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

Full Year 2018 Net Income of $22.4 Billion; Diluted EPS of $4.28

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

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

Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2018, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Selected Financial Information
	Quarter ended					Year ended Dec. 31,
	Dec 31, 2018			Sep 30, 2018	Dec 31, 2017	2018	2017
Earnings
Diluted earnings per common share	$	1.21		1.13	1.16	4.28	4.10
Wells Fargo net income (in billions)	6.06			6.01	6.15	22.39	22.18
Return on assets (ROA)	1.28		%	1.27	1.26	1.19	1.15
Return on equity (ROE)	12.89			12.04	12.47	11.53	11.35
Return on average tangible common equity (ROTCE) (a)	15.39			14.33	14.85	13.73	13.55
Asset Quality
Net charge-offs (annualized) as a % of average total loans	0.30		%	0.29	0.31	0.29	0.31
Allowance for credit losses as a % of total loans	1.12			1.16	1.25	1.12	1.25
Allowance for credit losses as a % of annualized net charge-offs	374			406	401	390	408
Other
Revenue (in billions)	$	21.0		21.9	22.1	86.4	88.4
Efficiency ratio (b)	63.6		%	62.7	76.2	65.0	66.2
Average loans (in billions)	$	946.3		939.5	951.8	945.2	956.1
Average deposits (in billions)	1,268.9			1,266.4	1,311.6	1,275.9	1,304.6
Net interest margin	2.94		%	2.94	2.84	2.91	2.87
(a) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on page 36.
(b) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

Wells Fargo & Company (NYSE:WFC) reported net income of $6.1 billion, or $1.21 per diluted common share, for fourth quarter 2018, compared with $6.2 billion, or $1.16 per share, for fourth quarter 2017, and $6.0 billion, or $1.13 per share, for third quarter 2018.

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

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

Net Interest Income

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

Noninterest Income

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

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

Noninterest Expense

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

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

Income Taxes

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

Loans

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

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

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

Debt and Equity Securities

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

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

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

Deposits

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

Capital

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

Credit Quality

Net Loan Charge-offs

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

Net Loan Charge-Offs
	Quarter ended
	December 31, 2018					September 30, 2018					December 31, 2017
($ in millions)	Net loan charge- offs			As a % of average loans (a)		Net loan charge- offs			As a % of average loans (a)		Net loan charge- offs			As a % of average loans (a)
Commercial:
Commercial and industrial	$	132		0.15	%	$	148		0.18	%	$	118		0.14	%
Real estate mortgage	(12		)	(0.04	)	(1		)	—		(10		)	(0.03	)
Real estate construction	(1		)	(0.01	)	(2		)	(0.04	)	(3		)	(0.05	)
Lease financing	13			0.26		7			0.14		10			0.20
Total commercial	132			0.10		152			0.12		115			0.09
Consumer:
Real estate 1-4 family first mortgage	(22		)	(0.03	)	(25		)	(0.04	)	(23		)	(0.03	)
Real estate 1-4 family junior lien mortgage	(10		)	(0.11	)	(9		)	(0.10	)	(7		)	(0.06	)
Credit card	338			3.54		299			3.22		336			3.66
Automobile	133			1.16		130			1.10		188			1.38
Other revolving credit and installment	150			1.64		133			1.44		142			1.46
Total consumer	589			0.53		528			0.47		636			0.56
Total	$	721		0.30	%	$	680		0.29	%	$	751		0.31	%
(a) Quarterly net charge-offs (recoveries) as a percentage of average loans are annualized. See explanation on page 33 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased $289 million, or 4 percent, from third quarter 2018 to $6.9 billion. Nonaccrual loans decreased $218 million from third quarter 2018 to $6.5 billion reflecting both lower consumer and commercial nonaccruals.

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

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $10.7 billion at December 31, 2018, down $249 million from September 30, 2018. Fourth quarter 2018 included a $200 million reserve release², which reflected continued improvement in the credit quality of the loan portfolio. The allowance coverage for total loans was 1.12 percent, compared with 1.16 percent in third quarter 2018. The allowance covered 3.7 times annualized fourth quarter net charge-offs, compared with 4.1 times in the prior quarter. The allowance coverage for nonaccrual loans was 165 percent at December 31, 2018, compared with 163 percent at September 30, 2018.

Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Segment net income for each of the three business segments was:

	Quarter ended
(in millions)	Dec 31, 2018		Sep 30, 2018	Dec 31, 2017
Community Banking	$	3,169	2,816	3,472
Wholesale Banking	2,671		2,851	2,373
Wealth and Investment Management	689		732	675

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards, and automobile, student, mortgage, home equity and small business lending, as well as referrals to Wholesale Banking and Wealth and Investment Management business partners. The Community Banking segment also includes the results of our Corporate Treasury activities net of allocations in support of the other operating segments and results of investments in our affiliated venture capital and private equity partnerships.

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

Fourth Quarter 2018 vs. Third Quarter 2018

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

Fourth Quarter 2018 vs. Fourth Quarter 2017

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

Business Metrics and Highlights

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

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $5 million. Products and businesses include Commercial Banking, Commercial Real Estate, Corporate and Investment Banking, Principal Investments, Treasury Management, and Commercial Capital.

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

Fourth Quarter 2018 vs. Third Quarter 2018

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

Fourth Quarter 2018 vs. Fourth Quarter 2017

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

Business Metrics and Highlights

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

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

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

Fourth Quarter 2018 vs. Third Quarter 2018

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

Fourth Quarter 2018 vs. Fourth Quarter 2017

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

Business Metrics and Highlights

Total WIM Segment

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

Retail Brokerage

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

Wealth Management

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

Asset Management

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

Retirement

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

Conference Call

The Company will host a live conference call on Tuesday, January 15, at 7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~7179357.

A replay of the conference call will be available beginning at 11:00 a.m. PT (2:00 p.m. ET) on Tuesday, January 15 through Tuesday, January 29. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #7179357. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~7179357.

End Notes

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

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

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

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

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

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

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

⁸ Combined consumer and business debit card purchase volume dollars.

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

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

¹¹ Includes commercial card volume for the entire company.

¹² Source: Dealogic U.S. investment banking fee market share.

Forward-Looking Statements

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

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

• current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
• the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
• negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
• our ability to realize any efficiency ratio or expense target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
• the effect of the current interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgage loans held for sale;
• significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our debt securities and equity securities portfolios;
• the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
• negative effects from the retail banking sales practices matter and from other instances where customers may have experienced financial harm, including on our legal, operational and compliance costs, our ability to engage in certain business activities or offer certain products or services, our ability to keep and attract customers, our ability to attract and retain qualified team members, and our reputation;
• resolution of regulatory matters, litigation, or other legal actions, which may result in, among other things, additional costs, fines, penalties, restrictions on our business activities, reputational harm, or other adverse consequences;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
• fiscal and monetary policies of the Federal Reserve Board; and
• the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017.

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

For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

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

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,800 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 37 countries and territories to support customers who conduct business in the global economy. With approximately 259,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2018 rankings of America’s largest corporations.

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

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
	Quarter ended					% Change Dec 31, 2018 from				Year ended
($ in millions, except per share amounts)	Dec 31, 2018			Sep 30, 2018	Dec 31, 2017	Sep 30, 2018		Dec 31, 2017		Dec 31, 2018			Dec 31, 2017	% Change
For the Period
Wells Fargo net income	$	6,064		6,007	6,151	1	%	(1	)	$	22,393		22,183	1	%
Wells Fargo net income applicable to common stock	5,711			5,453	5,740	5		(1	)	20,689			20,554	1
Diluted earnings per common share	1.21			1.13	1.16	7		4		4.28			4.10	4
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.28		%	1.27	1.26	1		2		1.19		%	1.15	3
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	12.89			12.04	12.47	7		3		11.53			11.35	2
Return on average tangible common equity (ROTCE)(1)	15.39			14.33	14.85	7		4		13.73			13.55	1
Efficiency ratio (2)	63.6			62.7	76.2	1		(17	)	65.0			66.2	(2	)
Total revenue	$	20,980		21,941	22,050	(4	)	(5	)	$	86,408		88,389	(2	)
Pre-tax pre-provision profit (PTPP) (3)	7,641			8,178	5,250	(7	)	46		30,282			29,905	1
Dividends declared per common share	0.43			0.43	0.39	—		10		1.64			1.54	6
Average common shares outstanding	4,665.8			4,784.0	4,912.5	(2	)	(5	)	4,799.7			4,964.6	(3	)
Diluted average common shares outstanding	4,700.8			4,823.2	4,963.1	(3	)	(5	)	4,838.4			5,017.3	(4	)
Average loans	$	946,336		939,462	951,822	1		(1	)	$	945,197		956,129	(1	)
Average assets	1,879,047			1,876,283	1,935,318	—		(3	)	1,888,892			1,933,005	(2	)
Average total deposits	1,268,948			1,266,378	1,311,592	—		(3	)	1,275,857			1,304,622	(2	)
Average consumer and small business banking deposits (4)	736,295			743,503	757,541	(1	)	(3	)	747,183			758,271	(1	)
Net interest margin	2.94		%	2.94	2.84	—		4		2.91		%	2.87	1
At Period End
Debt securities (5)	$	484,689		472,283	473,366	3		2		$	484,689		473,366	2
Loans	953,110			942,300	956,770	1		—		953,110			956,770	—
Allowance for loan losses	9,775			10,021	11,004	(2	)	(11	)	9,775			11,004	(11	)
Goodwill	26,418			26,425	26,587	—		(1	)	26,418			26,587	(1	)
Equity securities (5)	55,148			61,755	62,497	(11	)	(12	)	55,148			62,497	(12	)
Assets	1,895,883			1,872,981	1,951,757	1		(3	)	1,895,883			1,951,757	(3	)
Deposits	1,286,170			1,266,594	1,335,991	2		(4	)	1,286,170			1,335,991	(4	)
Common stockholders' equity	174,359			176,934	183,134	(1	)	(5	)	174,359			183,134	(5	)
Wells Fargo stockholders’ equity	196,166			198,741	206,936	(1	)	(5	)	196,166			206,936	(5	)
Total equity	197,066			199,679	208,079	(1	)	(5	)	197,066			208,079	(5	)
Tangible common equity (1)	145,980			148,391	153,730	(2	)	(5	)	145,980			153,730	(5	)
Common shares outstanding	4,581.3			4,711.6	4,891.6	(3	)	(6	)	4,581.3			4,891.6	(6	)
Book value per common share (6)	$	38.06		37.55	37.44	1		2		$	38.06		37.44	2
Tangible book value per common share (1)(6)	31.86			31.49	31.43	1		1		31.86			31.43	1
Team members (active, full-time equivalent)	258,700			261,700	262,700	(1	)	(2	)	258,700			262,700	(2	)
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 36.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Financial information for the prior periods of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of Accounting Standards Update (ASU) 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(6) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
	Quarter ended
($ in millions, except per share amounts)	Dec 31, 2018			Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
For the Quarter
Wells Fargo net income	$	6,064		6,007	5,186	5,136	6,151
Wells Fargo net income applicable to common stock	5,711			5,453	4,792	4,733	5,740
Diluted earnings per common share	1.21			1.13	0.98	0.96	1.16
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.28		%	1.27	1.10	1.09	1.26
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	12.89			12.04	10.60	10.58	12.47
Return on average tangible common equity (ROTCE)(1)	15.39			14.33	12.62	12.62	14.85
Efficiency ratio (2)	63.6			62.7	64.9	68.6	76.2
Total revenue	$	20,980		21,941	21,553	21,934	22,050
Pre-tax pre-provision profit (PTPP) (3)	7,641			8,178	7,571	6,892	5,250
Dividends declared per common share	0.43			0.43	0.39	0.39	0.39
Average common shares outstanding	4,665.8			4,784.0	4,865.8	4,885.7	4,912.5
Diluted average common shares outstanding	4,700.8			4,823.2	4,899.8	4,930.7	4,963.1
Average loans	$	946,336		939,462	944,079	951,024	951,822
Average assets	1,879,047			1,876,283	1,884,884	1,915,896	1,935,318
Average total deposits	1,268,948			1,266,378	1,271,339	1,297,178	1,311,592
Average consumer and small business banking deposits (4)	736,295			743,503	754,047	755,483	757,541
Net interest margin	2.94		%	2.94	2.93	2.84	2.84
At Quarter End
Debt securities (5)	$	484,689		472,283	475,495	472,968	473,366
Loans	953,110			942,300	944,265	947,308	956,770
Allowance for loan losses	9,775			10,021	10,193	10,373	11,004
Goodwill	26,418			26,425	26,429	26,445	26,587
Equity securities (5)	55,148			61,755	57,505	58,935	62,497
Assets	1,895,883			1,872,981	1,879,700	1,915,388	1,951,757
Deposits	1,286,170			1,266,594	1,268,864	1,303,689	1,335,991
Common stockholders' equity	174,359			176,934	181,386	181,150	183,134
Wells Fargo stockholders’ equity	196,166			198,741	205,188	204,952	206,936
Total equity	197,066			199,679	206,069	205,910	208,079
Tangible common equity (1)	145,980			148,391	152,580	151,878	153,730
Common shares outstanding	4,581.3			4,711.6	4,849.1	4,873.9	4,891.6
Book value per common share (6)	$	38.06		37.55	37.41	37.17	37.44
Tangible book value per common share (1)(6)	31.86			31.49	31.47	31.16	31.43
Team members (active, full-time equivalent)	258,700			261,700	264,500	265,700	262,700
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 36.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Financial information for the quarter ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(6) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
	Quarter ended December 31,				%		Year ended December 31,			%
(in millions, except per share amounts)	2018		2017		Change		2018		2017	Change
Interest income
Debt securities (1)	$	3,803	3,294		15	%	$	14,406	12,946	11	%
Mortgage loans held for sale	190		196		(3	)	777		786	(1	)
Loans held for sale (1)	33		12		175		140		50	180
Loans	11,367		10,367		10		43,974		41,388	6
Equity securities (1)	260		239		9		992		799	24
Other interest income (1)	1,268		850		49		4,358		2,940	48
Total interest income	16,921		14,958		13		64,647		58,909	10
Interest expense
Deposits	1,765		931		90		5,622		3,013	87
Short-term borrowings	546		255		114		1,717		758	127
Long-term debt	1,802		1,344		34		6,703		5,157	30
Other interest expense	164		115		43		610		424	44
Total interest expense	4,277		2,645		62		14,652		9,352	57
Net interest income	12,644		12,313		3		49,995		49,557	1
Provision for credit losses	521		651		(20	)	1,744		2,528	(31	)
Net interest income after provision for credit losses	12,123		11,662		4		48,251		47,029	3
Noninterest income
Service charges on deposit accounts	1,176		1,246		(6	)	4,716		5,111	(8	)
Trust and investment fees	3,520		3,687		(5	)	14,509		14,495	—
Card fees	981		996		(2	)	3,907		3,960	(1	)
Other fees	888		913		(3	)	3,384		3,557	(5	)
Mortgage banking	467		928		(50	)	3,017		4,350	(31	)
Insurance	109		223		(51	)	429		1,049	(59	)
Net gains (losses) from trading activities (1)	10		(1	)	NM		602		542	11
Net gains on debt securities	9		157		(94	)	108		479	(77	)
Net gains from equity securities (1)	21		572		(96	)	1,515		1,779	(15	)
Lease income	402		458		(12	)	1,753		1,907	(8	)
Other	753		558		35		2,473		1,603	54
Total noninterest income	8,336		9,737		(14	)	36,413		38,832	(6	)
Noninterest expense
Salaries	4,545		4,403		3		17,834		17,363	3
Commission and incentive compensation	2,427		2,665		(9	)	10,264		10,442	(2	)
Employee benefits	706		1,293		(45	)	4,926		5,566	(11	)
Equipment	643		608		6		2,444		2,237	9
Net occupancy	735		715		3		2,888		2,849	1
Core deposit and other intangibles	264		288		(8	)	1,058		1,152	(8	)
FDIC and other deposit assessments	153		312		(51	)	1,110		1,287	(14	)
Other	3,866		6,516		(41	)	15,602		17,588	(11	)
Total noninterest expense	13,339		16,800		(21	)	56,126		58,484	(4	)
Income before income tax expense	7,120		4,599		55		28,538		27,377	4
Income tax expense (benefit)	966		(1,642	)	NM		5,662		4,917	15
Net income before noncontrolling interests	6,154		6,241		(1	)	22,876		22,460	2
Less: Net income from noncontrolling interests	90		90		—		483		277	74
Wells Fargo net income	$	6,064	6,151		(1	)	$	22,393	22,183	1
Less: Preferred stock dividends and other	353		411		(14	)	1,704		1,629	5
Wells Fargo net income applicable to common stock	$	5,711	5,740		(1	)	$	20,689	20,554	1
Per share information
Earnings per common share	$	1.22	1.17		4		$	4.31	4.14	4
Diluted earnings per common share	1.21		1.16		4		4.28		4.10	4
Average common shares outstanding	4,665.8		4,912.5		(5	)	4,799.7		4,964.6	(3	)
Diluted average common shares outstanding	4,700.8		4,963.1		(5	)	4,838.4		5,017.3	(4	)
NM - Not meaningful
(1) Financial information for the prior periods of 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
	Quarter ended
(in millions, except per share amounts)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Interest income
Debt securities (1)	$	3,803	3,595	3,594	3,414	3,294
Mortgage loans held for sale	190		210	198	179	196
Loans held for sale (1)	33		35	48	24	12
Loans	11,367		11,116	10,912	10,579	10,367
Equity securities (1)	260		280	221	231	239
Other interest income (1)	1,268		1,128	1,042	920	850
Total interest income	16,921		16,364	16,015	15,347	14,958
Interest expense
Deposits	1,765		1,499	1,268	1,090	931
Short-term borrowings	546		462	398	311	255
Long-term debt	1,802		1,667	1,658	1,576	1,344
Other interest expense	164		164	150	132	115
Total interest expense	4,277		3,792	3,474	3,109	2,645
Net interest income	12,644		12,572	12,541	12,238	12,313
Provision for credit losses	521		580	452	191	651
Net interest income after provision for credit losses	12,123		11,992	12,089	12,047	11,662
Noninterest income
Service charges on deposit accounts	1,176		1,204	1,163	1,173	1,246
Trust and investment fees	3,520		3,631	3,675	3,683	3,687
Card fees	981		1,017	1,001	908	996
Other fees	888		850	846	800	913
Mortgage banking	467		846	770	934	928
Insurance	109		104	102	114	223
Net gains (losses) from trading activities (1)	10		158	191	243	(1	)
Net gains on debt securities	9		57	41	1	157
Net gains from equity securities (1)	21		416	295	783	572
Lease income	402		453	443	455	458
Other	753		633	485	602	558
Total noninterest income	8,336		9,369	9,012	9,696	9,737
Noninterest expense
Salaries	4,545		4,461	4,465	4,363	4,403
Commission and incentive compensation	2,427		2,427	2,642	2,768	2,665
Employee benefits	706		1,377	1,245	1,598	1,293
Equipment	643		634	550	617	608
Net occupancy	735		718	722	713	715
Core deposit and other intangibles	264		264	265	265	288
FDIC and other deposit assessments	153		336	297	324	312
Other	3,866		3,546	3,796	4,394	6,516
Total noninterest expense	13,339		13,763	13,982	15,042	16,800
Income before income tax expense	7,120		7,598	7,119	6,701	4,599
Income tax expense (benefit)	966		1,512	1,810	1,374	(1,642	)
Net income before noncontrolling interests	6,154		6,086	5,309	5,327	6,241
Less: Net income from noncontrolling interests	90		79	123	191	90
Wells Fargo net income	$	6,064	6,007	5,186	5,136	6,151
Less: Preferred stock dividends and other	353		554	394	403	411
Wells Fargo net income applicable to common stock	$	5,711	5,453	4,792	4,733	5,740
Per share information
Earnings per common share	$	1.22	1.14	0.98	0.97	1.17
Diluted earnings per common share	1.21		1.13	0.98	0.96	1.16
Average common shares outstanding	4,665.8		4,784.0	4,865.8	4,885.7	4,912.5
Diluted average common shares outstanding	4,700.8		4,823.2	4,899.8	4,930.7	4,963.1
(1) Financial information for the quarter ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Quarter ended December 31,					%	Year ended December 31,					%
(in millions)	2018			2017		Change	2018			2017		Change
Wells Fargo net income	$	6,064		6,151		(1)%	$	22,393		22,183		1%
Other comprehensive income (loss), before tax:
Debt securities (1):
Net unrealized gains (losses) arising during the period	1,035			(106	)	NM	(4,493		)	2,719		NM
Reclassification of net (gains) losses to net income	80			(215	)	NM	248			(737	)	NM
Derivatives and hedging activities:
Net unrealized losses arising during the period	(116		)	(558	)	(79)	(532		)	(540	)	(1)
Reclassification of net (gains) losses to net income	78			(83	)	NM	294			(543	)	NM
Defined benefit plans adjustments:
Net actuarial and prior service gains (losses) arising during the period	(440		)	45		NM	(434		)	49		NM
Amortization of net actuarial loss, settlements and other to net income	163			33		394	253			153		65
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period	(62		)	10		NM	(156		)	96		NM
Other comprehensive income (loss), before tax	738			(874	)	NM	(4,820		)	1,197		NM
Income tax benefit (expense) related to other comprehensive income	(202		)	319		NM	1,144			(434	)	NM
Other comprehensive income (loss), net of tax	536			(555	)	NM	(3,676		)	763		NM
Less: Other comprehensive loss from noncontrolling interests	(1		)	(33	)	(97)	(2		)	(62	)	(97)
Wells Fargo other comprehensive income (loss), net of tax	537			(522	)	NM	(3,674		)	825		NM
Wells Fargo comprehensive income	6,601			5,629		17	18,719			23,008		(19)
Comprehensive income from noncontrolling interests	89			57		56	481			215		124
Total comprehensive income	$	6,690		5,686		18	$	19,200		23,223		(17)
NM – Not meaningful
(1) The quarter and year ended December 31, 2017, includes net unrealized gains (losses) arising during the period from equity securities of ($31) million and $81 million and reclassification of net (gains) losses to net income related to equity securities of ($133) million and ($456) million, respectively. With the adoption in first quarter 2018 of ASU 2016-01, the quarter and year ended December 31, 2018, reflects net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
	Quarter ended
(in millions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
Balance, beginning of period	$	199,679		206,069		205,910		208,079		206,617
Cumulative effect from change in accounting policies (1)	—			—		—		(24	)	—
Wells Fargo net income	6,064			6,007		5,186		5,136		6,151
Wells Fargo other comprehensive income (loss), net of tax	537			(1,012	)	(540	)	(2,659	)	(522	)
Noncontrolling interests	(38		)	57		(77	)	(178	)	247
Common stock issued	239			156		73		1,208		436
Common stock repurchased (2)	(7,299		)	(7,382	)	(2,923	)	(3,029	)	(2,845	)
Preferred stock redeemed (3)	—			(2,150	)	—		—		—
Preferred stock released by ESOP	268			260		490		231		218
Common stock warrants repurchased/exercised	(131		)	(36	)	(1	)	(157	)	(46	)
Common stock dividends	(2,016		)	(2,062	)	(1,900	)	(1,911	)	(1,920	)
Preferred stock dividends	(353		)	(399	)	(394	)	(410	)	(411	)
Stock incentive compensation expense	144			202		258		437		206
Net change in deferred compensation and related plans	(28		)	(31	)	(13	)	(813	)	(52	)
Balance, end of period	$	197,066		199,679		206,069		205,910		208,079
(1) The cumulative effect for the quarter ended March 31, 2018, reflects the impact of the adoption in first quarter 2018 of ASU 2016-04, ASU 2016-01 and ASU 2014-09.
(2) For the quarter ended June 30, 2018, includes $1.0 billion related to a private forward repurchase transaction that settled in third quarter 2018 for 18.8 million shares of common stock.
(3) Represents the impact of the redemption of preferred stock, Series J, in third quarter 2018.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Quarter ended December 31,
	2018							2017
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Interest-earning deposits with banks (3)	$	150,091		2.18	%	$	825	189,114		1.27	%	$	605
Federal funds sold and securities purchased under resale agreements (3)	76,108			2.22		426		75,826		1.20		230
Debt securities (4):
Trading debt securities (5)	90,110			3.52		794		81,580		3.17		647
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	7,195			1.80		32		6,423		1.66		27
Securities of U.S. states and political subdivisions	47,618			4.05		483		52,390		3.91		513
Mortgage-backed securities:
Federal agencies	155,322			2.91		1,128		152,910		2.62		1,000
Residential and commercial	6,666			4.87		81		9,371		4.85		114
Total mortgage-backed securities	161,988			2.99		1,209		162,281		2.75		1,114
Other debt securities (5)	46,072			4.46		518		48,679		3.62		443
Total available-for-sale debt securities (5)	262,873			3.41		2,242		269,773		3.10		2,097
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	44,747			2.19		247		44,716		2.19		246
Securities of U.S. states and political subdivisions	6,247			4.34		67		6,263		5.26		83
Federal agency and other mortgage-backed securities	95,748			2.46		589		89,622		2.25		503
Other debt securities	68			3.65		1		1,194		2.64		8
Total held-to-maturity debt securities	146,810			2.46		904		141,795		2.36		840
Total debt securities (5)	499,793			3.15		3,940		493,148		2.90		3,584
Mortgage loans held for sale (6)	17,044			4.46		190		20,517		3.82		196
Loans held for sale (5)(6)	1,992			6.69		33		1,490		3.19		12
Commercial loans:
Commercial and industrial - U.S.	281,431			4.40		3,115		270,294		3.89		2,649
Commercial and industrial - Non U.S.	62,035			3.73		584		59,233		2.96		442
Real estate mortgage	120,404			4.51		1,369		127,199		3.88		1,244
Real estate construction	23,090			5.32		310		24,408		4.38		270
Lease financing	19,519			4.48		219		19,226		0.62		31
Total commercial loans	506,479			4.39		5,597		500,360		3.68		4,636
Consumer loans:
Real estate 1-4 family first mortgage	285,260			4.02		2,868		281,966		4.01		2,826
Real estate 1-4 family junior lien mortgage	34,844			5.60		491		40,379		4.96		505
Credit card	37,858			12.69		1,211		36,428		12.37		1,136
Automobile	45,536			5.16		592		54,323		5.13		702
Other revolving credit and installment	36,359			6.95		637		38,366		6.28		607
Total consumer loans	439,857			5.25		5,799		451,462		5.10		5,776
Total loans (6)	946,336			4.79		11,396		951,822		4.35		10,412
Equity securities (5)	37,412			2.79		261		38,001		2.60		246
Other (5)	4,074			1.78		18		7,103		0.88		16
Total earning assets (5)	$	1,732,850		3.93	%	$	17,089	1,777,021		3.43	%	$	15,301
Funding sources
Deposits:
Interest-bearing checking	$	53,983		1.21	%	$	165	50,483		0.68	%	$	86
Market rate and other savings	689,639			0.43		741		679,893		0.19		319
Savings certificates	21,955			0.87		48		20,920		0.31		17
Other time deposits	92,676			2.46		575		68,187		1.49		255
Deposits in foreign offices	56,098			1.66		236		124,597		0.81		254
Total interest-bearing deposits	914,351			0.77		1,765		944,080		0.39		931
Short-term borrowings	105,962			2.04		546		102,142		0.99		256
Long-term debt	226,591			3.17		1,802		231,598		2.32		1,344
Other liabilities	27,365			2.41		164		24,728		1.86		115
Total interest-bearing liabilities	1,274,269			1.34		4,277		1,302,548		0.81		2,646
Portion of noninterest-bearing funding sources (5)	458,581			—		—		474,473		—		—
Total funding sources (5)	$	1,732,850		0.99		4,277		1,777,021		0.59		2,646
Net interest margin and net interest income on a taxable-equivalent basis (7)				2.94	%	$	12,812			2.84	%	$	12,655
Noninterest-earning assets
Cash and due from banks	$	19,288						19,152
Goodwill	26,423							26,579
Other (5)	100,486							112,566
Total noninterest-earning assets (5)	$	146,197						158,297
Noninterest-bearing funding sources
Deposits	$	354,597						367,512
Other liabilities	51,739							57,845
Total equity	198,442							207,413
Noninterest-bearing funding sources used to fund earning assets (5)	(458,581		)					(474,473	)
Net noninterest-bearing funding sources (5)	$	146,197						158,297
Total assets	$	1,879,047						1,935,318
(1) Our average prime rate was 5.28% and 4.30% for the quarters ended December 31, 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.62% and 1.46% for the same quarters, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(5) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(6) Nonaccrual loans and related income are included in their respective loan categories.
(7) Includes taxable-equivalent adjustments of $168 million and $342 million for the quarters ended December 31, 2018 and 2017, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 21% and 35% for the quarters ended December 31, 2018 and 2017, respectively.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Year ended December 31,
	2018							2017
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Interest-earning deposits with banks (3)	$	156,366		1.82	%	$	2,854	201,864		1.07	%	$	2,162
Federal funds sold and securities purchased under resale agreements (3)	78,547			1.82		1,431		74,697		0.98		735
Debt securities (4):
Trading debt securities (5)	83,526			3.42		2,856		74,475		3.16		2,356
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	6,618			1.70		112		15,966		1.49		239
Securities of U.S. states and political subdivisions	47,884			3.77		1,806		52,658		3.95		2,082
Mortgage-backed securities:
Federal agencies	156,052			2.79		4,348		145,310		2.60		3,782
Residential and commercial	7,769			4.62		358		11,839		5.33		631
Total mortgage-backed securities	163,821			2.87		4,706		157,149		2.81		4,413
Other debt securities (5)	46,875			4.22		1,980		48,714		3.68		1,794
Total available-for-sale debt securities (5)	265,198			3.24		8,604		274,487		3.11		8,528
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	44,735			2.19		980		44,705		2.19		979
Securities of U.S. states and political subdivisions	6,253			4.34		271		6,268		5.32		334
Federal agency and other mortgage-backed securities	94,216			2.36		2,221		78,330		2.34		1,832
Other debt securities	361			4.00		15		2,194		2.50		55
Total held-to-maturity debt securities	145,565			2.40		3,487		131,497		2.43		3,200
Total debt securities (5)	494,289			3.02		14,947		480,459		2.93		14,084
Mortgage loans held for sale (6)	18,394			4.22		777		20,780		3.78		786
Loans held for sale (5)(6)	2,526			5.56		140		1,487		3.40		50
Commercial loans:
Commercial and industrial - U.S.	275,656			4.16		11,465		272,034		3.75		10,196
Commercial and industrial - Non U.S.	60,718			3.53		2,143		57,198		2.86		1,639
Real estate mortgage	122,947			4.29		5,279		129,990		3.74		4,859
Real estate construction	23,609			4.94		1,167		24,813		4.10		1,017
Lease financing	19,392			4.74		919		19,128		3.74		715
Total commercial loans	502,322			4.18		20,973		503,163		3.66		18,426
Consumer loans:
Real estate 1-4 family first mortgage	284,178			4.04		11,481		277,751		4.03		11,206
Real estate 1-4 family junior lien mortgage	36,687			5.38		1,975		42,780		4.82		2,062
Credit card	36,780			12.72		4,678		35,600		12.23		4,355
Automobile	48,115			5.18		2,491		57,900		5.34		3,094
Other revolving credit and installment	37,115			6.70		2,488		38,935		6.18		2,408
Total consumer loans	442,875			5.22		23,113		452,966		5.11		23,125
Total loans (6)	945,197			4.66		44,086		956,129		4.35		41,551
Equity securities (5)	38,092			2.62		999		36,105		2.27		821
Other (5)	5,071			1.46		74		5,069		0.85		44
Total earning assets (5)	$	1,738,482		3.76	%	$	65,308	1,776,590		3.40	%	$	60,233
Funding sources
Deposits:
Interest-bearing checking	$	63,243		0.96	%	$	606	49,474		0.49	%	$	242
Market rate and other savings	684,882			0.31		2,157		682,053		0.14		983
Savings certificates	20,653			0.57		118		22,190		0.30		67
Other time deposits	84,822			2.25		1,906		61,625		1.43		880
Deposits in foreign offices	63,945			1.30		835		123,816		0.68		841
Total interest-bearing deposits	917,545			0.61		5,622		939,158		0.32		3,013
Short-term borrowings	104,267			1.65		1,719		98,922		0.77		761
Long-term debt	224,268			2.99		6,703		246,195		2.09		5,157
Other liabilities	27,648			2.21		610		21,872		1.94		424
Total interest-bearing liabilities	1,273,728			1.15		14,654		1,306,147		0.72		9,355
Portion of noninterest-bearing funding sources (5)	464,754			—		—		470,443		—		—
Total funding sources (5)	$	1,738,482		0.85		14,654		1,776,590		0.53		9,355
Net interest margin and net interest income on a taxable-equivalent basis (7)				2.91	%	$	50,654			2.87	%	$	50,878
Noninterest-earning assets
Cash and due from banks	$	18,777						18,622
Goodwill	26,453							26,629
Other (5)	105,180							111,164
Total noninterest-earning assets (5)	$	150,410						156,415
Noninterest-bearing funding sources
Deposits	$	358,312						365,464
Other liabilities	53,496							55,740
Total equity	203,356							205,654
Noninterest-bearing funding sources used to fund earning assets (5)	(464,754		)					(470,443	)
Net noninterest-bearing funding sources (5)	$	150,410						156,415
Total assets	$	1,888,892						1,933,005
(1) Our average prime rate was 4.91% and 4.10% for 2018 and 2017, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.31% and 1.26% for the same periods, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) Yields and rates are based on interest income/expense amounts for the period. The average balance amounts represent amortized cost for the periods presented.
(5) Financial information for the year ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
(6) Nonaccrual loans and related income are included in their respective loan categories.
(7) Includes taxable-equivalent adjustments of $659 million and $1.3 billion for 2018 and 2017, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 21% and 35% for the years ended 2018 and 2017, respectively.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
	Quarter ended
	Dec 31, 2018					Sep 30, 2018					Jun 30, 2018					Mar 31, 2018					Dec 31, 2017
($ in billions)	Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates		Average balance			Yields/ rates
Earning assets
Interest-earning deposits with banks (3)	$	150.1		2.18	%	$	148.6		1.93	%	$	154.8		1.75	%	$	172.3		1.49	%	$	189.1		1.27	%
Federal funds sold and securities purchased under resale agreements (3)	76.1			2.22		79.9			1.93		80.0			1.73		78.1			1.40		75.8			1.20
Debt securities (4):
Trading debt securities (5)	90.1			3.52		84.5			3.45		80.7			3.45		78.7			3.24		81.6			3.17
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	7.2			1.80		6.4			1.65		6.4			1.66		6.4			1.66		6.4			1.66
Securities of U.S. states and political subdivisions	47.6			4.05		46.6			3.76		47.4			3.91		50.0			3.37		52.4			3.91
Mortgage-backed securities:
Federal agencies	155.3			2.91		155.5			2.77		154.9			2.75		158.4			2.72		152.9			2.62
Residential and commercial	6.7			4.87		7.3			4.68		8.2			4.86		8.9			4.12		9.4			4.85
Total mortgage-backed securities	162.0			2.99		162.8			2.86		163.1			2.86		167.3			2.79		162.3			2.75
Other debt securities (5)	46.1			4.46		46.4			4.39		47.1			4.33		48.1			3.73		48.6			3.62
Total available-for-sale debt securities (5)	262.9			3.41		262.2			3.26		264.0			3.28		271.8			3.04		269.7			3.10
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	44.7			2.19		44.7			2.18		44.7			2.19		44.7			2.20		44.7			2.19
Securities of U.S. states and political subdivisions	6.2			4.34		6.3			4.33		6.3			4.34		6.3			4.34		6.3			5.26
Federal agency and other mortgage-backed securities	95.8			2.46		95.3			2.27		94.9			2.33		90.8			2.38		89.6			2.25
Other debt securities	0.1			3.65		0.1			5.61		0.6			4.66		0.7			3.23		1.2			2.64
Total held-to-maturity debt securities	146.8			2.46		146.4			2.33		146.5			2.38		142.5			2.42		141.8			2.36
Total debt securities (5)	499.8			3.15		493.1			3.02		491.2			3.04		493.0			2.89		493.1			2.90
Mortgage loans held for sale	17.0			4.46		19.3			4.33		18.8			4.22		18.4			3.89		20.5			3.82
Loans held for sale (5)	2.0			6.69		2.6			5.28		3.5			5.48		2.0			4.92		1.5			3.19
Commercial loans:
Commercial and industrial - U.S.	281.4			4.40		273.8			4.22		275.3			4.16		272.0			3.85		270.3			3.89
Commercial and industrial - Non U.S.	62.0			3.73		60.9			3.63		59.7			3.51		60.2			3.23		59.2			2.96
Real estate mortgage	120.4			4.51		121.3			4.35		124.0			4.27		126.2			4.05		127.2			3.88
Real estate construction	23.1			5.32		23.3			5.05		23.6			4.88		24.4			4.54		24.4			4.38
Lease financing	19.5			4.48		19.5			4.69		19.3			4.48		19.4			5.30		19.3			0.62
Total commercial loans	506.4			4.39		498.8			4.24		501.9			4.15		502.2			3.91		500.4			3.68
Consumer loans:
Real estate 1-4 family first mortgage	285.3			4.02		284.1			4.07		283.1			4.06		284.2			4.02		282.0			4.01
Real estate 1-4 family junior lien mortgage	34.8			5.60		35.9			5.50		37.2			5.32		38.8			5.13		40.4			4.96
Credit card	37.9			12.69		36.9			12.77		35.9			12.66		36.4			12.75		36.4			12.37
Automobile	45.5			5.16		47.0			5.20		48.6			5.18		51.5			5.16		54.3			5.13
Other revolving credit and installment	36.4			6.95		36.8			6.78		37.4			6.62		37.9			6.46		38.3			6.28
Total consumer loans	439.9			5.25		440.7			5.26		442.2			5.20		448.8			5.16		451.4			5.10
Total loans	946.3			4.79		939.5			4.72		944.1			4.64		951.0			4.50		951.8			4.35
Equity securities (5)	37.4			2.79		37.9			2.98		37.3			2.38		39.8			2.35		38.0			2.60
Other (5)	4.2			1.78		4.7			1.47		5.6			1.48		6.0			1.21		7.2			0.88
Total earning assets (5)	$	1,732.9		3.93	%	$	1,725.6		3.81	%	$	1,735.3		3.73	%	$	1,760.6		3.55	%	$	1,777.0		3.43	%
Funding sources
Deposits:
Interest-bearing checking	$	54.0		1.21	%	$	51.2		1.01	%	$	80.3		0.90	%	$	67.8		0.77	%	$	50.5		0.68	%
Market rate and other savings	689.6			0.43		693.9			0.35		676.7			0.26		679.1			0.22		679.9			0.19
Savings certificates	22.0			0.87		20.6			0.62		20.0			0.43		20.0			0.34		20.9			0.31
Other time deposits	92.6			2.46		87.8			2.35		82.1			2.26		76.6			1.84		68.2			1.49
Deposits in foreign offices	56.1			1.66		53.9			1.50		51.5			1.30		94.8			0.98		124.6			0.81
Total interest-bearing deposits	914.3			0.77		907.4			0.66		910.6			0.56		938.3			0.47		944.1			0.39
Short-term borrowings	106.0			2.04		105.5			1.74		103.8			1.54		101.8			1.24		102.1			0.99
Long-term debt	226.6			3.17		220.7			3.02		223.8			2.97		226.0			2.80		231.6			2.32
Other liabilities	27.4			2.41		27.0			2.40		28.2			2.12		27.9			1.92		24.7			1.86
Total interest-bearing liabilities	1,274.3			1.34		1,260.6			1.20		1,266.4			1.10		1,294.0			0.97		1,302.5			0.81
Portion of noninterest-bearing funding sources (5)	458.6			—		465.0			—		468.9			—		466.6			—		474.5			—
Total funding sources (5)	$	1,732.9		0.99		$	1,725.6		0.87		$	1,735.3		0.80		$	1,760.6		0.71		$	1,777.0		0.59
Net interest margin on a taxable-equivalent basis				2.94	%				2.94	%				2.93	%				2.84	%				2.84	%
Noninterest-earning assets
Cash and due from banks	$	19.3				18.4					18.6					18.9					19.2
Goodwill	26.4					26.4					26.4					26.5					26.6
Other (5)	100.4					105.9					104.6					109.9					112.5
Total noninterest-earnings assets (5)	$	146.1				150.7					149.6					155.3					158.3
Noninterest-bearing funding sources
Deposits	$	354.6				359.0					360.7					358.9					367.5
Other liabilities (5)	51.7					53.9					51.7					56.8					57.9
Total equity	198.4					202.8					206.1					206.2					207.4
Noninterest-bearing funding sources used to fund earning assets (5)	(458.6		)			(465.0		)			(468.9		)			(466.6		)			(474.5		)
Net noninterest-bearing funding sources (5)	$	146.1				150.7					149.6					155.3					158.3
Total assets	$	1,879.0				1,876.3					1,884.9					1,915.9					1,935.3
(1) Our average prime rate was 5.28% for the quarter ended December 31, 2018, 5.01% for the quarter ended September 30,2018, 4.80% for the quarter ended June 30, 2018, 4.52% for the quarter ended March 31, 2018 and 4.30% for the quarter ended December 31, 2017. The average three-month London Interbank Offered Rate (LIBOR) was 2.62%, 2.34%, 2.34%, 1.93% and 1.46% for the same quarters, respectively.
(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Financial information for the quarter ended December 31, 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(4) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.
(5) Financial information for the quarter ended December 31, 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
	Quarter ended December 31,				%		Year ended December 31,			%
(in millions)	2018		2017		Change		2018		2017	Change
Service charges on deposit accounts	$	1,176	1,246		(6	)%	$	4,716	5,111	(8	)%
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,345		2,401		(2	)	9,436		9,358	1
Trust and investment management	796		866		(8	)	3,316		3,372	(2	)
Investment banking	379		420		(10	)	1,757		1,765	—
Total trust and investment fees	3,520		3,687		(5	)	14,509		14,495	—
Card fees	981		996		(2	)	3,907		3,960	(1	)
Other fees:
Lending related charges and fees (1)	400		391		2		1,526		1,568	(3	)
Cash network fees	114		120		(5	)	481		506	(5	)
Commercial real estate brokerage commissions	145		159		(9	)	468		462	1
Wire transfer and other remittance fees	120		115		4		477		448	6
All other fees	109		128		(15	)	432		573	(25	)
Total other fees	888		913		(3	)	3,384		3,557	(5	)
Mortgage banking:
Servicing income, net	109		262		(58	)	1,373		1,427	(4	)
Net gains on mortgage loan origination/sales activities	358		666		(46	)	1,644		2,923	(44	)
Total mortgage banking	467		928		(50	)	3,017		4,350	(31	)
Insurance	109		223		(51	)	429		1,049	(59	)
Net gains (losses) from trading activities (2)	10		(1	)	NM		602		542	11
Net gains on debt securities	9		157		(94	)	108		479	(77	)
Net gains from equity securities (2)	21		572		(96	)	1,515		1,779	(15	)
Lease income	402		458		(12	)	1,753		1,907	(8	)
Life insurance investment income	158		153		3		651		594	10
All other	595		405		47		1,822		1,009	81
Total	$	8,336	9,737		(14	)	$	36,413	38,832	(6	)
NM - Not meaningful
(1) Represents combined amount of previously reported "Charges and fees on loans" and "Letters of credit fees".
(2) Financial information for the prior periods has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

NONINTEREST EXPENSE
	Quarter ended December 31,			%		Year ended December 31,			%
(in millions)	2018		2017	Change		2018		2017	Change
Salaries	$	4,545	4,403	3	%	$	17,834	17,363	3	%
Commission and incentive compensation	2,427		2,665	(9	)	10,264		10,442	(2	)
Employee benefits	706		1,293	(45	)	4,926		5,566	(11	)
Equipment	643		608	6		2,444		2,237	9
Net occupancy	735		715	3		2,888		2,849	1
Core deposit and other intangibles	264		288	(8	)	1,058		1,152	(8	)
FDIC and other deposit assessments	153		312	(51	)	1,110		1,287	(14	)
Outside professional services	843		1,025	(18	)	3,306		3,813	(13	)
Operating losses	432		3,531	(88	)	3,124		5,492	(43	)
Contract services (1)	616		410	50		2,192		1,638	34
Operating leases	392		325	21		1,334		1,351	(1	)
Advertising and promotion	254		200	27		857		614	40
Outside data processing	168		208	(19	)	660		891	(26	)
Travel and entertainment	168		183	(8	)	618		687	(10	)
Postage, stationery and supplies	132		137	(4	)	515		544	(5	)
Telecommunications	91		92	(1	)	361		364	(1	)
Foreclosed assets	47		47	—		188		251	(25	)
Insurance	25		28	(11	)	101		100	1
All other (1)	698		330	112		2,346		1,843	27
Total	$	13,339	16,800	(21	)	$	56,126	58,484	(4	)
(1) The prior periods have been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
	Quarter ended
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Service charges on deposit accounts	$	1,176	1,204	1,163	1,173	1,246
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,345		2,334	2,354	2,403	2,401
Trust and investment management	796		835	835	850	866
Investment banking	379		462	486	430	420
Total trust and investment fees	3,520		3,631	3,675	3,683	3,687
Card fees	981		1,017	1,001	908	996
Other fees:
Lending related charges and fees (1)	400		370	376	380	391
Cash network fees	114		121	120	126	120
Commercial real estate brokerage commissions	145		129	109	85	159
Wire transfer and other remittance fees	120		120	121	116	115
All other fees	109		110	120	93	128
Total other fees	888		850	846	800	913
Mortgage banking:
Servicing income, net	109		390	406	468	262
Net gains on mortgage loan origination/sales activities	358		456	364	466	666
Total mortgage banking	467		846	770	934	928
Insurance	109		104	102	114	223
Net gains (losses) from trading activities (2)	10		158	191	243	(1	)
Net gains on debt securities	9		57	41	1	157
Net gains from equity securities (2)	21		416	295	783	572
Lease income	402		453	443	455	458
Life insurance investment income	158		167	162	164	153
All other	595		466	323	438	405
Total	$	8,336	9,369	9,012	9,696	9,737
(1) Represents combined amount of previously reported "Charges and fees on loans" and "Letters of credit fees".
(2) Financial information for the quarter ended December 31, 2017 has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Salaries	$	4,545	4,461	4,465	4,363	4,403
Commission and incentive compensation	2,427		2,427	2,642	2,768	2,665
Employee benefits	706		1,377	1,245	1,598	1,293
Equipment	643		634	550	617	608
Net occupancy	735		718	722	713	715
Core deposit and other intangibles	264		264	265	265	288
FDIC and other deposit assessments	153		336	297	324	312
Outside professional services	843		761	881	821	1,025
Operating losses	432		605	619	1,468	3,531
Contract services (1)	616		593	536	447	410
Operating leases	392		311	311	320	325
Advertising and promotion	254		223	227	153	200
Outside data processing	168		166	164	162	208
Travel and entertainment	168		141	157	152	183
Postage, stationery and supplies	132		120	121	142	137
Telecommunications	91		90	88	92	92
Foreclosed assets	47		59	44	38	47
Insurance	25		26	24	26	28
All other (1)	698		451	624	573	330
Total	$	13,339	13,763	13,982	15,042	16,800
(1) The quarter ended December 31, 2017, has been revised to conform with the current period presentation whereby temporary help is included in contract services rather than in all other noninterest expense.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
(in millions, except shares)	Dec 31, 2018			Dec 31, 2017		% Change
Assets
Cash and due from banks	$	23,551		23,367		1	%
Interest-earning deposits with banks (1)	149,736			192,580		(22	)
Total cash, cash equivalents, and restricted cash (1)	173,287			215,947		(20	)
Federal funds sold and securities purchased under resale agreements (1)	80,207			80,025		—
Debt securities:
Trading, at fair value (2)	69,989			57,624		21
Available-for-sale, at fair value (2)	269,912			276,407		(2	)
Held-to-maturity, at cost	144,788			139,335		4
Mortgage loans held for sale	15,126			20,070		(25	)
Loans held for sale (2)	2,041			1,131		80
Loans	953,110			956,770		—
Allowance for loan losses	(9,775		)	(11,004	)	(11	)
Net loans	943,335			945,766		—
Mortgage servicing rights:
Measured at fair value	14,649			13,625		8
Amortized	1,443			1,424		1
Premises and equipment, net	8,920			8,847		1
Goodwill	26,418			26,587		(1	)
Derivative assets	10,770			12,228		(12	)
Equity securities (2)	55,148			62,497		(12	)
Other assets (2)	79,850			90,244		(12	)
Total assets	$	1,895,883		1,951,757		(3	)
Liabilities
Noninterest-bearing deposits	$	349,534		373,722		(6	)
Interest-bearing deposits	936,636			962,269		(3	)
Total deposits	1,286,170			1,335,991		(4	)
Short-term borrowings	105,787			103,256		2
Derivative liabilities	8,499			8,796		(3	)
Accrued expenses and other liabilities	69,317			70,615		(2	)
Long-term debt	229,044			225,020		2
Total liabilities	1,698,817			1,743,678		(3	)
Equity
Wells Fargo stockholders’ equity:
Preferred stock	23,214			25,358		(8	)
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares	9,136			9,136		—
Additional paid-in capital	60,685			60,893		—
Retained earnings	158,163			145,263		9
Cumulative other comprehensive income (loss)	(6,336		)	(2,144	)	196
Treasury stock – 900,557,866 shares and 590,194,846 shares	(47,194		)	(29,892	)	58
Unearned ESOP shares	(1,502		)	(1,678	)	(10	)
Total Wells Fargo stockholders’ equity	196,166			206,936		(5	)
Noncontrolling interests	900			1,143		(21	)
Total equity	197,066			208,079		(5	)
Total liabilities and equity	$	1,895,883		1,951,757		(3	)
(1) Financial information has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(2) Financial information for the prior period has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
(in millions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
Assets
Cash and due from banks	$	23,551		18,791		20,450		18,145		23,367
Interest-earning deposits with banks (1)	149,736			140,732		142,999		184,250		192,580
Total cash, cash equivalents, and restricted cash (1)	173,287			159,523		163,449		202,395		215,947
Federal funds sold and securities purchased under resale agreements (1)	80,207			83,471		80,184		73,550		80,025
Debt securities:
Trading, at fair value (2)	69,989			65,188		65,602		59,866		57,624
Available-for-sale, at fair value (2)	269,912			262,964		265,687		271,656		276,407
Held-to-maturity, at cost	144,788			144,131		144,206		141,446		139,335
Mortgage loans held for sale	15,126			19,225		21,509		17,944		20,070
Loans held for sale (2)	2,041			1,765		3,408		3,581		1,131
Loans	953,110			942,300		944,265		947,308		956,770
Allowance for loan losses	(9,775		)	(10,021	)	(10,193	)	(10,373	)	(11,004	)
Net loans	943,335			932,279		934,072		936,935		945,766
Mortgage servicing rights:
Measured at fair value	14,649			15,980		15,411		15,041		13,625
Amortized	1,443			1,414		1,407		1,411		1,424
Premises and equipment, net	8,920			8,802		8,882		8,828		8,847
Goodwill	26,418			26,425		26,429		26,445		26,587
Derivative assets	10,770			11,811		11,099		11,467		12,228
Equity securities (2)	55,148			61,755		57,505		58,935		62,497
Other assets (2)	79,850			78,248		80,850		85,888		90,244
Total assets	$	1,895,883		1,872,981		1,879,700		1,915,388		1,951,757
Liabilities
Noninterest-bearing deposits	$	349,534		352,869		365,021		370,085		373,722
Interest-bearing deposits	936,636			913,725		903,843		933,604		962,269
Total deposits	1,286,170			1,266,594		1,268,864		1,303,689		1,335,991
Short-term borrowings	105,787			105,451		104,496		97,207		103,256
Derivative liabilities	8,499			8,586		8,507		7,883		8,796
Accrued expenses and other liabilities	69,317			71,348		72,480		73,397		70,615
Long-term debt	229,044			221,323		219,284		227,302		225,020
Total liabilities	1,698,817			1,673,302		1,673,631		1,709,478		1,743,678
Equity
Wells Fargo stockholders’ equity:
Preferred stock	23,214			23,482		25,737		26,227		25,358
Common stock	9,136			9,136		9,136		9,136		9,136
Additional paid-in capital	60,685			60,738		59,644		60,399		60,893
Retained earnings	158,163			154,576		150,803		147,928		145,263
Cumulative other comprehensive income (loss)	(6,336		)	(6,873	)	(5,461	)	(4,921	)	(2,144	)
Treasury stock	(47,194		)	(40,538	)	(32,620	)	(31,246	)	(29,892	)
Unearned ESOP shares	(1,502		)	(1,780	)	(2,051	)	(2,571	)	(1,678	)
Total Wells Fargo stockholders’ equity	196,166			198,741		205,188		204,952		206,936
Noncontrolling interests	900			938		881		958		1,143
Total equity	197,066			199,679		206,069		205,910		208,079
Total liabilities and equity	$	1,895,883		1,872,981		1,879,700		1,915,388		1,951,757
(1) Financial information has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-18 – Statement of Cash Flows (Topic 230): Restricted Cash in which we changed the presentation of our cash and cash equivalents to include both cash and due from banks as well as interest-earning deposits with banks, which are inclusive of any restricted cash.
(2) Financial information for the quarter ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER TRADING ASSETS AND LIABILITIES
(in millions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
Trading assets
Debt securities	$	69,989		65,188		65,602		59,866		57,624
Equity securities (1)	19,449			26,138		22,978		25,327		30,004
Loans held for sale	1,469			1,266		1,350		1,695		1,023
Gross trading derivative assets	29,216			30,302		30,758		30,644		31,340
Netting (2)	(19,807		)	(19,188	)	(20,687	)	(20,112	)	(19,629	)
Total trading derivative assets	9,409			11,114		10,071		10,532		11,711
Total trading assets	100,316			103,706		100,001		97,420		100,362
Trading liabilities
Short sales	19,720			23,992		21,765		23,303		18,472
Gross trading derivative liabilities	28,717			29,268		29,847		29,717		31,386
Netting (2)	(21,178		)	(21,842	)	(22,311	)	(22,569	)	(23,062	)
Total trading derivative liabilities	7,539			7,426		7,536		7,148		8,324
Total trading liabilities	$	27,259		31,418		29,301		30,451		26,796
(1) Financial information for the quarter ended December 31, 2017, has been revised to reflect the impact of the adoption in first quarter 2018 of ASU 2016-01 and assets held as economic hedges for our deferred compensation plan obligations have been reclassified as marketable equity securities not held for trading.
(2) Represents balance sheet netting for trading derivative assets and liability balances, and trading portfolio level counterparty valuation adjustments.

FIVE QUARTER DEBT SECURITIES
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Trading debt securities	$	69,989	65,188	65,602	59,866	57,624
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	13,348		6,187	6,271	6,279	6,319
Securities of U.S. states and political subdivisions	49,264		48,216	47,559	49,643	51,326
Mortgage-backed securities:
Federal agencies	153,203		153,511	154,556	156,814	160,219
Residential and commercial	7,000		6,939	8,286	9,264	9,173
Total mortgage-backed securities	160,203		160,450	162,842	166,078	169,392
Other debt securities	47,097		48,111	49,015	49,656	49,370
Total available-for-sale debt securities	269,912		262,964	265,687	271,656	276,407
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	44,751		44,743	44,735	44,727	44,720
Securities of U.S. states and political subdivisions	6,286		6,293	6,300	6,307	6,313
Federal agency and other mortgage-backed securities (1)	93,685		93,020	93,016	89,748	87,527
Other debt securities	66		75	155	664	775
Total held-to-maturity debt securities	144,788		144,131	144,206	141,446	139,335
Total debt securities	$	484,689	472,283	475,495	472,968	473,366
(1) Predominantly consists of federal agency mortgage-backed securities.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER EQUITY SECURITIES
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Held for trading at fair value:
Marketable equity securities	$	19,449	26,138	22,978	25,327	30,004
Not held for trading:
Fair value:
Marketable equity securities (1)	4,513		5,705	5,273	4,931	4,356
Nonmarketable equity securities (2)	5,594		6,479	5,876	5,303	4,867
Total equity securities at fair value	10,107		12,184	11,149	10,234	9,223
Equity method:
LIHTC (3)	10,999		10,453	10,361	10,318	10,269
Private equity	3,832		3,838	3,732	3,840	3,839
Tax-advantaged renewable energy	3,073		1,967	1,950	1,822	1,950
New market tax credit and other	311		259	262	268	294
Total equity method	18,215		16,517	16,305	16,248	16,352
Other:
Federal bank stock and other at cost (4)	5,643		5,467	5,673	5,780	5,828
Private equity (5)	1,734		1,449	1,400	1,346	1,090
Total equity securities not held for trading	35,699		35,617	34,527	33,608	32,493
Total equity securities	$	55,148	61,755	57,505	58,935	62,497
(1) Includes $3.2 billion, $3.6 billion, $3.5 billion, $3.5 billion and $3.7 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.
(2) Includes $5.5 billion, $6.3 billion, $5.5 billion, $5.0 billion and $4.9 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively, related to investments for which we elected the fair value option.
(3) Represents low-income housing tax credit investments.
(4) Includes $5.6 billion, $5.4 billion, $5.6 billion, $5.7 billion and $5.4 billion at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.
(5) Represents nonmarketable equity securities for which we have elected to account for the security under the measurement alternative.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER LOANS
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Commercial:
Commercial and industrial	$	350,199	338,048	336,590	334,678	333,125
Real estate mortgage	121,014		120,403	123,964	125,543	126,599
Real estate construction	22,496		23,690	22,937	23,882	24,279
Lease financing	19,696		19,745	19,614	19,293	19,385
Total commercial	513,405		501,886	503,105	503,396	503,388
Consumer:
Real estate 1-4 family first mortgage	285,065		284,273	283,001	282,658	284,054
Real estate 1-4 family junior lien mortgage	34,398		35,330	36,542	37,920	39,713
Credit card	39,025		37,812	36,684	36,103	37,976
Automobile	45,069		46,075	47,632	49,554	53,371
Other revolving credit and installment	36,148		36,924	37,301	37,677	38,268
Total consumer	439,705		440,414	441,160	443,912	453,382
Total loans (1)	$	953,110	942,300	944,265	947,308	956,770
(1) Includes $5.0 billion, $6.9 billion, $9.0 billion, $10.7 billion, and $12.8 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30 and March 31, 2018, and December 31, 2017, respectively.

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

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

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
(in millions)	Dec 31, 2018			Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,486		1,555	1,559	1,516	1,899
Real estate mortgage	580			603	765	755	628
Real estate construction	32			44	51	45	37
Lease financing	90			96	80	93	76
Total commercial	2,188			2,298	2,455	2,409	2,640
Consumer:
Real estate 1-4 family first mortgage	3,183			3,267	3,469	3,673	3,732
Real estate 1-4 family junior lien mortgage	945			983	1,029	1,087	1,086
Automobile	130			118	119	117	130
Other revolving credit and installment	50			48	54	53	58
Total consumer	4,308			4,416	4,671	4,930	5,006
Total nonaccrual loans (1)(2)(3)	$	6,496		6,714	7,126	7,339	7,646
As a percentage of total loans	0.68		%	0.71	0.75	0.77	0.80
Foreclosed assets:
Government insured/guaranteed	$	88		87	90	103	120
Non-government insured/guaranteed	363			435	409	468	522
Total foreclosed assets	451			522	499	571	642
Total nonperforming assets	$	6,947		7,236	7,625	7,910	8,288
As a percentage of total loans	0.73		%	0.77	0.81	0.83	0.87
(1) Financial information for periods prior to December 31, 2018 has been revised to exclude mortgage loans held for sale (MLHFS), loans held for sale (LHFS) and loans held at fair value of $339 million, $360 million, $380 million and $390 million at September 30, June 30, and March 31, 2018, and December 31, 2017, respectively.
(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) are not placed on nonaccrual status because they are insured or guaranteed.

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING (1)
(in millions)	Dec 31, 2018		Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Total (excluding PCI)(2):	$	8,704	8,838	9,087	10,351	11,532
Less: FHA insured/VA guaranteed (3)	7,725		7,906	8,246	9,385	10,475
Total, not government insured/guaranteed	$	979	932	841	966	1,057
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	43	42	23	40	26
Real estate mortgage	51		56	26	23	23
Real estate construction	—		—	—	1	—
Total commercial	94		98	49	64	49
Consumer:
Real estate 1-4 family first mortgage	124		128	132	163	213
Real estate 1-4 family junior lien mortgage	32		32	33	48	60
Credit card	513		460	429	473	492
Automobile	114		108	105	113	143
Other revolving credit and installment	102		106	93	105	100
Total consumer	885		834	792	902	1,008
Total, not government insured/guaranteed	$	979	932	841	966	1,057
(1) Financial information for periods prior to December 31, 2018 has been revised to exclude MLHFS, LHFS and loans held at fair value, which reduced “Total, not government insured/guaranteed” by $1 million, $1 million, $1 million and $6 million at September 30, June 30, and March 31, 2018, and December 31, 2017, respectively.
(1) PCI loans totaled $370 million, $567 million, $811 million, $1.0 billion and $1.4 billion, at December 31, September 30 , June 30, and March 31, 2018, and December 31, 2017, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

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

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

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

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

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

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

(in millions)	Quarter ended Dec 31, 2018			Year ended Dec 31, 2018		2009-2017
Balance, beginning of period	$	4,409		8,887		10,447
Change in accretable yield due to acquisitions	—			—		161
Accretion into interest income (1)	(202		)	(1,094	)	(16,983	)
Accretion into noninterest income due to sales (2)	(614		)	(2,374	)	(801	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)	1			403		11,597
Changes in expected cash flows that do not affect nonaccretable difference (4)	(561		)	(2,789	)	4,466
Balance, end of period	$	3,033		3,033		8,887
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) At December 31, 2018, our carrying value for PCI loans totaled $5.0 billion and the remainder of nonaccretable difference established in purchase accounting totaled $480 million. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.
(4) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
	Quarter ended December 31,					Year ended December 31,
(in millions)	2018			2017		2018		2017
Balance, beginning of period	$	10,956		12,109		11,960		12,540
Provision for credit losses	521			651		1,744		2,528
Interest income on certain impaired loans (1)	(38		)	(49	)	(166	)	(186	)
Loan charge-offs:
Commercial:
Commercial and industrial	(220		)	(181	)	(727	)	(789	)
Real estate mortgage	(12		)	(4	)	(42	)	(38	)
Real estate construction	—			—		—		—
Lease financing	(18		)	(14	)	(70	)	(45	)
Total commercial	(250		)	(199	)	(839	)	(872	)
Consumer:
Real estate 1-4 family first mortgage	(38		)	(49	)	(179	)	(240	)
Real estate 1-4 family junior lien mortgage	(38		)	(54	)	(179	)	(279	)
Credit card	(414		)	(398	)	(1,599	)	(1,481	)
Automobile	(217		)	(261	)	(947	)	(1,002	)
Other revolving credit and installment	(180		)	(169	)	(685	)	(713	)
Total consumer	(887		)	(931	)	(3,589	)	(3,715	)
Total loan charge-offs	(1,137		)	(1,130	)	(4,428	)	(4,587	)
Loan recoveries:
Commercial:
Commercial and industrial	88			63		304		297
Real estate mortgage	24			14		70		82
Real estate construction	1			3		13		30
Lease financing	5			4		23		17
Total commercial	118			84		410		426
Consumer:
Real estate 1-4 family first mortgage	60			72		267		288
Real estate 1-4 family junior lien mortgage	48			61		219		266
Credit card	76			62		307		239
Automobile	84			73		363		319
Other revolving credit and installment	30			27		118		121
Total consumer	298			295		1,274		1,233
Total loan recoveries	416			379		1,684		1,659
Net loan charge-offs	(721		)	(751	)	(2,744	)	(2,928	)
Other	(11		)	—		(87	)	6
Balance, end of period	$	10,707		11,960		10,707		11,960
Components:
Allowance for loan losses	$	9,775		11,004		9,775		11,004
Allowance for unfunded credit commitments	932			956		932		956
Allowance for credit losses	$	10,707		11,960		10,707		11,960
Net loan charge-offs (annualized) as a percentage of average total loans	0.30		%	0.31		0.29		0.31
Allowance for loan losses as a percentage of total loans	1.03			1.15		1.03		1.15
Allowance for credit losses as a percentage of total loans	1.12			1.25		1.12		1.25
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

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

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

		Quarter ended											Year ended
(in millions, except ratios)		Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017		Dec 31, 2018		Dec 31, 2017
Return on average tangible common equity (1):
Net income applicable to common stock	(A)	$	5,711		5,453		4,792		4,733		5,740		20,689		20,554
Average total equity		198,442			202,826		206,067		206,180		207,413		203,356		205,654
Adjustments:
Preferred stock		(23,463		)	(24,219	)	(26,021	)	(26,157	)	(25,569	)	(24,956	)	(25,592	)
Additional paid-in capital on ESOP preferred stock		(105		)	(115	)	(129	)	(153	)	(129	)	(125	)	(139	)
Unearned ESOP shares		1,761			2,026		2,348		2,508		1,896		2,159		2,143
Noncontrolling interests		(910		)	(892	)	(919	)	(997	)	(998	)	(929	)	(948	)
Average common stockholders’ equity	(B)	175,725			179,626		181,346		181,381		182,613		179,505		181,118
Adjustments:
Goodwill		(26,423		)	(26,429	)	(26,444	)	(26,516	)	(26,579	)	(26,453	)	(26,629	)
Certain identifiable intangible assets (other than MSRs)		(693		)	(958	)	(1,223	)	(1,489	)	(1,767	)	(1,088	)	(2,176	)
Other assets (2)		(2,204		)	(2,083	)	(2,271	)	(2,233	)	(2,245	)	(2,197	)	(2,184	)
Applicable deferred taxes (3)		800			845		889		933		1,332		866		1,570
Average tangible common equity	(C)	$	147,205		151,001		152,297		152,076		153,354		150,633		151,699
Return on average common stockholders' equity (ROE) (annualized)	(A)/(B)	12.89		%	12.04		10.60		10.58		12.47		11.53		11.35
Return on average tangible common equity (ROTCE) (annualized)	(A)/(C)	15.39			14.33		12.62		12.62		14.85		13.73		13.55
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity securities but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
		Estimated
(in billions, except ratio)		Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
Total equity		$	197.1		199.7		206.1		205.9		208.1
Adjustments:
Preferred stock		(23.2		)	(23.5	)	(25.7	)	(26.2	)	(25.4	)
Additional paid-in capital on ESOP preferred stock		(0.1		)	(0.1	)	(0.1	)	(0.1	)	(0.1	)
Unearned ESOP shares		1.5			1.8		2.0		2.6		1.7
Noncontrolling interests		(0.9		)	(0.9	)	(0.9	)	(1.0	)	(1.1	)
Total common stockholders' equity		174.4			177.0		181.4		181.2		183.2
Adjustments:
Goodwill		(26.4		)	(26.4	)	(26.4	)	(26.4	)	(26.6	)
Certain identifiable intangible assets (other than MSRs)		(0.6		)	(0.8	)	(1.1	)	(1.4	)	(1.6	)
Other assets (2)		(2.2		)	(2.1	)	(2.2	)	(2.4	)	(2.2	)
Applicable deferred taxes (3)		0.8			0.8		0.9		0.9		1.0
Investment in certain subsidiaries and other		0.4			0.4		0.4		0.4		0.2
Common Equity Tier 1 (Fully Phased-In) under Basel III	(A)	146.4			148.9		153.0		152.3		154.0
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)	(B)	$	1,248.4		1,250.2		1,276.3		1,278.1		1,285.6
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)	(A)/(B)	11.7		%	11.9		12.0		11.9		12.0
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Beginning January 1, 2018, the requirements for calculating CET1 and tier 1 capital, along with RWAs, became fully phased-in.
(2) Represents goodwill and other intangibles on nonmarketable equity securities, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
(4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of December 31, 2018, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for September 30, June 30 and March 31, 2018, and December 31, 2017, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s December 31, 2018, RWAs and capital ratio are preliminary estimates.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
(income/expense in millions, average balances in billions)	Community Banking				Wholesale Banking				Wealth and Investment Management				Other (2)				Consolidated Company
	2018		2017		2018		2017		2018		2017		2018		2017		2018	2017
Quarter ended Dec 31,
Net interest income (3)	$	7,340	7,239		4,739		4,557		1,116		1,152		(551	)	(635	)	12,644	12,313
Provision (reversal of provision) for credit losses	534		636		(28	)	20		(3	)	(7	)	18		2		521	651
Noninterest income	4,121		4,481		2,187		2,883		2,841		3,181		(813	)	(808	)	8,336	9,737
Noninterest expense	7,032		10,216		4,025		4,187		3,044		3,246		(762	)	(849	)	13,339	16,800
Income (loss) before income tax expense (benefit)	3,895		868		2,929		3,233		916		1,094		(620	)	(596	)	7,120	4,599
Income tax expense (benefit)	637		(2,682	)	253		854		231		413		(155	)	(227	)	966	(1,642	)
Net income (loss) before noncontrolling interests	3,258		3,550		2,676		2,379		685		681		(465	)	(369	)	6,154	6,241
Less: Net income (loss) from noncontrolling interests	89		78		5		6		(4	)	6		—		—		90	90
Net income (loss)	$	3,169	3,472		2,671		2,373		689		675		(465	)	(369	)	6,064	6,151
Average loans	$	459.7	473.2		470.2		463.5		75.2		72.9		(58.8	)	(57.8	)	946.3	951.8
Average assets	1,015.9		1,073.2		839.1		837.2		83.6		83.7		(59.6	)	(58.8	)	1,879.0	1,935.3
Average deposits	759.4		738.3		421.6		465.7		155.5		184.1		(67.6	)	(76.5	)	1,268.9	1,311.6
Year ended Dec 31,
Net interest income (3)	$	29,219	28,658		18,690		18,810		4,441		4,641		(2,355	)	(2,552	)	49,995	49,557
Provision (reversal of provision) for credit losses	1,783		2,555		(58	)	(19	)	(5	)	(5	)	24		(3	)	1,744	2,528
Noninterest income	17,694		18,360		10,016		11,190		11,935		12,431		(3,232	)	(3,149	)	36,413	38,832
Noninterest expense	30,491		32,615		16,157		16,624		12,938		12,623		(3,460	)	(3,378	)	56,126	58,484
Income (loss) before income tax expense (benefit)	14,639		11,848		12,607		13,395		3,443		4,454		(2,151	)	(2,320	)	28,538	27,377
Income tax expense (benefit)	3,784		634		1,555		3,496		861		1,668		(538	)	(881	)	5,662	4,917
Net income (loss) before noncontrolling interests	10,855		11,214		11,052		9,899		2,582		2,786		(1,613	)	(1,439	)	22,876	22,460
Less: Net income (loss) from noncontrolling interests	461		276		20		(15	)	2		16		—		—		483	277
Net income (loss)	$	10,394	10,938		11,032		9,914		2,580		2,770		(1,613	)	(1,439	)	22,393	22,183
Average loans	$	463.7	475.7		465.7		465.6		74.6		71.9		(58.8	)	(57.1	)	945.2	956.1
Average assets	1,034.1		1,085.5		830.5		822.8		83.9		82.8		(59.6	)	(58.1	)	1,888.9	1,933.0
Average deposits	757.2		729.6		423.7		464.2		165.0		189.0		(70.0	)	(78.2	)	1,275.9	1,304.6
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective first quarter 2018, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on a more granular level. This methodology change affects results across all three of our reportable operating segments and results for all periods prior to 2018 have been revised to reflect this methodology change. Our previously reported consolidated financial results were not impacted by the methodology change; however, in connection with the adoption of ASU 2016-01 in first quarter 2018, certain reclassifications occurred within noninterest income.
(2) Includes the elimination of certain items that are included in more than one business segment, most of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
(3) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
								Quarter ended
(income/expense in millions, average balances in billions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
COMMUNITY BANKING
Net interest income (2)	$	7,340		7,338		7,346		7,195		7,239
Provision for credit losses	534			547		484		218		636
Noninterest income	4,121			4,478		4,460		4,635		4,481
Noninterest expense	7,032			7,467		7,290		8,702		10,216
Income before income tax expense	3,895			3,802		4,032		2,910		868
Income tax expense (benefit)	637			925		1,413		809		(2,682	)
Net income before noncontrolling interests	3,258			2,877		2,619		2,101		3,550
Less: Net income from noncontrolling interests	89			61		123		188		78
Segment net income	$	3,169		2,816		2,496		1,913		3,472
Average loans	$	459.7		460.9		463.8		470.5		473.2
Average assets	1,015.9			1,024.9		1,034.3		1,061.9		1,073.2
Average deposits	759.4			760.9		760.6		747.5		738.3
WHOLESALE BANKING
Net interest income (2)	$	4,739		4,726		4,693		4,532		4,557
Provision (reversal of provision) for credit losses	(28		)	26		(36	)	(20	)	20
Noninterest income	2,187			2,578		2,504		2,747		2,883
Noninterest expense	4,025			3,935		4,219		3,978		4,187
Income before income tax expense	2,929			3,343		3,014		3,321		3,233
Income tax expense	253			475		379		448		854
Net income before noncontrolling interests	2,676			2,868		2,635		2,873		2,379
Less: Net income (loss) from noncontrolling interests	5			17		—		(2	)	6
Segment net income	$	2,671		2,851		2,635		2,875		2,373
Average loans	$	470.2		462.8		464.7		465.1		463.5
Average assets	839.1			827.2		826.4		829.2		837.2
Average deposits	421.6			413.6		414.0		446.0		465.7
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)	$	1,116		1,102		1,111		1,112		1,152
Provision (reversal of provision) for credit losses	(3		)	6		(2	)	(6	)	(7	)
Noninterest income	2,841			3,124		2,840		3,130		3,181
Noninterest expense	3,044			3,243		3,361		3,290		3,246
Income before income tax expense	916			977		592		958		1,094
Income tax expense	231			244		147		239		413
Net income before noncontrolling interests	685			733		445		719		681
Less: Net income (loss) from noncontrolling interests	(4		)	1		—		5		6
Segment net income	$	689		732		445		714		675
Average loans	$	75.2		74.6		74.7		73.9		72.9
Average assets	83.6			83.8		84.0		84.2		83.7
Average deposits	155.5			159.8		167.1		177.9		184.1
OTHER (3)
Net interest income (2)	$	(551	)	(594	)	(609	)	(601	)	(635	)
Provision (reversal of provision) for credit losses	18			1		6		(1	)	2
Noninterest income	(813		)	(811	)	(792	)	(816	)	(808	)
Noninterest expense	(762		)	(882	)	(888	)	(928	)	(849	)
Loss before income tax benefit	(620		)	(524	)	(519	)	(488	)	(596	)
Income tax benefit	(155		)	(132	)	(129	)	(122	)	(227	)
Net loss before noncontrolling interests	(465		)	(392	)	(390	)	(366	)	(369	)
Less: Net income from noncontrolling interests	—			—		—		—		—
Other net loss	$	(465	)	(392	)	(390	)	(366	)	(369	)
Average loans	$	(58.8	)	(58.8	)	(59.1	)	(58.5	)	(57.8	)
Average assets	(59.6		)	(59.6	)	(59.8	)	(59.4	)	(58.8	)
Average deposits	(67.6		)	(67.9	)	(70.4	)	(74.2	)	(76.5	)
CONSOLIDATED COMPANY
Net interest income (2)	$	12,644		12,572		12,541		12,238		12,313
Provision for credit losses	521			580		452		191		651
Noninterest income	8,336			9,369		9,012		9,696		9,737
Noninterest expense	13,339			13,763		13,982		15,042		16,800
Income before income tax expense	7,120			7,598		7,119		6,701		4,599
Income tax expense (benefit)	966			1,512		1,810		1,374		(1,642	)
Net income before noncontrolling interests	6,154			6,086		5,309		5,327		6,241
Less: Net income from noncontrolling interests	90			79		123		191		90
Wells Fargo net income	$	6,064		6,007		5,186		5,136		6,151
Average loans	$	946.3		939.5		944.1		951.0		951.8
Average assets	1,879.0			1,876.3		1,884.9		1,915.9		1,935.3
Average deposits	1,268.9			1,266.4		1,271.3		1,297.2		1,311.6
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective first quarter 2018, assets and liabilities receive a funding charge or credit that considers interest rate risk, liquidity risk, and other product characteristics on a more granular level. This methodology change affects results across all three of our reportable operating segments and results for all periods prior to 2018 have been revised to reflect this methodology change. Our previously reported consolidated financial results were not impacted by the methodology change; however, in connection with the adoption of ASU 2016-01 in first quarter 2018, certain reclassifications occurred within noninterest income.
(2) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets as well as interest credits for any funding of a segment available to be provided to other segments. The cost of liabilities includes actual interest expense on segment liabilities as well as funding charges for any funding provided from other segments.
(3) Includes the elimination of certain items that are included in more than one business segment, most of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
	Quarter ended
(in millions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	15,980		15,411		15,041		13,625		13,338
Servicing from securitizations or asset transfers (1)	449			502		486		573		639
Sales and other (2)	(64		)	(2	)	(1	)	(4	)	(32	)
Net additions	385			500		485		569		607
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)	(874		)	582		376		1,253		221
Servicing and foreclosure costs (4)	763			(9	)	30		34		23
Discount rates (5)	(821		)	(9	)	—		—		13
Prepayment estimates and other (6)	(314		)	(33	)	(61	)	43		(55	)
Net changes in valuation model inputs or assumptions	(1,246		)	531		345		1,330		202
Changes due to collection/realization of expected cash flows over time	(470		)	(462	)	(460	)	(483	)	(522	)
Total changes in fair value	(1,716		)	69		(115	)	847		(320	)
Fair value, end of quarter	$	14,649		15,980		15,411		15,041		13,625
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from Government National Mortgage Association (GNMA) loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios or portfolios with servicing liabilities.
(3) Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates.
(6) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.

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

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

(in billions)	Dec 31, 2018			Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,164		1,184	1,190	1,201	1,209
Owned loans serviced	334			337	340	337	342
Subserviced for others	4			5	4	5	3
Total residential servicing	1,502			1,526	1,534	1,543	1,554
Commercial mortgage servicing:
Serviced for others	543			529	518	510	495
Owned loans serviced	121			121	124	125	127
Subserviced for others	9			9	10	10	9
Total commercial servicing	673			659	652	645	631
Total managed servicing portfolio	$	2,175		2,185	2,186	2,188	2,185
Total serviced for others	$	1,707		1,713	1,708	1,711	1,704
Ratio of MSRs to related loans serviced for others	0.94		%	1.02	0.98	0.96	0.88
Weighted-average note rate (mortgage loans serviced for others)	4.32			4.29	4.27	4.24	4.23
(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
		Quarter ended
		Dec 31, 2018			Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017
Net gains on mortgage loan origination/sales activities (in millions):
Residential	(A)	$	245		324	281	324	504
Commercial		65			75	49	76	95
Residential pipeline and unsold/repurchased loan management (1)		48			57	34	66	67
Total		$	358		456	364	466	666
Application data (in billions):
Wells Fargo first mortgage quarterly applications		$	48		57	67	58	63
Refinances as a percentage of applications		30		%	26	25	35	38
Wells Fargo first mortgage unclosed pipeline, at quarter end		$	18		22	26	24	23
Residential real estate originations:
Purchases as a percentage of originations		78		%	81	78	65	64
Refinances as a percentage of originations		22			19	22	35	36
Total		100		%	100	100	100	100
Wells Fargo first mortgage loans (in billions):
Retail		$	16		18	21	16	23
Correspondent		21			27	28	27	30
Other (2)		1			1	1	—	—
Total quarter-to-date		$	38		46	50	43	53
Held-for-sale	(B)	$	28		33	37	34	40
Held-for-investment		10			13	13	9	13
Total quarter-to-date		$	38		46	50	43	53
Total year-to-date		$	177		139	93	43	212
Production margin on residential held-for-sale mortgage originations	(A)/(B)	0.89		%	0.97	0.77	0.94	1.25
(1) Predominantly includes the results of sales of modified GNMA loans, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.

CHANGES IN MORTGAGE REPURCHASE LIABILITY
								Quarter ended
(in millions)	Dec 31, 2018			Sep 30, 2018		Jun 30, 2018		Mar 31, 2018		Dec 31, 2017
Balance, beginning of period	$	178		179		181		181		179
Provision for repurchase losses:
Loan sales	5			5		4		3		4
Change in estimate (1)	(15		)	(4	)	(2	)	1		2
Net additions (reductions) to provision	(10		)	1		2		4		6
Losses	(3		)	(2	)	(4	)	(4	)	(4	)
Balance, end of period	$	165		178		179		181		181
(1) Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.