WELLS FARGO & CO/MN
- Accession Number:
- 0000950134-07-022973
- Form Type
- 10-Q
- As Of Date
- 20070930
Income Statement
Table of Contents
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
CONSOLIDATED STATEMENT OF INCOME
| Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
| (in millions, except per share amounts) | 2007 | 2006 | 2007 | 2006 | ||||||||||||
INTEREST INCOME |
||||||||||||||||
Trading assets |
$ | 37 | $ | 45 | $ | 137 | $ | 179 | ||||||||
Securities available for sale |
1,032 | 1,014 | 2,470 | 2,552 | ||||||||||||
Mortgages held for sale |
586 | 702 | 1,694 | 2,119 | ||||||||||||
Loans held for sale |
19 | 12 | 51 | 34 | ||||||||||||
Loans |
7,477 | 6,555 | 21,341 | 18,910 | ||||||||||||
Other interest income |
72 | 71 | 242 | 214 | ||||||||||||
Total interest income |
9,223 | 8,399 | 25,935 | 24,008 | ||||||||||||
INTEREST EXPENSE |
||||||||||||||||
Deposits |
2,218 | 1,997 | 6,016 | 5,273 | ||||||||||||
Short-term borrowings |
464 | 271 | 865 | 830 | ||||||||||||
Long-term debt |
1,261 | 1,084 | 3,568 | 3,004 | ||||||||||||
Total interest expense |
3,943 | 3,352 | 10,449 | 9,107 | ||||||||||||
NET INTEREST INCOME |
5,280 | 5,047 | 15,486 | 14,901 | ||||||||||||
Provision for credit losses |
892 | 613 | 2,327 | 1,478 | ||||||||||||
Net interest income after provision for credit losses |
4,388 | 4,434 | 13,159 | 13,423 | ||||||||||||
NONINTEREST INCOME |
||||||||||||||||
Service charges on deposit accounts |
837 | 707 | 2,262 | 1,995 | ||||||||||||
Trust and investment fees |
777 | 664 | 2,347 | 2,002 | ||||||||||||
Card fees |
561 | 464 | 1,548 | 1,266 | ||||||||||||
Other fees |
566 | 509 | 1,715 | 1,507 | ||||||||||||
Mortgage banking |
823 | 484 | 2,302 | 1,634 | ||||||||||||
Operating leases |
171 | 192 | 550 | 593 | ||||||||||||
Insurance |
329 | 313 | 1,160 | 1,041 | ||||||||||||
Net gains (losses) on debt securities available for sale |
160 | 121 | 149 | (70 | ) | |||||||||||
Net gains from equity investments |
173 | 159 | 512 | 482 | ||||||||||||
Other |
176 | 274 | 1,154 | 927 | ||||||||||||
Total noninterest income |
4,573 | 3,887 | 13,699 | 11,377 | ||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||
Salaries |
1,933 | 1,769 | 5,707 | 5,195 | ||||||||||||
Incentive compensation |
802 | 710 | 2,444 | 2,092 | ||||||||||||
Employee benefits |
518 | 458 | 1,764 | 1,534 | ||||||||||||
Equipment |
295 | 294 | 924 | 913 | ||||||||||||
Net occupancy |
398 | 357 | 1,132 | 1,038 | ||||||||||||
Operating leases |
136 | 155 | 437 | 473 | ||||||||||||
Other |
1,419 | 1,338 | 4,346 | 4,086 | ||||||||||||
Total noninterest expense |
5,501 | 5,081 | 16,754 | 15,331 | ||||||||||||
INCOME BEFORE INCOME TAX EXPENSE |
3,460 | 3,240 | 10,104 | 9,469 | ||||||||||||
Income tax expense |
1,177 | 1,046 | 3,298 | 3,168 | ||||||||||||
NET INCOME |
$ | 2,283 | $ | 2,194 | $ | 6,806 | $ | 6,301 | ||||||||
EARNINGS PER COMMON SHARE |
$ | 0.69 | $ | 0.65 | $ | 2.03 | $ | 1.87 | ||||||||
DILUTED EARNINGS PER COMMON SHARE |
$ | 0.68 | $ | 0.64 | $ | 2.01 | $ | 1.85 | ||||||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ | 0.31 | $ | | $ | 0.87 | $ | 0.80 | ||||||||
Average common shares outstanding |
3,339.6 | 3,371.9 | 3,355.5 | 3,364.6 | ||||||||||||
Diluted average common shares outstanding |
3,374.0 | 3,416.0 | 3,392.9 | 3,405.5 | ||||||||||||
Balance Sheet
Table of Contents
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET
| September 30 | , | December 31 | , | September 30 | , | |||||||
| (in millions, except shares) | 2007 | 2006 | 2006 | |||||||||
ASSETS |
||||||||||||
Cash and due from banks |
$ | 12,200 | $ | 15,028 | $ | 12,591 | ||||||
Federal funds sold, securities purchased under
resale agreements and other short-term investments |
4,546 | 6,078 | 4,079 | |||||||||
Trading assets |
7,298 | 5,607 | 5,300 | |||||||||
Securities available for sale |
57,440 | 42,629 | 52,635 | |||||||||
Mortgages held for sale (includes $26,714 carried
at fair value at September 30, 2007) |
29,699 | 33,097 | 39,913 | |||||||||
Loans held for sale |
1,011 | 721 | 617 | |||||||||
Loans |
362,922 | 319,116 | 307,491 | |||||||||
Allowance for loan losses |
(3,829 | ) | (3,764 | ) | (3,799 | ) | ||||||
Net loans |
359,093 | 315,352 | 303,692 | |||||||||
Mortgage servicing rights: |
||||||||||||
Measured at fair value (residential MSRs) |
18,223 | 17,591 | 17,712 | |||||||||
Amortized |
460 | 377 | 328 | |||||||||
Premises and equipment, net |
5,002 | 4,698 | 4,645 | |||||||||
Goodwill |
12,018 | 11,275 | 11,192 | |||||||||
Other assets |
41,737 | 29,543 | 30,737 | |||||||||
Total assets |
$ | 548,727 | $ | 481,996 | $ | 483,441 | ||||||
LIABILITIES |
||||||||||||
Noninterest-bearing deposits |
$ | 82,365 | $ | 89,119 | $ | 86,849 | ||||||
Interest-bearing deposits |
252,591 | 221,124 | 227,470 | |||||||||
Total deposits |
334,956 | 310,243 | 314,319 | |||||||||
Short-term borrowings |
41,729 | 12,829 | 13,800 | |||||||||
Accrued expenses and other liabilities |
28,712 | 25,903 | 26,369 | |||||||||
Long-term debt |
95,592 | 87,145 | 84,091 | |||||||||
Total liabilities |
500,989 | 436,120 | 438,579 | |||||||||
STOCKHOLDERS EQUITY |
||||||||||||
Preferred stock |
545 | 384 | 465 | |||||||||
Common stock $1-2/3 par value, authorized
6,000,000,000 shares; issued 3,472,762,050 shares |
5,788 | 5,788 | 5,788 | |||||||||
Additional paid-in capital |
8,089 | 7,739 | 7,667 | |||||||||
Retained earnings |
38,817 | 35,277 | 34,080 | |||||||||
Cumulative other comprehensive income |
291 | 302 | 633 | |||||||||
Treasury stock 147,535,970 shares, 95,612,189 shares
and 100,057,636 shares |
(5,209 | ) | (3,203 | ) | (3,273 | ) | ||||||
Unearned ESOP shares |
(583 | ) | (411 | ) | (498 | ) | ||||||
Total stockholders equity |
47,738 | 45,876 | 44,862 | |||||||||
Total liabilities and stockholders equity |
$ | 548,727 | $ | 481,996 | $ | 483,441 | ||||||
Statement of Cash Flows
Table of Contents
WELLS FARGO & COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CASH FLOWS
| Nine months ended September 30 | , | |||||||
| (in millions) | 2007 | 2006 | ||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 6,806 | $ | 6,301 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Provision for credit losses |
2,327 | 1,478 | ||||||
Changes in fair value of MSRs (residential) and MHFS carried at fair value |
474 | 1,736 | ||||||
Depreciation and amortization |
1,141 | 2,250 | ||||||
Other net gains |
(1,337 | ) | (1,128 | ) | ||||
Preferred shares released to ESOP |
323 | 274 | ||||||
Stock option compensation expense |
107 | 108 | ||||||
Excess tax benefits related to stock option payments |
(185 | ) | (179 | ) | ||||
Originations of MHFS |
(176,135 | ) | (180,739 | ) | ||||
Proceeds from sales of and principal collected on mortgages originated for sale |
175,746 | 179,039 | ||||||
Net change in: |
||||||||
Trading assets |
(2,959 | ) | 5,582 | |||||
Loans originated for sale |
(285 | ) | (5 | ) | ||||
Deferred income taxes |
632 | 877 | ||||||
Accrued interest receivable |
(446 | ) | (265 | ) | ||||
Accrued interest payable |
(59 | ) | 358 | |||||
Other assets, net |
(5,516 | ) | 2,949 | |||||
Other accrued expenses and liabilities, net |
3,059 | 3,136 | ||||||
Net cash provided by operating activities |
3,693 | 21,772 | ||||||
Cash flows from investing activities: |
||||||||
Net change in: |
||||||||
Federal funds sold, securities purchased under resale agreements
and other short-term investments |
1,539 | 1,282 | ||||||
Securities available for sale: |
||||||||
Sales proceeds |
37,297 | 43,896 | ||||||
Prepayments and maturities |
6,868 | 5,757 | ||||||
Purchases |
(54,192 | ) | (61,347 | ) | ||||
Loans: |
||||||||
Increase in banking subsidiaries loan originations, net of collections |
(34,020 | ) | (26,503 | ) | ||||
Proceeds from sales (including participations) of loans by banking subsidiaries |
2,611 | 35,637 | ||||||
Purchases (including participations) of loans by banking subsidiaries |
(7,543 | ) | (4,136 | ) | ||||
Principal collected on nonbank entities loans |
16,461 | 18,130 | ||||||
Loans originated by nonbank entities |
(19,190 | ) | (19,956 | ) | ||||
Net cash paid for acquisitions |
(2,862 | ) | (526 | ) | ||||
Proceeds from sales of foreclosed assets |
1,014 | 376 | ||||||
Other changes in MSRs |
(1,717 | ) | (5,127 | ) | ||||
Other, net |
(5,662 | ) | (3,287 | ) | ||||
Net cash used by investing activities |
(59,396 | ) | (15,804 | ) | ||||
Cash flows from financing activities: |
||||||||
Net change in: |
||||||||
Deposits |
22,954 | (376 | ) | |||||
Short-term borrowings |
28,760 | (10,139 | ) | |||||
Long-term debt: |
||||||||
Proceeds from issuance |
22,569 | 14,987 | ||||||
Repayment |
(14,846 | ) | (10,632 | ) | ||||
Common stock: |
||||||||
Proceeds from issuance |
1,531 | 1,419 | ||||||
Repurchased |
(4,765 | ) | (1,566 | ) | ||||
Cash dividends paid |
(2,919 | ) | (2,695 | ) | ||||
Excess tax benefits related to stock option payments |
185 | 179 | ||||||
Other, net |
(594 | ) | 49 | |||||
Net cash provided (used) by financing activities |
52,875 | (8,774 | ) | |||||
Net change in cash and due from banks |
(2,828 | ) | (2,806 | ) | ||||
Cash and due from banks at beginning of period |
15,028 | 15,397 | ||||||
Cash and due from banks at end of period |
$ | 12,200 | $ | 12,591 | ||||
Supplemental disclosures of cash flow information: |
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Cash paid during the period for: |
||||||||
Interest |
$ | 10,508 | $ | 8,749 | ||||
Income taxes |
2,613 | 1,423 | ||||||
Noncash investing and financing activities: |
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Transfers from trading assets to securities available for sale |
$ | 1,268 | $ | | ||||
Transfers from loans to MHFS |
| 32,381 | ||||||
Transfers from MHFS to loans |
1,522 | | ||||||
Transfers from loans to foreclosed assets |
1,978 | 1,243 | ||||||