NEW YORK (TheStreet) -- Wells Fargo (WFC) - Get Report stock is declining by 2.52% to $46.89 in afternoon trading on Wednesday, after the bank's soured energy loans spiked by 49% during the final three months of 2015 as oil prices plunged.

Oil-and-gas nonaccrual loans were $844 million as of the end of last year, up from $566 million at the end of the third quarter, Bloomberg reports. 

As of the end of 2014, Wells Fargo had nonaccrual energy loans totaling $76 million. 

Nonaccrual loans do not generate the stated interest rate because of nonpayment from the borrower. 

Shares of banks were down yesterday as well after rival financial company JPMorgan (JPM) announced that it is setting aside an additional $500 million to cushion against loans in the energy sector.

(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Wells Fargo's strengths such as its revenue growth, growth in earnings per share, expanding profit margins and attractive valuation levels outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: WFC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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