Wells Fargo and Co (WFC)’s 4th Quarter 2014 Earnings Conference Call Transcript

John Shrewsberry, Chief Financial Officer

Yes, it’s a good question. So, I’ll quantify for you our total securities exposure including what’s in trading and also in what’s in AFS because we had some corporate investments in energy names as well and the sum total of both of those is less than $1.5 billion at Wells Fargo; and much smaller portion in trading which of course is marked to market through the P&L every day and somewhat larger percentage of that sitting in AFS which we mark every day but the value change goes through OCI.

John Pancari, Evercore ISI

Okay. Alright. And then separately on the loan growth. I agree, good pickup that we saw in C&I for the quarter. As we look out into 2015, is it fair to assume that you should see some acceleration in the loan growth that you’re looking at for 2015 versus what you achieved in 2014? I think you are in the 4% to 5% for 2014. Is it fair to assume that that accelerates from there, the next year, for the full year 2015?

John Shrewsberry, Chief Financial Officer

I think knowing what we know about the economy today, we feel better about the next four quarters than a couple of the last four quarters. So, if our most recent quarter is the continuation of a two quarter trend, then yes, we’ll probably have higher loan growth or higher amounts originated. Now the denominator keeps growing as we grow the size of the portfolio and at some point the rate gets impacted by that, but yes, it feels like a good year for loan growth.

John Stumpf, Chairman and Chief Executive Officer

You know, John, we think if you’re going to grow revenues over the long run, you have to be growing households, cross-sell deposits and loans. And we sure plan for all of those.

John Pancari, Evercore ISI

And then my last question I know there was some questions around excess liquidity reinvestment and what you’ve been buying – buying treasuries and agencies. Do you have what directions and what yields that you purchased in the quarter, just to get an idea of what the ultimate impact could be on the margin?

John Shrewsberry, Chief Financial Officer

Yeah, we don’t lay it out quite that way. You will see in our tables what we’re talking about. It’s treasuries and agencies, the timeframe, I can tell you we’re in the intermediate part of the curve. So that will probably get you there.

John Pancari, Evercore ISI

Okay. All right. Thank you.