Wells Fargo & Company (NYSE:WFC):

• Financial results:
  • Net income of $5.2 billion, compared with $5.9 billion in second quarter 2017
    • Second quarter 2018 included net discrete income tax expense of $481 million mostly related to state income taxes driven by the recent U.S. Supreme Court decision in South Dakota v. Wayfair
  • Diluted earnings per share (EPS) of $0.98, compared with $1.08
  • Revenue of $21.6 billion, down from $22.2 billion
    • Net interest income of $12.5 billion, up $70 million, or 1 percent
    • Noninterest income of $9.0 billion, down $752 million, or 8 percent
  • Noninterest expense of $14.0 billion, up from $13.5 billion
    • Second quarter 2018 included $619 million of operating losses primarily related to non-litigation expense for previously disclosed matters
  • Average deposits of $1.3 trillion, down $29.9 billion, or 2 percent
  • Average loans of $944.1 billion, down $12.8 billion, or 1 percent
  • Return on assets (ROA) of 1.10 percent, return on equity (ROE) of 10.60 percent, and return on average tangible common equity (ROTCE) of 12.62 percent¹
  • Returned $4.0 billion to shareholders through common stock dividends and net share repurchases, up 17 percent from $3.4 billion in second quarter 2017

• Credit quality:
  • Provision expense of $452 million, down $103 million, or 19 percent, from second quarter 2017
    • Net charge-offs declined $53 million to $602 million, or 0.26 percent of average loans (annualized)
    • Reserve release² of $150 million, compared with $100 million in second quarter 2017
  • Nonaccrual loans of $7.5 billion, down $1.6 billion, or 17 percent

• Received a non-objection to the Company's 2018 Capital Plan submission from the Federal Reserve
  • As part of this plan, the Company expects to increase its third quarter 2018 common stock dividend to $0.43 per share from $0.39 per share, subject to approval by the Company's Board of Directors. The plan also includes up to $24.5 billion of gross common stock repurchases for the four-quarter period from third quarter 2018 through second quarter 2019.¹ Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities 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 36.² 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.

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, 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
			Jun 30,					Mar 31,			Jun 30,
			2018					2018			2017
Earnings
Diluted earnings per common share			$	0.98				0.96			1.08
Wells Fargo net income (in billions)			5.19					5.14			5.86
Return on assets (ROA)			1.10		%			1.09			1.22
Return on equity (ROE)			10.60					10.58			12.06
Return on average tangible common equity (ROTCE) (a)			12.62					12.62			14.41
Asset Quality
Net charge-offs (annualized) as a % of average total loans			0.26		%			0.32			0.27
Allowance for credit losses as a % of total loans			1.18					1.19			1.27
Allowance for credit losses as a % of annualized net charge-offs			460					376			462
Other
Revenue (in billions)			$	21.6				21.9			22.2
Efficiency ratio (b)			64.9		%			68.6			60.9
Average loans (in billions)			$	944.1				951.0			956.9
Average deposits (in billions)			1,271.3					1,297.2			1,301.2
Net interest margin			2.93		%			2.84			2.90
(a) 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 securities 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 36.
(b) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

Wells Fargo & Company (NYSE:WFC) reported net income of $5.2 billion, or $0.98 per diluted common share, for second quarter 2018, compared with $5.9 billion, or $1.08 per share, for second quarter 2017, and $5.1 billion, or $0.96 per share, for first quarter 2018.

Chief Executive Officer Tim Sloan said, “During the second quarter we continued to transform Wells Fargo into a better, stronger company for our customers, team members, communities and shareholders. Our progress included making further improvements to our compliance and operational risk management programs; hiring a new Chief Risk Officer; announcing innovative new products including a digital application for Merchant Services customers and our enhanced Propel^® Card, one of the richest no-annual-fee credit cards in the industry; launching our ‘Re-established’ marketing effort, the largest advertising campaign in our history; announcing a new $200 billion commitment to financing sustainable businesses and projects; and continuing to move forward on our expense savings initiatives. I’m also pleased with our recent CCAR results, which demonstrates the strength of our diversified business model, our sound financial risk management practices, and our strong capital position, and enables us to return more capital to our shareholders in alignment with our goal of creating long-term shareholder value.”

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $5.2 billion of net income in the second quarter, which included net discrete income tax expense of $481 million. Net interest income grew both linked quarter and year-over-year in the second quarter, credit performance and capital levels remained strong, and we are on track to meet our expense reduction expectations. In addition, we received a non-objection to our 2018 Capital Plan, which includes an increase in our quarterly common stock dividend rate in third quarter 2018 to $0.43 per share, subject to board approval, as well as up to $24.5 billion of gross common stock repurchases during the four-quarter period beginning in third quarter 2018. The shareholder returns included in the capital plan are approximately 70% higher than our previous four quarter capital actions, demonstrating our commitment to returning more capital to shareholders. Our ability to return this level of capital is a result of capital built in recent years through continued stable earnings and a lower level of risk-weighted assets.”

Net Interest Income

Net interest income in the second quarter was $12.5 billion, up $303 million compared with first quarter 2018, driven predominantly by a less negative impact from hedge ineffectiveness accounting, the net benefit of rate and spread movements, and one additional day in the quarter.

Net interest margin was 2.93 percent, up 9 basis points compared with first quarter 2018. The increase was driven by a reduction in the proportion of lower yielding assets, as well as a less negative impact from hedge ineffectiveness accounting and the net benefit of rate and spread movements.

Noninterest Income

Noninterest income in the second quarter was $9.0 billion, down $684 million compared with first quarter 2018. Second quarter noninterest income included lower market sensitive revenue³, mortgage banking fees and other income, partially offset by higher card fees on stronger credit card and debit card activity.

• Mortgage banking income was $770 million, down from $934 million in first quarter 2018. Residential mortgage loan originations increased in the second quarter to $50 billion, from $43 billion in the first quarter. The production margin on residential held-for-sale mortgage loan originations⁴ declined to 0.77 percent, compared with 0.94 percent in the first quarter, due to increased price competition. Net mortgage servicing income was $406 million in the second quarter, down from $468 million in the first quarter driven by higher loan prepayments.
• Market sensitive revenue was $527 million, down from $1.0 billion in first quarter 2018, primarily due to lower unrealized gains from equity securities. Additionally, second quarter 2018 included $214 million of other-than-temporary impairment (OTTI) from the announced sale of Wells Fargo Asset Management's (WFAM) ownership stake in The Rock Creek Group, LP (RockCreek).
• Other income was $323 million, compared with $438 million in the first quarter. Second quarter results included a $479 million gain from sales of $1.3 billion of purchased credit-impaired (PCI) Pick-a-Pay loans, compared with a $643 million gain from sales of $1.6 billion of PCI Pick-a-Pay loans in first quarter 2018.

Noninterest Expense

Noninterest expense in the second quarter declined $1.1 billion from the prior quarter to $14.0 billion, primarily due to lower operating losses, a decline in employee benefits and incentive compensation expense, which were seasonally elevated in the first quarter, and lower equipment expense. These decreases were partially offset by higher charitable donations expense, contract services, advertising and promotion, and outside professional services expense. The efficiency ratio was 64.9 percent in second quarter 2018, compared with 68.6 percent in the first quarter.

Second quarter 2018 operating losses were $619 million, which included typical operating losses, as well as non-litigation expense for previously disclosed matters, including policies, practices and procedures in our foreign exchange business; fee calculations within certain fiduciary and custody accounts in our wealth management business; practices in our automobile lending business, including related insurance products; and mortgage interest rate lock extensions. First quarter 2018 operating losses were $1.5 billion due to elevated litigation accruals.

Income Taxes

The Company’s effective income tax rate was 25.9 percent for second quarter 2018 and included net discrete income tax expense of $481 million mostly related to state income taxes. Discrete income tax expenses in the second quarter were driven by the Company’s adjustment to its state income tax reserves following the recent U.S. Supreme Court decision in South Dakota v. Wayfair and by the true-up of certain state income tax accruals. The effective income tax rate in first quarter 2018 was 21.1 percent and included net discrete income tax expense of $137 million, predominantly resulting from the non-deductible treatment of a discrete litigation accrual. The Company currently expects the effective income tax rate for the remainder of 2018 to be approximately 19 percent, excluding the impact of any future discrete items.

Loans

Total average loans were $944.1 billion in the second quarter, down $6.9 billion from the first quarter. Period-end loan balances were $944.3 billion at June 30, 2018, down $3.0 billion from March 31, 2018. Commercial loans were down $291 million compared with March 31, 2018, with a $2.5 billion decline in commercial real estate loans, partially offset by $1.9 billion of growth in commercial and industrial loans and a $321 million increase in lease financing loans. Consumer loans decreased $2.8 billion from the prior quarter, driven by:

• a $1.9 billion decline in automobile loans due to expected continued runoff
• a $1.4 billion decline in the junior lien mortgage portfolio as payoffs continued to exceed new originations
• a $376 million decline in other revolving credit and installment loans
• these decreases were partially offset by:
  • a $581 million increase in credit card balances
  • a $343 million increase in 1-4 family first mortgage loans, as nonconforming mortgage loan originations were partially offset by payoffs and $1.3 billion of sales of PCI Pick-a-Pay mortgage loans

Additionally, $507 million of nonconforming mortgage loan originations that would have otherwise been included in 1-4 family first mortgage loan outstandings were designated as held for sale in anticipation of the future issuance of residential mortgage-backed securities (RMBS), and $112 million of loans were transferred to held for sale as a result of previously announced branch divestitures.

Period-End Loan Balances
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Commercial			$	503,105				503,396				503,388				500,150				505,901
Consumer			441,160					443,912				453,382				451,723				451,522
Total loans			$	944,265				947,308				956,770				951,873				957,423
Change from prior quarter			$	(3,043	)			(9,462	)			4,897				(5,550	)			(982	)

Debt and Equity Securities

Debt securities include available-for-sale and held-to-maturity debt securities, as well as debt securities held for trading. Debt securities were $475.5 billion at June 30, 2018, up $2.5 billion from the first quarter, driven by:

• a $5.7 billion increase in debt securities held for trading
• a net decrease in available-for-sale and held-to-maturity debt securities, as approximately $14.4 billion of purchases, primarily federal agency mortgage-backed securities (MBS) in the available-for-sale portfolio, were more than offset by runoff and sales

Net unrealized losses on available-for-sale debt securities were $2.4 billion at June 30, 2018, compared with net unrealized losses of $1.9 billion at March 31, 2018, primarily due to higher interest rates.

Equity securities include marketable and non-marketable equity securities, as well as equity securities held for trading. Equity securities were $57.5 billion at June 30, 2018, down $1.4 billion from the first quarter, predominantly due to a decline in equity securities held for trading.

Deposits

Total average deposits for second quarter 2018 were $1.3 trillion, down $25.8 billion from the prior quarter. The decline was driven by a decrease in commercial deposits, primarily from financial institutions, including a $13.5 billion decline from actions the Company has taken in response to the asset cap included in the consent order issued by the Board of Governors of the Federal Reserve System on February 2, 2018. Average consumer and small business banking deposits of $754.0 billion for second quarter 2018 were down $1.4 billion from the prior quarter, with growth in Community Banking deposits more than offset by lower Wealth and Investment Management deposits, as customers allocated more cash to alternative higher-rate liquid investments. The average deposit cost for second quarter 2018 was 40 basis points, up 6 basis points from the prior quarter and 19 basis points from a year ago, primarily driven by an increase in commercial and Wealth and Investment Management deposit rates.

Capital

Capital in the second quarter continued to exceed our internal target, with a Common Equity Tier 1 ratio (fully phased-in) of 12.0 percent⁵, flat compared with the prior quarter. In second quarter 2018, the Company repurchased 35.8 million shares of its common stock, which reduced period-end common shares outstanding by 24.8 million. The Company paid a quarterly common stock dividend of $0.39 per share. In addition, the Company received a non-objection to its 2018 Capital Plan from the Federal Reserve. As part of this plan, the Company expects to increase its third quarter 2018 common stock dividend to $0.43 per share, subject to approval by the Company's Board of Directors. The plan also includes up to $24.5 billion of gross common stock repurchases, subject to management discretion, for the four-quarter period from third quarter 2018 through second quarter 2019.

Credit Quality

Net Loan Charge-offs

The quarterly loss rate in the second quarter was 0.26 percent (annualized), compared with 0.32 percent in the prior quarter and 0.27 percent a year ago. Commercial and consumer losses were 0.05 percent and 0.49 percent, respectively. Total credit losses were $602 million in second quarter 2018, down $139 million from first quarter 2018. Commercial losses were down $11 million due to improvement in commercial and industrial loans. Consumer losses decreased $128 million driven by lower loss rates and higher recovery rates, including seasonal impacts in automobile and credit card.

Net Loan Charge-Offs
			Quarter ended
			June 30, 2018									March 31, 2018									June 30, 2017
			Net loan					As a % of				Net loan					As a % of				Net loan					As a % of
			charge-					average				charge-					average				charge-					average
($ in millions)			offs					loans (a)				offs					loans (a)				offs					loans (a)
Commercial:
Commercial and industrial			$	58				0.07	%			$	85				0.10	%			$	78				0.10	%
Real estate mortgage			—					—				(15		)			(0.05	)			(6		)			(0.02	)
Real estate construction			(6		)			(0.09	)			(4		)			(0.07	)			(4		)			(0.05	)
Lease financing			15					0.32				12					0.25				7					0.15
Total commercial			67					0.05				78					0.06				75					0.06
Consumer:
Real estate 1-4 family first mortgage			(23		)			(0.03	)			(18		)			(0.03	)			(16		)			(0.02	)
Real estate 1-4 family junior lien mortgage			(13		)			(0.13	)			(8		)			(0.09	)			(4		)			(0.03	)
Credit card			323					3.61				332					3.69				320					3.67
Automobile			113					0.93				208					1.64				126					0.86
Other revolving credit and installment			135					1.44				149					1.60				154					1.58
Total consumer			535					0.49				663					0.60				580					0.51
Total			$	602				0.26	%			$	741				0.32	%			$	655				0.27	%
(a) Quarterly net charge-offs (recoveries) as a percentage of average loans are annualized. See explanation on page 33 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased $305 million, or 4 percent, from first quarter 2018 to $8.0 billion. Nonaccrual loans decreased $233 million from first quarter 2018 to $7.5 billion predominantly driven by lower consumer real estate nonaccruals.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
			June 30, 2018									March 31, 2018									June 30, 2017
								As a									As a									As a
								% of									% of									% of
			Total					total				Total					total				Total					total
($ in millions)			balances					loans				balances					loans				balances					loans
Commercial:
Commercial and industrial			$	1,559				0.46	%			$	1,516				0.45	%			$	2,632				0.79	%
Real estate mortgage			765					0.62				755					0.60				630					0.48
Real estate construction			51					0.22				45					0.19				34					0.13
Lease financing			80					0.41				93					0.48				89					0.46
Total commercial			2,455					0.49				2,409					0.48				3,385					0.67
Consumer:
Real estate 1-4 family first mortgage			3,829					1.35				4,053					1.43				4,413					1.60
Real estate 1-4 family junior lien mortgage			1,029					2.82				1,087					2.87				1,095					2.56
Automobile			119					0.25				117					0.24				104					0.18
Other revolving credit and installment			54					0.14				53					0.14				59					0.15
Total consumer			5,031					1.14				5,310					1.20				5,671					1.26
Total nonaccrual loans			7,486					0.79				7,719					0.81				9,056					0.95
Foreclosed assets:
Government insured/guaranteed			90									103									149
Non-government insured/guaranteed			409									468									632
Total foreclosed assets			499									571									781
Total nonperforming assets			$	7,985				0.85	%			$	8,290				0.88	%			$	9,837				1.03	%
Change from prior quarter:
Total nonaccrual loans			$	(233	)							$	(317	)							$	(625	)
Total nonperforming assets			(305		)							(388		)							(827		)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $11.1 billion at June 30, 2018, down $203 million from March 31, 2018. Second quarter 2018 included a $150 million reserve release², which reflected strong overall credit portfolio performance and lower loan balances. The allowance coverage for total loans was 1.18 percent, compared with 1.19 percent in first quarter 2018. The allowance covered 4.6 times annualized second quarter net charge-offs, compared with 3.8 times in the prior quarter. The allowance coverage for nonaccrual loans was 148 percent at June 30, 2018, compared with 147 percent at March 31, 2018. The Company believes the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2018.

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
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2018				2018			2017
Community Banking			$	2,496			1,913			2,765
Wholesale Banking			2,635				2,875			2,742
Wealth and Investment Management			445				714			711

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
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2018				2018			2017
Total revenue			$	11,806			11,830			11,955
Provision for credit losses			484				218			623
Noninterest expense			7,290				8,702			7,266
Segment net income			2,496				1,913			2,765
(in billions)
Average loans			463.8				470.5			475.1
Average assets			1,034.3				1,061.9			1,083.6
Average deposits			760.6				747.5			727.7

Community Banking reported net income of $2.5 billion, up $583 million, or 30 percent, from first quarter 2018. Second quarter 2018 results included net discrete income tax expense of $481 million primarily related to state income taxes. Revenue in the second quarter was $11.8 billion, flat compared with first quarter 2018, as lower market sensitive revenue and mortgage banking income were largely offset by higher net interest income and card fees. Noninterest expense decreased $1.4 billion, or 16 percent, from first quarter 2018, driven mainly by lower operating losses and lower personnel expense that was down from a seasonally elevated first quarter. The provision for credit losses increased $266 million from the prior quarter primarily due to a lower reserve release.

Net income was down $269 million, or 10 percent, from second quarter 2017, primarily due to lower revenue and net discrete income tax expense of $481 million in second quarter 2018. Revenue declined $149 million, or 1 percent, from a year ago due to lower mortgage banking income and service charges on deposit accounts, partially offset by higher net interest income and higher gains on the sales of PCI Pick-a-Pay mortgage loans. Noninterest expense of $7.3 billion was stable from a year ago. The provision for credit losses decreased $139 million from a year ago due to improvement in the consumer real estate and automobile portfolios.

Retail Banking and Consumer Payments, Virtual Solutions and Innovation

• More than 362,000 branch customer experience surveys completed during second quarter 2018, with both ‘Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ scores down due to several factors, including recent events and a risk-based policy change affecting individuals making cash deposits into an account on which they are not a signer
• 5,751 retail bank branches as of the end of second quarter 2018, reflecting 56 branch consolidations in the quarter and 114 in the first half of 2018; additionally, we announced plans to divest 52 branches in 2018 in Indiana, Ohio, Michigan and part of Wisconsin pending regulatory approval
• Primary consumer checking customers^6,7 up 1.2 percent year-over-year
• Debit card point-of-sale purchase volume⁸ of $87.5 billion in the second quarter, up 9 percent year-over-year
• General purpose credit card point-of-sale purchase volume of $19.2 billion in the second quarter, up 7 percent year-over-year
• 28.9 million digital (online and mobile) active customers, including over 22 million mobile active users^7,9
• Dynatrace's Small Business Banking Scorecard named Wells Fargo #1 in overall performance for providing a positive small business banking experience through digital channels (July 2018)
• For the second year in a row, Wells Fargo was number one in Nilson’s annual ranking of the top 50 U.S. debit card issuers, receiving the top ranking by both purchase volume and number of transactions (April 2018)

Consumer Lending

• Home Lending

• Originations of $50 billion, up from $43 billion in prior quarter, primarily due to seasonality
• Applications of $67 billion, up from $58 billion in prior quarter, primarily due to seasonality
• Application pipeline of $26 billion at quarter end, up from $24 billion at March 31, 2018
• Production margin on residential held-for-sale mortgage loan originations⁴ of 0.77 percent, down from 0.94 percent in the prior quarter, due to increased price competition

• Automobile originations of $4.4 billion in the second quarter were flat compared with the prior quarter; and down 3 percent from the 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
			Jun 30,					Mar 31,				Jun 30,
(in millions)			2018					2018				2017
Total revenue			$	7,197				7,279				7,479
Reversal of provision for credit losses			(36		)			(20	)			(65	)
Noninterest expense			4,219					3,978				4,036
Segment net income			2,635					2,875				2,742
(in billions)
Average loans			464.7					465.1				466.9
Average assets			826.4					829.2				818.8
Average deposits			414.0					446.0				462.4

Wholesale Banking reported net income of $2.6 billion, down $240 million, or 8 percent, from first quarter 2018. Revenue of $7.2 billion decreased $82 million, or 1 percent, from the prior quarter, primarily due to the gain on the sale of Wells Fargo Shareowner Services recognized in the first quarter and lower market sensitive revenue in the second quarter, partially offset by higher net interest income and investment banking fees. Noninterest expense increased $241 million, or 6 percent, from the prior quarter reflecting higher operating losses and higher regulatory, risk and technology expense, partially offset by seasonally lower personnel expense. Second quarter 2018 operating losses were $208 million and included $171 million of non-litigation expense related to our foreign exchange business. The provision for credit losses decreased $16 million from the prior quarter.

Net income decreased $107 million, or 4 percent, from second quarter 2017. Second quarter 2018 results benefited from a lower effective income tax rate, while second quarter 2017 included a discrete income tax benefit related to the sale of Wells Fargo Insurance Services USA (WFIS). Revenue decreased $282 million, or 4 percent, from second quarter 2017, primarily due to the impact of the sales of WFIS in fourth quarter 2017 and Wells Fargo Shareowner Services in first quarter 2018, as well as lower net interest income, operating lease income and mortgage banking fees, partially offset by higher market sensitive revenue. Noninterest expense increased $183 million, or 5 percent, from a year ago as higher operating losses and higher regulatory, risk and technology expense were partially offset by lower expense related to the sales of WFIS and Wells Fargo Shareowner Services. The provision for credit losses increased $29 million from a year ago.

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 clients’ 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
			Jun 30,					Mar 31,				Jun 30,
(in millions)			2018					2018				2017
Total revenue			$	3,951				4,242				4,226
Provision (reversal of provision) for credit losses			(2		)			(6	)			7
Noninterest expense			3,361					3,290				3,071
Segment net income			445					714				711
(in billions)
Average loans			74.7					73.9				71.7
Average assets			84.0					84.2				82.4
Average deposits			167.1					177.9				190.1

Wealth and Investment Management reported net income of $445 million, down $269 million, or 38 percent, from first quarter 2018. Revenue of $4.0 billion decreased $291 million, or 7 percent, from the prior quarter, primarily due to the impairment from the announced sale of WFAM's ownership stake in RockCreek, as well as lower transaction revenue and asset-based fees. Noninterest expense increased $71 million, or 2 percent, from the prior quarter, primarily driven by higher operating losses and higher regulatory, risk and technology expense, partially offset by lower personnel expense from a seasonally higher first quarter and lower broker commissions. Second quarter 2018 operating losses were $127 million and included $114 million of non-litigation expense related to fee calculations within certain fiduciary and custody accounts in our wealth management business.

Net income was down $266 million, or 37 percent, from second quarter 2017. Second quarter 2018 results benefited from a lower effective income tax rate. Revenue decreased $275 million from a year ago, primarily driven by the impairment of WFAM's ownership stake in RockCreek, lower net interest income and transaction revenue, partially offset by higher asset-based fees. Noninterest expense increased $290 million, or 9 percent, from a year ago, primarily due to higher regulatory, risk and technology expense, higher operating losses, higher broker commissions and other personnel expense.

• WIM total client assets of $1.9 trillion, up 3 percent from a year ago, driven by higher market valuations
• Continued loan growth, with average balances up 4 percent from a year ago largely due to growth in non-conforming mortgage loans
• Second quarter 2018 average closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) were flat compared with the prior quarter and down 5 percent from a year ago

Retail Brokerage

• Client assets of $1.6 trillion, up 3 percent from prior year
• Advisory assets of $543 billion, up 8 percent from prior year, primarily driven by higher market valuations

Wealth Management

• Client assets of $238 billion, up 1 percent from prior year

Asset Management

• Total assets under management of $494 billion, up 2 percent from prior year, driven by higher market valuations and positive money market net inflows, partially offset by equity and fixed income net outflows

Retirement

• IRA assets of $403 billion, up 3 percent from prior year
• Institutional Retirement plan assets of $389 billion, up 4 percent from prior year

Conference Call

The Company will host a live conference call on Friday, July 13, 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~9092328.

A replay of the conference call will be available beginning at 10:00 a.m. PT (1:00 p.m. ET) on Friday, July 13 through Friday, July 27. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #9092328. 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~9092328.

End Notes

¹ Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities 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 36.

² 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.

³ Market sensitive revenue represents net gains from trading activities, debt securities, and equity securities.

⁴ 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 42 for more information.

⁵ See table on page 37 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.

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 May 2018, comparisons with May 2017.

⁸ Combined consumer and business debit card purchase volume dollars.

⁹ 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, return on equity, and return on tangible common 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;
• 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 debt securities and equity securities portfolios;
• 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;
• resolution of regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
• 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, 2017.

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, 2017, 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.

Forward-looking Non-GAAP Financial Measures. From time to time management may discuss forward-looking non-GAAP financial measures, such as forward-looking estimates or targets for return on average tangible common equity. We are unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures because we are unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant to future results.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 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 8,050 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 38 countries and territories to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018 rankings of America’s largest corporations.

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
			Pages
Summary Information
Summary Financial Data			17
Income
Consolidated Statement of Income			19
Consolidated Statement of Comprehensive Income			21
Condensed Consolidated Statement of Changes in Total Equity			21
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			22
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			24
Noninterest Income and Noninterest Expense			25
Balance Sheet
Consolidated Balance Sheet			27
Trading Activities			29
Debt Securities			29
Equity Securities			30
Loans
Loans			31
Nonperforming Assets			32
Loans 90 Days or More Past Due and Still Accruing			32
Purchased Credit-Impaired Loans			33
Changes in Allowance for Credit Losses			35
Equity
Tangible Common Equity			36
Common Equity Tier 1 Under Basel III			37
Operating Segments
Operating Segment Results			38
Other
Mortgage Servicing and other related data			40

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
																% Change
			Quarter ended													Jun 30, 2018 from								Six months ended
($ in millions, except per share			Jun 30,					Mar 31,				Jun 30,				Mar 31,				Jun 30,				Jun 30,					Jun 30,				%
amounts)			2018					2018				2017				2018				2017				2018					2017				Change
For the Period
Wells Fargo net income			$	5,186				5,136				5,856				1	%			(11	)			$	10,322				11,490				(10	)%
Wells Fargo net income applicable to common stock			4,792					4,733				5,450				1				(12	)			9,525					10,683				(11	)
Diluted earnings per common share			0.98					0.96				1.08				2				(9	)			1.94					2.11				(8	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.10		%			1.09				1.22				1				(10	)			1.10		%			1.20				(8	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			10.60					10.58				12.06				—				(12	)			10.59					12.01				(12	)
Return on average tangible common equity (ROTCE)(1)			12.62					12.62				14.41				—				(12	)			12.62					14.38				(12	)
Efficiency ratio (2)			64.9					68.6				60.9				(5	)			7				66.7					61.4				9
Total revenue			$	21,553				21,934				22,235				(2	)			(3	)			$	43,487				44,490				(2	)
Pre-tax pre-provision profit (PTPP) (3)			7,571					6,892				8,694				10				(13	)			14,463					17,157				(16	)
Dividends declared per common share			0.39					0.39				0.38				—				3				0.78					0.760				3
Average common shares outstanding			4,865.8					4,885.7				4,989.9				—				(2	)			4,875.7					4,999.2				(2	)
Diluted average common shares outstanding			4,899.8					4,930.7				5,037.7				(1	)			(3	)			4,916.1					5,054.8				(3	)
Average loans			$	944,079				951,024				956,879				(1	)			(1	)			$	947,532				960,243				(1	)
Average assets			1,884,884					1,915,896				1,927,021				(2	)			(2	)			1,900,304					1,929,020				(1	)
Average total deposits			1,271,339					1,297,178				1,301,195				(2	)			(2	)			1,284,187					1,300,198				(1	)
Average consumer and small business banking deposits (4)			754,047					755,483				760,149				—				(1	)			754,898					759,455				(1	)
Net interest margin			2.93		%			2.84				2.90				3				1				2.89		%			2.89				—
At Period End
Debt securities (5)			$	475,495				472,968				462,890				1				3				$	475,495				462,890				3
Loans			944,265					947,308				957,423				—				(1	)			944,265					957,423				(1	)
Allowance for loan losses			10,193					10,373				11,073				(2	)			(8	)			10,193					11,073				(8	)
Goodwill			26,429					26,445				26,573				—				(1	)			26,429					26,573				(1	)
Equity securities (5)			57,505					58,935				55,742				(2	)			3				57,505					55,742				3
Assets			1,879,700					1,915,388				1,930,792				(2	)			(3	)			1,879,700					1,930,792				(3	)
Deposits			1,268,864					1,303,689				1,305,830				(3	)			(3	)			1,268,864					1,305,830				(3	)
Common stockholders' equity			181,386					181,150				181,233				—				—				181,386					181,233				—
Wells Fargo stockholders’ equity			205,188					204,952				205,034				—				—				205,188					205,034				—
Total equity			206,069					205,910				205,949				—				—				206,069					205,949				—
Tangible common equity (1)			152,580					151,878				151,868				—				—				152,580					151,868				—
Common shares outstanding			4,849.1					4,873.9				4,966.8				(1	)			(2	)			4,849.1					4,966.8				(2	)
Book value per common share (6)			$	37.41				37.17				36.49				1				3				$	37.41				36.49				3
Tangible book value per common share (1)(6)			31.47					31.16				30.58				1				3				31.47					30.58				3
Common stock price:
High			57.12					66.31				56.60				(14	)			1				66.31					59.99				11
Low			50.26					50.70				50.84				(1	)			(1	)			50.26					50.84				(1	)
Period end			55.44					52.41				55.41				6				—				55.44					55.41				—
Team members (active, full-time equivalent)			264,500					265,700				270,600				—				(2	)			264,500					270,600				(2	)
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities 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 36.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) 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.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Financial information for the prior periods of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of Accounting Standards Update (ASU) 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(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
			Jun 30,					Mar 31,				Dec 31,				Sep 30,			Jun 30,
($ in millions, except per share amounts)			2018					2018				2017				2017			2017
For the Quarter
Wells Fargo net income			$	5,186				5,136				6,151				4,542			5,856
Wells Fargo net income applicable to common stock			4,792					4,733				5,740				4,131			5,450
Diluted earnings per common share			0.98					0.96				1.16				0.83			1.08
Profitability ratios (annualized) :
Wells Fargo net income to average assets (ROA)			1.10		%			1.09				1.26				0.93			1.22
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			10.60					10.58				12.47				8.96			12.06
Return on average tangible common equity (ROTCE)(1)			12.62					12.62				14.85				10.66			14.41
Efficiency ratio (2)			64.9					68.6				76.2				65.7			60.9
Total revenue			$	21,553				21,934				22,050				21,849			22,235
Pre-tax pre-provision profit (PTPP) (3)			7,571					6,892				5,250				7,498			8,694
Dividends declared per common share			0.39					0.39				0.39				0.39			0.38
Average common shares outstanding			4,865.8					4,885.7				4,912.5				4,948.6			4,989.9
Diluted average common shares outstanding			4,899.8					4,930.7				4,963.1				4,996.8			5,037.7
Average loans			$	944,079				951,024				951,822				952,343			956,879
Average assets			1,884,884					1,915,896				1,935,318				1,938,461			1,927,021
Average total deposits			1,271,339					1,297,178				1,311,592				1,306,356			1,301,195
Average consumer and small business banking deposits (4)			754,047					755,483				757,541				755,094			760,149
Net interest margin			2.93		%			2.84				2.84				2.86			2.90
At Quarter End
Debt securities (5)			$	475,495				472,968				473,366				474,710			462,890
Loans			944,265					947,308				956,770				951,873			957,423
Allowance for loan losses			10,193					10,373				11,004				11,078			11,073
Goodwill			26,429					26,445				26,587				26,581			26,573
Equity securities (5)			57,505					58,935				62,497				54,981			55,742
Assets			1,879,700					1,915,388				1,951,757				1,934,880			1,930,792
Deposits			1,268,864					1,303,689				1,335,991				1,306,706			1,305,830
Common stockholders' equity			181,386					181,150				183,134				181,920			181,233
Wells Fargo stockholders’ equity			205,188					204,952				206,936				205,722			205,034
Total equity			206,069					205,910				208,079				206,617			205,949
Tangible common equity (1)			152,580					151,878				153,730				152,694			151,868
Common shares outstanding			4,849.1					4,873.9				4,891.6				4,927.9			4,966.8
Book value per common share (6)			$	37.41				37.17				37.44				36.92			36.49
Tangible book value per common share (1)(6)			31.47					31.16				31.43				30.99			30.58
Common stock price:
High			57.12					66.31				62.24				56.45			56.60
Low			50.26					50.70				52.84				49.28			50.84
Period end			55.44					52.41				60.67				55.15			55.41
Team members (active, full-time equivalent)			264,500					265,700				262,700				268,000			270,600
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities 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 36.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) 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.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(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 June 30,									%				Six months ended June 30,									%
(in millions, except per share amounts)			2018					2017				Change				2018					2017				Change
Interest income
Debt securities (1)			$	3,594				3,226				11	%			$	7,008				6,399				10	%
Mortgages held for sale			198					191				4				377					373				1
Loans held for sale (1)			48					13				269				72					23				213
Loans			10,912					10,358				5				21,491					20,499				5
Equity securities (1)			221					199				11				452					374				21
Other interest income (1)			1,042					707				47				1,962					1,239				58
Total interest income			16,015					14,694				9				31,362					28,907				8
Interest expense
Deposits			1,268					677				87				2,358					1,213				94
Short-term borrowings			398					163				144				709					277				156
Long-term debt			1,658					1,275				30				3,234					2,422				34
Other interest expense			150					108				39				282					200				41
Total interest expense			3,474					2,223				56				6,583					4,112				60
Net interest income			12,541					12,471				1				24,779					24,795				—
Provision for credit losses			452					555				(19	)			643					1,160				(45	)
Net interest income after provision for credit losses			12,089					11,916				1				24,136					23,635				2
Noninterest income
Service charges on deposit accounts			1,163					1,276				(9	)			2,336					2,589				(10	)
Trust and investment fees			3,675					3,629				1				7,358					7,199				2
Card fees			1,001					1,019				(2	)			1,909					1,964				(3	)
Other fees			846					902				(6	)			1,646					1,767				(7	)
Mortgage banking			770					1,148				(33	)			1,704					2,376				(28	)
Insurance			102					280				(64	)			216					557				(61	)
Net gains from trading activities (1)			191					151				26				434					423				3
Net gains on debt securities			41					120				(66	)			42					156				(73	)
Net gains from equity securities (1)			295					274				8				1,078					844				28
Lease income			443					493				(10	)			898					974				(8	)
Other			485					472				3				1,087					846				28
Total noninterest income			9,012					9,764				(8	)			18,708					19,695				(5	)
Noninterest expense
Salaries			4,465					4,343				3				8,828					8,604				3
Commission and incentive compensation			2,642					2,499				6				5,410					5,224				4
Employee benefits			1,245					1,308				(5	)			2,843					2,994				(5	)
Equipment			550					529				4				1,167					1,106				6
Net occupancy			722					706				2				1,435					1,418				1
Core deposit and other intangibles			265					287				(8	)			530					576				(8	)
FDIC and other deposit assessments			297					328				(9	)			621					661				(6	)
Other			3,796					3,541				7				8,190					6,750				21
Total noninterest expense			13,982					13,541				3				29,024					27,333				6
Income before income tax expense			7,119					8,139				(13	)			13,820					15,997				(14	)
Income tax expense			1,810					2,245				(19	)			3,184					4,378				(27	)
Net income before noncontrolling interests			5,309					5,894				(10	)			10,636					11,619				(8	)
Less: Net income from noncontrolling interests			123					38				224				314					129				143
Wells Fargo net income			$	5,186				5,856				(11	)			$	10,322				11,490				(10	)
Less: Preferred stock dividends and other			394					406				(3	)			797					807				(1	)
Wells Fargo net income applicable to common stock			$	4,792				5,450				(12	)			$	9,525				10,683				(11	)
Per share information
Earnings per common share			$	0.98				1.09				(10	)			$	1.95				2.14				(9	)
Diluted earnings per common share			0.98					1.08				(9	)			1.94					2.11				(8	)
Dividends declared per common share			0.39					0.38				3				0.78					0.76				3
Average common shares outstanding			4,865.8					4,989.9				(2	)			4,875.7					4,999.2				(2	)
Diluted average common shares outstanding			4,899.8					5,037.7				(3	)			4,916.1					5,054.8				(3	)
(1) Financial information for the prior periods of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions, except per share amounts)			2018					2018				2017				2017				2017
Interest income
Debt securities (1)			$	3,594				3,414				3,294				3,253				3,226
Mortgages held for sale			198					179				196				217				191
Loans held for sale (1)			48					24				12				15				13
Loans			10,912					10,579				10,367				10,522				10,358
Equity securities (1)			221					231				239				186				199
Other interest income (1)			1,042					920				850				851				707
Total interest income			16,015					15,347				14,958				15,044				14,694
Interest expense
Deposits			1,268					1,090				931				869				677
Short-term borrowings			398					311				255				226				163
Long-term debt			1,658					1,576				1,344				1,391				1,275
Other interest expense			150					132				115				109				108
Total interest expense			3,474					3,109				2,645				2,595				2,223
Net interest income			12,541					12,238				12,313				12,449				12,471
Provision for credit losses			452					191				651				717				555
Net interest income after provision for credit losses			12,089					12,047				11,662				11,732				11,916
Noninterest income
Service charges on deposit accounts			1,163					1,173				1,246				1,276				1,276
Trust and investment fees			3,675					3,683				3,687				3,609				3,629
Card fees			1,001					908				996				1,000				1,019
Other fees			846					800				913				877				902
Mortgage banking			770					934				928				1,046				1,148
Insurance			102					114				223				269				280
Net gains (losses) from trading activities (1)			191					243				(1	)			120				151
Net gains on debt securities			41					1				157				166				120
Net gains from equity securities (1)			295					783				572				363				274
Lease income			443					455				458				475				493
Other			485					602				558				199				472
Total noninterest income			9,012					9,696				9,737				9,400				9,764
Noninterest expense
Salaries			4,465					4,363				4,403				4,356				4,343
Commission and incentive compensation			2,642					2,768				2,665				2,553				2,499
Employee benefits			1,245					1,598				1,293				1,279				1,308
Equipment			550					617				608				523				529
Net occupancy			722					713				715				716				706
Core deposit and other intangibles			265					265				288				288				287
FDIC and other deposit assessments			297					324				312				314				328
Other			3,796					4,394				6,516				4,322				3,541
Total noninterest expense			13,982					15,042				16,800				14,351				13,541
Income before income tax expense			7,119					6,701				4,599				6,781				8,139
Income tax expense (benefit)			1,810					1,374				(1,642	)			2,181				2,245
Net income before noncontrolling interests			5,309					5,327				6,241				4,600				5,894
Less: Net income from noncontrolling interests			123					191				90				58				38
Wells Fargo net income			$	5,186				5,136				6,151				4,542				5,856
Less: Preferred stock dividends and other			394					403				411				411				406
Wells Fargo net income applicable to common stock			$	4,792				4,733				5,740				4,131				5,450
Per share information
Earnings per common share			$	0.98				0.97				1.17				0.83				1.09
Diluted earnings per common share			0.98					0.96				1.16				0.83				1.08
Dividends declared per common share			0.39					0.39				0.39				0.39				0.38
Average common shares outstanding			4,865.8					4,885.7				4,912.5				4,948.6				4,989.9
Diluted average common shares outstanding			4,899.8					4,930.7				4,963.1				4,996.8				5,037.7
(1) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Quarter ended June 30,									%			Six months ended June 30,									%
(in millions)			2018					2017				Change			2018					2017				Change
Wells Fargo net income			$	5,186				5,856				(11)%			$	10,322				11,490				(10)%
Other comprehensive income (loss), before tax:
Debt securities (1):
Net unrealized gains (losses) arising during the period			(617		)			1,565				NM			(4,060		)			1,934				NM
Reclassification of net (gains) losses to net income			49					(177	)			NM			117					(322	)			NM
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period			(150		)			276				NM			(392		)			(86	)			356
Reclassification of net (gains) losses to net income			77					(153	)			NM			137					(355	)			NM
Defined benefit plans adjustments:
Net actuarial and prior service gains (losses) arising during the period			—					—				—			6					(7	)			NM
Amortization of net actuarial loss, settlements and other to net income			29					41				(29)			61					79				(23)
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period			(83		)			31				NM			(85		)			47				NM
Other comprehensive income (loss), before tax			(695		)			1,583				NM			(4,216		)			1,290				NM
Income tax benefit (expense) related to other comprehensive income			154					(587	)			NM			1,016					(464	)			NM
Other comprehensive income (loss), net of tax			(541		)			996				NM			(3,200		)			826				NM
Less: Other comprehensive income (loss) from noncontrolling interests			(1		)			(9	)			(89)			(1		)			5				NM
Wells Fargo other comprehensive income (loss), net of tax			(540		)			1,005				NM			(3,199		)			821				NM
Wells Fargo comprehensive income			4,646					6,861				(32)			7,123					12,311				(42)
Comprehensive income from noncontrolling interests			122					29				321			313					134				134
Total comprehensive income			$	4,768				6,890				(31)			$	7,436				12,445				(40)
NM – Not meaningful
(1) The quarter and six months ended June 30, 2017, includes net unrealized gains (losses) arising during the period from equity securities of $65 million and $126 million and reclassification of net (gains) losses to net income related to equity securities of $(101) million and $(217) million, respectively. With the adoption in first quarter 2018 of ASU 2016-01, the quarter and six months ended June 30, 2018, reflects net unrealized (gains) losses arising during the period and reclassification of net (gains) losses to net income from only debt securities.

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Balance, beginning of period			$	205,910				208,079				206,617				205,949				202,310
Cumulative effect from change in accounting policies (1)			—					(24	)			—				—				—
Wells Fargo net income			5,186					5,136				6,151				4,542				5,856
Wells Fargo other comprehensive income (loss), net of tax			(540		)			(2,659	)			(522	)			526				1,005
Noncontrolling interests			(77		)			(178	)			247				(20	)			(75	)
Common stock issued			73					1,208				436				254				252
Common stock repurchased (2)			(2,923		)			(3,029	)			(2,845	)			(2,601	)			(2,287	)
Preferred stock released by ESOP			490					231				218				209				406
Common stock warrants repurchased/exercised			(1		)			(157	)			(46	)			(19	)			(24	)
Preferred stock issued			—					—				—				—				677
Common stock dividends			(1,900		)			(1,911	)			(1,920	)			(1,936	)			(1,899	)
Preferred stock dividends			(394		)			(410	)			(411	)			(411	)			(406	)
Stock incentive compensation expense			258					437				206				135				145
Net change in deferred compensation and related plans			(13		)			(813	)			(52	)			(11	)			(11	)
Balance, end of period			$	206,069				205,910				208,079				206,617				205,949
(1) The cumulative effect for the quarter ended March 31, 2018, reflects the impact of the adoption in first quarter 2018 of ASU 2016-04, ASU 2016-01 and ASU 2014-09.
(2) For the quarter ended June 30, 2018, includes $1.0 billion related to a private forward repurchase transaction expected to settle in third quarter 2018.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Quarter ended June 30,
			2018														2017
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Interest-earning deposits with banks (3)			$	154,846				1.75	%			$	676				204,541				1.03	%			$	523
Federal funds sold and securities purchased under resale agreements (3)			80,020					1.73				344					77,078				0.91				175
Debt securities (4):
Trading debt securities (8)			80,661					3.45				695					70,411				3.24				570
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies			6,425					1.66				27					18,099				1.53				69
Securities of U.S. states and political subdivisions (7)			47,388					3.91				464					53,492				3.89				521
Mortgage-backed securities:
Federal agencies			154,929					2.75				1,065					132,032				2.63				868
Residential and commercial			8,248					4.86				101					12,586				5.55				175
Total mortgage-backed securities			163,177					2.86				1,166					144,618				2.89				1,043
Other debt securities (8)			47,009					4.33				506					48,466				3.77				457
Total available-for-sale debt securities (7)(8)			263,999					3.28				2,163					264,675				3.16				2,090
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies			44,731					2.19				244					44,701				2.19				244
Securities of U.S. states and political subdivisions			6,255					4.34				68					6,270				5.29				83
Federal agency and other mortgage-backed securities			94,964					2.33				552					83,116				2.44				507
Other debt securities			584					4.66				7					2,798				2.34				16
Total held-to-maturity debt securities			146,534					2.38				871					136,885				2.49				850
Total debt securities (7)(8)			491,194					3.04				3,729					471,971				2.98				3,510
Mortgages held for sale (5)(7)			18,788					4.22				198					19,758				3.87				191
Loans held for sale (5)(8)			3,481					5.48				48					1,476				3.65				13
Commercial loans:
Commercial and industrial - U.S.			275,259					4.16				2,851					273,073				3.70				2,521
Commercial and industrial - Non U.S.			59,716					3.51				524					56,426				2.86				402
Real estate mortgage			123,982					4.27				1,319					131,293				3.68				1,206
Real estate construction			23,637					4.88				287					25,271				4.10				259
Lease financing			19,266					4.48				216					19,058				4.82				230
Total commercial loans			501,860					4.15				5,197					505,121				3.67				4,618
Consumer loans:
Real estate 1-4 family first mortgage			283,101					4.06				2,870					275,108				4.08				2,805
Real estate 1-4 family junior lien mortgage			37,249					5.32				495					43,602				4.78				521
Credit card			35,883					12.66				1,133					34,868				12.18				1,059
Automobile			48,568					5.18				628					59,112				5.43				800
Other revolving credit and installment			37,418					6.62				617					39,068				6.13				596
Total consumer loans			442,219					5.20				5,743					451,758				5.13				5,781
Total loans (5)			944,079					4.64				10,940					956,879				4.36				10,399
Equity securities (8)			37,330					2.38				222					36,604				2.24				205
Other (8)			5,518					1.48				21					4,400				0.70				8
Total earning assets (7)(8)			$	1,735,256				3.73	%			$	16,178				1,772,707				3.40	%			$	15,024
Funding sources
Deposits:
Interest-bearing checking			$	80,324				0.90	%			$	181				48,465				0.41	%			$	50
Market rate and other savings			676,668					0.26				434					683,014				0.13				214
Savings certificates			20,033					0.43				21					22,599				0.30				17
Other time deposits (7)			82,061					2.26				465					57,158				1.39				197
Deposits in foreign offices			51,474					1.30				167					123,684				0.65				199
Total interest-bearing deposits (7)			910,560					0.56				1,268					934,920				0.29				677
Short-term borrowings			103,795					1.54				398					95,763				0.69				164
Long-term debt (7)			223,800					2.97				1,658					249,889				2.04				1,274
Other liabilities			28,202					2.12				150					20,981				2.05				108
Total interest-bearing liabilities (7)			1,266,357					1.10				3,474					1,301,553				0.68				2,223
Portion of noninterest-bearing funding sources (7)(8)			468,899					—				—					471,154				—				—
Total funding sources (7)(8)			$	1,735,256				0.80				3,474					1,772,707				0.50				2,223
Net interest margin and net interest income on a taxable-equivalent basis (6)(7)								2.93	%			$	12,704								2.90	%			$	12,801
Noninterest-earning assets
Cash and due from banks			$	18,609													18,171
Goodwill			26,444														26,664
Other (7)(8)			104,575														109,479
Total noninterest-earning assets (7)(8)			$	149,628													154,314
Noninterest-bearing funding sources
Deposits			$	360,779													366,275
Other liabilities (7)			51,681														53,438
Total equity (7)			206,067														205,755
Noninterest-bearing funding sources used to fund earning assets (7)(8)			(468,899		)												(471,154	)
Net noninterest-bearing funding sources (7)(8)			$	149,628													154,314
Total assets (7)			$	1,884,884													1,927,021
(1) Our average prime rate was 4.80% and 4.05% for the quarters ended June 30, 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.34% and 1.21% 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) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) 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.
(5) Nonaccrual loans and related income are included in their respective loan categories.
(6) Includes taxable-equivalent adjustments of $163 million and $330 million for the quarters ended June 30, 2018 and 2017, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 21% and 35% for the quarters ended June 30, 2018 and 2017, respectively.
(7) Financial information for the prior period has been revised to reflect the impact of the adoption in fourth quarter 2017 of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
(8) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Six months ended June 30,
			2018														2017
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Interest-earning deposits with banks (3)			$	163,520				1.61	%			$	1,308				206,503				0.91	%			$	928
Federal funds sold and securities purchased under resale agreements (3)			79,083					1.57				615					76,184				0.80				302
Debt securities (4):
Trading debt securities (8)			79,693					3.35				1,332					69,769				3.14				1,093
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies			6,426					1.66				53					21,547				1.53				164
Securities of U.S. states and political subdivisions (7)			48,665					3.64				885					52,873				3.91				1,034
Mortgage-backed securities:
Federal agencies			156,690					2.73				2,141					144,257				2.61				1,879
Residential and commercial (7)			8,558					4.48				192					13,514				5.44				368
Total mortgage-backed securities (7)			165,248					2.82				2,333					157,771				2.85				2,247
Other debt securities (7)(8)			47,549					4.02				950					49,303				3.69				904
Total available-for-sale debt securities (7)(8)			267,888					3.16				4,221					281,494				3.09				4,349
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies			44,727					2.20				487					44,697				2.20				487
Securities of U.S. states and political subdivisions			6,257					4.34				136					6,271				5.30				166
Federal agency and other mortgage-backed securities			92,888					2.35				1,093					67,538				2.46				831
Other debt securities			639					3.89				12					3,062				2.34				35
Total held-to-maturity debt securities			144,511					2.40				1,728					121,568				2.51				1,519
Total debt securities (7)(8)			492,092					2.96				7,281					472,831				2.95				6,961
Mortgages held for sale (5)(7)			18,598					4.06				377					19,825				3.77				373
Loans held for sale (5)(8)			2,750					5.28				72					1,538				3.05				23
Commercial loans:
Commercial and industrial - U.S.			273,658					4.00				5,435					273,905				3.65				4,957
Commercial and industrial - Non U.S.			59,964					3.37				1,003					55,890				2.80				775
Real estate mortgage			125,085					4.16				2,581					131,868				3.62				2,370
Real estate construction			24,041					4.70				561					24,933				3.91				484
Lease financing			19,266					4.89				471					19,064				4.88				465
Total commercial loans			502,014					4.03				10,051					505,660				3.61				9,051
Consumer loans:
Real estate 1-4 family first mortgage			283,651					4.04				5,722					275,293				4.05				5,571
Real estate 1-4 family junior lien mortgage			38,042					5.23				988					44,439				4.69				1,036
Credit card			36,174					12.71				2,280					35,151				12.07				2,105
Automobile			50,010					5.17				1,283					60,304				5.45				1,628
Other revolving credit and installment			37,641					6.54				1,221					39,396				6.07				1,186
Total consumer loans			445,518					5.18				11,494					454,583				5.09				11,526
Total loans (5)			947,532					4.57				21,545					960,243				4.31				20,577
Equity securities (8)			38,536					2.37				455					35,272				2.18				384
Other (8)			5,765					1.34				40					2,213				0.70				8
Total earning assets (7)(8)			$	1,747,876				3.64	%			$	31,693				1,774,609				3.36	%			$	29,556
Funding sources
Deposits:
Interest-bearing checking			$	74,084				0.84	%			$	310				49,569				0.35	%			$	87
Market rate and other savings			677,861					0.24				802					683,591				0.11				371
Savings certificates			20,025					0.38				38					23,030				0.29				34
Other time deposits (7)			79,340					2.06				812					56,043				1.34				374
Deposits in foreign offices			73,023					1.09				396					122,946				0.57				347
Total interest-bearing deposits (7)			924,333					0.51				2,358					935,179				0.26				1,213
Short-term borrowings			102,793					1.39				710					97,149				0.58				279
Long-term debt (7)			224,924					2.88				3,234					254,981				1.90				2,421
Other liabilities			28,065					2.02				282					18,905				2.12				200
Total interest-bearing liabilities (7)			1,280,115					1.03				6,584					1,306,214				0.63				4,113
Portion of noninterest-bearing funding sources (7)(8)			467,761					—				—					468,395				—				—
Total funding sources (7)(8)			$	1,747,876				0.75				6,584					1,774,609				0.47				4,113
Net interest margin and net interest income on a taxable-equivalent basis (6)(7)								2.89	%			$	25,109								2.89	%			$	25,443
Noninterest-earning assets
Cash and due from banks			$	18,730													18,437
Goodwill			26,480														26,668
Other (7)(8)			107,218														109,306
Total noninterest-earning assets (7)(8)			$	152,428													154,411
Noninterest-bearing funding sources
Deposits			$	359,854													365,019
Other liabilities (7)			54,212														54,119
Total equity (7)			206,123														203,668
Noninterest-bearing funding sources used to fund earning assets (7)(8)			(467,761		)												(468,395	)
Net noninterest-bearing funding sources (7)(8)			$	152,428													154,411
Total assets (7)			$	1,900,304													1,929,020
(1) Our average prime rate was 4.66% and 3.92% for the first half of 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.13% and 1.14% 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) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) 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.
(5) Nonaccrual loans and related income are included in their respective loan categories.
(6) Includes taxable-equivalent adjustments of $330 million and $648 million for the first half of 2018 and 2017, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 21% and 35% for the first half of 2018 and 2017, respectively.
(7) Financial information for the prior period has been revised to reflect the impact of the adoption in fourth quarter 2017 of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.
(8) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Quarter ended
			Jun 30, 2018									Mar 31, 2018									Dec 31, 2017									Sep 30, 2017									Jun 30, 2017
			Average					Yields/				Average					Yields/				Average					Yields/				Average					Yields/				Average					Yields/
($ in billions)			balance					rates				balance					rates				balance					rates				balance					rates				balance					rates
Earning assets
Interest-earning deposits with banks (3)			$	154.8				1.75	%			$	172.3				1.49	%			$	189.1				1.27	%			$	205.5				1.21	%			$	204.5				1.03	%
Federal funds sold and securities purchased under resale agreements (3)			80.0					1.73				78.1					1.40				75.8					1.20				70.6					1.14				77.1					0.91
Debt securities (4):
Trading debt securities (5)			80.7					3.45				78.7					3.24				81.6					3.17				76.6					3.21				70.4					3.24
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies			6.4					1.66				6.4					1.66				6.4					1.66				14.5					1.31				18.1					1.53
Securities of U.S. states and political subdivisions			47.4					3.91				50.0					3.37				52.4					3.91				52.5					4.08				53.5					3.89
Mortgage-backed securities:
Federal agencies			154.9					2.75				158.4					2.72				152.9					2.62				139.8					2.58				132.0					2.63
Residential and commercial			8.2					4.86				8.9					4.12				9.4					4.85				11.0					5.44				12.6					5.55
Total mortgage-backed securities			163.1					2.86				167.3					2.79				162.3					2.75				150.8					2.79				144.6					2.89
Other debt securities (5)			47.1					4.33				48.1					3.73				48.6					3.62				47.7					3.73				48.5					3.77
Total available-for-sale debt securities (5)			264.0					3.28				271.8					3.04				269.7					3.10				265.5					3.13				264.7					3.16
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies			44.7					2.19				44.7					2.20				44.7					2.19				44.7					2.18				44.7					2.19
Securities of U.S. states and political subdivisions			6.3					4.34				6.3					4.34				6.3					5.26				6.3					5.44				6.3					5.29
Federal agency and other mortgage-backed securities			94.9					2.33				90.8					2.38				89.6					2.25				88.3					2.26				83.1					2.44
Other debt securities			0.6					4.66				0.7					3.23				1.2					2.64				1.4					3.05				2.8					2.34
Total held-to-maturity debt securities			146.5					2.38				142.5					2.42				141.8					2.36				140.7					2.38				136.9					2.49
Total debt securities (5)			491.2					3.04				493.0					2.89				493.1					2.90				482.8					2.93				472.0					2.98
Mortgages held for sale			18.8					4.22				18.4					3.89				20.5					3.82				22.9					3.79				19.8					3.87
Loans held for sale (5)			3.5					5.48				2.0					4.92				1.5					3.19				1.4					4.39				1.5					3.65
Commercial loans:
Commercial and industrial - U.S.			275.3					4.16				272.0					3.85				270.3					3.89				270.1					3.81				273.1					3.70
Commercial and industrial - Non U.S.			59.7					3.51				60.2					3.23				59.2					2.96				57.7					2.89				56.4					2.86
Real estate mortgage			124.0					4.27				126.2					4.05				127.2					3.88				129.1					3.83				131.3					3.68
Real estate construction			23.6					4.88				24.4					4.54				24.4					4.38				25.0					4.18				25.3					4.10
Lease financing			19.3					4.48				19.4					5.30				19.3					0.62				19.2					4.59				19.0					4.82
Total commercial loans			501.9					4.15				502.2					3.91				500.4					3.68				501.1					3.76				505.1					3.67
Consumer loans:
Real estate 1-4 family first mortgage			283.1					4.06				284.2					4.02				282.0					4.01				278.4					4.03				275.1					4.08
Real estate 1-4 family junior lien mortgage			37.2					5.32				38.8					5.13				40.4					4.96				41.9					4.95				43.6					4.78
Credit card			35.9					12.66				36.4					12.75				36.4					12.37				35.6					12.41				34.9					12.18
Automobile			48.6					5.18				51.5					5.16				54.3					5.13				56.7					5.34				59.1					5.43
Other revolving credit and installment			37.4					6.62				37.9					6.46				38.3					6.28				38.6					6.31				39.1					6.13
Total consumer loans			442.2					5.20				448.8					5.16				451.4					5.10				451.2					5.14				451.8					5.13
Total loans			944.1					4.64				951.0					4.50				951.8					4.35				952.3					4.41				956.9					4.36
Equity securities (5)			37.3					2.38				39.8					2.35				38.0					2.60				35.9					2.12				36.6					2.24
Other (5)			5.6					1.48				6.0					1.21				7.2					0.88				8.7					0.90				4.3					0.70
Total earning assets (5)			$	1,735.3				3.73	%			$	1,760.6				3.55	%			$	1,777.0				3.43	%			$	1,780.1				3.44	%			$	1,772.7				3.40	%
Funding sources
Deposits:
Interest-bearing checking			$	80.3				0.90	%			$	67.8				0.77	%			$	50.5				0.68	%			$	48.3				0.57	%			$	48.5				0.41	%
Market rate and other savings			676.7					0.26				679.1					0.22				679.9					0.19				681.2					0.17				683.0					0.13
Savings certificates			20.0					0.43				20.0					0.34				20.9					0.31				21.8					0.31				22.6					0.30
Other time deposits			82.1					2.26				76.6					1.84				68.2					1.49				66.1					1.51				57.1					1.39
Deposits in foreign offices			51.5					1.30				94.8					0.98				124.6					0.81				124.7					0.76				123.7					0.65
Total interest-bearing deposits			910.6					0.56				938.3					0.47				944.1					0.39				942.1					0.37				934.9					0.29
Short-term borrowings			103.8					1.54				101.8					1.24				102.1					0.99				99.2					0.91				95.8					0.69
Long-term debt			223.8					2.97				226.0					2.80				231.6					2.32				243.5					2.28				249.9					2.04
Other liabilities			28.2					2.12				27.9					1.92				24.7					1.86				24.8					1.74				21.0					2.05
Total interest-bearing liabilities			1,266.4					1.10				1,294.0					0.97				1,302.5					0.81				1,309.6					0.79				1,301.6					0.68
Portion of noninterest-bearing funding sources (5)			468.9					—				466.6					—				474.5					—				470.5					—				471.1					—
Total funding sources (5)			$	1,735.3				0.80				$	1,760.6				0.71				$	1,777.0				0.59				$	1,780.1				0.58				$	1,772.7				0.50
Net interest margin on a taxable-equivalent basis								2.93	%								2.84	%								2.84	%								2.86	%								2.90	%
Noninterest-earning assets
Cash and due from banks			$	18.6								18.9									19.2									18.5									18.2
Goodwill			26.4									26.5									26.6									26.6									26.7
Other (5)			104.6									109.9									112.5									113.3									109.4
Total noninterest-earnings assets (5)			$	149.6								155.3									158.3									158.4									154.3
Noninterest-bearing funding sources
Deposits			$	360.7								358.9									367.5									364.3									366.3
Other liabilities (5)			51.7									56.8									57.9									56.9									53.3
Total equity			206.1									206.2									207.4									207.7									205.8
Noninterest-bearing funding sources used to fund earning assets (5)			(468.9		)							(466.6		)							(474.5		)							(470.5		)							(471.1		)
Net noninterest-bearing funding sources (5)			$	149.6								155.3									158.3									158.4									154.3
Total assets			$	1,884.9								1,915.9									1,935.3									1,938.5									1,927.0
(1) Our average prime rate was 4.80% for the quarter ended June 30, 2018, 4.52% for the quarter ended March 31,2018, 4.30% for the quarter ended December 31, 2017, 4.25% for the quarter ended September 30, 2017 and 4.05% for the quarter ended June 30, 2017. The average three-month London Interbank Offered Rate (LIBOR) was 2.34%, 1.93%, 1.46%, 1.31% and 1.21% 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) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) 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.
(5) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
			Quarter ended June 30,									%				Six months ended June 30,									%
(in millions)			2018					2017				Change				2018					2017				Change
Service charges on deposit accounts			$	1,163				1,276				(9	)%			$	2,336				2,589				(10	)%
Trust and investment fees:
Brokerage advisory, commissions and other fees			2,354					2,329				1				4,757					4,653				2
Trust and investment management			835					837				—				1,685					1,666				1
Investment banking			486					463				5				916					880				4
Total trust and investment fees			3,675					3,629				1				7,358					7,199				2
Card fees			1,001					1,019				(2	)			1,909					1,964				(3	)
Other fees:
Charges and fees on loans			304					325				(6	)			605					632				(4	)
Cash network fees			120					134				(10	)			246					260				(5	)
Commercial real estate brokerage commissions			109					102				7				194					183				6
Letters of credit fees			72					76				(5	)			151					150				1
Wire transfer and other remittance fees			121					112				8				237					219				8
All other fees			120					153				(22	)			213					323				(34	)
Total other fees			846					902				(6	)			1,646					1,767				(7	)
Mortgage banking:
Servicing income, net			406					400				2				874					856				2
Net gains on mortgage loan origination/sales activities			364					748				(51	)			830					1,520				(45	)
Total mortgage banking			770					1,148				(33	)			1,704					2,376				(28	)
Insurance			102					280				(64	)			216					557				(61	)
Net gains from trading activities (1)			191					151				26				434					423				3
Net gains on debt securities			41					120				(66	)			42					156				(73	)
Net gains from equity securities (1)			295					274				8				1,078					844				28
Lease income			443					493				(10	)			898					974				(8	)
Life insurance investment income			162					145				12				326					289				13
All other			323					327				(1	)			761					557				37
Total			$	9,012				9,764				(8	)			$	18,708				19,695				(5	)
(1) Financial information for the prior periods has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

NONINTEREST EXPENSE
			Quarter ended June 30,									%				Six months ended June 30,									%
(in millions)			2018					2017				Change				2018					2017				Change
Salaries			$	4,465				4,343				3	%			$	8,828				8,604				3	%
Commission and incentive compensation			2,642					2,499				6				5,410					5,224				4
Employee benefits			1,245					1,308				(5	)			2,843					2,994				(5	)
Equipment			550					529				4				1,167					1,106				6
Net occupancy			722					706				2				1,435					1,418				1
Core deposit and other intangibles			265					287				(8	)			530					576				(8	)
FDIC and other deposit assessments			297					328				(9	)			621					661				(6	)
Operating losses			619					350				77				2,087					632				230
Outside professional services			881					1,029				(14	)			1,702					1,833				(7	)
Contract services (1)			536					416				29				983					813				21
Operating leases			311					334				(7	)			631					679				(7	)
Outside data processing			164					236				(31	)			326					456				(29	)
Travel and entertainment			157					171				(8	)			309					350				(12	)
Advertising and promotion			227					150				51				380					277				37
Postage, stationery and supplies			121					134				(10	)			263					279				(6	)
Telecommunications			88					91				(3	)			180					182				(1	)
Foreclosed assets			44					52				(15	)			82					138				(41	)
Insurance			24					24				—				50					48				4
All other (1)			624					554				13				1,197					1,063				13
Total			$	13,982				13,541				3				$	29,024				27,333				6
(1) The prior periods have been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Service charges on deposit accounts			$	1,163				1,173				1,246				1,276				1,276
Trust and investment fees:
Brokerage advisory, commissions and other fees			2,354					2,403				2,401				2,304				2,329
Trust and investment management			835					850				866				840				837
Investment banking			486					430				420				465				463
Total trust and investment fees			3,675					3,683				3,687				3,609				3,629
Card fees			1,001					908				996				1,000				1,019
Other fees:
Charges and fees on loans			304					301				313				318				325
Cash network fees			120					126				120				126				134
Commercial real estate brokerage commissions			109					85				159				120				102
Letters of credit fees			72					79				78				77				76
Wire transfer and other remittance fees			121					116				115				114				112
All other fees			120					93				128				122				153
Total other fees			846					800				913				877				902
Mortgage banking:
Servicing income, net			406					468				262				309				400
Net gains on mortgage loan origination/sales activities			364					466				666				737				748
Total mortgage banking			770					934				928				1,046				1,148
Insurance			102					114				223				269				280
Net gains (losses) from trading activities (1)			191					243				(1	)			120				151
Net gains on debt securities			41					1				157				166				120
Net gains from equity securities (1)			295					783				572				363				274
Lease income			443					455				458				475				493
Life insurance investment income			162					164				153				152				145
All other			323					438				405				47				327
Total			$	9,012				9,696				9,737				9,400				9,764
(1) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

FIVE QUARTER NONINTEREST EXPENSE
			Quarter ended
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Salaries			$	4,465			4,363			4,403			4,356			4,343
Commission and incentive compensation			2,642				2,768			2,665			2,553			2,499
Employee benefits			1,245				1,598			1,293			1,279			1,308
Equipment			550				617			608			523			529
Net occupancy			722				713			715			716			706
Core deposit and other intangibles			265				265			288			288			287
FDIC and other deposit assessments			297				324			312			314			328
Operating losses			619				1,468			3,531			1,329			350
Outside professional services			881				821			1,025			955			1,029
Contract services (1)			536				447			410			415			416
Operating leases			311				320			325			347			334
Outside data processing			164				162			208			227			236
Travel and entertainment			157				152			183			154			171
Advertising and promotion			227				153			200			137			150
Postage, stationery and supplies			121				142			137			128			134
Telecommunications			88				92			92			90			91
Foreclosed assets			44				38			47			66			52
Insurance			24				26			28			24			24
All other (1)			624				573			330			450			554
Total			$	13,982			15,042			16,800			14,351			13,541
(1) The prior quarters of 2017 have been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
			Jun 30,					Dec 31,				%
(in millions, except shares)			2018					2017				Change
Assets
Cash and due from banks			$	20,450				23,367				(12	)%
Interest-earning deposits with banks (1)			142,999					192,580				(26	)
Total cash, cash equivalents, and restricted cash (1)			163,449					215,947				(24	)
Federal funds sold and securities purchased under resale agreements (1)			80,184					80,025				—
Debt securities:
Trading, at fair value (2)			65,602					57,624				14
Available-for-sale, at fair value (2)			265,687					276,407				(4	)
Held-to-maturity, at cost			144,206					139,335				3
Mortgages held for sale			21,509					20,070				7
Loans held for sale (2)			3,408					1,131				201
Loans			944,265					956,770				(1	)
Allowance for loan losses			(10,193		)			(11,004	)			(7	)
Net loans			934,072					945,766				(1	)
Mortgage servicing rights:
Measured at fair value			15,411					13,625				13
Amortized			1,407					1,424				(1	)
Premises and equipment, net			8,882					8,847				—
Goodwill			26,429					26,587				(1	)
Derivative assets			11,099					12,228				(9	)
Equity securities (2)			57,505					62,497				(8	)
Other assets (2)			80,850					90,244				(10	)
Total assets			$	1,879,700				1,951,757				(4	)
Liabilities
Noninterest-bearing deposits			$	365,021				373,722				(2	)
Interest-bearing deposits			903,843					962,269				(6	)
Total deposits			1,268,864					1,335,991				(5	)
Short-term borrowings			104,496					103,256				1
Derivative liabilities			8,507					8,796				(3	)
Accrued expenses and other liabilities			72,480					70,615				3
Long-term debt			219,284					225,020				(3	)
Total liabilities			1,673,631					1,743,678				(4	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock			25,737					25,358				1
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			59,644					60,893				(2	)
Retained earnings			150,803					145,263				4
Cumulative other comprehensive income (loss)			(5,461		)			(2,144	)			155
Treasury stock – 632,743,620 shares and 590,194,846 shares			(32,620		)			(29,892	)			9
Unearned ESOP shares			(2,051		)			(1,678	)			22
Total Wells Fargo stockholders’ equity			205,188					206,936				(1	)
Noncontrolling interests			881					1,143				(23	)
Total equity			206,069					208,079				(1	)
Total liabilities and equity			$	1,879,700				1,951,757				(4	)
(1) Financial information has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(2) Financial information for the prior quarter has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Assets
Cash and due from banks			$	20,450				18,145				23,367				19,206				20,248
Interest-earning deposits with banks (1)			142,999					184,250				192,580				205,648				195,700
Total cash, cash equivalents, and restricted cash (1)			163,449					202,395				215,947				224,854				215,948
Federal funds sold and securities purchased under resale agreements (1)			80,184					73,550				80,025				67,457				69,006
Debt securities:
Trading, at fair value (2)			65,602					59,866				57,624				60,970				54,324
Available-for-sale, at fair value (2)			265,687					271,656				276,407				271,317				268,174
Held-to-maturity, at cost			144,206					141,446				139,335				142,423				140,392
Mortgages held for sale			21,509					17,944				20,070				20,009				24,807
Loans held for sale (2)			3,408					3,581				1,131				1,339				1,898
Loans			944,265					947,308				956,770				951,873				957,423
Allowance for loan losses			(10,193		)			(10,373	)			(11,004	)			(11,078	)			(11,073	)
Net loans			934,072					936,935				945,766				940,795				946,350
Mortgage servicing rights:
Measured at fair value			15,411					15,041				13,625				13,338				12,789
Amortized			1,407					1,411				1,424				1,406				1,399
Premises and equipment, net			8,882					8,828				8,847				8,449				8,403
Goodwill			26,429					26,445				26,587				26,581				26,573
Derivative assets			11,099					11,467				12,228				12,580				13,273
Equity securities (2)			57,505					58,935				62,497				54,981				55,742
Other assets (2)			80,850					85,888				90,244				88,381				91,714
Total assets			$	1,879,700				1,915,388				1,951,757				1,934,880				1,930,792
Liabilities
Noninterest-bearing deposits			$	365,021				370,085				373,722				366,528				372,766
Interest-bearing deposits			903,843					933,604				962,269				940,178				933,064
Total deposits			1,268,864					1,303,689				1,335,991				1,306,706				1,305,830
Short-term borrowings			104,496					97,207				103,256				93,811				95,356
Derivative liabilities			8,507					7,883				8,796				9,497				11,636
Accrued expenses and other liabilities			72,480					73,397				70,615				78,993				72,799
Long-term debt			219,284					227,302				225,020				239,256				239,222
Total liabilities			1,673,631					1,709,478				1,743,678				1,728,263				1,724,843
Equity
Wells Fargo stockholders’ equity:
Preferred stock			25,737					26,227				25,358				25,576				25,785
Common stock			9,136					9,136				9,136				9,136				9,136
Additional paid-in capital			59,644					60,399				60,893				60,759				60,689
Retained earnings			150,803					147,928				145,263				141,549				139,366
Cumulative other comprehensive income (loss)			(5,461		)			(4,921	)			(2,144	)			(1,622	)			(2,148	)
Treasury stock			(32,620		)			(31,246	)			(29,892	)			(27,772	)			(25,675	)
Unearned ESOP shares			(2,051		)			(2,571	)			(1,678	)			(1,904	)			(2,119	)
Total Wells Fargo stockholders’ equity			205,188					204,952				206,936				205,722				205,034
Noncontrolling interests			881					958				1,143				895				915
Total equity			206,069					205,910				208,079				206,617				205,949
Total liabilities and equity			$	1,879,700				1,915,388				1,951,757				1,934,880				1,930,792
(1) Financial information has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(2) Financial information for prior quarters has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER TRADING ASSETS AND LIABILITIES
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Trading assets
Debt securities			$	65,602				59,866				57,624				60,970				54,324
Equity securities (1)			22,978					25,327				30,004				22,797				24,229
Loans held for sale			1,350					1,695				1,023				1,182				1,742
Gross trading derivative assets			30,758					30,644				31,340				31,052				31,451
Netting (2)			(20,687		)			(20,112	)			(19,629	)			(18,881	)			(19,289	)
Total trading derivative assets			10,071					10,532				11,711				12,171				12,162
Total trading assets			100,001					97,420				100,362				97,120				92,457
Trading liabilities
Short sales			21,765					23,303				18,472				19,096				16,845
Gross trading derivative liabilities			29,847					29,717				31,386				30,365				31,172
Netting (2)			(22,311		)			(22,569	)			(23,062	)			(21,662	)			(20,544	)
Total trading derivative liabilities			7,536					7,148				8,324				8,703				10,628
Total trading liabilities			$	29,301				30,451				26,796				27,799				27,473
(1) Financial information for the prior quarters of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 and assets held as economic hedges for our deferred compensation plan obligations have been reclassified as marketable equity securities not held for trading.
(2) Represents balance sheet netting for trading derivative assets and liability balances, and trading portfolio level counterparty valuation adjustments.

FIVE QUARTER DEBT SECURITIES
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Trading debt securities			$	65,602			59,866			57,624			60,970			54,324
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies			6,271				6,279			6,319			6,350			17,896
Securities of U.S. states and political subdivisions			47,559				49,643			51,326			52,774			52,013
Mortgage-backed securities:
Federal agencies			154,556				156,814			160,219			150,181			135,938
Residential and commercial			8,286				9,264			9,173			11,046			12,772
Total mortgage-backed securities			162,842				166,078			169,392			161,227			148,710
Other debt securities			49,015				49,656			49,370			50,966			49,555
Total available-for-sale debt securities			265,687				271,656			276,407			271,317			268,174
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies			44,735				44,727			44,720			44,712			44,704
Securities of U.S. states and political subdivisions			6,300				6,307			6,313			6,321			6,325
Federal agency and other mortgage-backed securities (1)			93,016				89,748			87,527			90,071			87,525
Other debt securities			155				664			775			1,319			1,838
Total held-to-maturity debt securities			144,206				141,446			139,335			142,423			140,392
Total debt securities			$	475,495			472,968			473,366			474,710			462,890
(1) Predominantly consists of federal agency mortgage-backed securities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER EQUITY SECURITIES
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Held for trading at fair value
Marketable equity securities			$	22,978			25,327			30,004			22,797			24,229
Not held for trading:
Fair value:
Marketable equity securities (1)			5,273				4,931			4,356			4,348			4,340
Nonmarketable equity securities (2)			5,876				5,303			4,867			4,523			3,986
Total equity securities at fair value			11,149				10,234			9,223			8,871			8,326
Equity method:
LIHTC (3)			10,361				10,318			10,269			9,884			9,828
Private equity			3,732				3,840			3,839			3,757			3,740
Tax-advantaged renewable energy			1,950				1,822			1,950			1,954			1,960
New market tax credit and other			262				268			294			292			295
Total equity method			16,305				16,248			16,352			15,887			15,823
Other:
Federal bank stock and other at cost (4)			5,673				5,780			5,828			6,251			6,247
Private equity (5)			1,400				1,346			1,090			1,175			1,117
Total equity securities not held for trading			34,527				33,608			32,493			32,184			31,513
Total equity securities			$	57,505			58,935			62,497			54,981			55,742
(1) Includes $3.5 billion, $3.5 billion, $3.7 billion, $3.5 billion and $3.3 billion at June 30 and March 31, 2018, and December 31, September 30, and June 30, 2017, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.
(2) Includes $5.5 billion, $5.0 billion, $4.9 billion, $4.5 billion and $4.0 billion at June 30 and March 31, 2018, and December 31, September 30, and June 30, 2017, respectively, related to investments in which we elected the fair value option.
(3) Represents low-income housing tax credit investments.
(4) Includes $5.6 billion, $5.7 billion, $5.4 billion, $5.8 billion and $5.8 billion at June 30 and March 31, 2018, and December 31, September 30, and June 30, 2017, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.
(5) Represents nonmarketable equity securities for which we have elected to account for the security under the measurement alternative.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Commercial:
Commercial and industrial			$	336,590			334,678			333,125			327,944			331,113
Real estate mortgage			123,964				125,543			126,599			128,475			130,277
Real estate construction			22,937				23,882			24,279			24,520			25,337
Lease financing			19,614				19,293			19,385			19,211			19,174
Total commercial			503,105				503,396			503,388			500,150			505,901
Consumer:
Real estate 1-4 family first mortgage			283,001				282,658			284,054			280,173			276,566
Real estate 1-4 family junior lien mortgage			36,542				37,920			39,713			41,152			42,747
Credit card			36,684				36,103			37,976			36,249			35,305
Automobile			47,632				49,554			53,371			55,455			57,958
Other revolving credit and installment			37,301				37,677			38,268			38,694			38,946
Total consumer			441,160				443,912			453,382			451,723			451,522
Total loans (1)			$	944,265			947,308			956,770			951,873			957,423
(1) Includes $9.0 billion, $10.7 billion, $12.8 billion, $13.6 billion, and $14.3 billion of purchased credit-impaired (PCI) loans at June 30 and March 31, 2018, and December 31, September 30 and June 30, 2017, respectively.

Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.

			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Commercial foreign loans:
Commercial and industrial			$	61,732			59,696			60,106			58,570			57,825
Real estate mortgage			7,617				8,082			8,033			8,032			8,359
Real estate construction			542				668			655			647			585
Lease financing			1,097				1,077			1,126			1,141			1,092
Total commercial foreign loans			$	70,988			69,523			69,920			68,390			67,861

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Nonaccrual loans:
Commercial:
Commercial and industrial			$	1,559				1,516				1,899				2,397				2,632
Real estate mortgage			765					755				628				593				630
Real estate construction			51					45				37				38				34
Lease financing			80					93				76				81				89
Total commercial			2,455					2,409				2,640				3,109				3,385
Consumer:
Real estate 1-4 family first mortgage			3,829					4,053				4,122				4,213				4,413
Real estate 1-4 family junior lien mortgage			1,029					1,087				1,086				1,101				1,095
Automobile			119					117				130				137				104
Other revolving credit and installment			54					53				58				59				59
Total consumer			5,031					5,310				5,396				5,510				5,671
Total nonaccrual loans (1)(2)(3)			$	7,486				7,719				8,036				8,619				9,056
As a percentage of total loans			0.79		%			0.81				0.84				0.91				0.95
Foreclosed assets:
Government insured/guaranteed			$	90				103				120				137				149
Non-government insured/guaranteed			409					468				522				569				632
Total foreclosed assets			499					571				642				706				781
Total nonperforming assets			$	7,985				8,290				8,678				9,325				9,837
As a percentage of total loans			0.85		%			0.88				0.91				0.98				1.03
(1) Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) are not placed on nonaccrual status because they are insured or guaranteed.

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2018				2018			2017			2017			2017
Total (excluding PCI)(1):			$	9,464			10,753			11,997			10,227			9,716
Less: FHA insured/guaranteed by the VA (2)(3)			8,622				9,786			10,934			9,266			8,873
Total, not government insured/guaranteed			$	842			967			1,063			961			843
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial			$	23			40			26			27			42
Real estate mortgage			26				23			23			11			2
Real estate construction			—				1			—			—			10
Total commercial			49				64			49			38			54
Consumer:
Real estate 1-4 family first mortgage (3)			133				164			219			190			145
Real estate 1-4 family junior lien mortgage (3)			33				48			60			49			44
Credit card			429				473			492			475			411
Automobile			105				113			143			111			91
Other revolving credit and installment			93				105			100			98			98
Total consumer			793				903			1,014			923			789
Total, not government insured/guaranteed			$	842			967			1,063			961			843
(1) PCI loans totaled $811 million, $1.0 billion, $1.4 billion, $1.4 billion and $1.5 billion, at June 30 and March 31, 2018, and December 31, September 30 and June 30, 2017, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and still accruing.

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominantly represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.

As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.

The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:

• Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
• Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
• Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.

The change in the accretable yield related to PCI loans since the merger with Wachovia is presented in the following table.

			Quarter					Six months
			ended					ended
			June 30,					June 30,
(in millions)			2018					2018				2009-2017
Balance, beginning of period			$	6,864				8,887				10,447
Change in accretable yield due to acquisitions			—					—				161
Accretion into interest income (1)			(299		)			(613	)			(16,983	)
Accretion into noninterest income due to sales (2)			(479		)			(1,122	)			(801	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)			59					399				11,597
Changes in expected cash flows that do not affect nonaccretable difference (4)			(412		)			(1,818	)			4,466
Balance, end of period			$	5,733				5,733				8,887
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) At June 30, 2018, our carrying value for PCI loans totaled $9.0 billion and the remainder of nonaccretable difference established in purchase accounting totaled $313 million. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.
(4) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended June 30,									Six months ended June 30,
(in millions)			2018					2017				2018				2017
Balance, beginning of period			$	11,313				12,287				11,960				12,540
Provision for credit losses			452					555				643				1,160
Interest income on certain impaired loans (1)			(43		)			(46	)			(86	)			(94	)
Loan charge-offs:
Commercial:
Commercial and industrial			(134		)			(161	)			(298	)			(414	)
Real estate mortgage			(19		)			(8	)			(21	)			(13	)
Real estate construction			—					—				—				—
Lease financing			(20		)			(13	)			(37	)			(20	)
Total commercial			(173		)			(182	)			(356	)			(447	)
Consumer:
Real estate 1-4 family first mortgage			(55		)			(55	)			(96	)			(124	)
Real estate 1-4 family junior lien mortgage			(47		)			(62	)			(94	)			(155	)
Credit card			(404		)			(379	)			(809	)			(746	)
Automobile			(216		)			(212	)			(516	)			(467	)
Other revolving credit and installment			(164		)			(185	)			(344	)			(374	)
Total consumer			(886		)			(893	)			(1,859	)			(1,866	)
Total loan charge-offs			(1,059		)			(1,075	)			(2,215	)			(2,313	)
Loan recoveries:
Commercial:
Commercial and industrial			76					83				155				165
Real estate mortgage			19					14				36				44
Real estate construction			6					4				10				12
Lease financing			5					6				10				8
Total commercial			106					107				211				229
Consumer:
Real estate 1-4 family first mortgage			78					71				137				133
Real estate 1-4 family junior lien mortgage			60					66				115				136
Credit card			81					59				154				117
Automobile			103					86				195				174
Other revolving credit and installment			29					31				60				64
Total consumer			351					313				661				624
Total loan recoveries			457					420				872				853
Net loan charge-offs			(602		)			(655	)			(1,343	)			(1,460	)
Other			(10		)			5				(64	)			—
Balance, end of period			$	11,110				12,146				11,110				12,146
Components:
Allowance for loan losses			$	10,193				11,073				10,193				11,073
Allowance for unfunded credit commitments			917					1,073				917				1,073
Allowance for credit losses			$	11,110				12,146				11,110				12,146
Net loan charge-offs (annualized) as a percentage of average total loans			0.26		%			0.27				0.29				0.31
Allowance for loan losses as a percentage of total loans			1.08					1.16				1.08				1.16
Allowance for credit losses as a percentage of total loans			1.18					1.27				1.18				1.27
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Balance, beginning of quarter			$	11,313				11,960				12,109				12,146				12,287
Provision for credit losses			452					191				651				717				555
Interest income on certain impaired loans (1)			(43		)			(43	)			(49	)			(43	)			(46	)
Loan charge-offs:
Commercial:
Commercial and industrial			(134		)			(164	)			(181	)			(194	)			(161	)
Real estate mortgage			(19		)			(2	)			(4	)			(21	)			(8	)
Real estate construction			—					—				—				—				—
Lease financing			(20		)			(17	)			(14	)			(11	)			(13	)
Total commercial			(173		)			(183	)			(199	)			(226	)			(182	)
Consumer:
Real estate 1-4 family first mortgage			(55		)			(41	)			(49	)			(67	)			(55	)
Real estate 1-4 family junior lien mortgage			(47		)			(47	)			(54	)			(70	)			(62	)
Credit card			(404		)			(405	)			(398	)			(337	)			(379	)
Automobile			(216		)			(300	)			(261	)			(274	)			(212	)
Other revolving credit and installment			(164		)			(180	)			(169	)			(170	)			(185	)
Total consumer			(886		)			(973	)			(931	)			(918	)			(893	)
Total loan charge-offs			(1,059		)			(1,156	)			(1,130	)			(1,144	)			(1,075	)
Loan recoveries:
Commercial:
Commercial and industrial			76					79				63				69				83
Real estate mortgage			19					17				14				24				14
Real estate construction			6					4				3				15				4
Lease financing			5					5				4				5				6
Total commercial			106					105				84				113				107
Consumer:
Real estate 1-4 family first mortgage			78					59				72				83				71
Real estate 1-4 family junior lien mortgage			60					55				61				69				66
Credit card			81					73				62				60				59
Automobile			103					92				73				72				86
Other revolving credit and installment			29					31				27				30				31
Total consumer			351					310				295				314				313
Total loan recoveries			457					415				379				427				420
Net loan charge-offs			(602		)			(741	)			(751	)			(717	)			(655	)
Other			(10		)			(54	)			—				6				5
Balance, end of quarter			$	11,110				11,313				11,960				12,109				12,146
Components:
Allowance for loan losses			$	10,193				10,373				11,004				11,078				11,073
Allowance for unfunded credit commitments			917					940				956				1,031				1,073
Allowance for credit losses			$	11,110				11,313				11,960				12,109				12,146
Net loan charge-offs (annualized) as a percentage of average total loans			0.26		%			0.32				0.31				0.30				0.27
Allowance for loan losses as a percentage of:
Total loans			1.08					1.10				1.15				1.16				1.16
Nonaccrual loans			136					134				137				129				122
Nonaccrual loans and other nonperforming assets			128					125				127				119				113
Allowance for credit losses as a percentage of:
Total loans			1.18					1.19				1.25				1.27				1.27
Nonaccrual loans			148					147				149				141				134
Nonaccrual loans and other nonperforming assets			139					136				138				130				123
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions, except ratios)						2018					2018				2017				2017				2017
Tangible book value per common share (1):
Total equity						$	206,069				205,910				208,079				206,617				205,949
Adjustments:
Preferred stock						(25,737		)			(26,227	)			(25,358	)			(25,576	)			(25,785	)
Additional paid-in capital on ESOP preferred stock						(116		)			(146	)			(122	)			(130	)			(136	)
Unearned ESOP shares						2,051					2,571				1,678				1,904				2,119
Noncontrolling interests						(881		)			(958	)			(1,143	)			(895	)			(915	)
Total common stockholders' equity			(A)			181,386					181,150				183,134				181,920				181,232
Adjustments:
Goodwill						(26,429		)			(26,445	)			(26,587	)			(26,581	)			(26,573	)
Certain identifiable intangible assets (other than MSRs)						(1,091		)			(1,357	)			(1,624	)			(1,913	)			(2,147	)
Other assets (2)						(2,160		)			(2,388	)			(2,155	)			(2,282	)			(2,268	)
Applicable deferred taxes (3)						874					918				962				1,550				1,624
Tangible common equity			(B)			$	152,580				151,878				153,730				152,694				151,868
Common shares outstanding			(C)			4,849.1					4,873.9				4,891.6				4,927.9				4,966.8
Book value per common share			(A)/(C)			$	37.41				37.17				37.44				36.92				36.49
Tangible book value per common share			(B)/(C)			31.47					31.16				31.43				30.99				30.58

						Quarter ended																						Six months ended
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,					Jun 30,				Jun 30,
(in millions, except ratios)						2018					2018				2017				2017				2017					2018				2017
Return on average tangible common equity (1):
Net income applicable to common stock			(A)			$	4,792				4,733				5,740				4,131				5,450					9,525				10,683
Average total equity						206,067					206,180				207,413				207,723				205,755					206,123				203,668
Adjustments:
Preferred stock						(26,021		)			(26,157	)			(25,569	)			(25,780	)			(25,849	)				(26,089	)			(25,508	)
Additional paid-in capital on ESOP preferred stock						(129		)			(153	)			(129	)			(136	)			(144	)				(141	)			(145	)
Unearned ESOP shares						2,348					2,508				1,896				2,114				2,366					2,428				2,282
Noncontrolling interests						(919		)			(997	)			(998	)			(926	)			(910	)				(958	)			(934	)
Average common stockholders’ equity			(B)			181,346					181,381				182,613				182,995				181,218					181,363				179,363
Adjustments:
Goodwill						(26,444		)			(26,516	)			(26,579	)			(26,600	)			(26,664	)				(26,480	)			(26,668	)
Certain identifiable intangible assets (other than MSRs)						(1,223		)			(1,489	)			(1,767	)			(2,056	)			(2,303	)				(1,355	)			(2,445	)
Other assets (2)						(2,271		)			(2,233	)			(2,245	)			(2,231	)			(2,160	)				(2,252	)			(2,128	)
Applicable deferred taxes (3)						889					933				1,332				1,579				1,648					911				1,685
Average tangible common equity			(C)			$	152,297				152,076				153,354				153,687				151,739					152,187				149,807
Return on average common stockholders' equity (ROE) (annualized)			(A)/(B)			10.60		%			10.58				12.47				8.96				12.06					10.59				12.01
Return on average tangible common equity (ROTCE) (annualized)			(A)/(C)			12.62					12.62				14.85				10.66				14.41					12.62				14.38
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
						Estimated
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in billions, except ratio)						2018					2018				2017				2017				2017
Total equity						$	206.1				205.9				208.1				206.6				205.9
Adjustments:
Preferred stock						(25.7		)			(26.2	)			(25.4	)			(25.6	)			(25.8	)
Additional paid-in capital on ESOP preferred stock						(0.1		)			(0.1	)			(0.1	)			(0.1	)			(0.1	)
Unearned ESOP shares						2.0					2.6				1.7				1.9				2.1
Noncontrolling interests						(0.9		)			(1.0	)			(1.1	)			(0.9	)			(0.9	)
Total common stockholders' equity						181.4					181.2				183.2				181.9				181.2
Adjustments:
Goodwill						(26.4		)			(26.4	)			(26.6	)			(26.6	)			(26.6	)
Certain identifiable intangible assets (other than MSRs)						(1.1		)			(1.4	)			(1.6	)			(1.9	)			(2.1	)
Other assets (2)						(2.2		)			(2.4	)			(2.2	)			(2.3	)			(2.2	)
Applicable deferred taxes (3)						0.9					0.9				1.0				1.6				1.6
Investment in certain subsidiaries and other						0.4					0.4				0.2				(0.1	)			(0.2	)
Common Equity Tier 1 (Fully Phased-In) under Basel III			(A)			153.0					152.3				154.0				152.6				151.7
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)			(B)			$	1,279.7				1,278.1				1,285.6				1,292.8				1,310.5
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)			(A)/(B)			12.0		%			11.9				12.0				11.8				11.6
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs, became fully phased-in.
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
(4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of June 30, 2018, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for March 31, 2018, and December 31, September 30 and June 30, 2017, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s June 30, 2018, RWAs and capital ratio are preliminary estimates.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
(income/expense in millions, average balances in billions)			Community Banking									Wholesale Banking								Wealth and Investment Management								Other (2)								Consolidated Company
			2018					2017				2018				2017				2018				2017				2018				2017				2018				2017
Quarter ended June 30,
Net interest income (3)			$	7,346				7,133				4,693				4,809				1,111				1,171				(609	)			(642	)			12,541				12,471
Provision (reversal of provision) for credit losses			484					623				(36	)			(65	)			(2	)			7				6				(10	)			452				555
Noninterest income			4,460					4,822				2,504				2,670				2,840				3,055				(792	)			(783	)			9,012				9,764
Noninterest expense			7,290					7,266				4,219				4,036				3,361				3,071				(888	)			(832	)			13,982				13,541
Income (loss) before income tax expense (benefit)			4,032					4,066				3,014				3,508				592				1,148				(519	)			(583	)			7,119				8,139
Income tax expense (benefit)			1,413					1,255				379				775				147				436				(129	)			(221	)			1,810				2,245
Net income (loss) before noncontrolling interests			2,619					2,811				2,635				2,733				445				712				(390	)			(362	)			5,309				5,894
Less: Net income (loss) from noncontrolling interests			123					46				—				(9	)			—				1				—				—				123				38
Net income (loss)			$	2,496				2,765				2,635				2,742				445				711				(390	)			(362	)			5,186				5,856
Average loans			$	463.8				475.1				464.7				466.9				74.7				71.7				(59.1	)			(56.8	)			944.1				956.9
Average assets			1,034.3					1,083.6				826.4				818.8				84.0				82.4				(59.8	)			(57.8	)			1,884.9				1,927.0
Average deposits			760.6					727.7				414.0				462.4				167.1				190.1				(70.4	)			(79.0	)			1,271.3				1,301.2
Six months ended June 30,
Net interest income (3)			$	14,541				14,265				9,225				9,490				2,223				2,312				(1,210	)			(1,272	)			24,779				24,795
Provision (reversal of provision) for credit losses			702					1,269				(56	)			(108	)			(8	)			3				5				(4	)			643				1,160
Noninterest income			9,095					9,513				5,251				5,566				5,970				6,171				(1,608	)			(1,555	)			18,708				19,695
Noninterest expense			15,992					14,547				8,197				8,203				6,651				6,275				(1,816	)			(1,692	)			29,024				27,333
Income (loss) before income tax expense (benefit)			6,942					7,962				6,335				6,961				1,550				2,205				(1,007	)			(1,131	)			13,820				15,997
Income tax expense (benefit)			2,222					2,237				827				1,748				386				822				(251	)			(429	)			3,184				4,378
Net income (loss) before noncontrolling interests			4,720					5,725				5,508				5,213				1,164				1,383				(756	)			(702	)			10,636				11,619
Less: Net income (loss) from noncontrolling interests			311					136				(2	)			(14	)			5				7				—				—				314				129
Net income (loss)			$	4,409				5,589				5,510				5,227				1,159				1,376				(756	)			(702	)			10,322				11,490
Average loans			$	467.1				477.9				464.9				467.6				74.3				71.2				(58.8	)			(56.5	)			947.5				960.2
Average assets			1,048.0					1,089.7				827.8				814.7				84.1				82.1				(59.6	)			(57.5	)			1,900.3				1,929.0
Average deposits			754.1					722.8				429.9				463.8				172.5				193.8				(72.3	)			(80.2	)			1,284.2				1,300.2
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective first quarter 2018, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on a more granular level. This methodology change affects results across all three of our reportable operating segments and results for all periods prior to 2018 have been revised to reflect this methodology change. Our previously reported consolidated financial results were not impacted by the methodology change; however, in connection with the adoption of ASU 2016-01 in first quarter 2018, certain reclassifications occurred within noninterest income.
(2) Includes the elimination of certain items that are included in more than one business segment, most of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
(3) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
																Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(income/expense in millions, average balances in billions)			2018					2018				2017				2017				2017
COMMUNITY BANKING
Net interest income (2)			$	7,346				7,195				7,239				7,154				7,133
Provision for credit losses			484					218				636				650				623
Noninterest income			4,460					4,635				4,481				4,366				4,822
Noninterest expense			7,290					8,702				10,216				7,852				7,266
Income before income tax expense			4,032					2,910				868				3,018				4,066
Income tax expense (benefit)			1,413					809				(2,682	)			1,079				1,255
Net income before noncontrolling interests			2,619					2,101				3,550				1,939				2,811
Less: Net income from noncontrolling interests			123					188				78				62				46
Segment net income			$	2,496				1,913				3,472				1,877				2,765
Average loans			$	463.8				470.5				473.2				473.7				475.1
Average assets			1,034.3					1,061.9				1,073.2				1,089.6				1,083.6
Average deposits			760.6					747.5				738.3				734.6				727.7
WHOLESALE BANKING
Net interest income (2)			$	4,693				4,532				4,557				4,763				4,809
Provision (reversal of provision) for credit losses			(36		)			(20	)			20				69				(65	)
Noninterest income			2,504					2,747				2,883				2,741				2,670
Noninterest expense			4,219					3,978				4,187				4,234				4,036
Income before income tax expense			3,014					3,321				3,233				3,201				3,508
Income tax expense			379					448				854				894				775
Net income before noncontrolling interests			2,635					2,873				2,379				2,307				2,733
Less: Net income (loss) from noncontrolling interests			—					(2	)			6				(7	)			(9	)
Segment net income			$	2,635				2,875				2,373				2,314				2,742
Average loans			$	464.7				465.1				463.5				463.7				466.9
Average assets			826.4					829.2				837.2				824.2				818.8
Average deposits			414.0					446.0				465.7				463.4				462.4
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)			$	1,111				1,112				1,152				1,177				1,171
Provision (reversal of provision) for credit losses			(2		)			(6	)			(7	)			(1	)			7
Noninterest income			2,840					3,130				3,181				3,079				3,055
Noninterest expense			3,361					3,290				3,246				3,102				3,071
Income before income tax expense			592					958				1,094				1,155				1,148
Income tax expense			147					239				413				433				436
Net income before noncontrolling interests			445					719				681				722				712
Less: Net income from noncontrolling interests			—					5				6				3				1
Segment net income			$	445				714				675				719				711
Average loans			$	74.7				73.9				72.9				72.4				71.7
Average assets			84.0					84.2				83.7				83.2				82.4
Average deposits			167.1					177.9				184.1				184.4				190.1
OTHER (3)
Net interest income (2)			$	(609	)			(601	)			(635	)			(645	)			(642	)
Provision (reversal of provision) for credit losses			6					(1	)			2				(1	)			(10	)
Noninterest income			(792		)			(816	)			(808	)			(786	)			(783	)
Noninterest expense			(888		)			(928	)			(849	)			(837	)			(832	)
Loss before income tax benefit			(519		)			(488	)			(596	)			(593	)			(583	)
Income tax benefit			(129		)			(122	)			(227	)			(225	)			(221	)
Net loss before noncontrolling interests			(390		)			(366	)			(369	)			(368	)			(362	)
Less: Net income from noncontrolling interests			—					—				—				—				—
Other net loss			$	(390	)			(366	)			(369	)			(368	)			(362	)
Average loans			$	(59.1	)			(58.5	)			(57.8	)			(57.5	)			(56.8	)
Average assets			(59.8		)			(59.4	)			(58.8	)			(58.5	)			(57.8	)
Average deposits			(70.4		)			(74.2	)			(76.5	)			(76.0	)			(79.0	)
CONSOLIDATED COMPANY
Net interest income (2)			$	12,541				12,238				12,313				12,449				12,471
Provision for credit losses			452					191				651				717				555
Noninterest income			9,012					9,696				9,737				9,400				9,764
Noninterest expense			13,982					15,042				16,800				14,351				13,541
Income before income tax expense			7,119					6,701				4,599				6,781				8,139
Income tax expense (benefit)			1,810					1,374				(1,642	)			2,181				2,245
Net income before noncontrolling interests			5,309					5,327				6,241				4,600				5,894
Less: Net income from noncontrolling interests			123					191				90				58				38
Wells Fargo net income			$	5,186				5,136				6,151				4,542				5,856
Average loans			$	944.1				951.0				951.8				952.3				956.9
Average assets			1,884.9					1,915.9				1,935.3				1,938.5				1,927.0
Average deposits			1,271.3					1,297.2				1,311.6				1,306.4				1,301.2
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective first quarter 2018, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on a more granular level. This methodology change affects results across all three of our reportable operating segments and results for all periods prior to 2018 have been revised to reflect this methodology change. Our previously reported consolidated financial results were not impacted by the methodology change; however, in connection with the adoption of ASU 2016-01 in first quarter 2018, certain reclassifications occurred within noninterest income.
(2) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
(3) Includes the elimination of certain items that are included in more than one business segment, most of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
MSRs measured using the fair value method:
Fair value, beginning of quarter			$	15,041				13,625				13,338				12,789				13,208
Purchases			—					—				—				541				—
Servicing from securitizations or asset transfers (1)			486					573				639				605				436
Sales and other (2)			(1		)			(4	)			(32	)			64				(8	)
Net additions			485					569				607				1,210				428
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)			376					1,253				221				(171	)			(305	)
Servicing and foreclosure costs (4)			30					34				23				60				(14	)
Discount rates (5)			—					—				13				—				—
Prepayment estimates and other (6)			(61		)			43				(55	)			(31	)			(41	)
Net changes in valuation model inputs or assumptions			345					1,330				202				(142	)			(360	)
Changes due to collection/realization of expected cash flows over time			(460		)			(483	)			(522	)			(519	)			(487	)
Total changes in fair value			(115		)			847				(320	)			(661	)			(847	)
Fair value, end of quarter			$	15,411				15,041				13,625				13,338				12,789
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios or portfolios with servicing liabilities.
(3) Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates.
(6) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.

			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Amortized MSRs:
Balance, beginning of quarter			$	1,411				1,424				1,406				1,399				1,402
Purchases			22					18				40				31				26
Servicing from securitizations or asset transfers			39					34				43				41				37
Amortization			(65		)			(65	)			(65	)			(65	)			(66	)
Balance, end of quarter			$	1,407				1,411				1,424				1,406				1,399
Fair value of amortized MSRs:
Beginning of quarter			$	2,307				2,025				1,990				1,989				2,051
End of quarter			2,309					2,307				2,025				1,990				1,989

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
						Quarter ended
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)						2018					2018				2017				2017				2017
Servicing income, net:
Servicing fees (1)						$	905				906				833				795				882
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)			(A)			345					1,330				202				(142	)			(360	)
Changes due to collection/realization of expected cash flows over time						(460		)			(483	)			(522	)			(519	)			(487	)
Total changes in fair value of MSRs carried at fair value						(115		)			847				(320	)			(661	)			(847	)
Amortization						(65		)			(65	)			(65	)			(65	)			(66	)
Net derivative gains (losses) from economic hedges (3)			(B)			(319		)			(1,220	)			(186	)			240				431
Total servicing income, net						$	406				468				262				309				400
Market-related valuation changes to MSRs, net of hedge results (2)(3)			(A)+(B)			$	26				110				16				98				71
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues, net of unreimbursed direct servicing costs.
(2) Refer to the changes in fair value MSRs table on the previous page for more detail.
(3) Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs.

			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in billions)			2018					2018				2017				2017				2017
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others			$	1,190				1,201				1,209				1,223				1,189
Owned loans serviced			340					337				342				340				343
Subserviced for others			4					5				3				3				4
Total residential servicing			1,534					1,543				1,554				1,566				1,536
Commercial mortgage servicing:
Serviced for others			518					510				495				480				475
Owned loans serviced			124					125				127				128				130
Subserviced for others			10					10				9				8				8
Total commercial servicing			652					645				631				616				613
Total managed servicing portfolio			$	2,186				2,188				2,185				2,182				2,149
Total serviced for others			$	1,708				1,711				1,704				1,703				1,664
Ratio of MSRs to related loans serviced for others			0.98		%			0.96				0.88				0.87				0.85
Weighted-average note rate (mortgage loans serviced for others)			4.27					4.24				4.23				4.23				4.23
(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
						Quarter ended
						Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
						2018					2018				2017				2017				2017
Net gains on mortgage loan origination/sales activities (in millions):
Residential			(A)			$	281				324				504				546				521
Commercial						49					76				95				81				81
Residential pipeline and unsold/repurchased loan management (1)						34					66				67				110				146
Total						$	364				466				666				737				748
Application data (in billions):
Wells Fargo first mortgage quarterly applications						$	67				58				63				73				83
Refinances as a percentage of applications						25		%			35				38				37				32
Wells Fargo first mortgage unclosed pipeline, at quarter end						$	26				24				23				29				34
Residential real estate originations:
Purchases as a percentage of originations						78		%			65				64				72				75
Refinances as a percentage of originations						22					35				36				28				25
Total						100		%			100				100				100				100
Wells Fargo first mortgage loans (in billions):
Retail						$	21				16				23				26				25
Correspondent						28					27				30				32				31
Other (2)						1					—				—				1				—
Total quarter-to-date						$	50				43				53				59				56
Held-for-sale			(B)			$	37				34				40				44				42
Held-for-investment						13					9				13				15				14
Total quarter-to-date						$	50				43				53				59				56
Total year-to-date						$	93				43				212				159				100
Production margin on residential held-for-sale mortgage originations			(A)/(B)			0.77		%			0.94				1.25				1.24				1.24
(1) Predominantly includes the results of sales of modified Government National Mortgage Association (GNMA) loans, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.

CHANGES IN MORTGAGE REPURCHASE LIABILITY
			Quarter ended
			Jun 30,					Mar 31,				Dec 31,				Sep 30,				Jun 30,
(in millions)			2018					2018				2017				2017				2017
Balance, beginning of period			$	181				181				179				178				222
Assumed with MSR purchases (1)			—					—				—				10				—
Provision for repurchase losses:
Loan sales			4					3				4				6				6
Change in estimate (2)			(2		)			1				2				(12	)			(45	)
Net additions (reductions) to provision			2					4				6				(6	)			(39	)
Losses			(4		)			(4	)			(4	)			(3	)			(5	)
Balance, end of period			$	179				181				181				179				178
(1) Represents repurchase liability associated with portfolio of loans underlying mortgage servicing rights acquired during the period.
(2) Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.