Other noninterest income includes net gains on debt securities available for sale, net gains from equity investments, lease income, life insurance investment income and all other noninterest income.
Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company's ability to generate capital to cover credit losses through a credit cycle.
Capital ratios at 12/31/2014 were preliminary upon release of the fourth quarter earnings report. Additional information regarding our capital ratios is included on pages 38-39 of the Fourth Quarter Earnings Release (PDF)*. Finalized data will be reported in Wells Fargo's Form 10-K (PDF)*.
As of November 2014
Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. Accordingly, we revised our commercial loan balances for year-end 2012 and each of the quarters in 2013 in order to present the Company’s lending trends on a comparable basis over this period. This revision, which resulted in a reduction to total commercial loans and a corresponding decrease to other liabilities, did not impact the Company’s consolidated net income or total cash flows. We reduced our commercial loans by $3.5 billion, $3.2 billion, $2.1 billion, $1.6 billion, and $1.2 billion at December 31, September 30, June 30, and March 31, 2013, and December 31, 2012, respectively, which represented less than 1% of total commercial loans and less than 0.5% of our total loan portfolio. Other affected financial information, including financial guarantees and financial ratios, has been appropriately revised to reflect this revision.
The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).
The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.
Includes corporate items not specific to a business segment and the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for wealth management customers provided in Community Banking stores.
For complete information on fourth quarter 2014 earnings, please visit Quarterly Earnings. This Investment Profile contains forward-looking statements about our future financial performance. For information that could cause actual results to differ materially from expectations, please review the Forward-Looking Statements discussion on pages 13-14 of the Fourth Quarter Earnings Release (PDF)*.
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