FINC 677 & LDEV 664: Wells Fargo came to class!

... and we got chocolates!
This Thursday we had Marc Krebs (Aggie Class '99) & Sarah Montgomery (Aggie class '10)
Marc Krebs started in the energy industry, then went to San Francisco, he is been in Houston Office in 2007.
Sarah Montgomery has been part of the Wells Fargo family for 4 years now. She tarted as analyst in Florida, then went to California and now is in Houston.

Here are a few highlights of their presentation:

• Largest bank in terms of market capitalization
• 272,000 + employees.
• Stock Price 54-43
• Priorities
• Putting Customers first
• Growing Revenue
• Managing Expenses
• Living our vision and values

• Credit Management training program (CMTP) (in San Francisco) is for 3 years.
• As an analyst you can change groups if you dont like commercial real estate banking.
• REIT is only east coast and west coast (Los Angeles & Chicago).
• Largest commercial Real Estate Lending (with 130k outstanding) and JP Morgan following in te second place.
• Their credit philosophy: They check on the people (who they are and values), on their credit (Balance sheet, credit history) and Real Estate (Location)
• The majority of their liquidity is minimum 5 million  dollars, average net worth is 20 million to 2.0 billion. They work all types of Real Estate. They follow the deal wherever it is, their expertise is devided all over the country and if necessary they send it to the right office.
• They talked about 'The domain northgate' at College Station TX (located where cafe Eccel used to be)
• loan 18.8 mm
• ltv 72% to 66%
• Loan term 4+1
• Interest only during construction
• amortization : 36 first months is interest only
• Will be delivered in august of next year
• Some cool insight is that, according to Mr. Krebs the market is definitely somewhere or approaching to the top of the cycle, interest rates are very high. But thinks that we will see things slowing down sometime soon.