EFTA01124129.pdf

SUBJECT TO COMPLETION. DATED JANUARY 19, 2016 cum ac Prospectus Supplement to Prospectus Dated May 5, 2014 E 10 WELLS o w FARGO o ••co 00 Wells Fargo & Company .O • 0 Depositary Shares, Each Representing a 1/1,000th Interest era M M_ in a Share of Non-Cumulative Perpetual Class A Preferred Stock, Series W g Wells Fargo & Company is offering depositary shares, each representing a 111,000th interest in a share of *8 .2 Non-Cumulative Perpetual Class A Preferred Stock, Series W, no par value, with a liquidation preference amount of $25,000 per share (equivalent to 525 per depositary share) (the "Series W Preferred Stock"). Each depositary share entitles the holder, through the ▪ 4) depositary, to a proportional fractional interest in all nghts, powers and preferences of the Series W Preferred Stock represented by the •O o depositary share. Dividends on the Series W Preferred Stock, when, as and if declared by our board of directors or a duly authorized committee of the board, will accrue and be payable on the liquidation preference amount of $25,000 per share, on a non-cumulative •c or 4.! basis, quarterly in arrears on the 15th day of March, June, September and December of each year, commencing on March 15, 2016, at a • c E rate per annum equal to %. If our board of directors or a duly authorized committee of the board has not declared a dividend on the N Series W Preferred Stock before the dividend payment date for any dividend period, such dividend shall not be cumulative and shall not 0 to a .c accrue or be payable for such dividend period, and we will have no obligation to pay dividends for such dividend period, whether or not ▪ 0 3 0 dividends on the Series W Preferred Stock are declared for any future dividend period. t al 0 The Series W Preferred Stock may be redeemed by us at our option in whole, or in part, on March 15, 2021, or on any C dividend payment date thereafter, at a redemption price equal to $25,000 per share of Series W Preferred Stock (equivalent to $25 per 3 W depositary share), plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends. The O To c Series W Preferred Stock may also be redeemed by us at Our option in whole, but not in part, prior to March 15, 2021, upon the occurrence of a "regulatory capital treatment event," as described herein, at a redemption price equal to $25,000 per share of Series W E • O)O Preferred Stock (equivalent to 525 per depositary share), plus an amount equal to any declared and unpaid dividends, without • C CO 3.0 accumulation of any undeclared dividends. ▪0 C0 O We intend to file an application to list the depositary shares on the New York Stock Exchange (the "NYSE") under the C aw symbol "WFCPrW". If the application is approved, we expect trading of the depositary shares on the NYSE to beiir within the 30-day O E£ period after the initial delivery of the depositary shares. :0 II 0 O ▪ o The depositary shares are unsecured securities of Wells Fargo & Company. The depositary shares are not savings O co n accounts, deposits, or other obligations of a depository institution and are not insured by the Federal Deposit Insurance Sri Corporation, the Deposit Insurance Fund or any other governmental agency. :mac O .O ≥ c0 Neither the Securities and Exchange Commission nor any state securities commission or other regulatory body has t g:5 0 approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense. 41)*C • = C arl>i CO C Investing in the depositary shares involves risks. See "Risk Factors" beginning on page 5-10. Proceeds, before O 0 10 Underwriting expenses. to C Public Offering Price Discount°. Wells Fargo"' 0 Per Depositary Shama' S S CO 04 Totaloi S S TI) i- o' er ea. O1 (I) Reflects depositary shares paid to institutional investors, for which the undowniers received an undervonling discount of 5 per depositary share. and E depositary shares sold to retail investors, for Muth the underwriters received an underwriting discount of f per depositary share. (2) We have granted the underwriters an option to purchase up to an additional depositary shares within 30 days after the date of this prospectus suppkmeni at the CO public offering price. less the underwnting discount. solely to cover OWT41101111C111S. if any. ° C afO.-E5 0i IN The underwriters expect to deliver the depositary shares in book-ent form through the facilities of The Depository Trust Company for the accounts of its participants, including Euroclear Bank S.A.S, as operator of the Euroclear System, and Clearstream Banking societ6 anonyme on January , 2016. •(,) O. Because our affiliate, Wells Fargo Securities, LLC, is participating in sales of the depositary shares, the offering is being conducted in compliance with the Financial Industry Regulatory Authority ("F1NRA") Rule 5121, as administered by FINRA. ...O.aO, c t•.cc Sole Book Running Manager Wells Fargo Securities C 73 Joint Lead Managers • co co BofA Merrill Lynch Citigroup Goldman, Sachs & Co. CL Er, M. Morgan Morgan Stanley RBC Capital Markets UBS Investment Bank u) L E :E c Prospectus Supplement dated January , 2016 EFTA01124129  ABOUT THIS PROSPECTUS SUPPLEMENT You should read this prospectus supplement along with the accompanying prospectus, any related free writing prospectus prepared by us or on our behalf and the documents incorporated by reference in this prospectus supplement. These documents contain information you should consider when making your investment decision. You should rely only on the information contained in this prospectus supplement, the accompanying prospectus, any related free writing prospectus prepared by us or on our behalf and the documents they incorporate by reference. We have not, and the underwriters have not, authorized anyone to provide you with different or additional information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus supplement and the accompanying prospectus do not constitute an offer to sell or a solicitation of an offer to buy any securities other than the depositary shares. This prospectus supplement and the accompanying prospectus may only be used where it is legal to sell the depositary shares and do not constitute an offer to sell or a solicitation of an offer to buy such depositary shares in any circumstances in which such offer or solicitation is unlawful. The distribution of this prospectus supplement and the accompanying prospectus and the offering of the depositary shares in certain jurisdictions may be restricted by law. Persons into whose possession this prospectus supplement and the accompanying prospectus come should inform themselves about and observe any such restrictions. Information contained or incorporated by reference in this prospectus supplement and the accompanying prospectus may change after the date on the front of the applicable document. You should not interpret the delivery of this prospectus supplement and the accompanying prospectus, or the offering and sale of the depositary shares, as an indication that there has been no change in our affairs since those dates. WELLS FARGO & COMPANY We are a diversified, community-based financial services company organized under the laws of the State of Delaware and registered as a financial holding company and a bank holding company under the Bank Holding Company Act of 1956, as amended. We provide banking, insurance, trust and investments, mortgage banking, investment banking, retail banking, brokerage and consumer finance through banking stores and offices, ATMs, the intemet and other distribution channels to individuals, businesses and institutions in all 50 states, the District of Columbia and elsewhere internationally to support customers who conduct business in the global economy. When we refer to "Wells Fargo," "we," "our" and "us" in this prospectus supplement, we mean only Wells Fargo & Company, and not Wells Fargo & Company together with any of its subsidiaries, unless the context indicates otherwise. We are a separate and distinct legal entity from our banking and other subsidiaries. A significant source of funds to pay dividends on our common and preferred stock and debt service on our debt is dividends from our subsidiaries. Various federal and state statutes and regulations limit the amount of dividends that our banking and other subsidiaries may pay to us without regulatory approval. S-2 EFTA01124130  SUMMARY Thefollowing information about the depositary shares and the Series IV Preferred Stock summarizes. and should be read in conjunction with, the information contained in thisprospectus supplement and in the accompanyingprospectus. It may not contain all the information that is important to you. You should carefully read this prospectus supplement and the accompanyingprospectus to understandfilly the terms ofthe depositary shares and other considerations that are important to you in making a decision about whether to invest in the depositary shares. To the extent the information in this prospectus supplement is inconsistent with the information in the accompanyingprospectus, you should rely on the information in thisprospectus supplement. You shouldpay special attention to the "Risk Factors" section of this prospectus supplement to determine whether an investment in the depositary shares is appropriatefor you. Issuer Wells Fargo & Company Securities Offered We are offering depositary shares depositary shares if the underwriters exercise their over- allotment option in full), each representing a 1/1,000th interest in a share of Series W Preferred Stock. Each holder of depositary shares will be entitled, through the depositary, in proportion to the applicable fraction of a share of Series W Preferred Stock represented by such depositary shares, to all the rights, powers and preferences of the Series W Preferred Stock represented thereby, including dividend, voting, redemption and liquidation rights, and subject to the limitations, qualifications and restrictions thereof. We may elect from time to time to issue additional shares of Series W Preferred Stock and depositary shares representing interests in such shares, without notice to, or consent from, the existing holders of Series W Preferred Stock or holders of the depositary shares, and all those additional shares would be deemed to form a single series with the Series W Preferred Stock, described by this prospectus supplement and the accompanying prospectus. Ranking The Series W Preferred Stock will rank equally with our parity stock (as defined below in "Description of the Series W Preferred Stock—Dividends") as to payment of dividends and distribution of assets upon ow liquidation, dissolution or winding up. The Series W Preferred Stock will rank senior to ow common stock, and any of our other stock that is expressly made junior to the Series W Preferred Stock, as to payment of dividends and/or distribution of assets upon our liquidation, dissolution or winding up. We may, from time to time, create and issue additional shares of preferred stock and shares of preference stock ranking equally with the Series W Preferred Stock as to dividends and/or distribution of assets upon our liquidation, dissolution or winding up. We S-3 EFTA01124131  may also create and issue shares of preferred stock and preference stock ranking senior to the Series W Preferred Stock as to dividends and/or distribution of assets upon our liquidation, dissolution or winding up with the requisite consent of the holders of the Series W Preferred Stock and our parity stock entitled to vote thereon. In addition, we may, from time to time, issue additional shares of preferred stock that rank junior to the Series W Preferred Stock. Dividends Dividends on the Series W Preferred Stock, when, as and if declared by our board of directors or a duly authorized committee of the board, will accrue and be payable out of legally available funds on the liquidation preference amount of $25,000 per share, on a non-cumulative basis, quarterly in arrears on the 15th day of March, June, September and December of each year, commencing on March 15, 2016, at a rate per annum equal to %; provided that dividends not declared with respect to aiw dividend period (as defined below) shall not be cumulative. Any dividends paid with respect to the Series W Preferred Stock will be distributed to holders of the depositary shares in the manner described under "Description of the Depositary Shares—Dividends and Other Distributions." A "dividend period" is the period from, and including, a dividend payment date (as defined below) to, but excluding, the next dividend payment date, except for the initial dividend period, which will be the period from, and including, January , 2016 to, but excluding, March 15, 2016. If our board of directors or a duly authorized committee of the board has not declared a dividend on the Series W Preferred Stock before the dividend payment date for any dividend period, such dividend shall not be cumulative and shall not accrue or be payable for such dividend period, and we will have no obligation to pay dividends for such dividend period, whether or not dividends on the Series W Preferred Stock are declared for any future dividend period. So long as any shares of Series W Preferred Stock remain outstanding, (I) no dividend shall be declared and paid or set aside for payment and no distribution shall be declared and made or set aside for payment on any common stock, and no shares of common stock shall be repurchased, S-4 EFTA01124132 redeemed or otherwise acquired for consideration by us, directly or indirectly, nor shall any monies be paid to or made available for a sinking fund for the redemption of any such common stock by us (other than (i) a dividend payable in common stock or (ii) the acquisition of shares of common stock in exchange for, or through application of proceeds of the sale of, shares of common stock); (2) no dividend shall be declared and paid or set aside for payment and no distribution shall be declared and made or set aside for payment on any junior stock (as defined below in "Description of the Series W Preferred Stock—Dividends") other than common stock, and no shares of junior stock other than common stock shall be repurchased, redeemed or othenvise acquired for consideration by us, directly or indirectly, nor shall any monies be paid to or made available for a sinking fund for the redemption of any such junior stock other than common stock by us (other than (i) a dividend payable solely in shares of junior stock, (ii) any dividend in connection with the implementation of a stockholder rights plan, or the redemption or repurchase of any rights under any such plan, (iii) any dividend in the form of stock, warrants, options or other rights where the dividend stock or stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks equally with or junior to such stock, (iv) as a result of a reclassification of junior stock other than common stock for or into other junior stock, (v) the exchange or conversion of one share of junior stock other than common stock for or into another share of junior stock, (vi) through the use of proceeds of a substantially contemporaneous sale of other shares of junior stock, (vii) any purchase, redemption or other acquisition of junior stock other than common stock pursuant to any employee, consultant or director incentive or benefit plan or arrangement (including any employment, severance or consulting arrangements) of ours or of any of our subsidiaries adopted before or after the date of this prospectus supplement, (viii) any purchase of fractional interests in shares of ow junior stock other than common stock pursuant to the conversion or exchange provisions of such junior stock other than common stock or the securities being converted or exchanged, (ix) the purchase of our junior stock other than common stock by Wells Fargo Securities, LLC, or any other affiliate of ours, in connection with the distribution thereof or (x) the purchase of our junior stock other than common stock by Wells Fargo Securities, LLC, or any other affiliate of ours, in connection with market-making S-5 EFTA01124133 or other secondary market activities in the ordinary course of business); and (3) no shares of parity stock will be repurchased, redeemed or otherwise acquired for consideration by us otherwise than pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series W Preferred Stock and such parity stock during a dividend period (other than (i) as a result of a reclassification of parity stock for or into other parity stock or junior stock, (ii) the exchange or conversion of one share of parity stock for or into another share of parity stock or junior stock, (iii) through the use of proceeds of a substantially contemporaneous sale of other shares of parity stock or junior stock, (iv) any purchase, redemption or other acquisition of parity stock pursuant to any employee, consultant or director incentive or benefit plan or arrangement (including any employment, severance or consulting arrangements) of ours or of any of our subsidiaries adopted before or after the date of this prospectus supplement, (v) any purchase of fractional interests in shares of our parity stock pursuant to the conversion or exchange provisions of such parity stock or the securities being converted or exchanged, (vi) the purchase of our parity stock by Wells Fargo Securities, LLC, or any other affiliate of ours, in connection with the distribution thereof or (vii) the purchase of our parity stock by Wells Fargo Securities, LLC, or any other affiliate of ours, in connection with market-making or other secondary market activities in the ordinary course of business), unless, in each case, the full dividends for the then-current dividend period on all outstanding shares of the Series W Preferred Stock have been declared and paid or declared and a sum sufficient for the payment of those dividends has been set aside. Except as provided below, for so long as any share of Series W Preferred Stock remains outstanding, we will not declare, pay or set aside for payment, dividends on any parity stock unless we have paid in full, or set aside payment in full, all dividends for the then-current dividend period for outstanding shares of Series W Preferred Stock. To the extent that we declare dividends on the Series W Preferred Stock and on any parity stock but cannot make full payment of those declared dividends, we will allocate the dividend payments on a proportional basis among the holders of shares of Series W Preferred Stock and the holders of any parity stock where the terms of such parity stock provide similar dividend rights. S-6 EFTA01124134  Subject to the conditions described above, and not othenvise, dividends (payable in cash, stock or otherwise), as may be determined by our board of directors or a duly authorized committee of the board, may be declared and paid on our common stock, and any other securities ranking equally with or junior to the Series W Preferred Stock, from time to time out of any assets legally available for such payment, and the holders of the Series W Preferred Stock shall not be entitled to participate in those dividends. See "Description of the Series W Preferred Stock— Dividends" for more information about the payment of dividends. Dividend Payment Dates The 15th day of March, June, September and December of each year, commencing on March 15, 2016 (each a "dividend payment date"). If any date on which dividends othenvise would be payable is not a business day (as defined below under "Description of the Series W Preferred Stock—Dividends"), then the dividend payment date will be the next succeeding business day, without interest or other payment in respect of such delay. Liquidation Rights In the event of our voluntary or involuntary liquidation, dissolution or winding up, the holders of the Series W Preferred Stock are entitled to receive out of our assets available for distribution to stockholders, before any distribution of assets is made to holders of our common stock or any of our other stock ranking junior to the Series W Preferred Stock as to such distribution, a liquidating distribution of $25,000 per share of Series W Preferred Stock (equivalent to $25 per depositary share). plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends. Distributions will be made only to the extent of our assets remaining available after satisfaction of all liabilities to creditors and subject to the rights ofholders of any securities ranking senior to the Series W Preferred Stock and pro rata as to the Series W Preferred Stock and shares of our parity stock as to such distribution. The Series W Preferred Stock may be fully subordinated to interests held by the U.S. government in the event of a receivership, insolvency, liquidation or similar proceeding under the "orderly liquidation authority" of the Dodd- Frank Act (as defined below). See "Description of the Series W Preferred Stock— Liquidation Rights" for more information about liquidation rights. S-7 EFTA01124135 Optional Redemption Subject to applicable law, the Series W Preferred Stock may be redeemed by us at our option in whole, or in part. on March 15, 2021, or on any dividend payment date thereafter, at a redemption price equal to $25,000 per share of Series W Preferred Stock (equivalent to $25 per depositary share), plus an amount equal to any declared and unpaid dividends, without accumulation of any undeclared dividends. Subject to applicable law, the Series W Preferred Stock may also be redeemed by us at our option in whole, but not in part, prior to March 15, 2021, upon the occurrence of a "regulatory capital treatment event," as described herein, at a redemption price equal to $25,000 per share of Series W Preferred Stock (equivalent to $25 per depositary share), plus an amount equal to any declared and unpaid dividends. without accumulation of any undeclared dividends. Our right to redeem the Series W Preferred Stock is subject to limitations. Under the risk-based capital guidelines of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") applicable to bank holding companies, any redemption of the Series W Preferred Stock is subject to the prior approval of the Federal Reserve Board. Our redemption of the Series W Preferred Stock will cause the redemption of the corresponding depositary shares. Neither the holders of the Series W Preferred Stock nor the holders of the related depositary shares will have the right to require redemption. See "Description of the Series W Preferred Stock— Optional Redemption" for more information about optional redemption. Voting Rights The holders of shares of the Series W Preferred Stock do not have voting rights, except in the case of certain failures by our board of directors to declare dividends, as specifically required by Delaware law and as otherwise set forth herein. Holders of depositary shares must act through the depositary to exercise any voting rights. For more information about voting rights, see "Description of the Series W Preferred Stock—Voting Rights" and "Description of the Depositary Shares—Voting the Series W Preferred Stock." Maturity The Series W Preferred Stock does not have a maturity date, and we are not required to redeem the Series W Preferred Stock. Accordingly, the Series W Preferred Stock will remain outstanding indefinitely, unless and until we decide to redeem it. S-8 EFTA01124136 Preemptive and Conversion Rights The holders of the shares of our Series W Preferred Stock do not have any preemptive or conversion rights. Depositary, Transfer Agent and Registrar Wells Fargo Bank, •. will serve as depositary, transfer agent and registrar for the Series W Preferred Stock and as transfer agent and registrar for the depositary shares. Listing We intend to apply for listing of the depositary shares on the NYSE under the symbol "WFCPrW". If approved for listing, we expect trading of the depositary shares to commence within a 30-clay period after the initial delivery of the depositary shares. Tax Consequences For a discussion of the tax consequences relating to the Series W Preferred Stock, see "Certain U.S. Federal Income Tax Considerations" herein and in the accompanying prospectus. Use of Proceeds See "Use of Proceeds" in the accompanying prospectus. Conflicts of Interest The representative of the underwriters, Wells Fargo Securities, LLC, is our affiliate and is a member of FINRA. The distribution arrangements for this offering comply with the requirements of FINRA Rule 5121 regarding a FINRA member firm's participation in the distribution of securities of an affiliate. In accordance with Rule 5121, no FINRA member that has a conflict of interest under Rule 5121 may make sales in this offering to any discretionary account without the prior approval of the customer. Our affiliates, including Wells Fargo Securities, LLC, may use this prospectus supplement and the accompanying prospectus in connection with offers and sales of the depositary shares in the secondary markct. These affiliates may act as principal or agent in those transactions. Secondary market sales will be made at prices related to market prices at the time of sale. S-9 EFTA01124137  RISK FACTORS Your investment in our depositary shares involves risks. This prospectus supplement does not describe all of those risks. Before purchasing any depositary shares, you should carefully consider the risk factors contained in the accompanying prospectus and the following risk factors, in addition to the other information contained or incorporated by reference in this prospectus supplement and the accompanying prospectus, including the discussion under "Item IA. Risk Factors" in ow Annual Report on Form 10-K for the year ended December 31, 2014, as such discussion may be amended or updated in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015 and in other reports filed by us with the SEC (other than the portions of those documents not deemed to be filed). You are making an investment decision about the depositary shares as well as our Series W Preferred Stock. As described in this prospectus supplement, we are issuing fractional interests in shares of our Series W Preferred Stock in the form of depositary shares. Accordingly, the depositary will rely solely on the dividend payments it receives on the Series W Preferred Stock from us to fund all dividend payments on the depositary shares. You should carefully review the information in this prospectus supplement and the accompanying prospectus regarding our depositary shares and Series W Preferred Stock. Our ability to pay dividends on the Series W Preferred Stock, and therefore your ability to receive dividend payments on the depositary• shares, may be limited by federal regulatory considerations and the results of operations of our subsidiaries. We are incorporated in Delaware and governed by the General Corporation Law of the State of Delaware and ow ability to make dividend payments is subject to the laws of Delaware. We are also a regulated bank holding company, and we conduct substantially all of our operations through ow banking and other subsidiaries. Our ability to make dividend payments on the Series W Preferred Stock is subject to various regulatory limitations, including limitations on ow ability to receive dividends and other distributions from our subsidiaries. Delaware law allows a corporation to pay dividends only out of surplus, as determined under Delaware law or, if there is no surplus, out of net profits for the fiscal year in which the dividend was declared and for the preceding fiscal year. Under Delaware law, however, we cannot pay dividends out of net profits if, after we pay the dividend, our capital would be less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. Our ability to make dividend payments may also be restricted by federal regulations applicable to us as a bank holding company and to ow banking subsidiaries. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") requires federal banking agencies to establish more stringent risk-based capital guidelines and leverage limits applicable to banks and bank holding companies, and especially those institutions with consolidated assets equal to or greater than $50 billion. The federal banking agencies have approved final rules implementing in the United States the Basel Committee on Banking Supervision's regulatory capital guidelines, including the reforms known as Basel III. The Federal Reserve Board's final rule sets forth the proposed criteria for qualifying additional Tier 1 capital instruments consistent with Basel III, including the requirement that any dividends on such instruments be paid out of the banking organization's net income, retained earnings and surplus, if any, related to additional Tier I capital instruments, and introduces a new capital conservation buffer requirement. Moreover, federal banking regulators have finalized a rule that enhances the supplementary leverage ratio requirements for large bank holding companies, like Wells Fargo, and their insured depository institutions. The rule, which becomes effective on January I, 2018, will require a covered bank holding company to maintain a supplementary leverage ratio of at least 5% to avoid restrictions on capital distributions and discretionary bonus payments. In 2015, the Federal Reserve also finalized a rule to implement an additional capital surcharge over and above the Basel III minimums on those U.S. banking organizations, such as Wells Fargo, that are designated as global systemically important banks ("G-SIBS"). The S-10 EFTA01124138 additional G-SIB capital surcharge will be phased in beginning January I, 2016 and become fully effective on January I, 2019. The failure to maintain any of these minimum capital ratios, capital surcharges, and capital buffers may result in limitations or restrictions on the ability of Wells Fargo and our banking subsidiaries to make capital distributions. In addition, under its Comprehensive Capital Analysis and Review ("CCAR"), the Federal Reserve Board requires large bank holding companies, including Wells Fargo, to submit annual capital plans and to obtain regulatory approval before making capital distributions, such as the payment of dividends. The Federal Reserve may object to a capital plan if the plan does not show that the covered bank holding company will maintain minimum capital ratios on a pro forma basis under expected and stressed conditions throughout the nine-quarter planning horizon covered by the capital plan. The CCAR rules, consistent with prior Federal Reserve Board guidance, also provide that capital plans contemplating dividend payout ratios exceeding 30% of after-tax net income will receive particularly close scrutiny. Federal banking laws also regulate the amount of dividends that may be paid by our banking subsidiaries without prior regulatory approval. In addition to the foregoing limitations, payments to us by our subsidiaries also will be contingent upon those subsidiaries' earnings and business considerations. Furthermore, our right to receive any assets of any of our subsidiaries upon their liquidation, reorganization or otherwise, and thus your ability as a holder of depositary shares to benefit indirectly from such distributions, will be subject to the prior claims of the subsidiaries' creditors. Even if we were a creditor of any of our subsidiaries, our rights as a creditor would be subordinate to any security interest in the assets of those subsidiaries and any indebtedness of those subsidiaries senior to that held by us. In addition, the Federal Reserve Board has proposed, but not finalized, rules that may further limit, restrict or prohibit our ability to pay dividends. These proposed rules, if finalized, would impose capital distribution restrictions, including on the payment of dividends, upon the occurrence of capital, stress test, risk management or liquidity risk management triggers. These or any future rules, regulations or capital distribution constraints could adversely affect our ability to pay dividends, the ability of our banking subsidiaries to pay dividends to us, our ability to pay dividends on the Series W Preferred Stock and your ability to receive dividends on the depositary shares. The Series W Preferred Stock is an equity security and is subordinate to our existing and future indebtedness. The shares of Series W Preferred Stock are our equity interests and do not constitute indebtedness. This means that the depositary shares, which represent proportional fractional interests in the shares of Series W Preferred Stock, will rank junior to all of our indebtedness and to other non-equity claims on us and our assets available to satisfy claims on us, including claims in our liquidation. Holders of the depositary shares may be fully subordinated to interests held by the U.S. government in the event of a receivership, insolvency, liquidation or similar proceeding. In addition, our existing and future indebtedness may restrict payment of dividends on the Series W Preferred Stock. Additionally, unlike indebtedness, where principal and interest customarily are payable on specified due dates, in the case of preferred stock like the Series W Preferred Stock, (I) dividends are payable only if declared by our board of directors or a duly authorized committee of the board and (2) as a corporation, we are subject to restrictions on dividend payments and redemption payments out of legally available assets. Further, the Series W Preferred Stock places no restrictions on our business or operations or on our ability to incur indebtedness or engage in any transactions, subject only to the limited voting rights referred to below under "—Holders of the Series W Preferred Stock, and therefore the holders of the depositary shares representing the Series W Preferred Stock, will have limited voting rights." Further, as a bank holding company, our ability to declare and pay dividends depends on a number of federal regulatory considerations as described above under "—Our ability to pay dividends on the Series W Preferred Stock, and therefore your ability to receive dividend payments on the depositary shares, may be limited by federal regulatory considerations and the results of operations of our subsidiaries." S-1I EFTA01124139 The Series W Preferred Stock may be junior in rights and preferences to our future preferred stock or preference stock. We may in the future create and issue additional shares of preferred stock and shares of preference stock ranking senior to the Series W Preferred Stock as to dividends and/or distribution of assets upon our liquidation, dissolution or winding up with the requisite consent of the holders of the Series W Preferred Stock and other parity stock entitled to vote thereon. The terms of any of our future preferred stock or preference stock which by its terms is expressly senior to the Series W Preferred Stock may restrict dividend payments on the Series W Preferred Stock. This could result in dividends on the Series W Preferred Stock not being paid. Dividends on the Series W Preferred Stock are discretionary and non-cumulative. If our board of directors does not declare dividends on the Series W Preferred Stock, holders of depositary shares will not be entitled to receive related dividends on their depositary shares. Dividends on the Series W Preferred Stock are discretionary and non-cumulative. Holders of the Series W Preferred Stock, including the depositary, will only be entitled to receive dividends for any given period if, when and as declared by our board of directors or a duly authorized committee of the board out of legally available assets. Consequently, if our board of directors or a duly authorized committee of the board does not authorize and declare a dividend for any dividend period prior to the related dividend payment date, the depositary would not receive any such dividend, no related dividend will be made on the depositary shares and such unpaid dividend will not accrue or be payable for such dividend period. We will have no obligation to pay dividends accrued for a dividend period after the dividend payment date for such period, and holders of depositary shares will not be entitled to receive any related dividend with respect to such dividends, if our board of directors or a duly authorized committee of the board has not declared such dividend before the related dividend payment date, whether or not dividends are declared for any subsequent dividend period with respect to the Series W Preferred Stock. If our board of directors or a duly authorized committee of the board does not declare and pay dividends on the Series W Preferred Stock, you will not receive related dividends on your depositary shares and the market price of your depositary shares may decline. Investors should not expect us to redeem the Series W Preferred Stock on the date it becomes redeemable or on any particular date after it becomes redeemable. The Series W Preferred Stock is a perpetual equity security. This means that it has no maturity or mandatory redemption date and is not redeemable at the option of the holders of the Series W Preferred Stock or the holders of the depositary shares offered by this prospectus supplement. The Series W Preferred Stock may be redeemed by us at our option, either in whole or in part, on any dividend payment date on or after March 15, 2021. The Series W Preferred Stock may also be redeemed by us at our option in whole, but not in part, prior to March 15, 2021, upon the occurrence of a "regulatory capital treatment event" as described herein. Any decision we may make at any time to propose a redemption of the Series W Preferred Stock will depend upon, among other things, our evaluation of our capital position, the composition of our stockholders' equity and general market conditions at that time. Our right to redeem the Series W Preferred Stock is subject to limitations. Under the Federal Reserve Board's risk-based capital guidelines applicable to bank holding companies, any redemption of the Series W Preferred Stock is subject to prior approval of the Federal Reserve Board. We cannot assure you that the Federal Reserve Board will approve any redemption of the Series W Preferred Stock that we may propose. The Series W Preferred Stock may be redeemed at our option, and you may not be able to reinvest the redemption price you receive in a similar security. Subject to the approval of the appropriate federal banking agency, at our option, we may redeem the Series W Preferred Stock in whole, but not in part, prior to March 15, 2021 upon the occurrence of a "regulatory capital treatment event," such as a change or proposed change in law or regulation on or after the date hereof S-I2 EFTA01124140 with respect to whether the Series W Preferred Stock qualifies as a Tier I capital instrument. We may also redeem the Series W Preferred Stock at our option, either in whole or in part, on any dividend paym