Note 18: Preferred Stock
We are authorized to issue 20 million shares of preferred stock and 4 million shares of preference stock, both without par value. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference but have no general voting rights. We have not issued any preference shares under this authorization. If issued, preference shares would be limited to one vote per share. Our total authorized, issued and outstanding preferred stock is presented in the following two tables. The Employee Stock Ownership Plan (ESOP) Cumulative Convertible Preferred Stock is presented in the two tables below and in the table on the following page.
December 31, 2013 | December 31, 2012 | ||||||||||||
Liquidation | Shares | Liquidation | Shares | ||||||||||
preference | authorized | preference | authorized | ||||||||||
per share | and designated | per share | and designated | ||||||||||
DEP Shares | |||||||||||||
Dividend Equalization Preferred Shares (DEP) | $ | 10 | 97,000 | $ | 10 | 97,000 | |||||||
Series G | |||||||||||||
7.25% Class A Preferred Stock | 15,000 | 50,000 | 15,000 | 50,000 | |||||||||
Series H | |||||||||||||
Floating Class A Preferred Stock | 20,000 | 50,000 | 20,000 | 50,000 | |||||||||
Series I | |||||||||||||
Floating Class A Preferred Stock | 100,000 | 25,010 | 100,000 | 25,010 | |||||||||
Series J | |||||||||||||
8.00% Non-Cumulative Perpetual Class A Preferred Stock | 1,000 | 2,300,000 | 1,000 | 2,300,000 | |||||||||
Series K | |||||||||||||
7.98% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 1,000 | 3,500,000 | 1,000 | 3,500,000 | |||||||||
Series L | |||||||||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock | 1,000 | 4,025,000 | 1,000 | 4,025,000 | |||||||||
Series N | |||||||||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 30,000 | 25,000 | 30,000 | |||||||||
Series O | |||||||||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 27,600 | 25,000 | 27,600 | |||||||||
Series P | |||||||||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 26,400 | - | - | |||||||||
Series Q | |||||||||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 69,000 | - | - | |||||||||
Series R | |||||||||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 34,500 | - | - | |||||||||
ESOP | |||||||||||||
Cumulative Convertible Preferred Stock (1) | - | 1,105,664 | - | 910,934 | |||||||||
Total | 11,340,174 | 11,015,544 | |||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Shares | Shares | ||||||||||||||||
issued and | Par | Carrying | issued and | Par | Carrying | ||||||||||||
(in millions, except shares) | outstanding | value | value | Discount | outstanding | value | value | Discount | |||||||||
DEP Shares | |||||||||||||||||
Dividend Equalization Preferred Shares (DEP) | 96,546 | $ | - | - | - | 96,546 | $ | - | - | - | |||||||
Series I (1) | |||||||||||||||||
Floating Class A Preferred Stock | 25,010 | 2,501 | 2,501 | - | 25,010 | 2,501 | 2,501 | - | |||||||||
Series J (1) | |||||||||||||||||
8.00% Non-Cumulative Perpetual Class A Preferred Stock | 2,150,375 | 2,150 | 1,995 | 155 | 2,150,375 | 2,150 | 1,995 | 155 | |||||||||
Series K (1) | |||||||||||||||||
7.98% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 3,352,000 | 3,352 | 2,876 | 476 | 3,352,000 | 3,352 | 2,876 | 476 | |||||||||
Series L (1) | |||||||||||||||||
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock | 3,968,000 | 3,968 | 3,200 | 768 | 3,968,000 | 3,968 | 3,200 | 768 | |||||||||
Series N (1) | |||||||||||||||||
5.20% Non-Cumulative Perpetual Class A Preferred Stock | 30,000 | 750 | 750 | - | 30,000 | 750 | 750 | - | |||||||||
Series O (1) | |||||||||||||||||
5.125% Non-Cumulative Perpetual Class A Preferred Stock | 26,000 | 650 | 650 | - | 26,000 | 650 | 650 | - | |||||||||
Series P (1) | |||||||||||||||||
5.25% Non-Cumulative Perpetual Class A Preferred Stock | 25,000 | 625 | 625 | - | - | - | - | - | |||||||||
Series Q (1) | |||||||||||||||||
5.85% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 69,000 | 1,725 | 1,725 | - | - | - | - | - | |||||||||
Series R (1) | |||||||||||||||||
6.625% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred Stock | 33,600 | 840 | 840 | - | - | - | - | - | |||||||||
ESOP | |||||||||||||||||
Cumulative Convertible Preferred Stock | 1,105,664 | 1,105 | 1,105 | - | 910,934 | 911 | 911 | - | |||||||||
Total | 10,881,195 | $ | 17,666 | 16,267 | 1,399 | 10,558,865 | $ | 14,282 | 12,883 | 1,399 | |||||||
In March 2013, we issued 25 million Depositary Shares, each representing a 1/1,000th interest in a share of the Non-Cumulative Perpetual Class A Preferred Stock, Series P, for an aggregate public offering price of $625 million.
In July 2013, we issued 69 million Depositary Shares, each representing a 1/1,000th interest in a share of the Non-Cumulative Perpetual Class A Preferred Stock, Series Q, for an aggregate public offering price of $1.7 billion.
In December 2013, we issued 34 million Depositary Shares, each representing a 1/1,000th interest in a share of the Non-Cumulative Perpetual Class A Preferred Stock, Series R, for an aggregate public offering price of $840 million.
See Note 8 for additional information on our trust preferred securities. We do not have a commitment to issue Series G or H preferred stock.
ESOP Cumulative Convertible Preferred Stock All shares of our ESOP Cumulative Convertible Preferred Stock (ESOP Preferred Stock) were issued to a trustee acting on behalf of the Wells Fargo & Company 401(k) Plan (the 401(k) Plan). Dividends on the ESOP Preferred Stock are cumulative from the date of initial issuance and are payable quarterly at annual rates based upon the year of issuance. Each share of ESOP Preferred Stock released from the unallocated reserve of the 401(k) Plan is converted into shares of our common stock based on the stated value of the ESOP Preferred Stock and the then current market price of our common stock. The ESOP Preferred Stock is also convertible at the option of the holder at any time, unless previously redeemed. We have the option to redeem the ESOP Preferred Stock at any time, in whole or in part, at a redemption price per share equal to the higher of (a) $1,000 per share plus accrued and unpaid dividends or (b) the fair market value, as defined in the Certificates of Designation for the ESOP Preferred Stock.
Shares issued and outstanding | Carrying value | ||||||||||||||||
Dec. 31, | Dec. 31, | Dec. 31, | Dec. 31, | Adjustable dividend rate | |||||||||||||
(in millions, except shares) | 2013 | 2012 | 2013 | 2012 | Minimum | Maximum | |||||||||||
ESOP Preferred Stock | |||||||||||||||||
$1,000 liquidation preference per share | |||||||||||||||||
2013 | 349,788 | - | $ | 350 | - | 8.50 | % | 9.50 | |||||||||
2012 | 217,404 | 245,604 | 217 | 246 | 10.00 | 11.00 | |||||||||||
2011 | 241,263 | 277,263 | 241 | 277 | 9.00 | 10.00 | |||||||||||
2010 | 171,011 | 201,011 | 171 | 201 | 9.50 | 10.50 | |||||||||||
2008 | 57,819 | 73,434 | 58 | 73 | 10.50 | 11.50 | |||||||||||
2007 | 39,248 | 53,768 | 39 | 54 | 10.75 | 11.75 | |||||||||||
2006 | 21,139 | 33,559 | 21 | 34 | 10.75 | 11.75 | |||||||||||
2005 | 7,992 | 18,882 | 8 | 19 | 9.75 | 10.75 | |||||||||||
2004 | - | 7,413 | - | 7 | 8.50 | 9.50 | |||||||||||
Total ESOP Preferred Stock (1) | 1,105,664 | 910,934 | $ | 1,105 | 911 | ||||||||||||
Unearned ESOP shares (2) | $ | (1,200) | (986) | ||||||||||||||