Highlights from Wells Fargo's (WFC) Q3 Conference Call: Core Loan Portfolio Rose $13.5B, RoA Strong, RoE Up 12% from '11

Shares of Wells Fargo (NYSE: WFC) are down more than 8 percent Monday afternoon following a Q3 miss this morning.

The bank reported a quarterly profit of 72 cents per share, inline with the Street. Sales totaled $19.6 billion, worse than the $20.22 billion analysts had been expecting.

Below is a recap of some of the highlights from Wells Fargo's Q3 conference call:

• core loan portfolio grew by $13.5 billion over the quarter
  
• noted half the quarterly decline in sales "was from items relatively neutral to the bottom line, lower deferred compensation plan investment results and seasonally lower insurance, which have offsets in expenses and the rest of the decline is due to lower equity gains"
  
• return on assets was flat at 1.26 percent, return on equity was up nearly 12 percent from last year
  
• estimated tier 1 common equity ratio under cause Basil three proposal of 7.4%
  
• the bank's securities portfolio rose $20.9 billion amid "increased purchase activity"
  
• deposit growth was strong as balances rose $41.8 billion, "by flight to quality and new account growth"
  
• long-term debt was reduced by $9.7 billion
  
• "Net interest income was down $136 million as balance sheet repricing and lower variable income was partially offset by growth in loans, securities and the mortgage warehouse as well as one extra day in the quarter"
  
• sales in the mortgage banking branch rose $200 million
  
• "Loan growth was once again driven by commercial portfolio which grew 9.1 billion or 3% from the second quarter and was diverse across our commercial businesses"
  
• "Average core deposits were up $29.4 billion from the second quarter, and up $64.9 billion or 8% from a year ago and were 111% of average loans"
  
• "Consumer checking accounts were up 5.6% from a year ago"
  
• "income was down 622 million from the second quarter, driven by 808 million linked quarter decline in market sensitive revenue"
  
• "Trust and investment fees declined 158 million from the second quarter on lower brokerage transaction activity and weaker investment banking"

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