Wells Fargo is ready to roll, chairman says

About this time four years ago, Wells Fargo finished its purchase of First Security Bank, with the still-fresh sting of a failed First Security/Zions Bancorp. merger on its back and an uncertain future.

On Tuesday morning, Wells Fargo chairman Richard Kovacevich said the bank has found its feet and is gaining speed in the Utah banking market.

Kovacevich, pegged to lead San Francisco-based Wells Fargo when it merged with Norwest Corp. in 1998, is in Salt Lake City this week to deliver the keynote address at the 14th annual Spencer F. Eccles Convocation. The convocation officially opens the academic year for students at the David Eccles School of Business at the University of Utah.

While in Utah, Kovacevich also thanked Wells Fargo employees for weathering the First Security merger and said there are "tremendous opportunities" for the bank to grow — in all its businesses, from investments to small-business loans to consumer banking.

"To do one of these mergers, with all the systems integration, the culture integration, is not easy," Kovacevich said in an exclusive interview with the Deseret Morning News. "I think they've done a marvelous job of doing all that, while still remaining customer-focused.

"Now, in the last year or two since the merger integration, we can really get out into the marketplace and be focused on customers. That's what's happening today, and that's why we're growing market share and increasing business. The first couple of years are always tough, because you're so internally focused on the merger stuff. But I think we have tremendous opportunities in all of our businesses here to continue to grow, because now we can be more externally-focused."

Kovacevich said there are encouraging signs for Wells Fargo in Utah, including:

• Commercial loan growth, which was "virtually non-existent" two years ago, is looking up, both for the middle market and small businesses.

• The mortgage business continues to be "very strong." While refinancing has declined with rising interest rates, "purchase money" mortgages are higher this year than last.

• The bank's investment business is coming back. Though still not at pre-recession levels, Kovacevich said the business is "well above the levels of two or three years ago."

• Wells continues to grow its consumer business. The bank is now second in market share in Utah, behind Zions.

The key to Wells' growth is offering more to its customers, Kovacevich said.