Wells' Imploding Loan Portfolio

Tyler Durden's picture

The fine folks over at WLMLab Bank Loan Performance have done a great job at updating FDIC loan data by various banks. Some of their conclusions:

Yet the most significant observations is the ticking time bomb that is Wells Fargo's 1-4 Family 90+ past due loans.

WFC's Construction & Development portfolio is also on the verge of implosion.

Conveniently, these loans are low on Non-Accrual rates, meaning that net interest income is not currently affected (and leading to a falsely high EPS number), yet once everything hits the fan, the bank will be forced to charge off a staggering amount of debt at much higher principal amounts. Perhaps any and all rumors about WFC's viability should be evaluated very carefully going forward.