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Wells Fargo & Co.$52.56$1.021.98%

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 Wells Fargo Reports Fourth Quarter 2017 Net Income of $6.2 Billion; Diluted EPS of $1.16
   Friday, January 12, 2018 8:00:06 AM ET

Wells Fargo & Company (WFC ):

-- Full year 2017 financial results(1): -- Net income of $22.2 billion, compared with $21.9 billion in 2016

-- Diluted earnings per share (EPS) of $4.10, compared with $3.99

-- Revenue of $88.4 billion, up from $88.3 billion -- Net interest income of $49.6 billion, up $1.8 billion, or 4 percent

-- Noninterest income of $38.8 billion, down $1.7 billion, or 4 percent

-- Average deposits of $1.3 trillion, up $54.1 billion, or 4 percent

-- Average loans of $956.1 billion, up $6.2 billion, or 1 percent



-- Return on assets (ROA) of 1.15 percent and return on equity (ROE) of 11.35 percent

-- Net charge-offs of 0.31 percent of average loans, down from 0.37 percent

-- Nonaccrual loans of $8.0 billion, down $2.3 billion, or 23 percent

-- Returned $14.5 billion to shareholders through common stock dividends and net share repurchases, up 16 percent from $12.5 billion -- Net share repurchases of $6.8 billion, up 42 percent

-- Period-end common shares outstanding of 4.9 billion, down 124.5 million shares, or 2 percent

-- Fourth quarter 2017 financial results included: -- $3.35 billion after-tax benefit, or $0.67 per share, from the Tax Cuts & Jobs Act (Tax Act) -- $3.89 billion estimated tax benefit from the reduction to net deferred income taxes

-- $370 million after-tax loss from adjustments related to leveraged leases, low income housing and tax-advantaged renewable energy investments

-- $173 million tax expense from estimated deemed repatriation

-- $848 million pre-tax gain, or $0.11 per share, on sale of Wells Fargo Insurance Services USA

-- $3.25 billion pre-tax expense, or $(0.59) per share, from litigation accruals for a variety of matters, including mortgage-related regulatory investigations, sales practices, and other consumer-related matters; a majority of this expense was not tax deductible

Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2017, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

 
Selected Financial Information
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        Quarter ended                                         Year ended Dec. 31,
                                                                                      ----------------------------------------- -------------------------------------------------------------------------------                     ----------------------------------------------------------
                                                             Dec 31,                        Sep 30,                        Dec 31,                           2017      2016
                                                                                                      2017                                              2017                                              2016
---------------------------------------------------------------- -------------------- ------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- -------
Earnings (a)                                                                                                                                                                                                                
Diluted earnings per common share                                                          $   1.16                                0.83                                              0.96                                              4.10                                              3.99
Wells Fargo net income (in billions)                                                           6.15                                4.54                                              5.27                                             22.18                                             21.94
Return on assets (ROA)                                                                         1.26      %                         0.93                                              1.08                                              1.15                                              1.16
Return on equity (ROE)                                                                        12.47                                8.96                                             10.94                                             11.35                                             11.49
Return on average tangible common equity (ROTCE) (b)                                          14.85                               10.66                                             13.16                                             13.55                                             13.85
Asset Quality
Net charge-offs (annualized) as a % of average total loans                                     0.31      %                         0.30                                              0.37                                              0.31                                              0.37
Allowance for credit losses as a % of total loans                                              1.25                                1.27                                              1.30                                              1.25                                              1.30
Allowance for credit losses as a % of annualized net charge-offs                                401                                 426                                               348                                               408                                               356
Other
Revenue (in billions) (a)                                                                  $   22.1                                21.8                                              21.6                                              88.4                                              88.3
Efficiency ratio (a)(c)                                                                        76.2      %                         65.7                                              61.2                                              66.2                                              59.3
Average loans (in billions)                                                                $  951.8                               952.3                                             964.1                                             956.1                                             950.0
Average deposits (in billions)                                                              1,311.6                             1,306.4                                           1,284.2                                           1,304.6                                           1,250.6
Net interest margin (a)                                                     2.84      %      2.86        2.87        2.87        2.86
---------------------------------------------------------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
(a) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting for
Hedging Activities. See footnote (1) to the Summary Financial Data
table on page 16 for more information.
(b) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity, which utilizes tangible common equity, is a useful
financial measure because it enables investors and others to
assess the Company’s use of equity. For additional information,
including a corresponding reconciliation to GAAP financial
measures, see the "Tangible Common Equity" tables on page 35.
(c) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).(1) Financial
information for prior quarters in 2017 has been revised to reflect
the impact of the adoption in fourth quarter 2017 of Accounting
Standards Update (ASU) 2017-12 - Derivatives and Hedging (Topic
815): Targeted Improvements to Accounting for Hedging Activities.
See footnote (1) to the Summary Financial Data table on page 16
for more information.
 

Wells Fargo & Company (WFC ) reported net income of $6.2 billion, or $1.16 per diluted common share, for fourth quarter 2017, compared with $5.3 billion, or $0.96 per share, for fourth quarter 2016, and $4.5 billion, or $0.83 per share, for third quarter 2017.

Chief Executive Officer Tim Sloan said, "In 2017 we continued executing on our plan to build a better bank for the future, and I’m proud of the hard work and dedication of our team members to put our customers first as we transform Wells Fargo. Over the past year we have invested billions of dollars into our business and capabilities including risk management, accelerated the pace of innovation, increased our commitment to communities, enhanced team member benefits, and continued to execute on our business strategies to provide long-term value to our shareholders. The progress we made over the past year was evident in the fourth quarter in higher deposits, loan growth particularly in commercial loans, increased debit and credit card transactions, and record client assets under management in Wealth and Investment Management. While we faced challenges in 2017, we are a much better company today than we were a year ago, and I am confident that this year Wells Fargo will be even better."

Chief Financial Officer John Shrewsberry said, "Wells Fargo reported $6.2 billion of net income in the fourth quarter, which included a net benefit from the Tax Cuts & Jobs Act and a gain on the sale of Wells Fargo Insurance Services, partially offset by litigation accruals. Compared with the third quarter we grew both loans and deposits, and our credit performance, liquidity and capital remained exceptionally strong. We returned a record $14.5 billion to shareholders through common stock dividends and net share repurchases in 2017, up 16 percent, and returning more capital to shareholders remains a priority. We’ve made progress on our efficiency initiatives and remain committed to our target of $2 billion of expense reductions by the end of 2018, which are being used to support our investments in the business, and an additional $2 billion by the end of 2019. In addition, by the beginning of 2019 we expect the amortization of core deposit intangible expense ($769 million in 2018) and the FDIC special assessment to be complete."

Net Interest Income

Net interest income in fourth quarter 2017 was $12.3 billion, down $136 million, compared with third quarter 2017, driven primarily by a negative $183 million one-time adjustment related to leveraged leases due to the Tax Act, which reduced loan yields in the fourth quarter, partially offset by a modest net benefit from all other growth, repricing and variable items.

Net interest margin was 2.84 percent, down 2 basis points from third quarter 2017. The negative impacts from the one-time adjustment to leveraged leases and growth in average deposits were partially offset by lower average long-term debt and a modest net benefit from all other growth, repricing and variable items.

Noninterest Income

Noninterest income in the fourth quarter was $9.7 billion, compared with $9.4 billion in third quarter 2017. Fourth quarter noninterest income reflected higher other income, trust and investment fees, and market sensitive revenue(2), partially offset by lower mortgage banking and deposit service charges.

-- Deposit service charges of $1.2 billion were down $30 million in the fourth quarter driven by the impact of customer-friendly changes including the launch of Overdraft Rewind(SM) in November.

-- Trust and investment fees were $3.7 billion, compared with $3.6 billion in third quarter 2017, as higher asset-based fees and retail brokerage transaction activity were partially offset by lower investment banking fees.

-- Mortgage banking noninterest income was $928 million, compared with $1.0 billion in third quarter 2017. Residential mortgage loan originations were $53 billion in the fourth quarter, down from $59 billion in the third quarter. The production margin on residential held-for-sale mortgage loan originations(3) was 1.25 percent, compared with 1.24 percent in the third quarter. Mortgage servicing income was $262 million in the fourth quarter, down from $309 million in the third quarter.

-- Market sensitive revenue was $728 million, compared with $649 million in third quarter 2017, driven by higher net gains from equity investments.

-- Other income was $405 million, compared with $47 million in the third quarter. Fourth quarter 2017 included an $848 million gain on the previously announced sale of Wells Fargo Insurance Services USA, which was partially offset by $414 million of impairments on low income housing and renewable energy investments due to the Tax Act.

Noninterest Expense

Noninterest expense in the fourth quarter was $16.8 billion, compared with $14.4 billion in the prior quarter. Fourth quarter expenses included operating losses of $3.5 billion, up from $1.3 billion in the third quarter, primarily reflecting litigation accruals for a variety of matters, including mortgage-related regulatory investigations, sales practices, and other consumer-related matters. Fourth quarter expenses also included higher charitable donations (up $103 million from the third quarter), commission and incentive compensation expense, outside professional services, and typically higher equipment and advertising expense, which were partially offset by a $117 million gain on the sale of a corporate property. The efficiency ratio was 76.2 percent in fourth quarter 2017, up from 65.7 percent in the third quarter, driven primarily by higher operating losses.

Income Taxes

The Company’s fourth quarter income tax expense was a $1.6 billion benefit and reflected the estimated impact of the Tax Act, including a benefit of $3.89 billion resulting from the re-measurement of the Company’s estimated net deferred tax liability as of December 31, 2017, partially offset by $173 million of tax expense relating to the estimated tax impact of the deemed repatriation of the Company’s previously undistributed foreign earnings. The fourth quarter income tax benefit was also adversely impacted by a $1.0 billion tax effect relating to the impact of discrete non-deductible items (primarily litigation accruals). The full year 2017 effective income tax rate was 18.1 percent. The Company currently expects its full year 2018 effective income tax rate to be approximately 19 percent.

Loans

Total average loans were $951.8 billion in the fourth quarter, down $521 million from the third quarter. Period-end loan balances were $956.8 billion at December 31, 2017, up $4.9 billion from September 30, 2017. Commercial loans were up $3.2 billion from September 30, 2017 with growth in commercial and industrial loans, partially offset by declines in commercial real estate loans. Consumer loans increased $1.7 billion from the prior quarter, as growth in real estate 1-4 family first mortgage loans and consumer credit card loans was partially offset by expected declines in automobile loans and the junior lien mortgage portfolio.

 
Period-End Loan Balances
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                        Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,                Dec 31,
                                                                           2017                                              2017                                              2017                                              2017                                      2016
------------------------- -------------------- ------------------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- --------------------
Commercial                    $ 503,388                        500,150                        505,901                        505,004                                     506,536
Consumer                        453,382     451,723     451,522     453,401                  461,068
------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
      Total loans             $ 956,770     951,873     957,423     958,405                  967,604
------------------------- -------------------- --- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Change from prior quarter     $   4,897      (5,550 )                         (982 )                       (9,199 )                                     6,278
------------------------- -------------------- --- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                            

Investment Securities

Investment securities were $416.4 billion at December 31, 2017, up $1.8 billion from the third quarter, as approximately $20.9 billion of purchases, mostly federal agency mortgage-backed securities (MBS) in the available-for-sale portfolio, were partially offset by run-off and sales.

Net unrealized gains on available-for-sale securities declined to $1.5 billion at December 31, 2017, compared with $1.8 billion at September 30, 2017, primarily due to gains realized in the fourth quarter. Modestly higher Treasury yields were largely offset by tighter credit and agency MBS spreads during the quarter.

Deposits

Total average deposits for fourth quarter 2017 were $1.3 trillion, up $5.2 billion from the prior quarter. The average deposit cost for fourth quarter 2017 was 28 basis points, up 2 basis points from the prior quarter and 16 basis points from a year ago, primarily driven by an increase in commercial and Wealth and Investment Management deposit rates.

Capital

Capital levels remained strong in the fourth quarter, with a Common Equity Tier 1 ratio (fully phased-in) of 11.9 percent(4), compared with 11.8 percent in the prior quarter. In fourth quarter 2017, the Company repurchased 51.4 million shares of its common stock, which reduced period-end common shares outstanding by 36.3 million.

Credit Quality

Net Loan Charge-offs

The quarterly loss rate was 0.31 percent (annualized), compared with 0.30 percent in the prior quarter. Commercial and consumer losses were 0.09 percent and 0.56 percent, respectively. Total credit losses were $751 million in fourth quarter 2017, up $34 million from third quarter 2017. Commercial losses were up $2 million on lower recoveries in commercial real estate loans. Consumer losses increased $32 million, as higher recoveries on consumer real estate loans and lower losses on automobile loans were offset by higher credit card losses driven by seasonality and portfolio seasoning.

Net Loan Charge-Offs
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                            Quarter ended
                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                         December 31, 2017                                                      September 30, 2017                                                 June 30, 2017
----------------------------------------------- -------------------- -------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------ ------------------------------------------------------------
($ in millions)                                                      Net loan    As a % of                       Net loan             As a % of                      Net loan    As a % of
                                                                                         charge-                         average                                           charge-                                  average                                          charge-                         average
                                                                                            offs                       loans (a)                                              offs                                loans (a)                                             offs                       loans (a)
----------------------------------------------- -------------------- -------------------------   -------------------- ---------  -------------------- --------------------------   -------------------- ------------------  -------------------- -------------------------   -------------------- ---------
Commercial:                                                                                                                                                                                       
    Commercial and industrial                                         $ 118                                            0.14    %                        $ 125                                                     0.15    %                       $  78                                            0.10    %
    Real estate mortgage                                                (10 )                                         (0.03 )                              (3 )                                                  (0.01 )                             (6 )                                         (0.02 )
    Real estate construction                                             (3 )                                         (0.05 )                             (15 )                                                  (0.24 )                             (4 )                                         (0.05 )
    Lease financing                                   10                         0.20                                 6                                  0.12                                7                         0.15
----------------------------------------------- -------------------- ---------------------------                                                      ----------------------------                                                               ---------------------------
Total commercial                                     115                         0.09                               113                                  0.09                               75                         0.06
----------------------------------------------- -------------------- ---------------------------                                                      ----------------------------                                                               ---------------------------
Consumer:
    Real estate 1-4 family first mortgage                               (23 )                                         (0.03 )                             (16 )                                                  (0.02 )                            (16 )                                         (0.02 )
    Real estate 1-4 family junior lien mortgage                          (7 )                                         (0.06 )                               1                                           --                               (4 )                                         (0.03 )
    Credit card                                                         336                                            3.66                               277                                                     3.08                              320                                            3.67
    Automobile                                                          188                                            1.38                               202                                                     1.41                              126                                            0.86
    Other revolving credit and installment           142                         1.46                               140                                  1.44                              154                         1.58
----------------------------------------------- -------------------- ---------------------------                                                      ----------------------------                                                               ---------------------------
Total consumer                                       636                         0.56                               604                                  0.53                              580                         0.51
----------------------------------------------- -------------------- ---------------------------                                                      ----------------------------                                                               ---------------------------
    Total                                          $ 751                         0.31    %                        $ 717                                  0.30    %                       $ 655                         0.27    %
----------------------------------------------- -------------------- -- --- --------------------                                                      --- --- --------------------                                                               -- --- --------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(a) Quarterly net charge-offs (recoveries) as a percentage of
average loans are annualized. See explanation on page 31 of the
accounting for purchased credit-impaired (PCI) loans and the
impact on selected financial ratios.
 

Nonperforming Assets

Nonperforming assets decreased $647 million, or 7 percent, from third quarter 2017 to $8.7 billion. Nonaccrual loans decreased $583 million from third quarter 2017 to $8.0 billion primarily driven by lower commercial and industrial nonaccruals reflecting continued improvement in the oil and gas portfolio, as well as continued declines in consumer real estate nonaccruals.

 
Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     December 31, 2017                                                         September 30, 2017                                                             June 30, 2017
----------------------------------------------- -------------------- -------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- ------------------------------------------------------------------------
($ in millions)                                                           Total                   As a                            Total                   As a                           Total                   As a
                                                                                          balances                                      % of                                            balances                                      % of                                           balances                                      % of
                                                                                                                                       total                                                                                         total                                                                                        total
                                                                                                                                       loans                                                                                         loans                                                                                        loans
----------------------------------------------- -------------------- ---------------------------   -------------------- -------------------  -------------------- ----------------------------   -------------------- -------------------  -------------------- ---------------------------   -------------------- -------------------
Commercial:                                                                                                                                                                                     
    Commercial and industrial                                         $ 1,899                                                 0.57         %                        $ 2,397                                                 0.73         %                       $ 2,632                                                 0.79         %
    Real estate mortgage                                                  628                                                 0.50                                      593                                                 0.46                                     630                                                 0.48
    Real estate construction                                               37                                                 0.15                                       38                                                 0.15                                      34                                                 0.13
    Lease financing                                     76                              0.39                                       81                              0.42                                      89                              0.46
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
Total commercial                                     2,640                              0.52                                    3,109                              0.62                                   3,385                              0.67
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
Consumer:
    Real estate 1-4 family first mortgage                               4,122                                                 1.45                                    4,213                                                 1.50                                   4,413                                                 1.60
    Real estate 1-4 family junior lien mortgage                         1,086                                                 2.73                                    1,101                                                 2.68                                   1,095                                                 2.56
    Automobile                                                            130                                                 0.24                                      137                                                 0.25                                     104                                                 0.18
    Other revolving credit and installment              58                              0.15                                       59                              0.15                                      59                              0.15
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
Total consumer                                       5,396                              1.19                                    5,510                              1.22                                   5,671                              1.26
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
Total nonaccrual loans                               8,036                              0.84                                    8,619                              0.91                                   9,056                              0.95
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
Foreclosed assets:
    Government insured/guaranteed                                         120                                                                                           137                                                                                          149
    Non-government insured/guaranteed                  522                                                                        569                                                                       632  
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
        Total foreclosed assets                        642                                                                        706                                                                       781  
----------------------------------------------- -------------------- -----------------------------                                                                ------------------------------                                                                -----------------------------
            Total nonperforming assets             $ 8,678                              0.91         %                        $ 9,325                              0.98         %                       $ 9,837                              1.03         %
----------------------------------------------- -------------------- -- ----- --------------------                                                                --- ----- --------------------                                                                -- ----- --------------------
Change from prior quarter:
    Total nonaccrual loans                                            $  (583 )                                                                                     $  (437 )                                                                                    $  (703 )
    Total nonperforming assets                        (647 )                               (512 )                              (827 )                       
----------------------------------------------- -------------------- ----------------------------- -------------------- ----------------------------------------- ------------------------------ -------------------- ----------------------------------------- ----------------------------- -------------------- ---------------------
                                                                                                                                                                                                                                                                                                                    

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.0 billion at December 31, 2017, down $149 million from September 30, 2017. Fourth quarter 2017 included a $100 million reserve release(5), reflecting continued strong credit performance. The allowance coverage for total loans was 1.25 percent compared with 1.27 percent in third quarter 2017. The allowance covered 4.0 times annualized fourth quarter net charge-offs, compared with 4.3 times in the prior quarter. The allowance coverage for nonaccrual loans was 149 percent at December 31, 2017, compared with 141 percent at September 30, 2017. The Company believes the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2017.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three business segments was:

                                                                                                                                           Quarter ended
                                 ------------------------------------------------------------------------------------------------------------------------
(in millions)                                                   Dec 31,                         Sep 30,    Dec 31,
                                                                   2017                                               2017                          2016
-------------------------------- ------------------------------------   -------------------- ----------------------------  -------------------- --------
Community Banking (a)                   $    3,673                           2,176                           2,733
Wholesale Banking (a)                        2,148                                              2,045                                              2,194
Wealth and Investment Management               659          710          653
-------------------------------- -------------------------------------- -------------------- -------- -------------------- -------------------- --------
(a) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
 

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards, and automobile, student, mortgage, home equity and small business lending, as well as referrals to Wholesale Banking and Wealth and Investment Management business partners. The Community Banking segment also includes the results of our Corporate Treasury activities net of allocations in support of the other operating segments and results of investments in our affiliated venture capital partnerships.

Selected Financial Information                                              
-----------------------------------------------------------------    -------------------- -------------------- -------------------- --------------------
                                                                                                                        Quarter ended
                                                 --------------------------------------------------------------------------------------------------------
(in millions)                             Dec 31,                Sep 30,                Dec 31,
                                                                2017                                      2017                                      2016
--------------------------- -------------------- ------------------  -------------------- -------------------- -------------------- --------------------
Total revenue (a)                                        $    12,028                 11,984                 11,661
Provision for credit losses                                      636                                       650                                       631
Noninterest expense                                           10,200                                     7,834                                     6,985
Segment net income (a)                                         3,673                                     2,176                                     2,733
(in billions)
Average loans                                                  473.5                                     473.5                                     488.1
Average assets                                                 974.0                                     988.9                                   1,000.7
Average deposits                            738.1                  734.5                  709.8
--------------------------- -------------------- ---------------------------------------- -------------------- -------------------- --------------------
(a) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
                                                                                                                                     

Community Banking reported net income of $3.7 billion, up $1.5 billion, or 69 percent, from third quarter 2017. Fourth quarter income tax expense reflected the estimated impact of the Tax Act to the Company and the impact of discrete non-deductible items, primarily litigation accruals. Revenue in the fourth quarter was $12.0 billion, flat compared with third quarter 2017, and included lower net interest income, mortgage banking revenue, and service charges on deposit accounts, offset by higher market sensitive revenue and trust and investment fees. Noninterest expense increased $2.4 billion, or 30 percent, compared with third quarter 2017, driven primarily by litigation accruals. The provision for credit losses decreased $14 million from the prior quarter.

Net income was up $940 million, or 34 percent, from fourth quarter 2016, and included the income tax benefit from the Tax Act. Revenue increased $367 million, or 3 percent, compared with a year ago due to higher market sensitive revenue and other income, partially offset by lower mortgage banking revenue, service charges on deposit accounts, and net interest income. Noninterest expense increased $3.2 billion, or 46 percent, from a year ago primarily driven by litigation accruals. The provision for credit losses increased $5 million from a year ago.

Retail Banking and Consumer Payments, Virtual Solutions and Innovation

-- 1.6 million branch customer experience surveys completed during 2017, both ’Loyalty’ and ’Overall Satisfaction with Most Recent Visit’ scores improved in fourth quarter from third quarter

-- 5,861 retail bank branches as of the end of fourth quarter 2017, reflecting 214 branch consolidations for full year 2017

-- For the 15th consecutive year, America’s #1 small business lender and #1 lender to small businesses in low-and moderate-income areas (loans under $1 million; 2016 Community Reinvestment Act data, released November 2017)

-- Primary consumer checking customers(6,7)up 0.2 percent year-over-year

-- Debit card point-of-sale purchase volume(8) of $83.1 billion in fourth quarter, up 6 percent year-over-year

-- Credit card point-of-sale purchase volume of $19.1 billion in fourth quarter, up 6 percent year-over-year

-- Credit card penetration in retail banking households of 45.3 percent(9)

-- 28.1 million digital (online and mobile) active customers, including 21.2 million mobile active users(7,10)

-- Bank Monitor Awards provided Wells Fargo a Gold Medal, the highest level, in Website Design and Usability (December 2017)

-- Dynatrace (formerly Keynote) ranked Wells Fargo #1 in Functionality, Open Accounts, and Transact in its fourth quarter Online Banking Scorecard (November 2017)

Consumer Lending

-- Home Lending -- Originations of $53 billion, down from $59 billion in prior quarter

-- Applications of $63 billion, down from $73 billion in prior quarter

-- Application pipeline of $23 billion at quarter end, down from $29 billion at September 30, 2017

-- Automobile originations of $4.3 billion in fourth quarter, flat compared with prior quarter and down 33 percent from prior year, as proactive steps to tighten underwriting standards resulted in lower origination volume

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $5 million. Products and businesses include Business Banking, Commercial Real Estate, Corporate Banking, Financial Institutions Group, Government and Institutional Banking, Middle Market Banking, Principal Investments, Treasury Management, Wells Fargo Commercial Capital, and Wells Fargo Securities.

Selected Financial Information                                                     
-----------------------------------------------------------------    ------------------------------  ------------------------------
                                                                                                    Quarter ended
                                                 ------------------------------------------------------------------------------------
(in millions)                             Dec 31,      Sep 30,      Dec 31,
                                                                2017                            2017                            2016
--------------------------- -------------------- ------------------  -------------------- ---------- -------------------- ----------
Total revenue (a)                                        $     7,094        7,084        7,153
Provision for credit losses                                       20                              69                             168
Noninterest expense                                            4,204                           4,248                           4,002
Segment net income (a)                                         2,148                           2,045                           2,194
(in billions)
Average loans                                                  463.5                           463.8                           461.5
Average assets                                                 837.3                           824.3                           811.9
Average deposits                            465.7        463.4        459.2
--------------------------- -------------------- ---------------------------------------- ---------- -------------------- ----------
(a) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
 

Wholesale Banking reported net income of $2.1 billion, up $103 million, or 5 percent, from third quarter 2017. Fourth quarter results included the loss from adjustments related to leveraged leases and other tax advantaged businesses due to the Tax Act, as well as a gain related to the completion of the previously announced sale of Wells Fargo Insurance Services USA (WFIS). Revenue of $7.1 billion was flat compared with the prior quarter, as the gain related to the sale of WFIS was offset by the impact of the Tax Act and lower market sensitive revenue. Net interest income decreased $134 million, or 3 percent, as the impact to leveraged leases due to the Tax Act was partially offset by higher trading related income and a modest benefit from higher interest rates. Noninterest income increased $144 million, or 5 percent, as the gain related to the sale of WFIS and higher commercial real estate brokerage fees were partially offset by impairments on low income housing and tax-advantaged renewable energy investments due to the Tax Act, lower market sensitive revenue and one less month of WFIS operating income. Noninterest expense decreased $44 million, or 1 percent, from the prior quarter reflecting one less month of WFIS operating expenses and lower operating lease expense. The provision for credit losses decreased $49 million from the prior quarter, primarily due to a reserve release in the fourth quarter.

Net income of $2.1 billion decreased $46 million, or 2 percent, from fourth quarter 2016. Revenue decreased $59 million, or 1 percent, from fourth quarter 2016, as lower net interest income was partially offset by higher noninterest income. Net interest income decreased $112 million, or 3 percent, from fourth quarter 2016, as the impact to leveraged leases due to the Tax Act was partially offset by the impact of rising interest rates. Noninterest income increased $53 million, or 2 percent, from a year ago as the gain related to the sale of WFIS and higher market sensitive revenue were partially offset by impairments on low income housing and tax-advantaged renewable energy investments due to the Tax Act, lower investment banking results, and one less month of WFIS operating income. Noninterest expense increased $202 million, or 5 percent, from a year ago reflecting increased personnel expense and higher regulatory, risk, cyber and technology expenses. The provision for credit losses decreased $148 million from a year ago primarily due to improvements in the oil and gas portfolio.

Wealth and Investment Management (WIM) provides a full range of personalized wealth management, investment and retirement products and services to clients across U.S. based businesses including Wells Fargo Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management. We deliver financial planning, private banking, credit, investment management and fiduciary services to high-net worth and ultra-high-net worth individuals and families. We also serve customers’ brokerage needs, supply retirement and trust services to institutional clients and provide investment management capabilities delivered to global institutional clients through separate accounts and the Wells Fargo Funds.

 
Selected Financial Information
                                                                                                                                                                 Quarter ended
                                                                         -------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                Dec 31,                      Sep 30,                Dec 31,
                                                                                                   2017                                            2017                                      2016
--------------------------------------------------- -------------------- ----------------------------   -------------------- -------------------------  -------------------- --------------------
Total revenue                                                              $ 4,305                        4,246                                       4,074
Provision (reversal of provision) for credit losses                             (7 )                                            (1 )                                                            3
Noninterest expense                                                          3,244                                           3,106                                                          3,042
Segment net income                                                             659                                             710                                                            653
(in billions)
Average loans                                                                 72.8                                            72.4                                                           70.0
Average assets                                                               209.3                                           213.4                                                          220.4
Average deposits                                          184.2     188.1                    194.9
--------------------------------------------------- -------------------- ------------------------------ -------------------- ----- -------------------- -------------------- --------------------
                                                                                                                                                                              

Wealth and Investment Management reported net income of $659 million, down $51 million, or 7 percent, from third quarter 2017. Revenue of $4.3 billion increased $59 million from the prior quarter, primarily due to higher asset-based fees and transaction revenue, partially offset by lower net interest income. Noninterest expense increased $138 million, or 4 percent, from the prior quarter, primarily due to higher non-personnel expense and broker commissions.

Net income was up $6 million, or 1 percent, from fourth quarter 2016. Revenue increased $231 million, or 6 percent, from a year ago primarily driven by higher asset-based fees, higher net interest income, and higher gains on deferred compensation plan investments (offset in employee benefits expense), partially offset by lower transaction revenue. Noninterest expense increased $202 million, or 7 percent, from a year ago, primarily due to higher regulatory, risk, cyber and technology expenses, as well as higher broker commissions and deferred compensation plan expense (offset in trading revenue), partially offset by lower other non-personnel expense.

-- WIM total client assets reached a record-high of $1.9 trillion, up 11 percent from a year ago, driven by higher market valuations

-- Fourth quarter 2017 average closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) were flat compared with the prior quarter and up 12 percent from prior year

Retail Brokerage

-- Client assets of $1.7 trillion, up 11 percent from prior year

-- Advisory assets of $543 billion, up 17 percent from prior year, primarily driven by higher market valuations and positive net flows

-- Continued loan growth, with average balances up 7 percent from prior year largely due to growth in non-conforming mortgage loans

Wealth Management

-- Client assets of $248 billion, up 7 percent from prior year

-- Average loan balances up 3 percent from prior year primarily driven by continued growth in non-conforming mortgage loans

Asset Management

-- Total assets under management of $504 billion, up 5 percent from prior year as higher market valuations, positive fixed income and money market net flows were partially offset by equity net outflows

Retirement

-- IRA assets of $410 billion, up 8 percent from prior year

-- Institutional Retirement plan assets of $393 billion, up 12 percent from prior year

Conference Call

The Company will host a live conference call on Friday, January 12, at 7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~6099528.

A replay of the conference call will be available beginning at 10:00 a.m. PT (1:00 p.m. ET) on Friday, January 12 through Friday, January 26. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #6099528. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~6099528.

Endnotes

(1) Financial information for prior quarters in 2017 has been revised to reflect the impact of the adoption in fourth quarter 2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. See footnote (1) to the Summary Financial Data table on page 16 for more information.

(2) Market sensitive revenue represents net gains from trading activities, debt securities and equity investments.

(3) Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the Selected Five Quarter Residential Mortgage Production Data table on page 41 for more information.

(4) See table on page 36 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.

(5) Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

(6) Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.

(7) Data as of November 2017, comparisons with November 2016.

(8) Combined consumer and business debit card purchase volume dollars.

(9) Penetration defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Credit card household penetration rates have not been adjusted to reflect the impact of the potentially unauthorized accounts (determined principally based on whether the account was activated by the customer) identified by a third party consulting firm in August 2017 because the maximum impact in any one quarter was not greater than 127 bps.

(10) Primarily includes retail banking, consumer lending, small business and business banking customers.

Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our other documents filed or furnished with the SEC, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our noninterest expense and efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses and allowance levels; (iv) the appropriateness of the allowance for credit losses; (v) our expectations regarding net interest income and net interest margin; (vi) loan growth or the reduction or mitigation of risk in our loan portfolios; (vii) future capital or liquidity levels or targets and our estimated Common Equity Tier 1 ratio under Basel III capital standards; (viii) the performance of our mortgage business and any related exposures; (ix) the expected outcome and impact of legal, regulatory and legislative developments, as well as our expectations regarding compliance therewith; (x) future common stock dividends, common share repurchases and other uses of capital; (xi) our targeted range for return on assets and return on equity; (xii) the outcome of contingencies, such as legal proceedings; and (xiii) the Company’s plans, objectives and strategies.

Forward-looking statements are not based on historical facts but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

-- current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters (including the impact of the Tax Cuts & Jobs Act), geopolitical matters, and the overall slowdown in global economic growth;

-- our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;

-- financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;

-- the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;

-- the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;

-- negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;

-- our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;

-- losses related to recent hurricanes, which primarily affected Texas, Florida and Puerto Rico, and related to recent California wildfires, in each case including from damage or loss to our collateral for loans in our consumer and commercial loan portfolios and from the impact on the ability of our borrowers to repay their loans;

-- the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;

-- significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;

-- the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;

-- negative effects from the retail banking sales practices matter and from other instances where customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;

-- reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;

-- a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

-- the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

-- fiscal and monetary policies of the Federal Reserve Board; and

-- the other risk factors and uncertainties described under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016.

In addition to the above factors, we also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, capital requirements (including under Basel capital standards), common stock issuance requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by the Company’s Board of Directors, and may be subject to regulatory approval or conditions.

For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

Any forward-looking statement made by us speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About Wells Fargo

Wells Fargo & Company (WFC ) is a diversified, community-based financial services company with $2.0 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investments, mortgage, and consumer and commercial finance through more than 8,300 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 263,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of America’s largest corporations.

 
                                   Wells Fargo & Company and Subsidiaries
                                          QUARTERLY FINANCIAL DATA
                                              TABLE OF CONTENTS
                                                                    
                                                                                                Pages
                                                                                        --------------------
                                                                                         
Summary Information
------------------------------------------------------------------
Summary Financial Data                                                                                    16
                                                                                         
Income
------------------------------------------------------------------
Consolidated Statement of Income                                                                          18
Consolidated Statement of Comprehensive Income                                                            20
Condensed Consolidated Statement of Changes in Total Equity                                               20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)                                        21
Five Quarter Average Balances, Yields and Rates Paid                                                      23
(Taxable-Equivalent Basis)
Noninterest Income and Noninterest Expense                                                                24
                                                                                         
Balance Sheet
------------------------------------------------------------------
Consolidated Balance Sheet                                                                                26
Investment Securities                                                                                     28
                                                                                         
Loans
------------------------------------------------------------------
Loans                                                                                                     28
Nonperforming Assets                                                                                      29
Loans 90 Days or More Past Due and Still Accruing                                                         30
Purchased Credit-Impaired Loans                                                                           31
Pick-A-Pay Portfolio                                                                                      32
Changes in Allowance for Credit Losses                                                                    34
                                                                                         
Equity
------------------------------------------------------------------
Tangible Common Equity                                                                                    35
Common Equity Tier 1 Under Basel III                                                                      36
                                                                                         
Operating Segments
------------------------------------------------------------------
Operating Segment Results                                                                                 37
                                                                                         
Other
------------------------------------------------------------------
Mortgage Servicing and other related data                                                                 39
                                                                                         
Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                     Quarter ended                                                     % Change                                                                              Year ended  
                                                                                                                                                                                                                                                                                                    Dec 31, 2017 from
                                                                                            ---------------------------------------------------------------------------------------------------------------------------------                              ------------------------------------------------------                          --------------------------------------------------------------------------------
($ in millions, except per share amounts)                                                          Dec 31,                          Sep 30,                          Dec 31,              Sep 30,              Dec 31,                             Dec 31,                          Dec 31,                    %
                                                                                                                         2017                                                2017                                                2016                                    2017                                    2016                                                   2017                                                2016                                  Change
---------------------------------------------------------------------- -------------------- -------------------------------   -------------------- -----------------------------  -------------------- -----------------------------  -------------------- -----------------  -------------------- -----------------  -------------------- -------------------------------   -------------------- -----------------------------  -------------------- -----------------
For the Period                                                                                                                                                                                                                                                                                                       
Wells Fargo net income (1)                                                                     $   6,151                                               4,542                                               5,274                                                       35   %                                  17                             $  22,183                                              21,938                                                        1   %
Wells Fargo net income applicable to common stock (1)                                              5,740                                               4,131                                               4,872                                                       39                                      18                                20,554                                              20,373                                                        1
Diluted earnings per common share (1)                                                               1.16                                                0.83                                                0.96                                                       40                                      21                                  4.10                                                3.99                                                        3
Profitability ratios (annualized) (1):
    Wells Fargo net income to average assets (ROA)                                                  1.26                    %                           0.93                                                1.08                                                       35                                      17                                  1.15                    %                           1.16                                                       (1 )
    Wells Fargo net income applicable to common stock to average Wells                             12.47                                                8.96                                               10.94                                                       39                                      14                                 11.35                                               11.49                                                       (1 )
    Fargo common stockholders’ equity (ROE)
    Return on average tangible common equity (ROTCE)(2)                                            14.85                                               10.66                                               13.16                                                       39                                      13                                 13.55                                               13.85                                                       (2 )
Efficiency ratio (1)(3)                                                                             76.2                                                65.7                                                61.2                                                       16                                      25                                  66.2                                                59.3                                                       12
Total revenue (1)                                                                              $  22,050                                              21,849                                              21,582                                                        1                                       2                             $  88,389                                              88,267                                           --
Pre-tax pre-provision profit (PTPP) (1)(4)                                                         5,250                                               7,498                                               8,367                                                      (30 )                                   (37 )                              29,905                                              35,890                                                      (17 )
Dividends declared per common share                                                                0.390                                               0.390                                               0.380                                           --                                       3                                 1.540                                               1.515                                                        2
Average common shares outstanding                                                                4,912.5                                             4,948.6                                             5,025.6                                                       (1 )                                    (2 )                             4,964.6                                             5,052.8                                                       (2 )
Diluted average common shares outstanding                                                        4,963.1                                             4,996.8                                             5,078.2                                                       (1 )                                    (2 )                             5,017.3                                             5,108.3                                                       (2 )
Average loans                                                                                  $ 951,822                                             952,343                                             964,147                                           --                                      (1 )                           $ 956,129                                             949,960                                                        1
Average assets (1)                                                                             1,935,318                                           1,938,461                                           1,944,250                                           --                          --                             1,933,005                                           1,885,441                                                        3
Average total deposits                                                                         1,311,592                                           1,306,356                                           1,284,158                                           --                                       2                             1,304,622                                           1,250,566                                                        4
Average consumer and small business banking deposits (5)                                         757,541                                             755,094                                             749,946                                           --                                       1                               758,271                                             732,620                                                        4
Net interest margin (1)                                                                             2.84                    %                           2.86                                                2.87                                                       (1 )                                    (1 )                                2.87                    %                           2.86                                           --
At Period End
Investment securities                                                                          $ 416,420                                             414,633                                             407,947                                           --                                       2                             $ 416,420                                             407,947                                                        2
Loans                                                                                            956,770                                             951,873                                             967,604                                                        1                                      (1 )                             956,770                                             967,604                                                       (1 )
Allowance for loan losses                                                                         11,004                                              11,078                                              11,419                                                       (1 )                                    (4 )                              11,004                                              11,419                                                       (4 )
Goodwill                                                                                          26,587                                              26,581                                              26,693                                           --                          --                                26,587                                              26,693                                           --
Assets (1)                                                                                     1,951,757                                           1,934,880                                           1,930,115                                                        1                                       1                             1,951,757                                           1,930,115                                                        1
Deposits                                                                                       1,335,991                                           1,306,706                                           1,306,079                                                        2                                       2                             1,335,991                                           1,306,079                                                        2
Common stockholders’ equity (1)                                                                  183,134                                             181,920                                             176,469                                                        1                                       4                               183,134                                             176,469                                                        4
Wells Fargo stockholders’ equity (1)                                  206,936                                             205,722                                             199,581                                                        1                                       4                               206,936                                             199,581                                                        4
Total equity (1)                                                                                 208,079                                             206,617                                             200,497                                                        1                                       4                               208,079                                             200,497                                                        4
Tangible common equity (1)(2)                                                                    153,730                                             152,694                                             146,737                                                        1                                       5                               153,730                                             146,737                                                        5
Common shares outstanding                                                                        4,891.6                                             4,927.9                                             5,016.1                                                       (1 )                                    (2 )                             4,891.6                                             5,016.1                                                       (2 )
Book value per common share (1)(6)                                                             $   37.44                                               36.92                                               35.18                                                        1                                       6                             $   37.44                                               35.18                                                        6
Tangible book value per common share (1)(2)(6)                                                     31.43                                               30.99                                               29.25                                                        1                                       7                                 31.43                                               29.25                                                        7
Common stock price:
    High                                                                                           62.24                                               56.45                                               58.02                                                       10                                       7                                 62.24                                               58.02                                                        7
    Low                                                                                            52.84                                               49.28                                               43.55                                                        7                                      21                                 49.28                                               43.55                                                       13
    Period end                                                                                     60.67                                               55.15                                               55.11                                                       10                                      10                                 60.67                                               55.11                                                       10
Team members (active, full-time equivalent)                                   262,700       268,000       269,100                 (2 )                 (2 )          262,700       269,100                 (2 )
---------------------------------------------------------------------- -------------------- --------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --- -------------------- -------------- --- -------------------- --------------------------------- -------------------- --------- -------------------- -------------------- -------------- ---
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption of Accounting
Standards Update (ASU) 2017-12 - Derivatives and Hedging (Topic
815): Targeted Improvements to Accounting for Hedging Activities
in fourth quarter 2017. The retrospective application of the
changes to certain hedging strategies resulted in a cumulative
effect adjustment to opening retained earnings effective January
1, 2017. The adjustment reduced retained earnings by $381 million
and increased other comprehensive income by $168 million. The
effect of adoption on previously reported September 30, 2017,
year-to-date net income resulted in an increase of $169 million
($242 million pre-tax) and a decrease in other comprehensive
income of $163 million. Other affected financial information,
including financial ratios, has been revised to reflect this
adoption.
(2) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company’s
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
(3) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
(4) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
(5) Consumer and small business banking deposits are total deposits
excluding mortgage escrow and wholesale deposits.
(6) Book value per common share is common stockholders’ equity
divided by common shares outstanding. Tangible book value per common
share is tangible common equity divided by common shares outstanding.
 
Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
                                                                                                                                                                                                                                                                                         Quarter ended
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
($ in millions, except per share amounts)                                                           Dec 31,                          Sep 30,                          Jun 30,                          Mar 31,     Dec 31,
                                                                                                                          2017                                                2017                                                2017                                                2017                           2016
---------------------------------------------------------------------- -------------------- --------------------------------   -------------------- -----------------------------  -------------------- -----------------------------  -------------------- -----------------------------  -------------------- ---------
For the Quarter                                                                                                                                                                                                                    
Wells Fargo net income (1)                                                                      $   6,151                                               4,542                                               5,856                                               5,634                                               5,274
Wells Fargo net income applicable to common stock (1)                                               5,740                                               4,131                                               5,450                                               5,233                                               4,872
Diluted earnings per common share (1)                                                                1.16                                                0.83                                                1.08                                                1.03                                                0.96
Profitability ratios (annualized) (1):
    Wells Fargo net income to average assets (ROA)                                                   1.26                    %                           0.93                                                1.22                                                1.18                                                1.08
    Wells Fargo net income applicable to common stock to average Wells                              12.47                                                8.96                                               12.06                                               11.96                                               10.94
    Fargo common stockholders’ equity (ROE)
Return on average tangible common equity (ROTCE)(2)                                                 14.85                                               10.66                                               14.41                                               14.35                                               13.16
Efficiency ratio (1)(3)                                                                              76.2                                                65.7                                                60.9                                                62.0                                                61.2
Total revenue (1)                                                                               $  22,050                                              21,849                                              22,235                                              22,255                                              21,582
Pre-tax pre-provision profit (PTPP) (1)(4)                                                          5,250                                               7,498                                               8,694                                               8,463                                               8,367
Dividends declared per common share                                                                  0.39                                                0.39                                                0.38                                                0.38                                                0.38
Average common shares outstanding                                                                 4,912.5                                             4,948.6                                             4,989.9                                             5,008.6                                             5,025.6
Diluted average common shares outstanding                                                         4,963.1                                             4,996.8                                             5,037.7                                             5,070.4                                             5,078.2
Average loans                                                                                   $ 951,822                                             952,343                                             956,879                                             963,645                                             964,147
Average assets (1)                                                                              1,935,318                                           1,938,461                                           1,927,021                                           1,931,040                                           1,944,250
Average total deposits                                                                          1,311,592                                           1,306,356                                           1,301,195                                           1,299,191                                           1,284,158
Average consumer and small business banking deposits (5)                                          757,541                                             755,094                                             760,149                                             758,754                                             749,946
Net interest margin (1)                                                                              2.84                    %                           2.86                                                2.90                                                2.87                                                2.87
At Quarter End
Investment securities                                                                           $ 416,420                                             414,633                                             409,594                                             407,560                                             407,947
Loans                                                                                             956,770                                             951,873                                             957,423                                             958,405                                             967,604
Allowance for loan losses                                                                          11,004                                              11,078                                              11,073                                              11,168                                              11,419
Goodwill                                                                                           26,587                                              26,581                                              26,573                                              26,666                                              26,693
Assets (1)                                                                                      1,951,757                                           1,934,880                                           1,930,792                                           1,951,501                                           1,930,115
Deposits                                                                                        1,335,991                                           1,306,706                                           1,305,830                                           1,325,444                                           1,306,079
Common stockholders’ equity (1)                                                                   183,134                                             181,920                                             181,233                                             178,209                                             176,469
Wells Fargo stockholders’ equity (1)                                   206,936                                             205,722                                             205,034                                             201,321                                             199,581
Total equity (1)                                                                                  208,079                                             206,617                                             205,949                                             202,310                                             200,497
Tangible common equity (1)(2)                                                                     153,730                                             152,694                                             151,868                                             148,671                                             146,737
Common shares outstanding                                                                         4,891.6                                             4,927.9                                             4,966.8                                             4,996.7                                             5,016.1
Book value per common share (1)(6)                                                              $   37.44                                               36.92                                               36.49                                               35.67                                               35.18
Tangible book value per common share (1)(2)(6)                                                      31.43                                               30.99                                               30.58                                               29.75                                               29.25
Common stock price:
    High                                                                                            62.24                                               56.45                                               56.60                                               59.99                                               58.02
    Low                                                                                             52.84                                               49.28                                               50.84                                               53.35                                               43.55
    Period end                                                                                      60.67                                               55.15                                               55.41                                               55.66                                               55.11
Team members (active, full-time equivalent)                                    262,700       268,000       270,600       272,800       269,100
---------------------------------------------------------------------- -------------------- ---------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- ---------
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption of Accounting
Standards Update (ASU) 2017-12 - Derivatives and Hedging (Topic
815): Targeted Improvements to Accounting for Hedging Activities
in fourth quarter 2017. The retrospective application of the
changes to certain hedging strategies resulted in a cumulative
effect adjustment to opening retained earnings effective January
1, 2017. The adjustment reduced retained earnings by $381 million
and increased other comprehensive income by $168 million. The
effect of adoption on previously reported September 30, 2017,
year-to-date net income resulted in an increase of $169 million
($242 million pre-tax) and a decrease in other comprehensive
income of $163 million. Other affected financial information,
including financial ratios, has been revised to reflect this
adoption.
(2) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company’s
use of equity. For additional information, including a
corresponding reconciliation to GAAP financial measures, see the
"Tangible Common Equity" tables on page 35.
(3) The efficiency ratio is noninterest expense divided by total
revenue (net interest income and noninterest income).
(4) Pre-tax pre-provision profit (PTPP) is total revenue less
noninterest expense. Management believes that PTPP is a useful
financial measure because it enables investors and others to
assess the Company’s ability to generate capital to cover credit
losses through a credit cycle.
(5) Consumer and small business banking deposits are total deposits
excluding mortgage escrow and wholesale deposits.
(6) Book value per common share is common stockholders’ equity
divided by common shares outstanding. Tangible book value per common
share is tangible common equity divided by common shares outstanding.
 
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               Quarter ended December 31,                    %                                                             Year ended December 31,                    %
                                                                           ----------------------------------------------------------------------------------                                                             ----------------------------------------------------------------------------------
(in millions, except per share amounts)                                            2017                           2016               Change                              2017                           2016               Change
----------------------------------------------------- -------------------- ---------------------------------------------------- ------------------------------------------------- --------------------------------------- ---------------------------------------------------- ------------------------------------------------- -------------------
Interest income                                                                                                                                                                                                                         
Trading assets                                                                $   821                                               745                                                       10   %                        $  2,928                                             2,506                                                       17   %
Investment securities                                                           2,669                                             2,512                                                        6                              10,664                                             9,248                                                       15
Mortgages held for sale                                                           196                                               235                                                      (17 )                               786                                               784                                           --
Loans held for sale                                                                 2                                                 2                                           --                                  12                                                 9                                                       33
Loans                                                                          10,367                                            10,128                                                        2                              41,388                                            39,505                                                        5
Other interest income                                          903         436                                   107            3,131       1,611                                    94
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
    Total interest income                                   14,958      14,058                                     6           58,909      53,663                                    10
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Interest expense
Deposits                                                                          931                                               400                                                      133                               3,013                                             1,395                                                      116
Short-term borrowings                                                             255                                               101                                                      152                                 758                                               330                                                      130
Long-term debt                                                                  1,344                                             1,061                                                       27                               5,157                                             3,830                                                       35
Other interest expense                                         115          94                                    22              424         354                                    20
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
    Total interest expense                                   2,645       1,656                                    60            9,352       5,909                                    58
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Net interest income                                                            12,313                                            12,402                                                       (1 )                            49,557                                            47,754                                                        4
Provision for credit losses                                    651         805                                   (19 )          2,528       3,770                                   (33 )
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Net interest income after provision for credit losses       11,662      11,597                                     1           47,029      43,984                                     7
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Noninterest income
Service charges on deposit accounts                                             1,246                                             1,357                                                       (8 )                             5,111                                             5,372                                                       (5 )
Trust and investment fees                                                       3,687                                             3,698                                           --                              14,495                                            14,243                                                        2
Card fees                                                                         996                                             1,001                                           --                               3,960                                             3,936                                                        1
Other fees                                                                        913                                               962                                                       (5 )                             3,557                                             3,727                                                       (5 )
Mortgage banking                                                                  928                                             1,417                                                      (35 )                             4,350                                             6,096                                                      (29 )
Insurance                                                                         223                                               262                                                      (15 )                             1,049                                             1,268                                                      (17 )
Net gains (losses) from trading activities                                        132                                              (109 )                                                         NM                           1,053                                               834                                                       26
Net gains on debt securities                                                      157                                               145                                                        8                                 479                                               942                                                      (49 )
Net gains from equity investments                                                 439                                               306                                                       43                               1,268                                               879                                                       44
Lease income                                                                      458                                               523                                                      (12 )                             1,907                                             1,927                                                       (1 )
Other                                                          558        (382 )                                                         NM        1,603       1,289                                    24
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
    Total noninterest income                                 9,737       9,180                                     6           38,832      40,513                                    (4 )
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Noninterest expense
Salaries                                                                        4,403                                             4,193                                                        5                              17,363                                            16,552                                                        5
Commission and incentive compensation                                           2,665                                             2,478                                                        8                              10,442                                            10,247                                                        2
Employee benefits                                                               1,293                                             1,101                                                       17                               5,566                                             5,094                                                        9
Equipment                                                                         608                                               642                                                       (5 )                             2,237                                             2,154                                                        4
Net occupancy                                                                     715                                               710                                                        1                               2,849                                             2,855                                           --
Core deposit and other intangibles                                                288                                               301                                                       (4 )                             1,152                                             1,192                                                       (3 )
FDIC and other deposit assessments                                                312                                               353                                                      (12 )                             1,287                                             1,168                                                       10
Other                                                        6,516       3,437                                    90           17,588      13,115                                    34
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Total noninterest expense                                   16,800      13,215                                    27           58,484      52,377                                    12
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Income before income tax expense                                                4,599                                             7,562                                                      (39 )                            27,377                                            32,120                                                      (15 )
Income tax expense (benefit)                                (1,642 )                        2,258                                        NM        4,917      10,075                                   (51 )
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Net income before noncontrolling interests                                      6,241                                             5,304                                                       18                              22,460                                            22,045                                                        2
Less: Net income from noncontrolling interests                  90          30                                   200              277         107                                   159
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Wells Fargo net income                                     $ 6,151       5,274                                    17         $ 22,183      21,938                                     1
----------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ------- --------------------                                         -------------------- --- ------ -------------------- -------------------- ------- --------------------
Less: Preferred stock dividends and other                      411         402                                     2            1,629       1,565                                     4
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- --------------------                                         -------------------- ------------------------------- -------------------- ------- --------------------
Wells Fargo net income applicable to common stock          $ 5,740       4,872                                    18         $ 20,554      20,373                                     1
----------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ------- --------------------                                         -------------------- --- ------ -------------------- -------------------- ------- --------------------
Per share information
    Earnings per common share                                                 $  1.17                                              0.97                                                       21                            $   4.14                                              4.03                                                        3
    Diluted earnings per common share                                            1.16                                              0.96                                                       21                                4.10                                              3.99                                                        3
    Dividends declared per common share                                         0.390                                             0.380                                                        3                               1.540                                             1.515                                                        2
Average common shares outstanding                                             4,912.5                                           5,025.6                                                       (2 )                           4,964.6                                           5,052.8                                                       (2 )
Diluted average common shares outstanding                  4,963.1     5,078.2                 (2 )        5,017.3     5,108.3                 (2 )
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- -------------- --- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- -------------- ---
NM - Not meaningful
                                                                                                                                                                                                       
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
                                                                                                                                                                                                                                        Quarter ended  
                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share amounts)                    Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,   Dec 31,  
                                                                                 2017                                              2017                                              2017                                              2017                         2016
----------------------------------------------------- -------------------- ---------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ------- --------------------
Interest income
Trading assets                                                                $   821                          754                                               710                                               643                                               745
Investment securities (1)                                                       2,669                        2,650                                             2,681                                             2,664                                             2,512
Mortgages held for sale (1)                                                       196                          217                                               191                                               182                                               235
Loans held for sale                                                                 2                            5                                                 4                                                 1                                                 2
Loans                                                                          10,367                       10,522                                            10,358                                            10,141                                            10,128
Other interest income                                          903       896         750         582         436  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total interest income (1)                               14,958    15,044      14,694      14,213      14,058  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Interest expense
Deposits (1)                                                                      931                          869                                               677                                               536                                               400
Short-term borrowings                                                             255                          226                                               163                                               114                                               101
Long-term debt (1)                                                              1,344                        1,391                                             1,275                                             1,147                                             1,061
Other interest expense                                         115       109         108          92          94  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total interest expense (1)                               2,645     2,595       2,223       1,889       1,656  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net interest income (1)                                                        12,313                       12,449                                            12,471                                            12,324                                            12,402
Provision for credit losses                                    651       717         555         605         805  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net interest income after provision for credit losses       11,662    11,732      11,916      11,719      11,597  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Noninterest income
Service charges on deposit accounts                                             1,246                        1,276                                             1,276                                             1,313                                             1,357
Trust and investment fees                                                       3,687                        3,609                                             3,629                                             3,570                                             3,698
Card fees                                                                         996                        1,000                                             1,019                                               945                                             1,001
Other fees                                                                        913                          877                                               902                                               865                                               962
Mortgage banking                                                                  928                        1,046                                             1,148                                             1,228                                             1,417
Insurance                                                                         223                          269                                               280                                               277                                               262
Net gains (losses) from trading activities                                        132                          245                                               237                                               439                                              (109 )
Net gains on debt securities                                                      157                          166                                               120                                                36                                               145
Net gains from equity investments                                                 439                          238                                               188                                               403                                               306
Lease income                                                                      458                          475                                               493                                               481                                               523
Other (1)                                                      558       199         472         374        (382 )
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total noninterest income (1)                             9,737     9,400       9,764       9,931       9,180  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Noninterest expense
Salaries                                                                        4,403                        4,356                                             4,343                                             4,261                                             4,193
Commission and incentive compensation                                           2,665                        2,553                                             2,499                                             2,725                                             2,478
Employee benefits                                                               1,293                        1,279                                             1,308                                             1,686                                             1,101
Equipment                                                                         608                          523                                               529                                               577                                               642
Net occupancy                                                                     715                          716                                               706                                               712                                               710
Core deposit and other intangibles                                                288                          288                                               287                                               289                                               301
FDIC and other deposit assessments                                                312                          314                                               328                                               333                                               353
Other                                                        6,516     4,322       3,541       3,209       3,437  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
    Total noninterest expense                               16,800    14,351      13,541      13,792      13,215  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Income before income tax expense (1)                                            4,599                        6,781                                             8,139                                             7,858                                             7,562
Income tax expense (benefit) (1)                            (1,642 )                      2,181       2,245       2,133       2,258  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Net income before noncontrolling interests (1)                                  6,241                        4,600                                             5,894                                             5,725                                             5,304
Less: Net income from noncontrolling interests                  90        58          38          91          30  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Wells Fargo net income (1)                                 $ 6,151     4,542       5,856       5,634       5,274  
----------------------------------------------------- -------------------- ---- ----- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Less: Preferred stock dividends and other                      411       411         406         401         402  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Wells Fargo net income applicable to common stock (1)      $ 5,740     4,131       5,450       5,233       4,872  
----------------------------------------------------- -------------------- ---- ----- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Per share information
    Earnings per common share (1)                                             $  1.17                         0.83                                              1.09                                              1.05                                              0.97
    Diluted earnings per common share (1)                                        1.16                         0.83                                              1.08                                              1.03                                              0.96
    Dividends declared per common share                                         0.390                        0.390                                             0.380                                             0.380                                             0.380
Average common shares outstanding                                             4,912.5                      4,948.6                                           4,989.9                                           5,008.6                                           5,025.6
Diluted average common shares outstanding                  4,963.1   4,996.8     5,037.7     5,070.4     5,078.2  
----------------------------------------------------- -------------------- ------------------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
 
Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Quarter ended Dec 31,      %                                                                   Year ended Dec 31,      %
                                                                                           --------------------------------------------------------------------------------                                                 ---------------------------------------------------------------------------------
(in millions)                                                                                     2017                          2016   Change                              2017                          2016   Change
--------------------------------------------------------------------- -------------------- --------------------------------------------------- ------------------------------------------------ ------ -------------------- ---------------------------------------------------- ------------------------------------------------ ------
Wells Fargo net income                                                    $ 6,151      5,274                           17%                        $ 22,183     21,938                            1%
--------------------------------------------------------------------- -------------------- --- ----- -------------------- -------------------- ------ --------------------                                                  --- ------ -------------------- -------------------- ------ --------------------
Other comprehensive income (loss), before tax:                                                                                                                                                                                            
Investment securities:
    Net unrealized gains (losses) arising during the period                                     (106 )                                         (5,936 )                                           (98)                           2,719                                           (3,458 )                                             NM
    Reclassification of net gains to net income                                                 (215 )                                           (239 )                                           (10)                            (737 )                                         (1,240 )                                           (41)
Derivatives and hedging activities:
    Net unrealized gains (losses) arising during the period                                     (558 )                                         (2,434 )                                           (77)                            (540 )                                            177                                               NM
    Reclassification of net gains on cash flow hedges to net income                              (83 )                                           (246 )                                           (66)                            (543 )                                         (1,029 )                                           (47)
Defined benefit plans adjustments:
    Net actuarial and prior service gains (losses) arising during the                             45                                              422                                             (89)                              49                                              (52 )                                             NM
    period
    Amortization of net actuarial loss, settlements and other to net                              33                                               43                                             (23)                             153                                              158                                              (3)
    income
Foreign currency translation adjustments:
    Net unrealized gains (losses) arising during the period                    10        (30 )                                             NM                              96         (3 )                                             NM
--------------------------------------------------------------------- -------------------- ------------------------------ -------------------- ------ --------------------                                                  ------------------------------- -------------------- ------ --------------------
Other comprehensive income (loss), before tax                                                   (874 )                                         (8,420 )                                           (90)                           1,197                                           (5,447 )                                             NM
Income tax benefit (expense) related to other comprehensive income            319      3,106                          (90)                            (434 )                       1,996                            NM
--------------------------------------------------------------------- -------------------- ------------------------------ -------------------- ------ --------------------                                                  ------------------------------- -------------------- ------ --------------------
Other comprehensive income (loss), net of tax                                                   (555 )                                         (5,314 )                                           (90)                             763                                           (3,451 )                                             NM
Less: Other comprehensive income (loss) from noncontrolling interests         (33 )                           7                            NM                             (62 )                         (17 )                                            265
--------------------------------------------------------------------- -------------------- ------------------------------ -------------------- ------ --------------------                                                  ------------------------------- -------------------- ------ --------------------
Wells Fargo other comprehensive income (loss), net of tax                    (522 )                      (5,321 )                                           (90)                             825     (3,434 )                                             NM
--------------------------------------------------------------------- -------------------- ------------------------------ -------------------- ------ --------------------                                                  ------------------------------- -------------------- ------ --------------------
Wells Fargo comprehensive income (loss)                                                        5,629                                              (47 )                                             NM                          23,008                                           18,504                                               24
Comprehensive income from noncontrolling interests                             57         37                            54                             215         90                           139
--------------------------------------------------------------------- -------------------- ------------------------------ -------------------- ------ --------------------                                                  ------------------------------- -------------------- ------ --------------------
Total comprehensive income (loss)                                         $ 5,686        (10 )                          NM     $ 23,223     18,594         25
--------------------------------------------------------------------- -------------------- --- ----- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- --- ------ -------------------- -------------------- ------ -------------------- -------------------- ------
NM - Not meaningful
 
 
FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
TOTAL EQUITY
                                                                                                                                                                                                                                                                                                     Quarter ended
                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                                   2017                                                     2017                                                     2017                                                     2017                                                     2016
------------------------------------------------------------- -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
Balance, beginning of period (1)                                                         $ 206,617                               205,949                               202,310                               200,497                               203,958
Cumulative effect from change in hedge accounting (1)                               --                                           --                                           --                                                     (213 )                                         --
Wells Fargo net income (1)                                                                   6,151                                                    4,542                                                    5,856                                                    5,634                                                    5,274
Wells Fargo other comprehensive income (loss), net of tax (1)                                 (522 )                                                    526                                                    1,005                                                     (184 )                                                 (5,321 )
Noncontrolling interests                                                                       247                                                      (20 )                                                    (75 )                                                     75                                                      (13 )
Common stock issued                                                                            436                                                      254                                                      252                                                    1,406                                                      610
Common stock repurchased (2)                                                                (2,845 )                                                 (2,601 )                                                 (2,287 )                                                 (2,175 )                                                 (2,034 )
Preferred stock released by ESOP                                                               218                                                      209                                                      406                                           --                                                       43
Common stock warrants repurchased/exercised                                                    (46 )                                                    (19 )                                                    (24 )                                                    (44 )                                         --
Preferred stock issued                                                              --                                           --                                                      677                                           --                                           --
Common stock dividends                                                                      (1,920 )                                                 (1,936 )                                                 (1,899 )                                                 (1,903 )                                                 (1,909 )
Preferred stock dividends                                                                     (411 )                                                   (411 )                                                   (406 )                                                   (401 )                                                   (401 )
Tax benefit from stock incentive compensation (3)                                   --                                           --                                           --                                           --                                                       74
Stock incentive compensation expense                                                           206                                                      135                                                      145                                                      389                                                      232
Net change in deferred compensation and related plans                       (52 )                                 (11 )                                 (11 )                                (771 )                                 (16 )
------------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Balance, end of period (1)                                            $ 208,079            206,617            205,949            202,310            200,497  
------------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting for
Hedging Activities. See footnote (1) to the Summary Financial Data
table on page 16 for more information.
(2) For the quarter ended December 31, 2016, includes $750 million
related to a private forward repurchase transaction that settled
in first quarter 2017 for 14.7 million shares of common stock.
(3) Effective January 1, 2017, we adopted Accounting Standards
Update 2016-09 (Improvements to Employee Share-Based Payment
Accounting). Accordingly, tax benefit from stock incentive
compensation is reported in income tax expense in the consolidated
statement of income.
 
                                                                      
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                               Quarter ended December 31,
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                            2017                                                                                                                           2016
                                                                                          -------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                      Average                               Yields/                               Interest                          Average                               Yields/          Interest
                                                                                                                      balance                                                    rates                                                   income/                                             balance                                                    rates                              income/
                                                                                                                                                                                                                                         expense                                                                                                                                           expense
-------------------------------------------------------------------- -------------------- ---------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------   -------------------- -----------------------------  -------------------- ----------------------------------  -------------------- --------------
Earning assets                                                                                                                                                                                                                                                                                        
Federal funds sold, securities purchased under resale agreements and                         $   264,940                                                     1.25                    %                            $     835                                             273,073                                                     0.56                    %                            $     381
other short-term investments
Trading assets                                                                                   111,213                                                     3.01                                                       838                                             102,757                                                     2.96                                                       761
Investment securities (3):
    Available-for-sale securities:
        Securities of U.S. Treasury and federal agencies                                           6,423                                                     1.66                                                        27                                              25,935                                                     1.53                                                        99
        Securities of U.S. states and political subdivisions                                      52,390                                                     3.91                                                       513                                              53,917                                                     4.06                                                       547
        Mortgage-backed securities:
            Federal agencies                                                                     152,910                                                     2.62                                                     1,000                                             147,980                                                     2.37                                                       875
            Residential and commercial                                          9,371                                  4.85                                                       114                           16,456                                  5.87                                                       242
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                Total mortgage-backed securities                                                 162,281                                                     2.75                                                     1,114                                             164,436                                                     2.72                                                     1,117
Other debt and equity securities                                               49,138                                  3.70                                                       456                           52,692                                  3.71                                                       492
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                  Total available-for-sale securities                         270,232                                  3.12                                                     2,110                          296,980                                  3.03                                                     2,255
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
Held-to-maturity securities:
        Securities of U.S. Treasury and federal agencies                                          44,716                                                     2.19                                                       246                                              44,686                                                     2.20                                                       246
        Securities of U.S. states and political subdivisions                                       6,263                                                     5.26                                                        83                                               4,738                                                     5.31                                                        63
        Federal agency and other mortgage-backed securities                                       89,622                                                     2.25                                                       503                                              46,009                                                     1.81                                                       209
        Other debt securities                                                   1,194                                  2.64                                                         8                            3,597                                  2.26                                                        20
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                  Total held-to-maturity securities                           141,795                                  2.36                                                       840                           99,030                                  2.17                                                       538
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                    Total investment securities                                                  412,027                                                     2.86                                                     2,950                                             396,010                                                     2.82                                                     2,793
Mortgages held for sale (4)                                                                       20,517                                                     3.82                                                       196                                              27,503                                                     3.43                                                       235
Loans held for sale (4)                                                                              114                                                     8.14                                                         2                                                 155                                                     5.42                                                         2
Loans:
    Commercial:
        Commercial and industrial - U.S.                                                         270,294                                                     3.89                                                     2,649                                             272,828                                                     3.46                                                     2,369
        Commercial and industrial - Non U.S.                                                      59,233                                                     2.96                                                       442                                              54,410                                                     2.58                                                       352
        Real estate mortgage                                                                     127,199                                                     3.88                                                     1,244                                             131,195                                                     3.44                                                     1,135
        Real estate construction                                                                  24,408                                                     4.38                                                       270                                              23,850                                                     3.61                                                       216
        Lease financing                                                        19,226                                  0.62                                                        31                           18,904                                  5.78                                                       273
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
            Total commercial                                                  500,360                                  3.68                                                     4,636                          501,187                                  3.45                                                     4,345
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
    Consumer:
        Real estate 1-4 family first mortgage                                                    281,966                                                     4.01                                                     2,826                                             277,732                                                     4.01                                                     2,785
        Real estate 1-4 family junior lien mortgage                                               40,379                                                     4.96                                                       505                                              47,203                                                     4.42                                                       524
        Credit card                                                                               36,428                                                    12.37                                                     1,136                                              35,383                                                    11.73                                                     1,043
        Automobile                                                                                54,323                                                     5.13                                                       702                                              62,521                                                     5.54                                                       870
        Other revolving credit and installment                                 38,366                                  6.28                                                       607                           40,121                                  5.91                                                       595
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
            Total consumer                                                    451,462                                  5.10                                                     5,776                          462,960                                  5.01                                                     5,817
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                Total loans (4)                                                                  951,822                                                     4.35                                                    10,412                                             964,147                                                     4.20                                                    10,162
Other                                                                          13,084                                  2.06                                                        68                            6,729                                  3.27                                                        56
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                    Total earning assets                                  $ 1,773,717                                  3.43                    %                            $  15,301                        1,770,374                                  3.24                    %                            $  14,390
-------------------------------------------------------------------- -------------------- ---- --------- --------------------                                                                               ------- ------- --------------------                      --------- --------------------                                                                               ------- -------
Funding sources
Deposits:
    Interest-bearing checking                                                                $    50,483                                                     0.68                    %                            $      86                                              46,907                                                     0.17                    %                            $      19
    Market rate and other savings                                                                679,893                                                     0.19                                                       319                                             676,365                                                     0.07                                                       122
    Savings certificates                                                                          20,920                                                     0.31                                                        17                                              24,362                                                     0.30                                                        18
    Other time deposits                                                                           68,187                                                     1.49                                                       255                                              49,170                                                     1.16                                                       144
    Deposits in foreign offices                                               124,597                                  0.81                                                       254                          110,425                                  0.35                                                        97
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
            Total interest-bearing deposits                                                      944,080                                                     0.39                                                       931                                             907,229                                                     0.18                                                       400
Short-term borrowings                                                                            102,142                                                     0.99                                                       256                                             124,698                                                     0.33                                                       102
Long-term debt                                                                                   231,598                                                     2.32                                                     1,344                                             252,162                                                     1.68                                                     1,061
Other liabilities                                                              24,728                                  1.86                                                       115                           17,210                                  2.15                                                        94
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
            Total interest-bearing liabilities                                                 1,302,548                                                     0.81                                                     2,646                                           1,301,299                                                     0.51                                                     1,657
Portion of noninterest-bearing funding sources                                471,169                        --                                            --                          469,075                        --                                            --
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                               ------------------------------------                      --------- --------------------                                                                               ----------------
                    Total funding sources                                 $ 1,773,717                                  0.59                                  2,646                        1,770,374                                  0.37                                  1,657
-------------------------------------------------------------------- -------------------- ---- --------- --------------------                      -------------- --------------------                      ------------------------------------                      --------- --------------------                      -------------- --------------------                      ----------------
Net interest margin and net interest income on a                                                                                                             2.84                    %         $  12,655                                                                                      2.87                    %         $  12,733
taxable-equivalent basis (5)
                                                                                                                                                   -------------- -------------------- -------------------- ------- ------- --------------------                                                                          -------------- -------------------- -------------------- ------- -------
Noninterest-earning assets
Cash and due from banks                                                                      $    19,152                                                                                                                                                                 18,967
Goodwill                                                                                          26,579                                                                                                                                                                 26,713
Other                                                                         115,870                                                                                                                                             128,196  
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                                                                                         --------- --------------------
                    Total noninterest-earning assets                      $   161,601                                                                                                                                             173,876  
-------------------------------------------------------------------- -------------------- ---- --------- --------------------                                                                                                                                         --------- --------------------
Noninterest-bearing funding sources
Deposits                                                                                     $   367,512                                                                                                                                                                376,929
Other liabilities                                                                                 57,845                                                                                                                                                                 64,775
Total equity                                                                                     207,413                                                                                                                                                                201,247
Noninterest-bearing funding sources used to fund earning assets              (471,169 )                                                                                                                                                             (469,075 )
-------------------------------------------------------------------- -------------------- -----------------------------------                                                                                                                                         --------- --------------------
                    Net noninterest-bearing funding sources               $   161,601                                                                                                                                             173,876  
-------------------------------------------------------------------- -------------------- ---- --------- --------------------                                                                                                                                         --------- --------------------
Total assets                                                              $ 1,935,318                                                                                                                                           1,944,250  
-------------------------------------------------------------------- -------------------- ---- --------- --------------------                                                                                                                                         --------- --------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Our average prime rate was 4.30% and 3.54% for the quarters
ended December 31, 2017 and 2016, respectively. The average
three-month London Interbank Offered Rate (LIBOR) was 1.46% and
0.92% for the same quarters, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent amortized
cost for the periods presented.
(4) Nonaccrual loans and related income are included in their
respective loan categories.
(5) Includes taxable-equivalent adjustments of $342 million and
$331 million for the quarters ended December 31, 2017 and 2016,
respectively, predominantly related to tax-exempt income on
certain loans and securities. The federal statutory tax rate was
35% for the periods presented.
 
Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT
BASIS) (1)(2)
                                                                                                                                                                                                                                                                                                            Year ended December 31,
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                       2017                                                                                                                                            2016
                                                                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                 Average                               Yields/                               Interest                                     Average                               Yields/                Interest
                                                                                                                                                 balance                                                    rates                                                   income/                                                        balance                                                    rates                                    income/
                                                                                                                                                                                                                                                                    expense                                                                                                                                                            expense
-------------------------------------------------------------------- -------------------- ------------------------------------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------   -------------------- ----------------------------------------  -------------------- ----------------------------------  -------------------- --------------------
Earning assets                                                                                                                                                                                                                                                                                                                              
Federal funds sold, securities purchased under resale agreements and                                         $              276,561                                                     1.05                    %                            $   2,897                                                        287,718                                                     0.51                    %                               $      1,457
other short-term investments
Trading assets                                                                                                              101,716                                                     2.93                                                     2,982                                                         88,400                                                     2.89                                                           2,553
Investment securities (3):
    Available-for-sale securities:
        Securities of U.S. Treasury and federal agencies                                                                     15,966                                                     1.49                                                       239                                                         29,418                                                     1.56                                                             457
        Securities of U.S. states and political subdivisions                                                                 52,658                                                     3.95                                                     2,082                                                         52,959                                                     4.20                                                           2,225
        Mortgage-backed securities:
            Federal agencies                                                                                                145,310                                                     2.60                                                     3,782                                                        110,637                                                     2.50                                                           2,764
            Residential and commercial                                                                    11,839                                  5.33                                                       631                                      18,725                                  5.49                                                           1,029
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
              Total mortgage-backed securities                                                                              157,149                                                     2.81                                                     4,413                                                        129,362                                                     2.93                                                           3,793
        Other debt and equity securities                                                                  49,193                                  3.73                                                     1,834                                      53,433                                  3.44                                                           1,841
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
                Total available-for-sale securities                                                      274,966                                  3.12                                                     8,568                                     265,172                                  3.14                                                           8,316
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
    Held-to-maturity securities:
        Securities of U.S. Treasury and federal agencies                                                                     44,705                                                     2.19                                                       979                                                         44,675                                                     2.19                                                             979
        Securities of U.S. states and political subdivisions                                                                  6,268                                                     5.32                                                       334                                                          2,893                                                     5.32                                                             154
        Federal agency and other mortgage-backed securities                                                                  78,330                                                     2.34                                                     1,832                                                         39,330                                                     2.00                                                             786
        Other debt securities                                                                              2,194                                  2.50                                                        55                                       4,043                                  2.01                                                              81
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
                Total held-to-maturity securities                                                        131,497                                  2.43                                                     3,200                                      90,941                                  2.20                                                           2,000
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
Total investment securities                                                                                                 406,463                                                     2.90                                                    11,768                                                        356,113                                                     2.90                                                          10,316
Mortgages held for sale (4)                                                                                                  20,780                                                     3.78                                                       786                                                         22,412                                                     3.50                                                             784
Loans held for sale (4)                                                                                                         147                                                     8.38                                                        12                                                            218                                                     4.01                                                               9
Loans:
    Commercial:
        Commercial and industrial - U.S.                                                                                    272,034                                                     3.75                                                    10,196                                                        268,182                                                     3.45                                                           9,243
        Commercial and industrial - Non U.S.                                                                                 57,198                                                     2.86                                                     1,639                                                         51,601                                                     2.36                                                           1,219
        Real estate mortgage                                                                                                129,990                                                     3.74                                                     4,859                                                        127,232                                                     3.44                                                           4,371
        Real estate construction                                                                                             24,813                                                     4.10                                                     1,017                                                         23,197                                                     3.55                                                             824
        Lease financing                                                                                   19,128                                  3.74                                                       715                                      17,950                                  5.10                                                             916
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
            Total commercial                                                                             503,163                                  3.66                                                    18,426                                     488,162                                  3.39                                                          16,573
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
    Consumer:
        Real estate 1-4 family first mortgage                                                                               277,751                                                     4.03                                                    11,206                                                        276,712                                                     4.01                                                          11,096
        Real estate 1-4 family junior lien mortgage                                                                          42,780                                                     4.82                                                     2,062                                                         49,735                                                     4.39                                                           2,183
        Credit card                                                                                                          35,600                                                    12.23                                                     4,355                                                         34,178                                                    11.62                                                           3,970
        Automobile                                                                                                           57,900                                                     5.34                                                     3,094                                                         61,566                                                     5.62                                                           3,458
        Other revolving credit and installment                                                            38,935                                  6.18                                                     2,408                                      39,607                                  5.93                                                           2,350
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
            Total consumer                                                                               452,966                                  5.11                                                    23,125                                     461,798                                  4.99                                                          23,057
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
Total loans (4)                                                                                                             956,129                                                     4.35                                                    41,551                                                        949,960                                                     4.17                                                          39,630
Other                                                                                                     11,445                                  2.06                                                       237                                       6,262                                  2.51                                                             157
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
                  Total earning assets                                                    $            1,773,241                                  3.40                    %                            $  60,233                                   1,711,083                                  3.21                    %                               $     54,906
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                                                                               ------- ------- --------------------                      -------------------- --------------------                                                                               ---------- ----------
Funding sources
Deposits:
    Interest-bearing checking                                                                                $               49,474                                                     0.49                    %                            $     242                                                         42,379                                                     0.14                    %                               $         60
    Market rate and other savings                                                                                           682,053                                                     0.14                                                       983                                                        663,557                                                     0.07                                                             449
    Savings certificates                                                                                                     22,190                                                     0.30                                                        67                                                         25,912                                                     0.35                                                              91
    Other time deposits                                                                                                      61,625                                                     1.43                                                       880                                                         55,846                                                     0.91                                                             508
    Deposits in foreign offices                                                                          123,816                                  0.68                                                       841                                     103,206                                  0.28                                                             287
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
            Total interest-bearing deposits                                                                                 939,158                                                     0.32                                                     3,013                                                        890,900                                                     0.16                                                           1,395
Short-term borrowings                                                                                                        98,922                                                     0.77                                                       761                                                        115,187                                                     0.29                                                             333
Long-term debt                                                                                                              246,195                                                     2.09                                                     5,157                                                        239,471                                                     1.60                                                           3,830
Other liabilities                                                                                         21,872                                  1.94                                                       424                                      16,702                                  2.12                                                             354
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
            Total interest-bearing liabilities                                                                            1,306,147                                                     0.72                                                     9,355                                                      1,262,260                                                     0.47                                                           5,912
Portion of noninterest-bearing funding sources                                                           467,094                        --                                            --                                     448,823                        --                                                  --
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                               ------------------------------------                      -------------------- --------------------                                                                               ----------------------
                  Total funding sources                                                   $            1,773,241                                  0.53                                  9,355                                   1,711,083                                  0.35                                        5,912
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      -------------- --------------------                      ------------------------------------                      -------------------- --------------------                      -------------- --------------------                      ----------------------
Net interest margin and net interest income on a                                                                                                                                        2.87                    %         $  50,878                                                                                                 2.86                    %            $     48,994
taxable-equivalent basis (5)
                                                                                                                                                                              -------------- -------------------- -------------------- ------- ------- --------------------                                                                                     -------------- -------------------- -------------------- ---------- ----------
Noninterest-earning assets
Cash and due from banks                                                                                      $               18,622                                                                                                                                                                            18,617
Goodwill                                                                                                                     26,629                                                                                                                                                                            26,700
Other                                                                                                    114,513                                                                                                                                                        129,041  
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                                                                                         -------------------- --------------------
                  Total noninterest-earning assets                                        $              159,764                                                                                                                                                        174,358  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                         -------------------- --------------------
Noninterest-bearing funding sources
Deposits                                                                                                     $              365,464                                                                                                                                                                           359,666
Other liabilities                                                                                                            55,740                                                                                                                                                                            62,825
Total equity                                                                                                                205,654                                                                                                                                                                           200,690
Noninterest-bearing funding sources used to fund earning assets                                         (467,094 )                                                                                                                                                                        (448,823 )
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------                                                                                                                                         -------------------- --------------------
                  Net noninterest-bearing funding sources                                 $              159,764                                                                                                                                                        174,358  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                         -------------------- --------------------
                    Total assets                                                          $            1,933,005                                                                                                                                                      1,885,441  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --------------------                                                                                                                                         -------------------- --------------------
                                                                                                                             
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------------------------------------------- --------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------------------------------- ----------------------
(1) Our average prime rate was 4.10% and 3.51% for the 2017 and
2016, respectively. The average three-month London Interbank Offered
Rate (LIBOR) was 1.26% and 0.74% for the same periods, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk
management activities associated with the respective asset and
liability categories.
(3) The average balance amounts represent amortized cost for the
periods presented.
(4) Nonaccrual loans and related income are included in their
respective loan categories.
(5) Includes taxable-equivalent adjustments of $1.3 billion and
$1.2 billion for the 2017 and 2016, respectively, predominantly
related to tax-exempt income on certain loans and securities. The
federal statutory tax rate was 35% for the periods presented.
                                                                      
Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID
(TAXABLE-EQUIVALENT BASIS) (1)(2)
                                                                                                                                                                                                                                                                                                                               Quarter ended
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 Dec 31, 2017                                                                                Sep 30, 2017                                                                                Jun 30, 2017                                                                                Mar 31, 2017                                                                                Dec 31, 2016
-------------------------------------------------------------------- -------------------- -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------
($ in billions)                                                                                 Average                               Yields/                            Average                               Yields/                            Average                               Yields/                            Average                               Yields/                            Average                               Yields/
                                                                                                                   balance                                                    rates                                               balance                                                    rates                                               balance                                                    rates                                               balance                                                    rates                                               balance                                                    rates
-------------------------------------------------------------------- -------------------- ------------------------------   -------------------- ----------------------------------  -------------------- ------------------------------   -------------------- ----------------------------------  -------------------- ------------------------------   -------------------- ----------------------------------  -------------------- ------------------------------   -------------------- ----------------------------------  -------------------- ------------------------------   -------------------- ----------------------------------
Earning assets                                                                                                                                                                                                                                                                                                                                                                                                                  
Federal funds sold, securities purchased under resale agreements and                        $   264.9                                                     1.25                    %                        $   276.1                                                     1.20                    %                        $   281.6                                                     0.99                    %                        $   283.8                                                     0.76                    %                        $   273.1                                                     0.56                    %
other short-term investments
Trading assets                                                                                  111.2                                                     3.01                                                 103.6                                                     2.96                                                  98.1                                                     2.95                                                  93.8                                                     2.80                                                 102.8                                                     2.96
Investment securities (3):
   Available-for-sale securities:
      Securities of U.S. Treasury and federal agencies                                            6.4                                                     1.66                                                  14.5                                                     1.31                                                  18.1                                                     1.53                                                  25.0                                                     1.54                                                  25.9                                                     1.53
      Securities of U.S. states and political subdivisions (4)                                   52.4                                                     3.91                                                  52.5                                                     4.08                                                  53.5                                                     3.89                                                  52.2                                                     3.93                                                  53.9                                                     4.06
      Mortgage-backed securities:
         Federal agencies                                                                       152.9                                                     2.62                                                 139.8                                                     2.58                                                 132.0                                                     2.63                                                 156.6                                                     2.58                                                 148.0                                                     2.37
         Residential and commercial (4)                                        9.4                                  4.85                                                  11.0                                  5.44                                                  12.6                                  5.55                                                  14.5                                  5.34                                                  16.5                                  5.87
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Total mortgage-backed securities                                                    162.3                                                     2.75                                                 150.8                                                     2.79                                                 144.6                                                     2.89                                                 171.1                                                     2.81                                                 164.5                                                     2.72
      Other debt and equity securities (4)                                    49.1                                  3.70                                                  48.1                                  3.74                                                  49.0                                  3.87                                                  50.7                                  3.61                                                  52.7                                  3.71
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
               Total available-for-sale securities (4)                       270.2                                  3.12                                                 265.9                                  3.14                                                 265.2                                  3.18                                                 299.0                                  3.04                                                 297.0                                  3.03
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
   Held-to-maturity securities:
      Securities of U.S. Treasury and federal agencies                                           44.7                                                     2.19                                                  44.7                                                     2.18                                                  44.7                                                     2.19                                                  44.7                                                     2.20                                                  44.7                                                     2.20
      Securities of U.S. states and political subdivisions                                        6.3                                                     5.26                                                   6.3                                                     5.44                                                   6.3                                                     5.29                                                   6.3                                                     5.30                                                   4.7                                                     5.31
      Federal agency and other mortgage-backed securities                                        89.6                                                     2.25                                                  88.3                                                     2.26                                                  83.1                                                     2.44                                                  51.8                                                     2.51                                                  46.0                                                     1.81
      Other debt securities                                                    1.2                                  2.64                                                   1.4                                  3.05                                                   2.8                                  2.34                                                   3.3                                  2.34                                                   3.6                                  2.26
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Total held-to-maturity securities                                141.8                                  2.36                                                 140.7                                  2.38                                                 136.9                                  2.49                                                 106.1                                  2.54                                                  99.0                                  2.17
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
               Total investment securities (4)                                                  412.0                                                     2.86                                                 406.6                                                     2.88                                                 402.1                                                     2.94                                                 405.1                                                     2.91                                                 396.0                                                     2.82
Mortgages held for sale (4)                                                                      20.5                                                     3.82                                                  22.9                                                     3.79                                                  19.8                                                     3.87                                                  19.9                                                     3.67                                                  27.5                                                     3.43
Loans held for sale                                                                               0.1                                                     8.14                                                   0.2                                                    13.35                                                   0.2                                                     6.95                                                   0.1                                                     4.44                                                   0.2                                                     5.42
Loans:
   Commercial:
      Commercial and industrial - U.S.                                                          270.3                                                     3.89                                                 270.1                                                     3.81                                                 273.1                                                     3.70                                                 274.8                                                     3.59                                                 272.8                                                     3.46
      Commercial and industrial - Non U.S. (4)                                                   59.2                                                     2.96                                                  57.7                                                     2.89                                                  56.4                                                     2.86                                                  55.3                                                     2.73                                                  54.4                                                     2.58
      Real estate mortgage                                                                      127.2                                                     3.88                                                 129.1                                                     3.83                                                 131.3                                                     3.68                                                 132.4                                                     3.56                                                 131.2                                                     3.44
      Real estate construction                                                                   24.4                                                     4.38                                                  25.0                                                     4.18                                                  25.3                                                     4.10                                                  24.6                                                     3.72                                                  23.9                                                     3.61
      Lease financing                                                         19.3                                  0.62                                                  19.2                                  4.59                                                  19.0                                  4.82                                                  19.1                                  4.94                                                  18.9                                  5.78
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
         Total commercial                                                    500.4                                  3.68                                                 501.1                                  3.76                                                 505.1                                  3.67                                                 506.2                                  3.54                                                 501.2                                  3.45
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
   Consumer:
      Real estate 1-4 family first mortgage                                                     282.0                                                     4.01                                                 278.4                                                     4.03                                                 275.1                                                     4.08                                                 275.5                                                     4.02                                                 277.7                                                     4.01
      Real estate 1-4 family junior lien mortgage                                                40.4                                                     4.96                                                  41.9                                                     4.95                                                  43.6                                                     4.78                                                  45.3                                                     4.60                                                  47.2                                                     4.42
      Credit card                                                                                36.4                                                    12.37                                                  35.6                                                    12.41                                                  34.9                                                    12.18                                                  35.4                                                    11.97                                                  35.4                                                    11.73
      Automobile                                                                                 54.3                                                     5.13                                                  56.7                                                     5.34                                                  59.1                                                     5.43                                                  61.5                                                     5.46                                                  62.5                                                     5.54
      Other revolving credit and installment                                  38.3                                  6.28                                                  38.6                                  6.31                                                  39.1                                  6.13                                                  39.7                                  6.02                                                  40.1                                  5.91
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
         Total consumer                                                      451.4                                  5.10                                                 451.2                                  5.14                                                 451.8                                  5.13                                                 457.4                                  5.06                                                 462.9                                  5.01
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Total loans                                                                         951.8                                                     4.35                                                 952.3                                                     4.41                                                 956.9                                                     4.36                                                 963.6                                                     4.26                                                 964.1                                                     4.20
Other                                                                         13.2                                  2.06                                                  15.1                                  1.69                                                  10.6                                  2.00                                                   6.8                                  2.96                                                   6.7                                  3.27
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
                  Total earning assets (4)                               $ 1,773.7                                  3.43                    %                        $ 1,776.8                                  3.44                    %                        $ 1,769.3                                  3.40                    %                        $ 1,773.1                                  3.30                    %                        $ 1,770.4                                  3.24                    %
-------------------------------------------------------------------- -------------------- --- ------- --------------------                                                                               --- ------- --------------------                                                                               --- ------- --------------------                                                                               --- ------- --------------------                                                                               --- ------- --------------------
Funding sources
Deposits:
   Interest-bearing checking                                                                $    50.5                                                     0.68                    %                        $    48.3                                                     0.57                    %                        $    48.5                                                     0.41                    %                        $    50.7                                                     0.29                    %                        $    46.9                                                     0.17                    %
   Market rate and other savings                                                                679.9                                                     0.19                                                 681.2                                                     0.17                                                 683.0                                                     0.13                                                 684.2                                                     0.09                                                 676.4                                                     0.07
   Savings certificates                                                                          20.9                                                     0.31                                                  21.8                                                     0.31                                                  22.6                                                     0.30                                                  23.5                                                     0.29                                                  24.4                                                     0.30
   Other time deposits (4)                                                                       68.2                                                     1.49                                                  66.1                                                     1.51                                                  57.1                                                     1.39                                                  54.9                                                     1.30                                                  49.2                                                     1.16
   Deposits in foreign offices                                               124.6                                  0.81                                                 124.7                                  0.76                                                 123.7                                  0.65                                                 122.2                                  0.49                                                 110.4                                  0.35
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
      Total interest-bearing deposits                                                           944.1                                                     0.39                                                 942.1                                                     0.37                                                 934.9                                                     0.29                                                 935.5                                                     0.23                                                 907.3                                                     0.18
Short-term borrowings                                                                           102.1                                                     0.99                                                  99.2                                                     0.91                                                  95.8                                                     0.69                                                  98.5                                                     0.47                                                 124.7                                                     0.33
Long-term debt (4)                                                                              231.6                                                     2.32                                                 243.5                                                     2.28                                                 249.9                                                     2.04                                                 260.1                                                     1.77                                                 252.2                                                     1.68
Other liabilities                                                             24.7                                  1.86                                                  24.8                                  1.74                                                  21.0                                  2.05                                                  16.8                                  2.22                                                  17.1                                  2.15
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
      Total interest-bearing liabilities (4)                                                  1,302.5                                                     0.81                                               1,309.6                                                     0.79                                               1,301.6                                                     0.68                                               1,310.9                                                     0.58                                               1,301.3                                                     0.51
Portion of noninterest-bearing funding sources (4)                           471.2                        --                                                 467.2                        --                                                 467.7                        --                                                 462.2                        --                                                 469.1                        --
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Total funding sources (4)                                    $ 1,773.7                                  0.59                          $ 1,776.8                                  0.58                          $ 1,769.3                                  0.50                          $ 1,773.1                                  0.43                          $ 1,770.4                                  0.37  
-------------------------------------------------------------------- -------------------- --- ------- --------------------                      -------------- --------------------                      --- ------- --------------------                      -------------- --------------------                      --- ------- --------------------                      -------------- --------------------                      --- ------- --------------------                      -------------- --------------------                      --- ------- --------------------                      -------------- --------------------
Net interest margin on a taxable-equivalent basis (4)                                                                                                     2.84                    %                                                                                      2.86                    %                                                                                      2.90                    %                                                                                      2.87                    %                                                                                      2.87                    %
                                                                                                                                                -------------- --------------------                                                                            -------------- --------------------                                                                            -------------- --------------------                                                                            -------------- --------------------                                                                            -------------- --------------------
Noninterest-earning assets
Cash and due from banks                                                                     $    19.2                                                                                                           18.5                                                                                                           18.2                                                                                                           18.7                                                                                                           19.0
Goodwill                                                                                         26.6                                                                                                           26.6                                                                                                           26.7                                                                                                           26.7                                                                                                           26.7
Other (4)                                                                    115.8                                                                                       116.6                                                                                       112.8                                                                                       112.5                                                                                       128.2  
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Total noninterest-earnings assets (4)                        $   161.6                                                                                       161.7                                                                                       157.7                                                                                       157.9                                                                                       173.9  
-------------------------------------------------------------------- -------------------- --- ------- --------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
Noninterest-bearing funding sources
Deposits                                                                                    $   367.5                                                                                                          364.3                                                                                                          366.3                                                                                                          363.7                                                                                                          376.9
Other liabilities (4)                                                                            57.8                                                                                                           56.8                                                                                                           53.4                                                                                                           54.8                                                                                                           64.9
Total equity (4)                                                                                207.4                                                                                                          207.7                                                                                                          205.8                                                                                                          201.6                                                                                                          201.2
Noninterest-bearing funding sources used to fund earning assets (4)         (471.1 )                                                                                                       (467.1 )                                                                                                       (467.8 )                                                                                                       (462.2 )                                                                                                       (469.1 )
-------------------------------------------------------------------- -------------------- --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
            Net noninterest-bearing funding sources (4)                  $   161.6                                                                                       161.7                                                                                       157.7                                                                                       157.9                                                                                       173.9  
-------------------------------------------------------------------- -------------------- --- ------- --------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
               Total assets (4)                                          $ 1,935.3                                                                                     1,938.5                                                                                     1,927.0                                                                                     1,931.0                                                                                     1,944.3  
-------------------------------------------------------------------- -------------------- --- ------- --------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------                                                                               --------------------------------
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Our average prime rate was 4.30% for the quarter ended
December 31, 2017, 4.25% for the quarter ended September 30, 2017,
4.05% for the quarter ended June 30, 2017, 3.80% for the quarter
ended March 31, 2017 and 3.54% for the quarter ended December 31,
2016. The average three-month London Interbank Offered Rate
(LIBOR) was 1.46%, 1.31%, 1.21%, 1.07% and 0.92% for the same
quarters, respectively.
(2) Yields/rates include the effects of hedge and risk management
activities associated with the respective asset and liability
categories.
(3) Yields and rates are based on interest income/expense amounts
for the period, annualized based on the accrual basis for the
respective accounts. The average balance amounts represent
amortized cost for the periods presented.
(4) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
                                                                                                                                                                                                                                                                        
Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                      Quarter ended December 31,                                                        %                                                                               Year ended December 31,                            %
                                                                                 --------------------------------------------------------------------------------                                                                              ---------------------------------------------------------------------------------
(in millions)                                                                            2017                         2016                                Change                              2017                          2016    Change
----------------------------------------------------------- -------------------- ---------------------------------------------------- ----------------------------------------------- -------------------------------------------------------- ---------------------------------------------------- ------------------------------------------------ --------
Service charges on deposit accounts                                                 $ 1,246                        1,357                                                       (8 )%                                          $  5,111                         5,372                                            (5 )%
Trust and investment fees:
    Brokerage advisory, commissions and other fees                                    2,401                                           2,342                                                        3                                                9,358                                            9,216                                             2
    Trust and investment management                                                     866                                             837                                                        3                                                3,372                                            3,336                                             1
    Investment banking                                               420       519                                   (19 )                                              1,765      1,691                          4
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
        Total trust and investment fees                            3,687     3,698                        --                                               14,495     14,243                          2
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
Card fees                                                                               996                                           1,001                                           --                                                3,960                                            3,936                                             1
Other fees:
    Charges and fees on loans                                                           313                                             305                                                        3                                                1,263                                            1,241                                             2
    Cash network fees                                                                   120                                             130                                                       (8 )                                                506                                              537                                            (6 )
    Commercial real estate brokerage commissions                                        159                                             172                                                       (8 )                                                462                                              494                                            (6 )
    Letters of credit fees                                                               78                                              79                                                       (1 )                                                305                                              321                                            (5 )
    Wire transfer and other remittance fees                                             115                                             105                                                       10                                                  448                                              401                                            12
    All other fees                                                   128       171                                   (25 )                                                573        733                        (22 )
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
        Total other fees                                             913       962                                    (5 )                                              3,557      3,727                         (5 )
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
Mortgage banking:
    Servicing income, net                                                               262                                             196                                                       34                                                1,427                                            1,765                                           (19 )
    Net gains on mortgage loan origination/sales activities          666     1,221                                   (45 )                                              2,923      4,331                        (33 )
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
        Total mortgage banking                                       928     1,417                                   (35 )                                              4,350      6,096                        (29 )
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
Insurance                                                                               223                                             262                                                      (15 )                                              1,049                                            1,268                                           (17 )
Net gains (losses) from trading activities                                              132                                            (109 )                                                                          NM                           1,053                                              834                                            26
Net gains on debt securities                                                            157                                             145                                                        8                                                  479                                              942                                           (49 )
Net gains from equity investments                                                       439                                             306                                                       43                                                1,268                                              879                                            44
Lease income                                                                            458                                             523                                                      (12 )                                              1,907                                            1,927                                            (1 )
Life insurance investment income                                                        153                                             132                                                       16                                                  594                                              587                                             1
All other                                                            405      (514 )                                                                          NM                           1,009        702                         44
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- --------------------                                                                               ------------------------------- -------------------- ------ --------------------
            Total                                                $ 9,737     9,180                  6       $ 38,832     40,513      (4 )
----------------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ----- -------------------- -------------------- -------------- -------------------- -------------------- --- ------ -------------------- -------------------- ------ -------------------- -------------------- --- ---
NM - Not meaningful
 
NONINTEREST EXPENSE
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Quarter ended December 31,                          %                                                            Year ended December 31,                                     %
                                                           ----------------------------------------------------------------------------------                                                                   ---------------------------------------------------------------------------------
(in millions)                                                       2017                          2016                     Change                              2017                          2016                                Change
------------------------------------- -------------------- ----------------------------------------------------- ------------------------------------------------ --------------------------------------------- ---------------------------------------------------- ------------------------------------------------ ------------------------------------
Salaries                                                      $  4,403                         4,193                                             5                    %                        $ 17,363                        16,552                                                        5                    %
Commission and incentive compensation                            2,665                                            2,478                                             8                                               10,442                                           10,247                                                        2
Employee benefits                                                1,293                                            1,101                                            17                                                5,566                                            5,094                                                        9
Equipment                                                          608                                              642                                            (5 )                                              2,237                                            2,154                                                        4
Net occupancy                                                      715                                              710                                             1                                                2,849                                            2,855                                           --
Core deposit and other intangibles                                 288                                              301                                            (4 )                                              1,152                                            1,192                                                       (3 )
FDIC and other deposit assessments                                 312                                              353                                           (12 )                                              1,287                                            1,168                                                       10
Operating losses                                                 3,531                                              243                                                                 NM                           5,492                                            1,608                                                      242
Outside professional services                                    1,025                                              984                                             4                                                3,813                                            3,138                                                       22
Contract services                                                  344                                              325                                             6                                                1,369                                            1,203                                                       14
Operating leases                                                   325                                              379                                           (14 )                                              1,351                                            1,329                                                        2
Outside data processing                                            208                                              222                                            (6 )                                                891                                              888                                           --
Travel and entertainment                                           183                                              195                                            (6 )                                                687                                              704                                                       (2 )
Advertising and promotion                                          200                                              178                                            12                                                  614                                              595                                                        3
Postage, stationery and supplies                                   137                                              156                                           (12 )                                                544                                              622                                                      (13 )
Telecommunications                                                  92                                               96                                            (4 )                                                364                                              383                                                       (5 )
Foreclosed assets                                                   47                                               75                                           (37 )                                                251                                              202                                                       24
Insurance                                                           28                                               23                                            22                                                  100                                              179                                                      (44 )
All other                                       396        561                        (29 )                                              2,112      2,264                                    (7 )
------------------------------------- -------------------- -------------------------------- -------------------- ------ --------------------                                                                    ------------------------------- -------------------- ------ --------------------
    Total                                  $ 16,800     13,215      27       $ 58,484     52,377                 12  
------------------------------------- -------------------- ---- ------ -------------------- -------------------- ------ -------------------- -------------------- --- -------------------- -------------------- --- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- --------------------
NM - Not meaningful
                                                             
Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                   Quarter ended
                                                                                 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                         Dec 31,                      Sep 30,                      Jun 30,                      Mar 31,                      Dec 31,
                                                                                                            2017                                            2017                                            2017                                            2017                                            2016
----------------------------------------------------------- -------------------- -----------------------------   -------------------- -------------------------  -------------------- -------------------------  -------------------- -------------------------  -------------------- -------------------------
Service charges on deposit accounts                                                 $ 1,246                        1,276                        1,276                        1,313                        1,357
Trust and investment fees:
    Brokerage advisory, commissions and other fees                                    2,401                                           2,304                                           2,329                                           2,324                                           2,342
    Trust and investment management                                                     866                                             840                                             837                                             829                                             837
    Investment banking                                               420       465       463       417       519  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
        Total trust and investment fees                            3,687     3,609     3,629     3,570     3,698  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
Card fees                                                                               996                                           1,000                                           1,019                                             945                                           1,001
Other fees:
    Charges and fees on loans                                                           313                                             318                                             325                                             307                                             305
    Cash network fees                                                                   120                                             126                                             134                                             126                                             130
    Commercial real estate brokerage commissions                                        159                                             120                                             102                                              81                                             172
    Letters of credit fees                                                               78                                              77                                              76                                              74                                              79
    Wire transfer and other remittance fees                                             115                                             114                                             112                                             107                                             105
    All other fees                                                   128       122       153       170       171  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
        Total other fees                                             913       877       902       865       962  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
Mortgage banking:
    Servicing income, net                                                               262                                             309                                             400                                             456                                             196
    Net gains on mortgage loan origination/sales activities          666       737       748       772     1,221  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
        Total mortgage banking                                       928     1,046     1,148     1,228     1,417  
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
Insurance                                                                               223                                             269                                             280                                             277                                             262
Net gains (losses) from trading activities                                              132                                             245                                             237                                             439                                            (109 )
Net gains on debt securities                                                            157                                             166                                             120                                              36                                             145
Net gains from equity investments                                                       439                                             238                                             188                                             403                                             306
Lease income                                                                            458                                             475                                             493                                             481                                             523
Life insurance investment income                                                        153                                             152                                             145                                             144                                             132
All other (1)                                                        405        47       327       230      (514 )
----------------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
            Total                                                $ 9,737     9,400     9,764     9,931     9,180  
----------------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- --------------------
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
                                       
FIVE QUARTER NONINTEREST EXPENSE
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                            Quarter ended
                                                           ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                  Dec 31,                       Sep 30,                       Jun 30,                       Mar 31,   Dec 31,
                                                                                     2017                                             2017                                             2017                                             2017                         2016
------------------------------------- -------------------- ----------------------------   -------------------- --------------------------  -------------------- --------------------------  -------------------- --------------------------  -------------------- -------
Salaries                                                    $  4,403                         4,356                         4,343                         4,261                          4,193
Commission and incentive compensation                          2,665                                            2,553                                            2,499                                            2,725                                             2,478
Employee benefits                                              1,293                                            1,279                                            1,308                                            1,686                                             1,101
Equipment                                                        608                                              523                                              529                                              577                                               642
Net occupancy                                                    715                                              716                                              706                                              712                                               710
Core deposit and other intangibles                               288                                              288                                              287                                              289                                               301
FDIC and other deposit assessments                               312                                              314                                              328                                              333                                               353
Operating losses                                               3,531                                            1,329                                              350                                              282                                               243
Outside professional services                                  1,025                                              955                                            1,029                                              804                                               984
Contract services                                                344                                              351                                              349                                              325                                               325
Operating leases                                                 325                                              347                                              334                                              345                                               379
Outside data processing                                          208                                              227                                              236                                              220                                               222
Travel and entertainment                                         183                                              154                                              171                                              179                                               195
Advertising and promotion                                        200                                              137                                              150                                              127                                               178
Postage, stationery and supplies                                 137                                              128                                              134                                              145                                               156
Telecommunications                                                92                                               90                                               91                                               91                                                96
Foreclosed assets                                                 47                                               66                                               52                                               86                                                75
Insurance                                                         28                                               24                                               24                                               24                                                23
All other                                     396        514        621        581         561
------------------------------------- -------------------- ------------------------------ -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------
    Total                                $ 16,800     14,351     13,541     13,792      13,215
------------------------------------- -------------------- -- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------
                                                                                                                                                           
Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except shares)                                                                                     Dec 31,                          Dec 31,                                     %
                                                                                                                                       2017                                                2016                                                   Change
---------------------------------------------------------------------------------- -------------------- ---------------------------------   -------------------- -----------------------------  -------------------- ----------------------------------
Assets
Cash and due from banks                                                                                    $    23,367                                              20,729                                                       13                    %
Federal funds sold, securities purchased under resale agreements and                                           272,605                                             266,038                                                        2
other short-term investments
Trading assets                                                                                                  92,329                                              74,397                                                       24
Investment securities:
    Available-for-sale, at fair value                                                                          277,085                                             308,364                                                      (10 )
    Held-to-maturity, at cost                                                                                  139,335                                              99,583                                                       40
Mortgages held for sale                                                                                         20,070                                              26,309                                                      (24 )
Loans held for sale                                                                                                108                                                  80                                                       35
Loans                                                                                                          956,770                                             967,604                                                       (1 )
Allowance for loan losses                                                                   (11,004 )                        (11,419 )                                                     (4 )
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
     Net loans                                                                              945,766       956,185                                    (1 )
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
Mortgage servicing rights:
    Measured at fair value                                                                                      13,625                                              12,959                                                        5
    Amortized                                                                                                    1,424                                               1,406                                                        1
Premises and equipment, net                                                                                      8,847                                               8,333                                                        6
Goodwill                                                                                                        26,587                                              26,693                                           --
Derivative assets                                                                                               12,228                                              14,498                                                      (16 )
Other assets                                                                                118,381       114,541                                     3
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
            Total assets                                                                $ 1,951,757     1,930,115                                     1
---------------------------------------------------------------------------------- -------------------- ---- --------- -------------------- -------------------- --------- --------------------
Liabilities
Noninterest-bearing deposits                                                                               $   373,722                                             375,967                                                       (1 )
Interest-bearing deposits                                                                   962,269       930,112                                     3
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
    Total deposits                                                                                           1,335,991                                           1,306,079                                                        2
Short-term borrowings                                                                                          103,256                                              96,781                                                        7
Derivative liabilities                                                                                           8,796                                              14,492                                                      (39 )
Accrued expenses and other liabilities                                                                          70,615                                              57,189                                                       23
Long-term debt                                                                              225,020       255,077                (12 )
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- --------------------
           Total liabilities                                                              1,743,678     1,729,618                  1
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- --------------------
Equity
Wells Fargo stockholders’ equity:
    Preferred stock                                                                                             25,358                                              24,551                                                        3
    Common stock - $1-2/3 par value, authorized 9,000,000,000 shares;                               9,136                                               9,136                                           --
    issued 5,481,811,474 shares
    Additional paid-in capital                                                                                  60,893                                              60,234                                                        1
    Retained earnings                                                                                          145,263                                             133,075                                                        9
    Cumulative other comprehensive income (loss)                                                                (2,144 )                                            (3,137 )                                                    (32 )
    Treasury stock - 590,194,846 shares and 465,702,148 shares                                    (29,892 )                                           (22,713 )                                                     32
    Unearned ESOP shares                                                                     (1,678 )                         (1,565 )                                                      7
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
            Total Wells Fargo stockholders’ equity                                  206,936                                             199,581                                                        4
Noncontrolling interests                                                                      1,143           916                                    25
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
                 Total equity                                                               208,079       200,497                                     4
---------------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- --------------------
                    Total liabilities and equity                                        $ 1,951,757     1,930,115                  1  
---------------------------------------------------------------------------------- -------------------- ---- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                        
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                               Dec 31,                          Sep 30,                          Jun 30,                          Mar 31,                          Dec 31,
                                                                                                                                  2017                                                2017                                                2017                                                2017                                                2016
----------------------------------------------------------------------------- -------------------- ---------------------------------   -------------------- -----------------------------  -------------------- -----------------------------  -------------------- -----------------------------  -------------------- -----------------------------
Assets
Cash and due from banks                                                                               $    23,367                                              19,206                                              20,248                                              19,698                                              20,729
Federal funds sold, securities purchased under resale agreements and                                      272,605                                             273,105                                             264,706                                             308,747                                             266,038
other short-term investments
Trading assets                                                                                             92,329                                              88,404                                              83,607                                              80,326                                              74,397
Investment securities:
    Available-for-sale, at fair value                                                                     277,085                                             272,210                                             269,202                                             299,530                                             308,364
    Held-to-maturity, at cost                                                                             139,335                                             142,423                                             140,392                                             108,030                                              99,583
Mortgages held for sale                                                                                    20,070                                              20,009                                              24,807                                              17,822                                              26,309
Loans held for sale                                                                                           108                                                 157                                                 156                                                 253                                                  80
Loans                                                                                                     956,770                                             951,873                                             957,423                                             958,405                                             967,604
Allowance for loan losses                                                              (11,004 )                        (11,078 )                        (11,073 )                        (11,168 )                        (11,419 )
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
    Net loans                                                                          945,766       940,795       946,350       947,237       956,185  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Mortgage servicing rights:
    Measured at fair value                                                                                 13,625                                              13,338                                              12,789                                              13,208                                              12,959
    Amortized                                                                                               1,424                                               1,406                                               1,399                                               1,402                                               1,406
Premises and equipment, net                                                                                 8,847                                               8,449                                               8,403                                               8,320                                               8,333
Goodwill                                                                                                   26,587                                              26,581                                              26,573                                              26,666                                              26,693
Derivative assets                                                                                          12,228                                              12,580                                              13,273                                              12,564                                              14,498
Other assets (1)                                                                       118,381       116,217       118,887       107,698       114,541  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
                Total assets (1)                                                   $ 1,951,757     1,934,880     1,930,792     1,951,501     1,930,115  
----------------------------------------------------------------------------- -------------------- ---- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Liabilities
Noninterest-bearing deposits                                                                          $   373,722                                             366,528                                             372,766                                             365,780                                             375,967
Interest-bearing deposits                                                              962,269       940,178       933,064       959,664       930,112  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
    Total deposits                                                                                      1,335,991                                           1,306,706                                           1,305,830                                           1,325,444                                           1,306,079
Short-term borrowings                                                                                     103,256                                              93,811                                              95,356                                              94,871                                              96,781
Derivative liabilities                                                                                      8,796                                               9,497                                              11,636                                              12,461                                              14,492
Accrued expenses and other liabilities (1)                                                                 70,615                                              78,993                                              72,799                                              59,629                                              57,189
Long-term debt (1)                                                                     225,020       239,256       239,222       256,786       255,077  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
        Total liabilities (1)                                                        1,743,678     1,728,263     1,724,843     1,749,191     1,729,618  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Equity
Wells Fargo stockholders’ equity:
    Preferred stock                                                                                        25,358                                              25,576                                              25,785                                              25,501                                              24,551
    Common stock                                                                                            9,136                                               9,136                                               9,136                                               9,136                                               9,136
    Additional paid-in capital                                                                             60,893                                              60,759                                              60,689                                              60,585                                              60,234
    Retained earnings (1)                                                                                 145,263                                             141,549                                             139,366                                             135,828                                             133,075
    Cumulative other comprehensive income (loss) (1)                                                       (2,144 )                                            (1,622 )                                            (2,148 )                                            (3,153 )                                            (3,137 )
    Treasury stock                                                                                        (29,892 )                                           (27,772 )                                           (25,675 )                                           (24,030 )                                           (22,713 )
    Unearned ESOP shares                                                                (1,678 )                         (1,904 )                         (2,119 )                         (2,546 )                         (1,565 )
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
        Total Wells Fargo stockholders’ equity (1)                             206,936                                             205,722                                             205,034                                             201,321                                             199,581
Noncontrolling interests                                                                 1,143           895           915           989           916  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
            Total equity (1)                                                           208,079       206,617       205,949       202,310       200,497  
----------------------------------------------------------------------------- -------------------- ----------------------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
                Total liabilities and equity (1)                                   $ 1,951,757     1,934,880     1,930,792     1,951,501     1,930,115  
----------------------------------------------------------------------------- -------------------- ---- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
(1) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
                                                                                                                                                                                             
Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                          Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,   Dec 31,
                                                                                                             2017                                              2017                                              2017                                              2017                         2016
----------------------------------------------------------- -------------------- ------------------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- -------
Available-for-sale securities:
    Securities of U.S. Treasury and federal agencies                               $   6,319                                             6,350                                            17,896                                            24,625                                            25,819
    Securities of U.S. states and political subdivisions                              51,326                                            52,774                                            52,013                                            52,061                                            51,101
    Mortgage-backed securities:
        Federal agencies                                                             160,219                                           150,181                                           135,938                                           156,966                                           161,230
        Residential and commercial                                  9,173      11,046      12,772      14,233      16,318
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
            Total mortgage-backed securities                                         169,392                                           161,227                                           148,710                                           171,199                                           177,548
    Other debt securities                                          49,370      50,966      49,555      50,520      52,685
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
                Total available-for-sale debt securities                             276,407                                           271,317                                           268,174                                           298,405                                           307,153
    Marketable equity securities                                      678         893       1,028       1,125       1,211
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
                  Total available-for-sale securities             277,085     272,210     269,202     299,530     308,364
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
Held-to-maturity securities:
    Securities of U.S. Treasury and federal agencies                                  44,720                                            44,712                                            44,704                                            44,697                                            44,690
    Securities of U.S. states and political subdivisions                               6,313                                             6,321                                             6,325                                             6,331                                             6,336
    Federal agency and other mortgage-backed securities (1)                           87,527                                            90,071                                            87,525                                            53,778                                            45,161
    Other debt securities                                             775       1,319       1,838       3,224       3,396
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
                  Total held-to-maturity debt securities          139,335     142,423     140,392     108,030      99,583
----------------------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
                    Total investment securities                 $ 416,420     414,633     409,594     407,560     407,947
----------------------------------------------------------- -------------------- --- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
(1) Predominantly consists of federal agency mortgage-backed
securities.
                                                                                                                                                                                 
FIVE QUARTER LOANS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                              Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,   Dec 31,
                                                                                                 2017                                              2017                                              2017                                              2017                         2016
----------------------------------------------- -------------------- ------------------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- -------
Commercial:
    Commercial and industrial                                          $ 333,125                                           327,944                                           331,113                                           329,252                                           330,840
    Real estate mortgage                                                 126,599                                           128,475                                           130,277                                           131,532                                           132,491
    Real estate construction                                              24,279                                            24,520                                            25,337                                            25,064                                            23,916
    Lease financing                                    19,385      19,211      19,174      19,156      19,289
----------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
        Total commercial                              503,388     500,150     505,901     505,004     506,536
----------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
Consumer:
    Real estate 1-4 family first mortgage                                284,054                                           280,173                                           276,566                                           274,633                                           275,579
    Real estate 1-4 family junior lien mortgage                           39,713                                            41,152                                            42,747                                            44,333                                            46,237
    Credit card                                                           37,976                                            36,249                                            35,305                                            34,742                                            36,700
    Automobile                                                            53,371                                            55,455                                            57,958                                            60,408                                            62,286
    Other revolving credit and installment             38,268      38,694      38,946      39,285      40,266
----------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
        Total consumer                                453,382     451,723     451,522     453,401     461,068
----------------------------------------------- -------------------- -------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
            Total loans (1)                         $ 956,770     951,873     957,423     958,405     967,604
----------------------------------------------- -------------------- --- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- -------
(1) Includes $12.8 billion, $13.6 billion, $14.3 billion, $15.7
billion, and $16.7 billion of purchased credit-impaired (PCI)
loans at December 31, September 30, June 30, and March 31, 2017
and December 31, 2016, respectively.
 
Our foreign loans are reported by respective class of financing
receivable in the table above. Substantially all of our foreign
loan portfolio is commercial loans. Loans are classified as
foreign primarily based on whether the borrower’s primary address
is outside of the United States. The following table presents
total commercial foreign loans outstanding by class of financing
receivable.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                     Dec 31,                       Sep 30,                       Jun 30,                       Mar 31,   Dec 31,
                                                                                        2017                                             2017                                             2017                                             2017                         2016
-------------------------------------- -------------------- ------------------------------   -------------------- --------------------------  -------------------- --------------------------  -------------------- --------------------------  -------------------- -------
Commercial foreign loans:                                                                                                                                            
    Commercial and industrial                                  $ 60,106                                           58,570                                           57,825                                           56,987                                            55,396
    Real estate mortgage                                          8,033                                            8,032                                            8,359                                            8,206                                             8,541
    Real estate construction                                        655                                              647                                              585                                              471                                               375
    Lease financing                            1,126      1,141      1,092        986         972
-------------------------------------- -------------------- -------------------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------
        Total commercial foreign loans      $ 69,920     68,390     67,861     66,650      65,284
-------------------------------------- -------------------- ---- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------
                                                                                                                                                                               
Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND
FORECLOSED ASSETS)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                 Dec 31,                      Sep 30,                      Jun 30,                       Mar 31,   Dec 31,
                                                                                                    2017                                            2017                                            2017                                             2017                         2016
--------------------------------------------------- -------------------- -----------------------------   -------------------- -------------------------  -------------------- -------------------------  -------------------- --------------------------  -------------------- -------
Nonaccrual loans:
    Commercial:
        Commercial and industrial                                           $ 1,899                                           2,397                                           2,632                                            2,898                                             3,216
        Real estate mortgage                                                    628                                             593                                             630                                              672                                               685
        Real estate construction                                                 37                                              38                                              34                                               40                                                43
        Lease financing                                       76        81        89         96         115
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
            Total commercial                               2,640     3,109     3,385      3,706       4,059
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
    Consumer:
        Real estate 1-4 family first mortgage                                 4,122                                           4,213                                           4,413                                            4,743                                             4,962
        Real estate 1-4 family junior lien mortgage                           1,086                                           1,101                                           1,095                                            1,153                                             1,206
        Automobile                                                              130                                             137                                             104                                              101                                               106
        Other revolving credit and installment                58        59        59         56          51
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
            Total consumer                                 5,396     5,510     5,671      6,053       6,325
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
                Total nonaccrual loans (1)(2)(3)         $ 8,036     8,619     9,056      9,759      10,384
--------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
                As a percentage of total loans                                 0.84                    %                       0.91                                            0.95                                             1.02                                              1.07
Foreclosed assets:
    Government insured/guaranteed                                           $   120                                             137                                             149                                              179                                               197
    Non-government insured/guaranteed                        522       569       632        726         781
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
            Total foreclosed assets                          642       706       781        905         978
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
                    Total nonperforming assets           $ 8,678     9,325     9,837     10,664      11,362
--------------------------------------------------- -------------------- ---- ----- -------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
                    As a percentage of total loans          0.91                    %    0.98      1.03       1.11        1.17
--------------------------------------------------- -------------------- ------------------------------- -------------------- ----- -------------------- -------------------- ----- -------------------- -------------------- ------ -------------------- -------------------- -------
(1) Includes nonaccrual mortgages held for sale and loans held for
sale in their respective loan categories.
(2) Excludes PCI loans because they continue to earn interest
income from accretable yield, independent of performance in
accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by
the Federal Housing Administration (FHA) or guaranteed by the
Department of Veterans Affairs (VA) and student loans largely
guaranteed by agencies on behalf of the U.S. Department of
Education under the Federal Family Education Loan Program are not
placed on nonaccrual status because they are insured or
guaranteed. All remaining student loans guaranteed under the FFELP
were sold as of March 31, 2017.
                                                                                                                                                                                                                   
Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                           Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,          Dec 31,
                                                                                                              2017                                                     2017                                                     2017                                                     2017                                2016
-------------------------------------------------------- -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- --------------
Total (excluding PCI)(1):                                                           $  11,997                                                   10,227                                                    9,716                                                   10,525                                                   11,858
    Less: FHA insured/guaranteed by the VA (2)(3)                                      10,934                                                    9,266                                                    8,873                                                    9,585                                                   10,883
    Less: Student loans guaranteed under the FFELP (4)      --     --     --     --                  3
-------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
                Total, not government insured/guaranteed         $   1,063                961                843                940                972
-------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
By segment and class, not government insured/guaranteed:
    Commercial:
        Commercial and industrial                                                   $      26                                                       27                                                       42                                                       88                                                       28
        Real estate mortgage                                                               23                                                       11                                                        2                                                       11                                                       36
        Real estate construction                            --     --                 10                  3     --
-------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
            Total commercial                                            49                 38                 54                102                 64
-------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
    Consumer:
        Real estate 1-4 family first mortgage (3)                                         219                                                      190                                                      145                                                      149                                                      175
        Real estate 1-4 family junior lien mortgage (3)                                    60                                                       49                                                       44                                                       42                                                       56
        Credit card                                                                       492                                                      475                                                      411                                                      453                                                      452
        Automobile                                                                        143                                                      111                                                       91                                                       79                                                      112
        Other revolving credit and installment                         100                 98                 98                115                113
-------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
            Total consumer                                           1,014                923                789                838                908
-------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
                Total, not government insured/guaranteed         $   1,063                961                843                940                972
-------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
(1) PCI loans totaled $1.4 billion, $1.4 billion, $1.5 billion,
$1.8 billion and $2.0 billion, at December 31, September 30, June
30, and March 31, 2017 and December 31, 2016, respectively.
(2) Represents loans whose repayments are predominantly insured by
the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and
still accruing.
(4) Represents loans whose repayments are largely guaranteed by
agencies on behalf of the U.S. Department of Education under the
FFELP. All remaining student loans guaranteed under the FFELP were
sold as of March 31, 2017.
 
Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED
CREDIT-IMPAIRED (PCI) LOANS
 
Loans purchased with evidence of credit deterioration since
origination and for which it is probable that all contractually
required payments will not be collected are considered to be
credit impaired. PCI loans predominantly represent loans acquired
from Wachovia that were deemed to be credit impaired. Evidence of
credit quality deterioration as of the purchase date may include
statistics such as past due and nonaccrual status, recent borrower
credit scores and recent LTV percentages. PCI loans are initially
measured at fair value, which includes estimated future credit
losses expected to be incurred over the life of the loan.
Accordingly, the associated allowance for credit losses related to
these loans is not carried over at the acquisition date.
 
As a result of PCI loan accounting, certain credit-related ratios
cannot be used to compare a portfolio that includes PCI loans
against one that does not, or to compare ratios across quarters or
years. The ratios particularly affected include the allowance for
loan losses and allowance for credit losses as percentages of
loans, of nonaccrual loans and of nonperforming assets; nonaccrual
loans and nonperforming assets as a percentage of total loans; and
net charge-offs as a percentage of loans.
 
The excess of cash flows expected to be collected over the
carrying value of PCI loans is referred to as the accretable yield
and is accreted into interest income over the estimated lives of
the PCI loans using the effective yield method. The accretable
yield is affected by:
--
Changes in interest rate indices for variable rate PCI loans -
Expected future cash flows are based on the variable rates in
effect at the time of the quarterly assessment of expected cash
flows;
--
Changes in prepayment assumptions - Prepayments affect the
estimated life of PCI loans which may change the amount of
interest income, and possibly principal, expected to be
collected; and
--
Changes in the expected principal and interest payments over the
estimated life - Updates to changes in expected cash flows are
driven by the credit outlook and actions taken with borrowers.
Changes in expected future cash flows from loan modifications
are included in the regular evaluations of cash flows expected
to be collected.
The change in the accretable yield related to PCI loans since the
merger with Wachovia is presented in the following table.
                                                                                       
------------------------------------------------------------------- -------------------- --------------------------------------------------------- ---------------------------------------------------- --------------------------------
(in millions)                                                                                      Quarter                        Year ended                         2009-2016
                                                                                                                        ended                                              Dec 31,
                                                                                                                      Dec 31,                                                 2017
                                                                                                                         2017
------------------------------------------------------------------- -------------------- ----------------------------------   -------------------- ------------------------------  -------------------- ------------------------------
Balance, beginning of period                                                $   9,243                            11,216                            10,447
    Change in accretable yield due to acquisitions                                        --                                                    2                                                  159
    Accretion into interest income (1)                                                              (335 )                                             (1,406 )                                            (15,577 )
    Accretion into noninterest income due to sales (2)                                    --                                                 (334 )                                               (467 )
    Reclassification from nonaccretable difference for loans with                                      2                                                  642                                               10,955
    improving credit-related cash flows (3)
    Changes in expected cash flows that do not affect nonaccretable               (23 )                          (1,233 )                           5,699  
    difference (4)
------------------------------------------------------------------- -------------------- --------------  -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Balance, end of period                                                      $   8,887          8,887         11,216  
------------------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
(1) Includes accretable yield released as a result of settlements
with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to
third parties, which is included in noninterest income.
(3) At December 31, 2017, our carrying value for PCI loans totaled
$12.8 billion and the remainder of nonaccretable difference
established in purchase accounting totaled $474 million. The
nonaccretable difference absorbs losses of contractual amounts
that exceed our carrying value for PCI loans.
(4) Represents changes in cash flows expected to be collected due
to the impact of modifications, changes in prepayment assumptions,
changes in interest rates on variable rate PCI loans and sales to
third parties.
 
Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                              December 31, 2017
                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                 PCI loans                                                                                                                 All other loans
                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                  Adjusted                                     Current                                                         Carrying                                    Ratio of                                                         Carrying                                    Ratio of
                                                                                                    unpaid                                                            LTV                                                                           value (4)                                                       carrying                                                                           value (4)                                                       carrying
                                                                                                 principal                                                      ratio (3)                                                                                                                                           value to                                                                                                                                           value to
                                                                                               balance (2)                                                                                                                                                                                                           current                                                                                                                                            current
                                                                                                                                                                                                                                                                                                                   value (5)                                                                                                                                          value (5)
---------------------- -------------------- ------------------------------------------------------------   -------------------- ----------------------------------------  -------------------- ------------------------------------------------------------   -------------------- ----------------------------------------  -------------------- ------------------------------------------------------------   -------------------- ----------------------------------------
California                                                     $               11,286                                          60 %                                         $                8,632                                          45 %                                                            $                6,365                                          43 %
Florida                                                                         1,436                                                             67                                                                               1,065                                                             49                                                                               1,372                                                             53
New Jersey                                                                        565                                                             74                                                                                 410                                                             53                                                                                 909                                                             61
New York                                                                          434                                                             67                                                                                 348                                                             50                                                                                 458                                                             57
Texas                                                                             130                                                             48                                                                                  98                                                             36                                                                                 545                                                             37
Other states                                                 2,818                                          67                                                                               2,086                                          49                                                                               3,750                                          54
---------------------- -------------------- --------------------------------------------------------------                                                                                     --------------------------------------------------------------                                                                                     --------------------------------------------------------------
Total Pick-a-Pay loans                      $               16,669                                          62                                                              $               12,639                                          46                                                              $               13,399                                          48
---------------------- -------------------- -------------------- -------------------- --------------------                                                                                     -------------------- -------------------- --------------------                                                                                     -------------------- -------------------- --------------------
                                             
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(1) The individual states shown in this table represent the top
five states based on the total net carrying value of the
Pick-a-Pay loans at the beginning of 2017.
(2) Adjusted unpaid principal balance includes write-downs taken
on loans where severe delinquency (normally 180 days) or other
indications of severe borrower financial stress exist that
indicate there will be a loss of contractually due amounts upon
final resolution of the loan.
(3) The current LTV ratio is calculated as the adjusted unpaid
principal balance divided by the collateral value. Collateral
values are generally determined using automated valuation models
(AVM) and are updated quarterly. AVMs are computer-based tools
used to estimate market values of homes based on processing large
volumes of market data including market comparables and price
trends for local market areas.
(4) Carrying value, which does not reflect the allowance for loan
losses, includes remaining purchase accounting adjustments, which,
for PCI loans may include the nonaccretable difference and the
accretable yield and, for all other loans, an adjustment to mark
the loans to a market yield at date of merger less any subsequent
charge-offs.
(5) The ratio of carrying value to current value is calculated as
the carrying value divided by the collateral value.
                                                                                                                                                                    
Wells Fargo & Company and Subsidiaries                                                                                                                                                                                                                   
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------             --------------------
                                                                                                                                      Quarter ended December 31,                                                                Year ended December 31,  
                                                                                        ---------------------------------------------------------------------------------------------                      ------------------------------------------------------------------------------------
(in millions)                                                                   2017               2016               2017       2016  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Balance, beginning of period                                                                  $  12,109                                12,694                                                   12,540                        12,512
Provision for credit losses                                                                         651                                                      805                                                    2,528                                            3,770
Interest income on certain impaired loans (1)                                                       (49 )                                                    (52 )                                                   (186 )                                           (205 )
Loan charge-offs:
    Commercial:
        Commercial and industrial                                                                  (181 )                                                   (309 )                                                   (789 )                                         (1,419 )
        Real estate mortgage                                                                         (4 )                                                    (14 )                                                    (38 )                                            (27 )
        Real estate construction                                                         --                                           --                                           --                                               (1 )
        Lease financing                                                          (14 )                                 (16 )                                 (45 )                         (41 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
            Total commercial                                                    (199 )                                (339 )                                (872 )                      (1,488 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
    Consumer:
        Real estate 1-4 family first mortgage                                                       (49 )                                                    (86 )                                                   (240 )                                           (452 )
        Real estate 1-4 family junior lien mortgage                                                 (54 )                                                   (110 )                                                   (279 )                                           (495 )
        Credit card                                                                                (398 )                                                   (329 )                                                 (1,481 )                                         (1,259 )
        Automobile                                                                                 (261 )                                                   (243 )                                                 (1,002 )                                           (845 )
        Other revolving credit and installment                                  (169 )                                (200 )                                (713 )                        (708 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
            Total consumer                                                      (931 )                                (968 )                              (3,715 )                      (3,759 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
                Total loan charge-offs                                        (1,130 )                              (1,307 )                              (4,587 )                      (5,247 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Loan recoveries:
    Commercial:
        Commercial and industrial                                                                    63                                                       53                                                      297                                              263
        Real estate mortgage                                                                         14                                                       26                                                       82                                              116
        Real estate construction                                                                      3                                                        8                                                       30                                               38
        Lease financing                                                            4                  1                 17         11  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
            Total commercial                                                      84                 88                426        428  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
    Consumer:
        Real estate 1-4 family first mortgage                                                        72                                                       89                                                      288                                              373
        Real estate 1-4 family junior lien mortgage                                                  61                                                       66                                                      266                                              266
        Credit card                                                                                  62                                                       54                                                      239                                              207
        Automobile                                                                                   73                                                       77                                                      319                                              325
        Other revolving credit and installment                                    27                 28                121        128  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
            Total consumer                                                       295                314              1,233      1,299  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
                Total loan recoveries                                            379                402              1,659      1,727  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
                    Net loan charge-offs                                        (751 )                                (905 )                              (2,928 )                      (3,520 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Other                                                                 --                 (2 )                                   6        (17 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Balance, end of period                                                     $  11,960             12,540             11,960     12,540  
------------------------------------------------------------------ -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Components:
    Allowance for loan losses                                                                 $  11,004                                                   11,419                                                   11,004                                           11,419
    Allowance for unfunded credit commitments                                    956              1,121                956      1,121  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
        Allowance for credit losses                                        $  11,960             12,540             11,960     12,540  
------------------------------------------------------------------ -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
Net loan charge-offs (annualized) as a percentage of average total                                 0.31                    %                                0.37                                                     0.31                                             0.37
loans
Allowance for loan losses as a percentage of total loans                                           1.15                                                     1.18                                                     1.15                                             1.18
Allowance for credit losses as a percentage of total loans                      1.25               1.30               1.25       1.30  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------ --------------------
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
                                                                    
Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                             Quarter ended
                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                     Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                                        2017                                                     2017                                                     2017                                                     2017                                                     2016
------------------------------------------------------------------ -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
Balance, beginning of quarter                                                                 $  12,109                                12,146                                12,287                                12,540                                12,694
Provision for credit losses                                                                         651                                                      717                                                      555                                                      605                                                      805
Interest income on certain impaired loans (1)                                                       (49 )                                                    (43 )                                                    (46 )                                                    (48 )                                                    (52 )
Loan charge-offs:
    Commercial:
        Commercial and industrial                                                                  (181 )                                                   (194 )                                                   (161 )                                                   (253 )                                                   (309 )
        Real estate mortgage                                                                         (4 )                                                    (21 )                                                     (8 )                                                     (5 )                                                    (14 )
        Real estate construction                                                         --                                           --                                           --                                           --                                           --
        Lease financing                                                          (14 )                                 (11 )                                 (13 )                                  (7 )                                 (16 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
            Total commercial                                                    (199 )                                (226 )                                (182 )                                (265 )                                (339 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
    Consumer:
        Real estate 1-4 family first mortgage                                                       (49 )                                                    (67 )                                                    (55 )                                                    (69 )                                                    (86 )
        Real estate 1-4 family junior lien mortgage                                                 (54 )                                                    (70 )                                                    (62 )                                                    (93 )                                                   (110 )
        Credit card                                                                                (398 )                                                   (337 )                                                   (379 )                                                   (367 )                                                   (329 )
        Automobile                                                                                 (261 )                                                   (274 )                                                   (212 )                                                   (255 )                                                   (243 )
        Other revolving credit and installment                                  (169 )                                (170 )                                (185 )                                (189 )                                (200 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
            Total consumer                                                      (931 )                                (918 )                                (893 )                                (973 )                                (968 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                Total loan charge-offs                                        (1,130 )                              (1,144 )                              (1,075 )                              (1,238 )                              (1,307 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Loan recoveries:
    Commercial:
        Commercial and industrial                                                                    63                                                       69                                                       83                                                       82                                                       53
        Real estate mortgage                                                                         14                                                       24                                                       14                                                       30                                                       26
        Real estate construction                                                                      3                                                       15                                                        4                                                        8                                                        8
        Lease financing                                                            4                  5                  6                  2                  1  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
            Total commercial                                                      84                113                107                122                 88  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
    Consumer:
        Real estate 1-4 family first mortgage                                                        72                                                       83                                                       71                                                       62                                                       89
        Real estate 1-4 family junior lien mortgage                                                  61                                                       69                                                       66                                                       70                                                       66
        Credit card                                                                                  62                                                       60                                                       59                                                       58                                                       54
        Automobile                                                                                   73                                                       72                                                       86                                                       88                                                       77
        Other revolving credit and installment                                    27                 30                 31                 33                 28  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
            Total consumer                                                       295                314                313                311                314  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                Total loan recoveries                                            379                427                420                433                402  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                    Net loan charge-offs                                        (751 )                                (717 )                                (655 )                                (805 )                                (905 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Other                                                                 --                  6                  5                 (5 )                                  (2 )
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Balance, end of quarter                                                    $  11,960             12,109             12,146             12,287             12,540  
------------------------------------------------------------------ -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Components:
    Allowance for loan losses                                                                 $  11,004                                                   11,078                                                   11,073                                                   11,168                                                   11,419
    Allowance for unfunded credit commitments                                    956              1,031              1,073              1,119              1,121  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
        Allowance for credit losses                                        $  11,960             12,109             12,146             12,287             12,540  
------------------------------------------------------------------ -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net loan charge-offs (annualized) as a percentage of average total                                 0.31                    %                                0.30                                                     0.27                                                     0.34                                                     0.37
loans
Allowance for loan losses as a percentage of:
    Total loans                                                                                    1.15                                                     1.16                                                     1.16                                                     1.17                                                     1.18
    Nonaccrual loans                                                                                137                                                      129                                                      122                                                      114                                                      110
    Nonaccrual loans and other nonperforming assets                                                 127                                                      119                                                      113                                                      105                                                      101
Allowance for credit losses as a percentage of:
    Total loans                                                                                    1.25                                                     1.27                                                     1.27                                                     1.28                                                     1.30
    Nonaccrual loans                                                                                149                                                      141                                                      134                                                      126                                                      121
    Nonaccrual loans and other nonperforming assets                              138                130                123                115                110  
------------------------------------------------------------------ -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) Certain impaired loans with an allowance calculated by
discounting expected cash flows using the loan’s effective
interest rate over the remaining life of the loan recognize
changes in allowance attributable to the passage of time as
interest income.
                                                                                                                                                                                                     
Wells Fargo & Company and Subsidiaries  
TANGIBLE
COMMON EQUITY (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except ratios)                                                Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,                        Dec 31,
                                                                                                                                        2017                                              2017                                              2017                                              2017                                              2016
------------------------------------------ -------------------- -------------------- -------------------- --------------------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------
Tangible book value per common share (1):
Total equity (2)                                                                                              $ 208,079                                           206,617                                           205,949                                           202,310                                           200,497
Adjustments:
    Preferred stock                                                                                             (25,358 )                                         (25,576 )                                         (25,785 )                                         (25,501 )                                         (24,551 )
    Additional paid-in capital on ESOP                                                                             (122 )                                            (130 )                                            (136 )                                            (157 )                                            (126 )
    preferred stock
    Unearned ESOP shares                                                                                          1,678                                             1,904                                             2,119                                             2,546                                             1,565
    Noncontrolling interests                            (1,143 )                         (895 )                         (915 )                         (989 )                         (916 )
------------------------------------------ -------------------- -------------------- -------------------- ---------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total common stockholders’ equity (2)                           (A)                                             183,134                                           181,920                                           181,232                                           178,209                                           176,469
Adjustments:
    Goodwill                                                                                                    (26,587 )                                         (26,581 )                                         (26,573 )                                         (26,666 )                                         (26,693 )
    Certain identifiable intangible assets                                                                       (1,624 )                                          (1,913 )                                          (2,147 )                                          (2,449 )                                          (2,723 )
    (other than MSRs)
    Other assets (3)                                                                                             (2,155 )                                          (2,282 )                                          (2,268 )                                          (2,121 )                                          (2,088 )
    Applicable deferred taxes (4)                          962       1,550       1,624       1,698       1,772  
------------------------------------------ -------------------- -------------------- -------------------- ---------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Tangible common equity (2)                   (B)                        $ 153,730     152,694     151,868     148,671     146,737  
------------------------------------------ -------------------- -------------------- -------------------- ----- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Common shares outstanding                                       (C)                                             4,891.6                                           4,927.9                                           4,966.8                                           4,996.7                                           5,016.1
Book value per common share (2)                                              (A)/(C)                          $   37.44                                             36.92                                             36.49                                             35.67                                             35.18
Tangible book value per common share (2)                  (B)/(C)           31.43       30.99       30.58       29.75       29.25  
------------------------------------------ -------------------- -------------------- -------------------- ---------------------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
                                                                                                                                                                                             
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------
                                                                                                                                                                                                                                     Quarter ended                                                  Year ended
                                                                                                                                    -----------------------------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------
(in millions, except ratios)                                                                                                              Dec 31,                      Sep 30,                      Jun 30,                      Mar 31,                      Dec 31,                        Dec 31,                      Dec 31,
                                                                                                                                                                2017                         2017                         2017                         2017                         2016                                              2017                         2016
                                                                                                               -------------------- ------------------------------   ---------------------------  ---------------------------  ---------------------------  ---------------------------  -------------------- ---------------------------  ---------------------------
Return on average tangible common equity (1):
Net income applicable to common stock (2)                                                 (A)                                         $   5,740                        4,131                        5,450                        5,233                        4,872                                            20,554                       20,373
Average total equity (2)                                                                                                                207,413                      207,723                      205,755                      201,559                      201,247                                           205,654                      200,690
Adjustments:
    Preferred stock                                                                                                                     (25,569 )                    (25,780 )                    (25,849 )                    (25,163 )                    (24,579 )                                         (25,592 )                    (24,363 )
    Additional paid-in capital on ESOP preferred stock                                                                                     (129 )                       (136 )                       (144 )                       (146 )                       (128 )                                            (139 )                       (161 )
    Unearned ESOP shares                                                                                                                  1,896                        2,114                        2,366                        2,198                        1,596                                             2,143                        2,011
    Noncontrolling interests                                                      (998 )                       (926 )                       (910 )                       (957 )                       (928 )                         (948 )                       (936 )
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------- ------- -------------------- ------- -------------------- ------- -------------------- ------- -------------------- -------------------- ------- -------------------- ------- --------------------
Average common stockholders’ equity (2)                        (B)                                           182,613                      182,995                      181,218                      177,491                      177,208                                           181,118                      177,241
Adjustments:
    Goodwill                                                                                                                            (26,579 )                    (26,600 )                    (26,664 )                    (26,673 )                    (26,713 )                                         (26,629 )                    (26,700 )
    Certain identifiable intangible assets (other than MSRs)                                                                             (1,767 )                     (2,056 )                     (2,303 )                     (2,588 )                     (2,871 )                                          (2,176 )                     (3,254 )
    Other assets (3)                                                                                                                     (2,245 )                     (2,231 )                     (2,160 )                     (2,095 )                     (2,175 )                                          (2,184 )                     (2,117 )
    Applicable deferred taxes (4)                                                1,332     1,579     1,648     1,722     1,785       1,570     1,897  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------- ------- -------------------- ------- -------------------- ------- -------------------- ------- -------------------- -------------------- ------- -------------------- ------- --------------------
Average tangible common equity (2)                                     (C)                      $ 153,354   153,687   151,739   147,857   147,234     151,699   147,067  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- --- ------- -------------------- ------- -------------------- ------- -------------------- ------- -------------------- ------- -------------------- -------------------- ------- -------------------- ------- --------------------
Return on average common stockholders’ equity (ROE) (annualized) (2)                                   (A)/(B)                            12.47                    %    8.96                        12.06                        11.96                        10.94                                             11.35                        11.49
Return on average tangible common equity (ROTCE) (annualized) (2)                   (A)/(C)         14.85     10.66     14.41     14.35     13.16       13.55     13.85  
-------------------------------------------------------------------- -------------------- -------------------- -------------------- -------------------------------- ------- -------------------- ------- -------------------- ------- -------------------- ------- -------------------- -------------------- ------- -------------------- ------- --------------------
(1) Tangible common equity is a non-GAAP financial measure and
represents total equity less preferred equity, noncontrolling
interests, and goodwill and certain identifiable intangible assets
(including goodwill and intangible assets associated with certain
of our nonmarketable equity investments but excluding mortgage
servicing rights), net of applicable deferred taxes. The
methodology of determining tangible common equity may differ among
companies. Management believes that return on average tangible
common equity and tangible book value per common share, which
utilize tangible common equity, are useful financial measures
because they enable investors and others to assess the Company’s
use of equity.
(2) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
(3) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
(4) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
                                                                                                                                                                                                                               
Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                          Estimated
(in billions, except ratio)                                                                           Dec 31,                        Sep 30,                        Jun 30,                        Mar 31,                        Dec 31,
                                                                                                                                               2017                                              2017                                              2017                                              2017                                              2016
-------------------------------------------------------------------- -------------------- -------------------- ----------------------------------   -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------  -------------------- ---------------------------
Total equity (2)                                                                                                     $   208.1                                             206.6                                             205.9                                             202.3                                             200.5
Adjustments:
    Preferred stock                                                                                                      (25.4 )                                           (25.6 )                                           (25.8 )                                           (25.5 )                                           (24.6 )
    Additional paid-in capital on ESOP                                                                                    (0.1 )                                            (0.1 )                                            (0.1 )                                            (0.2 )                                            (0.1 )
    preferred stock
    Unearned ESOP shares                                                                                                   1.7                                               1.9                                               2.1                                               2.5                                               1.6
    Noncontrolling interests                                                        (1.1 )                         (0.9 )                         (0.9 )                         (1.0 )                         (0.9 )
-------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total common stockholders’ equity (2)                                                                                    183.2                                             181.9                                             181.2                                             178.1                                             176.5
Adjustments:
    Goodwill                                                                                                             (26.6 )                                           (26.6 )                                           (26.6 )                                           (26.7 )                                           (26.7 )
    Certain identifiable intangible assets (other than MSRs)                                                              (1.6 )                                            (1.9 )                                            (2.1 )                                            (2.4 )                                            (2.7 )
    Other assets (3)                                                                                                      (2.2 )                                            (2.3 )                                            (2.2 )                                            (2.1 )                                            (2.1 )
    Applicable deferred taxes (4)                                                                                          1.0                                               1.6                                               1.6                                               1.7                                               1.8
    Investment in certain subsidiaries and other                                     0.2        (0.1 )                         (0.2 )                         (0.1 )                         (0.4 )
-------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Common Equity Tier 1 (Fully Phased-In) under Basel III                 (A)                            154.0       152.6       151.7       148.5       146.4  
-------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Total risk-weighted assets (RWAs) anticipated under Basel III (5)(6)   (B)                        $ 1,292.3     1,292.8     1,310.5     1,324.5     1,358.9  
-------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
Common Equity Tier 1 to total RWAs anticipated under Basel III                      (A)/(B)            11.9                    %      11.8        11.6        11.2        10.8  
(Fully Phased-In) (6)
-------------------------------------------------------------------- -------------------- -------------------- --------------  -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- -------------------- -------------------- ------- --------------------
(1) Basel III capital rules, adopted by the Federal Reserve Board
on July 2, 2013, revised the definition of capital, increased
minimum capital ratios, and introduced a minimum Common Equity
Tier 1 (CET1) ratio. These rules established a new comprehensive
capital framework for U.S. banking organizations that implements
the Basel III capital framework and certain provisions of the
Dodd-Frank Act. The rules are being phased in through the end of
2021. Fully phased-in capital amounts, ratios and RWAs are
calculated assuming the full phase-in of the Basel III capital
rules. Fully phased-in regulatory capital amounts, ratios and RWAs
are considered non-GAAP financial measures that are used by
management, bank regulatory agencies, investors and analysts to
assess and monitor the Company’s capital position.
(2) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
(3) Represents goodwill and other intangibles on nonmarketable
equity investments, which are included in other assets.
(4) Applicable deferred taxes relate to goodwill and other
intangible assets. They were determined by applying the combined
federal statutory rate and composite state income tax rates to the
difference between book and tax basis of the respective goodwill
and intangible assets at period end.
(5) The final Basel III capital rules provide for two capital
frameworks: the Standardized Approach, which replaced Basel I, and
the Advanced Approach applicable to certain institutions. Under
the final rules, we are subject to the lower of our CET1 ratio
calculated under the Standardized Approach and under the Advanced
Approach in the assessment of our capital adequacy. Because the
final determination of our CET1 ratio and which approach will
produce the lower CET1 ratio as of December 31, 2017, is subject
to detailed analysis of considerable data, our CET1 ratio at that
date has been estimated using the Basel III definition of capital
under the Basel III Standardized Approach RWAs. The capital ratio
for September 30, June 30 and March 31, 2017, and December 31,
2016, was calculated under the Basel III Standardized Approach
RWAs.
(6) The Company’s December 31, 2017, RWAs and capital ratio are
preliminary estimates.
 
Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(income/expense in millions,                                                                                                    Community                                                                      Wholesale                                                                     Wealth and                                                                                      Other (2)                                                             Consolidated
average balances in billions)                                                                                                                        Banking                                                                                           Banking                                                                                        Investment                                                                                                                                                                                                       Company
                                                                                                                                                                                                                                                                                                                                                      Management
                                                                           ----------------------------------------------------------------------------                           ------------------------------------------------------------------------                          ------------------------------------------------------------------------                          ----------------------------------------------------------------------------------------                          -------------------------------------------------------------------
                                                                                 2017                           2016                          2017                          2016                          2017                          2016                                  2017                                  2016                           2017                   2016
----------------------------------------------------- ---------------------------------------------------- ------------------------------------------------- ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ -------------------------------------------------------- -------------------------------------------------------- ------------------------------------------------- --------------------
Quarter ended December 31,                                                                                                                                                                                                                                                                                                                                                                                                                                
Net interest income (3)                                                      $  7,537                                             7,556                                            4,211                                            4,323                                            1,133                                            1,061                                                     (568 )                                                   (538 )                                          12,313                                                         12,402
Provision (reversal of provision) for credit losses                               636                                               631                                               20                                              168                                               (7 )                                              3                                                        2                                                        3                                               651                                                            805
Noninterest income                                                              4,491                                             4,105                                            2,883                                            2,830                                            3,172                                            3,013                                                     (809 )                                                   (768 )                                           9,737                                                          9,180
Noninterest expense                                         10,200       6,985      4,204      4,002      3,244      3,042               (848 )                                (814 )                       16,800                   13,215
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Income (loss) before income tax expense (benefit)                               1,192                                             4,045                                            2,870                                            2,983                                            1,068                                            1,029                                                     (531 )                                                   (495 )                                           4,599                                                          7,562
Income tax expense (benefit)                                (2,560 )                        1,272        716        795        404        380               (202 )                                (189 )                       (1,642 )                                     2,258
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Net income (loss) before noncontrolling interests                               3,752                                             2,773                                            2,154                                            2,188                                              664                                              649                                                     (329 )                                                   (306 )                                           6,241                                                          5,304
Less: Net income (loss) from noncontrolling interests           79          40          6         (6 )                           5         (4 )                      --     --          90                       30
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Net income (loss)                                         $  3,673       2,733      2,148      2,194        659        653               (329 )                                (306 )                        6,151                    5,274
----------------------------------------------------- -------------------- --- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
 
Average loans                                                                $  473.5                                             488.1                                            463.5                                            461.5                                             72.8                                             70.0                                                    (58.0 )                                                  (55.5 )                                           951.8                                                          964.1
Average assets                                                                  974.0                                           1,000.7                                            837.3                                            811.9                                            209.3                                            220.4                                                    (85.3 )                                                  (88.7 )                                         1,935.3                                                        1,944.3
Average deposits                                                                738.1                                             709.8                                            465.7                                            459.2                                            184.2                                            194.9                                                    (76.4 )                                                  (79.7 )                                         1,311.6                                                        1,284.2
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Year ended December 31,
Net interest income (3)                                                      $ 30,365                                            29,833                                           16,967                                           16,052                                            4,493                                            3,913                                                   (2,268 )                                                 (2,044 )                                          49,557                                                         47,754
Provision (reversal of provision) for credit losses                             2,555                                             2,691                                              (19 )                                          1,073                                               (5 )                                             (5 )                                                     (3 )                                                     11                                             2,528                                                          3,770
Noninterest income                                                             18,342                                            19,033                                           11,206                                           12,490                                           12,433                                           12,033                                                   (3,149 )                                                 (3,043 )                                          38,832                                                         40,513
Noninterest expense                                         32,478      27,422     16,755     16,126     12,631     12,059             (3,380 )                              (3,230 )                       58,484                   52,377
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Income (loss) before income tax expense (benefit)                              13,674                                            18,753                                           11,437                                           11,343                                            4,300                                            3,892                                                   (2,034 )                                                 (1,868 )                                          27,377                                                         32,120
Income tax expense (benefit)                                 1,327       6,182      2,753      3,136      1,610      1,467               (773 )                                (710 )                        4,917                   10,075
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Net income (loss) before noncontrolling interests                              12,347                                            12,571                                            8,684                                            8,207                                            2,690                                            2,425                                                   (1,261 )                                                 (1,158 )                                          22,460                                                         22,045
Less: Net income (loss) from noncontrolling interests          276         136        (15 )                         (28 )                          16         (1 )                      --     --         277                      107
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
Net income (loss)                                         $ 12,071      12,435      8,699      8,235      2,674      2,426             (1,261 )                              (1,158 )                       22,183                   21,938
----------------------------------------------------- -------------------- --- ------ -------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Average loans                                                                $  476.7                                             486.9                                            464.6                                            449.3                                             71.9                                             67.3                                                    (57.1 )                                                  (53.5 )                                           956.1                                                          950.0
Average assets                                                                  984.2                                             977.3                                            821.8                                            782.0                                            214.4                                            211.5                                                    (87.4 )                                                  (85.4 )                                         1,933.0                                                        1,885.4
Average deposits                                             729.3       701.2      464.5      438.6      189.0      187.8              (78.2 )                               (77.0 )                      1,304.6                  1,250.6
----------------------------------------------------- -------------------- ------------------------------- -------------------- ------- -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- ------ -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- ------- -------------------- -------------------- --------------------
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
(2) Includes the elimination of certain items that are included in
more than one business segment, most of which represents products
and services for Wealth and Investment Management customers served
through Community Banking distribution channels.
(3) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
                                                                                                                                                                               
Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                     Quarter ended
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(income/expense in millions, average balances in billions)                                Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                                2017                                                     2017                                                     2017                                                     2017                                                     2016
---------------------------------------------------------- -------------------- ----------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
COMMUNITY BANKING                                                                                                                                                                                                                                                                                
Net interest income (2)(4)                                                            $   7,537                                                    7,626                                                    7,543                                                    7,659                                                    7,556
Provision for credit losses                                                                 636                                                      650                                                      623                                                      646                                                      631
Noninterest income (4)                                                                    4,491                                                    4,358                                                    4,810                                                    4,683                                                    4,105
Noninterest expense                                                   10,200              7,834              7,223              7,221              6,985  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income tax expense (4)                                                      1,192                                                    3,500                                                    4,507                                                    4,475                                                    4,045
Income tax expense (benefit) (4)                                      (2,560 )                               1,263              1,423              1,201              1,272  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income before noncontrolling interests (4)                                            3,752                                                    2,237                                                    3,084                                                    3,274                                                    2,773
Less: Net income from noncontrolling interests                            79                 61                 46                 90                 40  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Segment net income (4)                                             $   3,673              2,176              3,038              3,184              2,733  
---------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Average loans                                                                         $   473.5                                                    473.5                                                    477.2                                                    482.7                                                    488.1
Average assets                                                                            974.0                                                    988.9                                                    983.4                                                    990.7                                                  1,000.7
Average deposits                                                       738.1              734.5              727.2              717.2              709.8  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
WHOLESALE BANKING
Net interest income (2)(4)                                                            $   4,211                                                    4,345                                                    4,271                                                    4,140                                                    4,323
Provision (reversal of provision) for credit losses                                          20                                                       69                                                      (65 )                                                    (43 )                                                    168
Noninterest income (4)                                                                    2,883                                                    2,739                                                    2,682                                                    2,902                                                    2,830
Noninterest expense                                                    4,204              4,248              4,078              4,225              4,002  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income tax expense (4)                                                      2,870                                                    2,767                                                    2,940                                                    2,860                                                    2,983
Income tax expense (4)                                                   716                729                560                748                795  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income before noncontrolling interests (4)                                            2,154                                                    2,038                                                    2,380                                                    2,112                                                    2,188
Less: Net loss from noncontrolling interests                               6                 (7 )                                  (9 )                                  (5 )                                  (6 )
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Segment net income (4)                                             $   2,148              2,045              2,389              2,117              2,194  
---------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Average loans                                                                         $   463.5                                                    463.8                                                    464.9                                                    466.3                                                    461.5
Average assets                                                                            837.3                                                    824.3                                                    817.3                                                    807.8                                                    811.9
Average deposits                                                       465.7              463.4              463.0              466.0              459.2  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)                                                               $   1,133                                                    1,159                                                    1,127                                                    1,074                                                    1,061
Provision (reversal of provision) for credit losses                                          (7 )                                                     (1 )                                                      7                                                       (4 )                                                      3
Noninterest income                                                                        3,172                                                    3,087                                                    3,055                                                    3,119                                                    3,013
Noninterest expense                                                    3,244              3,106              3,075              3,206              3,042  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income tax expense                                                          1,068                                                    1,141                                                    1,100                                                      991                                                    1,029
Income tax expense                                                       404                427                417                362                380  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income before noncontrolling interests                                                  664                                                      714                                                      683                                                      629                                                      649
Less: Net income (loss) from noncontrolling interests                      5                  4                  1                  6                 (4 )
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Segment net income                                                 $     659                710                682                623                653  
---------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Average loans                                                                         $    72.8                                                     72.4                                                     71.7                                                     70.7                                                     70.0
Average assets                                                                            209.3                                                    213.4                                                    213.1                                                    221.9                                                    220.4
Average deposits                                                       184.2              188.1              188.2              195.6              194.9  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
OTHER (3)
Net interest income (2)                                                               $    (568 )                                                   (681 )                                                   (470 )                                                   (549 )                                                   (538 )
Provision (reversal of provision) for credit losses                                           2                                                       (1 )                                                    (10 )                                                      6                                                        3
Noninterest income                                                                         (809 )                                                   (784 )                                                   (783 )                                                   (773 )                                                   (768 )
Noninterest expense                                                     (848 )                                (837 )                                (835 )                                (860 )                                (814 )
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Loss before income tax benefit                                                             (531 )                                                   (627 )                                                   (408 )                                                   (468 )                                                   (495 )
Income tax benefit                                                      (202 )                                (238 )                                (155 )                                (178 )                                (189 )
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net loss before noncontrolling interests                                                   (329 )                                                   (389 )                                                   (253 )                                                   (290 )                                                   (306 )
Less: Net income from noncontrolling interests                --     --     --     --     --  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Other net loss                                                     $    (329 )                                (389 )                                (253 )                                (290 )                                (306 )
---------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Average loans                                                                         $   (58.0 )                                                  (57.4 )                                                  (56.9 )                                                  (56.1 )                                                  (55.5 )
Average assets                                                                            (85.3 )                                                  (88.1 )                                                  (86.8 )                                                  (89.4 )                                                  (88.7 )
Average deposits                                                       (76.4 )                               (79.6 )                               (77.2 )                               (79.6 )                               (79.7 )
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
CONSOLIDATED COMPANY
Net interest income (2)(4)                                                            $  12,313                                                   12,449                                                   12,471                                                   12,324                                                   12,402
Provision for credit losses                                                                 651                                                      717                                                      555                                                      605                                                      805
Noninterest income (4)                                                                    9,737                                                    9,400                                                    9,764                                                    9,931                                                    9,180
Noninterest expense                                                   16,800             14,351             13,541             13,792             13,215  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income tax expense (4)                                                      4,599                                                    6,781                                                    8,139                                                    7,858                                                    7,562
Income tax expense (benefit) (4)                                      (1,642 )                               2,181              2,245              2,133              2,258  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income before noncontrolling interests (4)                                            6,241                                                    4,600                                                    5,894                                                    5,725                                                    5,304
Less: Net income from noncontrolling interests                            90                 58                 38                 91                 30  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Wells Fargo net income (4)                                         $   6,151              4,542              5,856              5,634              5,274  
---------------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Average loans                                                                         $   951.8                                                    952.3                                                    956.9                                                    963.6                                                    964.1
Average assets (4)                                                                      1,935.3                                                  1,938.5                                                  1,927.0                                                  1,931.0                                                  1,944.3
Average deposits                                                     1,311.6            1,306.4            1,301.2            1,299.2            1,284.2  
---------------------------------------------------------- -------------------- ------------------------------------ -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) The management accounting process measures the performance of
the operating segments based on our management structure and is
not necessarily comparable with other similar information for
other financial services companies. We define our operating
segments by product type and customer segment.
(2) Net interest income is the difference between interest earned
on assets and the cost of liabilities to fund those assets.
Interest earned includes actual interest earned on segment assets
and, if the segment has excess liabilities, interest credits for
providing funding to other segments. The cost of liabilities
includes interest expense on segment liabilities and, if the
segment does not have enough liabilities to fund its assets, a
funding charge based on the cost of excess liabilities from
another segment.
(3) Includes the elimination of certain items that are included in
more than one business segment, most of which represents products
and services for Wealth and Investment Management customers served
through Community Banking distribution channels.
(4) Financial information for prior quarters in 2017 has been
revised to reflect the impact of the adoption in fourth quarter
2017 of Accounting Standards Update (ASU) 2017-12 - Derivatives
and Hedging (Topic 815): Targeted Improvements to Accounting
for Hedging Activities. See footnote (1) to the Summary
Financial Data table on page 16 for more information.
 
Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CONSOLIDATED MORTGAGE SERVICING
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                 Quarter ended
                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                                                                   2017                                                     2017                                                     2017                                                     2017                                                     2016
------------------------------------------------------------------------- -------------------- ------------------------------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
MSRs measured using the fair value method:                                                                                                                                                                                                                                 
Fair value, beginning of quarter                                                                                  $         13,338                                                   12,789                                                   13,208                                                   12,959                                                   10,415
    Purchases                                                                                                       --                                                      541                                           --                                           --                                           --
    Servicing from securitizations or asset transfers (1)                                                                      639                                                      605                                                      436                                                      583                                                      752
    Sales and other (2)                                                                  (32 )                                  64                 (8 )                                 (47 )                                 (47 )
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
        Net additions                                                                    607              1,210                428                536                705  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
    Changes in fair value:
        Due to changes in valuation model inputs or assumptions:
            Mortgage interest rates (3)                                                                                        221                                                     (171 )                                                   (305 )                                                    152                                                    2,367
            Servicing and foreclosure costs (4)                                                                                 23                                                       60                                                      (14 )                                                     27                                                       93
            Discount rates (5)                                                                                                  13                                           --                                           --                                           --                                           --
            Prepayment estimates and other (6)                                           (55 )                                 (31 )                                 (41 )                                  (5 )                                (106 )
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                Net changes in valuation model inputs or assumptions                     202               (142 )                                (360 )                                 174              2,354  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
        Changes due to collection/realization of expected cash flows over               (522 )                                (519 )                                (487 )                                (461 )                                (515 )
        time
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
            Total changes in fair value                                                 (320 )                                (661 )                                (847 )                                (287 )                               1,839  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Fair value, end of quarter                                                                     $         13,625             13,338             12,789             13,208             12,959  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) Includes impacts associated with exercising our right to
repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an
increase of total reported MSRs if the sales or transfers are
related to nonperforming loan portfolios or portfolios with
servicing liabilities.
(3) Includes prepayment speed changes as well as other valuation
changes due to changes in mortgage interest rates (such as changes
in estimated interest earned on custodial deposit balances)
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Reflects discount rate assumption change, excluding portion
attributable to changes in mortgage interest rates.
(6) Represents changes driven by other valuation model inputs or
assumptions including prepayment speed estimation changes and other
assumption updates. Prepayment speed estimation changes are
influenced by observed changes in borrower behavior and other
external factors that occur independent of interest rate changes.
                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                           
------------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- ------------------------------------
                                                                                                                                                                                                                                                                                              Quarter ended
------------------------------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                Dec 31,                               Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                                                                   2017                                                     2017                                                     2017                                                     2017                                                     2016
------------------------------------------------------------------------- -------------------- ------------------------------------------------------   -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
Amortized MSRs:
Balance, beginning of quarter                                                                                     $          1,406                                                    1,399                                                    1,402                                                    1,406                                                    1,373
    Purchases                                                                                                                   40                                                       31                                                       26                                                       18                                                       34
    Servicing from securitizations or asset transfers                                                                           43                                                       41                                                       37                                                       45                                                       66
    Amortization                                                                         (65 )                                 (65 )                                 (66 )                                 (67 )                                 (67 )
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Balance, end of quarter                                                                        $          1,424              1,406              1,399              1,402              1,406  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Fair value of amortized MSRs:
    Beginning of quarter                                                                                          $          1,990                                                    1,989                                                    2,051                                                    1,956                                                    1,627
    End of quarter                                                                     2,025              1,990              1,989              2,051              1,956  
------------------------------------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
 
Wells Fargo & Company and Subsidiaries
FIVE QUARTER
CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                      Quarter ended
                                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                          Dec 31,                           Sep 30,                           Jun 30,                           Mar 31,                           Dec 31,
                                                                                                                                                                2017                                                 2017                                                 2017                                                 2017                                                 2016
------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------   -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------
Servicing income, net:                                                                                                                                                                                                                                                      
    Servicing fees (1)                                                                                                                 $    833                                                  795                                                  882                                                  882                                                  738
    Changes in fair value of MSRs carried at fair value:
        Due to changes in valuation model inputs or assumptions (2)                            (A)                                          202                                                 (142 )                                               (360 )                                                174                                                2,354
        Changes due to collection/realization of expected cash flows over         (522 )                            (519 )                            (487 )                            (461 )                            (515 )
        time
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
            Total changes in fair value of MSRs carried at fair value                                                                      (320 )                                               (661 )                                               (847 )                                               (287 )                                              1,839
    Amortization                                                                                                                            (65 )                                                (65 )                                                (66 )                                                (67 )                                                (67 )
    Net derivative gains (losses) from economic hedges (3)                  (B)                      (186 )                             240            431            (72 )                          (2,314 )
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                Total servicing income, net                                                      $    262            309            400            456            196  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Market-related valuation changes to MSRs, net of hedge results (2)(3)       (A)+(B)                                 $     16             98             71            102             40  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
(1) Includes contractually specified servicing fees, late charges
and other ancillary revenues, net of unreimbursed direct servicing
costs.
(2) Refer to the changes in fair value MSRs table on the previous
page for more detail.
(3) Represents results from economic hedges used to hedge the risk
of changes in fair value of MSRs.
                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                         
------------------------------------------------------------------------- -------------------- -------------------- --------------------------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- ---------------------------------------------------- --------------------------------
(in billions)                                                                                                          Dec 31,                           Sep 30,                           Jun 30,                           Mar 31,                           Dec 31,
                                                                                                                                                                2017                                                 2017                                                 2017                                                 2017                                                 2016
------------------------------------------------------------------------- -------------------- -------------------- ----------------------------------------------   -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------  -------------------- ------------------------------
Managed servicing portfolio (1):
    Residential mortgage servicing:
        Serviced for others                                                                                                            $  1,209                                                1,223                                                1,189                                                1,204                                                1,205
        Owned loans serviced                                                                                                                342                                                  340                                                  343                                                  335                                                  347
        Subserviced for others                                                       3              3              4              4              8  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
            Total residential servicing                                          1,554          1,566          1,536          1,543          1,560  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
    Commercial mortgage servicing:
        Serviced for others                                                                                                                 495                                                  480                                                  475                                                  474                                                  479
        Owned loans serviced                                                                                                                127                                                  128                                                  130                                                  132                                                  132
        Subserviced for others                                                       9              8              8              7              8  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
            Total commercial servicing                                             631            616            613            613            619  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
                Total managed servicing portfolio                                                $  2,185          2,182          2,149          2,156          2,179  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
Total serviced for others                                                                                                              $  1,704                                                1,703                                                1,664                                                1,678                                                1,684
Ratio of MSRs to related loans serviced for others                                                                                         0.88 %                                               0.87                                                 0.85                                                 0.87                                                 0.85
Weighted-average note rate (mortgage loans serviced for others)                   4.23           4.23           4.23           4.23           4.26  
------------------------------------------------------------------------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- -------------------- -------------------- ---------- --------------------
(1) The components of our managed servicing portfolio are presented
at unpaid principal balance for loans serviced and subserviced for
others and at book value for owned loans serviced.
                                                                     
Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                         Quarter ended
                                                                                                              -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Dec 31,                     Sep 30,                               Jun 30,                     Mar 31,   Dec 31,
                                                                                                                                              2017                                           2017                                                     2017                                           2017                         2016
------------------------------------------------------------------- -------------------- -------------------- ----------------------------------   -------------------- ------------------------  -------------------- ----------------------------------  -------------------- ------------------------  -------------------- -------
Net gains on mortgage loan origination/sales activities (in                                                                                                                                                                                       
millions):
    Residential                                                                          (A)                        $     504                                            546                                                      521                                            569                                               939
    Commercial                                                                                                             95                                             81                                                       81                                            101                                                90
    Residential pipeline and unsold/repurchased loan management (1)                  67      110                146      102         192
------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
        Total                                                                 $     666      737                748      772       1,221
------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
Application data (in billions):
    Wells Fargo first mortgage quarterly applications                                                               $      63                                             73                                                       83                                             59                                                75
    Refinances as a percentage of applications                                                                             38 %                                           37                                                       32                                             36                                                48
    Wells Fargo first mortgage unclosed pipeline, at quarter end              $      23       29                 34       28          30
------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
Residential real estate originations:
    Purchases as a percentage of originations                                                                              64 %                                           72                                                       75                                             61                                                50
    Refinances as a percentage of originations                                       36       28                 25       39          50
------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
        Total                                                                       100 %                       100                100      100         100
------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
    Wells Fargo first mortgage loans (in billions):
        Retail                                                                                                      $      23                                             26                                                       25                                             21                                                35
        Correspondent                                                                                                      30                                             32                                                       31                                             22                                                36
    Other (2)                                                            --        1     --        1           1
------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
        Total quarter-to-date                                                 $      53       59                 56       44          72
------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
    Held-for-sale                                                                        (B)                        $      40                                             44                                                       42                                             34                                                56
    Held-for-investment                                                              13       15                 14       10          16
------------------------------------------------------------------- -------------------- -------------------- ------------------------------------ -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
        Total quarter-to-date                                                 $      53       59                 56       44          72
------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
        Total year-to-date                                                    $     212      159                100       44         249
------------------------------------------------------------------- -------------------- -------------------- ------- ------- -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
Production margin on residential held-for-sale mortgage               (A)/(B)                         1.25 %                      1.24               1.24     1.68        1.68
originations
------------------------------------------------------------------- -------------------- -------------------- --------------  -------------------- -------------------- ---- -------------------- -------------------- -------------- -------------------- -------------------- ---- -------------------- -------------------- -------
(1) Predominantly includes the results of GNMA loss mitigation
activities, interest rate management activities and changes in
estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.
 
CHANGES IN MORTGAGE REPURCHASE LIABILITY
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                     Quarter ended
                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                    Dec 31,     Sep 30,                               Jun 30,                               Mar 31,                               Dec 31,
                                                                                                       2017                           2017                                                     2017                                                     2017                                                     2016
------------------------------------------------- -------------------- ----------------------------------   -------------------- --------  -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- ----------------------------------
Balance, beginning of period                                                 $     179                              178              222                                   229                                   239
    Assumed with MSR purchases (1)                                      --                                             10                           --                                           --                                           --
    Provision for repurchase losses:
       Loan sales                                                                    4                                              6                                        6                                                        8                                                       10
       Change in estimate (2)                                     2      (12 )                 (45 )                                  (8 )                                  (7 )
------------------------------------------------- -------------------- ------------------------------------ -------------------- ---- ---- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
          Net additions (reductions) to provision                                    6                                             (6 )                                    (39 )                                         --                                                        3
    Losses                                                       (4 )                        (3 )                  (5 )                                  (7 )                                 (13 )
------------------------------------------------- -------------------- ------------------------------------ -------------------- ---- ---- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Balance, end of period                                    $     181           179              178                222                229  
------------------------------------------------- -------------------- ------- ------- -------------------- -------------------- ------------------------------ -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
(1) Represents repurchase liability associated with portfolio of
loans underlying mortgage servicing rights acquired during the
period.
(2) Results from changes in investor demand and mortgage insurer
practices, credit deterioration and changes in the financial
stability of correspondent lenders.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180112005127r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180112005127/en/

SOURCE: Wells Fargo & Company

Media 
Ancel Martinez, 415-222-3858 
or 
Investors 
John M. Campbell, 415-396-0523


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