SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE:WFC):

• Financial results:
  • Net income of $6.0 billion, compared with $4.5 billion in third quarter 2017
  • Diluted earnings per share (EPS) of $1.13, compared with $0.83
    • Third quarter 2018 included the redemption of our Series J Preferred Stock, which reduced diluted EPS by $0.03 per share
  • Revenue of $21.9 billion, up from $21.8 billion
    • Net interest income of $12.6 billion, up $123 million, or 1 percent
    • Noninterest income of $9.4 billion, down $31 million
  • Noninterest expense of $13.8 billion, down $588 million, or 4 percent
  • Average deposits of $1.3 trillion, down $40.0 billion, or 3 percent
  • Average loans of $939.5 billion, down $12.9 billion, or 1 percent
  • Return on assets (ROA) of 1.27 percent, return on equity (ROE) of 12.04 percent, and return on average tangible common equity (ROTCE) of 14.33 percent¹

• Credit quality:
  • Provision expense of $580 million, down $137 million, or 19 percent, from third quarter 2017
    • Net charge-offs decreased $37 million to $680 million, or 0.29 percent of average loans (annualized)
    • Reserve release² of $100 million
  • Nonaccrual loans of $7.1 billion, down $1.6 billion, or 18 percent

• Strong capital position while returning more capital to shareholders:.
  • Common Equity Tier 1 ratio (fully phased-in) of 11.9 percent³
  • Returned $8.9 billion to shareholders through common stock dividends and net share repurchases, which more than doubled from $4.0 billion in third quarter 2017
    • Net share repurchases of $6.8 billion, which more than tripled from $2.0 billion
    • Period-end common shares outstanding down 216.3 million shares, or 4 percent
    • Quarterly common stock dividend of $0.43 per share, up 10 percent from $0.39 per share

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 September 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
		Sep 30,				Jun 30,		Sep 30,
		2018				2018		2017
Earnings
Diluted earnings per common share		$	1.13			0.98		0.83
Wells Fargo net income (in billions)		6.01				5.19		4.54
Return on assets (ROA)		1.27		%		1.10		0.93
Return on equity (ROE)		12.04				10.60		8.96
Return on average tangible common equity (ROTCE) (a)		14.33				12.62		10.66
Asset Quality
Net charge-offs (annualized) as a % of average total loans		0.29		%		0.26		0.30
Allowance for credit losses as a % of total loans		1.16				1.18		1.27
Allowance for credit losses as a % of annualized net charge-offs		406				460		426
Other
Revenue (in billions)		$	21.9			21.6		21.8
Efficiency ratio (b)		62.7		%		64.9		65.7
Average loans (in billions)		$	939.5			944.1		952.3
Average deposits (in billions)		1,266.4				1,271.3		1,306.4
Net interest margin		2.94		%		2.93		2.86
(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 $6.0 billion, or $1.13 per diluted common share, for third quarter 2018, compared with $4.5 billion, or $0.83 per share, for third quarter 2017, and $5.2 billion, or $0.98 per share, for second quarter 2018.

Chief Executive Officer Tim Sloan said, “In the third quarter, we continued to make progress in our efforts to build a better Wells Fargo with a specific focus on our six goals: risk management, customer service, team member engagement, innovation, corporate citizenship and shareholder value. We are strengthening how we manage risk and have made enhancements to our risk management framework. We also continued to make progress on customer remediation, which is an important step in our efforts to rebuild trust. In addition, to better serve our customers and help them succeed financially, we launched Control Tower^SM, a digital experience that simplifies our customers’ online financial lives, and our new Propel^® Card, one of the richest no-annual-fee credit cards in the industry. Furthermore, our ongoing efforts in corporate citizenship and building stronger communities were recognized in a recent survey on corporate giving by the Chronicle of Philanthropy, which ranked the Wells Fargo Foundation as the No.2 corporate cash giver in the United States. Our focus on shareholder value included progress on our expense savings initiatives, and we returned a record $8.9 billion to shareholders through net common stock repurchases and dividends in the third quarter. I’m confident that our efforts to transform Wells Fargo position us for long-term success.”

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $6.0 billion of net income in the third quarter. Revenue increased and noninterest expense declined both linked quarter and year-over-year. Our positive operating leverage reflected the benefit of the transformational changes we are making at Wells Fargo, including our focus on reducing expenses. In addition, we saw positive business trends in the third quarter, including growth in primary consumer checking customers, increased debit and credit card usage, and higher year-over-year loan originations in auto, small business, home equity and personal loans and lines. Credit performance and capital levels remained strong. Our commitment to returning more capital to shareholders was demonstrated by an increase in net common share repurchases, which more than tripled from a year ago, and a higher common stock dividend.”

Net Interest Income

Net interest income in the third quarter was $12.6 billion, up $31 million from second quarter 2018. Net interest margin was 2.94 percent, up 1 basis point from the prior quarter.

Noninterest Income

Noninterest income in the third quarter was $9.4 billion, up $357 million from second quarter 2018. Third quarter noninterest income included higher other income, market sensitive revenue⁴, mortgage banking fees, service charges on deposit accounts, and card fees, partially offset by lower trust and investment fees.

• Mortgage banking income was $846 million, up from $770 million in second quarter 2018. The production margin on residential held-for-sale mortgage loan originations⁵ increased to 0.97 percent, from 0.77 percent in the second quarter, primarily due to an improvement in secondary market conditions. Residential mortgage loan originations were $46 billion, down from $50 billion in the second quarter. Net mortgage servicing income was $390 million, down from $406 million in the second quarter.
• Market sensitive revenue was $631 million, up from $527 million in second quarter 2018, predominantly due to higher net gains from equity securities on lower other-than-temporary impairment (OTTI).
• Other income was $466 million, compared with $323 million in the second quarter. Third quarter results included a $638 million gain from sales of $1.7 billion of purchased credit-impaired (PCI) Pick-a-Pay loans, compared with a $479 million gain from sales of $1.3 billion of PCI Pick-a-Pay loans in second quarter 2018.

Noninterest Expense

Noninterest expense in the third quarter declined $219 million from the prior quarter to $13.8 billion, predominantly due to lower commission and incentive compensation, outside professional services and charitable donations expense. These decreases were partially offset by higher employee benefits, equipment and contract services expense. The efficiency ratio was 62.7 percent in third quarter 2018, compared with 64.9 percent in the second quarter.

Third quarter 2018 operating losses were $605 million, driven primarily by remediation expense for a variety of matters, including an additional $241 million accrual for previously disclosed issues related to automobile collateral protection insurance (CPI).

Income Taxes

The Company’s effective income tax rate was 20.1 percent for third quarter 2018 and included net discrete income tax expense related to the re-measurement of our initial estimates for the impacts of the Tax Cuts & Jobs Act recognized in fourth quarter 2017. The effective income tax rate in second quarter 2018 was 25.9 percent and included net discrete income tax expense of $481 million mostly related to state income taxes. The Company currently expects the effective income tax rate in fourth quarter 2018 to be approximately 19 percent, excluding the impact of any future discrete items.

Loans

Total average loans were $939.5 billion in the third quarter, down $4.6 billion from the second quarter. Period-end loan balances were $942.3 billion at September 30, 2018, down $2.0 billion from June 30, 2018. Commercial loans were down $1.2 billion compared with June 30, 2018, predominantly due to a $2.8 billion decline in commercial real estate loans, partially offset by $1.5 billion of growth in commercial and industrial loans. Consumer loans decreased $746 million from the prior quarter, driven by:

• a $1.6 billion decline in automobile loans due to expected continued runoff, as well as the reclassification of the remaining $374 million of Reliable Financial Services Inc. auto loans to held for sale
• a $1.2 billion decline in junior lien mortgage loans as payoffs continued to exceed originations
• these decreases were partially offset by:
  • a $1.3 billion increase in 1-4 family first mortgage loans, as nonconforming mortgage loan originations were partially offset by payoffs and $1.7 billion of sales of PCI Pick-a-Pay mortgage loans
  • a $1.1 billion increase in credit card loans

Additionally, $249 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 third quarter 2018 in anticipation of the future issuance of residential mortgage-backed securities (RMBS).

Period-End Loan Balances
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Commercial		$	501,886			503,105			503,396			503,388			500,150
Consumer		440,414				441,160			443,912			453,382			451,723
Total loans		$	942,300			944,265			947,308			956,770			951,873
Change from prior quarter		$	(1,965	)		(3,043	)		(9,462	)		4,897			(5,550	)

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 $472.3 billion at September 30, 2018, down $3.2 billion from the second quarter, predominantly due to a net decrease in available-for-sale debt securities, as approximately $14.3 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 $3.8 billion at September 30, 2018, compared with net unrealized losses of $2.4 billion at June 30, 2018, predominantly 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 $61.8 billion at September 30, 2018, up $4.3 billion from the second quarter, largely due to an increase in equity securities held for trading due to stronger customer activity.

Deposits

Total average deposits for third quarter 2018 were $1.3 trillion, down $5.0 billion from the prior quarter, as consumers continued to move excess liquidity to higher-rate alternatives. The average deposit cost for third quarter 2018 was 47 basis points, up 7 basis points from the prior quarter and 21 basis points from a year ago, primarily driven by an increase in Wholesale Banking and Wealth and Investment Management deposit rates.

Capital

Capital in the third quarter continued to exceed our internal target, with a Common Equity Tier 1 ratio (fully phased-in) of 11.9 percent³, down from 12.0 percent in the prior quarter. In third quarter 2018, the Company repurchased 146.5 million shares of its common stock, which reduced period-end common shares outstanding by 137.5 million. The Company paid a quarterly common stock dividend of $0.43 per share.

The Company redeemed its 8.00% Non-Cumulative Perpetual Class A Preferred Stock, Series J, on September 17, 2018, which reduced diluted earnings per common share in third quarter 2018 by $0.03 per share as a result of eliminating the purchase accounting discount recorded on these shares at the time of the Wachovia acquisition.

Credit Quality

Net Loan Charge-offs

The quarterly loss rate in the third quarter was 0.29 percent (annualized), compared with 0.26 percent in the prior quarter and 0.30 percent a year ago. Commercial and consumer losses were 0.12 percent and 0.47 percent, respectively. Total credit losses were $680 million in third quarter 2018, up $78 million from second quarter 2018. Commercial losses were up $85 million driven by higher commercial and industrial loan charge-offs and lower recoveries, while consumer losses decreased $7 million.

Net Loan Charge-Offs
		Quarter ended
		September 30, 2018							June 30, 2018							September 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		$	148			0.18	%		$	58			0.07	%		$	125			0.15	%
Real estate mortgage		(1		)		—			—				—			(3		)		(0.01	)
Real estate construction		(2		)		(0.04	)		(6		)		(0.09	)		(15		)		(0.24	)
Lease financing		7				0.14			15				0.32			6				0.12
Total commercial		152				0.12			67				0.05			113				0.09
Consumer:
Real estate 1-4 family first mortgage		(25		)		(0.04	)		(23		)		(0.03	)		(16		)		(0.02	)
Real estate 1-4 family junior lien mortgage		(9		)		(0.10	)		(13		)		(0.13	)		1				—
Credit card		299				3.22			323				3.61			277				3.08
Automobile		130				1.10			113				0.93			202				1.41
Other revolving credit and installment		133				1.44			135				1.44			140				1.44
Total consumer		528				0.47			535				0.49			604				0.53
Total		$	680			0.29	%		$	602			0.26	%		$	717			0.30	%
(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 $410 million, or 5 percent, from second quarter 2018 to $7.6 billion. Nonaccrual loans decreased $433 million from second quarter 2018 to $7.1 billion reflecting both lower consumer and commercial nonaccruals.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
		September 30, 2018							June 30, 2018							September 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		$	1,555			0.46	%		$	1,559			0.46	%		$	2,397			0.73	%
Real estate mortgage		603				0.50			765				0.62			593				0.46
Real estate construction		44				0.19			51				0.22			38				0.15
Lease financing		96				0.49			80				0.41			81				0.42
Total commercial		2,298				0.46			2,455				0.49			3,109				0.62
Consumer:
Real estate 1-4 family first mortgage		3,605				1.27			3,829				1.35			4,213				1.50
Real estate 1-4 family junior lien mortgage		984				2.79			1,029				2.82			1,101				2.68
Automobile		118				0.26			119				0.25			137				0.25
Other revolving credit and installment		48				0.13			54				0.14			59				0.15
Total consumer		4,755				1.08			5,031				1.14			5,510				1.22
Total nonaccrual loans		7,053				0.75			7,486				0.79			8,619				0.91
Foreclosed assets:
Government insured/guaranteed		87							90							137
Non-government insured/guaranteed		435							409							569
Total foreclosed assets		522							499							706
Total nonperforming assets		$	7,575			0.80	%		$	7,985			0.85	%		$	9,325			0.98	%
Change from prior quarter:
Total nonaccrual loans		$	(433	)					$	(233	)					$	(437	)
Total nonperforming assets		(410		)					(305		)					(512		)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $11.0 billion at September 30, 2018, down $154 million from June 30, 2018. Third quarter 2018 included a $100 million reserve release², which reflected strong credit performance and lower loan balances. The allowance coverage for total loans was 1.16 percent, compared with 1.18 percent in second quarter 2018. The allowance covered 4.1 times annualized third quarter net charge-offs, compared with 4.6 times in the prior quarter. The allowance coverage for nonaccrual loans was 155 percent at September 30, 2018, compared with 148 percent at June 30, 2018. The Company believes the allowance was appropriate for losses inherent in the loan portfolio at September 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
		Sep 30,				Jun 30,			Sep 30,
(in millions)		2018				2018			2017
Community Banking		$	2,816			2,496			1,877
Wholesale Banking		2,851				2,635			2,314
Wealth and Investment Management		732				445			719

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
		Sep 30,			Jun 30,			Sep 30,
(in millions)		2018			2018			2017
Total revenue		$	11,816		11,806			11,520
Provision for credit losses		547			484			650
Noninterest expense		7,467			7,290			7,852
Segment net income		2,816			2,496			1,877
(in billions)
Average loans		460.9			463.8			473.7
Average assets		1,024.9			1,034.3			1,089.6
Average deposits		760.9			760.6			734.6

Third Quarter 2018 vs. Second Quarter 2018

• Net income of $2.8 billion, up $320 million, or 13 percent. Second quarter 2018 results included net discrete income tax expense of $481 million mostly related to state income taxes
• Revenue was flat at $11.8 billion, as higher service charges on deposit accounts, mortgage banking income, gains from sales of PCI Pick-a-Pay loans, and card fees were predominantly offset by lower market sensitive revenue
• Noninterest expense was up $177 million, or 2 percent, driven mainly by higher operating losses and equipment expense, partially offset by lower charitable contributions, outside professional services and other expense

Third Quarter 2018 vs. Third Quarter 2017

• Net income was up $939 million, or 50 percent, predominantly due to lower noninterest expense and higher revenue
• Revenue increased $296 million, or 3 percent, due to a gain from the sales of PCI Pick-a-Pay loans and higher net interest income, partially offset by lower mortgage banking income, market sensitive revenue and service charges on deposit accounts
• Noninterest expense of $7.5 billion decreased $385 million, or 5 percent, driven by lower operating losses, partially offset by higher personnel expense
• Provision for credit losses decreased $103 million due to credit improvement in the automobile and consumer real estate portfolios

Business Metrics and Highlights

• Primary consumer checking customers^6,7 up 1.7 percent year-over-year
• More than 357,000 branch customer experience surveys completed during third quarter 2018, with both ‘Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ scores up from the prior quarter
• #1 in retail deposits⁸, based on the FDIC's recently published Summary of Deposits annual survey
• Debit card point-of-sale purchase volume⁹ of $87.5 billion in the third quarter, up 9 percent year-over-year
• General purpose credit card point-of-sale purchase volume of $19.4 billion in the third quarter, up 7 percent year-over-year
• Business Insider named our Propel^® Card the #1 no-fee credit card on its list of "The 8 Best No-Fee Credit Cards to Open in 2018"
• 29.0 million digital (online and mobile) active customers, including 22.5 million mobile active users^7,10
• 5,663 retail bank branches as of the end of third quarter 2018, reflecting 93 branch consolidations in the quarter and 207 in the first nine months of 2018; additionally, we expect to complete the previously announced divestiture of 52 branches in Indiana, Ohio, Michigan and part of Wisconsin in fourth quarter 2018
• Home Lending

• Originations of $46 billion, down from $50 billion in the prior quarter, primarily due to seasonality; included home equity originations of $713 million, up 3 percent from the prior quarter and up 16 percent from the prior year
• Applications of $57 billion, down from $67 billion in the prior quarter, primarily due to seasonality
• Application pipeline of $22 billion at quarter end, down from $26 billion at June 30, 2018
• Production margin on residential held-for-sale mortgage loan originations⁵ of 0.97 percent, up from 0.77 percent in the prior quarter, due to an improvement in secondary market conditions

• For the 10th consecutive year, Wells Fargo received first place in the Dynatrace 2018 Mortgage and Home Equity Scorecard, a customer experience best practice benchmark of mortgage and home equity digital channels
• Automobile originations of $4.8 billion in the third quarter, up 8 percent from the prior quarter and up 10 percent from the prior year
• Originations of personal loans and lines of $684 million in third quarter 2018, up 3 percent from the prior year
• Small Business Lending¹¹ originations of $627 million, up 28 percent from the prior year

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
		Sep 30,				Jun 30,			Sep 30,
(in millions)		2018				2018			2017
Total revenue		$	7,304			7,197			7,504
Provision (reversal of provision) for credit losses		26				(36	)		69
Noninterest expense		3,935				4,219			4,234
Segment net income		2,851				2,635			2,314
(in billions)
Average loans		462.8				464.7			463.7
Average assets		827.2				826.4			824.2
Average deposits		413.6				414.0			463.4

Third Quarter 2018 vs. Second Quarter 2018

• Net income of $2.9 billion, up $216 million, or 8 percent
• Revenue of $7.3 billion increased $107 million, or 1 percent, driven by higher net interest income, other income and mortgage banking income, partially offset by lower market sensitive revenue
• Noninterest expense decreased $284 million, or 7 percent, reflecting lower operating losses and personnel expense
• Provision for credit losses increased $62 million driven by higher loan losses and lower recoveries

Third Quarter 2018 vs. Third Quarter 2017

• Net income increased $537 million, or 23 percent, as third quarter 2018 results benefited from a lower effective income tax rate
• Revenue decreased $200 million, or 3 percent, primarily due to the impact of the sales of Wells Fargo Insurance Services USA (WFIS) in fourth quarter 2017 and Wells Fargo Shareowner Services in first quarter 2018, as well as lower net interest income, treasury management fees and operating lease income
• Noninterest expense decreased $299 million, or 7 percent, on lower expense related to the sales of WFIS and Wells Fargo Shareowner Services, lower project-related expense and operating losses, partially offset by higher regulatory, risk and technology expense

Business Metrics and Highlights

• Commercial card spend volume¹² of $8.2 billion, up 9 percent from the prior year on increased transaction volumes primarily reflecting customer growth, and flat compared with second quarter 2018
• U.S. investment banking market share of 3.3 percent year-to-date 2018¹³, compared with 3.6 percent year-to-date 2017¹³

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
		Sep 30,			Jun 30,			Sep 30,
(in millions)		2018			2018			2017
Total revenue		$	4,226		3,951			4,256
Provision (reversal of provision) for credit losses		6			(2	)		(1	)
Noninterest expense		3,243			3,361			3,102
Segment net income		732			445			719
(in billions)
Average loans		74.6			74.7			72.4
Average assets		83.8			84.0			83.2
Average deposits		159.8			167.1			184.4

Third Quarter 2018 vs. Second Quarter 2018

• Net income of $732 million, up $287 million, or 64 percent
• Revenue of $4.2 billion increased $275 million, or 7 percent, primarily due to higher net gains from equity securities primarily on lower OTTI from a second quarter that included an impairment of $214 million related to the sale of Wells Fargo Asset Management's (WFAM) ownership stake in The Rock Creek Group, LP (RockCreek), and higher deferred compensation plan investments (offset in employee benefits expense)
• Noninterest expense decreased $118 million, or 4 percent, predominantly driven by lower operating losses and personnel expense, partially offset by higher employee benefits from deferred compensation plan expense (offset in net gains from equity securities)

Third Quarter 2018 vs. Third Quarter 2017

• Net income up $13 million, or 2 percent, as third quarter 2018 results benefited from a lower effective income tax rate
• Revenue decreased $30 million, driven by lower net interest income and brokerage transaction revenue, partially offset by higher asset-based fees and net gains from equity securities
• Noninterest expense increased $141 million, or 5 percent, primarily due to higher regulatory, risk and technology expense, higher broker commissions and other non-personnel expense

Business Metrics and Highlights

Total WIM Segment

• WIM total client assets of $1.9 trillion, up 2 percent from a year ago, driven by higher market valuations, partially offset by net outflows
• Average loan balances up 3 percent from a year ago largely due to growth in non-conforming mortgage loans
• Third quarter 2018 closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) were flat compared with a year ago

Retail Brokerage

• Client assets of $1.6 trillion, up 2 percent from prior year, primarily driven by higher market valuations, partially offset by net outflows
• Advisory assets of $560 billion, up 7 percent from prior year, primarily driven by higher market valuations

Wealth Management

• Client assets of $240 billion, flat compared with prior year

Asset Management

• Total assets under management (AUM) of $483 billion, down 3 percent from prior year, as a result of the sale of WFAM's ownership stake in RockCreek and removal of the associated AUM, as well as equity and fixed income net outflows, partially offset by higher market valuations and money market fund net inflows

Retirement

• IRA assets of $418 billion, up 5 percent from prior year
• Institutional Retirement plan assets of $398 billion, up 3 percent from prior year

Conference Call

The Company will host a live conference call on Friday, October 12, at 7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~8888608.

A replay of the conference call will be available beginning at 11:00 a.m. PT (2:00 p.m. ET) on Friday, October 12 through Friday, October 26. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #8888608. 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~8888608.

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 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.

⁴ Market sensitive revenue represents net gains from trading activities, debt securities, and equity securities.

⁵ 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.

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 August 2018, comparisons with August 2017.

⁸ FDIC data, SNL Financial, as of June 2018. Retail deposit data is pro forma for acquisitions and caps deposits at $1 billion in a single banking branch and excludes credit union deposits.

⁹ Combined consumer and business debit card purchase volume dollars.

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

¹¹ Small Business Lending includes credit card, lines of credit and loan products (primarily under $100,000 sold through our retail banking branches).

¹² Includes commercial card volume for the entire company.

¹³ Year-to-date through September. Source: Dealogic U.S. investment banking fee market share.

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 any 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 any efficiency ratio or expense 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 interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans 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 7,950 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 37 countries and territories to support customers who conduct business in the global economy. With approximately 262,000 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		18
Income
Consolidated Statement of Income		20
Consolidated Statement of Comprehensive Income		22
Condensed Consolidated Statement of Changes in Total Equity		22
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		23
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		25
Noninterest Income and Noninterest Expense		26
Balance Sheet
Consolidated Balance Sheet		28
Trading Activities		30
Debt Securities		30
Equity Securities		31
Loans
Loans		32
Nonperforming Assets		33
Loans 90 Days or More Past Due and Still Accruing		33
Purchased Credit-Impaired Loans		34
Changes in Allowance for Credit Losses		36
Equity
Tangible Common Equity		37
Common Equity Tier 1 Under Basel III		38
Operating Segments
Operating Segment Results		39
Other
Mortgage Servicing and other related data		41

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
												% Change
		Quarter ended										Sep 30, 2018 from						Nine months ended
		Sep 30,				Jun 30,			Sep 30,			Jun 30,			Sep 30,			Sep 30,				Sep 30,			%
($ in millions, except per share amounts)		2018				2018			2017			2018			2017			2018				2017			Change
For the Period
Wells Fargo net income		$	6,007			5,186			4,542			16	%		32			$	16,329			16,032			2	%
Wells Fargo net income applicable to common stock		5,453				4,792			4,131			14			32			14,978				14,814			1
Diluted earnings per common share		1.13				0.98			0.83			15			36			3.07				2.94			4
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27		%		1.10			0.93			15			37			1.15		%		1.11			4
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.04				10.60			8.96			14			34			11.08				10.97			1
Return on average tangible common equity (ROTCE)(1)		14.33				12.62			10.66			14			34			13.19				13.11			1
Efficiency ratio (2)		62.7				64.9			65.7			(3	)		(5	)		65.4				62.8			4
Total revenue		$	21,941			21,553			21,849			2			—			$	65,428			66,339			(1	)
Pre-tax pre-provision profit (PTPP) (3)		8,178				7,571			7,498			8			9			22,641				24,655			(8	)
Dividends declared per common share		0.43				0.39			0.39			10			10			1.21				1.15			5
Average common shares outstanding		4,784.0				4,865.8			4,948.6			(2	)		(3	)		4,844.8				4,982.1			(3	)
Diluted average common shares outstanding		4,823.2				4,899.8			4,996.8			(2	)		(3	)		4,885.0				5,035.4			(3	)
Average loans		$	939,462			944,079			952,343			—			(1	)		$	944,813			957,581			(1	)
Average assets		1,876,283				1,884,884			1,938,461			—			(3	)		1,892,209				1,932,201			(2	)
Average total deposits		1,266,378				1,271,339			1,306,356			—			(3	)		1,278,185				1,302,273			(2	)
Average consumer and small business banking deposits (4)		743,503				754,047			755,094			(1	)		(2	)		751,030				758,443			(1	)
Net interest margin		2.94		%		2.93			2.86			—			3			2.90		%		2.88			1
At Period End
Debt securities (5)		$	472,283			475,495			474,710			(1	)		(1	)		$	472,283			474,710			(1	)
Loans		942,300				944,265			951,873			—			(1	)		942,300				951,873			(1	)
Allowance for loan losses		10,021				10,193			11,078			(2	)		(10	)		10,021				11,078			(10	)
Goodwill		26,425				26,429			26,581			—			(1	)		26,425				26,581			(1	)
Equity securities (5)		61,755				57,505			54,981			7			12			61,755				54,981			12
Assets		1,872,981				1,879,700			1,934,880			—			(3	)		1,872,981				1,934,880			(3	)
Deposits		1,266,594				1,268,864			1,306,706			—			(3	)		1,266,594				1,306,706			(3	)
Common stockholders' equity		176,934				181,386			181,920			(2	)		(3	)		176,934				181,920			(3	)
Wells Fargo stockholders’ equity		198,741				205,188			205,722			(3	)		(3	)		198,741				205,722			(3	)
Total equity		199,679				206,069			206,617			(3	)		(3	)		199,679				206,617			(3	)
Tangible common equity (1)		148,391				152,580			152,694			(3	)		(3	)		148,391				152,694			(3	)
Common shares outstanding		4,711.6				4,849.1			4,927.9			(3	)		(4	)		4,711.6				4,927.9			(4	)
Book value per common share (6)		$	37.55			37.41			36.92			—			2			$	37.55			36.92			2
Tangible book value per common share (1)(6)		31.49				31.47			30.99			—			2			31.49				30.99			2
Team members (active, full-time equivalent)		261,700				264,500			268,000			(1	)		(2	)		261,700				268,000			(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
($ in millions, except per share amounts)		2018				2018			2018			2017			2017
For the Quarter
Wells Fargo net income		$	6,007			5,186			5,136			6,151			4,542
Wells Fargo net income applicable to common stock		5,453				4,792			4,733			5,740			4,131
Diluted earnings per common share		1.13				0.98			0.96			1.16			0.83
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.27		%		1.10			1.09			1.26			0.93
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.04				10.60			10.58			12.47			8.96
Return on average tangible common equity (ROTCE)(1)		14.33				12.62			12.62			14.85			10.66
Efficiency ratio (2)		62.7				64.9			68.6			76.2			65.7
Total revenue		$	21,941			21,553			21,934			22,050			21,849
Pre-tax pre-provision profit (PTPP) (3)		8,178				7,571			6,892			5,250			7,498
Dividends declared per common share		0.43				0.39			0.39			0.39			0.39
Average common shares outstanding		4,784.0				4,865.8			4,885.7			4,912.5			4,948.6
Diluted average common shares outstanding		4,823.2				4,899.8			4,930.7			4,963.1			4,996.8
Average loans		$	939,462			944,079			951,024			951,822			952,343
Average assets		1,876,283				1,884,884			1,915,896			1,935,318			1,938,461
Average total deposits		1,266,378				1,271,339			1,297,178			1,311,592			1,306,356
Average consumer and small business banking deposits (4)		743,503				754,047			755,483			757,541			755,094
Net interest margin		2.94		%		2.93			2.84			2.84			2.86
At Quarter End
Debt securities (5)		$	472,283			475,495			472,968			473,366			474,710
Loans		942,300				944,265			947,308			956,770			951,873
Allowance for loan losses		10,021				10,193			10,373			11,004			11,078
Goodwill		26,425				26,429			26,445			26,587			26,581
Equity securities (5)		61,755				57,505			58,935			62,497			54,981
Assets		1,872,981				1,879,700			1,915,388			1,951,757			1,934,880
Deposits		1,266,594				1,268,864			1,303,689			1,335,991			1,306,706
Common stockholders' equity		176,934				181,386			181,150			183,134			181,920
Wells Fargo stockholders’ equity		198,741				205,188			204,952			206,936			205,722
Total equity		199,679				206,069			205,910			208,079			206,617
Tangible common equity (1)		148,391				152,580			151,878			153,730			152,694
Common shares outstanding		4,711.6				4,849.1			4,873.9			4,891.6			4,927.9
Book value per common share (6)		$	37.55			37.41			37.17			37.44			36.92
Tangible book value per common share (1)(6)		31.49				31.47			31.16			31.43			30.99
Team members (active, full-time equivalent)		261,700				264,500			265,700			262,700			268,000
(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
										Nine months
		Quarter ended September 30,					%			ended September 30,					%
(in millions, except per share amounts)		2018			2017		Change			2018			2017		Change
Interest income
Debt securities (1)		$	3,595		3,253		11	%		$	10,603		9,652		10	%
Mortgage loans held for sale		210			217		(3	)		587			590		(1	)
Loans held for sale (1)		35			15		133			107			38		182
Loans		11,116			10,522		6			32,607			31,021		5
Equity securities (1)		280			186		51			732			560		31
Other interest income (1)		1,128			851		33			3,090			2,090		48
Total interest income		16,364			15,044		9			47,726			43,951		9
Interest expense
Deposits		1,499			869		72			3,857			2,082		85
Short-term borrowings		462			226		104			1,171			503		133
Long-term debt		1,667			1,391		20			4,901			3,813		29
Other interest expense		164			109		50			446			309		44
Total interest expense		3,792			2,595		46			10,375			6,707		55
Net interest income		12,572			12,449		1			37,351			37,244		—
Provision for credit losses		580			717		(19	)		1,223			1,877		(35	)
Net interest income after provision for credit losses		11,992			11,732		2			36,128			35,367		2
Noninterest income
Service charges on deposit accounts		1,204			1,276		(6	)		3,540			3,865		(8	)
Trust and investment fees		3,631			3,609		1			10,989			10,808		2
Card fees		1,017			1,000		2			2,926			2,964		(1	)
Other fees		850			877		(3	)		2,496			2,644		(6	)
Mortgage banking		846			1,046		(19	)		2,550			3,422		(25	)
Insurance		104			269		(61	)		320			826		(61	)
Net gains from trading activities (1)		158			120		32			592			543		9
Net gains on debt securities		57			166		(66	)		99			322		(69	)
Net gains from equity securities (1)		416			363		15			1,494			1,207		24
Lease income		453			475		(5	)		1,351			1,449		(7	)
Other		633			199		218			1,720			1,045		65
Total noninterest income		9,369			9,400		—			28,077			29,095		(3	)
Noninterest expense
Salaries		4,461			4,356		2			13,289			12,960		3
Commission and incentive compensation		2,427			2,553		(5	)		7,837			7,777		1
Employee benefits		1,377			1,279		8			4,220			4,273		(1	)
Equipment		634			523		21			1,801			1,629		11
Net occupancy		718			716		—			2,153			2,134		1
Core deposit and other intangibles		264			288		(8	)		794			864		(8	)
FDIC and other deposit assessments		336			314		7			957			975		(2	)
Other		3,546			4,322		(18	)		11,736			11,072		6
Total noninterest expense		13,763			14,351		(4	)		42,787			41,684		3
Income before income tax expense		7,598			6,781		12			21,418			22,778		(6	)
Income tax expense		1,512			2,181		(31	)		4,696			6,559		(28	)
Net income before noncontrolling interests		6,086			4,600		32			16,722			16,219		3
Less: Net income from noncontrolling interests		79			58		36			393			187		110
Wells Fargo net income		$	6,007		4,542		32			$	16,329		16,032		2
Less: Preferred stock dividends and other		554			411		35			1,351			1,218		11
Wells Fargo net income applicable to common stock		$	5,453		4,131		32			$	14,978		14,814		1
Per share information
Earnings per common share		$	1.14		0.83		37			$	3.09		2.97		4
Diluted earnings per common share		1.13			0.83		36			3.07			2.94		4
Average common shares outstanding		4,784.0			4,948.6		(3	)		4,844.8			4,982.1		(3	)
Diluted average common shares outstanding		4,823.2			4,996.8		(3	)		4,885.0			5,035.4		(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
		Sep 30,			Jun 30,		Mar 31,		Dec 31,		Sep 30,
(in millions, except per share amounts)		2018			2018		2018		2017		2017
Interest income
Debt securities (1)		$	3,595		3,594		3,414		3,294		3,253
Mortgage loans held for sale		210			198		179		196		217
Loans held for sale (1)		35			48		24		12		15
Loans		11,116			10,912		10,579		10,367		10,522
Equity securities (1)		280			221		231		239		186
Other interest income (1)		1,128			1,042		920		850		851
Total interest income		16,364			16,015		15,347		14,958		15,044
Interest expense
Deposits		1,499			1,268		1,090		931		869
Short-term borrowings		462			398		311		255		226
Long-term debt		1,667			1,658		1,576		1,344		1,391
Other interest expense		164			150		132		115		109
Total interest expense		3,792			3,474		3,109		2,645		2,595
Net interest income		12,572			12,541		12,238		12,313		12,449
Provision for credit losses		580			452		191		651		717
Net interest income after provision for credit losses		11,992			12,089		12,047		11,662		11,732
Noninterest income
Service charges on deposit accounts		1,204			1,163		1,173		1,246		1,276
Trust and investment fees		3,631			3,675		3,683		3,687		3,609
Card fees		1,017			1,001		908		996		1,000
Other fees		850			846		800		913		877
Mortgage banking		846			770		934		928		1,046
Insurance		104			102		114		223		269
Net gains (losses) from trading activities (1)		158			191		243		(1)		120
Net gains on debt securities		57			41		1		157		166
Net gains from equity securities (1)		416			295		783		572		363
Lease income		453			443		455		458		475
Other		633			485		602		558		199
Total noninterest income		9,369			9,012		9,696		9,737		9,400
Noninterest expense
Salaries		4,461			4,465		4,363		4,403		4,356
Commission and incentive compensation		2,427			2,642		2,768		2,665		2,553
Employee benefits		1,377			1,245		1,598		1,293		1,279
Equipment		634			550		617		608		523
Net occupancy		718			722		713		715		716
Core deposit and other intangibles		264			265		265		288		288
FDIC and other deposit assessments		336			297		324		312		314
Other		3,546			3,796		4,394		6,516		4,322
Total noninterest expense		13,763			13,982		15,042		16,800		14,351
Income before income tax expense		7,598			7,119		6,701		4,599		6,781
Income tax expense (benefit)		1,512			1,810		1,374		(1,642)		2,181
Net income before noncontrolling interests		6,086			5,309		5,327		6,241		4,600
Less: Net income from noncontrolling interests		79			123		191		90		58
Wells Fargo net income		$	6,007		5,186		5,136		6,151		4,542
Less: Preferred stock dividends and other		554			394		403		411		411
Wells Fargo net income applicable to common stock		$	5,453		4,792		4,733		5,740		4,131
Per share information
Earnings per common share		$	1.14		0.98		0.97		1.17		0.83
Diluted earnings per common share		1.13			0.98		0.96		1.16		0.83
Average common shares outstanding		4,784.0			4,865.8		4,885.7		4,912.5		4,948.6
Diluted average common shares outstanding		4,823.2			4,899.8		4,930.7		4,963.1		4,996.8
(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 September 30,							%		Nine months ended September 30,							%
(in millions)		2018				2017			Change		2018				2017			Change
Wells Fargo net income		$	6,007			4,542			32%		$	16,329			16,032			2%
Other comprehensive income (loss), before tax:
Debt securities (1):
Net unrealized gains (losses) arising during the period		(1,468		)		891			NM		(5,528		)		2,825			NM
Reclassification of net (gains) losses to net income		51				(200	)		NM		168				(522	)		NM
Derivatives and hedging activities (2):
Net unrealized gains (losses) arising during the period		(24		)		104			NM		(416		)		18			NM
Reclassification of net (gains) losses to net income		79				(105	)		NM		216				(460	)		NM
Defined benefit plans adjustments:
Net actuarial and prior service gains arising during the period		—				11			(100)		6				4			50
Amortization of net actuarial loss, settlements and other to net income		29				41			(29)		90				120			(25)
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period		(9		)		39			NM		(94		)		86			NM
Other comprehensive income (loss), before tax (2)		(1,342		)		781			NM		(5,558		)		2,071			NM
Income tax benefit (expense) related to other comprehensive income (2)		330				(289	)		NM		1,346				(753	)		NM
Other comprehensive income (loss), net of tax (2)		(1,012		)		492			NM		(4,212		)		1,318			NM
Less: Other comprehensive loss from noncontrolling interests		—				(34	)		(100)		(1		)		(29	)		(97)
Wells Fargo other comprehensive income (loss), net of tax (2)		(1,012		)		526			NM		(4,211		)		1,347			NM
Wells Fargo comprehensive income (2)		4,995				5,068			(1)		12,118				17,379			(30)
Comprehensive income from noncontrolling interests		79				24			229		392				158			148
Total comprehensive income (2)		$	5,074			5,092			—		$	12,510			17,537			(29)
NM – Not meaningful
(1) The quarter and nine months ended September 30, 2017, includes net unrealized gains (losses) arising during the period from equity securities of ($13) million and $113 million and reclassification of net (gains) losses to net income related to equity securities of $(106) million and $(323) million, respectively. With the adoption in first quarter 2018 of ASU 2016-01, the quarter and nine months ended September 30, 2018, reflects net unrealized (gains) losses arising during the period and reclassification of net (gains) losses to net income from only debt securities.
(2) Financial information for the prior periods 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, effective January 1, 2017.

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
		Quarter ended
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Balance, beginning of period		$	206,069			205,910			208,079			206,617			205,949
Cumulative effect from change in accounting policies (1)		—				—			(24	)		—			—
Wells Fargo net income		6,007				5,186			5,136			6,151			4,542
Wells Fargo other comprehensive income (loss), net of tax		(1,012		)		(540	)		(2,659	)		(522	)		526
Noncontrolling interests		57				(77	)		(178	)		247			(20	)
Common stock issued		156				73			1,208			436			254
Common stock repurchased (2)		(7,382		)		(2,923	)		(3,029	)		(2,845	)		(2,601	)
Preferred stock redeemed (3)		(2,150		)		—			—			—			—
Preferred stock released by ESOP		260				490			231			218			209
Common stock warrants repurchased/exercised		(36		)		(1	)		(157	)		(46	)		(19	)
Common stock dividends		(2,062		)		(1,900	)		(1,911	)		(1,920	)		(1,936	)
Preferred stock dividends		(399		)		(394	)		(410	)		(411	)		(411	)
Stock incentive compensation expense		202				258			437			206			135
Net change in deferred compensation and related plans		(31		)		(13	)		(813	)		(52	)		(11	)
Balance, end of period		$	199,679			206,069			205,910			208,079			206,617
(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 that settled in third quarter 2018 for 18.8 million shares of common stock.
(3) Represents the impact of the redemption of preferred stock, series J, in third quarter 2018.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended September 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)		$	148,565			1.93	%		$	721			205,489			1.21	%		$	629
Federal funds sold and securities purchased under resale agreements (3)		79,931				1.93			390				70,640			1.14			203
Debt securities (4):
Trading debt securities (8)		84,481				3.45			730				76,627			3.21			616
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		6,421				1.65			27				14,529			1.31			48
Securities of U.S. states and political subdivisions (7)		46,615				3.76			438				52,500			4.08			535
Mortgage-backed securities:
Federal agencies		155,525				2.77			1,079				139,781			2.58			903
Residential and commercial (7)		7,318				4.68			85				11,013			5.44			149
Total mortgage-backed securities		162,843				2.86			1,164				150,794			2.79			1,052
Other debt securities (7)(8)		46,353				4.39			512				47,592			3.73			447
Total available-for-sale debt securities (7)(8)		262,232				3.26			2,141				265,415			3.13			2,082
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,739				2.18			246				44,708			2.18			246
Securities of U.S. states and political subdivisions		6,251				4.33			68				6,266			5.44			85
Federal agency and other mortgage-backed securities		95,298				2.27			539				88,272			2.26			498
Other debt securities		106				5.61			2				1,488			3.05			12
Total held-to-maturity debt securities		146,394				2.33			855				140,734			2.38			841
Total debt securities (7)(8)		493,107				3.02			3,726				482,776			2.93			3,539
Mortgage loans held for sale (5)(7)		19,343				4.33			210				22,923			3.79			217
Loans held for sale (5)(8)		2,619				5.28			35				1,383			4.39			15
Commercial loans:
Commercial and industrial - U.S.		273,814				4.22			2,915				270,091			3.81			2,590
Commercial and industrial - Non U.S. (7)		60,884				3.63			556				57,738			2.89			422
Real estate mortgage		121,284				4.35			1,329				129,087			3.83			1,245
Real estate construction		23,276				5.05			296				24,981			4.18			263
Lease financing (7)		19,512				4.69			229				19,155			4.59			219
Total commercial loans		498,770				4.24			5,325				501,052			3.76			4,739
Consumer loans:
Real estate 1-4 family first mortgage		284,133				4.07			2,891				278,371			4.03			2,809
Real estate 1-4 family junior lien mortgage		35,863				5.50			496				41,916			4.95			521
Credit card		36,893				12.77			1,187				35,657			12.41			1,114
Automobile		46,963				5.20			616				56,746			5.34			764
Other revolving credit and installment		36,840				6.78			630				38,601			6.31			615
Total consumer loans		440,692				5.26			5,820				451,291			5.14			5,823
Total loans (5)		939,462				4.72			11,145				952,343			4.41			10,562
Equity securities (8)		37,902				2.98			283				35,846			2.12			191
Other (8)		4,702				1.47			16				8,656			0.90			20
Total earning assets (7)(8)		$	1,725,631			3.81	%		$	16,526			1,780,056			3.44	%		$	15,376
Funding sources
Deposits:
Interest-bearing checking		$	51,177			1.01	%		$	131			48,278			0.57	%		$	69
Market rate and other savings		693,937				0.35			614				681,187			0.17			293
Savings certificates		20,586				0.62			32				21,806			0.31			16
Other time deposits (7)		87,752				2.35			519				66,046			1.51			251
Deposits in foreign offices		53,933				1.50			203				124,746			0.76			240
Total interest-bearing deposits (7)		907,385				0.66			1,499				942,063			0.37			869
Short-term borrowings (8)		105,472				1.74			463				99,193			0.91			226
Long-term debt (7)(8)		220,654				3.02			1,667				243,507			2.28			1,392
Other liabilities (8)		27,108				2.40			164				24,851			1.74			109
Total interest-bearing liabilities (7)(8)		1,260,619				1.20			3,793				1,309,614			0.79			2,596
Portion of noninterest-bearing funding sources (7)(8)		465,012				—			—				470,442			—			—
Total funding sources (7)(8)		$	1,725,631			0.87			3,793				1,780,056			0.58			2,596
Net interest margin and net interest income on a taxable-equivalent basis (6)(7)						2.94	%		$	12,733						2.86	%		$	12,780
Noninterest-earning assets
Cash and due from banks		$	18,356										18,456
Goodwill		26,429											26,600
Other (7)(8)		105,867											113,349
Total noninterest-earning assets (7)(8)		$	150,652										158,405
Noninterest-bearing funding sources
Deposits		$	358,993										364,293
Other liabilities (7)(8)		53,845											56,831
Total equity (7)		202,826											207,723
Noninterest-bearing funding sources used to fund earning assets (7)(8)		(465,012		)									(470,442	)
Net noninterest-bearing funding sources (7)(8)		$	150,652										158,405
Total assets (7)		$	1,876,283										1,938,461
(1) Our average prime rate was 5.01% and 4.25% for the quarters ended September 30, 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.34% and 1.31% 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 $161 million and $332 million for the quarters ended September 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 September 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)
		Nine months ended September 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)		$	158,480			1.71	%		$	2,029			206,161			1.01	%		$	1,557
Federal funds sold and securities purchased under resale agreements (3)		79,368				1.69			1,005				74,316			0.91			505
Debt securities (4):
Trading debt securities (8)		81,307				3.38			2,062				72,080			3.16			1,709
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		6,424				1.66			80				19,182			1.48			212
Securities of U.S. states and political subdivisions (7)		47,974				3.68			1,323				52,748			3.97			1,569
Mortgage-backed securities:
Federal agencies		156,298				2.75			3,220				142,748			2.60			2,782
Residential and commercial (7)		8,140				4.54			277				12,671			5.44			517
Total mortgage-backed securities (7)		164,438				2.84			3,497				155,419			2.83			3,299
Other debt securities (7)(8)		47,146				4.14			1,462				48,727			3.70			1,351
Total available-for-sale debt securities (7)(8)		265,982				3.19			6,362				276,076			3.11			6,431
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,731				2.19			733				44,701			2.19			733
Securities of U.S. states and political subdivisions		6,255				4.34			204				6,270			5.35			251
Federal agency and other mortgage-backed securities		93,699				2.32			1,632				74,525			2.38			1,329
Other debt securities		460				4.02			14				2,531			2.48			47
Total held-to-maturity debt securities		145,145				2.38			2,583				128,027			2.46			2,360
Total debt securities (7)(8)		492,434				2.98			11,007				476,183			2.94			10,500
Mortgage loans held for sale (5)(7)		18,849				4.15			587				20,869			3.77			590
Loans held for sale (5)(8)		2,706				5.28			107				1,485			3.47			38
Commercial loans:
Commercial and industrial - U.S.		273,711				4.08			8,350				272,621			3.70			7,547
Commercial and industrial - Non U.S. (7)		60,274				3.46			1,559				56,512			2.83			1,197
Real estate mortgage		123,804				4.22			3,910				130,931			3.69			3,615
Real estate construction		23,783				4.82			857				24,949			4.00			747
Lease financing (7)		19,349				4.82			700				19,094			4.78			684
Total commercial loans		500,921				4.10			15,376				504,107			3.66			13,790
Consumer loans:
Real estate 1-4 family first mortgage		283,814				4.05			8,613				276,330			4.04			8,380
Real estate 1-4 family junior lien mortgage		37,308				5.31			1,484				43,589			4.77			1,557
Credit card		36,416				12.73			3,467				35,322			12.19			3,219
Automobile		48,983				5.18			1,899				59,105			5.41			2,392
Other revolving credit and installment		37,371				6.62			1,851				39,128			6.15			1,801
Total consumer loans		443,892				5.21			17,314				453,474			5.11			17,349
Total loans (5)		944,813				4.62			32,690				957,581			4.34			31,139
Equity securities (8)		38,322				2.57			738				35,466			2.16			575
Other (8)		5,408				1.38			56				4,383			0.83			28
Total earning assets (7)(8)		$	1,740,380			3.70	%		$	48,219			1,776,444			3.38	%		$	44,932
Funding sources
Deposits:
Interest-bearing checking		$	66,364			0.89	%		$	441			49,134			0.43	%		$	156
Market rate and other savings		683,279				0.28			1,416				682,780			0.13			664
Savings certificates		20,214				0.46			70				22,618			0.30			50
Other time deposits (7)		82,175				2.16			1,331				59,414			1.41			625
Deposits in foreign offices		66,590				1.20			599				123,553			0.64			587
Total interest-bearing deposits (7)		918,622				0.56			3,857				937,499			0.30			2,082
Short-term borrowings		103,696				1.51			1,173				97,837			0.69			505
Long-term debt (7)		223,485				2.93			4,901				251,114			2.03			3,813
Other liabilities		27,743				2.14			446				20,910			1.97			309
Total interest-bearing liabilities (7)		1,273,546				1.09			10,377				1,307,360			0.69			6,709
Portion of noninterest-bearing funding sources (7)(8)		466,834				—			—				469,084			—			—
Total funding sources (7)(8)		$	1,740,380			0.80			10,377				1,776,444			0.50			6,709
Net interest margin and net interest income on a taxable-equivalent basis (6)(7)						2.90	%		$	37,842						2.88	%		$	38,223
Noninterest-earning assets
Cash and due from banks		$	18,604										18,443
Goodwill		26,463											26,645
Other (7)(8)		106,762											110,669
Total noninterest-earning assets (7)(8)		$	151,829										155,757
Noninterest-bearing funding sources
Deposits		$	359,563										364,774
Other liabilities (7)		54,088											55,032
Total equity (7)		205,012											205,035
Noninterest-bearing funding sources used to fund earning assets (7)(8)		(466,834		)									(469,084	)
Net noninterest-bearing funding sources (7)(8)		$	151,829										155,757
Total assets (7)		$	1,892,209										1,932,201
(1) Our average prime rate was 4.78% and 4.03% for the first nine months of 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.20% and 1.20% 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 $491 million and $980 million for the first nine months 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 nine months 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
		Sep 30, 2018							Jun 30, 2018							Mar 31, 2018							Dec 31, 2017							Sep 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)		$	148.6			1.93	%		$	154.8			1.75	%		$	172.3			1.49	%		$	189.1			1.27	%		$	205.5			1.21	%
Federal funds sold and securities purchased under resale agreements (3)		79.9				1.93			80.0				1.73			78.1				1.40			75.8				1.20			70.6				1.14
Debt securities (4):
Trading debt securities (5)		84.5				3.45			80.7				3.45			78.7				3.24			81.6				3.17			76.6				3.21
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		6.4				1.65			6.4				1.66			6.4				1.66			6.4				1.66			14.5				1.31
Securities of U.S. states and political subdivisions		46.6				3.76			47.4				3.91			50.0				3.37			52.4				3.91			52.5				4.08
Mortgage-backed securities:
Federal agencies		155.5				2.77			154.9				2.75			158.4				2.72			152.9				2.62			139.8				2.58
Residential and commercial		7.3				4.68			8.2				4.86			8.9				4.12			9.4				4.85			11.0				5.44
Total mortgage-backed securities		162.8				2.86			163.1				2.86			167.3				2.79			162.3				2.75			150.8				2.79
Other debt securities (5)		46.4				4.39			47.1				4.33			48.1				3.73			48.6				3.62			47.7				3.73
Total available-for-sale debt securities (5)		262.2				3.26			264.0				3.28			271.8				3.04			269.7				3.10			265.5				3.13
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44.7				2.18			44.7				2.19			44.7				2.20			44.7				2.19			44.7				2.18
Securities of U.S. states and political subdivisions		6.3				4.33			6.3				4.34			6.3				4.34			6.3				5.26			6.3				5.44
Federal agency and other mortgage-backed securities		95.3				2.27			94.9				2.33			90.8				2.38			89.6				2.25			88.3				2.26
Other debt securities		0.1				5.61			0.6				4.66			0.7				3.23			1.2				2.64			1.4				3.05
Total held-to-maturity debt securities		146.4				2.33			146.5				2.38			142.5				2.42			141.8				2.36			140.7				2.38
Total debt securities (5)		493.1				3.02			491.2				3.04			493.0				2.89			493.1				2.90			482.8				2.93
Mortgage loans held for sale		19.3				4.33			18.8				4.22			18.4				3.89			20.5				3.82			22.9				3.79
Loans held for sale (5)		2.6				5.28			3.5				5.48			2.0				4.92			1.5				3.19			1.4				4.39
Commercial loans:
Commercial and industrial - U.S.		273.8				4.22			275.3				4.16			272.0				3.85			270.3				3.89			270.1				3.81
Commercial and industrial - Non U.S.		60.9				3.63			59.7				3.51			60.2				3.23			59.2				2.96			57.7				2.89
Real estate mortgage		121.3				4.35			124.0				4.27			126.2				4.05			127.2				3.88			129.1				3.83
Real estate construction		23.3				5.05			23.6				4.88			24.4				4.54			24.4				4.38			25.0				4.18
Lease financing		19.5				4.69			19.3				4.48			19.4				5.30			19.3				0.62			19.2				4.59
Total commercial loans		498.8				4.24			501.9				4.15			502.2				3.91			500.4				3.68			501.1				3.76
Consumer loans:
Real estate 1-4 family first mortgage		284.1				4.07			283.1				4.06			284.2				4.02			282.0				4.01			278.4				4.03
Real estate 1-4 family junior lien mortgage		35.9				5.50			37.2				5.32			38.8				5.13			40.4				4.96			41.9				4.95
Credit card		36.9				12.77			35.9				12.66			36.4				12.75			36.4				12.37			35.6				12.41
Automobile		47.0				5.20			48.6				5.18			51.5				5.16			54.3				5.13			56.7				5.34
Other revolving credit and installment		36.8				6.78			37.4				6.62			37.9				6.46			38.3				6.28			38.6				6.31
Total consumer loans		440.7				5.26			442.2				5.20			448.8				5.16			451.4				5.10			451.2				5.14
Total loans		939.5				4.72			944.1				4.64			951.0				4.50			951.8				4.35			952.3				4.41
Equity securities (5)		37.9				2.98			37.3				2.38			39.8				2.35			38.0				2.60			35.9				2.12
Other (5)		4.7				1.47			5.6				1.48			6.0				1.21			7.2				0.88			8.7				0.90
Total earning assets (5)		$	1,725.6			3.81	%		$	1,735.3			3.73	%		$	1,760.6			3.55	%		$	1,777.0			3.43	%		$	1,780.1			3.44	%
Funding sources
Deposits:
Interest-bearing checking		$	51.2			1.01	%		$	80.3			0.90	%		$	67.8			0.77	%		$	50.5			0.68	%		$	48.3			0.57	%
Market rate and other savings		693.9				0.35			676.7				0.26			679.1				0.22			679.9				0.19			681.2				0.17
Savings certificates		20.6				0.62			20.0				0.43			20.0				0.34			20.9				0.31			21.8				0.31
Other time deposits		87.8				2.35			82.1				2.26			76.6				1.84			68.2				1.49			66.1				1.51
Deposits in foreign offices		53.9				1.50			51.5				1.30			94.8				0.98			124.6				0.81			124.7				0.76
Total interest-bearing deposits		907.4				0.66			910.6				0.56			938.3				0.47			944.1				0.39			942.1				0.37
Short-term borrowings		105.5				1.74			103.8				1.54			101.8				1.24			102.1				0.99			99.2				0.91
Long-term debt		220.7				3.02			223.8				2.97			226.0				2.80			231.6				2.32			243.5				2.28
Other liabilities		27.0				2.40			28.2				2.12			27.9				1.92			24.7				1.86			24.8				1.74
Total interest-bearing liabilities		1,260.6				1.20			1,266.4				1.10			1,294.0				0.97			1,302.5				0.81			1,309.6				0.79
Portion of noninterest-bearing funding sources (5)		465.0				—			468.9				—			466.6				—			474.5				—			470.5				—
Total funding sources (5)		$	1,725.6			0.87			$	1,735.3			0.80			$	1,760.6			0.71			$	1,777.0			0.59			$	1,780.1			0.58
Net interest margin on a taxable-equivalent basis						2.94	%						2.93	%						2.84	%						2.84	%						2.86	%
Noninterest-earning assets
Cash and due from banks		$	18.4						18.6							18.9							19.2							18.5
Goodwill		26.4							26.4							26.5							26.6							26.6
Other (5)		105.9							104.6							109.9							112.5							113.3
Total noninterest-earnings assets (5)		$	150.7						149.6							155.3							158.3							158.4
Noninterest-bearing funding sources
Deposits		$	359.0						360.7							358.9							367.5							364.3
Other liabilities (5)		53.9							51.7							56.8							57.9							56.9
Total equity		202.8							206.1							206.2							207.4							207.7
Noninterest-bearing funding sources used to fund earning assets (5)		(465.0		)					(468.9		)					(466.6		)					(474.5		)					(470.5		)
Net noninterest-bearing funding sources (5)		$	150.7						149.6							155.3							158.3							158.4
Total assets		$	1,876.3						1,884.9							1,915.9							1,935.3							1,938.5
(1) Our average prime rate was 5.01% for the quarter ended September 30, 2018, 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 and 4.25% for the quarter ended September 30, 2017. The average three-month London Interbank Offered Rate (LIBOR) was 2.34%, 2.34%, 1.93%, 1.46% and 1.31% 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 September 30,							%			Nine months ended September 30,							%
(in millions)		2018				2017			Change			2018				2017			Change
Service charges on deposit accounts		$	1,204			1,276			(6	)%		$	3,540			3,865			(8	)%
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,334				2,304			1			7,091				6,957			2
Trust and investment management		835				840			(1	)		2,520				2,506			1
Investment banking		462				465			(1	)		1,378				1,345			2
Total trust and investment fees		3,631				3,609			1			10,989				10,808			2
Card fees		1,017				1,000			2			2,926				2,964			(1	)
Other fees:
Charges and fees on loans		298				318			(6	)		903				950			(5	)
Cash network fees		121				126			(4	)		367				386			(5	)
Commercial real estate brokerage commissions		129				120			8			323				303			7
Letters of credit fees		72				77			(6	)		223				227			(2	)
Wire transfer and other remittance fees		120				114			5			357				333			7
All other fees		110				122			(10	)		323				445			(27	)
Total other fees		850				877			(3	)		2,496				2,644			(6	)
Mortgage banking:
Servicing income, net		390				309			26			1,264				1,165			8
Net gains on mortgage loan origination/sales activities		456				737			(38	)		1,286				2,257			(43	)
Total mortgage banking		846				1,046			(19	)		2,550				3,422			(25	)
Insurance		104				269			(61	)		320				826			(61	)
Net gains from trading activities (1)		158				120			32			592				543			9
Net gains on debt securities		57				166			(66	)		99				322			(69	)
Net gains from equity securities (1)		416				363			15			1,494				1,207			24
Lease income		453				475			(5	)		1,351				1,449			(7	)
Life insurance investment income		167				152			10			493				441			12
All other		466				47			891			1,227				604			103
Total		$	9,369			9,400			—			$	28,077			29,095			(3	)
(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 Sep 30,							%			Nine months ended Sep 30,							%
(in millions)		2018				2017			Change			2018				2017			Change
Salaries		$	4,461			4,356			2	%		$	13,289			12,960			3	%
Commission and incentive compensation		2,427				2,553			(5	)		7,837				7,777			1
Employee benefits		1,377				1,279			8			4,220				4,273			(1	)
Equipment		634				523			21			1,801				1,629			11
Net occupancy		718				716			—			2,153				2,134			1
Core deposit and other intangibles		264				288			(8	)		794				864			(8	)
FDIC and other deposit assessments		336				314			7			957				975			(2	)
Operating losses		605				1,329			(54	)		2,692				1,961			37
Outside professional services		761				955			(20	)		2,463				2,788			(12	)
Contract services (1)		593				415			43			1,576				1,228			28
Operating leases		311				347			(10	)		942				1,026			(8	)
Outside data processing		166				227			(27	)		492				683			(28	)
Travel and entertainment		141				154			(8	)		450				504			(11	)
Advertising and promotion		223				137			63			603				414			46
Postage, stationery and supplies		120				128			(6	)		383				407			(6	)
Telecommunications		90				90			—			270				272			(1	)
Foreclosed assets		59				66			(11	)		141				204			(31	)
Insurance		26				24			8			76				72			6
All other (1)		451				450			—			1,648				1,513			9
Total		$	13,763			14,351			(4	)		$	42,787			41,684			3
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Service charges on deposit accounts		$	1,204			1,163			1,173			1,246			1,276
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,334				2,354			2,403			2,401			2,304
Trust and investment management		835				835			850			866			840
Investment banking		462				486			430			420			465
Total trust and investment fees		3,631				3,675			3,683			3,687			3,609
Card fees		1,017				1,001			908			996			1,000
Other fees:
Charges and fees on loans		298				304			301			313			318
Cash network fees		121				120			126			120			126
Commercial real estate brokerage commissions		129				109			85			159			120
Letters of credit fees		72				72			79			78			77
Wire transfer and other remittance fees		120				121			116			115			114
All other fees		110				120			93			128			122
Total other fees		850				846			800			913			877
Mortgage banking:
Servicing income, net		390				406			468			262			309
Net gains on mortgage loan origination/sales activities		456				364			466			666			737
Total mortgage banking		846				770			934			928			1,046
Insurance		104				102			114			223			269
Net gains (losses) from trading activities (1)		158				191			243			(1	)		120
Net gains on debt securities		57				41			1			157			166
Net gains from equity securities (1)		416				295			783			572			363
Lease income		453				443			455			458			475
Life insurance investment income		167				162			164			153			152
All other		466				323			438			405			47
Total		$	9,369			9,012			9,696			9,737			9,400
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Salaries		$	4,461			4,465			4,363			4,403			4,356
Commission and incentive compensation		2,427				2,642			2,768			2,665			2,553
Employee benefits		1,377				1,245			1,598			1,293			1,279
Equipment		634				550			617			608			523
Net occupancy		718				722			713			715			716
Core deposit and other intangibles		264				265			265			288			288
FDIC and other deposit assessments		336				297			324			312			314
Operating losses		605				619			1,468			3,531			1,329
Outside professional services		761				881			821			1,025			955
Contract services (1)		593				536			447			410			415
Operating leases		311				311			320			325			347
Outside data processing		166				164			162			208			227
Travel and entertainment		141				157			152			183			154
Advertising and promotion		223				227			153			200			137
Postage, stationery and supplies		120				121			142			137			128
Telecommunications		90				88			92			92			90
Foreclosed assets		59				44			38			47			66
Insurance		26				24			26			28			24
All other (1)		451				624			573			330			450
Total		$	13,763			13,982			15,042			16,800			14,351
(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
		Sep 30,				Dec 31,			%
(in millions, except shares)		2018				2017			Change
Assets
Cash and due from banks		$	18,791			23,367			(20	)%
Interest-earning deposits with banks (1)		140,732				192,580			(27	)
Total cash, cash equivalents, and restricted cash (1)		159,523				215,947			(26	)
Federal funds sold and securities purchased under resale agreements (1)		83,471				80,025			4
Debt securities:
Trading, at fair value (2)		65,188				57,624			13
Available-for-sale, at fair value (2)		262,964				276,407			(5	)
Held-to-maturity, at cost		144,131				139,335			3
Mortgage loans held for sale		19,225				20,070			(4	)
Loans held for sale (2)		1,765				1,131			56
Loans		942,300				956,770			(2	)
Allowance for loan losses		(10,021		)		(11,004	)		(9	)
Net loans		932,279				945,766			(1	)
Mortgage servicing rights:
Measured at fair value		15,980				13,625			17
Amortized		1,414				1,424			(1	)
Premises and equipment, net		8,802				8,847			(1	)
Goodwill		26,425				26,587			(1	)
Derivative assets		11,811				12,228			(3	)
Equity securities (2)		61,755				62,497			(1	)
Other assets (2)		78,248				90,244			(13	)
Total assets		$	1,872,981			1,951,757			(4	)
Liabilities
Noninterest-bearing deposits		$	352,869			373,722			(6	)
Interest-bearing deposits		913,725				962,269			(5	)
Total deposits		1,266,594				1,335,991			(5	)
Short-term borrowings		105,451				103,256			2
Derivative liabilities		8,586				8,796			(2	)
Accrued expenses and other liabilities		71,348				70,615			1
Long-term debt		221,323				225,020			(2	)
Total liabilities		1,673,302				1,743,678			(4	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock		23,482				25,358			(7	)
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares		9,136				9,136			—
Additional paid-in capital		60,583				60,893			(1	)
Retained earnings		154,731				145,263			7
Cumulative other comprehensive income (loss)		(6,873		)		(2,144	)		221
Treasury stock – 770,250,428 shares and 590,194,846 shares		(40,538		)		(29,892	)		36
Unearned ESOP shares		(1,780		)		(1,678	)		6
Total Wells Fargo stockholders’ equity		198,741				206,936			(4	)
Noncontrolling interests		938				1,143			(18	)
Total equity		199,679				208,079			(4	)
Total liabilities and equity		$	1,872,981			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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Assets
Cash and due from banks		$	18,791			20,450			18,145			23,367			19,206
Interest-earning deposits with banks (1)		140,732				142,999			184,250			192,580			205,648
Total cash, cash equivalents, and restricted cash (1)		159,523				163,449			202,395			215,947			224,854
Federal funds sold and securities purchased under resale agreements (1)		83,471				80,184			73,550			80,025			67,457
Debt securities:
Trading, at fair value (2)		65,188				65,602			59,866			57,624			60,970
Available-for-sale, at fair value (2)		262,964				265,687			271,656			276,407			271,317
Held-to-maturity, at cost		144,131				144,206			141,446			139,335			142,423
Mortgage loans held for sale		19,225				21,509			17,944			20,070			20,009
Loans held for sale (2)		1,765				3,408			3,581			1,131			1,339
Loans		942,300				944,265			947,308			956,770			951,873
Allowance for loan losses		(10,021		)		(10,193	)		(10,373	)		(11,004	)		(11,078	)
Net loans		932,279				934,072			936,935			945,766			940,795
Mortgage servicing rights:
Measured at fair value		15,980				15,411			15,041			13,625			13,338
Amortized		1,414				1,407			1,411			1,424			1,406
Premises and equipment, net		8,802				8,882			8,828			8,847			8,449
Goodwill		26,425				26,429			26,445			26,587			26,581
Derivative assets		11,811				11,099			11,467			12,228			12,580
Equity securities (2)		61,755				57,505			58,935			62,497			54,981
Other assets (2)		78,248				80,850			85,888			90,244			88,381
Total assets		$	1,872,981			1,879,700			1,915,388			1,951,757			1,934,880
Liabilities
Noninterest-bearing deposits		$	352,869			365,021			370,085			373,722			366,528
Interest-bearing deposits		913,725				903,843			933,604			962,269			940,178
Total deposits		1,266,594				1,268,864			1,303,689			1,335,991			1,306,706
Short-term borrowings		105,451				104,496			97,207			103,256			93,811
Derivative liabilities		8,586				8,507			7,883			8,796			9,497
Accrued expenses and other liabilities		71,348				72,480			73,397			70,615			78,993
Long-term debt		221,323				219,284			227,302			225,020			239,256
Total liabilities		1,673,302				1,673,631			1,709,478			1,743,678			1,728,263
Equity
Wells Fargo stockholders’ equity:
Preferred stock		23,482				25,737			26,227			25,358			25,576
Common stock		9,136				9,136			9,136			9,136			9,136
Additional paid-in capital		60,583				59,644			60,399			60,893			60,759
Retained earnings		154,731				150,803			147,928			145,263			141,549
Cumulative other comprehensive income (loss)		(6,873		)		(5,461	)		(4,921	)		(2,144	)		(1,622	)
Treasury stock		(40,538		)		(32,620	)		(31,246	)		(29,892	)		(27,772	)
Unearned ESOP shares		(1,780		)		(2,051	)		(2,571	)		(1,678	)		(1,904	)
Total Wells Fargo stockholders’ equity		198,741				205,188			204,952			206,936			205,722
Noncontrolling interests		938				881			958			1,143			895
Total equity		199,679				206,069			205,910			208,079			206,617
Total liabilities and equity		$	1,872,981			1,879,700			1,915,388			1,951,757			1,934,880
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Trading assets
Debt securities		$	65,188			65,602			59,866			57,624			60,970
Equity securities (1)		26,138				22,978			25,327			30,004			22,797
Loans held for sale		1,266				1,350			1,695			1,023			1,182
Gross trading derivative assets		30,302				30,758			30,644			31,340			31,052
Netting (2)		(19,188		)		(20,687	)		(20,112	)		(19,629	)		(18,881	)
Total trading derivative assets		11,114				10,071			10,532			11,711			12,171
Total trading assets		103,706				100,001			97,420			100,362			97,120
Trading liabilities
Short sales		23,992				21,765			23,303			18,472			19,096
Gross trading derivative liabilities		29,268				29,847			29,717			31,386			30,365
Netting (2)		(21,842		)		(22,311	)		(22,569	)		(23,062	)		(21,662	)
Total trading derivative liabilities		7,426				7,536			7,148			8,324			8,703
Total trading liabilities		$	31,418			29,301			30,451			26,796			27,799
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Trading debt securities		$	65,188			65,602			59,866			57,624			60,970
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		6,187				6,271			6,279			6,319			6,350
Securities of U.S. states and political subdivisions		48,216				47,559			49,643			51,326			52,774
Mortgage-backed securities:
Federal agencies		153,511				154,556			156,814			160,219			150,181
Residential and commercial		6,939				8,286			9,264			9,173			11,046
Total mortgage-backed securities		160,450				162,842			166,078			169,392			161,227
Other debt securities		48,111				49,015			49,656			49,370			50,966
Total available-for-sale debt securities		262,964				265,687			271,656			276,407			271,317
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,743				44,735			44,727			44,720			44,712
Securities of U.S. states and political subdivisions		6,293				6,300			6,307			6,313			6,321
Federal agency and other mortgage-backed securities (1)		93,020				93,016			89,748			87,527			90,071
Other debt securities		75				155			664			775			1,319
Total held-to-maturity debt securities		144,131				144,206			141,446			139,335			142,423
Total debt securities		$	472,283			475,495			472,968			473,366			474,710
(1) Predominantly consists of federal agency mortgage-backed securities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER EQUITY SECURITIES
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Held for trading at fair value:
Marketable equity securities		$	26,138			22,978			25,327			30,004			22,797
Not held for trading:
Fair value:
Marketable equity securities (1)		5,705				5,273			4,931			4,356			4,348
Nonmarketable equity securities (2)		6,479				5,876			5,303			4,867			4,523
Total equity securities at fair value		12,184				11,149			10,234			9,223			8,871
Equity method:
LIHTC (3)		10,453				10,361			10,318			10,269			9,884
Private equity		3,838				3,732			3,840			3,839			3,757
Tax-advantaged renewable energy		1,967				1,950			1,822			1,950			1,954
New market tax credit and other		259				262			268			294			292
Total equity method		16,517				16,305			16,248			16,352			15,887
Other:
Federal bank stock and other at cost (4)		5,467				5,673			5,780			5,828			6,251
Private equity (5)		1,449				1,400			1,346			1,090			1,175
Total equity securities not held for trading		35,617				34,527			33,608			32,493			32,184
Total equity securities		$	61,755			57,505			58,935			62,497			54,981
(1) Includes $3.6 billion, $3.5 billion, $3.5 billion, $3.7 billion and $3.5 billion at September 30, June 30 and March 31, 2018, and December 31 and September 30, 2017, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.
(2) Includes $6.3 billion, $5.5 billion, $5.0 billion, $4.9 billion and $4.5 billion at September 30, June 30 and March 31, 2018, and December 31 and September 30, 2017, respectively, related to investments for which we elected the fair value option.
(3) Represents low-income housing tax credit investments.
(4) Includes $5.4 billion, $5.6 billion, $5.7 billion, $5.4 billion and $5.8 billion at September 30, June 30 and March 31, 2018, and December 31 and September 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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Commercial:
Commercial and industrial		$	338,048			336,590			334,678			333,125			327,944
Real estate mortgage		120,403				123,964			125,543			126,599			128,475
Real estate construction		23,690				22,937			23,882			24,279			24,520
Lease financing		19,745				19,614			19,293			19,385			19,211
Total commercial		501,886				503,105			503,396			503,388			500,150
Consumer:
Real estate 1-4 family first mortgage		284,273				283,001			282,658			284,054			280,173
Real estate 1-4 family junior lien mortgage		35,330				36,542			37,920			39,713			41,152
Credit card		37,812				36,684			36,103			37,976			36,249
Automobile		46,075				47,632			49,554			53,371			55,455
Other revolving credit and installment		36,924				37,301			37,677			38,268			38,694
Total consumer		440,414				441,160			443,912			453,382			451,723
Total loans (1)		$	942,300			944,265			947,308			956,770			951,873
(1) Includes $6.9 billion, $9.0 billion, $10.7 billion, $12.8 billion, and $13.6 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2018, and December 31 and September 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.

		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Commercial foreign loans:
Commercial and industrial		$	61,696			61,732			59,696			60,106			58,570
Real estate mortgage		6,891				7,617			8,082			8,033			8,032
Real estate construction		726				542			668			655			647
Lease financing		1,187				1,097			1,077			1,126			1,141
Total commercial foreign loans		$	70,500			70,988			69,523			69,920			68,390

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Nonaccrual loans:
Commercial:
Commercial and industrial		$	1,555			1,559			1,516			1,899			2,397
Real estate mortgage		603				765			755			628			593
Real estate construction		44				51			45			37			38
Lease financing		96				80			93			76			81
Total commercial		2,298				2,455			2,409			2,640			3,109
Consumer:
Real estate 1-4 family first mortgage		3,605				3,829			4,053			4,122			4,213
Real estate 1-4 family junior lien mortgage		984				1,029			1,087			1,086			1,101
Automobile		118				119			117			130			137
Other revolving credit and installment		48				54			53			58			59
Total consumer		4,755				5,031			5,310			5,396			5,510
Total nonaccrual loans (1)(2)(3)		$	7,053			7,486			7,719			8,036			8,619
As a percentage of total loans		0.75		%		0.79			0.81			0.84			0.91
Foreclosed assets:
Government insured/guaranteed		$	87			90			103			120			137
Non-government insured/guaranteed		435				409			468			522			569
Total foreclosed assets		522				499			571			642			706
Total nonperforming assets		$	7,575			7,985			8,290			8,678			9,325
As a percentage of total loans		0.80		%		0.85			0.88			0.91			0.98
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Total (excluding PCI)(1):		$	9,209			9,464			10,753			11,997			10,227
Less: FHA insured/VA guaranteed (2)(3)		8,276				8,622			9,786			10,934			9,266
Total, not government insured/guaranteed		$	933			842			967			1,063			961
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial		$	42			23			40			26			27
Real estate mortgage		56				26			23			23			11
Real estate construction		—				—			1			—			—
Total commercial		98				49			64			49			38
Consumer:
Real estate 1-4 family first mortgage (3)		129				133			164			219			190
Real estate 1-4 family junior lien mortgage (3)		32				33			48			60			49
Credit card		460				429			473			492			475
Automobile		108				105			113			143			111
Other revolving credit and installment		106				93			105			100			98
Total consumer		835				793			903			1,014			923
Total, not government insured/guaranteed		$	933			842			967			1,063			961
(1) PCI loans totaled $567 million, $811 million, $1.0 billion, $1.4 billion and $1.4 billion, at September 30, June 30 and March 31, 2018, and December 31 and September 30, 2017, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgage loans 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				Nine months
		ended				ended
		Sep 30,				Sep 30,
(in millions)		2018				2018			2009-2017
Balance, beginning of period		$	5,733			8,887			10,447
Change in accretable yield due to acquisitions		—				—			161
Accretion into interest income (1)		(279		)		(892	)		(16,983	)
Accretion into noninterest income due to sales (2)		(638		)		(1,760	)		(801	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)		3				402			11,597
Changes in expected cash flows that do not affect nonaccretable difference (4)		(410		)		(2,228	)		4,466
Balance, end of period		$	4,409			4,409			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 September 30, 2018, our carrying value for PCI loans totaled $6.9 billion and the remainder of nonaccretable difference established in purchase accounting totaled $419 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 September 30,							Nine months ended September 30,
(in millions)		2018				2017			2018			2017
Balance, beginning of period		$	11,110			12,146			11,960			12,540
Provision for credit losses		580				717			1,223			1,877
Interest income on certain impaired loans (1)		(42		)		(43	)		(128	)		(137	)
Loan charge-offs:
Commercial:
Commercial and industrial		(209		)		(194	)		(507	)		(608	)
Real estate mortgage		(9		)		(21	)		(30	)		(34	)
Real estate construction		—				—			—			—
Lease financing		(15		)		(11	)		(52	)		(31	)
Total commercial		(233		)		(226	)		(589	)		(673	)
Consumer:
Real estate 1-4 family first mortgage		(45		)		(67	)		(141	)		(191	)
Real estate 1-4 family junior lien mortgage		(47		)		(70	)		(141	)		(225	)
Credit card		(376		)		(337	)		(1,185	)		(1,083	)
Automobile		(214		)		(274	)		(730	)		(741	)
Other revolving credit and installment		(161		)		(170	)		(505	)		(544	)
Total consumer		(843		)		(918	)		(2,702	)		(2,784	)
Total loan charge-offs		(1,076		)		(1,144	)		(3,291	)		(3,457	)
Loan recoveries:
Commercial:
Commercial and industrial		61				69			216			234
Real estate mortgage		10				24			46			68
Real estate construction		2				15			12			27
Lease financing		8				5			18			13
Total commercial		81				113			292			342
Consumer:
Real estate 1-4 family first mortgage		70				83			207			216
Real estate 1-4 family junior lien mortgage		56				69			171			205
Credit card		77				60			231			177
Automobile		84				72			279			246
Other revolving credit and installment		28				30			88			94
Total consumer		315				314			976			938
Total loan recoveries		396				427			1,268			1,280
Net loan charge-offs		(680		)		(717	)		(2,023	)		(2,177	)
Other		(12		)		6			(76	)		6
Balance, end of period		$	10,956			12,109			10,956			12,109
Components:
Allowance for loan losses		$	10,021			11,078			10,021			11,078
Allowance for unfunded credit commitments		935				1,031			935			1,031
Allowance for credit losses		$	10,956			12,109			10,956			12,109
Net loan charge-offs (annualized) as a percentage of average total loans		0.29		%		0.30			0.29			0.30
Allowance for loan losses as a percentage of total loans		1.06				1.16			1.06			1.16
Allowance for credit losses as a percentage of total loans		1.16				1.27			1.16			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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Balance, beginning of quarter		$	11,110			11,313			11,960			12,109			12,146
Provision for credit losses		580				452			191			651			717
Interest income on certain impaired loans (1)		(42		)		(43	)		(43	)		(49	)		(43	)
Loan charge-offs:
Commercial:
Commercial and industrial		(209		)		(134	)		(164	)		(181	)		(194	)
Real estate mortgage		(9		)		(19	)		(2	)		(4	)		(21	)
Real estate construction		—				—			—			—			—
Lease financing		(15		)		(20	)		(17	)		(14	)		(11	)
Total commercial		(233		)		(173	)		(183	)		(199	)		(226	)
Consumer:
Real estate 1-4 family first mortgage		(45		)		(55	)		(41	)		(49	)		(67	)
Real estate 1-4 family junior lien mortgage		(47		)		(47	)		(47	)		(54	)		(70	)
Credit card		(376		)		(404	)		(405	)		(398	)		(337	)
Automobile		(214		)		(216	)		(300	)		(261	)		(274	)
Other revolving credit and installment		(161		)		(164	)		(180	)		(169	)		(170	)
Total consumer		(843		)		(886	)		(973	)		(931	)		(918	)
Total loan charge-offs		(1,076		)		(1,059	)		(1,156	)		(1,130	)		(1,144	)
Loan recoveries:
Commercial:
Commercial and industrial		61				76			79			63			69
Real estate mortgage		10				19			17			14			24
Real estate construction		2				6			4			3			15
Lease financing		8				5			5			4			5
Total commercial		81				106			105			84			113
Consumer:
Real estate 1-4 family first mortgage		70				78			59			72			83
Real estate 1-4 family junior lien mortgage		56				60			55			61			69
Credit card		77				81			73			62			60
Automobile		84				103			92			73			72
Other revolving credit and installment		28				29			31			27			30
Total consumer		315				351			310			295			314
Total loan recoveries		396				457			415			379			427
Net loan charge-offs		(680		)		(602	)		(741	)		(751	)		(717	)
Other		(12		)		(10	)		(54	)		—			6
Balance, end of quarter		$	10,956			11,110			11,313			11,960			12,109
Components:
Allowance for loan losses		$	10,021			10,193			10,373			11,004			11,078
Allowance for unfunded credit commitments		935				917			940			956			1,031
Allowance for credit losses		$	10,956			11,110			11,313			11,960			12,109
Net loan charge-offs (annualized) as a percentage of average total loans		0.29		%		0.26			0.32			0.31			0.30
Allowance for loan losses as a percentage of:
Total loans		1.06				1.08			1.10			1.15			1.16
Nonaccrual loans		142				136			134			137			129
Nonaccrual loans and other nonperforming assets		132				128			125			127			119
Allowance for credit losses as a percentage of:
Total loans		1.16				1.18			1.19			1.25			1.27
Nonaccrual loans		155				148			147			149			141
Nonaccrual loans and other nonperforming assets		145				139			136			138			130
(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)
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions, except ratios)				2018				2018			2018			2017			2017
Tangible book value per common share (1):
Total equity				$	199,679			206,069			205,910			208,079			206,617
Adjustments:
Preferred stock				(23,482		)		(25,737	)		(26,227	)		(25,358	)		(25,576	)
Additional paid-in capital on ESOP preferred stock				(105		)		(116	)		(146	)		(122	)		(130	)
Unearned ESOP shares				1,780				2,051			2,571			1,678			1,904
Noncontrolling interests				(938		)		(881	)		(958	)		(1,143	)		(895	)
Total common stockholders' equity		(A)		176,934				181,386			181,150			183,134			181,920
Adjustments:
Goodwill				(26,425		)		(26,429	)		(26,445	)		(26,587	)		(26,581	)
Certain identifiable intangible assets (other than MSRs)				(826		)		(1,091	)		(1,357	)		(1,624	)		(1,913	)
Other assets (2)				(2,121		)		(2,160	)		(2,388	)		(2,155	)		(2,282	)
Applicable deferred taxes (3)				829				874			918			962			1,550
Tangible common equity		(B)		$	148,391			152,580			151,878			153,730			152,694
Common shares outstanding		(C)		4,711.6				4,849.1			4,873.9			4,891.6			4,927.9
Book value per common share		(A)/(C)		$	37.55			37.41			37.17			37.44			36.92
Tangible book value per common share		(B)/(C)		31.49				31.47			31.16			31.43			30.99

				Quarter ended																Nine months ended
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,			Sep 30,			Sep 30,
(in millions, except ratios)				2018				2018			2018			2017			2017			2018			2017
Return on average tangible common equity (1):
Net income applicable to common stock		(A)		$	5,453			4,792			4,733			5,740			4,131			14,978			14,814
Average total equity				202,826				206,067			206,180			207,413			207,723			205,012			205,035
Adjustments:
Preferred stock				(24,219		)		(26,021	)		(26,157	)		(25,569	)		(25,780	)		(25,459	)		(25,600	)
Additional paid-in capital on ESOP preferred stock				(115		)		(129	)		(153	)		(129	)		(136	)		(132	)		(142	)
Unearned ESOP shares				2,026				2,348			2,508			1,896			2,114			2,292			2,226
Noncontrolling interests				(892		)		(919	)		(997	)		(998	)		(926	)		(936	)		(931	)
Average common stockholders’ equity		(B)		179,626				181,346			181,381			182,613			182,995			180,777			180,588
Adjustments:
Goodwill				(26,429		)		(26,444	)		(26,516	)		(26,579	)		(26,600	)		(26,463	)		(26,645	)
Certain identifiable intangible assets (other than MSRs)				(958		)		(1,223	)		(1,489	)		(1,767	)		(2,056	)		(1,221	)		(2,314	)
Other assets (2)				(2,083		)		(2,271	)		(2,233	)		(2,245	)		(2,231	)		(2,195	)		(2,163	)
Applicable deferred taxes (3)				845				889			933			1,332			1,579			889			1,650
Average tangible common equity		(C)		$	151,001			152,297			152,076			153,354			153,687			151,787			151,116
Return on average common stockholders' equity (ROE) (annualized)		(A)/(B)		12.04		%		10.60			10.58			12.47			8.96			11.08			10.97
Return on average tangible common equity (ROTCE) (annualized)		(A)/(C)		14.33				12.62			12.62			14.85			10.66			13.19			13.11
(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
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in billions, except ratio)				2018				2018			2018			2017			2017
Total equity				$	199.7			206.1			205.9			208.1			206.6
Adjustments:
Preferred stock				(23.5		)		(25.7	)		(26.2	)		(25.4	)		(25.6	)
Additional paid-in capital on ESOP preferred stock				(0.1		)		(0.1	)		(0.1	)		(0.1	)		(0.1	)
Unearned ESOP shares				1.8				2.0			2.6			1.7			1.9
Noncontrolling interests				(0.9		)		(0.9	)		(1.0	)		(1.1	)		(0.9	)
Total common stockholders' equity				177.0				181.4			181.2			183.2			181.9
Adjustments:
Goodwill				(26.4		)		(26.4	)		(26.4	)		(26.6	)		(26.6	)
Certain identifiable intangible assets (other than MSRs)				(0.8		)		(1.1	)		(1.4	)		(1.6	)		(1.9	)
Other assets (2)				(2.1		)		(2.2	)		(2.4	)		(2.2	)		(2.3	)
Applicable deferred taxes (3)				0.8				0.9			0.9			1.0			1.6
Investment in certain subsidiaries and other				0.3				0.4			0.4			0.2			(0.1	)
Common Equity Tier 1 (Fully Phased-In) under Basel III		(A)		148.8				153.0			152.3			154.0			152.6
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)		(B)		$	1,252.4			1,276.3			1,278.1			1,285.6			1,292.8
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)		(A)/(B)		11.9		%		12.0			11.9			12.0			11.8
(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 September 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 June 30 and March 31, 2018, and December 31 and September 30, 2017, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s September 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 Sep 30,
Net interest income (3)		$	7,338			7,154			4,726			4,763			1,102			1,177			(594	)		(645	)		12,572			12,449
Provision (reversal of provision) for credit losses		547				650			26			69			6			(1	)		1			(1	)		580			717
Noninterest income		4,478				4,366			2,578			2,741			3,124			3,079			(811	)		(786	)		9,369			9,400
Noninterest expense		7,467				7,852			3,935			4,234			3,243			3,102			(882	)		(837	)		13,763			14,351
Income (loss) before income tax expense (benefit)		3,802				3,018			3,343			3,201			977			1,155			(524	)		(593	)		7,598			6,781
Income tax expense (benefit)		925				1,079			475			894			244			433			(132	)		(225	)		1,512			2,181
Net income (loss) before noncontrolling interests		2,877				1,939			2,868			2,307			733			722			(392	)		(368	)		6,086			4,600
Less: Net income (loss) from noncontrolling interests		61				62			17			(7	)		1			3			—			—			79			58
Net income (loss)		$	2,816			1,877			2,851			2,314			732			719			(392	)		(368	)		6,007			4,542
Average loans		$	460.9			473.7			462.8			463.7			74.6			72.4			(58.8	)		(57.5	)		939.5			952.3
Average assets		1,024.9				1,089.6			827.2			824.2			83.8			83.2			(59.6	)		(58.5	)		1,876.3			1,938.5
Average deposits		760.9				734.6			413.6			463.4			159.8			184.4			(67.9	)		(76.0	)		1,266.4			1,306.4
Nine months ended Sep 30,
Net interest income (3)		$	21,879			21,419			13,951			14,253			3,325			3,489			(1,804	)		(1,917	)		37,351			37,244
Provision (reversal of provision) for credit losses		1,249				1,919			(30	)		(39	)		(2	)		2			6			(5	)		1,223			1,877
Noninterest income		13,573				13,879			7,829			8,307			9,094			9,250			(2,419	)		(2,341	)		28,077			29,095
Noninterest expense		23,459				22,399			12,132			12,437			9,894			9,377			(2,698	)		(2,529	)		42,787			41,684
Income (loss) before income tax expense (benefit)		10,744				10,980			9,678			10,162			2,527			3,360			(1,531	)		(1,724	)		21,418			22,778
Income tax expense (benefit)		3,147				3,316			1,302			2,642			630			1,255			(383	)		(654	)		4,696			6,559
Net income (loss) before noncontrolling interests		7,597				7,664			8,376			7,520			1,897			2,105			(1,148	)		(1,070	)		16,722			16,219
Less: Net income (loss) from noncontrolling interests		372				198			15			(21	)		6			10			—			—			393			187
Net income (loss)		$	7,225			7,466			8,361			7,541			1,891			2,095			(1,148	)		(1,070	)		16,329			16,032
Average loans		$	465.0			476.5			464.2			466.3			74.4			71.6			(58.8	)		(56.8	)		944.8			957.6
Average assets		1,040.2				1,089.6			827.6			817.9			84.0			82.5			(59.6	)		(57.8	)		1,892.2			1,932.2
Average deposits		756.4				726.8			424.4			463.7			168.2			190.6			(70.8	)		(78.8	)		1,278.2			1,302.3
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(income/expense in millions, average balances in billions)		2018				2018			2018			2017			2017
COMMUNITY BANKING
Net interest income (2)		$	7,338			7,346			7,195			7,239			7,154
Provision for credit losses		547				484			218			636			650
Noninterest income		4,478				4,460			4,635			4,481			4,366
Noninterest expense		7,467				7,290			8,702			10,216			7,852
Income before income tax expense		3,802				4,032			2,910			868			3,018
Income tax expense (benefit)		925				1,413			809			(2,682	)		1,079
Net income before noncontrolling interests		2,877				2,619			2,101			3,550			1,939
Less: Net income from noncontrolling interests		61				123			188			78			62
Segment net income		$	2,816			2,496			1,913			3,472			1,877
Average loans		$	460.9			463.8			470.5			473.2			473.7
Average assets		1,024.9				1,034.3			1,061.9			1,073.2			1,089.6
Average deposits		760.9				760.6			747.5			738.3			734.6
WHOLESALE BANKING
Net interest income (2)		$	4,726			4,693			4,532			4,557			4,763
Provision (reversal of provision) for credit losses		26				(36	)		(20	)		20			69
Noninterest income		2,578				2,504			2,747			2,883			2,741
Noninterest expense		3,935				4,219			3,978			4,187			4,234
Income before income tax expense		3,343				3,014			3,321			3,233			3,201
Income tax expense		475				379			448			854			894
Net income before noncontrolling interests		2,868				2,635			2,873			2,379			2,307
Less: Net income (loss) from noncontrolling interests		17				—			(2	)		6			(7	)
Segment net income		$	2,851			2,635			2,875			2,373			2,314
Average loans		$	462.8			464.7			465.1			463.5			463.7
Average assets		827.2				826.4			829.2			837.2			824.2
Average deposits		413.6				414.0			446.0			465.7			463.4
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)		$	1,102			1,111			1,112			1,152			1,177
Provision (reversal of provision) for credit losses		6				(2	)		(6	)		(7	)		(1	)
Noninterest income		3,124				2,840			3,130			3,181			3,079
Noninterest expense		3,243				3,361			3,290			3,246			3,102
Income before income tax expense		977				592			958			1,094			1,155
Income tax expense		244				147			239			413			433
Net income before noncontrolling interests		733				445			719			681			722
Less: Net income from noncontrolling interests		1				—			5			6			3
Segment net income		$	732			445			714			675			719
Average loans		$	74.6			74.7			73.9			72.9			72.4
Average assets		83.8				84.0			84.2			83.7			83.2
Average deposits		159.8				167.1			177.9			184.1			184.4
OTHER (3)
Net interest income (2)		$	(594	)		(609	)		(601	)		(635	)		(645	)
Provision (reversal of provision) for credit losses		1				6			(1	)		2			(1	)
Noninterest income		(811		)		(792	)		(816	)		(808	)		(786	)
Noninterest expense		(882		)		(888	)		(928	)		(849	)		(837	)
Loss before income tax benefit		(524		)		(519	)		(488	)		(596	)		(593	)
Income tax benefit		(132		)		(129	)		(122	)		(227	)		(225	)
Net loss before noncontrolling interests		(392		)		(390	)		(366	)		(369	)		(368	)
Less: Net income from noncontrolling interests		—				—			—			—			—
Other net loss		$	(392	)		(390	)		(366	)		(369	)		(368	)
Average loans		$	(58.8	)		(59.1	)		(58.5	)		(57.8	)		(57.5	)
Average assets		(59.6		)		(59.8	)		(59.4	)		(58.8	)		(58.5	)
Average deposits		(67.9		)		(70.4	)		(74.2	)		(76.5	)		(76.0	)
CONSOLIDATED COMPANY
Net interest income (2)		$	12,572			12,541			12,238			12,313			12,449
Provision for credit losses		580				452			191			651			717
Noninterest income		9,369				9,012			9,696			9,737			9,400
Noninterest expense		13,763				13,982			15,042			16,800			14,351
Income before income tax expense		7,598				7,119			6,701			4,599			6,781
Income tax expense (benefit)		1,512				1,810			1,374			(1,642	)		2,181
Net income before noncontrolling interests		6,086				5,309			5,327			6,241			4,600
Less: Net income from noncontrolling interests		79				123			191			90			58
Wells Fargo net income		$	6,007			5,186			5,136			6,151			4,542
Average loans		$	939.5			944.1			951.0			951.8			952.3
Average assets		1,876.3				1,884.9			1,915.9			1,935.3			1,938.5
Average deposits		1,266.4				1,271.3			1,297.2			1,311.6			1,306.4
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
MSRs measured using the fair value method:
Fair value, beginning of quarter		$	15,411			15,041			13,625			13,338			12,789
Purchases		—				—			—			—			541
Servicing from securitizations or asset transfers (1)		502				486			573			639			605
Sales and other (2)		(2		)		(1	)		(4	)		(32	)		64
Net additions		500				485			569			607			1,210
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)		582				376			1,253			221			(171	)
Servicing and foreclosure costs (4)		(9		)		30			34			23			60
Discount rates (5)		(9		)		—			—			13			—
Prepayment estimates and other (6)		(33		)		(61	)		43			(55	)		(31	)
Net changes in valuation model inputs or assumptions		531				345			1,330			202			(142	)
Changes due to collection/realization of expected cash flows over time		(462		)		(460	)		(483	)		(522	)		(519	)
Total changes in fair value		69				(115	)		847			(320	)		(661	)
Fair value, end of quarter		$	15,980			15,411			15,041			13,625			13,338
(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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Amortized MSRs:
Balance, beginning of quarter		$	1,407			1,411			1,424			1,406			1,399
Purchases		42				22			18			40			31
Servicing from securitizations or asset transfers		33				39			34			43			41
Amortization		(68		)		(65	)		(65	)		(65	)		(65	)
Balance, end of quarter		$	1,414			1,407			1,411			1,424			1,406
Fair value of amortized MSRs:
Beginning of quarter		$	2,309			2,307			2,025			1,990			1,989
End of quarter		2,389				2,309			2,307			2,025			1,990

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
				Quarter ended
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)				2018				2018			2018			2017			2017
Servicing income, net:
Servicing fees (1)				$	890			905			906			833			795
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(A)		531				345			1,330			202			(142	)
Changes due to collection/realization of expected cash flows over time				(462		)		(460	)		(483	)		(522	)		(519	)
Total changes in fair value of MSRs carried at fair value				69				(115	)		847			(320	)		(661	)
Amortization				(68		)		(65	)		(65	)		(65	)		(65	)
Net derivative gains (losses) from economic hedges (3)		(B)		(501		)		(319	)		(1,220	)		(186	)		240
Total servicing income, net				$	390			406			468			262			309
Market-related valuation changes to MSRs, net of hedge results (2)(3)		(A)+(B)		$	30			26			110			16			98
(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.

		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in billions)		2018				2018			2018			2017			2017
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others		$	1,184			1,190			1,201			1,209			1,223
Owned loans serviced		337				340			337			342			340
Subserviced for others		5				4			5			3			3
Total residential servicing		1,526				1,534			1,543			1,554			1,566
Commercial mortgage servicing:
Serviced for others		529				518			510			495			480
Owned loans serviced		121				124			125			127			128
Subserviced for others		9				10			10			9			8
Total commercial servicing		659				652			645			631			616
Total managed servicing portfolio		$	2,185			2,186			2,188			2,185			2,182
Total serviced for others		$	1,713			1,708			1,711			1,704			1,703
Ratio of MSRs to related loans serviced for others		1.02		%		0.98			0.96			0.88			0.87
Weighted-average note rate (mortgage loans serviced for others)		4.29				4.27			4.24			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
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
				2018				2018			2018			2017			2017
Net gains on mortgage loan origination/sales activities (in millions):
Residential		(A)		$	324			281			324			504			546
Commercial				75				49			76			95			81
Residential pipeline and unsold/repurchased loan management (1)				57				34			66			67			110
Total				$	456			364			466			666			737
Application data (in billions):
Wells Fargo first mortgage quarterly applications				$	57			67			58			63			73
Refinances as a percentage of applications				26		%		25			35			38			37
Wells Fargo first mortgage unclosed pipeline, at quarter end				$	22			26			24			23			29
Residential real estate originations:
Purchases as a percentage of originations				81		%		78			65			64			72
Refinances as a percentage of originations				19				22			35			36			28
Total				100		%		100			100			100			100
Wells Fargo first mortgage loans (in billions):
Retail				$	18			21			16			23			26
Correspondent				27				28			27			30			32
Other (2)				1				1			—			—			1
Total quarter-to-date				$	46			50			43			53			59
Held-for-sale		(B)		$	33			37			34			40			44
Held-for-investment				13				13			9			13			15
Total quarter-to-date				$	46			50			43			53			59
Total year-to-date				$	139			93			43			212			159
Production margin on residential held-for-sale mortgage originations		(A)/(B)		0.97		%		0.77			0.94			1.25			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
		Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)		2018				2018			2018			2017			2017
Balance, beginning of period		$	179			181			181			179			178
Assumed with MSR purchases (1)		—				—			—			—			10
Provision for repurchase losses:
Loan sales		5				4			3			4			6
Change in estimate (2)		(4		)		(2	)		1			2			(12	)
Net additions (reductions) to provision		1				2			4			6			(6	)
Losses		(2		)		(4	)		(4	)		(4	)		(3	)
Balance, end of period		$	178			179			181			181			179
(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.