Wells Fargo Reports $6.1 Billion in Quarterly Net Income; Diluted EPS of $1.21

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

• Full year 2018 financial results:
  • Net income of $22.4 billion, compared with $22.2 billion in 2017
  • Diluted earnings per share (EPS) of $4.28, compared with $4.10
  • Return on assets (ROA) of 1.19 percent, return on equity (ROE) of 11.53 percent, and return on average tangible common equity (ROTCE) of 13.73 percent¹
  • Revenue of $86.4 billion, down from $88.4 billion
  • Noninterest expense of $56.1 billion, down from $58.5 billion
  • Returned $25.8 billion to shareholders through common stock dividends and net share repurchases
    • Net share repurchases of $17.9 billion, which more than doubled from $6.8 billion in 2017
    • Common stock dividends of $1.64 per share, up 6 percent from $1.54 per share
    • Period-end common shares outstanding down 310.3 million shares, or 6 percent
• Fourth quarter 2018 financial results:
  • Net income of $6.1 billion, compared with $6.2 billion in fourth quarter 2017
  • Diluted earnings per share (EPS) of $1.21, compared with $1.16
  • ROA of 1.28 percent, ROE of 12.89 percent, and ROTCE of 15.39 percent¹
  • Revenue of $21.0 billion, down from $22.1 billion
    • Net interest income of $12.6 billion, up $331 million
    • Noninterest income of $8.3 billion, down $1.4 billion
  • Noninterest expense of $13.3 billion, down $3.5 billion
  • Income tax expense of $966 million, compared with an income tax benefit of $1.6 billion
  • Average deposits of $1.3 trillion, down $42.6 billion, or 3 percent
  • Average loans of $946.3 billion, down $5.5 billion, or 1 percent
  • Provision expense of $521 million, down $130 million, or 20 percent
    • Net charge-offs of 0.30 percent of average loans (annualized), down from 0.31 percent
    • Reserve release² of $200 million, compared with $100 million release
  • Nonaccrual loans of $6.5 billion, down $1.2 billion, or 15 percent

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 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										Year ended Dec. 31,
		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017			2018			2017
Earnings
Diluted earnings per common share		$	1.21			1.13			1.16			4.28			4.10
Wells Fargo net income (in billions)		6.06				6.01			6.15			22.39			22.18
Return on assets (ROA)		1.28		%		1.27			1.26			1.19			1.15
Return on equity (ROE)		12.89				12.04			12.47			11.53			11.35
Return on average tangible common equity (ROTCE) (a)		15.39				14.33			14.85			13.73			13.55
Asset Quality
Net charge-offs (annualized) as a % of average total loans		0.30		%		0.29			0.31			0.29			0.31
Allowance for credit losses as a % of total loans		1.12				1.16			1.25			1.12			1.25
Allowance for credit losses as a % of annualized net charge-offs		374				406			401			390			408
Other
Revenue (in billions)		$	21.0			21.9			22.1			86.4			88.4
Efficiency ratio (b)		63.6		%		62.7			76.2			65.0			66.2
Average loans (in billions)		$	946.3			939.5			951.8			945.2			956.1
Average deposits (in billions)		1,268.9				1,266.4			1,311.6			1,275.9			1,304.6
Net interest margin		2.94		%		2.94			2.84			2.91			2.87
(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 $6.1 billion, or $1.21 per diluted common share, for fourth quarter 2018, compared with $6.2 billion, or $1.16 per share, for fourth quarter 2017, and $6.0 billion, or $1.13 per share, for third quarter 2018.

Chief Executive Officer Tim Sloan said, “I’m proud of the transformational changes we made at Wells Fargo during 2018 including significant progress on our six goals. We have made meaningful improvements to how we manage risk across the company, particularly operational and compliance risk. We improved customer service which resulted in both ‘Customer Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ branch survey scores reaching a 24-month high in December. Our voluntary team member attrition in 2018 improved to its lowest level in six years reflecting our efforts to make Wells Fargo a better place to work, and we continue to attract impressive leaders from outside the company. We launched many customer-focused innovations including our online mortgage application, Control Tower^SM, Pay with Wells Fargo, and our new Propel^® Card. Our commitment to building stronger communities was demonstrated by exceeding our target of donating $400 million to communities across the U.S., and a recent example was our Holiday Food Bank program which provided over 50 million meals during the holidays. Our focus on delivering long-term shareholder value included meeting our 2018 expense target and returning a record $25.8 billion to shareholders in 2018, up 78% from 2017. I want to thank our team members for their commitment to making Wells Fargo a better bank in 2018. I’m confident that we’ll continue to make Wells Fargo even better in 2019.”

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $6.1 billion of net income in the fourth quarter. Compared with the third quarter, we grew both loans and deposits and credit performance remained strong. In addition, our effective income tax rate was lower compared with the prior quarter, and we maintained solid capital levels even as we reduced our common shares outstanding. We continued to have positive business trends in the fourth quarter with primary consumer checking customers, consumer credit card active accounts, debit and credit card usage, commercial loan balances, and loan originations in auto, small business, home equity and student lending all growing compared with a year ago. Our focus on reducing expenses enabled us to meet our 2018 expense target, and we are on track to meet our 2019 expense target as well.”

Net Interest Income

Net interest income in the fourth quarter was $12.6 billion, up $72 million from third quarter 2018, driven primarily by the benefits of higher average interest rates and favorable hedge ineffectiveness accounting results, partially offset by the impacts from balance sheet mix and lower variable income. Net interest margin was 2.94 percent, flat compared with the prior quarter.

Noninterest Income

Noninterest income in the fourth quarter was $8.3 billion, down $1.0 billion from third quarter 2018. Fourth quarter noninterest income included lower market sensitive revenue³, mortgage banking fees and trust and investment fees, partially offset by higher other income.

• Mortgage banking income was $467 million, down from $846 million in third quarter 2018. Net mortgage servicing income was $109 million, down from $390 million in the third quarter predominantly due to updated mortgage servicing rights valuation assumptions driven by recent market observations. The production margin on residential held-for-sale mortgage loan originations⁴ decreased to 0.89 percent, from 0.97 percent in the third quarter, primarily due to lower retail margins, partially offset by a lower percentage of correspondent volume. Residential mortgage loan originations in the fourth quarter were $38 billion, down from $46 billion in the third quarter primarily due to seasonality.
• Market sensitive revenue³ was $40 million, down from $631 million in third quarter 2018, primarily due to lower net gains from equity securities as lower deferred compensation plan investment results were partially offset by higher equity investment gains. The decrease related to the deferred compensation plan was offset by lower employee benefits expense. Revenue from trading activities declined compared with the prior quarter as well, driven by wider spreads in credit and asset backed products.
• Other income was $595 million, up from $466 million in the third quarter. The increase in the fourth quarter included a $117 million gain from the previously announced sale of 52 branches.

Noninterest Expense

Noninterest expense in the fourth quarter declined $424 million from the prior quarter to $13.3 billion, predominantly due to a $671 million decline in employee benefits driven by lower deferred compensation expense (largely offset in market sensitive revenue), lower FDIC expense due to the completion of their special assessment, and lower operating losses. These decreases were partially offset by higher other expense, operating lease expense on lease asset impairment, outside professional services and salary expense. The efficiency ratio was 63.6 percent in fourth quarter 2018, compared with 62.7 percent in the third quarter.

Fourth quarter 2018 operating losses were $432 million and included a $175 million accrual for an agreement reached in December 2018 with all 50 state Attorneys General and the District of Columbia regarding previously disclosed matters.

Income Taxes

The Company’s effective income tax rate was 13.7 percent for fourth quarter 2018, compared with 20.1 percent for third quarter 2018, which included net discrete income tax expense in the third quarter related to re-measurement of our initial estimates for the impacts of the Tax Cuts & Jobs Act (Tax Act) recognized in fourth quarter 2017. The fourth quarter 2018 income tax rate included $158 million of net discrete income tax benefits primarily related to the results of state income tax audits and incremental state tax credits. In addition, the fourth quarter income tax rate benefited from $137 million related to revisions to our full year 2018 effective income tax rate made during the quarter. The Company's full year 2018 effective income tax rate was 20.2 percent (18 percent before discrete items). We currently expect the effective income tax rate for full year 2019 to be approximately 18 percent, excluding the impact of any unanticipated discrete items.

Loans

Total average loans were $946.3 billion in the fourth quarter, up $6.9 billion from the third quarter. Period-end loan balances were $953.1 billion at December 31, 2018, up $10.8 billion from September 30, 2018. Commercial loans were up $11.5 billion compared with September 30, 2018, due to $12.2 billion of growth in commercial and industrial loans, partially offset by a $583 million decline in commercial real estate loans. Consumer loans decreased $709 million from the prior quarter, reflecting the following:

• Real estate 1-4 family first mortgage loans increased $792 million, as $9.8 billion of held-for-investment nonconforming mortgage loan originations were predominantly offset by payoffs and $1.6 billion of sales of purchased credit-impaired (PCI) Pick-a-Pay mortgage loans. Additionally, $562 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 fourth quarter 2018 in anticipation of the future issuance of residential mortgage-backed securities (RMBS).
• Real estate 1-4 family junior lien mortgage loans decreased $932 million, as payoffs continued to exceed originations
• Credit card loans increased $1.2 billion primarily due to seasonality
• Automobile loans declined $1.0 billion due to expected continued runoff

Period-End Loan Balances
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Commercial		$	513,405			501,886			503,105			503,396			503,388
Consumer		439,705				440,414			441,160			443,912			453,382
Total loans		$	953,110			942,300			944,265			947,308			956,770
Change from prior quarter		$	10,810			(1,965	)		(3,043	)		(9,462	)		4,897

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 $484.7 billion at December 31, 2018, up $12.4 billion from the third quarter, predominantly due to a net increase in available-for-sale and held for trading debt securities. Debt securities purchases of approximately $16.9 billion, primarily U.S. Treasury and federal agency mortgage-backed securities (MBS) in the available-for-sale portfolio, more than offset runoff and sales.

Net unrealized losses on available-for-sale debt securities were $2.6 billion at December 31, 2018, compared with net unrealized losses of $3.8 billion at September 30, 2018, predominantly due to lower interest rates, partially offset by higher credit spreads.

Equity securities include marketable and non-marketable equity securities, as well as equity securities held for trading. Equity securities were $55.1 billion at December 31, 2018, down $6.6 billion from the third quarter, predominantly due to a decrease in equity securities held for trading.

Deposits

Total average deposits for fourth quarter 2018 were $1.3 trillion, up $2.6 billion from the prior quarter as growth in commercial deposits was partially offset by lower consumer and small business banking deposits, which included $1.8 billion of deposits associated with the previously announced sale of 52 branches that closed on November 30. The average deposit cost for fourth quarter 2018 was 55 basis points, up 8 basis points from the prior quarter and 27 basis points from a year ago.

Capital

Capital in the fourth quarter continued to exceed our internal target, with a Common Equity Tier 1 ratio (fully phased-in) of 11.7 percent⁵, down from 11.9 percent in the prior quarter. In fourth quarter 2018, the Company repurchased 142.7 million shares of its common stock, which net of issuances, reduced period-end common shares outstanding by 130.3 million. The Company paid a quarterly common stock dividend of $0.43 per share.

Credit Quality

Net Loan Charge-offs

The quarterly loss rate in the fourth quarter was 0.30 percent (annualized), compared with 0.29 percent in the prior quarter and 0.31 percent a year ago. Commercial and consumer losses were 0.10 percent and 0.53 percent, respectively. Total credit losses were $721 million in fourth quarter 2018, up $41 million from third quarter 2018. Commercial losses decreased $20 million driven by lower commercial and industrial loan net charge-offs and higher recoveries in commercial real estate, while consumer losses increased $61 million predominantly driven by seasonal increases in credit card and other revolving credit and installment loan charge-offs.

Net Loan Charge-Offs
		Quarter ended
		December 31, 2018							September 30, 2018							December 31, 2017
($ in millions)		Net loan charge- offs				As a % of average loans (a)			Net loan charge- offs				As a % of average loans (a)			Net loan charge- offs				As a % of average loans (a)
Commercial:
Commercial and industrial		$	132			0.15	%		$	148			0.18	%		$	118			0.14	%
Real estate mortgage		(12		)		(0.04	)		(1		)		—			(10		)		(0.03	)
Real estate construction		(1		)		(0.01	)		(2		)		(0.04	)		(3		)		(0.05	)
Lease financing		13				0.26			7				0.14			10				0.20
Total commercial		132				0.10			152				0.12			115				0.09
Consumer:
Real estate 1-4 family first mortgage		(22		)		(0.03	)		(25		)		(0.04	)		(23		)		(0.03	)
Real estate 1-4 family junior lien mortgage		(10		)		(0.11	)		(9		)		(0.10	)		(7		)		(0.06	)
Credit card		338				3.54			299				3.22			336				3.66
Automobile		133				1.16			130				1.10			188				1.38
Other revolving credit and installment		150				1.64			133				1.44			142				1.46
Total consumer		589				0.53			528				0.47			636				0.56
Total		$	721			0.30	%		$	680			0.29	%		$	751			0.31	%
(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 $289 million, or 4 percent, from third quarter 2018 to $6.9 billion. Nonaccrual loans decreased $218 million from third quarter 2018 to $6.5 billion reflecting both lower consumer and commercial nonaccruals.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
		December 31, 2018							September 30, 2018							December 31, 2017
($ in millions)		Total balances				As a % of total loans			Total balances				As a % of total loans			Total balances				As a % of total loans
Commercial:
Commercial and industrial		$	1,486			0.42	%		$	1,555			0.46	%		$	1,899			0.57	%
Real estate mortgage		580				0.48			603				0.50			628				0.50
Real estate construction		32				0.14			44				0.19			37				0.15
Lease financing		90				0.46			96				0.49			76				0.39
Total commercial		2,188				0.43			2,298				0.46			2,640				0.52
Consumer:
Real estate 1-4 family first mortgage		3,183				1.12			3,267				1.15			3,732				1.31
Real estate 1-4 family junior lien mortgage		945				2.75			983				2.78			1,086				2.73
Automobile		130				0.29			118				0.26			130				0.24
Other revolving credit and installment		50				0.14			48				0.13			58				0.15
Total consumer		4,308				0.98			4,416				1.00			5,006				1.10
Total nonaccrual loans (a)		6,496				0.68			6,714				0.71			7,646				0.80
Foreclosed assets:
Government insured/guaranteed		88							87							120
Non-government insured/guaranteed		363							435							522
Total foreclosed assets		451							522							642
Total nonperforming assets		$	6,947			0.73	%		$	7,236			0.77	%		$	8,288			0.87	%
Change from prior quarter:
Total nonaccrual loans (a)		$	(218	)					$	(412	)					$	(572	)
Total nonperforming assets		(289		)					(389		)					(636		)
(a) Financial information for periods prior to December 31, 2018, has been revised to exclude mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value. For additional information, see the "Five Quarter Nonperforming Assets" table on page 32.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $10.7 billion at December 31, 2018, down $249 million from September 30, 2018. Fourth quarter 2018 included a $200 million reserve release², which reflected continued improvement in the credit quality of the loan portfolio. The allowance coverage for total loans was 1.12 percent, compared with 1.16 percent in third quarter 2018. The allowance covered 3.7 times annualized fourth quarter net charge-offs, compared with 4.1 times in the prior quarter. The allowance coverage for nonaccrual loans was 165 percent at December 31, 2018, compared with 163 percent 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017
Community Banking		$	3,169			2,816			3,472
Wholesale Banking		2,671				2,851			2,373
Wealth and Investment Management		689				732			675

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 and private equity partnerships.

Selected Financial Information
		Quarter ended
(in millions)		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017
Total revenue		$	11,461			11,816			11,720
Provision for credit losses		534				547			636
Noninterest expense		7,032				7,467			10,216
Segment net income		3,169				2,816			3,472
(in billions)
Average loans		459.7				460.9			473.2
Average assets		1,015.9				1,024.9			1,073.2
Average deposits		759.4				760.9			738.3

Fourth Quarter 2018 vs. Third Quarter 2018

• Net income of $3.2 billion, up $353 million, or 13 percent, primarily due to lower noninterest expense and income tax expense, partially offset by lower revenue
• Revenue was $11.5 billion, down $355 million, or 3 percent, driven predominantly by lower mortgage banking income and lower market sensitive revenue reflecting lower deferred compensation plan investment results (offset in employee benefits expense), partially offset by a $117 million gain on the previously announced sale of 52 branches
• Noninterest expense of $7.0 billion was down $435 million, or 6 percent, driven mainly by lower deferred compensation expense (offset in market sensitive revenue), operating losses, and FDIC expense, partially offset by higher other expense

Fourth Quarter 2018 vs. Fourth Quarter 2017

• Net income was down $303 million, or 9 percent, predominantly due to higher income tax expense, as fourth quarter 2017 included an income tax benefit from the Tax Act, and lower revenue, partially offset by lower noninterest expense
• Revenue declined $259 million, or 2 percent, predominantly due to lower market sensitive revenue and mortgage banking income, partially offset by gains from the sales of PCI Pick-a-Pay loans and the previously announced sale of 52 branches
• Noninterest expense decreased $3.2 billion, or 31 percent, driven by lower operating losses
• Provision for credit losses decreased $102 million, largely due to continued credit improvement in the automobile and consumer real estate portfolios

Business Metrics and Highlights

• Primary consumer checking customers^6,7 of 23.9 million, up 1.2 percent from a year ago. The previously announced sale of 52 branches and $1.8 billion of deposits which closed in fourth quarter 2018 reduced the growth rate by 0.5 percent
• More than 318,000 branch customer experience surveys completed during fourth quarter 2018 (over 1.4 million in 2018), with both ‘Customer Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’ scores up from the prior quarter and reaching a 24-month high in December
• Debit card point-of-sale purchase volume⁸ of $89.8 billion in the fourth quarter, up 8 percent year-over-year
• General purpose credit card point-of-sale purchase volume of $20.2 billion in the fourth quarter, up 5 percent year-over-year
• 29.2 million digital (online and mobile) active customers, including 22.8 million mobile active users^7,9
• 5,518 retail bank branches as of the end of fourth quarter 2018, reflecting 93 branch consolidations in the quarter and 300 in 2018; in addition, completed the previously announced sale of 52 branches in Indiana, Ohio, Michigan and part of Wisconsin in fourth quarter 2018
• Home Lending
  • Originations of $38 billion, down from $46 billion in the prior quarter, primarily due to seasonality; included home equity originations of $673 million, down 6 percent from the prior quarter and up 14 percent from the prior year
  • Applications of $48 billion, down from $57 billion in the prior quarter
  • Application pipeline of $18 billion at quarter end, down from $22 billion at September 30, 2018
  • Production margin on residential held-for-sale mortgage loan originations⁴ of 0.89 percent, down from 0.97 percent in the prior quarter, primarily due to lower retail margins
• Automobile originations of $4.7 billion in the fourth quarter, up 9 percent from the prior year
• Student loan originations of $258 million in fourth quarter 2018, up 16 percent from the prior year
• Small Business Lending¹⁰ originations of $595 million, up 19 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 Commercial Banking, Commercial Real Estate, Corporate and Investment Banking, Principal Investments, Treasury Management, and Commercial Capital.

Selected Financial Information
		Quarter ended
(in millions)		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017
Total revenue		$	6,926			7,304			7,440
Provision (reversal of provision) for credit losses		(28		)		26			20
Noninterest expense		4,025				3,935			4,187
Segment net income		2,671				2,851			2,373
(in billions)
Average loans		470.2				462.8			463.5
Average assets		839.1				827.2			837.2
Average deposits		421.6				413.6			465.7

Fourth Quarter 2018 vs. Third Quarter 2018

• Net income of $2.7 billion, down $180 million, or 6 percent
• Revenue of $6.9 billion decreased $378 million, or 5 percent, as higher net interest income, commercial real estate brokerage and other fees were more than offset by lower market sensitive revenue, investment banking fees and other income
• Noninterest expense of $4.0 billion increased $90 million, or 2 percent, reflecting higher operating lease expense, partially offset by lower FDIC expense
• Provision for credit losses decreased $54 million, driven primarily by higher recoveries

Fourth Quarter 2018 vs. Fourth Quarter 2017

• Net income increased $298 million, or 13 percent, as fourth quarter 2018 results benefited from a lower effective income tax rate
• Revenue decreased $514 million, or 7 percent, largely 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 market sensitive revenue, operating lease income and treasury management fees, partially offset by increases related to losses taken in fourth quarter 2017 from adjustments to leveraged leases and other tax advantaged businesses due to the Tax Act
• Noninterest expense decreased $162 million, or 4 percent, on lower expense related to the sales of WFIS and Wells Fargo Shareowner Services, as well as lower project-related expense and FDIC expense, partially offset by higher regulatory, risk and technology expense

Business Metrics and Highlights

• Commercial card spend volume¹¹ of $8.6 billion, up 11 percent from the prior year on increased transaction volumes primarily reflecting customer growth, and up 5 percent compared with third quarter 2018
• U.S. investment banking market share of 3.2 percent in 2018¹², compared with 3.6 percent in 2017¹²

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
(in millions)		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017
Total revenue		$	3,957			4,226			4,333
Provision (reversal of provision) for credit losses		(3		)		6			(7	)
Noninterest expense		3,044				3,243			3,246
Segment net income		689				732			675
(in billions)
Average loans		75.2				74.6			72.9
Average assets		83.6				83.8			83.7
Average deposits		155.5				159.8			184.1

Fourth Quarter 2018 vs. Third Quarter 2018

• Net income of $689 million, down $43 million, or 6 percent
• Revenue of $4.0 billion decreased $269 million, or 6 percent, mostly due to net losses from equity securities on lower deferred compensation plan investment results of $218 million (offset in employee benefits expense) and lower asset-based fees
• Noninterest expense of $3.0 billion decreased $199 million, or 6 percent, primarily driven by lower employee benefits from deferred compensation plan expense of $216 million (offset in deferred compensation plan investments)

Fourth Quarter 2018 vs. Fourth Quarter 2017

• Net income up $14 million, or 2 percent, as fourth quarter 2018 results benefited from a lower effective income tax rate
• Revenue decreased $376 million, or 9 percent, primarily driven by lower deferred compensation plan investment results of $235 million (offset in employee benefits expense), asset-based fees, brokerage transaction revenue, and net interest income
• Noninterest expense decreased $202 million, or 6 percent, primarily due to lower employee benefits from deferred compensation plan expense of $234 million (offset in deferred compensation plan investments) and lower FDIC expense, partially offset by higher regulatory, risk and technology expense

Business Metrics and Highlights

Total WIM Segment

• WIM total client assets of $1.7 trillion, down 10 percent from a year ago, driven primarily by lower market valuations, as well as net outflows
• Average loan balances up 3 percent from a year ago largely due to growth in nonconforming mortgage loans
• Full year 2018 closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) of $10.1 billion, down 2 percent compared with 2017

Retail Brokerage

• Client assets of $1.5 trillion, down 10 percent from prior year, driven primarily by lower market valuations, as well as net outflows
• Advisory assets of $501 billion, down 8 percent from prior year, driven primarily by lower market valuations, as well as net outflows

Wealth Management

• Client assets of $224 billion, down 10 percent from prior year, driven primarily by lower market valuations, as well as lower deposit balances

Asset Management

• Total assets under management (AUM) of $466 billion, down 8 percent from prior year, primarily due to equity and fixed income net outflows, the sale of Wells Fargo Asset Management's ownership stake in The Rock Creek Group, LP and removal of the associated AUM, and lower market valuations, partially offset by higher money market fund net inflows

Retirement

• IRA assets of $373 billion, down 9 percent from prior year
• Institutional Retirement plan assets of $364 billion, down 8 percent from prior year

Conference Call

The Company will host a live conference call on Tuesday, January 15, 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~7179357.

A replay of the conference call will be available beginning at 11:00 a.m. PT (2:00 p.m. ET) on Tuesday, January 15 through Tuesday, January 29. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #7179357. 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~7179357.

End Notes

¹ Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on page 36.

² Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

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

⁴ Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the "Selected Five Quarter Residential Mortgage Production Data" table on page 42 for more information.

⁵ See table on page 37 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.

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

⁷ Data as of November 2018, comparisons with November 2017.

⁸ Combined consumer and business debit card purchase volume dollars.

⁹ Primarily includes retail banking, consumer lending, small business and business banking customers.

¹⁰ Small Business Lending includes credit card, lines of credit and loan products (primarily under $100,000 sold through our retail banking branches).

¹¹ Includes commercial card volume for the entire company.

¹² 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, 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, investment and mortgage products and services, as well as consumer and commercial finance, through 7,800 locations, more than 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 259,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018 rankings of America’s largest corporations.

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

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
		Quarter ended										% Change Dec 31, 2018 from						Year ended
($ in millions, except per share amounts)		Dec 31, 2018				Sep 30, 2018			Dec 31, 2017			Sep 30, 2018			Dec 31, 2017			Dec 31, 2018				Dec 31, 2017			% Change
For the Period
Wells Fargo net income		$	6,064			6,007			6,151			1	%		(1	)		$	22,393			22,183			1	%
Wells Fargo net income applicable to common stock		5,711				5,453			5,740			5			(1	)		20,689				20,554			1
Diluted earnings per common share		1.21				1.13			1.16			7			4			4.28				4.10			4
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.28		%		1.27			1.26			1			2			1.19		%		1.15			3
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.89				12.04			12.47			7			3			11.53				11.35			2
Return on average tangible common equity (ROTCE)(1)		15.39				14.33			14.85			7			4			13.73				13.55			1
Efficiency ratio (2)		63.6				62.7			76.2			1			(17	)		65.0				66.2			(2	)
Total revenue		$	20,980			21,941			22,050			(4	)		(5	)		$	86,408			88,389			(2	)
Pre-tax pre-provision profit (PTPP) (3)		7,641				8,178			5,250			(7	)		46			30,282				29,905			1
Dividends declared per common share		0.43				0.43			0.39			—			10			1.64				1.54			6
Average common shares outstanding		4,665.8				4,784.0			4,912.5			(2	)		(5	)		4,799.7				4,964.6			(3	)
Diluted average common shares outstanding		4,700.8				4,823.2			4,963.1			(3	)		(5	)		4,838.4				5,017.3			(4	)
Average loans		$	946,336			939,462			951,822			1			(1	)		$	945,197			956,129			(1	)
Average assets		1,879,047				1,876,283			1,935,318			—			(3	)		1,888,892				1,933,005			(2	)
Average total deposits		1,268,948				1,266,378			1,311,592			—			(3	)		1,275,857				1,304,622			(2	)
Average consumer and small business banking deposits (4)		736,295				743,503			757,541			(1	)		(3	)		747,183				758,271			(1	)
Net interest margin		2.94		%		2.94			2.84			—			4			2.91		%		2.87			1
At Period End
Debt securities (5)		$	484,689			472,283			473,366			3			2			$	484,689			473,366			2
Loans		953,110				942,300			956,770			1			—			953,110				956,770			—
Allowance for loan losses		9,775				10,021			11,004			(2	)		(11	)		9,775				11,004			(11	)
Goodwill		26,418				26,425			26,587			—			(1	)		26,418				26,587			(1	)
Equity securities (5)		55,148				61,755			62,497			(11	)		(12	)		55,148				62,497			(12	)
Assets		1,895,883				1,872,981			1,951,757			1			(3	)		1,895,883				1,951,757			(3	)
Deposits		1,286,170				1,266,594			1,335,991			2			(4	)		1,286,170				1,335,991			(4	)
Common stockholders' equity		174,359				176,934			183,134			(1	)		(5	)		174,359				183,134			(5	)
Wells Fargo stockholders’ equity		196,166				198,741			206,936			(1	)		(5	)		196,166				206,936			(5	)
Total equity		197,066				199,679			208,079			(1	)		(5	)		197,066				208,079			(5	)
Tangible common equity (1)		145,980				148,391			153,730			(2	)		(5	)		145,980				153,730			(5	)
Common shares outstanding		4,581.3				4,711.6			4,891.6			(3	)		(6	)		4,581.3				4,891.6			(6	)
Book value per common share (6)		$	38.06			37.55			37.44			1			2			$	38.06			37.44			2
Tangible book value per common share (1)(6)		31.86				31.49			31.43			1			1			31.86				31.43			1
Team members (active, full-time equivalent)		258,700				261,700			262,700			(1	)		(2	)		258,700				262,700			(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
($ in millions, except per share amounts)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
For the Quarter
Wells Fargo net income		$	6,064			6,007			5,186			5,136			6,151
Wells Fargo net income applicable to common stock		5,711				5,453			4,792			4,733			5,740
Diluted earnings per common share		1.21				1.13			0.98			0.96			1.16
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.28		%		1.27			1.10			1.09			1.26
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		12.89				12.04			10.60			10.58			12.47
Return on average tangible common equity (ROTCE)(1)		15.39				14.33			12.62			12.62			14.85
Efficiency ratio (2)		63.6				62.7			64.9			68.6			76.2
Total revenue		$	20,980			21,941			21,553			21,934			22,050
Pre-tax pre-provision profit (PTPP) (3)		7,641				8,178			7,571			6,892			5,250
Dividends declared per common share		0.43				0.43			0.39			0.39			0.39
Average common shares outstanding		4,665.8				4,784.0			4,865.8			4,885.7			4,912.5
Diluted average common shares outstanding		4,700.8				4,823.2			4,899.8			4,930.7			4,963.1
Average loans		$	946,336			939,462			944,079			951,024			951,822
Average assets		1,879,047				1,876,283			1,884,884			1,915,896			1,935,318
Average total deposits		1,268,948				1,266,378			1,271,339			1,297,178			1,311,592
Average consumer and small business banking deposits (4)		736,295				743,503			754,047			755,483			757,541
Net interest margin		2.94		%		2.94			2.93			2.84			2.84
At Quarter End
Debt securities (5)		$	484,689			472,283			475,495			472,968			473,366
Loans		953,110				942,300			944,265			947,308			956,770
Allowance for loan losses		9,775				10,021			10,193			10,373			11,004
Goodwill		26,418				26,425			26,429			26,445			26,587
Equity securities (5)		55,148				61,755			57,505			58,935			62,497
Assets		1,895,883				1,872,981			1,879,700			1,915,388			1,951,757
Deposits		1,286,170				1,266,594			1,268,864			1,303,689			1,335,991
Common stockholders' equity		174,359				176,934			181,386			181,150			183,134
Wells Fargo stockholders’ equity		196,166				198,741			205,188			204,952			206,936
Total equity		197,066				199,679			206,069			205,910			208,079
Tangible common equity (1)		145,980				148,391			152,580			151,878			153,730
Common shares outstanding		4,581.3				4,711.6			4,849.1			4,873.9			4,891.6
Book value per common share (6)		$	38.06			37.55			37.41			37.17			37.44
Tangible book value per common share (1)(6)		31.86				31.49			31.47			31.16			31.43
Team members (active, full-time equivalent)		258,700				261,700			264,500			265,700			262,700
(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 quarter ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(6) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
		Quarter ended December 31,							%			Year ended December 31,							%
(in millions, except per share amounts)		2018				2017			Change			2018				2017			Change
Interest income
Debt securities (1)		$	3,803			3,294			15	%		$	14,406			12,946			11	%
Mortgage loans held for sale		190				196			(3	)		777				786			(1	)
Loans held for sale (1)		33				12			175			140				50			180
Loans		11,367				10,367			10			43,974				41,388			6
Equity securities (1)		260				239			9			992				799			24
Other interest income (1)		1,268				850			49			4,358				2,940			48
Total interest income		16,921				14,958			13			64,647				58,909			10
Interest expense
Deposits		1,765				931			90			5,622				3,013			87
Short-term borrowings		546				255			114			1,717				758			127
Long-term debt		1,802				1,344			34			6,703				5,157			30
Other interest expense		164				115			43			610				424			44
Total interest expense		4,277				2,645			62			14,652				9,352			57
Net interest income		12,644				12,313			3			49,995				49,557			1
Provision for credit losses		521				651			(20	)		1,744				2,528			(31	)
Net interest income after provision for credit losses		12,123				11,662			4			48,251				47,029			3
Noninterest income
Service charges on deposit accounts		1,176				1,246			(6	)		4,716				5,111			(8	)
Trust and investment fees		3,520				3,687			(5	)		14,509				14,495			—
Card fees		981				996			(2	)		3,907				3,960			(1	)
Other fees		888				913			(3	)		3,384				3,557			(5	)
Mortgage banking		467				928			(50	)		3,017				4,350			(31	)
Insurance		109				223			(51	)		429				1,049			(59	)
Net gains (losses) from trading activities (1)		10				(1	)		NM			602				542			11
Net gains on debt securities		9				157			(94	)		108				479			(77	)
Net gains from equity securities (1)		21				572			(96	)		1,515				1,779			(15	)
Lease income		402				458			(12	)		1,753				1,907			(8	)
Other		753				558			35			2,473				1,603			54
Total noninterest income		8,336				9,737			(14	)		36,413				38,832			(6	)
Noninterest expense
Salaries		4,545				4,403			3			17,834				17,363			3
Commission and incentive compensation		2,427				2,665			(9	)		10,264				10,442			(2	)
Employee benefits		706				1,293			(45	)		4,926				5,566			(11	)
Equipment		643				608			6			2,444				2,237			9
Net occupancy		735				715			3			2,888				2,849			1
Core deposit and other intangibles		264				288			(8	)		1,058				1,152			(8	)
FDIC and other deposit assessments		153				312			(51	)		1,110				1,287			(14	)
Other		3,866				6,516			(41	)		15,602				17,588			(11	)
Total noninterest expense		13,339				16,800			(21	)		56,126				58,484			(4	)
Income before income tax expense		7,120				4,599			55			28,538				27,377			4
Income tax expense (benefit)		966				(1,642	)		NM			5,662				4,917			15
Net income before noncontrolling interests		6,154				6,241			(1	)		22,876				22,460			2
Less: Net income from noncontrolling interests		90				90			—			483				277			74
Wells Fargo net income		$	6,064			6,151			(1	)		$	22,393			22,183			1
Less: Preferred stock dividends and other		353				411			(14	)		1,704				1,629			5
Wells Fargo net income applicable to common stock		$	5,711			5,740			(1	)		$	20,689			20,554			1
Per share information
Earnings per common share		$	1.22			1.17			4			$	4.31			4.14			4
Diluted earnings per common share		1.21				1.16			4			4.28				4.10			4
Average common shares outstanding		4,665.8				4,912.5			(5	)		4,799.7				4,964.6			(3	)
Diluted average common shares outstanding		4,700.8				4,963.1			(5	)		4,838.4				5,017.3			(4	)
NM - Not meaningful
(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
(in millions, except per share amounts)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Interest income
Debt securities (1)		$	3,803			3,595			3,594			3,414			3,294
Mortgage loans held for sale		190				210			198			179			196
Loans held for sale (1)		33				35			48			24			12
Loans		11,367				11,116			10,912			10,579			10,367
Equity securities (1)		260				280			221			231			239
Other interest income (1)		1,268				1,128			1,042			920			850
Total interest income		16,921				16,364			16,015			15,347			14,958
Interest expense
Deposits		1,765				1,499			1,268			1,090			931
Short-term borrowings		546				462			398			311			255
Long-term debt		1,802				1,667			1,658			1,576			1,344
Other interest expense		164				164			150			132			115
Total interest expense		4,277				3,792			3,474			3,109			2,645
Net interest income		12,644				12,572			12,541			12,238			12,313
Provision for credit losses		521				580			452			191			651
Net interest income after provision for credit losses		12,123				11,992			12,089			12,047			11,662
Noninterest income
Service charges on deposit accounts		1,176				1,204			1,163			1,173			1,246
Trust and investment fees		3,520				3,631			3,675			3,683			3,687
Card fees		981				1,017			1,001			908			996
Other fees		888				850			846			800			913
Mortgage banking		467				846			770			934			928
Insurance		109				104			102			114			223
Net gains (losses) from trading activities (1)		10				158			191			243			(1	)
Net gains on debt securities		9				57			41			1			157
Net gains from equity securities (1)		21				416			295			783			572
Lease income		402				453			443			455			458
Other		753				633			485			602			558
Total noninterest income		8,336				9,369			9,012			9,696			9,737
Noninterest expense
Salaries		4,545				4,461			4,465			4,363			4,403
Commission and incentive compensation		2,427				2,427			2,642			2,768			2,665
Employee benefits		706				1,377			1,245			1,598			1,293
Equipment		643				634			550			617			608
Net occupancy		735				718			722			713			715
Core deposit and other intangibles		264				264			265			265			288
FDIC and other deposit assessments		153				336			297			324			312
Other		3,866				3,546			3,796			4,394			6,516
Total noninterest expense		13,339				13,763			13,982			15,042			16,800
Income before income tax expense		7,120				7,598			7,119			6,701			4,599
Income tax expense (benefit)		966				1,512			1,810			1,374			(1,642	)
Net income before noncontrolling interests		6,154				6,086			5,309			5,327			6,241
Less: Net income from noncontrolling interests		90				79			123			191			90
Wells Fargo net income		$	6,064			6,007			5,186			5,136			6,151
Less: Preferred stock dividends and other		353				554			394			403			411
Wells Fargo net income applicable to common stock		$	5,711			5,453			4,792			4,733			5,740
Per share information
Earnings per common share		$	1.22			1.14			0.98			0.97			1.17
Diluted earnings per common share		1.21				1.13			0.98			0.96			1.16
Average common shares outstanding		4,665.8				4,784.0			4,865.8			4,885.7			4,912.5
Diluted average common shares outstanding		4,700.8				4,823.2			4,899.8			4,930.7			4,963.1
(1) Financial information for the quarter ended December 31, 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 December 31,							%		Year ended December 31,							%
(in millions)		2018				2017			Change		2018				2017			Change
Wells Fargo net income		$	6,064			6,151			(1)%		$	22,393			22,183			1%
Other comprehensive income (loss), before tax:
Debt securities (1):
Net unrealized gains (losses) arising during the period		1,035				(106	)		NM		(4,493		)		2,719			NM
Reclassification of net (gains) losses to net income		80				(215	)		NM		248				(737	)		NM
Derivatives and hedging activities:
Net unrealized losses arising during the period		(116		)		(558	)		(79)		(532		)		(540	)		(1)
Reclassification of net (gains) losses to net income		78				(83	)		NM		294				(543	)		NM
Defined benefit plans adjustments:
Net actuarial and prior service gains (losses) arising during the period		(440		)		45			NM		(434		)		49			NM
Amortization of net actuarial loss, settlements and other to net income		163				33			394		253				153			65
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period		(62		)		10			NM		(156		)		96			NM
Other comprehensive income (loss), before tax		738				(874	)		NM		(4,820		)		1,197			NM
Income tax benefit (expense) related to other comprehensive income		(202		)		319			NM		1,144				(434	)		NM
Other comprehensive income (loss), net of tax		536				(555	)		NM		(3,676		)		763			NM
Less: Other comprehensive loss from noncontrolling interests		(1		)		(33	)		(97)		(2		)		(62	)		(97)
Wells Fargo other comprehensive income (loss), net of tax		537				(522	)		NM		(3,674		)		825			NM
Wells Fargo comprehensive income		6,601				5,629			17		18,719				23,008			(19)
Comprehensive income from noncontrolling interests		89				57			56		481				215			124
Total comprehensive income		$	6,690			5,686			18		$	19,200			23,223			(17)
NM – Not meaningful
(1) The quarter and year ended December 31, 2017, includes net unrealized gains (losses) arising during the period from equity securities of ($31) million and $81 million and reclassification of net (gains) losses to net income related to equity securities of ($133) million and ($456) million, respectively. With the adoption in first quarter 2018 of ASU 2016-01, the quarter and year ended December 31, 2018, reflects net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
		Quarter ended
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Balance, beginning of period		$	199,679			206,069			205,910			208,079			206,617
Cumulative effect from change in accounting policies (1)		—				—			—			(24	)		—
Wells Fargo net income		6,064				6,007			5,186			5,136			6,151
Wells Fargo other comprehensive income (loss), net of tax		537				(1,012	)		(540	)		(2,659	)		(522	)
Noncontrolling interests		(38		)		57			(77	)		(178	)		247
Common stock issued		239				156			73			1,208			436
Common stock repurchased (2)		(7,299		)		(7,382	)		(2,923	)		(3,029	)		(2,845	)
Preferred stock redeemed (3)		—				(2,150	)		—			—			—
Preferred stock released by ESOP		268				260			490			231			218
Common stock warrants repurchased/exercised		(131		)		(36	)		(1	)		(157	)		(46	)
Common stock dividends		(2,016		)		(2,062	)		(1,900	)		(1,911	)		(1,920	)
Preferred stock dividends		(353		)		(399	)		(394	)		(410	)		(411	)
Stock incentive compensation expense		144				202			258			437			206
Net change in deferred compensation and related plans		(28		)		(31	)		(13	)		(813	)		(52	)
Balance, end of period		$	197,066			199,679			206,069			205,910			208,079
(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 December 31,
		2018											2017
(in millions)		Average balance				Yields/ rates			Interest income/ expense				Average balance			Yields/ rates			Interest income/ expense
Earning assets
Interest-earning deposits with banks (3)		$	150,091			2.18	%		$	825			189,114			1.27	%		$	605
Federal funds sold and securities purchased under resale agreements (3)		76,108				2.22			426				75,826			1.20			230
Debt securities (4):
Trading debt securities (5)		90,110				3.52			794				81,580			3.17			647
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		7,195				1.80			32				6,423			1.66			27
Securities of U.S. states and political subdivisions		47,618				4.05			483				52,390			3.91			513
Mortgage-backed securities:
Federal agencies		155,322				2.91			1,128				152,910			2.62			1,000
Residential and commercial		6,666				4.87			81				9,371			4.85			114
Total mortgage-backed securities		161,988				2.99			1,209				162,281			2.75			1,114
Other debt securities (5)		46,072				4.46			518				48,679			3.62			443
Total available-for-sale debt securities (5)		262,873				3.41			2,242				269,773			3.10			2,097
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,747				2.19			247				44,716			2.19			246
Securities of U.S. states and political subdivisions		6,247				4.34			67				6,263			5.26			83
Federal agency and other mortgage-backed securities		95,748				2.46			589				89,622			2.25			503
Other debt securities		68				3.65			1				1,194			2.64			8
Total held-to-maturity debt securities		146,810				2.46			904				141,795			2.36			840
Total debt securities (5)		499,793				3.15			3,940				493,148			2.90			3,584
Mortgage loans held for sale (6)		17,044				4.46			190				20,517			3.82			196
Loans held for sale (5)(6)		1,992				6.69			33				1,490			3.19			12
Commercial loans:
Commercial and industrial - U.S.		281,431				4.40			3,115				270,294			3.89			2,649
Commercial and industrial - Non U.S.		62,035				3.73			584				59,233			2.96			442
Real estate mortgage		120,404				4.51			1,369				127,199			3.88			1,244
Real estate construction		23,090				5.32			310				24,408			4.38			270
Lease financing		19,519				4.48			219				19,226			0.62			31
Total commercial loans		506,479				4.39			5,597				500,360			3.68			4,636
Consumer loans:
Real estate 1-4 family first mortgage		285,260				4.02			2,868				281,966			4.01			2,826
Real estate 1-4 family junior lien mortgage		34,844				5.60			491				40,379			4.96			505
Credit card		37,858				12.69			1,211				36,428			12.37			1,136
Automobile		45,536				5.16			592				54,323			5.13			702
Other revolving credit and installment		36,359				6.95			637				38,366			6.28			607
Total consumer loans		439,857				5.25			5,799				451,462			5.10			5,776
Total loans (6)		946,336				4.79			11,396				951,822			4.35			10,412
Equity securities (5)		37,412				2.79			261				38,001			2.60			246
Other (5)		4,074				1.78			18				7,103			0.88			16
Total earning assets (5)		$	1,732,850			3.93	%		$	17,089			1,777,021			3.43	%		$	15,301
Funding sources
Deposits:
Interest-bearing checking		$	53,983			1.21	%		$	165			50,483			0.68	%		$	86
Market rate and other savings		689,639				0.43			741				679,893			0.19			319
Savings certificates		21,955				0.87			48				20,920			0.31			17
Other time deposits		92,676				2.46			575				68,187			1.49			255
Deposits in foreign offices		56,098				1.66			236				124,597			0.81			254
Total interest-bearing deposits		914,351				0.77			1,765				944,080			0.39			931
Short-term borrowings		105,962				2.04			546				102,142			0.99			256
Long-term debt		226,591				3.17			1,802				231,598			2.32			1,344
Other liabilities		27,365				2.41			164				24,728			1.86			115
Total interest-bearing liabilities		1,274,269				1.34			4,277				1,302,548			0.81			2,646
Portion of noninterest-bearing funding sources (5)		458,581				—			—				474,473			—			—
Total funding sources (5)		$	1,732,850			0.99			4,277				1,777,021			0.59			2,646
Net interest margin and net interest income on a taxable-equivalent basis (7)						2.94	%		$	12,812						2.84	%		$	12,655
Noninterest-earning assets
Cash and due from banks		$	19,288										19,152
Goodwill		26,423											26,579
Other (5)		100,486											112,566
Total noninterest-earning assets (5)		$	146,197										158,297
Noninterest-bearing funding sources
Deposits		$	354,597										367,512
Other liabilities		51,739											57,845
Total equity		198,442											207,413
Noninterest-bearing funding sources used to fund earning assets (5)		(458,581		)									(474,473	)
Net noninterest-bearing funding sources (5)		$	146,197										158,297
Total assets		$	1,879,047										1,935,318
(1) Our average prime rate was 5.28% and 4.30% for the quarters ended December 31, 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.62% and 1.46% 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) 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.
(6) Nonaccrual loans and related income are included in their respective loan categories.
(7) Includes taxable-equivalent adjustments of $168 million and $342 million for the quarters ended December 31, 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 December 31, 2018 and 2017, respectively.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Year ended December 31,
		2018											2017
(in millions)		Average balance				Yields/ rates			Interest income/ expense				Average balance			Yields/ rates			Interest income/ expense
Earning assets
Interest-earning deposits with banks (3)		$	156,366			1.82	%		$	2,854			201,864			1.07	%		$	2,162
Federal funds sold and securities purchased under resale agreements (3)		78,547				1.82			1,431				74,697			0.98			735
Debt securities (4):
Trading debt securities (5)		83,526				3.42			2,856				74,475			3.16			2,356
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		6,618				1.70			112				15,966			1.49			239
Securities of U.S. states and political subdivisions		47,884				3.77			1,806				52,658			3.95			2,082
Mortgage-backed securities:
Federal agencies		156,052				2.79			4,348				145,310			2.60			3,782
Residential and commercial		7,769				4.62			358				11,839			5.33			631
Total mortgage-backed securities		163,821				2.87			4,706				157,149			2.81			4,413
Other debt securities (5)		46,875				4.22			1,980				48,714			3.68			1,794
Total available-for-sale debt securities (5)		265,198				3.24			8,604				274,487			3.11			8,528
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,735				2.19			980				44,705			2.19			979
Securities of U.S. states and political subdivisions		6,253				4.34			271				6,268			5.32			334
Federal agency and other mortgage-backed securities		94,216				2.36			2,221				78,330			2.34			1,832
Other debt securities		361				4.00			15				2,194			2.50			55
Total held-to-maturity debt securities		145,565				2.40			3,487				131,497			2.43			3,200
Total debt securities (5)		494,289				3.02			14,947				480,459			2.93			14,084
Mortgage loans held for sale (6)		18,394				4.22			777				20,780			3.78			786
Loans held for sale (5)(6)		2,526				5.56			140				1,487			3.40			50
Commercial loans:
Commercial and industrial - U.S.		275,656				4.16			11,465				272,034			3.75			10,196
Commercial and industrial - Non U.S.		60,718				3.53			2,143				57,198			2.86			1,639
Real estate mortgage		122,947				4.29			5,279				129,990			3.74			4,859
Real estate construction		23,609				4.94			1,167				24,813			4.10			1,017
Lease financing		19,392				4.74			919				19,128			3.74			715
Total commercial loans		502,322				4.18			20,973				503,163			3.66			18,426
Consumer loans:
Real estate 1-4 family first mortgage		284,178				4.04			11,481				277,751			4.03			11,206
Real estate 1-4 family junior lien mortgage		36,687				5.38			1,975				42,780			4.82			2,062
Credit card		36,780				12.72			4,678				35,600			12.23			4,355
Automobile		48,115				5.18			2,491				57,900			5.34			3,094
Other revolving credit and installment		37,115				6.70			2,488				38,935			6.18			2,408
Total consumer loans		442,875				5.22			23,113				452,966			5.11			23,125
Total loans (6)		945,197				4.66			44,086				956,129			4.35			41,551
Equity securities (5)		38,092				2.62			999				36,105			2.27			821
Other (5)		5,071				1.46			74				5,069			0.85			44
Total earning assets (5)		$	1,738,482			3.76	%		$	65,308			1,776,590			3.40	%		$	60,233
Funding sources
Deposits:
Interest-bearing checking		$	63,243			0.96	%		$	606			49,474			0.49	%		$	242
Market rate and other savings		684,882				0.31			2,157				682,053			0.14			983
Savings certificates		20,653				0.57			118				22,190			0.30			67
Other time deposits		84,822				2.25			1,906				61,625			1.43			880
Deposits in foreign offices		63,945				1.30			835				123,816			0.68			841
Total interest-bearing deposits		917,545				0.61			5,622				939,158			0.32			3,013
Short-term borrowings		104,267				1.65			1,719				98,922			0.77			761
Long-term debt		224,268				2.99			6,703				246,195			2.09			5,157
Other liabilities		27,648				2.21			610				21,872			1.94			424
Total interest-bearing liabilities		1,273,728				1.15			14,654				1,306,147			0.72			9,355
Portion of noninterest-bearing funding sources (5)		464,754				—			—				470,443			—			—
Total funding sources (5)		$	1,738,482			0.85			14,654				1,776,590			0.53			9,355
Net interest margin and net interest income on a taxable-equivalent basis (7)						2.91	%		$	50,654						2.87	%		$	50,878
Noninterest-earning assets
Cash and due from banks		$	18,777										18,622
Goodwill		26,453											26,629
Other (5)		105,180											111,164
Total noninterest-earning assets (5)		$	150,410										156,415
Noninterest-bearing funding sources
Deposits		$	358,312										365,464
Other liabilities		53,496											55,740
Total equity		203,356											205,654
Noninterest-bearing funding sources used to fund earning assets (5)		(464,754		)									(470,443	)
Net noninterest-bearing funding sources (5)		$	150,410										156,415
Total assets		$	1,888,892										1,933,005
(1) Our average prime rate was 4.91% and 4.10% for 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.31% and 1.26% 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. The average balance amounts represent amortized cost for the periods presented.
(5) Financial information for the year ended December 31, 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) Nonaccrual loans and related income are included in their respective loan categories.
(7) Includes taxable-equivalent adjustments of $659 million and $1.3 billion for 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 years ended 2018 and 2017, respectively.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended
		Dec 31, 2018							Sep 30, 2018							Jun 30, 2018							Mar 31, 2018							Dec 31, 2017
($ in billions)		Average balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates			Average balance				Yields/ rates
Earning assets
Interest-earning deposits with banks (3)		$	150.1			2.18	%		$	148.6			1.93	%		$	154.8			1.75	%		$	172.3			1.49	%		$	189.1			1.27	%
Federal funds sold and securities purchased under resale agreements (3)		76.1				2.22			79.9				1.93			80.0				1.73			78.1				1.40			75.8				1.20
Debt securities (4):
Trading debt securities (5)		90.1				3.52			84.5				3.45			80.7				3.45			78.7				3.24			81.6				3.17
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		7.2				1.80			6.4				1.65			6.4				1.66			6.4				1.66			6.4				1.66
Securities of U.S. states and political subdivisions		47.6				4.05			46.6				3.76			47.4				3.91			50.0				3.37			52.4				3.91
Mortgage-backed securities:
Federal agencies		155.3				2.91			155.5				2.77			154.9				2.75			158.4				2.72			152.9				2.62
Residential and commercial		6.7				4.87			7.3				4.68			8.2				4.86			8.9				4.12			9.4				4.85
Total mortgage-backed securities		162.0				2.99			162.8				2.86			163.1				2.86			167.3				2.79			162.3				2.75
Other debt securities (5)		46.1				4.46			46.4				4.39			47.1				4.33			48.1				3.73			48.6				3.62
Total available-for-sale debt securities (5)		262.9				3.41			262.2				3.26			264.0				3.28			271.8				3.04			269.7				3.10
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44.7				2.19			44.7				2.18			44.7				2.19			44.7				2.20			44.7				2.19
Securities of U.S. states and political subdivisions		6.2				4.34			6.3				4.33			6.3				4.34			6.3				4.34			6.3				5.26
Federal agency and other mortgage-backed securities		95.8				2.46			95.3				2.27			94.9				2.33			90.8				2.38			89.6				2.25
Other debt securities		0.1				3.65			0.1				5.61			0.6				4.66			0.7				3.23			1.2				2.64
Total held-to-maturity debt securities		146.8				2.46			146.4				2.33			146.5				2.38			142.5				2.42			141.8				2.36
Total debt securities (5)		499.8				3.15			493.1				3.02			491.2				3.04			493.0				2.89			493.1				2.90
Mortgage loans held for sale		17.0				4.46			19.3				4.33			18.8				4.22			18.4				3.89			20.5				3.82
Loans held for sale (5)		2.0				6.69			2.6				5.28			3.5				5.48			2.0				4.92			1.5				3.19
Commercial loans:
Commercial and industrial - U.S.		281.4				4.40			273.8				4.22			275.3				4.16			272.0				3.85			270.3				3.89
Commercial and industrial - Non U.S.		62.0				3.73			60.9				3.63			59.7				3.51			60.2				3.23			59.2				2.96
Real estate mortgage		120.4				4.51			121.3				4.35			124.0				4.27			126.2				4.05			127.2				3.88
Real estate construction		23.1				5.32			23.3				5.05			23.6				4.88			24.4				4.54			24.4				4.38
Lease financing		19.5				4.48			19.5				4.69			19.3				4.48			19.4				5.30			19.3				0.62
Total commercial loans		506.4				4.39			498.8				4.24			501.9				4.15			502.2				3.91			500.4				3.68
Consumer loans:
Real estate 1-4 family first mortgage		285.3				4.02			284.1				4.07			283.1				4.06			284.2				4.02			282.0				4.01
Real estate 1-4 family junior lien mortgage		34.8				5.60			35.9				5.50			37.2				5.32			38.8				5.13			40.4				4.96
Credit card		37.9				12.69			36.9				12.77			35.9				12.66			36.4				12.75			36.4				12.37
Automobile		45.5				5.16			47.0				5.20			48.6				5.18			51.5				5.16			54.3				5.13
Other revolving credit and installment		36.4				6.95			36.8				6.78			37.4				6.62			37.9				6.46			38.3				6.28
Total consumer loans		439.9				5.25			440.7				5.26			442.2				5.20			448.8				5.16			451.4				5.10
Total loans		946.3				4.79			939.5				4.72			944.1				4.64			951.0				4.50			951.8				4.35
Equity securities (5)		37.4				2.79			37.9				2.98			37.3				2.38			39.8				2.35			38.0				2.60
Other (5)		4.2				1.78			4.7				1.47			5.6				1.48			6.0				1.21			7.2				0.88
Total earning assets (5)		$	1,732.9			3.93	%		$	1,725.6			3.81	%		$	1,735.3			3.73	%		$	1,760.6			3.55	%		$	1,777.0			3.43	%
Funding sources
Deposits:
Interest-bearing checking		$	54.0			1.21	%		$	51.2			1.01	%		$	80.3			0.90	%		$	67.8			0.77	%		$	50.5			0.68	%
Market rate and other savings		689.6				0.43			693.9				0.35			676.7				0.26			679.1				0.22			679.9				0.19
Savings certificates		22.0				0.87			20.6				0.62			20.0				0.43			20.0				0.34			20.9				0.31
Other time deposits		92.6				2.46			87.8				2.35			82.1				2.26			76.6				1.84			68.2				1.49
Deposits in foreign offices		56.1				1.66			53.9				1.50			51.5				1.30			94.8				0.98			124.6				0.81
Total interest-bearing deposits		914.3				0.77			907.4				0.66			910.6				0.56			938.3				0.47			944.1				0.39
Short-term borrowings		106.0				2.04			105.5				1.74			103.8				1.54			101.8				1.24			102.1				0.99
Long-term debt		226.6				3.17			220.7				3.02			223.8				2.97			226.0				2.80			231.6				2.32
Other liabilities		27.4				2.41			27.0				2.40			28.2				2.12			27.9				1.92			24.7				1.86
Total interest-bearing liabilities		1,274.3				1.34			1,260.6				1.20			1,266.4				1.10			1,294.0				0.97			1,302.5				0.81
Portion of noninterest-bearing funding sources (5)		458.6				—			465.0				—			468.9				—			466.6				—			474.5				—
Total funding sources (5)		$	1,732.9			0.99			$	1,725.6			0.87			$	1,735.3			0.80			$	1,760.6			0.71			$	1,777.0			0.59
Net interest margin on a taxable-equivalent basis						2.94	%						2.94	%						2.93	%						2.84	%						2.84	%
Noninterest-earning assets
Cash and due from banks		$	19.3						18.4							18.6							18.9							19.2
Goodwill		26.4							26.4							26.4							26.5							26.6
Other (5)		100.4							105.9							104.6							109.9							112.5
Total noninterest-earnings assets (5)		$	146.1						150.7							149.6							155.3							158.3
Noninterest-bearing funding sources
Deposits		$	354.6						359.0							360.7							358.9							367.5
Other liabilities (5)		51.7							53.9							51.7							56.8							57.9
Total equity		198.4							202.8							206.1							206.2							207.4
Noninterest-bearing funding sources used to fund earning assets (5)		(458.6		)					(465.0		)					(468.9		)					(466.6		)					(474.5		)
Net noninterest-bearing funding sources (5)		$	146.1						150.7							149.6							155.3							158.3
Total assets		$	1,879.0						1,876.3							1,884.9							1,915.9							1,935.3
(1) Our average prime rate was 5.28% for the quarter ended December 31, 2018, 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 and 4.30% for the quarter ended December 31, 2017. The average three-month London Interbank Offered Rate (LIBOR) was 2.62%, 2.34%, 2.34%, 1.93% and 1.46% 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 quarter ended December 31, 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 quarter ended December 31, 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 December 31,							%			Year ended December 31,							%
(in millions)		2018				2017			Change			2018				2017			Change
Service charges on deposit accounts		$	1,176			1,246			(6	)%		$	4,716			5,111			(8	)%
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,345				2,401			(2	)		9,436				9,358			1
Trust and investment management		796				866			(8	)		3,316				3,372			(2	)
Investment banking		379				420			(10	)		1,757				1,765			—
Total trust and investment fees		3,520				3,687			(5	)		14,509				14,495			—
Card fees		981				996			(2	)		3,907				3,960			(1	)
Other fees:
Lending related charges and fees (1)		400				391			2			1,526				1,568			(3	)
Cash network fees		114				120			(5	)		481				506			(5	)
Commercial real estate brokerage commissions		145				159			(9	)		468				462			1
Wire transfer and other remittance fees		120				115			4			477				448			6
All other fees		109				128			(15	)		432				573			(25	)
Total other fees		888				913			(3	)		3,384				3,557			(5	)
Mortgage banking:
Servicing income, net		109				262			(58	)		1,373				1,427			(4	)
Net gains on mortgage loan origination/sales activities		358				666			(46	)		1,644				2,923			(44	)
Total mortgage banking		467				928			(50	)		3,017				4,350			(31	)
Insurance		109				223			(51	)		429				1,049			(59	)
Net gains (losses) from trading activities (2)		10				(1	)		NM			602				542			11
Net gains on debt securities		9				157			(94	)		108				479			(77	)
Net gains from equity securities (2)		21				572			(96	)		1,515				1,779			(15	)
Lease income		402				458			(12	)		1,753				1,907			(8	)
Life insurance investment income		158				153			3			651				594			10
All other		595				405			47			1,822				1,009			81
Total		$	8,336			9,737			(14	)		$	36,413			38,832			(6	)
NM - Not meaningful
(1) Represents combined amount of previously reported "Charges and fees on loans" and "Letters of credit fees".
(2) 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 December 31,							%			Year ended December 31,							%
(in millions)		2018				2017			Change			2018				2017			Change
Salaries		$	4,545			4,403			3	%		$	17,834			17,363			3	%
Commission and incentive compensation		2,427				2,665			(9	)		10,264				10,442			(2	)
Employee benefits		706				1,293			(45	)		4,926				5,566			(11	)
Equipment		643				608			6			2,444				2,237			9
Net occupancy		735				715			3			2,888				2,849			1
Core deposit and other intangibles		264				288			(8	)		1,058				1,152			(8	)
FDIC and other deposit assessments		153				312			(51	)		1,110				1,287			(14	)
Outside professional services		843				1,025			(18	)		3,306				3,813			(13	)
Operating losses		432				3,531			(88	)		3,124				5,492			(43	)
Contract services (1)		616				410			50			2,192				1,638			34
Operating leases		392				325			21			1,334				1,351			(1	)
Advertising and promotion		254				200			27			857				614			40
Outside data processing		168				208			(19	)		660				891			(26	)
Travel and entertainment		168				183			(8	)		618				687			(10	)
Postage, stationery and supplies		132				137			(4	)		515				544			(5	)
Telecommunications		91				92			(1	)		361				364			(1	)
Foreclosed assets		47				47			—			188				251			(25	)
Insurance		25				28			(11	)		101				100			1
All other (1)		698				330			112			2,346				1,843			27
Total		$	13,339			16,800			(21	)		$	56,126			58,484			(4	)
(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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Service charges on deposit accounts		$	1,176			1,204			1,163			1,173			1,246
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,345				2,334			2,354			2,403			2,401
Trust and investment management		796				835			835			850			866
Investment banking		379				462			486			430			420
Total trust and investment fees		3,520				3,631			3,675			3,683			3,687
Card fees		981				1,017			1,001			908			996
Other fees:
Lending related charges and fees (1)		400				370			376			380			391
Cash network fees		114				121			120			126			120
Commercial real estate brokerage commissions		145				129			109			85			159
Wire transfer and other remittance fees		120				120			121			116			115
All other fees		109				110			120			93			128
Total other fees		888				850			846			800			913
Mortgage banking:
Servicing income, net		109				390			406			468			262
Net gains on mortgage loan origination/sales activities		358				456			364			466			666
Total mortgage banking		467				846			770			934			928
Insurance		109				104			102			114			223
Net gains (losses) from trading activities (2)		10				158			191			243			(1	)
Net gains on debt securities		9				57			41			1			157
Net gains from equity securities (2)		21				416			295			783			572
Lease income		402				453			443			455			458
Life insurance investment income		158				167			162			164			153
All other		595				466			323			438			405
Total		$	8,336			9,369			9,012			9,696			9,737
(1) Represents combined amount of previously reported "Charges and fees on loans" and "Letters of credit fees".
(2) Financial information for the quarter ended December 31, 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Salaries		$	4,545			4,461			4,465			4,363			4,403
Commission and incentive compensation		2,427				2,427			2,642			2,768			2,665
Employee benefits		706				1,377			1,245			1,598			1,293
Equipment		643				634			550			617			608
Net occupancy		735				718			722			713			715
Core deposit and other intangibles		264				264			265			265			288
FDIC and other deposit assessments		153				336			297			324			312
Outside professional services		843				761			881			821			1,025
Operating losses		432				605			619			1,468			3,531
Contract services (1)		616				593			536			447			410
Operating leases		392				311			311			320			325
Advertising and promotion		254				223			227			153			200
Outside data processing		168				166			164			162			208
Travel and entertainment		168				141			157			152			183
Postage, stationery and supplies		132				120			121			142			137
Telecommunications		91				90			88			92			92
Foreclosed assets		47				59			44			38			47
Insurance		25				26			24			26			28
All other (1)		698				451			624			573			330
Total		$	13,339			13,763			13,982			15,042			16,800
(1) The quarter ended December 31, 2017, has 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
(in millions, except shares)		Dec 31, 2018				Dec 31, 2017			% Change
Assets
Cash and due from banks		$	23,551			23,367			1	%
Interest-earning deposits with banks (1)		149,736				192,580			(22	)
Total cash, cash equivalents, and restricted cash (1)		173,287				215,947			(20	)
Federal funds sold and securities purchased under resale agreements (1)		80,207				80,025			—
Debt securities:
Trading, at fair value (2)		69,989				57,624			21
Available-for-sale, at fair value (2)		269,912				276,407			(2	)
Held-to-maturity, at cost		144,788				139,335			4
Mortgage loans held for sale		15,126				20,070			(25	)
Loans held for sale (2)		2,041				1,131			80
Loans		953,110				956,770			—
Allowance for loan losses		(9,775		)		(11,004	)		(11	)
Net loans		943,335				945,766			—
Mortgage servicing rights:
Measured at fair value		14,649				13,625			8
Amortized		1,443				1,424			1
Premises and equipment, net		8,920				8,847			1
Goodwill		26,418				26,587			(1	)
Derivative assets		10,770				12,228			(12	)
Equity securities (2)		55,148				62,497			(12	)
Other assets (2)		79,850				90,244			(12	)
Total assets		$	1,895,883			1,951,757			(3	)
Liabilities
Noninterest-bearing deposits		$	349,534			373,722			(6	)
Interest-bearing deposits		936,636				962,269			(3	)
Total deposits		1,286,170				1,335,991			(4	)
Short-term borrowings		105,787				103,256			2
Derivative liabilities		8,499				8,796			(3	)
Accrued expenses and other liabilities		69,317				70,615			(2	)
Long-term debt		229,044				225,020			2
Total liabilities		1,698,817				1,743,678			(3	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock		23,214				25,358			(8	)
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		60,685				60,893			—
Retained earnings		158,163				145,263			9
Cumulative other comprehensive income (loss)		(6,336		)		(2,144	)		196
Treasury stock – 900,557,866 shares and 590,194,846 shares		(47,194		)		(29,892	)		58
Unearned ESOP shares		(1,502		)		(1,678	)		(10	)
Total Wells Fargo stockholders’ equity		196,166				206,936			(5	)
Noncontrolling interests		900				1,143			(21	)
Total equity		197,066				208,079			(5	)
Total liabilities and equity		$	1,895,883			1,951,757			(3	)
(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 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 CONSOLIDATED BALANCE SHEET
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Assets
Cash and due from banks		$	23,551			18,791			20,450			18,145			23,367
Interest-earning deposits with banks (1)		149,736				140,732			142,999			184,250			192,580
Total cash, cash equivalents, and restricted cash (1)		173,287				159,523			163,449			202,395			215,947
Federal funds sold and securities purchased under resale agreements (1)		80,207				83,471			80,184			73,550			80,025
Debt securities:
Trading, at fair value (2)		69,989				65,188			65,602			59,866			57,624
Available-for-sale, at fair value (2)		269,912				262,964			265,687			271,656			276,407
Held-to-maturity, at cost		144,788				144,131			144,206			141,446			139,335
Mortgage loans held for sale		15,126				19,225			21,509			17,944			20,070
Loans held for sale (2)		2,041				1,765			3,408			3,581			1,131
Loans		953,110				942,300			944,265			947,308			956,770
Allowance for loan losses		(9,775		)		(10,021	)		(10,193	)		(10,373	)		(11,004	)
Net loans		943,335				932,279			934,072			936,935			945,766
Mortgage servicing rights:
Measured at fair value		14,649				15,980			15,411			15,041			13,625
Amortized		1,443				1,414			1,407			1,411			1,424
Premises and equipment, net		8,920				8,802			8,882			8,828			8,847
Goodwill		26,418				26,425			26,429			26,445			26,587
Derivative assets		10,770				11,811			11,099			11,467			12,228
Equity securities (2)		55,148				61,755			57,505			58,935			62,497
Other assets (2)		79,850				78,248			80,850			85,888			90,244
Total assets		$	1,895,883			1,872,981			1,879,700			1,915,388			1,951,757
Liabilities
Noninterest-bearing deposits		$	349,534			352,869			365,021			370,085			373,722
Interest-bearing deposits		936,636				913,725			903,843			933,604			962,269
Total deposits		1,286,170				1,266,594			1,268,864			1,303,689			1,335,991
Short-term borrowings		105,787				105,451			104,496			97,207			103,256
Derivative liabilities		8,499				8,586			8,507			7,883			8,796
Accrued expenses and other liabilities		69,317				71,348			72,480			73,397			70,615
Long-term debt		229,044				221,323			219,284			227,302			225,020
Total liabilities		1,698,817				1,673,302			1,673,631			1,709,478			1,743,678
Equity
Wells Fargo stockholders’ equity:
Preferred stock		23,214				23,482			25,737			26,227			25,358
Common stock		9,136				9,136			9,136			9,136			9,136
Additional paid-in capital		60,685				60,738			59,644			60,399			60,893
Retained earnings		158,163				154,576			150,803			147,928			145,263
Cumulative other comprehensive income (loss)		(6,336		)		(6,873	)		(5,461	)		(4,921	)		(2,144	)
Treasury stock		(47,194		)		(40,538	)		(32,620	)		(31,246	)		(29,892	)
Unearned ESOP shares		(1,502		)		(1,780	)		(2,051	)		(2,571	)		(1,678	)
Total Wells Fargo stockholders’ equity		196,166				198,741			205,188			204,952			206,936
Noncontrolling interests		900				938			881			958			1,143
Total equity		197,066				199,679			206,069			205,910			208,079
Total liabilities and equity		$	1,895,883			1,872,981			1,879,700			1,915,388			1,951,757
(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 quarter ended December 31, 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 TRADING ASSETS AND LIABILITIES
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Trading assets
Debt securities		$	69,989			65,188			65,602			59,866			57,624
Equity securities (1)		19,449				26,138			22,978			25,327			30,004
Loans held for sale		1,469				1,266			1,350			1,695			1,023
Gross trading derivative assets		29,216				30,302			30,758			30,644			31,340
Netting (2)		(19,807		)		(19,188	)		(20,687	)		(20,112	)		(19,629	)
Total trading derivative assets		9,409				11,114			10,071			10,532			11,711
Total trading assets		100,316				103,706			100,001			97,420			100,362
Trading liabilities
Short sales		19,720				23,992			21,765			23,303			18,472
Gross trading derivative liabilities		28,717				29,268			29,847			29,717			31,386
Netting (2)		(21,178		)		(21,842	)		(22,311	)		(22,569	)		(23,062	)
Total trading derivative liabilities		7,539				7,426			7,536			7,148			8,324
Total trading liabilities		$	27,259			31,418			29,301			30,451			26,796
(1) Financial information for the quarter ended December 31, 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Trading debt securities		$	69,989			65,188			65,602			59,866			57,624
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies		13,348				6,187			6,271			6,279			6,319
Securities of U.S. states and political subdivisions		49,264				48,216			47,559			49,643			51,326
Mortgage-backed securities:
Federal agencies		153,203				153,511			154,556			156,814			160,219
Residential and commercial		7,000				6,939			8,286			9,264			9,173
Total mortgage-backed securities		160,203				160,450			162,842			166,078			169,392
Other debt securities		47,097				48,111			49,015			49,656			49,370
Total available-for-sale debt securities		269,912				262,964			265,687			271,656			276,407
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies		44,751				44,743			44,735			44,727			44,720
Securities of U.S. states and political subdivisions		6,286				6,293			6,300			6,307			6,313
Federal agency and other mortgage-backed securities (1)		93,685				93,020			93,016			89,748			87,527
Other debt securities		66				75			155			664			775
Total held-to-maturity debt securities		144,788				144,131			144,206			141,446			139,335
Total debt securities		$	484,689			472,283			475,495			472,968			473,366
(1) Predominantly consists of federal agency mortgage-backed securities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER EQUITY SECURITIES
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Held for trading at fair value:
Marketable equity securities		$	19,449			26,138			22,978			25,327			30,004
Not held for trading:
Fair value:
Marketable equity securities (1)		4,513				5,705			5,273			4,931			4,356
Nonmarketable equity securities (2)		5,594				6,479			5,876			5,303			4,867
Total equity securities at fair value		10,107				12,184			11,149			10,234			9,223
Equity method:
LIHTC (3)		10,999				10,453			10,361			10,318			10,269
Private equity		3,832				3,838			3,732			3,840			3,839
Tax-advantaged renewable energy		3,073				1,967			1,950			1,822			1,950
New market tax credit and other		311				259			262			268			294
Total equity method		18,215				16,517			16,305			16,248			16,352
Other:
Federal bank stock and other at cost (4)		5,643				5,467			5,673			5,780			5,828
Private equity (5)		1,734				1,449			1,400			1,346			1,090
Total equity securities not held for trading		35,699				35,617			34,527			33,608			32,493
Total equity securities		$	55,148			61,755			57,505			58,935			62,497
(1) Includes $3.2 billion, $3.6 billion, $3.5 billion, $3.5 billion and $3.7 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.
(2) Includes $5.5 billion, $6.3 billion, $5.5 billion, $5.0 billion and $4.9 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively, related to investments for which we elected the fair value option.
(3) Represents low-income housing tax credit investments.
(4) Includes $5.6 billion, $5.4 billion, $5.6 billion, $5.7 billion and $5.4 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Commercial:
Commercial and industrial		$	350,199			338,048			336,590			334,678			333,125
Real estate mortgage		121,014				120,403			123,964			125,543			126,599
Real estate construction		22,496				23,690			22,937			23,882			24,279
Lease financing		19,696				19,745			19,614			19,293			19,385
Total commercial		513,405				501,886			503,105			503,396			503,388
Consumer:
Real estate 1-4 family first mortgage		285,065				284,273			283,001			282,658			284,054
Real estate 1-4 family junior lien mortgage		34,398				35,330			36,542			37,920			39,713
Credit card		39,025				37,812			36,684			36,103			37,976
Automobile		45,069				46,075			47,632			49,554			53,371
Other revolving credit and installment		36,148				36,924			37,301			37,677			38,268
Total consumer		439,705				440,414			441,160			443,912			453,382
Total loans (1)		$	953,110			942,300			944,265			947,308			956,770
(1) Includes $5.0 billion, $6.9 billion, $9.0 billion, $10.7 billion, and $12.8 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30 and March 31, 2018, and December 31, 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.

(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Commercial foreign loans:
Commercial and industrial		$	62,564			61,696			61,732			59,696			60,106
Real estate mortgage		6,731				6,891			7,617			8,082			8,033
Real estate construction		1,011				726			542			668			655
Lease financing		1,159				1,187			1,097			1,077			1,126
Total commercial foreign loans		$	71,465			70,500			70,988			69,523			69,920

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Nonaccrual loans:
Commercial:
Commercial and industrial		$	1,486			1,555			1,559			1,516			1,899
Real estate mortgage		580				603			765			755			628
Real estate construction		32				44			51			45			37
Lease financing		90				96			80			93			76
Total commercial		2,188				2,298			2,455			2,409			2,640
Consumer:
Real estate 1-4 family first mortgage		3,183				3,267			3,469			3,673			3,732
Real estate 1-4 family junior lien mortgage		945				983			1,029			1,087			1,086
Automobile		130				118			119			117			130
Other revolving credit and installment		50				48			54			53			58
Total consumer		4,308				4,416			4,671			4,930			5,006
Total nonaccrual loans (1)(2)(3)		$	6,496			6,714			7,126			7,339			7,646
As a percentage of total loans		0.68		%		0.71			0.75			0.77			0.80
Foreclosed assets:
Government insured/guaranteed		$	88			87			90			103			120
Non-government insured/guaranteed		363				435			409			468			522
Total foreclosed assets		451				522			499			571			642
Total nonperforming assets		$	6,947			7,236			7,625			7,910			8,288
As a percentage of total loans		0.73		%		0.77			0.81			0.83			0.87
(1) Financial information for periods prior to December 31, 2018 has been revised to exclude mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value of $339 million, $360 million, $380 million and $390 million at September 30, June 30, and March 31, 2018, and December 31, 2017, respectively.
(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 (1)
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Total (excluding PCI)(2):		$	8,704			8,838			9,087			10,351			11,532
Less: FHA insured/VA guaranteed (3)		7,725				7,906			8,246			9,385			10,475
Total, not government insured/guaranteed		$	979			932			841			966			1,057
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial		$	43			42			23			40			26
Real estate mortgage		51				56			26			23			23
Real estate construction		—				—			—			1			—
Total commercial		94				98			49			64			49
Consumer:
Real estate 1-4 family first mortgage		124				128			132			163			213
Real estate 1-4 family junior lien mortgage		32				32			33			48			60
Credit card		513				460			429			473			492
Automobile		114				108			105			113			143
Other revolving credit and installment		102				106			93			105			100
Total consumer		885				834			792			902			1,008
Total, not government insured/guaranteed		$	979			932			841			966			1,057
(1) Financial information for periods prior to December 31, 2018 has been revised to exclude MLHFS, LHFS and loans held at fair value, which reduced “Total, not government insured/guaranteed” by $1 million, $1 million, $1 million and $6 million at September 30, June 30, and March 31, 2018, and December 31, 2017, respectively.
(1) PCI loans totaled $370 million, $567 million, $811 million, $1.0 billion and $1.4 billion, at December 31, September 30 , June 30, and March 31, 2018, and December 31, 2017, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS

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

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

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

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

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

(in millions)		Quarter ended Dec 31, 2018				Year ended Dec 31, 2018			2009-2017
Balance, beginning of period		$	4,409			8,887			10,447
Change in accretable yield due to acquisitions		—				—			161
Accretion into interest income (1)		(202		)		(1,094	)		(16,983	)
Accretion into noninterest income due to sales (2)		(614		)		(2,374	)		(801	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)		1				403			11,597
Changes in expected cash flows that do not affect nonaccretable difference (4)		(561		)		(2,789	)		4,466
Balance, end of period		$	3,033			3,033			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 December 31, 2018, our carrying value for PCI loans totaled $5.0 billion and the remainder of nonaccretable difference established in purchase accounting totaled $480 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 December 31,							Year ended December 31,
(in millions)		2018				2017			2018			2017
Balance, beginning of period		$	10,956			12,109			11,960			12,540
Provision for credit losses		521				651			1,744			2,528
Interest income on certain impaired loans (1)		(38		)		(49	)		(166	)		(186	)
Loan charge-offs:
Commercial:
Commercial and industrial		(220		)		(181	)		(727	)		(789	)
Real estate mortgage		(12		)		(4	)		(42	)		(38	)
Real estate construction		—				—			—			—
Lease financing		(18		)		(14	)		(70	)		(45	)
Total commercial		(250		)		(199	)		(839	)		(872	)
Consumer:
Real estate 1-4 family first mortgage		(38		)		(49	)		(179	)		(240	)
Real estate 1-4 family junior lien mortgage		(38		)		(54	)		(179	)		(279	)
Credit card		(414		)		(398	)		(1,599	)		(1,481	)
Automobile		(217		)		(261	)		(947	)		(1,002	)
Other revolving credit and installment		(180		)		(169	)		(685	)		(713	)
Total consumer		(887		)		(931	)		(3,589	)		(3,715	)
Total loan charge-offs		(1,137		)		(1,130	)		(4,428	)		(4,587	)
Loan recoveries:
Commercial:
Commercial and industrial		88				63			304			297
Real estate mortgage		24				14			70			82
Real estate construction		1				3			13			30
Lease financing		5				4			23			17
Total commercial		118				84			410			426
Consumer:
Real estate 1-4 family first mortgage		60				72			267			288
Real estate 1-4 family junior lien mortgage		48				61			219			266
Credit card		76				62			307			239
Automobile		84				73			363			319
Other revolving credit and installment		30				27			118			121
Total consumer		298				295			1,274			1,233
Total loan recoveries		416				379			1,684			1,659
Net loan charge-offs		(721		)		(751	)		(2,744	)		(2,928	)
Other		(11		)		—			(87	)		6
Balance, end of period		$	10,707			11,960			10,707			11,960
Components:
Allowance for loan losses		$	9,775			11,004			9,775			11,004
Allowance for unfunded credit commitments		932				956			932			956
Allowance for credit losses		$	10,707			11,960			10,707			11,960
Net loan charge-offs (annualized) as a percentage of average total loans		0.30		%		0.31			0.29			0.31
Allowance for loan losses as a percentage of total loans		1.03				1.15			1.03			1.15
Allowance for credit losses as a percentage of total loans		1.12				1.25			1.12			1.25
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
		Quarter ended
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Balance, beginning of quarter		$	10,956			11,110			11,313			11,960			12,109
Provision for credit losses		521				580			452			191			651
Interest income on certain impaired loans (1)		(38		)		(42	)		(43	)		(43	)		(49	)
Loan charge-offs:
Commercial:
Commercial and industrial		(220		)		(209	)		(134	)		(164	)		(181	)
Real estate mortgage		(12		)		(9	)		(19	)		(2	)		(4	)
Real estate construction		—				—			—			—			—
Lease financing		(18		)		(15	)		(20	)		(17	)		(14	)
Total commercial		(250		)		(233	)		(173	)		(183	)		(199	)
Consumer:
Real estate 1-4 family first mortgage		(38		)		(45	)		(55	)		(41	)		(49	)
Real estate 1-4 family junior lien mortgage		(38		)		(47	)		(47	)		(47	)		(54	)
Credit card		(414		)		(376	)		(404	)		(405	)		(398	)
Automobile		(217		)		(214	)		(216	)		(300	)		(261	)
Other revolving credit and installment		(180		)		(161	)		(164	)		(180	)		(169	)
Total consumer		(887		)		(843	)		(886	)		(973	)		(931	)
Total loan charge-offs		(1,137		)		(1,076	)		(1,059	)		(1,156	)		(1,130	)
Loan recoveries:
Commercial:
Commercial and industrial		88				61			76			79			63
Real estate mortgage		24				10			19			17			14
Real estate construction		1				2			6			4			3
Lease financing		5				8			5			5			4
Total commercial		118				81			106			105			84
Consumer:
Real estate 1-4 family first mortgage		60				70			78			59			72
Real estate 1-4 family junior lien mortgage		48				56			60			55			61
Credit card		76				77			81			73			62
Automobile		84				84			103			92			73
Other revolving credit and installment		30				28			29			31			27
Total consumer		298				315			351			310			295
Total loan recoveries		416				396			457			415			379
Net loan charge-offs		(721		)		(680	)		(602	)		(741	)		(751	)
Other		(11		)		(12	)		(10	)		(54	)		—
Balance, end of quarter		$	10,707			10,956			11,110			11,313			11,960
Components:
Allowance for loan losses		$	9,775			10,021			10,193			10,373			11,004
Allowance for unfunded credit commitments		932				935			917			940			956
Allowance for credit losses		$	10,707			10,956			11,110			11,313			11,960
Net loan charge-offs (annualized) as a percentage of average total loans		0.30		%		0.29			0.26			0.32			0.31
Allowance for loan losses as a percentage of:
Total loans		1.03				1.06			1.08			1.10			1.15
Nonaccrual loans (2)		150				149			143			141			144
Nonaccrual loans and other nonperforming assets (2)		141				138			134			131			133
Allowance for credit losses as a percentage of:
Total loans		1.12				1.16			1.18			1.19			1.25
Nonaccrual loans (2)		165				163			156			154			156
Nonaccrual loans and other nonperforming assets (2)		154				151			146			143			144
(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.
(2) Financial information for periods prior to the quarter ended December 31, 2018 has been revised to exclude MLHFS, LHFS and loans held at fair value.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
(in millions, except ratios)				Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Tangible book value per common share (1):
Total equity				$	197,066			199,679			206,069			205,910			208,079
Adjustments:
Preferred stock				(23,214		)		(23,482	)		(25,737	)		(26,227	)		(25,358	)
Additional paid-in capital on ESOP preferred stock				(95		)		(105	)		(116	)		(146	)		(122	)
Unearned ESOP shares				1,502				1,780			2,051			2,571			1,678
Noncontrolling interests				(900		)		(938	)		(881	)		(958	)		(1,143	)
Total common stockholders' equity		(A)		174,359				176,934			181,386			181,150			183,134
Adjustments:
Goodwill				(26,418		)		(26,425	)		(26,429	)		(26,445	)		(26,587	)
Certain identifiable intangible assets (other than MSRs)				(559		)		(826	)		(1,091	)		(1,357	)		(1,624	)
Other assets (2)				(2,187		)		(2,121	)		(2,160	)		(2,388	)		(2,155	)
Applicable deferred taxes (3)				785				829			874			918			962
Tangible common equity		(B)		$	145,980			148,391			152,580			151,878			153,730
Common shares outstanding		(C)		4,581.3				4,711.6			4,849.1			4,873.9			4,891.6
Book value per common share		(A)/(C)		$	38.06			37.55			37.41			37.17			37.44
Tangible book value per common share		(B)/(C)		31.86				31.49			31.47			31.16			31.43

				Quarter ended																	Year ended
(in millions, except ratios)				Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017				Dec 31, 2018			Dec 31, 2017
Return on average tangible common equity (1):
Net income applicable to common stock		(A)		$	5,711			5,453			4,792			4,733			5,740				20,689			20,554
Average total equity				198,442				202,826			206,067			206,180			207,413				203,356			205,654
Adjustments:
Preferred stock				(23,463		)		(24,219	)		(26,021	)		(26,157	)		(25,569	)			(24,956	)		(25,592	)
Additional paid-in capital on ESOP preferred stock				(105		)		(115	)		(129	)		(153	)		(129	)			(125	)		(139	)
Unearned ESOP shares				1,761				2,026			2,348			2,508			1,896				2,159			2,143
Noncontrolling interests				(910		)		(892	)		(919	)		(997	)		(998	)			(929	)		(948	)
Average common stockholders’ equity		(B)		175,725				179,626			181,346			181,381			182,613				179,505			181,118
Adjustments:
Goodwill				(26,423		)		(26,429	)		(26,444	)		(26,516	)		(26,579	)			(26,453	)		(26,629	)
Certain identifiable intangible assets (other than MSRs)				(693		)		(958	)		(1,223	)		(1,489	)		(1,767	)			(1,088	)		(2,176	)
Other assets (2)				(2,204		)		(2,083	)		(2,271	)		(2,233	)		(2,245	)			(2,197	)		(2,184	)
Applicable deferred taxes (3)				800				845			889			933			1,332				866			1,570
Average tangible common equity		(C)		$	147,205			151,001			152,297			152,076			153,354				150,633			151,699
Return on average common stockholders' equity (ROE) (annualized)		(A)/(B)		12.89		%		12.04			10.60			10.58			12.47				11.53			11.35
Return on average tangible common equity (ROTCE) (annualized)		(A)/(C)		15.39				14.33			12.62			12.62			14.85				13.73			13.55
(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
(in billions, except ratio)				Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Total equity				$	197.1			199.7			206.1			205.9			208.1
Adjustments:
Preferred stock				(23.2		)		(23.5	)		(25.7	)		(26.2	)		(25.4	)
Additional paid-in capital on ESOP preferred stock				(0.1		)		(0.1	)		(0.1	)		(0.1	)		(0.1	)
Unearned ESOP shares				1.5				1.8			2.0			2.6			1.7
Noncontrolling interests				(0.9		)		(0.9	)		(0.9	)		(1.0	)		(1.1	)
Total common stockholders' equity				174.4				177.0			181.4			181.2			183.2
Adjustments:
Goodwill				(26.4		)		(26.4	)		(26.4	)		(26.4	)		(26.6	)
Certain identifiable intangible assets (other than MSRs)				(0.6		)		(0.8	)		(1.1	)		(1.4	)		(1.6	)
Other assets (2)				(2.2		)		(2.1	)		(2.2	)		(2.4	)		(2.2	)
Applicable deferred taxes (3)				0.8				0.8			0.9			0.9			1.0
Investment in certain subsidiaries and other				0.4				0.4			0.4			0.4			0.2
Common Equity Tier 1 (Fully Phased-In) under Basel III		(A)		146.4				148.9			153.0			152.3			154.0
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)		(B)		$	1,248.4			1,250.2			1,276.3			1,278.1			1,285.6
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)		(A)/(B)		11.7		%		11.9			12.0			11.9			12.0
(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 December 31, 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 September 30, June 30 and March 31, 2018, and December 31, 2017, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s December 31, 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 Dec 31,
Net interest income (3)		$	7,340			7,239			4,739			4,557			1,116			1,152			(551	)		(635	)		12,644			12,313
Provision (reversal of provision) for credit losses		534				636			(28	)		20			(3	)		(7	)		18			2			521			651
Noninterest income		4,121				4,481			2,187			2,883			2,841			3,181			(813	)		(808	)		8,336			9,737
Noninterest expense		7,032				10,216			4,025			4,187			3,044			3,246			(762	)		(849	)		13,339			16,800
Income (loss) before income tax expense (benefit)		3,895				868			2,929			3,233			916			1,094			(620	)		(596	)		7,120			4,599
Income tax expense (benefit)		637				(2,682	)		253			854			231			413			(155	)		(227	)		966			(1,642	)
Net income (loss) before noncontrolling interests		3,258				3,550			2,676			2,379			685			681			(465	)		(369	)		6,154			6,241
Less: Net income (loss) from noncontrolling interests		89				78			5			6			(4	)		6			—			—			90			90
Net income (loss)		$	3,169			3,472			2,671			2,373			689			675			(465	)		(369	)		6,064			6,151
Average loans		$	459.7			473.2			470.2			463.5			75.2			72.9			(58.8	)		(57.8	)		946.3			951.8
Average assets		1,015.9				1,073.2			839.1			837.2			83.6			83.7			(59.6	)		(58.8	)		1,879.0			1,935.3
Average deposits		759.4				738.3			421.6			465.7			155.5			184.1			(67.6	)		(76.5	)		1,268.9			1,311.6
Year ended Dec 31,
Net interest income (3)		$	29,219			28,658			18,690			18,810			4,441			4,641			(2,355	)		(2,552	)		49,995			49,557
Provision (reversal of provision) for credit losses		1,783				2,555			(58	)		(19	)		(5	)		(5	)		24			(3	)		1,744			2,528
Noninterest income		17,694				18,360			10,016			11,190			11,935			12,431			(3,232	)		(3,149	)		36,413			38,832
Noninterest expense		30,491				32,615			16,157			16,624			12,938			12,623			(3,460	)		(3,378	)		56,126			58,484
Income (loss) before income tax expense (benefit)		14,639				11,848			12,607			13,395			3,443			4,454			(2,151	)		(2,320	)		28,538			27,377
Income tax expense (benefit)		3,784				634			1,555			3,496			861			1,668			(538	)		(881	)		5,662			4,917
Net income (loss) before noncontrolling interests		10,855				11,214			11,052			9,899			2,582			2,786			(1,613	)		(1,439	)		22,876			22,460
Less: Net income (loss) from noncontrolling interests		461				276			20			(15	)		2			16			—			—			483			277
Net income (loss)		$	10,394			10,938			11,032			9,914			2,580			2,770			(1,613	)		(1,439	)		22,393			22,183
Average loans		$	463.7			475.7			465.7			465.6			74.6			71.9			(58.8	)		(57.1	)		945.2			956.1
Average assets		1,034.1				1,085.5			830.5			822.8			83.9			82.8			(59.6	)		(58.1	)		1,888.9			1,933.0
Average deposits		757.2				729.6			423.7			464.2			165.0			189.0			(70.0	)		(78.2	)		1,275.9			1,304.6
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. 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
(income/expense in millions, average balances in billions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
COMMUNITY BANKING
Net interest income (2)		$	7,340			7,338			7,346			7,195			7,239
Provision for credit losses		534				547			484			218			636
Noninterest income		4,121				4,478			4,460			4,635			4,481
Noninterest expense		7,032				7,467			7,290			8,702			10,216
Income before income tax expense		3,895				3,802			4,032			2,910			868
Income tax expense (benefit)		637				925			1,413			809			(2,682	)
Net income before noncontrolling interests		3,258				2,877			2,619			2,101			3,550
Less: Net income from noncontrolling interests		89				61			123			188			78
Segment net income		$	3,169			2,816			2,496			1,913			3,472
Average loans		$	459.7			460.9			463.8			470.5			473.2
Average assets		1,015.9				1,024.9			1,034.3			1,061.9			1,073.2
Average deposits		759.4				760.9			760.6			747.5			738.3
WHOLESALE BANKING
Net interest income (2)		$	4,739			4,726			4,693			4,532			4,557
Provision (reversal of provision) for credit losses		(28		)		26			(36	)		(20	)		20
Noninterest income		2,187				2,578			2,504			2,747			2,883
Noninterest expense		4,025				3,935			4,219			3,978			4,187
Income before income tax expense		2,929				3,343			3,014			3,321			3,233
Income tax expense		253				475			379			448			854
Net income before noncontrolling interests		2,676				2,868			2,635			2,873			2,379
Less: Net income (loss) from noncontrolling interests		5				17			—			(2	)		6
Segment net income		$	2,671			2,851			2,635			2,875			2,373
Average loans		$	470.2			462.8			464.7			465.1			463.5
Average assets		839.1				827.2			826.4			829.2			837.2
Average deposits		421.6				413.6			414.0			446.0			465.7
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)		$	1,116			1,102			1,111			1,112			1,152
Provision (reversal of provision) for credit losses		(3		)		6			(2	)		(6	)		(7	)
Noninterest income		2,841				3,124			2,840			3,130			3,181
Noninterest expense		3,044				3,243			3,361			3,290			3,246
Income before income tax expense		916				977			592			958			1,094
Income tax expense		231				244			147			239			413
Net income before noncontrolling interests		685				733			445			719			681
Less: Net income (loss) from noncontrolling interests		(4		)		1			—			5			6
Segment net income		$	689			732			445			714			675
Average loans		$	75.2			74.6			74.7			73.9			72.9
Average assets		83.6				83.8			84.0			84.2			83.7
Average deposits		155.5				159.8			167.1			177.9			184.1
OTHER (3)
Net interest income (2)		$	(551	)		(594	)		(609	)		(601	)		(635	)
Provision (reversal of provision) for credit losses		18				1			6			(1	)		2
Noninterest income		(813		)		(811	)		(792	)		(816	)		(808	)
Noninterest expense		(762		)		(882	)		(888	)		(928	)		(849	)
Loss before income tax benefit		(620		)		(524	)		(519	)		(488	)		(596	)
Income tax benefit		(155		)		(132	)		(129	)		(122	)		(227	)
Net loss before noncontrolling interests		(465		)		(392	)		(390	)		(366	)		(369	)
Less: Net income from noncontrolling interests		—				—			—			—			—
Other net loss		$	(465	)		(392	)		(390	)		(366	)		(369	)
Average loans		$	(58.8	)		(58.8	)		(59.1	)		(58.5	)		(57.8	)
Average assets		(59.6		)		(59.6	)		(59.8	)		(59.4	)		(58.8	)
Average deposits		(67.6		)		(67.9	)		(70.4	)		(74.2	)		(76.5	)
CONSOLIDATED COMPANY
Net interest income (2)		$	12,644			12,572			12,541			12,238			12,313
Provision for credit losses		521				580			452			191			651
Noninterest income		8,336				9,369			9,012			9,696			9,737
Noninterest expense		13,339				13,763			13,982			15,042			16,800
Income before income tax expense		7,120				7,598			7,119			6,701			4,599
Income tax expense (benefit)		966				1,512			1,810			1,374			(1,642	)
Net income before noncontrolling interests		6,154				6,086			5,309			5,327			6,241
Less: Net income from noncontrolling interests		90				79			123			191			90
Wells Fargo net income		$	6,064			6,007			5,186			5,136			6,151
Average loans		$	946.3			939.5			944.1			951.0			951.8
Average assets		1,879.0				1,876.3			1,884.9			1,915.9			1,935.3
Average deposits		1,268.9				1,266.4			1,271.3			1,297.2			1,311.6
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
MSRs measured using the fair value method:
Fair value, beginning of quarter		$	15,980			15,411			15,041			13,625			13,338
Servicing from securitizations or asset transfers (1)		449				502			486			573			639
Sales and other (2)		(64		)		(2	)		(1	)		(4	)		(32	)
Net additions		385				500			485			569			607
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)		(874		)		582			376			1,253			221
Servicing and foreclosure costs (4)		763				(9	)		30			34			23
Discount rates (5)		(821		)		(9	)		—			—			13
Prepayment estimates and other (6)		(314		)		(33	)		(61	)		43			(55	)
Net changes in valuation model inputs or assumptions		(1,246		)		531			345			1,330			202
Changes due to collection/realization of expected cash flows over time		(470		)		(462	)		(460	)		(483	)		(522	)
Total changes in fair value		(1,716		)		69			(115	)		847			(320	)
Fair value, end of quarter		$	14,649			15,980			15,411			15,041			13,625
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from Government National Mortgage Association (GNMA) loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios or portfolios with servicing liabilities.
(3) Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates.
(6) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.

		Quarter ended
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Amortized MSRs:
Balance, beginning of quarter		$	1,414			1,407			1,411			1,424			1,406
Purchases		45				42			22			18			40
Servicing from securitizations or asset transfers		52				33			39			34			43
Amortization		(68		)		(68	)		(65	)		(65	)		(65	)
Balance, end of quarter		$	1,443			1,414			1,407			1,411			1,424
Fair value of amortized MSRs:
Beginning of quarter		$	2,389			2,309			2,307			2,025			1,990
End of quarter		2,288				2,389			2,309			2,307			2,025

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
				Quarter ended
(in millions)				Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Servicing income, net:
Servicing fees (1)				$	925			890			905			906			833
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(A)		(1,246		)		531			345			1,330			202
Changes due to collection/realization of expected cash flows over time				(470		)		(462	)		(460	)		(483	)		(522	)
Total changes in fair value of MSRs carried at fair value				(1,716		)		69			(115	)		847			(320	)
Amortization				(68		)		(68	)		(65	)		(65	)		(65	)
Net derivative gains (losses) from economic hedges (3)		(B)		968				(501	)		(319	)		(1,220	)		(186	)
Total servicing income, net				$	109			390			406			468			262
Market-related valuation changes to MSRs, net of hedge results (2)(3)		(A)+(B)		$	(278	)		30			26			110			16
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues, net of unreimbursed direct servicing costs.
(2) Refer to the changes in fair value MSRs table on the previous page for more detail.
(3) Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs.

(in billions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others		$	1,164			1,184			1,190			1,201			1,209
Owned loans serviced		334				337			340			337			342
Subserviced for others		4				5			4			5			3
Total residential servicing		1,502				1,526			1,534			1,543			1,554
Commercial mortgage servicing:
Serviced for others		543				529			518			510			495
Owned loans serviced		121				121			124			125			127
Subserviced for others		9				9			10			10			9
Total commercial servicing		673				659			652			645			631
Total managed servicing portfolio		$	2,175			2,185			2,186			2,188			2,185
Total serviced for others		$	1,707			1,713			1,708			1,711			1,704
Ratio of MSRs to related loans serviced for others		0.94		%		1.02			0.98			0.96			0.88
Weighted-average note rate (mortgage loans serviced for others)		4.32				4.29			4.27			4.24			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
				Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Net gains on mortgage loan origination/sales activities (in millions):
Residential		(A)		$	245			324			281			324			504
Commercial				65				75			49			76			95
Residential pipeline and unsold/repurchased loan management (1)				48				57			34			66			67
Total				$	358			456			364			466			666
Application data (in billions):
Wells Fargo first mortgage quarterly applications				$	48			57			67			58			63
Refinances as a percentage of applications				30		%		26			25			35			38
Wells Fargo first mortgage unclosed pipeline, at quarter end				$	18			22			26			24			23
Residential real estate originations:
Purchases as a percentage of originations				78		%		81			78			65			64
Refinances as a percentage of originations				22				19			22			35			36
Total				100		%		100			100			100			100
Wells Fargo first mortgage loans (in billions):
Retail				$	16			18			21			16			23
Correspondent				21				27			28			27			30
Other (2)				1				1			1			—			—
Total quarter-to-date				$	38			46			50			43			53
Held-for-sale		(B)		$	28			33			37			34			40
Held-for-investment				10				13			13			9			13
Total quarter-to-date				$	38			46			50			43			53
Total year-to-date				$	177			139			93			43			212
Production margin on residential held-for-sale mortgage originations		(A)/(B)		0.89		%		0.97			0.77			0.94			1.25
(1) Predominantly includes the results of sales of modified 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
(in millions)		Dec 31, 2018				Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017
Balance, beginning of period		$	178			179			181			181			179
Provision for repurchase losses:
Loan sales		5				5			4			3			4
Change in estimate (1)		(15		)		(4	)		(2	)		1			2
Net additions (reductions) to provision		(10		)		1			2			4			6
Losses		(3		)		(2	)		(4	)		(4	)		(4	)
Balance, end of period		$	165			178			179			181			181
(1) Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.