Wells Fargo 10-Q: Q3 2024 Financial Update

TL;DR

**WF Q3 24 10-Q is IN! Check financials NOW.**

AI Summary

Wells Fargo & Company/MN filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational aspects of the company, a major player in the national commercial banking sector. Key financial metrics and disclosures relevant to investors and regulators are presented.

Why It Matters

This filing provides crucial insights into Wells Fargo's financial health and operational performance for the third quarter of 2024, impacting investor confidence and regulatory oversight.

Risk Assessment

Risk Level: medium — As a large financial institution, Wells Fargo faces inherent risks related to market volatility, regulatory changes, and economic conditions.

Key Numbers

• 1.6666 — Preference Shares (Indicates potential voting rights if preference shares are issued.)
• 0.349 — Debt Securities Available For Sale (Represents a portion of the company's investment portfolio.)
• 1.410 — Debt Securities Available For Sale (Represents a portion of the company's investment portfolio.)
• 27.1 — Common Stock (Likely represents a significant financial metric related to equity.)
• 8.4 — Common Stock (Likely represents a significant financial metric related to equity.)

Key Players & Entities

• WELLS FARGO & COMPANY/MN (company) — Filer of the 10-Q
• 0000072971 (company) — Central Index Key for Wells Fargo
• 20240930 (date) — End of the reporting period
• 20241031 (date) — Filing date
• 420 MONTGOMERY STREET (address) — Business and mailing address
• SAN FRANCISCO (location) — City of business and mailing address
• DE (location) — State of incorporation

FAQ

Key Financial Figures

• $1 — ich Registered Common Stock, par value $1-2/3 WFC New York Stock Exchange ( N
• $1.9 — services company that has approximately $1.9 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
• $241 million — munications with our regulators. We had $241 million and $819 million of accrued liabilities
• $819 million — our regulators. We had $241 million 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. Durin
• $63 million — ch resulted in a reversal of expense of $63 million (pre-tax) in third quarter 2024 and an
• $273 million — arter 2024 and an additional expense of $273 million (pre-tax) in the first nine months of 2
• $5.1 billion — s. In third quarter 2024, we generated $5.1 billion of net income and diluted earnings per
• $5.8 billion — mon share (EPS) of $1.42, compared with $5.8 billion of net income and diluted EPS of $1.48
• $1.48 — illion of net income and diluted EPS of $1.48 in the same period a year ago. Financia
• $14.6 billion — first nine months of 2024, we generated $14.6 billion of net income and diluted EPS of $3.94,
• $3 — illion of net income and diluted EPS of $3.94, compared with $15.7 billion of net

Filing Documents

• wfc-20240930.htm (10-Q) — 11329KB
• wfc-0930x2024xex31a.htm (EX-31.A) — 11KB
• wfc-0930x2024xex31b.htm (EX-31.B) — 11KB
• wfc-0930x2024xex32a.htm (EX-32.A) — 7KB
• wfc-0930x2024xex32b.htm (EX-32.B) — 6KB
• wfc-20240930_g1.jpg (GRAPHIC) — 50KB
• wfc-20240930_g2.jpg (GRAPHIC) — 46KB
• wfc-20240930_g3.jpg (GRAPHIC) — 28KB
• 0000072971-24-000243.txt ( ) — 49784KB
• wfc-20240930.xsd (EX-101.SCH) — 212KB
• wfc-20240930_cal.xml (EX-101.CAL) — 319KB
• wfc-20240930_def.xml (EX-101.DEF) — 1442KB
• wfc-20240930_lab.xml (EX-101.LAB) — 2062KB
• wfc-20240930_pre.xml (EX-101.PRE) — 1726KB
• wfc-20240930_htm.xml (XML) — 13246KB

Financial Information

PART I Financial Information

Financial Statements Page

Item 1. Financial Statements Page Consolidated Statement of Income 57 Consolidated Statement of Comprehensive Income 58 Consolidated Balance Sheet 59 Consolidated Statement of Changes in Equity 60 Consolidated Statement of Cash Flows 62

Notes to Financial Statements

Notes to Financial Statements 1 — Summary of Significant Accounting Policies 63 2 — Trading Activities 65 3 — Available-for-Sale and Held-to-Maturity Debt Securities 66 4 — Equity Securities 72 5 — Loans and Related Allowance for Credit Losses 74 6 — Mortgage Banking Activities 88 7 — Intangible Assets and Other Assets 90 8 — Leasing Activity 91 9 — Preferred Stock 92 10 — Legal Actions 93 11 — Derivatives 95 12 — Fair Values of Assets and Liabilities 102 13 — Securitizations and Variable Interest Entities 110 14 — Guarantees and Other Commitments 116 15 — Securities and Other Collateralized Financing Activities 118 16 — Pledged Assets and Collateral 120 17 — Operating Segments 121 18 — Revenue and Expenses 124 19 — Employee Benefits 127 20 — Earnings and Dividends Per Common Share 128 21 — Other Comprehensive Income 129 22 — Regulatory Capital Requirements and Other Restrictions 131

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 25 Off-Balance Sheet Arrangements 27 Risk Management 28 Capital Management 45 Regulatory Matters 51 Critical Accounting Policies 52 Current Accounting Developments 52

Forward-Looking Statements 53

Forward-Looking Statements 53 Risk Factors 55 Glossary of Acronyms 133

Quantitative and Qualitative Disclosures About Market Risk 40

Item 3. Quantitative and Qualitative Disclosures About Market Risk 40

Controls and Procedures 56

Item 4. Controls and Procedures 56

Other Information

PART II Other Information

Legal Proceedings 134

Item 1. Legal Proceedings 134

Risk Factors 134

Item 1A. Risk Factors 134

Unregistered Sales of Equity Securities and Use of Proceeds 134

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 134

Other Information 134

Item 5. Other Information 134

Exhibits 135

Item 6. Exhibits 135 Signature 136 Wells Fargo & Company 1 FINANCIAL REVIEW Summary Financial Data Quarter ended Sep 30, 2024 % Change from Nine months ended ($ in millions, except ratios and per share amounts) Sep 30, 2024 Jun 30, 2024 Sep 30, 2023 Jun 30, 2024 Sep 30, 2023 Sep 30, 2024 Sep 30, 2023 % Change Selected Income Statement Data Total revenue $ 20,366 20,689 20,857 (2) % (2) $ 61,918 62,119 — % Noninterest expense 13,067 13,293 13,113 (2) — 40,698 39,776 2 Pre-tax pre-provision profit (PTPP) (1) 7,299 7,396 7,744 (1) (6) 21,220 22,343 (5) Provision for credit losses (2) 1,065 1,236 1,197 (14) (11) 3,239 4,117 (21) Wells Fargo net income 5,114 4,910 5,767 4 (11) 14,643 15,696 (7) Wells Fargo net income applicable to common stock 4,852 4,640 5,450 5 (11) 13,805 14,822 (7) Common Share Data Diluted earnings per common share 1.42 1.33 1.48 7 (4) 3.94 3.96 (1) Dividends declared per common share 0.40 0.35 0.35 14 14 1.10 0.95 16 Common shares outstanding 3,345.5 3,402.7 3,637.9 (2) (8) Average common shares outstanding 3,384.8 3,448.3 3,648.8 (2) (7) 3,464.1 3,710.9 (7) Diluted average common shares outstanding 3,425.1 3,486.2 3,680.6 (2) (7) 3,503.5 3,741.6 (6) Book value per common share (3) $ 49.26 47.01 44.37 5 11 Tangible book value per common share (3)(4) 41.76 39.57 37.43 6 12 Selected Equity Data (period-end) Total equity 185,011 178,148 182,373 4 1 Common stockholders' equity 164,801 159,963 161,424 3 2 Tangible common equity (4) 139,711 134,660 136,153 4 3 Performance Ratios Return on average assets (ROA) (5) 1.06 % 1.03 1.21 1.02 % 1.12 Return on average equity (ROE) (6) 11.7 11.5 13.3 11.2 12.2 Return on average tangible common equity (ROTCE) (4) 13.9 13.7 15.9 13.3 14.6 Efficiency ratio (7) 64 64 63 66 64 Net interest margin on a taxable-equivalent basis 2.67 2.75 3.03 2.74 3.10 Selected Balance Sheet Data (average) Loans $ 910,255 916,977 943,193 (1) (3) $ 918,406 945,896 (3) Assets 1,916,612 1,9

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