Wells Fargo 2006 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2006 Wells Fargo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

80
(in millions) December 31, 2006
Total Weighted- Remaining contractual principal maturity
amount average After one year After five years
yield Within one year through five years through ten years After ten years
Amount Yield Amount Yield Amount Yield Amount Yield
Securities of U.S. Treasury
and federal agencies $ 768 4.56% $134 5.20% $ 551 4.33% $ 78 4.89% $ 5 7.66%
Securities of U.S. states and
political subdivisions 3,530 7.17 166 7.99 437 6.56 708 6.97 2,219 7.29
Mortgage-backed securities:
Federal agencies 27,463 5.91 2 7.11 43 6.99 68 5.84 27,350 5.91
Private collateralized
mortgage obligations 4,046 5.92 — — — — — — 4,046 5.92
Total mortgage-backed securities 31,509 5.91 2 7.11 43 6.99 68 5.84 31,396 5.91
Other 6,026 6.45 226 6.38 4,289 6.22 975 7.18 536 7.00
Total debt securities at fair value (1) $41,833 6.07% $528 6.59% $5,320 6.06% $1,829 6.95% $34,156 6.02%
(1) The weighted-average yield is computed using the contractual life amortization method.
(in millions) Year ended December 31,
2006 2005 2004
Realized gross gains $ 621 $ 355 $ 168
Realized gross losses (1) (295) (315) (108)
Realized net gains $ 326 $40 $60
(1) Includes other-than-temporary impairment of $22 million, $45 million and
$9 million for 2006, 2005 and 2004, respectively.
The decline in fair value for the debt securities that had
been in a continuous loss position for 12 months or more at
December 31, 2006, was largely due to changes in market
interest rates and not due to the credit quality of the securities.
We believe that the principal and interest on these securities
are fully collectible and we have the intent and ability to
retain our investment for a period of time to allow for any
anticipated recovery in market value. We have reviewed
these securities in accordance with our policy and do not
consider them to be other-than-temporarily impaired.
Securities pledged where the secured party has the right to
sell or repledge totaled $5.3 billion at both December 31, 2006
and 2005. Securities pledged where the secured party does
not have the right to sell or repledge totaled $29.3 billion
at December 31, 2006, and $24.3 billion at December 31,
2005, primarily to secure trust and public deposits and for
other purposes as required or permitted by law. We have
accepted collateral in the form of securities that we have the
right to sell or repledge of $1.8 billion at December 31, 2006,
and $3.4 billion at December 31, 2005, of which we sold or
repledged $1.4 billion and $2.3 billion, respectively.
The following table shows the remaining contractual
principal maturities and contractual yields of debt securities
available for sale. The remaining contractual principal
maturities for mortgage-backed securities were allocated
assuming no prepayments. Remaining expected maturities
will differ from contractual maturities because borrowers
may have the right to prepay obligations before the underlying
mortgages mature.
The following table shows the realized net gains on
the sales of securities from the securities available for sale
portfolio, including marketable equity securities.