
|
)
|
|
(532
|
)
|
|
(540
|
)
|
|
Reclassification of net (gains) losses on cash flow hedges to net income
|
299
|
|
|
294
|
|
|
(543
|
)
|
|
Defined benefit plans adjustments:
|
|
|
|
|
|
||||
Net actuarial and prior service gains (losses) arising during the period
|
(40
|
)
|
|
(434
|
)
|
|
49
|
|
|
Amortization of net actuarial loss, settlements and other to net income
|
133
|
|
|
253
|
|
|
153
|
|
|
Foreign currency translation adjustments:
|
|
|
|
|
|
||||
Net unrealized gains (losses) arising during the period
|
73
|
|
|
(156
|
)
|
|
96
|
|
|
Other comprehensive income (loss), before tax
|
6,002
|
|
|
(4,820
|
)
|
|
1,197
|
|
|
Income tax benefit (expense) related to other comprehensive income
|
(1,458
|
)
|
|
1,144
|
|
|
(434
|
)
|
|
Other comprehensive income (loss), net of tax
|
4,544
|
|
|
(3,676
|
)
|
|
763
|
|
|
Less: Other comprehensive loss from noncontrolling interests
|
—
|
|
|
(2
|
)
|
|
(62
|
)
|
|
Wells Fargo other comprehensive income (loss), net of tax
|
4,544
|
|
|
(3,674
|
)
|
|
825
|
|
|
Wells Fargo comprehensive income
|
24,093
|
|
|
18,719
|
|
|
23,008
|
|
|
Comprehensive income from noncontrolling interests
|
492
|
|
|
481
|
|
|
215
|
|
|
Total comprehensive income
|
$
|
24,585
|
|
|
19,200
|
|
|
23,223
|
|
(1)
|
The year ended December 31, 2017, includes net unrealized gains (losses) arising during the period from equity securities of $81 million and reclassification of net (gains) losses to net income related to equity securities of $(456) million. In connection with our adoption in first quarter 2018 of Accounting Standards Update (ASU) 2016-01, the years ended December 31, 2018, and December 31, 2019, reflect net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
|
122
|
Wells Fargo & Company
|
|
Wells Fargo & Company and Subsidiaries
|
||||||
Consolidated Balance Sheet
|
||||||
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions, except shares)
|
2019
|
|
|
2018
|
|
|
Assets
|
|
|
|
|||
Cash and due from banks
|
$
|
21,757
|
|
|
23,551
|
|
Interest-earning deposits with banks
|
119,493
|
|
|
149,736
|
|
|
Total cash, cash equivalents, and restricted cash
|
141,250
|
|
|
173,287
|
|
|
Federal funds sold and securities purchased under resale agreements
|
102,140
|
|
|
80,207
|
|
|
Debt securities:
|
|
|
|
|||
Trading, at fair value
|
79,733
|
|
|
69,989
|
|
|
Available-for-sale, at fair value
|
263,459
|
|
|
269,912
|
|
|
Held-to-maturity, at cost (fair value $156,860 and $142,115)
|
153,933
|
|
|
144,788
|
|
|
Mortgage loans held for sale (includes $16,606 and $11,771 carried at fair value) (1)
|
23,342
|
|
|
15,126
|
|
|
Loans held for sale (includes $972 and $1,469 carried at fair value) (1)
|
977
|
|
|
2,041
|
|
|
Loans (includes $171 and $244 carried at fair value) (1)
|
962,265
|
|
|
953,110
|
|
|
Allowance for loan losses
|
(9,551
|
)
|
|
(9,775
|
)
|
|
Net loans
|
952,714
|
|
|
943,335
|
|
|
Mortgage servicing rights:
|
|
|
|
|||
Measured at fair value
|
11,517
|
|
|
14,649
|
|
|
Amortized
|
1,430
|
|
|
1,443
|
|
|
Premises and equipment, net
|
9,309
|
|
|
8,920
|
|
|
Goodwill
|
26,390
|
|
|
26,418
|
|
|
Derivative assets
|
14,203
|
|
|
10,770
|
|
|
Equity securities (includes $41,936 and $29,556 carried at fair value) (1)
|
68,241
|
|
|
55,148
|
|
|
Other assets
|
78,917
|
|
|
79,850
|
|
|
Total assets (2)
|
$
|
1,927,555
|
|
|
1,895,883
|
|
Liabilities
|
|
|
|
|||
Noninterest-bearing deposits
|
$
|
344,496
|
|
|
349,534
|
|
Interest-bearing deposits
|
978,130
|
|
|
936,636
|
|
|
Total deposits
|
1,322,626
|
|
|
1,286,170
|
|
|
Short-term borrowings
|
104,512
|
|
|
105,787
|
|
|
Derivative liabilities
|
9,079
|
|
|
8,499
|
|
|
Accrued expenses and other liabilities
|
75,163
|
|
|
69,317
|
|
|
Long-term debt
|
228,191
|
|
|
229,044
|
|
|
Total liabilities (3)
|
1,739,571
|
|
|
1,698,817
|
|
|
Equity
|
|
|
|
|||
Wells Fargo stockholders’ equity:
|
|
|
|
|||
Preferred stock
|
21,549
|
|
|
23,214
|
|
|
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares
|
9,136
|
|
|
9,136
|
|
|
Additional paid-in capital
|
61,049
|
|
|
60,685
|
|
|
Retained earnings
|
166,697
|
|
|
158,163
|
|
|
Cumulative other comprehensive income (loss)
|
(1,311
|
)
|
|
(6,336
|
)
|
|
Treasury stock – 1,347,385,537 shares and 900,557,866 shares
|
(68,831
|
)
|
|
(47,194
|
)
|
|
Unearned ESOP shares
|
(1,143
|
)
|
|
(1,502
|
)
|
|
Total Wells Fargo stockholders’ equity
|
187,146
|
|
|
196,166
|
|
|
Noncontrolling interests
|
838
|
|
|
900
|
|
|
Total equity
|
187,984
|
|
|
197,066
|
|
|
Total liabilities and equity
|
$
|
1,927,555
|
|
|
1,895,883
|
|
(2)
|
Our consolidated assets at December 31, 2019 and 2018, include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash and due from banks, $16 million and $139 million; Interest-bearing deposits with banks, $284 million and $8 million; Debt securities, $540 million and $562 million; Net loans, $13.2 billion and $13.6 billion; Derivative assets, $1 million and $0 million; Equity securities, $118 million and $85 million; Other assets, $239 million and $227 million; and Total assets, $14.4 billion and $14.6 billion, respectively. Prior period balances have been conformed to current period presentation.
|
(3)
|
Our consolidated liabilities at December 31, 2019 and 2018, include the following VIE liabilities for which the VIE creditors do not have recourse to Wells Fargo: Short-term borrowings, $401 million and $493 million; Derivative liabilities, $3 million and $0 million; Accrued expenses and other liabilities, $235 million and $199 million; Long-term debt, $587 million and $816 million; and Total liabilities, $1.2 billion and $1.5 billion, respectively. Prior period balances have been conformed to current period presentation.
|
|
Wells Fargo & Company
|
123
|
Wells Fargo & Company and Subsidiaries
|
|||||||||||||
Consolidated Statement of Changes in Equity
|
|||||||||||||
|
|
|
|
||||||||||
|
Preferred stock
|
|
|
Common stock
|
|
||||||||
(in millions, except shares)
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
||
Balance December 31, 2016
|
11,532,712
|
|
|
$
|
24,551
|
|
|
5,016,109,326
|
|
|
$
|
9,136
|
|
Cumulative effect from change in hedge accounting (1)
|
|
|
|
|
|
|
|
||||||
Balance January 1, 2017
|
11,532,712
|
|
|
24,551
|
|
|
5,016,109,326
|
|
|
9,136
|
|
||
Net income
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||
Noncontrolling interests
|
|
|
|
|
|
|
|
||||||
Common stock issued
|
|
|
|
|
57,257,564
|
|
|
|
|
||||
Common stock repurchased
|
|
|
|
|
(196,519,707
|
)
|
|
|
|||||
Preferred stock issued to ESOP
|
950,000
|
|
|
950
|
|
|
|
|
|
||||
Preferred stock released by ESOP
|
|
|
|
|
|
|
|
||||||
Preferred stock converted to common shares
|
(833,077
|
)
|
|
(833
|
)
|
|
14,769,445
|
|
|
|
|
||
Common stock warrants repurchased/exercised
|
|
|
|
|
|
|
|
||||||
Preferred stock issued
|
27,600
|
|
|
690
|
|
|
|
|
|
||||
Common stock dividends
|
|
|
|
|
|
|
|
||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
||||||
Stock incentive compensation expense
|
|
|
|
|
|
|
|
||||||
Net change in deferred compensation and related plans
|
|
|
|
|
|
|
|
||||||
Net change
|
144,523
|
|
|
807
|
|
|
(124,492,698
|
)
|
|
—
|
|
||
Balance December 31, 2017
|
11,677,235
|
|
|
$
|
25,358
|
|
|
4,891,616,628
|
|
|
$
|
9,136
|
|
Cumulative effect from change in accounting policies (2)
|
|
|
|
|
|
|
|
||||||
Balance January 1, 2018
|
11,677,235
|
|
|
$
|
25,358
|
|
|
4,891,616,628
|
|
|
$
|
9,136
|
|
Adoption of accounting standard related to certain tax effects stranded in accumulated other comprehensive income (loss)(3)
|
|
|
|
|
|
|
|
||||||
Net income
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||
Noncontrolling interests
|
|
|
|
|
|
|
|
||||||
Common stock issued
|
|
|
|
|
41,082,047
|
|
|
|
|
||||
Common stock repurchased
|
|
|
|
|
(375,477,998
|
)
|
|
|
|||||
Preferred stock redeemed (4)
|
(2,150,375
|
)
|
|
(1,995
|
)
|
|
|
|
|
||||
Preferred stock issued to ESOP
|
1,100,000
|
|
|
1,100
|
|
|
|
|
|
||||
Preferred stock released by ESOP
|
|
|
|
|
|
|
|
||||||
Preferred stock converted to common shares
|
(1,249,644
|
)
|
|
(1,249
|
)
|
|
24,032,931
|
|
|
|
|
||
Common stock warrants repurchased/exercised
|
|
|
|
|
|
|
|
||||||
Preferred stock issued
|
—
|
|
|
—
|
|
|
|
|
|
||||
Common stock dividends
|
|
|
|
|
|
|
|
||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
||||||
Stock incentive compensation expense
|
|
|
|
|
|
|
|
||||||
Net change in deferred compensation and related plans
|
|
|
|
|
|
|
|
||||||
Net change
|
(2,300,019
|
)
|
|
(2,144
|
)
|
|
(310,363,020
|
)
|
|
—
|
|
||
Balance December 31, 2018
|
9,377,216
|
|
|
$
|
23,214
|
|
|
4,581,253,608
|
|
|
$
|
9,136
|
|
(1)
|
Effective January 1, 2017, we adopted changes in hedge accounting pursuant to ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
|
(2)
|
Effective January 1, 2018, we adopted ASU 2016-04 – Liabilities – Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, and ASU 2014-09 – Revenue from Contracts With Customers (Topic 606) and subsequent related Updates.
|
(3)
|
Represents the reclassification from other comprehensive income to retained earnings as a result of our adoption of ASU 2018-02 – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, in third quarter 2018.
|
(4)
|
Represents the impact of the redemption of preferred stock, series J, in third quarter 2018.
|
124
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wells Fargo stockholders’ equity
|
|
|
||||||||||||||||||||
Additional
paid-in
capital
|
|
|
Retained earnings
|
|
|
Cumulative
other
comprehensive income (loss)
|
|
|
Treasury
stock
|
|
|
Unearned
ESOP
shares
|
|
|
Total
Wells Fargo stockholders’ equity
|
|
|
Noncontrolling interests
|
|
|
Total
equity
|
|
60,234
|
|
|
133,075
|
|
|
(3,137
|
)
|
|
(22,713
|
)
|
|
(1,565
|
)
|
|
199,581
|
|
|
916
|
|
|
200,497
|
|
|
|
(381
|
)
|
|
168
|
|
|
|
|
|
|
(213
|
)
|
|
|
|
(213
|
)
|
||||
60,234
|
|
|
132,694
|
|
|
(2,969
|
)
|
|
(22,713
|
)
|
|
(1,565
|
)
|
|
199,368
|
|
|
916
|
|
|
200,284
|
|
|
|
22,183
|
|
|
|
|
|
|
|
|
22,183
|
|
|
277
|
|
|
22,460
|
|
||||
|
|
|
|
825
|
|
|
|
|
|
|
825
|
|
|
(62
|
)
|
|
763
|
|
||||
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||
(133
|
)
|
|
(277
|
)
|
|
|
|
2,758
|
|
|
|
|
2,348
|
|
|
|
|
2,348
|
|
|||
750
|
|
|
|
|
|
|
(10,658
|
)
|
|
|
|
(9,908
|
)
|
|
|
|
(9,908
|
)
|
||||
31
|
|
|
|
|
|
|
|
|
(981
|
)
|
|
—
|
|
|
|
|
—
|
|
||||
(35
|
)
|
|
|
|
|
|
|
|
868
|
|
|
833
|
|
|
|
|
833
|
|
||||
97
|
|
|
|
|
|
|
736
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||
(133
|
)
|
|
|
|
|
|
|
|
|
|
(133
|
)
|
|
|
|
(133
|
)
|
|||||
(13
|
)
|
|
|
|
|
|
|
|
|
|
677
|
|
|
|
|
677
|
|
|||||
50
|
|
|
(7,708
|
)
|
|
|
|
|
|
|
|
(7,658
|
)
|
|
|
|
(7,658
|
)
|
||||
|
|
(1,629
|
)
|
|
|
|
|
|
|
|
(1,629
|
)
|
|
|
|
(1,629
|
)
|
|||||
875
|
|
|
|
|
|
|
|
|
|
|
875
|
|
|
|
|
875
|
|
|||||
(830
|
)
|
|
|
|
|
|
(15
|
)
|
|
|
|
(845
|
)
|
|
|
|
(845
|
)
|
||||
659
|
|
|
12,569
|
|
|
825
|
|
|
(7,179
|
)
|
|
(113
|
)
|
|
7,568
|
|
|
227
|
|
|
7,795
|
|
60,893
|
|
|
145,263
|
|
|
(2,144
|
)
|
|
(29,892
|
)
|
|
(1,678
|
)
|
|
206,936
|
|
|
1,143
|
|
|
208,079
|
|
|
|
94
|
|
|
(118
|
)
|
|
|
|
|
|
(24
|
)
|
|
|
|
(24
|
)
|
||||
60,893
|
|
|
145,357
|
|
|
(2,262
|
)
|
|
(29,892
|
)
|
|
(1,678
|
)
|
|
206,912
|
|
|
1,143
|
|
|
208,055
|
|
|
|
400
|
|
|
(400
|
)
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||
|
|
22,393
|
|
|
|
|
|
|
|
|
22,393
|
|
|
483
|
|
|
22,876
|
|
||||
|
|
|
|
(3,674
|
)
|
|
|
|
|
|
(3,674
|
)
|
|
(2
|
)
|
|
(3,676
|
)
|
||||
7
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
(724
|
)
|
|
(717
|
)
|
||||
(76
|
)
|
|
(321
|
)
|
|
|
|
2,073
|
|
|
|
|
1,676
|
|
|
|
|
1,676
|
|
|||
—
|
|
|
|
|
|
|
(20,633
|
)
|
|
|
|
(20,633
|
)
|
|
|
|
(20,633
|
)
|
||||
|
|
(155
|
)
|
|
|
|
|
|
|
|
(2,150
|
)
|
|
|
|
(2,150
|
)
|
|||||
43
|
|
|
|
|
|
|
|
|
(1,143
|
)
|
|
—
|
|
|
|
|
—
|
|
||||
(70
|
)
|
|
|
|
|
|
|
|
1,319
|
|
|
1,249
|
|
|
|
|
1,249
|
|
||||
6
|
|
|
|
|
|
|
1,243
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||
(325
|
)
|
|
|
|
|
|
|
|
|
|
(325
|
)
|
|
|
|
(325
|
)
|
|||||
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|||||
66
|
|
|
(7,955
|
)
|
|
|
|
|
|
|
|
(7,889
|
)
|
|
|
|
(7,889
|
)
|
||||
|
|
(1,556
|
)
|
|
|
|
|
|
|
|
(1,556
|
)
|
|
|
|
(1,556
|
)
|
|||||
1,041
|
|
|
|
|
|
|
|
|
|
|
1,041
|
|
|
|
|
1,041
|
|
|||||
(900
|
)
|
|
|
|
|
|
15
|
|
|
|
|
(885
|
)
|
|
|
|
(885
|
)
|
||||
(208
|
)
|
|
12,806
|
|
|
(4,074
|
)
|
|
(17,302
|
)
|
|
176
|
|
|
(10,746
|
)
|
|
(243
|
)
|
|
(10,989
|
)
|
60,685
|
|
|
158,163
|
|
|
(6,336
|
)
|
|
(47,194
|
)
|
|
(1,502
|
)
|
|
196,166
|
|
|
900
|
|
|
197,066
|
|
|
Wells Fargo & Company
|
125
|
Wells Fargo & Company and Subsidiaries
|
|||||||||||||
Consolidated Statement of Changes in Equity
|
|||||||||||||
|
|
|
|
||||||||||
|
Preferred stock
|
|
|
Common stock
|
|
||||||||
(in millions, except shares)
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
||
Balance December 31, 2018
|
9,377,216
|
|
|
$
|
23,214
|
|
|
4,581,253,608
|
|
|
$
|
9,136
|
|
Cumulative effect from change in accounting policies (1)
|
|
|
|
|
|
|
|
||||||
Balance January 1, 2019
|
9,377,216
|
|
|
23,214
|
|
|
4,581,253,608
|
|
|
9,136
|
|
||
Net income
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||
Noncontrolling interests
|
|
|
|
|
|
|
|
||||||
Common stock issued
|
|
|
|
|
48,771,064
|
|
|
|
|||||
Common stock repurchased
|
|
|
|
|
(502,418,179
|
)
|
|
|
|||||
Preferred stock redeemed (2)
|
(1,550,000
|
)
|
|
(1,330
|
)
|
|
|
|
|
||||
Preferred stock issued to ESOP
|
—
|
|
|
—
|
|
|
|
|
|
||||
Preferred stock released by ESOP
|
|
|
|
|
|
|
|
||||||
Preferred stock converted to common shares
|
(335,047
|
)
|
|
(335
|
)
|
|
6,819,444
|
|
|
|
|||
Common stock warrants repurchased/exercised
|
|
|
|
|
|
|
|
||||||
Preferred stock issued
|
—
|
|
|
—
|
|
|
|
|
|
||||
Common stock dividends
|
|
|
|
|
|
|
|
||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
||||||
Stock incentive compensation expense
|
|
|
|
|
|
|
|
||||||
Net change in deferred compensation and related plans
|
|
|
|
|
|
|
|
||||||
Net change
|
(1,885,047
|
)
|
|
(1,665
|
)
|
|
(446,827,671
|
)
|
|
—
|
|
||
Balance December 31, 2019
|
7,492,169
|
|
|
$
|
21,549
|
|
|
4,134,425,937
|
|
|
$
|
9,136
|
|
(1)
|
Effective January 1, 2019, we adopted ASU 2016-02 – Leases (Topic 842) and subsequent related Updates, ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. See Note 1 (Summary of Significant Accounting Policies) in this Report for more information.
|
(2)
|
Represents the impact of the partial redemption of preferred stock, series K, in third quarter 2019.
|
126
|
Wells Fargo & Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wells Fargo stockholders’ equity
|
|
|
||||||||||||||||||||
Additional
paid-in
capital
|
|
|
Retained earnings
|
|
|
Cumulative
other
comprehensive
income (loss)
|
|
|
Treasury
stock
|
|
|
Unearned
ESOP
shares
|
|
|
Total
Wells Fargo stockholders’ equity
|
|
|
Noncontrolling interests
|
|
|
Total
equity
|
|
60,685
|
|
|
158,163
|
|
|
(6,336
|
)
|
|
(47,194
|
)
|
|
(1,502
|
)
|
|
196,166
|
|
|
900
|
|
|
197,066
|
|
|
|
(492
|
)
|
|
481
|
|
|
|
|
|
|
(11
|
)
|
|
|
|
(11
|
)
|
||||
60,685
|
|
|
157,671
|
|
|
(5,855
|
)
|
|
(47,194
|
)
|
|
(1,502
|
)
|
|
196,155
|
|
|
900
|
|
|
197,055
|
|
|
|
19,549
|
|
|
|
|
|
|
|
|
19,549
|
|
|
492
|
|
|
20,041
|
|
||||
|
|
|
|
4,544
|
|
|
|
|
|
|
4,544
|
|
|
—
|
|
|
4,544
|
|
||||
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
(554
|
)
|
|
(554
|
)
|
||||
9
|
|
|
(382
|
)
|
|
|
|
2,530
|
|
|
|
|
2,157
|
|
|
|
|
2,157
|
|
|||
—
|
|
|
|
|
|
|
(24,533
|
)
|
|
|
|
(24,533
|
)
|
|
|
|
(24,533
|
)
|
||||
|
|
(220
|
)
|
|
|
|
|
|
|
|
(1,550
|
)
|
|
|
|
(1,550
|
)
|
|||||
—
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
||||
(24
|
)
|
|
|
|
|
|
|
|
359
|
|
|
335
|
|
|
|
|
335
|
|
||||
(16
|
)
|
|
|
|
|
|
351
|
|
|
|
|
—
|
|
|
|
|
—
|
|
||||
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|||||
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|||||
86
|
|
|
(8,530
|
)
|
|
|
|
|
|
|
|
(8,444
|
)
|
|
|
|
(8,444
|
)
|
||||
|
|
(1,391
|
)
|
|
|
|
|
|
|
|
(1,391
|
)
|
|
|
|
(1,391
|
)
|
|||||
1,234
|
|
|
|
|
|
|
|
|
|
|
1,234
|
|
|
|
|
1,234
|
|
|||||
(925
|
)
|
|
|
|
|
|
15
|
|
|
|
|
(910
|
)
|
|
|
|
(910
|
)
|
||||
364
|
|
|
9,026
|
|
|
4,544
|
|
|
(21,637
|
)
|
|
359
|
|
|
(9,009
|
)
|
|
(62
|
)
|
|
(9,071
|
)
|
61,049
|
|
|
166,697
|
|
|
(1,311
|
)
|
|
(68,831
|
)
|
|
(1,143
|
)
|
|
187,146
|
|
|
838
|
|
|
187,984
|
|
|
Wells Fargo & Company
|
127
|
Wells Fargo & Company and Subsidiaries
|
|||||||||
Consolidated Statement of Cash Flows
|
|||||||||
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
||||
Net income before noncontrolling interests
|
$
|
20,041
|
|
|
22,876
|
|
|
22,460
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||
Provision for credit losses
|
2,687
|
|
|
1,744
|
|
|
2,528
|
|
|
Changes in fair value of MSRs, MLHFS and LHFS carried at fair value
|
3,702
|
|
|
453
|
|
|
886
|
|
|
Depreciation, amortization and accretion
|
7,075
|
|
|
5,593
|
|
|
5,406
|
|
|
Other net gains
|
(5,500
|
)
|
|
(7,630
|
)
|
|
(1,518
|
)
|
|
Stock-based compensation
|
2,274
|
|
|
2,255
|
|
|
2,046
|
|
|
Originations and purchases of mortgage loans held for sale
|
(158,673
|
)
|
|
(152,832
|
)
|
|
(181,269
|
)
|
|
Proceeds from sales of and paydowns on mortgage loans held for sale
|
112,718
|
|
|
119,097
|
|
|
134,984
|
|
|
Net change in:
|
|
|
|
|
|
||||
Debt and equity securities, held for trading
|
22,066
|
|
|
35,054
|
|
|
33,505
|
|
|
Loans held for sale
|
788
|
|
|
(960
|
)
|
|
327
|
|
|
Deferred income taxes
|
(3,246
|
)
|
|
1,970
|
|
|
666
|
|
|
Derivative assets and liabilities
|
(2,665
|
)
|
|
1,513
|
|
|
(5,025
|
)
|
|
Other assets
|
3,034
|
|
|
7,805
|
|
|
(1,214
|
)
|
|
Other accrued expenses and liabilities
|
2,429
|
|
|
(865
|
)
|
|
4,837
|
|
|
Net cash provided by operating activities
|
6,730
|
|
|
36,073
|
|
|
18,619
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||
Net change in:
|
|
|
|
|
|
||||
Federal funds sold and securities purchased under resale agreements
|
(21,933
|
)
|
|
(1,184
|
)
|
|
(21,497
|
)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
||||
Proceeds from sales
|
9,386
|
|
|
7,320
|
|
|
42,067
|
|
|
Prepayments and maturities
|
46,542
|
|
|
36,725
|
|
|
45,688
|
|
|
Purchases
|
(57,015
|
)
|
|
(60,067
|
)
|
|
(103,656
|
)
|
|
Held-to-maturity securities:
|
|
|
|
|
|
||||
Paydowns and maturities
|
13,684
|
|
|
10,934
|
|
|
10,673
|
|
|
Purchases
|
(8,649
|
)
|
|
—
|
|
|
—
|
|
|
Equity securities, not held for trading:
|
|
|
|
|
|
||||
Proceeds from sales and capital returns
|
6,143
|
|
|
6,242
|
|
|
5,451
|
|
|
Purchases
|
(6,865
|
)
|
|
(6,433
|
)
|
|
(3,735
|
)
|
|
Loans:
|
|
|
|
|
|
||||
Loans originated by banking subsidiaries, net of principal collected
|
(23,698
|
)
|
|
(18,619
|
)
|
|
317
|
|
|
Proceeds from sales (including participations) of loans held for investment
|
12,038
|
|
|
16,294
|
|
|
10,439
|
|
|
Purchases (including participations) of loans
|
(2,033
|
)
|
|
(2,088
|
)
|
|
(3,702
|
)
|
|
Principal collected on nonbank entities’ loans
|
3,912
|
|
|
6,791
|
|
|
7,448
|
|
|
Loans originated by nonbank entities
|
(5,274
|
)
|
|
(6,482
|
)
|
|
(6,814
|
)
|
|
Proceeds from sales of foreclosed assets and short sales
|
2,666
|
|
|
3,592
|
|
|
5,198
|
|
|
Other, net (1)
|
1,465
|
|
|
(779
|
)
|
|
(1,029
|
)
|
|
Net cash used by investing activities
|
(29,631
|
)
|
|
(7,754
|
)
|
|
(13,152
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
||||
Net change in:
|
|
|
|
|
|
||||
Deposits
|
36,137
|
|
|
(48,034
|
)
|
|
29,912
|
|
|
Short-term borrowings
|
(1,275
|
)
|
|
2,531
|
|
|
14,020
|
|
|
Long-term debt:
|
|
|
|
|
|
||||
Proceeds from issuance
|
53,381
|
|
|
47,595
|
|
|
43,575
|
|
|
Repayment
|
(60,996
|
)
|
|
(40,565
|
)
|
|
(80,802
|
)
|
|
Preferred stock:
|
|
|
|
|
|
||||
Proceeds from issuance
|
—
|
|
|
—
|
|
|
677
|
|
|
Redeemed
|
(1,550
|
)
|
|
(2,150
|
)
|
|
—
|
|
|
Cash dividends paid
|
(1,391
|
)
|
|
(1,622
|
)
|
|
(1,629
|
)
|
|
Common stock:
|
|
|
|
|
|
||||
Proceeds from issuance
|
380
|
|
|
632
|
|
|
1,211
|
|
|
Stock tendered for payment of withholding taxes
|
(302
|
)
|
|
(331
|
)
|
|
(393
|
)
|
|
Repurchased
|
(24,533
|
)
|
|
(20,633
|
)
|
|
(9,908
|
)
|
|
Cash dividends paid
|
(8,198
|
)
|
|
(7,692
|
)
|
|
(7,480
|
)
|
|
Net change in noncontrolling interests
|
(513
|
)
|
|
(462
|
)
|
|
30
|
|
|
Other, net
|
(276
|
)
|
|
(248
|
)
|
|
(133
|
)
|
|
Net cash used by financing activities
|
(9,136
|
)
|
|
(70,979
|
)
|
|
(10,920
|
)
|
|
Net change in cash, cash equivalents, and restricted cash
|
(32,037
|
)
|
|
(42,660
|
)
|
|
(5,453
|
)
|
|
Cash, cash equivalents, and restricted cash at beginning of year
|
173,287
|
|
|
215,947
|
|
|
221,400
|
|
|
Cash, cash equivalents, and restricted cash at end of year
|
$
|
141,250
|
|
|
173,287
|
|
|
215,947
|
|
Supplemental cash flow disclosures:
|
|
|
|
|
|
||||
Cash paid for interest
|
$
|
18,834
|
|
|
14,366
|
|
|
9,103
|
|
Cash paid for income taxes
|
7,557
|
|
|
1,977
|
|
|
6,592
|
|
(1)
|
Prior periods have been revised to conform to the current period presentation.
|
128
|
Wells Fargo & Company
|
|
Note 1: Summary of Significant Accounting Policies
|
•
|
allowance for credit losses (Note 6 (Loans and Allowance for Credit Losses));
|
•
|
valuations of residential mortgage servicing rights (MSRs) (Note 10 (Securitizations and Variable Interest Entities) and Note 11 (Mortgage Banking Activities));
|
•
|
valuations of financial instruments (Note 18 (Derivatives) and Note 19 (Fair Values of Assets and Liabilities));
|
•
|
liabilities for contingent litigation losses (Note 17 (Legal Actions)); and
|
•
|
income taxes (Note 24 (Income Taxes)).
|
•
|
Accounting Standards Update (ASU or Update) 2018-16 – Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
|
•
|
ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
|
•
|
ASU 2016-02 – Leases (Topic 842) and subsequent related Updates, including early adoption of ASU 2019-01 – Leases (Topic 842): Codification Improvements
|
|
Wells Fargo & Company
|
129
|
Balance sheet caption
|
Measurement model(s)
|
Financial statement Note reference
|
Cash and due from banks
|
Amortized cost
|
Note 3: Cash, Loan and Dividend Restrictions
|
Interest-earning deposits with banks
|
Amortized cost
|
Note 3: Cash, Loan and Dividend Restrictions
|
Federal funds sold and securities purchased under resale agreements
|
Amortized cost
|
N/A
|
Debt securities:
|
|
|
Trading
|
FV-NI (1)
|
Note 4: Trading Activities
Note 19: Fair Values of Assets and Liabilities |
Available-for-sale
|
FV-OCI (2)
|
Note 5: Available-for-Sale and Held-to-Maturity Debt Securities
Note 19: Fair Values of Assets and Liabilities |
Held-to-maturity
|
Amortized cost
|
Note 5: Available-for-Sale and Held-to-Maturity Debt Securities
|
Mortgage loans held for sale
|
FV-NI (1)
LOCOM (3)
|
Note 19: Fair Values of Assets and Liabilities
|
Loans held for sale
|
FV-NI (1)
LOCOM (3) |
Note 19: Fair Values of Assets and Liabilities
|
Loans
|
Amortized cost
FV-NI (1)
|
Note 6: Loans and Allowance for Credit Losses
Note 19: Fair Values of Assets and Liabilities |
Derivative assets and liabilities
|
FV-NI (1)
FV-OCI (2)
|
Note 4: Trading Activities
Note 18: Derivatives Note 19: Fair Values of Assets and Liabilities |
Equity securities:
|
|
|
Marketable
|
FV-NI (1)
|
Note 4: Trading Activities
Note 8: Equity Securities Note 19: Fair Values of Assets and Liabilities |
Nonmarketable
|
FV-NI (1)
Cost method
Equity method
MA (4)
|
Note 4: Trading Activities
Note 8: Equity Securities Note 19: Fair Values of Assets and Liabilities |
Other assets
|
Amortized cost (5)
|
Note 9: Premises, Equipment, and Other Assets
|
Deposits
|
Amortized cost
|
Note 13: Deposits
|
Short-term borrowings
|
Amortized cost
|
Note 14: Short-Term Borrowings
|
Accrued expenses and other liabilities
|
Amortized cost (6)
|
Note 4: Trading Activities
Note 7: Leasing Activity
Note 19: Fair Values of Assets and Liabilities
|
Long-term debt
|
Amortized cost
|
Note 15: Long-Term Debt
|
(1)
|
FV-NI represents the fair value through net income accounting model.
|
(2)
|
FV-OCI represents the fair value through other comprehensive income accounting model.
|
(3)
|
LOCOM represents the lower of cost or fair value accounting model.
|
(4)
|
MA represents the measurement alternative accounting model.
|
(5)
|
Other assets are generally measured at amortized cost, except for bank-owned life insurance which is measured at cash surrender value.
|
(6)
|
Accrued expenses and other liabilities are generally measured at amortized cost, except for trading short-sale liabilities which are measured at FV-NI.
|
130
|
Wells Fargo & Company
|
|
•
|
the length of time and the extent to which the fair value has been less than the amortized cost basis;
|
•
|
the historical and implied volatility of the fair value of the security;
|
•
|
the cause of the price decline, such as the general level of interest rates or adverse conditions specifically related to the security, an industry or a geographic area;
|
•
|
the issuer’s financial condition, near-term prospects and ability to service the debt;
|
•
|
the payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future;
|
•
|
for asset-backed securities, the credit performance of the underlying collateral, including delinquency rates, level of non-performing assets, cumulative losses to date, collateral value and the remaining credit enhancement compared with expected credit losses;
|
•
|
any change in rating agencies’ credit ratings and any likely imminent action;
|
•
|
independent analyst reports and forecasts, sector credit ratings and other independent market data; and
|
•
|
recoveries or additional declines in fair value subsequent to the balance sheet date.
|
|
Wells Fargo & Company
|
131
|
•
|
the full and timely collection of interest or principal becomes uncertain (generally based on an assessment of the borrower’s financial condition and the adequacy of collateral, if any), such as in bankruptcy or other circumstances;
|
•
|
they are 90 days (120 days with respect to real estate 1-4 family mortgages) past due for interest or principal, unless both well-secured and in the process of collection;
|
•
|
part of the principal balance has been charged off; or
|
•
|
for junior lien mortgages, we have evidence that the related first lien mortgage may be 120 days past due or in the process of foreclosure regardless of the junior lien delinquency status.
|
132
|
Wells Fargo & Company
|
|
•
|
management judges the loan to be uncollectible;
|
•
|
repayment is deemed to be protracted beyond reasonable time frames;
|
•
|
the loan has been classified as a loss by either our internal loan review process or our banking regulatory agencies;
|
•
|
the customer has filed bankruptcy and the loss becomes evident owing to a lack of assets; or
|
•
|
the loan is 180 days past due unless both well-secured and in the process of collection.
|
•
|
Real estate 1-4 family mortgages – We generally charge down to net realizable value when the loan is 180 days past due.
|
•
|
Automobile loans – We generally fully charge off when the loan is 120 days past due.
|
•
|
Credit card loans – We generally fully charge off when the loan is 180 days past due.
|
•
|
Unsecured loans (closed end) – We generally fully charge off when the loan is 120 days past due.
|
•
|
Unsecured loans (open end) – We generally fully charge off when the loan is 180 days past due.
|
•
|
Other secured loans – We generally fully or partially charge down to net realizable value when the loan is 120 days past due.
|
|
Wells Fargo & Company
|
133
|
134
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
135
|
•
|
For fair value hedges of interest rate risk, amounts are reflected in net interest income;
|
•
|
For hedges of foreign currency risk, amounts representing the fair value changes less the accrual for periodic cash flow settlements are reflected in noninterest income. The periodic cash flow settlements are reflected in net interest income;
|
•
|
For hedges of both interest rate risk and foreign currency risk, amounts representing the fair value change less the accrual for periodic cash flow settlements is attributed to both net interest income and noninterest income. The
|
136
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
137
|
•
|
Fair value: This method is an election. The securities are recorded at fair value with unrealized gains or losses reflected in noninterest income;
|
•
|
Equity method: This method is applied when we have the ability to exert significant influence over the investee. These securities are carried at cost and adjusted for our share of the investee’s earnings or losses, less any dividends received and/or impairments;
|
•
|
Cost method: This method is required for specific securities, such as Federal Reserve Bank stock and Federal Home Loan Bank stock. These investments are held at amortized cost less any impairments. If impaired, the carrying value is written down to the fair value of the security;
|
•
|
Measurement alternative: This method is followed by all remaining nonmarketable equity securities. These securities are initially carried at amortized cost and are remeasured to fair value as of the date of an orderly observable transaction of the same or similar security of the same issuer. These securities are also adjusted for any impairments.
|
138
|
Wells Fargo & Company
|
|
•
|
Level 1 - Valuation is based upon quoted prices for identical instruments traded in active markets.
|
•
|
Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
•
|
Level 3 - Valuation is generated from techniques that use significant assumptions that are not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
|
|
Wells Fargo & Company
|
139
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Trading debt securities retained from securitization of MLHFS
|
$
|
40,650
|
|
|
37,265
|
|
|
52,435
|
|
Transfers from loans to MLHFS
|
6,330
|
|
|
5,366
|
|
|
5,500
|
|
|
Transfers from available-for-sale debt securities to held-to-maturity debt securities
|
13,833
|
|
|
16,479
|
|
|
50,405
|
|
|
Operating lease ROU assets acquired with operating lease liabilities (1)
|
5,804
|
|
|
—
|
|
|
—
|
|
(1)
|
The year ended December 31, 2019, balance includes $4.9 billion from adoption of ASU 2016-02 – Leases (Topic 842) and $904 million attributable to new leases and changes from modified leases.
|
140
|
Wells Fargo & Company
|
|
Note 2: Business Combinations
|
|
Wells Fargo & Company
|
141
|
Note 3: Cash, Loan and Dividend Restrictions
|
(in millions)
|
Dec 31,
2019 |
|
|
Dec 31,
2018 |
|
|
Average required reserve balance for FRB (1)
|
$
|
11,374
|
|
|
12,428
|
|
Reserve balance for non-U.S. central banks
|
460
|
|
|
517
|
|
|
Segregated for benefit of brokerage customers under federal and other brokerage regulations
|
733
|
|
|
1,135
|
|
|
Related to consolidated variable interest entities (VIEs) that can only be used to settle liabilities of VIEs
|
300
|
|
|
147
|
|
(1)
|
FRB required reserve balance represents average for the years ended December 31, 2019, and December 31, 2018.
|
142
|
Wells Fargo & Company
|
|
Note 4: Trading Activities
|
(in millions)
|
Dec 31,
2019 |
|
|
Dec 31,
2018 |
|
|
Trading assets:
|
|
|
|
|||
Debt securities
|
$
|
79,733
|
|
|
69,989
|
|
Equity securities
|
27,440
|
|
|
19,449
|
|
|
Loans held for sale
|
972
|
|
|
1,469
|
|
|
Gross trading derivative assets
|
34,825
|
|
|
29,216
|
|
|
Netting (1)
|
(21,463
|
)
|
|
(19,807
|
)
|
|
Total trading derivative assets
|
13,362
|
|
|
9,409
|
|
|
Total trading assets
|
121,507
|
|
|
100,316
|
|
|
Trading liabilities:
|
|
|
|
|||
Short sale
|
17,430
|
|
|
19,720
|
|
|
Gross trading derivative liabilities
|
33,861
|
|
|
28,717
|
|
|
Netting (1)
|
(26,074
|
)
|
|
(21,178
|
)
|
|
Total trading derivative liabilities
|
7,787
|
|
|
7,539
|
|
|
Total trading liabilities
|
$
|
25,217
|
|
|
27,259
|
|
(1)
|
Represents balance sheet netting for trading derivative asset and liability balances, and trading portfolio level counterparty valuation adjustments.
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Interest income:
|
|
|
|
|
|
||||
Debt securities
|
$
|
3,130
|
|
|
2,831
|
|
|
2,313
|
|
Equity securities
|
579
|
|
|
587
|
|
|
515
|
|
|
Loans held for sale
|
78
|
|
|
62
|
|
|
38
|
|
|
Total interest income
|
3,787
|
|
|
3,480
|
|
|
2,866
|
|
|
Less: Interest expense
|
525
|
|
|
587
|
|
|
416
|
|
|
Net interest income
|
3,262
|
|
|
2,893
|
|
|
2,450
|
|
|
Net gains (losses) from trading activities (1):
|
|
|
|
|
|
||||
Debt securities
|
1,053
|
|
|
(824
|
)
|
|
125
|
|
|
Equity securities
|
4,795
|
|
|
(4,240
|
)
|
|
3,394
|
|
|
Loans held for sale
|
12
|
|
|
(1
|
)
|
|
45
|
|
|
Derivatives (2)
|
(4,867
|
)
|
|
5,667
|
|
|
(3,022
|
)
|
|
Total net gains from trading activities
|
993
|
|
|
602
|
|
|
542
|
|
|
Total trading-related net interest and noninterest income
|
$
|
4,255
|
|
|
3,495
|
|
|
2,992
|
|
(1)
|
Represents realized gains (losses) from our trading activities and unrealized gains (losses) due to changes in fair value of our trading positions.
|
(2)
|
Excludes economic hedging of mortgage banking and asset/liability management activities, for which hedge results (realized and unrealized) are reported with the respective hedged activities.
|
|
Wells Fargo & Company
|
143
|
Note 5: Available-for-Sale and Held-to-Maturity Debt Securities
|
(in millions)
|
Amortized cost
|
|
|
Gross
unrealized gains
|
|
|
Gross
unrealized losses
|
|
|
Fair value
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
$
|
14,948
|
|
|
13
|
|
|
(1
|
)
|
|
14,960
|
|
Securities of U.S. states and political subdivisions (1)
|
39,381
|
|
|
992
|
|
|
(36
|
)
|
|
40,337
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|||||
Federal agencies
|
160,318
|
|
|
2,299
|
|
|
(164
|
)
|
|
162,453
|
|
|
Residential
|
814
|
|
|
14
|
|
|
(1
|
)
|
|
827
|
|
|
Commercial
|
3,899
|
|
|
41
|
|
|
(6
|
)
|
|
3,934
|
|
|
Total mortgage-backed securities
|
165,031
|
|
|
2,354
|
|
|
(171
|
)
|
|
167,214
|
|
|
Corporate debt securities
|
6,343
|
|
|
252
|
|
|
(32
|
)
|
|
6,563
|
|
|
Collateralized loan and other debt obligations
|
29,693
|
|
|
125
|
|
|
(123
|
)
|
|
29,695
|
|
|
Other (2)
|
4,664
|
|
|
50
|
|
|
(24
|
)
|
|
4,690
|
|
|
Total available-for-sale debt securities
|
260,060
|
|
|
3,786
|
|
|
(387
|
)
|
|
263,459
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
45,541
|
|
|
617
|
|
|
(19
|
)
|
|
46,139
|
|
|
Securities of U.S. states and political subdivisions
|
13,486
|
|
|
286
|
|
|
(13
|
)
|
|
13,759
|
|
|
Federal agency and other mortgage-backed securities (3)
|
94,869
|
|
|
2,093
|
|
|
(37
|
)
|
|
96,925
|
|
|
Other debt securities
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
Total held-to-maturity debt securities
|
153,933
|
|
|
2,996
|
|
|
(69
|
)
|
|
156,860
|
|
|
Total (4)
|
$
|
413,993
|
|
|
6,782
|
|
|
(456
|
)
|
|
420,319
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
$
|
13,451
|
|
|
3
|
|
|
(106
|
)
|
|
13,348
|
|
Securities of U.S. states and political subdivisions (1)
|
48,994
|
|
|
716
|
|
|
(446
|
)
|
|
49,264
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|||||
Federal agencies
|
155,974
|
|
|
369
|
|
|
(3,140
|
)
|
|
153,203
|
|
|
Residential
|
2,638
|
|
|
142
|
|
|
(5
|
)
|
|
2,775
|
|
|
Commercial
|
4,207
|
|
|
40
|
|
|
(22
|
)
|
|
4,225
|
|
|
Total mortgage-backed securities
|
162,819
|
|
|
551
|
|
|
(3,167
|
)
|
|
160,203
|
|
|
Corporate debt securities
|
6,230
|
|
|
131
|
|
|
(90
|
)
|
|
6,271
|
|
|
Collateralized loan and other debt obligations
|
35,581
|
|
|
158
|
|
|
(396
|
)
|
|
35,343
|
|
|
Other (2)
|
5,396
|
|
|
100
|
|
|
(13
|
)
|
|
5,483
|
|
|
Total available-for-sale debt securities
|
272,471
|
|
|
1,659
|
|
|
(4,218
|
)
|
|
269,912
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
44,751
|
|
|
4
|
|
|
(415
|
)
|
|
44,340
|
|
|
Securities of U.S. states and political subdivisions
|
6,286
|
|
|
30
|
|
|
(116
|
)
|
|
6,200
|
|
|
Federal agency and other mortgage-backed securities (3)
|
93,685
|
|
|
112
|
|
|
(2,288
|
)
|
|
91,509
|
|
|
Other debt securities
|
66
|
|
|
—
|
|
|
—
|
|
|
66
|
|
|
Total held-to-maturity debt securities
|
144,788
|
|
|
146
|
|
|
(2,819
|
)
|
|
142,115
|
|
|
Total (4)
|
$
|
417,259
|
|
|
1,805
|
|
|
(7,037
|
)
|
|
412,027
|
|
(1)
|
Includes investments in tax-exempt preferred debt securities issued by investment funds or trusts that predominantly invest in tax-exempt municipal securities. The amortized cost and fair value of these types of securities was $5.8 billion each at December 31, 2019, and $6.3 billion each at December 31, 2018.
|
(2)
|
Largely includes asset-backed securities collateralized by student loans.
|
(3)
|
Predominantly consists of federal agency mortgage-backed securities at both December 31, 2019, and December 31, 2018.
|
(4)
|
We held debt securities from Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) that each exceeded 10% of shareholders’ equity, with an amortized cost of $112.1 billion and $89.9 billion and a fair value of $114.0 billion and $91.4 billion at December 31, 2019, and an amortized cost of $99.0 billion and $95.0 billion and a fair value of $97.6 billion and $93.0 billion at December 31, 2018, respectively.
|
144
|
Wells Fargo & Company
|
|
|
Less than 12 months
|
|
|
12 months or more
|
|
|
Total
|
|
||||||||||
(in millions)
|
Gross unrealized losses
|
|
|
Fair value
|
|
|
Gross unrealized losses
|
|
|
Fair value
|
|
|
Gross unrealized losses
|
|
|
Fair value
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
$
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
2,423
|
|
|
(1
|
)
|
|
2,423
|
|
Securities of U.S. states and political subdivisions
|
(10
|
)
|
|
2,776
|
|
|
(26
|
)
|
|
2,418
|
|
|
(36
|
)
|
|
5,194
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Federal agencies
|
(50
|
)
|
|
16,807
|
|
|
(114
|
)
|
|
10,641
|
|
|
(164
|
)
|
|
27,448
|
|
|
Residential
|
(1
|
)
|
|
149
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
149
|
|
|
Commercial
|
(3
|
)
|
|
998
|
|
|
(3
|
)
|
|
244
|
|
|
(6
|
)
|
|
1,242
|
|
|
Total mortgage-backed securities
|
(54
|
)
|
|
17,954
|
|
|
(117
|
)
|
|
10,885
|
|
|
(171
|
)
|
|
28,839
|
|
|
Corporate debt securities
|
(9
|
)
|
|
303
|
|
|
(23
|
)
|
|
216
|
|
|
(32
|
)
|
|
519
|
|
|
Collateralized loan and other debt obligations
|
(13
|
)
|
|
5,070
|
|
|
(110
|
)
|
|
16,789
|
|
|
(123
|
)
|
|
21,859
|
|
|
Other
|
(12
|
)
|
|
1,587
|
|
|
(12
|
)
|
|
492
|
|
|
(24
|
)
|
|
2,079
|
|
|
Total available-for-sale debt securities
|
(98
|
)
|
|
27,690
|
|
|
(289
|
)
|
|
33,223
|
|
|
(387
|
)
|
|
60,913
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
(19
|
)
|
|
989
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
989
|
|
|
Securities of U.S. states and political subdivisions
|
(9
|
)
|
|
613
|
|
|
(4
|
)
|
|
57
|
|
|
(13
|
)
|
|
670
|
|
|
Federal agency and other mortgage-backed securities
|
(35
|
)
|
|
5,825
|
|
|
(2
|
)
|
|
31
|
|
|
(37
|
)
|
|
5,856
|
|
|
Total held-to-maturity debt securities
|
(63
|
)
|
|
7,427
|
|
|
(6
|
)
|
|
88
|
|
|
(69
|
)
|
|
7,515
|
|
|
Total
|
$
|
(161
|
)
|
|
35,117
|
|
|
(295
|
)
|
|
33,311
|
|
|
(456
|
)
|
|
68,428
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
$
|
(1
|
)
|
|
498
|
|
|
(105
|
)
|
|
6,204
|
|
|
(106
|
)
|
|
6,702
|
|
Securities of U.S. states and political subdivisions
|
(73
|
)
|
|
9,746
|
|
|
(373
|
)
|
|
9,017
|
|
|
(446
|
)
|
|
18,763
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Federal agencies
|
(42
|
)
|
|
10,979
|
|
|
(3,098
|
)
|
|
112,252
|
|
|
(3,140
|
)
|
|
123,231
|
|
|
Residential
|
(3
|
)
|
|
398
|
|
|
(2
|
)
|
|
69
|
|
|
(5
|
)
|
|
467
|
|
|
Commercial
|
(20
|
)
|
|
1,972
|
|
|
(2
|
)
|
|
79
|
|
|
(22
|
)
|
|
2,051
|
|
|
Total mortgage-backed securities
|
(65
|
)
|
|
13,349
|
|
|
(3,102
|
)
|
|
112,400
|
|
|
(3,167
|
)
|
|
125,749
|
|
|
Corporate debt securities
|
(64
|
)
|
|
1,965
|
|
|
(26
|
)
|
|
298
|
|
|
(90
|
)
|
|
2,263
|
|
|
Collateralized loan and other debt obligations
|
(388
|
)
|
|
28,306
|
|
|
(8
|
)
|
|
553
|
|
|
(396
|
)
|
|
28,859
|
|
|
Other
|
(7
|
)
|
|
819
|
|
|
(6
|
)
|
|
159
|
|
|
(13
|
)
|
|
978
|
|
|
Total available-for-sale debt securities
|
(598
|
)
|
|
54,683
|
|
|
(3,620
|
)
|
|
128,631
|
|
|
(4,218
|
)
|
|
183,314
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
(3
|
)
|
|
895
|
|
|
(412
|
)
|
|
41,083
|
|
|
(415
|
)
|
|
41,978
|
|
|
Securities of U.S. states and political subdivisions
|
(4
|
)
|
|
598
|
|
|
(112
|
)
|
|
3,992
|
|
|
(116
|
)
|
|
4,590
|
|
|
Federal agency and other mortgage-backed securities
|
(5
|
)
|
|
4,635
|
|
|
(2,283
|
)
|
|
77,741
|
|
|
(2,288
|
)
|
|
82,376
|
|
|
Total held-to-maturity debt securities
|
(12
|
)
|
|
6,128
|
|
|
(2,807
|
)
|
|
122,816
|
|
|
(2,819
|
)
|
|
128,944
|
|
|
Total
|
$
|
(610
|
)
|
|
60,811
|
|
|
(6,427
|
)
|
|
251,447
|
|
|
(7,037
|
)
|
|
312,258
|
|
|
Wells Fargo & Company
|
145
|
146
|
Wells Fargo & Company
|
|
|
Investment grade
|
|
|
Non-investment grade
|
|
|||||||
(in millions)
|
Gross
unrealized losses
|
|
|
Fair value
|
|
|
Gross
unrealized losses
|
|
|
Fair value
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
$
|
(1
|
)
|
|
2,423
|
|
|
—
|
|
|
—
|
|
Securities of U.S. states and political subdivisions
|
(32
|
)
|
|
5,019
|
|
|
(4
|
)
|
|
175
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|||||
Federal agencies
|
(164
|
)
|
|
27,448
|
|
|
—
|
|
|
—
|
|
|
Residential
|
(1
|
)
|
|
149
|
|
|
—
|
|
|
—
|
|
|
Commercial
|
(3
|
)
|
|
1,158
|
|
|
(3
|
)
|
|
84
|
|
|
Total mortgage-backed securities
|
(168
|
)
|
|
28,755
|
|
|
(3
|
)
|
|
84
|
|
|
Corporate debt securities
|
(3
|
)
|
|
155
|
|
|
(29
|
)
|
|
364
|
|
|
Collateralized loan and other debt obligations
|
(123
|
)
|
|
21,859
|
|
|
—
|
|
|
—
|
|
|
Other
|
(13
|
)
|
|
1,499
|
|
|
(11
|
)
|
|
580
|
|
|
Total available-for-sale debt securities
|
(340
|
)
|
|
59,710
|
|
|
(47
|
)
|
|
1,203
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
(19
|
)
|
|
989
|
|
|
—
|
|
|
—
|
|
|
Securities of U.S. states and political subdivisions
|
(13
|
)
|
|
670
|
|
|
—
|
|
|
—
|
|
|
Federal agency and other mortgage-backed securities
|
(25
|
)
|
|
5,428
|
|
|
(12
|
)
|
|
428
|
|
|
Total held-to-maturity debt securities
|
(57
|
)
|
|
7,087
|
|
|
(12
|
)
|
|
428
|
|
|
Total
|
$
|
(397
|
)
|
|
66,797
|
|
|
(59
|
)
|
|
1,631
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
$
|
(106
|
)
|
|
6,702
|
|
|
—
|
|
|
—
|
|
Securities of U.S. states and political subdivisions
|
(425
|
)
|
|
18,447
|
|
|
(21
|
)
|
|
316
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|||||
Federal agencies
|
(3,140
|
)
|
|
123,231
|
|
|
—
|
|
|
—
|
|
|
Residential
|
(2
|
)
|
|
295
|
|
|
(3
|
)
|
|
172
|
|
|
Commercial
|
(20
|
)
|
|
1,999
|
|
|
(2
|
)
|
|
52
|
|
|
Total mortgage-backed securities
|
(3,162
|
)
|
|
125,525
|
|
|
(5
|
)
|
|
224
|
|
|
Corporate debt securities
|
(17
|
)
|
|
791
|
|
|
(73
|
)
|
|
1,472
|
|
|
Collateralized loan and other debt obligations
|
(396
|
)
|
|
28,859
|
|
|
—
|
|
|
—
|
|
|
Other
|
(7
|
)
|
|
726
|
|
|
(6
|
)
|
|
252
|
|
|
Total available-for-sale debt securities
|
(4,113
|
)
|
|
181,050
|
|
|
(105
|
)
|
|
2,264
|
|
|
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|||||
Securities of U.S. Treasury and federal agencies
|
(415
|
)
|
|
41,978
|
|
|
—
|
|
|
—
|
|
|
Securities of U.S. states and political subdivisions
|
(116
|
)
|
|
4,590
|
|
|
—
|
|
|
—
|
|
|
Federal agency and other mortgage-backed securities
|
(2,278
|
)
|
|
81,977
|
|
|
(10
|
)
|
|
399
|
|
|
Total held-to-maturity debt securities
|
(2,809
|
)
|
|
128,545
|
|
|
(10
|
)
|
|
399
|
|
|
Total
|
$
|
(6,922
|
)
|
|
309,595
|
|
|
(115
|
)
|
|
2,663
|
|
|
Wells Fargo & Company
|
147
|
|
|
|
Remaining contractual maturity
|
|
||||||||||||||||||||||||||||||
|
Total
|
|
|
|
|
Within one year
|
|
|
After one year
through five years |
|
|
After five years
through ten years |
|
|
After ten years
|
|
||||||||||||||||||
(in millions)
|
amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Available-for-sale debt securities (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities of U.S. Treasury and federal agencies
|
$
|
14,960
|
|
|
1.96
|
%
|
|
$
|
9,980
|
|
|
1.88
|
%
|
|
$
|
4,674
|
|
|
2.12
|
%
|
|
$
|
46
|
|
|
1.83
|
%
|
|
$
|
260
|
|
|
2.25
|
%
|
Securities of U.S. states and political subdivisions
|
40,337
|
|
|
4.82
|
|
|
2,687
|
|
|
2.91
|
|
|
3,208
|
|
|
3.31
|
|
|
4,245
|
|
|
3.21
|
|
|
30,197
|
|
|
5.38
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Federal agencies
|
162,453
|
|
|
3.43
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|
3.40
|
|
|
1,326
|
|
|
2.52
|
|
|
160,975
|
|
|
3.44
|
|
|||||
Residential
|
827
|
|
|
2.78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
827
|
|
|
2.78
|
|
|||||
Commercial
|
3,934
|
|
|
3.44
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
4.03
|
|
|
235
|
|
|
3.22
|
|
|
3,668
|
|
|
3.45
|
|
|||||
Total mortgage-backed securities
|
167,214
|
|
|
3.43
|
|
|
—
|
|
|
—
|
|
|
183
|
|
|
3.51
|
|
|
1,561
|
|
|
2.62
|
|
|
165,470
|
|
|
3.43
|
|
|||||
Corporate debt securities
|
6,563
|
|
|
4.83
|
|
|
460
|
|
|
5.37
|
|
|
2,251
|
|
|
4.93
|
|
|
3,070
|
|
|
4.64
|
|
|
782
|
|
|
4.98
|
|
|||||
Collateralized loan and other debt obligations
|
29,695
|
|
|
3.33
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,137
|
|
|
3.43
|
|
|
17,558
|
|
|
3.27
|
|
|||||
Other
|
4,690
|
|
|
2.57
|
|
|
35
|
|
|
4.16
|
|
|
687
|
|
|
3.15
|
|
|
1,408
|
|
|
1.80
|
|
|
2,560
|
|
|
2.81
|
|
|||||
Total available-for-sale debt securities at fair value
|
$
|
263,459
|
|
|
3.57
|
%
|
|
$
|
13,162
|
|
|
2.22
|
%
|
|
$
|
11,003
|
|
|
3.12
|
%
|
|
$
|
22,467
|
|
|
3.39
|
%
|
|
$
|
216,827
|
|
|
3.69
|
%
|
(1)
|
Weighted-average yields displayed by maturity bucket are weighted based on fair value and predominantly represent contractual coupon rates without effect for any related hedging derivatives.
|
|
|
|
Remaining contractual maturity
|
|
||||||||||||||||||||||||||||||
|
Total
|
|
|
|
|
Within one year
|
|
|
After one year
through five years
|
|
|
After five years
through ten years
|
|
|
After ten years
|
|
||||||||||||||||||
(in millions)
|
amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|
Amount
|
|
|
Yield
|
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Held-to-maturity debt securities (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities of U.S. Treasury and federal agencies
|
$
|
45,541
|
|
|
2.12
|
%
|
|
$
|
1,296
|
|
|
1.75
|
%
|
|
$
|
42,242
|
|
|
2.13
|
%
|
|
$
|
1,244
|
|
|
2.00
|
%
|
|
$
|
759
|
|
|
2.33
|
%
|
Securities of U.S. states and political subdivisions
|
13,486
|
|
|
4.89
|
|
|
—
|
|
|
—
|
|
|
87
|
|
|
5.95
|
|
|
1,866
|
|
|
4.80
|
|
|
11,533
|
|
|
4.90
|
|
|||||
Federal agency and other mortgage-backed securities
|
94,869
|
|
|
3.08
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
3.10
|
|
|
—
|
|
|
—
|
|
|
94,854
|
|
|
3.08
|
|
|||||
Other debt securities
|
37
|
|
|
3.18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
3.18
|
|
|
—
|
|
|
—
|
|
|||||
Total held-to-maturity debt securities at amortized cost
|
$
|
153,933
|
|
|
2.95
|
%
|
|
$
|
1,296
|
|
|
1.75
|
%
|
|
$
|
42,344
|
|
|
2.14
|
%
|
|
$
|
3,147
|
|
|
3.68
|
%
|
|
$
|
107,146
|
|
|
3.27
|
%
|
(1)
|
Weighted-average yields displayed by maturity bucket are weighted based on amortized cost and predominantly represent contractual coupon rates.
|
148
|
Wells Fargo & Company
|
|
|
|
Remaining contractual maturity
|
|
||||||||||||
|
Total
|
|
|
Within
one year |
|
|
After one year through five years
|
|
|
After five years
through ten years |
|
|
After ten years
|
|
|
(in millions)
|
amount
|
|
|
Amount
|
|
|
Amount
|
|
|
Amount
|
|
|
Amount
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Fair value:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
$
|
46,139
|
|
|
1,301
|
|
|
42,830
|
|
|
1,268
|
|
|
740
|
|
Securities of U.S. states and political subdivisions
|
13,759
|
|
|
—
|
|
|
87
|
|
|
1,940
|
|
|
11,732
|
|
|
Federal agency and other mortgage-backed securities
|
96,925
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
96,910
|
|
|
Other debt securities
|
37
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
Total held-to-maturity debt securities at fair value
|
$
|
156,860
|
|
|
1,301
|
|
|
42,932
|
|
|
3,245
|
|
|
109,382
|
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Gross realized gains
|
$
|
227
|
|
|
155
|
|
|
948
|
|
Gross realized losses
|
(24
|
)
|
|
(19
|
)
|
|
(207
|
)
|
|
OTTI write-downs
|
(63
|
)
|
|
(28
|
)
|
|
(262
|
)
|
|
Net realized gains from available-for-sale debt securities
|
$
|
140
|
|
|
108
|
|
|
479
|
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Debt securities OTTI write-downs included in earnings:
|
|
|
|
|
|
||||
Securities of U.S. states and political subdivisions
|
$
|
33
|
|
|
2
|
|
|
150
|
|
Mortgage-backed securities:
|
|
|
|
|
|
||||
Residential
|
—
|
|
|
4
|
|
|
11
|
|
|
Commercial
|
17
|
|
|
18
|
|
|
80
|
|
|
Corporate debt securities
|
13
|
|
|
—
|
|
|
21
|
|
|
Other debt securities
|
—
|
|
|
4
|
|
|
—
|
|
|
Total debt securities OTTI write-downs included in earnings
|
$
|
63
|
|
|
28
|
|
|
262
|
|
|
Wells Fargo & Company
|
149
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
OTTI on debt securities
|
|
|
|
|
|
||||
Recorded as part of gross realized losses:
|
|
|
|
|
|
||||
Credit-related OTTI
|
$
|
27
|
|
|
27
|
|
|
119
|
|
Intent-to-sell OTTI
|
36
|
|
|
1
|
|
|
143
|
|
|
Total recorded as part of gross realized losses
|
63
|
|
|
28
|
|
|
262
|
|
|
Changes to OCI for losses (reversal of losses) in non-credit-related OTTI (1):
|
|
|
|
|
|
||||
Securities of U.S. states and political subdivisions
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
Residential mortgage-backed securities
|
(1
|
)
|
|
2
|
|
|
(1
|
)
|
|
Commercial mortgage-backed securities
|
2
|
|
|
(11
|
)
|
|
(51
|
)
|
|
Other debt securities
|
1
|
|
|
—
|
|
|
—
|
|
|
Total changes to OCI for non-credit-related OTTI
|
1
|
|
|
(11
|
)
|
|
(57
|
)
|
|
Total OTTI losses recorded on debt securities
|
$
|
64
|
|
|
17
|
|
|
205
|
|
(1)
|
Represents amounts recorded to OCI for impairment of debt securities, due to factors other than credit that have also had credit-related OTTI write-downs during the period. Increases represent initial or subsequent non-credit-related OTTI on debt securities. Decreases represent partial to full reversal of impairment due to recoveries in the fair value of debt securities due to non-credit factors.
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Credit loss recognized, beginning of year
|
$
|
562
|
|
|
742
|
|
|
1,043
|
|
Additions:
|
|
|
|
|
|
||||
For securities with initial credit impairments
|
6
|
|
|
1
|
|
|
9
|
|
|
For securities with previous credit impairments
|
21
|
|
|
26
|
|
|
110
|
|
|
Total additions
|
27
|
|
|
27
|
|
|
119
|
|
|
Reductions:
|
|
|
|
|
|
||||
For securities sold, matured, or intended/required to be sold
|
(390
|
)
|
|
(204
|
)
|
|
(414
|
)
|
|
For recoveries of previous credit impairments (1)
|
—
|
|
|
(3
|
)
|
|
(6
|
)
|
|
Total reductions
|
(390
|
)
|
|
(207
|
)
|
|
(420
|
)
|
|
Credit loss recognized, end of year
|
$
|
199
|
|
|
562
|
|
|
742
|
|
(1)
|
Recoveries of previous credit impairments result from increases in expected cash flows subsequent to credit loss recognition. Such recoveries are reflected prospectively as interest yield adjustments using the effective interest method.
|
150
|
Wells Fargo & Company
|
|
Note 6: Loans and Allowance for Credit Losses
|
|
December 31,
|
|
|||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
354,125
|
|
|
350,199
|
|
|
333,125
|
|
|
330,840
|
|
|
299,892
|
|
Real estate mortgage
|
121,824
|
|
|
121,014
|
|
|
126,599
|
|
|
132,491
|
|
|
122,160
|
|
|
Real estate construction
|
19,939
|
|
|
22,496
|
|
|
24,279
|
|
|
23,916
|
|
|
22,164
|
|
|
Lease financing
|
19,831
|
|
|
19,696
|
|
|
19,385
|
|
|
19,289
|
|
|
12,367
|
|
|
Total commercial
|
515,719
|
|
|
513,405
|
|
|
503,388
|
|
|
506,536
|
|
|
456,583
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage
|
293,847
|
|
|
285,065
|
|
|
284,054
|
|
|
275,579
|
|
|
273,869
|
|
|
Real estate 1-4 family junior lien mortgage
|
29,509
|
|
|
34,398
|
|
|
39,713
|
|
|
46,237
|
|
|
53,004
|
|
|
Credit card
|
41,013
|
|
|
39,025
|
|
|
37,976
|
|
|
36,700
|
|
|
34,039
|
|
|
Automobile
|
47,873
|
|
|
45,069
|
|
|
53,371
|
|
|
62,286
|
|
|
59,966
|
|
|
Other revolving credit and installment
|
34,304
|
|
|
36,148
|
|
|
38,268
|
|
|
40,266
|
|
|
39,098
|
|
|
Total consumer
|
446,546
|
|
|
439,705
|
|
|
453,382
|
|
|
461,068
|
|
|
459,976
|
|
|
Total loans
|
$
|
962,265
|
|
|
953,110
|
|
|
956,770
|
|
|
967,604
|
|
|
916,559
|
|
|
December 31,
|
|
|||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
Non-U.S. commercial loans:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
70,494
|
|
|
62,564
|
|
|
60,106
|
|
|
55,396
|
|
|
49,049
|
|
Real estate mortgage
|
7,004
|
|
|
6,731
|
|
|
8,033
|
|
|
8,541
|
|
|
8,350
|
|
|
Real estate construction
|
1,434
|
|
|
1,011
|
|
|
655
|
|
|
375
|
|
|
444
|
|
|
Lease financing
|
1,220
|
|
|
1,159
|
|
|
1,126
|
|
|
972
|
|
|
274
|
|
|
Total non-U.S. commercial loans
|
$
|
80,152
|
|
|
71,465
|
|
|
69,920
|
|
|
65,284
|
|
|
58,117
|
|
|
Wells Fargo & Company
|
151
|
|
|
|
|
|
|
|
Year ended December 31,
|
|
||||||||||
|
2019
|
|
|
2018
|
|
|||||||||||||
(in millions)
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
Purchases
|
$
|
2,028
|
|
|
3,126
|
|
|
5,154
|
|
|
2,065
|
|
|
16
|
|
|
2,081
|
|
Sales
|
(1,797
|
)
|
|
(530
|
)
|
|
(2,327
|
)
|
|
(1,905
|
)
|
|
(261
|
)
|
|
(2,166
|
)
|
|
Transfers to MLHFS/LHFS
|
(123
|
)
|
|
(1,889
|
)
|
|
(2,012
|
)
|
|
(617
|
)
|
|
(1,995
|
)
|
|
(2,612
|
)
|
152
|
Wells Fargo & Company
|
|
(in millions)
|
Dec 31,
2019 |
|
|
Dec 31,
2018 |
|
|
Commercial:
|
|
|
|
|||
Commercial and industrial
|
$
|
346,991
|
|
|
330,492
|
|
Real estate mortgage
|
8,206
|
|
|
6,984
|
|
|
Real estate construction
|
17,729
|
|
|
16,400
|
|
|
Total commercial
|
372,926
|
|
|
353,876
|
|
|
Consumer:
|
|
|
|
|||
Real estate 1-4 family first mortgage
|
34,391
|
|
|
29,736
|
|
|
Real estate 1-4 family junior lien mortgage
|
36,916
|
|
|
37,719
|
|
|
Credit card
|
114,933
|
|
|
109,840
|
|
|
Other revolving credit and installment
|
25,898
|
|
|
27,530
|
|
|
Total consumer
|
212,138
|
|
|
204,825
|
|
|
Total unfunded credit commitments
|
$
|
585,064
|
|
|
558,701
|
|
|
Wells Fargo & Company
|
153
|
|
Year ended December 31,
|
|
|||||||||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
Balance, beginning of year
|
$
|
10,707
|
|
|
11,960
|
|
|
12,540
|
|
|
12,512
|
|
|
13,169
|
|
Provision for credit losses
|
2,687
|
|
|
1,744
|
|
|
2,528
|
|
|
3,770
|
|
|
2,442
|
|
|
Interest income on certain impaired loans (1)
|
(147
|
)
|
|
(166
|
)
|
|
(186
|
)
|
|
(205
|
)
|
|
(198
|
)
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
(802
|
)
|
|
(727
|
)
|
|
(789
|
)
|
|
(1,419
|
)
|
|
(734
|
)
|
|
Real estate mortgage
|
(38
|
)
|
|
(42
|
)
|
|
(38
|
)
|
|
(27
|
)
|
|
(59
|
)
|
|
Real estate construction
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
Lease financing
|
(70
|
)
|
|
(70
|
)
|
|
(45
|
)
|
|
(41
|
)
|
|
(14
|
)
|
|
Total commercial
|
(911
|
)
|
|
(839
|
)
|
|
(872
|
)
|
|
(1,488
|
)
|
|
(811
|
)
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage
|
(129
|
)
|
|
(179
|
)
|
|
(240
|
)
|
|
(452
|
)
|
|
(507
|
)
|
|
Real estate 1-4 family junior lien mortgage
|
(118
|
)
|
|
(179
|
)
|
|
(279
|
)
|
|
(495
|
)
|
|
(635
|
)
|
|
Credit card
|
(1,714
|
)
|
|
(1,599
|
)
|
|
(1,481
|
)
|
|
(1,259
|
)
|
|
(1,116
|
)
|
|
Automobile
|
(647
|
)
|
|
(947
|
)
|
|
(1,002
|
)
|
|
(845
|
)
|
|
(742
|
)
|
|
Other revolving credit and installment
|
(674
|
)
|
|
(685
|
)
|
|
(713
|
)
|
|
(708
|
)
|
|
(643
|
)
|
|
Total consumer
|
(3,282
|
)
|
|
(3,589
|
)
|
|
(3,715
|
)
|
|
(3,759
|
)
|
|
(3,643
|
)
|
|
Total loan charge-offs
|
(4,193
|
)
|
|
(4,428
|
)
|
|
(4,587
|
)
|
|
(5,247
|
)
|
|
(4,454
|
)
|
|
Loan recoveries:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
195
|
|
|
304
|
|
|
297
|
|
|
263
|
|
|
252
|
|
|
Real estate mortgage
|
32
|
|
|
70
|
|
|
82
|
|
|
116
|
|
|
127
|
|
|
Real estate construction
|
13
|
|
|
13
|
|
|
30
|
|
|
38
|
|
|
37
|
|
|
Lease financing
|
19
|
|
|
23
|
|
|
17
|
|
|
11
|
|
|
8
|
|
|
Total commercial
|
259
|
|
|
410
|
|
|
426
|
|
|
428
|
|
|
424
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
||||||
Real estate 1-4 family first mortgage
|
179
|
|
|
267
|
|
|
288
|
|
|
373
|
|
|
245
|
|
|
Real estate 1-4 family junior lien mortgage
|
184
|
|
|
219
|
|
|
266
|
|
|
266
|
|
|
259
|
|
|
Credit card
|
344
|
|
|
307
|
|
|
239
|
|
|
207
|
|
|
175
|
|
|
Automobile
|
341
|
|
|
363
|
|
|
319
|
|
|
325
|
|
|
325
|
|
|
Other revolving credit and installment
|
124
|
|
|
118
|
|
|
121
|
|
|
128
|
|
|
134
|
|
|
Total consumer
|
1,172
|
|
|
1,274
|
|
|
1,233
|
|
|
1,299
|
|
|
1,138
|
|
|
Total loan recoveries
|
1,431
|
|
|
1,684
|
|
|
1,659
|
|
|
1,727
|
|
|
1,562
|
|
|
Net loan charge-offs
|
(2,762
|
)
|
|
(2,744
|
)
|
|
(2,928
|
)
|
|
(3,520
|
)
|
|
(2,892
|
)
|
|
Other
|
(29
|
)
|
|
(87
|
)
|
|
6
|
|
|
(17
|
)
|
|
(9
|
)
|
|
Balance, end of year
|
$
|
10,456
|
|
|
10,707
|
|
|
11,960
|
|
|
12,540
|
|
|
12,512
|
|
Components:
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
$
|
9,551
|
|
|
9,775
|
|
|
11,004
|
|
|
11,419
|
|
|
11,545
|
|
Allowance for unfunded credit commitments
|
905
|
|
|
932
|
|
|
956
|
|
|
1,121
|
|
|
967
|
|
|
Allowance for credit losses
|
$
|
10,456
|
|
|
10,707
|
|
|
11,960
|
|
|
12,540
|
|
|
12,512
|
|
Net loan charge-offs as a percentage of average total loans
|
0.29
|
%
|
|
0.29
|
|
|
0.31
|
|
|
0.37
|
|
|
0.33
|
|
|
Allowance for loan losses as a percentage of total loans
|
0.99
|
|
|
1.03
|
|
|
1.15
|
|
|
1.18
|
|
|
1.26
|
|
|
Allowance for credit losses as a percentage of total loans
|
1.09
|
|
|
1.12
|
|
|
1.25
|
|
|
1.30
|
|
|
1.37
|
|
(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 changes in allowance attributable to the passage of time as interest income.
|
154
|
Wells Fargo & Company
|
|
|
Year ended December 31,
|
|
||||||||||||||||
|
2019
|
|
|
2018
|
|
|||||||||||||
(in millions)
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
Balance, beginning of year
|
$
|
6,417
|
|
|
4,290
|
|
|
10,707
|
|
|
6,632
|
|
|
5,328
|
|
|
11,960
|
|
Provision for credit losses
|
518
|
|
|
2,169
|
|
|
2,687
|
|
|
281
|
|
|
1,463
|
|
|
1,744
|
|
|
Interest income on certain impaired loans
|
(46
|
)
|
|
(101
|
)
|
|
(147
|
)
|
|
(47
|
)
|
|
(119
|
)
|
|
(166
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loan charge-offs
|
(911
|
)
|
|
(3,282
|
)
|
|
(4,193
|
)
|
|
(839
|
)
|
|
(3,589
|
)
|
|
(4,428
|
)
|
|
Loan recoveries
|
259
|
|
|
1,172
|
|
|
1,431
|
|
|
410
|
|
|
1,274
|
|
|
1,684
|
|
|
Net loan charge-offs
|
(652
|
)
|
|
(2,110
|
)
|
|
(2,762
|
)
|
|
(429
|
)
|
|
(2,315
|
)
|
|
(2,744
|
)
|
|
Other
|
8
|
|
|
(37
|
)
|
|
(29
|
)
|
|
(20
|
)
|
|
(67
|
)
|
|
(87
|
)
|
|
Balance, end of year
|
$
|
6,245
|
|
|
4,211
|
|
|
10,456
|
|
|
6,417
|
|
|
4,290
|
|
|
10,707
|
|
|
Allowance for credit losses
|
|
|
Recorded investment in loans
|
|
|||||||||||||
(in millions)
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
Commercial
|
|
|
Consumer
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Collectively evaluated (1)
|
$
|
5,778
|
|
|
3,364
|
|
|
9,142
|
|
|
512,586
|
|
|
436,081
|
|
|
948,667
|
|
Individually evaluated (2)
|
467
|
|
|
847
|
|
|
1,314
|
|
|
3,133
|
|
|
9,897
|
|
|
13,030
|
|
|
PCI (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
568
|
|
|
568
|
|
|
Total
|
$
|
6,245
|
|
|
4,211
|
|
|
10,456
|
|
|
515,719
|
|
|
446,546
|
|
|
962,265
|
|
December 31, 2018
|
|
|||||||||||||||||
Collectively evaluated (1)
|
$
|
5,903
|
|
|
3,361
|
|
|
9,264
|
|
|
510,180
|
|
|
421,574
|
|
|
931,754
|
|
Individually evaluated (2)
|
514
|
|
|
929
|
|
|
1,443
|
|
|
3,221
|
|
|
13,126
|
|
|
16,347
|
|
|
PCI (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5,005
|
|
|
5,009
|
|
|
Total
|
$
|
6,417
|
|
|
4,290
|
|
|
10,707
|
|
|
513,405
|
|
|
439,705
|
|
|
953,110
|
|
(1)
|
Represents non-impaired loans evaluated collectively for impairment.
|
(2)
|
Represents impaired loans evaluated individually for impairment.
|
(3)
|
Represents the allowance for loan losses and related loan carrying value for PCI loans.
|
|
Wells Fargo & Company
|
155
|
(in millions)
|
Commercial and industrial
|
|
|
Real estate mortgage
|
|
|
Real estate construction
|
|
|
Lease financing
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
By risk category:
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
$
|
338,740
|
|
|
118,054
|
|
|
19,752
|
|
|
18,655
|
|
|
495,201
|
|
Criticized
|
15,385
|
|
|
3,770
|
|
|
187
|
|
|
1,176
|
|
|
20,518
|
|
|
Total commercial loans (excluding PCI)
|
354,125
|
|
|
121,824
|
|
|
19,939
|
|
|
19,831
|
|
|
515,719
|
|
|
Total commercial PCI loans (carrying value)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total commercial loans
|
$
|
354,125
|
|
|
121,824
|
|
|
19,939
|
|
|
19,831
|
|
|
515,719
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
By risk category:
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
$
|
335,412
|
|
|
116,514
|
|
|
22,207
|
|
|
18,671
|
|
|
492,804
|
|
Criticized
|
14,783
|
|
|
4,500
|
|
|
289
|
|
|
1,025
|
|
|
20,597
|
|
|
Total commercial loans (excluding PCI)
|
350,195
|
|
|
121,014
|
|
|
22,496
|
|
|
19,696
|
|
|
513,401
|
|
|
Total commercial PCI loans (carrying value)
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
Total commercial loans
|
$
|
350,199
|
|
|
121,014
|
|
|
22,496
|
|
|
19,696
|
|
|
513,405
|
|
(in millions)
|
Commercial and industrial
|
|
|
Real estate mortgage
|
|
|
Real estate construction
|
|
|
Lease financing
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
By delinquency status:
|
|
|
|
|
|
|
|
|
|
||||||
Current-29 days past due (DPD) and still accruing
|
$
|
352,110
|
|
|
120,967
|
|
|
19,845
|
|
|
19,484
|
|
|
512,406
|
|
30-89 DPD and still accruing
|
423
|
|
|
253
|
|
|
53
|
|
|
252
|
|
|
981
|
|
|
90+ DPD and still accruing
|
47
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
78
|
|
|
Nonaccrual loans
|
1,545
|
|
|
573
|
|
|
41
|
|
|
95
|
|
|
2,254
|
|
|
Total commercial loans (excluding PCI)
|
354,125
|
|
|
121,824
|
|
|
19,939
|
|
|
19,831
|
|
|
515,719
|
|
|
Total commercial PCI loans (carrying value)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total commercial loans
|
$
|
354,125
|
|
|
121,824
|
|
|
19,939
|
|
|
19,831
|
|
|
515,719
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
By delinquency status:
|
|
|
|
|
|
|
|
|
|
||||||
Current-29 DPD and still accruing
|
$
|
348,158
|
|
|
120,176
|
|
|
22,411
|
|
|
19,443
|
|
|
510,188
|
|
30-89 DPD and still accruing
|
508
|
|
|
207
|
|
|
53
|
|
|
163
|
|
|
931
|
|
|
90+ DPD and still accruing
|
43
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|
Nonaccrual loans
|
1,486
|
|
|
580
|
|
|
32
|
|
|
90
|
|
|
2,188
|
|
|
Total commercial loans (excluding PCI)
|
350,195
|
|
|
121,014
|
|
|
22,496
|
|
|
19,696
|
|
|
513,401
|
|
|
Total commercial PCI loans (carrying value)
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
Total commercial loans
|
$
|
350,199
|
|
|
121,014
|
|
|
22,496
|
|
|
19,696
|
|
|
513,405
|
|
156
|
Wells Fargo & Company
|
|
(in millions)
|
Real estate 1-4 family first mortgage
|
|
|
Real estate 1-4 family junior lien mortgage
|
|
|
Credit card
|
|
|
Automobile
|
|
|
Other revolving credit and installment
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
By delinquency status:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Current-29 DPD
|
$
|
279,722
|
|
|
28,870
|
|
|
39,935
|
|
|
46,650
|
|
|
33,981
|
|
|
429,158
|
|
30-59 DPD
|
1,136
|
|
|
216
|
|
|
311
|
|
|
882
|
|
|
140
|
|
|
2,685
|
|
|
60-89 DPD
|
404
|
|
|
115
|
|
|
221
|
|
|
263
|
|
|
81
|
|
|
1,084
|
|
|
90-119 DPD
|
197
|
|
|
69
|
|
|
202
|
|
|
77
|
|
|
74
|
|
|
619
|
|
|
120-179 DPD
|
160
|
|
|
71
|
|
|
343
|
|
|
1
|
|
|
18
|
|
|
593
|
|
|
180+ DPD
|
503
|
|
|
155
|
|
|
1
|
|
|
—
|
|
|
10
|
|
|
669
|
|
|
Government insured/guaranteed loans (1)
|
10,999
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,999
|
|
|
Loans held at fair value
|
171
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
171
|
|
|
Total consumer loans (excluding PCI)
|
293,292
|
|
|
29,496
|
|
|
41,013
|
|
|
47,873
|
|
|
34,304
|
|
|
445,978
|
|
|
Total consumer PCI loans (carrying value) (2)
|
555
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
568
|
|
|
Total consumer loans
|
$
|
293,847
|
|
|
29,509
|
|
|
41,013
|
|
|
47,873
|
|
|
34,304
|
|
|
446,546
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
By delinquency status:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Current-29 DPD
|
$
|
263,881
|
|
|
33,644
|
|
|
38,008
|
|
|
43,604
|
|
|
35,794
|
|
|
414,931
|
|
30-59 DPD
|
1,411
|
|
|
247
|
|
|
292
|
|
|
1,040
|
|
|
140
|
|
|
3,130
|
|
|
60-89 DPD
|
549
|
|
|
126
|
|
|
212
|
|
|
314
|
|
|
87
|
|
|
1,288
|
|
|
90-119 DPD
|
257
|
|
|
74
|
|
|
192
|
|
|
109
|
|
|
80
|
|
|
712
|
|
|
120-179 DPD
|
225
|
|
|
77
|
|
|
320
|
|
|
2
|
|
|
27
|
|
|
651
|
|
|
180+ DPD
|
822
|
|
|
213
|
|
|
1
|
|
|
—
|
|
|
20
|
|
|
1,056
|
|
|
Government insured/guaranteed loans (1)
|
12,688
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,688
|
|
|
Loans held at fair value
|
244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244
|
|
|
Total consumer loans (excluding PCI)
|
280,077
|
|
|
34,381
|
|
|
39,025
|
|
|
45,069
|
|
|
36,148
|
|
|
434,700
|
|
|
Total consumer PCI loans (carrying value) (2)
|
4,988
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,005
|
|
|
Total consumer loans
|
$
|
285,065
|
|
|
34,398
|
|
|
39,025
|
|
|
45,069
|
|
|
36,148
|
|
|
439,705
|
|
(1)
|
Represents loans whose repayments are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Loans insured/guaranteed by the FHA/VA and 90+ DPD totaled $6.4 billion at December 31, 2019, compared with $7.7 billion at December 31, 2018.
|
(2)
|
26% of the adjusted unpaid principal balance for consumer PCI loans are 30+ DPD at December 31, 2019, compared with 18% at December 31, 2018.
|
|
Wells Fargo & Company
|
157
|
(in millions)
|
Real estate 1-4 family first mortgage
|
|
|
Real estate
1-4 family junior lien mortgage
|
|
|
Credit card
|
|
|
Automobile
|
|
|
Other revolving credit and installment
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
By FICO:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
< 600
|
$
|
3,264
|
|
|
1,164
|
|
|
3,373
|
|
|
6,041
|
|
|
704
|
|
|
14,546
|
|
600-639
|
2,392
|
|
|
782
|
|
|
2,853
|
|
|
4,230
|
|
|
670
|
|
|
10,927
|
|
|
640-679
|
5,068
|
|
|
1,499
|
|
|
6,626
|
|
|
6,324
|
|
|
1,730
|
|
|
21,247
|
|
|
680-719
|
12,844
|
|
|
3,192
|
|
|
9,732
|
|
|
7,871
|
|
|
3,212
|
|
|
36,851
|
|
|
720-759
|
27,879
|
|
|
4,407
|
|
|
8,376
|
|
|
7,839
|
|
|
4,097
|
|
|
52,598
|
|
|
760-799
|
61,559
|
|
|
5,483
|
|
|
5,648
|
|
|
7,624
|
|
|
4,915
|
|
|
85,229
|
|
|
800+
|
165,460
|
|
|
11,851
|
|
|
4,037
|
|
|
7,900
|
|
|
7,585
|
|
|
196,833
|
|
|
No FICO available
|
3,656
|
|
|
1,118
|
|
|
368
|
|
|
44
|
|
|
2,316
|
|
|
7,502
|
|
|
FICO not required
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,075
|
|
|
9,075
|
|
|
Government insured/guaranteed loans (1)
|
11,170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,170
|
|
|
Total consumer loans (excluding PCI)
|
293,292
|
|
|
29,496
|
|
|
41,013
|
|
|
47,873
|
|
|
34,304
|
|
|
445,978
|
|
|
Total consumer PCI loans (carrying value) (2)
|
555
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
568
|
|
|
Total consumer loans
|
$
|
293,847
|
|
|
29,509
|
|
|
41,013
|
|
|
47,873
|
|
|
34,304
|
|
|
446,546
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
By FICO:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
< 600
|
$
|
4,273
|
|
|
1,454
|
|
|
3,292
|
|
|
7,071
|
|
|
697
|
|
|
16,787
|
|
600-639
|
2,974
|
|
|
994
|
|
|
2,777
|
|
|
4,431
|
|
|
725
|
|
|
11,901
|
|
|
640-679
|
5,810
|
|
|
1,898
|
|
|
6,464
|
|
|
6,225
|
|
|
1,822
|
|
|
22,219
|
|
|
680-719
|
13,568
|
|
|
3,908
|
|
|
9,445
|
|
|
7,354
|
|
|
3,384
|
|
|
37,659
|
|
|
720-759
|
27,258
|
|
|
5,323
|
|
|
7,949
|
|
|
6,853
|
|
|
4,395
|
|
|
51,778
|
|
|
760-799
|
57,193
|
|
|
6,315
|
|
|
5,227
|
|
|
5,947
|
|
|
5,322
|
|
|
80,004
|
|
|
800+
|
151,465
|
|
|
13,190
|
|
|
3,794
|
|
|
7,099
|
|
|
8,411
|
|
|
183,959
|
|
|
No FICO available
|
4,604
|
|
|
1,299
|
|
|
77
|
|
|
89
|
|
|
2,507
|
|
|
8,576
|
|
|
FICO not required
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,885
|
|
|
8,885
|
|
|
Government insured/guaranteed loans (1)
|
12,932
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,932
|
|
|
Total consumer loans (excluding PCI)
|
280,077
|
|
|
34,381
|
|
|
39,025
|
|
|
45,069
|
|
|
36,148
|
|
|
434,700
|
|
|
Total consumer PCI loans (carrying value) (2)
|
4,988
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,005
|
|
|
Total consumer loans
|
$
|
285,065
|
|
|
34,398
|
|
|
39,025
|
|
|
45,069
|
|
|
36,148
|
|
|
439,705
|
|
(1)
|
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
|
(2)
|
41% of the adjusted unpaid principal balance for consumer PCI loans have FICO scores less than 680 and 19% where no FICO is available to us at December 31, 2019, compared with 45% and 15%, respectively, at December 31, 2018.
|
158
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Real estate 1-4 family first mortgage by LTV
|
|
|
Real estate 1-4 family junior lien mortgage by CLTV
|
|
|
Total
|
|
|
Real estate 1-4 family first mortgage by LTV
|
|
|
Real estate 1-4 family junior lien mortgage by CLTV
|
|
|
Total
|
|
|
By LTV/CLTV:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
0-60%
|
$
|
151,478
|
|
|
14,603
|
|
|
166,081
|
|
|
147,666
|
|
|
15,753
|
|
|
163,419
|
|
60.01-80%
|
114,795
|
|
|
9,663
|
|
|
124,458
|
|
|
104,477
|
|
|
11,183
|
|
|
115,660
|
|
|
80.01-100%
|
13,867
|
|
|
3,574
|
|
|
17,441
|
|
|
12,372
|
|
|
4,874
|
|
|
17,246
|
|
|
100.01-120% (1)
|
860
|
|
|
978
|
|
|
1,838
|
|
|
1,211
|
|
|
1,596
|
|
|
2,807
|
|
|
> 120% (1)
|
338
|
|
|
336
|
|
|
674
|
|
|
484
|
|
|
578
|
|
|
1,062
|
|
|
No LTV/CLTV available
|
784
|
|
|
342
|
|
|
1,126
|
|
|
935
|
|
|
397
|
|
|
1,332
|
|
|
Government insured/guaranteed loans (2)
|
11,170
|
|
|
—
|
|
|
11,170
|
|
|
12,932
|
|
|
—
|
|
|
12,932
|
|
|
Total consumer loans (excluding PCI)
|
293,292
|
|
|
29,496
|
|
|
322,788
|
|
|
280,077
|
|
|
34,381
|
|
|
314,458
|
|
|
Total consumer PCI loans (carrying value) (3)
|
555
|
|
|
13
|
|
|
568
|
|
|
4,988
|
|
|
17
|
|
|
5,005
|
|
|
Total consumer loans
|
$
|
293,847
|
|
|
29,509
|
|
|
323,356
|
|
|
285,065
|
|
|
34,398
|
|
|
319,463
|
|
(1)
|
Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV.
|
(2)
|
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
|
(3)
|
9% of the adjusted unpaid principal balance for consumer PCI loans have LTV/CLTV amounts greater than 80% at December 31, 2019, compared with 10% at December 31, 2018.
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Commercial:
|
|
|
|
|||
Commercial and industrial
|
$
|
1,545
|
|
|
1,486
|
|
Real estate mortgage
|
573
|
|
|
580
|
|
|
Real estate construction
|
41
|
|
|
32
|
|
|
Lease financing
|
95
|
|
|
90
|
|
|
Total commercial
|
2,254
|
|
|
2,188
|
|
|
Consumer:
|
|
|
|
|||
Real estate 1-4 family first mortgage
|
2,150
|
|
|
3,183
|
|
|
Real estate 1-4 family junior lien mortgage
|
796
|
|
|
945
|
|
|
Automobile
|
106
|
|
|
130
|
|
|
Other revolving credit and installment
|
40
|
|
|
50
|
|
|
Total consumer
|
3,092
|
|
|
4,308
|
|
|
Total nonaccrual loans
(excluding PCI)
|
$
|
5,346
|
|
|
6,496
|
|
|
Wells Fargo & Company
|
159
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Total (excluding PCI):
|
$
|
7,285
|
|
|
8,704
|
|
Less: FHA insured/VA guaranteed (1)
|
6,352
|
|
|
7,725
|
|
|
Total, not government insured/guaranteed
|
$
|
933
|
|
|
979
|
|
By segment and class, not government insured/guaranteed:
|
|
|
|
|||
Commercial:
|
|
|
|
|||
Commercial and industrial
|
$
|
47
|
|
|
43
|
|
Real estate mortgage
|
31
|
|
|
51
|
|
|
Total commercial
|
78
|
|
|
94
|
|
|
Consumer:
|
|
|
|
|||
Real estate 1-4 family first mortgage
|
112
|
|
|
124
|
|
|
Real estate 1-4 family junior lien mortgage
|
32
|
|
|
32
|
|
|
Credit card
|
546
|
|
|
513
|
|
|
Automobile
|
78
|
|
|
114
|
|
|
Other revolving credit and installment
|
87
|
|
|
102
|
|
|
Total consumer
|
855
|
|
|
885
|
|
|
Total, not government insured/guaranteed
|
$
|
933
|
|
|
979
|
|
(1)
|
Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
|
160
|
Wells Fargo & Company
|
|
|
|
|
Recorded investment
|
|
|
|
||||||
(in millions)
|
Unpaid principal balance
|
|
|
Impaired loans
|
|
|
Impaired loans with related allowance for credit losses
|
|
|
Related allowance for credit losses
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
$
|
2,792
|
|
|
2,003
|
|
|
1,903
|
|
|
311
|
|
Real estate mortgage
|
1,137
|
|
|
974
|
|
|
803
|
|
|
110
|
|
|
Real estate construction
|
81
|
|
|
51
|
|
|
41
|
|
|
11
|
|
|
Lease financing
|
131
|
|
|
105
|
|
|
105
|
|
|
35
|
|
|
Total commercial
|
4,141
|
|
|
3,133
|
|
|
2,852
|
|
|
467
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|||||
Real estate 1-4 family first mortgage (1)
|
8,107
|
|
|
7,674
|
|
|
4,433
|
|
|
437
|
|
|
Real estate 1-4 family junior lien mortgage
|
1,586
|
|
|
1,451
|
|
|
925
|
|
|
144
|
|
|
Credit card
|
520
|
|
|
520
|
|
|
520
|
|
|
209
|
|
|
Automobile
|
138
|
|
|
81
|
|
|
42
|
|
|
8
|
|
|
Other revolving credit and installment
|
178
|
|
|
171
|
|
|
155
|
|
|
49
|
|
|
Total consumer (2)
|
10,529
|
|
|
9,897
|
|
|
6,075
|
|
|
847
|
|
|
Total impaired loans (excluding PCI)
|
$
|
14,670
|
|
|
13,030
|
|
|
8,927
|
|
|
1,314
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|||||
Commercial:
|
|
|
|
|
|
|
|
|||||
Commercial and industrial
|
$
|
3,057
|
|
|
2,030
|
|
|
1,730
|
|
|
319
|
|
Real estate mortgage
|
1,228
|
|
|
1,032
|
|
|
1,009
|
|
|
154
|
|
|
Real estate construction
|
74
|
|
|
47
|
|
|
46
|
|
|
9
|
|
|
Lease financing
|
146
|
|
|
112
|
|
|
112
|
|
|
32
|
|
|
Total commercial
|
4,505
|
|
|
3,221
|
|
|
2,897
|
|
|
514
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|||||
Real estate 1-4 family first mortgage
|
12,309
|
|
|
10,738
|
|
|
4,420
|
|
|
525
|
|
|
Real estate 1-4 family junior lien mortgage
|
1,886
|
|
|
1,694
|
|
|
1,133
|
|
|
183
|
|
|
Credit card
|
449
|
|
|
449
|
|
|
449
|
|
|
172
|
|
|
Automobile
|
153
|
|
|
89
|
|
|
43
|
|
|
8
|
|
|
Other revolving credit and installment
|
162
|
|
|
156
|
|
|
136
|
|
|
41
|
|
|
Total consumer (2)
|
14,959
|
|
|
13,126
|
|
|
6,181
|
|
|
929
|
|
|
Total impaired loans (excluding PCI)
|
$
|
19,464
|
|
|
16,347
|
|
|
9,078
|
|
|
1,443
|
|
(1)
|
Impaired loans includes reduction of $1.7 billion reclassified to MLHFS during 2019.
|
(2)
|
Includes the recorded investment of $1.2 billion and $1.3 billion at December 31, 2019 and 2018, respectively, of government insured/guaranteed loans that are predominantly insured by the FHA or guaranteed by the VA and generally do not have an ACL. Impaired loans may also have limited, if any, ACL when the recorded investment of the loan approximates estimated net realizable value as a result of charge-offs prior to a TDR modification.
|
|
Wells Fargo & Company
|
161
|
|
Year ended December 31,
|
|
||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||||||
(in millions)
|
Average recorded investment
|
|
|
Recognized interest income
|
|
|
Average recorded investment
|
|
|
Recognized
interest
income
|
|
|
Average recorded investment
|
|
|
Recognized
interest
income
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and industrial
|
$
|
2,150
|
|
|
129
|
|
|
2,287
|
|
|
173
|
|
|
3,241
|
|
|
118
|
|
Real estate mortgage
|
1,067
|
|
|
59
|
|
|
1,193
|
|
|
89
|
|
|
1,328
|
|
|
91
|
|
|
Real estate construction
|
52
|
|
|
6
|
|
|
60
|
|
|
7
|
|
|
66
|
|
|
14
|
|
|
Lease financing
|
93
|
|
|
1
|
|
|
125
|
|
|
1
|
|
|
105
|
|
|
1
|
|
|
Total commercial
|
3,362
|
|
|
195
|
|
|
3,665
|
|
|
270
|
|
|
4,740
|
|
|
224
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate 1-4 family first mortgage
|
9,031
|
|
|
506
|
|
|
11,522
|
|
|
664
|
|
|
13,326
|
|
|
730
|
|
|
Real estate 1-4 family junior lien mortgage
|
1,586
|
|
|
99
|
|
|
1,804
|
|
|
116
|
|
|
2,041
|
|
|
121
|
|
|
Credit card
|
488
|
|
|
64
|
|
|
407
|
|
|
50
|
|
|
323
|
|
|
36
|
|
|
Automobile
|
84
|
|
|
12
|
|
|
86
|
|
|
11
|
|
|
86
|
|
|
11
|
|
|
Other revolving credit and installment
|
162
|
|
|
13
|
|
|
142
|
|
|
10
|
|
|
117
|
|
|
8
|
|
|
Total consumer
|
11,351
|
|
|
694
|
|
|
13,961
|
|
|
851
|
|
|
15,893
|
|
|
906
|
|
|
Total impaired loans (excluding PCI)
|
$
|
14,713
|
|
|
889
|
|
|
17,626
|
|
|
1,121
|
|
|
20,633
|
|
|
1,130
|
|
Interest income:
|
|
|
|
|
|
||||
Cash basis of accounting
|
$
|
241
|
|
|
338
|
|
|
299
|
|
Other (1)
|
648
|
|
|
783
|
|
|
831
|
|
|
Total interest income
|
$
|
889
|
|
|
1,121
|
|
|
1,130
|
|
(1)
|
Includes interest recognized on accruing TDRs, interest recognized related to certain impaired loans which have an ACL calculated using discounting, and amortization of purchase accounting adjustments related to certain impaired loans.
|
162
|
Wells Fargo & Company
|
|
|
Primary modification type (1)
|
|
|
Financial effects of modifications
|
|
|||||||||||||||||
(in millions)
|
Principal (2)
|
|
|
Interest rate reduction
|
|
|
Other
concessions (3)
|
|
|
Total
|
|
|
Charge-offs (4)
|
|
|
Weighted
average
interest
rate
reduction
|
|
|
Recorded investment related to interest rate reduction (5)
|
|
||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
$
|
13
|
|
|
90
|
|
|
1,286
|
|
|
1,389
|
|
|
104
|
|
|
0.40
|
%
|
|
$
|
90
|
|
Real estate mortgage
|
—
|
|
|
38
|
|
|
417
|
|
|
455
|
|
|
—
|
|
|
0.69
|
|
|
38
|
|
||
Real estate construction
|
13
|
|
|
1
|
|
|
32
|
|
|
46
|
|
|
—
|
|
|
1.00
|
|
|
1
|
|
||
Lease financing
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial
|
26
|
|
|
129
|
|
|
1,737
|
|
|
1,892
|
|
|
104
|
|
|
0.49
|
|
|
129
|
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate 1-4 family first mortgage
|
110
|
|
|
13
|
|
|
868
|
|
|
991
|
|
|
2
|
|
|
2.04
|
|
|
68
|
|
||
Real estate 1-4 family junior lien mortgage
|
5
|
|
|
37
|
|
|
82
|
|
|
124
|
|
|
3
|
|
|
2.35
|
|
|
39
|
|
||
Credit card
|
—
|
|
|
376
|
|
|
—
|
|
|
376
|
|
|
—
|
|
|
12.91
|
|
|
376
|
|
||
Automobile
|
8
|
|
|
9
|
|
|
51
|
|
|
68
|
|
|
29
|
|
|
4.86
|
|
|
9
|
|
||
Other revolving credit and installment
|
1
|
|
|
51
|
|
|
7
|
|
|
59
|
|
|
—
|
|
|
8.07
|
|
|
52
|
|
||
Trial modifications (6)
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total consumer
|
124
|
|
|
486
|
|
|
1,021
|
|
|
1,631
|
|
|
34
|
|
|
10.19
|
|
|
544
|
|
||
Total
|
$
|
150
|
|
|
615
|
|
|
2,758
|
|
|
3,523
|
|
|
138
|
|
|
8.33
|
%
|
|
$
|
673
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
$
|
13
|
|
|
29
|
|
|
2,310
|
|
|
2,352
|
|
|
58
|
|
|
1.18
|
%
|
|
$
|
29
|
|
Real estate mortgage
|
—
|
|
|
44
|
|
|
375
|
|
|
419
|
|
|
—
|
|
|
0.88
|
|
|
44
|
|
||
Real estate construction
|
—
|
|
|
—
|
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Lease financing
|
—
|
|
|
—
|
|
|
63
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial
|
13
|
|
|
73
|
|
|
2,773
|
|
|
2,859
|
|
|
58
|
|
|
1.00
|
|
|
73
|
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate 1-4 family first mortgage
|
209
|
|
|
26
|
|
|
1,042
|
|
|
1,277
|
|
|
4
|
|
|
2.25
|
|
|
119
|
|
||
Real estate 1-4 family junior lien mortgage
|
7
|
|
|
41
|
|
|
113
|
|
|
161
|
|
|
5
|
|
|
2.14
|
|
|
45
|
|
||
Credit card
|
—
|
|
|
336
|
|
|
—
|
|
|
336
|
|
|
—
|
|
|
12.54
|
|
|
336
|
|
||
Automobile
|
13
|
|
|
16
|
|
|
55
|
|
|
84
|
|
|
30
|
|
|
6.21
|
|
|
16
|
|
||
Other revolving credit and installment
|
—
|
|
|
49
|
|
|
12
|
|
|
61
|
|
|
—
|
|
|
7.95
|
|
|
49
|
|
||
Trial modifications (6)
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total consumer
|
229
|
|
|
468
|
|
|
1,230
|
|
|
1,927
|
|
|
39
|
|
|
8.96
|
|
|
565
|
|
||
Total
|
$
|
242
|
|
|
541
|
|
|
4,003
|
|
|
4,786
|
|
|
97
|
|
|
8.06
|
%
|
|
$
|
638
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial
|
$
|
24
|
|
|
45
|
|
|
2,912
|
|
|
2,981
|
|
|
173
|
|
|
0.64
|
%
|
|
$
|
45
|
|
Real estate mortgage
|
5
|
|
|
59
|
|
|
507
|
|
|
571
|
|
|
20
|
|
|
1.28
|
|
|
59
|
|
||
Real estate construction
|
—
|
|
|
1
|
|
|
26
|
|
|
27
|
|
|
—
|
|
|
0.69
|
|
|
1
|
|
||
Lease financing
|
—
|
|
|
—
|
|
|
37
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total commercial
|
29
|
|
|
105
|
|
|
3,482
|
|
|
3,616
|
|
|
193
|
|
|
1.00
|
|
|
105
|
|
||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate 1-4 family first mortgage
|
231
|
|
|
140
|
|
|
1,035
|
|
|
1,406
|
|
|
15
|
|
|
2.57
|
|
|
257
|
|
||
Real estate 1-4 family junior lien mortgage
|
25
|
|
|
82
|
|
|
81
|
|
|
188
|
|
|
14
|
|
|
3.26
|
|
|
93
|
|
||
Credit card
|
—
|
|
|
257
|
|
|
—
|
|
|
257
|
|
|
—
|
|
|
11.98
|
|
|
257
|
|
||
Automobile
|
2
|
|
|
15
|
|
|
67
|
|
|
84
|
|
|
39
|
|
|
5.89
|
|
|
15
|
|
||
Other revolving credit and installment
|
—
|
|
|
47
|
|
|
8
|
|
|
55
|
|
|
1
|
|
|
7.47
|
|
|
47
|
|
||
Trial modifications (6)
|
—
|
|
|
—
|
|
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total consumer
|
258
|
|
|
541
|
|
|
1,163
|
|
|
1,962
|
|
|
69
|
|
|
6.70
|
|
|
669
|
|
||
Total
|
$
|
287
|
|
|
646
|
|
|
4,645
|
|
|
5,578
|
|
|
262
|
|
|
5.92
|
%
|
|
$
|
774
|
|
(1)
|
Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs may have multiple types of concessions, but are presented only once in the first modification type based on the order presented in the table above. The reported amounts include loans remodified of $1.1 billion, $1.9 billion and $2.1 billion, for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(2)
|
Principal modifications include principal forgiveness at the time of the modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with a zero percent contractual interest rate.
|
(3)
|
Other concessions include loans discharged in bankruptcy, loan renewals, term extensions and other interest and noninterest adjustments, but exclude modifications that also forgive principal and/or reduce the contractual interest rate.
|
(4)
|
Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification. Modifications resulted in deferring or legally forgiving principal (actual or contingent) of $24 million, $28 million and $32 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(5)
|
Recorded investment related to interest rate reduction reflects the effect of reduced interest rates on loans with an interest rate concession as one of their concession types, which includes loans reported as a principal primary modification type that also have an interest rate concession.
|
(6)
|
Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified. Trial modifications for the period are presented net of previously reported trial modifications that became permanent in the current period.
|
|
Wells Fargo & Company
|
163
|
|
Recorded investment of defaults
|
|
|||||||
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Commercial:
|
|
|
|
|
|
||||
Commercial and industrial
|
$
|
111
|
|
|
198
|
|
|
173
|
|
Real estate mortgage
|
48
|
|
|
76
|
|
|
61
|
|
|
Real estate construction
|
17
|
|
|
36
|
|
|
4
|
|
|
Lease financing
|
—
|
|
|
—
|
|
|
1
|
|
|
Total commercial
|
176
|
|
|
310
|
|
|
239
|
|
|
Consumer:
|
|
|
|
|
|
||||
Real estate 1-4 family first mortgage
|
41
|
|
|
60
|
|
|
114
|
|
|
Real estate 1-4 family junior lien mortgage
|
13
|
|
|
14
|
|
|
19
|
|
|
Credit card
|
88
|
|
|
79
|
|
|
74
|
|
|
Automobile
|
12
|
|
|
14
|
|
|
15
|
|
|
Other revolving credit and installment
|
8
|
|
|
6
|
|
|
5
|
|
|
Total consumer
|
162
|
|
|
173
|
|
|
227
|
|
|
Total
|
$
|
338
|
|
|
483
|
|
|
466
|
|
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
|
2019
|
|
|
2018
|
|
|
Total commercial
|
|
$
|
—
|
|
|
4
|
|
Total consumer
|
|
568
|
|
|
5,005
|
|
|
Total PCI loans (carrying value)
|
|
$
|
568
|
|
|
5,009
|
|
Total PCI loans (unpaid principal balance)
|
|
$
|
990
|
|
|
7,348
|
|
164
|
Wells Fargo & Company
|
|
Note 7: Leasing Activity
|
(in millions)
|
Year ended December 31, 2019
|
|
|
Interest income on lease financing
|
$
|
869
|
|
Other lease revenues:
|
|
||
Variable revenues on lease financing
|
96
|
|
|
Fixed revenues on operating leases
|
1,393
|
|
|
Variable revenues on operating leases
|
66
|
|
|
Other lease-related revenues (1)
|
57
|
|
|
Lease income
|
1,612
|
|
|
Total leasing revenue
|
$
|
2,481
|
|
(1)
|
Predominantly includes net gains on disposition of assets leased under operating leases or lease financings.
|
(in millions)
|
Dec 31, 2019
|
|
|
Lease receivables
|
$
|
18,114
|
|
Residual asset values
|
4,208
|
|
|
Unearned income
|
(2,491
|
)
|
|
Lease financing
|
$
|
19,831
|
|
|
December 31, 2019
|
|
|||
(in millions)
|
Direct financing and sales- type leases
|
|
Operating leases
|
|
|
2020
|
$
|
5,953
|
|
883
|
|
2021
|
4,997
|
|
614
|
|
|
2022
|
2,951
|
|
434
|
|
|
2023
|
1,634
|
|
298
|
|
|
2024
|
862
|
|
199
|
|
|
Thereafter
|
1,717
|
|
447
|
|
|
Total lease receivables
|
$
|
18,114
|
|
2,875
|
|
(in millions)
|
Dec 31, 2019
|
|
|
ROU assets
|
$
|
4,724
|
|
Lease liabilities
|
5,297
|
|
(in millions)
|
Year ended December 31, 2019
|
|
|
Fixed lease expense - operating leases
|
$
|
1,212
|
|
Variable lease expense
|
314
|
|
|
Other (1)
|
(68
|
)
|
|
Total lease costs
|
$
|
1,458
|
|
(1)
|
Predominantly includes gains recognized from sale leaseback transactions and sublease rental income.
|
|
Wells Fargo & Company
|
165
|
(in millions)
|
December 31, 2018
|
|
|
2019
|
$
|
1,174
|
|
2020
|
1,056
|
|
|
2021
|
880
|
|
|
2022
|
713
|
|
|
2023
|
577
|
|
|
Thereafter
|
1,654
|
|
|
Total lease payments
|
$
|
6,054
|
|
(in millions, except for weighted averages)
|
December 31, 2019
|
|
|
2020
|
$
|
1,006
|
|
2021
|
1,045
|
|
|
2022
|
897
|
|
|
2023
|
750
|
|
|
2024
|
597
|
|
|
Thereafter
|
1,672
|
|
|
Total lease payments
|
5,967
|
|
|
Less: imputed interest
|
670
|
|
|
Total operating lease liabilities
|
$
|
5,297
|
|
Weighted average remaining lease term (in years)
|
7.1
|
|
|
Weighted average discount rate
|
3.1
|
%
|
166
|
Wells Fargo & Company
|
|
Note 8: Equity Securities
|
(in millions)
|
Dec 31,
2019 |
|
|
Dec 31,
2018 |
|
|
Held for trading at fair value:
|
|
|
|
|||
Marketable equity securities
|
$
|
27,440
|
|
|
19,449
|
|
Not held for trading:
|
|
|
|
|||
Fair value:
|
|
|
|
|||
Marketable equity securities (1)
|
6,481
|
|
|
4,513
|
|
|
Nonmarketable equity securities
|
8,015
|
|
|
5,594
|
|
|
Total equity securities at fair value
|
14,496
|
|
|
10,107
|
|
|
Equity method:
|
|
|
|
|||
Low-income housing tax credit investments
|
11,343
|
|
|
10,999
|
|
|
Private equity
|
3,459
|
|
|
3,832
|
|
|
Tax-advantaged renewable energy
|
3,811
|
|
|
3,073
|
|
|
New market tax credit and other
|
387
|
|
|
311
|
|
|
Total equity method
|
19,000
|
|
|
18,215
|
|
|
Other:
|
|
|
|
|||
Federal Reserve Bank stock and other at cost (2)
|
4,790
|
|
|
5,643
|
|
|
Private equity (3)
|
2,515
|
|
|
1,734
|
|
|
Total equity securities not held for trading
|
40,801
|
|
|
35,699
|
|
|
Total equity securities
|
$
|
68,241
|
|
|
55,148
|
|
(1)
|
Includes $3.8 billion and $3.2 billion at December 31, 2019 and 2018, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.
|
(2)
|
Includes $4.8 billion and $5.6 billion at December 31, 2019 and 2018, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.
|
(3)
|
Represents nonmarketable equity securities accounted for under the measurement alternative.
|
|
Wells Fargo & Company
|
167
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Net gains (losses) from equity securities carried at fair value:
|
|
|
|
|
|
||||
Marketable equity securities
|
$
|
1,067
|
|
|
(389
|
)
|
|
967
|
|
Nonmarketable equity securities
|
2,413
|
|
|
709
|
|
|
1,557
|
|
|
Total equity securities carried at fair value
|
3,480
|
|
|
320
|
|
|
2,524
|
|
|
Net gains (losses) from nonmarketable equity securities not carried at fair value:
|
|
|
|
|
|
||||
Impairment write-downs
|
(245
|
)
|
|
(352
|
)
|
|
(339
|
)
|
|
Net unrealized gains related to measurement alternative observable transactions
|
567
|
|
|
418
|
|
|
—
|
|
|
Net realized gains on sale
|
1,161
|
|
|
1,504
|
|
|
980
|
|
|
All other
|
—
|
|
|
33
|
|
|
97
|
|
|
Total nonmarketable equity securities not carried at fair value
|
1,483
|
|
|
1,603
|
|
|
738
|
|
|
Net losses from economic hedge derivatives (1)
|
(2,120
|
)
|
|
(408
|
)
|
|
(1,483
|
)
|
|
Total net gains from equity securities not held for trading
|
$
|
2,843
|
|
|
1,515
|
|
|
1,779
|
|
(1)
|
Includes net gains (losses) on derivatives not designated as hedging instruments.
|
|
Year ended December 31,
|
|
||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Net gains (losses) recognized in earnings during the period:
|
|
|
|
|||
Gross unrealized gains due to observable price changes
|
$
|
584
|
|
|
443
|
|
Gross unrealized losses due to observable price changes
|
(17
|
)
|
|
(25
|
)
|
|
Impairment write-downs
|
(116
|
)
|
|
(33
|
)
|
|
Realized net gains from sale
|
163
|
|
|
274
|
|
|
Total net gains recognized during the period
|
$
|
614
|
|
|
659
|
|
|
Year ended December 31,
|
|
||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Cumulative gains (losses):
|
|
|
|
|||
Gross unrealized gains due to observable price changes
|
$
|
973
|
|
|
415
|
|
Gross unrealized losses due to observable price changes
|
(42
|
)
|
|
(25
|
)
|
|
Impairment write-downs
|
(134
|
)
|
|
(33
|
)
|
168
|
Wells Fargo & Company
|
|
Note 9: Premises, Equipment and Other Assets
|
(in millions)
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Land
|
$
|
1,857
|
|
|
1,757
|
|
Buildings
|
9,499
|
|
|
8,974
|
|
|
Furniture and equipment
|
7,189
|
|
|
6,896
|
|
|
Leasehold improvements
|
2,597
|
|
|
2,387
|
|
|
Finance lease ROU assets
|
33
|
|
|
75
|
|
|
Total premises and equipment
|
21,175
|
|
|
20,089
|
|
|
Less: Accumulated depreciation and amortization
|
11,866
|
|
|
11,169
|
|
|
Net book value, premises and equipment
|
$
|
9,309
|
|
|
8,920
|
|
(in millions)
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Corporate/bank-owned life insurance
|
$
|
20,070
|
|
|
19,751
|
|
Accounts receivable (1)
|
29,137
|
|
|
34,281
|
|
|
Interest receivable
|
5,586
|
|
|
6,084
|
|
|
Customer relationship and other amortized intangibles
|
423
|
|
|
545
|
|
|
Foreclosed assets:
|
|
|
|
|||
Residential real estate:
|
|
|
|
|||
Government insured/guaranteed (1)
|
50
|
|
|
88
|
|
|
Non-government insured/guaranteed
|
172
|
|
|
229
|
|
|
Other
|
81
|
|
|
134
|
|
|
Operating lease assets (lessor)
|
8,221
|
|
|
9,036
|
|
|
Operating lease ROU assets (lessee) (2)
|
4,724
|
|
|
—
|
|
|
Due from customers on acceptances
|
253
|
|
|
258
|
|
|
Other
|
10,200
|
|
|
9,444
|
|
|
Total other assets
|
$
|
78,917
|
|
|
79,850
|
|
(1)
|
Certain government-guaranteed residential real estate mortgage loans upon foreclosure are included in Accounts receivable. For more information, see Note 1 (Summary of Significant Accounting Policies).
|
(2)
|
We recognized operating lease right of use (ROU) assets effective January 1, 2019, in connection with the adoption of ASU 2016-02 – Leases. For more information, see Note 1 (Summary of Significant Accounting Policies).
|
|
Wells Fargo & Company
|
169
|
Note 10: Securitizations and Variable Interest Entities
|
•
|
underwriting securities issued by SPEs and subsequently making markets in those securities;
|
•
|
providing liquidity facilities to support short-term obligations of SPEs issued to third-party investors;
|
•
|
providing credit enhancement on securities issued by SPEs or market value guarantees of assets held by SPEs through the use of letters of credit, financial guarantees, credit default swaps and total return swaps;
|
•
|
entering into other derivative contracts with SPEs;
|
•
|
holding senior or subordinated interests in SPEs;
|
•
|
acting as servicer or investment manager for SPEs; and
|
•
|
providing administrative or trustee services to SPEs.
|
170
|
Wells Fargo & Company
|
|
(in millions)
|
VIEs that we do not consolidate
|
|
|
VIEs that we consolidate (2)
|
|
|
Transfers
that we account
for as secured borrowings (2)
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|||||||||
Cash and due from banks
|
$
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
Interest-earning deposits with banks
|
—
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|
Debt securities (1):
|
|
|
|
|
|
|
|
|||||
Trading debt securities
|
792
|
|
|
339
|
|
|
—
|
|
|
1,131
|
|
|
Available-for-sale debt securities
|
1,696
|
|
|
201
|
|
|
—
|
|
|
1,897
|
|
|
Held-to-maturity debt securities
|
791
|
|
|
—
|
|
|
—
|
|
|
791
|
|
|
Loans
|
2,127
|
|
|
13,170
|
|
|
80
|
|
|
15,377
|
|
|
Mortgage servicing rights
|
11,884
|
|
|
—
|
|
|
—
|
|
|
11,884
|
|
|
Derivative assets
|
142
|
|
|
1
|
|
|
—
|
|
|
143
|
|
|
Equity securities
|
11,401
|
|
|
118
|
|
|
—
|
|
|
11,519
|
|
|
Other assets
|
1,268
|
|
|
239
|
|
|
—
|
|
|
1,507
|
|
|
Total assets
|
30,101
|
|
|
14,368
|
|
|
80
|
|
|
44,549
|
|
|
Short-term borrowings
|
—
|
|
|
401
|
|
|
—
|
|
|
401
|
|
|
Derivative liabilities
|
1
|
|
|
3
|
|
|
—
|
|
|
4
|
|
|
Accrued expenses and other liabilities
|
189
|
|
|
235
|
|
|
—
|
|
|
424
|
|
|
Long-term debt
|
4,817
|
|
|
587
|
|
|
79
|
|
|
5,483
|
|
|
Total liabilities
|
5,007
|
|
|
1,226
|
|
|
79
|
|
|
6,312
|
|
|
Noncontrolling interests
|
—
|
|
|
43
|
|
|
—
|
|
|
43
|
|
|
Net assets
|
$
|
25,094
|
|
|
13,099
|
|
|
1
|
|
|
38,194
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|||||
Cash and due from banks
|
$
|
—
|
|
|
139
|
|
|
—
|
|
|
139
|
|
Interest-earning deposits with banks
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
Debt securities (1):
|
|
|
|
|
|
|
|
|||||
Trading debt securities
|
2,110
|
|
|
245
|
|
|
—
|
|
|
2,355
|
|
|
Available-for-sale debt securities
|
2,686
|
|
|
317
|
|
|
—
|
|
|
3,003
|
|
|
Held-to-maturity debt securities
|
510
|
|
|
—
|
|
|
—
|
|
|
510
|
|
|
Loans
|
2,657
|
|
|
13,564
|
|
|
94
|
|
|
16,315
|
|
|
Mortgage servicing rights
|
14,761
|
|
|
—
|
|
|
—
|
|
|
14,761
|
|
|
Derivative assets
|
53
|
|
|
—
|
|
|
—
|
|
|
53
|
|
|
Equity securities
|
11,041
|
|
|
85
|
|
|
—
|
|
|
11,126
|
|
|
Other assets
|
—
|
|
|
227
|
|
|
—
|
|
|
227
|
|
|
Total assets
|
33,818
|
|
|
14,585
|
|
|
94
|
|
|
48,497
|
|
|
Short-term borrowings
|
—
|
|
|
493
|
|
|
—
|
|
|
493
|
|
|
Derivative liabilities
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
Accrued expenses and other liabilities
|
231
|
|
|
199
|
|
|
—
|
|
|
430
|
|
|
Long-term debt
|
5,094
|
|
|
816
|
|
|
93
|
|
|
6,003
|
|
|
Total liabilities
|
5,351
|
|
|
1,508
|
|
|
93
|
|
|
6,952
|
|
|
Noncontrolling interests
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
|
Net assets
|
$
|
28,467
|
|
|
13,043
|
|
|
1
|
|
|
41,511
|
|
(1)
|
Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Government National Mortgage Association (GNMA).
|
(2)
|
Certain structures included in transfers that we account for as secured borrowings at December 31, 2018 were presented in VIEs that we consolidate to conform with the current period presentation.
|
|
Wells Fargo & Company
|
171
|
|
|
|
Carrying value – asset (liability)
|
|
|||||||||||||||
(in millions)
|
Total
VIE
assets
|
|
|
Debt and equity interests (1)
|
|
|
Servicing assets and advances
|
|
|
Derivatives
|
|
|
Debt, guarantees and other commitments
|
|
|
Net assets
|
|
||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage loan securitizations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Conforming (2)
|
$
|
1,098,103
|
|
|
1,528
|
|
|
11,931
|
|
|
—
|
|
|
(683
|
)
|
|
12,776
|
|
|
Other/nonconforming
|
5,178
|
|
|
6
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
158
|
|
||
Commercial mortgage loan securitizations
|
169,736
|
|
|
2,239
|
|
|
1,069
|
|
|
80
|
|
|
(43
|
)
|
|
3,345
|
|
||
Tax credit structures
|
39,091
|
|
|
12,826
|
|
|
—
|
|
|
—
|
|
|
(4,260
|
)
|
|
8,566
|
|
||
Other asset-based finance structures
|
1,355
|
|
|
157
|
|
|
—
|
|
|
61
|
|
|
(20
|
)
|
|
198
|
|
||
Other
|
1,167
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51
|
|
||
Total
|
$
|
1,314,630
|
|
|
16,807
|
|
|
13,152
|
|
|
141
|
|
|
(5,006
|
)
|
|
25,094
|
|
|
|
|
|
Maximum exposure to loss
|
|
|||||||||||||||
|
|
|
Debt and equity interests (1)
|
|
|
Servicing assets and advances
|
|
|
Derivatives
|
|
|
Guarantees and other commitments
|
|
|
Total exposure
|
|
|||
Residential mortgage loan securitizations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Conforming (2)
|
|
|
$
|
972
|
|
|
11,931
|
|
|
—
|
|
|
937
|
|
|
13,840
|
|
||
Other/nonconforming
|
|
|
6
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|||
Commercial mortgage loan securitizations
|
|
|
2,239
|
|
|
1,069
|
|
|
80
|
|
|
11,667
|
|
|
15,055
|
|
|||
Tax credit structures
|
|
|
12,826
|
|
|
—
|
|
|
—
|
|
|
1,701
|
|
|
14,527
|
|
|||
Other asset-based finance structures
|
|
|
157
|
|
|
—
|
|
|
63
|
|
|
91
|
|
|
311
|
|
|||
Other
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
208
|
|
|||
Total
|
|
|
|
$
|
16,251
|
|
|
13,152
|
|
|
143
|
|
|
14,553
|
|
|
44,099
|
|
172
|
Wells Fargo & Company
|
|
|
|
Carrying value - asset (liability)
|
|
|||||||||||||||
(in millions)
|
Total
VIE
assets
|
|
Debt and equity interests (1)
|
|
|
Servicing assets
|
|
|
Derivatives
|
|
|
Debt, guarantees
and other commitments
|
|
|
Net assets
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage loan securitizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Conforming (2)
|
$
|
1,172,833
|
|
3,601
|
|
|
13,811
|
|
|
—
|
|
|
(1,395
|
)
|
|
16,017
|
|
|
Other/nonconforming
|
10,596
|
|
453
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
510
|
|
||
Commercial mortgage loan securitizations
|
153,350
|
|
2,409
|
|
|
893
|
|
|
(22
|
)
|
|
(40
|
)
|
|
3,240
|
|
||
Tax credit structures
|
35,185
|
|
12,087
|
|
|
—
|
|
|
—
|
|
|
(3,870
|
)
|
|
8,217
|
|
||
Other asset-based finance structures
|
1,520
|
|
271
|
|
|
—
|
|
|
49
|
|
|
(20
|
)
|
|
300
|
|
||
Other
|
1,318
|
|
183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183
|
|
||
Total
|
$
|
1,374,802
|
|
19,004
|
|
|
14,761
|
|
|
27
|
|
|
(5,325
|
)
|
|
28,467
|
|
|
|
|
Maximum exposure to loss
|
|
|||||||||||||||
|
|
Debt and equity interests (1)
|
|
|
Servicing assets
|
|
|
Derivatives
|
|
|
Guarantees
and other commitments
|
|
|
Total exposure
|
|
|||
Residential mortgage loan securitizations:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Conforming (2)
|
|
$
|
2,377
|
|
|
13,811
|
|
|
—
|
|
|
1,183
|
|
|
17,371
|
|
||
Other/nonconforming
|
|
453
|
|
|
57
|
|
|
—
|
|
|
—
|
|
|
510
|
|
|||
Commercial mortgage loan securitizations
|
|
2,409
|
|
|
893
|
|
|
28
|
|
|
11,563
|
|
|
14,893
|
|
|||
Tax credit structures
|
|
12,087
|
|
|
—
|
|
|
—
|
|
|
1,420
|
|
|
13,507
|
|
|||
Other asset-based finance structures
|
|
271
|
|
|
—
|
|
|
50
|
|
|
91
|
|
|
412
|
|
|||
Other
|
|
183
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|
341
|
|
|||
Total
|
|
$
|
17,780
|
|
|
14,761
|
|
|
78
|
|
|
14,415
|
|
|
47,034
|
|
(1)
|
Includes total equity interests of $11.4 billion and $11.0 billion at December 31, 2019 and 2018, respectively. Also includes debt interests in the form of both loans and securities. Excludes certain debt securities held related to loans serviced for FNMA, FHLMC and GNMA.
|
(2)
|
Carrying values include assets and related liabilities of $556 million and $1.2 billion at December 31, 2019 and 2018, respectively, related to certain unexercised unconditional repurchase options. These amounts represent the carrying value of the loans and associated debt that would be payable if the option was exercised to repurchase eligible loans from GNMA loan securitizations. These amounts are excluded from maximum exposure to loss as we are not obligated to exercise the options.
|
|
Wells Fargo & Company
|
173
|
|
Year ended December 31,
|
|
||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||||||
(in millions)
|
Residential mortgages
|
|
|
Commercial mortgages
|
|
|
Residential mortgages
|
|
|
Commercial mortgages
|
|
|
Residential mortgages
|
|
|
Commercial mortgages
|
|
|
Net gains (losses) on sale
|
$
|
89
|
|
|
330
|
|
|
(10
|
)
|
|
280
|
|
|
342
|
|
|
359
|
|
Asset balances sold
|
170,384
|
|
|
18,191
|
|
|
177,805
|
|
|
17,882
|
|
|
213,562
|
|
|
16,696
|
|
|
Servicing rights recognized
|
1,896
|
|
|
161
|
|
|
1,903
|
|
|
158
|
|
|
2,122
|
|
|
166
|
|
|
Securities recognized
|
2,747
|
|
|
51
|
|
|
5,030
|
|
|
81
|
|
|
1,414
|
|
|
65
|
|
|
Liability for repurchase losses recognized
|
18
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
24
|
|
|
—
|
|
174
|
Wells Fargo & Company
|
|
|
Residential mortgage servicing rights
|
|
|||||||
|
Year ended December 31,
|
|
|||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Prepayment speed (1)
|
12.8
|
%
|
|
10.6
|
|
|
11.5
|
|
|
Discount rate
|
7.5
|
|
|
7.4
|
|
|
7.0
|
|
|
Cost to service ($ per loan) (2)
|
$
|
101
|
|
|
128
|
|
|
132
|
|
(1)
|
The prepayment speed assumption for residential MSRs includes a blend of prepayment speeds and default rates. Prepayment speed assumptions are influenced by mortgage interest rate inputs as well as our estimation of drivers of borrower behavior.
|
(2)
|
Includes costs to service and unreimbursed foreclosure costs, which can vary period to period due to changes in model assumptions and the mix of modified government-guaranteed loans sold to GNMA.
|
|
Mortgage loans
|
|
|||||||
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Proceeds from securitizations and whole loan sales
|
$
|
186,615
|
|
|
193,721
|
|
|
228,282
|
|
Fees from servicing rights retained
|
3,149
|
|
|
3,337
|
|
|
3,352
|
|
|
Cash flows from other interests held
|
468
|
|
|
698
|
|
|
2,218
|
|
|
Repurchases of assets/loss reimbursements:
|
|
|
|
|
|
||||
Non-agency securitizations and whole loan transactions
|
(4,441
|
)
|
|
(3
|
)
|
|
(12
|
)
|
|
Government insured loans
|
(6,168
|
)
|
|
(7,775
|
)
|
|
(8,600
|
)
|
|
Agency securitizations
|
(95
|
)
|
|
(96
|
)
|
|
(92
|
)
|
|
Servicing advances, net of recoveries (1)
|
187
|
|
|
154
|
|
|
269
|
|
(1)
|
Cash flows from servicing advances includes principal and interest payments to investors required by servicing agreements.
|
|
Wells Fargo & Company
|
175
|
|
|
|
Other interests held
|
|
|||||||||
|
Residential mortgage servicing rights
|
|
|
Interest-only strips
|
|
|
Commercial
|
|
|||||
($ in millions, except cost to service amounts)
|
|
|
Subordinated bonds
|
|
|
Senior bonds
|
|
||||||
Fair value of interests held at December 31, 2019
|
$
|
11,517
|
|
|
2
|
|
|
909
|
|
|
352
|
|
|
Expected weighted-average life (in years)
|
5.3
|
|
|
3.1
|
|
|
7.3
|
|
|
5.5
|
|
||
|
|
|
|
|
|
|
|
||||||
Key economic assumptions:
|
|
|
|
|
|
|
|
||||||
Prepayment speed assumption
|
11.9
|
%
|
|
19.5
|
|
|
|
|
|
||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% adverse change
|
$
|
537
|
|
|
—
|
|
|
|
|
|
|||
25% adverse change
|
1,261
|
|
|
—
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||
Discount rate assumption
|
7.2
|
%
|
|
12.8
|
|
|
4.0
|
|
|
2.9
|
|
||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
100 basis point increase
|
$
|
464
|
|
|
—
|
|
|
53
|
|
|
16
|
|
|
200 basis point increase
|
889
|
|
|
—
|
|
|
103
|
|
|
32
|
|
||
|
|
|
|
|
|
|
|
||||||
Cost to service assumption ($ per loan)
|
102
|
|
|
|
|
|
|
|
|||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% adverse change
|
253
|
|
|
|
|
|
|
|
|||||
25% adverse change
|
632
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
||||||
Credit loss assumption
|
|
|
|
|
3.1
|
%
|
|
—
|
|
||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% higher losses
|
|
|
|
|
$
|
1
|
|
|
—
|
|
|||
25% higher losses
|
|
|
|
|
4
|
|
|
—
|
|
||||
Fair value of interests held at December 31, 2018
|
$
|
14,649
|
|
|
16
|
|
|
668
|
|
|
309
|
|
|
Expected weighted-average life (in years)
|
6.5
|
|
|
3.6
|
|
|
7.0
|
|
|
5.7
|
|
||
|
|
|
|
|
|
|
|
||||||
Key economic assumptions:
|
|
|
|
|
|
|
|
||||||
Prepayment speed assumption
|
9.9
|
%
|
|
17.7
|
|
|
|
|
|
||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% adverse change
|
$
|
530
|
|
|
1
|
|
|
|
|
|
|||
25% adverse change
|
1,301
|
|
|
1
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||
Discount rate assumption
|
8.1
|
%
|
|
14.5
|
|
|
4.3
|
|
|
3.7
|
|
||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
100 basis point increase
|
$
|
615
|
|
|
—
|
|
|
37
|
|
|
14
|
|
|
200 basis point increase
|
1,176
|
|
|
1
|
|
|
72
|
|
|
28
|
|
||
|
|
|
|
|
|
|
|
||||||
Cost to service assumption ($ per loan)
|
106
|
|
|
|
|
|
|
|
|||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% adverse change
|
316
|
|
|
|
|
|
|
|
|||||
25% adverse change
|
787
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
||||||
Credit loss assumption
|
|
|
|
|
5.1
|
%
|
|
—
|
|
||||
Decrease in fair value from:
|
|
|
|
|
|
|
|
||||||
10% higher losses
|
|
|
|
|
$
|
2
|
|
|
—
|
|
|||
25% higher losses
|
|
|
|
|
5
|
|
|
—
|
|
176
|
Wells Fargo & Company
|
|
(1)
|
Includes $492 million and $675 million of commercial foreclosed assets and $356 million and $582 million of consumer foreclosed assets at December 31, 2019 and 2018, respectively.
|
(2)
|
At December 31, 2019 and 2018, the table includes total loans of $1.0 trillion and $1.1 trillion, delinquent loans of $5.2 billion and $6.4 billion, and foreclosed assets of $251 million and $442 million, respectively, for FNMA, FHLMC and GNMA.
|
(3)
|
Net charge-offs exclude loans sold to FNMA, FHLMC and GNMA as we do not service or manage the underlying real estate upon foreclosure and, as such, do not have access to net charge-off information.
|
|
Wells Fargo & Company
|
177
|
|
|
|
Carrying value
|
|
|||||||||||
(in millions)
|
Total VIE assets
|
|
|
Assets
|
|
|
Liabilities
|
|
|
Noncontrolling interests
|
|
|
Net assets
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage securitizations
|
$
|
81
|
|
|
80
|
|
|
(79
|
)
|
|
—
|
|
|
1
|
|
Total secured borrowings
|
81
|
|
|
80
|
|
|
(79
|
)
|
|
—
|
|
|
1
|
|
|
Consolidated VIEs:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial loans and leases
|
8,054
|
|
|
8,042
|
|
|
(529
|
)
|
|
(16
|
)
|
|
7,497
|
|
|
Nonconforming residential mortgage loan securitizations
|
935
|
|
|
809
|
|
|
(290
|
)
|
|
—
|
|
|
519
|
|
|
Commercial real estate loans
|
4,836
|
|
|
4,836
|
|
|
—
|
|
|
—
|
|
|
4,836
|
|
|
Municipal tender option bond securitizations
|
401
|
|
|
402
|
|
|
(401
|
)
|
|
—
|
|
|
1
|
|
|
Other
|
279
|
|
|
279
|
|
|
(6
|
)
|
|
(27
|
)
|
|
246
|
|
|
Total consolidated VIEs
|
14,505
|
|
|
14,368
|
|
|
(1,226
|
)
|
|
(43
|
)
|
|
13,099
|
|
|
Total secured borrowings and consolidated VIEs
|
$
|
14,586
|
|
|
14,448
|
|
|
(1,305
|
)
|
|
(43
|
)
|
|
13,100
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgage securitizations
|
$
|
95
|
|
|
94
|
|
|
(93
|
)
|
|
—
|
|
|
1
|
|
Total secured borrowings
|
95
|
|
|
94
|
|
|
(93
|
)
|
|
—
|
|
|
1
|
|
|
Consolidated VIEs:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial loans and leases
|
8,215
|
|
|
8,204
|
|
|
(477
|
)
|
|
(14
|
)
|
|
7,713
|
|
|
Nonconforming residential mortgage loan securitizations
|
1,947
|
|
|
1,732
|
|
|
(521
|
)
|
|
—
|
|
|
1,211
|
|
|
Commercial real estate loans
|
3,957
|
|
|
3,957
|
|
|
—
|
|
|
—
|
|
|
3,957
|
|
|
Municipal tender option bond securitizations (1)
|
627
|
|
|
523
|
|
|
(501
|
)
|
|
—
|
|
|
22
|
|
|
Other
|
169
|
|
|
169
|
|
|
(9
|
)
|
|
(20
|
)
|
|
140
|
|
|
Total consolidated VIEs
|
14,915
|
|
|
14,585
|
|
|
(1,508
|
)
|
|
(34
|
)
|
|
13,043
|
|
|
Total secured borrowings and consolidated VIEs
|
$
|
15,010
|
|
|
14,679
|
|
|
(1,601
|
)
|
|
(34
|
)
|
|
13,044
|
|
(1)
|
Municipal tender option bond securitizations were reported as secured borrowings at December 31, 2018. These structures were reported as consolidated VIEs at December 31, 2019 to conform with our presentation of other transactions where we transfer assets to a consolidated VIE and use secured borrowing accounting.
|
178
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
179
|
Note 11: Mortgage Banking Activities
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Fair value, beginning of year
|
$
|
14,649
|
|
|
13,625
|
|
|
12,959
|
|
Purchases
|
—
|
|
|
—
|
|
|
541
|
|
|
Servicing from securitizations or asset transfers (1)
|
1,933
|
|
|
2,010
|
|
|
2,263
|
|
|
Sales and other (2)
|
(286
|
)
|
|
(71
|
)
|
|
(23
|
)
|
|
Net additions
|
1,647
|
|
|
1,939
|
|
|
2,781
|
|
|
Changes in fair value:
|
|
|
|
|
|
||||
Due to changes in valuation model inputs or assumptions:
|
|
|
|
|
|
||||
Mortgage interest rates (3)
|
(2,406
|
)
|
|
1,337
|
|
|
(103
|
)
|
|
Servicing and foreclosure costs (4)
|
48
|
|
|
818
|
|
|
96
|
|
|
Discount rates (5)
|
145
|
|
|
(830
|
)
|
|
13
|
|
|
Prepayment estimates and other (6)
|
(356
|
)
|
|
(365
|
)
|
|
(132
|
)
|
|
Net changes in valuation model inputs or assumptions
|
(2,569
|
)
|
|
960
|
|
|
(126
|
)
|
|
Changes due to collection/realization of expected cash flows over time (7)
|
(2,210
|
)
|
|
(1,875
|
)
|
|
(1,989
|
)
|
|
Total changes in fair value
|
(4,779
|
)
|
|
(915
|
)
|
|
(2,115
|
)
|
|
Fair value, end of year
|
$
|
11,517
|
|
|
14,649
|
|
|
13,625
|
|
(1)
|
Includes impacts associated with exercising cleanup calls on securitizations as well as our right to repurchase delinquent loans from Government National Mortgage Association (GNMA) loan securitization pools. Total reported MSRs may increase upon repurchase due to servicing liabilities associated with these delinquent GNMA loans.
|
(2)
|
Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios or portfolios with servicing liabilities.
|
(3)
|
Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).
|
(4)
|
Includes costs to service and unreimbursed foreclosure costs.
|
(5)
|
Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates.
|
(6)
|
Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.
|
(7)
|
Represents the reduction in the MSR fair value for the cash flows expected to be collected during the period, net of income accreted due to the passage of time
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Balance, beginning of year
|
$
|
1,443
|
|
|
1,424
|
|
|
1,406
|
|
Purchases
|
100
|
|
|
127
|
|
|
115
|
|
|
Servicing from securitizations or asset transfers
|
161
|
|
|
158
|
|
|
166
|
|
|
Amortization
|
(274
|
)
|
|
(266
|
)
|
|
(263
|
)
|
|
Balance, end of year (1)
|
$
|
1,430
|
|
|
1,443
|
|
|
1,424
|
|
Fair value of amortized MSRs:
|
|
|
|
|
|
||||
Beginning of year
|
$
|
2,288
|
|
|
2,025
|
|
|
1,956
|
|
End of year
|
1,872
|
|
|
2,288
|
|
|
2,025
|
|
(1)
|
Commercial amortized MSRs are evaluated for impairment purposes by the following risk strata: agency (GSEs) for multi-family properties and non-agency. There was no valuation allowance recorded for the periods presented on the commercial amortized MSRs.
|
180
|
Wells Fargo & Company
|
|
(in billions)
|
Dec 31, 2019
|
|
|
Dec 31, 2018
|
|
|
Residential mortgage servicing:
|
|
|
|
|||
Serviced for others
|
$
|
1,063
|
|
|
1,164
|
|
Owned loans serviced (1)
|
343
|
|
|
334
|
|
|
Subserviced for others
|
2
|
|
|
4
|
|
|
Total residential servicing
|
1,408
|
|
|
1,502
|
|
|
Commercial mortgage servicing:
|
|
|
|
|||
Serviced for others
|
566
|
|
|
543
|
|
|
Owned loans serviced
|
124
|
|
|
121
|
|
|
Subserviced for others
|
9
|
|
|
9
|
|
|
Total commercial servicing
|
699
|
|
|
673
|
|
|
Total managed servicing portfolio
|
$
|
2,107
|
|
|
2,175
|
|
Total serviced for others
|
$
|
1,629
|
|
|
1,707
|
|
Ratio of MSRs to related loans serviced for others
|
0.79
|
%
|
|
0.94
|
|
(1)
|
Excludes loans serviced by third parties.
|
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Servicing income, net:
|
|
|
|
|
|
|
||||
Servicing fees:
|
|
|
|
|
|
|
||||
Contractually specified servicing fees
|
|
$
|
3,388
|
|
|
3,613
|
|
|
3,603
|
|
Late charges
|
|
129
|
|
|
162
|
|
|
172
|
|
|
Ancillary fees
|
|
143
|
|
|
182
|
|
|
199
|
|
|
Unreimbursed direct servicing costs (1)
|
|
(403
|
)
|
|
(331
|
)
|
|
(582
|
)
|
|
Net servicing fees
|
|
3,257
|
|
|
3,626
|
|
|
3,392
|
|
|
Changes in fair value of MSRs carried at fair value:
|
|
|
|
|
|
|
||||
Due to changes in valuation model inputs or assumptions (2)
|
(A)
|
(2,569
|
)
|
|
960
|
|
|
(126
|
)
|
|
Changes due to collection/realization of expected cash flows over time (3)
|
|
(2,210
|
)
|
|
(1,875
|
)
|
|
(1,989
|
)
|
|
Total changes in fair value of MSRs carried at fair value
|
|
(4,779
|
)
|
|
(915
|
)
|
|
(2,115
|
)
|
|
Amortization
|
|
(274
|
)
|
|
(266
|
)
|
|
(263
|
)
|
|
Net derivative gains (losses) from economic hedges (4)
|
(B)
|
2,318
|
|
|
(1,072
|
)
|
|
413
|
|
|
Total servicing income, net
|
|
522
|
|
|
1,373
|
|
|
1,427
|
|
|
Net gains on mortgage loan origination/sales activities (5)
|
|
2,193
|
|
|
1,644
|
|
|
2,923
|
|
|
Total mortgage banking noninterest income
|
|
$
|
2,715
|
|
|
3,017
|
|
|
4,350
|
|
Market-related valuation changes to MSRs, net of hedge results (2)(4)
|
(A)+(B)
|
$
|
(251
|
)
|
|
(112
|
)
|
|
287
|
|
(1)
|
Includes costs associated with foreclosures, unreimbursed interest advances to investors, and other interest costs.
|
(2)
|
Refer to the analysis of changes in fair value MSRs presented in Table 11.1 in this Note for more detail.
|
(3)
|
Represents the reduction in the MSR fair value for the cash flows expected to be collected during the period, net of income accreted due to the passage of time.
|
(4)
|
Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs. See Note 18 (Derivatives) for additional discussion and detail.
|
(5)
|
Includes net gains (losses) of $(141) million, $857 million and $35 million at December 31, 2019, 2018 and 2017, respectively, related to derivatives used as economic hedges of mortgage loans held for sale and derivative loan commitments.
|
|
Wells Fargo & Company
|
181
|
Note 12: Intangible Assets
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Gross carrying value
|
|
|
Accumulated amortization
|
|
|
Net carrying value
|
|
|
Gross carrying value
|
|
|
Accumulated amortization
|
|
|
Net carrying value
|
|
|
Amortized intangible assets (1):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
MSRs (2)
|
$
|
4,422
|
|
|
(2,992
|
)
|
|
1,430
|
|
|
4,161
|
|
|
(2,718
|
)
|
|
1,443
|
|
Core deposit intangibles
|
—
|
|
|
—
|
|
|
—
|
|
|
12,834
|
|
|
(12,834
|
)
|
|
—
|
|
|
Customer relationship and other intangibles
|
947
|
|
|
(524
|
)
|
|
423
|
|
|
3,994
|
|
|
(3,449
|
)
|
|
545
|
|
|
Total amortized intangible assets
|
$
|
5,369
|
|
|
(3,516
|
)
|
|
1,853
|
|
|
20,989
|
|
|
(19,001
|
)
|
|
1,988
|
|
Unamortized intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
MSRs (carried at fair value) (2)
|
$
|
11,517
|
|
|
|
|
|
|
14,649
|
|
|
|
|
|
||||
Goodwill
|
26,390
|
|
|
|
|
|
|
26,418
|
|
|
|
|
|
|||||
Trademark
|
14
|
|
|
|
|
|
|
14
|
|
|
|
|
|
(1)
|
Balances are excluded commencing in the period following full amortization.
|
(2)
|
See Note 11 (Mortgage Banking Activities) for additional information on MSRs.
|
(in millions)
|
Amortized MSRs
|
|
|
Customer relationship and other intangibles
|
|
|
Total
|
|
|
Year ended December 31, 2019 (actual)
|
$
|
274
|
|
|
114
|
|
|
388
|
|
Estimate for year ended December 31,
|
|
|
|
|
|
||||
2020
|
$
|
263
|
|
|
95
|
|
|
358
|
|
2021
|
227
|
|
|
81
|
|
|
308
|
|
|
2022
|
203
|
|
|
68
|
|
|
271
|
|
|
2023
|
176
|
|
|
59
|
|
|
235
|
|
|
2024
|
152
|
|
|
48
|
|
|
200
|
|
(in millions)
|
Community Banking
|
|
|
Wholesale
Banking
|
|
|
Wealth and Investment Management
|
|
|
Consolidated Company
|
|
|
December 31, 2017 (1)
|
$
|
16,849
|
|
|
8,455
|
|
|
1,283
|
|
|
26,587
|
|
Reduction in goodwill related to divested businesses and foreign currency translation
|
(164
|
)
|
|
(5
|
)
|
|
—
|
|
|
(169
|
)
|
|
December 31, 2018 (1)
|
$
|
16,685
|
|
|
8,450
|
|
|
1,283
|
|
|
26,418
|
|
Reduction in goodwill related to divested businesses and foreign currency translation
|
—
|
|
|
(21
|
)
|
|
(7
|
)
|
|
(28
|
)
|
|
December 31, 2019 (1)
|
$
|
16,685
|
|
|
8,429
|
|
|
1,276
|
|
|
26,390
|
|
(1)
|
At December 31, 2017, other assets included Goodwill classified as held-for-sale of $13 million related to the sales agreement for Wells Fargo Shareowner Services, which closed in February 2018. At December 31, 2019, and December 31, 2018, there was no Goodwill classified as held-for-sale in other assets.
|
182
|
Wells Fargo & Company
|
|
Note 13: Deposits
|
|
|
|
December 31,
|
|
||||
(in billions)
|
|
2019
|
|
|
2018
|
|
||
Total domestic and Non-U.S.
|
$
|
118.8
|
|
|
130.6
|
|
||
Domestic:
|
|
|
|
|
||||
|
$100,000 or more
|
43.7
|
|
|
42.5
|
|
||
|
$250,000 or more
|
34.6
|
|
|
37.1
|
|
||
Non-U.S.
|
|
|
|
|||||
|
$100,000 or more
|
4.0
|
|
|
4.6
|
|
||
|
$250,000 or more
|
4.0
|
|
|
4.6
|
|
(in millions)
|
December 31, 2019
|
|
|
2020
|
$
|
88,259
|
|
2021
|
15,429
|
|
|
2022
|
6,055
|
|
|
2023
|
4,130
|
|
|
2024
|
1,906
|
|
|
Thereafter
|
3,070
|
|
|
Total
|
$
|
118,849
|
|
(in millions)
|
December 31, 2019
|
|
|
Three months or less
|
$
|
18,759
|
|
After three months through six months
|
10,583
|
|
|
After six months through twelve months
|
11,766
|
|
|
After twelve months
|
2,624
|
|
|
Total
|
$
|
43,732
|
|
|
Wells Fargo & Company
|
183
|
Note 14: Short-Term Borrowings
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||||||||
(in millions)
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|||
As of December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
92,403
|
|
|
1.54
|
%
|
|
$
|
92,430
|
|
|
2.65
|
%
|
|
$
|
88,684
|
|
|
1.30
|
%
|
Commercial paper
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other short-term borrowings
|
12,109
|
|
|
0.60
|
|
|
13,357
|
|
|
1.63
|
|
|
14,572
|
|
|
0.72
|
|
|||
Total
|
$
|
104,512
|
|
|
1.43
|
|
|
$
|
105,787
|
|
|
2.52
|
|
|
$
|
103,256
|
|
|
1.22
|
|
Year ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Average daily balance
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds purchased and securities sold under agreements to repurchase
|
$
|
102,888
|
|
|
2.11
|
|
|
$
|
90,348
|
|
|
1.78
|
|
|
$
|
82,507
|
|
|
0.90
|
|
Commercial paper
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
0.95
|
|
|||
Other short-term borrowings
|
12,449
|
|
|
1.20
|
|
|
13,919
|
|
|
0.79
|
|
|
16,399
|
|
|
0.13
|
|
|||
Total
|
$
|
115,337
|
|
|
2.01
|
|
|
$
|
104,267
|
|
|
1.65
|
|
|
$
|
98,922
|
|
|
0.77
|
|
Maximum month-end balance
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal funds purchased and securities sold under agreements to repurchase (1)
|
$
|
111,726
|
|
|
N/A
|
|
|
$
|
93,918
|
|
|
N/A
|
|
|
$
|
91,604
|
|
|
N/A
|
|
Commercial paper (2)
|
—
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
|
78
|
|
|
N/A
|
|
|||
Other short-term borrowings (3)
|
14,129
|
|
|
N/A
|
|
|
16,924
|
|
|
N/A
|
|
|
19,439
|
|
|
N/A
|
|
(1)
|
Highest month-end balance in each of the last three years was October 2019, November 2018 and November 2017.
|
(2)
|
There were no month-end balances in 2019 and 2018; highest month-end balance in 2017 was January.
|
(3)
|
Highest month-end balance in each of the last three years was February 2019, January 2018 and February 2017.
|
184
|
Wells Fargo & Company
|
|
Note 15: Long-Term Debt
|
|
December 31,
|
|
||||||||
|
2019
|
|
|
2018
|
|
|||||
(in millions)
|
Maturity date(s)
|
|
Stated interest rate(s)
|
|
|
|
|
|||
Wells Fargo & Company (Parent only)
|
|
|
|
|
|
|
|
|||
Senior
|
|
|
|
|
|
|
|
|||
Fixed-rate notes (1)
|
2020-2047
|
|
0.38 - 6.75%
|
|
$
|
86,618
|
|
|
77,742
|
|
Floating-rate notes
|
2020-2048
|
|
0.02-3.24%
|
|
16,800
|
|
|
19,553
|
|
|
FixFloat notes
|
2025-2030
|
|
2.41-3.58%
|
|
12,030
|
|
|
2,901
|
|
|
Structured notes (2)
|
|
|
|
|
8,390
|
|
|
7,984
|
|
|
Total senior debt - Parent
|
|
|
|
|
123,838
|
|
|
108,180
|
|
|
Subordinated
|
|
|
|
|
|
|
|
|||
Fixed-rate notes (3)
|
2023-2046
|
|
3.45-7.57%
|
|
27,195
|
|
|
25,428
|
|
|
Total subordinated debt - Parent
|
|
|
|
|
27,195
|
|
|
25,428
|
|
|
Junior subordinated
|
|
|
|
|
|
|
|
|||
Fixed-rate notes - trust securities
|
2029-2036
|
|
5.95-7.95%
|
|
1,428
|
|
|
1,308
|
|
|
Floating-rate notes
|
2027
|
|
2.50-3.00%
|
|
318
|
|
|
308
|
|
|
Total junior subordinated debt - Parent (4)
|
|
|
|
|
1,746
|
|
|
1,616
|
|
|
Total long-term debt - Parent (3)
|
|
|
|
|
152,779
|
|
|
135,224
|
|
|
Wells Fargo Bank, N.A., and other bank entities (Bank)
|
|
|
|
|
|
|
|
|||
Senior
|
|
|
|
|
|
|
|
|||
Fixed-rate notes
|
2020-2023
|
|
2.40-3.63%
|
|
9,364
|
|
|
14,222
|
|
|
Floating-rate notes
|
2020-2053
|
|
1.64-2.55%
|
|
10,617
|
|
|
6,617
|
|
|
FixFloat notes
|
2021-2022
|
|
2.08-3.33%
|
|
5,097
|
|
|
1,998
|
|
|
Fixed-rate advances - Federal Home Loan Bank (FHLB)
|
2020-2031
|
|
3.83-7.50%
|
|
41
|
|
|
51
|
|
|
Floating-rate advances - FHLB
|
2020-2022
|
|
1.83-2.31%
|
|
32,950
|
|
|
53,825
|
|
|
Structured notes (2)
|
|
|
|
|
1,914
|
|
|
1,646
|
|
|
Finance leases
|
2020-2029
|
|
1.69-17.78%
|
|
32
|
|
|
36
|
|
|
Total senior debt - Bank
|
|
|
|
|
60,015
|
|
|
78,395
|
|
|
Subordinated
|
|
|
|
|
|
|
|
|||
Fixed-rate notes
|
2023-2038
|
|
5.25-7.74%
|
|
5,374
|
|
|
5,199
|
|
|
Total subordinated debt - Bank
|
|
|
|
|
5,374
|
|
|
5,199
|
|
|
Junior subordinated
|
|
|
|
|
|
|
|
|||
Floating-rate notes
|
2027
|
|
2.48-2.65%
|
|
363
|
|
|
352
|
|
|
Total junior subordinated debt - Bank (4)
|
|
|
|
|
363
|
|
|
352
|
|
|
Long-term debt issued by VIE - Fixed rate
|
2037
|
|
6.00%
|
|
17
|
|
|
160
|
|
|
Long-term debt issued by VIE - Floating rate
|
2020-2038
|
|
2.38-4.62%
|
|
570
|
|
|
656
|
|
|
Mortgage notes and other debt (5)
|
2020-2057
|
|
9.20%
|
|
6,185
|
|
|
6,637
|
|
|
Total long-term debt - Bank
|
|
|
|
|
72,524
|
|
|
91,399
|
|
|
Wells Fargo & Company
|
185
|
|
December 31,
|
|
|||||||||
|
2019
|
|
|
2018
|
|
||||||
(in millions)
|
Maturity date(s)
|
|
Stated interest rate(s)
|
|
|
|
|
|
|||
Other consolidated subsidiaries
|
|
|
|
|
|
|
|
||||
Senior
|
|
|
|
|
|
|
|
||||
Fixed-rate notes
|
2021-2023
|
|
3.04-3.46%
|
|
|
1,352
|
|
|
2,383
|
|
|
Structured notes (2)
|
|
|
|
|
|
1,503
|
|
|
6
|
|
|
Finance leases
|
2020
|
|
3.71
|
%
|
|
1
|
|
|
—
|
|
|
Total senior debt - Other consolidated subsidiaries
|
|
|
|
|
2,856
|
|
|
2,389
|
|
||
Mortgage notes and other
|
2026
|
|
3.27%
|
|
|
32
|
|
|
32
|
|
|
Total long-term debt - Other consolidated subsidiaries
|
|
|
|
|
2,888
|
|
|
2,421
|
|
||
Total long-term debt
|
|
|
|
|
$
|
228,191
|
|
|
229,044
|
|
(1)
|
Includes $66 million of outstanding zero coupon callable notes at December 31, 2019.
|
(2)
|
Included in the table are certain structured notes that have coupon or repayment terms linked to the performance of debt or equity securities, an embedded equity, commodity, or currency index, or basket of indices accounted for separately from the note as a free-standing derivative, and the maturity may be accelerated based on the value of a referenced index or security. For information on embedded derivatives, see the “Derivatives Not Designated as Hedging Instruments” section in Note 18 (Derivatives). In addition, a major portion consists of zero coupon callable notes where interest is paid as part of the final redemption amount.
|
(3)
|
Includes fixed-rate subordinated notes issued by the Parent at a discount of $128 million and $131 million in 2019 and 2018, respectively, and debt issuance costs of $2 million in both 2019 and 2018, to effect a modification of Wells Fargo Bank, N.A., notes. These subordinated notes are carried at their par amount on the balance sheet of the Parent presented in Note 28 (Parent-Only Financial Statements). In addition, Parent long-term debt presented in Note 28 also includes affiliate related issuance costs of $281 million and $278 million in 2019 and 2018, respectively.
|
(4)
|
Represents junior subordinated debentures held by unconsolidated wholly-owned trusts formed for the sole purpose of issuing trust preferred securities. See Note 10 (Securitizations and Variable Interest Entities) for additional information.
|
(5)
|
Largely relates to unfunded commitments for LIHTC investments. For additional information, see Note 8 (Equity Securities).
|
|
December 31, 2019
|
|
|||||||||||||||||||
(in millions)
|
2020
|
|
|
2021
|
|
|
2022
|
|
|
2023
|
|
|
2024
|
|
|
Thereafter
|
|
|
Total
|
|
|
Wells Fargo & Company (Parent Only)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Senior notes
|
$
|
13,429
|
|
|
18,163
|
|
|
18,091
|
|
|
11,104
|
|
|
9,387
|
|
|
53,664
|
|
|
123,838
|
|
Subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
3,653
|
|
|
737
|
|
|
22,805
|
|
|
27,195
|
|
|
Junior subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,746
|
|
|
1,746
|
|
|
Total long-term debt - Parent
|
13,429
|
|
|
18,163
|
|
|
18,091
|
|
|
14,757
|
|
|
10,124
|
|
|
78,215
|
|
|
152,779
|
|
|
Wells Fargo Bank, N.A., and other bank entities (Bank)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Senior notes
|
23,415
|
|
|
27,865
|
|
|
5,585
|
|
|
2,884
|
|
|
6
|
|
|
260
|
|
|
60,015
|
|
|
Subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
1,071
|
|
|
—
|
|
|
4,303
|
|
|
5,374
|
|
|
Junior subordinated notes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|
363
|
|
|
Securitizations and other bank debt
|
2,658
|
|
|
1,138
|
|
|
633
|
|
|
224
|
|
|
157
|
|
|
1,962
|
|
|
6,772
|
|
|
Total long-term debt - Bank
|
26,073
|
|
|
29,003
|
|
|
6,218
|
|
|
4,179
|
|
|
163
|
|
|
6,888
|
|
|
72,524
|
|
|
Other consolidated subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Senior notes
|
144
|
|
|
1,761
|
|
|
93
|
|
|
435
|
|
|
118
|
|
|
305
|
|
|
2,856
|
|
|
Securitizations and other bank debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
32
|
|
|
Total long-term debt - Other consolidated subsidiaries
|
144
|
|
|
1,761
|
|
|
93
|
|
|
435
|
|
|
118
|
|
|
337
|
|
|
2,888
|
|
|
Total long-term debt
|
$
|
39,646
|
|
|
48,927
|
|
|
24,402
|
|
|
19,371
|
|
|
10,405
|
|
|
85,440
|
|
|
228,191
|
|
186
|
Wells Fargo & Company
|
|
Note 16: Guarantees, Pledged Assets and Collateral, and Other Commitments
|
|
|
|
Maximum exposure to loss
|
|
|||||||||||||||||
(in millions)
|
Carrying value of obligation (asset)
|
|
|
Expires in one year or less
|
|
|
Expires after one year through three years
|
|
|
Expires after three years through five years
|
|
|
Expires after five years
|
|
|
Total
|
|
|
Non-investment grade
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Standby letters of credit
|
$
|
36
|
|
|
11,569
|
|
|
4,460
|
|
|
2,812
|
|
|
467
|
|
|
19,308
|
|
|
7,104
|
|
Direct pay letters of credit
|
—
|
|
|
1,861
|
|
|
3,815
|
|
|
824
|
|
|
105
|
|
|
6,605
|
|
|
1,184
|
|
|
Written options (1)
|
(345
|
)
|
|
17,088
|
|
|
10,869
|
|
|
2,341
|
|
|
273
|
|
|
30,571
|
|
|
18,113
|
|
|
Loans and MLHFS sold with recourse (2)
|
52
|
|
|
114
|
|
|
576
|
|
|
1,356
|
|
|
10,050
|
|
|
12,096
|
|
|
9,835
|
|
|
Exchange and clearing house guarantees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,817
|
|
|
4,817
|
|
|
—
|
|
|
Other guarantees and indemnifications (3)
|
1
|
|
|
785
|
|
|
1
|
|
|
3
|
|
|
809
|
|
|
1,598
|
|
|
698
|
|
|
Total guarantees
|
$
|
(256
|
)
|
|
31,417
|
|
|
19,721
|
|
|
7,336
|
|
|
16,521
|
|
|
74,995
|
|
|
36,934
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Standby letters of credit (4)
|
$
|
40
|
|
|
10,947
|
|
|
4,649
|
|
|
2,872
|
|
|
461
|
|
|
18,929
|
|
|
7,017
|
|
Direct pay letters of credit (4)
|
—
|
|
|
3,689
|
|
|
3,248
|
|
|
526
|
|
|
36
|
|
|
7,499
|
|
|
1,010
|
|
|
Written options (1)
|
(185
|
)
|
|
17,243
|
|
|
10,502
|
|
|
3,066
|
|
|
400
|
|
|
31,211
|
|
|
21,732
|
|
|
Loans and MLHFS sold with recourse (2)
|
54
|
|
|
104
|
|
|
653
|
|
|
1,207
|
|
|
10,163
|
|
|
12,127
|
|
|
9,079
|
|
|
Exchange and clearing house guarantees (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,922
|
|
|
2,922
|
|
|
—
|
|
|
Other guarantees and indemnifications (3), (4)
|
1
|
|
|
889
|
|
|
1
|
|
|
3
|
|
|
1,081
|
|
|
1,974
|
|
|
753
|
|
|
Total guarantees
|
$
|
(90
|
)
|
|
32,872
|
|
|
19,053
|
|
|
7,674
|
|
|
15,063
|
|
|
74,662
|
|
|
39,591
|
|
(1)
|
Written options, which are in the form of derivatives, are also included in the derivative disclosures in Note 18 (Derivatives). Carrying value net asset position is a result of certain deferred premium option trades.
|
(2)
|
Represent recourse provided, predominantly to the GSEs, on loans sold under various programs and arrangements.
|
(3)
|
Includes indemnifications provided to certain third-party clearing agents. Outstanding customer obligations under these arrangements were $80 million and $70 million with related collateral of $696 million and $974 million at December 31, 2019 and 2018, respectively.
|
(4)
|
Prior period amounts have been revised to conform with the current period presentation.
|
|
Wells Fargo & Company
|
187
|
188
|
Wells Fargo & Company
|
|
•
|
Pledged assets of consolidated VIEs of $14.4 billion and $14.6 billion at December 31, 2019 and 2018, respectively, which can only be used to settle the liabilities of those entities;
|
•
|
Assets pledged in transactions with VIEs accounted for as secured borrowings of $80 million and $94 million at December 31, 2019 and 2018, respectively; and
|
•
|
Pledged loans recorded on our balance sheet of $568 million and $1.2 billion at December 31, 2019 and 2018, respectively, representing certain delinquent loans that are eligible for repurchase from GNMA loan securitizations.
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Related to trading activities:
|
|
|
|
|||
Debt securities
|
$
|
106,105
|
|
|
96,616
|
|
Equity securities
|
6,204
|
|
|
9,695
|
|
|
Total pledged assets related to trading activities (1)
|
112,309
|
|
|
106,311
|
|
|
Related to non-trading activities:
|
|
|
|
|||
Debt securities and other
|
65,047
|
|
|
62,438
|
|
|
Mortgage loans held for sale (2)
|
2,266
|
|
|
7,439
|
|
|
Loans (2)
|
406,106
|
|
|
446,455
|
|
|
Total pledged assets related to non-trading activities
|
473,419
|
|
|
516,332
|
|
|
Total pledged assets
|
$
|
585,728
|
|
|
622,643
|
|
(1)
|
Includes securities collateral received from third parties that we have repledged of $60.1 billion and $60.8 billion as of December 31, 2019 and 2018, respectively.
|
(2)
|
Prior period amounts have been revised to conform with the current period presentation.
|
|
Wells Fargo & Company
|
189
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Assets:
|
|
|
|
|||
Resale and securities borrowing agreements
|
|
|
|
|||
Gross amounts recognized
|
$
|
140,773
|
|
|
112,662
|
|
Gross amounts offset in consolidated balance sheet (1)
|
(19,180
|
)
|
|
(15,258
|
)
|
|
Net amounts in consolidated balance sheet (2)
|
121,593
|
|
|
97,404
|
|
|
Collateral not recognized in consolidated balance sheet (3)
|
(120,786
|
)
|
|
(96,734
|
)
|
|
Net amount (4)
|
$
|
807
|
|
|
670
|
|
Liabilities:
|
|
|
|
|||
Repurchase and securities lending agreements
|
|
|
|
|||
Gross amounts recognized (5)
|
$
|
111,038
|
|
|
106,248
|
|
Gross amounts offset in consolidated balance sheet (1)
|
(19,180
|
)
|
|
(15,258
|
)
|
|
Net amounts in consolidated balance sheet (6)
|
91,858
|
|
|
90,990
|
|
|
Collateral pledged but not netted in consolidated balance sheet (7)
|
(91,709
|
)
|
|
(90,798
|
)
|
|
Net amount (8)
|
$
|
149
|
|
|
192
|
|
(1)
|
Represents recognized amount of resale and repurchase agreements with counterparties subject to enforceable MRAs that have been offset in the consolidated balance sheet.
|
(2)
|
Includes $102.1 billion and $80.1 billion, respectively, classified on our consolidated balance sheet in federal funds sold and securities purchased under resale agreements at December 31, 2019 and 2018. Also includes securities purchased under long-term resale agreements (generally one year or more) classified in loans, which totaled $19.5 billion and $17.3 billion, at December 31, 2019 and 2018, respectively.
|
(3)
|
Represents the fair value of collateral we have received under enforceable MRAs or MSLAs, limited in the table above to the amount of the recognized asset due from each counterparty. At December 31, 2019 and 2018, we have received total collateral with a fair value of $150.9 billion and $123.1 billion, respectively, all of which we have the right to sell or repledge. These amounts include securities we have sold or repledged to others with a fair value of $59.1 billion at December 31, 2019, and $60.8 billion at December 31, 2018.
|
(4)
|
Represents the amount of our exposure that is not collateralized and/or is not subject to an enforceable MRA or MSLA.
|
(5)
|
For additional information on underlying collateral and contractual maturities, see the “Repurchase and Securities Lending Agreements” section in this Note.
|
(6)
|
Amount is classified in short-term borrowings on our consolidated balance sheet.
|
(7)
|
Represents the fair value of collateral we have pledged, related to enforceable MRAs or MSLAs, limited in the table above to the amount of the recognized liability owed to each counterparty. At December 31, 2019 and 2018, we have pledged total collateral with a fair value of $113.3 billion and $108.8 billion, respectively, substantially all of which may be sold or repledged by the counterparty.
|
(8)
|
Represents the amount of our obligation that is not covered by pledged collateral and/or is not subject to an enforceable MRA or MSLA.
|
190
|
Wells Fargo & Company
|
|
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
|
2019
|
|
|
2018
|
|
|
Repurchase agreements:
|
|
|
|
|
|||
Securities of U.S. Treasury and federal agencies
|
|
$
|
48,161
|
|
|
38,408
|
|
Securities of U.S. States and political subdivisions
|
|
104
|
|
|
159
|
|
|
Federal agency mortgage-backed securities
|
|
44,737
|
|
|
47,241
|
|
|
Non-agency mortgage-backed securities
|
|
1,818
|
|
|
1,875
|
|
|
Corporate debt securities
|
|
7,126
|
|
|
6,191
|
|
|
Asset-backed securities
|
|
1,844
|
|
|
2,074
|
|
|
Equity securities
|
|
1,674
|
|
|
992
|
|
|
Other
|
|
705
|
|
|
340
|
|
|
Total repurchases
|
|
106,169
|
|
|
97,280
|
|
|
Securities lending arrangements:
|
|
|
|
|
|||
Securities of U.S. Treasury and federal agencies
|
|
163
|
|
|
222
|
|
|
Federal agency mortgage-backed securities
|
|
—
|
|
|
2
|
|
|
Corporate debt securities
|
|
223
|
|
|
389
|
|
|
Equity securities (1)
|
|
4,481
|
|
|
8,349
|
|
|
Other
|
|
2
|
|
|
6
|
|
|
Total securities lending
|
|
4,869
|
|
|
8,968
|
|
|
Total repurchases and securities lending
|
|
$
|
111,038
|
|
|
106,248
|
|
(1)
|
Equity securities are generally exchange traded and represent collateral received from third parties that has been repledged. We received the collateral through either margin lending agreements or contemporaneous securities borrowing transactions with other counterparties.
|
(in millions)
|
Overnight/continuous
|
|
|
Up to 30 days
|
|
|
30-90 days
|
|
|
>90 days
|
|
|
Total gross obligation
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Repurchase agreements
|
$
|
79,793
|
|
|
17,681
|
|
|
4,825
|
|
|
3,870
|
|
|
106,169
|
|
Securities lending arrangements
|
4,724
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
4,869
|
|
|
Total repurchases and securities lending (1)
|
$
|
84,517
|
|
|
17,681
|
|
|
4,970
|
|
|
3,870
|
|
|
111,038
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Repurchase agreements
|
$
|
86,574
|
|
|
3,244
|
|
|
2,153
|
|
|
5,309
|
|
|
97,280
|
|
Securities lending arrangements
|
8,669
|
|
|
—
|
|
|
299
|
|
|
—
|
|
|
8,968
|
|
|
Total repurchases and securities lending (1)
|
$
|
95,243
|
|
|
3,244
|
|
|
2,452
|
|
|
5,309
|
|
|
106,248
|
|
(1)
|
Securities lending is executed under agreements that allow either party to terminate the transaction without notice, while repurchase agreements have a term structure to them that technically matures at a point in time. The overnight/continuous repurchase agreements require election of both parties to roll the trade rather than the election to terminate the arrangement as in securities lending.
|
|
Wells Fargo & Company
|
191
|
Note 17: Legal Actions
|
192
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
193
|
194
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
195
|
Note 18: Derivatives
|
•
|
Note 1 – Summary of Significant Accounting Policies
|
•
|
Note 4 – Trading Activities
|
•
|
Note 8 – Equity Securities
|
•
|
Note 10 – Securitizations and Variable Interest Entities
|
•
|
Note 11 – Mortgage Banking Activities
|
•
|
Note 15 – Long-Term Debt
|
•
|
Note 16 – Guarantees, Pledged Assets and Collateral, and Other Commitments
|
•
|
Note 19 – Fair Values of Assets and Liabilities
|
•
|
Note 24 – Income Taxes
|
•
|
Note 26 – Other Comprehensive Income
|
•
|
Note 28 – Parent-Only Financial Statements
|
196
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||
|
Notional or
|
|
|
Fair value
|
|
|
Notional or
|
|
|
Fair value
|
|
||||||||
|
contractual
|
|
|
Derivative
|
|
|
Derivative
|
|
|
contractual
|
|
|
Derivative
|
|
|
Derivative
|
|
||
(in millions)
|
amount
|
|
|
assets
|
|
|
liabilities
|
|
|
amount
|
|
|
assets
|
|
|
liabilities
|
|
||
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
182,789
|
|
|
2,595
|
|
|
1,237
|
|
|
177,511
|
|
|
2,237
|
|
|
636
|
|
|
Foreign exchange contracts
|
32,386
|
|
|
341
|
|
|
1,170
|
|
|
34,176
|
|
|
573
|
|
|
1,376
|
|
||
Total derivatives designated as qualifying hedging instruments
|
|
|
2,936
|
|
|
2,407
|
|
|
|
|
2,810
|
|
|
2,012
|
|
||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
235,810
|
|
|
207
|
|
|
160
|
|
|
173,215
|
|
|
849
|
|
|
369
|
|
||
Equity contracts
|
19,263
|
|
|
1,126
|
|
|
224
|
|
|
13,920
|
|
|
1,362
|
|
|
79
|
|
||
Foreign exchange contracts
|
26,595
|
|
|
118
|
|
|
286
|
|
|
19,521
|
|
|
225
|
|
|
80
|
|
||
Credit contracts - protection purchased
|
1,400
|
|
|
27
|
|
|
—
|
|
|
100
|
|
|
27
|
|
|
—
|
|
||
Subtotal
|
|
|
1,478
|
|
|
670
|
|
|
|
|
2,463
|
|
|
528
|
|
||||
Customer accommodation trading and other derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
11,117,542
|
|
|
21,245
|
|
|
17,969
|
|
|
9,162,821
|
|
|
15,349
|
|
|
15,303
|
|
||
Commodity contracts
|
79,737
|
|
|
1,421
|
|
|
1,770
|
|
|
66,173
|
|
|
1,588
|
|
|
2,336
|
|
||
Equity contracts
|
272,145
|
|
|
7,410
|
|
|
10,240
|
|
|
217,890
|
|
|
6,183
|
|
|
5,931
|
|
||
Foreign exchange contracts
|
364,469
|
|
|
4,755
|
|
|
4,791
|
|
|
364,982
|
|
|
5,916
|
|
|
5,657
|
|
||
Credit contracts - protection sold
|
12,215
|
|
|
12
|
|
|
65
|
|
|
11,741
|
|
|
76
|
|
|
182
|
|
||
Credit contracts - protection purchased
|
24,030
|
|
|
69
|
|
|
18
|
|
|
20,880
|
|
|
175
|
|
|
98
|
|
||
Subtotal
|
|
|
34,912
|
|
|
34,853
|
|
|
|
|
29,287
|
|
|
29,507
|
|
||||
Total derivatives not designated as hedging instruments
|
|
|
36,390
|
|
|
35,523
|
|
|
|
|
31,750
|
|
|
30,035
|
|
||||
Total derivatives before netting
|
|
|
39,326
|
|
|
37,930
|
|
|
|
|
34,560
|
|
|
32,047
|
|
||||
Netting
|
|
|
(25,123
|
)
|
|
(28,851
|
)
|
|
|
|
(23,790
|
)
|
|
(23,548
|
)
|
||||
Total
|
|
|
$
|
14,203
|
|
|
9,079
|
|
|
|
|
10,770
|
|
|
8,499
|
|
|
Wells Fargo & Company
|
197
|
198
|
Wells Fargo & Company
|
|
(in millions)
|
Gross amounts recognized
|
|
|
Gross amounts offset in consolidated balance sheet (1)
|
|
|
Net amounts in consolidated balance sheet
|
|
|
Gross amounts not offset in consolidated balance sheet (Disclosure-only netting)
|
|
|
Net amounts
|
|
|
Percent exchanged in over-the-counter market
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
$
|
24,047
|
|
|
(14,878
|
)
|
|
9,169
|
|
|
(445
|
)
|
|
8,724
|
|
|
95
|
%
|
Commodity contracts
|
1,421
|
|
|
(888
|
)
|
|
533
|
|
|
(2
|
)
|
|
531
|
|
|
80
|
|
|
Equity contracts
|
8,536
|
|
|
(5,570
|
)
|
|
2,966
|
|
|
(69
|
)
|
|
2,897
|
|
|
65
|
|
|
Foreign exchange contracts
|
5,214
|
|
|
(3,722
|
)
|
|
1,492
|
|
|
(22
|
)
|
|
1,470
|
|
|
100
|
|
|
Credit contracts-protection sold
|
12
|
|
|
(9
|
)
|
|
3
|
|
|
—
|
|
|
3
|
|
|
84
|
|
|
Credit contracts-protection purchased
|
96
|
|
|
(56
|
)
|
|
40
|
|
|
(1
|
)
|
|
39
|
|
|
97
|
|
|
Total derivative assets
|
$
|
39,326
|
|
|
(25,123
|
)
|
|
14,203
|
|
|
(539
|
)
|
|
13,664
|
|
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
$
|
19,366
|
|
|
(16,595
|
)
|
|
2,771
|
|
|
(545
|
)
|
|
2,226
|
|
|
94
|
%
|
Commodity contracts
|
1,770
|
|
|
(677
|
)
|
|
1,093
|
|
|
(2
|
)
|
|
1,091
|
|
|
82
|
|
|
Equity contracts
|
10,464
|
|
|
(6,647
|
)
|
|
3,817
|
|
|
(319
|
)
|
|
3,498
|
|
|
81
|
|
|
Foreign exchange contracts
|
6,247
|
|
|
(4,866
|
)
|
|
1,381
|
|
|
(169
|
)
|
|
1,212
|
|
|
100
|
|
|
Credit contracts-protection sold
|
65
|
|
|
(60
|
)
|
|
5
|
|
|
(3
|
)
|
|
2
|
|
|
98
|
|
|
Credit contracts-protection purchased
|
18
|
|
|
(6
|
)
|
|
12
|
|
|
—
|
|
|
12
|
|
|
93
|
|
|
Total derivative liabilities
|
$
|
37,930
|
|
|
(28,851
|
)
|
|
9,079
|
|
|
(1,038
|
)
|
|
8,041
|
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
$
|
18,435
|
|
|
(12,029
|
)
|
|
6,406
|
|
|
(80
|
)
|
|
6,326
|
|
|
90
|
%
|
Commodity contracts
|
1,588
|
|
|
(849
|
)
|
|
739
|
|
|
(4
|
)
|
|
735
|
|
|
57
|
|
|
Equity contracts
|
7,545
|
|
|
(5,318
|
)
|
|
2,227
|
|
|
(755
|
)
|
|
1,472
|
|
|
78
|
|
|
Foreign exchange contracts
|
6,714
|
|
|
(5,355
|
)
|
|
1,359
|
|
|
(35
|
)
|
|
1,324
|
|
|
100
|
|
|
Credit contracts-protection sold
|
76
|
|
|
(73
|
)
|
|
3
|
|
|
—
|
|
|
3
|
|
|
12
|
|
|
Credit contracts-protection purchased
|
202
|
|
|
(166
|
)
|
|
36
|
|
|
(1
|
)
|
|
35
|
|
|
78
|
|
|
Total derivative assets
|
$
|
34,560
|
|
|
(23,790
|
)
|
|
10,770
|
|
|
(875
|
)
|
|
9,895
|
|
|
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest rate contracts
|
$
|
16,308
|
|
|
(13,152
|
)
|
|
3,156
|
|
|
(567
|
)
|
|
2,589
|
|
|
92
|
%
|
Commodity contracts
|
2,336
|
|
|
(727
|
)
|
|
1,609
|
|
|
(8
|
)
|
|
1,601
|
|
|
85
|
|
|
Equity contracts
|
6,010
|
|
|
(3,877
|
)
|
|
2,133
|
|
|
(110
|
)
|
|
2,023
|
|
|
75
|
|
|
Foreign exchange contracts
|
7,113
|
|
|
(5,522
|
)
|
|
1,591
|
|
|
(188
|
)
|
|
1,403
|
|
|
100
|
|
|
Credit contracts-protection sold
|
182
|
|
|
(180
|
)
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
67
|
|
|
Credit contracts-protection purchased
|
98
|
|
|
(90
|
)
|
|
8
|
|
|
—
|
|
|
8
|
|
|
11
|
|
|
Total derivative liabilities
|
$
|
32,047
|
|
|
(23,548
|
)
|
|
8,499
|
|
|
(875
|
)
|
|
7,624
|
|
|
|
(1)
|
Represents amounts with counterparties subject to enforceable master netting arrangements that have been offset in the consolidated balance sheet, including related cash collateral and portfolio level counterparty valuation adjustments. Counterparty valuation adjustments related to derivative assets were $231 million and $353 million and debit valuation adjustments related to derivative liabilities were $100 million and $152 million as of December 31, 2019 and 2018, respectively. Cash collateral totaled $2.9 billion and $6.8 billion, netted against derivative assets and liabilities, respectively, at December 31, 2019, and $3.7 billion and $3.6 billion, respectively, at December 31, 2018.
|
|
Wells Fargo & Company
|
199
|
|
Net interest income
|
|
|
Noninterest income
|
|
|
Total recorded in net income
|
|
|
Total recorded in OCI
|
|
|||||||
(in millions)
|
Debt securities
|
|
Mortgage loans held for sale
|
|
Deposits
|
|
Long-term debt
|
|
|
Other
|
|
|
Derivative gains (losses)
|
|
|
Derivative gains (losses)
|
|
|
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
14,955
|
|
813
|
|
(8,635
|
)
|
(7,350
|
)
|
|
3,181
|
|
|
N/A
|
|
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts related to interest settlements on derivatives
|
—
|
|
2
|
|
58
|
|
169
|
|
|
—
|
|
|
229
|
|
|
|
||
Recognized on derivatives
|
(2,082
|
)
|
1
|
|
463
|
|
5,001
|
|
|
—
|
|
|
3,383
|
|
|
—
|
|
|
Recognized on hedged items
|
2,096
|
|
(7
|
)
|
(442
|
)
|
(4,910
|
)
|
|
—
|
|
|
(3,263
|
)
|
|
|
||
Total gains (losses) (pre-tax) on interest rate contracts
|
14
|
|
(4
|
)
|
79
|
|
260
|
|
|
—
|
|
|
349
|
|
|
—
|
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts related to interest settlements on derivatives
|
35
|
|
—
|
|
—
|
|
(483
|
)
|
|
—
|
|
|
(448
|
)
|
|
|
||
Recognized on derivatives
|
(5
|
)
|
—
|
|
—
|
|
308
|
|
|
(358
|
)
|
|
(55
|
)
|
|
(3
|
)
|
|
Recognized on hedged items
|
6
|
|
—
|
|
—
|
|
(289
|
)
|
|
350
|
|
|
67
|
|
|
|
||
Total gains (losses) (pre-tax) on foreign exchange contracts
|
36
|
|
—
|
|
—
|
|
(464
|
)
|
|
(8
|
)
|
|
(436
|
)
|
|
(3
|
)
|
|
Total gains (losses) (pre-tax) recognized on fair value hedges
|
$
|
50
|
|
(4
|
)
|
79
|
|
(204
|
)
|
|
(8
|
)
|
|
(87
|
)
|
|
(3
|
)
|
200
|
Wells Fargo & Company
|
|
(continued from previous page)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net interest income
|
|
|
Noninterest income
|
|
|
Total recorded in net income
|
|
|
Total recorded in OCI
|
|
|||||||
(in millions)
|
Debt securities
|
|
Mortgage loans held for sale
|
|
Deposits
|
|
Long-term debt
|
|
|
Other
|
|
|
Derivative gains (losses)
|
|
|
Derivative gains (losses)
|
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
14,406
|
|
777
|
|
(5,622
|
)
|
(6,703
|
)
|
|
2,473
|
|
|
N/A
|
|
|
(238
|
)
|
Interest contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts related to interest settlements on derivatives
|
(187
|
)
|
(3
|
)
|
(41
|
)
|
292
|
|
|
—
|
|
|
61
|
|
|
|
||
Recognized on derivatives
|
845
|
|
15
|
|
27
|
|
(1,923
|
)
|
|
—
|
|
|
(1,035
|
)
|
|
—
|
|
|
Recognized on hedged items
|
(877
|
)
|
(22
|
)
|
(33
|
)
|
1,843
|
|
|
—
|
|
|
910
|
|
|
|
||
Total gains (losses) (pre-tax) on interest rate contracts
|
(219
|
)
|
(10
|
)
|
(47
|
)
|
212
|
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts related to interest settlements on derivatives
|
33
|
|
—
|
|
—
|
|
(434
|
)
|
|
—
|
|
|
(401
|
)
|
|
|
||
Recognized on derivatives
|
7
|
|
—
|
|
—
|
|
135
|
|
|
(1,204
|
)
|
|
(1,062
|
)
|
|
(254
|
)
|
|
Recognized on hedged items
|
(1
|
)
|
—
|
|
—
|
|
(82
|
)
|
|
1,114
|
|
|
1,031
|
|
|
|
||
Total gains (losses) (pre-tax) on foreign exchange contracts
|
39
|
|
—
|
|
—
|
|
(381
|
)
|
|
(90
|
)
|
|
(432
|
)
|
|
(254
|
)
|
|
Total gains (losses) (pre-tax) recognized on fair value hedges
|
$
|
(180
|
)
|
(10
|
)
|
(47
|
)
|
(169
|
)
|
|
(90
|
)
|
|
(496
|
)
|
|
(254
|
)
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
12,946
|
|
786
|
|
(3,013
|
)
|
(5,157
|
)
|
|
1,603
|
|
|
N/A
|
|
|
(1,083
|
)
|
Interest contracts
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amounts related to interest settlements on derivatives
|
(469
|
)
|
(5
|
)
|
36
|
|
1,286
|
|
|
—
|
|
|
847
|
|
|
|
||
Recognized on derivatives
|
(43
|
)
|
(5
|
)
|
(20
|
)
|
(912
|
)
|
|
—
|
|
|
(979
|
)
|
|
—
|
|
|
Recognized on hedged items
|
(52
|
)
|
(4
|
)
|
36
|
|
938
|
|
|
—
|
|
|
917
|
|
|
|
||
Total gains (losses) (pre-tax) on interest rate contracts
|
(564
|
)
|
(14
|
)
|
52
|
|
1,312
|
|
|
—
|
|
|
785
|
|
|
—
|
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amounts related to interest settlements on derivatives
|
14
|
|
—
|
|
—
|
|
(210
|
)
|
|
—
|
|
|
(196
|
)
|
|
|
||
Recognized on derivatives
|
13
|
|
—
|
|
—
|
|
(230
|
)
|
|
3,118
|
|
|
2,901
|
|
|
(253
|
)
|
|
Recognized on hedged items
|
(10
|
)
|
—
|
|
—
|
|
255
|
|
|
(2,855
|
)
|
|
(2,610
|
)
|
|
|
||
Total gains (losses) (pre-tax) on foreign exchange contracts
|
17
|
|
—
|
|
—
|
|
(185
|
)
|
|
263
|
|
|
95
|
|
|
(253
|
)
|
|
Total gains (losses) (pre-tax) recognized on fair value hedges
|
$
|
(547
|
)
|
(14
|
)
|
52
|
|
1,127
|
|
|
263
|
|
|
880
|
|
|
(253
|
)
|
|
Wells Fargo & Company
|
201
|
|
Net interest income
|
|
|
Total recorded in net income
|
|
Total recorded in OCI
|
|
|||
(in millions)
|
Loans
|
|
Long-term debt
|
|
|
Derivative gains (losses)
|
|
Derivative gains (losses)
|
|
|
Year Ended December 31, 2019
|
|
|
|
|
|
|||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
44,146
|
|
(7,350
|
)
|
|
N/A
|
|
275
|
|
Interest rate contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
(291
|
)
|
1
|
|
|
(290
|
)
|
290
|
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
—
|
|
|
Total gains (losses) (pre-tax) on interest rate contracts
|
(291
|
)
|
1
|
|
|
(290
|
)
|
290
|
|
|
Foreign exchange contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
—
|
|
(9
|
)
|
|
(9
|
)
|
9
|
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
(21
|
)
|
|
Total gains (losses) (pre-tax) on foreign exchange contracts
|
—
|
|
(9
|
)
|
|
(9
|
)
|
(12
|
)
|
|
Total gains (losses) (pre-tax) recognized on cash flow hedges
|
$
|
(291
|
)
|
(8
|
)
|
|
(299
|
)
|
278
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
43,974
|
|
(6,703
|
)
|
|
N/A
|
|
(238
|
)
|
Interest rate contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
(292
|
)
|
1
|
|
|
(291
|
)
|
291
|
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
(266
|
)
|
|
Total gains (losses) (pre-tax) on interest rate contracts
|
(292
|
)
|
1
|
|
|
(291
|
)
|
25
|
|
|
Foreign exchange contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
—
|
|
(3
|
)
|
|
(3
|
)
|
3
|
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
(12
|
)
|
|
Total gains (losses) (pre-tax) on foreign exchange contracts
|
—
|
|
(3
|
)
|
|
(3
|
)
|
(9
|
)
|
|
Total gains (losses) (pre-tax) recognized on cash flow hedges
|
$
|
(292
|
)
|
(2
|
)
|
|
(294
|
)
|
16
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|||||
Total amounts presented in the consolidated statement of income and other comprehensive income
|
$
|
41,388
|
|
(5,157
|
)
|
|
N/A
|
|
(1,083
|
)
|
Interest rate contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
551
|
|
(8
|
)
|
|
543
|
|
(543
|
)
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
(287
|
)
|
|
Total gains (losses) (pre-tax) on interest rate contracts
|
551
|
|
(8
|
)
|
|
543
|
|
(830
|
)
|
|
Foreign exchange contracts:
|
|
|
|
|
|
|||||
Realized gains (losses) (pre-tax) reclassified from OCI into net income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Net unrealized gains (losses) (pre-tax) recognized in OCI
|
N/A
|
|
N/A
|
|
|
N/A
|
|
—
|
|
|
Total gains (losses) (pre-tax) on foreign exchange contracts
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Total gains (losses) (pre-tax) recognized on cash flow hedges
|
$
|
551
|
|
(8
|
)
|
|
543
|
|
(830
|
)
|
202
|
Wells Fargo & Company
|
|
|
Hedged Items Currently Designated
|
|
|
Hedged Items No Longer Designated (1)
|
|
|||||
(in millions)
|
Carrying Amount of Assets/(Liabilities) (2)(4)
|
|
Hedge Accounting
Basis Adjustment
Assets/(Liabilities) (3)
|
|
|
Carrying Amount of Assets/(Liabilities) (4)
|
|
Hedge Accounting Basis Adjustment
Assets/(Liabilities) |
|
|
December 31, 2019
|
|
|
|
|
|
|||||
Available-for-sale debt securities (5)
|
$
|
36,896
|
|
1,110
|
|
|
9,486
|
|
278
|
|
Mortgage loans held for sale
|
961
|
|
(12
|
)
|
|
—
|
|
—
|
|
|
Deposits
|
(43,716
|
)
|
(324
|
)
|
|
—
|
|
—
|
|
|
Long-term debt
|
(127,423
|
)
|
(5,827
|
)
|
|
(25,750
|
)
|
173
|
|
|
December 31, 2018
|
|
|
|
|
|
|||||
Available-for-sale debt securities (5)
|
$
|
37,857
|
|
(157
|
)
|
|
4,938
|
|
238
|
|
Mortgage loans held for sale
|
448
|
|
7
|
|
|
—
|
|
—
|
|
|
Deposits
|
(56,535
|
)
|
115
|
|
|
—
|
|
—
|
|
|
Long-term debt
|
(104,341
|
)
|
(742
|
)
|
|
(25,539
|
)
|
366
|
|
(1)
|
Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.
|
(2)
|
Does not include the carrying amount of hedged items where only foreign currency risk is the designated hedged risk. The carrying amount excluded for debt securities is $1.2 billion and for long-term debt is $(5.2) billion as of December 31, 2019, and $1.6 billion for debt securities and $(6.3) billion for long-term debt as of December 31, 2018.
|
(3)
|
The balance includes $790 million and $109 million of debt securities and long-term debt cumulative basis adjustments as of December 31, 2019, respectively, and $1.4 billion and $66 million of debt securities and long-term debt cumulative basis adjustments as of December 31, 2018, respectively, on terminated hedges whereby the hedged items have subsequently been re-designated into existing hedges.
|
(4)
|
Represents the full carrying amount of the hedged asset or liability item as of the balance sheet date, except for circumstances in which only a portion of the asset or liability was designated as the hedged item in which case only the portion designated is presented.
|
(5)
|
Carrying amount represents the amortized cost.
|
|
Wells Fargo & Company
|
203
|
|
Noninterest income
|
|
|||||||||
(in millions)
|
Mortgage banking
|
|
Net gains (losses) from equity securities
|
|
Net gains (losses) from trading activities
|
|
Other
|
|
Total
|
|
|
Year ended December 31, 2019
|
|
|
|
|
|
||||||
Net gains (losses) recognized on economic hedges derivatives:
|
|
|
|
|
|
||||||
Interest contracts (1)
|
$
|
2,177
|
|
—
|
|
—
|
|
1
|
|
2,178
|
|
Equity contracts
|
—
|
|
(2,120
|
)
|
—
|
|
(2
|
)
|
(2,122
|
)
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
—
|
|
(77
|
)
|
(77
|
)
|
|
Credit contracts
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
(5
|
)
|
|
Subtotal
|
2,177
|
|
(2,120
|
)
|
—
|
|
(83
|
)
|
(26
|
)
|
|
Net gains (losses) recognized on customer accommodation trading and other derivatives:
|
|
|
|
|
|
||||||
Interest contracts
|
418
|
|
—
|
|
(95
|
)
|
—
|
|
323
|
|
|
Commodity contracts
|
—
|
|
—
|
|
164
|
|
—
|
|
164
|
|
|
Equity contracts
|
—
|
|
—
|
|
(4,863
|
)
|
(484
|
)
|
(5,347
|
)
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
47
|
|
—
|
|
47
|
|
|
Credit contracts
|
—
|
|
—
|
|
(120
|
)
|
—
|
|
(120
|
)
|
|
Subtotal
|
418
|
|
—
|
|
(4,867
|
)
|
(484
|
)
|
(4,933
|
)
|
|
Net gains (losses) recognized related to derivatives not designated as hedging instruments
|
$
|
2,595
|
|
(2,120
|
)
|
(4,867
|
)
|
(567
|
)
|
(4,959
|
)
|
204
|
Wells Fargo & Company
|
|
(continued from previous page)
|
|
||||||||||
|
Noninterest income
|
|
|||||||||
(in millions)
|
Mortgage banking
|
|
Net gains (losses) from equity securities
|
|
Net gains (losses) from trading activities
|
|
Other
|
|
Total
|
|
|
Year ended December 31, 2018
|
|
|
|
|
|
||||||
Net gains (losses) recognized on economic hedges derivatives:
|
|
|
|
|
|
||||||
Interest contracts (1)
|
$
|
(215
|
)
|
—
|
|
—
|
|
(15
|
)
|
(230
|
)
|
Equity contracts
|
—
|
|
(408
|
)
|
—
|
|
4
|
|
(404
|
)
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
—
|
|
669
|
|
669
|
|
|
Credit contracts
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Subtotal
|
(215
|
)
|
(408
|
)
|
—
|
|
658
|
|
35
|
|
|
Net gains (losses) recognized on customer accommodation trading and other derivatives:
|
|
|
|
|
|
||||||
Interest contracts
|
(352
|
)
|
—
|
|
446
|
|
—
|
|
94
|
|
|
Commodity contracts
|
—
|
|
—
|
|
83
|
|
—
|
|
83
|
|
|
Equity contracts
|
—
|
|
—
|
|
4,499
|
|
(403
|
)
|
4,096
|
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
638
|
|
—
|
|
638
|
|
|
Credit contracts
|
—
|
|
—
|
|
1
|
|
—
|
|
1
|
|
|
Subtotal
|
(352
|
)
|
—
|
|
5,667
|
|
(403
|
)
|
4,912
|
|
|
Net gains (losses) recognized related to derivatives not designated as hedging instruments
|
$
|
(567
|
)
|
(408
|
)
|
5,667
|
|
255
|
|
4,947
|
|
Year ended December 31, 2017
|
|
|
|
|
|
||||||
Net gains (losses) recognized on economic hedges derivatives:
|
|
|
|
|
|
||||||
Interest contracts (1)
|
$
|
448
|
|
—
|
|
—
|
|
(75
|
)
|
373
|
|
Equity contracts
|
—
|
|
(1,483
|
)
|
—
|
|
17
|
|
(1,466
|
)
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
—
|
|
(866
|
)
|
(866
|
)
|
|
Credit contracts
|
—
|
|
—
|
|
—
|
|
5
|
|
5
|
|
|
Subtotal
|
448
|
|
(1,483
|
)
|
—
|
|
(919
|
)
|
(1,954
|
)
|
|
Net gains (losses) recognized on customer accommodation trading and other derivatives:
|
|
|
|
|
|
||||||
Interest contracts
|
614
|
|
—
|
|
160
|
|
—
|
|
774
|
|
|
Commodity contracts
|
—
|
|
—
|
|
178
|
|
—
|
|
178
|
|
|
Equity contracts
|
—
|
|
—
|
|
(3,932
|
)
|
1
|
|
(3,931
|
)
|
|
Foreign exchange contracts
|
—
|
|
—
|
|
638
|
|
—
|
|
638
|
|
|
Credit contracts
|
—
|
|
—
|
|
(81
|
)
|
—
|
|
(81
|
)
|
|
Subtotal
|
614
|
|
—
|
|
(3,037
|
)
|
1
|
|
(2,422
|
)
|
|
Net gains (losses) recognized related to derivatives not designated as hedging instruments
|
$
|
1,062
|
|
(1,483
|
)
|
(3,037
|
)
|
(918
|
)
|
(4,376
|
)
|
(1)
|
Mortgage banking amounts for the years ended December 31, 2019, 2018 and 2017, are comprised of gains (losses) of $2.3 billion, $(1.1) billion and $413 million, respectively, related to derivatives used as economic hedges of MSRs measured at fair value offset by gains (losses) of $(141) million, $857 million and $35 million, respectively, related to derivatives used as economic hedges of mortgage loans held for sale and derivative loan commitments.
|
|
Wells Fargo & Company
|
205
|
|
|
|
|
|
Notional amount
|
|
|
|
|||||||||||||||
(in millions)
|
Fair value asset
|
|
|
Fair value liability
|
|
|
Protection sold (A)
|
|
|
Protection sold - non-investment grade
|
|
|
Protection purchased with identical underlyings (B)
|
|
|
Net protection sold (A)-(B)
|
|
|
Other protection purchased
|
|
|
Range of maturities
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit default swaps on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
8
|
|
|
1
|
|
|
2,855
|
|
|
707
|
|
|
1,885
|
|
|
970
|
|
|
2,447
|
|
|
2020 - 2029
|
Structured products
|
—
|
|
|
25
|
|
|
74
|
|
|
69
|
|
|
63
|
|
|
11
|
|
|
111
|
|
|
2022 - 2047
|
|
Credit protection on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Default swap index
|
1
|
|
|
—
|
|
|
2,542
|
|
|
120
|
|
|
550
|
|
|
1,992
|
|
|
8,105
|
|
|
2020 - 2029
|
|
Commercial mortgage-backed securities index
|
3
|
|
|
26
|
|
|
322
|
|
|
67
|
|
|
296
|
|
|
26
|
|
|
50
|
|
|
2047 - 2058
|
|
Asset-backed securities index
|
—
|
|
|
8
|
|
|
41
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
1
|
|
|
2045 - 2046
|
|
Other
|
—
|
|
|
5
|
|
|
6,381
|
|
|
5,738
|
|
|
—
|
|
|
6,381
|
|
|
11,881
|
|
|
2020 - 2049
|
|
Total credit derivatives
|
$
|
12
|
|
|
65
|
|
|
12,215
|
|
|
6,742
|
|
|
2,835
|
|
|
9,380
|
|
|
22,595
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit default swaps on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate bonds
|
$
|
38
|
|
|
59
|
|
|
2,037
|
|
|
441
|
|
|
1,374
|
|
|
663
|
|
|
1,460
|
|
|
2019 - 2027
|
Structured products
|
—
|
|
|
62
|
|
|
133
|
|
|
128
|
|
|
121
|
|
|
12
|
|
|
113
|
|
|
2022 - 2047
|
|
Credit protection on:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Default swap index
|
37
|
|
|
1
|
|
|
3,618
|
|
|
582
|
|
|
1,998
|
|
|
1,620
|
|
|
2,896
|
|
|
2019 - 2028
|
|
Commercial mortgage-backed securities index
|
1
|
|
|
49
|
|
|
389
|
|
|
109
|
|
|
363
|
|
|
26
|
|
|
51
|
|
|
2047 - 2058
|
|
Asset-backed securities index
|
—
|
|
|
9
|
|
|
42
|
|
|
42
|
|
|
42
|
|
|
—
|
|
|
1
|
|
|
2045 - 2046
|
|
Other
|
—
|
|
|
2
|
|
|
5,522
|
|
|
5,327
|
|
|
—
|
|
|
5,522
|
|
|
12,561
|
|
|
2018 - 2048
|
|
Total credit derivatives
|
$
|
76
|
|
|
182
|
|
|
11,741
|
|
|
6,629
|
|
|
3,898
|
|
|
7,843
|
|
|
17,082
|
|
|
|
|
Dec 31,
|
|
Dec 31,
|
|
|
(in billions)
|
2019
|
|
2018
|
|
|
Net derivative liabilities with credit-risk contingent features
|
$
|
10.4
|
|
7.4
|
|
Collateral posted
|
9.1
|
|
5.6
|
|
|
Additional collateral to be posted upon a below investment grade credit rating (1)
|
1.3
|
|
1.8
|
|
(1)
|
Any credit rating below investment grade requires us to post the maximum amount of collateral
|
206
|
Wells Fargo & Company
|
|
Note 19: Fair Values of Assets and Liabilities
|
|
Wells Fargo & Company
|
207
|
208
|
Wells Fargo & Company
|
|
•
|
ongoing analysis and benchmarking to market transactions and other independent market data (including pricing vendors, if available);
|
•
|
back-testing of modeled fair values to actual realized transactions; and
|
•
|
review of modeled valuation results against expectations, including review of significant or unusual fluctuations in value.
|
•
|
comparison to other pricing vendors (if available);
|
•
|
variance analysis of prices;
|
•
|
corroboration of pricing by reference to other independent market data, such as market transactions and relevant benchmark indices;
|
•
|
review of pricing by Company personnel familiar with market liquidity and other market-related conditions; and
|
•
|
investigation of prices on a specific instrument-by-instrument basis.
|
|
Wells Fargo & Company
|
209
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Trading debt securities
|
$
|
634
|
|
|
329
|
|
|
—
|
|
|
899
|
|
|
256
|
|
|
—
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Securities of U.S. Treasury and federal agencies
|
13,460
|
|
|
1,500
|
|
|
—
|
|
|
10,399
|
|
|
2,949
|
|
|
—
|
|
|
Securities of U.S. states and political subdivisions
|
—
|
|
|
39,868
|
|
|
34
|
|
|
—
|
|
|
48,377
|
|
|
43
|
|
|
Mortgage-backed securities
|
—
|
|
|
167,172
|
|
|
42
|
|
|
—
|
|
|
160,162
|
|
|
41
|
|
|
Other debt securities (1)
|
—
|
|
|
38,067
|
|
|
650
|
|
|
—
|
|
|
44,292
|
|
|
758
|
|
|
Total available-for-sale debt securities
|
13,460
|
|
|
246,607
|
|
|
726
|
|
|
10,399
|
|
|
255,780
|
|
|
842
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Marketable
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|
—
|
|
|
Nonmarketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
Total equity securities
|
—
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
159
|
|
|
—
|
|
|
Derivative assets
|
12
|
|
|
1
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
Derivative liabilities
|
(11
|
)
|
|
(3
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
(1)
|
Includes corporate debt securities, collateralized loan and other debt obligations, asset-backed securities, and other debt securities.
|
210
|
Wells Fargo & Company
|
|
(in millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Netting (1)
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
$
|
32,335
|
|
|
4,382
|
|
|
—
|
|
|
—
|
|
|
36,717
|
|
Securities of U.S. states and political subdivisions
|
—
|
|
|
2,434
|
|
|
—
|
|
|
—
|
|
|
2,434
|
|
|
Collateralized loan obligations
|
—
|
|
|
555
|
|
|
183
|
|
|
—
|
|
|
738
|
|
|
Corporate debt securities
|
—
|
|
|
11,006
|
|
|
38
|
|
|
—
|
|
|
11,044
|
|
|
Mortgage-backed securities
|
—
|
|
|
27,712
|
|
|
—
|
|
|
—
|
|
|
27,712
|
|
|
Asset-backed securities
|
—
|
|
|
1,081
|
|
|
—
|
|
|
—
|
|
|
1,081
|
|
|
Other trading debt securities
|
—
|
|
|
5
|
|
|
2
|
|
|
—
|
|
|
7
|
|
|
Total trading debt securities
|
32,335
|
|
|
47,175
|
|
|
223
|
|
|
—
|
|
|
79,733
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
13,460
|
|
|
1,500
|
|
|
—
|
|
|
—
|
|
|
14,960
|
|
|
Securities of U.S. states and political subdivisions
|
—
|
|
|
39,924
|
|
|
413
|
|
|
—
|
|
|
40,337
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Federal agencies
|
—
|
|
|
162,453
|
|
|
—
|
|
|
—
|
|
|
162,453
|
|
|
Residential
|
—
|
|
|
827
|
|
|
—
|
|
|
—
|
|
|
827
|
|
|
Commercial
|
—
|
|
|
3,892
|
|
|
42
|
|
|
—
|
|
|
3,934
|
|
|
Total mortgage-backed securities
|
—
|
|
|
167,172
|
|
|
42
|
|
|
—
|
|
|
167,214
|
|
|
Corporate debt securities
|
37
|
|
|
6,159
|
|
|
367
|
|
|
—
|
|
|
6,563
|
|
|
Collateralized loan and other debt obligations
|
—
|
|
|
29,055
|
|
|
640
|
|
|
—
|
|
|
29,695
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile loans and leases
|
—
|
|
|
951
|
|
|
—
|
|
|
—
|
|
|
951
|
|
|
Home equity loans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other asset-backed securities
|
—
|
|
|
3,635
|
|
|
103
|
|
|
—
|
|
|
3,738
|
|
|
Total asset-backed securities
|
—
|
|
|
4,586
|
|
|
103
|
|
|
—
|
|
|
4,689
|
|
|
Other debt securities
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Total available-for-sale debt securities
|
13,497
|
|
|
248,397
|
|
|
1,565
|
|
(2)
|
—
|
|
|
263,459
|
|
|
Mortgage loans held for sale
|
—
|
|
|
15,408
|
|
|
1,198
|
|
|
—
|
|
|
16,606
|
|
|
Loans held for sale
|
—
|
|
|
956
|
|
|
16
|
|
|
—
|
|
|
972
|
|
|
Loans
|
—
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
171
|
|
|
Mortgage servicing rights (residential)
|
—
|
|
|
—
|
|
|
11,517
|
|
|
—
|
|
|
11,517
|
|
|
Derivative assets:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
26
|
|
|
23,792
|
|
|
229
|
|
|
—
|
|
|
24,047
|
|
|
Commodity contracts
|
—
|
|
|
1,413
|
|
|
8
|
|
|
—
|
|
|
1,421
|
|
|
Equity contracts
|
2,946
|
|
|
4,135
|
|
|
1,455
|
|
|
—
|
|
|
8,536
|
|
|
Foreign exchange contracts
|
12
|
|
|
5,197
|
|
|
5
|
|
|
—
|
|
|
5,214
|
|
|
Credit contracts
|
—
|
|
|
49
|
|
|
59
|
|
|
—
|
|
|
108
|
|
|
Netting
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,123
|
)
|
|
(25,123
|
)
|
|
Total derivative assets
|
2,984
|
|
|
34,586
|
|
|
1,756
|
|
|
(25,123
|
)
|
|
14,203
|
|
|
Equity securities - excluding securities at NAV:
|
|
|
|
|
|
|
|
|
|
||||||
Marketable
|
33,702
|
|
|
216
|
|
|
3
|
|
|
—
|
|
|
33,921
|
|
|
Nonmarketable
|
—
|
|
|
22
|
|
|
7,847
|
|
|
—
|
|
|
7,869
|
|
|
Total equity securities
|
33,702
|
|
|
238
|
|
|
7,850
|
|
|
—
|
|
|
41,790
|
|
|
Total assets included in the fair value hierarchy
|
$
|
82,518
|
|
|
346,760
|
|
|
24,296
|
|
|
(25,123
|
)
|
|
428,451
|
|
Equity securities at NAV (3)
|
|
|
|
|
|
|
|
|
146
|
|
|||||
Total assets recorded at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
428,597
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
$
|
(23
|
)
|
|
(19,328
|
)
|
|
(15
|
)
|
|
—
|
|
|
(19,366
|
)
|
Commodity contracts
|
—
|
|
|
(1,746
|
)
|
|
(24
|
)
|
|
—
|
|
|
(1,770
|
)
|
|
Equity contracts
|
(2,011
|
)
|
|
(6,729
|
)
|
|
(1,724
|
)
|
|
—
|
|
|
(10,464
|
)
|
|
Foreign exchange contracts
|
(11
|
)
|
|
(6,213
|
)
|
|
(23
|
)
|
|
—
|
|
|
(6,247
|
)
|
|
Credit contracts
|
—
|
|
|
(53
|
)
|
|
(30
|
)
|
|
—
|
|
|
(83
|
)
|
|
Netting
|
—
|
|
|
—
|
|
|
—
|
|
|
28,851
|
|
|
28,851
|
|
|
Total derivative liabilities
|
(2,045
|
)
|
|
(34,069
|
)
|
|
(1,816
|
)
|
|
28,851
|
|
|
(9,079
|
)
|
|
Short sale liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
(9,035
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(9,066
|
)
|
|
Mortgage-backed securities
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
Corporate debt securities
|
—
|
|
|
(5,915
|
)
|
|
—
|
|
|
—
|
|
|
(5,915
|
)
|
|
Equity securities
|
(2,447
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,447
|
)
|
|
Other securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total short sale liabilities
|
(11,482
|
)
|
|
(5,948
|
)
|
|
—
|
|
|
—
|
|
|
(17,430
|
)
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
Total liabilities recorded at fair value
|
$
|
(13,527
|
)
|
|
(40,017
|
)
|
|
(1,818
|
)
|
|
28,851
|
|
|
(26,511
|
)
|
(1)
|
Represents balance sheet netting of derivative asset and liability balances, related cash collateral and portfolio level counterparty valuation adjustments. See Note 18 (Derivatives) for additional information.
|
(2)
|
A significant portion of the balance consists of securities that are investment grade based on ratings received from the ratings agencies or internal credit grades categorized as investment grade if external ratings are not available. The securities are classified as Level 3 due to limited market activity.
|
(3)
|
Consists of certain nonmarketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
|
|
Wells Fargo & Company
|
211
|
(in millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Netting (1)
|
|
|
Total
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
$
|
20,525
|
|
|
2,892
|
|
|
—
|
|
|
—
|
|
|
23,417
|
|
Securities of U.S. states and political subdivisions
|
—
|
|
|
3,272
|
|
|
3
|
|
|
—
|
|
|
3,275
|
|
|
Collateralized loan obligations
|
—
|
|
|
673
|
|
|
237
|
|
|
—
|
|
|
910
|
|
|
Corporate debt securities
|
—
|
|
|
10,723
|
|
|
34
|
|
|
—
|
|
|
10,757
|
|
|
Mortgage-backed securities
|
—
|
|
|
30,715
|
|
|
—
|
|
|
—
|
|
|
30,715
|
|
|
Asset-backed securities
|
—
|
|
|
893
|
|
|
—
|
|
|
—
|
|
|
893
|
|
|
Other trading debt securities
|
—
|
|
|
6
|
|
|
16
|
|
|
—
|
|
|
22
|
|
|
Total trading debt securities
|
20,525
|
|
|
49,174
|
|
|
290
|
|
|
—
|
|
|
69,989
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
10,399
|
|
|
2,949
|
|
|
—
|
|
|
—
|
|
|
13,348
|
|
|
Securities of U.S. states and political subdivisions
|
—
|
|
|
48,820
|
|
|
444
|
|
|
—
|
|
|
49,264
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Federal agencies
|
—
|
|
|
153,203
|
|
|
—
|
|
|
—
|
|
|
153,203
|
|
|
Residential
|
—
|
|
|
2,775
|
|
|
—
|
|
|
—
|
|
|
2,775
|
|
|
Commercial
|
—
|
|
|
4,184
|
|
|
41
|
|
|
—
|
|
|
4,225
|
|
|
Total mortgage-backed securities
|
—
|
|
|
160,162
|
|
|
41
|
|
|
—
|
|
|
160,203
|
|
|
Corporate debt securities
|
34
|
|
|
5,867
|
|
|
370
|
|
|
—
|
|
|
6,271
|
|
|
Collateralized loan and other debt obligations
|
—
|
|
|
34,543
|
|
|
800
|
|
|
—
|
|
|
35,343
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Automobile loans and leases
|
—
|
|
|
925
|
|
|
—
|
|
|
—
|
|
|
925
|
|
|
Home equity loans
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
112
|
|
|
Other asset-backed securities
|
—
|
|
|
4,056
|
|
|
389
|
|
|
—
|
|
|
4,445
|
|
|
Total asset-backed securities
|
—
|
|
|
5,093
|
|
|
389
|
|
|
—
|
|
|
5,482
|
|
|
Other debt securities
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Total available-for-sale debt securities
|
10,433
|
|
|
257,435
|
|
|
2,044
|
|
(2)
|
—
|
|
|
269,912
|
|
|
Mortgage loans held for sale
|
—
|
|
|
10,774
|
|
|
997
|
|
|
—
|
|
|
11,771
|
|
|
Loans held for sale
|
—
|
|
|
1,409
|
|
|
60
|
|
|
—
|
|
|
1,469
|
|
|
Loans
|
—
|
|
|
—
|
|
|
244
|
|
|
—
|
|
|
244
|
|
|
Mortgage servicing rights (residential)
|
—
|
|
|
—
|
|
|
14,649
|
|
|
—
|
|
|
14,649
|
|
|
Derivative assets:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
46
|
|
|
18,294
|
|
|
95
|
|
|
—
|
|
|
18,435
|
|
|
Commodity contracts
|
—
|
|
|
1,535
|
|
|
53
|
|
|
—
|
|
|
1,588
|
|
|
Equity contracts
|
1,648
|
|
|
4,582
|
|
|
1,315
|
|
|
—
|
|
|
7,545
|
|
|
Foreign exchange contracts
|
17
|
|
|
6,689
|
|
|
8
|
|
|
—
|
|
|
6,714
|
|
|
Credit contracts
|
—
|
|
|
179
|
|
|
99
|
|
|
—
|
|
|
278
|
|
|
Netting
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,790
|
)
|
|
(23,790
|
)
|
|
Total derivative assets
|
1,711
|
|
|
31,279
|
|
|
1,570
|
|
|
(23,790
|
)
|
|
10,770
|
|
|
Equity securities - excluding securities at NAV:
|
|
|
|
|
|
|
|
|
|
||||||
Marketable
|
23,205
|
|
|
757
|
|
|
—
|
|
|
—
|
|
|
23,962
|
|
|
Nonmarketable
|
—
|
|
|
24
|
|
|
5,468
|
|
|
—
|
|
|
5,492
|
|
|
Total equity securities
|
23,205
|
|
|
781
|
|
|
5,468
|
|
|
—
|
|
|
29,454
|
|
|
Total assets included in the fair value hierarchy
|
$
|
55,874
|
|
|
350,852
|
|
|
25,322
|
|
|
(23,790
|
)
|
|
408,258
|
|
Equity securities at NAV (3)
|
|
|
|
|
|
|
|
|
102
|
|
|||||
Total assets recorded at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
408,360
|
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
$
|
(21
|
)
|
|
(16,217
|
)
|
|
(70
|
)
|
|
—
|
|
|
(16,308
|
)
|
Commodity contracts
|
—
|
|
|
(2,287
|
)
|
|
(49
|
)
|
|
—
|
|
|
(2,336
|
)
|
|
Equity contracts
|
(1,492
|
)
|
|
(3,186
|
)
|
|
(1,332
|
)
|
|
—
|
|
|
(6,010
|
)
|
|
Foreign exchange contracts
|
(12
|
)
|
|
(7,067
|
)
|
|
(34
|
)
|
|
—
|
|
|
(7,113
|
)
|
|
Credit contracts
|
—
|
|
|
(216
|
)
|
|
(64
|
)
|
|
—
|
|
|
(280
|
)
|
|
Netting
|
—
|
|
|
—
|
|
|
—
|
|
|
23,548
|
|
|
23,548
|
|
|
Total derivative liabilities
|
(1,525
|
)
|
|
(28,973
|
)
|
|
(1,549
|
)
|
|
23,548
|
|
|
(8,499
|
)
|
|
Short sale liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. Treasury and federal agencies
|
(11,850
|
)
|
|
(411
|
)
|
|
—
|
|
|
—
|
|
|
(12,261
|
)
|
|
Mortgage-backed securities
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
Corporate debt securities
|
—
|
|
|
(4,505
|
)
|
|
—
|
|
|
—
|
|
|
(4,505
|
)
|
|
Equity securities
|
(2,902
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2,904
|
)
|
|
Other securities
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
Total short sale liabilities
|
(14,752
|
)
|
|
(4,968
|
)
|
|
—
|
|
|
—
|
|
|
(19,720
|
)
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
Total liabilities recorded at fair value
|
$
|
(16,277
|
)
|
|
(33,941
|
)
|
|
(1,551
|
)
|
|
23,548
|
|
|
(28,221
|
)
|
(1)
|
Represents balance sheet netting of derivative asset and liability balances, related cash collateral and portfolio level counterparty valuation adjustments. See Note 18 (Derivatives) for additional information.
|
(2)
|
A significant portion of the balance consists of securities that are investment grade based on ratings received from the ratings agencies or internal credit grades categorized as investment grade if external ratings are not available. The securities are classified as Level 3 due to limited market activity.
|
(3)
|
Consists of certain nonmarketable equity investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
|
212
|
Wells Fargo & Company
|
|
|
|
|
Total net gains
(losses) included in
|
|
|
Purchases,
sales,
issuances
and
settlements,
net (1)
|
|
|
|
|
|
|
|
|
Net unrealized
gains (losses)
included in
income related
to assets and
liabilities held
at period end
|
|
|
||||||||
(in millions)
|
Balance,
beginning
of period
|
|
|
Net
income
|
|
|
Other
compre-
hensive
income
|
|
|
|
Transfers
into
Level 3 (2)
|
|
|
Transfers
out of
Level 3 (3)
|
|
|
Balance,
end of
period
|
|
|
(4)
|
|||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
$
|
3
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
Collateralized loan obligations
|
237
|
|
|
(30
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(2
|
)
|
|
183
|
|
|
(35
|
)
|
|
|
Corporate debt securities
|
34
|
|
|
3
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
(6
|
)
|
|
38
|
|
|
5
|
|
|
|
Other trading debt securities
|
16
|
|
|
(4
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
|
Total trading debt securities
|
290
|
|
|
(31
|
)
|
|
—
|
|
|
(28
|
)
|
|
1
|
|
|
(9
|
)
|
|
223
|
|
|
(31
|
)
|
(5)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
444
|
|
|
2
|
|
|
2
|
|
|
14
|
|
|
—
|
|
|
(49
|
)
|
|
413
|
|
|
—
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Commercial
|
41
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
6
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
|
Total mortgage-backed securities
|
41
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
6
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
|
Corporate debt securities
|
370
|
|
|
3
|
|
|
(5
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
367
|
|
|
(4
|
)
|
|
|
Collateralized loan and other
debt obligations
|
800
|
|
|
29
|
|
|
(37
|
)
|
|
(152
|
)
|
|
—
|
|
|
—
|
|
|
640
|
|
|
—
|
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other asset-backed securities
|
389
|
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
|
(153
|
)
|
|
103
|
|
|
—
|
|
|
|
Total asset-backed securities
|
389
|
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
|
(153
|
)
|
|
103
|
|
|
—
|
|
|
|
Total available-for-sale debt securities
|
2,044
|
|
|
34
|
|
|
(40
|
)
|
|
(277
|
)
|
|
6
|
|
|
(202
|
)
|
|
1,565
|
|
|
(4
|
)
|
(6)
|
|
Mortgage loans held for sale
|
997
|
|
|
58
|
|
|
—
|
|
|
(140
|
)
|
|
299
|
|
|
(16
|
)
|
|
1,198
|
|
|
54
|
|
(7)
|
|
Loans held for sale
|
60
|
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
55
|
|
|
(93
|
)
|
|
16
|
|
|
(3
|
)
|
|
|
Loans
|
244
|
|
|
—
|
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
—
|
|
|
171
|
|
|
(8
|
)
|
(7)
|
|
Mortgage servicing rights (residential) (8)
|
14,649
|
|
|
(4,779
|
)
|
|
—
|
|
|
1,647
|
|
|
—
|
|
|
—
|
|
|
11,517
|
|
|
(2,569
|
)
|
(7)
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
25
|
|
|
585
|
|
|
—
|
|
|
(396
|
)
|
|
—
|
|
|
—
|
|
|
214
|
|
|
249
|
|
|
|
Commodity contracts
|
4
|
|
|
(203
|
)
|
|
—
|
|
|
158
|
|
|
2
|
|
|
23
|
|
|
(16
|
)
|
|
9
|
|
|
|
Equity contracts
|
(17
|
)
|
|
(571
|
)
|
|
—
|
|
|
292
|
|
|
6
|
|
|
21
|
|
|
(269
|
)
|
|
(186
|
)
|
|
|
Foreign exchange contracts
|
(26
|
)
|
|
34
|
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
9
|
|
|
|
Credit contracts
|
35
|
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
(6
|
)
|
|
|
Total derivative contracts
|
21
|
|
|
(162
|
)
|
|
—
|
|
|
29
|
|
|
8
|
|
|
44
|
|
|
(60
|
)
|
|
75
|
|
(9)
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Marketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
|
Nonmarketable
|
5,468
|
|
|
2,383
|
|
|
—
|
|
|
(1
|
)
|
|
9
|
|
|
(12
|
)
|
|
7,847
|
|
|
2,386
|
|
|
|
Total equity securities
|
5,468
|
|
|
2,383
|
|
|
—
|
|
|
(1
|
)
|
|
12
|
|
|
(12
|
)
|
|
7,850
|
|
|
2,386
|
|
(10)
|
|
Other liabilities
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
(7)
|
(1)
|
See Table 19.4 for detail.
|
(2)
|
All assets and liabilities transferred into level 3 were previously classified within level 2.
|
(3)
|
All assets and liabilities transferred out of level 3 are classified as level 2, except for $153 million of asset-backed securities that were transferred to loans during third quarter 2019.
|
(4)
|
Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time.
|
(5)
|
Included in net gains (losses) from trading activities in the income statement.
|
(6)
|
Included in net gains (losses) from debt securities in the income statement.
|
(7)
|
Included in mortgage banking and other noninterest income in the income statement.
|
(8)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities).
|
(9)
|
Included in mortgage banking income, net gains from trading activities and from equity securities, and other noninterest income.
|
(10)
|
Included in net gains (losses) from equity securities in the income statement.
|
|
Wells Fargo & Company
|
213
|
(in millions)
|
Purchases
|
|
|
Sales
|
|
|
Issuances
|
|
|
Settlements
|
|
|
Net
|
|
|
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
Collateralized loan obligations
|
372
|
|
|
(372
|
)
|
|
—
|
|
|
(22
|
)
|
|
(22
|
)
|
|
Corporate debt securities
|
19
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
6
|
|
|
Other trading debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|
Total trading debt securities
|
391
|
|
|
(385
|
)
|
|
—
|
|
|
(34
|
)
|
|
(28
|
)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
—
|
|
|
—
|
|
|
169
|
|
|
(155
|
)
|
|
14
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
Total mortgage-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|
Corporate debt securities
|
18
|
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(1
|
)
|
|
Collateralized loan and other debt obligations
|
155
|
|
|
—
|
|
|
—
|
|
|
(307
|
)
|
|
(152
|
)
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Other asset-backed securities
|
—
|
|
|
(9
|
)
|
|
133
|
|
|
(257
|
)
|
|
(133
|
)
|
|
Total asset-backed securities
|
—
|
|
|
(9
|
)
|
|
133
|
|
|
(257
|
)
|
|
(133
|
)
|
|
Total available-for-sale debt securities
|
173
|
|
|
(9
|
)
|
|
302
|
|
|
(743
|
)
|
|
(277
|
)
|
|
Mortgage loans held for sale
|
96
|
|
|
(235
|
)
|
|
248
|
|
|
(249
|
)
|
|
(140
|
)
|
|
Loans held for sale
|
12
|
|
|
(2
|
)
|
|
—
|
|
|
(14
|
)
|
|
(4
|
)
|
|
Loans
|
3
|
|
|
—
|
|
|
10
|
|
|
(86
|
)
|
|
(73
|
)
|
|
Mortgage servicing rights (residential) (1)
|
—
|
|
|
(286
|
)
|
|
1,933
|
|
|
—
|
|
|
1,647
|
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(396
|
)
|
|
(396
|
)
|
|
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
158
|
|
|
158
|
|
|
Equity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
292
|
|
|
292
|
|
|
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(26
|
)
|
|
Credit contracts
|
13
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
Total derivative contracts
|
13
|
|
|
(12
|
)
|
|
—
|
|
|
28
|
|
|
29
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||
Nonmarketable
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Total equity securities
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities).
|
214
|
Wells Fargo & Company
|
|
|
|
|
Total net gains
(losses) included in
|
|
|
Purchases,
sales,
issuances
and
settlements,
net (1)
|
|
|
|
|
|
|
|
|
Net unrealized
gains (losses)
included in
income related
to assets and
liabilities held
at period end
|
|
|
||||||||
(in millions)
|
Balance,
beginning
of period
|
|
|
Net
income
|
|
|
Other
compre-
hensive
income
|
|
|
|
Transfers
into
Level 3 (2)
|
|
|
Transfers
out of
Level 3 (3)
|
|
|
Balance,
end of
period
|
|
|
(4)
|
|||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
$
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
Collateralized loan obligations
|
354
|
|
|
(12
|
)
|
|
—
|
|
|
(101
|
)
|
|
—
|
|
|
(4
|
)
|
|
237
|
|
|
(14
|
)
|
|
|
Corporate debt securities
|
31
|
|
|
(1
|
)
|
|
—
|
|
|
16
|
|
|
—
|
|
|
(12
|
)
|
|
34
|
|
|
(1
|
)
|
|
|
Other trading debt securities
|
19
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
|
Total trading debt securities
|
407
|
|
|
(16
|
)
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
(16
|
)
|
|
290
|
|
|
(15
|
)
|
(5)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
925
|
|
|
8
|
|
|
(8
|
)
|
|
(137
|
)
|
|
—
|
|
|
(344
|
)
|
|
444
|
|
|
—
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential
|
1
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Commercial
|
75
|
|
|
—
|
|
|
(1
|
)
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
41
|
|
|
(1
|
)
|
|
|
Total mortgage-backed securities
|
76
|
|
|
—
|
|
|
(1
|
)
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
|
41
|
|
|
(1
|
)
|
|
|
Corporate debt securities
|
407
|
|
|
4
|
|
|
(3
|
)
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
370
|
|
|
—
|
|
|
|
Collateralized loan and other
debt obligations |
1,020
|
|
|
72
|
|
|
5
|
|
|
(297
|
)
|
|
—
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other asset-backed securities
|
566
|
|
|
5
|
|
|
(11
|
)
|
|
(171
|
)
|
|
—
|
|
|
—
|
|
|
389
|
|
|
(3
|
)
|
|
|
Total asset-backed securities
|
566
|
|
|
5
|
|
|
(11
|
)
|
|
(171
|
)
|
|
—
|
|
|
—
|
|
|
389
|
|
|
(3
|
)
|
|
|
Total available-for-sale debt securities
|
2,994
|
|
|
89
|
|
|
(18
|
)
|
|
(677
|
)
|
|
—
|
|
|
(344
|
)
|
|
2,044
|
|
|
(4
|
)
|
(6)
|
|
Mortgage loans held for sale
|
998
|
|
|
(27
|
)
|
|
—
|
|
|
(36
|
)
|
|
72
|
|
|
(10
|
)
|
|
997
|
|
|
(22
|
)
|
(7)
|
|
Loans held for sale
|
14
|
|
|
2
|
|
|
—
|
|
|
(36
|
)
|
|
80
|
|
|
—
|
|
|
60
|
|
|
1
|
|
|
|
Loans
|
376
|
|
|
(1
|
)
|
|
—
|
|
|
(131
|
)
|
|
—
|
|
|
—
|
|
|
244
|
|
|
(11
|
)
|
(7)
|
|
Mortgage servicing rights (residential) (8)
|
13,625
|
|
|
(915
|
)
|
|
—
|
|
|
1,939
|
|
|
—
|
|
|
—
|
|
|
14,649
|
|
|
960
|
|
(7)
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
71
|
|
|
(397
|
)
|
|
—
|
|
|
351
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
(42
|
)
|
|
|
Commodity contracts
|
19
|
|
|
3
|
|
|
—
|
|
|
(11
|
)
|
|
(7
|
)
|
|
—
|
|
|
4
|
|
|
(1
|
)
|
|
|
Equity contracts
|
(511
|
)
|
|
(108
|
)
|
|
—
|
|
|
522
|
|
|
(1
|
)
|
|
81
|
|
|
(17
|
)
|
|
(169
|
)
|
|
|
Foreign exchange contracts
|
7
|
|
|
(42
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
|
(26
|
)
|
|
|
Credit contracts
|
36
|
|
|
5
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
35
|
|
|
(1
|
)
|
|
|
Total derivative contracts
|
(378
|
)
|
|
(539
|
)
|
|
—
|
|
|
865
|
|
|
(8
|
)
|
|
81
|
|
|
21
|
|
|
(239
|
)
|
(9)
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Marketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Nonmarketable (10)
|
5,203
|
|
|
703
|
|
|
—
|
|
|
(450
|
)
|
|
16
|
|
|
(4
|
)
|
|
5,468
|
|
|
642
|
|
|
|
Total equity securities
|
5,203
|
|
|
703
|
|
|
—
|
|
|
(450
|
)
|
|
16
|
|
|
(4
|
)
|
|
5,468
|
|
|
642
|
|
(11)
|
|
Other liabilities
|
(3
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
(7)
|
(1)
|
See Table 19.6 for detail.
|
(2)
|
All assets and liabilities transferred into level 3 were previously classified within level 2.
|
(3)
|
All assets and liabilities transferred out of level 3 are classified as level 2.
|
(4)
|
Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time.
|
(5)
|
Included in net gains (losses) from trading activities in the income statement.
|
(6)
|
Included in net gains (losses) from debt securities in the income statement.
|
(7)
|
Included in mortgage banking and other noninterest income in the income statement.
|
(8)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities)
|
(9)
|
Included in mortgage banking income, net gains from trading activities and from equity securities, and other noninterest income.
|
(10)
|
Beginning balance includes $382 million of auction rate securities, which changed from the cost to fair value method of accounting in connection with our adoption of ASU 2016-01 in first quarter 2018.
|
(11)
|
Included in net gains (losses) from equity securities in the income statement.
|
|
Wells Fargo & Company
|
215
|
(in millions)
|
Purchases
|
|
|
Sales
|
|
|
Issuances
|
|
|
Settlements
|
|
|
Net
|
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Collateralized loan obligations
|
408
|
|
|
(348
|
)
|
|
—
|
|
|
(161
|
)
|
|
(101
|
)
|
|
Corporate debt securities
|
20
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
16
|
|
|
Other trading debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total trading debt securities
|
428
|
|
|
(352
|
)
|
|
—
|
|
|
(161
|
)
|
|
(85
|
)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
—
|
|
|
(6
|
)
|
|
79
|
|
|
(210
|
)
|
|
(137
|
)
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
(33
|
)
|
|
Total mortgage-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(34
|
)
|
|
(34
|
)
|
|
Corporate debt securities
|
33
|
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
|
(38
|
)
|
|
Collateralized loan and other debt obligations
|
61
|
|
|
(149
|
)
|
|
—
|
|
|
(209
|
)
|
|
(297
|
)
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Other asset-backed securities
|
25
|
|
|
(12
|
)
|
|
166
|
|
|
(350
|
)
|
|
(171
|
)
|
|
Total asset-backed securities
|
25
|
|
|
(12
|
)
|
|
166
|
|
|
(350
|
)
|
|
(171
|
)
|
|
Total available-for-sale debt securities
|
119
|
|
|
(167
|
)
|
|
245
|
|
|
(874
|
)
|
|
(677
|
)
|
|
Mortgage loans held for sale
|
87
|
|
|
(320
|
)
|
|
353
|
|
|
(156
|
)
|
|
(36
|
)
|
|
Loans held for sale
|
4
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
|
Loans
|
8
|
|
|
—
|
|
|
17
|
|
|
(156
|
)
|
|
(131
|
)
|
|
Mortgage servicing rights (residential) (1)
|
—
|
|
|
(71
|
)
|
|
2,010
|
|
|
—
|
|
|
1,939
|
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
|
351
|
|
|
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|
Equity contracts
|
3
|
|
|
(37
|
)
|
|
—
|
|
|
556
|
|
|
522
|
|
|
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
Credit contracts
|
12
|
|
|
(7
|
)
|
|
—
|
|
|
(11
|
)
|
|
(6
|
)
|
|
Total derivative contracts
|
15
|
|
|
(44
|
)
|
|
—
|
|
|
894
|
|
|
865
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|||||
Marketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Nonmarketable
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(399
|
)
|
|
(450
|
)
|
|
Total equity securities
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(399
|
)
|
|
(450
|
)
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities).
|
216
|
Wells Fargo & Company
|
|
|
|
|
Total net gains
(losses) included in
|
|
|
Purchases,
sales,
issuances
and
settlements,
net (1)
|
|
|
|
|
|
|
|
|
Net unrealized
gains (losses)
included in
income related
to assets and
liabilities held
at period end
|
|
|
||||||||
(in millions)
|
Balance,
beginning
of period
|
|
|
Net
income
|
|
|
Other
compre-
hensive
income
|
|
|
|
Transfers
into
Level 3 (2)
|
|
|
Transfers
out of
Level 3 (3)
|
|
|
Balance,
end of
period
|
|
|
(4)
|
|||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
$
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
Collateralized loan obligations
|
309
|
|
|
3
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
—
|
|
|
354
|
|
|
(13
|
)
|
|
|
Corporate debt securities
|
34
|
|
|
2
|
|
|
—
|
|
|
(7
|
)
|
|
6
|
|
|
(4
|
)
|
|
31
|
|
|
2
|
|
|
|
Other trading debt securities
|
28
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
(4
|
)
|
|
|
Total trading debt securities
|
374
|
|
|
(4
|
)
|
|
—
|
|
|
35
|
|
|
6
|
|
|
(4
|
)
|
|
407
|
|
|
(15
|
)
|
(5)
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. states and political subdivisions
|
1,140
|
|
|
4
|
|
|
5
|
|
|
1,105
|
|
|
5
|
|
|
(1,334
|
)
|
|
925
|
|
|
—
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Residential
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
Commercial
|
91
|
|
|
(4
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
75
|
|
|
(11
|
)
|
|
|
Total mortgage-backed securities
|
92
|
|
|
(4
|
)
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
76
|
|
|
(11
|
)
|
|
|
Corporate debt securities
|
432
|
|
|
(1
|
)
|
|
23
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
407
|
|
|
—
|
|
|
|
Collateralized loan and other
debt obligations |
879
|
|
|
22
|
|
|
103
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other asset-backed securities
|
962
|
|
|
1
|
|
|
3
|
|
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
566
|
|
|
—
|
|
|
|
Total asset-backed securities
|
962
|
|
|
1
|
|
|
3
|
|
|
(400
|
)
|
|
—
|
|
|
—
|
|
|
566
|
|
|
—
|
|
|
|
Total available-for-sale debt securities
|
3,505
|
|
|
22
|
|
|
134
|
|
|
662
|
|
|
5
|
|
|
(1,334
|
)
|
|
2,994
|
|
|
(11
|
)
|
(6)
|
|
Mortgage loans held for sale
|
985
|
|
|
(36
|
)
|
|
—
|
|
|
(75
|
)
|
|
134
|
|
|
(10
|
)
|
|
998
|
|
|
(34
|
)
|
(7)
|
|
Loans held for sale
|
—
|
|
|
1
|
|
|
—
|
|
|
(3
|
)
|
|
34
|
|
|
(18
|
)
|
|
14
|
|
|
—
|
|
|
|
Loans
|
758
|
|
|
(6
|
)
|
|
—
|
|
|
(376
|
)
|
|
—
|
|
|
—
|
|
|
376
|
|
|
(12
|
)
|
(7)
|
|
Mortgage servicing rights (residential) (8)
|
12,959
|
|
|
(2,115
|
)
|
|
—
|
|
|
2,781
|
|
|
—
|
|
|
—
|
|
|
13,625
|
|
|
(126
|
)
|
(7)
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate contracts
|
121
|
|
|
604
|
|
|
—
|
|
|
(654
|
)
|
|
—
|
|
|
—
|
|
|
71
|
|
|
(52
|
)
|
|
|
Commodity contracts
|
23
|
|
|
(17
|
)
|
|
—
|
|
|
13
|
|
|
2
|
|
|
(2
|
)
|
|
19
|
|
|
15
|
|
|
|
Equity contracts
|
(267
|
)
|
|
(199
|
)
|
|
—
|
|
|
(37
|
)
|
|
(53
|
)
|
|
45
|
|
|
(511
|
)
|
|
(259
|
)
|
|
|
Foreign exchange contracts
|
12
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
|
Credit contracts
|
77
|
|
|
24
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
36
|
|
|
(62
|
)
|
|
|
Other derivative contracts
|
(47
|
)
|
|
27
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total derivative contracts
|
(81
|
)
|
|
434
|
|
|
—
|
|
|
(723
|
)
|
|
(51
|
)
|
|
43
|
|
|
(378
|
)
|
|
(352
|
)
|
(9)
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Marketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Nonmarketable
|
3,259
|
|
|
1,563
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
4,821
|
|
|
1,569
|
|
|
|
Total equity securities
|
3,259
|
|
|
1,563
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
|
—
|
|
|
4,821
|
|
|
1,569
|
|
(10)
|
|
Short sale liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(5)
|
|
Other liabilities
|
(4
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
(7)
|
(1)
|
See Table 19.8 for detail.
|
(2)
|
All assets and liabilities transferred into level 3 were previously classified within level 2.
|
(3)
|
All assets and liabilities transferred out of level 3 are classified as level 2.
|
(4)
|
Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the collection/realization of cash flows over time.
|
(5)
|
Included in net gains (losses) from trading activities in the income statement.
|
(6)
|
Included in net gains (losses) from debt securities in the income statement.
|
(7)
|
Included in mortgage banking and other noninterest income in the income statement.
|
(8)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities).
|
(9)
|
Included in mortgage banking income, net gains from trading activities and from equity securities, and other noninterest income.
|
(10)
|
Included in net gains (losses) from equity securities in the income statement.
|
|
Wells Fargo & Company
|
217
|
(in millions)
|
Purchases
|
|
|
Sales
|
|
|
Issuances
|
|
|
Settlements
|
|
|
Net
|
|
|
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||
Trading debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
$
|
37
|
|
|
(36
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
Collateralized loan obligations
|
439
|
|
|
(250
|
)
|
|
—
|
|
|
(147
|
)
|
|
42
|
|
|
Corporate debt securities
|
25
|
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
Other trading debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total trading debt securities
|
501
|
|
|
(318
|
)
|
|
—
|
|
|
(148
|
)
|
|
35
|
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and political subdivisions
|
—
|
|
|
(68
|
)
|
|
1,369
|
|
|
(196
|
)
|
|
1,105
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Residential
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
Total mortgage-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
Corporate debt securities
|
14
|
|
|
(4
|
)
|
|
—
|
|
|
(57
|
)
|
|
(47
|
)
|
|
Collateralized loan and other debt obligations
|
135
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
16
|
|
|
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||
Other asset-backed securities
|
—
|
|
|
—
|
|
|
211
|
|
|
(611
|
)
|
|
(400
|
)
|
|
Total asset-backed securities
|
—
|
|
|
—
|
|
|
211
|
|
|
(611
|
)
|
|
(400
|
)
|
|
Total available-for-sale debt securities
|
149
|
|
|
(72
|
)
|
|
1,580
|
|
|
(995
|
)
|
|
662
|
|
|
Mortgage loans held for sale
|
79
|
|
|
(485
|
)
|
|
489
|
|
|
(158
|
)
|
|
(75
|
)
|
|
Loans held for sale
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
Loans
|
6
|
|
|
(129
|
)
|
|
19
|
|
|
(272
|
)
|
|
(376
|
)
|
|
Mortgage servicing rights (residential) (1)
|
541
|
|
|
(24
|
)
|
|
2,263
|
|
|
1
|
|
|
2,781
|
|
|
Net derivative assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
(654
|
)
|
|
(654
|
)
|
|
Commodity contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
Equity contracts
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
81
|
|
|
(37
|
)
|
|
Foreign exchange contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Credit contracts
|
6
|
|
|
(3
|
)
|
|
—
|
|
|
(68
|
)
|
|
(65
|
)
|
|
Other derivative contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
20
|
|
|
Total derivative contracts
|
6
|
|
|
(121
|
)
|
|
—
|
|
|
(608
|
)
|
|
(723
|
)
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||
Marketable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Nonmarketable
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
Total equity securities
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
Short sale liabilities
|
3
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
For more information on the changes in mortgage servicing rights, see Note 11 (Mortgage Banking Activities).
|
218
|
Wells Fargo & Company
|
|
($ in millions, except cost to service amounts)
|
Fair Value Level 3
|
|
|
Valuation Technique(s)
|
|
Significant Unobservable Input
|
|
Range of Inputs
|
|
|
|
Weighted
Average
|
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading and available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and
political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Government, healthcare and
other revenue bonds
|
$
|
379
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
1.3
|
|
-
|
5.4
|
|
%
|
|
2.4
|
|
|
|
34
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Collateralized loan and other debt
obligations
|
183
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(15.0
|
)
|
-
|
19.2
|
|
|
|
1.3
|
|
||
|
640
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Corporate debt securities
|
220
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.2
|
|
|
14.9
|
|
|
|
9.2
|
|
||
|
60
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(19.7
|
)
|
|
14
|
|
|
|
(4.4
|
)
|
||
|
125
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diversified payment rights (1)
|
92
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.3
|
|
-
|
3.1
|
|
|
|
2.8
|
|
||
Other commercial and consumer
|
11
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans held for sale (residential)
|
1,183
|
|
|
Discounted cash flow
|
|
Default rate
|
|
0.0
|
|
-
|
15.5
|
|
|
|
0.7
|
|
||
|
|
|
|
|
Discount rate
|
|
3.0
|
|
-
|
5.6
|
|
|
|
4.5
|
|
|||
|
|
|
|
|
Loss severity
|
|
0.0
|
|
-
|
43.5
|
|
|
|
21.7
|
|
|||
|
|
|
|
|
Prepayment rate
|
|
5.7
|
|
-
|
15.4
|
|
|
|
7.8
|
|
|||
|
15
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(56.3
|
)
|
-
|
(6.3
|
)
|
|
|
(40.3
|
)
|
||
Loans (2)
|
171
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.9
|
|
-
|
4.3
|
|
|
|
4.1
|
|
||
|
|
|
|
|
Prepayment rate
|
|
6.0
|
|
-
|
100.0
|
|
|
|
85.6
|
|
|||
|
|
|
|
|
Loss severity
|
|
0.0
|
|
-
|
36.5
|
|
|
|
14.1
|
|
|||
Mortgage servicing rights (residential)
|
11,517
|
|
|
Discounted cash flow
|
|
Cost to service per loan (3)
|
|
$
|
61
|
|
-
|
495
|
|
|
|
102
|
|
|
|
|
|
|
|
Discount rate
|
|
6.0
|
|
-
|
13.6
|
|
%
|
|
7.2
|
|
|||
|
|
|
|
|
Prepayment rate (4)
|
|
9.6
|
|
-
|
24.4
|
|
|
|
11.9
|
|
|||
Net derivative assets and (liabilities):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
146
|
|
|
Discounted cash flow
|
|
Default rate
|
|
0.0
|
|
-
|
5.0
|
|
|
|
1.7
|
|
||
|
|
|
|
|
Loss severity
|
|
50.0
|
|
-
|
50.0
|
|
|
|
50.0
|
|
|||
|
|
|
|
|
Prepayment rate
|
|
2.8
|
|
-
|
25.0
|
|
|
|
15.0
|
|
|||
Interest rate contracts: derivative loan
commitments
|
68
|
|
|
Discounted cash flow
|
|
Fall-out factor
|
|
1.0
|
|
-
|
99.0
|
|
|
|
16.7
|
|
||
|
|
|
|
|
Initial-value servicing
|
|
(32.2
|
)
|
-
|
149.0
|
|
bps
|
|
36.4
|
|
|||
Equity contracts
|
147
|
|
|
Discounted cash flow
|
|
Conversion factor
|
|
(8.8
|
)
|
-
|
0.0
|
|
%
|
|
(7.7
|
)
|
||
|
|
|
|
|
Weighted average life
|
|
0.5
|
|
-
|
3.0
|
|
yrs
|
|
1.5
|
|
|||
|
(416
|
)
|
|
Option model
|
|
Correlation factor
|
|
(77.0
|
)
|
-
|
99.0
|
|
%
|
|
23.8
|
|
||
|
|
|
|
|
Volatility factor
|
|
6.8
|
|
-
|
100.0
|
|
|
|
18.7
|
|
|||
Credit contracts
|
2
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(56.1
|
)
|
-
|
10.8
|
|
|
|
(16.0
|
)
|
||
|
27
|
|
|
Option model
|
|
Credit spread
|
|
0.0
|
|
-
|
17.8
|
|
|
|
0.8
|
|
||
|
|
|
|
|
Loss severity
|
|
12.0
|
|
-
|
60.0
|
|
|
|
45.6
|
|
|||
Nonmarketable equity securities
|
7,847
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(20.2
|
)
|
-
|
(4.2
|
)
|
|
|
(14.6
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Insignificant Level 3 assets, net of liabilities
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total level 3 assets, net of liabilities
|
$
|
22,478
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Securities backed by specified sources of current and future receivables generated from non-U.S. originators.
|
(2)
|
Consists of reverse mortgage loans.
|
(3)
|
The high end of the range of inputs is for servicing modified loans. For non-modified loans the range is $61 - $231.
|
(4)
|
Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.
|
(5)
|
Consists of total Level 3 assets of $24.3 billion and total Level 3 liabilities of $1.8 billion, before netting of derivative balances.
|
|
Wells Fargo & Company
|
219
|
($ in millions, except cost to service amounts)
|
Fair Value
Level 3
|
|
|
Valuation Technique(s)
|
|
Significant
Unobservable Input
|
|
Range of Inputs
|
|
Weighted
Average |
|
|||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trading and available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities of U.S. states and
political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Government, healthcare and
other revenue bonds
|
$
|
404
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.1
|
|
-
|
6.4
|
|
%
|
|
3.4
|
|
|
|
43
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Collateralized loan and other debt
obligations
|
298
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(13.5
|
)
|
-
|
22.1
|
|
%
|
|
3.2
|
|
||
|
739
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Corporate debt securities
|
220
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
4.0
|
|
|
11.7
|
|
|
|
8.5
|
|
||
|
56
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(11.3
|
)
|
|
16.6
|
|
|
|
(1.4
|
)
|
||
|
128
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diversified payment rights (1)
|
171
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.4
|
|
-
|
6.2
|
|
|
|
4.4
|
|
||
Other commercial and consumer
|
198
|
|
(2)
|
Discounted cash flow
|
|
Discount rate
|
|
4.6
|
|
-
|
5.2
|
|
|
|
4.7
|
|
||
|
|
|
|
|
Weighted average life
|
|
1.1
|
|
-
|
1.5
|
|
yrs
|
|
1.1
|
|
|||
|
20
|
|
|
Vendor priced
|
|
|
|
|
|
|
|
|
|
|||||
Mortgage loans held for sale (residential)
|
982
|
|
|
Discounted cash flow
|
|
Default rate
|
|
0.0
|
|
-
|
15.6
|
|
%
|
|
0.8
|
|
||
|
|
|
|
|
Discount rate
|
|
1.1
|
|
-
|
6.6
|
|
|
|
5.5
|
|
|||
|
|
|
|
|
Loss severity
|
|
0.0
|
|
-
|
43.3
|
|
|
|
23.4
|
|
|||
|
|
|
|
|
Prepayment rate
|
|
3.2
|
|
-
|
13.4
|
|
|
|
4.6
|
|
|||
|
15
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(56.3
|
)
|
-
|
(6.3
|
)
|
|
|
(36.3
|
)
|
||
Loans (3)
|
244
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.4
|
|
-
|
6.4
|
|
|
|
4.2
|
|
||
|
|
|
|
|
Prepayment rate
|
|
2.9
|
|
-
|
100.0
|
|
|
|
87.2
|
|
|||
|
|
|
|
|
Loss severity
|
|
0.0
|
|
-
|
34.8
|
|
|
|
10.2
|
|
|||
Mortgage servicing rights (residential)
|
14,649
|
|
|
Discounted cash flow
|
|
Cost to service per
loan (4)
|
|
$
|
62
|
|
-
|
507
|
|
|
|
106
|
|
|
|
|
|
|
|
Discount rate
|
|
7.1
|
|
-
|
15.3
|
|
%
|
|
8.1
|
|
|||
|
|
|
|
|
Prepayment rate (5)
|
|
9.0
|
|
-
|
23.5
|
|
|
|
9.9
|
|
|||
Net derivative assets and (liabilities):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
(35
|
)
|
|
Discounted cash flow
|
|
Default rate
|
|
0.0
|
|
-
|
5.0
|
|
|
|
2.0
|
|
||
|
|
|
|
|
Loss severity
|
|
50.0
|
|
-
|
50.0
|
|
|
|
50.0
|
|
|||
|
|
|
|
|
Prepayment rate
|
|
2.8
|
|
-
|
25.0
|
|
|
|
13.8
|
|
|||
Interest rate contracts: derivative loan
commitments
|
60
|
|
|
Discounted cash flow
|
|
Fall-out factor
|
|
1.0
|
|
-
|
99.0
|
|
|
|
19.4
|
|
||
|
|
|
|
|
Initial-value servicing
|
|
(36.6
|
)
|
-
|
91.7
|
|
bps
|
|
18.5
|
|
|||
Equity contracts
|
104
|
|
|
Discounted cash flow
|
|
Conversion factor
|
|
(9.3
|
)
|
-
|
0.0
|
|
%
|
|
(7.8
|
)
|
||
|
|
|
|
|
Weighted average life
|
|
1.0
|
|
-
|
3.0
|
|
yrs
|
|
1.8
|
|
|||
|
(121
|
)
|
|
Option model
|
|
Correlation factor
|
|
(77.0
|
)
|
-
|
99.0
|
|
%
|
|
21.6
|
|
||
|
|
|
|
|
Volatility factor
|
|
6.5
|
|
-
|
100.0
|
|
|
|
21.8
|
|
|||
Credit contracts
|
3
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(15.5
|
)
|
-
|
40.0
|
|
|
|
3.5
|
|
||
|
32
|
|
|
Option model
|
|
Credit spread
|
|
0.9
|
|
-
|
21.5
|
|
|
|
1.3
|
|
||
|
|
|
|
|
Loss severity
|
|
13.0
|
|
-
|
60.0
|
|
|
|
45.2
|
|
|||
Nonmarketable equity securities
|
5,468
|
|
|
Market comparable pricing
|
|
Comparability adjustment
|
|
(20.6
|
)
|
-
|
(4.3
|
)
|
|
|
(15.8
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Insignificant Level 3 assets, net of liabilities
|
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total level 3 assets, net of liabilities
|
$
|
23,771
|
|
(6)
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Securities backed by specified sources of current and future receivables generated from non-U.S. originators.
|
(2)
|
Predominantly consists of investments in asset-backed securities that are revolving in nature, for which the timing of advances and repayments of principal are uncertain.
|
(3)
|
Consists of reverse mortgage loans.
|
(4)
|
The high end of the range of inputs is for servicing modified loans. For non-modified loans the range is $62 - $204.
|
(5)
|
Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.
|
(6)
|
Consists of total Level 3 assets of $25.3 billion and total Level 3 liabilities of $1.6 billion, before netting of derivative balances.
|
220
|
Wells Fargo & Company
|
|
•
|
Discounted cash flow – Discounted cash flow valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of an instrument and then discounting those cash flows at a rate of return that results in the fair value amount.
|
•
|
Market comparable pricing – Market comparable pricing valuation techniques are used to determine the fair value of certain instruments by incorporating known inputs, such as recent transaction prices, pending transactions, or prices of other similar investments that require significant adjustment to reflect differences in instrument characteristics.
|
•
|
Option model – Option model valuation techniques are generally used for instruments in which the holder has a contingent right or obligation based on the occurrence of a future event, such as the price of a referenced asset going above or below a predetermined strike price. Option models estimate the likelihood of the specified event occurring by incorporating assumptions such as volatility estimates, price of the underlying instrument and expected rate of return.
|
•
|
Vendor-priced – Prices obtained from third-party pricing vendors or brokers that are used to record the fair value of the asset or liability for which the related valuation technique and significant unobservable inputs are not provided.
|
•
|
Comparability adjustment – is an adjustment made to observed market data, such as a transaction price in order to reflect dissimilarities in underlying collateral, issuer, rating, or other factors used within a market valuation approach, expressed as a percentage of an observed price.
|
•
|
Conversion Factor – is the risk-adjusted rate in which a particular instrument may be exchanged for another instrument upon settlement, expressed as a percentage change from a specified rate.
|
•
|
Correlation factor – is the likelihood of one instrument changing in price relative to another based on an established relationship expressed as a percentage of relative change in price over a period over time.
|
•
|
Cost to service – is the expected cost per loan of servicing a portfolio of loans, which includes estimates for unreimbursed expenses (including delinquency and foreclosure costs) that may occur as a result of servicing such loan portfolios.
|
•
|
Credit spread – is the portion of the interest rate in excess of a benchmark interest rate, such as Overnight Index Swap (OIS), LIBOR or U.S. Treasury rates, that when applied to an investment captures changes in the obligor’s creditworthiness.
|
•
|
Default rate – is an estimate of the likelihood of not collecting contractual amounts owed expressed as a constant default rate (CDR).
|
•
|
Discount rate – is a rate of return used to calculate the present value of the future expected cash flow to arrive at the fair value of an instrument. The discount rate consists of a benchmark rate component and a risk premium component. The benchmark rate component, for example, OIS, LIBOR or U.S. Treasury rates, is generally observable within the market and is necessary to appropriately reflect the time value of money. The risk premium component reflects the amount of compensation market participants require due to the uncertainty inherent in the instruments’ cash flows resulting from risks such as credit and liquidity.
|
•
|
Fall-out factor – is the expected percentage of loans associated with our interest rate lock commitment portfolio that are likely of not funding.
|
•
|
Initial-value servicing – is the estimated value of the underlying loan, including the value attributable to the embedded servicing right, expressed in basis points of outstanding unpaid principal balance.
|
•
|
Loss severity – is the estimated percentage of contractual cash flows lost in the event of a default.
|
•
|
Prepayment rate – is the estimated rate at which forecasted prepayments of principal of the related loan or debt instrument are expected to occur, expressed as a constant prepayment rate (CPR).
|
•
|
Volatility factor – is the extent of change in price an item is estimated to fluctuate over a specified period of time expressed as a percentage of relative change in price over a period over time.
|
•
|
Weighted average life – is the weighted average number of years an investment is expected to remain outstanding based on its expected cash flows reflecting the estimated date the issuer will call or extend the maturity of the instrument or otherwise reflecting an estimate of the timing of an instrument’s cash flows whose timing is not contractually fixed.
|
|
Wells Fargo & Company
|
221
|
222
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||||||||
(in millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Mortgage loans held for sale (1)
|
$
|
—
|
|
|
2,034
|
|
|
3,803
|
|
|
5,837
|
|
|
—
|
|
|
1,213
|
|
|
1,233
|
|
|
2,446
|
|
Loans held for sale
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
313
|
|
|
—
|
|
|
313
|
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
—
|
|
|
280
|
|
|
—
|
|
|
280
|
|
|
—
|
|
|
339
|
|
|
—
|
|
|
339
|
|
|
Consumer
|
—
|
|
|
213
|
|
|
1
|
|
|
214
|
|
|
—
|
|
|
346
|
|
|
1
|
|
|
347
|
|
|
Total loans
|
—
|
|
|
493
|
|
|
1
|
|
|
494
|
|
|
—
|
|
|
685
|
|
|
1
|
|
|
686
|
|
|
Nonmarketable equity securities
|
—
|
|
|
1,308
|
|
|
173
|
|
|
1,481
|
|
|
—
|
|
|
774
|
|
|
157
|
|
|
931
|
|
|
Other assets
|
—
|
|
|
359
|
|
|
27
|
|
|
386
|
|
|
—
|
|
|
149
|
|
|
6
|
|
|
155
|
|
|
Total assets at fair value on a nonrecurring basis
|
$
|
—
|
|
|
4,199
|
|
|
4,004
|
|
|
8,203
|
|
|
—
|
|
|
3,134
|
|
|
1,397
|
|
|
4,531
|
|
(1)
|
Consists of commercial mortgages and residential real estate 1-4 family first mortgage loans.
|
|
Year ended December 31,
|
|
||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Mortgage loans held for sale
|
$
|
11
|
|
|
21
|
|
Loans held for sale
|
—
|
|
|
(39
|
)
|
|
Loans:
|
|
|
|
|||
Commercial
|
(291
|
)
|
|
(221
|
)
|
|
Consumer
|
(207
|
)
|
|
(284
|
)
|
|
Total loans
|
(498
|
)
|
|
(505
|
)
|
|
Nonmarketable equity securities
|
322
|
|
|
265
|
|
|
Premises and equipment
|
(170
|
)
|
|
—
|
|
|
Other assets
|
(84
|
)
|
|
(40
|
)
|
|
Total
|
$
|
(419
|
)
|
|
(298
|
)
|
|
Wells Fargo & Company
|
223
|
($ in millions)
|
Fair Value Level 3
|
|
|
Valuation Technique(s) (1)
|
|
Significant Unobservable
Inputs (1)
|
|
Range of inputs
|
|
Weighted Average (2)
|
|
||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential mortgage loans held for sale
|
$
|
3,803
|
|
(3)
|
Discounted cash flow
|
|
Default rate
|
(4)
|
0.3
|
–
|
48.3
|
%
|
|
4.6
|
%
|
|
|
|
|
|
Discount rate
|
|
1.5
|
–
|
9.4
|
|
|
4.3
|
|
||
|
|
|
|
|
Loss severity
|
|
0.4
|
–
|
100.0
|
|
|
23.4
|
|
||
|
|
|
|
|
Prepayment rate
|
(5)
|
4.8
|
–
|
100.0
|
|
|
23.2
|
|
||
Insignificant Level 3 assets
|
201
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total
|
$
|
4,004
|
|
|
|
|
|
|
|
|
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential mortgage loans held for sale
|
$
|
1,233
|
|
(3)
|
Discounted cash flow
|
|
Default rate
|
(4)
|
0.2
|
–
|
2.3
|
%
|
|
1.4
|
%
|
|
|
|
|
|
Discount rate
|
|
1.5
|
–
|
8.5
|
|
|
4.0
|
|
||
|
|
|
|
|
Loss severity
|
|
0.5
|
–
|
66.0
|
|
|
1.7
|
|
||
|
|
|
|
|
Prepayment rate
|
(5)
|
3.5
|
–
|
100.0
|
|
|
46.5
|
|
||
Insignificant Level 3 assets
|
164
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total
|
$
|
1,397
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Refer to the narrative following Table 19.10 for a definition of the valuation technique(s) and significant unobservable inputs.
|
(2)
|
For residential MLHFS, weighted averages are calculated using the outstanding unpaid principal balance of the loans.
|
(3)
|
Consists of approximately $1.3 billion and $1.2 billion of government insured/guaranteed loans purchased from GNMA-guaranteed mortgage securitizations at December 31, 2019 and 2018, respectively, and $2.5 billion and $27 million, respectively, of other mortgage loans that are not government insured/guaranteed.
|
(4)
|
Applies only to non-government insured/guaranteed loans.
|
(5)
|
Includes the impact on prepayment rate of expected defaults for government insured/guaranteed loans, which impact the frequency and timing of early resolution of loans.
|
224
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
(in millions)
|
Fair value carrying amount
|
|
|
Aggregate unpaid principal
|
|
|
Fair value carrying amount less aggregate unpaid principal
|
|
|
Fair value carrying amount
|
|
|
Aggregate unpaid principal
|
|
|
Fair value carrying amount less aggregate unpaid principal
|
|
|
Mortgage loans held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total loans
|
$
|
16,606
|
|
|
16,279
|
|
|
327
|
|
|
11,771
|
|
|
11,573
|
|
|
198
|
|
Nonaccrual loans
|
133
|
|
|
157
|
|
|
(24
|
)
|
|
127
|
|
|
158
|
|
|
(31
|
)
|
|
Loans 90 days or more past due and still accruing
|
8
|
|
|
10
|
|
|
(2
|
)
|
|
7
|
|
|
9
|
|
|
(2
|
)
|
|
Loans held for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total loans
|
972
|
|
|
1,020
|
|
|
(48
|
)
|
|
1,469
|
|
|
1,536
|
|
|
(67
|
)
|
|
Nonaccrual loans
|
21
|
|
|
29
|
|
|
(8
|
)
|
|
21
|
|
|
32
|
|
|
(11
|
)
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total loans
|
171
|
|
|
201
|
|
|
(30
|
)
|
|
244
|
|
|
274
|
|
|
(30
|
)
|
|
Nonaccrual loans
|
129
|
|
|
159
|
|
|
(30
|
)
|
|
179
|
|
|
208
|
|
|
(29
|
)
|
|
|
|
|
|
|
|
Year ended December 31,
|
|
|||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|||||||||||||
(in millions)
|
Mortgage banking noninterest income
|
|
Net gains (losses) from trading activities
|
|
Other noninterest income
|
|
|
Mortgage banking noninterest income
|
|
Net gains (losses) from trading activities
|
|
Other noninterest income
|
|
|
Mortgage banking noninterest income
|
|
Net gains (losses) from trading activities
|
|
Other noninterest income
|
|
|
Mortgage loans held for sale
|
$
|
1,064
|
|
—
|
|
—
|
|
|
462
|
|
—
|
|
—
|
|
|
1,229
|
|
—
|
|
—
|
|
Loans held for sale
|
—
|
|
11
|
|
2
|
|
|
—
|
|
(1
|
)
|
1
|
|
|
—
|
|
45
|
|
2
|
|
|
Loans
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
(1
|
)
|
|
—
|
|
—
|
|
—
|
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Gains (losses) attributable to instrument-specific credit risk:
|
|
|
|
|
|
||||
Mortgage loans held for sale
|
$
|
2
|
|
|
(16
|
)
|
|
(12
|
)
|
Loans held for sale
|
13
|
|
|
—
|
|
|
45
|
|
|
Total
|
$
|
15
|
|
|
(16
|
)
|
|
33
|
|
|
Wells Fargo & Company
|
225
|
|
|
|
Estimated fair value
|
|
|||||||||||
(in millions)
|
Carrying amount
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks (1)
|
$
|
21,757
|
|
|
21,757
|
|
|
—
|
|
|
—
|
|
|
21,757
|
|
Interest-earning deposits with banks (1)
|
119,493
|
|
|
119,257
|
|
|
236
|
|
|
—
|
|
|
119,493
|
|
|
Federal funds sold and securities purchased under resale agreements (1)
|
102,140
|
|
|
—
|
|
|
102,140
|
|
|
—
|
|
|
102,140
|
|
|
Held-to-maturity debt securities
|
153,933
|
|
|
46,138
|
|
|
109,933
|
|
|
789
|
|
|
156,860
|
|
|
Mortgage loans held for sale
|
6,736
|
|
|
—
|
|
|
2,939
|
|
|
4,721
|
|
|
7,660
|
|
|
Loans held for sale
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
Loans, net (2)
|
933,042
|
|
|
—
|
|
|
54,125
|
|
|
891,714
|
|
|
945,839
|
|
|
Nonmarketable equity securities (cost method)
|
4,790
|
|
|
—
|
|
|
—
|
|
|
4,823
|
|
|
4,823
|
|
|
Total financial assets
|
$
|
1,341,896
|
|
|
187,152
|
|
|
269,378
|
|
|
902,047
|
|
|
1,358,577
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits (3)
|
$
|
118,849
|
|
|
—
|
|
|
87,279
|
|
|
31,858
|
|
|
119,137
|
|
Short-term borrowings
|
104,512
|
|
|
—
|
|
|
104,513
|
|
|
—
|
|
|
104,513
|
|
|
Long-term debt (4)
|
228,159
|
|
|
—
|
|
|
231,332
|
|
|
1,720
|
|
|
233,052
|
|
|
Total financial liabilities
|
$
|
451,520
|
|
|
—
|
|
|
423,124
|
|
|
33,578
|
|
|
456,702
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||
Cash and due from banks (1)
|
$
|
23,551
|
|
|
23,551
|
|
|
—
|
|
|
—
|
|
|
23,551
|
|
Interest-earning deposits with banks (1)
|
149,736
|
|
|
149,542
|
|
|
194
|
|
|
—
|
|
|
149,736
|
|
|
Federal funds sold and securities purchased under resale agreements (1)
|
80,207
|
|
|
—
|
|
|
80,207
|
|
|
—
|
|
|
80,207
|
|
|
Held-to-maturity debt securities
|
144,788
|
|
|
44,339
|
|
|
97,275
|
|
|
501
|
|
|
142,115
|
|
|
Mortgage loans held for sale
|
3,355
|
|
|
—
|
|
|
2,129
|
|
|
1,233
|
|
|
3,362
|
|
|
Loans held for sale
|
572
|
|
|
—
|
|
|
572
|
|
|
—
|
|
|
572
|
|
|
Loans, net (2)
|
923,703
|
|
|
—
|
|
|
45,190
|
|
|
872,725
|
|
|
917,915
|
|
|
Nonmarketable equity securities (cost method)
|
5,643
|
|
|
—
|
|
|
—
|
|
|
5,675
|
|
|
5,675
|
|
|
Total financial assets
|
$
|
1,331,555
|
|
|
217,432
|
|
|
225,567
|
|
|
880,134
|
|
|
1,323,133
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Deposits (3)
|
$
|
130,645
|
|
|
—
|
|
|
107,448
|
|
|
22,641
|
|
|
130,089
|
|
Short-term borrowings
|
105,787
|
|
|
—
|
|
|
105,789
|
|
|
—
|
|
|
105,789
|
|
|
Long-term debt (4)
|
229,008
|
|
|
—
|
|
|
225,904
|
|
|
2,230
|
|
|
228,134
|
|
|
Total financial liabilities
|
$
|
465,440
|
|
|
—
|
|
|
439,141
|
|
|
24,871
|
|
|
464,012
|
|
(1)
|
Amounts consist of financial instruments for which carrying value approximates fair value.
|
(2)
|
Excludes lease financing with a carrying amount of $19.5 billion and $19.7 billion at December 31, 2019 and 2018, respectively.
|
(3)
|
Excludes deposit liabilities with no defined or contractual maturity of $1.2 trillion at both December 31, 2019 and 2018.
|
(4)
|
Excludes capital lease obligations under capital leases of $32 million and $36 million at December 31, 2019 and 2018, respectively.
|
226
|
Wells Fargo & Company
|
|
Note 20: Preferred Stock
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||
|
Liquidation
preference
per share
|
|
|
Shares
authorized
and designated
|
|
|
Liquidation
preference
per share
|
|
|
Shares
authorized
and designated
|
|
||
DEP Shares
|
|
|
|
|
|
|
|
||||||
Dividend Equalization Preferred Shares (DEP)
|
$
|
10
|
|
|
97,000
|
|
|
$
|
10
|
|
|
97,000
|
|
Series I
|
|
|
|
|
|
|
|
||||||
Floating Class A Preferred Stock (1)
|
100,000
|
|
|
25,010
|
|
|
100,000
|
|
|
25,010
|
|
||
Series K
|
|
|
|
|
|
|
|
||||||
Floating Non-Cumulative Perpetual Class A Preferred Stock (2)(3)
|
1,000
|
|
|
3,500,000
|
|
|
1,000
|
|
|
3,500,000
|
|
||
Series L
|
|
|
|
|
|
|
|
||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock (4)
|
1,000
|
|
|
4,025,000
|
|
|
1,000
|
|
|
4,025,000
|
|
||
Series N
|
|
|
|
|
|
|
|
||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
30,000
|
|
|
25,000
|
|
|
30,000
|
|
||
Series O
|
|
|
|
|
|
|
|
||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
27,600
|
|
|
25,000
|
|
|
27,600
|
|
||
Series P
|
|
|
|
|
|
|
|
||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
26,400
|
|
|
25,000
|
|
|
26,400
|
|
||
Series Q
|
|
|
|
|
|
|
|
||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
69,000
|
|
|
25,000
|
|
|
69,000
|
|
||
Series R
|
|
|
|
|
|
|
|
||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
34,500
|
|
|
25,000
|
|
|
34,500
|
|
||
Series S
|
|
|
|
|
|
|
|
||||||
5.90% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
80,000
|
|
|
25,000
|
|
|
80,000
|
|
||
Series T
|
|
|
|
|
|
|
|
||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
32,200
|
|
|
25,000
|
|
|
32,200
|
|
||
Series U
|
|
|
|
|
|
|
|
||||||
5.875% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
80,000
|
|
|
25,000
|
|
|
80,000
|
|
||
Series V
|
|
|
|
|
|
|
|
||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
40,000
|
|
|
25,000
|
|
|
40,000
|
|
||
Series W
|
|
|
|
|
|
|
|
||||||
5.70% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
40,000
|
|
|
25,000
|
|
|
40,000
|
|
||
Series X
|
|
|
|
|
|
|
|
||||||
5.50% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
46,000
|
|
|
25,000
|
|
|
46,000
|
|
||
Series Y
|
|
|
|
|
|
|
|
||||||
5.625% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
27,600
|
|
|
25,000
|
|
|
27,600
|
|
||
ESOP
|
|
|
|
|
|
|
|
||||||
Cumulative Convertible Preferred Stock (5)
|
—
|
|
|
1,071,418
|
|
|
—
|
|
|
1,406,460
|
|
||
Total
|
|
|
9,251,728
|
|
|
|
|
9,586,770
|
|
(1)
|
Series I preferred stock issuance relates to trust preferred securities. See Note 10 (Securitizations and Variable Interest Entities) for additional information. This issuance has a floating interest rate that is the greater of three-month LIBOR plus 0.93% and 5.56975%.
|
(2)
|
Floating rate for Preferred Stock, Series K, is three-month LIBOR plus 3.77%.
|
(3)
|
In third quarter 2019, 1,550,000 shares of Preferred Stock, Series K, were redeemed.
|
(4)
|
Preferred Stock, Series L, may be converted at any time, at the option of the holder, into 6.3814 shares of our common stock, plus cash in lieu of fractional shares, subject to anti-dilution adjustments.
|
(5)
|
See the ESOP Cumulative Convertible Preferred Stock section in this Note for additional information about the liquidation preference for the ESOP Cumulative Convertible Preferred Stock.
|
|
Wells Fargo & Company
|
227
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||||||||||||||||||||
(in millions, except shares)
|
Shares issued and outstanding
|
|
|
Liquidation preference value
|
|
|
Carrying
value
|
|
|
Discount
|
|
|
Shares
issued and outstanding
|
|
|
Liquidation preference value
|
|
|
Carrying value
|
|
|
Discount
|
|
||
DEP Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend Equalization Preferred Shares (DEP)
|
96,546
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
96,546
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
Series I (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Floating Class A Preferred Stock
|
25,010
|
|
|
2,501
|
|
|
2,501
|
|
|
—
|
|
|
25,010
|
|
|
2,501
|
|
|
2,501
|
|
|
—
|
|
||
Series K (1)(3)(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Floating Non-Cumulative Perpetual Class A Preferred Stock
|
1,802,000
|
|
|
1,802
|
|
|
1,546
|
|
|
256
|
|
|
3,352,000
|
|
|
3,352
|
|
|
2,876
|
|
|
476
|
|
||
Series L (1)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock
|
3,967,995
|
|
|
3,968
|
|
|
3,200
|
|
|
768
|
|
|
3,968,000
|
|
|
3,968
|
|
|
3,200
|
|
|
768
|
|
||
Series N (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock
|
30,000
|
|
|
750
|
|
|
750
|
|
|
—
|
|
|
30,000
|
|
|
750
|
|
|
750
|
|
|
—
|
|
||
Series O (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock
|
26,000
|
|
|
650
|
|
|
650
|
|
|
—
|
|
|
26,000
|
|
|
650
|
|
|
650
|
|
|
—
|
|
||
Series P (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock
|
25,000
|
|
|
625
|
|
|
625
|
|
|
—
|
|
|
25,000
|
|
|
625
|
|
|
625
|
|
|
—
|
|
||
Series Q (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
69,000
|
|
|
1,725
|
|
|
1,725
|
|
|
—
|
|
|
69,000
|
|
|
1,725
|
|
|
1,725
|
|
|
—
|
|
||
Series R (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
33,600
|
|
|
840
|
|
|
840
|
|
|
—
|
|
|
33,600
|
|
|
840
|
|
|
840
|
|
|
—
|
|
||
Series S (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.90% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
80,000
|
|
|
2,000
|
|
|
2,000
|
|
|
—
|
|
|
80,000
|
|
|
2,000
|
|
|
2,000
|
|
|
—
|
|
||
Series T (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock
|
32,000
|
|
|
800
|
|
|
800
|
|
|
—
|
|
|
32,000
|
|
|
800
|
|
|
800
|
|
|
—
|
|
||
Series U (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.875% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock
|
80,000
|
|
|
2,000
|
|
|
2,000
|
|
|
—
|
|
|
80,000
|
|
|
2,000
|
|
|
2,000
|
|
|
—
|
|
||
Series V (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
6.00% Non-Cumulative Perpetual Class A Preferred Stock
|
40,000
|
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
|
40,000
|
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
||
Series W (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.70% Non-Cumulative Perpetual Class A Preferred Stock
|
40,000
|
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
|
40,000
|
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
||
Series X (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.50% Non-Cumulative Perpetual Class A Preferred Stock
|
46,000
|
|
|
1,150
|
|
|
1,150
|
|
|
—
|
|
|
46,000
|
|
|
1,150
|
|
|
1,150
|
|
|
—
|
|
||
Series Y (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
5.625% Non-Cumulative Perpetual Class A Preferred Stock
|
27,600
|
|
|
690
|
|
|
690
|
|
|
—
|
|
|
27,600
|
|
|
690
|
|
|
690
|
|
|
—
|
|
||
ESOP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cumulative Convertible Preferred Stock
|
1,071,418
|
|
|
1,072
|
|
|
1,072
|
|
|
—
|
|
|
1,406,460
|
|
|
1,407
|
|
|
1,407
|
|
|
—
|
|
||
Total
|
7,492,169
|
|
|
$
|
22,573
|
|
|
21,549
|
|
|
1,024
|
|
|
9,377,216
|
|
|
$
|
24,458
|
|
|
23,214
|
|
|
1,244
|
|
(1)
|
Preferred shares qualify as Tier 1 capital.
|
(2)
|
Floating rate for Preferred Stock, Series I, is the greater of three-month LIBOR plus 0.93% and 5.56975%.
|
(3)
|
Floating rate for Preferred Stock, Series K, is three-month LIBOR plus 3.77%.
|
(4)
|
In third quarter 2019, 1,550,000 shares of Preferred Stock, Series K, were redeemed.
|
(5)
|
Preferred Stock, Series L, may be converted at any time, at the option of the holder, into 6.3814 shares of our common stock, plus cash in lieu of fractional shares, subject to anti-dilution adjustments.
|
228
|
Wells Fargo & Company
|
|
|
Shares issued and outstanding
|
|
|
Carrying value
|
|
|
Adjustable dividend rate
|
|
||||||||||
|
Dec 31,
|
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
|
|
|
|||
(in millions, except shares)
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Minimum
|
|
|
Maximum
|
|
|
ESOP Preferred Stock
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
$1,000 liquidation preference per share
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018
|
254,945
|
|
|
336,945
|
|
|
$
|
255
|
|
|
337
|
|
|
7.00
|
%
|
|
8.00
|
%
|
2017
|
192,210
|
|
|
222,210
|
|
|
192
|
|
|
222
|
|
|
7.00
|
|
|
8.00
|
|
|
2016
|
197,450
|
|
|
233,835
|
|
|
198
|
|
|
234
|
|
|
9.30
|
|
|
10.30
|
|
|
2015
|
116,784
|
|
|
144,338
|
|
|
117
|
|
|
144
|
|
|
8.90
|
|
|
9.90
|
|
|
2014
|
136,151
|
|
|
174,151
|
|
|
136
|
|
|
174
|
|
|
8.70
|
|
|
9.70
|
|
|
2013
|
97,948
|
|
|
133,948
|
|
|
98
|
|
|
134
|
|
|
8.50
|
|
|
9.50
|
|
|
2012
|
49,134
|
|
|
77,634
|
|
|
49
|
|
|
78
|
|
|
10.00
|
|
|
11.00
|
|
|
2011
|
26,796
|
|
|
61,796
|
|
|
27
|
|
|
62
|
|
|
9.00
|
|
|
10.00
|
|
|
2010 (1)
|
—
|
|
|
21,603
|
|
|
—
|
|
|
22
|
|
|
9.50
|
|
|
10.50
|
|
|
Total ESOP Preferred Stock (2)
|
1,071,418
|
|
|
1,406,460
|
|
|
$
|
1,072
|
|
|
1,407
|
|
|
|
|
|
||
Unearned ESOP shares (3)
|
|
|
|
|
$
|
(1,143
|
)
|
|
(1,502
|
)
|
|
|
|
|
(1)
|
In April 2019, all of the 2010 ESOP Preferred Stock was converted into common stock.
|
(2)
|
At December 31, 2019 and 2018, additional paid-in capital included $71 million and $95 million, respectively, related to ESOP preferred stock.
|
(3)
|
We recorded a corresponding charge to unearned ESOP shares in connection with the issuance of the ESOP Preferred Stock. The unearned ESOP shares are reduced as shares of the ESOP Preferred Stock are committed to be released.
|
|
Wells Fargo & Company
|
229
|
Note 21: Common Stock and Stock Plans
|
|
Number of shares
|
|
Dividend reinvestment and common stock purchase plans
|
6,774,855
|
|
Director plans
|
375,293
|
|
Stock plans (1)
|
488,214,122
|
|
Convertible securities and warrants
|
65,835,437
|
|
Total shares reserved
|
561,199,707
|
|
Shares issued
|
5,481,811,474
|
|
Shares not reserved or issued
|
2,956,988,819
|
|
Total shares authorized
|
9,000,000,000
|
|
(1)
|
Includes employee restricted share rights, performance share awards, 401(k), and deferred compensation plans.
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
RSRs (1)
|
$
|
1,109
|
|
|
1,013
|
|
|
743
|
|
Performance shares
|
108
|
|
|
9
|
|
|
112
|
|
|
Stock options
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
Total stock incentive compensation expense
|
$
|
1,217
|
|
|
1,022
|
|
|
849
|
|
Related recognized tax benefit
|
$
|
301
|
|
|
252
|
|
|
320
|
|
(1)
|
In February 2018, a total of 11.9 million RSRs were granted to all eligible team members in the U.S., and eligible team members outside the U.S., referred to as broad-based RSRs.
|
|
Number
|
|
|
Weighted-
average
grant-date
fair value
|
|
|
Nonvested at January 1, 2019
|
45,572,498
|
|
|
$
|
54.85
|
|
Granted
|
22,743,879
|
|
|
49.32
|
|
|
Vested
|
(15,281,949
|
)
|
|
55.03
|
|
|
Canceled or forfeited
|
(2,118,967
|
)
|
|
55.37
|
|
|
Nonvested at December 31, 2019
|
50,915,461
|
|
|
52.30
|
|
|
|
|
|
|
230
|
Wells Fargo & Company
|
|
|
Number
|
|
|
Weighted- average
grant-date fair value (1)
|
|
|
Nonvested at January 1, 2019
|
5,984,686
|
|
|
$
|
49.91
|
|
Granted
|
2,320,530
|
|
|
49.26
|
|
|
Vested
|
(1,610,502
|
)
|
|
48.59
|
|
|
Canceled or forfeited
|
(190,501
|
)
|
|
56.48
|
|
|
Nonvested at December 31, 2019
|
6,504,213
|
|
|
49.81
|
|
|
|
|
|
|
(1)
|
Reflects approval date fair value for grants subject to variable accounting.
|
|
Number
|
|
|
Weighted-
average
exercise price
|
|
|
Weighted-
average
remaining contractual term (in yrs.)
|
|
Aggregate
intrinsic
value
(in millions)
|
|
||
Incentive compensation plans
|
|
|
|
|
|
|
|
|||||
Options outstanding as of December 31, 2018
|
8,343,157
|
|
|
$
|
13.46
|
|
|
|
|
|
||
Canceled or forfeited
|
(170,141
|
)
|
|
13.05
|
|
|
|
|
|
|||
Exercised
|
(8,112,456
|
)
|
|
13.34
|
|
|
|
|
|
|||
Options exercisable and outstanding as of December 31, 2019
|
60,560
|
|
|
30.69
|
|
|
0.3
|
|
$
|
1
|
|
|
Wells Fargo & Company
|
231
|
|
Shares outstanding
|
|
|||||||
|
December 31,
|
|
|||||||
(in millions, except shares)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Allocated shares (common)
|
138,978,383
|
|
|
138,182,911
|
|
|
124,670,717
|
|
|
Unreleased shares (preferred)
|
1,071,418
|
|
|
1,406,460
|
|
|
1,556,104
|
|
|
Fair value of unreleased ESOP preferred shares
|
$
|
1,072
|
|
|
1,407
|
|
|
1,556
|
|
|
Dividends paid
|
|
|||||||
|
Year ended December 31,
|
|
|||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Allocated shares (common)
|
$
|
233
|
|
|
213
|
|
|
195
|
|
Unreleased shares (preferred)
|
101
|
|
|
159
|
|
|
166
|
|
232
|
Wells Fargo & Company
|
|
Note 22: Revenue from Contracts with Customers
|
|
Year ended December 31, 2019
|
|
|||||||||||||
(in millions)
|
Community Banking
|
|
|
Wholesale Banking
|
|
|
Wealth and Investment Management
|
|
|
Other
|
|
|
Consolidated
Company |
|
|
Net interest income (1)
|
$
|
27,610
|
|
|
17,699
|
|
|
4,037
|
|
|
(2,115
|
)
|
|
47,231
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
2,823
|
|
|
1,974
|
|
|
16
|
|
|
(15
|
)
|
|
4,798
|
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
||||||
Brokerage advisory, commissions and other fees
|
1,931
|
|
|
292
|
|
|
8,946
|
|
|
(1,932
|
)
|
|
9,237
|
|
|
Trust and investment management
|
805
|
|
|
486
|
|
|
2,587
|
|
|
(840
|
)
|
|
3,038
|
|
|
Investment banking
|
(93
|
)
|
|
1,889
|
|
|
6
|
|
|
(5
|
)
|
|
1,797
|
|
|
Total trust and investment fees
|
2,643
|
|
|
2,667
|
|
|
11,539
|
|
|
(2,777
|
)
|
|
14,072
|
|
|
Card fees
|
3,655
|
|
|
359
|
|
|
6
|
|
|
(4
|
)
|
|
4,016
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
||||||
Lending related charges and fees (1)(2)
|
239
|
|
|
1,139
|
|
|
8
|
|
|
(7
|
)
|
|
1,379
|
|
|
Cash network fees
|
452
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
452
|
|
|
Commercial real estate brokerage commissions
|
—
|
|
|
358
|
|
|
—
|
|
|
—
|
|
|
358
|
|
|
Wire transfer and other remittance fees
|
274
|
|
|
196
|
|
|
8
|
|
|
(4
|
)
|
|
474
|
|
|
All other fees (1)
|
313
|
|
|
108
|
|
|
1
|
|
|
(1
|
)
|
|
421
|
|
|
Total other fees
|
1,278
|
|
|
1,801
|
|
|
17
|
|
|
(12
|
)
|
|
3,084
|
|
|
Mortgage banking (1)
|
2,307
|
|
|
412
|
|
|
(12
|
)
|
|
8
|
|
|
2,715
|
|
|
Insurance (1)
|
44
|
|
|
303
|
|
|
72
|
|
|
(41
|
)
|
|
378
|
|
|
Net gains (losses) from trading activities (1)
|
24
|
|
|
915
|
|
|
53
|
|
|
1
|
|
|
993
|
|
|
Net gains (losses) on debt securities (1)
|
51
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
140
|
|
|
Net gains (losses) from equity securities (1)
|
2,155
|
|
|
416
|
|
|
272
|
|
|
—
|
|
|
2,843
|
|
|
Lease income (1)
|
—
|
|
|
1,612
|
|
|
—
|
|
|
—
|
|
|
1,612
|
|
|
Other income of the segment (1)
|
2,726
|
|
|
(570
|
)
|
|
1,341
|
|
|
(316
|
)
|
|
3,181
|
|
|
Total noninterest income
|
17,706
|
|
|
9,978
|
|
|
13,304
|
|
|
(3,156
|
)
|
|
37,832
|
|
|
Revenue
|
$
|
45,316
|
|
|
27,677
|
|
|
17,341
|
|
|
(5,271
|
)
|
|
85,063
|
|
Year ended December 31, 2018
|
|
||||||||||||||
Net interest income (1)
|
$
|
29,219
|
|
|
18,690
|
|
|
4,441
|
|
|
(2,355
|
)
|
|
49,995
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
2,641
|
|
|
2,074
|
|
|
16
|
|
|
(15
|
)
|
|
4,716
|
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
||||||
Brokerage advisory, commissions and other fees
|
1,887
|
|
|
317
|
|
|
9,161
|
|
|
(1,929
|
)
|
|
9,436
|
|
|
Trust and investment management
|
910
|
|
|
445
|
|
|
2,893
|
|
|
(932
|
)
|
|
3,316
|
|
|
Investment banking
|
(35
|
)
|
|
1,783
|
|
|
9
|
|
|
—
|
|
|
1,757
|
|
|
Total trust and investment fees
|
2,762
|
|
|
2,545
|
|
|
12,063
|
|
|
(2,861
|
)
|
|
14,509
|
|
|
Card fees
|
3,543
|
|
|
362
|
|
|
6
|
|
|
(4
|
)
|
|
3,907
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
||||||
Lending related charges and fees (1)(2)
|
278
|
|
|
1,247
|
|
|
7
|
|
|
(6
|
)
|
|
1,526
|
|
|
Cash network fees
|
478
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
Commercial real estate brokerage commissions
|
—
|
|
|
468
|
|
|
—
|
|
|
—
|
|
|
468
|
|
|
Wire transfer and other remittance fees
|
264
|
|
|
209
|
|
|
8
|
|
|
(4
|
)
|
|
477
|
|
|
All other fees (1)
|
339
|
|
|
92
|
|
|
2
|
|
|
(1
|
)
|
|
432
|
|
|
Total other fees
|
1,359
|
|
|
2,019
|
|
|
17
|
|
|
(11
|
)
|
|
3,384
|
|
|
Mortgage banking (1)
|
2,659
|
|
|
362
|
|
|
(11
|
)
|
|
7
|
|
|
3,017
|
|
|
Insurance (1)
|
83
|
|
|
312
|
|
|
82
|
|
|
(48
|
)
|
|
429
|
|
|
Net gains (losses) from trading activities (1)
|
28
|
|
|
516
|
|
|
57
|
|
|
1
|
|
|
602
|
|
|
Net gains (losses) on debt securities (1)
|
(3
|
)
|
|
102
|
|
|
9
|
|
|
—
|
|
|
108
|
|
|
Net gains (losses) from equity securities (1)
|
1,505
|
|
|
293
|
|
|
(283
|
)
|
|
—
|
|
|
1,515
|
|
|
Lease income (1)
|
—
|
|
|
1,753
|
|
|
—
|
|
|
—
|
|
|
1,753
|
|
|
Other income of the segment (1)
|
3,117
|
|
|
(322
|
)
|
|
(21
|
)
|
|
(301
|
)
|
|
2,473
|
|
|
Total noninterest income
|
17,694
|
|
|
10,016
|
|
|
11,935
|
|
|
(3,232
|
)
|
|
36,413
|
|
|
Revenue
|
$
|
46,913
|
|
|
28,706
|
|
|
16,376
|
|
|
(5,587
|
)
|
|
86,408
|
|
|
Wells Fargo & Company
|
233
|
Year ended December 31, 2017
|
|
||||||||||||||
|
Community Banking
|
|
|
Wholesale Banking
|
|
|
Wealth and Investment Management
|
|
|
Other
|
|
|
Consolidated
Company |
|
|
Net interest income (1)
|
$
|
28,658
|
|
|
18,810
|
|
|
4,641
|
|
|
(2,552
|
)
|
|
49,557
|
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
2,909
|
|
|
2,201
|
|
|
17
|
|
|
(16
|
)
|
|
5,111
|
|
|
Trust and investment fees:
|
|
|
|
|
|
|
|
|
|
||||||
Brokerage advisory, commissions and other fees
|
1,830
|
|
|
304
|
|
|
9,072
|
|
|
(1,848
|
)
|
|
9,358
|
|
|
Trust and investment management
|
889
|
|
|
523
|
|
|
2,877
|
|
|
(917
|
)
|
|
3,372
|
|
|
Investment banking
|
(59
|
)
|
|
1,827
|
|
|
(2
|
)
|
|
(1
|
)
|
|
1,765
|
|
|
Total trust and investment fees
|
2,660
|
|
|
2,654
|
|
|
11,947
|
|
|
(2,766
|
)
|
|
14,495
|
|
|
Card fees
|
3,613
|
|
|
345
|
|
|
6
|
|
|
(4
|
)
|
|
3,960
|
|
|
Other fees:
|
|
|
|
|
|
|
|
|
|
||||||
Lending related charges and fees (1)(2)
|
311
|
|
|
1,257
|
|
|
8
|
|
|
(8
|
)
|
|
1,568
|
|
|
Cash network fees
|
498
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
506
|
|
|
Commercial real estate brokerage commissions
|
1
|
|
|
461
|
|
|
—
|
|
|
—
|
|
|
462
|
|
|
Wire transfer and other remittance fees
|
239
|
|
|
204
|
|
|
9
|
|
|
(4
|
)
|
|
448
|
|
|
All other fees (1)
|
448
|
|
|
124
|
|
|
1
|
|
|
—
|
|
|
573
|
|
|
Total other fees
|
1,497
|
|
|
2,054
|
|
|
18
|
|
|
(12
|
)
|
|
3,557
|
|
|
Mortgage banking (1)
|
3,895
|
|
|
458
|
|
|
(10
|
)
|
|
7
|
|
|
4,350
|
|
|
Insurance (1)
|
139
|
|
|
872
|
|
|
88
|
|
|
(50
|
)
|
|
1,049
|
|
|
Net gains (losses) from trading activities (1)
|
(251
|
)
|
|
701
|
|
|
92
|
|
|
—
|
|
|
542
|
|
|
Net gains (losses) on debt securities (1)
|
709
|
|
|
(232
|
)
|
|
2
|
|
|
—
|
|
|
479
|
|
|
Net gains (losses) from equity securities (1)
|
1,455
|
|
|
116
|
|
|
208
|
|
|
—
|
|
|
1,779
|
|
|
Lease income (1)
|
—
|
|
|
1,907
|
|
|
—
|
|
|
—
|
|
|
1,907
|
|
|
Other income of the segment (1)
|
1,734
|
|
|
114
|
|
|
63
|
|
|
(308
|
)
|
|
1,603
|
|
|
Total noninterest income
|
18,360
|
|
|
11,190
|
|
|
12,431
|
|
|
(3,149
|
)
|
|
38,832
|
|
|
Revenue
|
$
|
47,018
|
|
|
30,000
|
|
|
17,072
|
|
|
(5,701
|
)
|
|
88,389
|
|
(1)
|
Most of our revenue is not within the scope of Accounting Standards Update (ASU) 2014-09 – Revenue from Contracts with Customers, and additional details are included in other notes to our financial statements. The scope explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, securities, and derivatives.
|
(2)
|
Represents combined amount of previously reported “Charges and fees on loans” and “Letters of credit fees.”
|
|
|
|
|
Year ended December 31,
|
|
||||||||||||||||||||||||||
|
Community
Banking
|
|
Wholesale
Banking
|
|
Wealth and
Investment
Management
|
|
Other
|
|
Consolidated
Company
|
|
|||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
Overdraft fees
|
$
|
1,965
|
|
1,776
|
|
1,941
|
|
5
|
|
5
|
|
6
|
|
1
|
|
1
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1,971
|
|
1,782
|
|
1,948
|
|
Account charges
|
858
|
|
865
|
|
968
|
|
1,969
|
|
2,069
|
|
2,195
|
|
15
|
|
15
|
|
16
|
|
(15
|
)
|
(15
|
)
|
(16
|
)
|
2,827
|
|
2,934
|
|
3,163
|
|
|
Service charges on deposit accounts
|
$
|
2,823
|
|
2,641
|
|
2,909
|
|
1,974
|
|
2,074
|
|
2,201
|
|
16
|
|
16
|
|
17
|
|
(15
|
)
|
(15
|
)
|
(16
|
)
|
4,798
|
|
4,716
|
|
5,111
|
|
234
|
Wells Fargo & Company
|
|
|
|
|
|
Year ended December 31,
|
|
||||||||||||||||||||||||||
|
Community
Banking
|
|
Wholesale
Banking
|
|
Wealth and
Investment
Management
|
|
Other
|
|
Consolidated
Company
|
|
|||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
Asset-based revenue (1)
|
$
|
1,478
|
|
1,482
|
|
1,372
|
|
—
|
|
1
|
|
1
|
|
6,777
|
|
6,899
|
|
6,630
|
|
(1,480
|
)
|
(1,484
|
)
|
(1,371
|
)
|
6,775
|
|
6,898
|
|
6,632
|
|
Transactional revenue
|
383
|
|
340
|
|
382
|
|
26
|
|
70
|
|
40
|
|
1,534
|
|
1,618
|
|
1,802
|
|
(383
|
)
|
(380
|
)
|
(400
|
)
|
1,560
|
|
1,648
|
|
1,824
|
|
|
Other revenue
|
70
|
|
65
|
|
76
|
|
266
|
|
246
|
|
263
|
|
635
|
|
644
|
|
640
|
|
(69
|
)
|
(65
|
)
|
(77
|
)
|
902
|
|
890
|
|
902
|
|
|
Brokerage advisory, commissions and
other fees
|
$
|
1,931
|
|
1,887
|
|
1,830
|
|
292
|
|
317
|
|
304
|
|
8,946
|
|
9,161
|
|
9,072
|
|
(1,932
|
)
|
(1,929
|
)
|
(1,848
|
)
|
9,237
|
|
9,436
|
|
9,358
|
|
(1)
|
We earned trailing commissions of $1.2 billion for the year ended December 31, 2019 and $1.3 billion for both of the years ended December 31, 2018 and 2017, respectively.
|
|
|
|
|
Year ended December 31,
|
|
||||||||||||||||||||||||||
|
Community
Banking
|
|
Wholesale
Banking
|
|
Wealth and
Investment
Management
|
|
Other
|
|
Consolidated
Company
|
|
|||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
Investment management fees
|
$
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
1,990
|
|
2,087
|
|
2,053
|
|
—
|
|
—
|
|
—
|
|
1,990
|
|
2,087
|
|
2,054
|
|
Trust fees
|
804
|
|
908
|
|
887
|
|
338
|
|
329
|
|
421
|
|
557
|
|
728
|
|
757
|
|
(840
|
)
|
(932
|
)
|
(916
|
)
|
859
|
|
1,033
|
|
1,149
|
|
|
Other revenue
|
1
|
|
2
|
|
1
|
|
148
|
|
116
|
|
102
|
|
40
|
|
78
|
|
67
|
|
—
|
|
—
|
|
(1
|
)
|
189
|
|
196
|
|
169
|
|
|
Trust and investment management fees
|
$
|
805
|
|
910
|
|
889
|
|
486
|
|
445
|
|
523
|
|
2,587
|
|
2,893
|
|
2,877
|
|
(840
|
)
|
(932
|
)
|
(917
|
)
|
3,038
|
|
3,316
|
|
3,372
|
|
|
|
|
|
Year ended December 31,
|
|
||||||||||||||||||||||||||
|
Community
Banking
|
|
Wholesale
Banking
|
|
Wealth and
Investment
Management
|
|
Other
|
|
Consolidated
Company
|
|
|||||||||||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
Credit card interchange and network revenues (1)
|
$
|
809
|
|
792
|
|
944
|
|
359
|
|
361
|
|
345
|
|
6
|
|
6
|
|
6
|
|
(4
|
)
|
(4
|
)
|
(4
|
)
|
1,170
|
|
1,155
|
|
1,291
|
|
Debit card interchange and network revenues
|
2,148
|
|
2,053
|
|
1,964
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,148
|
|
2,053
|
|
1,964
|
|
|
Late fees, cash advance fees, balance transfer fees, and annual fees
|
698
|
|
698
|
|
705
|
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
698
|
|
699
|
|
705
|
|
|
Card fees
|
$
|
3,655
|
|
3,543
|
|
3,613
|
|
359
|
|
362
|
|
345
|
|
6
|
|
6
|
|
6
|
|
(4
|
)
|
(4
|
)
|
(4
|
)
|
4,016
|
|
3,907
|
|
3,960
|
|
(1)
|
The cost of credit card rewards and rebates of $1.5 billion, $1.4 billion and $1.2 billion for the years ended December 31, 2019, 2018 and 2017, respectively, are presented net against the related revenues.
|
|
Wells Fargo & Company
|
235
|
Note 23: Employee Benefits and Other Expenses
|
236
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
|
Pension benefits
|
|
|
|
|
Pension benefits
|
|
|
|
|||||||||
(in millions)
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Benefit obligation at beginning of year
|
$
|
10,129
|
|
|
557
|
|
|
555
|
|
|
11,110
|
|
|
621
|
|
|
611
|
|
Service cost
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
Interest cost
|
419
|
|
|
22
|
|
|
23
|
|
|
392
|
|
|
21
|
|
|
21
|
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
Actuarial loss (gain)
|
1,229
|
|
|
49
|
|
|
(11
|
)
|
|
(674
|
)
|
|
(27
|
)
|
|
(33
|
)
|
|
Benefits paid
|
(672
|
)
|
|
(57
|
)
|
|
(86
|
)
|
|
(719
|
)
|
|
(57
|
)
|
|
(92
|
)
|
|
Medicare Part D subsidy
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Settlements, Curtailments, and Amendments
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
Foreign exchange impact
|
2
|
|
|
1
|
|
|
—
|
|
|
(5
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
Benefit obligation at end of year
|
11,116
|
|
|
572
|
|
|
525
|
|
|
10,129
|
|
|
557
|
|
|
555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Fair value of plan assets at beginning of year
|
9,477
|
|
|
—
|
|
|
511
|
|
|
10,667
|
|
|
—
|
|
|
565
|
|
|
Actual return on plan assets
|
1,758
|
|
|
—
|
|
|
64
|
|
|
(478
|
)
|
|
—
|
|
|
(17
|
)
|
|
Employer contribution
|
199
|
|
|
57
|
|
|
7
|
|
|
10
|
|
|
57
|
|
|
5
|
|
|
Plan participants’ contributions
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
48
|
|
|
Benefits paid
|
(672
|
)
|
|
(57
|
)
|
|
(86
|
)
|
|
(719
|
)
|
|
(57
|
)
|
|
(92
|
)
|
|
Medicare Part D subsidy
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
Settlement
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Foreign exchange impact
|
2
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
Fair value of plan assets at end of year
|
10,763
|
|
|
—
|
|
|
540
|
|
|
9,477
|
|
|
—
|
|
|
511
|
|
|
Funded status at end of year
|
$
|
(353
|
)
|
|
(572
|
)
|
|
15
|
|
|
(652
|
)
|
|
(557
|
)
|
|
(44
|
)
|
Amounts recognized on the balance sheet at end of year:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Assets
|
$
|
1
|
|
|
—
|
|
|
44
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Liabilities
|
(354
|
)
|
|
(572
|
)
|
|
(29
|
)
|
|
(653
|
)
|
|
(557
|
)
|
|
(44
|
)
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||
(in millions)
|
Pension Benefits
|
|
|
Other Benefits
|
|
|
Pension Benefits
|
|
|
Other Benefits
|
|
|
Projected benefit obligation
|
$
|
11,653
|
|
|
N/A
|
|
|
10,640
|
|
|
N/A
|
|
Accumulated benefit obligation
|
11,634
|
|
|
29
|
|
|
10,627
|
|
|
555
|
|
|
Fair value of plan assets
|
10,727
|
|
|
—
|
|
|
9,429
|
|
|
511
|
|
|
Wells Fargo & Company
|
237
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|||||||||||||||||||
|
Pension benefits
|
|
|
|
|
Pension benefits
|
|
|
|
|
Pension benefits
|
|
|
|
|||||||||||||
(in millions)
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Service cost
|
$
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
Interest cost (1)
|
419
|
|
|
22
|
|
|
23
|
|
|
392
|
|
|
21
|
|
|
21
|
|
|
412
|
|
|
24
|
|
|
28
|
|
|
Expected return on plan assets (1)
|
(567
|
)
|
|
—
|
|
|
(28
|
)
|
|
(641
|
)
|
|
—
|
|
|
(31
|
)
|
|
(652
|
)
|
|
—
|
|
|
(30
|
)
|
|
Amortization of net actuarial loss (gain) (1)
|
148
|
|
|
10
|
|
|
(17
|
)
|
|
131
|
|
|
14
|
|
|
(18
|
)
|
|
148
|
|
|
11
|
|
|
(9
|
)
|
|
Amortization of prior service credit (1)
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
Settlement loss (1)
|
—
|
|
|
2
|
|
|
—
|
|
|
134
|
|
|
2
|
|
|
—
|
|
|
7
|
|
|
6
|
|
|
—
|
|
|
Net periodic benefit cost
|
11
|
|
|
34
|
|
|
(32
|
)
|
|
27
|
|
|
37
|
|
|
(38
|
)
|
|
(80
|
)
|
|
41
|
|
|
(21
|
)
|
|
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net actuarial loss (gain)
|
38
|
|
|
49
|
|
|
(47
|
)
|
|
445
|
|
|
(27
|
)
|
|
15
|
|
|
33
|
|
|
46
|
|
|
(128
|
)
|
|
Amortization of net actuarial gain (loss)
|
(148
|
)
|
|
(10
|
)
|
|
17
|
|
|
(131
|
)
|
|
(14
|
)
|
|
18
|
|
|
(148
|
)
|
|
(11
|
)
|
|
9
|
|
|
Prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
Settlement
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(134
|
)
|
|
(2
|
)
|
|
—
|
|
|
(8
|
)
|
|
(6
|
)
|
|
—
|
|
|
Total recognized in other comprehensive income
|
(110
|
)
|
|
37
|
|
|
(20
|
)
|
|
181
|
|
|
(43
|
)
|
|
43
|
|
|
(122
|
)
|
|
29
|
|
|
(109
|
)
|
|
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
(99
|
)
|
|
71
|
|
|
(52
|
)
|
|
208
|
|
|
(6
|
)
|
|
5
|
|
|
(202
|
)
|
|
70
|
|
|
(130
|
)
|
(1)
|
Effective January 1, 2018, we adopted ASU 2017-07 – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Accordingly, 2019 and 2018 balances are reported in other noninterest expense on the consolidated statement of income. For 2017, these balances were reported in employee benefits.
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|||||||||||||
|
Pension benefits
|
|
|
|
|
Pension benefits
|
|
|
|
|||||||||
(in millions)
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other
benefits
|
|
|
Net actuarial loss (gain)
|
$
|
3,226
|
|
|
186
|
|
|
(357
|
)
|
|
3,336
|
|
|
149
|
|
|
(327
|
)
|
Net prior service cost (credit)
|
1
|
|
|
—
|
|
|
(146
|
)
|
|
1
|
|
|
—
|
|
|
(156
|
)
|
|
Total
|
$
|
3,227
|
|
|
186
|
|
|
(503
|
)
|
|
3,337
|
|
|
149
|
|
|
(483
|
)
|
238
|
Wells Fargo & Company
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|||||||||
|
Pension benefits
|
|
|
|
Pension benefits
|
|
|
|||||
|
Qualified
|
|
|
Non-
qualified
|
|
Other
benefits
|
|
Qualified
|
|
Non-
qualified
|
|
Other
benefits
|
Discount rate
|
3.21
|
%
|
|
3.03
|
|
3.10
|
|
4.30
|
|
4.20
|
|
4.24
|
Interest crediting rate
|
2.70
|
|
|
1.35
|
|
N/A
|
|
3.22
|
|
2.18
|
|
N/A
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||
|
Pension benefits
|
|
|
|
Pension benefits
|
|
|
|
Pension benefits
|
|
|
|||||||
|
Qualified
|
|
|
Non-
qualified
|
|
Other
benefits
|
|
Qualified
|
|
Non-
qualified
|
|
Other
benefits
|
|
Qualified
|
|
Non-
qualified
|
|
Other
benefits
|
Discount rate (1)
|
4.30
|
%
|
|
4.10
|
|
4.24
|
|
3.65
|
|
3.65
|
|
3.54
|
|
3.98
|
|
3.93
|
|
4.00
|
Interest crediting rate (1)
|
3.22
|
|
|
2.05
|
|
N/A
|
|
2.74
|
|
1.68
|
|
N/A
|
|
2.92
|
|
1.85
|
|
N/A
|
Expected return on plan assets
|
6.24
|
|
|
N/A
|
|
5.75
|
|
6.24
|
|
N/A
|
|
5.75
|
|
6.70
|
|
N/A
|
|
5.75
|
(1)
|
Includes the impact of interim re-measurements as applicable.
|
|
Pension benefits
|
|
|
|
|||||
(in millions)
|
Qualified
|
|
|
Non-
qualified
|
|
|
Other Benefits
|
|
|
Year ended December 31,
|
|
|
|
|
|
||||
2020
|
$
|
826
|
|
|
50
|
|
|
42
|
|
2021
|
811
|
|
|
48
|
|
|
42
|
|
|
2022
|
797
|
|
|
45
|
|
|
41
|
|
|
2023
|
738
|
|
|
44
|
|
|
40
|
|
|
2024
|
720
|
|
|
42
|
|
|
38
|
|
|
2025-2029
|
3,391
|
|
|
187
|
|
|
167
|
|
|
Wells Fargo & Company
|
239
|
|
Carrying value at year end
|
|
|||||||||||||||||||||||
|
Pension plan assets
|
|
|
Other benefits plan assets
|
|
||||||||||||||||||||
(in millions)
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
Total
|
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
3
|
|
|
287
|
|
|
—
|
|
|
290
|
|
|
53
|
|
|
145
|
|
|
—
|
|
|
198
|
|
|
Long duration fixed income (1)
|
821
|
|
|
5,259
|
|
|
—
|
|
|
6,080
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Intermediate (core) fixed income (2)
|
—
|
|
|
167
|
|
|
—
|
|
|
167
|
|
|
—
|
|
|
177
|
|
|
—
|
|
|
177
|
|
||
High-yield fixed income
|
—
|
|
|
217
|
|
|
—
|
|
|
217
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
International fixed income
|
33
|
|
|
97
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Domestic large-cap stocks (3)
|
700
|
|
|
290
|
|
|
—
|
|
|
990
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
73
|
|
||
Domestic mid-cap stocks
|
210
|
|
|
113
|
|
|
—
|
|
|
323
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
||
Domestic small-cap stocks
|
201
|
|
|
9
|
|
|
—
|
|
|
210
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
||
Global stocks (4)
|
92
|
|
|
374
|
|
|
—
|
|
|
466
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
International stocks (5)
|
567
|
|
|
120
|
|
|
—
|
|
|
687
|
|
|
12
|
|
|
22
|
|
|
—
|
|
|
34
|
|
||
Emerging market stocks
|
—
|
|
|
249
|
|
|
—
|
|
|
249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Real estate
|
141
|
|
|
35
|
|
|
7
|
|
|
183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Hedge funds/absolute return
|
68
|
|
|
50
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Other
|
57
|
|
|
48
|
|
|
9
|
|
|
114
|
|
|
4
|
|
|
—
|
|
|
24
|
|
|
28
|
|
||
Plan investments - excluding investments at NAV
|
$
|
2,893
|
|
|
7,315
|
|
|
16
|
|
|
10,224
|
|
|
69
|
|
|
447
|
|
|
24
|
|
|
540
|
|
|
Investments at NAV (6)
|
|
|
|
|
|
|
478
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Net receivables
|
|
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Total plan assets
|
|
|
|
|
|
|
$
|
10,763
|
|
|
|
|
|
|
|
|
540
|
|
|||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2
|
|
|
284
|
|
|
—
|
|
|
286
|
|
|
69
|
|
|
22
|
|
|
—
|
|
|
91
|
|
|
Long duration fixed income (1)
|
902
|
|
|
4,414
|
|
|
—
|
|
|
5,316
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Intermediate (core) fixed income (2)
|
—
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
183
|
|
|
—
|
|
|
183
|
|
||
High-yield fixed income
|
—
|
|
|
114
|
|
|
—
|
|
|
114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
International fixed income
|
55
|
|
|
186
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Domestic large-cap stocks (3)
|
582
|
|
|
238
|
|
|
—
|
|
|
820
|
|
|
—
|
|
|
115
|
|
|
—
|
|
|
115
|
|
||
Domestic mid-cap stocks
|
167
|
|
|
89
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||
Domestic small-cap stocks
|
141
|
|
|
7
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||
Global stocks (4)
|
72
|
|
|
357
|
|
|
—
|
|
|
429
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
International stocks (5)
|
449
|
|
|
110
|
|
|
—
|
|
|
559
|
|
|
9
|
|
|
40
|
|
|
—
|
|
|
49
|
|
||
Emerging market stocks
|
—
|
|
|
205
|
|
|
—
|
|
|
205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Real estate
|
148
|
|
|
33
|
|
|
14
|
|
|
195
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Hedge funds/absolute return
|
63
|
|
|
32
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Other
|
34
|
|
|
44
|
|
|
8
|
|
|
86
|
|
|
4
|
|
|
—
|
|
|
24
|
|
|
28
|
|
||
Plan investments - excluding investments at NAV
|
$
|
2,615
|
|
|
6,231
|
|
|
22
|
|
|
8,868
|
|
|
82
|
|
|
405
|
|
|
24
|
|
|
511
|
|
|
Investments at NAV (6)
|
|
|
|
|
|
|
566
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Net receivables
|
|
|
|
|
|
|
43
|
|
|
|
|
|
|
|
|
—
|
|
||||||||
Total plan assets
|
|
|
|
|
|
|
$
|
9,477
|
|
|
|
|
|
|
|
|
511
|
|
(1)
|
This category includes a diversified mix of assets, which are being managed in accordance with a duration target of approximately 10 years and an emphasis on corporate credit bonds combined with investments in U.S. Treasury securities and other U.S. agency and non-agency bonds.
|
(2)
|
This category includes assets that are intermediate duration, investment grade bonds held in investment strategies benchmarked to the Bloomberg Barclays Capital U.S. Aggregate Bond Index, including U.S. Treasury securities, agency and non-agency asset-backed bonds and corporate bonds.
|
(3)
|
This category covers a broad range of investment styles, including active, enhanced index and passive approaches, as well as style characteristics of value, core and growth emphasized strategies. Assets in this category are currently diversified across eight unique investment strategies with no single investment manager strategy representing more than 2.0% of total plan assets.
|
(4)
|
This category consists of five unique investment strategies providing exposure to broadly diversified, global equity investments, which generally have an allocation of 40-60% in U.S. domiciled equities and an equivalent allocation range in non-U.S. equities, with no single strategy representing more than 1.5% of total Plan assets.
|
(5)
|
This category includes assets diversified across four unique investment strategies providing exposure to companies in developed market, non-U.S. countries with no single strategy representing more than 2.5% of total plan assets.
|
(6)
|
Consists of certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
|
240
|
Wells Fargo & Company
|
|
|
Balance beginning
of year
|
|
|
Gains (losses)
|
|
|
Purchases,
sales
and
settlements (net)
|
|
|
Transfers
Into/
(Out of)
Level 3
|
|
|
Balance
end of
year
|
|
||||
(in millions)
|
|
Realized
|
|
|
Unrealized (1)
|
|
|
|
|
|||||||||
Quarter ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pension plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate
|
$
|
14
|
|
|
1
|
|
|
1
|
|
|
(9
|
)
|
|
—
|
|
|
7
|
|
Other
|
8
|
|
|
—
|
|
|
2
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
Total pension plan assets
|
$
|
22
|
|
|
1
|
|
|
3
|
|
|
(10
|
)
|
|
—
|
|
|
16
|
|
Other benefits plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
|
$
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Total other benefit plan assets
|
$
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Quarter ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pension plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Real estate
|
$
|
20
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
14
|
|
Other
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
Total pension plan assets
|
$
|
28
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
22
|
|
Other benefits plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
|
$
|
23
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
Total other benefit plan assets
|
$
|
23
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
(1)
|
All unrealized gains (losses) relate to instruments held at period end.
|
|
Wells Fargo & Company
|
241
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Operating losses
|
$
|
4,321
|
|
|
3,124
|
|
|
5,492
|
|
Outside professional services
|
3,198
|
|
|
3,306
|
|
|
3,813
|
|
|
Contract services (1)
|
2,489
|
|
|
2,192
|
|
|
1,638
|
|
|
Leases (2)
|
1,155
|
|
|
1,334
|
|
|
1,351
|
|
|
Advertising and promotion
|
1,076
|
|
|
857
|
|
|
614
|
|
|
Outside data processing
|
673
|
|
|
660
|
|
|
891
|
|
|
Other
|
3,840
|
|
|
4,129
|
|
|
3,789
|
|
|
Total other noninterest expense
|
$
|
16,752
|
|
|
15,602
|
|
|
17,588
|
|
(1)
|
The amount for 2017 has been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.
|
(2)
|
Represents expenses for assets we lease to customers.
|
242
|
Wells Fargo & Company
|
|
Note 24: Income Taxes
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Current:
|
|
|
|
|
|
||||
Federal
|
$
|
5,244
|
|
|
2,382
|
|
|
3,507
|
|
State and local
|
2,005
|
|
|
1,140
|
|
|
561
|
|
|
Non-U.S.
|
154
|
|
|
170
|
|
|
183
|
|
|
Total current
|
7,403
|
|
|
3,692
|
|
|
4,251
|
|
|
Deferred:
|
|
|
|
|
|
||||
Federal
|
(2,374
|
)
|
|
1,706
|
|
|
156
|
|
|
State and local
|
(863
|
)
|
|
236
|
|
|
564
|
|
|
Non-U.S.
|
(9
|
)
|
|
28
|
|
|
(54
|
)
|
|
Total deferred
|
(3,246
|
)
|
|
1,970
|
|
|
666
|
|
|
Total
|
$
|
4,157
|
|
|
5,662
|
|
|
4,917
|
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Deferred tax assets
|
|
|
|
|||
Allowance for credit losses
|
$
|
2,587
|
|
|
2,644
|
|
Deferred compensation and employee benefits
|
2,969
|
|
|
2,893
|
|
|
Accrued expenses
|
874
|
|
|
815
|
|
|
PCI loans
|
69
|
|
|
467
|
|
|
Basis difference in debt securities
|
690
|
|
|
98
|
|
|
Net unrealized losses on debt securities
|
—
|
|
|
1,022
|
|
|
Net operating loss and tax credit carry forwards
|
363
|
|
|
366
|
|
|
Other
|
1,207
|
|
|
1,272
|
|
|
Total deferred tax assets
|
8,759
|
|
|
9,577
|
|
|
Deferred tax assets valuation allowance
|
(306
|
)
|
|
(315
|
)
|
|
Deferred tax liabilities
|
|
|
|
|||
Mortgage servicing rights
|
(3,080
|
)
|
|
(3,475
|
)
|
|
Leasing
|
(4,413
|
)
|
|
(4,271
|
)
|
|
Basis difference in investments
|
(1,626
|
)
|
|
(1,301
|
)
|
|
Mark to market, net
|
(4,146
|
)
|
|
(7,252
|
)
|
|
Intangible assets
|
(511
|
)
|
|
(427
|
)
|
|
Net unrealized gains on debt securities
|
(504
|
)
|
|
—
|
|
|
Insurance reserves
|
(561
|
)
|
|
(696
|
)
|
|
Other
|
(890
|
)
|
|
(831
|
)
|
|
Total deferred tax liabilities
|
(15,731
|
)
|
|
(18,253
|
)
|
|
Net deferred tax liability (2)
|
$
|
(7,278
|
)
|
|
(8,991
|
)
|
(1)
|
Prior period amounts have been revised to conform with the current period presentation.
|
(2)
|
The net deferred tax liability is included in accrued expenses and other liabilities.
|
243
|
Wells Fargo & Company
|
|
|
December 31,
|
|
||||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||||||||
(in millions)
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|||
Statutory federal income tax expense and rate
|
$
|
4,978
|
|
|
21.0
|
%
|
|
$
|
5,892
|
|
|
21.0
|
%
|
|
$
|
9,485
|
|
|
35.0
|
%
|
Change in tax rate resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State and local taxes on income, net of federal income tax benefit
|
896
|
|
|
3.8
|
|
|
1,076
|
|
|
3.9
|
|
|
926
|
|
|
3.4
|
|
|||
Tax-exempt interest
|
(460
|
)
|
|
(2.0
|
)
|
|
(494
|
)
|
|
(1.8
|
)
|
|
(812
|
)
|
|
(3.0
|
)
|
|||
Tax credits
|
(1,715
|
)
|
|
(7.2
|
)
|
|
(1,537
|
)
|
|
(5.5
|
)
|
|
(1,419
|
)
|
|
(5.2
|
)
|
|||
Non-deductible accruals
|
653
|
|
|
2.7
|
|
|
236
|
|
|
0.8
|
|
|
1,320
|
|
|
4.9
|
|
|||
Tax reform
|
—
|
|
|
—
|
|
|
164
|
|
|
0.6
|
|
|
(3,713
|
)
|
|
(13.7
|
)
|
|||
Other
|
(195
|
)
|
|
(0.8
|
)
|
|
325
|
|
|
1.2
|
|
|
(870
|
)
|
|
(3.3
|
)
|
|||
Effective income tax expense and rate
|
$
|
4,157
|
|
|
17.5
|
%
|
|
$
|
5,662
|
|
|
20.2
|
%
|
|
$
|
4,917
|
|
|
18.1
|
%
|
|
Year ended
December 31,
|
|
||||
(in millions)
|
2019
|
|
|
2018
|
|
|
Balance at beginning of year
|
$
|
5,750
|
|
|
5,167
|
|
Additions:
|
|
|
|
|||
For tax positions related to the current year
|
123
|
|
|
393
|
|
|
For tax positions related to prior years
|
91
|
|
|
503
|
|
|
Reductions:
|
|
|
|
|||
For tax positions related to prior years
|
(378
|
)
|
|
(262
|
)
|
|
Lapse of statute of limitations
|
(5
|
)
|
|
(7
|
)
|
|
Settlements with tax authorities
|
(123
|
)
|
|
(44
|
)
|
|
Balance at end of year
|
$
|
5,458
|
|
|
5,750
|
|
244
|
Wells Fargo & Company
|
|
Note 25: Earnings and Dividends Per Common Share
|
|
|
Year ended December 31,
|
|
|||||||
(in millions, except per share amounts)
|
2019
|
|
|
2018
|
|
|
2017
|
|
||
Wells Fargo net income
|
$
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
|
Less: Preferred stock dividends and other (1)
|
1,611
|
|
|
1,704
|
|
|
1,629
|
|
||
Wells Fargo net income applicable to common stock (numerator)
|
$
|
17,938
|
|
|
20,689
|
|
|
20,554
|
|
|
Earnings per common share
|
|
|
|
|
|
|||||
Average common shares outstanding (denominator)
|
4,393.1
|
|
|
4,799.7
|
|
|
4,964.6
|
|
||
Per share
|
$
|
4.08
|
|
|
4.31
|
|
|
4.14
|
|
|
Diluted earnings per common share
|
|
|
|
|
|
|||||
Average common shares outstanding
|
4,393.1
|
|
|
4,799.7
|
|
|
4,964.6
|
|
||
Add:
|
Stock options (2)
|
0.8
|
|
|
8.0
|
|
|
17.1
|
|
|
|
Restricted share rights (2)
|
31.5
|
|
|
26.3
|
|
|
24.7
|
|
|
|
Warrants (2)
|
—
|
|
|
4.4
|
|
|
10.9
|
|
|
Diluted average common shares outstanding (denominator)
|
4,425.4
|
|
|
4,838.4
|
|
|
5,017.3
|
|
||
Per share
|
$
|
4.05
|
|
|
4.28
|
|
|
4.10
|
|
(1)
|
The years ended December 31, 2019 and December 31, 2018, includes $220 million and $155 million, respectively, as a result of eliminating the discount on our Series K and Series J Preferred Stock. The Series K Preferred Stock was partially redeemed on September 16, 2019, and the Series J Preferred stock was redeemed on September 17, 2018.
|
(2)
|
Calculated using the treasury stock method.
|
|
Weighted-average shares
|
|
||||||
|
Year ended December 31,
|
|
||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
Convertible Preferred Stock, Series L (1)
|
25.3
|
|
|
25.3
|
|
|
25.3
|
|
Stock options (2)
|
—
|
|
|
0.3
|
|
|
1.9
|
|
(1)
|
Calculated using the if-converted method.
|
(2)
|
Calculated using the treasury stock method.
|
|
Year ended December 31,
|
|
|||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Per common share
|
$
|
1.92
|
|
|
1.64
|
|
|
1.54
|
|
|
Wells Fargo & Company
|
245
|
Note 26: Other Comprehensive Income
|
|
Year ended December 31,
|
|
||||||||||||||||||||||||||
|
2019
|
|
|
2018
|
|
|
2017
|
|
||||||||||||||||||||
(in millions)
|
Before
tax
|
|
|
Tax
effect
|
|
|
Net of
tax
|
|
|
Before
tax
|
|
|
Tax
effect
|
|
|
Net of
tax
|
|
|
Before
tax
|
|
|
Tax
effect
|
|
|
Net of
tax
|
|
||
Debt securities (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net unrealized gains (losses) arising during the period
|
$
|
5,439
|
|
|
(1,337
|
)
|
|
4,102
|
|
|
(4,493
|
)
|
|
1,100
|
|
|
(3,393
|
)
|
|
2,719
|
|
|
(1,056
|
)
|
|
1,663
|
|
|
Reclassification of net (gains) losses to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income on debt securities (2)
|
263
|
|
|
(65
|
)
|
|
198
|
|
|
357
|
|
|
(88
|
)
|
|
269
|
|
|
198
|
|
|
(75
|
)
|
|
123
|
|
||
Net gains on debt securities
|
(140
|
)
|
|
34
|
|
|
(106
|
)
|
|
(108
|
)
|
|
27
|
|
|
(81
|
)
|
|
(479
|
)
|
|
181
|
|
|
(298
|
)
|
||
Net gains from equity securities (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(456
|
)
|
|
172
|
|
|
(284
|
)
|
||
Other noninterest income
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Subtotal reclassifications to net income
|
122
|
|
|
(31
|
)
|
|
91
|
|
|
248
|
|
|
(61
|
)
|
|
187
|
|
|
(737
|
)
|
|
278
|
|
|
(459
|
)
|
||
Net change
|
5,561
|
|
|
(1,368
|
)
|
|
4,193
|
|
|
(4,245
|
)
|
|
1,039
|
|
|
(3,206
|
)
|
|
1,982
|
|
|
(778
|
)
|
|
1,204
|
|
||
Derivatives and hedging activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Change in fair value of excluded components on fair value hedges (4)
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|
(254
|
)
|
|
63
|
|
|
(191
|
)
|
|
(253
|
)
|
|
95
|
|
|
(158
|
)
|
||
Cash Flow Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net unrealized losses arising during the period on cash flow hedges
|
(21
|
)
|
|
5
|
|
|
(16
|
)
|
|
(278
|
)
|
|
67
|
|
|
(211
|
)
|
|
(287
|
)
|
|
108
|
|
|
(179
|
)
|
||
Reclassification of net (gains) losses to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest income on loans
|
291
|
|
|
(72
|
)
|
|
219
|
|
|
292
|
|
|
(72
|
)
|
|
220
|
|
|
(551
|
)
|
|
208
|
|
|
(343
|
)
|
||
Interest expense on long-term debt
|
8
|
|
|
(2
|
)
|
|
6
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
8
|
|
|
(3
|
)
|
|
5
|
|
||
Subtotal reclassifications to net income
|
299
|
|
|
(74
|
)
|
|
225
|
|
|
294
|
|
|
(72
|
)
|
|
222
|
|
|
(543
|
)
|
|
205
|
|
|
(338
|
)
|
||
Net change
|
275
|
|
|
(68
|
)
|
|
207
|
|
|
(238
|
)
|
|
58
|
|
|
(180
|
)
|
|
(1,083
|
)
|
|
408
|
|
|
(675
|
)
|
||
Defined benefit plans adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net actuarial and prior service gains (losses) arising during the period
|
(40
|
)
|
|
10
|
|
|
(30
|
)
|
|
(434
|
)
|
|
106
|
|
|
(328
|
)
|
|
49
|
|
|
(12
|
)
|
|
37
|
|
||
Reclassification of amounts to noninterest expense and employee benefits (5):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amortization of net actuarial loss
|
141
|
|
|
(35
|
)
|
|
106
|
|
|
127
|
|
|
(31
|
)
|
|
96
|
|
|
150
|
|
|
(57
|
)
|
|
93
|
|
||
Settlements and other
|
(8
|
)
|
|
5
|
|
|
(3
|
)
|
|
126
|
|
|
(29
|
)
|
|
97
|
|
|
3
|
|
|
2
|
|
|
5
|
|
||
Subtotal reclassifications to noninterest expense and employee benefits
|
133
|
|
|
(30
|
)
|
|
103
|
|
|
253
|
|
|
(60
|
)
|
|
193
|
|
|
153
|
|
|
(55
|
)
|
|
98
|
|
||
Net change
|
93
|
|
|
(20
|
)
|
|
73
|
|
|
(181
|
)
|
|
46
|
|
|
(135
|
)
|
|
202
|
|
|
(67
|
)
|
|
135
|
|
||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net unrealized gains (losses) arising during the period
|
73
|
|
|
(2
|
)
|
|
71
|
|
|
(156
|
)
|
|
1
|
|
|
(155
|
)
|
|
96
|
|
|
3
|
|
|
99
|
|
||
Net change
|
73
|
|
|
(2
|
)
|
|
71
|
|
|
(156
|
)
|
|
1
|
|
|
(155
|
)
|
|
96
|
|
|
3
|
|
|
99
|
|
||
Other comprehensive income (loss)
|
$
|
6,002
|
|
|
(1,458
|
)
|
|
4,544
|
|
|
(4,820
|
)
|
|
1,144
|
|
|
(3,676
|
)
|
|
1,197
|
|
|
(434
|
)
|
|
763
|
|
|
Less: Other comprehensive loss from noncontrolling interests, net of tax
|
|
|
|
|
—
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
(62
|
)
|
||||||||
Wells Fargo other comprehensive income (loss), net of tax
|
|
|
|
|
$
|
4,544
|
|
|
|
|
|
|
(3,674
|
)
|
|
|
|
|
|
825
|
|
(1)
|
The year ended December 31, 2017, includes net unrealized gains (losses) arising during the period from equity securities of $81 million and reclassification of net (gains) losses to net income related to equity securities of $(456) million. In connection with our adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the years ended December 31, 2018, and December 31, 2019, reflect net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
|
(2)
|
Represents net unrealized gains and losses amortized over the remaining lives of securities that were transferred from the available-for-sale portfolio to the held-to-maturity portfolio.
|
(3)
|
Net gains from equity securities is presented for table presentation purposes. After our adoption of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2018, this line will not contain balances as realized and unrealized gains and losses on marketable equity investments will be recorded in earnings.
|
(4)
|
Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income.
|
(5)
|
Effective January 1, 2018, we adopted ASU 2017-07 – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Accordingly, 2018 and 2019 balances are reclassified to other noninterest expense on the consolidated statement of income. For 2017 these balances were reclassified to employee benefits.
|
|
Wells Fargo & Company
|
246
|
(in millions)
|
Debt
securities (1)
|
|
|
Fair value hedges (2)
|
|
|
Cash flow hedges (3)
|
|
|
Defined
benefit
plans
adjustments
|
|
|
Foreign
currency
translation
adjustments
|
|
|
Cumulative
other
comprehensive
income (loss)
|
|
|
Balance, December 31, 2016
|
$
|
(1,099
|
)
|
|
—
|
|
|
89
|
|
|
(1,943
|
)
|
|
(184
|
)
|
|
(3,137
|
)
|
Transition adjustment (4)
|
—
|
|
|
169
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
168
|
|
|
Balance, January 1, 2017
|
(1,099
|
)
|
|
169
|
|
|
88
|
|
|
(1,943
|
)
|
|
(184
|
)
|
|
(2,969
|
)
|
|
Net unrealized gains (losses) arising during the period
|
1,663
|
|
|
(158
|
)
|
|
(179
|
)
|
|
37
|
|
|
99
|
|
|
1,462
|
|
|
Amounts reclassified from accumulated other comprehensive income
|
(459
|
)
|
|
—
|
|
|
(338
|
)
|
|
98
|
|
|
—
|
|
|
(699
|
)
|
|
Net change
|
1,204
|
|
|
(158
|
)
|
|
(517
|
)
|
|
135
|
|
|
99
|
|
|
763
|
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
(66
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
(62
|
)
|
|
Balance, December 31, 2017
|
171
|
|
|
11
|
|
|
(429
|
)
|
|
(1,808
|
)
|
|
(89
|
)
|
|
(2,144
|
)
|
|
Transition adjustment (5)
|
(118
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118
|
)
|
|
Balance, January 1, 2018
|
53
|
|
|
11
|
|
|
(429
|
)
|
|
(1,808
|
)
|
|
(89
|
)
|
|
(2,262
|
)
|
|
Reclassification of certain tax effects to retained earnings (6)
|
31
|
|
|
2
|
|
|
(89
|
)
|
|
(353
|
)
|
|
9
|
|
|
(400
|
)
|
|
Net unrealized losses arising during the period
|
(3,393
|
)
|
|
(191
|
)
|
|
(211
|
)
|
|
(328
|
)
|
|
(155
|
)
|
|
(4,278
|
)
|
|
Amounts reclassified from accumulated other comprehensive income
|
187
|
|
|
—
|
|
|
222
|
|
|
193
|
|
|
—
|
|
|
602
|
|
|
Net change
|
(3,175
|
)
|
|
(189
|
)
|
|
(78
|
)
|
|
(488
|
)
|
|
(146
|
)
|
|
(4,076
|
)
|
|
Less: Other comprehensive loss from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
Balance, December 31, 2018
|
(3,122
|
)
|
|
(178
|
)
|
|
(507
|
)
|
|
(2,296
|
)
|
|
(233
|
)
|
|
(6,336
|
)
|
|
Transition adjustment (7)
|
481
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
481
|
|
|
Balance, January 1, 2019
|
(2,641
|
)
|
|
(178
|
)
|
|
(507
|
)
|
|
(2,296
|
)
|
|
(233
|
)
|
|
(5,855
|
)
|
|
Net unrealized gains (losses) arising during the period
|
4,102
|
|
|
(2
|
)
|
|
(16
|
)
|
|
(30
|
)
|
|
71
|
|
|
4,125
|
|
|
Amounts reclassified from accumulated other comprehensive income
|
91
|
|
|
—
|
|
|
225
|
|
|
103
|
|
|
—
|
|
|
419
|
|
|
Net change
|
4,193
|
|
|
(2
|
)
|
|
209
|
|
|
73
|
|
|
71
|
|
|
4,544
|
|
|
Less: Other comprehensive income (loss) from noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Balance, December 31, 2019
|
$
|
1,552
|
|
|
(180
|
)
|
|
(298
|
)
|
|
(2,223
|
)
|
|
(162
|
)
|
|
(1,311
|
)
|
(1)
|
The year ended December 31, 2017, includes net unrealized gains (losses) arising during the period from equity securities of $81 million and reclassification of net (gains) losses to net income related to equity securities of $(456) million. In connection with our adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the years ended December 31, 2018, and December 31, 2019, reflect net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
|
(2)
|
Substantially all of the amounts for fair value hedges are foreign exchange contracts.
|
(3)
|
Substantially all of the amounts for cash flow hedges are foreign exchange contracts for the year-ended December 31, 2019, and interest rate contracts for the years ended December 31, 2018 and 2017.
|
(4)
|
Transition adjustment relates to our adoption of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
|
(5)
|
The transition adjustment relates to our adoption of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
|
(6)
|
Represents the reclassification from other comprehensive income to retained earnings as a result of our adoption of ASU 2018-02 – Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in third quarter 2018.
|
(7)
|
The transition adjustment relates to our adoption of ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. See Note 1 (Summary of Significant Accounting Policies) for more information.
|
|
Wells Fargo & Company
|
247
|
Note 27: Operating Segments
|
248
|
Wells Fargo & Company
|
|
(income/expense in millions, average balances in billions)
|
Community
Banking
|
|
|
Wholesale
Banking
|
|
|
Wealth and Investment Management
|
|
|
Other (1)
|
|
|
Consolidated
Company
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income (2)
|
$
|
27,610
|
|
|
17,699
|
|
|
4,037
|
|
|
(2,115
|
)
|
|
47,231
|
|
Provision (reversal of provision) for credit losses
|
2,319
|
|
|
378
|
|
|
5
|
|
|
(15
|
)
|
|
2,687
|
|
|
Noninterest income
|
17,706
|
|
|
9,978
|
|
|
13,304
|
|
|
(3,156
|
)
|
|
37,832
|
|
|
Noninterest expense
|
32,696
|
|
|
15,352
|
|
|
13,709
|
|
|
(3,579
|
)
|
|
58,178
|
|
|
Income (loss) before income tax expense (benefit)
|
10,301
|
|
|
11,947
|
|
|
3,627
|
|
|
(1,677
|
)
|
|
24,198
|
|
|
Income tax expense (benefit) (3)
|
2,426
|
|
|
1,246
|
|
|
904
|
|
|
(419
|
)
|
|
4,157
|
|
|
Net income (loss) before noncontrolling interests
|
7,875
|
|
|
10,701
|
|
|
2,723
|
|
|
(1,258
|
)
|
|
20,041
|
|
|
Less: Net income (loss) from noncontrolling interests
|
477
|
|
|
5
|
|
|
10
|
|
|
—
|
|
|
492
|
|
|
Net income (loss)
|
$
|
7,398
|
|
|
10,696
|
|
|
2,713
|
|
|
(1,258
|
)
|
|
19,549
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income (2)
|
$
|
29,219
|
|
|
18,690
|
|
|
4,441
|
|
|
(2,355
|
)
|
|
49,995
|
|
Provision (reversal of provision) for credit losses
|
1,783
|
|
|
(58
|
)
|
|
(5
|
)
|
|
24
|
|
|
1,744
|
|
|
Noninterest income
|
17,694
|
|
|
10,016
|
|
|
11,935
|
|
|
(3,232
|
)
|
|
36,413
|
|
|
Noninterest expense
|
30,491
|
|
|
16,157
|
|
|
12,938
|
|
|
(3,460
|
)
|
|
56,126
|
|
|
Income (loss) before income tax expense (benefit)
|
14,639
|
|
|
12,607
|
|
|
3,443
|
|
|
(2,151
|
)
|
|
28,538
|
|
|
Income tax expense (benefit) (3)
|
3,784
|
|
|
1,555
|
|
|
861
|
|
|
(538
|
)
|
|
5,662
|
|
|
Net income (loss) before noncontrolling interests
|
10,855
|
|
|
11,052
|
|
|
2,582
|
|
|
(1,613
|
)
|
|
22,876
|
|
|
Less: Net income (loss) from noncontrolling interests
|
461
|
|
|
20
|
|
|
2
|
|
|
—
|
|
|
483
|
|
|
Net income (loss)
|
$
|
10,394
|
|
|
11,032
|
|
|
2,580
|
|
|
(1,613
|
)
|
|
22,393
|
|
2017
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income (2)
|
$
|
28,658
|
|
|
18,810
|
|
|
4,641
|
|
|
(2,552
|
)
|
|
49,557
|
|
Provision (reversal of provision) for credit losses
|
2,555
|
|
|
(19
|
)
|
|
(5
|
)
|
|
(3
|
)
|
|
2,528
|
|
|
Noninterest income
|
18,360
|
|
|
11,190
|
|
|
12,431
|
|
|
(3,149
|
)
|
|
38,832
|
|
|
Noninterest expense
|
32,615
|
|
|
16,624
|
|
|
12,623
|
|
|
(3,378
|
)
|
|
58,484
|
|
|
Income (loss) before income tax expense (benefit)
|
11,848
|
|
|
13,395
|
|
|
4,454
|
|
|
(2,320
|
)
|
|
27,377
|
|
|
Income tax expense (benefit) (3)
|
634
|
|
|
3,496
|
|
|
1,668
|
|
|
(881
|
)
|
|
4,917
|
|
|
Net income (loss) before noncontrolling interests
|
11,214
|
|
|
9,899
|
|
|
2,786
|
|
|
(1,439
|
)
|
|
22,460
|
|
|
Less: Net income (loss) from noncontrolling interests
|
276
|
|
|
(15
|
)
|
|
16
|
|
|
—
|
|
|
277
|
|
|
Net income (loss)
|
$
|
10,938
|
|
|
9,914
|
|
|
2,770
|
|
|
(1,439
|
)
|
|
22,183
|
|
2019
|
|
|
|
|
|
|
|
|
|
||||||
Average loans
|
$
|
459.4
|
|
|
475.3
|
|
|
75.6
|
|
|
(59.3
|
)
|
|
951.0
|
|
Average assets
|
1,028.4
|
|
|
861.0
|
|
|
84.3
|
|
|
(60.3
|
)
|
|
1,913.4
|
|
|
Average deposits
|
782.0
|
|
|
422.5
|
|
|
146.0
|
|
|
(64.2
|
)
|
|
1,286.3
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
||||||
Average loans
|
463.7
|
|
|
465.7
|
|
|
74.6
|
|
|
(58.8
|
)
|
|
945.2
|
|
|
Average assets
|
1,034.1
|
|
|
830.5
|
|
|
83.9
|
|
|
(59.6
|
)
|
|
1,888.9
|
|
|
Average deposits
|
757.2
|
|
|
423.7
|
|
|
165.0
|
|
|
(70.0
|
)
|
|
1,275.9
|
|
(1)
|
Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for WIM customers served through Community Banking distribution channels.
|
(2)
|
Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
|
(3)
|
Income tax expense (benefit) for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $1.8 billion, $1.6 billion and $1.4 billion for the years ended December 31, 2019, 2018 and 2017 respectively.
|
|
Wells Fargo & Company
|
249
|
Note 28: Parent-Only Financial Statements
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Income
|
|
|
|
|
|
||||
Dividends from subsidiaries (1)
|
$
|
21,930
|
|
|
22,427
|
|
|
20,746
|
|
Interest income from subsidiaries
|
3,356
|
|
|
3,298
|
|
|
1,984
|
|
|
Other interest income
|
43
|
|
|
49
|
|
|
146
|
|
|
Other income
|
(162
|
)
|
|
(424
|
)
|
|
1,238
|
|
|
Total income
|
25,167
|
|
|
25,350
|
|
|
24,114
|
|
|
Expense
|
|
|
|
|
|
||||
Interest expense:
|
|
|
|
|
|
||||
Indebtedness to nonbank subsidiaries
|
664
|
|
|
644
|
|
|
189
|
|
|
Short-term borrowings
|
—
|
|
|
2
|
|
|
—
|
|
|
Long-term debt
|
4,931
|
|
|
4,541
|
|
|
3,595
|
|
|
Other
|
2
|
|
|
3
|
|
|
5
|
|
|
Noninterest expense
|
1,327
|
|
|
286
|
|
|
1,888
|
|
|
Total expense
|
6,924
|
|
|
5,476
|
|
|
5,677
|
|
|
Income before income tax benefit and
|
|
|
|
|
|
||||
equity in undistributed income of subsidiaries
|
18,243
|
|
|
19,874
|
|
|
18,437
|
|
|
Income tax benefit
|
(945
|
)
|
|
(544
|
)
|
|
(319
|
)
|
|
Equity in undistributed income of subsidiaries
|
361
|
|
|
1,975
|
|
|
3,427
|
|
|
Net income
|
$
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
(1)
|
Includes dividends paid from indirect bank subsidiaries of $21.8 billion, $20.8 billion and $17.9 billion in 2019, 2018 and 2017, respectively.
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Net income
|
$
|
19,549
|
|
|
22,393
|
|
|
22,183
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||
Debt securities (1)
|
(45
|
)
|
|
(12
|
)
|
|
94
|
|
|
Derivatives and hedging activities
|
(12
|
)
|
|
(198
|
)
|
|
(158
|
)
|
|
Defined benefit plans adjustment
|
75
|
|
|
(132
|
)
|
|
118
|
|
|
Equity in other comprehensive income (loss) of subsidiaries
|
4,526
|
|
|
(3,332
|
)
|
|
771
|
|
|
Other comprehensive income (loss), net of tax:
|
4,544
|
|
|
(3,674
|
)
|
|
825
|
|
|
Total comprehensive income
|
$
|
24,093
|
|
|
18,719
|
|
|
23,008
|
|
(1)
|
The year ended December 31, 2017 includes net unrealized gains arising during the period from equity securities of $3 million and reclassification of net (gains) to net income related to equity securities of $(21) million. In connection with our adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the years ended December 31, 2019 and 2018, reflect net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
|
|
Wells Fargo & Company
|
250
|
|
Dec 31,
|
|
|
Dec 31,
|
|
|
(in millions)
|
2019
|
|
|
2018
|
|
|
Assets
|
|
|
|
|||
Cash, cash equivalents, and restricted cash due from:
|
|
|
|
|||
Subsidiary banks
|
$
|
14,948
|
|
|
16,301
|
|
Nonaffiliates
|
1
|
|
|
—
|
|
|
Debt securities:
|
|
|
|
|||
Available-for-sale, at fair value
|
1
|
|
|
1
|
|
|
Loans to nonbank subsidiaries
|
145,383
|
|
|
139,163
|
|
|
Investments in subsidiaries (1)
|
208,076
|
|
|
202,695
|
|
|
Equity securities
|
1,007
|
|
|
2,164
|
|
|
Other assets
|
4,608
|
|
|
4,639
|
|
|
Total assets
|
$
|
374,024
|
|
|
364,963
|
|
Liabilities and equity
|
|
|
|
|||
Accrued expenses and other liabilities
|
$
|
8,050
|
|
|
6,986
|
|
Long-term debt
|
152,628
|
|
|
135,079
|
|
|
Indebtedness to nonbank subsidiaries
|
26,200
|
|
|
26,732
|
|
|
Total liabilities
|
186,878
|
|
|
168,797
|
|
|
Stockholders’ equity
|
187,146
|
|
|
196,166
|
|
|
Total liabilities and equity
|
$
|
374,024
|
|
|
364,963
|
|
(1)
|
The years ended December 31, 2019, and December 31, 2018, include indirect ownership of bank subsidiaries with equity of $170.4 billion and $167.6 billion, respectively.
|
|
Wells Fargo & Company
|
251
|
|
Year ended December 31,
|
|
|||||||
(in millions)
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
$
|
27,601
|
|
|
19,024
|
|
|
22,233
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||
Available-for-sale debt securities:
|
|
|
|
|
|
||||
Proceeds from sales:
|
|
|
|
|
|
||||
Subsidiary banks
|
—
|
|
|
—
|
|
|
8,658
|
|
|
Nonaffiliates
|
—
|
|
|
—
|
|
|
8,824
|
|
|
Prepayments and maturities:
|
|
|
|
|
|
||||
Subsidiary banks
|
—
|
|
|
—
|
|
|
10,250
|
|
|
Purchases:
|
|
|
|
|
|
||||
Subsidiary banks
|
—
|
|
|
—
|
|
|
(3,900
|
)
|
|
Equity securities, not held for trading:
|
|
|
|
|
|
||||
Proceeds from sales and capital returns
|
326
|
|
|
355
|
|
|
743
|
|
|
Purchases
|
(1,052
|
)
|
|
(220
|
)
|
|
(215
|
)
|
|
Loans:
|
|
|
|
|
|
||||
Net advances to subsidiaries
|
(3
|
)
|
|
(7
|
)
|
|
(35,876
|
)
|
|
Capital notes and term loans made to subsidiaries
|
(5,286
|
)
|
|
(2,441
|
)
|
|
(73,729
|
)
|
|
Principal collected on notes/loans made to subsidiaries
|
1,703
|
|
|
756
|
|
|
69,286
|
|
|
Net decrease (increase) in investment in subsidiaries
|
(384
|
)
|
|
2,407
|
|
|
(2,029
|
)
|
|
Other, net
|
22
|
|
|
109
|
|
|
113
|
|
|
Net cash provided (used) by investing activities
|
(4,674
|
)
|
|
959
|
|
|
(17,875
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
||||
Net increase (decrease) in short-term borrowings and indebtedness to subsidiaries
|
(636
|
)
|
|
12,467
|
|
|
(8,685
|
)
|
|
Long-term debt:
|
|
|
|
|
|
||||
Proceeds from issuance
|
20,369
|
|
|
1,876
|
|
|
22,217
|
|
|
Repayment
|
(8,143
|
)
|
|
(9,162
|
)
|
|
(13,709
|
)
|
|
Preferred stock:
|
|
|
|
|
|
||||
Proceeds from issuance
|
—
|
|
|
—
|
|
|
677
|
|
|
Redeemed
|
(1,550
|
)
|
|
(2,150
|
)
|
|
—
|
|
|
Cash dividends paid
|
(1,391
|
)
|
|
(1,622
|
)
|
|
(1,629
|
)
|
|
Common stock:
|
|
|
|
|
|
||||
Proceeds from issuance
|
380
|
|
|
632
|
|
|
1,211
|
|
|
Stock tendered for payment of withholding taxes
|
(302
|
)
|
|
(331
|
)
|
|
(393
|
)
|
|
Repurchased
|
(24,533
|
)
|
|
(20,633
|
)
|
|
(9,908
|
)
|
|
Cash dividends paid
|
(8,198
|
)
|
|
(7,692
|
)
|
|
(7,480
|
)
|
|
Other, net
|
(275
|
)
|
|
(248
|
)
|
|
(138
|
)
|
|
Net cash used by financing activities
|
(24,279
|
)
|
|
(26,863
|
)
|
|
(17,837
|
)
|
|
Net change in cash, cash equivalents, and restricted cash
|
(1,352
|
)
|
|
(6,880
|
)
|
|
(13,479
|
)
|
|
Cash, cash equivalents, and restricted cash at beginning of year
|
16,301
|
|
|
23,181
|
|
|
36,660
|
|
|
Cash, cash equivalents, and restricted cash at end of year
|
$
|
14,949
|
|
|
16,301
|
|
|
23,181
|
|
252
|
Wells Fargo & Company
|
|
Note 29: Regulatory and Agency Capital Requirements
|
|
Wells Fargo & Company
|
|
Wells Fargo Bank, N.A.
|
|||||||||||||||||||||||||
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
|
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
|
|||||||||||||
(in millions, except ratios)
|
Advanced Approach
|
|
|
Standardized
Approach
|
|
|
|
Advanced Approach
|
|
|
Standardized
Approach |
|
|
|
Advanced Approach
|
|
|
Standardized
Approach |
|
|
|
Advanced Approach
|
|
|
Standardized
Approach |
|
|
|
Regulatory capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common equity tier 1
|
$
|
138,760
|
|
|
138,760
|
|
|
|
146,363
|
|
|
146,363
|
|
|
|
145,149
|
|
|
145,149
|
|
|
|
142,685
|
|
|
142,685
|
|
|
Tier 1
|
158,949
|
|
|
158,949
|
|
|
|
167,866
|
|
|
167,866
|
|
|
|
145,149
|
|
|
145,149
|
|
|
|
142,685
|
|
|
142,685
|
|
|
|
Total
|
188,333
|
|
|
196,223
|
|
|
|
198,798
|
|
|
207,041
|
|
|
|
158,615
|
|
|
166,056
|
|
|
|
155,558
|
|
|
163,380
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Risk-weighted assets
|
1,230,066
|
|
|
1,245,853
|
|
|
|
1,177,350
|
|
|
1,247,210
|
|
|
|
1,110,379
|
|
|
1,152,791
|
|
|
|
1,058,653
|
|
|
1,154,182
|
|
|
|
Adjusted average assets (1)
|
1,913,297
|
|
|
1,913,297
|
|
|
|
1,850,299
|
|
|
1,850,299
|
|
|
|
1,695,807
|
|
|
1,695,807
|
|
|
|
1,652,009
|
|
|
1,652,009
|
|
|
|
Regulatory capital ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Common equity tier 1 capital
|
11.28
|
%
|
|
11.14
|
|
*
|
|
12.43
|
|
|
11.74
|
|
*
|
|
13.07
|
|
|
12.59
|
|
*
|
|
13.48
|
|
|
12.36
|
|
*
|
|
Tier 1 capital
|
12.92
|
|
|
12.76
|
|
*
|
|
14.26
|
|
|
13.46
|
|
*
|
|
13.07
|
|
|
12.59
|
|
*
|
|
13.48
|
|
|
12.36
|
|
*
|
|
Total capital
|
15.31
|
|
*
|
15.75
|
|
|
|
16.89
|
|
|
16.60
|
|
*
|
|
14.28
|
|
*
|
14.40
|
|
|
|
14.69
|
|
|
14.16
|
|
*
|
|
Tier 1 leverage (1)
|
8.31
|
|
|
8.31
|
|
|
|
9.07
|
|
|
9.07
|
|
|
|
8.56
|
|
|
8.56
|
|
|
|
8.64
|
|
|
8.64
|
|
|
|
|
Wells Fargo & Company
|
|
|
|
Wells Fargo Bank, N.A.
|
|
|
|||||||||||||||||||||
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
|
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
|
|||||||||||||
Supplementary leverage: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total leverage exposure
|
$
|
2,247,729
|
|
|
|
2,174,564
|
|
|
|
2,006,180
|
|
|
|
1,957,276
|
|
|
||||||||||||
Supplementary leverage ratio
|
7.07
|
%
|
|
|
7.72
|
|
|
|
7.24
|
|
|
|
7.29
|
|
|
(1)
|
The leverage ratio consists of Tier 1 capital divided by total average assets, excluding goodwill and certain other items.
|
(2)
|
The supplementary leverage ratio (SLR) consists of Tier 1 capital divided by total leverage exposure. Total leverage exposure consists of total average assets, less goodwill and other permitted Tier 1 capital deductions (net of deferred tax liabilities), plus certain off-balance sheet exposures.
|
|
Wells Fargo & Company
|
|
Wells Fargo Bank, N.A.
|
|||||
|
December 31, 2019
|
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
Regulatory capital ratios:
|
|
|
|
|
|
|
|
|
Common equity tier 1 capital
|
9.000
|
%
|
|
7.875
|
|
7.000
|
|
6.375
|
Tier 1 capital
|
10.500
|
|
|
9.375
|
|
8.500
|
|
7.875
|
Total capital
|
12.500
|
|
|
11.375
|
|
10.500
|
|
9.875
|
Tier 1 leverage
|
4.000
|
|
|
4.000
|
|
4.000
|
|
4.000
|
Supplementary leverage (2)
|
5.000
|
|
|
5.000
|
|
6.000
|
|
6.000
|
(1)
|
At December 31, 2019, under transition requirements, the CET1, tier 1 and total capital minimum ratio requirements for Wells Fargo & Company include a capital conservation buffer of 2.500% and a global systemically important bank (G-SIB) surcharge of 2.000%. Only the 2.500% capital conservation buffer applies to the Bank at December 31, 2019.
|
(2)
|
Wells Fargo & Company is required to maintain a SLR of at least 5.000% (comprised of a 3.000% minimum requirement plus a supplementary leverage buffer of 2.000%) to avoid restrictions on capital distributions and discretionary bonus payments. The Bank is required to maintain a SLR of at least 6.000% to be considered well-capitalized under applicable regulatory capital adequacy guidelines.
|
|
Wells Fargo & Company
|
253
|
Report of Independent Registered Public Accounting Firm
|
254
|
Wells Fargo & Company
|
|
|
Wells Fargo & Company
|
255
|
Quarterly Financial Data
|
||||||||||||||||||||||||
Condensed Consolidated Statement of Income - Quarterly (Unaudited)
|
||||||||||||||||||||||||
|
2019
|
|
|
2018
|
|
|||||||||||||||||||
|
Quarter ended
|
|
|
Quarter ended
|
|
|||||||||||||||||||
(in millions, except per share amounts)
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Jun 30,
|
|
|
Mar 31,
|
|
|
Interest income
|
$
|
15,595
|
|
|
16,499
|
|
|
16,986
|
|
|
17,003
|
|
|
16,921
|
|
|
16,364
|
|
|
16,015
|
|
|
15,347
|
|
Interest expense
|
4,395
|
|
|
4,874
|
|
|
4,891
|
|
|
4,692
|
|
|
4,277
|
|
|
3,792
|
|
|
3,474
|
|
|
3,109
|
|
|
Net interest income
|
11,200
|
|
|
11,625
|
|
|
12,095
|
|
|
12,311
|
|
|
12,644
|
|
|
12,572
|
|
|
12,541
|
|
|
12,238
|
|
|
Provision for credit losses
|
644
|
|
|
695
|
|
|
503
|
|
|
845
|
|
|
521
|
|
|
580
|
|
|
452
|
|
|
191
|
|
|
Net interest income after provision for credit losses
|
10,556
|
|
|
10,930
|
|
|
11,592
|
|
|
11,466
|
|
|
12,123
|
|
|
11,992
|
|
|
12,089
|
|
|
12,047
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Service charges on deposit accounts
|
1,279
|
|
|
1,219
|
|
|
1,206
|
|
|
1,094
|
|
|
1,176
|
|
|
1,204
|
|
|
1,163
|
|
|
1,173
|
|
|
Trust and investment fees
|
3,572
|
|
|
3,559
|
|
|
3,568
|
|
|
3,373
|
|
|
3,520
|
|
|
3,631
|
|
|
3,675
|
|
|
3,683
|
|
|
Card fees
|
1,020
|
|
|
1,027
|
|
|
1,025
|
|
|
944
|
|
|
981
|
|
|
1,017
|
|
|
1,001
|
|
|
908
|
|
|
Other fees
|
656
|
|
|
858
|
|
|
800
|
|
|
770
|
|
|
888
|
|
|
850
|
|
|
846
|
|
|
800
|
|
|
Mortgage banking
|
783
|
|
|
466
|
|
|
758
|
|
|
708
|
|
|
467
|
|
|
846
|
|
|
770
|
|
|
934
|
|
|
Insurance
|
98
|
|
|
91
|
|
|
93
|
|
|
96
|
|
|
109
|
|
|
104
|
|
|
102
|
|
|
114
|
|
|
Net gains from trading activities
|
131
|
|
|
276
|
|
|
229
|
|
|
357
|
|
|
10
|
|
|
158
|
|
|
191
|
|
|
243
|
|
|
Net gains (losses) on debt securities
|
(8
|
)
|
|
3
|
|
|
20
|
|
|
125
|
|
|
9
|
|
|
57
|
|
|
41
|
|
|
1
|
|
|
Net gains from equity securities
|
451
|
|
|
956
|
|
|
622
|
|
|
814
|
|
|
21
|
|
|
416
|
|
|
295
|
|
|
783
|
|
|
Lease income
|
343
|
|
|
402
|
|
|
424
|
|
|
443
|
|
|
402
|
|
|
453
|
|
|
443
|
|
|
455
|
|
|
Other
|
335
|
|
|
1,528
|
|
|
744
|
|
|
574
|
|
|
753
|
|
|
633
|
|
|
485
|
|
|
602
|
|
|
Total noninterest income
|
8,660
|
|
|
10,385
|
|
|
9,489
|
|
|
9,298
|
|
|
8,336
|
|
|
9,369
|
|
|
9,012
|
|
|
9,696
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Salaries
|
4,721
|
|
|
4,695
|
|
|
4,541
|
|
|
4,425
|
|
|
4,545
|
|
|
4,461
|
|
|
4,465
|
|
|
4,363
|
|
|
Commission and incentive compensation
|
2,651
|
|
|
2,735
|
|
|
2,597
|
|
|
2,845
|
|
|
2,427
|
|
|
2,427
|
|
|
2,642
|
|
|
2,768
|
|
|
Employee benefits
|
1,436
|
|
|
1,164
|
|
|
1,336
|
|
|
1,938
|
|
|
706
|
|
|
1,377
|
|
|
1,245
|
|
|
1,598
|
|
|
Technology and equipment
|
802
|
|
|
693
|
|
|
607
|
|
|
661
|
|
|
643
|
|
|
634
|
|
|
550
|
|
|
617
|
|
|
Net occupancy
|
749
|
|
|
760
|
|
|
719
|
|
|
717
|
|
|
735
|
|
|
718
|
|
|
722
|
|
|
713
|
|
|
Core deposit and other intangibles
|
26
|
|
|
27
|
|
|
27
|
|
|
28
|
|
|
264
|
|
|
264
|
|
|
265
|
|
|
265
|
|
|
FDIC and other deposit assessments
|
130
|
|
|
93
|
|
|
144
|
|
|
159
|
|
|
153
|
|
|
336
|
|
|
297
|
|
|
324
|
|
|
Other
|
5,099
|
|
|
5,032
|
|
|
3,478
|
|
|
3,143
|
|
|
3,866
|
|
|
3,546
|
|
|
3,796
|
|
|
4,394
|
|
|
Total noninterest expense
|
15,614
|
|
|
15,199
|
|
|
13,449
|
|
|
13,916
|
|
|
13,339
|
|
|
13,763
|
|
|
13,982
|
|
|
15,042
|
|
|
Income before income tax expense
|
3,602
|
|
|
6,116
|
|
|
7,632
|
|
|
6,848
|
|
|
7,120
|
|
|
7,598
|
|
|
7,119
|
|
|
6,701
|
|
|
Income tax expense
|
678
|
|
|
1,304
|
|
|
1,294
|
|
|
881
|
|
|
966
|
|
|
1,512
|
|
|
1,810
|
|
|
1,374
|
|
|
Net income before noncontrolling interests
|
2,924
|
|
|
4,812
|
|
|
6,338
|
|
|
5,967
|
|
|
6,154
|
|
|
6,086
|
|
|
5,309
|
|
|
5,327
|
|
|
Less: Net income from noncontrolling interests
|
51
|
|
|
202
|
|
|
132
|
|
|
107
|
|
|
90
|
|
|
79
|
|
|
123
|
|
|
191
|
|
|
Wells Fargo net income
|
$
|
2,873
|
|
|
4,610
|
|
|
6,206
|
|
|
5,860
|
|
|
6,064
|
|
|
6,007
|
|
|
5,186
|
|
|
5,136
|
|
Less: Preferred stock dividends and other
|
327
|
|
|
573
|
|
|
358
|
|
|
353
|
|
|
353
|
|
|
554
|
|
|
394
|
|
|
403
|
|
|
Wells Fargo net income applicable to common stock
|
$
|
2,546
|
|
|
4,037
|
|
|
5,848
|
|
|
5,507
|
|
|
5,711
|
|
|
5,453
|
|
|
4,792
|
|
|
4,733
|
|
Per share information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per common share
|
$
|
0.61
|
|
|
0.93
|
|
|
1.31
|
|
|
1.21
|
|
|
1.22
|
|
|
1.14
|
|
|
0.98
|
|
|
0.97
|
|
Diluted earnings per common share
|
0.60
|
|
|
0.92
|
|
|
1.30
|
|
|
1.20
|
|
|
1.21
|
|
|
1.13
|
|
|
0.98
|
|
|
0.96
|
|
|
Average common shares outstanding
|
4,197.1
|
|
|
4,358.5
|
|
|
4,469.4
|
|
|
4,551.5
|
|
|
4,665.8
|
|
|
4,784.0
|
|
|
4,865.8
|
|
|
4,885.7
|
|
|
Diluted average common shares outstanding
|
4,234.6
|
|
|
4,389.6
|
|
|
4,495.0
|
|
|
4,584.0
|
|
|
4,700.8
|
|
|
4,823.2
|
|
|
4,899.8
|
|
|
4,930.7
|
|
256
|
Wells Fargo & Company
|
|
|
Quarter ended December 31,
|
|
||||||||||||||||||
|
2019
|
|
|
2018
|
|
|||||||||||||||
(in millions)
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
|
Average
balance
|
|
|
Yields/
rates
|
|
|
Interest
income/
expense
|
|
|||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-earning deposits with banks
|
$
|
127,287
|
|
|
1.63
|
%
|
|
$
|
523
|
|
|
150,091
|
|
|
2.18
|
%
|
|
$
|
825
|
|
Federal funds sold and securities purchased under resale agreements
|
109,201
|
|
|
1.72
|
|
|
472
|
|
|
76,108
|
|
|
2.22
|
|
|
426
|
|
|||
Debt securities (2):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Trading debt securities
|
103,818
|
|
|
3.12
|
|
|
811
|
|
|
90,110
|
|
|
3.52
|
|
|
794
|
|
|||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. Treasury and federal agencies
|
15,636
|
|
|
1.79
|
|
|
70
|
|
|
7,195
|
|
|
1.80
|
|
|
32
|
|
|||
Securities of U.S. states and political subdivisions
|
39,502
|
|
|
3.58
|
|
|
354
|
|
|
47,618
|
|
|
4.05
|
|
|
483
|
|
|||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal agencies
|
161,146
|
|
|
2.58
|
|
|
1,038
|
|
|
155,322
|
|
|
2.91
|
|
|
1,128
|
|
|||
Residential and commercial
|
4,745
|
|
|
4.40
|
|
|
53
|
|
|
6,666
|
|
|
4.87
|
|
|
81
|
|
|||
Total mortgage-backed securities
|
165,891
|
|
|
2.63
|
|
|
1,091
|
|
|
161,988
|
|
|
2.99
|
|
|
1,209
|
|
|||
Other debt securities
|
40,497
|
|
|
3.88
|
|
|
395
|
|
|
46,072
|
|
|
4.46
|
|
|
518
|
|
|||
Total available-for-sale debt securities
|
261,526
|
|
|
2.92
|
|
|
1,910
|
|
|
262,873
|
|
|
3.41
|
|
|
2,242
|
|
|||
Held-to-maturity debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Securities of U.S. Treasury and federal agencies
|
45,109
|
|
|
2.19
|
|
|
248
|
|
|
44,747
|
|
|
2.19
|
|
|
247
|
|
|||
Securities of U.S. states and political subdivisions
|
12,701
|
|
|
3.88
|
|
|
123
|
|
|
6,247
|
|
|
4.34
|
|
|
67
|
|
|||
Federal agency and other mortgage-backed securities
|
95,303
|
|
|
2.49
|
|
|
593
|
|
|
95,748
|
|
|
2.46
|
|
|
589
|
|
|||
Other debt securities
|
39
|
|
|
3.28
|
|
|
1
|
|
|
68
|
|
|
3.65
|
|
|
1
|
|
|||
Total held-to-maturity debt securities
|
153,152
|
|
|
2.51
|
|
|
965
|
|
|
146,810
|
|
|
2.46
|
|
|
904
|
|
|||
Total debt securities
|
518,496
|
|
|
2.84
|
|
|
3,686
|
|
|
499,793
|
|
|
3.15
|
|
|
3,940
|
|
|||
Mortgage loans held for sale (3)
|
23,985
|
|
|
3.90
|
|
|
234
|
|
|
17,044
|
|
|
4.46
|
|
|
190
|
|
|||
Loans held for sale (3)
|
1,365
|
|
|
4.13
|
|
|
15
|
|
|
1,992
|
|
|
6.69
|
|
|
33
|
|
|||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial and industrial - U.S.
|
283,650
|
|
|
3.84
|
|
|
2,747
|
|
|
281,431
|
|
|
4.40
|
|
|
3,115
|
|
|||
Commercial and industrial - Non-U.S.
|
67,307
|
|
|
3.40
|
|
|
577
|
|
|
62,035
|
|
|
3.73
|
|
|
584
|
|
|||
Real estate mortgage
|
122,136
|
|
|
4.07
|
|
|
1,255
|
|
|
120,404
|
|
|
4.51
|
|
|
1,369
|
|
|||
Real estate construction
|
20,076
|
|
|
4.71
|
|
|
239
|
|
|
23,090
|
|
|
5.32
|
|
|
310
|
|
|||
Lease financing
|
19,421
|
|
|
4.41
|
|
|
214
|
|
|
19,519
|
|
|
4.48
|
|
|
219
|
|
|||
Total commercial loans
|
512,590
|
|
|
3.90
|
|
|
5,032
|
|
|
506,479
|
|
|
4.39
|
|
|
5,597
|
|
|||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate 1-4 family first mortgage
|
292,388
|
|
|
3.66
|
|
|
2,678
|
|
|
285,260
|
|
|
4.02
|
|
|
2,868
|
|
|||
Real estate 1-4 family junior lien mortgage
|
30,147
|
|
|
5.32
|
|
|
403
|
|
|
34,844
|
|
|
5.60
|
|
|
491
|
|
|||
Credit card
|
39,898
|
|
|
12.26
|
|
|
1,233
|
|
|
37,858
|
|
|
12.69
|
|
|
1,211
|
|
|||
Automobile
|
47,274
|
|
|
5.04
|
|
|
600
|
|
|
45,536
|
|
|
5.16
|
|
|
592
|
|
|||
Other revolving credit and installment
|
34,239
|
|
|
6.60
|
|
|
571
|
|
|
36,359
|
|
|
6.95
|
|
|
637
|
|
|||
Total consumer loans
|
443,946
|
|
|
4.92
|
|
|
5,485
|
|
|
439,857
|
|
|
5.25
|
|
|
5,799
|
|
|||
Total loans (3)
|
956,536
|
|
|
4.37
|
|
|
10,517
|
|
|
946,336
|
|
|
4.79
|
|
|
11,396
|
|
|||
Equity securities
|
38,278
|
|
|
2.81
|
|
|
269
|
|
|
37,412
|
|
|
2.79
|
|
|
261
|
|
|||
Other
|
6,478
|
|
|
1.36
|
|
|
22
|
|
|
4,074
|
|
|
1.78
|
|
|
18
|
|
|||
Total earning assets
|
$
|
1,781,626
|
|
|
3.51
|
%
|
|
$
|
15,738
|
|
|
1,732,850
|
|
|
3.93
|
%
|
|
$
|
17,089
|
|
Funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest-bearing checking
|
$
|
63,292
|
|
|
1.09
|
%
|
|
$
|
174
|
|
|
53,983
|
|
|
1.21
|
%
|
|
$
|
165
|
|
Market rate and other savings
|
732,705
|
|
|
0.59
|
|
|
1,094
|
|
|
689,639
|
|
|
0.43
|
|
|
741
|
|
|||
Savings certificates
|
32,358
|
|
|
1.68
|
|
|
137
|
|
|
21,955
|
|
|
0.87
|
|
|
48
|
|
|||
Other time deposits
|
87,069
|
|
|
2.10
|
|
|
459
|
|
|
92,676
|
|
|
2.46
|
|
|
575
|
|
|||
Deposits in non-U.S offices
|
54,751
|
|
|
1.50
|
|
|
208
|
|
|
56,098
|
|
|
1.66
|
|
|
236
|
|
|||
Total interest-bearing deposits
|
970,175
|
|
|
0.85
|
|
|
2,072
|
|
|
914,351
|
|
|
0.77
|
|
|
1,765
|
|
|||
Short-term borrowings
|
115,949
|
|
|
1.50
|
|
|
439
|
|
|
105,962
|
|
|
2.04
|
|
|
546
|
|
|||
Long-term debt
|
230,430
|
|
|
3.02
|
|
|
1,743
|
|
|
226,591
|
|
|
3.17
|
|
|
1,802
|
|
|||
Other liabilities
|
27,279
|
|
|
2.04
|
|
|
141
|
|
|
27,365
|
|
|
2.41
|
|
|
164
|
|
|||
Total interest-bearing liabilities
|
1,343,833
|
|
|
1.30
|
|
|
4,395
|
|
|
1,274,269
|
|
|
1.34
|
|
|
4,277
|
|
|||
Portion of noninterest-bearing funding sources
|
437,793
|
|
|
—
|
|
|
—
|
|
|
458,581
|
|
|
—
|
|
|
—
|
|
|||
Total funding sources
|
$
|
1,781,626
|
|
|
0.98
|
|
|
4,395
|
|
|
1,732,850
|
|
|
0.99
|
|
|
4,277
|
|
||
Net interest margin and net interest income on a taxable-equivalent basis (4)
|
|
|
2.53
|
%
|
|
$
|
11,343
|
|
|
|
|
2.94
|
%
|
|
$
|
12,812
|
|
|||
Noninterest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash and due from banks
|
$
|
19,943
|
|
|
|
|
|
|
19,288
|
|
|
|
|
|
||||||
Goodwill
|
26,389
|
|
|
|
|
|
|
26,423
|
|
|
|
|
|
|||||||
Other
|
113,885
|
|
|
|
|
|
|
100,486
|
|
|
|
|
|
|||||||
Total noninterest-earning assets
|
$
|
160,217
|
|
|
|
|
|
|
146,197
|
|
|
|
|
|
||||||
Noninterest-bearing funding sources
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
$
|
351,738
|
|
|
|
|
|
|
354,597
|
|
|
|
|
|
||||||
Other liabilities
|
53,879
|
|
|
|
|
|
|
51,739
|
|
|
|
|
|
|||||||
Total equity
|
192,393
|
|
|
|
|
|
|
198,442
|
|
|
|
|
|
|||||||
Noninterest-bearing funding sources used to fund earning assets
|
(437,793
|
)
|
|
|
|
|
|
(458,581
|
)
|
|
|
|
|
|||||||
Net noninterest-bearing funding sources
|
$
|
160,217
|
|
|
|
|
|
|
146,197
|
|
|
|
|
|
||||||
Total assets
|
$
|
1,941,843
|
|
|
|
|
|
|
1,879,047
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Average prime rate
|
|
|
4.83
|
%
|
|
|
|
|
|
5.28
|
%
|
|
|
|||||||
Average three-month London Interbank Offered Rate (LIBOR)
|
|
|
1.93
|
%
|
|
|
|
|
|
2.62
|
%
|
|
|
(1)
|
Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
|
(2)
|
Yields/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.
|
(3)
|
Nonaccrual loans and related income are included in their respective loan categories.
|
(4)
|
Includes taxable-equivalent adjustments of $143 million and $168 million for the quarters ended December 31, 2019 and 2018, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 21% for the periods ended December 31, 2019 and 2018.
|
|
Wells Fargo & Company
|
257
|
Glossary of Acronyms
|
|||
|
|
|
|
ACL
|
Allowance for credit losses
|
LCR
|
Liquidity coverage ratio
|
AFS
|
Available-for-sale
|
LHFS
|
Loans held for sale
|
ALCO
|
Asset/Liability Management Committee
|
LIBOR
|
London Interbank Offered Rate
|
ARM
|
Adjustable-rate mortgage
|
LIHTC
|
Low income housing tax credit
|
ASC
|
Accounting Standards Codification
|
LOCOM
|
Lower of cost or market value
|
ASU
|
Accounting Standards Update
|
LTV
|
Loan-to-value
|
AUA
|
Assets under administration
|
MBS
|
Mortgage-backed security
|
AUM
|
Assets under management
|
MLHFS
|
Mortgage loans held for sale
|
AVM
|
Automated valuation model
|
MSR
|
Mortgage servicing right
|
BCBS
|
Basel Committee on Bank Supervision
|
NAV
|
Net asset value
|
BHC
|
Bank holding company
|
NPA
|
Nonperforming asset
|
CCAR
|
Comprehensive Capital Analysis and Review
|
NSFR
|
Net stable funding ratio
|
CD
|
Certificate of deposit
|
OCC
|
Office of the Comptroller of the Currency
|
CDS
|
Credit default swaps
|
OCI
|
Other comprehensive income
|
CECL
|
Current expected credit loss
|
OTC
|
Over-the-counter
|
CET1
|
Common Equity Tier 1
|
OTTI
|
Other-than-temporary impairment
|
CFPB
|
Consumer Financial Protection Bureau
|
PCI
|
Purchased credit-impaired
|
CLO
|
Collateralized loan obligation
|
PTPP
|
Pre-tax pre-provision profit
|
CLTV
|
Combined loan-to-value
|
RBC
|
Risk-based capital
|
CPI
|
Collateral protection insurance
|
RMBS
|
Residential mortgage-backed securities
|
CRE
|
Commercial real estate
|
ROA
|
Wells Fargo net income to average total assets
|
DPD
|
Days past due
|
ROE
|
Wells Fargo net income applicable to common stock
|
ESOP
|
Employee Stock Ownership Plan
|
|
to average Wells Fargo common stockholders’ equity
|
FASB
|
Financial Accounting Standards Board
|
ROTCE
|
Return on average tangible common equity
|
FDIC
|
Federal Deposit Insurance Corporation
|
RWAs
|
Risk-weighted assets
|
FHA
|
Federal Housing Administration
|
SEC
|
Securities and Exchange Commission
|
FHLB
|
Federal Home Loan Bank
|
S&P
|
Standard & Poor’s Ratings Services
|
FHLMC
|
Federal Home Loan Mortgage Corporation
|
SLR
|
Supplementary leverage ratio
|
FICO
|
Fair Isaac Corporation (credit rating)
|
SOFR
|
Secured Overnight Financing Rate
|
FNMA
|
Federal National Mortgage Association
|
SPE
|
Special purpose entity
|
FRB
|
Board of Governors of the Federal Reserve System
|
TDR
|
Troubled debt restructuring
|
GAAP
|
Generally accepted accounting principles
|
TLAC
|
Total Loss Absorbing Capacity
|
GNMA
|
Government National Mortgage Association
|
VA
|
Department of Veterans Affairs
|
GSE
|
Government-sponsored entity
|
VaR
|
Value-at-Risk
|
G-SIB
|
Globally systemic important bank
|
VIE
|
Variable interest entity
|
HQLA
|
High-quality liquid assets
|
WIM
|
Wealth and Investment Management
|
HTM
|
Held-to-maturity
|
|
|
258
|
Wells Fargo & Company
|
|
SUBSIDIARIES OF THE PARENT
|
||
|
|
|
The table below is a list of direct and indirect subsidiaries of the Parent as of December 31, 2019, and the state or jurisdiction in which the subsidiaries are organized. Pursuant to Item 601(b)(21)(ii) of Regulation S-K, certain subsidiaries of the Parent have been omitted from this list because, considered in the aggregate as a single subsidiary, such subsidiaries would not constitute a “significant subsidiary” as that term is defined in Rule 1-02(w) of Regulation S-X.
|
||
|
|
|
Subsidiary
|
|
Jurisdiction of Incorporation or Organization
|
Danube Holdings I C.V.
|
|
Netherlands
|
Danube I Limited Partner, LLC
|
|
Delaware
|
EVEREN Capital Corporation
|
|
Delaware
|
Norwest Equity Partners IX, LP
|
|
Delaware
|
Norwest Venture Partners XII, LP
|
|
Delaware
|
Norwest Venture Partners XIII, LP
|
|
Delaware
|
NVP Associates, LLC
|
|
Delaware
|
OmniPlus Capital Corporation
|
|
Delaware
|
Peony Asset Management, Inc.
|
|
Delaware
|
Silver Asset Management, Inc.
|
|
Delaware
|
Sparta GP Holding REO Corp
|
|
Delaware
|
Union Hamilton Reinsurance, Ltd.
|
|
Bermuda
|
Wells Fargo Affordable Housing Community Development Corporation
|
|
North Carolina
|
Wells Fargo Bank, Ltd.
|
|
California
|
Wells Fargo Bank, National Association
|
|
United States
|
Wells Fargo Bank South Central, National Association
|
|
United States
|
Wells Fargo Capital Finance, LLC
|
|
Delaware
|
Wells Fargo Central Pacific Holdings, Inc.
|
|
California
|
Wells Fargo Clearing Services, LLC
|
|
Delaware
|
Wells Fargo Commercial Distribution Finance, LLC
|
|
Delaware
|
Wells Fargo Community Development Corporation
|
|
Nevada
|
Wells Fargo Community Investment Holdings, LLC
|
|
Delaware
|
Wells Fargo Dealer Floorplan Master Note Trust
|
|
Delaware
|
Wells Fargo Equipment Finance, Inc.
|
|
Minnesota
|
Wells Fargo Financial Leasing, Inc.
|
|
Iowa
|
Wells Fargo Funding, Inc.
|
|
Minnesota
|
Wells Fargo Funds Management, LLC
|
|
Delaware
|
Wells Fargo Insurance, Inc.
|
|
Minnesota
|
Wells Fargo Insurance Re, Inc.
|
|
Vermont
|
Wells Fargo Municipal Capital Strategies, LLC
|
|
Delaware
|
Wells Fargo National Bank West
|
|
United States
|
Wells Fargo Real Estate Investment Corporation
|
|
Delaware
|
Wells Fargo Securities, LLC
|
|
Delaware
|
Wells Fargo USA Holdings, Inc.
|
|
New Jersey
|
Wells Fargo Vendor Financial Services, LLC
|
|
California
|
WFC Holdings, LLC
|
|
Delaware
|
/s/ JOHN D. BAKER II
|
/s/ CHARLES H. NOSKI
|
/s/ CELESTE A. CLARK
|
/s/ RICHARD B. PAYNE, JR.
|
/s/ THEODORE F. CRAVER, JR.
|
/s/ JUAN A. PUJADAS
|
/s/ ELIZABETH A. DUKE
|
/s/ JAMES H. QUIGLEY
|
/s/ WAYNE M. HEWETT
|
/s/ RONALD L. SARGENT
|
/s/ DONALD M. JAMES
|
/s/ CHARLES W. SCHARF
|
/s/ MARIA R. MORRIS
|
/s/ SUZANNE M. VAUTRINOT
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ CHARLES W. SCHARF
|
|
|
Charles W. Scharf
|
||
Chief Executive Officer
|
||
|
|
|
Date:
|
February 26, 2020
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ JOHN R. SHREWSBERRY
|
|
|
John R. Shrewsberry
|
||
Chief Financial Officer
|
||
|
|
|
Date:
|
February 26, 2020
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ CHARLES W. SCHARF
|
|
|
Charles W. Scharf
|
||
Chief Executive Officer
|
||
|
|
|
Date:
|
February 26, 2020
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ JOHN R. SHREWSBERRY
|
|
|
John R. Shrewsberry
|
||
Chief Financial Officer
|
||
|
|
|
Date:
|
February 26, 2020
|
|