Wells Fargo 2014 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2014 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 268

  • 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
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268

Earnings Performance (continued)
Table 6 allocates the changes in net interest income on a this table, changes that are not solely due to either volume or
taxable-equivalent basis to changes in either average balances or rate are allocated to these categories on a pro-rata basis based on
average rates for both interest-earning assets and interest- the absolute value of the change due to average volume and
bearing liabilities. Because of the numerous simultaneous average rate.
volume and rate changes during any period, it is not possible to
precisely allocate such changes between volume and rate. For
Table 6: Analysis of Changes of Net Interest Income
Year ended December 31,
2014 over 2013 2013 over 2012
(in millions) Volume Rate Total Volume Rate Total
Increase (decrease) in interest income:
Federal funds sold, securities purchased under resale agreements and
other short-term investments $ 252 (68) 184 245 (134) 111
Trading assets 324 (18) 306 90 (64) 26
Investment securities:
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies 60 (1) 59 49 16 65
Securities of U.S. states and political subdivisions 140 (36) 104 223 (36) 187
Mortgage-backed securities:
Federal agencies 193 11 204 421 (283) 138
Residential and commercial (262) (129) (391) (185) (91) (276)
Total mortgage-backed securities (69) (118) (187) 236 (374) (138)
Other debt and equity securities (270) 71 (199) 217 (269) (52)
Total available-for-sale securities (139) (84) (223) 725 (663) 62
Held-to-maturity securities 643 (8) 635 22 — 22
Mortgages held for sale (643) 120 (523) (502) (33) (535)
Loans held for sale 82 (17) 65 (37) 9 (28)
Loans:
Commercial:
Commercial and industrial - U.S. 664 (602) 62 459 (633) (174)
Commercial and industrial - non U.S. 35 — 35 48 (126) (78)
Real estate mortgage 203 (336) (133) 77 (260) (183)
Real estate construction 52 (95) (43) (73) (37) (110)
Lease financing (7) (58) (65) (48) (136) (184)
Total commercial 947 (1,091) (144) 463 (1,192) (729)
Consumer:
Real estate 1-4 family first mortgage 320 (76) 244 825 (812) 13
Real estate 1-4 family junior lien mortgage (335) 7 (328) (454) 8 (446)
Credit card 332 (122) 210 243 (51) 192
Automobile 354 (342) 12 254 (279) (25)
Other revolving credit and installment (167) 270 103 (2) 98 96
Total consumer 504 (263) 241 866 (1,036) (170)
Total loans 1,451 (1,354) 97 1,329 (2,228) (899)
Other 17 7 24 (4) 30
Total increase (decrease) in interest income 1,987 (1,422) 565 1,868 (3,083) (1,215)
Increase (decrease) in interest expense:
Deposits:
Interest-bearing checking 2 2 4 3 — 3
Market rate and other savings 21 (68) (47) 55 (197) (142)
Savings certificates (114) (122) (236) (123) (100) (223)
Other time deposits 117 (104) 13 152 (183) (31)
Deposits in foreign offices 32 (7) 25 11 (8) 3
Total interest-bearing deposits 58 (299) (241) 98 (488) (390)
Short-term borrowings 7 (16) (9) 6 (29) (23)
Long-term debt 551 (648) (97) 171 (696) (525)
Other liabilities 50 25 75 61 1
Total increase (decrease) in interest expense 666 (938) (272) 336 (1,212) (876)
Increase (decrease) in net interest income on a taxable-equivalent
basis $ 1,321 (484) 837 1,532 (1,871) (339)
26
62
40