History of Wells Fargo: From Humble Beginnings to Global Reach

Wells Fargo's history dates back to 1852 when Henry Wells and William Fargo started a small express company in New York City.

The company's early success was largely due to its innovative approach to transportation, using horse-drawn carriages to quickly deliver packages across the country.

In 1857, Wells, Fargo & Company was officially formed, with a focus on providing banking and financial services to the growing number of Americans moving west.

By the late 1800s, Wells Fargo had expanded its operations to include a network of stages and express offices across the western United States.

In 1852, Henry Wells and William Fargo founded Wells Fargo, capitalizing on the demand for reliable freight shipping and payment services during the California gold rush.

The company's first office outside the US was opened in Panama the same year it was founded, serving as a key gold transit point.

Wells Fargo enabled immigrants to send money back to Europe, reflecting its international mindset from the start.

The company took control of the Pony Express in 1861, making deliveries between Sacramento and Salt Lake City faster by more than half.

It took up to 25 days for mail to reach its final destination with stagecoaches before the Pony Express reduced delivery time.

Wells Fargo upgraded its stagecoaches in 1868, remaining responsible for long-distance stagecoach lines in the western US.

Stagecoaches have remained an important part of Wells Fargo's brand ever since.

Lloyd Tevis, a friend of Central Pacific railroad leaders, became president of Wells Fargo in 1872 and held the presidency for 20 years, significantly expanding the bank's operations. He opened offices in new rail hubs, mining camps, and cattle towns across the West.

Wells Fargo went on to survive various disastrous historical events, including World War I, World War II, the Great Depression, the 2008 financial crisis, and more recessions than you can count.

In the 1970s and 1980s, Wells Fargo expanded its international offices and acquired several other institutions, including Crocker National Bank in 1986, Bank of America's Personal Trust Business in 1987, and Barclays Bank of California in 1988.

Here are some of the notable banks Wells Fargo acquired during this period:

In 1860, Wells Fargo won the contract to operate the western portion of the Pony Express mail delivery system.

They used a fleet of horses and riders to quickly carry mail overland from Missouri to California.

Wells Fargo's expansion into the western United States began in 1872 when Lloyd Tevis, a friend of the Central Pacific railroad leaders, became the bank's president. He held the presidency for 20 years and significantly expanded the bank's operations.

Lloyd Tevis opened offices in new rail hubs, mining camps, and cattle towns across the West, establishing Wells Fargo's presence in key areas. This strategic move helped the bank grow and thrive in the region.

In 1860, Wells Fargo won the contract to operate the western portion of the Pony Express mail delivery system, which they used a fleet of horses and riders to quickly carry mail overland from Missouri to California. They continued Pony Express operations for 18 months until telegraph lines connected the East and West.

Wells Fargo's expansion continued in 1986 with a major acquisition of Crocker National Bank for $1.1 billion, vastly expanding its presence and branch network throughout California. This acquisition further solidified Wells Fargo's position in western U.S. states.

The bank's banking side merged with Nevada National Bank to form Wells Fargo Nevada National Bank, expanding its services and reach.

In 1917, the U.S. federal government nationalized Wells Fargo's express operations due to World War I. This led to the creation of the U.S. Railway Express Agency (REA) as a federal agency to run express services.

The creation of the REA marked a significant shift in the way express services were handled in the country. The REA was tasked with running express services, taking over from Wells Fargo.

Wells Fargo continued to expand its reach in California through its branch networks. It was a busy time for the company as it looked to establish itself as a major player in the banking sector.

The company's growth was further solidified in 1923 when it merged with the Union Trust Company to form Wells Fargo Bank & Union Trust Company. This merger added a new dimension to the company's services.

Wells Fargo's expansion in the San Francisco Bay Area was also notable, with 41 more branches being added to the area.

Wells Fargo & Co. separated its express and banking services in 1905, merging with Nevada National Bank to form the Wells Fargo Nevada National Bank.

The company's express operations played a crucial role in evacuating patients from St. Mary’s Hospital after the 1906 San Francisco earthquake.

In 1918, Wells Fargo ended its express business, transferring all its equipment to American Railway Express to help with the costs of World War I.

This move closed over 10,000 express offices in the US.

Wells Fargo Bank continued to grow after the war, becoming a leading commercial bank on the Pacific Coast.

It went through another merger, as Wells Fargo Nevada merged with Union Trust Company.

Wells Fargo's innovative approach to banking led to a commercial success in 1967 with the publication of full-colored checks, which were advertised on billboards and television.

Wells Fargo's banking structure has its roots in the California Gold Rush era. The bank's early success was fueled by its ability to provide banking services to the growing number of miners and settlers.

In 1852, Wells Fargo began offering express services, which allowed customers to send and receive money across long distances. This service was a game-changer for the bank, as it enabled it to expand its reach and establish itself as a major player in the banking industry.

Wells Fargo's banking structure continued to evolve over the years, with the bank incorporating in 1870 and expanding its services to include deposit accounts and loans. By the early 1900s, Wells Fargo had established a network of branches across the western United States.

In 1954, Wells Fargo Bank shortened its name after previous mergers.

This change reflected the bank's growth into a major West Coast regional bank.

The bank's name change was a significant milestone in its history.

It marked a major shift in the bank's status, solidifying its position as a prominent financial institution.

By the 1950s, Wells Fargo had established itself as a major player in the West Coast banking scene.

Its name change was a natural progression of its growth and expansion.

In 1968, Wells Fargo Bank N.A. was formed through a National Bank Charter. This charter made Wells Fargo subject to supervision by the Comptroller of the Currency.

This type of charter is a key part of the banking structure in the US, and it allows banks to operate under federal supervision.

In 1969, Wells Fargo Bank N.A. became the main banking subsidiary of the holding company.

Integration challenges led many executives to depart from their positions.

Wells Fargo Bank N.A.'s status as the main banking subsidiary marked a significant shift in the company's structure.

Wells Fargo has a long history of mergers and acquisitions that have shaped the bank into what it is today. In 1986, the bank made a major acquisition of Crocker National Bank for $1.1 billion, vastly expanding its presence and branch network throughout California.

Wells Fargo continued to grow through acquisitions, buying out Barclays Bank of California in 1988 and Wells Fargo Nikko Investment Advisors in 1989. The bank also acquired 130 California branches of Great American Bank in 1991 and First Interstate Bancorp in 1996.

One notable acquisition was the purchase of Wachovia in 2008 for $15.1 billion in stock. This deal brought Wells Fargo a diverse network of coast-to-coast branches and assets of $812 billion, making it the fourth-largest banking organization in the US at the time.

In 1998, Norwest Corporation merged with Wells Fargo Bank in a $34.4 billion deal.

The merged business took Wells Fargo's name, and Norwest's CEO Richard Kovacevich became the new company's CEO. Paul Hazen, Wells Fargo's former CEO, became the chairman of the combined bank.

Wells Fargo adopted Norwest Corporation's business strategy of cross-selling, which involved selling multiple financial services to the same people, focusing on relationship banking. This strategy was a significant departure from the industry standard of two products per customer.

In 1999, Wells Fargo announced that it wanted each of its 15 million customers to sign up for eight different products.

Wells Fargo made a major acquisition of Crocker National Bank in 1986 for $1.1 billion.

This acquisition vastly expanded Wells Fargo's presence and branch network throughout California, solidifying its position in western U.S. states.

In the 1970s and 1980s, Wells Fargo expanded its international offices and acquired other institutions, including banks. The bank's international expansion was a significant move, allowing it to tap into new markets and customer bases.

Here's a list of some of the banks Wells Fargo acquired during this period:

The acquisition of First Interstate Bancorp in 1996 was a significant move, expanding Wells Fargo's presence in the western United States.

In 2008, Wells Fargo acquired Wachovia for $15.1 billion in stock, expanding its geographic reach to a diverse network of coast-to-coast branches.

The acquisition provided Wells Fargo with a significant boost in assets, with Wachovia's $812 billion in assets making it the fourth-largest banking organization in the US at the time.

Wells Fargo's acquisition of Wachovia was a strategic move that allowed the bank to expand its reach beyond the West Coast, where it was based in San Francisco.

Wachovia had been a target for other banks as well, with Citigroup proposing $2.2 billion for the bank, but Wachovia declined in favor of Wells Fargo's offer.

The acquisition marked a significant shift for Wells Fargo, which had previously been known primarily for its retail banking operations.

By Q2 2009, Wells Fargo's investment revenue had increased by 29%, a significant jump that demonstrated the bank's growing investment banking operations.

The acquisition also made Wells Fargo the top mortgage lender in the country, a position it held in 2009.

Wells Fargo's cross-selling scandal emerged in 2016, resulting in over 1.5 million fake accounts being opened to meet sales goals.

The bank's strong sales culture led to employees being pressured to meet extreme sales goals, with some staying late if they couldn't meet their targets.

Between 2011 and 2015, employees created over 2 million bank accounts or lines of credit on behalf of customers without their knowledge.

This led to 85,000 accounts resulting in fees worth approximately $2 million, and 14,000 credit card accounts generating fees worth over $400,000 for the bank.

The scandal damaged the bank's reputation and resulted in fines, with the Consumer Financial Protection Bureau (CFPB) fining the company $185 million.

In 2018, Wells Fargo sold 52 physical bank branch locations to Flagstar Bank, marking a significant change in the bank's operations.

The bank's CEO, John G. Stumpf, resigned and was later fined $17.5 million by the US government and banned from working at a bank again.

Wells Fargo's bank does business in 22 countries, managing over 5,600 branches and 12,000 ATMs, and has over 68 million customers.

In 2020, the bank reached a historic $3 billion settlement with the US government, resolving the investigation into the fake accounts scandal.

Wells Fargo was founded by Henry Wells and William Fargo in 1852. That's a pretty impressive start to a long and storied history.

Here are some key milestones in Wells Fargo's timeline:

Wells Fargo's acquisition of Wachovia in 2008 was a significant move, expanding the bank's reach and assets.

In the modern era, Wells Fargo has continued to grow and evolve. The company's stock split in 2001 allowed it to expand its reach and operations.

Wells Fargo's acquisition of Wachovia in 2008 marked a significant milestone in its history. This acquisition added over 10,000 ATMs and 5,000 branches to Wells Fargo's network.

The company's online banking services have improved significantly since the early 2000s. Today, customers can manage their accounts, pay bills, and transfer funds with ease.

Wells Fargo has also made a concerted effort to expand its services to underserved communities. The company's Community Reinvestment Act (CRA) compliance has been a key area of focus.

Wells Fargo has faced challenges in recent years, including a major data breach in 2017. The company has since implemented additional security measures to protect customer data.

The Wells Fargo logo is a iconic symbol of the company's heritage and commitment to progress. Since 1852, the stagecoach has been a part of the logo, representing both its history and forward-thinking approach.

For over a century, from 1852 to 2009, the logo featured a stagecoach with six horses and the company's name in capital letters underneath. After the Wachovia acquisition, the logo colors changed to red and yellow.

In 2019, Wells Fargo updated its logo and visual identity as part of the "This is Wells Fargo" campaign. This change symbolized the company's transformation and commitment to innovation.

Wells Fargo pays quarterly dividends to attract investment, and in Q1 2024, it paid a quarterly dividend of $0.35 per share.

This is an increase from Q3 2023's $0.30 per share, and it amounts to an annual dividend yield of 2.88%.

The bank had to cut its dividends by over 80% in Q3 2020, decreasing from $0.51 to $0.10, due to the Federal Reserve's stress test during the COVID-19 pandemic.

Here's a breakdown of Wells Fargo's dividend history: