Wells Fargo Earning Highlights Compare, Stock Traders Blog

Wells Fargo Earning Highlights Compare

Posted on 29 July 2009 by BloggingTrader Tags: Stock Analysis, Stock Trading Ideas

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.”