Wells Fargo 2012 Annual Report Download - page 6

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Supporting small business
Perhaps no WellsFargo activity was more representative
of the times than our small business lending. In2012,
WellsFargo extended $16billion in net new loan
commitments to U.S. small businesses (primarily those
with annual revenues of less than $20million)— up more
than 30percent from 2011. The rise partly reflects our
focus on being a leader in Small Business Administration
(SBA) lending. In2012, WellsFargo finished its fourth
consecutive year of SBA lending leadership, extending a
record $1.24billion in SBA7(a) loans.
But while approval rates improved in2012, application
rates remained below what we have typically seen at this
stage of an economic recovery. Still, we worked hard to
serve small businesses, whether they sought to stay the
course in a choppy economy or to venture out as first-time
entrepreneurs. As a result, in2012 we grew small business
checking accounts by a net 3.7percent year over year and
saw a more than 50percent increase in credit cards, lines
of credit, and loan product solutions in our Business Direct
lending unit, which focuses primarily on serving the credit
needs of businesses with less than $2million in annual sales.
Supporting the housing recovery
In housing and mortgage lending, our early expectations
for a rebound were validated. We have long believed
in the emotional attachment our customers have with
homeownership. Buying a home is the most important
financial decision many of them will ever make. So, we were
bullish about mortgage lending throughout 2012, well before
signs of a recovery had become more obvious to others.
We staed up and stepped up as others stepped back from
the market. As a result, we originated nearly one in three
U.S. home mortgages in2012 and serviced oneinsix.
Why were we bullish? Across the U.S., we saw prices
and inventory situations improving. We also know that
the best loans are made after— notbefore— a downturn,
as customers with improved balance sheets return to the
marketplace. In2012, this confidence translated into more
than 2million mortgage loans originated by WellsFargo—
$500billion of lending that helped customers refinance
into lower rates or buy homes.
And we still see room for growth in the mortgage
business, with refinancing of mortgages still an attractive
option for millions of customers and sales of new and
existing homes getting stronger. This can only be good
for the overall economy, because housing has led almost
every economic recovery in recent history.
Since the beginning of 2009 and through the end
of 2012, WellsFargo has also supported the housing
market’s recovery by:
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at historically low interest rates, and financing
2.8million mortgages for home purchases.
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mortgage modifications that gave families facing
foreclosure a second chance by making their mortgage
terms more favorable.
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for our customers, including forgiveness that
customers earned through making on-time payments.
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preservation events or workshops, where we met face
to face with more than 40,000 mortgage customers.
Our five strategic priorities
WellsFargo emerged from the financial crisis of 2008 as
astronger company. Our decision to merge with Wachovia
gave us a more diverse geography, a broader balance in
revenue streams, and a great team of people dedicated to
the customers they serve, all of which increased the value
of our franchise. As a combined company, we weathered
the storm because we managed with a long-term view—
investing heavily where the opportunities were greatest,
but also willingly ceding markets and share to others
when we believed the opportunities didn’t fit our view
of how we best help our customers succeed financially.
Getting this right attracts team members, customers, and
investors who share an interest in having a long-term
relationship with WellsFargo.
Indeed, our two teams have become One WellsFargo
with a shared understanding of our commitment to
customers. Our customers’ success comes first. When
we serve customers well, the money we earn is the result.
This is why we know never to put the stagecoach ahead
ofthe horses.
As we did last year, WellsFargo will continue to focus
on five strategic priorities in2013:
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