Miller Tabak's Notes From Wells Fargo Conference Call (WFC)

Miller Tabak is out with some notes from the Wells Fargo WFC conference call earlier today after the bank reported earnings. It has a Hold rating and a $30.58 price target on shares. In the note Miller Tabak writes, "At the beginning after merging with Wachovia, 23% of deposits were CDs; now, it's down to 10%. [Major improvement in quality of deposit base.] 2) Subsequent to the Wachovia merger, the combined entity has increased market share across all regions. [This mostly reflects WFC applying its own business model to Wachovia's business lines. Wachovia lost a lot of core deposit market share as it struggled throughout 2008.] 3) Inflows to NPAs declined (13%), while outflows into performing classification increased by 21%. 4) Federal Reserve interchange fee proposal: nothing final -- definitely a work in progress. However, worst case, would cost WFC ($250MM)/Q if not changed. [About ($0.05) per share each quarter.] 5) Expect to go back to 30% dividend payout, after discussion with regulators. Also would expect to put some of capital growth back into share repurchases. Will also buy in trust preferred securities, which are not included in capital measures under Basel III."