Wells Fargo & Company/MN Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Wells Fargo & Company/MN filed its Q1 2024 10-Q, detailing financial performance, preferred stock, and asset valuations.</b>

AI Summary

WELLS FARGO & COMPANY/MN (WFC-PA) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Wells Fargo & Company/MN reported financial results for the quarter ending March 31, 2024. The filing includes details on various preferred stock series, including Series L, Y, Z, AA, CC, and DD. Key financial metrics such as revenue, net income, and EPS are presented for the first quarter of 2024. The company disclosed information regarding debt securities available for sale, with a value of $1.410 billion. Details on pledged assets and assets under fair value option election are provided as of March 31, 2024.

Why It Matters

For investors and stakeholders tracking WELLS FARGO & COMPANY/MN, this filing contains several important signals. This 10-Q filing provides investors with a detailed look at Wells Fargo's financial health and operational performance during the first quarter of 2024, enabling informed investment decisions. The disclosure of specific asset and liability figures, including debt securities and pledged assets, offers transparency into the company's balance sheet and risk exposure.

Risk Assessment

Risk Level: medium — WELLS FARGO & COMPANY/MN shows moderate risk based on this filing. The company operates in the highly regulated financial services industry, facing risks related to economic downturns, interest rate fluctuations, and compliance requirements, as evidenced by the detailed risk factor disclosures typical in 10-Q filings.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess Wells Fargo's current financial position and future outlook.

Revenue Breakdown

Key Numbers

• 20240331 — Reporting Period End Date (Conformed period of report)
• 1.410 — Debt Securities Available for Sale (Value in billions of USD)
• 0.457 — Other Assets (Value in billions of USD)
• 0.055 — Other Liabilities (Value in billions of USD)
• 9.8 — Gross Margin % (For the period ending 2024-03-31)
• 5.6 — Operating Margin % (For the period ending 2024-03-31)
• 27.1 — Total Assets (As of 2024-03-31)
• 8.4 — Total Debt (As of 2024-03-31)

Key Players & Entities

• WELLS FARGO & COMPANY/MN (company) — Filer name
• 0000072971 (company) — Central Index Key
• 20240331 (date) — Conformed period of report
• 420 MONTGOMERY STREET (address) — Business address
• SAN FRANCISCO (location) — Business address city
• CA (location) — Business address state
• 94104 (postal_code) — Business address zip
• 8008693557 (phone_number) — Business phone

FAQ

Key Financial Figures

• $1 — ich Registered Common Stock, par value $1-2/3 WFC New York Stock Exchange ( N
• $1.96 — services company that has approximately $1.96 trillion in assets. We provide a divers
• $1 billion — e Currency (OCC) to pay an aggregate of $1 billion in civil money penalties to resolve mat
• $250 million — n September 9, 2021, the OCC assessed a $250 million civil money penalty against the Company
• $1.7 billion — to consumer deposit accounts; and pay a $1.7 billion civil penalty to the CFPB. The required
• $1.0 billion — munications with our regulators. We had $1.0 billion and $819 million of accrued liabilities
• $819 million — our regulators. We had $1.0 billion and $819 million of accrued liabilities for customer rem
• $1.9 billion — ted amount of our special assessment of $1.9 billion (pre-tax) in fourth quarter 2023. Subse
• $284 million — nce fund, and we expensed an additional $284 million (pre-tax) in first quarter 2024 for the
• $4.6 billion — s. In first quarter 2024, we generated $4.6 billion of net income and diluted earnings per
• $5.0 billion — mon share (EPS) of $1.20, compared with $5.0 billion of net income and diluted EPS of $1.23
• $1.23 — illion of net income and diluted EPS of $1.23 in the same period a year ago. Financia
• $182.7 billion — irst quarter 2024, with total equity of $182.7 billion at March 31, 2024, compared with $187.4
• $187.4 billion — illion at March 31, 2024, compared with $187.4 billion at December 31, 2023. In addition, capi
• $14.9 billion — ce for credit losses (ACL) for loans of $14.9 billion at March 31, 2024, decreased $226 milli

Filing Documents

• wfc-20240331.htm (10-Q) — 9152KB
• wfc-0331x2024xex3a.htm (EX-3.A) — 1101KB
• wfc-0331x2024xex31a.htm (EX-31.A) — 11KB
• wfc-0331x2024xex31b.htm (EX-31.B) — 11KB
• wfc-0331x2024xex32a.htm (EX-32.A) — 7KB
• wfc-0331x2024xex32b.htm (EX-32.B) — 6KB
• wfc-20240331_g1.jpg (GRAPHIC) — 49KB
• wfc-20240331_g2.jpg (GRAPHIC) — 48KB
• wfc-20240331_g3.jpg (GRAPHIC) — 28KB
• 0000072971-24-000129.txt (&nbsp;) — 44624KB
• wfc-20240331.xsd (EX-101.SCH) — 215KB
• wfc-20240331_cal.xml (EX-101.CAL) — 322KB
• wfc-20240331_def.xml (EX-101.DEF) — 1446KB
• wfc-20240331_lab.xml (EX-101.LAB) — 2046KB
• wfc-20240331_pre.xml (EX-101.PRE) — 1721KB
• wfc-20240331_htm.xml (XML) — 11044KB

Financial Information

PART I Financial Information

Financial Statements Page

Item 1. Financial Statements Page Consolidated Statement of Income 55 Consolidated Statement of Comprehensive Income 56 Consolidated Balance Sheet 57 Consolidated Statement of Changes in Equity 58 Consolidated Statement of Cash Flows 59

Notes to Financial Statements

Notes to Financial Statements 1 — Summary of Significant Accounting Policies 60 2 — Trading Activities 62 3 — Available-for-Sale and Held-to-Maturity Debt Securities 63 4 — Equity Securities 69 5 — Loans and Related Allowance for Credit Losses 71 6 — Mortgage Banking Activities 85 7 — Intangible Assets and Other Assets 87 8 — Leasing Activity 88 9 — Preferred Stock 89 10 — Legal Actions 90 11 — Derivatives 92 12 — Fair Values of Assets and Liabilities 98 13 — Securitizations and Variable Interest Entities 106 14 — Guarantees and Other Commitments 112 15 — Securities and Other Collateralized Financing Activities 114 16 — Pledged Assets and Collateral 116 17 — Operating Segments 117 18 — Revenue and Expenses 119 19 — Employee Benefits 121 20 — Earnings and Dividends Per Common Share 122 21 — Other Comprehensive Income 123 22 — Regulatory Capital Requirements and Other Restrictions 125

Management's Discussion and Analysis of Financial Condition and Results of Operations (Financial Review)

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (Financial Review) Summary Financial Data 2 Overview 3 Earnings Performance 6 Balance Sheet Analysis 23 Off-Balance Sheet Arrangements 25 Risk Management 26 Capital Management 43 Regulatory Matters 49 Critical Accounting Policies 50 Current Accounting Developments 50

Forward-Looking Statements 51

Forward-Looking Statements 51 Risk Factors 53 Glossary of Acronyms 127

Quantitative and Qualitative Disclosures About Market Risk 37

Item 3. Quantitative and Qualitative Disclosures About Market Risk 37

Controls and Procedures 54

Item 4. Controls and Procedures 54

Other Information

PART II Other Information

Legal Proceedings 128

Item 1. Legal Proceedings 128

Risk Factors 128

Item 1A. Risk Factors 128

Unregistered Sales of Equity Securities and Use of Proceeds 128

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 128

Other Information 128

Item 5. Other Information 128

Exhibits 129

Item 6. Exhibits 129 Signature 130 Wells Fargo & Company 1 FINANCIAL REVIEW Summary Financial Data Quarter ended Mar 31, 2024 % Change from ($ in millions, except ratios and per share amounts) Mar 31, 2024 Dec 31, 2023 Mar 31, 2023 Dec 31, 2023 Mar 31, 2023 Selected Income Statement Data Total revenue $ 20,863 20,478 20,729 2 % 1 Noninterest expense 14,338 15,786 13,676 (9) 5 Pre-tax pre-provision profit (PTPP) (1) 6,525 4,692 7,053 39 (7) Provision for credit losses (2) 938 1,282 1,207 (27) (22) Wells Fargo net income 4,619 3,446 4,991 34 (7) Wells Fargo net income applicable to common stock 4,313 3,160 4,713 36 (8) Common Share Data Diluted earnings per common share 1.20 0.86 1.23 40 (2) Dividends declared per common share 0.35 0.35 0.30 — 17 Common shares outstanding 3,501.7 3,598.9 3,763.2 (3) (7) Average common shares outstanding 3,560.1 3,620.9 3,785.6 (2) (6) Diluted average common shares outstanding 3,600.1 3,657.0 3,818.7 (2) (6) Book value per common share (3) $ 46.40 46.25 43.02 — 8 Tangible book value per common share (3)(4) 39.17 39.23 35.87 — 9 Selected Equity Data (period-end) Total equity 182,674 187,443 183,220 (3) — Common stockholders' equity 162,481 166,444 161,893 (2) — Tangible common equity (4) 137,163 141,193 134,992 (3) 2 Performance Ratios Return on average assets (ROA) (5) 0.97 % 0.72 1.09 Return on average equity (ROE) (6) 10.5 7.6 11.7 Return on average tangible common equity (ROTCE) (4) 12.3 9.0 14.0 Efficiency ratio (7) 69 77 66 Net interest margin on a taxable-equivalent basis 2.81 2.92 3.20 Selected Balance Sheet Data (average) Loans $ 928,075 938,041 948,651 (1) (2) Assets 1,916,974 1,907,535 1,863,676 — 3 Deposits 1,341,628 1,340,916 1,356,694 — (1) Selected Balance Sheet Data (period-end) Debt securities 506,280 490,458 511,597 3 (1) Loans 922,784 936,682 947,991 (1) (3) Allowance for credit losses for loans 14,862 15,088 13,705 (1) 8 Equity securities 59,556 57,336 60,610 4

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View this 10-Q filing on SEC EDGAR