-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ew8fThzApNOlOTHzR7xBCwnyXoS4scWFX72swxKs+34m5QF2rdaltCFf78qeMZkQ x4TFENFLCGbL4E3MHeiy0w== 0000912057-00-018632.txt : 20000419 0000912057-00-018632.hdr.sgml : 20000419 ACCESSION NUMBER: 0000912057-00-018632 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000418 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WELLS FARGO & CO/MN CENTRAL INDEX KEY: 0000072971 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 410449260 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-02979 FILM NUMBER: 604207 BUSINESS ADDRESS: STREET 1: 420 MONTGOMERY STREET STREET 2: SIXTH & MARQUETTE CITY: SAN FRANCISCO STATE: CA ZIP: 94163 BUSINESS PHONE: 6126671234 MAIL ADDRESS: STREET 1: NORWEST CENTER STREET 2: SIXTH & MARQUETTE CITY: MINNEAPOLIS STATE: MN ZIP: 55479 FORMER COMPANY: FORMER CONFORMED NAME: NORWEST CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: NORTHWEST BANCORPORATION DATE OF NAME CHANGE: 19830516 8-K 1 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): April 18, 2000 WELLS FARGO & COMPANY (Exact name of registrant as specified in its charter)
Delaware 001-2979 No.41-0449260 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.)
420 Montgomery Street, San Francisco, California 94163 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 1-800-411-4932 Not applicable (Former name or former address, if changed since last report) Item 5: Other Events ------------ Wells Fargo & Company is placing on file as Exhibit 99 a copy of the Company's financial results for the quarter ended March 31, 2000. Final financial statements with additional analyses will be filed as part of the Company's Form 10-Q for the quarter ended March 31, 2000. Item 7: Financial Statements and Exhibits --------------------------------- (c) Exhibits 27 Financial Data Schedule 99 Wells Fargo & Company's financial results for the quarter ended March 31, 2000 SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on April 18, 2000. WELLS FARGO & COMPANY By: LES L. QUOCK ------------------------------------ Les L. Quock Senior Vice President and Controller EX-27 2 EXHIBIT 27
9 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 8-K FOR THE PERIOD ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION. 1,000,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 12,096 0 3,066 0 36,774 0 0 124,846 3,237 222,276 141,467 21,334 10,293 25,553 0 263 2,777 20,589 222,276 2,983 631 349 3,963 757 1,523 2,440 255 (602) 2,479 1,617 1,010 0 0 1,010 0.62 0.61 5.56 743 0 1 0 3,170 372 118 3,237 0 0 0
EX-99 3 EXHIBIT 99 Wells Fargo & Company's financial results for the quarter ended March 31, 2000 Wells Fargo & Company reported net income of $1,010 million for the first quarter of 2000, an increase of 14 percent from $884 million in the first quarter of 1999. Diluted earnings per common share were $.61 for the first quarter of 2000, an increase of 15 percent from $.53 in the first quarter of 1999. Return on average assets (ROA) was 1.88 percent for the first quarter of 2000, compared with 1.80 percent for the first quarter of 1999. Return on average common equity (ROE) was 18.24 percent for the first quarter of 2000, compared with 17.33 percent for the first quarter of 1999. Diluted cash earnings per share were $.70 for the first quarter of 2000, an increase of 15 percent from $.61 per share for the same period of 1999. Cash earnings are earnings before the amortization of goodwill and nonqualifying core deposit intangible. Cash ROA was 2.23 percent and cash ROE was 34.15 percent for the first quarter of 2000, compared with 2.17 percent and 34.38 percent, respectively, for the first quarter of 1999. Net interest income on a taxable-equivalent basis was $2,456 million in the first quarter of 2000, compared with $2,281 million for the same quarter a year ago. The net interest margin was 5.56 percent for the first quarter of 2000, compared with 5.58 percent for the same period of 1999. Noninterest income in the first quarter of 2000 was $1,911 million, an increase of 11 percent from $1,727 million in the same quarter of 1999. The increase was primarily due to net venture capital gains of $885 million, offset by losses of $602 million on the sales of securities that resulted from the continued restructuring of the securities available for sale portfolio and a $160 million write-down of auto lease residuals. Noninterest expense was $2,479 million in the first quarter of 2000, an increase of 6 percent from $2,342 million in the same quarter of 1999. The efficiency ratio improved to 57.0 percent for the first quarter of 2000, compared with 58.7 percent for the same quarter of 1999. On a cash basis, this ratio improved to 53.4 percent, compared with 54.9 percent for the same quarter of 1999. The provision for loan losses was $255 million for the first quarter of 2000, compared with $270 million for the same period in 1999. Net charge-offs totaled $254 million, or .84 percent of average loans (annualized), in the first quarter of 2000, compared with $273 million, or 1.03 percent of average loans (annualized), for the first quarter of 1999. -2- At March 31, 2000, the allowance for loan losses of $3,237 million was 2.59 percent of total loans, compared with 2.65 percent at December 31, 1999 and 2.92 percent at March 31, 1999. Total nonaccrual and restructured loans were $744 million at March 31, 2000, compared with $669 million at December 31, 1999 and $704 million at March 31, 1999. WELLS FARGO & COMPANY IS A DIVERSIFIED FINANCIAL SERVICES COMPANY WITH $222 BILLION IN ASSETS, PROVIDING BANKING, INSURANCE, INVESTMENTS, MORTGAGE AND CONSUMER FINANCE FROM ABOUT 5,300 STORES AND THE INTERNET (WELLSFARGO.COM) ACROSS NORTH AMERICA AND ELSEWHERE INTERNATIONALLY. - ---------------- The following appears in accordance with the Private Securities Litigation Reform Act of 1995: This discussion of financial results may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors--many of which are beyond the Company's control--could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's reports filed with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended December 31, 1999, describe some of these factors, including certain credit, market, operational, liquidity and interest rate risks associated with the Company's business and operations. Other factors described in the Company's December 31, 1999 Form 10-K include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, legislation including the Gramm-Leach-Bliley Act of 1999, the combination of the former Norwest Corporation and the former Wells Fargo & Company, and other mergers and acquisitions. Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. 3 Wells Fargo & Company and Subsidiaries SUMMARY FINANCIAL DATA
- ------------------------------------------------------------------------------------------------------------------- % Change Quarter ended Mar. 31, 2000 from ------------------------------- ------------------ MAR. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31, (in millions, except per share amounts) 2000 1999 1999 1999 1999 - ------------------------------------------------------------------------------------------------------------------- FOR THE PERIOD Net income $ 1,010 $ 970 $ 884 4% 14% Net income applicable to common stock 1,006 961 875 5 15 Earnings per common share $ .62 $ .59 $ .53 5 17 Diluted earnings per common share .61 .58 .53 5 15 Dividends declared per common share .22 .20 .185 10 19 Average common shares outstanding 1,627.1 1,635.6 1,647.1 (1) (1) Diluted common shares outstanding 1,640.2 1,656.0 1,664.2 (1) (1) Profitability ratios (annualized) Net income to average total assets (ROA) 1.88% 1.85% 1.80% 2 4 Net income applicable to common stock to average common stockholders' equity (ROE) 18.24 17.84 17.33 2 5 Total revenue $ 4,351 $ 4,466 $ 3,993 (3) 9 Efficiency ratio (1) 57.0% 59.5% 58.7% (4) (3) Average loans $121,172 $116,301 $107,834 4 12 Average assets 216,458 208,347 198,723 4 9 Average core deposits 127,410 126,493 128,133 1 (1) Net interest margin 5.56% 5.61% 5.58% (1) -- NET INCOME AND RATIOS EXCLUDING GOODWILL AND NONQUALIFYING CORE DEPOSIT INTANGIBLE AMORTIZATION AND BALANCES ("CASH") (2) Net income applicable to common stock $ 1,145 $ 1,120 $ 1,008 2 14 Earnings per common share .70 .68 .61 3 15 Diluted earnings per common share .70 .68 .61 3 15 ROA 2.23% 2.24% 2.17% -- 3 ROE 34.15 34.20 34.38 -- (1) Efficiency ratio 53.4 55.6 54.9 (4) (3) AT PERIOD END Securities available for sale $ 36,774 $ 38,518 $ 35,801 (5) 3 Loans 124,846 119,464 108,108 5 15 Allowance for loan losses 3,237 3,170 3,161 2 2 Goodwill 8,355 7,702 7,747 8 8 Assets 222,276 218,102 201,430 2 10 Core deposits 132,480 126,198 127,996 5 4 Common stockholders' equity 23,366 21,860 20,817 7 12 Stockholders' equity 23,629 22,131 21,276 7 11 Capital ratios Common stockholders' equity to assets 10.51% 10.02% 10.33% 5 2 Stockholders' equity to assets 10.63 10.15 10.56 5 1 Risk-based capital (3) Tier 1 capital 7.60 8.07 8.23 (6) (8) Total capital 10.40 10.50 10.97 (1) (5) Leverage (3) 6.50 6.77 6.74 (4) (4) Book value per common share $ 14.35 $ 13.44 $ 12.60 7 14 Staff (active, full-time equivalent) 90,683 89,355 90,711 1 -- COMMON STOCK PRICE High $ 43.75 $ 49.94 $ 40.44 (12) 8 Low 31.00 38.38 32.13 (19) (4) Period end 40.75 40.44 35.06 1 16 - -------------------------------------------------------------------------------------------------------------------
(1) The efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income). (2) Nonqualifying core deposit intangible (CDI) amortization and average balance excluded from these calculations are, with the exception of the efficiency and ROA ratios, net of applicable taxes. The pretax amount for the average balance of nonqualifying CDI was $1,215 million for the quarter ended March 31, 2000. The after-tax amounts for the amortization and average balance of nonqualifying CDI were $26 million and $753 million, respectively, for the quarter ended March 31, 2000. Goodwill amortization and average balance (which are not tax effected) were $113 million and $7,932 million, respectively, for the quarter ended March 31, 2000. (3) The March 31, 2000 ratios are preliminary. 4 Wells Fargo & Company and Subsidiaries CONSOLIDATED STATEMENT OF INCOME
- ------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, ------------------------ % (in millions, except per share amounts) 2000 1999 Change - ------------------------------------------------------------------------------------------------------------------- INTEREST INCOME Securities available for sale $ 631 $ 510 24% Mortgages held for sale 170 258 (34) Loans held for sale 107 99 8 Loans 2,983 2,579 16 Other interest income 72 42 71 -------- -------- Total interest income 3,963 3,488 14 -------- -------- INTEREST EXPENSE Deposits 757 717 6 Short-term borrowings 370 208 78 Long-term debt 381 283 35 Guaranteed preferred beneficial interests in Company's subordinated debentures 15 14 7 -------- -------- Total interest expense 1,523 1,222 25 -------- -------- NET INTEREST INCOME 2,440 2,266 8 Provision for loan losses 255 270 (6) -------- -------- Net interest income after provision for loan losses 2,185 1,996 9 -------- -------- NONINTEREST INCOME Service charges on deposit accounts 383 344 11 Trust and investment fees 360 300 20 Credit card fees 123 132 (7) Other fees 270 238 13 Mortgage banking 306 327 (6) Insurance 92 85 8 Net venture capital gains 885 112 690 Net losses on securities available for sale (602) (2) -- Other 94 191 (51) -------- -------- Total noninterest income 1,911 1,727 11 -------- -------- NONINTEREST EXPENSE Salaries 818 725 13 Incentive compensation 134 134 -- Employee benefits 233 199 17 Equipment 193 191 1 Net occupancy 224 186 20 Goodwill 113 104 9 Core deposit intangible 47 52 (10) Net (gains) losses on dispositions of premises and equipment (33) 2 -- Other 750 749 -- -------- -------- Total noninterest expense 2,479 2,342 6 -------- -------- INCOME BEFORE INCOME TAX EXPENSE 1,617 1,381 17 Income tax expense 607 497 22 -------- -------- NET INCOME $ 1,010 $ 884 14% ======== ======== NET INCOME APPLICABLE TO COMMON STOCK $ 1,006 $ 875 15% ======== ======== EARNINGS PER COMMON SHARE $ .62 $ .53 17% ======== ======== DILUTED EARNINGS PER COMMON SHARE $ .61 $ .53 15% ======== ======== DIVIDENDS DECLARED PER COMMON SHARE $ .22 $ .185 19% ======== ======== Average common shares outstanding 1,627.1 1,647.1 (1)% ======== ======== Diluted average common shares outstanding 1,640.2 1,664.2 (1)% ======== ======== ===== - -------------------------------------------------------------------------------------------------------------------
5 Wells Fargo & Company and Subsidiaries CONSOLIDATED BALANCE SHEET
- --------------------------------------------------------------------------------------------------------------------------- % Change March 31, 2000 From ---------------------------------- ------------------- MAR. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31, (in millions, except shares) 2000 1999 1999 1999 1999 - --------------------------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 12,096 $ 13,250 $ 11,364 (9)% 6% Federal funds sold and securities purchased under resale agreements 3,066 1,554 869 97 253 Securities available for sale 36,774 38,518 35,801 (5) 3 Mortgages held for sale 6,324 11,707 11,717 (46) (46) Loans held for sale 5,496 4,975 5,630 10 (2) Loans 124,846 119,464 108,108 5 15 Allowance for loan losses 3,237 3,170 3,161 2 2 -------- -------- -------- Net loans 121,609 116,294 104,947 5 16 -------- -------- -------- Mortgage servicing rights 4,625 4,483 3,627 3 28 Premises and equipment, net 2,906 2,985 3,130 (3) (7) Core deposit intangible 1,250 1,286 1,437 (3) (13) Goodwill 8,355 7,702 7,747 8 8 Interest receivable and other assets 19,775 15,348 15,161 29 30 -------- -------- -------- Total assets $222,276 $218,102 $201,430 2% 10% ======== ======== ======== ==== ==== LIABILITIES Noninterest-bearing deposits $ 45,836 $ 42,916 $ 42,322 7% 8% Interest-bearing deposits 95,631 89,792 90,018 7 6 -------- -------- -------- Total deposits 141,467 132,708 132,340 7 7 Short-term borrowings 21,334 27,995 17,270 (24) 24 Accrued expenses and other liabilities 10,293 11,108 9,396 (7) 10 Long-term debt 24,768 23,375 20,363 6 22 Guaranteed preferred beneficial interests in Company's subordinated debentures 785 785 785 -- -- STOCKHOLDERS' EQUITY Preferred stock 473 344 604 38 (22) Unearned ESOP shares (210) (73) (145) 188 45 -------- -------- -------- Total preferred stock 263 271 459 (3) (43) Common stock - $1-2/3 par value, authorized 4,000,000,000 shares; issued 1,666,095,265 shares, 1,666,095,265 shares and 1,666,095,285 shares 2,777 2,777 2,777 -- -- Additional paid-in capital 8,789 8,786 8,733 -- 1 Retained earnings 11,706 11,196 9,525 5 23 Cumulative other comprehensive income 1,723 892 307 93 461 Note receivable from ESOP (1) (1) (3) -- (67) Treasury stock - 37,415,264 shares, 39,245,724 shares and 13,478,919 shares (1,628) (1,790) (522) (9) 212 -------- -------- -------- Total stockholders' equity 23,629 22,131 21,276 7 11 -------- -------- -------- Total liabilities and stockholders' equity $222,276 $218,102 $201,430 2% 10% ======== ======== ========= ==== === - ----------------------------------------------------------------------------------------------------------------------------
6 Wells Fargo & Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
- ------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, ------------------------ (in millions) 2000 1999 - ------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF PERIOD $22,131 $20,759 Net income 1,010 884 Other comprehensive income (loss), net of tax: Change in foreign currency translation adjustments -- 1 Change in investment securities valuation allowance 831 (157) Common stock issued 83 242 Common stock issued for acquisitions 1,125 63 Common stock repurchased (1,229) (221) Preferred stock released to ESOP 40 18 Preferred stock dividends (4) (9) Common stock dividends (359) (304) Increase in Rabbi trust assets (classified as treasury stock) 1 -- ------- ------- BALANCE, END OF PERIOD $23,629 $21,276 ======= ======= - -------------------------------------------------------------------------------------------------------------------
LOANS - ------------------------------------------------------------------------------------------------------------------- MAR. 31, Dec. 31, Mar. 31, (in millions) 2000 1999 1999 - ------------------------------------------------------------------------------------------------------------------- Commercial $ 40,907 $ 38,688 $ 35,232 Real estate 1-4 family first mortgage 13,934 12,398 12,186 Other real estate mortgage 20,310 19,178 16,903 Real estate construction 4,906 4,711 3,942 Consumer: Real estate 1-4 family junior lien mortgage 13,815 12,938 10,987 Credit card 5,207 5,472 5,394 Other revolving credit and monthly payment 16,634 16,656 15,333 -------- -------- -------- Total consumer 35,656 35,066 31,714 Lease financing 7,530 7,850 6,645 Foreign 1,603 1,573 1,486 -------- -------- -------- Total loans (net of unearned discount) $124,846 $119,464 $108,108 ======== ======== ======== - -------------------------------------------------------------------------------------------------------------------
7 Wells Fargo & Company and Subsidiaries CHANGES IN THE ALLOWANCE FOR LOAN LOSSES
- ------------------------------------------------------------------------------------------------------------------- Quarter ended ------------------------------------------ MAR. 31, Dec. 31, Mar. 31, (in millions) 2000 1999 1999 - ------------------------------------------------------------------------------------------------------------------- BALANCE, BEGINNING OF QUARTER $3,170 $3,167 $3,134 Allowance related to business combinations, net 66 2 30 Provision for loan losses 255 275 270 Loan charge-offs: Commercial (101) (97) (81) Real estate 1-4 family first mortgage (6) (2) (1) Other real estate mortgage (3) (8) (8) Real estate construction (1) (1) -- Consumer: Real estate 1-4 family junior lien mortgage (11) (11) (9) Credit card (82) (89) (110) Other revolving credit and monthly payment (131) (154) (127) ------ ------ ------ Total consumer (224) (254) (246) Lease financing (13) (8) (11) Foreign (24) (21) (15) ------ ------ ------ Total loan charge-offs (372) (391) (362) ------ ------ ------ Loan recoveries: Commercial 32 25 13 Real estate 1-4 family first mortgage 1 -- 1 Other real estate mortgage 3 4 17 Real estate construction 1 1 -- Consumer: Real estate 1-4 family junior lien mortgage 4 5 3 Credit card 9 10 13 Other revolving credit and monthly payment 49 65 36 ------ ------ ------ Total consumer 62 80 52 Lease financing 3 3 3 Foreign 16 4 3 ------ ------ ------ Total loan recoveries 118 117 89 ------ ------ ------ Total net loan charge-offs (254) (274) (273) ------ ------ ------ BALANCE, END OF QUARTER $3,237 $3,170 $3,161 ====== ====== ====== Total net loan charge-offs as a percentage of average total loans (annualized) .84% .93% 1.03% ====== ====== ====== Allowance as a percentage of total loans 2.59% 2.65% 2.92% ====== ====== ====== - -------------------------------------------------------------------------------------------------------------------
8 Wells Fargo & Company and Subsidiaries NONACCRUAL AND RESTRUCTURED LOANS AND OTHER ASSETS
- ------------------------------------------------------------------------------------------------------------------- MAR. 31, Dec. 31, Mar. 31, (in millions) 2000 1999 1999 - ------------------------------------------------------------------------------------------------------------------- Nonaccrual loans: Commercial $423 $344 $333 Real estate 1-4 family first mortgage 119 127 135 Other real estate mortgage 106 112 127 Real estate construction 16 7 18 Consumer: Real estate 1-4 family junior lien mortgage 11 17 18 Other revolving credit and monthly payment 23 27 35 ---- ---- ---- Total consumer 34 44 53 Lease financing 34 22 15 Foreign 11 9 22 ---- ---- ---- Total nonaccrual loans 743 665 703 Restructured loans 1 4 1 ---- ---- ---- Nonaccrual and restructured loans 744 669 704 As a percentage of total loans .6% .6% .7% Foreclosed assets 143 153 187 Real estate investments (1) 32 33 1 ---- ---- ---- Total nonaccrual and restructured loans and other assets $919 $855 $892 ==== ==== ==== - -------------------------------------------------------------------------------------------------------------------
(1) Represents the amount of real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if such assets were recorded as loans. Real estate investments totaled $85 million, $89 million and $130 million at March 31, 2000, December 31, 1999 and March 31, 1999, respectively. 9 Wells Fargo & Company and Subsidiaries NONINTEREST INCOME
- ------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, -------------------------- % (in millions) 2000 1999 Change - ------------------------------------------------------------------------------------------------------------------- Service charges on deposit accounts $ 383 $ 344 11% Trust and investment fees: Asset management and custody fees 167 184 (9) Mutual fund and annuity sales fees 162 90 80 All other 31 26 19 ------ ------ Total trust and investment fees 360 300 20 Credit card fees 123 132 (7) Other fees: Cash network fees 70 58 21 Charges and fees on loans 81 76 7 All other 119 104 14 ------ ------ Total other fees 270 238 13 Mortgage banking: Origination and other closing fees 61 113 (46) Servicing fees, net of amortization 151 (45) -- Net gains on sales of mortgages 56 200 (72) All other 38 59 (36) ------ ------ Total mortgage banking 306 327 (6) Insurance 92 85 8 Net venture capital gains 885 112 690 Net losses on securities available for sale (602) (2) -- Income from equity investments accounted for by the: Cost method 114 33 245 Equity method 38 21 81 Net gains on sales of loans 3 13 (77) Net gains (losses) on dispositions of operations 2 (1) -- All other (63) 125 -- ------ ------ Total $1,911 $1,727 11% ====== ====== === - -------------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
- ------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, -------------------------- % (in millions) 2000 1999 Change - ------------------------------------------------------------------------------------------------------------------- Salaries $ 818 $ 725 13% Incentive compensation 134 134 -- Employee benefits 233 199 17 Equipment 193 191 1 Net occupancy 224 186 20 Goodwill 113 104 9 Core deposit intangible: Nonqualifying (1) 42 46 (9) Qualifying 5 6 (17) Net (gains) losses on dispositions of premises and equipment (33) 2 -- Contract services 107 90 19 Outside professional services 87 73 19 Outside data processing 71 76 (7) Telecommunications 62 61 2 Travel and entertainment 55 55 -- Advertising and promotion 58 50 16 Postage 56 57 (2) Stationery and supplies 46 39 18 Insurance 42 36 17 Operating losses 35 29 21 Security 21 21 -- All other 110 162 (32) ----- ------ Total $2,479 $2,342 6% ====== ====== === - -------------------------------------------------------------------------------------------------------------------
(1) Amortization of core deposit intangible acquired after February 1992 that is subtracted from stockholders' equity in computing regulatory capital for bank holding companies. 10 Wells Fargo & Company and Subsidiaries AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
- ---------------------------------------------------------------------------------------------------------------------------------- Quarter ended March 31, ------------------------------------------------------------------- 2000 1999 ------------------------------ ------------------------------ INTEREST Interest AVERAGE YIELDS/ INCOME/ Average Yields/ income/ (in millions) BALANCE RATES EXPENSE balance rates expense - ---------------------------------------------------------------------------------------------------------------------------------- EARNING ASSETS Federal funds sold and securities purchased under resale agreements $ 1,951 5.50% $ 27 $ 1,160 5.01% $ 14 Securities available for sale (3): Securities of U.S. Treasury and federal agencies 4,295 5.73 65 4,716 5.63 65 Securities of U.S. states and political subdivisions 1,826 8.13 38 1,686 8.30 33 Mortgage-backed securities: Federal agencies 23,808 7.30 443 19,655 6.72 326 Private collateralized mortgage obligations 2,168 7.21 41 3,308 6.75 56 -------- ------ -------- ------ Total mortgage-backed securities 25,976 7.29 484 22,963 6.72 382 Other securities 5,969 6.63 57 2,843 6.07 42 -------- ------ -------- ------ Total securities available for sale 38,066 7.08 644 32,208 6.58 522 Loans held for sale (3) 5,303 8.08 107 5,561 7.24 99 Mortgages held for sale (3) 8,888 7.56 170 15,407 6.71 258 Loans: Commercial 39,222 9.16 893 34,875 8.53 735 Real estate 1-4 family first mortgage 12,694 7.83 248 12,089 7.61 231 Other real estate mortgage 19,624 9.27 453 16,731 9.03 373 Real estate construction 4,843 9.38 113 3,902 9.36 90 Consumer: Real estate 1-4 family junior lien mortgage 13,315 10.19 338 10,972 9.89 268 Credit card 5,293 13.70 181 5,549 13.64 189 Other revolving credit and monthly payment 16,770 12.48 523 15,669 12.52 489 -------- ------ -------- ------ Total consumer 35,378 11.80 1,042 32,190 11.81 946 Lease financing 7,825 7.69 150 6,574 7.88 129 Foreign 1,586 21.72 86 1,473 21.05 77 -------- ------ -------- ------ Total loans (4) 121,172 9.89 2,985 107,834 9.65 2,581 Other 3,336 5.68 46 2,420 4.72 30 -------- ------ -------- ------ Total earning assets $178,716 9.01 3,979 $164,590 8.59 3,504 ======== ------ ======== ------ FUNDING SOURCES Deposits: Interest-bearing checking $ 3,052 1.40 11 $ 2,723 0.98 7 Market rate and other savings 56,896 2.52 357 55,578 2.37 325 Savings certificates 24,697 4.89 300 27,062 4.90 327 Other time deposits 3,204 5.26 42 3,714 5.13 47 Deposits in foreign offices 3,446 5.54 47 1,047 4.20 11 -------- ------ -------- ------ Total interest-bearing deposits 91,295 3.34 757 90,124 3.23 717 Short-term borrowings 25,507 5.84 370 17,556 4.80 208 Long-term debt 23,830 6.39 381 18,887 6.01 283 Guaranteed preferred beneficial interests in Company's subordinated debentures 785 7.74 15 785 7.53 15 -------- ------ -------- ------ Total interest-bearing liabilities 141,417 4.33 1,523 127,352 3.88 1,223 Portion of noninterest-bearing funding sources 37,299 -- -- 37,238 -- -- -------- ------ -------- ------ Total funding sources $178,716 3.45 1,523 $164,590 3.01 1,223 ======== ------ ======== ------ NET INTEREST MARGIN AND NET INTEREST INCOME ON A TAXABLE-EQUIVALENT BASIS (5) 5.56% $2,456 5.58% $2,281 ==== ====== ==== ====== NONINTEREST-EARNING ASSETS Cash and due from banks $ 11,898 $ 11,239 Goodwill 7,932 7,734 Other 17,912 15,160 -------- -------- Total noninterest-earning assets $ 37,742 $ 34,133 ======== ======== NONINTEREST-BEARING FUNDING SOURCES Deposits $ 42,765 $ 42,770 Other liabilities 9,832 7,652 Preferred stockholders' equity 271 462 Common stockholders' equity 22,173 20,487 Noninterest-bearing funding sources used to fund earning assets (37,299) (37,238) -------- -------- Net noninterest-bearing funding sources $ 37,742 $ 34,133 ======== ======== TOTAL ASSETS $216,458 $198,723 ======== ======== - -----------------------------------------------------------------------------------------------------------------------------------
(1) The average prime rate of the Company was 8.69% and 7.75% for the quarters ended March 31, 2000 and 1999, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 6.11% and 5.00% for the same quarters, respectively. (2) Interest rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories. (3) Yields are based on amortized cost balances. (4) Nonaccrual loans and related income are included in their respective loan categories. (5) Includes taxable-equivalent adjustments that primarily relate to income on certain loans and securities that is exempt from federal and applicable state income taxes. The federal statutory tax rate was 35% for all periods presented. -----END PRIVACY-ENHANCED MESSAGE-----