Wells Fargo Reports Fourth Quarter 2017 Net Income of $6.2 Billion; Diluted EPS of $1.16

Wells Fargo & Company (NYSE: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, 2017				Sep 30, 2017			Dec 31, 2016			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 (NYSE: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 revenue², 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 originations³ 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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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 percent⁴, 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 charge- offs				As a % of average loans (a)			Net loan charge- offs				As a % of average loans (a)			Net loan charge- offs				As a % of average 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 balances				As a % of total loans			Total balances				As a % of total loans			Total balances				As a % of total 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 release⁵, 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, 2017				Sep 30, 2017			Dec 31, 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, 2017			Sep 30, 2017		Dec 31, 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^6,7up 0.2 percent year-over-year
• Debit card point-of-sale purchase volume⁸ 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 percent⁹
• 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, 2017			Sep 30, 2017		Dec 31, 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, 2017				Sep 30, 2017			Dec 31, 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 (NYSE: 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 (Taxable-Equivalent Basis)		23
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 Dec 31, 2017 from						Year ended
($ in millions, except per share amounts)		Dec 31, 2017				Sep 30, 2017			Dec 31, 2016			Sep 30, 2017			Dec 31, 2016			Dec 31, 2017				Dec 31, 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 Fargo common stockholders’ equity (ROE)		12.47				8.96			10.94			39			14			11.35				11.49			(1	)
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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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 Fargo common stockholders’ equity (ROE)		12.47				8.96			12.06			11.96			10.94
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, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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 period		45				422			(89)		49				(52	)		NM
Amortization of net actuarial loss, settlements and other to net income		33				43			(23)		153				158			(3)
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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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 balance				Yields/ rates			Interest income/ expense				Average balance			Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	264,940			1.25	%		$	835			273,073			0.56	%		$	381
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 taxable-equivalent basis (5)						2.84	%		$	12,655						2.87	%		$	12,733
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 balance				Yields/ rates			Interest income/ expense				Average balance			Yields/ rates			Interest income/ expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	276,561			1.05	%		$	2,897			287,718			0.51	%		$	1,457
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 taxable-equivalent basis (5)						2.87	%		$	50,878						2.86	%		$	48,994
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 balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	264.9			1.25	%		$	276.1			1.20	%		$	281.6			0.99	%		$	283.8			0.76	%		$	273.1			0.56	%
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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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, 2017				Dec 31, 2016			% Change
Assets
Cash and due from banks		$	23,367			20,729			13	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		272,605				266,038			2
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; issued 5,481,811,474 shares		9,136				9,136			—
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, 2017				Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 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 other short-term investments		272,605				273,105			264,706			308,747			266,038
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