Wells Fargo Reports $5.5 Billion in Quarterly Net Income

Wells Fargo & Company (NYSE:WFC):

• Solid financial results:
  • Net income of $5.5 billion, in line with first quarter 2016
  • Diluted earnings per share (EPS) of $1.00, compared with $0.99
  • Revenue of $22.0 billion
    • Net interest income of $12.3 billion, up $633 million, or 5 percent
  • Total average deposits of $1.3 trillion, up $79.8 billion, or 7 percent, from first quarter 2016
  • Total average loans of $963.6 billion, up $36.4 billion, or 4 percent
    • Quarter-end loans of $958.4 billion, up $11.1 billion, or 1 percent
  • Return on assets (ROA) of 1.15 percent and return on equity (ROE) of 11.54 percent
• Improved credit quality:
  • Provision expense of $605 million, down $481 million, or 44 percent, from first quarter 2016
    • Net charge-offs of $805 million, down $81 million
      • Net charge-offs were 0.34 percent of average loans (annualized), down from 0.38 percent
    • Reserve release¹ of $200 million
  • Nonaccrual loans of $9.8 billion, down $2.5 billion, or 20 percent
• Strong capital position:
  • Common Equity Tier 1 ratio (fully phased-in) of 11.2 percent²
  • Period-end common shares outstanding down 79.2 million from first quarter 2016
  • Returned $3.1 billion to shareholders in the first quarter through common stock dividends and net share repurchases

Selected Financial Information
		Quarter ended
		Mar 31,				Dec 31,		Mar 31,
		2017				2016		2016
Earnings
Diluted earnings per common share		$	1.00			0.96		0.99
Wells Fargo net income (in billions)			5.46			5.27		5.46
Return on assets (ROA)			1.15	%		1.08		1.21
Return on equity (ROE)			11.54			10.94		11.75
Return on average tangible common equity (ROTCE)(a)			13.85			13.16		14.15
Asset Quality
Net charge-offs (annualized) as a % of average total loans			0.34	%		0.37		0.38
Allowance for credit losses as a % of total loans			1.28			1.30		1.34
Allowance for credit losses as a % of annualized net charge-offs			376			348		355
Other
Revenue (in billions)		$	22.0			21.6		22.2
Efficiency ratio (b)			62.7	%		61.2		58.7
Average loans (in billions)		$	963.6			964.1		927.2
Average deposits (in billions)			1,299.2			1,284.2		1,219.4
Net interest margin			2.87	%		2.87		2.90
(a) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 32.
(b) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

Wells Fargo & Company (NYSE:WFC) reported net income of $5.5 billion, or $1.00 per diluted common share, for first quarter 2017, compared with $5.5 billion, or $0.99 per share, for first quarter 2016, and $5.3 billion, or $0.96 per share, for fourth quarter 2016.

Chief Executive Officer Tim Sloan said, "Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results. We have taken significant actions throughout the company to date and we are committed to building a better bank as we move Wells Fargo forward. Earlier this week, the independent directors of Wells Fargo’s Board of Directors issued a report on their investigation into the company's retail banking sales practices. The findings are valuable to us and beneficial in helping to identify areas for further improvement. While we have more work to do, I am pleased with all we have accomplished thus far. Our 273,000 team members have remained committed to helping our customers succeed financially, as reflected in improved retail customer service scores, record levels of deposits, more primary consumer checking customers, record client assets in Wealth and Investment Management, and industry-leading mortgage originations."

Chief Financial Officer John Shrewsberry said, "Our diversified business model generated higher revenue and net income compared with last quarter, as well as higher ROA and ROE. Expenses were elevated compared with last quarter, driven by typically-higher first quarter personnel-related expenses. Credit results improved, with lower net charge-offs and nonaccrual loans, and we benefited from lower income tax expense. The balance sheet remained strong with high levels of capital and liquidity, and record deposits. We ended first quarter with Common Equity Tier 1 (fully phased-in) of $148.7 billion, or a Common Equity Tier 1 ratio (fully phased-in) of 11.2 percent², and returned $3.1 billion to shareholders during the quarter, for a net payout ratio³ of 61 percent."

Net Interest Income

Net interest income in first quarter 2017 decreased $102 million from fourth quarter 2016 to $12.3 billion, primarily due to two fewer days in the quarter. The impact of balance declines in trading assets and mortgages held-for-sale, as well as lower income from variable sources, was offset by average balance growth in investment securities and the benefit from higher interest rates in the quarter.

Net interest margin was 2.87 percent, stable with fourth quarter 2016. The benefit of higher interest rates, a reduction in short-term market funding, and average balance growth in investment securities was offset by lower income from trading assets and mortgages held-for-sale, higher deposit and long-term debt balances, and lower income from variable sources.

Noninterest Income

Noninterest income in the first quarter was $9.7 billion, up from $9.2 billion in fourth quarter 2016, driven by higher other income and higher market-sensitive revenue, particularly in trading. These increases were partially offset by lower mortgage banking income, investment banking fees and commercial real estate brokerage commissions.

• Net gain from trading activities was $439 million in the first quarter, compared with a net loss of $109 million in the fourth quarter. Results in the first quarter were driven by higher secondary trading, as well as higher deferred compensation plan investment results (offset in employee benefits expense).
• Mortgage banking noninterest income was $1.2 billion, compared with $1.4 billion in fourth quarter 2016. As expected, residential mortgage loan originations declined in the first quarter, down to $44 billion, from $72 billion in the fourth quarter. The production margin on residential held-for-sale mortgage loan originations⁴ was 1.68 percent, in line with the fourth quarter. Mortgage servicing income increased to $456 million in the first quarter from $196 million in the fourth quarter, primarily due to lower unreimbursed servicing costs and lower prepayments.
• Other income was $145 million, compared with $(382) million in the fourth quarter. First quarter 2017 included a $(193) million net hedge ineffectiveness accounting impact, resulting largely from foreign currency fluctuations, compared with a $(592) million net hedge ineffectiveness accounting impact in the fourth quarter, which reflected both an increase in interest rates and foreign currency fluctuations.

Noninterest Expense

Noninterest expense in the first quarter was $13.8 billion, compared with $13.2 billion in fourth quarter 2016. First quarter expenses included $790 million of seasonally higher employee benefits and incentive compensation expense, and an increase in deferred compensation expense (included in employee benefits expense and offset in revenue), partially offset by lower outside professional services, equipment, and advertising and promotion expenses, which typically decline in first quarter. The efficiency ratio increased to 62.7 percent in first quarter 2017, compared with 61.2 percent in the prior quarter. The Company currently expects the efficiency ratio to remain elevated.

Income Taxes

The Company’s effective income tax rate was 27.4 percent for first quarter 2017, compared with 30.0 percent in the prior quarter. The effective tax rate for the first quarter included discrete tax benefits totaling $197 million, of which $183 million resulted from tax benefits associated with stock compensation activity during the quarter which was subject to ASU 2016-09 accounting guidance adopted in first quarter 2017. The Company currently expects the full year 2017 tax rate to be approximately 30 percent.

Loans

Total average loans were $963.6 billion in the first quarter, down $502 million from the fourth quarter. Period-end loan balances were $958.4 billion at March 31, 2017, down $9.2 billion from December 31, 2016, driven by a decline in credit card balances due to seasonality, a slowdown in new credit card account openings, and a continued decline in junior lien mortgage loans. In addition, there was an expected decline in auto loans from the fourth quarter as continued proactive steps to tighten underwriting standards resulted in lower origination volume.

Period-End Loan Balances
			Mar 31,					Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)			2017					2016			2016			2016			2016
Commercial			$	505,004				506,536			496,454			494,538			488,205
Consumer				453,401				461,068			464,872			462,619			459,053
Total loans			$	958,405				967,604			961,326			957,157			947,258
Change from prior quarter			$	(9,199	)			6,278			4,169			9,899			30,699

Cash, Cash Equivalents and Investment Securities

Cash, federal funds sold, securities purchased under resale agreements and other short-term investments reached an all-time high of $328.4 billion at March 31, 2017, up $41.7 billion from the fourth quarter, driven by deposit growth and a linked-quarter decline in the loan portfolio. Investment securities were $407.6 billion at March 31, 2017, down $387 million from the fourth quarter, as approximately $16 billion of purchases were more than offset by run-off and sales.

Net unrealized losses on available-for-sale securities were $1.2 billion at March 31, 2017, compared with net unrealized losses on available-for-sale securities of $1.8 billion at December 31, 2016, primarily due to tighter credit spreads during the quarter and a modest benefit from lower long-term interest rates.

Deposits

Total average deposits for first quarter 2017 were $1.3 trillion, up 1 percent from the prior quarter, driven by growth in consumer and small business, as well as commercial. The average deposit cost for first quarter 2017 was 17 basis points, up 5 basis points from the prior quarter and 7 basis points from a year ago, primarily driven by an increase in commercial deposit rates.

Capital

Capital levels remained strong in the first quarter, with a Common Equity Tier 1 ratio (fully phased-in) of 11.2 percent², compared with 10.8 percent in the prior quarter. In first quarter 2017, the Company repurchased 53.1 million shares of its common stock, which reduced period-end common shares outstanding by 19.4 million after taking into account seasonally higher common stock issuances to employee benefit plans. The Company paid a quarterly common stock dividend of $0.38 per share, up from $0.375 per share a year ago.

Credit Quality

"First quarter credit results reflected strong performance in our commercial portfolios and consumer real estate portfolios," said Chief Risk Officer Mike Loughlin. "Improvement in the oil and gas portfolio, as well as continued improvement in residential real estate, drove a $200 million reserve release¹ in the quarter."

Net Loan Charge-offs

The quarterly loss rate of 0.34 percent (annualized) reflected commercial losses of 0.11 percent and consumer losses of 0.59 percent. Credit losses were $805 million in first quarter 2017, down $100 million from fourth quarter 2016. Consumer losses increased $8 million, driven by higher credit card losses, predominantly offset by lower losses in 1-4 family junior lien mortgage and other revolving credit and installment portfolios. Commercial losses were down $108 million driven by lower oil and gas losses and increased recoveries.

Net Loan Charge-Offs
		Quarter ended
		March 31, 2017							December 31, 2016							September 30, 2016
		Net loan				As a % of			Net loan				As a % of			Net loan				As a % of
		charge-				average			charge-				average			charge-				average
($ in millions)		offs				loans (a)			offs				loans (a)			offs				loans (a)
Commercial:
Commercial and industrial		$	171			0.21	%		$	256			0.31	%		$	259			0.32	%
Real estate mortgage			(25	)		(0.08	)			(12	)		(0.04	)			(28	)		(0.09	)
Real estate construction			(8	)		(0.15	)			(8	)		(0.13	)			(18	)		(0.32	)
Lease financing			5			0.11				15			0.32				2			0.04
Total commercial			143			0.11				251			0.20				215			0.17
Consumer:
Real estate 1-4 family first mortgage			7			0.01				(3	)		—				20			0.03
Real estate 1-4 family junior lien mortgage			23			0.21				44			0.38				49			0.40
Credit card			309			3.54				275			3.09				245			2.82
Automobile			167			1.10				166			1.05				137			0.87
Other revolving credit and installment			156			1.60				172			1.70				139			1.40
Total consumer			662			0.59				654			0.56				590			0.51
Total		$	805			0.34	%		$	905			0.37	%		$	805			0.33	%
(a) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 29 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased $698 million from fourth quarter 2016 to $10.7 billion. Nonaccrual loans decreased $625 million from fourth quarter to $9.8 billion reflecting declines across all major commercial asset classes, as well as continued lower consumer real estate nonaccruals.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
			March 31, 2017									December 31, 2016									September 30, 2016
								As a									As a									As a
								% of									% of									% of
			Total					total				Total					total				Total					total
($ in millions)			balances					loans				balances					loans				balances					loans
Commercial:
Commercial and industrial			$	2,898				0.88	%			$	3,216				0.97	%			$	3,331				1.03	%
Real estate mortgage				672				0.51					685				0.52					780				0.60
Real estate construction				40				0.16					43				0.18					59				0.25
Lease financing				96				0.50					115				0.60					92				0.49
Total commercial				3,706				0.73					4,059				0.80					4,262				0.86
Consumer:
Real estate 1-4 family first mortgage				4,743				1.73					4,962				1.80					5,310				1.91
Real estate 1-4 family junior lien mortgage				1,153				2.60					1,206				2.61					1,259				2.62
Automobile				101				0.17					106				0.17					108				0.17
Other revolving credit and installment				56				0.14					51				0.13					47				0.12
Total consumer				6,053				1.34					6,325				1.37					6,724				1.45
Total nonaccrual loans				9,759				1.02					10,384				1.07					10,986				1.14
Foreclosed assets:
Government insured/guaranteed				179									197									282
Non-government insured/guaranteed				726									781									738
Total foreclosed assets				905									978									1,020
Total nonperforming assets			$	10,664				1.11	%			$	11,362				1.17	%			$	12,006				1.25	%
Change from prior quarter:
Total nonaccrual loans			$	(625	)							$	(602	)							$	(977	)
Total nonperforming assets				(698	)								(644	)								(1,074	)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.3 billion at March 31, 2017, which was down $253 million from December 31, 2016. The allowance coverage for total loans was 1.28 percent, compared with 1.30 percent in fourth quarter 2016. The allowance covered 3.8 times annualized first quarter net charge-offs, compared with 3.5 times in the prior quarter. The allowance coverage for nonaccrual loans was 126 percent at March 31, 2017, compared with 121 percent at December 31, 2016. “We believe the allowance was appropriate for losses inherent in the loan portfolio at March 31, 2017,” said Loughlin.

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
			Mar 31,				Dec 31,			Mar 31,
(in millions)			2017				2016			2016
Community Banking			$	3,009			2,733			3,296
Wholesale Banking				2,115			2,194			1,921
Wealth and Investment Management				623			653			512

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 auto, student, and small business lending. Community Banking also offers investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Lending business units.

Selected Financial Information
			Quarter ended
			Mar 31,				Dec 31,			Mar 31,
(in millions)			2017				2016			2016
Total revenue			$	12,093			11,661			12,614
Provision for credit losses				646			631			720
Noninterest expense				7,221			6,985			6,836
Segment net income				3,009			2,733			3,296
(in billions)
Average loans				482.7			488.1			484.3
Average assets				990.7			1,000.7			947.4
Average deposits				717.2			709.8			683.0

Community Banking reported net income of $3.0 billion, up $276 million, or 10 percent, from fourth quarter 2016. Revenue of $12.1 billion increased $432 million, or 4 percent, from fourth quarter 2016, driven by higher other income (reflecting the accounting impact of net hedge ineffectiveness), gains on equity investments, and net interest income, partially offset by lower mortgage banking revenue and gains on sales of debt securities. Noninterest expense increased $236 million, compared with fourth quarter 2016, due to seasonally higher personnel expense and higher deferred compensation plan expense (offset in trading revenue), partially offset by lower professional services, equipment, and advertising expense.

Net income was down $287 million, or 9 percent, from first quarter 2016. Revenue decreased $521 million, or 4 percent, compared with a year ago due to lower other income (reflecting the accounting impact of net hedge ineffectiveness), mortgage banking revenue, and gains on sales of debt securities, partially offset by higher gains on equity investments, net interest income, and deferred compensation plan investments (offset in employee benefits expense). Noninterest expense increased $385 million, or 6 percent, from a year ago driven by higher personnel, deferred compensation plan expense (offset in trading revenue), professional services, and equipment expense, partially offset by lower operating losses and other expense. The provision for credit losses decreased $74 million from a year ago primarily due to improvement in the consumer real estate portfolios.

Retail Banking and Consumer Payments

• With over 400,000 branch customer experience surveys completed, ‘Overall Satisfaction with Most Recent Visit’ and ‘Loyalty’ scores continued to improve each month in the first quarter
• Primary consumer checking customers⁵ in March up 1.6 percent year-over-year
• Debit card purchase volume⁶ of $75.7 billion in first quarter, up 4 percent year-over-year
• Credit card purchase volume of $17.9 billion in first quarter, up 3 percent year-over-year
• Credit card penetration in retail banking households rose to 45.5 percent, up 19 basis points year-over-year^7,8
• 28.1 million digital (online and mobile) active customers in March, including 20.3 million mobile active users⁹
• #1 overall performance in Keynote Mobile Banking Scorecard; also best in “Functionality,” “Quality & Availability” and “Best App & Mobile Web Experiences” (March 2017)
• First large bank in the U.S. to offer card-free account access through One-Time Access Code mobile technology at all 13,000 ATMs

Consumer Lending

• Auto originations of $5.5 billion in first quarter, down 15 percent from prior quarter and down 29 percent from prior year, as continued proactive steps to tighten underwriting standards resulted in lower origination volume
• Home Lending
  • Originations of $44 billion, down from $72 billion in prior quarter
  • Applications of $59 billion, down from $75 billion in prior quarter
  • Application pipeline of $28 billion at quarter end, down from $30 billion at December 31, 2016

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $5 million. Products and businesses include Business Banking, Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments and Asset Backed Finance.

Selected Financial Information
			Quarter ended
			Mar 31,					Dec 31,				Mar 31,
(in millions)			2017					2016				2016
Total revenue			$	7,038				7,153				6,958
Provision (reversal of provision) for credit losses				(43	)			168				363
Noninterest expense				4,225				4,002				3,968
Segment net income				2,115				2,194				1,921
(in billions)
Average loans				466.3				461.5				429.8
Average assets				807.8				811.9				748.6
Average deposits				466.0				459.2				428.0

Wholesale Banking reported net income of $2.1 billion, down $79 million, or 4 percent, from fourth quarter 2016. Revenue of $7.0 billion decreased $115 million, or 2 percent, from the prior quarter. Net interest income decreased $175 million, or 4 percent, as loan growth was more than offset by lower trading-related interest income as well as the impact of two fewer days in the quarter. Noninterest income increased $60 million, or 2 percent, as strong customer accommodation trading results were partially offset by lower investment banking and commercial real estate brokerage fees. Noninterest expense increased $223 million, or 6 percent, from the prior quarter due to seasonally higher personnel expenses. The provision for credit losses decreased $211 million from the prior quarter, primarily due to improvements in the oil and gas portfolio.

Net income increased $194 million, or 10 percent, from first quarter 2016. Revenue increased $80 million, or 1 percent, from first quarter 2016, driven by a $400 million increase in net interest income primarily related to loan growth including the GE Capital portfolio acquisitions. Noninterest income decreased $320 million, or 10 percent, primarily due to the first quarter 2016 sale of our crop insurance business which resulted in lower insurance and gain on sale income, partially offset by higher investment banking fees, customer accommodation trading, and lease income related to the GE Capital portfolio acquisitions. Noninterest expense increased $257 million, or 6 percent, from a year ago primarily due to the GE Capital portfolio acquisitions and higher expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses decreased $406 million from a year ago primarily due to improvements in the oil and gas portfolio.

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

Selected Financial Information
			Quarter ended
			Mar 31,					Dec 31,				Mar 31,
(in millions)			2017					2016				2016
Total revenue			$	4,193				4,074				3,854
Provision (reversal of provision) for credit losses				(4	)			3				(14	)
Noninterest expense				3,206				3,042				3,042
Segment net income				623				653				512
(in billions)
Average loans				70.7				70.0				64.1
Average assets				221.9				220.4				208.1
Average deposits				195.6				194.9				184.5

Wealth and Investment Management reported net income of $623 million, down $30 million, or 5 percent, from fourth quarter 2016. Revenue of $4.2 billion increased $119 million, or 3 percent, from the prior quarter, primarily due to higher gains on deferred compensation plan investments (offset in employee benefits expense), other fee income, and net interest income. Noninterest expense increased $164 million, or 5 percent, from the prior quarter, primarily driven by seasonally higher personnel expenses and deferred compensation plan expense (offset in trading revenue).

Net income was up $111 million, or 22 percent, from first quarter 2016. Revenue increased $339 million, or 9 percent, from a year ago primarily driven by higher net interest income, asset-based fees, deferred compensation plan investments (offset in employee benefits expense), and other fee income. Noninterest expense increased $164 million, or 5 percent, from a year ago, primarily due to higher non-personnel expenses, deferred compensation plan expense (offset in trading revenue), and broker commissions.

• March closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) totaled $1 billion for the first time since the month of the sales practices settlement announcement
• WIM total client assets reached a record-high of $1.8 trillion in the first quarter, up 9 percent from a year ago, driven by higher market valuations and continued positive net flows

Retail Brokerage

• Client assets of $1.6 trillion, up 10 percent from prior year
• Advisory assets of $490 billion, up 14 percent from prior year, primarily driven by higher market valuations and positive net flows
• Strong loan growth, with average balances up 15 percent from prior year largely due to continued growth in non-conforming mortgage loans

Wealth Management

• Client assets of $237 billion, up 5 percent from prior year
• Average loan balances up 8 percent from prior year primarily driven by continued growth in non-conforming mortgage loans

Retirement

• IRA assets of $383 billion, up 7 percent from prior year
• Institutional Retirement plan assets of $361 billion, up 9 percent from prior year

Asset Management

• Total assets under management of $481 billion, flat from prior year as higher market valuations, positive fixed income net flows and assets acquired during the prior year, were offset by equity and money market net outflows.

Conference Call

The Company will host a live conference call on Thursday, April 13, at 7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (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~56300037.

A replay of the conference call will be available beginning at 10:00 a.m. PT (1:00 p.m. ET) on Thursday, April 13 through Friday, April 28. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #56300037. 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~56300037.

Endnotes
1		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.
2		See table on page 33 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.
3		Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.
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 38 for more information.
5		Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.
6		Combined consumer and business debit card purchase volume dollars.
7		Data as of February 2017, comparisons with February 2016.
8		Credit card penetration defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. Effective second quarter 2016, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Prior period metrics have been revised to conform with the updated definition of Retail Banking households. Credit card household penetration rates have not been adjusted to reflect the impact of the approximately 565,000 potentially unauthorized accounts identified by an independent consulting firm because the maximum impact in any one quarter was not greater than 86 basis points, or approximately 2 percent.
9		Primarily includes retail banking, consumer lending, small business and business banking customers.

Forward-Looking Statements

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

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

• current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
• the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
• negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
• our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
• the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
• significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;
• the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
• negative effects from the retail banking sales practices matter, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;
• reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
• fiscal and monetary policies of the Federal Reserve Board; and
• the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016.

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

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

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

About Wells Fargo

Wells Fargo & Company (NYSE:WFC) is a diversified, community-based financial services company with $2.0 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,500 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 273,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially.

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
			Pages
Summary Information
Summary Financial Data			15
Income
Consolidated Statement of Income			17
Consolidated Statement of Comprehensive Income			19
Condensed Consolidated Statement of Changes in Total Equity			19
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			20
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			21
Noninterest Income and Noninterest Expense			22
Balance Sheet
Consolidated Balance Sheet			24
Investment Securities			26
Loans
Loans			26
Nonperforming Assets			27
Loans 90 Days or More Past Due and Still Accruing			28
Purchased Credit-Impaired Loans			29
Pick-A-Pay Portfolio			30
Changes in Allowance for Credit Losses			31
Equity
Tangible Common Equity			32
Common Equity Tier 1 Under Basel III			33
Operating Segments
Operating Segment Results			34
Other
Mortgage Servicing and other related data			36

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
										% Change
		Quarter ended								Mar 31, 2017 from
		Mar 31,				Dec 31,		Mar 31,		Dec 31,			Mar 31,
($ in millions, except per share amounts)		2017				2016		2016		2016			2016
For the Period
Wells Fargo net income		$	5,457			5,274		5,462		3	%		—
Wells Fargo net income applicable to common stock			5,056			4,872		5,085		4			(1	)
Diluted earnings per common share			1.00			0.96		0.99		4			1
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.15	%		1.08		1.21		6			(5	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			11.54			10.94		11.75		5			(2	)
Return on average tangible common equity (ROTCE)(1)			13.85			13.16		14.15		5			(2	)
Efficiency ratio (2)			62.7			61.2		58.7		2			7
Total revenue		$	22,002			21,582		22,195		2			(1	)
Pre-tax pre-provision profit (PTPP) (3)			8,210			8,367		9,167		(2	)		(10	)
Dividends declared per common share			0.380			0.380		0.375		—			1
Average common shares outstanding			5,008.6			5,025.6		5,075.7		—			(1	)
Diluted average common shares outstanding			5,070.4			5,078.2		5,139.4		—			(1	)
Average loans		$	963,645			964,147		927,220		—			4
Average assets			1,931,041			1,944,250		1,819,875		(1	)		6
Average total deposits			1,299,191			1,284,158		1,219,430		1			7
Average consumer and small business banking deposits (4)			758,754			749,946		714,837		1			6
Net interest margin			2.87	%		2.87		2.90		—			(1	)
At Period End
Investment securities		$	407,560			407,947		334,899		—			22
Loans			958,405			967,604		947,258		(1	)		1
Allowance for loan losses			11,168			11,419		11,621		(2	)		(4	)
Goodwill			26,666			26,693		27,003		—			(1	)
Assets			1,951,564			1,930,115		1,849,182		1			6
Deposits			1,325,444			1,306,079		1,241,490		1			7
Common stockholders' equity			178,388			176,469		175,534		1			2
Wells Fargo stockholders’ equity			201,500			199,581		197,496		1			2
Total equity			202,489			200,497		198,504		1			2
Tangible common equity (1)			148,850			146,737		144,679		1			3
Common shares outstanding			4,996.7			5,016.1		5,075.9		—			(2	)
Book value per common share (5)		$	35.70			35.18		34.58		1			3
Tangible book value per common share (1)(5)			29.79			29.25		28.50		2			5
Common stock price:
High			59.99			58.02		53.27		3			13
Low			53.35			43.55		44.50		23			20
Period end			55.66			55.11		48.36		1			15
Team members (active, full-time equivalent)			272,800			269,100		268,600		1			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 investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 32.
(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) 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
		Mar 31,				Dec 31,		Sep 30,		Jun 30,		Mar 31,
($ in millions, except per share amounts)		2017				2016		2016		2016		2016
For the Quarter
Wells Fargo net income		$	5,457			5,274		5,644		5,558		5,462
Wells Fargo net income applicable to common stock			5,056			4,872		5,243		5,173		5,085
Diluted earnings per common share			1.00			0.96		1.03		1.01		0.99
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.15	%		1.08		1.17		1.20		1.21
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			11.54			10.94		11.60		11.70		11.75
Return on average tangible common equity (ROTCE)(1)			13.85			13.16		13.96		14.15		14.15
Efficiency ratio (2)			62.7			61.2		59.4		58.1		58.7
Total revenue		$	22,002			21,582		22,328		22,162		22,195
Pre-tax pre-provision profit (PTPP) (3)			8,210			8,367		9,060		9,296		9,167
Dividends declared per common share			0.380			0.380		0.380		0.380		0.375
Average common shares outstanding			5,008.6			5,025.6		5,043.4		5,066.9		5,075.7
Diluted average common shares outstanding			5,070.4			5,078.2		5,094.6		5,118.1		5,139.4
Average loans		$	963,645			964,147		957,484		950,751		927,220
Average assets			1,931,041			1,944,250		1,914,586		1,862,084		1,819,875
Average total deposits			1,299,191			1,284,158		1,261,527		1,236,658		1,219,430
Average consumer and small business banking deposits (4)			758,754			749,946		739,066		726,359		714,837
Net interest margin			2.87	%		2.87		2.82		2.86		2.90
At Quarter End
Investment securities		$	407,560			407,947		390,832		353,426		334,899
Loans			958,405			967,604		961,326		957,157		947,258
Allowance for loan losses			11,168			11,419		11,583		11,664		11,621
Goodwill			26,666			26,693		26,688		26,963		27,003
Assets			1,951,564			1,930,115		1,942,124		1,889,235		1,849,182
Deposits			1,325,444			1,306,079		1,275,894		1,245,473		1,241,490
Common stockholders' equity			178,388			176,469		179,916		178,633		175,534
Wells Fargo stockholders’ equity			201,500			199,581		203,028		201,745		197,496
Total equity			202,489			200,497		203,958		202,661		198,504
Tangible common equity (1)			148,850			146,737		149,829		148,110		144,679
Common shares outstanding			4,996.7			5,016.1		5,023.9		5,048.5		5,075.9
Book value per common share (5)		$	35.70			35.18		35.81		35.38		34.58
Tangible book value per common share (1)(5)			29.79			29.25		29.82		29.34		28.50
Common stock price:
High			59.99			58.02		51.00		51.41		53.27
Low			53.35			43.55		44.10		44.50		44.50
Period end			55.66			55.11		44.28		47.33		48.36
Team members (active, full-time equivalent)			272,800			269,100		268,800		267,900		268,600
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 32.
(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) 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 March 31,							%
(in millions, except per share amounts)			2017				2016			Change
Interest income
Trading assets			$	643			596			8	%
Investment securities				2,675			2,262			18
Mortgages held for sale				184			161			14
Loans held for sale				1			2			(50	)
Loans				10,141			9,577			6
Other interest income				582			374			56
Total interest income				14,226			12,972			10
Interest expense
Deposits				537			307			75
Short-term borrowings				114			67			70
Long-term debt				1,183			842			40
Other interest expense				92			89			3
Total interest expense				1,926			1,305			48
Net interest income				12,300			11,667			5
Provision for credit losses				605			1,086			(44	)
Net interest income after provision for credit losses				11,695			10,581			11
Noninterest income
Service charges on deposit accounts				1,313			1,309			—
Trust and investment fees				3,570			3,385			5
Card fees				945			941			—
Other fees				865			933			(7	)
Mortgage banking				1,228			1,598			(23	)
Insurance				277			427			(35	)
Net gains from trading activities				439			200			120
Net gains on debt securities				36			244			(85	)
Net gains from equity investments				403			244			65
Lease income				481			373			29
Other				145			874			(83	)
Total noninterest income				9,702			10,528			(8	)
Noninterest expense
Salaries				4,261			4,036			6
Commission and incentive compensation				2,725			2,645			3
Employee benefits				1,686			1,526			10
Equipment				577			528			9
Net occupancy				712			711			—
Core deposit and other intangibles				289			293			(1	)
FDIC and other deposit assessments				333			250			33
Other				3,209			3,039			6
Total noninterest expense				13,792			13,028			6
Income before income tax expense				7,605			8,081			(6	)
Income tax expense				2,057			2,567			(20	)
Net income before noncontrolling interests				5,548			5,514			1
Less: Net income from noncontrolling interests				91			52			75
Wells Fargo net income			$	5,457			5,462			—
Less: Preferred stock dividends and other				401			377			6
Wells Fargo net income applicable to common stock			$	5,056			5,085			(1	)
Per share information
Earnings per common share			$	1.01			1.00			1
Diluted earnings per common share				1.00			0.99			1
Dividends declared per common share				0.380			0.375			1
Average common shares outstanding				5,008.6			5,075.7			(1	)
Diluted average common shares outstanding				5,070.4			5,139.4			(1	)

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
			Quarter ended
			Mar 31,				Dec 31,				Sep 30,			Jun 30,			Mar 31,
(in millions, except per share amounts)			2017				2016				2016			2016			2016
Interest income
Trading assets			$	643			745				593			572			596
Investment securities				2,675			2,512				2,298			2,176			2,262
Mortgages held for sale				184			235				207			181			161
Loans held for sale				1			2				2			3			2
Loans				10,141			10,128				9,978			9,822			9,577
Other interest income				582			436				409			392			374
Total interest income				14,226			14,058				13,487			13,146			12,972
Interest expense
Deposits				537			400				356			332			307
Short-term borrowings				114			101				85			77			67
Long-term debt				1,183			1,061				1,006			921			842
Other interest expense				92			94				88			83			89
Total interest expense				1,926			1,656				1,535			1,413			1,305
Net interest income				12,300			12,402				11,952			11,733			11,667
Provision for credit losses				605			805				805			1,074			1,086
Net interest income after provision for credit losses				11,695			11,597				11,147			10,659			10,581
Noninterest income
Service charges on deposit accounts				1,313			1,357				1,370			1,336			1,309
Trust and investment fees				3,570			3,698				3,613			3,547			3,385
Card fees				945			1,001				997			997			941
Other fees				865			962				926			906			933
Mortgage banking				1,228			1,417				1,667			1,414			1,598
Insurance				277			262				293			286			427
Net gains (losses) from trading activities				439			(109	)			415			328			200
Net gains on debt securities				36			145				106			447			244
Net gains from equity investments				403			306				140			189			244
Lease income				481			523				534			497			373
Other				145			(382	)			315			482			874
Total noninterest income				9,702			9,180				10,376			10,429			10,528
Noninterest expense
Salaries				4,261			4,193				4,224			4,099			4,036
Commission and incentive compensation				2,725			2,478				2,520			2,604			2,645
Employee benefits				1,686			1,101				1,223			1,244			1,526
Equipment				577			642				491			493			528
Net occupancy				712			710				718			716			711
Core deposit and other intangibles				289			301				299			299			293
FDIC and other deposit assessments				333			353				310			255			250
Other				3,209			3,437				3,483			3,156			3,039
Total noninterest expense				13,792			13,215				13,268			12,866			13,028
Income before income tax expense				7,605			7,562				8,255			8,222			8,081
Income tax expense				2,057			2,258				2,601			2,649			2,567
Net income before noncontrolling interests				5,548			5,304				5,654			5,573			5,514
Less: Net income from noncontrolling interests				91			30				10			15			52
Wells Fargo net income			$	5,457			5,274				5,644			5,558			5,462
Less: Preferred stock dividends and other				401			402				401			385			377
Wells Fargo net income applicable to common stock			$	5,056			4,872				5,243			5,173			5,085
Per share information
Earnings per common share			$	1.01			0.97				1.04			1.02			1.00
Diluted earnings per common share				1.00			0.96				1.03			1.01			0.99
Dividends declared per common share				0.380			0.380				0.380			0.380			0.375
Average common shares outstanding				5,008.6			5,025.6				5,043.4			5,066.9			5,075.7
Diluted average common shares outstanding				5,070.4			5,078.2				5,094.6			5,118.1			5,139.4

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Quarter ended Mar 31,									%
(in millions)			2017					2016				Change
Wells Fargo net income			$	5,457				5,462				—%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains arising during the period				369				795				(54)
Reclassification of net gains to net income				(145	)			(304	)			(52)
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period				(133	)			1,999				NM
Reclassification of net gains on cash flow hedges to net income				(202	)			(256	)			(21)
Defined benefit plans adjustments:
Net actuarial and prior service losses arising during the period				(7	)			(8	)			(13)
Amortization of net actuarial loss, settlements and other to net income				38				37				3
Foreign currency translation adjustments:
Net unrealized gains arising during the period				16				43				(63)
Other comprehensive income (loss), before tax				(64	)			2,306				NM
Income tax (expense) benefit related to other comprehensive income				37				(857	)			NM
Other comprehensive income (loss), net of tax				(27	)			1,449				NM
Less: Other comprehensive income (loss) from noncontrolling interests				14				(28	)			NM
Wells Fargo other comprehensive income (loss), net of tax				(41	)			1,477				NM
Wells Fargo comprehensive income				5,416				6,939				(22)
Comprehensive income from noncontrolling interests				105				24				338
Total comprehensive income			$	5,521				6,963				(21)
NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
		Quarter ended
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)		2017				2016			2016			2016			2016
Balance, beginning of period		$	200,497			203,958			202,661			198,504			193,891
Cumulative effect from change in consolidation accounting (1)			—			—			—			—			121
Wells Fargo net income			5,457			5,274			5,644			5,558			5,462
Wells Fargo other comprehensive income (loss), net of tax			(41	)		(5,321	)		(764	)		1,174			1,477
Noncontrolling interests			75			(13	)		14			(92	)		(5	)
Common stock issued			1,406			610			300			397			1,079
Common stock repurchased (2)			(2,175	)		(2,034	)		(1,839	)		(2,214	)		(2,029	)
Preferred stock released by ESOP			—			43			236			371			313
Common stock warrants repurchased/exercised			(44	)		—			(17	)		—			—
Preferred stock issued			—			—			—			1,126			975
Common stock dividends			(1,903	)		(1,909	)		(1,918	)		(1,930	)		(1,904	)
Preferred stock dividends			(401	)		(401	)		(401	)		(386	)		(378	)
Tax benefit from stock incentive compensation (3)			—			74			31			23			149
Stock incentive compensation expense			389			232			39			139			369
Net change in deferred compensation and related plans			(771	)		(16	)		(28	)		(9	)		(1,016	)
Balance, end of period		$	202,489			200,497			203,958			202,661			198,504
(1) Effective January 1, 2016, we adopted changes in consolidation accounting pursuant to Accounting Standards Update 2015-02 (Amendments to the Consolidation Analysis). Accordingly, we recorded a $121 million net increase to beginning noncontrolling interests as a cumulative-effect adjustment.
(2) For the quarter ended December 31, 2016, includes $750 million related to a private forward repurchase transaction that settled in first quarter 2017 for 14.7 million shares of common stock.
(3) Effective January 1, 2017, we adopted Accounting Standards Update 2016-09 (Improvements to Employee Share-Based Payment Accounting). Accordingly, tax benefit from stock incentive compensation is reported in income tax expense in the consolidated statement of income.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended March 31,
		2017											2016
									Interest										Interest
		Average				Yields/			income/				Average			Yields/			income/
(in millions)		balance				rates			expense				balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	283,767			0.76	%		$	532			284,697			0.49	%		$	344
Trading assets			93,765			2.80				655			80,464			3.01				605
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			25,034			1.54				95			34,474			1.59				136
Securities of U.S. states and political subdivisions			52,248			4.03				526			50,512			4.24				535
Mortgage-backed securities:
Federal agencies			156,617			2.58				1,011			96,423			2.80				675
Residential and commercial			14,452			5.32				192			20,827			5.20				271
Total mortgage-backed securities			171,069			2.81				1,203			117,250			3.23				946
Other debt and equity securities			50,620			3.60				452			53,558			3.21				429
Total available-for-sale securities			298,971			3.05				2,276			255,794			3.20				2,046
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,693			2.20				243			44,664			2.20				244
Securities of U.S. states and political subdivisions			6,273			5.30				83			2,156			5.41				29
Federal agency and other mortgage-backed securities			51,786			2.51				324			28,114			2.49				175
Other debt securities			3,329			2.34				19			4,598			1.92				22
Total held-to-maturity securities			106,081			2.54				669			79,532			2.37				470
Total investment securities			405,052			2.92				2,945			335,326			3.01				2,516
Mortgages held for sale (4)			19,893			3.70				184			17,870			3.59				161
Loans held for sale (4)			112			4.44				1			282			3.23				2
Loans:
Commercial:
Commercial and industrial - U.S.			274,749			3.59				2,436			257,727			3.39				2,177
Commercial and industrial - Non U.S.			55,347			2.73				373			49,508			2.10				258
Real estate mortgage			132,449			3.56				1,164			122,739			3.41				1,040
Real estate construction			24,591			3.72				225			22,603			3.61				203
Lease financing			19,070			4.94				235			15,047			4.74				178
Total commercial			506,206			3.54				4,433			467,624			3.31				3,856
Consumer:
Real estate 1-4 family first mortgage			275,480			4.02				2,766			274,722			4.05				2,782
Real estate 1-4 family junior lien mortgage			45,285			4.60				515			52,236			4.39				571
Credit card			35,437			11.97				1,046			33,366			11.61				963
Automobile			61,510			5.46				828			60,114			5.67				848
Other revolving credit and installment			39,727			6.02				590			39,158			5.99				584
Total consumer			457,439			5.06				5,745			459,596			5.02				5,748
Total loans (4)			963,645			4.26				10,178			927,220			4.16				9,604
Other			6,865			2.96				50			5,808			2.06				30
Total earning assets		$	1,773,099			3.31	%		$	14,545			1,651,667			3.22	%		$	13,262
Funding sources
Deposits:
Interest-bearing checking		$	50,686			0.29	%		$	37			38,711			0.12	%		$	11
Market rate and other savings			684,175			0.09				157			651,551			0.07				107
Savings certificates			23,466			0.29				17			27,880			0.45				31
Other time deposits			54,915			1.31				178			58,206			0.74				107
Deposits in foreign offices			122,200			0.49				148			97,682			0.21				51
Total interest-bearing deposits			935,442			0.23				537			874,030			0.14				307
Short-term borrowings			98,549			0.47				115			107,857			0.25				67
Long-term debt			259,793			1.83				1,183			216,883			1.56				842
Other liabilities			16,806			2.22				92			16,492			2.14				89
Total interest-bearing liabilities			1,310,590			0.59				1,927			1,215,262			0.43				1,305
Portion of noninterest-bearing funding sources			462,509			—				—			436,405			—				—
Total funding sources		$	1,773,099			0.44				1,927			1,651,667			0.32				1,305
Net interest margin and net interest income on a taxable-equivalent basis (5)						2.87	%		$	12,618						2.90	%		$	11,957
Noninterest-earning assets
Cash and due from banks		$	18,706										17,995
Goodwill			26,673										26,069
Other			112,563										124,144
Total noninterest-earning assets		$	157,942										168,208
Noninterest-bearing funding sources
Deposits		$	363,749										345,400
Other liabilities			54,935										62,627
Total equity			201,767										196,586
Noninterest-bearing funding sources used to fund earning assets			(462,509	)									(436,405	)
Net noninterest-bearing funding sources		$	157,942										168,208
Total assets		$	1,931,041										1,819,875
(1) Our average prime rate was 3.80% and 3.50% for the quarters ended March 31, 2017 and 2016, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.07% and 0.62% for the same quarters, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(4) Nonaccrual loans and related income are included in their respective loan categories.
(5) Includes taxable-equivalent adjustments of $318 million and $290 million for the quarters ended March 31, 2017 and 2016, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended
		Mar 31, 2017							Dec 31, 2016							Sep 30, 2016							Jun 30, 2016							Mar 31, 2016
		Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/
($ in billions)		balance				rates			balance				rates			balance				rates			balance				rates			balance				rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	283.8			0.76	%		$	273.1			0.56	%		$	299.4			0.50	%		$	293.8			0.49	%		$	284.7			0.49	%
Trading assets		93.8				2.80			102.8				2.96			88.8				2.72			81.4				2.86			80.5				3.01
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		25.0				1.54			25.9				1.53			25.8				1.52			31.5				1.56			34.4				1.59
Securities of U.S. states and political subdivisions		52.2				4.03			53.9				4.06			55.2				4.28			52.2				4.24			50.5				4.24
Mortgage-backed securities:
Federal agencies		156.6				2.58			148.0				2.37			105.8				2.39			92.0				2.53			96.5				2.80
Residential and commercial		14.5				5.32			16.5				5.87			18.1				5.54			19.6				5.44			20.8				5.20
Total mortgage-backed securities		171.1				2.81			164.5				2.72			123.9				2.85			111.6				3.04			117.3				3.23
Other debt and equity securities		50.7				3.60			52.7				3.71			54.2				3.37			53.3				3.48			53.6				3.21
Total available-for-sale securities		299.0				3.05			297.0				3.03			259.1				3.13			248.6				3.20			255.8				3.20
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies		44.7				2.20			44.7				2.20			44.6				2.19			44.6				2.19			44.7				2.20
Securities of U.S. states and political subdivisions		6.3				5.30			4.7				5.31			2.5				5.24			2.2				5.41			2.1				5.41
Federal agency and other mortgage-backed securities		51.8				2.51			46.0				1.81			48.0				1.97			35.1				1.90			28.1				2.49
Other debt securities		3.3				2.34			3.6				2.26			3.9				1.98			4.1				1.92			4.6				1.92
Total held-to-maturity securities		106.1				2.54			99.0				2.17			99.0				2.15			86.0				2.14			79.5				2.37
Total investment securities		405.1				2.92			396.0				2.82			358.1				2.86			334.6				2.93			335.3				3.01
Mortgages held for sale		19.9				3.70			27.5				3.43			24.1				3.44			20.1				3.60			17.9				3.59
Loans held for sale		0.1				4.44			0.2				5.42			0.2				3.04			0.2				4.83			0.3				3.23
Loans:
Commercial:
Commercial and industrial - U.S.		274.8				3.59			272.8				3.46			271.2				3.48			270.9				3.45			257.7				3.39
Commercial and industrial - Non U.S.		55.3				2.73			54.4				2.58			51.3				2.40			51.2				2.35			49.5				2.10
Real estate mortgage		132.4				3.56			131.2				3.44			128.8				3.48			126.1				3.41			122.7				3.41
Real estate construction		24.6				3.72			23.9				3.61			23.2				3.50			23.1				3.49			22.6				3.61
Lease financing		19.1				4.94			18.9				5.78			18.9				4.70			19.0				5.12			15.1				4.74
Total commercial		506.2				3.54			501.2				3.45			493.4				3.42			490.3				3.39			467.6				3.31
Consumer:
Real estate 1-4 family first mortgage		275.5				4.02			277.7				4.01			278.5				3.97			275.9				4.01			274.7				4.05
Real estate 1-4 family junior lien mortgage		45.3				4.60			47.2				4.42			48.9				4.37			50.6				4.37			52.2				4.39
Credit card		35.4				11.97			35.4				11.73			34.6				11.60			33.4				11.52			33.4				11.61
Automobile		61.5				5.46			62.5				5.54			62.5				5.60			61.1				5.66			60.1				5.67
Other revolving credit and installment		39.7				6.02			40.1				5.91			39.6				5.92			39.5				5.91			39.2				5.99
Total consumer		457.4				5.06			462.9				5.01			464.1				4.97			460.5				4.98			459.6				5.02
Total loans		963.6				4.26			964.1				4.20			957.5				4.17			950.8				4.16			927.2				4.16
Other		6.8				2.96			6.7				3.27			6.4				2.30			6.0				2.30			5.8				2.06
Total earning assets		$	1,773.1			3.31	%		$	1,770.4			3.24	%		$	1,734.5			3.17	%		$	1,686.9			3.20	%		$	1,651.7			3.22	%
Funding sources
Deposits:
Interest-bearing checking		$	50.7			0.29	%		$	46.9			0.17	%		$	44.0			0.15	%		$	39.8			0.13	%		$	38.7			0.12	%
Market rate and other savings		684.2				0.09			676.4				0.07			667.2				0.07			659.0				0.07			651.5				0.07
Savings certificates		23.5				0.29			24.4				0.30			25.2				0.30			26.2				0.35			27.9				0.45
Other time deposits		54.9				1.31			49.2				1.16			54.9				0.93			61.2				0.85			58.2				0.74
Deposits in foreign offices		122.2				0.49			110.4				0.35			107.1				0.30			97.5				0.23			97.7				0.21
Total interest-bearing deposits		935.5				0.23			907.3				0.18			898.4				0.16			883.7				0.15			874.0				0.14
Short-term borrowings		98.5				0.47			124.7				0.33			116.2				0.29			111.8				0.28			107.9				0.25
Long-term debt		259.8				1.83			252.2				1.68			252.4				1.59			236.2				1.56			216.9				1.56
Other liabilities		16.8				2.22			17.1				2.15			16.8				2.11			16.3				2.06			16.5				2.14
Total interest-bearing liabilities		1,310.6				0.59			1,301.3				0.51			1,283.8				0.48			1,248.0				0.45			1,215.3				0.43
Portion of noninterest-bearing funding sources		462.5				—			469.1				—			450.7				—			438.9				—			436.4				—
Total funding sources		$	1,773.1			0.44			$	1,770.4			0.37			$	1,734.5			0.35			$	1,686.9			0.34			$	1,651.7			0.32
Net interest margin on a taxable-equivalent basis						2.87	%						2.87	%						2.82	%						2.86	%						2.90	%
Noninterest-earning assets
Cash and due from banks		$	18.7						19.0							18.7							18.8							18.0
Goodwill		26.7							26.7							27.0							27.0							26.1
Other		112.5							128.2							134.4							129.4							124.1
Total noninterest-earnings assets		$	157.9						173.9							180.1							175.2							168.2
Noninterest-bearing funding sources
Deposits		$	363.7						376.9							363.1							353.0							345.4
Other liabilities		54.9							64.9							63.8							60.1							62.6
Total equity		201.8							201.2							203.9							201.0							196.6
Noninterest-bearing funding sources used to fund earning assets		(462.5		)					(469.1		)					(450.7		)					(438.9		)					(436.4		)
Net noninterest-bearing funding sources		$	157.9						173.9							180.1							175.2							168.2
Total assets		$	1,931.0						1,944.3							1,914.6							1,862.1							1,819.9
(1) Our average prime rate was 3.80% for the quarter ended March 31, 2017, 3.54% for the quarter ended December 31, 2016, and 3.50% for the quarters ended September 30, June 30 and March 31, 2016. The average three-month London Interbank Offered Rate (LIBOR) was 1.07%, 0.92%, 0.79%, 0.64% and 0.62% for the same quarters, respectively.
(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
			Quarter ended March 31,								%
(in millions)			2017				2016				Change
Service charges on deposit accounts			$	1,313			1,309				—	%
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,324			2,239				4
Trust and investment management				829			815				2
Investment banking				417			331				26
Total trust and investment fees				3,570			3,385				5
Card fees				945			941				—
Other fees:
Charges and fees on loans				307			313				(2	)
Cash network fees				126			131				(4	)
Commercial real estate brokerage commissions				81			117				(31	)
Letters of credit fees				74			78				(5	)
Wire transfer and other remittance fees				107			92				16
All other fees				170			202				(16	)
Total other fees				865			933				(7	)
Mortgage banking:
Servicing income, net				456			850				(46	)
Net gains on mortgage loan origination/sales activities				772			748				3
Total mortgage banking				1,228			1,598				(23	)
Insurance				277			427				(35	)
Net gains from trading activities				439			200				120
Net gains on debt securities				36			244				(85	)
Net gains from equity investments				403			244				65
Lease income				481			373				29
Life insurance investment income				144			154				(6	)
All other				1			720				(100	)
Total			$	9,702			10,528				(8	)

NONINTEREST EXPENSE
			Quarter ended Mar 31,								%
(in millions)			2017				2016				Change
Salaries			$	4,261			4,036				6	%
Commission and incentive compensation				2,725			2,645				3
Employee benefits				1,686			1,526				10
Equipment				577			528				9
Net occupancy				712			711				—
Core deposit and other intangibles				289			293				(1	)
FDIC and other deposit assessments				333			250				33
Outside professional services				804			583				38
Operating losses				282			454				(38	)
Operating leases				345			235				47
Contract services				325			282				15
Outside data processing				220			208				6
Travel and entertainment				179			172				4
Postage, stationery and supplies				145			163				(11	)
Advertising and promotion				127			134				(5	)
Telecommunications				91			92				(1	)
Foreclosed assets				86			78				10
Insurance				24			111				(78	)
All other				581			527				10
Total			$	13,792			13,028				6

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
			Quarter ended
			Mar 31,				Dec 31,				Sep 30,			Jun 30,			Mar 31,
(in millions)			2017				2016				2016			2016			2016
Service charges on deposit accounts			$	1,313			1,357				1,370			1,336			1,309
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,324			2,342				2,344			2,291			2,239
Trust and investment management				829			837				849			835			815
Investment banking				417			519				420			421			331
Total trust and investment fees				3,570			3,698				3,613			3,547			3,385
Card fees				945			1,001				997			997			941
Other fees:
Charges and fees on loans				307			305				306			317			313
Cash network fees				126			130				138			138			131
Commercial real estate brokerage commissions				81			172				119			86			117
Letters of credit fees				74			79				81			83			78
Wire transfer and other remittance fees				107			105				103			101			92
All other fees				170			171				179			181			202
Total other fees				865			962				926			906			933
Mortgage banking:
Servicing income, net				456			196				359			360			850
Net gains on mortgage loan origination/sales activities				772			1,221				1,308			1,054			748
Total mortgage banking				1,228			1,417				1,667			1,414			1,598
Insurance				277			262				293			286			427
Net gains (losses) from trading activities				439			(109	)			415			328			200
Net gains on debt securities				36			145				106			447			244
Net gains from equity investments				403			306				140			189			244
Lease income				481			523				534			497			373
Life insurance investment income				144			132				152			149			154
All other				1			(514	)			163			333			720
Total			$	9,702			9,180				10,376			10,429			10,528

FIVE QUARTER NONINTEREST EXPENSE
			Quarter ended
			Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)			2017				2016			2016			2016			2016
Salaries			$	4,261			4,193			4,224			4,099			4,036
Commission and incentive compensation				2,725			2,478			2,520			2,604			2,645
Employee benefits				1,686			1,101			1,223			1,244			1,526
Equipment				577			642			491			493			528
Net occupancy				712			710			718			716			711
Core deposit and other intangibles				289			301			299			299			293
FDIC and other deposit assessments				333			353			310			255			250
Outside professional services				804			984			802			769			583
Operating losses				282			243			577			334			454
Operating leases				345			379			363			352			235
Contract services				325			325			313			283			282
Outside data processing				220			222			233			225			208
Travel and entertainment				179			195			144			193			172
Postage, stationery and supplies				145			156			150			153			163
Advertising and promotion				127			178			117			166			134
Telecommunications				91			96			101			94			92
Foreclosed assets				86			75			(17	)		66			78
Insurance				24			23			23			22			111
All other				581			561			677			499			527
Total			$	13,792			13,215			13,268			12,866			13,028

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
			Mar 31,					Dec 31,				%
(in millions, except shares)			2017					2016				Change
Assets
Cash and due from banks			$	19,698				20,729				(5	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments				308,747				266,038				16
Trading assets				80,326				74,397				8
Investment securities:
Available-for-sale, at fair value				299,530				308,364				(3	)
Held-to-maturity, at cost				108,030				99,583				8
Mortgages held for sale				17,822				26,309				(32	)
Loans held for sale				253				80				216
Loans				958,405				967,604				(1	)
Allowance for loan losses				(11,168	)			(11,419	)			(2	)
Net loans				947,237				956,185				(1	)
Mortgage servicing rights:
Measured at fair value				13,208				12,959				2
Amortized				1,402				1,406				—
Premises and equipment, net				8,320				8,333				—
Goodwill				26,666				26,693				—
Derivative assets				12,564				14,498				(13	)
Other assets				107,761				114,541				(6	)
Total assets			$	1,951,564				1,930,115				1
Liabilities
Noninterest-bearing deposits			$	365,780				375,967				(3	)
Interest-bearing deposits				959,664				930,112				3
Total deposits				1,325,444				1,306,079				1
Short-term borrowings				94,871				96,781				(2	)
Derivative liabilities				12,461				14,492				(14	)
Accrued expenses and other liabilities				59,831				57,189				5
Long-term debt				256,468				255,077				1
Total liabilities				1,749,075				1,729,618				1
Equity
Wells Fargo stockholders’ equity:
Preferred stock				25,501				24,551				4
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				60,585				60,234				1
Retained earnings				136,032				133,075				2
Cumulative other comprehensive income (loss)				(3,178	)			(3,137	)			1
Treasury stock – 485,076,875 shares and 465,702,148 shares				(24,030	)			(22,713	)			6
Unearned ESOP shares				(2,546	)			(1,565	)			63
Total Wells Fargo stockholders’ equity				201,500				199,581				1
Noncontrolling interests				989				916				8
Total equity				202,489				200,497				1
Total liabilities and equity			$	1,951,564				1,930,115				1

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
			Mar 31,					Dec 31,				Sep 30,				Jun 30,				Mar 31,
(in millions)			2017					2016				2016				2016				2016
Assets
Cash and due from banks			$	19,698				20,729				19,287				20,407				19,084
Federal funds sold, securities purchased under resale agreements and other short-term investments				308,747				266,038				298,325				295,521				300,547
Trading assets				80,326				74,397				81,094				71,556				62,657
Investment securities:
Available-for-sale, at fair value				299,530				308,364				291,591				253,006				255,551
Held-to-maturity, at cost				108,030				99,583				99,241				100,420				79,348
Mortgages held for sale				17,822				26,309				27,423				23,930				18,041
Loans held for sale				253				80				183				220				280
Loans				958,405				967,604				961,326				957,157				947,258
Allowance for loan losses				(11,168	)			(11,419	)			(11,583	)			(11,664	)			(11,621	)
Net loans				947,237				956,185				949,743				945,493				935,637
Mortgage servicing rights:
Measured at fair value				13,208				12,959				10,415				10,396				11,333
Amortized				1,402				1,406				1,373				1,353				1,359
Premises and equipment, net				8,320				8,333				8,322				8,289				8,349
Goodwill				26,666				26,693				26,688				26,963				27,003
Derivative assets				12,564				14,498				18,736				20,999				20,043
Other assets				107,761				114,541				109,703				110,682				109,950
Total assets			$	1,951,564				1,930,115				1,942,124				1,889,235				1,849,182
Liabilities
Noninterest-bearing deposits			$	365,780				375,967				376,136				361,934				348,888
Interest-bearing deposits				959,664				930,112				899,758				883,539				892,602
Total deposits				1,325,444				1,306,079				1,275,894				1,245,473				1,241,490
Short-term borrowings				94,871				96,781				124,668				120,258				107,703
Derivative liabilities				12,461				14,492				13,603				15,483				15,184
Accrued expenses and other liabilities				59,831				57,189				69,166				61,433				58,413
Long-term debt				256,468				255,077				254,835				243,927				227,888
Total liabilities				1,749,075				1,729,618				1,738,166				1,686,574				1,650,678
Equity
Wells Fargo stockholders’ equity:
Preferred stock				25,501				24,551				24,594				24,830				24,051
Common stock				9,136				9,136				9,136				9,136				9,136
Additional paid-in capital				60,585				60,234				60,685				60,691				60,602
Retained earnings				136,032				133,075				130,288				127,076				123,891
Cumulative other comprehensive income (loss)				(3,178	)			(3,137	)			2,184				2,948				1,774
Treasury stock				(24,030	)			(22,713	)			(22,247	)			(21,068	)			(19,687	)
Unearned ESOP shares				(2,546	)			(1,565	)			(1,612	)			(1,868	)			(2,271	)
Total Wells Fargo stockholders’ equity				201,500				199,581				203,028				201,745				197,496
Noncontrolling interests				989				916				930				916				1,008
Total equity				202,489				200,497				203,958				202,661				198,504
Total liabilities and equity			$	1,951,564				1,930,115				1,942,124				1,889,235				1,849,182

Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
		Mar 31,			Dec 31,		Sep 30,		Jun 30,		Mar 31,
(in millions)		2017			2016		2016		2016		2016
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		$	24,625		25,819		26,376		27,939		33,813
Securities of U.S. states and political subdivisions			52,061		51,101		55,366		54,024		51,574
Mortgage-backed securities:
Federal agencies			156,966		161,230		135,692		95,868		95,463
Residential and commercial			14,233		16,318		18,387		19,938		21,246
Total mortgage-backed securities			171,199		177,548		154,079		115,806		116,709
Other debt securities			50,520		52,685		54,537		53,935		51,956
Total available-for-sale debt securities			298,405		307,153		290,358		251,704		254,052
Marketable equity securities			1,125		1,211		1,233		1,302		1,499
Total available-for-sale securities			299,530		308,364		291,591		253,006		255,551
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,697		44,690		44,682		44,675		44,667
Securities of U.S. states and political subdivisions			6,331		6,336		2,994		2,181		2,183
Federal agency and other mortgage-backed securities (1)			53,778		45,161		47,721		49,594		28,016
Other debt securities			3,224		3,396		3,844		3,970		4,482
Total held-to-maturity debt securities			108,030		99,583		99,241		100,420		79,348
Total investment securities		$	407,560		407,947		390,832		353,426		334,899
(1) Predominantly consists of federal agency mortgage-backed securities.
FIVE QUARTER LOANS
		Mar 31,			Dec 31,		Sep 30,		Jun 30,		Mar 31,
(in millions)		2017			2016		2016		2016		2016
Commercial:
Commercial and industrial		$	329,252		330,840		324,020		323,858		321,547
Real estate mortgage			131,532		132,491		130,223		128,320		124,711
Real estate construction			25,064		23,916		23,340		23,387		22,944
Lease financing			19,156		19,289		18,871		18,973		19,003
Total commercial			505,004		506,536		496,454		494,538		488,205
Consumer:
Real estate 1-4 family first mortgage			274,633		275,579		278,689		277,162		274,734
Real estate 1-4 family junior lien mortgage			44,333		46,237		48,105		49,772		51,324
Credit card			34,742		36,700		34,992		34,137		33,139
Automobile			60,408		62,286		62,873		61,939		60,658
Other revolving credit and installment			39,285		40,266		40,213		39,609		39,198
Total consumer			453,401		461,068		464,872		462,619		459,053
Total loans (1)		$	958,405		967,604		961,326		957,157		947,258
(1) Includes $15.7 billion, $16.7 billion, $17.7 billion, $19.3 billion, and $20.3 billion of purchased credit-impaired (PCI) loans at March 31, 2017, and December 31, September 30, June 30, and March 31, 2016, respectively.
Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.
		Mar 31,			Dec 31,		Sep 30,		Jun 30,		Mar 31,
(in millions)		2017			2016		2016		2016		2016
Commercial foreign loans:
Commercial and industrial		$	56,987		55,396		51,515		50,515		51,884
Real estate mortgage			8,206		8,541		8,466		8,467		8,367
Real estate construction			471		375		310		246		311
Lease financing			986		972		958		987		983
Total commercial foreign loans		$	66,650		65,284		61,249		60,215		61,545

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)		2017				2016			2016			2016			2016
Nonaccrual loans:
Commercial:
Commercial and industrial		$	2,898			3,216			3,331			3,464			2,911
Real estate mortgage		672				685			780			872			896
Real estate construction		40				43			59			59			63
Lease financing		96				115			92			112			99
Total commercial		3,706				4,059			4,262			4,507			3,969
Consumer:
Real estate 1-4 family first mortgage		4,743				4,962			5,310			5,970			6,683
Real estate 1-4 family junior lien mortgage		1,153				1,206			1,259			1,330			1,421
Automobile		101				106			108			111			114
Other revolving credit and installment		56				51			47			45			47
Total consumer		6,053				6,325			6,724			7,456			8,265
Total nonaccrual loans (1)(2)(3)		$	9,759			10,384			10,986			11,963			12,234
As a percentage of total loans		1.02		%		1.07			1.14			1.25			1.29
Foreclosed assets:
Government insured/guaranteed		$	179			197			282			321			386
Non-government insured/guaranteed		726				781			738			796			893
Total foreclosed assets		905				978			1,020			1,117			1,279
Total nonperforming assets		$	10,664			11,362			12,006			13,080			13,513
As a percentage of total loans		1.11		%		1.17			1.25			1.37			1.43
(1) Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans largely guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.

Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)		2017				2016			2016			2016			2016
Total (excluding PCI)(1):		$	10,525			11,858			12,068			12,385			13,060
Less: FHA insured/guaranteed by the VA (2)(3)			9,585			10,883			11,198			11,577			12,233
Less: Student loans guaranteed under the FFELP (4)			—			3			17			20			24
Total, not government insured/guaranteed		$	940			972			853			788			803
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial		$	88			28			47			36			24
Real estate mortgage			11			36			4			22			8
Real estate construction			3			—			—			—			2
Total commercial			102			64			51			58			34
Consumer:
Real estate 1-4 family first mortgage (3)			149			175			171			169			167
Real estate 1-4 family junior lien mortgage (3)			42			56			54			52			55
Credit card			453			452			392			348			389
Automobile			79			112			81			64			55
Other revolving credit and installment			115			113			104			97			103
Total consumer			838			908			802			730			769
Total, not government insured/guaranteed		$	940			972			853			788			803
(1) PCI loans totaled $1.8 billion, $2.0 billion, $2.2 billion, $2.4 billion and $2.7 billion, at March 31, 2017, and December 31, September 30, June 30, and March 31, 2016, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and still accruing.
(4) Represents loans whose repayments are largely guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominantly represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.
The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:
			•			Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
			•			Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
			•			Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.
The change in the accretable yield related to PCI loans since the merger with Wachovia is presented in the following table.

		Quarter
		ended
		March 31,
(in millions)		2017				2009-2016
Balance, beginning of period		$	11,216			10,447
Change in accretable yield due to acquisitions			2			159
Accretion into interest income (1)			(357	)		(15,577	)
Accretion into noninterest income due to sales (2)			(25	)		(467	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)			406			10,955
Changes in expected cash flows that do not affect nonaccretable difference (4)			(927	)		5,699
Balance, end of period		$	10,315			11,216
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) At March 31, 2017, our carrying value for PCI loans totaled $15.7 billion and the remainder of nonaccretable difference established in purchase accounting totaled $585 million. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.
(4) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
		March 31, 2017
		PCI loans														All other loans
													Ratio of							Ratio of
		Adjusted											carrying							carrying
		unpaid				Current							value to							value to
		principal				LTV			Carrying				current			Carrying				current
(in millions)		balance (2)				ratio (3)			value (4)				value (5)			value (4)				value (5)
California		$	13,659			64	%		$	10,525			49	%		$	7,477			46	%
Florida		1,597				71			1,210				53			1,582				57
New Jersey		632				78			473				57			1,048				64
New York		471				70			385				53			523				61
Texas		168				49			127				37			626				38
Other states		3,195				71			2,445				54			4,370				58
Total Pick-a-Pay loans		$	19,722			66			$	15,165			50			$	15,626			52
(1) The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2017.
(2) Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(3) The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.
(4) Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.
(5) The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
		Quarter ended
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)		2017				2016			2016			2016			2016
Balance, beginning of quarter		$	12,540			12,694			12,749			12,668			12,512
Provision for credit losses			605			805			805			1,074			1,086
Interest income on certain impaired loans (1)			(48	)		(52	)		(54	)		(51	)		(48	)
Loan charge-offs:
Commercial:
Commercial and industrial			(253	)		(309	)		(324	)		(437	)		(349	)
Real estate mortgage			(5	)		(14	)		(7	)		(3	)		(3	)
Real estate construction			—			—			—			(1	)		—
Lease financing			(7	)		(16	)		(4	)		(17	)		(4	)
Total commercial			(265	)		(339	)		(335	)		(458	)		(356	)
Consumer:
Real estate 1-4 family first mortgage			(69	)		(86	)		(106	)		(123	)		(137	)
Real estate 1-4 family junior lien mortgage			(93	)		(110	)		(119	)		(133	)		(133	)
Credit card			(367	)		(329	)		(296	)		(320	)		(314	)
Automobile			(255	)		(243	)		(215	)		(176	)		(211	)
Other revolving credit and installment			(189	)		(200	)		(170	)		(163	)		(175	)
Total consumer			(973	)		(968	)		(906	)		(915	)		(970	)
Total loan charge-offs			(1,238	)		(1,307	)		(1,241	)		(1,373	)		(1,326	)
Loan recoveries:
Commercial:
Commercial and industrial			82			53			65			69			76
Real estate mortgage			30			26			35			23			32
Real estate construction			8			8			18			4			8
Lease financing			2			1			2			5			3
Total commercial			122			88			120			101			119
Consumer:
Real estate 1-4 family first mortgage			62			89			86			109			89
Real estate 1-4 family junior lien mortgage			70			66			70			71			59
Credit card			58			54			51			50			52
Automobile			88			77			78			86			84
Other revolving credit and installment			33			28			31			32			37
Total consumer			311			314			316			348			321
Total loan recoveries			433			402			436			449			440
Net loan charge-offs			(805	)		(905	)		(805	)		(924	)		(886	)
Other			(5	)		(2	)		(1	)		(18	)		4
Balance, end of quarter		$	12,287			12,540			12,694			12,749			12,668
Components:
Allowance for loan losses		$	11,168			11,419			11,583			11,664			11,621
Allowance for unfunded credit commitments			1,119			1,121			1,111			1,085			1,047
Allowance for credit losses		$	12,287			12,540			12,694			12,749			12,668
Net loan charge-offs (annualized) as a percentage of average total loans			0.34	%		0.37			0.33			0.39			0.38
Allowance for loan losses as a percentage of:
Total loans			1.17			1.18			1.20			1.22			1.23
Nonaccrual loans			114			110			105			98			95
Nonaccrual loans and other nonperforming assets			105			101			96			89			86
Allowance for credit losses as a percentage of:
Total loans			1.28			1.30			1.32			1.33			1.34
Nonaccrual loans			126			121			116			107			104
Nonaccrual loans and other nonperforming assets			115			110			106			97			94
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions, except ratios)				2017				2016			2016			2016			2016
Tangible book value per common share (1):
Total equity				$202,489				200,497			203,958			202,661			198,504
Adjustments:
Preferred stock				(25,501		)		(24,551	)		(24,594	)		(24,830	)		(24,051	)
Additional paid-in capital on ESOP preferred stock				(157		)		(126	)		(130	)		(150	)		(182	)
Unearned ESOP shares				2,546				1,565			1,612			1,868			2,271
Noncontrolling interests				(989		)		(916	)		(930	)		(916	)		(1,008	)
Total common stockholders' equity		(A)		178,388				176,469			179,916			178,633			175,534
Adjustments:
Goodwill				(26,666		)		(26,693	)		(26,688	)		(26,963	)		(27,003	)
Certain identifiable intangible assets (other than MSRs)				(2,449		)		(2,723	)		(3,001	)		(3,356	)		(3,814	)
Other assets (2)				(2,121		)		(2,088	)		(2,230	)		(2,110	)		(2,023	)
Applicable deferred taxes (3)				1,698				1,772			1,832			1,906			1,985
Tangible common equity		(B)		$148,850				146,737			149,829			148,110			144,679
Common shares outstanding		(C)		4,996.7				5,016.1			5,023.9			5,048.5			5,075.9
Book value per common share		(A)/(C)		$35.70				35.18			35.81			35.38			34.58
Tangible book value per common share		(B)/(C)		29.79				29.25			29.82			29.34			28.50
				Quarter ended
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions, except ratios)				2017				2016			2016			2016			2016
Return on average tangible common equity (1):
Net income applicable to common stock		(A)		$	5,056			4,872			5,243			5,173			5,085
Average total equity					201,767			201,247			203,883			201,003			196,586
Adjustments:
Preferred stock					(25,163	)		(24,579	)		(24,813	)		(24,091	)		(23,963	)
Additional paid-in capital on ESOP preferred stock					(146	)		(128	)		(148	)		(168	)		(201	)
Unearned ESOP shares					2,198			1,596			1,850			2,094			2,509
Noncontrolling interests					(957	)		(928	)		(927	)		(984	)		(904	)
Average common stockholders’ equity		(B)			177,699			177,208			179,845			177,854			174,027
Adjustments:
Goodwill					(26,673	)		(26,713	)		(26,979	)		(27,037	)		(26,069	)
Certain identifiable intangible assets (other than MSRs)					(2,588	)		(2,871	)		(3,145	)		(3,600	)		(3,407	)
Other assets (2)					(2,095)			(2,175	)		(2,131	)		(2,096	)		(2,065	)
Applicable deferred taxes (3)					1,722			1,785			1,855			1,934			2,014
Average tangible common equity		(C)		$	148,065			147,234			149,445			147,055			144,500
Return on average common stockholders' equity (ROE)		(A)/(B)			11.54	%		10.94			11.60			11.70			11.75
Return on average tangible common equity (ROTCE)		(A)/(C)			13.85			13.16			13.96			14.15			14.15
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents goodwill and other intangibles on nonmarketable equity investments, 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
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in billions, except ratio)				2017				2016			2016			2016			2016
Total equity				$	202.5			200.5			204.0			202.7			198.5
Adjustments:
Preferred stock					(25.5	)		(24.6	)		(24.6	)		(24.8	)		(24.1	)
Additional paid-in capital on ESOP preferred stock					(0.2	)		(0.1	)		(0.1	)		(0.2	)		(0.2	)
Unearned ESOP shares					2.5			1.6			1.6			1.9			2.3
Noncontrolling interests					(1.0	)		(0.9	)		(1.0	)		(1.0	)		(1.0	)
Total common stockholders' equity					178.3			176.5			179.9			178.6			175.5
Adjustments:
Goodwill					(26.7	)		(26.7	)		(26.7	)		(27.0	)		(27.0	)
Certain identifiable intangible assets (other than MSRs)					(2.4	)		(2.7	)		(3.0	)		(3.4	)		(3.8	)
Other assets (2)					(2.1	)		(2.1	)		(2.2	)		(2.0	)		(2.1	)
Applicable deferred taxes (3)					1.7			1.8			1.8			1.9			2.0
Investment in certain subsidiaries and other					(0.1	)		(0.4	)		(2.0	)		(2.5	)		(1.9	)
Common Equity Tier 1 (Fully Phased-In) under Basel III		(A)			148.7			146.4			147.8			145.6			142.7
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)		(B)		$	1,327.4			1,358.9			1,380.0			1,372.9			1,345.1
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)		(A)/(B)			11.2	%		10.8			10.7			10.6			10.6
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. These rules established a new comprehensive capital framework for U.S. banking organizations that implements the Basel III capital framework and certain provisions of the Dodd-Frank Act. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Fully phased-in regulatory capital amounts, ratios and RWAs are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position.
(2) Represents goodwill and other intangibles on nonmarketable equity investments, 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 March 31, 2017, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for December 31, September 30, June 30, and March 31, 2016, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s March 31, 2017, 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
		2017				2016			2017			2016			2017			2016			2017			2016			2017			2016
Quarter ended Mar 31,
Net interest income (3)		$	7,627			7,468			4,148			3,748			1,074			943			(549	)		(492	)		12,300			11,667
Provision (reversal of provision) for credit losses			646			720			(43	)		363			(4	)		(14	)		6			17			605			1,086
Noninterest income			4,466			5,146			2,890			3,210			3,119			2,911			(773	)		(739	)		9,702			10,528
Noninterest expense			7,221			6,836			4,225			3,968			3,206			3,042			(860	)		(818	)		13,792			13,028
Income (loss) before income tax expense (benefit)			4,226			5,058			2,856			2,627			991			826			(468	)		(430	)		7,605			8,081
Income tax expense (benefit)			1,127			1,697			746			719			362			314			(178	)		(163	)		2,057			2,567
Net income (loss) before noncontrolling interests			3,099			3,361			2,110			1,908			629			512			(290	)		(267	)		5,548			5,514
Less: Net income (loss) from noncontrolling interests			90			65			(5	)		(13	)		6			—			—			—			91			52
Net income (loss)		$	3,009			3,296			2,115			1,921			623			512			(290	)		(267	)		5,457			5,462
Average loans		$	482.7			484.3			466.3			429.8			70.7			64.1			(56.1	)		(51.0	)		963.6			927.2
Average assets			990.7			947.4			807.8			748.6			221.9			208.1			(89.4	)		(84.2	)		1,931.0			1,819.9
Average deposits			717.2			683.0			466.0			428.0			195.6			184.5			(79.6	)		(76.1	)		1,299.2			1,219.4
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.
(2) Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
(3) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
		Quarter ended
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(income/expense in millions, average balances in billions)		2017				2016			2016			2016			2016
COMMUNITY BANKING
Net interest income (2)		$	7,627			7,556			7,430			7,379			7,468
Provision for credit losses			646			631			651			689			720
Noninterest income			4,466			4,105			4,957			4,825			5,146
Noninterest expense			7,221			6,985			6,953			6,648			6,836
Income before income tax expense			4,226			4,045			4,783			4,867			5,058
Income tax expense			1,127			1,272			1,546			1,667			1,697
Net income before noncontrolling interests			3,099			2,773			3,237			3,200			3,361
Less: Net income from noncontrolling interests			90			40			10			21			65
Segment net income		$	3,009			2,733			3,227			3,179			3,296
Average loans		$	482.7			488.1			489.2			485.7			484.3
Average assets			990.7			1,000.7			993.6			967.6			947.4
Average deposits			717.2			709.8			708.0			703.7			683.0
WHOLESALE BANKING
Net interest income (2)		$	4,148			4,323			4,062			3,919			3,748
Provision (reversal of provision) for credit losses			(43	)		168			157			385			363
Noninterest income			2,890			2,830			3,085			3,365			3,210
Noninterest expense			4,225			4,002			4,120			4,036			3,968
Income before income tax expense			2,856			2,983			2,870			2,863			2,627
Income tax expense			746			795			827			795			719
Net income before noncontrolling interests			2,110			2,188			2,043			2,068			1,908
Less: Net loss from noncontrolling interests			(5	)		(6	)		(4	)		(5	)		(13	)
Segment net income		$	2,115			2,194			2,047			2,073			1,921
Average loans		$	466.3			461.5			454.3			451.4			429.8
Average assets			807.8			811.9			794.2			772.6			748.6
Average deposits			466.0			459.2			441.2			425.8			428.0
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)		$	1,074			1,061			977			932			943
Provision (reversal of provision) for credit losses			(4	)		3			4			2			(14	)
Noninterest income			3,119			3,013			3,122			2,987			2,911
Noninterest expense			3,206			3,042			2,999			2,976			3,042
Income before income tax expense			991			1,029			1,096			941			826
Income tax expense			362			380			415			358			314
Net income before noncontrolling interests			629			649			681			583			512
Less: Net income (loss) from noncontrolling interests			6			(4	)		4			(1	)		—
Segment net income		$	623			653			677			584			512
Average loans		$	70.7			70.0			68.4			66.7			64.1
Average assets			221.9			220.4			212.1			205.3			208.1
Average deposits			195.6			194.9			189.2			182.5			184.5
OTHER (3)
Net interest income (2)		$	(549	)		(538	)		(517	)		(497	)		(492	)
Provision (reversal of provision) for credit losses			6			3			(7	)		(2	)		17
Noninterest income			(773	)		(768	)		(788	)		(748	)		(739	)
Noninterest expense			(860	)		(814	)		(804	)		(794	)		(818	)
Loss before income tax benefit			(468	)		(495	)		(494	)		(449	)		(430	)
Income tax benefit			(178	)		(189	)		(187	)		(171	)		(163	)
Net loss before noncontrolling interests			(290	)		(306	)		(307	)		(278	)		(267	)
Less: Net income from noncontrolling interests			—			—			—			—			—
Other net loss		$	(290	)		(306	)		(307	)		(278	)		(267	)
Average loans		$	(56.1	)		(55.5	)		(54.4	)		(53.0	)		(51.0	)
Average assets			(89.4	)		(88.7	)		(85.3	)		(83.4	)		(84.2	)
Average deposits			(79.6	)		(79.7	)		(76.9	)		(75.3	)		(76.1	)
CONSOLIDATED COMPANY
Net interest income (2)		$	12,300			12,402			11,952			11,733			11,667
Provision for credit losses			605			805			805			1,074			1,086
Noninterest income			9,702			9,180			10,376			10,429			10,528
Noninterest expense			13,792			13,215			13,268			12,866			13,028
Income before income tax expense			7,605			7,562			8,255			8,222			8,081
Income tax expense			2,057			2,258			2,601			2,649			2,567
Net income before noncontrolling interests			5,548			5,304			5,654			5,573			5,514
Less: Net income from noncontrolling interests			91			30			10			15			52
Wells Fargo net income		$	5,457			5,274			5,644			5,558			5,462
Average loans		$	963.6			964.1			957.5			950.8			927.2
Average assets			1,931.0			1,944.3			1,914.6			1,862.1			1,819.9
Average deposits			1,299.2			1,284.2			1,261.5			1,236.7			1,219.4
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.
(2) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(3) Includes the elimination of certain items that are included in more than one business segment, substantially all 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
		Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)		2017				2016			2016			2016			2016
MSRs measured using the fair value method:
Fair value, beginning of quarter		$	12,959			10,415			10,396			11,333			12,415
Servicing from securitizations or asset transfers (1)			583			752			609			477			366
Sales and other (2)			(47	)		(47	)		4			(22	)		—
Net additions			536			705			613			455			366
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)			152			2,367			39			(779	)		(1,084	)
Servicing and foreclosure costs (4)			27			93			(10	)		(4	)		27
Prepayment estimates and other (5)			(5	)		(106	)		(37	)		(41	)		100
Net changes in valuation model inputs or assumptions			174			2,354			(8	)		(824	)		(957	)
Changes due to collection/realization of expected cash flows over time			(461	)		(515	)		(586	)		(568	)		(491	)
Total changes in fair value			(287	)		1,839			(594	)		(1,392	)		(1,448	)
Fair value, end of quarter		$	13,208			12,959			10,415			10,396			11,333
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios.
(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) 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
			Mar 31,					Dec 31,				Sep 30,				Jun 30,				Mar 31,
(in millions)			2017					2016				2016				2016				2016
Amortized MSRs:
Balance, beginning of quarter			$	1,406				1,373				1,353				1,359				1,308
Purchases				18				34				18				24				21
Servicing from securitizations or asset transfers				45				66				69				38				97
Amortization				(67	)			(67	)			(67	)			(68	)			(67	)
Balance, end of quarter			$	1,402				1,406				1,373				1,353				1,359
Fair value of amortized MSRs:
Beginning of quarter			$	1,956				1,627				1,620				1,725				1,680
End of quarter				2,051				1,956				1,627				1,620				1,725

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
				Quarter ended
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)				2017				2016			2016			2016			2016
Servicing income, net:
Servicing fees (1)				$	882			738			878			842			910
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(A)		174				2,354			(8	)		(824	)		(957	)
Changes due to collection/realization of expected cash flows over time				(461		)		(515	)		(586	)		(568	)		(491	)
Total changes in fair value of MSRs carried at fair value				(287		)		1,839			(594	)		(1,392	)		(1,448	)
Amortization				(67		)		(67	)		(67	)		(68	)		(67	)
Net derivative gains (losses) from economic hedges (3)		(B)		(72		)		(2,314	)		142			978			1,455
Total servicing income, net				$	456			196			359			360			850
Market-related valuation changes to MSRs, net of hedge results (2)(3)		(A)+(B)		$	102			40			134			154			498
(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.
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in billions)				2017				2016			2016			2016			2016
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others				$	1,204			1,205			1,226			1,250			1,280
Owned loans serviced				335				347			352			349			342
Subserviced for others				4				8			4			4			4
Total residential servicing				1,543				1,560			1,582			1,603			1,626
Commercial mortgage servicing:
Serviced for others				474				479			477			478			485
Owned loans serviced				132				132			130			128			125
Subserviced for others				7				8			8			8			8
Total commercial servicing				613				619			615			614			618
Total managed servicing portfolio				$	2,156			2,179			2,197			2,217			2,244
Total serviced for others				$	1,678			1,684			1,703			1,728			1,765
Ratio of MSRs to related loans serviced for others				0.87		%		0.85			0.69			0.68			0.72
Weighted-average note rate (mortgage loans serviced for others)				4.23				4.26			4.28			4.32			4.34
(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
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
				2017				2016			2016			2016			2016
Net gains on mortgage loan origination/sales activities (in millions):
Residential		(A)		$	569			939			953			744			532
Commercial				101				90			167			72			71
Residential pipeline and unsold/repurchased loan management (1)				102				192			188			238			145
Total				$	772			1,221			1,308			1,054			748
Application data (in billions):
Wells Fargo first mortgage quarterly applications				$	59			75			100			95			77
Refinances as a percentage of applications				36		%		48			55			46			52
Wells Fargo first mortgage unclosed pipeline, at quarter end				$	28			30			50			47			39
Residential real estate originations:
Purchases as a percentage of originations				61		%		50			58			60			55
Refinances as a percentage of originations				39				50			42			40			45
Total				100		%		100			100			100			100
Wells Fargo first mortgage loans (in billions):
Retail				$	21			35			37			34			24
Correspondent				22				36			32			28			19
Other (2)				1				1			1			1			1
Total quarter-to-date				$	44			72			70			63			44
Held-for-sale		(B)		$	34			56			53			46			31
Held-for-investment				10				16			17			17			13
Total quarter-to-date				$	44			72			70			63			44
Total year-to-date				$	44			249			177			107			44
Production margin on residential held-for-sale mortgage originations		(A)/(B)		1.68		%		1.68			1.81			1.66			1.68
(1) Primarily includes the results of GNMA loss mitigation activities, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.
CHANGES IN MORTGAGE REPURCHASE LIABILITY
				Quarter ended
				Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in millions)				2017				2016			2016			2016			2016
Balance, beginning of period				$	229			239			255			355			378
Provision for repurchase losses:
Loan sales				8				10			11			8			7
Change in estimate (1)				(8		)		(7	)		(24	)		(89	)		(19	)
Net additions (reductions)				—				3			(13	)		(81	)		(12	)
Losses				(7		)		(13	)		(3	)		(19	)		(11	)
Balance, end of period				$	222			229			239			255			355
(1)  Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.