Wells Fargo & Company Issues 6.55% Series HH Preferred; Sells Depositary Shares

What Happened
Wells Fargo & Company (WFC) designated a new series of preferred stock — “6.55% Fixed Rate Reset Non‑Cumulative Perpetual Class A Preferred Stock, Series HH” — and sold depositary shares tied to that series. The Company filed a Certificate of Designation (filed with Delaware on Aug 17, 2026, effective upon filing), and on August 19, 2026 sold 1,750,000 depositary shares, each representing a 1/25th interest in a share of Series HH Preferred Stock. The underwriting agreement is dated August 12, 2026, and a Deposit Agreement for the depositary shares was dated August 19, 2026.

Key Details

• Series name and rate: 6.55% Fixed Rate Reset Non‑Cumulative Perpetual Class A Preferred Stock, Series HH.
• Authorized and issued: 70,000 shares of Series HH Preferred Stock (1,750,000 depositary shares × 1/25 = 70,000 preferred shares).
• Liquidation preference: $25,000 per Series HH preferred share — equals $1,000 per depositary share.
• Important dates: Underwriting Agreement dated Aug 12, 2026; Certificate of Designation filed Aug 14–17, 2026; depositary shares sold Aug 19, 2026.
• Filings/exhibits: Underwriting agreement, Certificate of Designation, Deposit Agreement, form of Depositary Receipt and legal opinions were filed with the Form 8‑K and related S‑3 registration.

Why It Matters
This transaction creates a new preferred security that raises capital for Wells Fargo via a fixed-rate, perpetual instrument with a periodic reset feature. For investors, the depositary shares provide access to the preferred with a $1,000 liquidation preference per depositary share and an initial fixed dividend yield implied by the 6.55% rate. The preferred is non‑cumulative (missed dividends are not accrued), which is an important feature for income investors. The filing documents the terms and legal opinions and clarifies the effect on the company’s capital structure without affecting common‑share voting or earnings directly.