Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Merger or Acquisition (October 2008)
16 slides from Wells Fargo &'s merger presentation, Oct 3, 2008
Slide 1: Wells Fargo + Wachovia: A Combined Premier Financial Services Company
Exhibit 99.2 ae hi ee Sia Wells Fargo + Wachovia A Combined Premier Financial Services Company A Superior Deal for Shareholders October 3, 2008
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about expected cost savings and other benefits of the merger between Wells Fargo an
Slide 3: Terms
Terms = Fixed exchange ratio = 0.1991 Wells Fargo shares for each Wachovia share = $7.00 per Wachovia share’ = Total consideration of $15.1 billion’ Structure = Whole company transaction: nothing left behind = No FDIC assistance Capital raise = Wells Fargo anticipates raising capital of up to $20 bi
Slide 4: Revenue and credit assumptions
Revenue and credit assumptions: Synergies: Merger costs: Targeted close: Due diligence: Remaining approvals: uuu 4d Includes conservative deposit run-off and credit assumptions $5 billion annual expense reduction $10 billion Fourth quarter 2008 Completed Regulatory approvals Wachovia shareholders
Slide 5: The New Wells Fargo
WELLS The New Wells Fargo FARGO U.S. Banking Stores Rank _ Institution Stores (#) Deposits 1 Pro forma Wells Fargo 6,675 1 Pro forma Wells Fargo $713 2 Bank of America 6,138 2 Bank of America 697 3 JPMorgan Chase 5,410 3 JPMorgan Chase 670 E Wachovia 3,348 = Wachovia 420 E Wells Fargo 3,327 = Wells
Slide 6: Combined retail banking stores
4 He Wels Fargo etal banking stores — 3,327 ~@ a © Wochoia ta banking stoves — 3:48 tg % * Total combined retail banking stores — 6,675 eal he ° ‘Souree: SNL Fnancial Note: Data as of September 1, 2008
Slide 7: Leading Market Share from Coast to Coast
Leading Market Share from Coast to Coast wR WELLS Adjusted deposits in key states - $ in billions $135.5 ™ Wells Fargo ™ Wachovia % of total Deposits" in states with #1 rank 67% Deposits" in states with top 2 rank 85 $59.8 Deposits in states with top 3 rank 93 $37.8 3252 $225 $21.2 $208 «= $206 817.
Slide 8: Strong Retail Distribution and Customer Base
Strong Retail Distribution and Customer Base Powerful Retail Distribution WAcHIoyra, Combined Banking stores (#) 3,348 6,675 Total stores (#) + 4320 = 10,761 5,277 12,227 ATMs (#) Significant Customer Base WACHOVIA. Combined Total retail households (mm) 11.2 15.0 26.2' Active online customers (mm) 1
Slide 9: Wachovia and Wells Fargo business strengths
WACHOVIA Presence in growth markets Penetration of affluent entrepreneurs Consumer Banking Middle Market Commercial Insurance Trade Finance / Global Payments Treasury Services Mutual Funds 50% of U.S. population growth in footprint 80% of U.S. population growth in footprint #1 small business lender
Slide 10: Pro Forma Financial Review
Pro Forma Financial Review
Slide 11: Loan portfolio and marks
Commercial $123 ($9) Total CRE 46 (12) Foreign / Leasing 60 (3) Total Commercial $228 ($24) Pick-A-Pay $122 ($32) Home Equity 60 @) Other Consumer 88 (3) Total Consumer $270 ($42) Total Loans $4982 (605) Other Marks ($8) Total ($74) * To be included in purchase accounting or post acquisition financi
Slide 12: Assets and capital (regulatory)
‘Assets (regulatory) Total assets Tangible assets Risk-weighted assets ‘Average assets for leverage ratio Capital (regulatory) Tangibile common equity Tier 1 capital Total capital Capital ratios ‘TCE/TA (regulatory) Leverage Tier 1 capital Total capital 60 5.6% 74 82 12 121 W4 Note: Reflects $20 bit
Slide 13: Cost Savings, Merger Costs and EPS Impact
Cost Savings = Approximately $5 billion annually, or approximately 10% of combined 2008 non-interest expense = Majority of cost synergies achievable by end of 2010 = Disciplined approach to banking store integration Merger Costs = Estimated transaction-related costs of approximately $10 billion EPS
Slide 14: Conclusion
Conclusion Strategic Fit " Greatly enhances retail banking platform in attractive markets Combined deposits of $787 billion ($713 billion U.S. deposits) and 6,675 banking stores = Increases market share in existing fast-growing markets = #1 in 9 of top 10 key states ™ Expands footprint into attracti
Slide 15: Appendix
Appendix
Slide 16: #1 Rank in Top MSAs: Concentration in fast-growing MSAs
#1 Rank in 10 of Top 20 MSAs he Concentration in fast-growing MSAs___ iia 1d States Ranked by Deposit Size ($I Pp 20 MSAs in the U: Deposits Deposit growth Pro forma Wells Fargo 2007 2002-2007 CAGR Rank Market share (Sbn) (%) Presence # (%) 1 New York $462 51% v 5 61% 2 Los Angeles 258 69 1 16.8 3 C