One hundred years ago thispast spring, a golden spike wasdriven at Promontory Point,Utah, signaling Ihe beginningof the transcontinentalrailroad and a close to the short,but colorful career of theOverland Stage. In slaging'sheyday, a passenger couldboard the Overland in St. Joseph,Missouri and, for a fare01 $155 and lucl<, arrive inSacramento twenty days laler.

Contents

Brief Comparison

Stockholders Letter

Financial Review

Summary of Operations

Financial Statements:

Wells Fargo & Company Consolidated Statement of Condition

Wells Fargo & Company Consolidated Statement of Earnings

Wells Fargo & Company Statement of Consolidated Capital Accounts

Wells Fargo Bank Consolidated Statement of Condition

Noles to Consolidated Financial Statements

Accountants' Report

Comparison of Significant Items

Daily Average Balances

Comparison of Loans

Average Annual Yields on Earning Assets

Comparison of Investments

Maturity Schedule of Investment Securities

Organization

Banking Offices

2

3

6

9

11

12-13

14

15

16-17

18-19

19

20

20

21

21

22

22

28

32

-----~----~------------------~----~---------------------,-----------------------------------------------------_.----.

Brief Comparison To our Stockholders:

For the Year 1969 1968 Change

Income Before Security Losses $ 32,046,614 $ 30,344,698 $ 1,701,916

Security Losses Net of Tax (18,689) (838,049) 819,360

Net Income $ 32,027,925 $ 29,506,649 $ 2,521,276

Income Per Share*

Income Before Security Losses $3.51 $3.36 $ .15

Net Income $3.50 $3.27 $ .23

Dividends Declared $ 14,631,201 $ 13,119,531 $ 1,511,670

Year-End Annual Dividend Rate $1.60 $1.60

'Based on average number of shares outstanding.

At the Year End

Assets $5,935,169,426 $5,423,463,807 $511,705,619

Deposits 4,639,803,049 4,733,841,373 (94,038,324)

Loans 3,672,368,090 3,276,148,194 396,219,896

Investments 1,097,919,830 1,183,072,660 (85,152,830)

Capital Notes $ 75,075,400 $ 75,146,100 $ (70,700)

Common Stock 91,565,520 91,058,410 507,110

Capital Surplus 160,108,345 159,546,510 561,835

Retained Earnings 56,677,024 48,045,251 8,631,773

Total Capital Funds $ 383,426,289 $ 373,796,271 $ 9,630,018

Book Value Per Share(Excluding Capital Notes) $33.68 $32.80 $ .88

2

For banking, 1969 was characterized bysteadily tightening monetary policies duringa period of strong credit demands. Theresulting shortage of loan funds raised thecost of money to banks and to borrowers,caused a flight of funds from savingsdeposits to higher yielding investments anddeposit instruments, and limited theability of banks to meet all the credit needsof their customers.

This environment of tightened credit hasbeen the objective of monetary policy in aneffort to control inflation. There is someevidence that these policies are working.However, it is well to remember that with theadoption of monetary policy as theprincipal weapon to fight inflation, thebanking industry has had the responsibilityof implementing these restrictive FederalReserve policies.

Large money market banks, such as WellsFargo, which were responding to nationalas well as regional loan demand at the timethe restrictions were imposed, havebeen confronted with difficult problems inaccommodating customer credit needs.

Monetary policy continues tight into 1970and the Federal Reserve is making itprogressively more difficult for banks tosecure funds. Reserves have been appliedagainst Eurodollar holdings. Ceilingshave been applied to loan participationagreements and now rulings are beingconsidered to restrict the issuance ofcommercial paper by the banking industry.

The problems created in the fight againstinflation warrant mention here since thisinformation is essential to an understandingof the year's results. These monetaryactions forced us into an increasinglyrestrictive loan policy. Although we are stillmeeting the more urgent credit needs ofour customers, speculative or non-essentialloans are discouraged. We continued totake care of the normal needs of oursmall business customers. In the real estatearea we made $305 million in mortgageloans, largely to take care of customerhousing needs.

To meet customer loan commitments and

maintain liquidity, we reduced our bondportfolio, purchased Eurodollars andFederal funds and, through the holdingcompany, sold commercial paper.

The interest ceiling imposed by regulatoryauthorities on savings accounts and othertime deposits during a period when higherinterest rates were available from competi­tive investment media, limited the Bank'sability to attract new domestic deposits.

Funds purchased at the high market ratesto meet loan commitments had an adverseeffect on earnings. Interest paid for depositsand other borrowed funds now totals$170 million, a $40 million gain over 1968.

Primarily because of these high moneycosts, earnings did not increase as much asanticipated over the previous year eventhough loan yield and credit demands werestrong. Net earnings for Wells Fargo &Company were $32,027,925, equal to $3.50per share, compared to $29,506,649 or$3.27 per share a year ago, an increaseof seven per cent.

The 1969 Tax Reform Bill, passed late inthe year, also had an adverse effect,reducing net earnings approximately tencents a share. This was due to an adjust­ment of the income tax rate on securitygains and losses retroactive to July 12, 1969.

The year was eventful in other respects.Our newly-formed holding company, WellsFargo & Company, became operationalFebruary 28. The uncertainty of pendinggovernment legislation which will determinethe areas of business in which one-bankholding companies will be permitted tooperate has slowed commitments to newventures. However, the operating staff hasbeen strengthened by additional personnelincluding the appointment of LeonardMarks Jr. as a senior vice president. Wehave also developed a plan to expandour financial services.

Late in the year, the holding companyorganized a subsidiary, Wells FargoSecurities Clearance Corporation, tohandle the Bank's stock and bond securitiesclearance transactions. Approved by theComptroller of the Currency, the Corpora-

tion will open in New York's financialdistrict in February. At the outset, weintend to serve only a very limited numberof customers but ultimately we hope toserve a broadened clientele of brokeragehouses and banks.

In early 1970, we listed the stock of WellsFargo & Company on both the New Yorkand Pacific Coast stock exchanges.

A number of major international expansionmoves were made during the year includingestablishment of international repre­sentatives in London and Buenos Aires, abranch in Luxembourg and minorityinterests in banks and financial firms inMexico, Australia and Hong Kong.

In Southern California, nineteen brancheswere in operation by year end Includingthree branches acquired through mergerwith the Channel Islands State Bank inVentura, giVing us entry into this importantSouthern California County. In August, twooffices were opened in San Diego County.

We are hopeful of a merger in early 1970with the Los Padres National Bank of SantaMaria. Located in the northern part ofSanta Barbara County, the bank has twooffices and approximately $1 0 million indeposits. The merger has been approved bystockholders of both banks and if approvedby regulatory authorities, will extendWells Fargo coverage to six of SouthernCalifornia's ten counties.

Long range planning for Southern Californiaincludes a goal of fifty new branches at theend of 1972. By 1975, we expect to haveup to 100 banking offices in the southernpart of the state. With the present stronggeographical coverage in NorthernCalifornia, future expansion in this regionis being concentrated in areas of greatestpopulation growth.

We were extremely saddened by thesudden deaths of two of our directors.Mr. H. Stephen Chase, who retired as ourchairman of the board in 1968, died of aheart attack while vacationing in Europe.The same week, Mr. Paul A. Bissinger,president of Bissinger & Company; passedaway while vacationing in London. The

vital contributions and personal warmth ofthese two gentlemen, both with manyyears of service, will be deeply missed.

In December, Mr. Richard E. Guggenhime,partner of Heller, Ehrman, White &McAuliffe, San Francisco attorneys, waselected to the board of directors.

For the coming year, we expect money andcredit conditions to remain relatively tightand although our loan policy is moreselective it is still structured to meet theessential requirements of our customers.We do not expect substantially lower interestrates during 1970. Not only is the presentloan demand still strong, but there is abacklog of capital needs by city and stategovernments, corporations, home buildersand home buyers that are awaiting easiercredit. In addition, the demand for creditby projects in the fields of anti-pollution,transportation and urban development willincrease. The nation-like California-maywell be faced with a shortage of loanablefunds in the immediate years ahead.

In the Seventies we expect to round outour geographical coverage in SouthernCalifornia, expand our overseas operations,contemplate a far stronger trend towardsfee services for corporate accounts; andforesee a variety of new consumerservices and a greater role in financiallyrelated fields.

Many important achievements and goalswere reached in 1969 through the combinedefforts of our staff and directors. We wantto express our thanks to each of themfor helping us to meet the changes andchallenges of a difficult year.

Ernest C. Arbuckle, C/Jairman of tile Board

January 19, 1970Ernesl C. Arbuckle (lell)

and Richard P. Cooley

Financial Review

EARNINGS:

Earnings are now reported under new rulesprescribed by regulatory authorities: (1)Operating expense includes a reasonableprovision for loan losses based on ourfive-year loss average. (2) The term, NetOperating Earnings, has been replaced byIncome Before Security Losses, whichincludes the loan loss provision. (3) Thefinal item after deducting security losses islabeled Net Income.

We are now required to show additionalper share earnings information, i.e., incomeper share assuming full dilution. Tocompute this figure, shares committed forfuture issuance are added to currentaverage outstanding shares. These includeshares reserved for the recent acquisitionof Sonoma Mortgage Corporation and forconversion of convertible capital notes.

The 1969 Tax Reform Bill will have asignificant effect on the taxation of banks.These changes reduced earnings byapproximately ten cents per share. Oneprovision in the law was a change in incometax rates on security gains and lossesretroactive to July 12, 1969. Earnings forthe first three quarters of 1969 have beenrestated to reflect these adjustments.All references in the comments will beto Net Income.

With a higher loan yield and two majoroperations entering the profit column - theBank's credit card and the SouthernCalifornia expansion program-expecta­tions were high for a good earnings year.

First quarter earnings did in fact show again of 19 per cent over the same period ofa year ago. But the forecasted slowingof the economy did not occur, strong loandemand continued and a money shortagesoon developed. The high costs of securingfunds to meet the more urgent credit needsof our customers had an adverse effect onearnings gains.

Second quarter gains slowed to an 8.2per cent increase, and third quarterearnings were only 0.2 per cent above thesame period a year ago. Fourth quarterearnings were up 3.6 per cent, largely as a

6

result of security losses incurred in thesame quarter a year ago. For the entireyear, earnings increased 7.0 per cent to$32 million or $3.50 per share comparedto $29.5 million or $3.27 per share in 1968.

DEPOSITS:

High interest rates in the money marketcaused a substantial movement of fundsfrom savings and time deposits into suchinstruments as treasury bills and commer­cial paper. Banks were severely restrictedin attracting new deposits because ofgovernment ceilings on bank interest rates.

While a year ago certificates of depositincreased by $106 million, in 1969 theydecreased by $147 million, a $253 millionswing. Other time deposits, largely public,were down $212 million from a year agoand the growth of commercial demanddeposits slowed considerably.

A drop of $117 million in four per centpassbook savings was almost entirely offsetby a similar gain in five per cent consumertime deposits which were found to beattractive to many customers.

Foreign deposits were $206 million. Theseare primarily Eurodollars purchasedthrough our Luxembourg office at ratesranging from 7% to 11 7/16 per cent.

Total deposits were down two per cent to$4.6 billion, compared to a year ago whendeposits increased 16 per cent. Totalassets of the parent firm, Wells Fargo &Company, were $5.9 billion, up from $5.4billion a year ago.

LOANS:

The slowing in deposit growth, coupledwith heavy loan demands, forced the Bankto make further lending restrictions.Despite a restrictive credit policy, loancommitments and the necessary loan needsof our customers were met. However, morethan $500 million in loans, which undernormal circumstances would have beengranted, were turned down because of thelack of funds.

For the year, total loans (bank and parentcompany) were up $396 million to $3.7billion. Commercial loans increased $280

From left: James K. Dobey,Ralph J. Crawlord, Jr., John R.

Breeden, executive vicepresidents, and Robert L.

Kemper, senior vice president.

INCOME AND DIVIDENDS

- } Nellncome_ Total DIvIdends

Millions 01 Oollars

YEAR END DEPOSITS

_ Domand oOPOSUS}Total Dcposits

_ TIme Deposits

Millions of Dollars

Summary of Operations

SANJOAQUINCOUNTY

SANTA CLARA COUNTY

CONTRA COSTA COUNTY

The card is gaining rapid acceptanceoverseas and at present is strong in Japan,Mexico, and a number of countries inWestern Europe.

In California, Wells Fargo has 372,000individual credit accounts with usagepassing the halfway mark, moving from1968's 44 per cent to a current 53 per cent.The Bank's cardholder volume exceeded$60 million this year and the Bank'smerchant sales volume topped $40 million.

Recent increases in new cardholderaccounts have been concentrated in theSouthern California area. But thesesources of new accounts may slow as threelarge Southern California-basedbanks are expected to offer the card totheir customers in early 1970.

In the final quarter of 1969 the credit cardbegan making a modest contribution toprofit after considering all expenses,including the cost of funds used in thisactivity. The operation reached the"break-even" point for 1969.

•MARIN COUNTY

MASTER CHARGE:

In the brief span since its founding by WellsFargo and three other California banks,Master Charge has developed into one ofthe nation's largest bank credit cardswith 21 million cardholders, 600,000 retailaccounts and representation in 49 states.

Master Charge is becoming increasinglythe all-purpose charge card, not only forretail purchases and personal loans, butalso for travel and entertainment. For manyconsumers, it is considered a chargefacility rather than an extension of credit.The nearly 50 million bank credit cardsin circulation in the United States todayaccount for less than two per cent ofconsumer debt.

This past year the card was made availableto millions of New Yorkers by some of thenation's largest banks, and in New England,the Mid-Atlantic, Southwest and MountainStates through newly-formed regionalassociations similar to Western StatesBankcard Association. Chicago is the lastmajor city where the card is being introduced.

Ready tor BART! Reddots indicate new, remodeled

or relocated banking olticesadjacent to the Bay Area Rapid

Transit system. High speedtrains linking San Francisco

and the East Bay arescheduled to begin operationin 1972. (Black dots indicate

other Bay Area oltices.)

19691968196719661965

_ Monthly Payment loans

_ Real Estate Loans

_ COmmercial Loans

Millions 01 Dollars

YEAR END LOANS

These rates were generally more favorablethan the rates paid for Eurodollars.

The cash position was also bolstered byfurther purchases of Federal funds andrepurchase agreements. The latterinvolves overnight selling of securitiesusually at 1114 to 1Y2 per cent under theFederal funds rate. Rates of the latteraveraged 7114 per cent.

Municipal underwriting activity was sub­stantially reduced as the average rate onhigh grade municipal bonds increasedby over 50 per cent to 6.88 per cent. Manystates and municipalities found it impos­sible to sell bonds in the market becauseyields available to investors exceeded themaximum rate of interest the localgovernments were authorized to pay.

The average maturity of government bondswas 25 months compared to 28 months ayear ago. The average maturity of municipalbonds was down to 11 years, eight monthsfrom 11 years, ten months a year ago.The total yield on the portfolio was sevenper cent on a taxable equivalent basis,up from 6.8 per cent a year ago.

1964

4000 I,....,..-_~----~_------n",....,.......,.."....".,j

196919GB196719661965

million to $1.9 billion. Consumer loansgained $42 million to $449 million and realestate loans were $1.3 billion, up $74million over a year ago.

INVESTMENTS:

To obtain funds for liquidity purposes andloan commitments, government obligationswere sold and maturing municipal bondswere not reinvested. This meant areduction in the bond portfolio by $85million from $1,183 million at the end of1968 to $1,098 million in December 1969.

Funds were also generated by theparent firm, Wells Fargo & Company, whichentered the commercial paper market inAugust. At year end, $230 million incommercial paper was outstanding and soldat rates ranging from 77/8 to 9 per cent.

CAPITAL ACCOUNTS AND RESERVES:

Capital funds increased $9.6 million to$383 million. The Reserve for Loan Lossesrose to $67.8 million, a $17.7 millionincl'ease. Net loan losses were $5.7 million,less than two-tenths of one per cent ofthe average loans outstanding.

_ Passbook Savings Ocposi1s

_ Term Certificates of Individuals

YEAR END SAVINGS DEPOSITS

MillIons of Dollars

500

1000

1500

2000 1--~+".,....-="4~--i±:

8 9

VENTURACOUNTY

.OakView

LOS ANGELES COUNTYSAN BERNARDINO COUNTY

Financial Statements

• Crescenta Valley~ Panorama City.

enlura (2) • EncinoCanoga Park South Paaa

HollywoodBeverly Hills.

1:08 Ang~1 .(3) (4)

58nt Monies • WhltUer

ORANGE COUNTY:p.naheim

EXPANSION/SOUTHERN CALIFORNIA:

Wells Fargo now has nineteen offices inSouthern California. Since enteringthe market two years ago, the expansionprogram has moved at a rapid pacewith more than 850 staff members nowemployed in the Southland.

By year end, deposits exceeded $165million and loans topped $230 million. InDecember 1968, ending our first fullyear in Southern California, there was a netloss of $75,900 in the operation. Finalfigures for 1969 are not yet available, butwe expect that our Southern Californiaoperation made a contribution to profit inexcess of ten cents a share.

Banking offices were established in twonew counties: San Diego and Ventura. OnAugust 22, offices were opened in SanDiego and La Jolla. Three offices wereadded in Ventura County through mergerwith the $12 million Channel Islands StateBank. A merger is also pending with theLos Padres National Bank, Santa Maria,which, if approved by regulatory authorities,

10

Ban Bernardino

SAN DIEGO COUNTY

.LaJoliaSan Diego (Mission Valley)

.San Diego

will mark our entry into Santa BarbaraCounty. The Santa Maria bank has twooffices and assets in excess of $11 million.

Other new Southern California officesinclude Encino in the San Fernando Valley;Westchester, near the Los AngelesInternational Airport; Crescenta Valley, northof Los Angeles; Beverly Hills and Whittier.

Approved offices are scheduled to open inLong Beach, Hollywood, Pomona, SanMarino, Century City, San Bernardino,Mission Valley (San Diego), West Covina,Santa Monica, Anaheim and two onWilshire Boulevard, Los Angeles. At yearend, applications were pending withregulatory authorities for offices inRossmoor Leisure World, Orange Countyand Canoga Park, Los Angeles County.

Before entering Southern California, theBank conducted a "bench mark" survey tomeasure public awareness of Wells FargoBank. Two years later, an identical surveywas taken to determine our progress inthe market. To the question, "What banksare you familiar with?", four times as

WELLS FARGO & COMPANY AND SUBSIDIARIES

Consolidated Statement of Condition

December 31, December 31, December 31, December 31,Assets 1969 1968 Change Liabilities and Capital 1969 1968 Change

(UnaUdited) (UnaUdited)

Cash and Due from Banks $ 828,343,069 $ 691,852,613 $136,490,~56 Demand Deposits $1,916,559,292 $1,840,121,432 $ 76,437,860Savings Deposits 1,473,975,264 1,591,157,503 (117,182,239)Savings Certificates 570,931,727 471,197,878 99,733,849

Investment Securities: Certificates of Deposit 178,195,351 325,515,567 (147,320,216)Other Time Deposits 294,124,033 505,848,993 (211,724,960)

U.S. Treasury Securities 471,153,848 518,396,591 (47,242,743) Foreign Deposits 206,017,382 206,017,382

Total Deposits 4,639,803,049 4,733,841,373 (94,038,324)Obligations of States andPolitical Subdivisions 557,971,504 593,272,856 (35,301,352) Funds Borrowed 424,789,683 101,794,303 322,995,380

Commercial Paper Outstanding 230,168,539 230,168,539Other Securities 68,794,478 71,403,213 (2,608,735) Mortgages Payable (Note 3) 21,805,905 22,848,325 (1,042,420)

Acceptances Outstanding 25,040,293 10,291,285 14,749,008Accrued Taxes and Other Expenses 41,271,994 30,651,139 10,620,855

Total Investment Securities (Nole 2) 1,097,919,830 1,183,072,660 (85,152,830) Reserve for Unearned Discount 45,870,395 41,630,825 4,239,570Other Liabilities 55,195,750 58,511,169 (3.315,419)

Trading Account Securities (Note 2) 34,198,876 36,045,179 (1,846,303) Total Liabilities 5,483,945,608 4,999,568,419 484,377,189

Funds Sold 30,192,500 37,445,000 (7,252,500) Reserve for Loan Losses (Note 4) 67,797,529 50,099,117 17,698,412

Capital AccountsBorrowed Capital:

Loans 3,672,368,090 3,276,148,194 396,219,896 4V2 % Capital Notes due 1989 (Note 5) 50,000,000 50,000,0003% % Convertible Notes due 1989 (Nole 5) 25,075,400 25,146,100 (70,700)

Direct Lease Financing 32,706,150 28,722,925 3,983,225 Total Borrowed Capital 75,075,400 75,146,100 (70,700)

Bank Premises and Equipment (Notes 2 and 3) 102,132,658 87,662,605 14,470,053 Equity Capital:Common Stock-$10 par value, authorized

Customers' Acceptance Liability 25,040,293 10,291,285 14,749,00812,000,000 shares, outstanding 9,156,552shares on December 31, 1969 (Note 6) 91,565,520 91,058,410 507,110Capital Surplus 160,108,345 159,546,510 561,835

Accrued Interest Receivable 51,861,233 33,475,711 18,385,522 Retained Earnings (Note 5) 56,677,024 48,045,251 8,631,773

Other Assets 60,406,727 38.747,635 21,659,092Total Equity Capital 308,350,889 298,650,171 9,700,718

Total Capital Accounts 383,426,289 373,796,271 9,630,018

Total Assets $5,935,169,426 $5,423,463,807 $511,705,619 Total Liabilities and Capital $5,935,169,426 $5,423,463,807 $511,705,619

The accompanying notes are an Integral part of these statements.The accompanying notes are an integral part of these statements.

12 13

WELLS FARGO & COMPANY AND Sl/BSlDIARl£S

Consolidated Statement of Earnings Statement of Consolidated Capital AccountsFor the Two Years Ended December 31, 1969

$25,347,300 $50.000,000 $89,215,670 $110,784,330 $ 80,638,552

29,506,649

$25,146,100 $50,000,000 $91,058,410 $159,546,510 $48,045,251

$ 1,842,740 $ 48,762,180 $(32.593,301)

746,621

117,548

RetainedEarnings

32,027,925

57,475

(55,640)

(2,728,600)

294,840

560,000

166,600

1,302,300

CapitalSurplus

47,293,280 (47,293,280)

(13,119,531)

55,640

33,320

11,470

440,000

1,809,420

CommonStock

41/2%CapitalNotes

(70,700)

(201,200)

3%%Convertible

Notes

$ (201,200) $

Cash Dividends Declared

Capital Accounts of ChannelIslands State Bank-merged May 29, 1969

Additional Stock Issued inPayment for Assets ofSonoma Mortgage Corporation

Conversion of ConvertibleNotes (Note 5)

Conversion of ConvertibleNotes (Note 5)

Capital Accounts of MergedBanks and Sonoma MortgageCorporation

Net Income-1968

Other- Net of Tax

BALANCEDECEMBER 31, 1967(UnaUdited)

Transfer to Surplus fromUndivided Profits

Provision for Losses onLoans, Exclusive of PortionCharged Against Income. LessRelated Income Tax Effect$3,411,973 (Notes 4 and 9)

Net Increase (Decrease)(UnaUdited)

Net Income-1969

BALANCEDECEMBER 31,1968(Unaudited)

Year Ended Year EndedDecember 31, December 31,

1969 1968 Change(Unaudited)

INCOMEInterest and Fees on Loans $271,371,173 $206.388,793 $64,982,380Interest and Dividends on Investment Securities:

U. S. Treasury Securities 24,050.945 22.812,360 1,238.585

Obligations of States and Political Subdivisions 21,102,260 21,704,917 (602,657)

Other Securities 3,962,499 4,348,167 (385,668)Trading Account Income 663.209 1.357,494 (694,285)

Trust Inoome 10,101,213 8,792,170 1,309,043Service Charges on Deposit Accounts 17,813,670 16,203,173 1,610,497Other Income 11,204,764 9,714,742 1,490,022

Total Income 360,269.733 291,321,816 68,947,917

EXPENSESSalaries 68.598,672 57,226,041 11,372,631Pension and Other Employee Benefits (Note 8) 12,669.128 10,269.661 2,399,467

Interest on Deposits 138.169.155 119,412,198 18,756,957Interest on Borrowed Money 32,200,507 10,928,431 21,272,076Interest on Capital Notes 3,065,230 3,071,899 (6.669)Net Occupancy Expense of Bank Premises (Note 2) 12,965,854 11,297,234 1,668,620Equipment Expenses 8,113,978 7,095.918 1,018,060Provision for Losses on Loans (Noles 1 and 4) 5.945,400 6,085,000 (139.600)Other Expenses 30,306,695 25,748,536 4,558,159

Total Expenses 312,034,619 251,134,918 60.899,701

INCOME BEFORE INCOME TAXESAND SECURITY LOSSES (Note 1) 48,235.114 40,186,898 8,048.216

Less Applicable Income Taxes (Note 9) 16,188,500 9,842,200 6,346,300

INCOME BEFORE SECURITY LOSSES $ 32,046,614 $ 30,344,698 $ 1,701,916

Security Losses Less Related Reduction ofIncome Taxes of $24,500 and $1,168,700 (18,689) (838,049) 819,360

NET INCOME (Note 1) $ 32,027,925 $ 29,506,649 $ 2,521,276

Cash Dividends Declared (14.631,201 )

The accompanying notes are an integral part of these statements.

$25,075,400 $50,000.000 $91,565,520 $160,108,345 $56,677,024

INCOME PER SHARE (Note 10):

Income Before Security Losses $3.51 $3.36 $ .15Seourity Losses, Net of Tax (.01 ) (.09) .08

Net Income $3.50 $3.27 $ .23

INCOME PER SHARE ASSUMING FULL DILUTION (NoIe 10):

Income Before Security Losses $3.38 $3.24 $ .14Security Losses. Net of Tax (.01 ) (.09) .08

Net Income $3.37 $3.15 $ .22

The accompanying notes are an integral part of these statements.

Provision for Losses onLoans. Exclusive of PortionCharged Against Income, LessRelated Income Tax Effect$9,103,248 (Notes 4 and 9)

Other-Net of Tax

Net Increase (Decrease)

BALANCEDECEMBER 31, 1969

(70,700) 507,110 561,835

(8,237,019)

(645,480)

8,631,773

1415

WELL S FARGO BANK, A AND SUBS/DIARIF';

Consolidated Statement of Condition

16 17

WELLS FARGO & COMPANY ;1NO SUBSIDIARIES

Notes to Consolidated Financial Statements

4. Reserve for Loan Losses

A summary of the changes in the reserve follows:

1969 1968

6. Common Stock

At December 31,1969,417,923 shares of unissued common stockwere reserved for issuance upon conversion of the 3Y4 % con­vertible notes and 23,000 shares for issuance in connection withthe acquisition of the assets of Sonoma Mortgage Corporation.

The reserve is an amount equal to that allowable and deductiblefor Federal income tax purposes. The provision for loan lossescharged to expense is based on the ratio of the moving averagefor the most recent five years of actual net charge-ofts to averageoutstanding loans. The ratio so obtained is applied to the averageloans outstanding in each year.

5. Capital Notes

The 4% % capital notes of Wells Fargo Bank, N.A. will matureSeptember 15, 1989. These notes may be redeemed at the optionof the Bank at a premium.

On February 28, 1969, the outstanding 3% % convertible notes ofthe Bank were assumed by the Company and became their jointand several liability, but as between the two, the Company isliable for the debt represented by these notes and the interestthereon. These notes which will mature September 15, 1989, maybe redeemed at the option of the Company at any time at a pre­mium and are convertible into common stock of the Company ata conversion price of $60 per share, subject to adjustment incertain events.

The capital and convertible note indenture contains provisionswhich, among other things, restrict the payment of dividends andspecify the maintenance of minimum amounts of capital funds.The amounts of retained earnings not so restricted for payment ofdividends were $56.677,024 at December 31, 1969. See Note 7for additional restrictions.

The notes are subordinated to obligations to depositors and cer­tain other creditors.

~ 7~~~4~ ,ca,."/"1 ,..Certified Public Accountants

10. Income Per Share

Income or (loss) per share is computed by diViding income by theaverage number of shares outstanding. Income or (loss) pershare, assuming full dilution is computed in the same mannerwith appropriate adjustment assuming conversion of all convert­ible notes and issuance of the shares reserved in connection withthe acquisition of Sonoma Mortgage Corporation with relatedadjustments to net income for interest on the convertible notes,net of tax.

9. Deferred Federal Income Taxes

The income tax returns are prepared using the cash basis ofaccounting as permitted by taxing authorities. Deferred incometaxes have been provided primarily in recognition of the differ­ences between the accrual method used in preparation of financialstatements and the cash basis used for tax returns.

Deferred taxes charged In the consolidated statement of incomeamount to $11,369,100 and $6,054,500 for the years ended Decem­ber 31, 1969 and 1968, respectively. Current tax provisions forthose years amounted to $4,819,400 and $3,787,700.

Accumulated deferred income taxes aggregating $18,145,900 atDecember 31, 1969 and $17,165,600 at December 31, 1968 areincluded in accrued taxes and other expenses and reserve for loanlosses in the consolidated statement of condition.

$3,268,100

4,221,000

Incentive andSavings Plan Expense

$2,410,029

2,410,581

Retirement PlanExpense

San Francisco, CaliforniaJanuary 15, 1970

1968

1969

Accountants' Report

The Board of Directors and Stockholdersof Wells Fargo & Company:

We have examined the consolidated statement of condition of Wells Fargo & Company and subsidiaries as of December31, 1969, the related statements of earnings and capital accounts for the year then ended and the consolidated state­ment of condition of its wholly-owned subsidiary Wells Fargo Bank, N.A. and subsidiaries as of December 31,1969. Ourexamination was made in accordance with generally accepted auditing standards, and accordingly included such testsof the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, such financial statements present fairly the financial position of Wells Fargo & Company and subsidiariesat December 31, 1969, and the results of their operations and changes in capital accounts for the year then ended andthe financial position of Wells Fargo Bank, N.A. and subsidiaries at December 31, 1969, in conformity with generallyaccepted accounting principles applied on a basis consistent with that of the preceding year, as restated (see Note 1).

PEAT, MARWICK, MITCHELL & CO.CERTIFIED PUBLIC ACCOUNTANTS

601 CALIFORNIA STREET

SAN !"RANCISCO, CALIFORNIA 94106

The Company's policy is to fund the cost of the retirement planincluding amortization of unfunded past service cost. There wasno remaining unfunded liability with respect to past service for theretirement plan as of December 31, 1969 and the market value ofthe pension fund trust assets exceeded the actuarial value of thetotal accrued vested benefits.

7. Dividends

Wells Fargo Bank, N.A., as a national bank, may not, without priorapproval of the Comptroller of the Currency, pay dividends in anyyear in excess of the aggregate of the net profits (as defined) forthe year and undistributed net profits for the preceding two years.In addition, the Bank may not declare dividends in excess ofundivided profits.

8. Retirement and Incentive and Savings Plans

The retirement plan is non-contributory and covers substantiallyall full time employees. There is also an incentive and savingsplan for all employees. The total expenses for these plans wereas follows:

6,085,000

2,728,600

3,411,973

15,382

5,526,053

4,066,433

1,459,620

12,240,955

$50,099,117

$39,317,782

5,945,400

8,237,019

9,103,248

91,688

8,611,794

2,932,851

5,678,943

23,377,355

$67,797,529

$50,099,117

Total additions

Balance at end of year

Total deductions

Additions

Charged to

Expense

Retained Earnings

Deferred Taxes

Reserves of acquired banks and other items----

Balance at beginning of year

Deductions

Loans charged off

Less recoveries

Amount Per Share(in thousands)

---

Net operating earnings as previously reported $32.673 $3.62

Adjustments-net of tax:Provision for loan losses charged to expense (2,556) (.28)

Nonoperating additions and deductionsallocated to Income and expense 228 .02

Income before security losses $30,345 $3.36

Security losses. net of tax (838) (.09)

Net income $29,507 $3.27--- --

3. Mortgages Payable

The mortgages payable are primarily two series of bonds Issuedby a real estate subsidiary averaging 4% % interest. The bondsare payable in annual installments of $1,000,000 until 1988 andthen annual installments of $500,000 until 1993. The bonds aresecured by deeds of trust on $38,195,080 of bank premises, at cost.

2. Assets

Investment securities are stated at cost, adjusted for amortizationof premium and accumulation of discount. Accretion of discountamounted to $6,414,218 in 1969 and $6,132,856 in 1968. Themarket value of the investment securities on December 31,1969and 1968 was approximately $899,041,702 and $1,091,706,300respectively. Trading account securities of the Bank are stated atthe lower of cost or market. Securities at book value of $973,321,­121 and $895,871,616 at December 31, 1969 and 1968, respectively,were pledged to secure public deposits and for other purposes.

Bank premises and equipment are carried at cost less accumu­lated depreciation and amortization in the amount of $26,512,352at December 31, 1969 and $21,271,927 at December 31, 1968.Land included in bank premises amounted to $22,777,429 atDecember 31, 1969 and $21,462,482 at December 31, 1968. Depre­ciation and amortization charged to expense in 1969 amountedto $5,788,795 and $4,434,980 in 1968. Rental paid under non­cancellable leases in 1969 amounted to $3,067,227 and $2,386,326in 1968. Leases are generally for terms not in excess of thirty years.

1. Principles of Consolidation and Accounting

The consolidated financial statements include the accounts ofWells Fargo & Company and Wells Fargo Bank, N.A. and its prin­cipal wholly-owned subsidiaries. The merger of the Bank with theCompany in February 1969 has been accounted for as a pooling ofinterests. Acquisitions by the Bank have also been accounted foras poolings of interests.

The comparative financial statements have been prepared inaccordance with current regulations of supervisory authorities asrevised in 1969. Among the principal revisions are requirementsfor the inclusion in expenses of a reasonable provision for loanlosses, the description of net income for the period, the chargingto retained earnings of any loan loss provision additional to thatincluded in expenses, and the classification of the reserve for loanlosses in the statement of condition between total liabilities andcapital accounts. A reconciliation of net operating earnings aspreviously reported by the Bank for 1968 to net income is asfollows:

1819

--'~ -~-- -=_._-----------------~-------------------~----~--~-------'

Comparison of Significant Items: 1964-1969 (In millions of dollars)

At Year Total Loans and Total Capital NetEnd Assets Discounts Deposits Accounts Income Dividends

1964 $3,755 $2,267 $3,290 $334.1 $22.7 $ 8.9

1965 4,091 2,515 3,554 340.2 20.0 8.9

1966 4,241 2,539 3,682 345.2 18.2 10.31967 4,747 2,681 4,078 356.0 23.9 12.0

1968 5,423 3,276 4,734 373.8 29.5 13.1

1969 5,935 3,672 4,640 383.4 32.0 14.6

Daily Average Balances (In millions of dollars)

1969 1968 Change

U. S. Treasury Securities $ 468 $ 479 $ (11 )

Obligations of States and(38)Political Subdivisions 573 611

Other Securities 71 77 (6)

Total Investment Securities $1,112 $1,167 $ (55)

Trading Account Securities $ 25 $ 26 $ (1 )

Funds Sold $ 42 $ 108 $ (66)

Commercial Loans $1,690 $1,398 $ 292

Real Estate Loans 1,264 1,089 175

Consumer Loans 432 380 52

Total Loans $3,386 $2,867 $ 519

Demand Deposits $1,731 $1,589 $ 142

Savings Deposits 1,532 1,555 (23)

Savings Certificates 537 437 100

Corporate Certificates of Deposit 250 278 (28)

Public Time Deposits 331 307 24

Other Time Deposits 60 60

Foreign Deposits 101" 101

Total Deposits $4,542 $4,226 $ 316

Funds Borrowed $ 338 $ 189 $ 149Total Capital Accounts $ 379 $ 366 $ 13

'On annual besis. These deposits of the Luxembourg Office averaged $174 millionfor the seven months following June 2 when this office commenced operations.

20

----------------------------------------------------=- -_--=::::~------=

Comparison of Loans (End of Year)

1969 1968 Change

COMMERCIAL LOANSLoans Unsecured $1,356,554,000 $1,253,742,000 $ 102,812,000Loans on Collateral 333,550,000 360,556,000 (27,006,000)Loans purchased from Wells Fargo Bank N.A.by parent company 211,177,000 211,177,000Bills of Exchange and Acceptances Discounted 16,091,000 22,741,000 (6,650,000)

$1,917,372,000 $1,637,039,000 $ 280,333,000

REAL ESTATE LOANSFHA 1nd VA Loans $ 400,199,000 $ 381,166,000 $ 19,033,000Conventional Loans 809,670,000 730,097,000 79,573,000Farm Loans 16,851,000 19,142,000 (2,291,000)Interim Construction 79,462,000 101,751,000 (22,289,000)

$1,306,182,000 $1,232,156,000 $- 74,026,000

Dollar volume of new loans made during year $ 304,462,000 $ 405,053,000 $(100,591,000)Number of loans held by Bank at end of year 68,100 68,000 100Number of sold loans serviced for othersat end of year 39,100 37,000 2,100Dollar volume of sold loans serviced forothers at end of year $ 599,541,000 $ 562,309,000 $ 37,232,000

CONSUMER LOANSTotal Consumer Lo ns at end of year $ 448,814,000 $ 406,953,000 $ 41,861,000Dollar volume of new loans made during yead1) $ 568,038,000 $ 551,300,000 $ 16,738.000Number of new loans made during year (1) 151,000 177,000 (26,000)Loan losses as a per cent of loans outstandingat end of year .400f1% .59 of 1% (.19 of 1%)

Total Loans (2) $3,672,368,000 $3,276,148,000 $ 396,220,000

(1) Does not include Master Charge loans. (2) Before Deducting Reserve for Loan Losses.

Average Annual Yields on Earning Assets

1969 1968 Change

SECURITIESU S, Governm -mts 5.54% " 5.40% • .14%State, Municipal and Other 801 7.82 .19 .Total Securities 6.97 . 6.83 .14

LOANS AND DISCOUNTSComm rcial Loan~ 7.83% 6.58% 1.25%Real Estate Loans 6.39 6,10 .29Consumer Loans 9.86 9.49 .37Total Loans and Discounts 7.53 6.76 .77

All Earning Assets 7.39% • 6.78% " .61% •

"Taxable equivalent yield.

21

Comparison of Investments

Maturity Schedule of Investment Securities

1969 1968 ChangePar Value Per Cent Par Value Per Cent Par Value Per Cent

Maturing withintwo years $371,688,000 34.49% $375,790,000 31.82% $(4,102,000) 2.67%

Maturing withinfive years 590,934,000 54.83 533,817,000 45.20 57,117,000 9.63

Maturing withinten years 684,245,000 63.49 764,190,000 64.70 (79,945,000) (1.21)

Maturing afterten years 393,448,000 36.51 416,933,000 35.30 (23,485,000) 1.21

22

many respondents mentioned Wells Fargotoday as did two years ago. And by anaided recall question, three out of fourpersons in Los Angeles were aware ofWells Fargo Bank as compared to oneout of two in the previous survey.

EXPANSION /NORTHERN CALIFORNIA:

Since we now have good geographicalrepresentation throughout Northern Cali­fornia, branch expansion is beingconcentrated in fast-growing areas.

In the San Joaquin Valley, offices wereadded in Visalia, our first in Tulare County,and a fourth in the city of Fresno.

Two offices were added in the Oaklandarea: Clayton Valley, Concord; and PaseoPadre, Fremont. An office was also openedin Saratoga, our first in that communityand the 29th in Santa Clara County.

In 1970, new offices will be opened inSan Francisco, San Jose, San Mateo,Milpitas, Daly City, Oakland, Montclair,Hanford, Yreka, Tular'e and Sacramento.

A number of offices will be relocated inlarger quarters including branches inGreenfield, Santa Cruz, Capitola, Oakland,Moraga, Visalia, Yuba City, North Sacra­mento, San Jose and Castro Valley. Fifteenoffices will be remodeled.

The largest structure completed in 1969was the $14.5 million, 20-story, 475Sansome Street Building in San Francisco.The new building includes five floorsof auto parking, a cafeteria, and elevenfloors for head office departments. Thebalance of the space, for future expan­sion, is presently leased to outside firms.

By year end there were 257 offices operat­ing statewide.

EXPANSION/INTERNATIONAL:

International operations were expandedin Europe, Latin America and the Pacific.

In June, a representative office was openedin London and a branch in Luxembourg.Both offices are working closely with ourLondon affiliate, Western AmericanBank (Europe) Ltd.

23

The Luxembourg activities are also closelycoordinated with our foreign exchangetrading operations in San Francisco, LosAngeles and with our New York subsidiary.The branch offers a full range ofcommercial banking services includingshort- and medium-term credit sources, andplacement of Euro-currency deposits atmedium- and short-term maturities.

Late in the year, a resident representativewas established in Buenos Aires, ourfirst in South America. Wells Fargo alsohas representatives in Tokyo, Mexico City,Nicaragua and London.

In February, our international subsidiary,Wells Fargo Bank International Corporation,became a founding stockholder in thePrivate Investment Company for Asia SA(PICA) headquartered in Tokyo. PICA is amulti-national corporation organized tomake and facilitate private capital invest­ments in the developing countries of Asia.It is similar to the ADELA InvestmentCompany, a private firm providing financialservices throughout Latin America in whichWells Fargo has been along-time participant.

Through the international subsidiary, WellsFargo also acquired substantial minorityinterests in banks in Australia and HongKong and in two financial firms in Mexico.

Wells Fargo is the only U. S. shareholder inMartin Corporation Ltd., an Australianmerchant bank formed by some of Britain'sand Australia's largest and olde'st financialinstitutions. Headquartered in Sydney,the merchant bank also has offices inMelbourne and Perth.

The minority interest in the ShanghaiCommercial Bank Ltd., Hong Kong,enables Wells Fargo to expand its servicesin this important Asian financial center.The Hong Kong bank, which has had closeties with Wells Fargo for several decades,has nine offices in the Cr.own Colony.

In Mexico City, an interest was acquired inInteramericana de Arrendamientos, SA,one of Mexico's largest financial leasingfirms and Corporacion Interamericana, SA,a recently established firm specializingin accounts receivable financing.

24

SPECIALIZED LOAN PROGRAMS:

Even with the increased loan restrictions,the regular business needs of our smallerborrowers were being met. In addition,Wells Fargo increased its loan efforts intwo other fields: student loans and minorityloans. The student loan programs wereliberalized and more than $15 million inloans were made to 8,100 students by theend of 1969. Credit restrictions were easedfor many types of minority businesses so asto encourage minority entrepreneurships.

Wells Fargo was one of the initiators ofOpportunity through Ownership, a pooledfund operation which at present includesseven San Francisco banks and onecorporation. The fund provides loans forminority enterprises. To date, the infantorganization has supplied loans to 26Bay Area businesses.

WELLS FARGO INVESTMENT COMPANY:

The small business investment company,forty-five per cent Bank-owned, beganoperation in January. By year end, invest­ment commitments totaling $4.3 millionwere made to 12 corporations.

The investment company was capitalized at$2.5 million. Additional sources of capitalwere secured through commercial bankcredit lines.

SONOMA MORTGAGE:

A substantial increase in mortgage loansales, expansion in Southern Californiaand reorganization of commercial and resi­dential loan departments highlighted thedivision's operations in 1969.

Despite an adverse mortgage rate year, $70million in single family and commercialloans were sold, up from $60 million ayear ago.

The division paralleled the Bank's expan­sion into Southern California with theopening of offices in Santa Ana, Encinoand San Diego.

Headquartered in Santa Rosa, the divisionhas 11 offices. At year end, $600 millionin mortgage loans were being serviced, upfrom $562 million a year ago.

Wells Fargo loans restored thesetwo 19th Century San Francisco

structures: a classic Victorian homein tamed Pacific Heights, and

an old brick warehouse convertedto elegant of/ices and shops

in the Fisherman's Wharf area.

25

These students are aI/endingcollege through Wells Fargoeducational loans. Program wasexpanded in 1969 and studentloans now exceed 8,100.

offers the customer a choice of investmentsthrough the Wells Fargo pooled funds.

The Bank now has ten pooled funds witha market value of some $120 million. Assetsserviced by the Trust Division increasedsubstantially and gross income was up 14.9per cent over a year ago.

Trust facilities opened in Beverly Hills,Encino, San Diego, La Jolla and Palo Alto.

The Investment Management Service,originally conceived for individual invest­ment programs, was later expanded toserve all types of investors- corporations,fiduciaries, schools and other institutions.In 1969, IMS initiated a successful newprogram for trust departments of smallerbanks offering specially-tailored securityresearch and portfolio managementservices.

NEW SERVICES:

Late in December, a favorable ruling wasreceived from the Internal Revenue Serviceon our innovative Deferred Income Cer-

tificates. The instruments, paying five percent, can be purchased in a minimumamount of $5,000 and additional amountsof $1 ,000 or more with maturities of oneto ten years. Taxes on interest can bedeferred as long as ten years. The certifi­cates are ideal for people nearingretirement and a lower tax bracket.

Five per cent passbook savings, one of apackage of time deposit services, wasintroduced early in the year. The programincludes a five per cent interest guaranteefor up to five years and requires a minimum$500-opening balance. These passbookaccounts totaled $168 million at year end.

Escrow departments are being establishedin all major offices throughout theState. The service is a natural extensionof our real estate lending activities.

A fifth stagecoach check was introducedin April and 35,000 have been sold tocustomers to date. More than half ourcustomers are now purchasing the colorfulstagecoach checks and sales throughDecember totaled 370,000.

PERSONNEL AND TRAINING:

Reflecting the rapid expansion of bankingservices and new offices, the staff increasedby more than a thousand with a year endtotal of 10,300. A number of employees worka part-time day. On a full time equivalentbasis the staff totaled 9,700.

To meet expansion activities and staffreplacements, nearly three thousandpeople were trained in banking operations.A variety of training programs are under­way including teller schools, intensiveclassroom and on-the-job programs for theunskilled, and specialized managementtraining programs for college graduates.

The new training facilities now in operationin the 475 Sansome Street building includethe latest in learning techniques, takingfull advantage of audio-visual facilities andclosed circuit television. Training schoolsare also being decentralized to key geo­graphical areas of the State.

To help retired employees meetthe increased costs of inflation, a one-time

26

adjustment in the pension program for535 retirees became effective September 1.

COMPUTERS:

Conversion of consumer account informa­tion to third generation computers,including new programming, has now beencompleted. The computer can provide anybranch with instant information on 735,000checking accounts, 800,000 savingsaccounts and 300,000 installment loans,real estate loans and revolving creditaccounts. A recent survey by an outsidefirm shows that Wells Fargo is one of thecountry's leading banks in advancedcomputer applications.

TRUST:

A new program was introduced whichoffers pension and profit sharing programsto smaller corporations and newly-formedprofessional corporations. The MasterRetirement Plan for Corporations(MASCOR) meets guidelines set forthby the Internal Revenue Service and

Interior 01 the Beverly Hillsbanking office, one of nineteen

in operation in SouthernCalifornia. The Bank's goa/ is

"/00 offices in SouthernCalifornia by the end 0/1975.

27

Organization

DIRECTORS RogerD. Lapham,J~ WELLS FARGO &COMPANY Senior Vice Presidents George W. Schmitz Argentina RepresentativeWells Fargo & Company and President, 420 Montgomery Street A. William Barkan Arthur A. Schwalgeits principal subsidiary. Frank B. Hall & Co. of California San Francisco. California 94120 William M. ScearceWells Fargo Bank, N.A. Glenn C. Bassett, Jr. William F. Snow Assistant Vice President

Edmund W. Littlefield J. 0, Elmer John K. SnyderErnest C. Arbuckle President and General Manager, Chairman of the Board Lester H. Empey Andrew H. Stone Central American RepresentativeChairman of the Board Utah Construction & Mining Co,

Ernest C, Arbuckle F. L. GreinerRobert D. Thomas William C. Keen

Kenneth K, Bechtel James K. Lochead* John H. Griffith Assistant Vice President-Leonard E. Wasserstein

Chairman of the Board, President, American Trust Company, Gilman B. Haynes, Jr. Representative, Managua, NicaraguaIndustrial Indemnity Company 1938-56; Chairman, 1956-57

President and John F. Holman Donald G. Wharton, Jr.

Donald Maclean* Chief Executive Officer Richard D. Jackson European Representative OfficeWilliam R, Breuner San Diego HeadquartersPresident, Former Chairman of the Board, Robert L. Kemper Henry Parish IIIJohn Breuner Company California and Hawaiian Sugar Richard P. Cooley Harold G. King Maurice D. Berchdorf Vice President-European

Refining CorporationWard C. Krebs Vice President Representative, London

Robert L, Bridges J. W. Mailliard III Senior Vice PresidentsRobert F. Smith

Thelen, Marrin, Johnson & Bridges, Chairman of the Board, K. Stanley ThompsonFar East Representative Office

Allorneys at Law Mailliard & Schmiedell J. O. Elmer Ralph J. Crawford, Jr. John A. Bohn, Jr,

Peter Cook, Jr. Leonard Marks J~ General Auditor Executive Vice President Assistant Vice President-Donald H. McLaughlin* Representative, TokyoGeneral Farming, Chairman of the Board, Orion A. Hill, Jr.Sacramento Valley of California Homestake Mining Company East Bay Division

Vice PresidentsMexico Representative Office

Ransom M. Cook Wilson Meyer* Vice President and John H. GriffithJohn E. SanfordPresident, Wells Fargo Bank, 1960-64: Chairman of the Board, James K. Dobey Secretary-Treasurer

Senior Vice PresidentChairman, 1964-66 Wilson & Geo. Meyer & Co. Assistant Vice President-

Ralph J. Crawford, Jr. Harold D. Bostock Vice Presidents: Representative, Mexico Cily

Richard P. Cooley Arjay Miller Herbert W. Faulkner Duane G. AndersonPresident and Chief Executive Officer Dean, Graduate School of Business. Adolph Mueller II Carl K. Bomberger Luxembourg Office

Stanford University Merle D. BrownJohn E, Countryman John R. Breeden Clive R. Sanders

Director and Member of Paul A. Milled Executive Vice PresidentGino Cecchini Vice President and Manager

Finance Commillee, President and Chief Executive Officer, Vice President and Treasurer Eugene E. CochraneDel Monte Corporation Pacific Lighting Corporation

Robert L. Kemper Conrad R. Craig National DivisionSouthern California

Leonard K. Firestone Robert W. Miller HeadquartersDavid W, Crane Robert F. Smith

President, Chairman of the Executive Committee, Earl B. Duarte Senior Vice PresidentFirestone Tire & Rubber Company Pacific Lighting Corporation Vice President and Secretary Richard D. Jackson Walter H. Ehlers Vice Presidents:of California Senior Vice President

George G. Montgomery* Harold D, Bostock George M. Fulton Robert L. Altick, Jr.

James Flood Retired Chairman of the Board, Vice Presidents: Stanley B. Gerdes Harold B. Bray, Jr.Trustee, Kern County Land Company Harrison J. Bradley Byron E, Lewis Jackson EavesFlood Estate James C, Barrett, Jr. Philip L. McClureRobert S. Odell Henry F. Grady, Jr.

J. A. Folger President, BANK ORGANIZATION Eugene D, Bishop William R. McGuire James A. HorsburghFormer Chairman of the Board, Allied Properties Head Office: William G. Brock Raymond A. McKeller Chester G. JordanThe Folger Coffee Company 464 California Street Kenneth C. CarlsonSan Francisco, California 94120 Leslie S. Sherman L. Robert KoenigHerman Phleger Richard H. Clark E. Julian UnruhW. P. Fuller III Brobeck, Phleger & Harrison, Hans J. LundVice President, Attorneys at Law Daniel C. Davis

R. Neil Wood W. Peter McAndrewWestern Region for PPG Industries Chairman of the Board Norman G. Eckles

Paul A. RenstromWilliam E, Roberts Richard P. FeldmillerRichard E. Guggenhime President. Ernest C. Arbuckle International Division Robert M. Ridley, J~H. Lee FettersPartner, Ampex Corporation Glenn C. Bassett, Jr. Samuel P. StevensHeller, Ehrman, White & McAuliffe, James R. Gibson

Senior Vice President Wood W. WilkinsonAttorneys at Law Peter T. Sinclair President and George H. GrandstaffChairman of the Board, John A. Held Vice Presidents:

James M. Hait Crown Zellerbach Corporation Chief Executive Officer Gerrit E. Venema Peninsula DivisionChairman of the Board, Richard P. Cooley

Thomas B. LathropFMC Corporation Allan Sproul' Harry L. Maynard William E. Biggerstaff K. Stanley Thompson

Economist; Sherman W. McKissock William E. Henley Senior Vice PresidentI. W, Hellman President, Federal Reserve Bank H. Dale Meredith Gardner S. Jacobs Vice Presidents:President, Wells Fargo Bank, 1943-60; of New York, 1941·56 Executive Vice PresidentsChairman, 1960-64 Charles C. Mickle III Donald W. Jardine Graham G. Adams

'Directors Emeritus, John R. Breeden Paul A. Pflueger, J~ Carlos Rodriquez-Pastor W. Gary Alford, Jr.Daniel E. Koshland* Wells Fargo Bank, N.A. only Ralph J. Crawford, Jr. W. James Robertson Karl E. Seeger Sigmund E. BeritzhoffChairman of the Executive Committee, tAdvisory Director,

James K. Dobey George L. Schindler Gerrit P. Vander Ende Dean ChaixLevi Strauss & Co. Wells Fargo Bank, N.A. only

28 29

Warren B. Cottrell West Bay Division Marketing and Advertising Advanced Systems Department Sonoma Mortgage Company WELLS FARGO BANK

Thomas L. Craig A. William BarkanDepartment Peter L. Overmire Division INTERNATIONAL

I. Michael Danielson Senior Vice President Vice Presidents: Vice President Vice Presidents:CORPORATION

Peter R. Hammond Vice Presidents: Richard M. ROsenberg Henry F. Trione

John J. Hennessy Elmer E. Anderson Edward E. MungerDIRECTORS

Miles C. Babcock

Ralph B. Hofer Miles C. Babcock Richard B. West, Jr. Controller's Department John J. Cunningham Ernest C. Arbuckle

Bertram Holmes Leo M. Bianco John J. Parker William Kellinger Glenn C. Bassett, Jr.

Ellis A. Howard Lloyd H. BrinckVice President and Controller Robert L. Bridges

John A. Kern C. Carroll CadyRansom M. Cook

William Koves Ernest A. Clark Trust Division J. O. Elmer Richard P. Cooley

William H. Mauel William T. Clarke Harold G. KingCredit Card Department Senior Vice President, John E. Countryman

William J. Maxwell Robert F. Davidson Senior Vice President and Glenhall E. Taylor, Jr. Public and Industry Relations Charles E. Lilien

Andrew McConnell Russell F. DwyerSenior Trust Officer Vice President Edmund W. Littlefield

Ross Buell

Alwyne E. Miguel Frederick B. Henderson, Jr. George A. HopiakVice President William E. Roberts

Byron L. Mortenson Edwin Johnson Vice President and ManagerRobert F. Smith

Henry M. Nissen James B. KeeganData Processing Department Allan Sproul

Charles E. Nussbaum Raymond R. Little Vice Presidents: Vice Presidents: Lester H. Empey

Robert H. Rehfeld William B. MacColI, Jr. Mario R. Ancona Watson M. McKee, Jr. Senior Vice President,

Harvey E. Schapansky Robert McLean John B. Anderson Robert R. Hewlell Investment Committee Chairman

Charles J. Schmitt Harry East Miller, Jr. Edmund J. Brunswick Miss Janet WrightEXECUTIVE OFFICERS

Roland Tavernelli Campbell S. O'Neill Francis E. Canatsy

Carl E. Ward Constant F. Rilliet, Jr. Warren E. DanforthWard C. Krebs

Chairman of the Board

Robert A. Saxe Christopher T. Ford Systems and Programming Senior Vice President, Ernest C. Arbuckle

George G. Skou Kenneth N. Galloway Department Credit Policy and Economics

Philip T. Smith Robert M. Harper William P. StritzlerVice Presidents: President

Valley Division Roderick H. Speetzen Stanley S. Hasbrook Vice President Harold L. Buma Richard P. Cooley

Gilman B. Haynes, Jr. Roland J. Wynne Hasell L. HendersonMallheus Visser

Senior Vice President Robert J. Zaro Alexander M. MillarExecutive Vice Presidents

Vice Presidents:Basil C. Pearce Glenn C. Bassell, Jr.

W. Wayne AkertRichard C. Smith

Richard J. Borda Charles E. Lilien

Glendon A. WardhaughJohn F. Holman Vice President,

Alfred S. Anderson James K. Dobey Senior Vice President Personnel Division

Joseph E. AultExecutive Vice President Franklin H. Watson Vice Presidents

Howard J. BoscusJohn V. W. Zaugg

Vice Presidents: R. Lawrence Bacon

George E. BriareFinancial Analysis Department Max H. Forster George J. Hawkins

Loan Division Director of Training

K. T. CrawfordVice Presidents: John F. Holman

Robert J. Gicker

Ellis M. CripeJames R. Vertin F. L. Greiner Carlos Rodriquez-Pastor

Senior Vice President E. Harold Gustafson

Charles J. DavisWilliam F. Adam Robert L. Kemper

Robert F. SmithLester A. Roth

Ned B. DicksonThomas A. Middleton Senior Vice President Vice Presidents: Gerrit E. Venema

Cletus J. DoneuxW. Rodney Hughes Dickson Beckett

John G. GoodrichJulius P. Hammer Administration Jack A. Byers Secretary-Treasurer

Daniel S. liVingston

Stephen G. Gribi Investment Department Thomas A. BigelowLouis F. Cimina Vice President, Harold D. Bostock

Forest HellandVice President W. Stanford Durrant Planning and Organization

Vice Presidents: Robert L. Essick DevelopmentWilliam L. Isham

William G. IsherwoodGeorge F. Casey, Jr. Harold R. Arthur Arthur L. FoskellLouis E. Ciapponi Vice President and Cashier

Robert D. LivingstonKenneth L. Jones NEW YORK HEADQUARTERS

Ronald E. Eadie William L. Martin Harold D. Bostock 40 Wall StreetJames M. McCabe David G. Stead

Vice Presidents: New York, New York 10005

Charles P. Morgan Gerard E. DowneyFielding McDearmon Vice President and

Andrew E. Steen William M. McVicker Secrelary-Treasurer,Richard L. Nelepovitz Fred W. Englebrecht Chief Appraiser Corporate Secretary's Department Executive Vice President

Joseph L. Nessler Management Sciences Carroll H. George Leslie C. Smith Vice Presidents:Charles E. Lilien

Gordon G. Nevis Department John P. Griffiths Edward B. WilkinsonGeorge L. Olson Joseph P. Hiss

Lane P. Brennan

John A. McQuownChief Loan Examiner Legal Officer Vice President

Joseph E. Weaver Vice President Eldon T. Peterson Robert G. Winden Philip G. Bowser George J. Hawkins

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