WELLS FARGO & COMPANY/MN | 2013 | FY | 3


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
        LiquidationShares  LiquidationShares
        preferenceauthorized  preferenceauthorized
  per shareand designated  per shareand 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 ParCarrying  issued and ParCarrying 
(in millions, except shares)outstanding valuevalueDiscount outstanding  valuevalueDiscount
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 MinimumMaximum
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)    
                  
                  


us-gaap:PreferredStockTextBlock