Wells Fargo 2015 Annual Report Download - page 259

Note 24: Operating Segments
We have three reportable operating segments: Community
Banking; Wholesale Banking; and Wealth and Investment
Management (WIM) (formerly Wealth, Brokerage and
Retirement). We define our operating segments by product type
and customer segment and their results 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.
If the management structure and/or the allocation process
changes, allocations, transfers and assignments may change. A
number of business movements that impact operating segment
reporting were implemented in 2015. We realigned our asset
management business from Wholesale Banking to WIM; our
reinsurance business from WIM to Wholesale Banking; and our
strategic auto investment, business banking, and merchant
payment services businesses from Community Banking to
Wholesale Banking. Results for these operating segments were
revised for prior periods to reflect the impact of these
realignments.
Community Banking offers a complete line of diversified
financial products and services to consumers and small
businesses with annual sales generally up to $5 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
Funds
SM
, 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 offers private
label financing solutions for retail merchants across the United
States and purchases retail installment contracts from auto
dealers in the United States and Puerto Rico. Consumer and
business deposit products include checking accounts, savings
deposits, market rate accounts, Individual Retirement Accounts,
time deposits, global remittance 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.
The Community Banking segment also includes the results
of our Corporate Treasury activities net of allocations in support
of other segments and results of investments in our affiliated
venture capital partnerships.
Wholesale Banking provides financial solutions to businesses
across the United States with annual sales generally in excess of
$5 million and to financial institutions globally. Wholesale
Banking provides a complete line of business banking,
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, merchant payment processing,
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 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 and Investment Management (formerly Wealth,
Brokerage and Retirement) provides a full range of personalized
wealth management, investment and retirement products and
services to clients across U.S. based businesses
including Wells Fargo Advisors, The Private Bank, Abbot
Downing, Wells Fargo Institutional Retirement and Trust, and
Wells Fargo Asset Management. We deliver financial planning,
private banking, credit, investment management and fiduciary
services to high-net worth and ultra-high-net worth individuals
and families. We also serve customers’ brokerage needs, supply
retirement and trust services to institutional clients and provide
investment management capabilities delivered to global
institutional clients through separate accounts and the
Wells Fargo Funds.
Other includes items not assigned to a specific business
segment and elimination of certain items that are included in
more than one business segment, substantially all of which
represents products and services for Wealth and Investment
Management customers served through Community Banking
distribution channels.
Wells Fargo & Company
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