Wells Fargo Earning Highlights Compare

I read through Well Fargo’s first and second quarter earning releasing and jog down the hightlights of the report in a comparable list. Hightlights number 24 and 27 to 30 are the focus. I will blog more about them in later post.

Reference: https://www.wellsfargo.com/invest_relations/earnings.

Wells Fargo 2009 Second Quarter Earning Highlights

• 1, Net income: $3.17 Billion
• 2, Net income applicable to common stock: $2.58
• 3, Diluted earnings per common share: $0.57
• 4, $0.7 billion ($0.10/per common share) credit reserve build
• 5, $0.24 billion ($0.03/per common share) merger-related expenses. $0.57 billion ($0.10/per common share) FDIC assessment
• 6, Revenue: 22.5 Billion
• 7, Legacy Wells Fargo revenue 13.6 billion
• 8, Net interest margin 4.30%
• 9, Core deposit: $765.7 billion
• 10, Tangible common equity: 54.9 billion, TCE ratio 5.24%
• 11, Tier 1 capital ratio 9.80%
• 12, –
• 13, Allowance for credit losses to $23.5 billion. 2.86 percent of total loans and 1.5 times nonperforming loans
• 14, $0.04 billion write-down of impairment on debt and equity security
• 15, Pre-tax pre-provision profit: 9.8 billion
• 16, Net interest income: $11.8 billion
• 17, Total loans were $833.9 billion
• 18, Noninterest income of $10.7 billion
• 19, $1 Billion MTM gain. $2.3 billion increase in the fair value of the MSRs offset by a $1.3 billion economic hedge loss in the quarter
• 20, Trust and investment fees of $2.4 billion
• 21, Service charges on deposit accounts of $1.4 billion
• 22, Card and other fees of $1.9 billion
• 23, Trading revenue of $0.75 billion
• 24,
  

  Net unrealized losses on securities available for sale reflected in equity of only $0.4 billion down from losses of $4.7 billion at March 31, 2009. “The net unrealized losses were virtually eliminated as credit spreads narrowed during the quarter and as unrealized gains emerged on new mortgage-backed securities (MBS, purchased during the quarter at the peak in MBS yields)”

• 25, Noninterest expense was $12.7 billion
• 26, $0.57 Billion FDIC assessment. $0.24 billion merger-related expenses
• 27, Wachovia’s total net charge-offs in first quarter were only $0.98 billion
• 28, Second quarter net charge-offs were $4.4 billion
• 29, Total nonperforming assets were $18.3 billion. $15.8 billion of nonaccrual loans (nonperforming loans)
• 30, Loans 90 days or more past due and still accruing totaled $16.7 billion
• 31, –

Wells Fargo 2009 First Quarter Earning Highlights

• 1, Net income: $3.05 billion
• 2, Net income applicable to common stock: $2.38 billion
• 3, Earning per common share: $0.56
• 4, $1.3 billion ($0.19/common share) credit reserve build.
• 5, $0.2 billion ($0.03/common share) merger-related expense. $0.34 billion FDIC assessment
• 6, Revenue: $21 billion
• 7, Legacy Well Fargo revenue: $12.3 billion
• 8, Net interest margin: 4.16%
• 9, Core deposit: $756.2 billion
• 10, Tangible common equity: $41.1 billion. TCE ratio 3.28%
• 11, Tier 1 Capital: $88.9 billion. Tier 1 capital ratio 8.28%
• 12, Credit write downs from the Wachovia acquisition: $40 billion
• 13, Allowance for credit losses: $22.8 Billion. 2.7% of total loans. 2.2 times nonperforming loans
• 14, $0.5 billion write-down of impairment on debt and equity security
• 15, Pre-tax. Pre-provision profit $9.2 billion
• 16, Net interest income: $11.4 billion
• 17, Total loans: $843.6 billion. $119.4 billion of consumer loans
• 18, Noninterest income: $9.6 billion
• 19, $0.88 Billion MTM gain. $2.8 Billion Reduction of (MSRs) mortgage servicing rights and $3.7 billion hedge gain.
• 20, Trust and investment fees of $2.2 billion
• 21, Service charges on deposit accounts of $1.4 billion
• 22, Card and other fees totaling $1.8 billion
• 23, Trading revenue of $0.79 Billion
• 24,
  

  The net unrealized loss on securities available for sale declined to $4.7 billion at March 31, 2009, from $9.9 billion at December 31, 2008. Approximately $850 million of the improvement was due to declining interest rates and narrower credit spreads. The remainder was due to the early adoption of FAS FSP 157-4, which clarified the use of trading prices in determining fair value for distressed securities in illiquid markets, thus moderating the need to use excessively distressed prices in valuing these securities in illiquid markets as we had done in prior periods.

• 25, Noninterest expense: $11.8 billion
• 26, FDIC assessments: $0.34 billion. $0.12 billion additional insurance reserve. $0.2 billion merger related costs. Total integration expense to be $7.94 billion and will be spread over the integration period
• 27, Wachovia’s total net charge-offs in first quarter were only $0.37 billion after a total of $40 billion of credit write-downs have already been taken through purchase accounting adjustments.
• 28, Net charge-offs for the combined Company were $3.3 billion
• 29, Total nonperforming assets: $12.6 billion. $10.5 billion of nonperforming loans
• 30, Loans 90 days or more past due and still accruing totaled $15.1 billion
• 31,
  

  “We have built reserves for six consecutive quarters, dating back to fourth quarter 2007 when credit deterioration became evident,” said Atkins. “These reserve builds have strengthened the balance sheet and position us for the future. We view a considerable portion of the $23 billion allowance to be essentially like capital since we won’t draw on this reserve until the credit crisis ends and loan losses decline. Current accounting policies will then require us to reduce the allowance, increasing profit and increasing capital ratios at that time.”