Wells Fargo 2010 Annual Report Download - page 215

We have three operating segments for management reporting:
Community Banking; Wholesale Banking; and Wealth,
Brokerage and Retirement. The results for these operating
segments are based on our management accounting process, for
which there is no comprehensive, authoritative guidance
equivalent to GAAP for financial accounting. The management
accounting process measures the performance of the operating
segments based on our management structure and is not
necessarily comparable with similar information for other
financial services companies. We define our operating segments
by product type and customer segment. If the management
structure and/or the allocation process changes, allocations,
transfers and assignments may change. In first quarter 2010, we
conformed certain funding and allocation methodologies of
legacy Wachovia to those of Wells Fargo; in addition, integration
expense related to mergers other than the Wachovia merger is
now included in segment results. In fourth quarter 2010, we
aligned certain lending businesses into Wholesale Banking from
Community Banking to reflect our previously announced
restructuring of Wells Fargo Financial. Prior periods have been
revised to reflect these changes.
Note 23: Operating Segments
Community Banking offers a complete line of diversified
financial products and services to consumers and small
businesses with annual sales generally up to $20 million in
which the owner generally is the financial decision maker.
Community Banking also offers investment management and
other services to retail customers and securities brokerage
through affiliates. These products and services include the
Wells Fargo Advantage FundsSM, a family of mutual funds. Loan
products include lines of credit, auto floor plan lines, equity lines
and loans, equipment and transportation loans, education loans,
origination and purchase of residential mortgage loans and
servicing of mortgage loans and credit cards. Other credit
products and financial services available to small businesses and
their owners include equipment leases, real estate and other
commercial financing, Small Business Administration financing,
venture capital financing, cash management, payroll services,
retirement plans, Health Savings Accounts, credit cards, and
merchant payment processing. Community Banking also
purchases sales finance contracts from retail merchants
throughout the United States and directly from auto dealers in
Puerto Rico. Consumer and business deposit products include
checking accounts, savings deposits, market rate accounts,
Individual Retirement Accounts, time deposits and debit cards.
Community Banking serves customers through a complete
range of channels, including traditional banking stores, in-store
banking centers, business centers, ATMs, Online and Mobile
Banking, and Wells Fargo Customer Connection, a 24-hours a
day, seven days a week telephone service.
Wholesale Banking provides financial solutions to businesses
across the United States with annual sales generally in excess of
$20 million and to financial institutions globally. Wholesale
Banking provides a complete line of commercial, corporate,
capital markets, cash management and real estate banking
products and services. These include traditional commercial
loans and lines of credit, letters of credit, asset-based lending,
equipment leasing, international trade facilities, trade financing,
collection services, foreign exchange services, treasury
management, investment management, institutional fixed-
income sales, interest rate, commodity and equity risk
management, online/electronic products such as the
Commercial Electronic Office® (CEO®) portal, insurance,
corporate trust fiduciary and agency services, and investment
banking services. Wholesale Banking manages customer
investments through institutional separate accounts and mutual
funds, including the Wells Fargo Advantage Funds and Wells
Capital Management. Wholesale Banking also supports the CRE
market with products and services such as construction loans for
commercial and residential development, land acquisition and
development loans, secured and unsecured lines of credit,
interim financing arrangements for completed structures,
rehabilitation loans, affordable housing loans and letters of
credit, permanent loans for securitization, CRE loan servicing
and real estate and mortgage brokerage services.
Wealth, Brokerage and Retirement provides a full range of
financial advisory services to clients using a planning approach
to meet each client's needs. Wealth Management provides
affluent and high net worth clients with a complete range of
wealth management solutions, including financial planning,
private banking, credit, investment management and trust.
Family Wealth meets the unique needs of ultra high net worth
customers. Brokerage serves customers' advisory, brokerage and
financial needs as part of one of the largest full-service brokerage
firms in the United States. Retirement is a national leader in
providing institutional retirement and trust services (including
401(k) and pension plan record keeping) for businesses, retail
retirement solutions for individuals, and reinsurance services for
the life insurance industry.
Other includes corporate items (such as integration expenses
related to the Wachovia merger) not specific to a business
segment and elimination of certain items that are included in
more than one business segment.
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