Attached files
Exhibit (99)
Wells Fargo & Company
Supplementary Consolidating Financial Information
As of December 31, 2010 and
For the Year Ended December 31, 2010
The “Bank” as noted herein refers to Wells Fargo Bank, National Association.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
SUPPLEMENTARY CONSOLIDATING FINANCIAL INFORMATION
The Board of Directors
Wells Fargo & Company
We have audited in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of Wells Fargo & Company and Subsidiaries as of December 31, 2010, and the related consolidated statement of income, change in equity and comprehensive income and cash flows for the year ended December 31, 2010 and the effectiveness of internal control over financial reporting as of December 31, 2010, and have issued our unqualified reports dated February 25, 2011.
Our audits were made for the purpose of forming an opinion on the consolidated financial statements of Wells Fargo & Company and Subsidiaries taken as a whole. The accompanying supplementary consolidating balance sheet information as of December 31, 2010, and related supplementary consolidating statement of income and change in stockholders’ equity for the year ended December 31, 2010, is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position, results of operations and cash flows of the individual companies. The supplementary consolidating financial information has been subjected to the auditing procedures applied in the audits of the consolidated financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as whole.
As discussed in Note 1 to the consolidated financial statements, Wells Fargo & Company adopted a new accounting standard related to its involvement with variable interest entities effective January 1, 2010.
/s/ KPMG LLP
San Francisco, CA
February 25, 2011
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Wells Fargo & Company
Supplementary Consolidating Income Statement Information
| Year ended December 31, 2010 | ||||||||||||
| (in millions) | The Bank | Other subsidiaries and eliminations |
Wells Fargo Consolidated |
|||||||||
| Interest income |
||||||||||||
| Trading assets |
$ | 268 | 830 | 1,098 | ||||||||
| Securities available for sale |
8,639 | 1,027 | 9,666 | |||||||||
| Mortgages held for sale |
1,013 | 723 | 1,736 | |||||||||
| Loans held for sale |
100 | 1 | 101 | |||||||||
| Loans |
33,813 | 5,947 | 39,760 | |||||||||
| Other interest income |
1,504 | (1,069 | ) | 435 | ||||||||
| Total interest income |
45,337 | 7,459 | 52,796 | |||||||||
| Interest expense |
||||||||||||
| Deposits |
2,871 | (39 | ) | 2,832 | ||||||||
| Short-term borrowings |
84 | 8 | 92 | |||||||||
| Long-term debt |
1,741 | 3,147 | 4,888 | |||||||||
| Other interest expense |
34 | 193 | 227 | |||||||||
| Total interest expense |
4,730 | 3,309 | 8,039 | |||||||||
| Net interest income |
40,607 | 4,150 | 44,757 | |||||||||
| Provision for credit losses |
13,766 | 1,987 | 15,753 | |||||||||
| Net interest income after provision for credit losses |
26,841 | 2,163 | 29,004 | |||||||||
| Noninterest income |
||||||||||||
| Service charges on deposit accounts |
4,924 | (8 | ) | 4,916 | ||||||||
| Trust and investment fees |
2,138 | 8,796 | 10,934 | |||||||||
| Card fees |
3,541 | 111 | 3,652 | |||||||||
| Other fees |
3,470 | 520 | 3,990 | |||||||||
| Mortgage banking |
9,658 | 79 | 9,737 | |||||||||
| Insurance |
97 | 2,029 | 2,126 | |||||||||
| Net gains from trading activities |
173 | 1,475 | 1,648 | |||||||||
| Net gains (losses) on debt securities available for sale |
(346 | ) | 22 | (324 | ) | |||||||
| Net gains from equity investments |
7 | 772 | 779 | |||||||||
| Operating leases |
811 | 4 | 815 | |||||||||
| Other |
3,924 | (1,744 | ) | 2,180 | ||||||||
| Total noninterest income |
28,397 | 12,056 | 40,453 | |||||||||
| Noninterest expense |
||||||||||||
| Salaries |
12,155 | 1,714 | 13,869 | |||||||||
| Commission and incentive compensation |
3,888 | 4,804 | 8,692 | |||||||||
| Employee benefits |
3,580 | 1,071 | 4,651 | |||||||||
| Equipment |
2,483 | 153 | 2,636 | |||||||||
| Net occupancy |
2,551 | 479 | 3,030 | |||||||||
| Core deposit and other intangibles |
2,094 | 105 | 2,199 | |||||||||
| FDIC and other deposit assessments |
1,130 | 67 | 1,197 | |||||||||
| Other |
10,828 | 3,354 | 14,182 | |||||||||
| Total noninterest expense |
38,709 | 11,747 | 50,456 | |||||||||
| Income before income tax expense |
16,529 | 2,472 | 19,001 | |||||||||
| Income tax expense |
5,544 | 794 | 6,338 | |||||||||
| Net income before noncontrolling interests |
10,985 | 1,678 | 12,663 | |||||||||
| Less: Net income from noncontrolling interests |
273 | 28 | 301 | |||||||||
| Net income |
$ | 10,712 | 1,650 | 12,362 | ||||||||
| Net income applicable to common stock |
$ | 10,712 | 920 | 11,632 | ||||||||
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Wells Fargo & Company
Supplementary Consolidating Balance Sheet Information
| December 31, 2010 | ||||||||||||
| (in millions) | The Bank | Other subsidiaries and eliminations |
Wells Fargo Consolidated |
|||||||||
| Assets |
||||||||||||
| Cash and due from banks |
$ | 17,518 | (1,474 | ) | 16,044 | |||||||
| Federal funds sold, securities purchased under |
76,699 | 3,938 | 80,637 | |||||||||
| Trading assets |
30,824 | 20,590 | 51,414 | |||||||||
| Securities available for sale |
150,439 | 22,215 | 172,654 | |||||||||
| Mortgages held for sale |
36,843 | 14,920 | 51,763 | |||||||||
| Loans held for sale |
1,252 | 38 | 1,290 | |||||||||
| Loans |
691,483 | 65,784 | 757,267 | |||||||||
| Allowance for loan losses |
(19,637 | ) | (3,385 | ) | (23,022 | ) | ||||||
| Net loans |
671,846 | 62,399 | 734,245 | |||||||||
| Mortgage servicing rights: |
||||||||||||
| Measured at fair value |
14,748 | (281 | ) | 14,467 | ||||||||
| Amortized |
1,420 | (1 | ) | 1,419 | ||||||||
| Premises and equipment, net |
8,129 | 1,515 | 9,644 | |||||||||
| Goodwill |
20,931 | 3,839 | 24,770 | |||||||||
| Other assets |
71,629 | 28,152 | 99,781 | |||||||||
| Total assets |
$ | 1,102,278 | 155,850 | 1,258,128 | ||||||||
| Liabilities |
||||||||||||
| Noninterest-bearing deposits |
$ | 167,588 | 23,668 | 191,256 | ||||||||
| Interest-bearing deposits |
679,389 | (22,703 | ) | 656,686 | ||||||||
| Total deposits |
846,977 | 965 | 847,942 | |||||||||
| Short-term borrowings |
30,206 | 25,195 | 55,401 | |||||||||
| Accrued expenses and other liabilities |
55,421 | 14,492 | 69,913 | |||||||||
| Long-term debt |
46,112 | 110,871 | 156,983 | |||||||||
| Total liabilities |
978,716 | 151,523 | 1,130,239 | |||||||||
| Equity |
||||||||||||
| Wells Fargo stockholders’ equity: |
||||||||||||
| Preferred stock |
- | 8,689 | 8,689 | |||||||||
| Common stock |
519 | 8,268 | 8,787 | |||||||||
| Additional paid-in capital |
98,971 | (45,545 | ) | 53,426 | ||||||||
| Retained earnings |
17,489 | 34,429 | 51,918 | |||||||||
| Cumulative other comprehensive income (loss) |
5,280 | (542 | ) | 4,738 | ||||||||
| Treasury stock |
- | (487 | ) | (487 | ) | |||||||
| Unearned ESOP shares |
- | (663 | ) | (663 | ) | |||||||
| Total stockholders’ equity |
122,259 | 4,149 | 126,408 | |||||||||
| Noncontrolling interests |
1,303 | 178 | 1,481 | |||||||||
| Total equity |
123,562 | 4,327 | 127,889 | |||||||||
| Total liabilities and equity |
$ | 1,102,278 | 155,850 | 1,258,128 | ||||||||
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Wells Fargo & Company
Supplementary Consolidating Statement of Changes in Stockholders’ Equity Information
| Year ended December 31, 2010 | ||||||||||||
| (in millions) | The Bank | Other subsidiaries and eliminations |
Wells Fargo Consolidated |
|||||||||
| Preferred stock |
||||||||||||
| Balance, December 31, 2009 |
$ | - | 8,485 | 8,485 | ||||||||
| Preferred stock issued to ESOP |
- | 1,000 | 1,000 | |||||||||
| Preferred stock converted to common shares |
- | (796 | ) | (796 | ) | |||||||
| Balance, December 31, 2010 |
- | 8,689 | 8,689 | |||||||||
| Common stock |
||||||||||||
| Balance, December 31, 2009 |
520 | 8,223 | 8,743 | |||||||||
| Issued/converted |
(1 | ) | 45 | 44 | ||||||||
| Balance, December 31, 2010 |
519 | 8,268 | 8,787 | |||||||||
| Additional paid-in capital |
||||||||||||
| Balance, December 31, 2009 |
38,209 | 14,669 | 52,878 | |||||||||
| Business combinations |
60,797 | (60,797 | ) | - | ||||||||
| Capital infusion |
262 | (262 | ) | - | ||||||||
| Capital stock |
(287 | ) | 287 | - | ||||||||
| Common stock issued |
- | 375 | 375 | |||||||||
| Preferred stock issued to ESOP |
- | 80 | 80 | |||||||||
| Preferred stock released by ESOP |
- | (63 | ) | (63 | ) | |||||||
| Preferred stock converted to common shares |
- | 212 | 212 | |||||||||
| Common stock warrants repurchased |
- | (545 | ) | (545 | ) | |||||||
| Common stock dividends |
- | 4 | 4 | |||||||||
| Tax benefit upon exercise of stock options |
- | 97 | 97 | |||||||||
| Stock option compensation expense |
- | 436 | 436 | |||||||||
| Purchase accounting adjustment |
(10 | ) | 10 | - | ||||||||
| Net change in deferred compensation and related plans |
- | (48 | ) | (48 | ) | |||||||
| Balance, December 31, 2010 |
98,971 | (45,545 | ) | 53,426 | ||||||||
| Retained earnings |
||||||||||||
| Balance, December 31, 2009 |
17,234 | 24,329 | 41,563 | |||||||||
| Cumulative effect from changes in accounting |
168 | (13 | ) | 155 | ||||||||
| Net income |
10,712 | 1,650 | 12,362 | |||||||||
| Business combinations |
1,925 | (1,925 | ) | - | ||||||||
| Common stock issued |
- | (376 | ) | (376 | ) | |||||||
| Common stock dividends |
(12,550 | ) | 11,501 | (1,049 | ) | |||||||
| Preferred stock dividends |
- | (737 | ) | (737 | ) | |||||||
| Balance, December 31, 2010 |
17,489 | 34,429 | 51,918 | |||||||||
| Cumulative other comprehensive income |
||||||||||||
| Balance, December 31, 2009 |
452 | 2,557 | 3,009 | |||||||||
| Other comprehensive income |
4,828 | (4,828 | ) | - | ||||||||
| Unrealized losses related to factors other than credit |
- | 45 | 45 | |||||||||
| Net unrealized gains on securities available for sale |
- | 1,525 | 1,525 | |||||||||
| Net unrealized gains on derivatives and hedging activities |
- | 89 | 89 | |||||||||
| Unamortized gains under defined benefit plans, net of amortization |
- | 70 | 70 | |||||||||
| Balance, December 31, 2010 |
5,280 | (542 | ) | 4,738 | ||||||||
| Treasury stock |
||||||||||||
| Balance, December 31, 2009 |
- | (2,450 | ) | (2,450 | ) | |||||||
| Common stock issued |
- | 1,349 | 1,349 | |||||||||
| Common stock repurchased |
- | (91 | ) | (91 | ) | |||||||
| Preferred stock converted to common shares |
- | 567 | 567 | |||||||||
| Net change in deferred compensation and related plans |
- | 138 | 138 | |||||||||
| Balance, December 31, 2010 |
- | (487 | ) | (487 | ) | |||||||
| Unearned ESOP shares |
||||||||||||
| Balance, December 31, 2009 |
- | (442 | ) | (442 | ) | |||||||
| Preferred stock issued to ESOP |
- | (1,080 | ) | (1,080 | ) | |||||||
| Preferred stock released by ESOP |
- | 859 | 859 | |||||||||
| Balance, December 31, 2010 |
- | (663 | ) | (663 | ) | |||||||
| Total Wells Fargo stockholders’ equity |
||||||||||||
| Balance, December 31, 2009 |
56,415 | 55,371 | 111,786 | |||||||||
| Balance, December 31, 2010 |
122,259 | 4,149 | 126,408 | |||||||||
| Noncontrolling interests |
||||||||||||
| Balance, December 31, 2009 |
178 | 2,395 | 2,573 | |||||||||
| Business combinations |
1,425 | (1,425 | ) | - | ||||||||
| Net income |
273 | 28 | 301 | |||||||||
| Translation adjustments |
- | 12 | 12 | |||||||||
| All other net unrealized gains, net of reclassification of net gains included in net income |
- | 13 | 13 | |||||||||
| Noncontrolling interests |
(573 | ) | (845 | ) | (1,418 | ) | ||||||
| Balance, December 31, 2010 |
1,303 | 178 | 1,481 | |||||||||
| Total stockholders’ equity, December 31, 2010 |
$ | 123,562 | 4,327 | 127,889 | ||||||||
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