These days, the Wells Fargo stagecoach is pulling into town with slumping revenue but rising profits.

San Francisco-based Wells got a big boost from its $12.67 billion purchase of its struggling rival Wachovia Bank in January 2009. Still, the banking behemoth must scout for new customers or find ways to hawk additional products to them, even with $81.84 billion in revenue and $15.18 billion in profit for the 12 months that ended in September.

Much of the bank’s success in its efforts depends on the Bay Area economy, which has evolved into a tale of three metro areas. The South Bay is surging and is a California pacesetter for jobs. The East Bay has produced feeble employment gains. The San Francisco-San Mateo-Marin region is somewhere in between.

Wells Fargo’s top boss for the East Bay and South Bay region, Jim Foley, has to cope with the starkly different economic trends in the areas. We spoke with Foley about the bank’s regional operations and outlook. His comments have been edited for brevity and clarity.

Q What’s your assessment of the South Bay economy?

A The Santa Clara Valley is clearly one of the strongest markets in the state. The South Bay dropped the least during the downturn. And it has come back as the strongest region. Job growth is more than 3 percent, and it is double the statewide pace of hiring.

Q What is your assessment of the East Bay economy?

A The East Bay is not quite

as strong as the Santa Clara Valley. But people are underestimating the strength of the East Bay. Alameda County ranks in the top 10 of all U.S. counties in quite a few segments. Alameda County ranked second just behind Santa Clara County in clean energy, semiconductors and electronic instrumentation. Part of that ties into the national labs in the East Bay. And there is quite a bit of business going back and forth between Santa Clara Valley and the East Bay.

Q What’s your economic outlook for the Bay Area?

A We are cautiously optimistic about the economy. There are still quite a few local business owners who are on the sidelines. There is a lot of talk about Europe. But our small-business customers are more concerned about overall consumer demand. Businesses are taking a slow and steady approach to expansion.

Q What is the bank doing in terms of helping homeowners struggling with mortgages?

A We’re committed to helping all of our customers stay in their homes. We’ll soon announce our schedule of Home Preservation Workshops for 2012. These are events where customers can meet with a specialist in person to discuss mortgage payment challenges and review options. For most customers, we can provide on-the-spot information that will help customers make informed decisions about their choices. While I can’t announce the schedule, we’ll definitely host a couple of events in the Bay Area and surrounding markets early next year.

Q Are companies still reluctant to hire?

A In some segments of the market, where there is stronger growth, they are going out and hiring. But many customers who have gone through the toughest phase of the economy are hesitant to expand. They don’t want to buy too much property or get in over their head. Some customers are buying commercial real estate. We are excited about some of our small-business lending, which is helping companies expand slowly and steadily.

Q Do you get a sense that this is a downturn that’s deeper than usual?

A This is a once-in-a-lifetime economic downturn. We have quite a few customers who have been through a lot of business cycles. This is deeper than what even experienced customers have gone through. That makes them cautious.

Q Banks are being criticized for tough underwriting that makes it difficult for people and small businesses to get mortgages or other loans. What’s your response?

A I’m proud to work for a company that is the first bank in America to exceed $1 billion in SBA (Small Business Administration) lending. In our market, we are seeing substantial growth, on a year-over-year basis, in lending. We’re talking about 20, 25, 30 percent increases in lending, depending on the product. Eventually this activity will lead to more hiring. We know as a bank we can’t be successful unless our communities are successful.

Q What are Wells Fargo’s expansion plans in the Bay Area?

A We have a best-in-class distribution system in both the South Bay and the East Bay. The main opportunities are for infill sites for both stores and ATMs. We got some fill-in sites from the Wachovia merger. So we don’t have a strong urgency to expand.

Q How is the bank’s market share doing?

A We saw market share growth in both the East Bay and South Bay.

Contact George Avalos at 925-977-8477. Follow him at twitter.com/george_avalos.

Jim foley

Age: 45
Birthplace: Lansing, Mich.
Position: President, Wells Fargo Greater Bay Region
Education: Bachelor’s degree, Furman University; MBA, University of Miami
Residence: Moraga

5 facts
about Jim foley

1. Leadership motto: “We’re not paid to identify obstacles, we’re paid to overcome them.” (borrowed from Bob Helms, CEO of Wachovia Bank’s Florida operations).

2. Volunteers on the boards of the East Bay Economic Development Association, the Contra Costa Council and the East Oakland Youth Development Center.

3. Bucket list part 1: Visit all 50 states. He’s now at 27.

4. Bucket list part 2: Wants to recreate his original vinyl record collection, including Marvin Gaye’s “What’s Going On” album.

5. Loves to watch his two children play sports.

Article source: http://www.mercurynews.com/top-stories/ci_19459155