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Delaware
(State of incorporation) |
No. 41-0449260
(I.R.S. Employer Identification No.) |
Yes
þ
|
No o |
Yes
þ
|
No o |
Large accelerated filer
|
þ | Accelerated filer o | ||
Non-accelerated filer
|
o (Do not check if a smaller reporting company) | Smaller reporting company o |
Yes
o
|
No þ |
Shares Outstanding | ||
October 29, 2010 | ||
Common stock, $1-2/3 par value
|
5,248,755,643 |
PART I | ||||||||
|
||||||||
Item 1. |
Financial Statements
|
Page | ||||||
56 | ||||||||
57 | ||||||||
58 | ||||||||
60 | ||||||||
61 | ||||||||
65 | ||||||||
65 | ||||||||
66 | ||||||||
76 | ||||||||
81 | ||||||||
82 | ||||||||
94 | ||||||||
96 | ||||||||
98 | ||||||||
101 | ||||||||
110 | ||||||||
126 | ||||||||
128 | ||||||||
129 | ||||||||
130 | ||||||||
133 | ||||||||
141 | ||||||||
|
||||||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Financial Review)
|
|||||||
2 | ||||||||
3 | ||||||||
6 | ||||||||
14 | ||||||||
17 | ||||||||
18 | ||||||||
48 | ||||||||
50 | ||||||||
51 | ||||||||
51 | ||||||||
53 | ||||||||
142 | ||||||||
|
||||||||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
43 | ||||||
|
||||||||
Item 4. |
Controls and Procedures
|
55 | ||||||
|
||||||||
PART II | ||||||||
|
||||||||
Item 1. | 144 | |||||||
|
||||||||
Item 1A. | 144 | |||||||
|
||||||||
Item 2. | 144 | |||||||
|
||||||||
Item 6. | 145 | |||||||
|
||||||||
Signature | 145 | |||||||
|
||||||||
Exhibit Index | 146 | |||||||
EX-12.A | ||||||||
EX-12.B | ||||||||
EX-31.A | ||||||||
EX-31.B | ||||||||
EX-32.A | ||||||||
EX-32.B | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
1
% Change | ||||||||||||||||||||||||||||||||
Quarter ended | Sept. 30, 2010 from | Nine months ended | ||||||||||||||||||||||||||||||
Sept. 30 | , | June 30 | , | Sept. 30 | , | June 30 | , | Sept. 30 | , | Sept. 30 | , | Sept. 30 | , | % | ||||||||||||||||||
($ in millions, except per share amounts) | 2010 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | Change | ||||||||||||||||||||||||
For the Period
|
||||||||||||||||||||||||||||||||
Wells Fargo net income
|
$ | 3,339 | 3,062 | 3,235 | 9 | % | 3 | $ | 8,948 | 9,452 | (5 | )% | ||||||||||||||||||||
Wells Fargo net income
applicable to common stock
|
3,150 | 2,878 | 2,637 | 9 | 19 | 8,400 | 7,596 | 11 | ||||||||||||||||||||||||
Diluted earnings per common share
|
0.60 | 0.55 | 0.56 | 9 | 7 | 1.60 | 1.69 | (5 | ) | |||||||||||||||||||||||
Profitability ratios (annualized):
|
||||||||||||||||||||||||||||||||
Wells Fargo net income to
average assets (ROA)
|
1.09 | % | 1.00 | 1.03 | 9 | 6 | 0.98 | 1.00 | (2 | ) | ||||||||||||||||||||||
Wells Fargo net income applicable
to common stock to average
Wells Fargo common
stockholders’ equity (ROE)
|
10.90 | 10.40 | 12.04 | 5 | (9 | ) | 10.11 | 13.29 | (24 | ) | ||||||||||||||||||||||
Efficiency ratio (1)
|
58.7 | 59.6 | 52.0 | (2 | ) | 13 | 58.3 | 54.9 | 6 | |||||||||||||||||||||||
Total revenue
|
$ | 20,874 | 21,394 | 22,466 | (2 | ) | (7 | ) | $ | 63,716 | 65,990 | (3 | ) | |||||||||||||||||||
Pre-tax pre-provision profit (PTPP) (2)
|
8,621 | 8,648 | 10,782 | — | (20 | ) | 26,600 | 29,791 | (11 | ) | ||||||||||||||||||||||
Dividends declared per common share
|
0.05 | 0.05 | 0.05 | — | — | 0.15 | 0.44 | (66 | ) | |||||||||||||||||||||||
Average common shares outstanding
|
5,240.1 | 5,219.7 | 4,678.3 | — | 12 | 5,216.9 | 4,471.2 | 17 | ||||||||||||||||||||||||
Diluted average common shares outstanding
|
5,273.2 | 5,260.8 | 4,706.4 | — | 12 | 5,252.9 | 4,485.3 | 17 | ||||||||||||||||||||||||
Average loans
|
$ | 759,483 | 772,460 | 810,191 | (2 | ) | (6 | ) | $ | 776,305 | 833,076 | (7 | ) | |||||||||||||||||||
Average assets
|
1,220,368 | 1,224,180 | 1,246,051 | — | (2 | ) | 1,223,535 | 1,270,071 | (4 | ) | ||||||||||||||||||||||
Average core deposits (3)
|
771,957 | 761,767 | 759,319 | 1 | 2 | 764,345 | 759,668 | 1 | ||||||||||||||||||||||||
Average retail core deposits (4)
|
571,062 | 574,436 | 584,414 | (1 | ) | (2 | ) | 572,567 | 590,499 | (3 | ) | |||||||||||||||||||||
Net interest margin
|
4.25 | % | 4.38 | 4.36 | (3 | ) | (3 | ) | 4.30 | 4.27 | 1 | |||||||||||||||||||||
At Period End
|
||||||||||||||||||||||||||||||||
Securities available for sale
|
$ | 176,875 | 157,927 | 183,814 | 12 | (4 | ) | $ | 176,875 | 183,814 | (4 | ) | ||||||||||||||||||||
Loans
|
753,664 | 766,265 | 799,952 | (2 | ) | (6 | ) | 753,664 | 799,952 | (6 | ) | |||||||||||||||||||||
Allowance for loan losses
|
23,939 | 24,584 | 24,028 | (3 | ) | — | 23,939 | 24,028 | — | |||||||||||||||||||||||
Goodwill
|
24,831 | 24,820 | 24,052 | — | 3 | 24,831 | 24,052 | 3 | ||||||||||||||||||||||||
Assets
|
1,220,784 | 1,225,862 | 1,228,625 | — | (1 | ) | 1,220,784 | 1,228,625 | (1 | ) | ||||||||||||||||||||||
Core deposits (3)
|
771,792 | 758,680 | 747,913 | 2 | 3 | 771,792 | 747,913 | 3 | ||||||||||||||||||||||||
Wells Fargo stockholders’ equity
|
123,658 | 119,772 | 122,150 | 3 | 1 | 123,658 | 122,150 | 1 | ||||||||||||||||||||||||
Total equity
|
125,165 | 121,398 | 128,924 | 3 | (3 | ) | 125,165 | 128,924 | (3 | ) | ||||||||||||||||||||||
Tier 1 capital (5)
|
105,609 | 101,992 | 108,785 | 4 | (3 | ) | 105,609 | 108,785 | (3 | ) | ||||||||||||||||||||||
Total capital (5)
|
144,094 | 141,088 | 150,079 | 2 | (4 | ) | 144,094 | 150,079 | (4 | ) | ||||||||||||||||||||||
Capital ratios:
|
||||||||||||||||||||||||||||||||
Total equity to assets
|
10.25 | % | 9.90 | 10.49 | 4 | (2 | ) | 10.25 | 10.49 | (2 | ) | |||||||||||||||||||||
Risk-based capital (5)
|
||||||||||||||||||||||||||||||||
Tier 1 capital
|
10.90 | 10.51 | 10.63 | 4 | 3 | 10.90 | 10.63 | 3 | ||||||||||||||||||||||||
Total capital
|
14.88 | 14.53 | 14.66 | 2 | 2 | 14.88 | 14.66 | 2 | ||||||||||||||||||||||||
Tier 1 leverage (5)
|
9.01 | 8.66 | 9.03 | 4 | — | 9.01 | 9.03 | — | ||||||||||||||||||||||||
Tier 1 common equity (6)
|
8.01 | 7.61 | 5.18 | 5 | 55 | 8.01 | 5.18 | 55 | ||||||||||||||||||||||||
Book value per common share
|
$ | 22.04 | 21.35 | 19.46 | 3 | 13 | $ | 22.04 | 19.46 | 13 | ||||||||||||||||||||||
Team members (active, full-time equivalent)
|
266,900 | 267,600 | 265,100 | — | 1 | 266,900 | 265,100 | 1 | ||||||||||||||||||||||||
Common stock price:
|
||||||||||||||||||||||||||||||||
High
|
$ | 28.77 | 34.25 | 29.56 | (16 | ) | (3 | ) | $ | 34.25 | 30.47 | 12 | ||||||||||||||||||||
Low
|
23.02 | 25.52 | 22.08 | (10 | ) | 4 | 23.02 | 7.80 | 195 | |||||||||||||||||||||||
Period end
|
25.12 | 25.60 | 28.18 | (2 | ) | (11 | ) | 25.12 | 28.18 | (11 | ) | |||||||||||||||||||||
|
(1) | The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income). | |
(2) | Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle. | |
(3) | Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances). | |
(4) | Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits. | |
(5) | See Note 18 (Regulatory and Agency Capital Requirements) to Financial Statements in this Report for additional information. | |
(6) | See the “Capital Management” section in this Report for additional information. |
2
3
• | $650 million release of loan loss reserves (net charge-offs less provision for credit losses), reflecting improved loan portfolio performance; |
• | $380 million approximate negative impact from changes to Regulation E and related overdraft policy changes; |
• | $202 million of commercial PCI loan resolutions, resulting from sales or settlements; and |
• | $476 million of merger integration expenses. |
4
5
6
7
Quarter ended September 30 | , | |||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Yields/ | income/ | Average | Yields/ | income/ | |||||||||||||||||||
(in millions) | balance | rates | expense | balance | rates | expense | ||||||||||||||||||
Earning assets
|
||||||||||||||||||||||||
Federal
funds sold, securities purchased under resale agreements and other short-term investments
|
$ | 70,839 | 0.38 | % | $ | 67 | 16,356 | 0.66 | % | $ | 27 | |||||||||||||
Trading assets
|
29,080 | 3.77 | 275 | 20,518 | 4.29 | 221 | ||||||||||||||||||
Debt securities available for sale (3):
|
||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies
|
1,673 | 2.79 | 11 | 2,545 | 3.79 | 24 | ||||||||||||||||||
Securities of U.S. states and political subdivisions
|
17,220 | 5.89 | 249 | 12,818 | 6.28 | 204 | ||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Federal agencies
|
70,486 | 5.35 | 885 | 94,457 | 5.34 | 1,221 | ||||||||||||||||||
Residential and commercial
|
33,425 | 12.53 | 987 | 43,214 | 9.56 | 1,089 | ||||||||||||||||||
Total mortgage-backed securities
|
103,911 | 7.67 | 1,872 | 137,671 | 6.75 | 2,310 | ||||||||||||||||||
Other debt securities (4)
|
35,533 | 6.02 | 503 | 33,294 | 7.00 | 568 | ||||||||||||||||||
Total debt securities available for sale(4)
|
158,337 | 7.05 | 2,635 | 186,328 | 6.72 | 3,106 | ||||||||||||||||||
Mortgages held for sale (5)
|
38,073 | 4.72 | 449 | 40,604 | 5.16 | 524 | ||||||||||||||||||
Loans held for sale (5)
|
3,223 | 2.71 | 22 | 4,975 | 2.67 | 34 | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||||||||||
Commercial
|
146,139 | 4.57 | 1,679 | 175,642 | 4.34 | 1,919 | ||||||||||||||||||
Real estate mortgage
|
99,082 | 4.15 | 1,036 | 95,612 | 3.45 | 832 | ||||||||||||||||||
Real estate construction
|
29,469 | 3.31 | 246 | 40,487 | 2.94 | 300 | ||||||||||||||||||
Lease financing
|
13,156 | 9.07 | 298 | 14,360 | 9.14 | 328 | ||||||||||||||||||
Total commercial and commercial real estate
|
287,846 | 4.50 | 3,259 | 326,101 | 4.12 | 3,379 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Real estate 1-4 family first mortgage
|
231,172 | 5.16 | 2,987 | 235,051 | 5.35 | 3,154 | ||||||||||||||||||
Real estate 1-4 family junior lien mortgage
|
100,257 | 4.41 | 1,114 | 105,779 | 4.62 | 1,229 | ||||||||||||||||||
Credit card
|
22,048 | 13.57 | 748 | 23,448 | 11.65 | 683 | ||||||||||||||||||
Other revolving credit and installment
|
87,884 | 6.50 | 1,441 | 90,199 | 6.48 | 1,473 | ||||||||||||||||||
Total consumer
|
441,361 | 5.68 | 6,290 | 454,477 | 5.73 | 6,539 | ||||||||||||||||||
Foreign
|
30,276 | 3.15 | 240 | 29,613 | 3.61 | 270 | ||||||||||||||||||
Total loans(5)
|
759,483 | 5.13 | 9,789 | 810,191 | 5.00 | 10,188 | ||||||||||||||||||
Other
|
5,912 | 3.53 | 53 | 6,088 | 3.29 | 49 | ||||||||||||||||||
Total earning assets
|
$ | 1,064,947 | 5.01 | % | $ | 13,290 | 1,085,060 | 5.20 | % | $ | 14,149 | |||||||||||||
Funding sources
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Interest-bearing checking
|
$ | 59,677 | 0.10 | % | $ | 15 | 59,467 | 0.15 | % | $ | 21 | |||||||||||||
Market rate and other savings
|
419,996 | 0.25 | 269 | 369,120 | 0.34 | 317 | ||||||||||||||||||
Savings certificates
|
85,044 | 1.50 | 322 | 129,698 | 1.35 | 442 | ||||||||||||||||||
Other time deposits
|
14,400 | 2.33 | 83 | 18,248 | 1.93 | 89 | ||||||||||||||||||
Deposits in foreign offices
|
52,061 | 0.24 | 32 | 56,820 | 0.25 | 36 | ||||||||||||||||||
Total interest-bearing deposits
|
631,178 | 0.45 | 721 | 633,353 | 0.57 | 905 | ||||||||||||||||||
Short-term borrowings
|
46,468 | 0.26 | 31 | 39,828 | 0.35 | 36 | ||||||||||||||||||
Long-term debt
|
177,077 | 2.76 | 1,226 | 222,580 | 2.33 | 1,301 | ||||||||||||||||||
Other liabilities
|
6,764 | 3.39 | 58 | 5,620 | 3.30 | 46 | ||||||||||||||||||
Total interest-bearing liabilities
|
861,487 | 0.94 | 2,036 | 901,381 | 1.01 | 2,288 | ||||||||||||||||||
Portion of noninterest-bearing funding sources
|
203,460 | — | — | 183,679 | — | — | ||||||||||||||||||
Total funding sources
|
$ | 1,064,947 | 0.76 | 2,036 | 1,085,060 | 0.84 | 2,288 | |||||||||||||||||
Net interest margin and net interest income on
a taxable-equivalent basis (
6
)
|
4.25 | % | $ | 11,254 | 4.36 | % | $ | 11,861 | ||||||||||||||||
Noninterest-earning assets
|
||||||||||||||||||||||||
Cash and due from banks
|
$ | 17,000 | 18,084 | |||||||||||||||||||||
Goodwill
|
24,829 | 24,435 | ||||||||||||||||||||||
Other
|
113,592 | 118,472 | ||||||||||||||||||||||
Total noninterest-earning assets
|
$ | 155,421 | 160,991 | |||||||||||||||||||||
Noninterest-bearing funding sources
|
||||||||||||||||||||||||
Deposits
|
$ | 184,837 | 172,588 | |||||||||||||||||||||
Other liabilities
|
50,013 | 47,646 | ||||||||||||||||||||||
Total equity
|
124,031 | 124,436 | ||||||||||||||||||||||
Noninterest-bearing funding sources used to
fund earning assets
|
(203,460 | ) | (183,679 | ) | ||||||||||||||||||||
Net noninterest-bearing funding sources
|
$ | 155,421 | 160,991 | |||||||||||||||||||||
Total assets
|
$ | 1,220,368 | 1,246,051 | |||||||||||||||||||||
|
(1) | Our average prime rate was 3.25% for the quarters and nine months ended September 30, 2010 and 2009. The average three-month London Interbank Offered Rate (LIBOR) was 0.39% and 0.41% for the quarters ended September 30, 2010 and 2009, respectively, and 0.36% and 0.83% for the nine months of 2010 and 2009, 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 and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts include the effects of any unrealized gain or loss marks but those marks carried in other comprehensive income are not included in yield determination of affected earning assets. Thus yields are based on amortized cost balances computed on a settlement date basis. | |
(4) | Includes certain preferred securities. | |
(5) | Nonaccrual loans and related income are included in their respective loan categories. | |
(6) | Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented. |
8
Nine months ended September 30 | , | |||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Yields/ | income/ | Average | Yields/ | income/ | |||||||||||||||||||
(in millions) | balance | rates | expense | balance | rates | expense | ||||||||||||||||||
Earning assets
|
||||||||||||||||||||||||
Federal funds sold, securities purchased under
resale agreements and other short-term investments
|
$ | 59,905 | 0.35 | % | $ | 156 | 20,411 | 0.73 | % | $ | 111 | |||||||||||||
Trading assets
|
28,588 | 3.82 | 819 | 20,389 | 4.64 | 709 | ||||||||||||||||||
Debt securities available for sale (3):
|
||||||||||||||||||||||||
Securities of U.S. Treasury and federal agencies
|
2,013 | 3.36 | 49 | 2,514 | 2.61 | 48 | ||||||||||||||||||
Securities of U.S. states and political subdivisions
|
15,716 | 6.29 | 725 | 12,409 | 6.39 | 623 | ||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Federal agencies
|
74,330 | 5.38 | 2,838 | 87,916 | 5.45 | 3,492 | ||||||||||||||||||
Residential and commercial
|
33,133 | 10.58 | 2,546 | 41,070 | 9.05 | 3,150 | ||||||||||||||||||
Total mortgage-backed securities
|
107,463 | 7.01 | 5,384 | 128,986 | 6.72 | 6,642 | ||||||||||||||||||
Other debt securities (4)
|
33,727 | 6.56 | 1,557 | 31,437 | 7.01 | 1,691 | ||||||||||||||||||
Total debt securities available for sale(4)
|
158,919 | 6.80 | 7,715 | 175,346 | 6.69 | 9,004 | ||||||||||||||||||
Mortgages held for sale (5)
|
33,903 | 4.88 | 1,241 | 38,315 | 5.16 | 1,484 | ||||||||||||||||||
Loans held for sale (5)
|
4,660 | 2.46 | 86 | 6,693 | 3.01 | 151 | ||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||||||||||
Commercial
|
150,153 | 4.83 | 5,431 | 186,610 | 4.10 | 5,725 | ||||||||||||||||||
Real estate mortgage
|
98,264 | 3.91 | 2,875 | 95,928 | 3.50 | 2,510 | ||||||||||||||||||
Real estate construction
|
32,770 | 3.27 | 801 | 41,735 | 2.89 | 901 | ||||||||||||||||||
Lease financing
|
13,592 | 9.28 | 946 | 14,968 | 9.04 | 1,015 | ||||||||||||||||||
Total commercial and commercial real estate
|
294,779 | 4.56 | 10,053 | 339,241 | 4.00 | 10,151 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Real estate 1-4 family first mortgage
|
237,848 | 5.22 | 9,305 | 240,409 | 5.51 | 9,926 | ||||||||||||||||||
Real estate 1-4 family junior lien mortgage
|
102,839 | 4.47 | 3,444 | 108,094 | 4.81 | 3,894 | ||||||||||||||||||
Credit card
|
22,539 | 13.32 | 2,251 | 23,236 | 12.16 | 2,118 | ||||||||||||||||||
Other revolving credit and installment
|
88,998 | 6.49 | 4,320 | 91,240 | 6.60 | 4,502 | ||||||||||||||||||
Total consumer
|
452,224 | 5.70 | 19,320 | 462,979 | 5.90 | 20,440 | ||||||||||||||||||
Foreign
|
29,302 | 3.46 | 758 | 30,856 | 4.02 | 929 | ||||||||||||||||||
Total loans(5)
|
776,305 | 5.18 | 30,131 | 833,076 | 5.05 | 31,520 | ||||||||||||||||||
Other
|
6,021 | 3.45 | 156 | 6,102 | 3.02 | 137 | ||||||||||||||||||
Total earning assets
|
$ | 1,068,301 | 5.07 | % | $ | 40,304 | 1,100,332 | 5.21 | % | $ | 43,116 | |||||||||||||
Funding sources
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Interest-bearing checking
|
$ | 60,961 | 0.13 | % | $ | 57 | 73,195 | 0.14 | % | $ | 77 | |||||||||||||
Market rate and other savings
|
412,060 | 0.27 | 822 | 339,081 | 0.42 | 1,072 | ||||||||||||||||||
Savings certificates
|
89,824 | 1.43 | 962 | 150,607 | 1.14 | 1,280 | ||||||||||||||||||
Other time deposits
|
15,066 | 2.08 | 235 | 21,794 | 1.97 | 321 | ||||||||||||||||||
Deposits in foreign offices
|
54,973 | 0.23 | 94 | 50,907 | 0.29 | 111 | ||||||||||||||||||
Total interest-bearing deposits
|
632,884 | 0.46 | 2,170 | 635,584 | 0.60 | 2,861 | ||||||||||||||||||
Short-term borrowings
|
45,549 | 0.22 | 75 | 58,447 | 0.50 | 217 | ||||||||||||||||||
Long-term debt
|
193,724 | 2.57 | 3,735 | 238,909 | 2.55 | 4,568 | ||||||||||||||||||
Other liabilities
|
6,393 | 3.38 | 162 | 4,675 | 3.50 | 122 | ||||||||||||||||||
Total interest-bearing liabilities
|
878,550 | 0.93 | 6,142 | 937,615 | 1.11 | 7,768 | ||||||||||||||||||
Portion of noninterest-bearing funding sources
|
189,751 | — | — | 162,717 | — | — | ||||||||||||||||||
Total funding sources
|
$ | 1,068,301 | 0.77 | 6,142 | 1,100,332 | 0.94 | 7,768 | |||||||||||||||||
Net interest margin and net interest income on
a taxable-equivalent basis (
6
)
|
4.30 | % | $ | 34,162 | 4.27 | % | $ | 35,348 | ||||||||||||||||
Noninterest-earning assets
|
||||||||||||||||||||||||
Cash and due from banks
|
$ | 17,484 | 19,218 | |||||||||||||||||||||
Goodwill
|
24,822 | 23,964 | ||||||||||||||||||||||
Other
|
112,928 | 126,557 | ||||||||||||||||||||||
Total noninterest-earning assets
|
$ | 155,234 | 169,739 | |||||||||||||||||||||
Noninterest-bearing funding sources
|
||||||||||||||||||||||||
Deposits
|
$ | 177,975 | 169,187 | |||||||||||||||||||||
Other liabilities
|
46,174 | 49,249 | ||||||||||||||||||||||
Total equity
|
120,836 | 114,020 | ||||||||||||||||||||||
Noninterest-bearing funding sources used to
fund earning assets
|
(189,751 | ) | (162,717 | ) | ||||||||||||||||||||
Net noninterest-bearing funding sources
|
$ | 155,234 | 169,739 | |||||||||||||||||||||
Total assets
|
$ | 1,223,535 | 1,270,071 | |||||||||||||||||||||
|
9
Quarter ended Sept. 30 | , | % | Nine months ended Sept. 30 | , | % | |||||||||||||||||||
(in millions) | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
Service charges on deposit accounts
|
$ | 1,132 | 1,478 | (23 | )% | $ | 3,881 | 4,320 | (10 | )% | ||||||||||||||
Trust and investment fees:
|
||||||||||||||||||||||||
Trust, investment and IRA fees
|
924 | 989 | (7 | ) | 3,008 | 2,550 | 18 | |||||||||||||||||
Commissions and all other fees
|
1,640 | 1,513 | 8 | 4,968 | 4,580 | 8 | ||||||||||||||||||
Total trust and investment fees
|
2,564 | 2,502 | 2 | 7,976 | 7,130 | 12 | ||||||||||||||||||
Card fees
|
935 | 946 | (1 | ) | 2,711 | 2,722 | — | |||||||||||||||||
Other fees:
|
||||||||||||||||||||||||
Cash network fees
|
73 | 60 | 22 | 186 | 176 | 6 | ||||||||||||||||||
Charges and fees on loans
|
424 | 453 | (6 | ) | 1,244 | 1,326 | (6 | ) | ||||||||||||||||
Processing and all other fees
|
507 | 437 | 16 | 1,497 | 1,312 | 14 | ||||||||||||||||||
Total other fees
|
1,004 | 950 | 6 | 2,927 | 2,814 | 4 | ||||||||||||||||||
Mortgage banking (1):
|
||||||||||||||||||||||||
Servicing income, net
|
516 | 1,919 | (73 | ) | 3,100 | 3,641 | (15 | ) | ||||||||||||||||
Net gains on mortgage loan origination/sales activities
|
1,983 | 1,148 | 73 | 3,880 | 4,976 | (22 | ) | |||||||||||||||||
Total mortgage banking
|
2,499 | 3,067 | (19 | ) | 6,980 | 8,617 | (19 | ) | ||||||||||||||||
Insurance
|
397 | 468 | (15 | ) | 1,562 | 1,644 | (5 | ) | ||||||||||||||||
Net gains from trading activities
|
470 | 622 | (24 | ) | 1,116 | 2,158 | (48 | ) | ||||||||||||||||
Net losses on debt securities available for sale
|
(114 | ) | (40 | ) | 185 | (56 | ) | (237 | ) | (76 | ) | |||||||||||||
Net gains (losses) from equity investments
|
131 | 29 | 352 | 462 | (88 | ) | NM | |||||||||||||||||
Operating leases
|
222 | 224 | (1 | ) | 736 | 522 | 41 | |||||||||||||||||
All other
|
536 | 536 | — | 1,727 | 1,564 | 10 | ||||||||||||||||||
Total
|
$ | 9,776 | 10,782 | (9 | ) | $ | 30,022 | 31,166 | (4 | ) | ||||||||||||||
|
NM — Not meaningful | ||
(1) | 2009 categories have been revised to conform to current presentation. |
10
11
Quarter ended Sept. 30 | , | % | Nine months ended Sept. 30 | , | % | |||||||||||||||||||
(in millions) | 2010 | 2009 | Change | 2010 | 2009 | Change | ||||||||||||||||||
Salaries
|
$ | 3,478 | 3,428 | 1 | % | $ | 10,356 | 10,252 | 1 | % | ||||||||||||||
Commission and incentive compensation
|
2,280 | 2,051 | 11 | 6,497 | 5,935 | 9 | ||||||||||||||||||
Employee benefits
|
1,074 | 1,034 | 4 | 3,459 | 3,545 | (2 | ) | |||||||||||||||||
Equipment
|
557 | 563 | (1 | ) | 1,823 | 1,825 | — | |||||||||||||||||
Net occupancy
|
742 | 778 | (5 | ) | 2,280 | 2,357 | (3 | ) | ||||||||||||||||
Core deposit and other intangibles
|
548 | 642 | (15 | ) | 1,650 | 1,935 | (15 | ) | ||||||||||||||||
FDIC and other deposit assessments
|
300 | 228 | 32 | 896 | 1,547 | (42 | ) | |||||||||||||||||
Outside professional services
|
533 | 489 | 9 | 1,589 | 1,350 | 18 | ||||||||||||||||||
Contract services
|
430 | 254 | 69 | 1,161 | 726 | 60 | ||||||||||||||||||
Foreclosed assets
|
366 | 243 | 51 | 1,085 | 678 | 60 | ||||||||||||||||||
Outside data processing
|
263 | 251 | 5 | 811 | 745 | 9 | ||||||||||||||||||
Postage, stationery and supplies
|
233 | 211 | 10 | 705 | 701 | 1 | ||||||||||||||||||
Operating losses
|
230 | 117 | 97 | 1,065 | 448 | 138 | ||||||||||||||||||
Insurance
|
62 | 208 | (70 | ) | 374 | 734 | (49 | ) | ||||||||||||||||
Telecommunications
|
146 | 142 | 3 | 445 | 464 | (4 | ) | |||||||||||||||||
Travel and entertainment
|
195 | 151 | 29 | 562 | 387 | 45 | ||||||||||||||||||
Advertising and promotion
|
170 | 160 | 6 | 438 | 396 | 11 | ||||||||||||||||||
Operating leases
|
21 | 52 | (60 | ) | 85 | 183 | (54 | ) | ||||||||||||||||
All other
|
625 | 682 | (8 | ) | 1,835 | 1,991 | (8 | ) | ||||||||||||||||
Total
|
$ | 12,253 | 11,684 | 5 | $ | 37,116 | 36,199 | 3 | ||||||||||||||||
|
12
Wealth, Brokerage | ||||||||||||||||||||||||
Community Banking | Wholesale Banking | and Retirement | ||||||||||||||||||||||
(in billions) | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||
Quarter ended September 30,
|
||||||||||||||||||||||||
Revenue
|
$ | 13.6 | 15.6 | 5.2 | 4.9 | 2.9 | 2.8 | |||||||||||||||||
Net income
|
2.0 | 2.7 | 1.4 | 0.6 | 0.3 | 0.1 | ||||||||||||||||||
Average loans
|
527.0 | 553.2 | 222.5 | 247.0 | 42.6 | 45.4 | ||||||||||||||||||
Average core deposits
|
535.7 | 550.2 | 172.2 | 146.8 | 120.7 | 116.3 | ||||||||||||||||||
|
||||||||||||||||||||||||
Nine months ended September 30,
|
||||||||||||||||||||||||
Revenue
|
$ | 41.4 | 45.2 | 16.2 | 15.1 | 8.7 | 8.1 | |||||||||||||||||
Net income
|
5.2 | 6.8 | 4.1 | 2.8 | 0.8 | 0.5 | ||||||||||||||||||
Average loans
|
540.3 | 562.2 | 226.0 | 261.1 | 43.0 | 46.0 | ||||||||||||||||||
Average core deposits
|
533.7 | 556.9 | 164.9 | 141.3 | 121.1 | 110.9 | ||||||||||||||||||
13
14
Sept. 30, 2010 | December 31, 2009 | |||||||||||||||||||||||
Net | Net | |||||||||||||||||||||||
unrealized | Fair | unrealized | Fair | |||||||||||||||||||||
(in billions) | Cost | gain | value | Cost | gain | value | ||||||||||||||||||
Debt securities available for sale
|
$ | 163.1 | 8.5 | 171.6 | 162.3 | 4.8 | 167.1 | |||||||||||||||||
Marketable equity securities
|
4.4 | 0.9 | 5.3 | 4.8 | 0.8 | 5.6 | ||||||||||||||||||
Total securities available for sale
|
$ | 167.5 | 9.4 | 176.9 | 167.1 | 5.6 | 172.7 | |||||||||||||||||
|
15
Expected | ||||||||||||
remaining | ||||||||||||
Fair | Net unrealized | maturity | ||||||||||
(in billions) | value | gains (losses) | (in years) | |||||||||
At September 30, 2010
|
$ | 117.4 | 6.1 | 3.5 | ||||||||
At September 30, 2010, assuming a 200 basis point:
|
||||||||||||
Increase in interest rates
|
107.8 | (3.5 | ) | 4.9 | ||||||||
Decrease in interest rates
|
122.6 | 11.3 | 2.8 | |||||||||
Sept. 30 | , | Dec. 31 | , | |||||
(in millions) | 2010 | 2009 | ||||||
Commercial and commercial real estate
|
$ | 286,980 | $ | 307,067 | ||||
Consumer
|
436,993 | 446,305 | ||||||
Foreign
|
29,691 | 29,398 | ||||||
Total loans
|
$ | 753,664 | 782,770 | |||||
Sept. 30 | , | Dec. 31 | , | |||||||||
(in millions) | 2010 | 2009 | % Change | |||||||||
Noninterest-bearing
|
$ | 184,418 | 181,356 | 2 | % | |||||||
Interest-bearing checking
|
59,944 | 63,225 | (5 | ) | ||||||||
Market rate and other savings
|
415,706 | 402,448 | 3 | |||||||||
Savings certificates
|
81,448 | 100,857 | (19 | ) | ||||||||
Foreign deposits (1)
|
30,276 | 32,851 | (8 | ) | ||||||||
Core deposits
|
771,792 | 780,737 | (1 | ) | ||||||||
Other time and savings deposits
|
19,831 | 16,142 | 23 | |||||||||
Other foreign deposits
|
22,889 | 27,139 | (16 | ) | ||||||||
Total deposits
|
$ | 814,512 | 824,018 | (1 | ) | |||||||
(1) | Reflects Eurodollar sweep balances included in core deposits. |
16
Incremental | ||||
assets as of | ||||
(in millions) | Jan. 1, 2010 | |||
Structure type:
|
||||
Residential mortgage loans — nonconforming (1)
|
$ | 11,479 | ||
Commercial paper conduit
|
5,088 | |||
Other
|
2,002 | |||
Total
|
$ | 18,569 | ||
(1) | Represents certain of our residential mortgage loans that are not guaranteed by GSEs (“nonconforming”). |
17
• | Quarterly credit losses declined 9% to $4.1 billion in third quarter 2010 from $4.5 billion in second quarter 2010 and declined 20% from third quarter 2009. This improvement in losses was broad based across most of the consumer portfolios, with reduced losses in the home equity, private student lending, Wells Fargo Financial, Pick-a-Pay, wealth management and credit card portfolios. | |
• | Losses in the commercial portfolio continued to improve from the higher levels experienced last year, including a 17% linked-quarter reduction in CRE losses. | |
• | Our PCI loan portfolio continued to perform better than originally expected. In third quarter 2010 $639 million of nonaccretable difference was reclassified to accretable yield and is expected to accrete to future income over the remaining life of the underlying loans. In addition, $202 million of nonaccretable difference was released into income for commercial loans that were paid off or sold. | |
• | Based on declining losses and improved credit quality trends, the provision for credit losses of $3.4 billion was $650 million less than net charge-offs in third quarter 2010. Absent significant deterioration in the economy, we currently expect future reductions in the allowance for loan losses. |
18
Outstanding balances | ||||||||
Sept. 30 | , | Dec. 31 | , | |||||
(in billions) | 2010 | 2009 | ||||||
Commercial and commercial real estate PCI loans (1)
|
$ | 7.7 | 11.3 | |||||
Pick-a-Pay mortgage (1)
|
77.3 | 85.2 | ||||||
Liquidating home equity
|
7.3 | 8.4 | ||||||
Legacy Wells Fargo Financial indirect auto
|
7.1 | 11.3 | ||||||
Legacy Wells Fargo Financial debt consolidation (2)
|
19.7 | 22.4 | ||||||
Total non-strategic and liquidating loan portfolios
|
$ | 119.1 | 138.6 | |||||
(1) | Net of purchase accounting adjustments related to PCI loans. | |
(2) | In July 2010, we announced the restructuring of our Wells Fargo Financial division and exiting the origination of non-prime portfolio mortgage loans. |
19
September 30, 2010 | ||||||||||||||||||||||||||||
Real estate mortgage | Real estate construction | Total | % of | |||||||||||||||||||||||||
Nonaccrual | Outstanding | Nonaccrual | Outstanding | Nonaccrual | Outstanding | total | ||||||||||||||||||||||
(in millions) | loans | balance (1) | loans | balance (1) | loans | balance (1) | loans | |||||||||||||||||||||
By state:
|
||||||||||||||||||||||||||||
PCI loans:
|
||||||||||||||||||||||||||||
Florida
|
$ | — | 471 | — | 720 | — | 1,191 | * | % | |||||||||||||||||||
California
|
— | 625 | — | 228 | — | 853 | * | |||||||||||||||||||||
North Carolina
|
— | 187 | — | 416 | — | 603 | * | |||||||||||||||||||||
Georgia
|
— | 227 | — | 323 | — | 550 | * | |||||||||||||||||||||
New York
|
— | 288 | — | 268 | — | 556 | * | |||||||||||||||||||||
Other
|
— | 1,320 | — | 1,594 | — | 2,914 | (2) | * | ||||||||||||||||||||
Total PCI loans
|
— | 3,118 | — | 3,549 | — | 6,667 | 1 | |||||||||||||||||||||
All other loans:
|
||||||||||||||||||||||||||||
California
|
1,174 | 23,561 | 508 | 3,981 | 1,682 | 27,542 | 4 | |||||||||||||||||||||
Florida
|
921 | 9,899 | 398 | 2,374 | 1,319 | 12,273 | 2 | |||||||||||||||||||||
Texas
|
319 | 6,578 | 306 | 2,573 | 625 | 9,151 | 1 | |||||||||||||||||||||
North Carolina
|
321 | 4,728 | 302 | 1,612 | 623 | 6,340 | * | |||||||||||||||||||||
Georgia
|
325 | 3,612 | 162 | 1,011 | 487 | 4,623 | * | |||||||||||||||||||||
Virginia
|
66 | 3,779 | 163 | 1,634 | 229 | 5,413 | * | |||||||||||||||||||||
Arizona
|
234 | 3,390 | 221 | 794 | 455 | 4,184 | * | |||||||||||||||||||||
New York
|
49 | 3,471 | 41 | 1,139 | 90 | 4,610 | * | |||||||||||||||||||||
New Jersey
|
111 | 2,684 | 47 | 668 | 158 | 3,352 | * | |||||||||||||||||||||
Colorado
|
96 | 2,865 | 89 | 730 | 185 | 3,595 | * | |||||||||||||||||||||
Other
|
1,463 | 31,070 | 961 | 7,846 | 2,424 | 38,916 | (3) | 5 | ||||||||||||||||||||
Total all other loans
|
5,079 | 95,637 | 3,198 | 24,362 | 8,277 | 119,999 | 16 | |||||||||||||||||||||
Total
|
$ | 5,079 | 98,755 | 3,198 | 27,911 | 8,277 | 126,666 | 17 | % | |||||||||||||||||||
By property:
|
||||||||||||||||||||||||||||
PCI loans:
|
||||||||||||||||||||||||||||
Apartments
|
$ | — | 585 | — | 915 | — | 1,500 | * | % | |||||||||||||||||||
Office buildings
|
— | 1,093 | — | 352 | — | 1,445 | * | |||||||||||||||||||||
1-4 family land
|
— | 238 | — | 728 | — | 966 | * | |||||||||||||||||||||
Retail (excluding shopping center)
|
— | 430 | — | 103 | — | 533 | * | |||||||||||||||||||||
Land (excluding 1-4 family)
|
— | 24 | — | 443 | — | 467 | * | |||||||||||||||||||||
Other
|
— | 748 | — | 1,008 | — | 1,756 | * | |||||||||||||||||||||
Total PCI loans
|
— | 3,118 | — | 3,549 | — | 6,667 | 1 | |||||||||||||||||||||
All other loans:
|
||||||||||||||||||||||||||||
Office buildings
|
1,138 | 25,126 | 269 | 3,002 | 1,407 | 28,128 | 4 | |||||||||||||||||||||
Industrial/warehouse
|
730 | 13,026 | 87 | 1,116 | 817 | 14,142 | 2 | |||||||||||||||||||||
Real estate — other
|
657 | 13,181 | 103 | 896 | 760 | 14,077 | 2 | |||||||||||||||||||||
Apartments
|
328 | 7,989 | 424 | 4,242 | 752 | 12,231 | 2 | |||||||||||||||||||||
Retail (excluding shopping center)
|
617 | 9,708 | 137 | 935 | 754 | 10,643 | 1 | |||||||||||||||||||||
Land (excluding 1-4 family)
|
18 | 491 | 712 | 7,227 | 730 | 7,718 | 1 | |||||||||||||||||||||
Shopping center
|
338 | 6,483 | 264 | 1,772 | 602 | 8,255 | 1 | |||||||||||||||||||||
Hotel/motel
|
509 | 5,658 | 84 | 874 | 593 | 6,532 | * | |||||||||||||||||||||
1-4 family land
|
162 | 357 | 641 | 2,447 | 803 | 2,804 | * | |||||||||||||||||||||
Institutional
|
100 | 2,704 | 9 | 253 | 109 | 2,957 | * | |||||||||||||||||||||
Other
|
482 | 10,914 | 468 | 1,598 | 950 | 12,512 | 2 | |||||||||||||||||||||
Total all other loans
|
5,079 | 95,637 | 3,198 | 24,362 | 8,277 | 119,999 | 16 | |||||||||||||||||||||
Total
|
$ | 5,079 | 98,755 | (4) | 3,198 | 27,911 | 8,277 | 126,666 | 17 | % | ||||||||||||||||||
* | Less than 1% | |
(1) | For PCI loans amounts represent carrying value. | |
(2) | Includes 35 states; no state had loans in excess of $526 million. | |
(3) | Includes 40 states; no state had loans in excess of $3.0 billion. | |
(4) | Includes $40.7 billion of loans to owner-occupants where 51% or more of the property is used in the conduct of their business. |
20
December 31, 2009 | ||||||||||||||||||||||||||||
Real estate mortgage | Real estate construction | Total | % of | |||||||||||||||||||||||||
Nonaccrual | Outstanding | Nonaccrual | Outstanding | Nonaccrual | Outstanding | total | ||||||||||||||||||||||
(in millions) | loans | balance (1) | loans | balance (1) | loans | balance (1) | loans | |||||||||||||||||||||
By state:
|
||||||||||||||||||||||||||||
PCI loans:
|
||||||||||||||||||||||||||||
Florida
|
$ | — | 629 | — | 1,115 | — | 1,744 | * | % | |||||||||||||||||||
California
|
— | 995 | — | 271 | — | 1,266 | * | |||||||||||||||||||||
North Carolina
|
— | 150 | — | 618 | — | 768 | * | |||||||||||||||||||||
Georgia
|
— | 226 | — | 523 | — | 749 | * | |||||||||||||||||||||
Virginia
|
— | 219 | — | 480 | — | 699 | * | |||||||||||||||||||||
Other
|
— | 1,918 | — | 2,200 | — | 4,118 | (5) | * | ||||||||||||||||||||
Total PCI loans
|
— | 4,137 | — | 5,207 | — | 9,344 | 1 | |||||||||||||||||||||
All other loans:
|
||||||||||||||||||||||||||||
California
|
1,132 | 22,739 | 874 | 5,024 | 2,006 | 27,763 | 4 | |||||||||||||||||||||
Florida
|
563 | 9,899 | 374 | 3,227 | 937 | 13,126 | 2 | |||||||||||||||||||||
Texas
|
225 | 6,098 | 256 | 3,054 | 481 | 9,152 | 1 | |||||||||||||||||||||
North Carolina
|
179 | 4,983 | 161 | 2,079 | 340 | 7,062 | * | |||||||||||||||||||||
Georgia
|
207 | 3,809 | 127 | 1,507 | 334 | 5,316 | * | |||||||||||||||||||||
Virginia
|
53 | 3,080 | 117 | 1,974 | 170 | 5,054 | * | |||||||||||||||||||||
New York
|
53 | 3,591 | 49 | 1,456 | 102 | 5,047 | * | |||||||||||||||||||||
Arizona
|
158 | 3,810 | 200 | 1,193 | 358 | 5,003 | * | |||||||||||||||||||||
New Jersey
|
66 | 2,904 | 23 | 768 | 89 | 3,672 | * | |||||||||||||||||||||
Colorado
|
78 | 2,252 | 110 | 875 | 188 | 3,127 | * | |||||||||||||||||||||
Other
|
982 | 30,225 | 1,022 | 10,614 | 2,004 | 40,839 | (6) | 5 | ||||||||||||||||||||
Total all other loans
|
3,696 | 93,390 | 3,313 | 31,771 | 7,009 | 125,161 | 16 | |||||||||||||||||||||
Total
|
$ | 3,696 | 97,527 | 3,313 | 36,978 | 7,009 | 134,505 | 17 | % | |||||||||||||||||||
By property:
|
||||||||||||||||||||||||||||
PCI loans:
|
||||||||||||||||||||||||||||
Apartments
|
$ | — | 810 | — | 1,300 | — | 2,110 | * | % | |||||||||||||||||||
Office buildings
|
— | 1,443 | — | 399 | — | 1,842 | * | |||||||||||||||||||||
1-4 family land
|
— | 270 | — | 1,076 | — | 1,346 | * | |||||||||||||||||||||
1-4 family structure
|
— | 96 | — | 693 | — | 789 | * | |||||||||||||||||||||
Land (excluding 1-4 family)
|
— | — | — | 759 | — | 759 | * | |||||||||||||||||||||
Other
|
— | 1,518 | — | 980 | — | 2,498 | * | |||||||||||||||||||||
Total PCI loans
|
— | 4,137 | — | 5,207 | — | 9,344 | 1 | |||||||||||||||||||||
All other loans:
|
||||||||||||||||||||||||||||
Office buildings
|
887 | 24,688 | 188 | 4,005 | 1,075 | 28,693 | 4 | |||||||||||||||||||||
Industrial/warehouse
|
508 | 13,643 | 36 | 1,281 | 544 | 14,924 | 2 | |||||||||||||||||||||
Real estate — other
|
550 | 13,563 | 102 | 1,105 | 652 | 14,668 | 2 | |||||||||||||||||||||
Apartments
|
267 | 7,102 | 254 | 5,138 | 521 | 12,240 | 2 | |||||||||||||||||||||
Retail (excluding shopping center)
|
597 | 10,457 | 108 | 1,327 | 705 | 11,784 | 2 | |||||||||||||||||||||
Land (excluding 1-4 family)
|
9 | 262 | 778 | 8,943 | 787 | 9,205 | 1 | |||||||||||||||||||||
Shopping center
|
204 | 5,912 | 210 | 2,398 | 414 | 8,310 | 1 | |||||||||||||||||||||
Hotel/motel
|
208 | 5,216 | 123 | 1,160 | 331 | 6,376 | * | |||||||||||||||||||||
1-4 family land
|
77 | 232 | 764 | 3,156 | 841 | 3,388 | * | |||||||||||||||||||||
1-4 family structure
|
60 | 1,065 | 689 | 2,199 | 749 | 3,264 | * | |||||||||||||||||||||
Other
|
329 | 11,250 | 61 | 1,059 | 390 | 12,309 | 2 | |||||||||||||||||||||
Total all other loans
|
3,696 | 93,390 | 3,313 | 31,771 | 7,009 | 125,161 | 16 | |||||||||||||||||||||
Total
|
$ | 3,696 | 97,527 | (7) | 3,313 | 36,978 | 7,009 | 134,505 | 17 | % | ||||||||||||||||||
(5) | Includes 38 states; no state had loans in excess of $605 million. | |
(6) | Includes 40 states; no state had loans in excess of $3.0 billion. | |
(7) | Includes $42.1 billion of loans to owner-occupants where 51% or more of the property is used in the conduct of their business. |
21
September 30, 2010 | December 31, 2009 | |||||||||||||||||||||||
% of | % of | |||||||||||||||||||||||
Nonaccrual | Outstanding | total | Nonaccrual | Outstanding | total | |||||||||||||||||||
(in millions) | loans | balance (1) | loans | loans | balance (1) | loans | ||||||||||||||||||
PCI loans:
|
||||||||||||||||||||||||
Investors
|
$ | — | 249 | * | % | $ | — | 140 | * | % | ||||||||||||||
Media
|
— | 180 | * | — | 314 | * | ||||||||||||||||||
Insurance
|
— | 99 | * | — | 118 | * | ||||||||||||||||||
Technology
|
— | 67 | * | — | 72 | * | ||||||||||||||||||
Leisure
|
— | 52 | * | — | 110 | * | ||||||||||||||||||
Healthcare
|
— | 44 | * | — | 51 | * | ||||||||||||||||||
Other
|
— | 296 | (2) | * | — | 1,106 | (2) | * | ||||||||||||||||
Total PCI loans
|
— | 987 | * | — | 1,911 | * | ||||||||||||||||||
All other loans:
|
||||||||||||||||||||||||
Financial institutions
|
202 | 9,739 | 1 | 496 | 11,111 | 1 | ||||||||||||||||||
Cyclical retailers
|
71 | 8,738 | 1 | 71 | 8,188 | 1 | ||||||||||||||||||
Healthcare
|
106 | 7,665 | 1 | 88 | 8,397 | 1 | ||||||||||||||||||
Food and beverage
|
97 | 8,085 | 1 | 77 | 8,316 | 1 | ||||||||||||||||||
Oil and gas
|
181 | 7,560 | 1 | 202 | 8,464 | 1 | ||||||||||||||||||
Industrial equipment
|
137 | 6,301 | * | 119 | 7,524 | * | ||||||||||||||||||
Business services
|
132 | 5,377 | * | 99 | 6,722 | * | ||||||||||||||||||
Transportation
|
50 | 6,151 | * | 31 | 6,469 | * | ||||||||||||||||||
Utilities
|
194 | 5,011 | * | 15 | 5,752 | * | ||||||||||||||||||
Real estate other
|
116 | 5,735 | * | 167 | 6,570 | * | ||||||||||||||||||
Technology
|
43 | 5,738 | * | 72 | 5,489 | * | ||||||||||||||||||
Investors
|
166 | 5,029 | * | 196 | 5,347 | * | ||||||||||||||||||
Other
|
2,746 | 78,198 | (3) | 10 | 2,935 | 82,302 | (3) | 11 | ||||||||||||||||
Total all other loans
|
4,241 | 159,327 | 21 | 4,568 | 170,651 | 22 | ||||||||||||||||||
Total
|
$ | 4,241 | 160,314 | 21 | % | $ | 4,568 | 172,562 | 22 | % | ||||||||||||||
* | Less than 1% | |
(1) | For PCI loans amounts represent carrying value. | |
(2) | No other single category had loans in excess of $44 million at September 30, 2010, or $122 million (residential construction) at December 31, 2009. | |
(3) | No other single category had loans in excess of $4.4 billion at September 30, 2010, or $5.8 billion (public administration) at December 31, 2009. The next largest categories included public administration, hotel/restaurant, securities firms, media and non-residential construction. |
22
23
Commercial | , | |||||||||||||||
CRE and | Other | |||||||||||||||
(in millions) | foreign | Pick-a-Pay | consumer | Total | ||||||||||||
Balance, December 31, 2008
|
$ | 10,410 | 26,485 | 4,069 | 40,964 | |||||||||||
Release of nonaccretable difference due to:
|
||||||||||||||||
Loans resolved by settlement with borrower (1)
|
(330 | ) | — | — | (330 | ) | ||||||||||
Loans resolved by sales to third parties (2)
|
(86 | ) | — | (85 | ) | (171 | ) | |||||||||
Reclassification to accretable yield for loans with improving cash flows (3)
|
(138 | ) | (27 | ) | (276 | ) | (441 | ) | ||||||||
Use of nonaccretable difference due to:
|
||||||||||||||||
Losses from loan resolutions and write-downs (4)
|
(4,853 | ) | (10,218 | ) | (2,086 | ) | (17,157 | ) | ||||||||
Balance, December 31, 2009
|
5,003 | 16,240 | 1,622 | 22,865 | ||||||||||||
Release of nonaccretable difference due to:
|
||||||||||||||||
Loans resolved by settlement with borrower (1)
|
(739 | ) | — | — | (739 | ) | ||||||||||
Loans resolved by sales to third parties (2)
|
(151 | ) | — | — | (151 | ) | ||||||||||
Reclassification to accretable yield for loans with improving cash flows (3)
|
(561 | ) | (2,356 | ) | (317 | ) | (3,234 | ) | ||||||||
Use of nonaccretable difference due to:
|
||||||||||||||||
Losses from loan resolutions and write-downs (4)
|
(1,478 | ) | (2,409 | ) | (325 | ) | (4,212 | ) | ||||||||
Balance, September 30, 2010
|
$ | 2,074 | 11,475 | 980 | 14,529 | |||||||||||
|
||||||||||||||||
Balance, June 30, 2010
|
$ | 2,923 | 11,992 | 1,289 | 16,204 | |||||||||||
Release of nonaccretable difference due to:
|
||||||||||||||||
Loans resolved by settlement with borrower (1)
|
(153 | ) | — | — | (153 | ) | ||||||||||
Loans resolved by sales to third parties (2)
|
(49 | ) | — | — | (49 | ) | ||||||||||
Reclassification to accretable yield for loans with improving cash flows (3)
|
(392 | ) | — | (247 | ) | (639 | ) | |||||||||
Use of nonaccretable difference due to:
|
||||||||||||||||
Losses from loan resolutions and write-downs (4)
|
(255 | ) | (517 | ) | (62 | ) | (834 | ) | ||||||||
Balance, September 30, 2010
|
$ | 2,074 | 11,475 | 980 | 14,529 | |||||||||||
(1) | Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations. | |
(2) | Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale. | |
(3) | Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of return realized. Amounts reclassified to accretable yield are expected to be probable of realization over the estimated remaining life of the loan. | |
(4) | Write-downs to net realizable value of PCI loans are charged to the nonaccretable difference when 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. |
24
Commercial | , | |||||||||||||||
CRE and | Other | |||||||||||||||
(in millions) | foreign | Pick-a-Pay | consumer | Total | ||||||||||||
Release of unneeded nonaccretable difference due to:
|
||||||||||||||||
Loans resolved by settlement with borrower (1)
|
$ | 1,069 | — | — | 1,069 | |||||||||||
Loans resolved by sales to third parties (2)
|
237 | — | 85 | 322 | ||||||||||||
Reclassification to accretable yield for loans with
improving cash flows (3)
|
699 | 2,383 | 593 | 3,675 | ||||||||||||
Total releases of nonaccretable difference due to better
than expected losses
|
2,005 | 2,383 | 678 | 5,066 | ||||||||||||
Provision for worse than originally expected losses (4)
|
(1,565 | ) | — | (38 | ) | (1,603 | ) | |||||||||
Actual and projected losses on PCI loans
better than originally expected
|
$ | 440 | 2,383 | 640 | 3,463 | |||||||||||
(1) | Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations. | |
(2) | Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale. | |
(3) | Reclassification of nonaccretable difference for increased cash flow estimates to the accretable yield will result in increasing income and thus the rate of return realized. Amounts reclassified to accretable yield are expected to be probable of realization over the estimated remaining life of the loan. | |
(4) | Provision for additional losses recorded as a charge to income, when it is estimated that the expected cash flows for a PCI loan or pool of loans have decreased subsequent to the acquisition. |
September 30, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||
(in millions) | Outstandings | % of total | Outstandings | % of total | Outstandings | % of total | ||||||||||||||||||
Option payment loans
|
$ | 58,345 | 63 | % | $ | 73,060 | 70 | % | $ | 101,297 | 86 | % | ||||||||||||
Non-option payment adjustable-
|
||||||||||||||||||||||||
rate and fixed-rate loans
|
12,778 | 14 | 14,178 | 14 | 15,978 | 14 | ||||||||||||||||||
Full-term loan modifications
|
21,865 | 23 | 16,420 | 16 | — | — | ||||||||||||||||||
Total unpaid principal balance
|
$ | 92,988 | 100 | % | $ | 103,658 | 100 | % | $ | 117,275 | 100 | % | ||||||||||||
Total carrying value
|
$ | 77,304 | $ | 85,238 | $ | 95,315 | ||||||||||||||||||
25
26
PCI loans | All other loans | |||||||||||||||||||||||||||
Ratio of | ||||||||||||||||||||||||||||
carrying | ||||||||||||||||||||||||||||
Unpaid | Current | value to | Unpaid | Current | ||||||||||||||||||||||||
principal | LTV | Carrying | current | principal | LTV | Carrying | ||||||||||||||||||||||
(in millions) | balance | ratio (2) | value (3) | value | balance | ratio (2) | value (3) | |||||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||||||
California
|
$ | 32,475 | 134 | % | $ | 22,382 | 92 | % | $ | 21,914 | 88 | % | $ | 21,542 | ||||||||||||||
Florida
|
5,154 | 143 | 3,057 | 84 | 4,698 | 106 | 4,480 | |||||||||||||||||||||
New Jersey
|
1,565 | 99 | 1,243 | 78 | 2,671 | 81 | 2,647 | |||||||||||||||||||||
Texas
|
393 | 80 | 350 | 71 | 1,785 | 65 | 1,789 | |||||||||||||||||||||
Washington
|
577 | 100 | 501 | 86 | 1,353 | 82 | 1,334 | |||||||||||||||||||||
Other states
|
8,155 | 116 | 5,933 | 84 | 12,248 | 87 | 12,046 | |||||||||||||||||||||
Total Pick-a-Pay loans
|
$ | 48,319 | $ | 33,466 | $ | 44,669 | $ | 43,838 | ||||||||||||||||||||
December 31, 2009 |
||||||||||||||||||||||||||||
California
|
$ | 37,341 | 141 | % | $ | 25,022 | 94 | % | $ | 23,795 | 93 | % | $ | 23,626 | ||||||||||||||
Florida
|
5,751 | 139 | 3,199 | 77 | 5,046 | 104 | 4,942 | |||||||||||||||||||||
New Jersey
|
1,646 | 101 | 1,269 | 77 | 2,914 | 82 | 2,912 | |||||||||||||||||||||
Texas
|
442 | 82 | 399 | 74 | 1,967 | 66 | 1,973 | |||||||||||||||||||||
Washington
|
633 | 103 | 543 | 88 | 1,439 | 84 | 1,435 | |||||||||||||||||||||
Other states
|
9,283 | 116 | 6,597 | 82 | 13,401 | 87 | 13,321 | |||||||||||||||||||||
Total Pick-a-Pay loans
|
$ | 55,096 | $ | 37,029 | $ | 48,562 | $ | 48,209 | ||||||||||||||||||||
(1) | The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2010. The December 31, 2009 table has been revised to conform to the 2010 presentation of top five states. | |
(2) | The current LTV ratio is calculated as the unpaid principal balance plus the unpaid principal balance of any equity lines of credit that share common collateral divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas. | |
(3) | Carrying value, which does not reflect the allowance for loan losses, includes purchase accounting adjustments, which, for PCI loans are the nonaccretable difference and the accretable yield, and for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs. |
27
28
% of loans | Loss rate | |||||||||||||||||||||||
two payments | (annualized) | |||||||||||||||||||||||
Outstanding balances | or more past due | Quarter ended | ||||||||||||||||||||||
Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||
Core portfolio
|
||||||||||||||||||||||||
California
|
$ | 28,448 | 30,264 | 3.43 | % | 4.12 | 4.27 | 6.12 | ||||||||||||||||
Florida
|
12,353 | 12,038 | 5.38 | 5.48 | 5.80 | 6.98 | ||||||||||||||||||
New Jersey
|
8,821 | 8,379 | 3.19 | 2.50 | 1.95 | 1.51 | ||||||||||||||||||
Virginia
|
5,804 | 5,855 | 2.23 | 1.91 | 1.66 | 1.13 | ||||||||||||||||||
Pennsylvania
|
5,558 | 5,051 | 2.30 | 2.03 | 1.24 | 1.81 | ||||||||||||||||||
Other
|
52,404 | 53,811 | 2.80 | 2.85 | 2.76 | 3.04 | ||||||||||||||||||
Total (2)
|
113,388 | 115,398 | 3.22 | 3.35 | 3.28 | 3.90 | ||||||||||||||||||
Liquidating portfolio
|
||||||||||||||||||||||||
California
|
2,705 | 3,205 | 6.96 | 8.78 | 14.77 | 17.94 | ||||||||||||||||||
Florida
|
347 | 408 | 7.95 | 9.45 | 13.29 | 19.53 | ||||||||||||||||||
Arizona
|
158 | 193 | 8.73 | 10.46 | 21.14 | 19.29 | ||||||||||||||||||
Texas
|
132 | 154 | 2.36 | 1.94 | 2.17 | 2.40 | ||||||||||||||||||
Minnesota
|
96 | 108 | 5.44 | 4.15 | 10.18 | 7.53 | ||||||||||||||||||
Other
|
3,824 | 4,361 | 4.29 | 5.06 | 7.23 | 7.33 | ||||||||||||||||||
Total
|
7,262 | 8,429 | 5.53 | 6.74 | 10.59 | 12.16 | ||||||||||||||||||
Total core and liquidating portfolios
|
$ | 120,650 | 123,827 | 3.36 | 3.58 | 3.73 | 4.48 | |||||||||||||||||
(1) | Consists of real estate 1-4 family junior lien mortgages and lines of credit secured by real estate, excluding PCI loans. | |
(2) | Includes equity lines of credit and closed-end second liens associated with the Pick-a-Pay portfolio totaling $1.7 billion at September 30, 2010, and $1.8 billion at December 31, 2009. |
29
• | the full and timely collection of interest or principal becomes uncertain; | |
• | they are 90 days (120 days with respect to real estate 1-4 family first and junior lien mortgages and auto loans) past due for interest or principal, unless both well-secured and in the process of collection; or | |
• | part of the principal balance has been charged off and no restructuring has occurred. |
30
Sept. 30 | , | June 30 | , | Mar. 31 | , | Dec. 31 | , | |||||||||
(in millions) | 2010 | 2010 | 2010 | 2009 | ||||||||||||
Nonaccrual loans:
|
||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||
Commercial (includes LHFS of $86, $12, $0 and $19)
|
$ | 4,103 | 3,843 | 4,273 | 4,397 | |||||||||||
Real estate mortgage
|
5,079 | 4,689 | 4,345 | 3,696 | ||||||||||||
Real estate construction (includes LHFS of $3, $7, $7 and $8)
|
3,198 | 3,429 | 3,327 | 3,313 | ||||||||||||
Lease financing
|
138 | 163 | 185 | 171 | ||||||||||||
Total commercial and commercial real estate
|
12,518 | 12,124 | 12,130 | 11,577 | ||||||||||||
Consumer:
|
||||||||||||||||
Real estate 1-4 family first mortgage
(includes MHFS of $448, $450, $412 and $339)
|
12,969 | 12,865 | 12,347 | 10,100 | ||||||||||||
Real estate 1-4 family junior lien mortgage
|
2,380 | 2,391 | 2,355 | 2,263 | ||||||||||||
Other revolving credit and installment
|
312 | 316 | 334 | 332 | ||||||||||||
Total consumer
|
15,661 | 15,572 | 15,036 | 12,695 | ||||||||||||
Foreign
|
126 | 115 | 135 | 146 | ||||||||||||
Total nonaccrual loans (1)(2)
|
28,305 | 27,811 | 27,301 | 24,418 | ||||||||||||
As a percentage of total loans
|
3.76 | % | 3.63 | 3.49 | 3.12 | |||||||||||
Foreclosed assets:
|
||||||||||||||||
GNMA loans (3)
|
$ | 1,492 | 1,344 | 1,111 | 960 | |||||||||||
Other
|
4,635 | 3,650 | 2,970 | 2,199 | ||||||||||||
Real estate and other nonaccrual investments (4)
|
141 | 131 | 118 | 62 | ||||||||||||
Total nonaccrual loans and other nonperforming assets
|
$ | 34,573 | 32,936 | 31,500 | 27,639 | |||||||||||
As a percentage of total loans
|
4.59 | % | 4.30 | 4.03 | 3.53 | |||||||||||
(1) | Excludes loans acquired from Wachovia that are accounted for as PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms. | |
(2) | See Note 5 to Financial Statements in this Report and Note 6 (Loans and Allowance for Credit Losses) to Financial Statements in our 2009 Form 10-K for further information on impaired loans. | |
(3) | Consistent with regulatory reporting requirements, foreclosed real estate securing Government National Mortgage Association (GNMA) loans is classified as nonperforming. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). | |
(4) | Includes real estate investments (contingent interest loans accounted for as investments) that would be classified as nonaccrual if these assets were recorded as loans, and nonaccrual debt securities. |
31
Quarter ended | ||||||||||||||||
Sept. 30 | , | June 30 | , | Mar. 31 | , | Dec. 31 | , | |||||||||
(in millions) | 2010 | 2010 | 2010 | 2009 | ||||||||||||
Commercial nonaccruals
|
||||||||||||||||
Balance, beginning of quarter
|
$ | 12,124 | 12,130 | 11,577 | 10,264 | |||||||||||
Inflows
|
2,796 | 2,560 | 2,763 | 3,854 | ||||||||||||
Outflows
|
(2,402 | ) | (2,566 | ) | (2,210 | ) | (2,541 | ) | ||||||||
Balance, end of quarter
|
12,518 | 12,124 | 12,130 | 11,577 | ||||||||||||
Consumer nonaccruals
|
||||||||||||||||
Balance, beginning of quarter
|
15,572 | 15,036 | 12,695 | 10,461 | ||||||||||||
Inflows
|
4,866 | 4,733 | 6,169 | 5,626 | ||||||||||||
Outflows
|
(4,777 | ) | (4,197 | ) | (3,828 | ) | (3,392 | ) | ||||||||
Balance, end of quarter
|
15,661 | 15,572 | 15,036 | 12,695 | ||||||||||||
Foreign nonaccruals (end of quarter)
|
126 | 115 | 135 | 146 | ||||||||||||
Total
|
$ | 28,305 | 27,811 | 27,301 | 24,418 | |||||||||||
32
Sept. 30 | , | June 30 | , | Mar. 31 | , | Dec. 31 | , | |||||||||
(in millions) | 2010 | 2010 | 2010 | 2009 | ||||||||||||
GNMA loans
|
$ | 1,492 | 1,344 | 1,111 | 960 | |||||||||||
PCI loans:
|
||||||||||||||||
Commercial
|
1,043 | 940 | 697 | 405 | ||||||||||||
Consumer
|
1,080 | 674 | 490 | 336 | ||||||||||||
Total PCI loans
|
2,123 | 1,614 | 1,187 | 741 | ||||||||||||
All other loans:
|
||||||||||||||||
Commercial
|
1,380 | 1,141 | 911 | 751 | ||||||||||||
Consumer
|
1,132 | 895 | 872 | 707 | ||||||||||||
Total all other loans
|
2,512 | 2,036 | 1,783 | 1,458 | ||||||||||||
Total foreclosed assets
|
$ | 6,127 | 4,994 | 4,081 | 3,159 | |||||||||||
33
Sept. 30 | , | June 30 | , | Mar. 31 | Dec. 31 | , | ||||||||||
(in millions) | 2010 | 2010 | 2010 | 2009 | ||||||||||||
Consumer TDRs:
|
||||||||||||||||
Real estate 1-4 family first mortgage
|
$ | 10,951 | 9,525 | 7,972 | 6,685 | |||||||||||
Real estate 1-4 family junior lien mortgage
|
1,566 | 1,469 | 1,563 | 1,566 | ||||||||||||
Other revolving credit and installment
|
674 | 502 | 310 | 17 | ||||||||||||
Total consumer TDRs
|
13,191 | 11,496 | 9,845 | 8,268 | ||||||||||||
Commercial and commercial real estate TDRs
|
1,350 | 656 | 386 | 265 | ||||||||||||
Total TDRs
|
$ | 14,541 | 12,152 | 10,231 | 8,533 | |||||||||||
TDRs on nonaccrual status |
$ | 5,177 | 3,877 | 2,738 | 2,289 | |||||||||||
TDRs on accrual status
|
9,364 | 8,275 | 7,493 | 6,244 | ||||||||||||
Total TDRs
|
$ | 14,541 | 12,152 | 10,231 | 8,533 | |||||||||||
34
Sept. 30 | , | Dec. 31 | , | |||||
(in millions) | 2010 | 2009 | ||||||
Commercial and commercial real estate:
|
||||||||
Commercial
|
$ | 222 | 590 | |||||
Real estate mortgage
|
463 | 1,014 | ||||||
Real estate construction
|
332 | 909 | ||||||
Total commercial and commercial real estate
|
1,017 | 2,513 | ||||||
Consumer:
|
||||||||
Real estate 1-4 family first mortgage (1)
|
1,016 | 1,623 | ||||||
Real estate 1-4 family junior lien mortgage (1)
|
361 | 515 | ||||||
Credit card
|
560 | 795 | ||||||
Other revolving credit and installment
|
1,305 | 1,333 | ||||||
Total consumer
|
3,242 | 4,266 | ||||||
Foreign
|
27 | 73 | ||||||
Total
|
$ | 4,286 | 6,852 | |||||
(1) | Includes mortgage loans held for sale 90 days or more past due and still accruing. |
35
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||||||||||
As a | As a | As a | As a | |||||||||||||||||||||||||||||
Net loan | % of | Net loan | % of | Net loan | % of | Net loan | % of | |||||||||||||||||||||||||
charge- | average | charge- | average | charge- | average | charge- | average | |||||||||||||||||||||||||
($ in millions) | offs | loans (1) | offs | loans (1) | offs | loans (1) | offs | loans (1) | ||||||||||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 509 | 1.38 | % | $ | 924 | 2.09 | % | $ | 1,848 | 1.65 | % | $ | 2,184 | 1.57 | % | ||||||||||||||||
Real estate mortgage
|
218 | 0.87 | 184 | 0.77 | 849 | 1.16 | 322 | 0.45 | ||||||||||||||||||||||||
Real estate construction
|
276 | 3.72 | 274 | 2.67 | 908 | 3.71 | 638 | 2.04 | ||||||||||||||||||||||||
Lease financing
|
23 | 0.71 | 82 | 2.26 | 79 | 0.78 | 160 | 1.43 | ||||||||||||||||||||||||
Total commercial and commercial real estate
|
1,026 | 1.42 | 1,464 | 1.78 | 3,684 | 1.67 | 3,304 | 1.30 | ||||||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||||||
Real estate 1-4 family first mortgage
|
1,034 | 1.78 | 966 | 1.63 | 3,354 | 1.89 | 2,115 | 1.18 | ||||||||||||||||||||||||
Real estate 1-4 family junior lien mortgage
|
1,085 | 4.30 | 1,291 | 4.85 | 3,718 | 4.83 | 3,309 | 4.09 | ||||||||||||||||||||||||
Credit card
|
504 | 9.06 | 648 | 10.96 | 1,726 | 10.24 | 1,894 | 10.89 | ||||||||||||||||||||||||
Other revolving credit and installment
|
407 | 1.83 | 682 | 3.00 | 1,315 | 1.97 | 1,982 | 2.90 | ||||||||||||||||||||||||
Total consumer
|
3,030 | 2.72 | 3,587 | 3.13 | 10,113 | 2.99 | 9,300 | 2.69 | ||||||||||||||||||||||||
Foreign
|
39 | 0.52 | 60 | 0.79 | 117 | 0.53 | 151 | 0.65 | ||||||||||||||||||||||||
Total
|
$ | 4,095 | 2.14 | % | $ | 5,111 | 2.50 | % | $ | 13,914 | 2.40 | % | $ | 12,755 | 2.05 | % | ||||||||||||||||
(1) | Net charge-offs as a percentage of average loans are annualized. |
36
37
38
Sept. 30, 2010 | June 30, 2010 | Dec. 31, 2009 | ||||||||||||||||||||||
Original | Original | Original | ||||||||||||||||||||||
Number of | loan | Number of | loan | Number of | loan | |||||||||||||||||||
($ in millions) | loans | balance (1) | loans | balance (1) | loans | balance (1) | ||||||||||||||||||
Government sponsored entities (2)
|
9,887 | $ | 2,212 | 12,536 | $ | 2,840 | 8,354 | $ | 1,911 | |||||||||||||||
Private
|
3,605 | 882 | 3,160 | 707 | 2,929 | 886 | ||||||||||||||||||
Mortgage insurance rescissions (3)
|
3,035 | 748 | 2,979 | 760 | 2,965 | 859 | ||||||||||||||||||
Total
|
16,527 | $ | 3,842 | 18,675 | $ | 4,307 | 14,248 | $ | 3,656 | |||||||||||||||
(1) | While original loan balance related to these demands is presented above, the establishment of the repurchase reserve is based on a combination of factors, such as our appeals success rates, reimbursement by correspondent and other third party originators, and projected loss severity, which is driven by the difference between the current loan balance and the estimated collateral value less costs to sell the property. | |
(2) | Includes repurchase demands for 2,263 loans, 2,141 loans and 1,536 loans with original loan balances totaling $437 million, $417 million and $322 million at September 30 and June 30, 2010, and December 31, 2009, respectively, received from investors on mortgage servicing acquired from other originators. We have the right of recourse against the seller for these repurchase demands and would only incur a loss on these demands for counterparty risk associated with the seller. | |
(3) | As part of our representations and warranties in our loan sales contracts, we represent that certain loans have mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer, the lack of insurance may result in a repurchase demand from an investor. |
39
Nine months | ||||||||||||||||||||
Quarter ended | ended | Year ended | ||||||||||||||||||
Sept. 30 | , | June 30 | , | Mar. 31 | , | Sept. 30 | , | Dec. 31 | , | |||||||||||
(in millions) | 2010 | 2010 | 2010 | 2010 | 2009 | |||||||||||||||
Balance, beginning of period
|
$ | 1,375 | 1,263 | 1,033 | 1,033 | 620 | (1) | |||||||||||||
Provision for repurchase losses:
|
||||||||||||||||||||
Loan sales
|
29 | 36 | 44 | 109 | 302 | |||||||||||||||
Change in estimate —primarily due to credit deterioration
|
341 | 346 | 358 | 1,045 | 625 | |||||||||||||||
Total additions
|
370 | 382 | 402 | 1,154 | 927 | |||||||||||||||
Losses
|
(414 | ) | (270 | ) | (172 | ) | (856 | ) | (514 | ) | ||||||||||
Balance, end of period
|
$ | 1,331 | 1,375 | 1,263 | 1,331 | 1,033 | ||||||||||||||
(1) | Reflects purchase accounting refinements. |
40
41
42
43
44
Sept. 30 | , | Dec. 31 | , | |||||
(in millions) | 2010 | 2009 | ||||||
Nonmarketable equity investments:
|
||||||||
Private equity investments:
|
||||||||
Cost method
|
$ | 2,995 | 3,808 | |||||
Equity method
|
7,234 | 5,138 | ||||||
Federal bank stock
|
5,511 | 5,985 | ||||||
Principal investments
|
345 | 1,423 | ||||||
Total nonmarketable equity investments (1)
|
$ | 16,085 | 16,354 | |||||
Marketable equity securities: |
||||||||
Cost
|
$ | 4,381 | 4,749 | |||||
Net unrealized gains
|
895 | 843 | ||||||
Total marketable equity securities (2)
|
$ | 5,276 | 5,592 | |||||
(1) | Included in other assets on the balance sheet. See Note 6 (Other Assets) to Financial Statements in this Report for additional information. | |
(2) | Included in securities available for sale. See Note 4 (Securities Available for Sale) to Financial Statements in this Report for additional information. |
45
Quarter ended | Year ended | |||||||||||||||
Sept. 30 | , | June 30 | , | Mar. 31 | , | Dec. 31 | , | |||||||||
(in millions) | 2010 | 2010 | 2010 | 2009 | ||||||||||||
Balance, period end
|
||||||||||||||||
Commercial paper and other short-term borrowings
|
$ | 16,856 | 16,604 | 17,646 | 12,950 | |||||||||||
Federal funds purchased and securities sold
under agreements to repurchase
|
33,859 | 28,583 | 28,687 | 26,016 | ||||||||||||
Total
|
$ | 50,715 | 45,187 | 46,333 | 38,966 | |||||||||||
Average daily balance for period
|
||||||||||||||||
Commercial paper and other short-term borrowings
|
$ | 15,761 | 16,316 | 16,885 | 27,793 | |||||||||||
Federal funds purchased and securities sold
under agreements to repurchase
|
30,707 | 28,766 | 28,196 | 24,179 | ||||||||||||
Total
|
$ | 46,468 | 45,082 | 45,081 | 51,972 | |||||||||||
Maximum month-end balance for period
|
||||||||||||||||
Commercial paper and other short-term borrowings (1)
|
$ | 16,856 | 17,388 | 17,646 | 62,871 | |||||||||||
Federal funds purchased and securities sold
under agreements to repurchase (2)
|
33,859 | 28,807 | 29,270 | 30,608 | ||||||||||||
(1) | The maximum month-end balance was in September 2010, April 2010, March 2010 and February 2009. | |
(2) | The maximum month-end balance was in September 2010, May 2010, February 2010 and February 2009. |
46
September 30, 2010 | ||||||||||||
Debt | ||||||||||||
Date | issuance | Available for | ||||||||||
(in billions) | established | authority | issuance | |||||||||
MTN program:
|
||||||||||||
Series I & J (1)
|
August 2009 | $ | 25.0 | 21.8 | ||||||||
Series K (1)
|
April 2010 | 25.0 | 24.9 | |||||||||
European (2)
|
December 2009 | 25.0 | 25.0 | |||||||||
Australian (2)(3)
|
June 2005 | 10.0 | 6.8 | |||||||||
(1) | SEC registered. | |
(2) | Not registered with the SEC. May not be offered in the United States without applicable exemptions from registration. The Australian MTN amounts are presented in Australian dollars. | |
(3) | As amended in October 2005 and March 2010. |
47
48
Sept. 30 | , | Dec. 31 | , | |||||||
(in billions) | 2010 | 2009 | ||||||||
Total equity
|
$ | 125.2 | 114.4 | |||||||
Noncontrolling interests
|
(1.5 | ) | (2.6 | ) | ||||||
Total Wells Fargo stockholders’ equity
|
123.7 | 111.8 | ||||||||
Adjustments:
|
||||||||||
Preferred equity
|
(8.1 | ) | (8.1 | ) | ||||||
Goodwill and intangible assets (other than MSRs)
|
(36.1 | ) | (37.7 | ) | ||||||
Applicable deferred taxes
|
4.7 | 5.3 | ||||||||
Deferred tax asset limitation
|
— | (1.0 | ) | |||||||
MSRs over specified limitations
|
(0.9 | ) | (1.6 | ) | ||||||
Cumulative other comprehensive income
|
(5.4 | ) | (3.0 | ) | ||||||
Other
|
(0.3 | ) | (0.2 | ) | ||||||
Tier 1 common equity
|
(A) | $ | 77.6 | 65.5 | ||||||
Total risk-weighted assets (2)
|
(B) | $ | 968.4 | 1,013.6 | ||||||
Tier 1 common equity to total risk-weighted assets
|
(A)/(B) | 8.01 | % | 6.46 | ||||||
(1) | Tier 1 common equity is a non-generally accepted accounting principle (GAAP) financial measure that is used by investors, analysts and bank regulatory agencies, to assess the capital position of financial services companies. Tier 1 common equity includes total Wells Fargo stockholders’ equity, less preferred equity, goodwill and intangible assets (excluding MSRs), net of related deferred taxes, adjusted for specified Tier 1 regulatory capital limitations covering deferred taxes, MSRs, and cumulative other comprehensive income. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants. | |
(2) | 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 risk-weighted assets. |
49
• | the allowance for credit losses; | |
• | purchased credit-impaired (PCI) loans; | |
• | the valuation of residential mortgage servicing rights (MSRs); | |
• | the fair valuation of financial instruments; | |
• | pension accounting; and | |
• | income taxes. |
50
September 30, 2010 | December 31, 2009 | |||||||||||||||
Total | Total | |||||||||||||||
($ in billions) | balance | Level 3 (1) | balance | Level 3 (1) | ||||||||||||
Assets carried at fair value
|
$ | 288.6 | 48.6 | 277.4 | 52.0 | |||||||||||
As a percentage of total assets
|
24 | % | 4 | 22 | 4 | |||||||||||
Liabilities carried at fair value |
$ | 18.9 | 7.7 | 22.8 | 7.9 | |||||||||||
As a percentage of total liabilities
|
2 | % | 1 | 2 | 1 | |||||||||||
(1) | Before derivative netting adjustments. |
• | Accounting Standards Update (ASU or Update) 2010-20 , Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses . |
51
• | current and future economic and market conditions, including the effects of further declines in housing prices and high unemployment rates; | |
• | our capital requirements and the ability to raise capital on favorable terms, including regulatory capital standards as determined by applicable regulatory authorities; | |
• | 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 legislation and regulation relating to overdraft fees (and changes to our overdraft practices as a result thereof), credit cards, and other bank services; | |
• | legislative proposals to allow mortgage cram-downs in bankruptcy or require other loan modifications; | |
• | the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications or changes in such requirements or guidance; | |
• | the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties; | |
• | negative effects relating to mortgage foreclosures, including changes in our procedures or practices and/or industry standards or practices, regulatory or judicial requirements, penalties or fines, increased costs, or delays or moratoriums on foreclosures; | |
• | our ability to successfully integrate the Wachovia merger and realize the expected cost savings and other benefits and the effects of any delays or disruptions in systems conversions relating to the Wachovia integration; | |
• | our ability to realize the efficiency initiatives to lower expenses when and in the amount expected; | |
• | recognition of OTTI on securities held in our available-for-sale portfolio; | |
• | the effect of changes in interest rates on our net interest margin and our mortgage originations, MSRs and mortgages held for sale; | |
• | hedging gains or losses; | |
• | disruptions in the capital markets and reduced investor demand for mortgage loans; | |
• | our ability to sell more products to our customers; | |
• | the effect of the economic recession on the demand for our products and services; | |
• | the effect of the fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses; | |
• | our election to provide support to our mutual funds for structured credit products they may hold; | |
• | changes in the value of our venture capital investments; | |
• | changes in our accounting policies or in accounting standards or in how accounting standards are to be applied or interpreted; | |
• | mergers, acquisitions and divestitures; | |
• | changes in the Company’s credit ratings and changes in the credit quality of the Company’s customers or counterparties; |
52
• | reputational damage from negative publicity, fines, penalties and other negative consequences from regulatory violations and legal actions; | |
• | the loss of checking and savings account deposits to other investments such as the stock market, and the resulting increase in our funding costs and impact on our net interest margin; | |
• | fiscal and monetary policies of the Federal Reserve Board; and | |
• | the other risk factors and uncertainties described under “Risk Factors” in our 2009 Form 10-K, First Quarter Form 10-Q, Second Quarter Form 10-Q and in this Report. |
53
54
• | 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. |
55
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions, except per share amounts) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Interest income
|
||||||||||||||||
Trading assets
|
$ | 270 | 216 | 803 | 688 | |||||||||||
Securities available for sale
|
2,492 | 2,947 | 7,292 | 8,543 | ||||||||||||
Mortgages held for sale
|
449 | 524 | 1,241 | 1,484 | ||||||||||||
Loans held for sale
|
22 | 34 | 86 | 151 | ||||||||||||
Loans
|
9,779 | 10,170 | 30,094 | 31,467 | ||||||||||||
Other interest income
|
118 | 77 | 311 | 249 | ||||||||||||
Total interest income
|
13,130 | 13,968 | 39,827 | 42,582 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
721 | 905 | 2,170 | 2,861 | ||||||||||||
Short-term borrowings
|
27 | 32 | 66 | 210 | ||||||||||||
Long-term debt
|
1,226 | 1,301 | 3,735 | 4,565 | ||||||||||||
Other interest expense
|
58 | 46 | 162 | 122 | ||||||||||||
Total interest expense
|
2,032 | 2,284 | 6,133 | 7,758 | ||||||||||||
Net interest income
|
11,098 | 11,684 | 33,694 | 34,824 | ||||||||||||
Provision for credit losses
|
3,445 | 6,111 | 12,764 | 15,755 | ||||||||||||
Net interest income after provision for credit losses
|
7,653 | 5,573 | 20,930 | 19,069 | ||||||||||||
Noninterest income
|
||||||||||||||||
Service charges on deposit accounts
|
1,132 | 1,478 | 3,881 | 4,320 | ||||||||||||
Trust and investment fees
|
2,564 | 2,502 | 7,976 | 7,130 | ||||||||||||
Card fees
|
935 | 946 | 2,711 | 2,722 | ||||||||||||
Other fees
|
1,004 | 950 | 2,927 | 2,814 | ||||||||||||
Mortgage banking
|
2,499 | 3,067 | 6,980 | 8,617 | ||||||||||||
Insurance
|
397 | 468 | 1,562 | 1,644 | ||||||||||||
Net gains from trading activities
|
470 | 622 | 1,116 | 2,158 | ||||||||||||
Net losses on debt securities available for sale (1)
|
(114 | ) | (40 | ) | (56 | ) | (237 | ) | ||||||||
Net gains (losses) from equity investments (2)
|
131 | 29 | 462 | (88 | ) | |||||||||||
Operating leases
|
222 | 224 | 736 | 522 | ||||||||||||
Other
|
536 | 536 | 1,727 | 1,564 | ||||||||||||
Total noninterest income
|
9,776 | 10,782 | 30,022 | 31,166 | ||||||||||||
Noninterest expense
|
||||||||||||||||
Salaries
|
3,478 | 3,428 | 10,356 | 10,252 | ||||||||||||
Commission and incentive compensation
|
2,280 | 2,051 | 6,497 | 5,935 | ||||||||||||
Employee benefits
|
1,074 | 1,034 | 3,459 | 3,545 | ||||||||||||
Equipment
|
557 | 563 | 1,823 | 1,825 | ||||||||||||
Net occupancy
|
742 | 778 | 2,280 | 2,357 | ||||||||||||
Core deposit and other intangibles
|
548 | 642 | 1,650 | 1,935 | ||||||||||||
FDIC and other deposit assessments
|
300 | 228 | 896 | 1,547 | ||||||||||||
Other
|
3,274 | 2,960 | 10,155 | 8,803 | ||||||||||||
Total noninterest expense
|
12,253 | 11,684 | 37,116 | 36,199 | ||||||||||||
Income before income tax expense
|
5,176 | 4,671 | 13,836 | 14,036 | ||||||||||||
Income tax expense
|
1,751 | 1,355 | 4,666 | 4,382 | ||||||||||||
Net income before noncontrolling interests
|
3,425 | 3,316 | 9,170 | 9,654 | ||||||||||||
Less: Net income from noncontrolling interests
|
86 | 81 | 222 | 202 | ||||||||||||
Wells Fargo net income
|
$ | 3,339 | 3,235 | 8,948 | 9,452 | |||||||||||
Wells Fargo net income applicable to common stock
|
$ | 3,150 | 2,637 | 8,400 | 7,596 | |||||||||||
Per share information
|
||||||||||||||||
Earnings per common share
|
$ | 0.60 | 0.56 | 1.61 | 1.70 | |||||||||||
Diluted earnings per common share
|
0.60 | 0.56 | 1.60 | 1.69 | ||||||||||||
Dividends declared per common share
|
0.05 | 0.05 | 0.15 | 0.44 | ||||||||||||
Average common shares outstanding
|
5,240.1 | 4,678.3 | 5,216.9 | 4,471.2 | ||||||||||||
Diluted average common shares outstanding
|
5,273.2 | 4,706.4 | 5,252.9 | 4,485.3 | ||||||||||||
(1) | Includes other-than-temporary impairment (OTTI) losses of $144 million and $273 million recognized in earnings ($50 million and $314 million of total OTTI losses, net of $(94) million and $41 million recognized as an increase (decrease) to OTTI losses in other comprehensive income) for the quarters ended September 30, 2010 and 2009, respectively, and OTTI losses of $342 million and $850 million recognized in earnings ($253 million and $1,889 million of total OTTI losses, net of $(89) million and $1,039 million recognized as an increase (decrease) to OTTI losses in other comprehensive income) for the nine months ended September 30, 2010 and 2009, respectively. | |
(2) | Includes OTTI losses of $35 million and $123 million for the quarters ended September 30, 2010 and 2009, respectively, and $202 million and $525 million for the nine months ended September 30, 2010 and 2009, respectively. |
56
Sept. 30 | , | Dec. 31 | , | |||||
(in millions, except shares) | 2010 | 2009 | ||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 16,001 | 27,080 | |||||
Federal funds sold, securities purchased under
resale agreements and other short-term investments
|
56,549 | 40,885 | ||||||
Trading assets
|
49,271 | 43,039 | ||||||
Securities available for sale
|
176,875 | 172,710 | ||||||
Mortgages held for sale (includes $42,791 and $36,962 carried at fair value)
|
46,001 | 39,094 | ||||||
Loans held for sale (includes $436 and $149 carried at fair value)
|
1,188 | 5,733 | ||||||
Loans (includes $353 carried at fair value at September 30, 2010) |
753,664 | 782,770 | ||||||
Allowance for loan losses
|
(23,939 | ) | (24,516 | ) | ||||
Net loans
|
729,725 | 758,254 | ||||||
Mortgage servicing rights:
|
||||||||
Measured at fair value (residential MSRs)
|
12,486 | 16,004 | ||||||
Amortized
|
1,013 | 1,119 | ||||||
Premises and equipment, net
|
9,636 | 10,736 | ||||||
Goodwill
|
24,831 | 24,812 | ||||||
Other assets
|
97,208 | 104,180 | ||||||
Total assets (1)
|
$ | 1,220,784 | 1,243,646 | |||||
Liabilities
|
||||||||
Noninterest-bearing deposits
|
$ | 184,451 | 181,356 | |||||
Interest-bearing deposits
|
630,061 | 642,662 | ||||||
Total deposits
|
814,512 | 824,018 | ||||||
Short-term borrowings
|
50,715 | 38,966 | ||||||
Accrued expenses and other liabilities
|
67,249 | 62,442 | ||||||
Long-term debt (includes $351 carried at fair value at September 30, 2010)
|
163,143 | 203,861 | ||||||
Total liabilities (2)
|
1,095,619 | 1,129,287 | ||||||
Equity
|
||||||||
Wells Fargo stockholders’ equity:
|
||||||||
Preferred stock
|
8,840 | 8,485 | ||||||
Common stock — $1-2/3 par value, authorized
9,000,000,000 shares; issued 5,253,819,623 shares
and 5,245,971,422 shares
|
8,756 | 8,743 | ||||||
Additional paid-in capital
|
52,899 | 52,878 | ||||||
Retained earnings
|
48,953 | 41,563 | ||||||
Cumulative other comprehensive income
|
5,502 | 3,009 | ||||||
Treasury
stock — 9,442,860 shares and 67,346,829 shares
|
(466 | ) | (2,450 | ) | ||||
Unearned ESOP shares
|
(826 | ) | (442 | ) | ||||
Total Wells Fargo stockholders’ equity
|
123,658 | 111,786 | ||||||
Noncontrolling interests
|
1,507 | 2,573 | ||||||
Total equity
|
125,165 | 114,359 | ||||||
Total liabilities and equity
|
$ | 1,220,784 | 1,243,646 | |||||
(1) | Our consolidated assets at September 30, 2010, 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, $150 million; Trading assets, $95 million; Securities available for sale, $2.7 billion; Net loans, $18.7 billion; Other assets, $1.5 billion, and Total assets, $23.2 billion. | |
(2) | Our consolidated liabilities at September 30, 2010, include the following VIE liabilities for which the VIE creditors do not have recourse to Wells Fargo: Short-term borrowings, $6 million; Accrued expenses and other liabilities, $205 million; Long-term debt, $8.9 billion; and Total liabilities, $9.1 billion. |
57
Preferred stock | Common stock | |||||||||||||||
(in millions, except shares) | Shares | Amount | Shares | Amount | ||||||||||||
Balance, December 31, 2008
|
10,111,821 | $ | 31,332 | 4,228,630,889 | $ | 7,273 | ||||||||||
Cumulative effect from change in accounting for
other-than-temporary impairment on debt securities
|
||||||||||||||||
Effect of change in accounting for noncontrolling interests
|
||||||||||||||||
Balance, January 1, 2009
|
10,111,821 | 31,332 | 4,228,630,889 | 7,273 | ||||||||||||
Comprehensive income:
|
||||||||||||||||
Net income
|
||||||||||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Translation adjustments
|
||||||||||||||||
Net unrealized gains on securities available for sale,
net of reclassification of $45 million of net gains
included in net income
|
||||||||||||||||
Net unrealized losses on derivatives and hedging activities, net
of reclassification of $257 million of net gains on cash flow
hedges included in net income
|
||||||||||||||||
Unamortized gains under defined benefit plans, net of amortization
|
||||||||||||||||
Total comprehensive income
|
||||||||||||||||
Noncontrolling interests
|
||||||||||||||||
Common stock issued
|
451,324,822 | 654 | ||||||||||||||
Common stock repurchased
|
(3,353,597 | ) | ||||||||||||||
Preferred stock released to ESOP
|
||||||||||||||||
Preferred stock converted to common shares
|
(41,280 | ) | (41 | ) | 2,593,044 | |||||||||||
Common stock dividends
|
||||||||||||||||
Preferred stock dividends and accretion
|
298 | |||||||||||||||
Tax benefit upon exercise of stock options
|
||||||||||||||||
Stock option compensation expense
|
||||||||||||||||
Net change in deferred compensation and related plans
|
||||||||||||||||
Net change
|
(41,280 | ) | 257 | 450,564,269 | 654 | |||||||||||
Balance, September 30, 2009
|
10,070,541 | $ | 31,589 | 4,679,195,158 | $ | 7,927 | ||||||||||
Balance, January 1, 2010 |
9,980,940 | $ | 8,485 | 5,178,624,593 | $ | 8,743 | ||||||||||
Cumulative effect from change in accounting for VIEs
|
||||||||||||||||
Cumulative effect from change in accounting for
embedded credit derivatives
|
||||||||||||||||
Comprehensive income:
|
||||||||||||||||
Net income
|
||||||||||||||||
Other comprehensive income, net of tax:
|
||||||||||||||||
Translation adjustments
|
||||||||||||||||
Net unrealized gains on securities available for sale,
net of reclassification of $86 million of net gains
included in net income
|
||||||||||||||||
Net unrealized gains on derivatives and hedging activities, net
of reclassification of $363 million of net gains on cash flow
hedges included in net income
|
||||||||||||||||
Unamortized gains under defined benefit plans, net of amortization
|
||||||||||||||||
Total comprehensive income
|
||||||||||||||||
Noncontrolling interests
|
||||||||||||||||
Common stock issued
|
44,660,913 | 4 | ||||||||||||||
Common stock repurchased
|
(2,321,917 | ) | ||||||||||||||
Preferred stock issued to ESOP
|
1,000,000 | 1,000 | ||||||||||||||
Preferred stock released to ESOP
|
||||||||||||||||
Preferred stock converted to common shares
|
(644,958 | ) | (645 | ) | 23,413,174 | 9 | ||||||||||
Common stock warrants repurchased
|
||||||||||||||||
Common stock dividends
|
||||||||||||||||
Preferred stock dividends
|
||||||||||||||||
Tax benefit upon exercise of stock options
|
||||||||||||||||
Stock option compensation expense
|
||||||||||||||||
Net change in deferred compensation and related plans
|
||||||||||||||||
Net change
|
355,042 | 355 | 65,752,170 | 13 | ||||||||||||
Balance, September 30, 2010
|
10,335,982 | $ | 8,840 | 5,244,376,763 | $ | 8,756 | ||||||||||
58
Wells Fargo stockholders' equity | ||||||||||||||||||||||||||||||||
Cumulative | Total | |||||||||||||||||||||||||||||||
Additional | other | Unearned | Wells Fargo | |||||||||||||||||||||||||||||
paid-in | Retained | comprehensive | Treasury | ESOP | stockholders' | Noncontrolling | Total | |||||||||||||||||||||||||
capital | earnings | income | stock | shares | equity | interests | equity | |||||||||||||||||||||||||
|
36,026 | 36,543 | (6,869 | ) | (4,666 | ) | (555 | ) | 99,084 | 3,232 | $ | 102,316 | ||||||||||||||||||||
|
53 | (53 | ) | — | — | |||||||||||||||||||||||||||
|
(3,716 | ) | (3,716 | ) | 3,716 | — | ||||||||||||||||||||||||||
|
32,310 | 36,596 | (6,922 | ) | (4,666 | ) | (555 | ) | 95,368 | 6,948 | 102,316 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
9,452 | 9,452 | 202 | 9,654 | ||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
63 | 63 | (5 | ) | 58 | |||||||||||||||||||||||||||
|
10,566 | 10,566 | 64 | 10,630 | ||||||||||||||||||||||||||||
|
(189 | ) | (189 | ) | (189 | ) | ||||||||||||||||||||||||||
|
570 | 570 | 570 | |||||||||||||||||||||||||||||
|
20,462 | 261 | 20,723 | |||||||||||||||||||||||||||||
|
21 | 21 | (435 | ) | (414 | ) | ||||||||||||||||||||||||||
|
7,845 | (816 | ) | 1,907 | 9,590 | 9,590 | ||||||||||||||||||||||||||
|
(80 | ) | (80 | ) | (80 | ) | ||||||||||||||||||||||||||
|
(3 | ) | 44 | 41 | 41 | |||||||||||||||||||||||||||
|
(42 | ) | 83 | — | — | |||||||||||||||||||||||||||
|
(1,891 | ) | (1,891 | ) | (1,891 | ) | ||||||||||||||||||||||||||
|
(1,856 | ) | (1,558 | ) | (1,558 | ) | ||||||||||||||||||||||||||
|
9 | 9 | 9 | |||||||||||||||||||||||||||||
|
180 | 180 | 180 | |||||||||||||||||||||||||||||
|
23 | (15 | ) | 8 | 8 | |||||||||||||||||||||||||||
|
8,033 | 4,889 | 11,010 | 1,895 | 44 | 26,782 | (174 | ) | 26,608 | |||||||||||||||||||||||
|
40,343 | 41,485 | 4,088 | (2,771 | ) | (511 | ) | 122,150 | 6,774 | $ | 128,924 | |||||||||||||||||||||
|
52,878 | 41,563 | 3,009 | (2,450 | ) | (442 | ) | 111,786 | 2,573 | $ | 114,359 | |||||||||||||||||||||
|
183 | 183 | 183 | |||||||||||||||||||||||||||||
|
(28 | ) | (28 | ) | (28 | ) | ||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
8,948 | 8,948 | 222 | 9,170 | ||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
|
16 | 16 | 12 | 28 | ||||||||||||||||||||||||||||
|
2,202 | 2,202 | 16 | 2,218 | ||||||||||||||||||||||||||||
|
227 | 227 | 227 | |||||||||||||||||||||||||||||
|
48 | 48 | 48 | |||||||||||||||||||||||||||||
|
11,441 | 250 | 11,691 | |||||||||||||||||||||||||||||
|
(3 | ) | (3 | ) | (1,316 | ) | (1,319 | ) | ||||||||||||||||||||||||
|
72 | (375 | ) | 1,349 | 1,050 | 1,050 | ||||||||||||||||||||||||||
|
(71 | ) | (71 | ) | (71 | ) | ||||||||||||||||||||||||||
|
80 | (1,080 | ) | — | — | |||||||||||||||||||||||||||
|
(51 | ) | 696 | 645 | 645 | |||||||||||||||||||||||||||
|
69 | 567 | — | — | ||||||||||||||||||||||||||||
|
(544 | ) | (544 | ) | (544 | ) | ||||||||||||||||||||||||||
|
2 | (785 | ) | (783 | ) | (783 | ) | |||||||||||||||||||||||||
|
(553 | ) | (553 | ) | (553 | ) | ||||||||||||||||||||||||||
|
79 | 79 | 79 | |||||||||||||||||||||||||||||
|
93 | 93 | 93 | |||||||||||||||||||||||||||||
|
224 | 139 | 363 | 363 | ||||||||||||||||||||||||||||
|
21 | 7,390 | 2,493 | 1,984 | (384 | ) | 11,872 | (1,066 | ) | 10,806 | ||||||||||||||||||||||
|
52,899 | 48,953 | 5,502 | (466 | ) | (826 | ) | 123,658 | 1,507 | $ | 125,165 | |||||||||||||||||||||
59
Nine months ended Sept. 30 | , | |||||||
(in millions) | 2010 | 2009 | ||||||
Cash flows from operating activities:
|
||||||||
Net income before noncontrolling interests
|
$ | 9,170 | 9,654 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Provision for credit losses
|
12,764 | 15,755 | ||||||
Changes in fair value of MSRs (residential), MHFS and LHFS carried at fair value
|
1,195 | 1,366 | ||||||
Depreciation and amortization
|
1,502 | 2,437 | ||||||
Other net losses (gains)
|
4,376 | (2,261 | ) | |||||
Preferred shares released to ESOP
|
645 | 41 | ||||||
Stock option compensation expense
|
93 | 180 | ||||||
Excess tax benefits related to stock option payments
|
(79 | ) | (9 | ) | ||||
Originations of MHFS
|
(252,075 | ) | (321,098 | ) | ||||
Proceeds from sales of and principal collected on mortgages originated for sale
|
251,814 | 306,882 | ||||||
Originations of LHFS
|
(4,554 | ) | (8,641 | ) | ||||
Proceeds from sales of and principal collected on LHFS
|
15,220 | 15,937 | ||||||
Purchases of LHFS
|
(5,998 | ) | (6,461 | ) | ||||
Net change in:
|
||||||||
Trading assets
|
873 | 13,834 | ||||||
Deferred income taxes
|
4,015 | 4,835 | ||||||
Accrued interest receivable
|
771 | 948 | ||||||
Accrued interest payable
|
(238 | ) | (1,157 | ) | ||||
Other assets, net
|
(12,034 | ) | (6,159 | ) | ||||
Other accrued expenses and liabilities, net
|
(4,660 | ) | (833 | ) | ||||
Net cash provided by operating activities
|
22,800 | 25,250 | ||||||
Cash flows from investing activities:
|
||||||||
Net change in:
|
||||||||
Federal funds sold, securities purchased under resale agreements and other short-term investments
|
(15,664 | ) | 31,942 | |||||
Securities available for sale:
|
||||||||
Sales proceeds
|
5,125 | 46,337 | ||||||
Prepayments and maturities
|
33,349 | 28,746 | ||||||
Purchases
|
(37,161 | ) | (89,395 | ) | ||||
Loans:
|
||||||||
Decrease in banking subsidiaries’ loan originations, net of collections
|
27,359 | 44,337 | ||||||
Proceeds from sales (including participations) of loans originated for investment by banking subsidiaries
|
5,011 | 4,569 | ||||||
Purchases (including participations) of loans by banking subsidiaries
|
(1,673 | ) | (2,007 | ) | ||||
Principal collected on nonbank entities’ loans
|
11,706 | 10,224 | ||||||
Loans originated by nonbank entities
|
(7,960 | ) | (7,117 | ) | ||||
Net cash paid for acquisitions
|
(23 | ) | (132 | ) | ||||
Proceeds from sales of foreclosed assets
|
3,669 | 2,708 | ||||||
Changes in MSRs from purchases and sales
|
(29 | ) | (9 | ) | ||||
Other, net
|
1,827 | 4,951 | ||||||
Net cash provided by investing activities
|
25,536 | 75,154 | ||||||
Cash flows from financing activities:
|
||||||||
Net change in:
|
||||||||
Deposits
|
(9,506 | ) | 15,212 | |||||
Short-term borrowings
|
6,622 | (77,274 | ) | |||||
Long-term debt:
|
||||||||
Proceeds from issuance
|
2,638 | 4,803 | ||||||
Repayment
|
(57,790 | ) | (55,332 | ) | ||||
Preferred stock:
|
||||||||
Cash dividends paid
|
(620 | ) | (1,616 | ) | ||||
Common stock:
|
||||||||
Proceeds from issuance
|
1,050 | 9,590 | ||||||
Repurchased
|
(71 | ) | (80 | ) | ||||
Cash dividends paid
|
(783 | ) | (1,891 | ) | ||||
Common stock warrants repurchased
|
(544 | ) | — | |||||
Excess tax benefits related to stock option payments
|
79 | 9 | ||||||
Net change in noncontrolling interests
|
(490 | ) | (355 | ) | ||||
Net cash used by financing activities
|
(59,415 | ) | (106,934 | ) | ||||
Net change in cash and due from banks
|
(11,079 | ) | (6,530 | ) | ||||
Cash and due from banks at beginning of period
|
27,080 | 23,763 | ||||||
Cash and due from banks at end of period
|
$ | 16,001 | 17,233 | |||||
Supplemental cash flow disclosures:
|
||||||||
Cash paid for interest
|
$ | 6,371 | 8,915 | |||||
Cash paid for income taxes
|
917 | 2,834 | ||||||
60
61
• | Accounting Standards Update (ASU or Update) 2010-6, Improving Disclosures about Fair Value Measurements ; | |
• | ASU 2009-16, Accounting for Transfers of Financial Assets (Statement of Financial Accounting Standards (FAS) 166, Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140 ); | |
• | ASU 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities (FAS 167, Amendments to FASB Interpretation No. 46(R) ); and | |
• | ASU 2010-10, Amendments for Certain Investment Funds. |
• | ASU 2010-18, Effect of a Loan Modification When the Loan is Part of a Pool That is Accounted for as a Single Asset; and | |
• | ASU 2010-11 , Scope Exception Related to Embedded Credit Derivatives . |
62
63
Nine months ended Sept. 30 | , | |||||||
(in millions) | 2010 | 2009 | ||||||
Transfers from trading assets to securities available for sale
|
$ | — | 845 | |||||
Transfers from (to) loans to (from) securities available for sale
|
3,468 | (258 | ) | |||||
Transfers from MHFS to trading assets
|
6,950 | 2,993 | ||||||
Transfers from MHFS to MSRs
|
3,086 | 5,088 | ||||||
Transfers from MHFS to foreclosed assets
|
189 | 125 | ||||||
Transfers from loans to MHFS
|
126 | 60 | ||||||
Transfers from (to) loans to (from) LHFS
|
100 | (6 | ) | |||||
Transfers from loans to foreclosed assets
|
6,736 | 5,067 | ||||||
Adoption of consolidation accounting guidance:
|
||||||||
Trading assets
|
155 | — | ||||||
Securities available for sale
|
(7,590 | ) | — | |||||
Loans
|
25,657 | — | ||||||
Other assets
|
193 | — | ||||||
Short-term borrowings
|
5,127 | — | ||||||
Long-term debt
|
13,134 | — | ||||||
Accrued expenses and other liabilities
|
(32 | ) | — | |||||
Decrease in noncontrolling interests due to deconsolidation of subsidiaries
|
440 | — | ||||||
Transfer from noncontrolling interests to long-term debt
|
345 | — | ||||||
64
Employee | Contract | Facilities | ||||||||||||||
(in millions) | termination | termination | related | Total | ||||||||||||
Balance, December 31, 2009
|
$ | 355 | 58 | 344 | 757 | |||||||||||
Cash payments / utilization
|
(162 | ) | (47 | ) | (183 | ) | (392 | ) | ||||||||
Balance, September 30, 2010
|
$ | 193 | 11 | 161 | 365 | |||||||||||
Sept. 30 | , | Dec. 31 | , | |||||
(in millions) | 2010 | 2009 | ||||||
Federal funds sold and securities
purchased under resale agreements
|
$ | 20,761 | 8,042 | |||||
Interest-earning deposits
|
33,826 | 31,668 | ||||||
Other short-term investments
|
1,962 | 1,175 | ||||||
Total
|
$ | 56,549 | 40,885 | |||||
65
Gross | Gross | |||||||||||||||
unrealized | unrealized | Fair | ||||||||||||||
(in millions) | Cost | gains | losses | value | ||||||||||||
September 30, 2010 |
||||||||||||||||
Securities of U.S. Treasury and federal agencies |
$ | 1,652 | 91 | — | 1,743 | |||||||||||
Securities of U.S. states and political subdivisions
|
17,756 | 922 | (511 | ) | 18,167 | |||||||||||
Mortgage-backed securities:
|
||||||||||||||||
Federal agencies
|
79,898 | 3,723 | (26 | ) | 83,595 | |||||||||||
Residential
|
18,538 | 2,710 | (462 | ) | 20,786 | |||||||||||
Commercial
|
12,791 | 1,253 | (1,050 | ) | 12,994 | |||||||||||
Total mortgage-backed securities
|
111,227 | 7,686 | (1,538 | ) | 117,375 | |||||||||||
Corporate debt securities
|
9,027 | 1,419 | (36 | ) | 10,410 | |||||||||||
Collateralized debt obligations
|
4,483 | 327 | (284 | ) | 4,526 | |||||||||||
Other
(1)
|
18,968 | 784 | (374 | ) | 19,378 | |||||||||||
Total debt securities
|
163,113 | 11,229 | (2,743 | ) | 171,599 | |||||||||||
Marketable equity securities:
|
||||||||||||||||
Perpetual preferred securities
|
3,769 | 267 | (100 | ) | 3,936 | |||||||||||
Other marketable equity securities
|
612 | 731 | (3 | ) | 1,340 | |||||||||||
Total marketable equity securities
|
4,381 | 998 | (103 | ) | 5,276 | |||||||||||
Total
|
$ | 167,494 | 12,227 | (2,846 | ) | 176,875 | ||||||||||
December 31, 2009 |
||||||||||||||||
Securities of U.S. Treasury and federal agencies |
$ | 2,256 | 38 | (14 | ) | 2,280 | ||||||||||
Securities of U.S. states and political subdivisions
|
13,212 | 683 | (365 | ) | 13,530 | |||||||||||
Mortgage-backed securities:
|
||||||||||||||||
Federal agencies
|
79,542 | 3,285 | (9 | ) | 82,818 | |||||||||||
Residential
|
28,153 | 2,480 | (2,043 | ) | 28,590 | |||||||||||
Commercial
|
12,221 | 602 | (1,862 | ) | 10,961 | |||||||||||
Total mortgage-backed securities
|
119,916 | 6,367 | (3,914 | ) | 122,369 | |||||||||||
Corporate debt securities
|
8,245 | 1,167 | (77 | ) | 9,335 | |||||||||||
Collateralized debt obligations
|
3,660 | 432 | (367 | ) | 3,725 | |||||||||||
Other (1)
|
15,025 | 1,099 | (245 | ) | 15,879 | |||||||||||
Total debt securities
|
162,314 | 9,786 | (4,982 | ) | 167,118 | |||||||||||
Marketable equity securities:
|
||||||||||||||||
Perpetual preferred securities
|
3,677 | 263 | (65 | ) | 3,875 | |||||||||||
Other marketable equity securities
|
1,072 | 654 | (9 | ) | 1,717 | |||||||||||
Total marketable equity securities
|
4,749 | 917 | (74 | ) | 5,592 | |||||||||||
Total
|
$ | 167,063 | 10,703 | (5,056 | ) | 172,710 | ||||||||||
(1) | Included in the “Other” category are asset-backed securities collateralized by auto leases or loans and cash reserves with a cost basis and fair value of $8.1 billion and $8.3 billion, respectively, at September 30, 2010, and $8.2 billion and $8.5 billion, respectively, at December 31, 2009. Also included in the “Other” category are asset-backed securities collateralized by home equity loans with a cost basis and fair value of $864 million and $1.0 billion, respectively, at September 30, 2010, and $2.3 billion and $2.5 billion, respectively, at December 31, 2009. The remaining balances primarily include asset-backed securities collateralized by credit cards and student loans. |
66
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||||||||
unrealized | Fair | unrealized | Fair | unrealized | Fair | |||||||||||||||||||
(in millions) | losses | value | losses | value | losses | value | ||||||||||||||||||
September 30, 2010 |
||||||||||||||||||||||||
Securities of U.S. states and
political subdivisions
|
$ | (112 | ) | 2,990 | (399 | ) | 2,929 | (511 | ) | 5,919 | ||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Federal agencies
|
(26 | ) | 10,856 | — | — | (26 | ) | 10,856 | ||||||||||||||||
Residential
|
(39 | ) | 724 | (423 | ) | 4,741 | (462 | ) | 5,465 | |||||||||||||||
Commercial
|
(6 | ) | 249 | (1,044 | ) | 5,737 | (1,050 | ) | 5,986 | |||||||||||||||
Total mortgage-backed securities
|
(71 | ) | 11,829 | (1,467 | ) | 10,478 | (1,538 | ) | 22,307 | |||||||||||||||
Corporate debt securities
|
(8 | ) | 185 | (28 | ) | 168 | (36 | ) | 353 | |||||||||||||||
Collateralized debt obligations
|
(26 | ) | 923 | (258 | ) | 411 | (284 | ) | 1,334 | |||||||||||||||
Other
|
(63 | ) | 1,913 | (311 | ) | 596 | (374 | ) | 2,509 | |||||||||||||||
Total debt securities
|
(280 | ) | 17,840 | (2,463 | ) | 14,582 | (2,743 | ) | 32,422 | |||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||
Perpetual preferred securities
|
(47 | ) | 979 | (53 | ) | 383 | (100 | ) | 1,362 | |||||||||||||||
Other marketable equity securities
|
(3 | ) | 21 | — | — | (3 | ) | 21 | ||||||||||||||||
Total marketable equity securities
|
(50 | ) | 1,000 | (53 | ) | 383 | (103 | ) | 1,383 | |||||||||||||||
Total
|
$ | (330 | ) | 18,840 | (2,516 | ) | 14,965 | (2,846 | ) | 33,805 | ||||||||||||||
December 31, 2009 |
||||||||||||||||||||||||
Securities of U.S. Treasury and
federal agencies
|
$ | (14 | ) | 530 | — | — | (14 | ) | 530 | |||||||||||||||
Securities of U.S. states and
political subdivisions
|
(55 | ) | 1,120 | (310 | ) | 2,826 | (365 | ) | 3,946 | |||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
Federal agencies
|
(9 | ) | 767 | — | — | (9 | ) | 767 | ||||||||||||||||
Residential
|
(243 | ) | 2,991 | (1,800 | ) | 9,697 | (2,043 | ) | 12,688 | |||||||||||||||
Commercial
|
(37 | ) | 816 | (1,825 | ) | 6,370 | (1,862 | ) | 7,186 | |||||||||||||||
Total mortgage-backed securities
|
(289 | ) | 4,574 | (3,625 | ) | 16,067 | (3,914 | ) | 20,641 | |||||||||||||||
Corporate debt securities
|
(7 | ) | 281 | (70 | ) | 442 | (77 | ) | 723 | |||||||||||||||
Collateralized debt obligations
|
(55 | ) | 398 | (312 | ) | 512 | (367 | ) | 910 | |||||||||||||||
Other
|
(73 | ) | 746 | (172 | ) | 286 | (245 | ) | 1,032 | |||||||||||||||
Total debt securities
|
(493 | ) | 7,649 | (4,489 | ) | 20,133 | (4,982 | ) | 27,782 | |||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||
Perpetual preferred securities
|
(1 | ) | 93 | (64 | ) | 527 | (65 | ) | 620 | |||||||||||||||
Other marketable equity securities
|
(9 | ) | 175 | — | — | (9 | ) | 175 | ||||||||||||||||
Total marketable equity securities
|
(10 | ) | 268 | (64 | ) | 527 | (74 | ) | 795 | |||||||||||||||
Total
|
$ | (503 | ) | 7,917 | (4,553 | ) | 20,660 | (5,056 | ) | 28,577 | ||||||||||||||
67
68
69
Investment grade | Non-investment grade | |||||||||||||||
Gross | Gross | |||||||||||||||
unrealized | Fair | unrealized | Fair | |||||||||||||
(in millions) | losses | value | losses | value | ||||||||||||
September 30, 2010 |
||||||||||||||||
Securities of U.S. states and political subdivisions
|
$ | (415 | ) | 5,429 | (96 | ) | 490 | |||||||||
Mortgage-backed securities:
|
||||||||||||||||
Federal agencies
|
(26 | ) | 10,856 | — | — | |||||||||||
Residential
|
(13 | ) | 401 | (449 | ) | 5,064 | ||||||||||
Commercial
|
(585 | ) | 5,229 | (465 | ) | 757 | ||||||||||
Total mortgage-backed securities
|
(624 | ) | 16,486 | (914 | ) | 5,821 | ||||||||||
Corporate debt securities
|
(22 | ) | 143 | (14 | ) | 210 | ||||||||||
Collateralized debt obligations
|
(71 | ) | 801 | (213 | ) | 533 | ||||||||||
Other
|
(262 | ) | 2,259 | (112 | ) | 250 | ||||||||||
Total debt securities
|
(1,394 | ) | 25,118 | (1,349 | ) | 7,304 | ||||||||||
Perpetual preferred securities
|
(94 | ) | 1,268 | (6 | ) | 94 | ||||||||||
Total
|
$ | (1,488 | ) | 26,386 | (1,355 | ) | 7,398 | |||||||||
December 31, 2009 |
||||||||||||||||
Securities of U.S. Treasury and federal agencies
|
$ | (14 | ) | 530 | — | — | ||||||||||
Securities of U.S. states and political subdivisions
|
(275 | ) | 3,621 | (90 | ) | 325 | ||||||||||
Mortgage-backed securities:
|
||||||||||||||||
Federal agencies
|
(9 | ) | 767 | — | — | |||||||||||
Residential
|
(480 | ) | 5,661 | (1,563 | ) | 7,027 | ||||||||||
Commercial
|
(1,247 | ) | 6,543 | (615 | ) | 643 | ||||||||||
Total mortgage-backed securities
|
(1,736 | ) | 12,971 | (2,178 | ) | 7,670 | ||||||||||
Corporate debt securities
|
(31 | ) | 260 | (46 | ) | 463 | ||||||||||
Collateralized debt obligations
|
(104 | ) | 471 | (263 | ) | 439 | ||||||||||
Other
|
(85 | ) | 644 | (160 | ) | 388 | ||||||||||
Total debt securities
|
(2,245 | ) | 18,497 | (2,737 | ) | 9,285 | ||||||||||
Perpetual preferred securities
|
(65 | ) | 620 | — | — | |||||||||||
Total
|
$ | (2,310 | ) | 19,117 | (2,737 | ) | 9,285 | |||||||||
70
Remaining contractual principal maturity | ||||||||||||||||||||||||||||||||||||||||
Weighted- | After one year | After five years | ||||||||||||||||||||||||||||||||||||||
Total | average | Within one year | through five years | through ten years | After ten years | |||||||||||||||||||||||||||||||||||
(in millions) | amount | yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | ||||||||||||||||||||||||||||||
September 30, 2010 |
||||||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and
federal agencies |
$ | 1,743 | 3.16 | % | $ | 11 | 4.54 | % | $ | 732 | 3.02 | % | $ | 897 | 3.15 | % | $ | 103 | 4.12 | % | ||||||||||||||||||||
Securities of U.S. states and
political subdivisions |
18,167 | 6.44 | 392 | 2.97 | 1,742 | 4.76 | 1,540 | 6.59 | 14,493 | 6.72 | ||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||
Federal agencies
|
83,595 | 5.15 | 5 | 6.54 | 36 | 5.95 | 514 | 5.26 | 83,040 | 5.14 | ||||||||||||||||||||||||||||||
Residential
|
20,786 | 5.21 | 33 | 0.38 | 76 | 0.48 | 203 | 5.05 | 20,474 | 5.23 | ||||||||||||||||||||||||||||||
Commercial
|
12,994 | 5.38 | — | — | 102 | 5.60 | 528 | 3.55 | 12,364 | 5.46 | ||||||||||||||||||||||||||||||
Total mortgage-backed
securities |
117,375 | 5.18 | 38 | 1.26 | 214 | 3.84 | 1,245 | 4.50 | 115,878 | 5.19 | ||||||||||||||||||||||||||||||
Corporate debt securities
|
10,410 | 5.78 | 656 | 4.76 | 3,890 | 5.96 | 4,813 | 5.87 | 1,051 | 5.31 | ||||||||||||||||||||||||||||||
Collateralized debt obligations
|
4,526 | 1.04 | 2 | 5.39 | 462 | 1.21 | 2,212 | 0.96 | 1,850 | 1.09 | ||||||||||||||||||||||||||||||
Other
|
19,378 | 2.87 | 3,346 | 4.02 | 10,711 | 3.02 | 2,167 | 1.86 | 3,154 | 1.85 | ||||||||||||||||||||||||||||||
Total debt securities at
fair value |
$ | 171,599 | 4.96 | % | $ | 4,445 | 4.01 | % | $ | 17,751 | 3.80 | % | $ | 12,874 | 4.12 | % | $ | 136,529 | 5.22 | % | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
December 31, 2009
|
||||||||||||||||||||||||||||||||||||||||
Securities of U.S. Treasury and
federal agencies |
$ | 2,280 | 2.80 | % | $ | 413 | 0.79 | % | $ | 669 | 2.14 | % | $ | 1,192 | 3.87 | % | $ | 6 | 4.03 | % | ||||||||||||||||||||
Securities of U.S. states and
political subdivisions |
13,530 | 6.75 | 77 | 7.48 | 703 | 6.88 | 1,055 | 6.56 | 11,695 | 6.76 | ||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||
Federal agencies
|
82,818 | 5.50 | 12 | 4.68 | 50 | 5.91 | 271 | 5.56 | 82,485 | 5.50 | ||||||||||||||||||||||||||||||
Residential
|
28,590 | 5.40 | 51 | 4.80 | 115 | 0.45 | 283 | 5.69 | 28,141 | 5.41 | ||||||||||||||||||||||||||||||
Commercial
|
10,961 | 5.29 | 85 | 0.68 | 71 | 5.55 | 169 | 5.66 | 10,636 | 5.32 | ||||||||||||||||||||||||||||||
Total mortgage-backed
securities |
122,369 | 5.46 | 148 | 2.44 | 236 | 3.14 | 723 | 5.63 | 121,262 | 5.46 | ||||||||||||||||||||||||||||||
Corporate debt securities
|
9,335 | 5.53 | 684 | 4.00 | 3,937 | 5.68 | 3,959 | 5.68 | 755 | 5.32 | ||||||||||||||||||||||||||||||
Collateralized debt obligations
|
3,725 | 1.70 | 2 | 5.53 | 492 | 4.48 | 1,837 | 1.56 | 1,394 | 0.90 | ||||||||||||||||||||||||||||||
Other
|
15,879 | 4.22 | 2,128 | 5.62 | 7,762 | 5.96 | 697 | 2.46 | 5,292 | 1.33 | ||||||||||||||||||||||||||||||
Total debt securities at
fair value |
$ | 167,118 | 5.33 | % | $ | 3,452 | 4.63 | % | $ | 13,799 | 5.64 | % | $ | 9,463 | 4.51 | % | $ | 140,404 | 5.37 | % | ||||||||||||||||||||
71
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
|
||||||||||||||||
Gross realized gains
|
$ | 71 | 378 | 515 | 1,088 | |||||||||||
Gross realized losses
|
(3 | ) | (23 | ) | (21 | ) | (94 | ) | ||||||||
Write-downs
|
(145 | ) | (277 | ) | (357 | ) | (924 | ) | ||||||||
Net realized gains (losses)
|
$ | (77 | ) | 78 | 137 | 70 | ||||||||||
Quarter ended Sept. 30 | , | Nine months ended Sept. 30, | ||||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
OTTI write-downs included in earnings
|
||||||||||||||||
Debt securities:
|
||||||||||||||||
U.S. states and political subdivisions
|
$ | 8 | 1 | 16 | 6 | |||||||||||
Mortgage-backed securities:
|
||||||||||||||||
Federal agencies
|
14 | — | 14 | — | ||||||||||||
Residential
|
56 | 134 | 132 | 526 | ||||||||||||
Commercial
|
50 | 67 | 105 | 78 | ||||||||||||
Corporate debt securities
|
5 | 5 | 10 | 58 | ||||||||||||
Collateralized debt obligations
|
1 | 25 | 12 | 121 | ||||||||||||
Other debt securities
|
10 | 41 | 53 | 61 | ||||||||||||
Total debt securities
|
144 | 273 | 342 | 850 | ||||||||||||
Equity securities:
|
||||||||||||||||
Marketable equity securities:
|
||||||||||||||||
Perpetual preferred securities
|
1 | 2 | 15 | 47 | ||||||||||||
Other marketable equity securities
|
— | 2 | — | 27 | ||||||||||||
Total marketable equity securities
|
1 | 4 | 15 | 74 | ||||||||||||
Total securities available for sale
|
145 | 277 | 357 | 924 | ||||||||||||
Nonmarketable equity securities
|
34 | 119 | 187 | 451 | ||||||||||||
Total OTTI write-downs included in earnings
|
$ | 179 | 396 | 544 | 1,375 | |||||||||||
72
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
OTTI on debt securities
|
||||||||||||||||
Recorded as part of gross realized losses:
|
||||||||||||||||
Credit-related OTTI
|
$ | 129 | 251 | 324 | 821 | |||||||||||
Securities we intend to sell
|
15 | 22 | 18 | 29 | ||||||||||||
Total recorded as part of gross realized losses
|
144 | 273 | 342 | 850 | ||||||||||||
Recorded directly to OCI for non-credit-related impairment:
|
||||||||||||||||
U.S. states and political subdivisions
|
1 | — | (4 | ) | 4 | |||||||||||
Residential mortgage-backed securities
|
(160 | ) | 75 | (258 | ) | 997 | ||||||||||
Commercial mortgage-backed securities
|
69 | (1 | ) | 151 | 20 | |||||||||||
Corporate debt securities
|
(1 | ) | — | (1 | ) | (2 | ) | |||||||||
Collateralized debt obligations
|
— | (18 | ) | 56 | 12 | |||||||||||
Other debt securities
|
(3 | ) | (15 | ) | (33 | ) | 8 | |||||||||
Total recorded directly to OCI for non-
credit-related impairment (1) |
(94 | ) | 41 | (89 | ) | 1,039 | ||||||||||
Total OTTI on debt securities
|
$ | 50 | 314 | 253 | 1,889 | |||||||||||
(1) | Represents amounts recorded to OCI on debt securities in periods OTTI write-downs have occurred. Changes in fair value in subsequent periods on such securities are not reflected in this total unless the securities also had a credit impairment charge to income recorded for the subsequent period. |
73
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Credit loss component, beginning of period
|
$ | 1,049 | 1,012 | 1,187 | 471 | |||||||||||
Additions:
|
||||||||||||||||
Initial credit impairments
|
42 | 124 | 101 | 537 | ||||||||||||
Subsequent credit impairments
|
87 | 127 | 223 | 284 | ||||||||||||
Total additions
|
129 | 251 | 324 | 821 | ||||||||||||
Reductions:
|
||||||||||||||||
For securities sold
|
(105 | ) | (8 | ) | (181 | ) | (31 | ) | ||||||||
For securities derecognized resulting from adoption of
consolidation accounting guidance |
— | — | (242 | ) | — | |||||||||||
Due to change in intent to sell or requirement to sell
|
— | — | (2 | ) | (1 | ) | ||||||||||
For increases in expected cash flows
|
(11 | ) | — | (24 | ) | (5 | ) | |||||||||
Total reductions
|
(116 | ) | (8 | ) | (449 | ) | (37 | ) | ||||||||
Credit loss component, end of period
|
$ | 1,062 | 1,255 | 1,062 | 1,255 | |||||||||||
74
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
($ in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Credit impairment losses on residential MBS
|
||||||||||||||||
Investment grade
|
$ | — | 5 | — | 21 | |||||||||||
Non-investment grade
|
55 | 129 | 131 | 501 | ||||||||||||
Total credit impairment losses on residential MBS
|
$ | 55 | 134 | 131 | 522 | (1) | ||||||||||
Significant inputs (non-agency — non-investment grade MBS) |
||||||||||||||||
Expected remaining life of loan losses (2):
|
||||||||||||||||
Range (3)
|
3 - 39 | % | 0 - 57 | 1 - 40 | 0 - 58 | |||||||||||
Credit impairment distribution (4):
|
||||||||||||||||
0 - 10% range
|
64 | 50 | 58 | 54 | ||||||||||||
10 - 20% range
|
35 | 9 | 23 | 28 | ||||||||||||
20 - 30% range
|
0 | 23 | 16 | 13 | ||||||||||||
Greater than 30%
|
1 | 18 | 3 | 5 | ||||||||||||
Weighted average (5)
|
9 | 12 | 9 | 12 | ||||||||||||
Current subordination levels (6):
|
||||||||||||||||
Range (3)
|
0 - 23 | 0 - 44 | 0 - 25 | 0 - 44 | ||||||||||||
Weighted average (5)
|
7 | 9 | 7 | 8 | ||||||||||||
Prepayment speed (annual CPR (7)):
|
||||||||||||||||
Range (3)
|
3 - 27 | 5 - 18 | 3 - 27 | 5 - 25 | ||||||||||||
Weighted average (5)
|
21 | 11 | 13 | 11 | ||||||||||||
(1) | Prior period amounts have been restated to conform to current presentation. | |
(2) | Represents future expected credit losses on underlying pool of loans expressed as a percentage of total current outstanding loan balance. | |
(3) | Represents the range of inputs/assumptions based upon the individual securities within each category. | |
(4) | Represents distribution of credit impairment losses recognized in earnings categorized based on range of expected remaining life of loan losses. For example 64% of credit impairment losses recognized in earnings for the quarter ended September 30, 2010, had expected remaining life of loan loss assumptions of 0 to 10%. | |
(5) | Calculated by weighting the relevant input/assumption for each individual security by current outstanding amortized cost basis of the security. | |
(6) | Represents current level of credit protection (subordination) for the securities, expressed as a percentage of total current underlying loan balance. | |
(7) | Constant prepayment rate. |
75
Sept. 30, 2010 | Dec. 31, 2009 | |||||||||||||||||||||||
All | All | |||||||||||||||||||||||
PCI | other | PCI | other | |||||||||||||||||||||
(in millions) | loans | loans | Total | loans | loans | Total | ||||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||||||||||
Commercial
|
$ | 987 | 146,334 | 147,321 | 1,911 | 156,441 | 158,352 | |||||||||||||||||
Real estate mortgage
|
3,118 | 95,637 | 98,755 | 4,137 | 93,390 | 97,527 | ||||||||||||||||||
Real estate construction
|
3,549 | 24,362 | 27,911 | 5,207 | 31,771 | 36,978 | ||||||||||||||||||
Lease financing
|
— | 12,993 | 12,993 | — | 14,210 | 14,210 | ||||||||||||||||||
Total commercial and commercial real estate
|
7,654 | 279,326 | 286,980 | 11,255 | 295,812 | 307,067 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Real estate 1-4 family first mortgage
|
34,432 | 193,649 | 228,081 | 38,386 | 191,150 | 229,536 | ||||||||||||||||||
Real estate 1-4 family junior lien mortgage
|
262 | 98,798 | 99,060 | 331 | 103,377 | 103,708 | ||||||||||||||||||
Credit card
|
— | 21,890 | 21,890 | — | 24,003 | 24,003 | ||||||||||||||||||
Other revolving credit and installment
|
— | 87,962 | 87,962 | — | 89,058 | 89,058 | ||||||||||||||||||
Total consumer
|
34,694 | 402,299 | 436,993 | 38,717 | 407,588 | 446,305 | ||||||||||||||||||
Foreign
|
1,498 | 28,193 | 29,691 | 1,733 | 27,665 | 29,398 | ||||||||||||||||||
Total loans
|
$ | 43,846 | 709,818 | 753,664 | 51,705 | 731,065 | 782,770 | |||||||||||||||||
76
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Balance, beginning of period
|
$ | 25,085 | 23,530 | 25,031 | 21,711 | |||||||||||
Provision for credit losses
|
3,445 | 6,111 | 12,764 | 15,755 | ||||||||||||
Adjustment for passage of time on certain impaired loans (1)
|
(67 | ) | — | (203 | ) | — | ||||||||||
Loan charge-offs:
|
||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||
Commercial
|
(588 | ) | (986 | ) | (2,165 | ) | (2,337 | ) | ||||||||
Real estate mortgage
|
(236 | ) | (190 | ) | (881 | ) | (344 | ) | ||||||||
Real estate construction
|
(296 | ) | (279 | ) | (990 | ) | (649 | ) | ||||||||
Lease financing
|
(29 | ) | (88 | ) | (94 | ) | (173 | ) | ||||||||
Total commercial and commercial real estate
|
(1,149 | ) | (1,543 | ) | (4,130 | ) | (3,503 | ) | ||||||||
Consumer:
|
||||||||||||||||
Real estate 1-4 family first mortgage
|
(1,164 | ) | (1,015 | ) | (3,701 | ) | (2,229 | ) | ||||||||
Real estate 1-4 family junior lien mortgage
|
(1,140 | ) | (1,340 | ) | (3,875 | ) | (3,428 | ) | ||||||||
Credit card
|
(556 | ) | (691 | ) | (1,891 | ) | (2,025 | ) | ||||||||
Other revolving credit and installment
|
(572 | ) | (860 | ) | (1,864 | ) | (2,562 | ) | ||||||||
Total consumer
|
(3,432 | ) | (3,906 | ) | (11,331 | ) | (10,244 | ) | ||||||||
Foreign
|
(49 | ) | (71 | ) | (148 | ) | (181 | ) | ||||||||
Total loan charge-offs
|
(4,630 | ) | (5,520 | ) | (15,609 | ) | (13,928 | ) | ||||||||
Loan recoveries:
|
||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||
Commercial
|
79 | 62 | 317 | 153 | ||||||||||||
Real estate mortgage
|
18 | 6 | 32 | 22 | ||||||||||||
Real estate construction
|
20 | 5 | 82 | 11 | ||||||||||||
Lease financing
|
6 | 6 | 15 | 13 | ||||||||||||
Total commercial and commercial real estate
|
123 | 79 | 446 | 199 | ||||||||||||
Consumer:
|
||||||||||||||||
Real estate 1-4 family first mortgage
|
130 | 49 | 347 | 114 | ||||||||||||
Real estate 1-4 family junior lien mortgage
|
55 | 49 | 157 | 119 | ||||||||||||
Credit card
|
52 | 43 | 165 | 131 | ||||||||||||
Other revolving credit and installment
|
165 | 178 | 549 | 580 | ||||||||||||
Total consumer
|
402 | 319 | 1,218 | 944 | ||||||||||||
Foreign
|
10 | 11 | 31 | 30 | ||||||||||||
Total loan recoveries
|
535 | 409 | 1,695 | 1,173 | ||||||||||||
Net loan charge-offs (2)
|
(4,095 | ) | (5,111 | ) | (13,914 | ) | (12,755 | ) | ||||||||
Allowances related to business combinations/other (3)
|
4 | (2 | ) | 694 | (183 | ) | ||||||||||
Balance, end of period
|
$ | 24,372 | 24,528 | 24,372 | 24,528 | |||||||||||
Components:
|
||||||||||||||||
Allowance for loan losses
|
$ | 23,939 | 24,028 | 23,939 | 24,028 | |||||||||||
Reserve for unfunded credit commitments
|
433 | 500 | 433 | 500 | ||||||||||||
Allowance for credit losses
|
$ | 24,372 | 24,528 | 24,372 | 24,528 | |||||||||||
Net loan charge-offs (annualized) as a percentage of average
total loans (2) |
2.14 | % | 2.50 | 2.40 | 2.05 | |||||||||||
Allowance for loan losses as a percentage of total loans (4)
|
3.18 | 3.00 | 3.18 | 3.00 | ||||||||||||
Allowance for credit losses as a percentage of total loans (4)
|
3.23 | 3.07 | 3.23 | 3.07 | ||||||||||||
(1) | Certain impaired loans have a valuation allowance determined by discounting expected cash flows at the respective loan’s effective interest rate. Accordingly, the valuation allowance for these impaired loans reduces with the passage of time and that reduction is recognized as interest income. | |
(2) | For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates. | |
(3) | Includes $693 million related to the adoption of consolidation accounting guidance on January 1, 2010. | |
(4) | The allowance for credit losses includes $379 million and $233 million at September 30, 2010 and 2009, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs. |
77
Recorded investment | ||||||||||||||||||||||||
Impaired loans with | ||||||||||||||||||||||||
related allowance for | Related allowance | |||||||||||||||||||||||
Impaired loans | credit losses | for credit losses | ||||||||||||||||||||||
Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | |||||||||||||
(in millions) | 2010 | 2009(1) | 2010 | 2009(1) | 2010 | 2009(1) | ||||||||||||||||||
Commercial and commercial real estate
|
$ | 12,476 | 10,562 | 10,540 | 9,666 | 2,346 | 1,502 | |||||||||||||||||
Consumer
|
13,191 | 8,268 | 13,191 | 8,268 | 3,402 | 1,765 | ||||||||||||||||||
Total
|
$ | 25,667 | 18,830 | 23,731 | 17,934 | 5,748 | 3,267 | |||||||||||||||||
(1) | Balances have been revised to conform with current period presentation. |
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Cash basis of accounting
|
$ | 95 | 34 | 196 | 85 | |||||||||||
Other (1)
|
113 | 22 | 362 | 73 | ||||||||||||
Total
|
$ | 208 | 56 | 558 | 158 | |||||||||||
(1) | Includes interest recognized on accruing TDRs and interest recognized related to the passage of time on certain impaired loans. See Footnote 1 to the table of changes in the allowance for credit losses. |
78
• | Changes in interest rate indices for variable rate PCI loans — Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows; |
• | Changes in prepayment assumptions — Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and |
• | Changes in the expected principal and interest payments over the estimated life — These changes in expected cash flows are driven by updates to the credit outlook and actions taken with our borrowers. Expected benefits from loan modifications are included in the quarterly assessment of expected future cash flows. |
(in millions) | ||||
Total, December 31, 2008 (refined)
|
$ | 10,447 | ||
Accretion
|
(2,606 | ) | ||
Reclassification from nonaccretable difference for loans with improving cash flows
|
441 | |||
Changes in expected cash flows that do not affect nonaccretable difference (1)
|
6,277 | |||
Total, December 31, 2009
|
14,559 | |||
Accretion
|
(1,857 | ) | ||
Reclassification from nonaccretable difference for loans with improving cash flows
|
3,234 | |||
Changes in expected cash flows that do not affect nonaccretable difference (1)
|
743 | |||
Total, September 30, 2010
|
$ | 16,679 | ||
|
||||
Total, June 30, 2010
|
$ | 15,085 | ||
Accretion
|
(528 | ) | ||
Reclassification from nonaccretable difference for loans with improving cash flows
|
639 | |||
Changes in expected cash flows that do not affect nonaccretable difference (1)
|
1,483 | |||
Total, September 30, 2010
|
$ | 16,679 | ||
(1) | Represents changes in interest cash flows due to the impact of modifications incorporated into the quarterly assessment of expected future cash flows and/or changes in interest rates on variable rate PCI loans. |
79
Commercial | , | |||||||||||||||
CRE and | Other | |||||||||||||||
(in millions) | foreign | Pick-a-Pay | consumer | Total | ||||||||||||
Balance, December 31, 2008
|
$ | — | — | — | — | |||||||||||
Provision for losses due to credit deterioration
|
850 | — | 3 | 853 | ||||||||||||
Charge-offs
|
(520 | ) | — | — | (520 | ) | ||||||||||
Balance, December 31, 2009
|
330 | — | 3 | 333 | ||||||||||||
Provision for losses due to credit deterioration
|
715 | — | 35 | 750 | ||||||||||||
Charge-offs
|
(683 | ) | — | (21 | ) | (704 | ) | |||||||||
Balance, September 30, 2010
|
$ | 362 | — | 17 | 379 | |||||||||||
|
||||||||||||||||
Balance, June 30, 2010
|
$ | 206 | — | 19 | 225 | |||||||||||
Provision for losses due to credit deterioration
|
339 | — | 9 | 348 | ||||||||||||
Charge-offs
|
(183 | ) | — | (11 | ) | (194 | ) | |||||||||
Balance, September 30, 2010
|
$ | 362 | — | 17 | 379 | |||||||||||
80
Sept. 30 | , | Dec. 31 | , | |||||
(in millions) | 2010 | 2009 | ||||||
Nonmarketable equity investments:
|
||||||||
Cost method:
|
||||||||
Private equity investments
|
$ | 2,995 | 3,808 | |||||
Federal bank stock
|
5,511 | 5,985 | ||||||
Total cost method
|
8,506 | 9,793 | ||||||
Equity method
|
7,234 | 5,138 | ||||||
Principal investments (1)
|
345 | 1,423 | ||||||
Total nonmarketable equity investments
|
16,085 | 16,354 | ||||||
Corporate/bank-owned life insurance |
19,770 | 19,515 | ||||||
Accounts receivable
|
19,807 | 20,565 | ||||||
Interest receivable
|
5,175 | 5,946 | ||||||
Core deposit intangibles
|
9,370 | 10,774 | ||||||
Customer relationship and other amortized intangibles
|
1,931 | 2,154 | ||||||
Net deferred tax assets
|
— | 3,212 | ||||||
Foreclosed assets:
|
||||||||
GNMA loans (2)
|
1,492 | 960 | ||||||
Other
|
4,635 | 2,199 | ||||||
Operating lease assets
|
1,977 | 2,395 | ||||||
Due from customers on acceptances
|
308 | 810 | ||||||
Other
|
16,658 | 19,296 | ||||||
Total other assets
|
$ | 97,208 | 104,180 | |||||
(1) | Principal investments are recorded at fair value with realized and unrealized gains (losses) included in net gains (losses) from equity investments in the income statement. | |
(2) | Consistent with regulatory reporting requirements, foreclosed assets include foreclosed real estate securing GNMA loans. Both principal and interest for GNMA loans secured by the foreclosed real estate are collectible because the GNMA loans are insured by the FHA or guaranteed by the VA. |
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Net gains (losses) from:
|
||||||||||||||||
Private equity investments
|
$ | 90 | (95 | ) | 244 | (386 | ) | |||||||||
Principal investments
|
4 | 6 | 25 | (9 | ) | |||||||||||
All other nonmarketable equity investments
|
(86 | ) | (37 | ) | (124 | ) | (180 | ) | ||||||||
Net gains (losses)
from nonmarketable
equity investments
|
$ | 8 | (126 | ) | 145 | (575 | ) | |||||||||
81
• | 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. |
82
Transfers that | ||||||||||||||||
VIEs that we | VIEs | we account | ||||||||||||||
do not | that we | for as secured | ||||||||||||||
(in millions) | consolidate | consolidate | borrowings | Total | ||||||||||||
September 30, 2010 |
||||||||||||||||
Cash
|
$ | — | 150 | 537 | 687 | |||||||||||
Trading assets
|
5,444 | 95 | 32 | 5,571 | ||||||||||||
Securities available for sale
(1)
|
27,312 | 2,735 | 7,721 | 37,768 | ||||||||||||
Loans
|
12,346 | 18,646 | 1,541 | 32,533 | ||||||||||||
Mortgage servicing rights
|
11,405 | — | — | 11,405 | ||||||||||||
Other assets
|
3,481 | 1,541 | 92 | 5,114 | ||||||||||||
Total assets
|
59,988 | 23,167 | 9,923 | 93,078 | ||||||||||||
Short-term borrowings
|
— | 4,717 | (2) | 6,985 | 11,702 | |||||||||||
Accrued expenses and other liabilities
|
3,266 | 614 | (2) | 14 | 3,894 | |||||||||||
Long-term debt
|
— | 8,928 | (2) | 1,750 | 10,678 | |||||||||||
Total liabilities
|
3,266 | 14,259 | 8,749 | 26,274 | ||||||||||||
Noncontrolling interests
|
— | 40 | — | 40 | ||||||||||||
Net assets
|
$ | 56,722 | 8,868 | 1,174 | 66,764 | |||||||||||
December 31, 2009 |
||||||||||||||||
Cash
|
$ | — | 273 | 328 | 601 | |||||||||||
Trading assets
|
6,097 | 77 | 35 | 6,209 | ||||||||||||
Securities available for sale (1)
|
35,186 | 1,794 | 7,126 | 44,106 | ||||||||||||
Loans
|
15,698 | 561 | 2,007 | 18,266 | ||||||||||||
Mortgage servicing rights
|
16,233 | — | — | 16,233 | ||||||||||||
Other assets
|
5,604 | 2,595 | 68 | 8,267 | ||||||||||||
Total assets
|
78,818 | 5,300 | 9,564 | 93,682 | ||||||||||||
Short-term borrowings
|
— | 351 | 1,996 | 2,347 | ||||||||||||
Accrued expenses and other liabilities
|
3,352 | 708 | 4,864 | 8,924 | ||||||||||||
Long-term debt
|
— | 1,448 | 1,938 | 3,386 | ||||||||||||
Total liabilities
|
3,352 | 2,507 | 8,798 | 14,657 | ||||||||||||
Noncontrolling interests
|
— | 68 | — | 68 | ||||||||||||
Net assets
|
$ | 75,466 | 2,725 | 766 | 78,957 | |||||||||||
(1) | Excludes certain debt securities related to loans serviced for the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and GNMA. | |
(2) | Includes the following VIE liabilities at September 30, 2010, with recourse to the general credit of Wells Fargo: Short-term borrowings, $4.7 billion; Accrued expenses and other liabilities, $552 million; and Long-term debt, $77 million. |
83
Other | ||||||||||||||||||||||||
Total | Debt and | commitments | ||||||||||||||||||||||
VIE | equity | Servicing | and | Net | ||||||||||||||||||||
(in millions) | assets | interests (1) | assets | Derivatives | guarantees | assets | ||||||||||||||||||
September 30, 2010
|
||||||||||||||||||||||||
Carrying value — asset (liability)
|
||||||||||||||||||||||||
Residential mortgage loan securitizations: |
||||||||||||||||||||||||
Conforming
|
$ | 1,092,762 | 5,065 | 10,297 | — | (1,020 | ) | 14,342 | ||||||||||||||||
Other/nonconforming
|
86,811 | 3,737 | 457 | 3 | (4 | ) | 4,193 | |||||||||||||||||
Commercial mortgage securitizations
|
206,098 | 5,559 | 606 | 392 | — | 6,557 | ||||||||||||||||||
Collateralized debt obligations:
|
||||||||||||||||||||||||
Debt securities
|
21,252 | 1,472 | — | 1,090 | — | 2,562 | ||||||||||||||||||
Loans
(2)
|
10,010 | 9,761 | — | — | — | 9,761 | ||||||||||||||||||
Asset-based finance structures
|
14,451 | 8,759 | — | (125 | ) | — | 8,634 | |||||||||||||||||
Tax credit structures
|
20,219 | 3,210 | — | — | (826 | ) | 2,384 | |||||||||||||||||
Collateralized loan obligations
|
14,507 | 2,897 | — | 65 | — | 2,962 | ||||||||||||||||||
Investment funds
|
13,278 | 1,404 | — | — | — | 1,404 | ||||||||||||||||||
Other
(3)
|
19,095 | 3,362 | 45 | 520 | (4 | ) | 3,923 | |||||||||||||||||
Total
|
$ | 1,498,483 | 45,226 | 11,405 | 1,945 | (1,854 | ) | 56,722 | ||||||||||||||||
Maximum exposure to loss
|
||||||||||||||||||||||||
Residential mortgage loan securitizations: |
||||||||||||||||||||||||
Conforming
|
$ | 5,065 | 10,297 | — | 4,145 | 19,507 | ||||||||||||||||||
Other/nonconforming
|
3,737 | 457 | 3 | 10 | 4,207 | |||||||||||||||||||
Commercial mortgage securitizations
|
5,559 | 606 | 634 | — | 6,799 | |||||||||||||||||||
Collateralized debt obligation:
|
||||||||||||||||||||||||
Debt securities
|
1,472 | — | 3,151 | 11 | 4,634 | |||||||||||||||||||
Loans
(2)
|
9,761 | — | — | — | 9,761 | |||||||||||||||||||
Asset-based finance structures
|
8,759 | — | 125 | 1,966 | 10,850 | |||||||||||||||||||
Tax credit structures
|
3,210 | — | — | 1 | 3,211 | |||||||||||||||||||
Collateralized loan obligations
|
2,897 | — | 65 | 499 | 3,461 | |||||||||||||||||||
Investment funds
|
1,404 | — | — | 97 | 1,501 | |||||||||||||||||||
Other
(3)
|
3,362 | 45 | 1,251 | 861 | 5,519 | |||||||||||||||||||
Total
|
$ | 45,226 | 11,405 | 5,229 | 7,590 | 69,450 | ||||||||||||||||||
84
Other | ||||||||||||||||||||||||
Total | Debt and | commitments | ||||||||||||||||||||||
VIE | equity | Servicing | and | Net | ||||||||||||||||||||
(in millions) | assets | interests (1) | assets | Derivatives | guarantees | assets | ||||||||||||||||||
December 31, 2009
|
||||||||||||||||||||||||
|
Carrying value — asset (liability)
|
|||||||||||||||||||||||
Residential mortgage loan securitizations (4):
|
||||||||||||||||||||||||
Conforming
|
$ | 1,150,515 | 5,846 | 13,949 | — | (869 | ) | 18,926 | ||||||||||||||||
Other/nonconforming
|
251,850 | 11,683 | 1,538 | 16 | (15 | ) | 13,222 | |||||||||||||||||
Commercial mortgage securitizations
|
345,561 | 3,760 | 696 | 489 | — | 4,945 | ||||||||||||||||||
Collateralized debt obligations:
|
||||||||||||||||||||||||
Debt securities
|
45,684 | 3,024 | — | 1,746 | — | 4,770 | ||||||||||||||||||
Loans (2)
|
10,215 | 9,964 | — | — | — | 9,964 | ||||||||||||||||||
Multi-seller commercial paper conduit (5)
|
5,160 | — | — | — | — | — | ||||||||||||||||||
Asset-based finance structures
|
17,467 | 10,187 | — | (72 | ) | (248 | ) | 9,867 | ||||||||||||||||
Tax credit structures
|
27,537 | 4,659 | — | — | (653 | ) | 4,006 | |||||||||||||||||
Collateralized loan obligations
|
23,830 | 3,602 | — | 64 | — | 3,666 | ||||||||||||||||||
Investment funds
|
84,642 | 1,831 | — | — | (129 | ) | 1,702 | |||||||||||||||||
Other (3)
|
23,538 | 3,626 | 50 | 1,015 | (293 | ) | 4,398 | |||||||||||||||||
Total
|
$ | 1,985,999 | 58,182 | 16,233 | 3,258 | (2,207 | ) | 75,466 | ||||||||||||||||
|
Maximum exposure to loss
|
|||||||||||||||||||||||
Residential mortgage loan securitizations (4):
|
||||||||||||||||||||||||
Conforming
|
$ | 5,846 | 13,949 | — | 4,567 | 24,362 | ||||||||||||||||||
Other/nonconforming
|
11,683 | 1,538 | 30 | 218 | 13,469 | |||||||||||||||||||
Commercial mortgage securitizations
|
3,760 | 696 | 766 | — | 5,222 | |||||||||||||||||||
Collateralized debt obligations:
|
||||||||||||||||||||||||
Debt securities
|
3,024 | — | 3,586 | 33 | 6,643 | |||||||||||||||||||
Loans (2)
|
9,964 | — | — | — | 9,964 | |||||||||||||||||||
Multi-seller commercial paper conduit
|
— | — | 5,263 | — | 5,263 | |||||||||||||||||||
Asset-based finance structures
|
10,187 | — | 72 | 968 | 11,227 | |||||||||||||||||||
Tax credit structures
|
4,659 | — | — | 4 | 4,663 | |||||||||||||||||||
Collateralized loan obligations
|
3,702 | — | 64 | 473 | 4,239 | |||||||||||||||||||
Investment funds
|
2,331 | — | 500 | 89 | 2,920 | |||||||||||||||||||
Other (3)
|
3,626 | 50 | 1,818 | 1,774 | 7,268 | |||||||||||||||||||
Total
|
$ | 58,782 | 16,233 | 12,099 | 8,126 | 95,240 | ||||||||||||||||||
(1) | Excludes certain debt securities held related to loans serviced for FNMA, FHLMC and GNMA. | |
(2) | Represents senior loans to trusts that are collateralized by asset-backed securities. The trusts invest primarily in senior tranches from a diversified pool of primarily U.S. asset securitizations, of which all are current, and over 92% were rated as investment grade by the primary rating agencies at September 30, 2010. These senior loans were acquired in the Wachovia business combination and are accounted for at amortized cost as initially determined under purchase accounting and are subject to the Company’s allowance and credit charge-off policies. | |
(3) | Includes student loan securitizations, auto loan securitizations and credit-linked note structures. Also contains investments in auction rate securities (ARS) issued by VIEs that we do not sponsor and, accordingly, are unable to obtain the total assets of the entity. | |
(4) | Total VIE assets at December 31, 2009, includes $20.9 billion of nonconforming residential mortgage securitizations that were consolidated in first quarter 2010. | |
(5) | The multi-seller commercial paper conduit was consolidated in first quarter 2010. |
85
86
87
88
2010 | 2009 | |||||||||||||||
Other | Other | |||||||||||||||
Mortgage | financial | Mortgage | financial | |||||||||||||
(in millions) | loans | assets | loans | assets | ||||||||||||
Quarter ended September 30,
|
||||||||||||||||
Sales proceeds from securitizations (1)
|
$ | 96,843 | — | 103,033 | — | |||||||||||
Servicing fees
|
1,090 | 8 | 1,079 | 10 | ||||||||||||
Other interests held
|
448 | 104 | 565 | 12 | ||||||||||||
Purchases of delinquent assets
|
11 | — | 13 | — | ||||||||||||
Net servicing advances
|
16 | — | 70 | — | ||||||||||||
Nine months ended September 30,
|
||||||||||||||||
Sales proceeds from securitizations (1)
|
$ | 260,600 | — | 304,378 | — | |||||||||||
Servicing fees
|
3,187 | 26 | 3,163 | 33 | ||||||||||||
Other interests held
|
1,300 | 348 | 1,728 | 47 | ||||||||||||
Purchases of delinquent assets
|
21 | — | 37 | — | ||||||||||||
Net servicing advances
|
45 | — | 199 | — | ||||||||||||
(1) | Represents cash flow data for all loans securitized in the periods presented. |
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Prepayment speed assumption (annual CPR(1))
|
15.4 | % | 11.5 | 13.8 | 11.5 | |||||||||||
Expected weighted-average life (in years)
|
4.9 | 6.3 | 5.4 | 6.3 | ||||||||||||
Discount rate assumption
|
7.9 | % | 8.3 | 8.1 | 8.7 | |||||||||||
(1) | Constant prepayment rate. |
89
Other interests held | ||||||||||||||||
Mortgage | Interest- | |||||||||||||||
servicing | only | Subordinated | Senior | |||||||||||||
(in millions) | rights | strips | bonds | bonds | ||||||||||||
Fair value of interests held at September 30, 2010
|
$ | 13,834 | 240 | 47 | 473 | |||||||||||
Expected weighted-average life (in years)
|
4.5 | 4.5 | 8.8 | 3.7 | ||||||||||||
Prepayment speed assumption (annual CPR)
|
15.8 | % | 12.3 | 4.1 | 22.2 | |||||||||||
Decrease in fair value from:
|
||||||||||||||||
10% adverse change
|
$ | 808 | 8 | — | 2 | |||||||||||
25% adverse change
|
1,890 | 18 | — | 5 | ||||||||||||
Discount rate assumption
|
8.0 | % | 17.4 | 7.1 | 6.6 | |||||||||||
Decrease in fair value from:
|
||||||||||||||||
100 basis point increase
|
$ | 616 | 7 | 3 | 13 | |||||||||||
200 basis point increase
|
1,180 | 12 | 6 | 26 | ||||||||||||
Credit loss assumption
|
0.7 | % | 4.0 | |||||||||||||
Decrease in fair value from:
|
||||||||||||||||
10% higher losses
|
$ | — | 1 | |||||||||||||
25% higher losses
|
— | 3 | ||||||||||||||
Mortgage | ||||
repurchase | ||||
(in millions) | liability | |||
Balance at September 30, 2010
|
$ | 1,331 | ||
Credit loss assumption
|
50.0 | % | ||
Increase in liability from:
|
||||
10% higher losses
|
$ | 138 | ||
25% higher losses
|
345 | |||
Repurchase rate assumption
|
0.4 | % | ||
Increase in liability from:
|
||||
10% higher repurchase rates
|
$ | 107 | ||
25% higher repurchase rates
|
267 | |||
90
Net charge-offs | ||||||||||||||||||||||||
(recoveries) | ||||||||||||||||||||||||
Total loans | Delinquent loans | Nine months ended | ||||||||||||||||||||||
Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | |||||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||||||||||
Commercial
|
$ | 3 | 78 | — | 65 | — | — | |||||||||||||||||
Real estate mortgage
|
215,281 | 221,516 | 17,795 | 7,208 | 470 | 58 | ||||||||||||||||||
Total commercial and commercial real estate
|
215,284 | 221,594 | 17,795 | 7,273 | 470 | 58 | ||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||
Real estate 1-4 family first mortgage
|
1,123,025 | 1,062,938 | 5,706 | 7,501 | 1,060 | 935 | ||||||||||||||||||
Real estate 1-4 family junior lien mortgage
|
3 | 3,292 | — | 76 | — | 16 | ||||||||||||||||||
Other revolving credit and installment
|
2,502 | 5,104 | 107 | 100 | — | 88 | ||||||||||||||||||
Total consumer
|
1,125,530 | 1,071,334 | 5,813 | 7,677 | 1,060 | 1,039 | ||||||||||||||||||
Total off-balance sheet securitized loans
|
$ | 1,340,814 | 1,292,928 | $ | 23,608 | 14,950 | 1,530 | 1,097 | ||||||||||||||||
91
Carrying value | ||||||||||||||||||||
Total | Third | |||||||||||||||||||
VIE | Consolidated | party | Noncontrolling | Net | ||||||||||||||||
(in millions) | assets | assets | liabilities | interests | assets | |||||||||||||||
September 30, 2010
|
||||||||||||||||||||
Secured borrowings: |
||||||||||||||||||||
Municipal tender option bond securitizations
|
$ | 9,858 | 7,768 | (6,990 | ) | — | 778 | |||||||||||||
Auto loan securitizations
|
181 | 181 | (26 | ) | — | 155 | ||||||||||||||
Commercial real estate loans
|
1,316 | 1,316 | (1,273 | ) | — | 43 | ||||||||||||||
Residential mortgage securitizations
|
747 | 658 | (460 | ) | — | 198 | ||||||||||||||
Total secured borrowings
|
12,102 | 9,923 | (8,749 | ) | — | 1,174 | ||||||||||||||
Consolidated VIEs:
|
||||||||||||||||||||
Nonconforming residential mortgage loan securitizations
|
15,678 | 14,750 | (7,482 | ) | — | 7,268 | ||||||||||||||
Multi-seller commercial paper conduit
|
4,194 | 4,194 | (4,319 | ) | — | (125 | ) | |||||||||||||
Auto loan securitizations
|
1,203 | 1,203 | (1,171 | ) | — | 32 | ||||||||||||||
Structured asset finance
|
150 | 150 | (31 | ) | (11 | ) | 108 | |||||||||||||
Investment funds
|
1,244 | 1,244 | (53 | ) | (14 | ) | 1,177 | |||||||||||||
Other
|
1,628 | 1,626 | (1,203 | ) | (15 | ) | 408 | |||||||||||||
Total consolidated VIEs
|
24,097 | 23,167 | (14,259 | ) | (40 | ) | 8,868 | |||||||||||||
Total secured borrowings and consolidated VIEs
|
$ | 36,199 | 33,090 | (23,008 | ) | (40 | ) | 10,042 | ||||||||||||
December 31, 2009 |
||||||||||||||||||||
Secured borrowings: |
||||||||||||||||||||
Municipal tender option bond securitizations (1)
|
$ | 9,649 | 7,189 | (6,856 | ) | — | 333 | |||||||||||||
Auto loan securitizations
|
274 | 274 | (121 | ) | — | 153 | ||||||||||||||
Commercial real estate loans
|
1,309 | 1,309 | (1,269 | ) | — | 40 | ||||||||||||||
Residential mortgage securitizations
|
901 | 792 | (552 | ) | — | 240 | ||||||||||||||
Total secured borrowings
|
12,133 | 9,564 | (8,798 | ) | — | 766 | ||||||||||||||
Consolidated VIEs:
|
||||||||||||||||||||
Structured asset finance
|
2,791 | 1,074 | (1,088 | ) | (10 | ) | (24 | ) | ||||||||||||
Investment funds
|
2,257 | 2,245 | (271 | ) | (33 | ) | 1,941 | |||||||||||||
Other
|
2,697 | 1,981 | (1,148 | ) | (25 | ) | 808 | |||||||||||||
Total consolidated VIEs
|
7,745 | 5,300 | (2,507 | ) | (68 | ) | 2,725 | |||||||||||||
Total secured borrowings and consolidated VIEs
|
$ | 19,878 | 14,864 | (11,305 | ) | (68 | ) | 3,491 | ||||||||||||
(1) | Balances have been revised to conform with current period presentation. |
92
93
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Fair value, beginning of period
|
$ | 13,251 | 15,690 | 16,004 | 14,714 | |||||||||||
Adjustments from adoption of consolidation
accounting guidance
|
— | — | (118 | ) | — | |||||||||||
Acquired from Wachovia (1)
|
— | — | — | 34 | ||||||||||||
Servicing from
securitizations or
asset transfers
|
1,043 | 1,517 | 3,040 | 5,045 | ||||||||||||
Net additions
|
1,043 | 1,517 | 2,922 | 5,079 | ||||||||||||
Changes in fair value:
|
||||||||||||||||
Due to changes in valuation model inputs or assumptions (2)
|
(1,132 | ) | (2,078 | ) | (4,570 | ) | (2,586 | ) | ||||||||
Other changes in fair value (3)
|
(676 | ) | (629 | ) | (1,870 | ) | (2,707 | ) | ||||||||
Total changes in fair value
|
(1,808 | ) | (2,707 | ) | (6,440 | ) | (5,293 | ) | ||||||||
Fair value, end of period
|
$ | 12,486 | 14,500 | 12,486 | 14,500 | |||||||||||
(1) | Reflects refinements to initial purchase accounting adjustments. | |
(2) | Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates. | |
(3) | Represents changes due to collection/realization of expected cash flows over time. |
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Balance, beginning of period
|
$ | 1,037 | 1,205 | 1,119 | 1,446 | |||||||||||
Adjustments from adoption of consolidation
accounting guidance
|
— | — | (5 | ) | — | |||||||||||
Purchases
|
14 | — | 22 | 10 | ||||||||||||
Acquired from Wachovia (1)
|
— | — | — | (135 | ) | |||||||||||
Servicing from securitizations or asset transfers
|
18 | 21 | 46 | 43 | ||||||||||||
Amortization
|
(56 | ) | (64 | ) | (169 | ) | (202 | ) | ||||||||
Balance, end of period (2)
|
$ | 1,013 | 1,162 | 1,013 | 1,162 | |||||||||||
Fair value of amortized MSRs:
|
||||||||||||||||
Beginning of period
|
$ | 1,307 | 1,311 | 1,261 | 1,555 | |||||||||||
End of period
|
1,349 | 1,277 | 1,349 | 1,277 | ||||||||||||
(1) | Reflects refinements to initial purchase accounting adjustments. | |
(2) | There was no valuation allowance recorded for the periods presented. Commercial MSRs are evaluated for impairment purposes by the following asset classes: agency and non-agency commercial mortgage-backed securities (MBS), and loans. |
94
Sept. 30 | , | Dec. 31 | , | |||||
(in billions) | 2010 | 2009 | ||||||
Residential mortgage servicing:
|
||||||||
Serviced for others
|
$ | 1,433 | 1,422 | |||||
Owned loans serviced
|
365 | 364 | ||||||
Subservicing
|
10 | 10 | ||||||
Total residential servicing
|
1,808 | 1,796 | ||||||
Commercial mortgage servicing:
|
||||||||
Serviced for others
|
439 | 454 | ||||||
Owned loans serviced
|
99 | 105 | ||||||
Subservicing
|
10 | 10 | ||||||
Total commercial servicing
|
548 | 569 | ||||||
Total managed servicing portfolio
|
$ | 2,356 | 2,365 | |||||
Total serviced for others
|
$ | 1,872 | 1,876 | |||||
Ratio of MSRs to related loans serviced for others
|
0.72 | % | 0.91 | |||||
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Servicing income, net:
|
||||||||||||||||
Servicing fees
|
$ | 1,192 | 1,085 | 3,468 | 3,117 | |||||||||||
Changes in fair value of residential MSRs:
|
||||||||||||||||
Due to changes in valuation model inputs or assumptions (1)
|
(1,132 | ) | (2,078 | ) | (4,570 | ) | (2,586 | ) | ||||||||
Other changes in fair value (2)
|
(676 | ) | (629 | ) | (1,870 | ) | (2,707 | ) | ||||||||
Total changes in fair value of residential MSRs
|
(1,808 | ) | (2,707 | ) | (6,440 | ) | (5,293 | ) | ||||||||
Amortization
|
(56 | ) | (64 | ) | (169 | ) | (202 | ) | ||||||||
Net derivative gains from economic hedges (3)
|
1,188 | 3,605 | 6,241 | 6,019 | ||||||||||||
Total servicing income, net
|
516 | 1,919 | 3,100 | 3,641 | ||||||||||||
Net gains on mortgage loan origination/sales activities
|
1,983 | 1,148 | 3,880 | 4,976 | ||||||||||||
Total mortgage banking noninterest income
|
$ | 2,499 | 3,067 | 6,980 | 8,617 | |||||||||||
Market-related valuation changes to MSRs, net of hedge results (1)+(3)
|
$ | 56 | 1,527 | 1,671 | 3,433 | |||||||||||
(1) | Principally reflects changes in discount rates and prepayment speed assumptions, mostly due to changes in interest rates. | |
(2) | Represents changes due to collection/realization of expected cash flows over time. | |
(3) | Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs. See Note 11 — Free-Standing Derivatives in this Report for additional discussion and detail. |
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Contractually specified servicing fees
|
$ | 1,160 | 1,132 | 3,421 | 3,324 | |||||||||||
Late charges
|
100 | 80 | 278 | 246 | ||||||||||||
Ancillary fees
|
111 | 59 | 328 | 207 | ||||||||||||
95
September 30, 2010 | December 31, 2009 | |||||||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||||||
carrying | Accumulated | carrying | carrying | Accumulated | carrying | |||||||||||||||||||
(in millions) | value | amortization | value | value | amortization | value | ||||||||||||||||||
Amortized intangible assets:
|
||||||||||||||||||||||||
MSRs (1)
|
$ | 1,665 | 652 | 1,013 | 1,606 | 487 | 1,119 | |||||||||||||||||
Core deposit intangibles
|
15,133 | 5,763 | 9,370 | 15,140 | 4,366 | 10,774 | ||||||||||||||||||
Customer relationship and
|
||||||||||||||||||||||||
other intangibles
|
3,078 | 1,147 | 1,931 | 3,050 | 896 | 2,154 | ||||||||||||||||||
Total amortized intangible assets
|
$ | 19,876 | 7,562 | 12,314 | 19,796 | 5,749 | 14,047 | |||||||||||||||||
MSRs (carried at fair value) (1)
|
$ | 12,486 | — | 12,486 | 16,004 | — | 16,004 | |||||||||||||||||
Goodwill
|
24,831 | — | 24,831 | 24,812 | — | 24,812 | ||||||||||||||||||
Trademark
|
14 | — | 14 | 14 | — | 14 | ||||||||||||||||||
(1) | See Note 8 in this Report for additional information on MSRs. |
Customer | ||||||||||||||||
Amortized | Core | relationship | ||||||||||||||
commercial | deposit | and other | ||||||||||||||
(in millions) | MSRs | intangibles | intangibles (1) | Total | ||||||||||||
Nine months ended September 30, 2010 (actual)
|
$ | 168 | 1,406 | 248 | 1,822 | |||||||||||
Estimate for year ending December 31,
|
||||||||||||||||
2010
|
$ | 223 | 1,872 | 331 | 2,426 | |||||||||||
2011
|
208 | 1,593 | 288 | 2,089 | ||||||||||||
2012
|
170 | 1,396 | 269 | 1,835 | ||||||||||||
2013
|
134 | 1,241 | 252 | 1,627 | ||||||||||||
2014
|
115 | 1,113 | 234 | 1,462 | ||||||||||||
2015
|
107 | 1,022 | 212 | 1,341 | ||||||||||||
(1) | Includes amortization of lease intangibles reported in occupancy expense of $4 million for the first nine months of 2010, and estimated amortization of $6 million, $9 million, $8 million, $8 million, $5 million, and $4 million for 2010, 2011, 2012, 2013, 2014 and 2015, respectively. |
96
Wealth | , | |||||||||||||||
Community | Wholesale | Brokerage and | Consolidated | |||||||||||||
(in millions) | Banking | Banking | Retirement | Company | ||||||||||||
Balance, December 31, 2008
|
$ | 16,810 | 5,449 | 368 | 22,627 | |||||||||||
Goodwill from business combinations
|
926 | 493 | — | 1,419 | ||||||||||||
Foreign currency translation adjustments
|
6 | — | — | 6 | ||||||||||||
Balance, September 30, 2009
|
$ | 17,742 | 5,942 | 368 | 24,052 | |||||||||||
Balance, December 31, 2009 |
$ | 18,160 | 6,279 | 373 | 24,812 | |||||||||||
Goodwill from business combinations
|
— | 19 | — | 19 | ||||||||||||
Balance, September 30, 2010
|
$ | 18,160 | 6,298 | 373 | 24,831 | |||||||||||
97
September 30, 2010 | December 31, 2009 | |||||||||||||||||||||||
Maximum | Non- | Maximum | Non- | |||||||||||||||||||||
Carrying | exposure | investment | Carrying | exposure | investment | |||||||||||||||||||
(in millions) | value | to loss | grade | value | to loss | grade | ||||||||||||||||||
Standby letters of credit
|
$ | 147 | 45,159 | 19,791 | 148 | 49,997 | 21,112 | |||||||||||||||||
Securities lending and other indemnifications
|
49 | 14,032 | 4,326 | 51 | 20,002 | 2,512 | ||||||||||||||||||
Liquidity agreements (1)
|
— | 55 | 1 | 66 | 7,744 | — | ||||||||||||||||||
Written put options (1)(2)
|
953 | 7,530 | 3,348 | 803 | 8,392 | 3,674 | ||||||||||||||||||
Loans sold with recourse
|
116 | 5,280 | 3,554 | 96 | 5,049 | 2,400 | ||||||||||||||||||
Residual value guarantees
|
8 | 197 | — | 8 | 197 | — | ||||||||||||||||||
Contingent consideration
|
18 | 90 | 88 | 11 | 145 | 102 | ||||||||||||||||||
Other guarantees
|
— | 75 | 2 | — | 55 | 2 | ||||||||||||||||||
Total guarantees
|
$ | 1,291 | 72,418 | 31,110 | 1,183 | 91,581 | 29,802 | |||||||||||||||||
(1) | Certain of these agreements are related to off-balance sheet entities and, accordingly, are also disclosed in Note 7 in this Report. | |
(2) | Written put options, which are in the form of derivatives, are also included in the derivative disclosures in Note 11 in this Report. |
98
99
100
101
102
September 30, 2010 | December 31, 2009 | |||||||||||||||||||||||
Notional or | Fair value | Notional or | Fair value | |||||||||||||||||||||
contractual | Asset | Liability | contractual | Asset | Liability | |||||||||||||||||||
(in millions) | amount | derivatives | derivatives | amount | derivatives | derivatives | ||||||||||||||||||
Qualifying hedge contracts
|
||||||||||||||||||||||||
Interest rate contracts (1)
|
$ | 109,967 | 9,345 | 2,370 | 119,966 | 6,425 | 1,302 | |||||||||||||||||
Foreign exchange contracts
|
26,989 | 2,063 | 541 | 30,212 | 1,553 | 811 | ||||||||||||||||||
Total derivatives
designated as
qualifying
hedging instruments
|
11,408 | 2,911 | 7,978 | 2,113 | ||||||||||||||||||||
Derivatives not designated as hedging instruments
|
||||||||||||||||||||||||
Free-standing derivatives (economic hedges):
|
||||||||||||||||||||||||
Interest rate contracts (2)
|
517,729 | 3,249 | 2,673 | 633,734 | 4,441 | 4,873 | ||||||||||||||||||
Equity contracts
|
— | — | — | 300 | — | 2 | ||||||||||||||||||
Foreign exchange contracts
|
1,881 | 11 | 58 | 7,019 | 233 | 29 | ||||||||||||||||||
Credit contracts — protection purchased
|
437 | 103 | — | 577 | 261 | — | ||||||||||||||||||
Other derivatives
|
4,474 | — | 91 | 4,583 | — | 40 | ||||||||||||||||||
Subtotal
|
3,363 | 2,822 | 4,935 | 4,944 | ||||||||||||||||||||
Customer accommodation, trading
|
||||||||||||||||||||||||
and other free-standing derivatives:
|
||||||||||||||||||||||||
Interest rate contracts
|
2,752,345 | 79,129 | 79,689 | 2,741,119 | 54,873 | 54,033 | ||||||||||||||||||
Commodity contracts
|
77,405 | 4,142 | 4,138 | 92,182 | 5,400 | 5,182 | ||||||||||||||||||
Equity contracts
|
74,316 | 3,121 | 3,193 | 71,572 | 2,459 | 3,067 | ||||||||||||||||||
Foreign exchange contracts
|
157,496 | 3,326 | 3,105 | 142,012 | 3,084 | 2,737 | ||||||||||||||||||
Credit contracts — protection sold
|
50,972 | 555 | 6,748 | 76,693 | 979 | 9,577 | ||||||||||||||||||
Credit contracts — protection purchased
|
50,098 | 5,633 | 542 | 81,357 | 9,349 | 1,089 | ||||||||||||||||||
Other derivatives
|
283 | 13 | 12 | 2,314 | 427 | 171 | ||||||||||||||||||
Subtotal
|
95,919 | 97,427 | 76,571 | 75,856 | ||||||||||||||||||||
Total derivatives not designated as
hedging instruments
|
99,282 | 100,249 | 81,506 | 80,800 | ||||||||||||||||||||
Total derivatives before netting
|
110,690 | 103,160 | 89,484 | 82,913 | ||||||||||||||||||||
Netting (3)
|
(87,944 | ) | (95,368 | ) | (65,926 | ) | (73,303 | ) | ||||||||||||||||
Total
|
$ | 22,746 | 7,792 | 23,558 | 9,610 | |||||||||||||||||||
(1) | Notional amounts presented exclude $20.9 billion at both September 30, 2010, and December 31, 2009, of basis swaps that are combined with receive fixed-rate / pay floating-rate swaps and designated as one hedging instrument. | |
(2) | Includes free-standing derivatives (economic hedges) used to hedge the risk of changes in the fair value of residential MSRs, MHFS, interest rate lock commitments and other interests held. | |
(3) | Represents netting of derivative asset and liability balances, and related cash collateral, with the same counterparty subject to master netting arrangements under the accounting guidance covering the offsetting of amounts related to certain contracts. The amount of cash collateral netted against derivative assets and liabilities was $6.5 billion and $14.0 billion, respectively, at September 30, 2010, and $5.3 billion and $14.1 billion, respectively, at December 31, 2009. |
103
Interest rate | ||||||||||||||||||||||||
contracts hedging: | Foreign exchange contracts hedging: | |||||||||||||||||||||||
Total net | ||||||||||||||||||||||||
Securities | Securities | gains (losses) | ||||||||||||||||||||||
available | Long-term | available | Short-term | Long-term | on fair value | |||||||||||||||||||
(in millions) | for sale | debt | for sale | borrowings | debt | hedges | ||||||||||||||||||
Quarter ended September 30, 2010 |
||||||||||||||||||||||||
Gains (losses) recorded in net interest income
|
$ | (93 | ) | 550 | — | — | 98 | 555 | ||||||||||||||||
Gains (losses) recorded in noninterest income |
||||||||||||||||||||||||
Recognized on derivatives
|
$ | (443 | ) | 1,168 | 111 | — | 2,090 | 2,926 | ||||||||||||||||
Recognized on hedged item
|
462 | (1,110 | ) | (112 | ) | — | (2,133 | ) | (2,893 | ) | ||||||||||||||
Recognized on fair value hedges
(ineffective portion)
|
$ | 19 | 58 | (1 | ) | — | (43 | ) | 33 | (1) | ||||||||||||||
Quarter ended September 30, 2009 |
||||||||||||||||||||||||
Gains (losses) recorded in net interest income
|
$ | (84 | ) | 484 | (7 | ) | — | 94 | 487 | |||||||||||||||
Gains (losses) recorded in noninterest income |
||||||||||||||||||||||||
Recognized on derivatives
|
$ | (242 | ) | 1,292 | (1 | ) | — | 270 | 1,319 | |||||||||||||||
Recognized on hedged item
|
253 | (1,297 | ) | 1 | — | (266 | ) | (1,309 | ) | |||||||||||||||
Recognized on fair value hedges
(ineffective portion)
|
$ | 11 | (5 | ) | — | — | 4 | 10 | (1) | |||||||||||||||
Nine months ended September 30, 2010 |
||||||||||||||||||||||||
Gains (losses) recorded in net interest income
|
$ | (281 | ) | 1,608 | (2 | ) | — | 282 | 1,607 | |||||||||||||||
|
||||||||||||||||||||||||
Gains (losses) recorded in noninterest income |
||||||||||||||||||||||||
Recognized on derivatives
|
$ | (1,211 | ) | 3,444 | 300 | — | (815 | ) | 1,718 | |||||||||||||||
Recognized on hedged item
|
1,247 | (3,253 | ) | (301 | ) | — | 799 | (1,508 | ) | |||||||||||||||
Recognized on fair value hedges
(ineffective portion)
|
$ | 36 | 191 | (1 | ) | — | (16 | ) | 210 | (1) | ||||||||||||||
Nine months ended September 30, 2009 |
||||||||||||||||||||||||
Gains (losses) recorded in net interest income
|
$ | (196 | ) | 1,131 | (53 | ) | 28 | 248 | 1,158 | |||||||||||||||
Gains (losses) recorded in noninterest income |
||||||||||||||||||||||||
Recognized on derivatives
|
$ | 552 | (2,177 | ) | (1 | ) | — | 1,212 | (414 | ) | ||||||||||||||
Recognized on hedged item
|
(543 | ) | 2,086 | 1 | — | (1,217 | ) | 327 | ||||||||||||||||
Recognized on fair value hedges
(ineffective portion)
|
$ | 9 | (91 | ) | — | — | (5 | ) | (87 | )(1) | ||||||||||||||
(1) | Third quarter and nine months ended September 30, 2010, included $(1) million and nil, respectively, and third quarter and nine months ended September 30, 2009, included $(2) million and $(9) million, respectively, of gains (losses) on forward derivatives hedging foreign currency securities available for sale, short-term borrowings and long-term debt, representing the portion of derivatives gains (losses) excluded from the assessment of hedge effectiveness (time value). |
104
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Gains (after tax) recognized in OCI on derivatives (effective portion)
|
$ | 241 | 196 | 590 | 68 | |||||||||||
Gains (pre tax) reclassified from cumulative
OCI into net interest income (effective portion)
|
266 | 129 | 594 | 408 | ||||||||||||
Gains (losses) (pre tax) recognized in noninterest income
on derivatives (ineffective portion) (1)
|
(4 | ) | 27 | 2 | 38 | |||||||||||
(1) | None of the change in value of the derivatives was excluded from the assessment of hedge effectiveness. |
105
106
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Gains (losses) recognized on free-standing derivatives (economic hedges):
|
||||||||||||||||
Interest rate contracts (1)
|
||||||||||||||||
Recognized in noninterest income:
|
||||||||||||||||
Mortgage banking
|
$ | (267 | ) | 1,780 | 1,158 | 4,836 | ||||||||||
Other
|
(46 | ) | 2 | (82 | ) | 1 | ||||||||||
Foreign exchange contracts |
(82 | ) | 24 | 63 | 6 | |||||||||||
Equity contracts
|
— | — | — | 2 | ||||||||||||
Credit contracts
|
(24 | ) | (98 | ) | (149 | ) | (212 | ) | ||||||||
Subtotal
|
(419 | ) | 1,708 | 990 | 4,633 | |||||||||||
Gains (losses) recognized on customer accommodation, trading and
other free-standing derivatives:
|
||||||||||||||||
Interest rate contracts (2)
|
||||||||||||||||
Recognized in noninterest income:
|
||||||||||||||||
Mortgage banking
|
1,512 | 1,274 | 4,059 | 1,671 | ||||||||||||
Other
|
(322 | ) | 27 | (157 | ) | 839 | ||||||||||
Commodity contracts |
56 | 14 | 89 | (25 | ) | |||||||||||
Equity contracts
|
(141 | ) | (48 | ) | 308 | (229 | ) | |||||||||
Foreign exchange contracts
|
98 | 224 | 364 | 482 | ||||||||||||
Credit contracts
|
(20 | ) | (459 | ) | (508 | ) | (557 | ) | ||||||||
Other
|
18 | (10 | ) | (1 | ) | (186 | ) | |||||||||
Subtotal
|
1,201 | 1,022 | 4,154 | 1,995 | ||||||||||||
Net gains recognized related to derivatives not designated
as hedging instruments
|
$ | 782 | 2,730 | 5,144 | 6,628 | |||||||||||
(1) | Predominantly mortgage banking noninterest income including gains (losses) on the derivatives used as economic hedges of MSRs, interest rate lock commitments, loans held for sale and mortgages held for sale. | |
(2) | Predominantly mortgage banking noninterest income including gains (losses) on interest rate lock commitments. |
107
Notional amount | ||||||||||||||||||||||||||||
Protection | Protection | |||||||||||||||||||||||||||
sold— | purchased | Net | ||||||||||||||||||||||||||
non- | with | protection | Other | |||||||||||||||||||||||||
Fair value | Protection | investment | identical | sold | protection | Range of | ||||||||||||||||||||||
(in millions) | liability | sold (A) | grade | underlyings (B) | (A) - (B) | purchased | maturities | |||||||||||||||||||||
September 30, 2010 |
||||||||||||||||||||||||||||
Credit default swaps on:
|
||||||||||||||||||||||||||||
Corporate bonds
|
$ | 1,232 | 31,622 | 15,959 | 23,805 | 7,817 | 7,394 | 2010-2020 | ||||||||||||||||||||
Structured products
|
4,355 | 5,964 | 5,230 | 4,998 | 966 | 2,644 | 2016-2056 | |||||||||||||||||||||
Credit protection on:
|
||||||||||||||||||||||||||||
Default swap index
|
14 | 2,902 | 1,134 | 2,508 | 394 | 1,037 | 2010-2017 | |||||||||||||||||||||
Commercial mortgage-backed
securities index
|
926 | 2,571 | 674 | 1,972 | 599 | 350 | 2049-2052 | |||||||||||||||||||||
Asset-backed securities index
|
204 | 252 | 252 | 156 | 96 | 143 | 2037-2046 | |||||||||||||||||||||
Loan deliverable credit
default swaps
|
5 | 489 | 476 | 396 | 93 | 251 | 2010-2014 | |||||||||||||||||||||
Other
|
12 | 7,172 | 6,540 | 37 | 7,135 | 3,269 | 2010-2056 | |||||||||||||||||||||
Total credit derivatives
|
$ | 6,748 | 50,972 | 30,265 | 33,872 | 17,100 | 15,088 | |||||||||||||||||||||
December 31, 2009 |
||||||||||||||||||||||||||||
Credit default swaps on:
|
||||||||||||||||||||||||||||
Corporate bonds
|
$ | 2,419 | 55,511 | 23,815 | 44,159 | 11,352 | 12,634 | 2010-2018 | ||||||||||||||||||||
Structured products
|
4,498 | 6,627 | 5,084 | 4,999 | 1,628 | 3,018 | 2014-2056 | |||||||||||||||||||||
Credit protection on:
|
||||||||||||||||||||||||||||
Default swap index
|
23 | 6,611 | 2,765 | 4,202 | 2,409 | 2,510 | 2010-2017 | |||||||||||||||||||||
Commercial mortgage-backed
securities index
|
1,987 | 5,188 | 453 | 4,749 | 439 | 189 | 2049-2052 | |||||||||||||||||||||
Asset-backed securities index
|
637 | 830 | 660 | 696 | 134 | 189 | 2037-2046 | |||||||||||||||||||||
Loan deliverable credit
default swaps
|
12 | 510 | 494 | 423 | 87 | 287 | 2010-2014 | |||||||||||||||||||||
Other
|
1 | 1,416 | 809 | 32 | 1,384 | 100 | 2010-2020 | |||||||||||||||||||||
Total credit derivatives
|
$ | 9,577 | 76,693 | 34,080 | 59,260 | 17,433 | 18,927 | |||||||||||||||||||||
108
109
• | 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 model-based techniques that use significant assumptions 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. |
110
111
Independent brokers | Third party pricing services | |||||||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
September 30, 2010 |
||||||||||||||||||||||||
Trading assets (excluding derivatives)
|
$ | — | 1,581 | 5 | 19 | 1,308 | — | |||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
Securities of U.S. treasury and federal agencies
|
— | — | — | 980 | 763 | — | ||||||||||||||||||
Securities of U.S. states and political subdivisions
|
— | 15 | — | — | 14,377 | — | ||||||||||||||||||
Mortgage-backed securities
|
— | 3 | 32 | — | 106,056 | 75 | ||||||||||||||||||
Other debt securities
|
— | 151 | 3,762 | — | 14,852 | 730 | ||||||||||||||||||
Total debt securities
|
— | 169 | 3,794 | 980 | 136,048 | 805 | ||||||||||||||||||
Total marketable equity securities
|
230 | — | — | 419 | 773 | — | ||||||||||||||||||
Total securities available for sale
|
230 | 169 | 3,794 | 1,399 | 136,821 | 805 | ||||||||||||||||||
Derivatives (trading and other assets)
|
— | 11 | — | — | 1,015 | 9 | ||||||||||||||||||
Loans held for sale
|
— | — | — | — | 1 | — | ||||||||||||||||||
Derivatives (liabilities)
|
— | — | — | — | 1,120 | — | ||||||||||||||||||
Other liabilities
|
— | 10 | — | — | 312 | — | ||||||||||||||||||
December 31, 2009 |
||||||||||||||||||||||||
Trading assets (excluding derivatives)
|
$ | — | 4,208 | — | 30 | 1,712 | 81 | |||||||||||||||||
Securities available for sale
|
85 | 1,870 | 548 | 1,467 | 120,688 | 1,864 | ||||||||||||||||||
Loans held for sale
|
— | — | — | — | 2 | — | ||||||||||||||||||
Derivatives (trading and other assets)
|
— | 8 | 42 | — | 2,926 | 9 | ||||||||||||||||||
Derivatives (liabilities)
|
— | — | 70 | — | 2,949 | 4 | ||||||||||||||||||
Other liabilities
|
— | — | — | 10 | 3,916 | 26 | ||||||||||||||||||
112
(in millions) | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||
September 30, 2010
|
||||||||||||||||||||
Trading assets (excluding derivatives)
|
||||||||||||||||||||
Securities of U.S. Treasury and federal agencies
|
$ | 2,587 | 3,939 | — | — | 6,526 | ||||||||||||||
Securities of U.S. states and political subdivisions
|
— | 1,622 | 6 | — | 1,628 | |||||||||||||||
Collateralized debt obligations
|
— | — | 1,845 | — | 1,845 | |||||||||||||||
Corporate debt securities
|
1 | 10,092 | 181 | — | 10,274 | |||||||||||||||
Equity securities
|
1,597 | 738 | 29 | — | 2,364 | |||||||||||||||
Other trading securities
|
— | 7,220 | 819 | — | 8,039 | |||||||||||||||
Total trading securities
|
4,185 | 23,611 | 2,880 | — | 30,676 | |||||||||||||||
Other trading assets
|
736 | 128 | 134 | — | 998 | |||||||||||||||
Total trading assets (excluding derivatives)
|
4,921 | 23,739 | 3,014 | — | 31,674 | |||||||||||||||
Securities of U.S. Treasury and federal agencies
|
980 | 763 | — | — | 1,743 | |||||||||||||||
Securities of U.S. states and political subdivisions
|
— | 14,408 | 3,759 | — | 18,167 | |||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||
Federal agencies
|
— | 83,595 | — | — | 83,595 | |||||||||||||||
Residential
|
— | 20,563 | 223 | — | 20,786 | |||||||||||||||
Commercial
|
— | 12,775 | 219 | — | 12,994 | |||||||||||||||
Total mortgage-backed securities
|
— | 116,933 | 442 | — | 117,375 | |||||||||||||||
Corporate debt securities
|
— | 9,931 | 479 | — | 10,410 | |||||||||||||||
Collateralized debt obligations
|
— | — | 4,526 | — | 4,526 | |||||||||||||||
Asset-backed securities:
|
||||||||||||||||||||
Auto loans and leases
|
— | 358 | 8,254 | — | 8,612 | |||||||||||||||
Home equity loans
|
— | 796 | 235 | — | 1,031 | |||||||||||||||
Other asset-backed securities
|
— | 5,856 | 3,429 | — | 9,285 | |||||||||||||||
Total asset-backed securities
|
— | 7,010 | 11,918 | — | 18,928 | |||||||||||||||
Other debt securities
|
— | 357 | 93 | — | 450 | |||||||||||||||
Total debt securities
|
980 | 149,402 | 21,217 | — | 171,599 | |||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||
Perpetual preferred securities
(1)
|
708 | 694 | 2,534 | — | 3,936 | |||||||||||||||
Other marketable equity securities
|
1,188 | 133 | 19 | — | 1,340 | |||||||||||||||
Total marketable equity securities
|
1,896 | 827 | 2,553 | — | 5,276 | |||||||||||||||
Total securities available for sale
|
2,876 | 150,229 | 23,770 | — | 176,875 | |||||||||||||||
Mortgages held for sale
|
— | 39,522 | 3,269 | — | 42,791 | |||||||||||||||
Loans held for sale
|
— | 436 | — | — | 436 | |||||||||||||||
Loans
|
— | — | 353 | — | 353 | |||||||||||||||
Mortgage servicing rights (residential)
|
— | — | 12,486 | — | 12,486 | |||||||||||||||
Derivative assets:
|
||||||||||||||||||||
Interest rate contracts
|
354 | 90,187 | 1,182 | — | 91,723 | |||||||||||||||
Commodity contracts
|
— | 4,142 | — | — | 4,142 | |||||||||||||||
Equity contracts
|
444 | 1,957 | 720 | — | 3,121 | |||||||||||||||
Foreign exchange contracts
|
46 | 5,320 | 34 | — | 5,400 | |||||||||||||||
Credit contracts
|
— | 2,849 | 3,442 | — | 6,291 | |||||||||||||||
Other derivative contracts
|
12 | — | 1 | — | 13 | |||||||||||||||
Netting
|
— | — | — | (87,944 | ) (2) | (87,944 | ) | |||||||||||||
Total derivative assets
(3)
|
856 | 104,455 | 5,379 | (87,944 | ) | 22,746 | ||||||||||||||
Other assets
|
146 | 791 | 345 | — | 1,282 | |||||||||||||||
Total assets recorded at fair value
|
$ | 8,799 | 319,172 | 48,616 | (87,944 | ) | 288,643 | |||||||||||||
Derivative liabilities:
|
||||||||||||||||||||
Interest rate contracts
|
$ | (798 | ) | (83,403 | ) | (531 | ) | — | (84,732 | ) | ||||||||||
Commodity contracts
|
— | (4,137 | ) | (1 | ) | — | (4,138 | ) | ||||||||||||
Equity contracts
|
(187 | ) | (2,161 | ) | (845 | ) | — | (3,193 | ) | |||||||||||
Foreign exchange contracts
|
(44 | ) | (3,623 | ) | (37 | ) | — | (3,704 | ) | |||||||||||
Credit contracts
|
— | (2,832 | ) | (4,458 | ) | — | (7,290 | ) | ||||||||||||
Other derivative contracts
|
— | — | (103 | ) | — | (103 | ) | |||||||||||||
Netting
|
— | — | — | 95,368 | (2) | 95,368 | ||||||||||||||
Total derivative liabilities
(4)
|
(1,029 | ) | (96,156 | ) | (5,975 | ) | 95,368 | (7,792 | ) | |||||||||||
Short sale liabilities
|
||||||||||||||||||||
Securities of U.S. Treasury and federal agencies
|
(2,436 | ) | (1,126 | ) | — | — | (3,562 | ) | ||||||||||||
Corporate debt securities
|
— | (3,177 | ) | — | — | (3,177 | ) | |||||||||||||
Equity securities
|
(2,233 | ) | (223 | ) | — | — | (2,456 | ) | ||||||||||||
Other securities
|
— | (108 | ) | — | — | (108 | ) | |||||||||||||
Total short sale liabilities
|
(4,669 | ) | (4,634 | ) | — | — | (9,303 | ) | ||||||||||||
Other liabilities
|
— | (43 | ) | (1,770 | ) | — | (1,813 | ) | ||||||||||||
Total liabilities recorded at fair value
|
$ | (5,698 | ) | (100,833 | ) | (7,745 | ) | 95,368 | (18,908 | ) | ||||||||||
(1) | Perpetual preferred securities are primarily ARS. See Note 7 for additional information. | |
(2) | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |
(3) | Derivative assets include contracts qualifying for hedge accounting, economic hedges, and derivatives included in trading assets. | |
(4) | Derivative liabilities include contracts qualifying for hedge accounting, economic hedges, and derivatives included in trading liabilities. |
113
(in millions) | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||
December 31, 2009
|
||||||||||||||||||||
Trading assets (excluding derivatives) (1)
|
$ | 2,386 | 20,497 | 2,311 | — | 25,194 | ||||||||||||||
Derivatives (trading assets)
|
340 | 70,938 | 5,682 | (59,115 | )(2) | 17,845 | ||||||||||||||
Securities of U.S. Treasury and federal agencies
|
1,094 | 1,186 | — | — | 2,280 | |||||||||||||||
Securities of U.S. states and political subdivisions
|
4 | 12,708 | 818 | — | 13,530 | |||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||
Federal agencies
|
— | 82,818 | — | — | 82,818 | |||||||||||||||
Residential
|
— | 27,506 | 1,084 | — | 28,590 | |||||||||||||||
Commercial
|
— | 9,162 | 1,799 | — | 10,961 | |||||||||||||||
Total mortgage-backed securities
|
— | 119,486 | 2,883 | — | 122,369 | |||||||||||||||
Corporate debt securities
|
— | 8,968 | 367 | — | 9,335 | |||||||||||||||
Collateralized debt obligations
|
— | — | 3,725 | — | 3,725 | |||||||||||||||
Other
|
— | 3,292 | 12,587 | — | 15,879 | |||||||||||||||
Total debt securities
|
1,098 | 145,640 | 20,380 | — | 167,118 | |||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||
Perpetual preferred securities
|
736 | 834 | 2,305 | — | 3,875 | |||||||||||||||
Other marketable equity securities
|
1,279 | 350 | 88 | — | 1,717 | |||||||||||||||
Total marketable equity securities
|
2,015 | 1,184 | 2,393 | — | 5,592 | |||||||||||||||
Total securities available for sale
|
3,113 | 146,824 | 22,773 | — | 172,710 | |||||||||||||||
Mortgages held for sale
|
— | 33,439 | 3,523 | — | 36,962 | |||||||||||||||
Loans held for sale
|
— | 149 | — | — | 149 | |||||||||||||||
Mortgage servicing rights (residential)
|
— | — | 16,004 | — | 16,004 | |||||||||||||||
Other assets (3)
|
1,932 | 11,720 | 1,690 | (6,812 | )(2) | 8,530 | ||||||||||||||
Total assets recorded at fair value
|
$ | 7,771 | 283,567 | 51,983 | (65,927 | ) | 277,394 | |||||||||||||
Other liabilities (4)
|
$ | (6,527 | ) | (81,613 | ) | (7,942 | ) | 73,299 | (2) | (22,783 | ) | |||||||||
(1) | Includes trading securities of $24.0 billion. | |
(2) | Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | |
(3) | Derivative assets other than trading and principal investments are included in this category. | |
(4) | Derivative liabilities are included in this category. |
114
Net unrealized | ||||||||||||||||||||||||||||||||
Total net gains | Purchases | , | gains (losses) | |||||||||||||||||||||||||||||
(losses) included in | sales | , | included in net | |||||||||||||||||||||||||||||
Other | issuances | income related | ||||||||||||||||||||||||||||||
Balance | , | compre- | and | Transfers | Transfers | Balance | , | to assets and | ||||||||||||||||||||||||
beginning | Net | hensive | settlements | , | into | out of | end | liabilities held | ||||||||||||||||||||||||
(in millions) | of period | income | income | net | Level 3 | Level 3 | of period | at period end (1) | ||||||||||||||||||||||||
Quarter ended September 30, 2010
|
||||||||||||||||||||||||||||||||
Trading assets (excluding derivatives):
|
||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
$ | 12 | (4 | ) | — | (2 | ) | — | — | 6 | 1 | |||||||||||||||||||||
Collateralized debt obligations
|
1,767 | 21 | — | 57 | — | — | 1,845 | (12 | ) | |||||||||||||||||||||||
Corporate bonds
|
165 | 8 | — | 8 | — | — | 181 | 2 | ||||||||||||||||||||||||
Equity securities
|
52 | (1 | ) | — | (22 | ) | — | — | 29 | (1 | ) | |||||||||||||||||||||
Other trading securities
|
330 | 54 | — | 435 | — | — | 819 | 50 | ||||||||||||||||||||||||
Total trading securities
|
2,326 | 78 | — | 476 | — | — | 2,880 | 40 | ||||||||||||||||||||||||
Other trading assets
|
149 | (18 | ) | — | 3 | — | — | 134 | 2 | |||||||||||||||||||||||
Total trading assets (excluding derivatives)
|
2,475 | 60 | — | 479 | — | — | 3,014 | 42 | (2) | |||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
2,736 | 5 | 45 | 899 | 74 | — | 3,759 | — | ||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||
Residential
|
353 | 14 | (3 | ) | (30 | ) | 8 | (119 | ) | 223 | (1 | ) | ||||||||||||||||||||
Commercial
|
897 | (2 | ) | 21 | (13 | ) | 40 | (724 | ) | 219 | (1 | ) | ||||||||||||||||||||
Total mortgage-backed securities
|
1,250 | 12 | 18 | (43 | ) | 48 | (843 | ) | 442 | (2 | ) | |||||||||||||||||||||
Corporate debt securities
|
380 | 3 | 28 | (22 | ) | 93 | (3 | ) | 479 | — | ||||||||||||||||||||||
Collateralized debt obligations
|
4,031 | 64 | 41 | 390 | — | — | 4,526 | (1 | ) | |||||||||||||||||||||||
Asset-backed securities:
|
||||||||||||||||||||||||||||||||
Auto loans and leases
|
7,104 | 2 | (51 | ) | 1,199 | — | — | 8,254 | — | |||||||||||||||||||||||
Home equity loans
|
194 | — | 24 | 49 | — | (32 | ) | 235 | — | |||||||||||||||||||||||
Other asset-backed securities
|
3,341 | (5 | ) | (19 | ) | 22 | 115 | (25 | ) | 3,429 | (5 | ) | ||||||||||||||||||||
Total asset-backed securities
|
10,639 | (3 | ) | (46 | ) | 1,270 | 115 | (57 | ) | 11,918 | (5 | ) | ||||||||||||||||||||
Other debt securities
|
88 | (5 | ) | 10 | — | — | — | 93 | — | |||||||||||||||||||||||
Total debt securities
|
19,124 | 76 | 96 | 2,494 | 330 | (903 | ) | 21,217 | (8 | ) | ||||||||||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||||||||||
Perpetual preferred securities
|
2,629 | 20 | (7 | ) | (172 | ) | 77 | (13 | ) | 2,534 | — | |||||||||||||||||||||
Other marketable equity securities
|
16 | — | — | 1 | 4 | (2 | ) | 19 | — | |||||||||||||||||||||||
Total marketable equity securities
|
2,645 | 20 | (7 | ) | (171 | ) | 81 | (15 | ) | 2,553 | — | |||||||||||||||||||||
Total securities available for sale
|
21,769 | 96 | 89 | 2,323 | 411 | (918 | ) | 23,770 | (8 | ) | ||||||||||||||||||||||
Mortgages held for sale
|
3,260 | (2 | ) | — | 2 | 91 | (82 | ) | 3,269 | (3 | ) (3) | |||||||||||||||||||||
Loans
|
367 | 16 | — | (30 | ) | — | — | 353 | 16 | (3) | ||||||||||||||||||||||
Mortgage servicing rights (residential)
|
13,251 | (1,807 | ) | — | 1,042 | — | — | 12,486 | (1,132 | ) (3) | ||||||||||||||||||||||
Net derivative assets and liabilities:
|
||||||||||||||||||||||||||||||||
Interest rate contracts
|
643 | 1,610 | — | (1,761 | ) | 159 | — | 651 | 244 | |||||||||||||||||||||||
Equity contracts
|
(232 | ) | 40 | — | 7 | 34 | 25 | (126 | ) | (1 | ) | |||||||||||||||||||||
Foreign exchange contracts
|
(2 | ) | (7 | ) | — | 9 | — | (3 | ) | (3 | ) | (11 | ) | |||||||||||||||||||
Credit contracts
|
(993 | ) | 4 | — | (27 | ) | — | — | (1,016 | ) | — | |||||||||||||||||||||
Other derivative contracts
|
(103 | ) | 13 | — | (12 | ) | — | — | (102 | ) | (16 | ) | ||||||||||||||||||||
Total derivative contracts
|
(687 | ) | 1,660 | — | (1,784 | ) | 193 | 22 | (596 | ) | 216 | (4) | ||||||||||||||||||||
Other assets
|
360 | 3 | — | (18 | ) | — | — | 345 | (8 | ) (3) | ||||||||||||||||||||||
Short sale liabilities (corporate debt securities)
|
(4 | ) | (1 | ) | — | 5 | — | — | — | (1 | ) | |||||||||||||||||||||
Other liabilities (excluding derivatives)
|
(1,806 | ) | (357 | ) | — | 393 | — | — | (1,770 | ) | (354 | ) | ||||||||||||||||||||
(1) | 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. | |
(2) | Included in other noninterest income in the income statement. | |
(3) | Included in mortgage banking in the income statement. | |
(4) | Included in mortgage banking, trading activities and other noninterest income in the income statement. |
115
Net unrealized | ||||||||||||||||||||||||||||
Total net gains | Purchases | , | gains (losses) | |||||||||||||||||||||||||
(losses) included in | sales | , | Net | included in net | ||||||||||||||||||||||||
Other | issuances | transfers | income related | |||||||||||||||||||||||||
Balance | , | compre- | and | into and/or | Balance | , | to assets and | |||||||||||||||||||||
beginning | Net | hensive | settlements | , | out of | end | liabilities held | |||||||||||||||||||||
(in millions) | of period | income | income | net | Level 3 | of period | at period end (1) | |||||||||||||||||||||
Quarter ended September 30, 2009
|
||||||||||||||||||||||||||||
Trading assets (excluding derivatives)
|
$ | 2,475 | 149 | — | (138 | ) | 7 | 2,493 | 100 | (2) | ||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
905 | 2 | 32 | 1 | 22 | 962 | 3 | |||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||
Residential
|
5,913 | (25 | ) | 216 | (135 | ) | (3,563 | ) | 2,406 | (51 | ) | |||||||||||||||||
Commercial
|
2,615 | (1 | ) | 181 | (28 | ) | (907 | ) | 1,860 | (44 | ) | |||||||||||||||||
Total mortgage-backed securities
|
8,528 | (26 | ) | 397 | (163 | ) | (4,470 | ) | 4,266 | (95 | ) | |||||||||||||||||
Corporate debt securities
|
286 | — | (12 | ) | 18 | (47 | ) | 245 | — | |||||||||||||||||||
Collateralized debt obligations
|
2,748 | 17 | 369 | 129 | — | 3,263 | (16 | ) | ||||||||||||||||||||
Other
|
15,718 | 44 | 238 | (428 | ) | (2,402 | ) | 13,170 | (33 | ) | ||||||||||||||||||
Total debt securities
|
28,185 | 37 | 1,024 | (443 | ) | (6,897 | ) | 21,906 | (141 | ) | ||||||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||||||
Perpetual preferred securities
|
2,716 | 10 | 54 | (322 | ) | 31 | 2,489 | — | ||||||||||||||||||||
Other marketable equity securities
|
127 | — | (3 | ) | (32 | ) | (79 | ) | 13 | — | ||||||||||||||||||
Total marketable equity securities
|
2,843 | 10 | 51 | (354 | ) | (48 | ) | 2,502 | — | |||||||||||||||||||
Total securities available for sale
|
31,028 | 47 | 1,075 | (797 | ) | (6,945 | ) | 24,408 | (141 | ) | ||||||||||||||||||
Mortgages held for sale
|
4,099 | (64 | ) | — | (191 | ) | 30 | 3,874 | (67 | )(3) | ||||||||||||||||||
Mortgage servicing rights (residential)
|
15,690 | (2,707 | ) | — | 1,517 | — | 14,500 | (2,078 | )(3) | |||||||||||||||||||
Net derivative assets and liabilities
|
(206 | ) | 1,085 | (1 | ) | (952 | ) | (288 | ) | (362 | ) | 274 | (4) | |||||||||||||||
Other assets (excluding derivatives)
|
1,226 | (9 | ) | — | 7 | — | 1,224 | (13 | )(3) | |||||||||||||||||||
Other liabilities (excluding derivatives)
|
(852 | ) | (137 | ) | — | (40 | ) | (8 | ) | (1,037 | ) | (144 | ) | |||||||||||||||
(1) | 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. | |
(2) | Included in other noninterest income in the income statement. | |
(3) | Included in mortgage banking in the income statement. | |
(4) | Included in mortgage banking, trading activities and other noninterest income in the income statement. |
116
Net unrealized | ||||||||||||||||||||||||||||||||
Total net gains | Purchases | , | gains (losses) | |||||||||||||||||||||||||||||
(losses) included in | sales | , | included in net | |||||||||||||||||||||||||||||
Other | issuances | income related | ||||||||||||||||||||||||||||||
Balance | , | compre- | and | Transfers | Transfers | Balance | , | to assets and | ||||||||||||||||||||||||
beginning | Net | hensive | settlements | , | into | out of | end | liabilities held | ||||||||||||||||||||||||
(in millions) | of period | income | income | net | Level 3 | Level 3 | of period | at period end (1) | ||||||||||||||||||||||||
Nine months ended September 30, 2010
|
||||||||||||||||||||||||||||||||
Trading assets (excluding derivatives):
|
||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
$ | 5 | 3 | — | (11 | ) | 9 | — | 6 | 3 | ||||||||||||||||||||||
Collateralized debt obligations
|
1,133 | 403 | — | 309 | — | — | 1,845 | 7 | ||||||||||||||||||||||||
Corporate bonds
|
223 | 21 | — | 70 | 9 | (142 | ) | 181 | 24 | |||||||||||||||||||||||
Equity securities
|
36 | 1 | — | (10 | ) | 2 | — | 29 | (1 | ) | ||||||||||||||||||||||
Other trading securities
|
643 | 88 | — | 281 | 1 | (194 | ) | 819 | 63 | |||||||||||||||||||||||
Total trading securities
|
2,040 | 516 | — | 639 | 21 | (336 | ) | 2,880 | 96 | |||||||||||||||||||||||
Other trading assets
|
271 | (54 | ) | — | (2 | ) | — | (81 | ) | 134 | (13 | ) | ||||||||||||||||||||
Total trading assets (excluding derivatives)
|
2,311 | 462 | — | 637 | 21 | (417 | ) | 3,014 | 83 | (2) | ||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
818 | 9 | 139 | 2,697 | 102 | (6 | ) | 3,759 | 3 | |||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||
Residential
|
1,084 | 7 | (18 | ) | (44 | ) | 274 | (1,080 | ) | 223 | (7 | ) | ||||||||||||||||||||
Commercial
|
1,799 | (19 | ) | 394 | (20 | ) | 227 | (2,162 | ) | 219 | (5 | ) | ||||||||||||||||||||
Total mortgage-backed securities
|
2,883 | (12 | ) | 376 | (64 | ) | 501 | (3,242 | ) | 442 | (12 | ) | ||||||||||||||||||||
Corporate debt securities
|
367 | 7 | 70 | (72 | ) | 259 | (152 | ) | 479 | — | ||||||||||||||||||||||
Collateralized debt obligations
|
3,725 | 143 | 3 | 867 | — | (212 | ) | 4,526 | (11 | ) | ||||||||||||||||||||||
Asset-backed securities:
|
||||||||||||||||||||||||||||||||
Auto loans and leases
|
8,525 | 2 | (174 | ) | (278 | ) | 179 | — | 8,254 | (5 | ) | |||||||||||||||||||||
Home equity loans
|
1,677 | — | 36 | 47 | 113 | (1,638 | ) | 235 | — | |||||||||||||||||||||||
Other asset-backed securities
|
2,308 | 43 | (101 | ) | 1,425 | 794 | (1,040 | ) | 3,429 | (8 | ) | |||||||||||||||||||||
Total asset-backed securities
|
12,510 | 45 | (239 | ) | 1,194 | 1,086 | (2,678 | ) | 11,918 | (13 | ) | |||||||||||||||||||||
Other debt securities
|
77 | (5 | ) | 9 | 12 | — | — | 93 | — | |||||||||||||||||||||||
Total debt securities
|
20,380 | 187 | 358 | 4,634 | 1,948 | (6,290 | ) | 21,217 | (33 | ) | ||||||||||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||||||||||
Perpetual preferred securities
|
2,305 | 86 | (33 | ) | 125 | 77 | (26 | ) | 2,534 | — | ||||||||||||||||||||||
Other marketable equity securities
|
88 | — | — | (37 | ) | 4 | (36 | ) | 19 | — | ||||||||||||||||||||||
Total marketable equity securities
|
2,393 | 86 | (33 | ) | 88 | 81 | (62 | ) | 2,553 | — | ||||||||||||||||||||||
Total securities available for sale
|
22,773 | 273 | 325 | 4,722 | 2,029 | (6,352 | ) | 23,770 | (33 | ) | ||||||||||||||||||||||
Mortgages held for sale
|
3,523 | (17 | ) | — | (249 | ) | 294 | (282 | ) | 3,269 | (19 | ) (3) | ||||||||||||||||||||
Loans
|
— | 68 | — | (81 | ) | 366 | — | 353 | 68 | (3) | ||||||||||||||||||||||
Mortgage servicing rights (residential)
|
16,004 | (6,440 | ) | — | 3,040 | — | (118 | ) | 12,486 | (4,570 | ) (3) | |||||||||||||||||||||
Net derivative assets and liabilities:
|
||||||||||||||||||||||||||||||||
Interest rate contracts
|
(114 | ) | 4,283 | — | (3,677 | ) | 159 | — | 651 | 279 | ||||||||||||||||||||||
Equity contracts
|
(344 | ) | 33 | — | 149 | 36 | — | (126 | ) | 12 | ||||||||||||||||||||||
Foreign exchange contracts
|
(1 | ) | (10 | ) | — | 11 | — | (3 | ) | (3 | ) | — | ||||||||||||||||||||
Credit contracts
|
(330 | ) | (688 | ) | — | (4 | ) | 6 | — | (1,016 | ) | (606 | ) | |||||||||||||||||||
Other derivative contracts
|
(43 | ) | (52 | ) | — | (7 | ) | — | — | (102 | ) | — | ||||||||||||||||||||
Total derivative contracts
|
(832 | ) | 3,566 | — | (3,528 | ) | 201 | (3 | ) | (596 | ) | (315 | ) (4) | |||||||||||||||||||
Other assets
|
1,373 | 28 | — | (67 | ) | — | (989 | ) | 345 | (20 | ) (3) | |||||||||||||||||||||
Short sale liabilities (corporate debt securities)
|
(26 | ) | (2 | ) | — | (37 | ) | — | 65 | — | — | |||||||||||||||||||||
Other liabilities (excluding derivatives)
|
(1,085 | ) | (1,135 | ) | — | 809 | (359 | ) | — | (1,770 | ) | (1,133 | ) | |||||||||||||||||||
(1) | 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. | |
(2) | Included in other noninterest income in the income statement. | |
(3) | Included in mortgage banking in the income statement. | |
(4) | Included in mortgage banking, trading activities and other noninterest income in the income statement. |
117
Net unrealized | ||||||||||||||||||||||||||||
Total net gains | Purchases | , | gains (losses) | |||||||||||||||||||||||||
(losses) included in | sales | , | Net | included in net | ||||||||||||||||||||||||
Other | issuances | transfers | income related | |||||||||||||||||||||||||
Balance | , | compre- | and | into and/ | Balance | , | to assets and | |||||||||||||||||||||
beginning | Net | hensive | settlements | , | or out of | end | liabilities held | |||||||||||||||||||||
(in millions) | of period | income | income | net | Level 3 | of period | at period end (1) | |||||||||||||||||||||
Nine months ended September 30, 2009
|
||||||||||||||||||||||||||||
Trading assets (excluding derivatives)
|
$ | 3,495 | 191 | — | (1,536 | ) | 343 | 2,493 | 252 | (2) | ||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||||||
Securities of U.S. states and political subdivisions
|
903 | 20 | 45 | 47 | (53 | ) | 962 | (6 | ) | |||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||
Federal agencies
|
4 | — | — | — | (4 | ) | — | — | ||||||||||||||||||||
Residential
|
3,510 | (55 | ) | 1,100 | (723 | ) | (1,426 | ) | 2,406 | (202 | ) | |||||||||||||||||
Commercial
|
286 | (119 | ) | 928 | 21 | 744 | 1,860 | (55 | ) | |||||||||||||||||||
Total mortgage-backed securities
|
3,800 | (174 | ) | 2,028 | (702 | ) | (686 | ) | 4,266 | (257 | ) | |||||||||||||||||
Corporate debt securities
|
282 | 2 | 44 | (5 | ) | (78 | ) | 245 | — | |||||||||||||||||||
Collateralized debt obligations
|
2,083 | 72 | 558 | 233 | 317 | 3,263 | (71 | ) | ||||||||||||||||||||
Other
|
12,799 | 73 | 1,302 | 1,229 | (2,233 | ) | 13,170 | (87 | ) | |||||||||||||||||||
Total debt securities
|
19,867 | (7 | ) | 3,977 | 802 | (2,733 | ) | 21,906 | (421 | ) | ||||||||||||||||||
Marketable equity securities:
|
||||||||||||||||||||||||||||
Perpetual preferred securities
|
2,775 | 96 | 169 | (556 | ) | 5 | 2,489 | (1 | ) | |||||||||||||||||||
Other marketable equity securities
|
50 | — | (4 | ) | 30 | (63 | ) | 13 | — | |||||||||||||||||||
Total marketable equity securities
|
2,825 | 96 | 165 | (526 | ) | (58 | ) | 2,502 | (1 | ) | ||||||||||||||||||
Total securities available for sale
|
$ | 22,692 | 89 | 4,142 | 276 | (2,791 | ) | 24,408 | (422 | ) | ||||||||||||||||||
Mortgages held for sale
|
$ | 4,718 | (66 | ) | — | (662 | ) | (116 | ) | 3,874 | (77 | )(3) | ||||||||||||||||
Mortgage servicing rights (residential)
|
14,714 | (5,293 | ) | — | 5,079 | — | 14,500 | (2,586 | )(3) | |||||||||||||||||||
Net derivative assets and liabilities
|
37 | 1,079 | (1 | ) | (1,454 | ) | (23 | ) | (362 | ) | (252 | )(4) | ||||||||||||||||
Other assets (excluding derivatives)
|
1,231 | (42 | ) | — | 35 | — | 1,224 | (40 | )(3) | |||||||||||||||||||
Other liabilities (excluding derivatives)
|
(638 | ) | (315 | ) | — | (74 | ) | (10 | ) | (1,037 | ) | (318 | ) | |||||||||||||||
(1) | 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. | |
(2) | Included in other noninterest income in the income statement. | |
(3) | Included in mortgage banking in the income statement. | |
(4) | Included in mortgage banking, trading activities and other noninterest income in the income statement. |
118
• | Our adoption of new consolidation accounting guidance on January 1, 2010, impacted Level 3 balances for certain financial instruments. Reductions in Level 3 balances, which represent derecognition of existing investments in newly consolidated VIEs, are reflected as transfers out for the following categories: trading assets, $276 million; securities available for sale, $1.9 billion; and mortgage servicing rights, $118 million. Increases in Level 3 balances, which represent newly consolidated VIE assets, are reflected as transfers in for the following categories: securities available for sale, $829 million; loans, $366 million; and long-term debt, $359 million. | |
• | We transferred $4.5 billion of securities available for sale from Level 3 to Level 2 due to an increase in the volume of trading activity for certain mortgage-backed and other asset-backed securities, which resulted in increased occurrences of observable market prices. We also transferred $1.2 billion of securities available for sale from Level 2 to Level 3, primarily due to a decrease in liquidity for certain asset-backed securities. |
119
Carrying value at period end | ||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
September 30, 2010
|
||||||||||||||||
Mortgages held for sale
(1)
|
$ | — | 1,986 | 818 | 2,804 | |||||||||||
Loans held for sale
|
— | 485 | — | 485 | ||||||||||||
Loans
:
|
||||||||||||||||
Commercial and commercial real estate:
|
||||||||||||||||
Commercial
|
— | 490 | 58 | 548 | ||||||||||||
Real estate mortgage
|
— | 1,288 | 2 | 1,290 | ||||||||||||
Real estate construction
|
— | 825 | — | 825 | ||||||||||||
Total commercial and commercial real estate
|
— | 2,603 | 60 | 2,663 | ||||||||||||
Consumer:
|
||||||||||||||||
Real estate 1 - 4 family first mortgage
|
— | 4,775 | — | 4,775 | ||||||||||||
Real estate 1 - 4 family junior liens
|
— | 396 | — | 396 | ||||||||||||
Other
|
— | 106 | 20 | 126 | ||||||||||||
Total consumer
|
— | 5,277 | 20 | 5,297 | ||||||||||||
Foreign
|
— | 12 | — | 12 | ||||||||||||
Total loans
(2)
|
— | 7,892 | 80 | 7,972 | ||||||||||||
Other assets (
3
)
|
— | 547 | 51 | 598 | ||||||||||||
December 31, 2009
|
||||||||||||||||
Mortgages held for sale (1)
|
$ | — | 1,105 | 711 | 1,816 | |||||||||||
Loans held for sale
|
— | 444 | — | 444 | ||||||||||||
Loans (2)
|
— | 6,177 | 134 | 6,311 | ||||||||||||
Other assets (3)
|
— | 289 | 119 | 408 | ||||||||||||
(1) | Predominantly real estate 1-4 family first mortgage loans. | |
(2) | Represents carrying value of loans for which adjustments are based on the appraised value of the collateral. The carrying value of loans fully charged-off, which includes unsecured lines and loans, is zero. | |
(3) | Primarily represents the fair value of foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
120
(in millions) | ||||
Nine months ended September 30, 2010
|
||||
Mortgages held for sale
|
$ | 19 | ||
Loans held for sale
|
13 | |||
Loans:
|
||||
Commercial and commercial real estate:
|
||||
Commercial
|
(1,804 | ) | ||
Real estate mortgage
|
(566 | ) | ||
Real estate construction
|
(391 | ) | ||
Total commercial and commercial real estate
|
(2,761 | ) | ||
Consumer:
|
||||
Real estate 1 - 4 family first mortgage
|
(1,995 | ) | ||
Real estate 1 - 4 family junior liens
|
(3,217 | ) | ||
Other
|
(2,635 | ) | ||
Total consumer
|
(7,847 | ) | ||
Foreign
|
(91 | ) | ||
Total loans
(1)
|
(10,699 | ) | ||
Other assets
(2)
|
(177 | ) | ||
Total
|
$ | (10,844 | ) | |
Nine months ended September 30, 2009
|
||||
Mortgages held for sale
|
$ | (12 | ) | |
Loans held for sale
|
143 | |||
Loans (1)
|
(9,692 | ) | ||
Other assets (2)
|
(226 | ) | ||
Total
|
$ | (9,787 | ) | |
(1) | Represents write-downs of loans based on the appraised value of the collateral and write-downs of loans fully charged-off to zero. | |
(2) | Primarily represents the losses on foreclosed real estate and other collateral owned that were measured at fair value subsequent to their initial classification as foreclosed assets. |
121
Redemption | ||||||||||||||||
Fair | Unfunded | Redemption | notice | |||||||||||||
(in millions) | value | commitments | frequency | period | ||||||||||||
September 30, 2010
|
||||||||||||||||
Offshore funds
|
$ | 1,581 | — | Daily - Annually | 1 - 120 days | |||||||||||
Funds of funds
|
70 | — | Monthly - Annually | 10 - 120 days | ||||||||||||
Hedge funds
|
21 | — | Monthly - Annually | 30 - 120 days | ||||||||||||
Private equity funds
|
1,813 | 753 | N/A | N/A | ||||||||||||
Venture capital
funds
|
89 | 40 | N/A | N/A | ||||||||||||
Total
|
$ | 3,574 | 793 | |||||||||||||
December 31, 2009 |
||||||||||||||||
Offshore funds (1)
|
$ | 1,559 | — | Daily - Quarterly | 1 - 90 days | |||||||||||
Funds of funds
|
69 | — | Monthly - Annually | 10 - 120 days | ||||||||||||
Hedge funds
|
35 | — | Monthly - Annually | 30 - 180 days | ||||||||||||
Private equity funds
|
901 | 340 | N/A | N/A | ||||||||||||
Venture capital funds
|
93 | 47 | N/A | N/A | ||||||||||||
Total
|
$ | 2,657 | 387 | |||||||||||||
N/A — Not applicable | ||
(1) | Balance has been revised from previously reported book value. |
122
Sept. 30, 2010 | Dec. 31, 2009 | |||||||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||||||
carrying | carrying | |||||||||||||||||||||||
amount | amount | |||||||||||||||||||||||
less | less | |||||||||||||||||||||||
Fair value | Aggregate | aggregate | Fair value | Aggregate | aggregate | |||||||||||||||||||
carrying | unpaid | unpaid | carrying | unpaid | unpaid | |||||||||||||||||||
(in millions) | amount | principal | principal | amount | principal | principal | ||||||||||||||||||
Mortgages held for sale:
|
||||||||||||||||||||||||
Total loans
|
$ | 42,791 | 41,908 | 883 | (1) | 36,962 | 37,072 | (110 | )(1) | |||||||||||||||
Nonaccrual loans
|
320 | 672 | (352 | ) | 268 | 560 | (292 | ) | ||||||||||||||||
Loans 90 days or more
past due and still accruing
|
38 | 42 | (4 | ) | 49 | 63 | (14 | ) | ||||||||||||||||
Loans held for sale:
|
||||||||||||||||||||||||
Total loans
|
436 | 461 | (25 | ) | 149 | 159 | (10 | ) | ||||||||||||||||
Nonaccrual loans
|
5 | 6 | (1 | ) | 5 | 2 | 3 | |||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Total loans
|
353 | 380 | (27 | ) | — | — | — | |||||||||||||||||
Nonaccrual loans
|
14 | 16 | (2 | ) | — | — | — | |||||||||||||||||
Loans 90 days or more
past due and still accruing
|
3 | 3 | — | — | — | — | ||||||||||||||||||
Long-term debt
|
351 | 386 | (35 | ) | — | — | — | |||||||||||||||||
(1) | The difference between fair value carrying amount and aggregate unpaid principal includes changes in fair value recorded at and subsequent to funding, gains and losses on the related loan commitment prior to funding, and premiums on acquired loans. |
123
2010 | 2009 | |||||||||||||||
Mortgage banking | Mortgage banking | |||||||||||||||
noninterest income | noninterest income | |||||||||||||||
Net gains | Net gains | |||||||||||||||
on mortgage | Other | on mortgage | Other | |||||||||||||
loan origination/sales | noninterest | loan origination/sales | noninterest | |||||||||||||
(in millions) | activities | income | activities | income | ||||||||||||
Quarter ended September 30,
|
||||||||||||||||
Mortgages held for sale
|
$ | 1,986 | — | 1,541 | — | |||||||||||
Loans held for sale
|
— | 11 | — | 1 | ||||||||||||
Loans
|
16 | — | — | — | ||||||||||||
Long-term debt
|
(15 | ) | — | — | — | |||||||||||
Other interests held
|
— | 22 | — | 4 | ||||||||||||
Nine months ended September 30,
|
||||||||||||||||
Mortgages held for sale
|
$ | 5,217 | — | 3,834 | — | |||||||||||
Loans held for sale
|
— | 28 | — | 93 | ||||||||||||
Loans
|
68 | — | — | — | ||||||||||||
Long-term debt
|
(60 | ) | — | — | — | |||||||||||
Other interests held
|
— | (24 | ) | — | 83 | |||||||||||
Nine months | ||||||||||||||||
Quarter ended Sept. 30 | , | ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Mortgages held for sale
|
$ | (15 | ) | (82 | ) | (62 | ) | (200 | ) | |||||||
Loans held for sale
|
11 | 15 | 28 | 57 | ||||||||||||
Total
|
$ | (4 | ) | (67 | ) | (34 | ) | (143 | ) | |||||||
124
Sept. 30, 2010 | Dec. 31, 2009 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
(in millions) | amount | fair value | amount | fair value | ||||||||||||
Financial assets
|
||||||||||||||||
Mortgages held for sale (1)
|
$ | 3,210 | 3,220 | 2,132 | 2,132 | |||||||||||
Loans held for sale (2)
|
752 | 780 | 5,584 | 5,719 | ||||||||||||
Loans, net (3)
|
716,604 | 706,306 | 744,225 | 717,798 | ||||||||||||
Nonmarketable equity investments (cost method)
|
8,506 | 8,764 | 9,793 | 9,889 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
814,512 | 816,233 | 824,018 | 824,678 | ||||||||||||
Long-term debt (3)(4)
|
162,753 | 169,755 | 203,784 | 205,752 | ||||||||||||
(1) | Balance excludes mortgages held for sale for which the fair value option was elected, and therefore includes nonprime and other residential and commercial mortgages held for sale. | |
(2) | Balance excludes loans held for sale for which the fair value option was elected. | |
(3) | At September 30, 2010, loans and long-term debt exclude balances for which the fair value option was elected. Loans exclude lease financing with a carrying amount of $13.0 billion at September 30, 2010, and $14.2 billion at December 31, 2009. | |
(4) | The carrying amount and fair value exclude obligations under capital leases of $39 million at September 30, 2010, and $77 million at December 31, 2009. |
125
Shares | ||||||||||||||||
issued and | Carrying | |||||||||||||||
(in millions, except shares and liquidation preference per share) | outstanding | Par value | value | Discount | ||||||||||||
DEP Shares |
||||||||||||||||
Dividend Equalization Preferred Shares,
|
||||||||||||||||
$10 liquidation preference per share,
97,000 shares authorized
|
96,546 | $ | — | — | — | |||||||||||
Series J |
||||||||||||||||
8.00% Non-Cumulative Perpetual Class A
|
||||||||||||||||
Preferred Stock, Series J, $1,000 liquidation
preference per share, 2,300,000 shares authorized
|
2,150,375 | 2,150 | 1,995 | 155 | ||||||||||||
Series K |
||||||||||||||||
7.98% Fixed-to-Floating Non-Cumulative
|
||||||||||||||||
Perpetual Class A Preferred Stock, Series K,
$1,000 liquidation preference per share, 3,500,000
shares authorized
|
3,352,000 | 3,352 | 2,876 | 476 | ||||||||||||
Series L |
||||||||||||||||
7.50% Non-Cumulative Perpetual Convertible
|
||||||||||||||||
Class A Preferred Stock, Series L, $1,000
liquidation preference per share, 4,025,000
shares authorized
|
3,968,000 | 3,968 | 3,200 | 768 | ||||||||||||
Total (1)
|
9,566,921 | $ | 9,470 | 8,071 | 1,399 | |||||||||||
(1) | Series J, K and L preferred shares qualify as Tier 1 capital. |
• | Series A — Non-Cumulative Perpetual Preferred Stock, Series A, $100,000 liquidation preference per share, 25,001 shares authorized | |
• | Series B — Non-Cumulative Perpetual Preferred Stock, Series B, $100,000 liquidation preference per share, 17,501 shares authorized |
• | Series G — 7.25% Class A Preferred Stock, Series G, $15,000 liquidation preference per share, 50,000 shares authorized |
• | Series H — Floating Class A Preferred Stock, Series H, $20,000 liquidation preference per share, 50,000 shares authorized |
• | Series I — 5.80% Fixed to Floating Class A Preferred Stock, Series I, $100,000 liquidation preference per share, 25,010 shares authorized |
126
Shares issued and outstanding | Carrying value | Adjustable | ||||||||||||||||||||||
Sept. 30 | , | Dec. 31 | , | Sept. 30 | , | Dec. 31 | , | dividend rate | ||||||||||||||||
(in millions, except shares) | 2010 | 2009 | 2010 | 2009 | Minimum | Maximum | ||||||||||||||||||
ESOP Preferred Stock,
|
||||||||||||||||||||||||
$1,000 liquidation preference per share
|
||||||||||||||||||||||||
2010
|
374,618 | — | $ | 375 | — | 9.50 | % | 10.50 | ||||||||||||||||
2008
|
110,254 | 120,289 | 110 | 120 | 10.50 | 11.50 | ||||||||||||||||||
2007
|
94,494 | 97,624 | 94 | 98 | 10.75 | 11.75 | ||||||||||||||||||
2006
|
69,032 | 71,322 | 69 | 71 | 10.75 | 11.75 | ||||||||||||||||||
2005
|
49,992 | 51,687 | 50 | 52 | 9.75 | 10.75 | ||||||||||||||||||
2004
|
35,215 | 36,425 | 35 | 37 | 8.50 | 9.50 | ||||||||||||||||||
2003
|
20,741 | 21,450 | 21 | 21 | 8.50 | 9.50 | ||||||||||||||||||
2002
|
11,543 | 11,949 | 12 | 12 | 10.50 | 11.50 | ||||||||||||||||||
2001
|
3,172 | 3,273 | 3 | 3 | 10.50 | 11.50 | ||||||||||||||||||
Total ESOP Preferred Stock (1)
|
769,061 | 414,019 | $ | 769 | 414 | |||||||||||||||||||
Unearned ESOP shares (2)
|
$ | (826 | ) | (442 | ) | |||||||||||||||||||
(1) | At September 30, 2010, and December 31, 2009, additional paid-in capital included $57 million and $28 million, respectively, related to preferred stock. | |
(2) | 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. |
127
2010 | 2009 | |||||||||||||||||||||||
Pension benefits | Pension benefits | |||||||||||||||||||||||
Non- | Other | Non- | Other | |||||||||||||||||||||
(in millions) | Qualified | qualified | benefits | Qualified | qualified | benefits | ||||||||||||||||||
Quarter ended September 30,
|
||||||||||||||||||||||||
Service cost
|
$ | 1 | — | 4 | 2 | — | 4 | |||||||||||||||||
Interest cost
|
139 | 10 | 19 | 150 | 11 | 20 | ||||||||||||||||||
Expected return on plan assets
|
(180 | ) | — | (7 | ) | (160 | ) | — | (7 | ) | ||||||||||||||
Amortization of net actuarial loss
|
27 | — | — | 20 | — | — | ||||||||||||||||||
Amortization of prior service cost
|
— | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||
Curtailment gain (loss)
|
2 | — | (3 | ) | — | — | — | |||||||||||||||||
Net periodic benefit cost (income)
|
$ | (11 | ) | 10 | 12 | 12 | 11 | 16 | ||||||||||||||||
Nine months ended September 30,
|
||||||||||||||||||||||||
Service cost
|
$ | 4 | — | 10 | 209 | 8 | 10 | |||||||||||||||||
Interest cost
|
416 | 28 | 58 | 444 | 32 | 62 | ||||||||||||||||||
Expected return on plan assets
|
(538 | ) | — | (21 | ) | (483 | ) | — | (21 | ) | ||||||||||||||
Amortization of net actuarial loss
|
79 | 2 | — | 174 | 3 | 2 | ||||||||||||||||||
Amortization of prior service cost
|
— | — | (3 | ) | — | (3 | ) | (3 | ) | |||||||||||||||
Curtailment gain (loss)
|
2 | — | (3 | ) | (32 | ) | (35 | ) | — | |||||||||||||||
Net periodic benefit cost (income)
|
$ | (37 | ) | 30 | 41 | 312 | 5 | 50 | ||||||||||||||||
128
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions, except per share amounts) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Wells Fargo net income
|
$ | 3,339 | 3,235 | 8,948 | 9,452 | |||||||||||
Less: Preferred stock dividends, accretion and other (1)
|
189 | 598 | 548 | 1,856 | ||||||||||||
Wells Fargo net income applicable to common stock (numerator)
|
$ | 3,150 | 2,637 | 8,400 | 7,596 | |||||||||||
Earnings per common share
|
||||||||||||||||
Average common shares outstanding (denominator)
|
5,240.1 | 4,678.3 | 5,216.9 | 4,471.2 | ||||||||||||
Per share
|
$ | 0.60 | 0.56 | 1.61 | 1.70 | |||||||||||
Diluted earnings per common share
|
||||||||||||||||
Average common shares outstanding
|
5,240.1 | 4,678.3 | 5,216.9 | 4,471.2 | ||||||||||||
Add: Stock options
|
23.7 | 27.7 | 29.1 | 13.8 | ||||||||||||
Restricted share rights
|
9.4 | 0.4 | 6.9 | 0.3 | ||||||||||||
Diluted average common shares outstanding (denominator)
|
5,273.2 | 4,706.4 | 5,252.9 | 4,485.3 | ||||||||||||
Per share
|
$ | 0.60 | 0.56 | 1.60 | 1.69 | |||||||||||
(1) | For the quarter and nine months ended September 30, 2010, includes $184 million and $553 million, respectively, of preferred stock dividends. |
Weighted-average shares | ||||||||||||||||
Quarter ended Sept. 30 | , | Nine months ended Sept. 30 | , | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Options
|
211.8 | 220.6 | 212.8 | 288.3 | ||||||||||||
Warrants
|
39.9 | 110.3 | 75.1 | 110.3 | ||||||||||||
129
130
131
Community | Wholesale | Wealth, Brokerage | Consolidated | |||||||||||||||||||||||||||||||||||||
(income/expense in millions, average | Banking | Banking | and Retirement | Other (3) | Company | |||||||||||||||||||||||||||||||||||
balances in billions) | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||||||||
Quarter ended September 30,
|
||||||||||||||||||||||||||||||||||||||||
Net interest income (1)
|
$ | 7,864 | 8,841 | 2,881 | 2,535 | 683 | 580 | (330 | ) | (272 | ) | 11,098 | 11,684 | |||||||||||||||||||||||||||
Provision for credit losses
|
3,165 | 4,635 | 270 | 1,368 | 77 | 233 | (67 | ) | (125 | ) | 3,445 | 6,111 | ||||||||||||||||||||||||||||
Noninterest income
|
5,723 | 6,709 | 2,367 | 2,399 | 2,229 | 2,188 | (543 | ) | (514 | ) | 9,776 | 10,782 | ||||||||||||||||||||||||||||
Noninterest expense
|
7,356 | 7,034 | 2,696 | 2,647 | 2,420 | 2,333 | (219 | ) | (330 | ) | 12,253 | 11,684 | ||||||||||||||||||||||||||||
Income (loss) before income
tax expense (benefit)
|
3,066 | 3,881 | 2,282 | 919 | 415 | 202 | (587 | ) | (331 | ) | 5,176 | 4,671 | ||||||||||||||||||||||||||||
Income tax expense (benefit)
|
991 | 1,089 | 826 | 322 | 157 | 69 | (223 | ) | (125 | ) | 1,751 | 1,355 | ||||||||||||||||||||||||||||
Net income (loss) before
noncontrolling interests
|
2,075 | 2,792 | 1,456 | 597 | 258 | 133 | (364 | ) | (206 | ) | 3,425 | 3,316 | ||||||||||||||||||||||||||||
Less: Net income from
noncontrolling interests
|
73 | 56 | 11 | 3 | 2 | 22 | — | — | 86 | 81 | ||||||||||||||||||||||||||||||
Net income (loss) (2)
|
$ | 2,002 | 2,736 | 1,445 | 594 | 256 | 111 | (364 | ) | (206 | ) | 3,339 | 3,235 | |||||||||||||||||||||||||||
Average loans
|
$ | 527.0 | 553.2 | 222.5 | 247.0 | 42.6 | 45.4 | (32.6 | ) | (35.4 | ) | 759.5 | 810.2 | |||||||||||||||||||||||||||
Average assets
|
778.1 | 804.9 | 363.7 | 368.4 | 138.2 | 129.8 | (59.6 | ) | (57.0 | ) | 1,220.4 | 1,246.1 | ||||||||||||||||||||||||||||
Average core deposits
|
535.7 | 550.2 | 172.2 | 146.8 | 120.7 | 116.3 | (56.6 | ) | (54.0 | ) | 772.0 | 759.3 | ||||||||||||||||||||||||||||
Nine months ended September 30,
|
||||||||||||||||||||||||||||||||||||||||
Net interest income (1)
|
$ | 24,284 | 26,461 | 8,359 | 7,338 | 2,031 | 1,858 | (980 | ) | (833 | ) | 33,694 | 34,824 | |||||||||||||||||||||||||||
Provision for credit losses
|
11,052 | 12,958 | 1,695 | 2,649 | 221 | 367 | (204 | ) | (219 | ) | 12,764 | 15,755 | ||||||||||||||||||||||||||||
Noninterest income
|
17,092 | 18,721 | 7,867 | 7,724 | 6,658 | 6,253 | (1,595 | ) | (1,532 | ) | 30,022 | 31,166 | ||||||||||||||||||||||||||||
Noninterest expense
|
22,297 | 22,366 | 8,196 | 7,982 | 7,160 | 6,868 | (537 | ) | (1,017 | ) | 37,116 | 36,199 | ||||||||||||||||||||||||||||
Income (loss) before income
tax expense (benefit)
|
8,027 | 9,858 | 6,335 | 4,431 | 1,308 | 876 | (1,834 | ) | (1,129 | ) | 13,836 | 14,036 | ||||||||||||||||||||||||||||
Income tax expense (benefit)
|
2,601 | 2,895 | 2,267 | 1,582 | 495 | 334 | (697 | ) | (429 | ) | 4,666 | 4,382 | ||||||||||||||||||||||||||||
Net income (loss) before
noncontrolling interests
|
5,426 | 6,963 | 4,068 | 2,849 | 813 | 542 | (1,137 | ) | (700 | ) | 9,170 | 9,654 | ||||||||||||||||||||||||||||
Less: Net income (loss) from
noncontrolling interests
|
203 | 190 | 14 | 15 | 5 | (3 | ) | — | — | 222 | 202 | |||||||||||||||||||||||||||||
Net income (loss) (2)
|
$ | 5,223 | 6,773 | 4,054 | 2,834 | 808 | 545 | (1,137 | ) | (700 | ) | 8,948 | 9,452 | |||||||||||||||||||||||||||
Average loans
|
$ | 540.3 | 562.2 | 226.0 | 261.1 | 43.0 | 46.0 | (33.0 | ) | (36.2 | ) | 776.3 | 833.1 | |||||||||||||||||||||||||||
Average assets
|
780.4 | 813.2 | 362.5 | 384.7 | 139.0 | 124.7 | (58.4 | ) | (52.5 | ) | 1,223.5 | 1,270.1 | ||||||||||||||||||||||||||||
Average core deposits
|
533.7 | 556.9 | 164.9 | 141.3 | 121.1 | 110.9 | (55.4 | ) | (49.4 | ) | 764.3 | 759.7 | ||||||||||||||||||||||||||||
(1) | 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 and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment. | |
(2) | Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the consolidated company. | |
(3) | Includes Wachovia integration expenses and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing wealth management customers serviced and products sold in the stores. |
132
Quarter ended September 30, 2010 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Dividends from subsidiaries:
|
||||||||||||||||||||
Bank
|
$ | 3,926 | — | — | (3,926 | ) | — | |||||||||||||
Nonbank
|
— | — | — | — | — | |||||||||||||||
Interest income from loans
|
— | 657 | 9,267 | (145 | ) | 9,779 | ||||||||||||||
Interest income from subsidiaries
|
386 | — | 5 | (391 | ) | — | ||||||||||||||
Other interest income
|
65 | 28 | 3,258 | — | 3,351 | |||||||||||||||
Total interest income
|
4,377 | 685 | 12,530 | (4,462 | ) | 13,130 | ||||||||||||||
Deposits
|
— | — | 721 | — | 721 | |||||||||||||||
Short-term borrowings
|
125 | 13 | 214 | (325 | ) | 27 | ||||||||||||||
Long-term debt
|
746 | 220 | 471 | (211 | ) | 1,226 | ||||||||||||||
Other interest expense
|
— | — | 58 | — | 58 | |||||||||||||||
Total interest expense
|
871 | 233 | 1,464 | (536 | ) | 2,032 | ||||||||||||||
Net interest income
|
3,506 | 452 | 11,066 | (3,926 | ) | 11,098 | ||||||||||||||
Provision for credit losses
|
— | 216 | 3,229 | — | 3,445 | |||||||||||||||
Net interest income after provision for credit losses
|
3,506 | 236 | 7,837 | (3,926 | ) | 7,653 | ||||||||||||||
Noninterest income
|
||||||||||||||||||||
Fee income — nonaffiliates
|
— | 29 | 5,606 | — | 5,635 | |||||||||||||||
Other
|
(34 | ) | 34 | 4,318 | (177 | ) | 4,141 | |||||||||||||
Total noninterest income
|
(34 | ) | 63 | 9,924 | (177 | ) | 9,776 | |||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and benefits
|
(14 | ) | 25 | 6,821 | — | 6,832 | ||||||||||||||
Other
|
222 | 136 | 5,240 | (177 | ) | 5,421 | ||||||||||||||
Total noninterest expense
|
208 | 161 | 12,061 | (177 | ) | 12,253 | ||||||||||||||
Income (loss) before income tax expense (benefit) and equity in
undistributed income of subsidiaries
|
3,264 | 138 | 5,700 | (3,926 | ) | 5,176 | ||||||||||||||
Income tax expense (benefit)
|
(235 | ) | 48 | 1,938 | — | 1,751 | ||||||||||||||
Equity in undistributed income of subsidiaries
|
(160 | ) | — | — | 160 | — | ||||||||||||||
Net income (loss) before noncontrolling interests
|
3,339 | 90 | 3,762 | (3,766 | ) | 3,425 | ||||||||||||||
Less: Net income from noncontrolling interests
|
— | — | 86 | — | 86 | |||||||||||||||
Parent, WFFI, Other and Wells Fargo net income (loss)
|
$ | 3,339 | 90 | 3,676 | (3,766 | ) | 3,339 | |||||||||||||
133
Quarter ended September 30, 2009 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Dividends from subsidiaries:
|
||||||||||||||||||||
Bank
|
$ | 2,411 | — | — | (2,411 | ) | — | |||||||||||||
Nonbank
|
200 | — | — | (200 | ) | — | ||||||||||||||
Interest income from loans
|
— | 827 | 9,346 | (3 | ) | 10,170 | ||||||||||||||
Interest income from subsidiaries
|
480 | — | — | (480 | ) | — | ||||||||||||||
Other interest income
|
104 | 27 | 3,662 | 5 | 3,798 | |||||||||||||||
Total interest income
|
3,195 | 854 | 13,008 | (3,089 | ) | 13,968 | ||||||||||||||
Deposits
|
— | — | 917 | (12 | ) | 905 | ||||||||||||||
Short-term borrowings
|
32 | 11 | 156 | (167 | ) | 32 | ||||||||||||||
Long-term debt
|
761 | 304 | 592 | (356 | ) | 1,301 | ||||||||||||||
Other interest expense
|
— | — | 46 | — | 46 | |||||||||||||||
Total interest expense
|
793 | 315 | 1,711 | (535 | ) | 2,284 | ||||||||||||||
Net interest income
|
2,402 | 539 | 11,297 | (2,554 | ) | 11,684 | ||||||||||||||
Provision for credit losses
|
— | 463 | 5,648 | — | 6,111 | |||||||||||||||
Net interest income after provision for credit losses
|
2,402 | 76 | 5,649 | (2,554 | ) | 5,573 | ||||||||||||||
Noninterest income
|
||||||||||||||||||||
Fee income — nonaffiliates
|
— | 32 | 5,844 | — | 5,876 | |||||||||||||||
Other
|
339 | 57 | 5,186 | (676 | ) | 4,906 | ||||||||||||||
Total noninterest income
|
339 | 89 | 11,030 | (676 | ) | 10,782 | ||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and benefits
|
29 | 42 | 6,442 | — | 6,513 | |||||||||||||||
Other
|
110 | 179 | 5,589 | (707 | ) | 5,171 | ||||||||||||||
Total noninterest expense
|
139 | 221 | 12,031 | (707 | ) | 11,684 | ||||||||||||||
Income (loss) before income tax expense (benefit) and equity in
undistributed income of subsidiaries
|
2,602 | (56 | ) | 4,648 | (2,523 | ) | 4,671 | |||||||||||||
Income tax expense (benefit)
|
(175 | ) | (18 | ) | 1,548 | — | 1,355 | |||||||||||||
Equity in undistributed income of subsidiaries
|
458 | — | — | (458 | ) | — | ||||||||||||||
Net income (loss) before noncontrolling interests
|
3,235 | (38 | ) | 3,100 | (2,981 | ) | 3,316 | |||||||||||||
Less: Net income from noncontrolling interests
|
— | 1 | 80 | — | 81 | |||||||||||||||
Parent, WFFI, Other and Wells Fargo net income (loss)
|
$ | 3,235 | (39 | ) | 3,020 | (2,981 | ) | 3,235 | ||||||||||||
134
Nine months ended September 30, 2010 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Dividends from subsidiaries:
|
||||||||||||||||||||
Bank
|
$ | 9,901 | — | — | (9,901 | ) | — | |||||||||||||
Nonbank
|
21 | — | — | (21 | ) | — | ||||||||||||||
Interest income from loans
|
— | 2,076 | 28,239 | (221 | ) | 30,094 | ||||||||||||||
Interest income from subsidiaries
|
1,036 | — | 14 | (1,050 | ) | — | ||||||||||||||
Other interest income
|
229 | 88 | 9,416 | — | 9,733 | |||||||||||||||
Total interest income
|
11,187 | 2,164 | 37,669 | (11,193 | ) | 39,827 | ||||||||||||||
Deposits
|
— | — | 2,170 | — | 2,170 | |||||||||||||||
Short-term borrowings
|
169 | 33 | 401 | (537 | ) | 66 | ||||||||||||||
Long-term debt
|
2,193 | 767 | 1,509 | (734 | ) | 3,735 | ||||||||||||||
Other interest expense
|
1 | — | 161 | — | 162 | |||||||||||||||
Total interest expense
|
2,363 | 800 | 4,241 | (1,271 | ) | 6,133 | ||||||||||||||
Net interest income
|
8,824 | 1,364 | 33,428 | (9,922 | ) | 33,694 | ||||||||||||||
Provision for credit losses
|
— | 735 | 12,029 | — | 12,764 | |||||||||||||||
Net interest income after provision for credit losses
|
8,824 | 629 | 21,399 | (9,922 | ) | 20,930 | ||||||||||||||
Noninterest income
|
||||||||||||||||||||
Fee income — nonaffiliates
|
— | 83 | 17,412 | — | 17,495 | |||||||||||||||
Other
|
348 | 110 | 12,585 | (516 | ) | 12,527 | ||||||||||||||
Total noninterest income
|
348 | 193 | 29,997 | (516 | ) | 30,022 | ||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and benefits
|
(64 | ) | 121 | 20,255 | — | 20,312 | ||||||||||||||
Other
|
687 | 493 | 16,140 | (516 | ) | 16,804 | ||||||||||||||
Total noninterest expense
|
623 | 614 | 36,395 | (516 | ) | 37,116 | ||||||||||||||
Income (loss) before income tax expense (benefit) and equity in
undistributed income of subsidiaries
|
8,549 | 208 | 15,001 | (9,922 | ) | 13,836 | ||||||||||||||
Income tax expense (benefit)
|
(443 | ) | 73 | 5,036 | — | 4,666 | ||||||||||||||
Equity in undistributed income of subsidiaries
|
(44 | ) | — | — | 44 | — | ||||||||||||||
Net income (loss) before noncontrolling interests
|
8,948 | 135 | 9,965 | (9,878 | ) | 9,170 | ||||||||||||||
Less: Net income from noncontrolling interests
|
— | — | 222 | — | 222 | |||||||||||||||
Parent, WFFI, Other and Wells Fargo net income (loss)
|
$ | 8,948 | 135 | 9,743 | (9,878 | ) | 8,948 | |||||||||||||
135
Nine months ended September 30, 2009 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Dividends from subsidiaries:
|
||||||||||||||||||||
Bank
|
$ | 3,128 | — | — | (3,128 | ) | — | |||||||||||||
Nonbank
|
409 | — | — | (409 | ) | — | ||||||||||||||
Interest income from loans
|
— | 2,679 | 28,800 | (12 | ) | 31,467 | ||||||||||||||
Interest income from subsidiaries
|
1,711 | — | — | (1,711 | ) | — | ||||||||||||||
Other interest income
|
331 | 80 | 10,704 | — | 11,115 | |||||||||||||||
Total interest income
|
5,579 | 2,759 | 39,504 | (5,260 | ) | 42,582 | ||||||||||||||
Deposits
|
— | — | 2,894 | (33 | ) | 2,861 | ||||||||||||||
Short-term borrowings
|
146 | 28 | 730 | (694 | ) | 210 | ||||||||||||||
Long-term debt
|
2,650 | 1,010 | 2,074 | (1,169 | ) | 4,565 | ||||||||||||||
Other interest
expense
|
— | — | 122 | — | 122 | |||||||||||||||
Total interest expense
|
2,796 | 1,038 | 5,820 | (1,896 | ) | 7,758 | ||||||||||||||
Net interest income
|
2,783 | 1,721 | 33,684 | (3,364 | ) | 34,824 | ||||||||||||||
Provision for credit losses
|
— | 1,486 | 14,269 | — | 15,755 | |||||||||||||||
Net interest income after provision for credit losses
|
2,783 | 235 | 19,415 | (3,364 | ) | 19,069 | ||||||||||||||
Noninterest income
|
||||||||||||||||||||
Fee income — nonaffiliates
|
— | 115 | 16,871 | — | 16,986 | |||||||||||||||
Other
|
653 | 128 | 15,211 | (1,812 | ) | 14,180 | ||||||||||||||
Total noninterest income
|
653 | 243 | 32,082 | (1,812 | ) | 31,166 | ||||||||||||||
Noninterest expense
|
||||||||||||||||||||
Salaries and benefits
|
311 | 92 | 19,329 | — | 19,732 | |||||||||||||||
Other
|
373 | 550 | 17,385 | (1,841 | ) | 16,467 | ||||||||||||||
Total noninterest expense
|
684 | 642 | 36,714 | (1,841 | ) | 36,199 | ||||||||||||||
Income (loss) before income tax expense (benefit) and equity in
undistributed income of subsidiaries
|
2,752 | (164 | ) | 14,783 | (3,335 | ) | 14,036 | |||||||||||||
Income tax expense (benefit)
|
(409 | ) | (53 | ) | 4,844 | — | 4,382 | |||||||||||||
Equity in undistributed income of subsidiaries
|
6,291 | — | — | (6,291 | ) | — | ||||||||||||||
Net income (loss) before noncontrolling interests
|
9,452 | (111 | ) | 9,939 | (9,626 | ) | 9,654 | |||||||||||||
Less: Net income from noncontrolling interests
|
— | 1 | 201 | — | 202 | |||||||||||||||
Parent, WFFI, Other and Wells Fargo net income (loss)
|
$ | 9,452 | (112 | ) | 9,738 | (9,626 | ) | 9,452 | ||||||||||||
136
September 30, 2010 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents due from:
|
||||||||||||||||||||
Subsidiary banks
|
$ | 28,021 | 176 | — | (28,197 | ) | — | |||||||||||||
Nonaffiliates
|
9 | 161 | 72,380 | — | 72,550 | |||||||||||||||
Securities available for sale
|
4,483 | 2,843 | 169,549 | — | 176,875 | |||||||||||||||
Mortgages and loans held for sale
|
— | — | 47,189 | — | 47,189 | |||||||||||||||
Loans |
7 | 31,276 | 734,248 | (11,867 | ) | 753,664 | ||||||||||||||
Loans to subsidiaries:
|
||||||||||||||||||||
Bank
|
3,885 | — | — | (3,885 | ) | — | ||||||||||||||
Nonbank
|
52,704 | — | — | (52,704 | ) | — | ||||||||||||||
Allowance for loan losses
|
— | (1,676 | ) | (22,263 | ) | — | (23,939 | ) | ||||||||||||
Net loans
|
56,596 | 29,600 | 711,985 | (68,456 | ) | 729,725 | ||||||||||||||
Investments in subsidiaries:
|
||||||||||||||||||||
Bank
|
133,751 | — | — | (133,751 | ) | — | ||||||||||||||
Nonbank
|
14,461 | — | — | (14,461 | ) | — | ||||||||||||||
Other assets
|
8,794 | 1,321 | 186,133 | (1,803 | ) | 194,445 | ||||||||||||||
Total assets
|
$ | 246,115 | 34,101 | 1,187,236 | (246,668 | ) | 1,220,784 | |||||||||||||
Liabilities and equity
|
||||||||||||||||||||
Deposits
|
$ | — | — | 842,709 | (28,197 | ) | 814,512 | |||||||||||||
Short-term borrowings
|
1,053 | 13,252 | 77,714 | (41,304 | ) | 50,715 | ||||||||||||||
Accrued expenses and other liabilities
|
7,177 | 1,617 | 60,258 | (1,803 | ) | 67,249 | ||||||||||||||
Long-term debt
|
102,936 | 17,520 | 58,548 | (15,861 | ) | 163,143 | ||||||||||||||
Indebtedness to subsidiaries
|
11,291 | — | — | (11,291 | ) | — | ||||||||||||||
Total liabilities
|
122,457 | 32,389 | 1,039,229 | (98,456 | ) | 1,095,619 | ||||||||||||||
Parent, WFFI, other and
|
||||||||||||||||||||
Wells Fargo stockholders’ equity
|
123,658 | 1,701 | 146,511 | (148,212 | ) | 123,658 | ||||||||||||||
Noncontrolling interests
|
— | 11 | 1,496 | — | 1,507 | |||||||||||||||
Total equity
|
123,658 | 1,712 | 148,007 | (148,212 | ) | 125,165 | ||||||||||||||
Total liabilities and equity
|
$ | 246,115 | 34,101 | 1,187,236 | (246,668 | ) | 1,220,784 | |||||||||||||
137
December 31, 2009 | ||||||||||||||||||||
Other | ||||||||||||||||||||
consolidating | Consolidated | |||||||||||||||||||
(in millions) | Parent | WFFI | subsidiaries | Eliminations | Company | |||||||||||||||
Assets
|
||||||||||||||||||||
Cash and cash equivalents due from:
|
||||||||||||||||||||
Subsidiary banks
|
$ | 27,303 | 205 | — | (27,508 | ) | — | |||||||||||||
Nonaffiliates
|
11 | 249 | 67,705 | — | 67,965 | |||||||||||||||
Securities available for sale
|
4,666 | 2,665 | 165,379 | — | 172,710 | |||||||||||||||
Mortgages and loans held for sale
|
— | — | 44,827 | — | 44,827 | |||||||||||||||
Loans |
7 | 35,199 | 750,045 | (2,481 | ) | 782,770 | ||||||||||||||
Loans to subsidiaries:
|
||||||||||||||||||||
Bank
|
6,760 | — | — | (6,760 | ) | — | ||||||||||||||
Nonbank
|
56,316 | — | — | (56,316 | ) | — | ||||||||||||||
Allowance for loan losses
|
— | (1,877 | ) | (22,639 | ) | — | (24,516 | ) | ||||||||||||
Net loans
|
63,083 | 33,322 | 727,406 | (65,557 | ) | 758,254 | ||||||||||||||
Investments in subsidiaries:
|
||||||||||||||||||||
Bank
|
134,063 | — | — | (134,063 | ) | — | ||||||||||||||
Nonbank
|
12,816 | — | — | (12,816 | ) | — | ||||||||||||||
Other assets
|
10,758 | 1,500 | 189,049 | (1,417 | ) | 199,890 | ||||||||||||||
Total assets
|
$ | 252,700 | 37,941 | 1,194,366 | (241,361 | ) | 1,243,646 | |||||||||||||
Liabilities and equity
|
||||||||||||||||||||
Deposits
|
$ | — | — | 851,526 | (27,508 | ) | 824,018 | |||||||||||||
Short-term borrowings
|
1,546 | 10,599 | 59,813 | (32,992 | ) | 38,966 | ||||||||||||||
Accrued expenses and other liabilities
|
7,878 | 1,439 | 54,542 | (1,417 | ) | 62,442 | ||||||||||||||
Long-term debt
|
119,353 | 24,437 | 80,499 | (20,428 | ) | 203,861 | ||||||||||||||
Indebtedness to subsidiaries
|
12,137 | — | — | (12,137 | ) | — | ||||||||||||||
Total liabilities
|
140,914 | 36,475 | 1,046,380 | (94,482 | ) | 1,129,287 | ||||||||||||||
Parent, WFFI, other and
|
||||||||||||||||||||
Wells Fargo stockholders’ equity
|
111,786 | 1,456 | 145,423 | (146,879 | ) | 111,786 | ||||||||||||||
Noncontrolling interests
|
— | 10 | 2,563 | — | 2,573 | |||||||||||||||
Total equity
|
111,786 | 1,466 | 147,986 | (146,879 | ) | 114,359 | ||||||||||||||
Total liabilities and equity
|
$ | 252,700 | 37,941 | 1,194,366 | (241,361 | ) | 1,243,646 | |||||||||||||
138
Nine months ended September 30, 2010 | ||||||||||||||||
Other | ||||||||||||||||
consolidating | ||||||||||||||||
subsidiaries/ | Consolidated | |||||||||||||||
(in millions) | Parent | WFFI | eliminations | Company | ||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 12,841 | 1,245 | 8,714 | 22,800 | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Sales proceeds
|
385 | 681 | 4,059 | 5,125 | ||||||||||||
Prepayments and maturities
|
— | 166 | 33,183 | 33,349 | ||||||||||||
Purchases
|
(119 | ) | (889 | ) | (36,153 | ) | (37,161 | ) | ||||||||
Loans:
|
||||||||||||||||
Decrease (increase) in banking subsidiaries’ loan originations, net of collections
|
— | (48 | ) | 27,407 | 27,359 | |||||||||||
Proceeds from sales (including participations) of loans originated for investment by banking subsidiaries
|
— | — | 5,011 | 5,011 | ||||||||||||
Purchases (including participations) of loans by banking subsidiaries
|
— | — | (1,673 | ) | (1,673 | ) | ||||||||||
Principal collected on nonbank entities’ loans
|
— | 8,249 | 3,457 | 11,706 | ||||||||||||
Loans originated by nonbank entities
|
— | (4,590 | ) | (3,370 | ) | (7,960 | ) | |||||||||
Net repayments from (advances to) subsidiaries
|
(2,424 | ) | (693 | ) | 3,117 | — | ||||||||||
Principal collected on notes/loans made to subsidiaries
|
8,899 | — | (8,899 | ) | — | |||||||||||
Net decrease (increase) in investment in subsidiaries
|
1,344 | — | (1,344 | ) | — | |||||||||||
Net cash paid for acquisitions
|
— | — | (23 | ) | (23 | ) | ||||||||||
Other, net
|
13 | 13 | (10,223 | ) | (10,197 | ) | ||||||||||
Net cash provided by investing activities
|
8,098 | 2,889 | 14,549 | 25,536 | ||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Net change in:
|
||||||||||||||||
Deposits
|
— | — | (9,506 | ) | (9,506 | ) | ||||||||||
Short-term borrowings
|
211 | 2,827 | 3,584 | 6,622 | ||||||||||||
Long-term debt:
|
||||||||||||||||
Proceeds from issuance
|
1,665 | — | 973 | 2,638 | ||||||||||||
Repayment
|
(21,210 | ) | (7,078 | ) | (29,502 | ) | (57,790 | ) | ||||||||
Preferred stock:
|
||||||||||||||||
Cash dividends paid
|
(620 | ) | — | — | (620 | ) | ||||||||||
Common stock:
|
||||||||||||||||
Proceeds from issuance
|
1,050 | — | — | 1,050 | ||||||||||||
Repurchased
|
(71 | ) | — | — | (71 | ) | ||||||||||
Cash dividends paid
|
(783 | ) | — | — | (783 | ) | ||||||||||
Common stock warrants repurchased
|
(544 | ) | — | — | (544 | ) | ||||||||||
Excess tax benefits related to stock option payments
|
79 | — | — | 79 | ||||||||||||
Net change in noncontrolling interests
|
— | — | (490 | ) | (490 | ) | ||||||||||
Net cash used by financing activities
|
(20,223 | ) | (4,251 | ) | (34,941 | ) | (59,415 | ) | ||||||||
Net change in cash and due from banks
|
716 | (117 | ) | (11,678 | ) | (11,079 | ) | |||||||||
Cash and due from banks at beginning of period
|
27,314 | 454 | (688 | ) | 27,080 | |||||||||||
Cash and due from banks at end of period
|
$ | 28,030 | 337 | (12,366 | ) | 16,001 | ||||||||||
139
Nine months ended September 30, 2009 | ||||||||||||||||
Other | ||||||||||||||||
consolidating | ||||||||||||||||
subsidiaries/ | Consolidated | |||||||||||||||
(in millions) | Parent | WFFI | eliminations | Company | ||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 4,113 | 1,271 | 19,866 | 25,250 | |||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Securities available for sale:
|
||||||||||||||||
Sales proceeds
|
655 | 679 | 45,003 | 46,337 | ||||||||||||
Prepayments and maturities
|
— | 267 | 28,479 | 28,746 | ||||||||||||
Purchases
|
(346 | ) | (1,422 | ) | (87,627 | ) | (89,395 | ) | ||||||||
Loans:
|
||||||||||||||||
Decrease (increase) in banking subsidiaries’ loan originations, net of collections
|
— | (646 | ) | 44,983 | 44,337 | |||||||||||
Proceeds from sales (including participations) of loans
originated for investment by banking subsidiaries
|
— | — | 4,569 | 4,569 | ||||||||||||
Purchases (including participations) of loans by banking subsidiaries
|
— | — | (2,007 | ) | (2,007 | ) | ||||||||||
Principal collected on nonbank entities’ loans
|
— | 7,815 | 2,409 | 10,224 | ||||||||||||
Loans originated by nonbank entities
|
— | (3,886 | ) | (3,231 | ) | (7,117 | ) | |||||||||
Net repayments from (advances to) subsidiaries
|
14,988 | — | (14,988 | ) | — | |||||||||||
Capital notes and term loans made to subsidiaries
|
(80 | ) | — | 80 | — | |||||||||||
Principal collected on notes/loans made to subsidiaries
|
7,179 | — | (7,179 | ) | — | |||||||||||
Net decrease (increase) in investment in subsidiaries
|
(5,209 | ) | — | 5,209 | — | |||||||||||
Net cash paid for acquisitions
|
— | — | (132 | ) | (132 | ) | ||||||||||
Other, net
|
22,486 | 147 | 16,959 | 39,592 | ||||||||||||
Net cash provided by investing activities
|
39,673 | 2,954 | 32,527 | 75,154 | ||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Net change in:
|
||||||||||||||||
Deposits
|
— | — | 15,212 | 15,212 | ||||||||||||
Short-term borrowings
|
(20,492 | ) | 2,740 | (59,522 | ) | (77,274 | ) | |||||||||
Long-term debt:
|
||||||||||||||||
Proceeds from issuance
|
3,665 | — | 1,138 | 4,803 | ||||||||||||
Repayment
|
(20,158 | ) | (7,002 | ) | (28,172 | ) | (55,332 | ) | ||||||||
Preferred stock:
|
||||||||||||||||
Cash dividends paid
|
(1,616 | ) | — | — | (1,616 | ) | ||||||||||
Common stock:
|
||||||||||||||||
Proceeds from issuance
|
9,590 | — | — | 9,590 | ||||||||||||
Repurchased
|
(80 | ) | — | — | (80 | ) | ||||||||||
Cash dividends paid
|
(1,891 | ) | — | — | (1,891 | ) | ||||||||||
Excess tax benefits related to stock option payments
|
9 | — | — | 9 | ||||||||||||
Net change in noncontrolling interests
|
— | 1 | (356 | ) | (355 | ) | ||||||||||
Other, net
|
(35 | ) | — | 35 | — | |||||||||||
Net cash used by financing activities
|
(31,008 | ) | (4,261 | ) | (71,665 | ) | (106,934 | ) | ||||||||
Net change in cash and due from banks
|
12,778 | (36 | ) | (19,272 | ) | (6,530 | ) | |||||||||
Cash and due from banks at beginning of period
|
15,658 | 426 | 7,679 | 23,763 | ||||||||||||
Cash and due from banks at end of period
|
$ | 28,436 | 390 | (11,593 | ) | 17,233 | ||||||||||
140
To be well capitalized | ||||||||||||||||||||||||
under the FDICIA | ||||||||||||||||||||||||
For capital | prompt corrective | |||||||||||||||||||||||
Actual | adequacy purposes | action provisions | ||||||||||||||||||||||
(in billions) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||
As of September 30, 2010:
|
||||||||||||||||||||||||
Total capital (to risk-weighted assets)
|
||||||||||||||||||||||||
Wells Fargo & Company
|
$ | 144.1 | 14.88 | % | ³ | $77.5 | ³ | 8.00 | % | |||||||||||||||
Wells Fargo Bank, N.A.
|
117.8 | 13.36 | ³ | 70.6 | ³ | 8.00 | ³ | $88.2 | ³ | 10.00 | % | |||||||||||||
Tier 1 capital (to risk-weighted assets) |
||||||||||||||||||||||||
Wells Fargo & Company
|
105.6 | 10.90 | ³ | 38.7 | ³ | 4.00 | ||||||||||||||||||
Wells Fargo Bank, N.A.
|
89.8 | 10.18 | ³ | 35.3 | ³ | 4.00 | ³ | 52.9 | ³ | 6.00 | ||||||||||||||
Tier 1 capital (to average assets) |
||||||||||||||||||||||||
(Leverage ratio)
|
||||||||||||||||||||||||
Wells Fargo & Company
|
105.6 | 9.01 | ³ | 46.9 | ³ | 4.00 | (1) | |||||||||||||||||
Wells Fargo Bank, N.A.
|
89.8 | 8.71 | ³ | 41.3 | ³ | 4.00 | (1) | ³ | 51.6 | ³ | 5.00 | |||||||||||||
(1) | The leverage ratio consists of Tier 1 capital divided by quarterly average total assets, excluding goodwill and certain other items. The minimum leverage ratio guideline is 3% for banking organizations that do not anticipate significant growth and that have well-diversified risk, excellent asset quality, high liquidity, good earnings, effective management and monitoring of market risk and, in general, are considered top-rated, strong banking organizations. |
141
ABCP
|
Asset-based commercial paper | |
ALCO
|
Asset/Liability Management Committee | |
ARS
|
Auction rate security | |
ASC
|
Accounting Standards Codification | |
ASU
|
Accounting Standards Update | |
ARM
|
Adjustable-rate mortgage | |
AVM
|
Automated valuation model | |
CDs
|
Certificates of deposit | |
CDO
|
Collateralized debt obligation | |
CLO
|
Collateralized loan obligation | |
CPR
|
Constant prepayment rate | |
CRE
|
Commercial real estate | |
ESOP
|
Employee Stock Ownership Plan | |
FAS
|
Statement of Financial Accounting Standards | |
FASB
|
Financial Accounting Standards Board | |
FDIC
|
Federal Deposit Insurance Corporation | |
FHA
|
Federal Housing Administration | |
FHLB
|
Federal Home Loan Bank | |
FHLMC
|
Federal Home Loan Mortgage Company | |
FICO
|
Fair Isaac Corporation (credit rating) | |
FNMA
|
Federal National Mortgage Association | |
FRB
|
Federal Reserve Board | |
GAAP
|
Generally Accepted Accounting Principles | |
GNMA
|
Government National Mortgage Association | |
GSE
|
Government-sponsored entity | |
HAMP
|
Home Affordability Modification Program | |
IRA
|
Individual Retirement Account | |
LHFS
|
Loans held for sale | |
LIBOR
|
London Interbank Offered Rate | |
LTV
|
Loan-to-value | |
MBS
|
Mortgage-backed security | |
MHFS
|
Mortgages held for sale | |
MSR
|
Mortgage servicing right | |
MTN
|
Medium-term note program | |
NAV
|
Net asset value | |
NPA
|
Nonperforming asset | |
OCC
|
Office of the Comptroller of the Currency | |
OCI
|
Other comprehensive income | |
OTC
|
Over-the-counter | |
OTTI
|
Other-than-temporary impairment | |
PCI Loans
|
Purchased credit-impaired loans are acquired loans with evidence of credit deterioration accounted for under FASB ASC 310-30 (AICPA Statement of Position 03-3) | |
PTPP
|
Pre-tax pre-provision profit | |
QSPE
|
Qualifying special purpose entity | |
RBC
|
Risk-based capital | |
ROA
|
Wells Fargo net income to average total assets | |
ROE
|
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity | |
SEC
|
Securities and Exchange Commission | |
S&P
|
Standard & Poors |
142
SPE
|
Special purpose entity | |
TDR
|
Troubled debt restructuring | |
VA
|
Department of Veterans Affairs | |
VaR
|
Value-at-risk | |
VIE
|
Variable interest entity | |
WFFCC
|
Wells Fargo Financial Canada Corporation |
143
Item 1. | Legal Proceedings | |
Information in response to this item can be found in Note 10 (Guarantees and Legal Actions) to Financial Statements in this Report which information is incorporated by reference into this item. |
Item 1A. | Risk Factors | |
Information in response to this item can be found under the “Financial Review — Risk Factors” section in this Report which information is incorporated by reference into this item. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Maximum number of | ||||||||||||
Total number | shares that may yet | |||||||||||
of shares | Weighted-average | be repurchased under | ||||||||||
Calendar month | repurchased (1) | price paid per share | the authorizations | |||||||||
July
|
42,987 | $ | 27.26 | 3,833,553 | ||||||||
August
|
34,669 | 25.97 | 3,798,884 | |||||||||
September
|
38,096 | 25.81 | 3,760,788 | |||||||||
Total
|
115,752 | |||||||||||
(1) | All shares were repurchased under the authorization covering up to 25 million shares of common stock approved by the Board of Directors and publicly announced by the Company on September 23, 2008. Unless modified or revoked by the Board, this authorization does not expire. |
Total number | Maximum dollar value | |||||||||||
of warrants | Average price | of warrants | ||||||||||
Calendar month | purchased (1) | paid per warrant | that may yet be purchased | |||||||||
July
|
25,000 | $ | 7.65 | $ | 459,530,935 | |||||||
August
|
386,425 | 7.61 | 456,591,097 | |||||||||
September
|
125,371 | 7.88 | 455,602,966 | |||||||||
Total
|
536,796 | |||||||||||
(1) | All warrants were purchased under the authorization covering up to $1 billion in warrants approved by the Board of Directors (ratified and approved on June 22, 2010). Unless modified or revoked by the Board, authorization does not expire. |
144
Item 6. | Exhibits |
Dated: November 5, 2010 |
WELLS FARGO & COMPANY
|
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By: | /s/ RICHARD D. LEVY | |||
Richard D. Levy | ||||
Executive Vice President and Controller (Principal Accounting Officer) |
145
Exhibit | |||||||||||||||||||||
Number | Description | Location | |||||||||||||||||||
|
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3(a) | Restated Certificate of Incorporation, as amended and in effect on the date hereof. | Incorporated by reference to Exhibit 3(a) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. | |||||||||||||||||||
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3(b) | By-Laws. | Incorporated by reference to Exhibit 3(b) to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. | |||||||||||||||||||
|
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4(a) | See Exhibits 3(a) and 3(b). | ||||||||||||||||||||
|
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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. | ||||||||||||||||||||
|
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12(a) | Computation of Ratios of Earnings to Fixed Charges: | Filed herewith. | |||||||||||||||||||
|
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Quarter ended | Nine months | ||||||||||||||||||||
Sept. 30 | , | ended Sept. 30 | , | ||||||||||||||||||
|
2010 | 2009 | 2010 | 2009 | |||||||||||||||||
|
Including interest on deposits | 3.39 | 2.90 | 3.11 | 2.70 | ||||||||||||||||
|
|||||||||||||||||||||
|
Excluding interest on deposits | 4.61 | 4.05 | 4.17 | 3.62 | ||||||||||||||||
|
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12(b) | Computation of Ratios of Earnings to Fixed Charges and Preferred Dividends: | Filed herewith. | |||||||||||||||||||
|
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Quarter ended | Nine months | ||||||||||||||||||||
Sept. 30 | , | ended Sept. 30 | , | ||||||||||||||||||
|
2010 | 2009 | 2010 | 2009 | |||||||||||||||||
|
Including interest on deposits | 2.98 | 2.15 | 2.75 | 2.03 | ||||||||||||||||
|
|||||||||||||||||||||
|
Excluding interest on deposits | 3.83 | 2.59 | 3.49 | 2.39 | ||||||||||||||||
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31(a) | Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | |||||||||||||||||||
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31(b) | Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | |||||||||||||||||||
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32(a) | Certification of Periodic Financial Report by Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. § 1350. | Furnished herewith. | |||||||||||||||||||
|
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32(b) | Certification of Periodic Financial Report by Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. § 1350. | Furnished herewith. |
146
Exhibit | ||||||||||||||||||||
Number | Description | Location | ||||||||||||||||||
|
||||||||||||||||||||
101* | Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2010, is formatted in XBRL interactive data files: (i) Consolidated Statement of Income for the three and nine months ended September 30, 2010 and 2009; (ii) Consolidated Balance Sheet at September 30, 2010, and December 31, 2009; (iii) Consolidated Statement of Changes in Equity and Comprehensive Income for the nine months ended September 30, 2010 and 2009; (iv) Consolidated Statement of Cash Flows for the nine months ended September 30, 2010 and 2009; and (v) Notes to Financial Statements. | Furnished herewith. |
* | As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
147
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
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DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
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No information found
Customers
Customer name | Ticker |
---|---|
AutoNation, Inc. | AN |
Granite Construction Incorporated | GVA |
MGIC Investment Corporation | MTG |
Mr. Cooper Group Inc. | COOP |
Suppliers
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|