Wells Fargo 2008 Annual Report Download - page 9

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10 Wachovia banking customers has a Wachovia credit card;
four of every 10 Wells Fargo customers have a Wells Fargo
credit card.
Wells Fargo’s Deposit Leadership
Market Share Rank
Alaska  
Nevada  
Utah  
Arizona  
Colorado  
California  
Minnesota  
Idaho  
Wyoming  
Florida  
Virginia  
NorthCarolina  
NewMexico  
SouthCarolina  
SouthDakota  
Georgia  
DC  
NewJersey  
Oregon  
Texas  
Delaware  
Alabama  
Montana  
Pennsylvania  
Iowa  
Connecticut  
Nebraska  
NorthDakota  
Washington  
Maryland  
Wisconsin  
Kansas  
Indiana  
NewYork  
Michigan  
Illinois  
Tennessee  
Mississippi nm
Arkansas nm
Ohio nm
Source: SNL Financial. Deposit data 6/30/08. Pro forma for acquisitions. Exclude deposits
greater than $500 million in a single banking store.
(n.m.: not meaningful)
The mortgage and banking opportunity: huge!
With checking, investments and insurance, mortgage is one
of our four core products — one that our customers value so
much that if they have it with us, then they’re more likely to
buy more products from us. This makes it an indispensable
part of satisfying all their fi nancial needs. We’ve had a
signifi cant retail mortgage presence in the Eastern U.S. for
a long time; we now have a signifi cant Community Banking
presence there as well. This is one of the biggest cross-sell
opportunities of the Wachovia merger — the opportunity in
15 more states to earn all the banking business of our mortgage
customers and all the mortgage business of Wachovia’s banking
households. This opportunity alone could generate millions of
dollars of added revenue because we have about three million
Wells Fargo Home Mortgage customers in the 15 states we enter
with Community Banking through the Wachovia merger.
industry in lending to credit-worthy customers. We made more
loans at better price spreads while many of our competitors had
to cut back. In 2008 we provided $41 billion in new lending to
businesses and individuals. Our average loans rose 16 percent.
Our average commercial and commercial real estate loans rose
25 percent.
Wells Fargo + Wachovia: growth opportunities
Building on our strength and performance, this merger presents
us with signifi cant growth opportunities in each of our major
business groups. Here’s just a sample:
Community Banking: beyond deposits
In addition to our 24 Wells Fargo Community Banking states
in the Midwest, the Southwest, the Rockies and the West,
Wachovia introduces us to 15 more states: Alabama, Connecticut,
Delaware, Florida, Georgia, Kansas, Maryland, Mississippi,
New Jersey, New York, North Carolina, Pennsylvania, South
Carolina, Tennessee, Virginia and Washington, D.C. Our 2008
acquisition of Century Bancshares established our Community
Banking presence in Arkansas. At year-end 2008, our combined
company was #1 in deposit market share in 18 of our 39
Community Banking states and the District of Columbia.
Ninety-three percent of our deposits were in states in which
we rank #1, 2 or 3. We ranked #1 in 10 of the nation’s 20 largest
metro areas in deposit market share (excluding deposits
$500+ million in a single banking store).
There’s more to fi nancial services, however, than just
deposits. There’s signifi cant potential for more growth in all
these states because banking deposits are an important but
relatively small portion of average household assets. In fact, our
share of total household assets in any of these states is probably
no more than 5 percent. We want to go beyond deposits and
satisfy all the fi nancial needs of Wachovia’s retail banking and
brokerage households — not just deposits, loans and lines of
credit, but their credit cards, debit cards, insurance, brokerage,
401(k)s, mortgage, home equity, and on and on.
Take a quick inventory of all your own household’s fi nancial
products. You’ll probably come up with about 16, which you
bought from several providers. We believe you can save more
time and money if you have all your products with one trusted
provider that can o er you, and deliver on, a compelling
value proposition. The same goes for our business banking
customers. We want to satisfy all their fi nancial needs — not
just their deposits, loans and lines of credit but their private
banking, mortgage, treasury management, payroll processing,
merchant processing, insurance, and on and on. We’re not
satisfi ed with just being #1 in deposit market share. We want
to be known as the best in every product in every market in
which we do business, in retail banking, business banking,
investments and mortgage — and be the fi rst provider our
customers think of when they need their next fi nancial product.
Both our companies are learning from each other. Wachovia will
help Wells Fargo make the customer experience in our banking
stores even better. Wells Fargo will help further strengthen
the Wachovia sales process. For example, only one of every