<div id="readability-page-1"><p>Wells Fargo <span>NYSE: WFC<span></span></span> has spent much of the decade apologizing. A fake-accounts scandal cost the bank its reputation, its CEO, billions in fines, and most powerfully, a Fed-imposed asset cap that froze its balance sheet.</p> <p>Now, with a few quarters behind it since the cap was finally lifted, there are strong signs this year that forgiving customers are returning, and the numbers are compelling. With these signs of momentum, analysts are giving Wells Fargo a cautious recommendation.</p><div><p><span></span><span>Get <strong>Wells Fargo &amp; Company</strong> alerts:</span></p></div> <h2>Wells Fargo Is Growing Again</h2> <p>There’s little doubt the bank has woken up since the Federal Reserve loosened its reins in mid-2025. Net income for the first quarter came in at $5.3 billion, or $1.60 per share, up from $4.9 billion and $1.39 a year earlier, beating what analysts expected. Total revenue climbed 6% year-over-year to $21.4 billion, just below analysts’ estimates.</p> <p>Both pillars of income saw healthy increases. Net interest income, or the difference between what it pays depositors and what it charges borrowers, rose 5% or by roughly $600 million. Non-interest income from fees for wealth management, credit cards, and investment banking rose even faster, up 8% to $9.4 billion. From consumer lending and commercial banking to corporate and investment banking and wealth management, each saw revenue rise convincingly through the year.</p> <h2>The Fed’s Asset Cap Finally Came Off</h2><p>Driving the growth more than any other event was the Federal Reserve's decision to lift the $1.95 trillion asset cap that had constrained the bank since 2018. Regulators had previously found that employees opened millions of unauthorized accounts to meet aggressive sales targets, resulting in widespread consumer abuses and compliance failures.</p> <p>The resulting cap, considered an extraordinary punishment rarely put on a major institution, prevented the bank from growing its balance sheet. Competitors like Bank of America <span>NYSE: BAC<span></span></span> and JPMorgan Chase <span>NYSE: JPM<span></span></span> quickly took advantage.</p> <p>The decision to lift the cap last year was, in essence, an acknowledgment that Wells Fargo had done enough remediation to be treated like a normal bank again.</p> <p>The balance sheet freedom is already showing up in the numbers. Average assets for the first quarter rose 13% to $2.17 trillion from the sub-cap level of $1.92 trillion a year earlier. Year-over-year (YOY) loan growth reached 11% while deposits grew 7% in this year’s first three months YOY.</p> <h2>The Bank Is Rewarding Shareholders Again</h2><p>The push to bolster confidence also includes rewarding shareholders. The company bought back $4 billion in common stock in the first quarter. And the board recently declared another quarterly common dividend of 45 cents per share, payable June 1, translating to a competitive dividend yield between 2.2% and 2.3%.</p> <p>In February, the bank also signaled greater confidence in its balance sheet by announcing the full redemption of $3.5 billion in preferred stock. By replacing expensive, fixed-rate securities with more flexible common equity, Wells Fargo signaled confidence in its capital levels and the expected health of its business.</p> <h2>Credit Risks and Margin Pressure Remain</h2><p>Despite the positive direction for many of the numbers, challenges and risks remain apparent. The bank’s credit quality overall appears to be improving, but the provision for credit losses rose a steep 22% in the first quarter compared with a year ago. That $1.1 billion set aside for possible troubled loans could be overly cautious or a sign of things to come.</p> <p>Wells Fargo’s net interest margin also remains under pressure, meaning the bank is earning a smaller difference on its lending activity than it did a year ago. The margin shrank 20 basis points to 2.47% from 2.67% in the first quarter last year. So, while net interest income overall was rising, non-interest income may need to start making up some gaps.</p> <p>Looking ahead, the bank’s management has said it expects further margin contraction in the months ahead, though net interest income for the year should rise about 5%, depending on any Fed action.</p> <h2>Analysts Still See Significant Upside</h2> <p>This split between the bank’s nascent growth spurt and the risks that remain has analysts leaning to a Moderate Buy, but with a split of opinions. With 15 Buy ratings, 10 other analysts are rating it a Hold. The consensus 12-month price target is $97.53 per share, a respectable upside potential of over 20%.</p> <p>The bank has already seen its stock fluctuate significantly this year, as have many others in the financial sector. Expectations of possible lower interest rates had many bank shares at high levels as the year started. But with the prospect of rate cuts increasingly unlikely, and the onset of the war in Iran in March, industry sentiment took a negative turn. Shares in Wells Fargo, which already climbed near $100 in early January, have fallen about 15% since the start of the year. The 12-month price target would return it to earlier levels.</p> <h2>Wells Fargo’s Reputation Rebuild Is Now Being Tested</h2><p>Wells Fargo has spent the better part of a decade earning back the right to be taken seriously again. The question is whether that time has come.</p> <p>With the asset cap lifted, loan growth accelerating, and capital returns expanding, the bank is no longer just a comeback story. It is beginning to look like a completed one. And while risks remain, at roughly 12 times trailing earnings and a dividend yield above 2%, the stock appears to have priced in uncertainties. For patient investors, that may be a reasonable trade.</p> <h2>Should You Invest $1,000 in Wells Fargo &amp; Company Right Now?</h2><p>Before you consider Wells Fargo &amp; Company, you'll want to hear this.</p><p>MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Wells Fargo &amp; Company wasn't on the list.</p><p>While Wells Fargo &amp; Company currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.</p><p>View The Five Stocks Here</p>                  </div>

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<p>Wells Fargo's stock is gaining attention as loan growth accelerates and shareholder returns rise, following the lifting of a Federal Reserve-imposed asset cap. The bank reported a net income of $5.3 billion for Q1, up from $4.9 billion a year earlier, with total revenue climbing 6% to $21.4 billion. Despite positive trends, challenges remain, including a 22% rise in provisions for credit losses and pressure on net interest margins. Analysts recommend a Moderate Buy, with a 12-month price target of $97.53, indicating over 20% upside potential.</p>

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BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

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BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

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BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

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BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

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BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

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Wells Fargo’s Comeback Is Real—But Not Risk-Free