Wells Fargo 2012 Annual Report Download - page 239

Note 24: Operating Segments
We have three operating segments for management reporting:
Community Banking; Wholesale Banking; and Wealth,
Brokerage and Retirement. The results for these operating
segments 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. We define our operating segments
by product type and customer segment. If the management
structure and/or the allocation process changes, allocations,
transfers and assignments may change. In first quarter 2011, we
realigned a private equity business into Wholesale Banking from
Community Banking. In first quarter 2012, we modified internal
funds transfer rates and the allocation of funding. The prior
periods have been revised to reflect these changes.
Community Banking offers a complete line of diversified
financial products and services to consumers and small
businesses with annual sales generally up to $20 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 FundsSM, 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.
Wholesale Banking provides financial solutions to businesses
across the United States with annual sales generally in excess of
$20 million and to financial institutions globally. Wholesale
Banking provides a complete line of 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, investment management, 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 manages customer
investments through institutional separate accounts and mutual
funds, including the Wells Fargo Advantage Funds and Wells
Capital Management. 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, Brokerage and Retirement provides a full range of
financial advisory services to clients using a planning approach
to meet each client's needs. Wealth Management provides
affluent and high net worth clients with a complete range of
wealth management solutions, including financial planning,
private banking, credit, investment management and trust.
Abbot Downing, a Wells Fargo business, provides
comprehensive wealth management services to ultra high net
worth families and individuals as well as their endowments and
foundations. Brokerage serves customers' advisory, brokerage
and financial needs as part of one of the largest full-service
brokerage firms in the United States. Retirement is a national
leader in providing institutional retirement and trust services
(including 401(k) and pension plan record keeping) for
businesses, retail retirement solutions for individuals, and
reinsurance services for the life insurance industry.
Other includes corporate items (such as integration expenses
related to the Wachovia merger) not specific to a business
segment and elimination of certain items that are included in
more than one business segment.
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