Wells Fargo & Company (WFC) 8-K Wells Fargo Reports Fourth Quarter 2019 Net Income of $2.9 Billion

Exhibit 99.1

News Release | January 14, 2020

Wells Fargo Reports Fourth Quarter 2019 Net Income of $2.9 Billion

Diluted EPS of $0.60 included the impact of litigation accruals of $(0.33) per share

▪ Fourth quarter 2019 financial results:

◦ Net income of $2.9 billion and diluted earnings per share (EPS) of $0.60

• Operating losses of $1.9 billion, driven by $1.5 billion, or ($0.33) per share, of litigation accruals for a variety of matters, including previously disclosed retail sales practices matters; a majority of the litigation accruals was not tax deductible

◦ Revenue of $19.9 billion, down from $21.0 billion in fourth quarter 2018

• Net interest income of $11.2 billion, down$1.4 billion

• Noninterest income of $8.7 billion, up$324 million

◦ Noninterest expense of $15.6 billion, up$2.3 billion primarily due to higher operating losses

◦ Average loans of $956.5 billion, up$10.2 billion, or 1%

◦ Average deposits of $1.3 trillion, up$53.0 billion, or 4%

◦ Credit quality:

• Provision expense of $644 million, up$123 million from fourth quarter 2018

▪ Net charge-offs of $769 million, up$48 million

◦ Net charge-offs of 0.32% of average loans (annualized), up from 0.30%

▪ Reserve release¹ of $125 million, compared with a $200 million release in fourth quarter 2018

• Nonaccrual loans of $5.3 billion, down$1.2 billion, or 18%

◦ Strong capital position while returning more capital to shareholders:

• Common Equity Tier 1 ratio of 11.1%²

• Returned $9.0 billion to shareholders in fourth quarter 2019 through common stock dividends and net share repurchases, up from $8.8 billion in fourth quarter 2018

▪ Quarterly common stock dividend of $0.51 per share, up 19% from $0.43 per share

▪ Period-end common shares outstanding down 446.8 million shares, or 10%

▪ Full year 2019 financial results:

◦ Net income of $19.5 billion and diluted earnings per share (EPS) of $4.05

◦ Return on assets (ROA) of 1.02%, return on equity (ROE) of 10.23%, and return on average tangible common equity (ROTCE) of 12.20%³

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, 2019, 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.

¹ Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

² See table on page 37 for more information on Common Equity Tier 1. Common Equity Tier 1 is a preliminary estimate.

³ Tangible common equity and return on average tangible common equity are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” tables on page 36.

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Selected Financial Information

				Quarter ended		Year ended Dec. 31,
	Dec 31, 2019			Sep 30, 2019	Dec 31, 2018	2019	2018
Earnings
Diluted earnings per common share	$	0.60		0.92	1.21	4.05	4.28
Wells Fargo net income (in billions)	2.87			4.61	6.06	19.55	22.39
Return on assets (ROA)	0.59		%	0.95	1.28	1.02	1.19
Return on equity (ROE)	5.91			9.00	12.89	10.23	11.53
Return on average tangible common equity (ROTCE)	7.08			10.70	15.39	12.20	13.73
Asset Quality
Net charge-offs (annualized) as a % of average total loans	0.32		%	0.27	0.30	0.29	0.29
Allowance for credit losses as a % of total loans	1.09			1.11	1.12	1.09	1.12
Allowance for credit losses as a % of annualized net charge-offs	343			415	374	379	390
Other
Revenue (in billions)	$	19.9		22.0	21.0	85.1	86.4
Efficiency ratio (b)	78.6		%	69.1	63.6	68.4	65.0
Average loans (in billions)	$	956.5		949.8	946.3	951.0	945.2
Average deposits (in billions)	1,321.9			1,291.4	1,268.9	1,286.3	1,275.9
Net interest margin	2.53		%	2.66	2.94	2.73	2.91

(a) Tangible common equity and return on average tangible common equity are non-GAAP financial measures. 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).

SAN FRANCISCO – January 14, 2020 – Wells Fargo & Company (NYSE:WFC) reported net income of $2.9 billion, or $0.60 per diluted common share, for fourth quarter 2019, compared with $6.1 billion, or $1.21 per share, for fourth quarter 2018, and $4.6 billion, or $0.92 per share, for third quarter 2019.

Chief Executive Officer and President Charlie Scharf said, “Wells Fargo is a wonderful and important franchise that has made some serious mistakes, and my mandate is to make the fundamental changes necessary to regain the full trust and respect of all stakeholders.” 

“During my first three months at Wells Fargo my primary focus has been on advancing our required regulatory work with a different sense of urgency and resolve, while beginning to develop a path to improve our financial results. This work is necessary to build the appropriate foundation for us to move forward. Wells Fargo plays an important role for our country, and we know that ultimately our actions and results will dictate when that trust is fully regained. And while the work is substantial, I am confident that with the appropriate prioritization of resources, processes, and management attention, we can accomplish what is expected of us," Mr. Scharf added. 

"In addition, even in my short time at the company, it is clear that our opportunities to improve our performance are substantial when we finish this work. Our cost structure is too high, and I believe there are many areas where we will be able to increase our rate of growth. While it is too early to put time frames around these goals, we will be diligent in pursuing them and I am confident the opportunities are meaningful,” Mr. Scharf concluded.

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $2.9 billion of net income in the fourth quarter and diluted earnings per share of $0.60, which included the impact of $1.5 billion, or $(0.33) per share, of litigation accruals for a variety of matters, including previously disclosed retail sales practices matters. Our net interest income declined in the fourth quarter driven predominantly by the impact of the lower interest rate environment. In addition, while we are spending what is necessary in order to improve risk management, our other expenses were too

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high and becoming more efficient remains a top priority. However, we continued to have positive business trends with both loans and deposits growing from the third quarter and a year ago. We also saw increases from the third quarter and a year ago in primary consumer checking customers, debit and credit card usage, Wealth and Investment Management total client assets, and Investment Banking market share. Our net charge-off rate remained near historic lows, and our capital levels were strong even as we returned $9 billion to shareholders through common stock dividends and net share repurchases in the fourth quarter, reducing common shares outstanding by 10% compared with a year ago.”

Net Interest Income

Net interest income in the fourth quarter was $11.2 billion, down $425 million from third quarter 2019, predominantly due to balance sheet repricing driven by the impact of the lower interest rate environment, unfavorable hedge ineffectiveness accounting results, and higher mortgage-backed securities (MBS) premium amortization, partially offset by the benefit of balance sheet growth.

The net interest margin was 2.53%, down 13 basis points from the prior quarter predominantly due to balance sheet repricing driven by the impact of the lower interest rate environment, unfavorable hedge ineffectiveness accounting results, and higher MBS premium amortization.

Noninterest Income

Noninterest income in the fourth quarter was $8.7 billion, down $1.7 billion from third quarter 2019. Fourth quarter noninterest income included lower other income, market sensitive revenue⁴, and other fees, partially offset by higher mortgage banking income and service charges on deposit accounts.

• Other fees were $656 million, down $202 million compared with third quarter 2019, primarily due to lower commercial real estate brokerage commissions as a result of the sale of our commercial real estate brokerage business, Eastdil Secured (Eastdil), on October 1, 2019.

• Mortgage banking income was $783 million, up from $466 million in third quarter 2019. Net mortgage servicing income was $23 million, up from a loss of $142 million in the third quarter which included a residential mortgage servicing rights asset valuation adjustment reflecting the impact of higher prepayment rates. Net gains on mortgage loan origination and sales activities were $760 million, up from $608 million in the third quarter, primarily due to an increase in residential held-for-sale mortgage loan originations to $42 billion from $38 billion in the third quarter and higher gains associated with exercising servicer cleanup calls in the fourth quarter. The production margin on residential held-for-sale mortgage loan originations⁵ was 1.21%, flat compared with the third quarter.

• Market sensitive revenue⁴ was $574 million, down from $1.2 billion in third quarter 2019, predominantly due to lower net gains from equity securities from our affiliated venture capital and private equity partnerships, and lower net gains from trading activities. Fourth quarter 2019 net gains from equity securities included $236 million from deferred compensation plan investment results (largely offset by employee benefits expense).

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

⁵ Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the “Selected Five Quarter Residential Mortgage Production Data” table on page 42 for more information.

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• Other income was $335 million, down $1.2 billion from the prior quarter. Third quarter 2019 included a $1.1 billion gain from the sale of our Institutional Retirement and Trust (IRT) business. Fourth quarter 2019 included a $362 million gain from the sale of Eastdil.

Noninterest Expense

Noninterest expense in the fourth quarter was $15.6 billion, up $415 million from the prior quarter. Fourth quarter noninterest expense included higher employee benefits expense driven by $263 million of deferred compensation expense (largely offset by net gains from equity securities) and higher equipment expense driven by higher capitalized software impairment expense, and higher computer software licensing and maintenance costs. Additionally, operating losses of $1.9 billion in fourth quarter 2019 were flat compared with third quarter 2019, and included $1.5 billion of litigation accruals in the fourth quarter for a variety of matters, including previously disclosed retail sales practices matters.

Income Taxes

The Company’s effective income tax rate was 19.1% for fourth quarter 2019 and included net discrete income tax expense of $303 million predominantly related to the non-tax deductible treatment of certain litigation accruals. The effective income tax rate in third quarter 2019 was 22.1% and included net discrete income tax expense of $443 million predominantly related to the non-tax deductible treatment of a litigation accrual. The Company's full year 2019 effective income tax rate was 17.5% (15.7% before discrete items).

Loans

Average loans were $956.5 billion in the fourth quarter, up $6.8 billion from the third quarter. Period-end loan balances were $962.3 billion at December 31, 2019, up $7.4 billion from September 30, 2019. Commercial loans were up $3.4 billion compared with September 30, 2019, predominantly due to $3.3 billion of growth in commercial and industrial loans. Consumer loans increased $4.0 billion from the prior quarter, reflecting the following:

• Real estate 1-4 family first mortgage loans increased$3.2 billion, as $17.8 billion of held-for-investment mortgage loan originations and the purchase of $2.3 billion of loans as a result of exercising servicer cleanup calls were partially offset by paydowns

• Real estate 1-4 family junior lien mortgage loans decreased$1.3 billion, as paydowns continued to exceed originations

• Credit card loans increased$1.4 billion, primarily due to seasonality

• Automobile loans increased$1.1 billion, driven by $6.8 billion of originations

Period-End Loan Balances

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019		Dec 31, 2018
Commercial	$	515,719	512,332	512,245	512,226		513,405
Consumer	446,546		442,583	437,633	436,023		439,705
Total loans	$	962,265	954,915	949,878	948,249		953,110
Change from prior quarter	$	7,350	5,037	1,629	(4,861	)	10,810

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Debt and Equity Securities

Debt securities include available-for-sale and held-to-maturity debt securities, as well as debt securities held for trading. Period-end debt securities were $497.1 billion at December 31, 2019, down $6.4 billion from the third quarter driven by a $7.0 billion decrease in debt securities available-for-sale and held-to-maturity, as purchases of approximately $15.6 billion, primarily federal agency MBS in the available-for-sale portfolio, were more than offset by runoff and sales.

Net unrealized gains on available-for-sale debt securities were $3.4 billion at December 31, 2019, compared with $3.1 billion at September 30, 2019, primarily due to tighter credit spreads, partially offset by higher long-term interest rates in the fourth quarter.

Equity securities include marketable and non-marketable equity securities, as well as equity securities held for trading. Period-end equity securities were $68.2 billion at December 31, 2019, up $4.4 billion from the third quarter.

Deposits

Total average deposits for fourth quarter 2019 were $1.3 trillion, up $30.5 billion from the prior quarter driven by growth in both commercial and consumer deposits. The average deposit cost for fourth quarter 2019 was 62 basis points, down 9 basis points from the prior quarter and up 7 basis points from a year ago.

Capital

The Company's Common Equity Tier 1 ratio was 11.1%² and continued to exceed both the regulatory minimum of 9% and our current internal target of 10%. In fourth quarter 2019, the Company repurchased 141.1 million shares of its common stock, which, net of issuances, reduced period-end common shares outstanding by 134.7 million. The Company paid a quarterly common stock dividend of $0.51 per share.

As of December 31, 2019, our eligible external total loss absorbing capacity (TLAC) as a percentage of total risk-weighted assets was 23.2%⁶, compared with the required minimum of 22.0%.

⁶ The TLAC ratio is a preliminary estimate.

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Credit Quality

Net Loan Charge-offs

The quarterly loss rate in the fourth quarter was 0.32% (annualized), up from 0.27% in the prior quarter and 0.30% a year ago. Commercial and consumer losses were 0.16% and 0.51%, respectively. Total credit losses were $769 million in fourth quarter 2019, up $124 million from third quarter 2019. Commercial losses increased $64 million largely driven by lower recoveries and higher lease financing losses primarily related to railcar leases. Consumer losses increased $60 million primarily due to seasonality in the credit card, automobile, and other revolving credit and installment portfolios.

Net Loan Charge-Offs

	Quarter ended
	December 31, 2019					September 30, 2019					December 31, 2018
($ 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	$	168		0.19	%	$	147		0.17	%	$	132		0.15	%
Real estate mortgage	4			0.01		(8		)	(0.02	)	(12		)	(0.04	)
Real estate construction	—			—		(8		)	(0.14	)	(1		)	(0.01	)
Lease financing	31			0.63		8			0.17		13			0.26
Total commercial	203			0.16		139			0.11		132			0.10
Consumer:
Real estate 1-4 family first mortgage	(3		)	—		(5		)	(0.01	)	(22		)	(0.03	)
Real estate 1-4 family junior lien mortgage	(16		)	(0.20	)	(22		)	(0.28	)	(10		)	(0.11	)
Credit card	350			3.48		319			3.22		338			3.54
Automobile	87			0.73		76			0.65		133			1.16
Other revolving credit and installment	148			1.71		138			1.60		150			1.64
Total consumer	566			0.51		506			0.46		589			0.53
Total	$	769		0.32	%	$	645		0.27	%	$	721		0.30	%

(a) Quarterly net charge-offs (recoveries) as a percentage of average loans are annualized.

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Nonperforming Assets

Nonperforming assets decreased $333 million, or 6%, from third quarter 2019 to $5.6 billion. Nonaccrual loans decreased $199 million from third quarter 2019 to $5.3 billion. Commercial nonaccrual loans decreased $58 million, while consumer nonaccrual loans decreased $141 million largely driven by lower nonaccruals in the real estate 1-4 family mortgage portfolios.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)

	December 31, 2019					September 30, 2019					December 31, 2018
($ 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	$	1,545		0.44	%	$	1,539		0.44	%	$	1,486		0.42	%
Real estate mortgage	573			0.47		669			0.55		580			0.48
Real estate construction	41			0.21		32			0.16		32			0.14
Lease financing	95			0.48		72			0.37		90			0.46
Total commercial	2,254			0.44		2,312			0.45		2,188			0.43
Consumer:
Real estate 1-4 family first mortgage	2,150			0.73		2,261			0.78		3,183			1.12
Real estate 1-4 family junior lien mortgage	796			2.70		819			2.66		945			2.75
Automobile	106			0.22		110			0.24		130			0.29
Other revolving credit and installment	40			0.12		43			0.12		50			0.14
Total consumer	3,092			0.69		3,233			0.73		4,308			0.98
Total nonaccrual loans	5,346			0.56		5,545			0.58		6,496			0.68
Foreclosed assets:
Government insured/guaranteed	50					59					88
Non-government insured/guaranteed	253					378					363
Total foreclosed assets	303					437					451
Total nonperforming assets	$	5,649		0.59	%	$	5,982		0.63	%	$	6,947		0.73	%
Change from prior quarter:
Total nonaccrual loans	$	(199	)			$	(377	)			$	(218	)
Total nonperforming assets	(333		)			(317		)			(289		)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $10.5 billion at December 31, 2019, down $157 million from September 30, 2019, and included a $125 million reserve release¹ in fourth quarter 2019, primarily due to improved credit performance in the consumer loan portfolio and a higher probability of slightly more favorable economic conditions. The allowance coverage for total loans was 1.09%, compared with 1.11% in third quarter 2019. The allowance covered 3.4 times annualized fourth quarter net charge-offs, compared with 4.1 times in the prior quarter. The allowance coverage for nonaccrual loans was 196% at December 31, 2019, compared with 191% at September 30, 2019.

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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, 2019		Sep 30, 2019	Dec 31, 2018
Community Banking	$	429	999	3,169
Wholesale Banking	2,493		2,644	2,671
Wealth and Investment Management	254		1,280	689

Community Bankingoffers 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 (including funds transfer pricing, capital, liquidity and certain corporate expenses) 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, 2019		Sep 30, 2019	Dec 31, 2018
Total revenue	$	10,522	11,239	11,461
Provision for credit losses	522		608	534
Noninterest expense	9,029		8,766	7,032
Segment net income	429		999	3,169
(in billions)
Average loans	462.5		459.0	459.7
Average assets	1,039.3		1,033.9	1,015.9
Average deposits	794.6		789.7	759.4

Fourth Quarter 2019 vs. Third Quarter 2019

• Net income of $429 million, down$570 million, or 57%

• Revenue of $10.5 billion, down$717 million, or 6%, driven by lower net interest income, net gains from equity securities, and gains from the sale of purchased credit-impaired (PCI) residential mortgage loans, partially offset by higher mortgage banking income

• Noninterest expense of $9.0 billionincreased$263 million, or 3%, predominantly driven by higher personnel expense

• Provision for credit losses decreased$86 million, reflecting a reserve release¹ in fourth quarter 2019, compared with a reserve build¹ in third quarter 2019, partially offset by seasonally higher net charge-offs mostly in the credit card and automobile portfolios

Fourth Quarter 2019 vs. Fourth Quarter 2018

• Net income down$2.7 billion, or 86%

• Revenue down$939 million, or 8%, driven by lower net interest income and gains from the sale of PCI residential mortgage loans, partially offset by higher mortgage banking income, net gains from equity securities, and service charges on deposit accounts

• Noninterest expense increased$2.0 billion, or 28%, predominantly due to higher operating losses reflecting litigation accruals for a variety of matters, as well as higher personnel expense, partially offset by lower other expense and core deposit and other intangibles amortization expense

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Business Metrics and Highlights

• Primary consumer checking customers^7,8of 24.4 million, up 2.0% from a year ago

• Branch customer experience surveys completed during fourth quarter 2019 reflected higher year-over-year scores for both ‘Customer Loyalty’ and ‘Overall Satisfaction with Most Recent Visit’

• Debit card point-of-sale purchase volume⁹ of $95.2 billion in the fourth quarter, up 6% year-over-year

• General purpose credit card point-of-sale purchase volume of $21.0 billion in the fourth quarter, up 4% year-over-year

• 30.3 million digital (online and mobile) active customers, including 24.4 million mobile active customers^8, 10

• 5,352 retail bank branches as of the end of fourth quarter 2019, reflecting 174 branch consolidations in 2019

• Home Lending

◦ Originations of $60 billion, up from $58 billion in the prior quarter, driven by lower mortgage loan interest rates

▪ Originations of loans held-for-sale and loans held-for-investment were $42 billion and $18 billion, respectively

◦ Production margin on residential held-for-sale mortgage loan originations⁵ of 1.21%, flat compared with the prior quarter

◦ Applications of $72 billion, down from $85 billion in the prior quarter, driven primarily by seasonality

◦ Unclosed application pipeline of $33 billion at quarter end, down from $44 billion in the prior quarter, driven primarily by seasonality

• Automobile originations of $6.8 billion in the fourth quarter, up 45% from the prior year, reflecting our renewed emphasis on growing auto loans following the restructuring of the business

• For the 17th consecutive year, America's #1 small business lender and #1 lender to small businesses in low-and moderate-income areas (loans under $1 million; 2018 Community Reinvestment Act data, released December 2019)

⁷ Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.

⁸ Data as of November 2019, comparisons with November 2018.

⁹ Combined consumer and business debit card purchase volume dollars.

¹⁰ Digital and mobile active customers is the number of consumer and small business customers who have logged on via a digital or mobile device in the prior 90 days.

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Wholesale Bankingprovides 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, Credit Investment Portfolio, Treasury Management, and Commercial Capital.

Selected Financial Information

	Quarter ended
(in millions)	Dec 31, 2019		Sep 30, 2019	Dec 31, 2018
Total revenue	$	6,559	6,942	6,926
Provision (reversal of provision) for credit losses	124		92	(28	)
Noninterest expense	3,743		3,889	4,025
Segment net income	2,493		2,644	2,671
(in billions)
Average loans	476.5		474.3	470.2
Average assets	877.6		869.2	839.1
Average deposits	447.4		422.0	421.6

Fourth Quarter 2019 vs. Third Quarter 2019

• Net income of $2.5 billion, down$151 million, or 6%

• Revenue of $6.6 billion, down$383 million, or 6%, driven by lower net interest income and lower commercial real estate brokerage fees due to the sale of Eastdil, as well as declines in market sensitive revenue⁴, lease income, and investment banking fees. These decreases were partially offset by higher other income, which included a $362 million gain from the sale of Eastdil

• Noninterest expense of $3.7 billion decreased $146 million, or 4%, reflecting the sale of Eastdil

Fourth Quarter 2019 vs. Fourth Quarter 2018

• Net income down$178 million, or 7%

• Revenue down$367 million, or 5%, predominantly due to lower net interest income, commercial real estate brokerage fees due to the sale of Eastdil, and lease income. These decreases were partially offset by higher other income, which included a $362 million gain from the sale of Eastdil, as well as higher market sensitive revenue⁴, investment banking fees, and mortgage banking income

• Noninterest expense decreased$282 million, or 7%, reflecting the sale of Eastdil, as well as lower lease expense and core deposit and other intangibles amortization expense, partially offset by higher regulatory and risk related expense

• Provision for credit losses increased $152 million, reflecting lower recoveries, a lower reserve release¹, and higher lease financing losses

Business Metrics and Highlights

• Commercial card spend volume¹¹ of $8.8 billion, up 1% from the prior year on increased transaction volumes

• 2.0 billion of ACH payment transactions originated¹², up 13% from the prior year, and up 6% from third quarter 2019

• U.S. investment banking market share of 3.7% in 2019¹³, compared with 3.2% in 2018¹³ 

• #1 Treasury Management provider¹⁴

¹¹ Includes commercial card volume for the entire company.

¹² Includes ACH payment transactions originated by the entire company.

¹³ Source: Dealogic U.S. investment banking fee market share.

¹⁴ 2019 Ernst & Young Annual Cash Management Services survey (November 2019); measured by "fee-equivalent revenue".

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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, 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 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, 2019			Sep 30, 2019	Dec 31, 2018
Total revenue	$	4,071		5,141	3,957
Provision (reversal of provision) for credit losses	(1		)	3	(3	)
Noninterest expense	3,729			3,431	3,044
Segment net income	254			1,280	689
(in billions)
Average loans	77.1			75.9	75.2
Average assets	85.5			84.7	83.6
Average deposits	145.0			142.4	155.5

Fourth Quarter 2019 vs. Third Quarter 2019

• Net income of $254 million, down$1.0 billion, or 80%

• Revenue of $4.1 billion, down$1.1 billion, or 21%, predominantly due to a $1.1 billion gain from the sale of our IRT business in third quarter 2019 and lower net interest income in fourth quarter 2019, partially offset by higher net gains from equity securities on increased deferred compensation plan investment results (largely offset by employee benefits expense) in fourth quarter 2019

• Noninterest expense of $3.7 billionincreased$298 million, or 9%, primarily due to higher operating losses, higher employee benefits expense from increased deferred compensation plan expense (largely offset by net gains from equity securities), and higher equipment expense related to the strategic reassessment of technology projects

Fourth Quarter 2019 vs. Fourth Quarter 2018

• Net income down$435 million, or 63%

• Revenue increased $114 million, or 3%, primarily driven by higher net gains from equity securities on increased deferred compensation plan investment results (largely offset by employee benefits expense) and higher retail brokerage advisory fees, partially offset by lower net interest income

• Noninterest expense increased$685 million, or 23%, primarily driven by higher employee benefits expense from increased deferred compensation plan expense (largely offset by net gains from equity securities), higher operating losses, higher equipment expense related to the strategic reassessment of technology projects, and higher regulatory, risk and technology expense, partially offset by lower core deposit and other intangibles amortization expense

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Business Metrics and Highlights

Total WIM Segment

• WIM total client assets of $1.9 trillion, up 10% from a year ago, primarily due to higher market valuations, partially offset by net outflows in the Correspondent Clearing business

• Average loan balances up 3% compared with a year ago

• Fourth quarter 2019 closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) up 18% compared with fourth quarter 2018

Retail Brokerage

• Client assets of $1.6 trillion, up 11% from the prior year, primarily due to higher market valuations, partially offset by net outflows in the Correspondent Clearing business

• Advisory assets of $590 billion, up 18% from the prior year, primarily due to higher market valuations, partially offset by net outflows in the Correspondent Clearing business

• IRA assets of $435 billion, up 16% from the prior year

Wealth Management

• Client assets of $240 billion, up 7% from the prior year

Asset Management

• Total assets under management of $509 billion, up 9% from the prior year, primarily driven by higher market valuations and money market fund net inflows, partially offset by equity and fixed income net outflows

Conference Call

The Company will host a live conference call on Tuesday, January 14, at 7:00 a.m. PT (10:00 a.m. ET). You may listen to the call by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online athttps://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and

https://engage.vevent.com/rt/wells_fargo_ao~4599629.

A replay of the conference call will be available beginning at 11:00 a.m. PT (2:00 p.m. ET) on Tuesday, January 14 through Tuesday, January 28. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #4599629. 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~4599629.

- 13 -

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;

• developments in our mortgage banking business, including the extent of the success of our mortgage loan modification efforts, the amount of mortgage loan repurchase demands that we receive, any negative effects relating to our mortgage servicing, loan modification or foreclosure practices, and the effects of regulatory or judicial requirements or guidance impacting our mortgage banking business and any changes in industry standards;

• 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;

- 14 -

• 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, 2018.

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, 2018, 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.

- 15 -

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 7,400 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 260,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations.

Contact Information

Media

Peter Gilchrist, 704-715-3213

peter.gilchrist@wellsfargo.com

Ancel Martinez, 415-222-3858

ancel.martinez@wellsfargo.com

or

Investor Relations

John M. Campbell, 415-396-0523

john.m.campbell@wellsfargo.com

# # #

- 16 -

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
Five Quarter Deferred Compensation Plan Investment Results	27
Balance Sheet
Consolidated Balance Sheet	28
Trading Activities	30
Debt Securities	30
Equity Securities	31
Loans
Loans	32
Nonperforming Assets	33
Loans 90 Days or More Past Due and Still Accruing	33
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

- 17 -

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA

	Quarter ended					% Change Dec 31, 2019 from				Year ended
($ in millions, except per share amounts)	Dec 31, 2019			Sep 30, 2019	Dec 31, 2018	Sep 30, 2019		Dec 31, 2018		Dec 31, 2019			Dec 31, 2018	% Change
For the Period
Wells Fargo net income	$	2,873		4,610	6,064	(38	)%	(53	)	$	19,549		22,393	(13	)%
Wells Fargo net income applicable to common stock	2,546			4,037	5,711	(37	)	(55	)	17,938			20,689	(13	)
Diluted earnings per common share	0.60			0.92	1.21	(35	)	(50	)	4.05			4.28	(5	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	0.59		%	0.95	1.28	(38	)	(54	)	1.02		%	1.19	(14	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	5.91			9.00	12.89	(34	)	(54	)	10.23			11.53	(11	)
Return on average tangible common equity (ROTCE)(1)	7.08			10.70	15.39	(34	)	(54	)	12.20			13.73	(11	)
Efficiency ratio (2)	78.6			69.1	63.6	14		24		68.4			65.0	5
Total revenue	$	19,860		22,010	20,980	(10	)	(5	)	$	85,063		86,408	(2	)
Pre-tax pre-provision profit (PTPP) (3)	4,246			6,811	7,641	(38	)	(44	)	26,885			30,282	(11	)
Dividends declared per common share	0.51			0.51	0.43	—		19		1.92			1.64	17
Average common shares outstanding	4,197.1			4,358.5	4,665.8	(4	)	(10	)	4,393.1			4,799.7	(8	)
Diluted average common shares outstanding	4,234.6			4,389.6	4,700.8	(4	)	(10	)	4,425.4			4,838.4	(9	)
Average loans	$	956,536		949,760	946,336	1		1		$	950,956		945,197	1
Average assets	1,941,843			1,927,415	1,879,047	1		3		1,913,444			1,888,892	1
Average total deposits	1,321,913			1,291,375	1,268,948	2		4		1,286,261			1,275,857	1
Average consumer and small business banking deposits (4)	763,169			749,529	736,295	2		4		749,967			747,183	—
Net interest margin	2.53		%	2.66	2.94	(5	)	(14	)	2.73		%	2.91	(6	)
At Period End
Debt securities	$	497,125		503,528	484,689	(1	)	3		$	497,125		484,689	3
Loans	962,265			954,915	953,110	1		1		962,265			953,110	1
Allowance for loan losses	9,551			9,715	9,775	(2	)	(2	)	9,551			9,775	(2	)
Goodwill	26,390			26,388	26,418	—		—		26,390			26,418	—
Equity securities	68,241			63,884	55,148	7		24		68,241			55,148	24
Assets	1,927,555			1,943,950	1,895,883	(1	)	2		1,927,555			1,895,883	2
Deposits	1,322,626			1,308,495	1,286,170	1		3		1,322,626			1,286,170	3
Common stockholders' equity	166,669			172,827	174,359	(4	)	(4	)	166,669			174,359	(4	)
Wells Fargo stockholders’ equity	187,146			193,304	196,166	(3	)	(5	)	187,146			196,166	(5	)
Total equity	187,984			194,416	197,066	(3	)	(5	)	187,984			197,066	(5	)
Tangible common equity (1)	138,506			144,481	145,980	(4	)	(5	)	138,506			145,980	(5	)
Common shares outstanding	4,134.4			4,269.1	4,581.3	(3	)	(10	)	4,134.4			4,581.3	(10	)
Book value per common share (5)	$	40.31		40.48	38.06	—		6		$	40.31		38.06	6
Tangible book value per common share (1)(5)	33.50			33.84	31.86	(1	)	5		33.50			31.86	5
Team members (active, full-time equivalent)	259,800			261,400	258,700	(1	)	—		259,800			258,700	—

(1) Tangible common equity, return on average tangible common equity, and tangible book value per common share are non-GAAP financial measures. 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) 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.

- 18 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA

	Quarter ended
($ in millions, except per share amounts)	Dec 31, 2019			Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
For the Quarter
Wells Fargo net income	$	2,873		4,610	6,206	5,860	6,064
Wells Fargo net income applicable to common stock	2,546			4,037	5,848	5,507	5,711
Diluted earnings per common share	0.60			0.92	1.30	1.20	1.21
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	0.59		%	0.95	1.31	1.26	1.28
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	5.91			9.00	13.26	12.71	12.89
Return on average tangible common equity (ROTCE)(1)	7.08			10.70	15.78	15.16	15.39
Efficiency ratio (2)	78.6			69.1	62.3	64.4	63.6
Total revenue	$	19,860		22,010	21,584	21,609	20,980
Pre-tax pre-provision profit (PTPP) (3)	4,246			6,811	8,135	7,693	7,641
Dividends declared per common share	0.51			0.51	0.45	0.45	0.43
Average common shares outstanding	4,197.1			4,358.5	4,469.4	4,551.5	4,665.8
Diluted average common shares outstanding	4,234.6			4,389.6	4,495.0	4,584.0	4,700.8
Average loans	$	956,536		949,760	947,460	950,010	946,336
Average assets	1,941,843			1,927,415	1,900,627	1,883,091	1,879,047
Average total deposits	1,321,913			1,291,375	1,268,979	1,262,062	1,268,948
Average consumer and small business banking deposits (4)	763,169			749,529	742,671	739,654	736,295
Net interest margin	2.53		%	2.66	2.82	2.91	2.94
At Quarter End
Debt securities	$	497,125		503,528	482,067	483,467	484,689
Loans	962,265			954,915	949,878	948,249	953,110
Allowance for loan losses	9,551			9,715	9,692	9,900	9,775
Goodwill	26,390			26,388	26,415	26,420	26,418
Equity securities	68,241			63,884	61,537	58,440	55,148
Assets	1,927,555			1,943,950	1,923,388	1,887,792	1,895,883
Deposits	1,322,626			1,308,495	1,288,426	1,264,013	1,286,170
Common stockholders' equity	166,669			172,827	177,235	176,025	174,359
Wells Fargo stockholders’ equity	187,146			193,304	199,042	197,832	196,166
Total equity	187,984			194,416	200,037	198,733	197,066
Tangible common equity (1)	138,506			144,481	148,864	147,723	145,980
Common shares outstanding	4,134.4			4,269.1	4,419.6	4,511.9	4,581.3
Book value per common share (5)	$	40.31		40.48	40.10	39.01	38.06
Tangible book value per common share (1)(5)	33.50			33.84	33.68	32.74	31.86
Team members (active, full-time equivalent)	259,800			261,400	262,800	262,100	258,700

(1) Tangible common equity, return on average tangible common equity, and tangible book value per common share are non-GAAP financial measures. 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) 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.

- 19 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME

	Quarter ended December 31,				%		Year ended December 31,			%
(in millions, except per share amounts)	2019			2018	Change		2019		2018	Change
Interest income
Debt securities	$	3,567		3,803	(6	)%	$	14,955	14,406	4	%
Mortgage loans held for sale	234			190	23		813		777	5
Loans held for sale	15			33	(55	)	79		140	(44	)
Loans	10,494			11,367	(8	)	44,146		43,974	—
Equity securities	269			260	3		962		992	(3	)
Other interest income	1,016			1,268	(20	)	5,128		4,358	18
Total interest income	15,595			16,921	(8	)	66,083		64,647	2
Interest expense
Deposits	2,072			1,765	17		8,635		5,622	54
Short-term borrowings	439			546	(20	)	2,316		1,717	35
Long-term debt	1,743			1,802	(3	)	7,350		6,703	10
Other interest expense	141			164	(14	)	551		610	(10	)
Total interest expense	4,395			4,277	3		18,852		14,652	29
Net interest income	11,200			12,644	(11	)	47,231		49,995	(6	)
Provision for credit losses	644			521	24		2,687		1,744	54
Net interest income after provision for credit losses	10,556			12,123	(13	)	44,544		48,251	(8	)
Noninterest income
Service charges on deposit accounts	1,279			1,176	9		4,798		4,716	2
Trust and investment fees	3,572			3,520	1		14,072		14,509	(3	)
Card fees	1,020			981	4		4,016		3,907	3
Other fees	656			888	(26	)	3,084		3,384	(9	)
Mortgage banking	783			467	68		2,715		3,017	(10	)
Insurance	98			109	(10	)	378		429	(12	)
Net gains from trading activities	131			10	NM		993		602	65
Net gains (losses) on debt securities	(8		)	9	NM		140		108	30
Net gains from equity securities	451			21	NM		2,843		1,515	88
Lease income	343			402	(15	)	1,612		1,753	(8	)
Other	335			753	(56	)	3,181		2,473	29
Total noninterest income	8,660			8,336	4		37,832		36,413	4
Noninterest expense
Salaries	4,721			4,545	4		18,382		17,834	3
Commission and incentive compensation	2,651			2,427	9		10,828		10,264	5
Employee benefits	1,436			706	103		5,874		4,926	19
Equipment	802			643	25		2,763		2,444	13
Net occupancy	749			735	2		2,945		2,888	2
Core deposit and other intangibles	26			264	(90	)	108		1,058	(90	)
FDIC and other deposit assessments	130			153	(15	)	526		1,110	(53	)
Other	5,099			3,866	32		16,752		15,602	7
Total noninterest expense	15,614			13,339	17		58,178		56,126	4
Income before income tax expense	3,602			7,120	(49	)	24,198		28,538	(15	)
Income tax expense	678			966	(30	)	4,157		5,662	(27	)
Net income before noncontrolling interests	2,924			6,154	(52	)	20,041		22,876	(12	)
Less: Net income from noncontrolling interests	51			90	(43	)	492		483	2
Wells Fargo net income	$	2,873		6,064	(53	)	$	19,549	22,393	(13	)
Less: Preferred stock dividends and other	327			353	(7	)	1,611		1,704	(5	)
Wells Fargo net income applicable to common stock	$	2,546		5,711	(55	)	$	17,938	20,689	(13	)
Per share information
Earnings per common share	$	0.61		1.22	(50	)	$	4.08	4.31	(5	)
Diluted earnings per common share	0.60			1.21	(50	)	4.05		4.28	(5	)
Average common shares outstanding	4,197.1			4,665.8	(10	)	4,393.1		4,799.7	(8	)
Diluted average common shares outstanding	4,234.6			4,700.8	(10	)	4,425.4		4,838.4	(9	)

NM - Not meaningful

- 20 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME

	Quarter ended
(in millions, except per share amounts)	Dec 31, 2019			Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Interest income
Debt securities	$	3,567		3,666	3,781	3,941	3,803
Mortgage loans held for sale	234			232	195	152	190
Loans held for sale	15			20	20	24	33
Loans	10,494			10,982	11,316	11,354	11,367
Equity securities	269			247	236	210	260
Other interest income	1,016			1,352	1,438	1,322	1,268
Total interest income	15,595			16,499	16,986	17,003	16,921
Interest expense
Deposits	2,072			2,324	2,213	2,026	1,765
Short-term borrowings	439			635	646	596	546
Long-term debt	1,743			1,780	1,900	1,927	1,802
Other interest expense	141			135	132	143	164
Total interest expense	4,395			4,874	4,891	4,692	4,277
Net interest income	11,200			11,625	12,095	12,311	12,644
Provision for credit losses	644			695	503	845	521
Net interest income after provision for credit losses	10,556			10,930	11,592	11,466	12,123
Noninterest income
Service charges on deposit accounts	1,279			1,219	1,206	1,094	1,176
Trust and investment fees	3,572			3,559	3,568	3,373	3,520
Card fees	1,020			1,027	1,025	944	981
Other fees	656			858	800	770	888
Mortgage banking	783			466	758	708	467
Insurance	98			91	93	96	109
Net gains from trading activities	131			276	229	357	10
Net gains (losses) on debt securities	(8		)	3	20	125	9
Net gains from equity securities	451			956	622	814	21
Lease income	343			402	424	443	402
Other	335			1,528	744	574	753
Total noninterest income	8,660			10,385	9,489	9,298	8,336
Noninterest expense
Salaries	4,721			4,695	4,541	4,425	4,545
Commission and incentive compensation	2,651			2,735	2,597	2,845	2,427
Employee benefits	1,436			1,164	1,336	1,938	706
Equipment	802			693	607	661	643
Net occupancy	749			760	719	717	735
Core deposit and other intangibles	26			27	27	28	264
FDIC and other deposit assessments	130			93	144	159	153
Other	5,099			5,032	3,478	3,143	3,866
Total noninterest expense	15,614			15,199	13,449	13,916	13,339
Income before income tax expense	3,602			6,116	7,632	6,848	7,120
Income tax expense	678			1,304	1,294	881	966
Net income before noncontrolling interests	2,924			4,812	6,338	5,967	6,154
Less: Net income from noncontrolling interests	51			202	132	107	90
Wells Fargo net income	$	2,873		4,610	6,206	5,860	6,064
Less: Preferred stock dividends and other	327			573	358	353	353
Wells Fargo net income applicable to common stock	$	2,546		4,037	5,848	5,507	5,711
Per share information
Earnings per common share	$	0.61		0.93	1.31	1.21	1.22
Diluted earnings per common share	0.60			0.92	1.30	1.20	1.21
Average common shares outstanding	4,197.1			4,358.5	4,469.4	4,551.5	4,665.8
Diluted average common shares outstanding	4,234.6			4,389.6	4,495.0	4,584.0	4,700.8

- 21 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Quarter ended December 31,					%	Year ended December 31,					%
(in millions)	2019			2018		Change	2019			2018		Change
Wells Fargo net income	$	2,873		6,064		(53)%	$	19,549		22,393		(13)%
Other comprehensive income (loss), before tax:
Debt securities:
Net unrealized gains (losses) arising during the period	247			1,035		(76)	5,439			(4,493	)	NM
Reclassification of net losses to net income	88			80		10	122			248		(51)
Derivative and hedging activities:
Net unrealized losses arising during the period	(56		)	(116	)	(52)	(24		)	(532	)	(95)
Reclassification of net losses to net income	66			78		(15)	299			294		2
Defined benefit plans adjustments:
Net actuarial and prior service losses arising during the period	(36		)	(440	)	(92)	(40		)	(434	)	(91)
Amortization of net actuarial loss, settlements and other to net income	32			163		(80)	133			253		(47)
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period	70			(62	)	NM	73			(156	)	NM
Other comprehensive income (loss), before tax	411			738		(44)	6,002			(4,820	)	NM
Income tax benefit (expense) related to other comprehensive income	(83		)	(202	)	(59)	(1,458		)	1,144		NM
Other comprehensive income (loss), net of tax	328			536		(39)	4,544			(3,676	)	NM
Less: Other comprehensive loss from noncontrolling interests	—			(1	)	(100)	—			(2	)	(100)
Wells Fargo other comprehensive income (loss), net of tax	328			537		(39)	4,544			(3,674	)	NM
Wells Fargo comprehensive income	3,201			6,601		(52)	24,093			18,719		29
Comprehensive income from noncontrolling interests	51			89		(43)	492			481		2
Total comprehensive income	$	3,252		6,690		(51)	$	24,585		19,200		28

NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY

	Quarter ended
(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Balance, beginning of period	$	194,416		200,037		198,733		197,066		199,679
Cumulative effect from change in accounting policies (1)	—			—		—		(11	)	—
Wells Fargo net income	2,873			4,610		6,206		5,860		6,064
Wells Fargo other comprehensive income, net of tax	328			585		1,458		2,173		537
Noncontrolling interests	(274		)	117		94		1		(38	)
Common stock issued	341			278		399		1,139		239
Common stock repurchased	(7,367		)	(7,448	)	(4,898	)	(4,820	)	(7,299	)
Preferred stock redeemed (2)	—			(1,550	)	—		—		—
Preferred stock released by ESOP	—			142		193		—		268
Common stock warrants repurchased/exercised	—			—		—		—		(131	)
Common stock dividends	(2,145		)	(2,230	)	(2,015	)	(2,054	)	(2,016	)
Preferred stock dividends	(327		)	(353	)	(358	)	(353	)	(353	)
Stock incentive compensation expense	181			262		247		544		144
Net change in deferred compensation and related plans	(42		)	(34	)	(22	)	(812	)	(28	)
Balance, end of period	$	187,984		194,416		200,037		198,733		197,066

(1) Effective January 1, 2019, we adopted ASU 2016-02 – Leases (Topic 842) and subsequent related Updates and ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.

(2) Represents the impact of the partial redemption of preferred stock, Series K, in third quarter 2019.

- 22 -

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Quarter ended December 31,
	2019							2018
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Interest-earning deposits with banks	$	127,287		1.63	%	$	523	150,091		2.18	%	$	825
Federal funds sold and securities purchased under resale agreements	109,201			1.72		472		76,108		2.22		426
Debt securities (3):
Trading debt securities	103,818			3.12		811		90,110		3.52		794
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	15,636			1.79		70		7,195		1.80		32
Securities of U.S. states and political subdivisions	39,502			3.58		354		47,618		4.05		483
Mortgage-backed securities:
Federal agencies	161,146			2.58		1,038		155,322		2.91		1,128
Residential and commercial	4,745			4.40		53		6,666		4.87		81
Total mortgage-backed securities	165,891			2.63		1,091		161,988		2.99		1,209
Other debt securities	40,497			3.88		395		46,072		4.46		518
Total available-for-sale debt securities	261,526			2.92		1,910		262,873		3.41		2,242
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	45,109			2.19		248		44,747		2.19		247
Securities of U.S. states and political subdivisions	12,701			3.88		123		6,247		4.34		67
Federal agency and other mortgage-backed securities	95,303			2.49		593		95,748		2.46		589
Other debt securities	39			3.28		1		68		3.65		1
Total held-to-maturity debt securities	153,152			2.51		965		146,810		2.46		904
Total debt securities	518,496			2.84		3,686		499,793		3.15		3,940
Mortgage loans held for sale (4)	23,985			3.90		234		17,044		4.46		190
Loans held for sale (4)	1,365			4.13		15		1,992		6.69		33
Loans:
Commercial loans:
Commercial and industrial - U.S.	283,650			3.84		2,747		281,431		4.40		3,115
Commercial and industrial - Non-U.S.	67,307			3.40		577		62,035		3.73		584
Real estate mortgage	122,136			4.07		1,255		120,404		4.51		1,369
Real estate construction	20,076			4.71		239		23,090		5.32		310
Lease financing	19,421			4.41		214		19,519		4.48		219
Total commercial loans	512,590			3.90		5,032		506,479		4.39		5,597
Consumer loans:
Real estate 1-4 family first mortgage	292,388			3.66		2,678		285,260		4.02		2,868
Real estate 1-4 family junior lien mortgage	30,147			5.32		403		34,844		5.60		491
Credit card	39,898			12.26		1,233		37,858		12.69		1,211
Automobile	47,274			5.04		600		45,536		5.16		592
Other revolving credit and installment	34,239			6.60		571		36,359		6.95		637
Total consumer loans	443,946			4.92		5,485		439,857		5.25		5,799
Total loans (4)	956,536			4.37		10,517		946,336		4.79		11,396
Equity securities	38,278			2.81		269		37,412		2.79		261
Other	6,478			1.36		22		4,074		1.78		18
Total earning assets	$	1,781,626		3.51	%	$	15,738	1,732,850		3.93	%	$	17,089
Funding sources
Deposits:
Interest-bearing checking	$	63,292		1.09	%	$	174	53,983		1.21	%	$	165
Market rate and other savings	732,705			0.59		1,094		689,639		0.43		741
Savings certificates	32,358			1.68		137		21,955		0.87		48
Other time deposits	87,069			2.10		459		92,676		2.46		575
Deposits in non-U.S. offices	54,751			1.50		208		56,098		1.66		236
Total interest-bearing deposits	970,175			0.85		2,072		914,351		0.77		1,765
Short-term borrowings	115,949			1.50		439		105,962		2.04		546
Long-term debt	230,430			3.02		1,743		226,591		3.17		1,802
Other liabilities	27,279			2.04		141		27,365		2.41		164
Total interest-bearing liabilities	1,343,833			1.30		4,395		1,274,269		1.34		4,277
Portion of noninterest-bearing funding sources	437,793			—		—		458,581		—		—
Total funding sources	$	1,781,626		0.98		4,395		1,732,850		0.99		4,277
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.53	%	$	11,343			2.94	%	$	12,812
Noninterest-earning assets
Cash and due from banks	$	19,943						19,288
Goodwill	26,389							26,423
Other	113,885							100,486
Total noninterest-earning assets	$	160,217						146,197
Noninterest-bearing funding sources
Deposits	$	351,738						354,597
Other liabilities	53,879							51,739
Total equity	192,393							198,442
Noninterest-bearing funding sources used to fund earning assets	(437,793		)					(458,581	)
Net noninterest-bearing funding sources	$	160,217						146,197
Total assets	$	1,941,843						1,879,047

(1) Our average prime rate was 4.83% and 5.28% for the quarters ended December 31,2019 and 2018, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.93% and 2.62% for the same quarters, respectively.

(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $143 million and $168 million for the quarters ended December 31,2019 and 2018, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 21% for the periods presented.

- 23 -

Wells Fargo & Company and Subsidiaries

AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Year ended December 31,
	2019							2018
(in millions)	Average balance			Yields/ rates		Interest income/ expense		Average balance		Yields/ rates		Interest income/ expense
Earning assets
Interest-earning deposits with banks	$	135,741		2.12	%	$	2,875	156,366		1.82	%	$	2,854
Federal funds sold and securities purchased under resale agreements	99,286			2.18		2,164		78,547		1.82		1,431
Debt securities (3):
Trading debt securities	93,655			3.36		3,149		83,526		3.42		2,856
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	15,293			2.07		316		6,618		1.70		112
Securities of U.S. states and political subdivisions	44,203			3.87		1,709		47,884		3.77		1,806
Mortgage-backed securities:
Federal agencies	154,160			2.85		4,397		156,052		2.79		4,348
Residential and commercial	5,363			4.19		225		7,769		4.62		358
Total mortgage-backed securities	159,523			2.90		4,622		163,821		2.87		4,706
Other debt securities	43,675			4.23		1,846		46,875		4.22		1,980
Total available-for-sale debt securities	262,694			3.23		8,493		265,198		3.24		8,604
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	44,850			2.19		982		44,735		2.19		980
Securities of U.S. states and political subdivisions	8,644			3.97		343		6,253		4.34		271
Federal agency and other mortgage-backed securities	95,559			2.60		2,487		94,216		2.36		2,221
Other debt securities	52			3.71		2		361		4.00		15
Total held-to-maturity debt securities	149,105			2.56		3,814		145,565		2.40		3,487
Total debt securities	505,454			3.06		15,456		494,289		3.02		14,947
Mortgage loans held for sale (4)	19,808			4.10		813		18,394		4.22		777
Loans held for sale (4)	1,708			4.60		79		2,526		5.56		140
Loans:
Commercial loans:
Commercial and industrial - U.S.	284,888			4.25		12,107		275,656		4.16		11,465
Commercial and industrial - Non-U.S.	64,274			3.71		2,385		60,718		3.53		2,143
Real estate mortgage	121,813			4.40		5,356		122,947		4.29		5,279
Real estate construction	21,183			5.17		1,095		23,609		4.94		1,167
Lease financing	19,302			4.52		873		19,392		4.74		919
Total commercial loans	511,460			4.27		21,816		502,322		4.18		20,973
Consumer loans:
Real estate 1-4 family first mortgage	288,059			3.81		10,974		284,178		4.04		11,481
Real estate 1-4 family junior lien mortgage	31,989			5.63		1,800		36,687		5.38		1,975
Credit card	38,865			12.58		4,889		36,780		12.72		4,678
Automobile	45,901			5.15		2,362		48,115		5.18		2,491
Other revolving credit and installment	34,682			6.95		2,412		37,115		6.70		2,488
Total consumer loans	439,496			5.11		22,437		442,875		5.22		23,113
Total loans (4)	950,956			4.65		44,253		945,197		4.66		44,086
Equity securities	35,930			2.69		966		38,092		2.62		999
Other	5,579			1.62		90		5,071		1.46		74
Total earning assets	$	1,754,462		3.80	%	$	66,696	1,738,482		3.76	%	$	65,308
Funding sources
Deposits:
Interest-bearing checking	$	59,121		1.33	%	$	789	63,243		0.96	%	$	606
Market rate and other savings	705,957			0.59		4,132		684,882		0.31		2,157
Savings certificates	30,266			1.59		481		20,653		0.57		118
Other time deposits	93,368			2.46		2,295		84,822		2.25		1,906
Deposits in non-U.S. offices	53,438			1.75		938		63,945		1.30		835
Total interest-bearing deposits	942,150			0.92		8,635		917,545		0.61		5,622
Short-term borrowings	115,337			2.01		2,317		104,267		1.65		1,719
Long-term debt	232,491			3.16		7,350		224,268		2.99		6,703
Other liabilities	25,771			2.13		551		27,648		2.21		610
Total interest-bearing liabilities	1,315,749			1.43		18,853		1,273,728		1.15		14,654
Portion of noninterest-bearing funding sources	438,713			—		—		464,754		—		—
Total funding sources	$	1,754,462		1.07		18,853		1,738,482		0.85		14,654
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.73	%	$	47,843			2.91	%	$	50,654
Noninterest-earning assets
Cash and due from banks	$	19,558						18,777
Goodwill	26,409							26,453
Other	113,015							105,180
Total noninterest-earning assets	$	158,982						150,410
Noninterest-bearing funding sources
Deposits	$	344,111						358,312
Other liabilities	55,963							53,496
Total equity	197,621							203,356
Noninterest-bearing funding sources used to fund earning assets	(438,713		)					(464,754	)
Net noninterest-bearing funding sources	$	158,982						150,410
Total assets	$	1,913,444						1,888,892

(1) Our average prime rate was 5.28% and 4.91% for 2019 and 2018, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 2.33% and 2.31% 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) Yields and rates are based on interest income/expense amounts for the period. The average balance amounts represent amortized cost for the periods presented.

(4) Nonaccrual loans and related income are included in their respective loan categories.

(5) Includes taxable-equivalent adjustments of $612 million and $659 million for the 2019 and 2018, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate utilized was 21% for the periods presented.

- 24 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)

	Quarter ended
	Dec 31, 2019					Sep 30, 2019					Jun 30, 2019					Mar 31, 2019					Dec 31, 2018
($ 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	$	127.3		1.63	%	$	134.0		2.14	%	$	141.0		2.33	%	$	140.8		2.33	%	$	150.1		2.18	%
Federal funds sold and securities purchased under resale agreements	109.2			1.72		105.9			2.24		98.1			2.44		83.5			2.40		76.1			2.22
Debt securities (3):
Trading debt securities	103.8			3.12		94.7			3.35		86.5			3.45		89.4			3.58		90.1			3.52
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	15.6			1.79		16.0			2.14		15.4			2.21		14.1			2.14		7.2			1.80
Securities of U.S. states and political subdivisions	39.5			3.58		43.3			3.78		45.8			4.02		48.3			4.02		47.6			4.05
Mortgage-backed securities:
Federal agencies	161.1			2.58		154.1			2.77		149.8			2.99		151.5			3.10		155.3			2.91
Residential and commercial	4.8			4.40		5.2			4.02		5.6			4.02		6.0			4.31		6.7			4.87
Total mortgage-backed securities	165.9			2.63		159.3			2.81		155.4			3.03		157.5			3.14		162.0			2.99
Other debt securities	40.5			3.88		42.5			4.12		45.0			4.40		46.8			4.46		46.1			4.46
Total available-for-sale debt securities	261.5			2.92		261.1			3.14		261.6			3.39		266.7			3.48		262.9			3.41
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	45.1			2.19		44.8			2.18		44.8			2.19		44.7			2.20		44.7			2.19
Securities of U.S. states and political subdivisions	12.8			3.88		8.7			4.01		7.0			4.06		6.2			4.03		6.2			4.34
Federal agency and other mortgage-backed securities	95.3			2.49		95.4			2.54		95.4			2.64		95.9			2.74		95.8			2.46
Other debt securities	—			3.28		0.1			3.58		0.1			3.86		0.1			3.96		0.1			3.65
Total held-to-maturity debt securities	153.2			2.51		149.0			2.52		147.3			2.57		146.9			2.63		146.8			2.46
Total debt securities	518.5			2.84		504.8			3.00		495.4			3.16		503.0			3.25		499.8			3.15
Mortgage loans held for sale	24.0			3.90		22.7			4.08		18.5			4.22		13.9			4.37		17.0			4.46
Loans held for sale	1.4			4.13		2.0			4.17		1.6			4.80		1.9			5.25		2.0			6.69
Loans:
Commercial loans:
Commercial and industrial - U.S.	283.7			3.84		284.3			4.21		285.1			4.47		286.6			4.48		281.4			4.40
Commercial and industrial - Non-U.S.	67.3			3.40		64.0			3.67		62.9			3.90		62.8			3.90		62.0			3.73
Real estate mortgage	122.1			4.07		121.8			4.36		121.9			4.58		121.4			4.58		120.4			4.51
Real estate construction	20.1			4.71		20.7			5.13		21.6			5.36		22.4			5.43		23.1			5.32
Lease financing	19.4			4.41		19.3			4.34		19.1			4.71		19.4			4.61		19.5			4.48
Total commercial loans	512.6			3.90		510.1			4.22		510.6			4.47		512.6			4.48		506.4			4.39
Consumer loans:
Real estate 1-4 family first mortgage	292.4			3.66		288.4			3.74		286.2			3.88		285.2			3.96		285.3			4.02
Real estate 1-4 family junior lien mortgage	30.1			5.32		31.5			5.66		32.6			5.75		33.8			5.75		34.8			5.60
Credit card	39.9			12.26		39.2			12.55		38.2			12.65		38.2			12.88		37.9			12.69
Automobile	47.3			5.04		46.3			5.13		45.2			5.23		44.8			5.19		45.5			5.16
Other revolving credit and installment	34.2			6.60		34.3			6.95		34.7			7.12		35.4			7.14		36.4			6.95
Total consumer loans	443.9			4.92		439.7			5.06		436.9			5.18		437.4			5.26		439.9			5.25
Total loans	956.5			4.37		949.8			4.61		947.5			4.80		950.0			4.84		946.3			4.79
Equity securities	38.3			2.81		37.1			2.68		35.2			2.70		33.1			2.56		37.4			2.79
Other	6.4			1.36		6.6			1.77		4.7			1.76		4.4			1.63		4.2			1.78
Total earning assets	$	1,781.6		3.51	%	$	1,762.9		3.76	%	$	1,742.0		3.94	%	$	1,730.6		4.00	%	$	1,732.9		3.93	%
Funding sources
Deposits:
Interest-bearing checking	$	63.3		1.09	%	$	59.3		1.39	%	$	57.5		1.46	%	$	56.3		1.42	%	$	54.0		1.21	%
Market rate and other savings	732.7			0.59		711.3			0.66		690.7			0.59		688.6			0.50		689.6			0.43
Savings certificates	32.3			1.68		32.8			1.72		30.6			1.62		25.2			1.26		22.0			0.87
Other time deposits	87.1			2.10		91.8			2.42		96.9			2.61		97.8			2.67		92.6			2.46
Deposits in non-U.S. offices	54.8			1.50		51.7			1.77		51.9			1.86		55.4			1.89		56.1			1.66
Total interest-bearing deposits	970.2			0.85		946.9			0.97		927.6			0.96		923.3			0.89		914.3			0.77
Short-term borrowings	115.9			1.50		121.8			2.07		114.8			2.26		108.6			2.23		106.0			2.04
Long-term debt	230.4			3.02		229.7			3.09		236.7			3.21		233.2			3.32		226.6			3.17
Other liabilities	27.3			2.04		26.2			2.06		24.3			2.18		25.3			2.28		27.4			2.41
Total interest-bearing liabilities	1,343.8			1.30		1,324.6			1.46		1,303.4			1.50		1,290.4			1.47		1,274.3			1.34
Portion of noninterest-bearing funding sources	437.8			—		438.3			—		438.6			—		440.2			—		458.6			—
Total funding sources	$	1,781.6		0.98		$	1,762.9		1.10		$	1,742.0		1.12		$	1,730.6		1.09		$	1,732.9		0.99
Net interest margin on a taxable-equivalent basis				2.53	%				2.66	%				2.82	%				2.91	%				2.94	%
Noninterest-earning assets
Cash and due from banks	$	19.9				19.2					19.5					19.6					19.3
Goodwill	26.4					26.4					26.4					26.4					26.4
Other	113.9					118.9					112.7					106.5					100.4
Total noninterest-earnings assets	$	160.2				164.5					158.6					152.5					146.1
Noninterest-bearing funding sources
Deposits	$	351.7				344.5					341.4					338.8					354.6
Other liabilities	53.9					58.2					56.1					55.6					51.7
Total equity	192.4					200.1					199.7					198.3					198.4
Noninterest-bearing funding sources used to fund earning assets	(437.8		)			(438.3		)			(438.6		)			(440.2		)			(458.6		)
Net noninterest-bearing funding sources	$	160.2				164.5					158.6					152.5					146.1
Total assets	$	1,941.8				1,927.4					1,900.6					1,883.1					1,879.0

(1) Our average prime rate was 4.83% for the quarter ended December 31, 2019, 5.31% for the quarter ended September 30, 2019, 5.50% for the quarters ended June 30 and March 31, 2019, and 5.28% for the quarter ended December 31,2018. The average three-month London Interbank Offered Rate (LIBOR) was 1.93%, 2.20%, 2.51%, 2.69% and 2.62% for the same quarters, respectively.

(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.

(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

- 25 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME

	Quarter ended December 31,				%		Year ended December 31,			%
(in millions)	2019			2018	Change		2019		2018	Change
Service charges on deposit accounts	$	1,279		1,176	9	%	$	4,798	4,716	2	%
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,380			2,345	1		9,237		9,436	(2	)
Trust and investment management	728			796	(9	)	3,038		3,316	(8	)
Investment banking	464			379	22		1,797		1,757	2
Total trust and investment fees	3,572			3,520	1		14,072		14,509	(3	)
Card fees	1,020			981	4		4,016		3,907	3
Other fees:
Lending related charges and fees	334			400	(17	)	1,379		1,526	(10	)
Cash network fees	108			114	(5	)	452		481	(6	)
Commercial real estate brokerage commissions	2			145	(99	)	358		468	(24	)
Wire transfer and other remittance fees	119			120	(1	)	474		477	(1	)
All other fees	93			109	(15	)	421		432	(3	)
Total other fees	656			888	(26	)	3,084		3,384	(9	)
Mortgage banking:
Servicing income, net	23			109	(79	)	522		1,373	(62	)
Net gains on mortgage loan origination/sales activities	760			358	112		2,193		1,644	33
Total mortgage banking	783			467	68		2,715		3,017	(10	)
Insurance	98			109	(10	)	378		429	(12	)
Net gains from trading activities	131			10	NM		993		602	65
Net gains (losses) on debt securities	(8		)	9	NM		140		108	30
Net gains from equity securities	451			21	NM		2,843		1,515	88
Lease income	343			402	(15	)	1,612		1,753	(8	)
Life insurance investment income	159			158	1		658		651	1
All other	176			595	(70	)	2,523		1,822	38
Total	$	8,660		8,336	4		$	37,832	36,413	4

NM - Not meaningful

NONINTEREST EXPENSE

	Quarter ended December 31,			%		Year ended December 31,			%
(in millions)	2019		2018	Change		2019		2018	Change
Salaries	$	4,721	4,545	4	%	$	18,382	17,834	3	%
Commission and incentive compensation	2,651		2,427	9		10,828		10,264	5
Employee benefits	1,436		706	103		5,874		4,926	19
Equipment	802		643	25		2,763		2,444	13
Net occupancy (1)	749		735	2		2,945		2,888	2
Core deposit and other intangibles	26		264	(90	)	108		1,058	(90	)
FDIC and other deposit assessments	130		153	(15	)	526		1,110	(53	)
Operating losses	1,916		432	344		4,321		3,124	38
Outside professional services	876		843	4		3,198		3,306	(3	)
Contract services	653		616	6		2,489		2,192	14
Leases (2)	286		392	(27	)	1,155		1,334	(13	)
Advertising and promotion	244		254	(4	)	1,076		857	26
Outside data processing	164		168	(2	)	673		660	2
Travel and entertainment	131		168	(22	)	580		618	(6	)
Postage, stationery and supplies	160		132	21		518		515	1
Telecommunications	92		91	1		367		361	2
Foreclosed assets	39		47	(17	)	163		188	(13	)
Insurance	25		25	—		100		101	(1	)
All other	513		698	(27	)	2,112		2,346	(10	)
Total	$	15,614	13,339	17		$	58,178	56,126	4

(1) Represents expenses for both leased and owned properties.

(2) Represents expenses for assets we lease to customers.

- 26 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME

	Quarter ended
(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Service charges on deposit accounts	$	1,279		1,219		1,206	1,094	1,176
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,380			2,346		2,318	2,193	2,345
Trust and investment management	728			729		795	786	796
Investment banking	464			484		455	394	379
Total trust and investment fees	3,572			3,559		3,568	3,373	3,520
Card fees	1,020			1,027		1,025	944	981
Other fees:
Lending related charges and fees	334			349		349	347	400
Cash network fees	108			118		117	109	114
Commercial real estate brokerage commissions	2			170		105	81	145
Wire transfer and other remittance fees	119			121		121	113	120
All other fees	93			100		108	120	109
Total other fees	656			858		800	770	888
Mortgage banking:
Servicing income, net	23			(142	)	277	364	109
Net gains on mortgage loan origination/sales activities	760			608		481	344	358
Total mortgage banking	783			466		758	708	467
Insurance	98			91		93	96	109
Net gains from trading activities	131			276		229	357	10
Net gains (losses) on debt securities	(8		)	3		20	125	9
Net gains from equity securities	451			956		622	814	21
Lease income	343			402		424	443	402
Life insurance investment income	159			173		167	159	158
All other	176			1,355		577	415	595
Total	$	8,660		10,385		9,489	9,298	8,336

FIVE QUARTER NONINTEREST EXPENSE

	Quarter ended
(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Salaries	$	4,721	4,695	4,541	4,425	4,545
Commission and incentive compensation	2,651		2,735	2,597	2,845	2,427
Employee benefits	1,436		1,164	1,336	1,938	706
Equipment	802		693	607	661	643
Net occupancy (1)	749		760	719	717	735
Core deposit and other intangibles	26		27	27	28	264
FDIC and other deposit assessments	130		93	144	159	153
Operating losses	1,916		1,920	247	238	432
Outside professional services	876		823	821	678	843
Contract services	653		649	624	563	616
Leases (2)	286		272	311	286	392
Advertising and promotion	244		266	329	237	254
Outside data processing	164		167	175	167	168
Travel and entertainment	131		139	163	147	168
Postage, stationery and supplies	160		117	119	122	132
Telecommunications	92		91	93	91	91
Foreclosed assets	39		52	35	37	47
Insurance	25		25	25	25	25
All other	513		511	536	552	698
Total	$	15,614	15,199	13,449	13,916	13,339

(1) Represents expenses for both leased and owned properties.

(2) Represents expenses for assets we lease to customers.

- 27 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER DEFERRED COMPENSATION PLAN INVESTMENT RESULTS

	Quarter ended
(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019	Dec 31, 2018
Net interest income	$	26		13		18		13	23
Net gains (losses) from equity securities	236			(4	)	87		345	(452	)
Total revenue (losses) from deferred compensation plan investments	262			9		105		358	(429	)
Employee benefits expense (1)	263			5		114		357	(428	)
Income (loss) before income tax expense	$	(1	)	4		(9	)	1	(1	)

(1) Represents change in deferred compensation plan liability.

- 28 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET

(in millions, except shares)	Dec 31, 2019			Dec 31, 2018		% Change
Assets
Cash and due from banks	$	21,757		23,551		(8	)%
Interest-earning deposits with banks	119,493			149,736		(20	)
Total cash, cash equivalents, and restricted cash	141,250			173,287		(18	)
Federal funds sold and securities purchased under resale agreements	102,140			80,207		27
Debt securities:
Trading, at fair value	79,733			69,989		14
Available-for-sale, at fair value	263,459			269,912		(2	)
Held-to-maturity, at cost	153,933			144,788		6
Mortgage loans held for sale	23,342			15,126		54
Loans held for sale	977			2,041		(52	)
Loans	962,265			953,110		1
Allowance for loan losses	(9,551		)	(9,775	)	(2	)
Net loans	952,714			943,335		1
Mortgage servicing rights:
Measured at fair value	11,517			14,649		(21	)
Amortized	1,430			1,443		(1	)
Premises and equipment, net	9,309			8,920		4
Goodwill	26,390			26,418		—
Derivative assets	14,203			10,770		32
Equity securities	68,241			55,148		24
Other assets	78,917			79,850		(1	)
Total assets	$	1,927,555		1,895,883		2
Liabilities
Noninterest-bearing deposits	$	344,496		349,534		(1	)
Interest-bearing deposits	978,130			936,636		4
Total deposits	1,322,626			1,286,170		3
Short-term borrowings	104,512			105,787		(1	)
Derivative liabilities	9,079			8,499		7
Accrued expenses and other liabilities	75,163			69,317		8
Long-term debt	228,191			229,044		—
Total liabilities	1,739,571			1,698,817		2
Equity
Wells Fargo stockholders’ equity:
Preferred stock	21,549			23,214		(7	)
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares	9,136			9,136		—
Additional paid-in capital	61,049			60,685		1
Retained earnings	166,697			158,163		5
Cumulative other comprehensive income (loss)	(1,311		)	(6,336	)	(79	)
Treasury stock – 1,347,385,537 shares and 900,557,866 shares	(68,831		)	(47,194	)	46
Unearned ESOP shares	(1,143		)	(1,502	)	(24	)
Total Wells Fargo stockholders’ equity	187,146			196,166		(5	)
Noncontrolling interests	838			900		(7	)
Total equity	187,984			197,066		(5	)
Total liabilities and equity	$	1,927,555		1,895,883		2

- 29 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET

(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Assets
Cash and due from banks	$	21,757		22,401		20,880		20,650		23,551
Interest-earning deposits with banks	119,493			126,330		143,547		128,318		149,736
Total cash, cash equivalents, and restricted cash	141,250			148,731		164,427		148,968		173,287
Federal funds sold and securities purchased under resale agreements	102,140			103,051		112,119		98,621		80,207
Debt securities:
Trading, at fair value	79,733			79,113		70,208		70,378		69,989
Available-for-sale, at fair value	263,459			271,236		265,983		268,099		269,912
Held-to-maturity, at cost	153,933			153,179		145,876		144,990		144,788
Mortgage loans held for sale	23,342			25,448		22,998		15,016		15,126
Loans held for sale	977			1,532		1,181		1,018		2,041
Loans	962,265			954,915		949,878		948,249		953,110
Allowance for loan losses	(9,551		)	(9,715	)	(9,692	)	(9,900	)	(9,775	)
Net loans	952,714			945,200		940,186		938,349		943,335
Mortgage servicing rights:
Measured at fair value	11,517			11,072		12,096		13,336		14,649
Amortized	1,430			1,397		1,407		1,427		1,443
Premises and equipment, net	9,309			9,315		9,435		8,825		8,920
Goodwill	26,390			26,388		26,415		26,420		26,418
Derivative assets	14,203			14,680		13,162		11,238		10,770
Equity securities	68,241			63,884		61,537		58,440		55,148
Other assets	78,917			89,724		76,358		82,667		79,850
Total assets	$	1,927,555		1,943,950		1,923,388		1,887,792		1,895,883
Liabilities
Noninterest-bearing deposits	$	344,496		355,259		340,813		341,399		349,534
Interest-bearing deposits	978,130			953,236		947,613		922,614		936,636
Total deposits	1,322,626			1,308,495		1,288,426		1,264,013		1,286,170
Short-term borrowings	104,512			123,908		115,344		106,597		105,787
Derivative liabilities	9,079			9,948		8,399		7,393		8,499
Accrued expenses and other liabilities	75,163			76,532		69,706		74,717		69,317
Long-term debt	228,191			230,651		241,476		236,339		229,044
Total liabilities	1,739,571			1,749,534		1,723,351		1,689,059		1,698,817
Equity
Wells Fargo stockholders’ equity:
Preferred stock	21,549			21,549		23,021		23,214		23,214
Common stock	9,136			9,136		9,136		9,136		9,136
Additional paid-in capital	61,049			60,866		60,625		60,409		60,685
Retained earnings	166,697			166,320		164,551		160,776		158,163
Cumulative other comprehensive income (loss)	(1,311		)	(1,639	)	(2,224	)	(3,682	)	(6,336	)
Treasury stock	(68,831		)	(61,785	)	(54,775	)	(50,519	)	(47,194	)
Unearned ESOP shares	(1,143		)	(1,143	)	(1,292	)	(1,502	)	(1,502	)
Total Wells Fargo stockholders’ equity	187,146			193,304		199,042		197,832		196,166
Noncontrolling interests	838			1,112		995		901		900
Total equity	187,984			194,416		200,037		198,733		197,066
Total liabilities and equity	$	1,927,555		1,943,950		1,923,388		1,887,792		1,895,883

- 30 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER TRADING ASSETS AND LIABILITIES

(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Trading assets
Debt securities	$	79,733		79,113		70,208		70,378		69,989
Equity securities	27,440			24,436		23,327		20,933		19,449
Loans held for sale	972			1,501		1,118		998		1,469
Gross trading derivative assets	34,825			39,926		34,683		30,002		29,216
Netting (1)	(21,463		)	(26,414	)	(22,827	)	(20,809	)	(19,807	)
Total trading derivative assets	13,362			13,512		11,856		9,193		9,409
Total trading assets	121,507			118,562		106,509		101,502		100,316
Trading liabilities
Short sales	17,430			18,290		15,955		21,586		19,720
Gross trading derivative liabilities	33,861			38,308		33,458		28,994		28,717
Netting (1)	(26,074		)	(29,708	)	(26,417	)	(22,810	)	(21,178	)
Total trading derivative liabilities	7,787			8,600		7,041		6,184		7,539
Total trading liabilities	$	25,217		26,890		22,996		27,770		27,259

(1) Represents balance sheet netting for trading derivative asset and liability balances, and trading portfolio level counterparty valuation adjustments.

FIVE QUARTER DEBT SECURITIES

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Trading debt securities	$	79,733	79,113	70,208	70,378	69,989
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	14,960		16,549	15,319	15,106	13,348
Securities of U.S. states and political subdivisions	40,337		40,503	45,095	49,700	49,264
Mortgage-backed securities:
Federal agencies	162,453		167,535	155,858	150,663	153,203
Residential and commercial	4,761		5,079	5,443	5,828	7,000
Total mortgage-backed securities	167,214		172,614	161,301	156,491	160,203
Other debt securities	40,948		41,570	44,268	46,802	47,097
Total available-for-sale debt securities	263,459		271,236	265,983	268,099	269,912
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	45,541		44,774	44,766	44,758	44,751
Securities of U.S. states and political subdivisions	13,486		12,719	7,948	6,163	6,286
Federal agency and other mortgage-backed securities (1)	94,869		95,637	93,105	94,009	93,685
Other debt securities	37		49	57	60	66
Total held-to-maturity debt securities	153,933		153,179	145,876	144,990	144,788
Total debt securities	$	497,125	503,528	482,067	483,467	484,689

(1) Predominantly consists of federal agency mortgage-backed securities.

- 31 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER EQUITY SECURITIES

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Held for trading at fair value:
Marketable equity securities	$	27,440	24,436	23,327	20,933	19,449
Not held for trading:
Fair value:
Marketable equity securities (1)	6,481		6,639	5,379	5,135	4,513
Nonmarketable equity securities	8,015		7,293	7,244	6,518	5,594
Total equity securities at fair value	14,496		13,932	12,623	11,653	10,107
Equity method:
Low-income housing tax credit investments	11,343		11,068	11,162	10,925	10,999
Private equity	3,459		3,425	3,352	3,890	3,832
Tax-advantaged renewable energy	3,811		3,143	3,051	3,041	3,073
New market tax credit and other	387		390	294	305	311
Total equity method	19,000		18,026	17,859	18,161	18,215
Other:
Federal Reserve Bank stock and other at cost (2)	4,790		5,021	5,622	5,732	5,643
Private equity (3)	2,515		2,469	2,106	1,961	1,734
Total equity securities not held for trading	40,801		39,448	38,210	37,507	35,699
Total equity securities	$	68,241	63,884	61,537	58,440	55,148

(1) Includes $3.8 billion, $3.5 billion, $3.5 billion, $3.5 billion and $3.2 billion at December 31, September 30, June 30, and March 31, 2019, and December 31,2018, respectively, related to securities held as economic hedges of our deferred compensation plan obligations.

(2) Includes $4.8 billion, $5.0 billion, $5.6 billion, $5.7 billion and $5.6 billion at December 31, September 30, June 30, and March 31, 2019, and December 31,2018, respectively, related to investments in Federal Reserve Bank and Federal Home Loan Bank stock.

(3) Represents nonmarketable equity securities for which we have elected to account for the security under the measurement alternative.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER LOANS

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Commercial:
Commercial and industrial	$	354,125	350,875	348,846	349,134	350,199
Real estate mortgage	121,824		121,936	123,008	122,113	121,014
Real estate construction	19,939		19,921	21,067	21,857	22,496
Lease financing	19,831		19,600	19,324	19,122	19,696
Total commercial	515,719		512,332	512,245	512,226	513,405
Consumer:
Real estate 1-4 family first mortgage	293,847		290,604	286,427	284,545	285,065
Real estate 1-4 family junior lien mortgage	29,509		30,838	32,068	33,099	34,398
Credit card	41,013		39,629	38,820	38,279	39,025
Automobile	47,873		46,738	45,664	44,913	45,069
Other revolving credit and installment	34,304		34,774	34,654	35,187	36,148
Total consumer	446,546		442,583	437,633	436,023	439,705
Total loans (1)	$	962,265	954,915	949,878	948,249	953,110

(1) Includes $568 million, $607 million, $1.2 billion, $3.2 billion, and $5.0 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30, and March 31, 2019, and December 31,2018, respectively.

Our non-U.S. loans are reported by respective class of financing receivable in the table above. Substantially all of our non-U.S. loan portfolio is commercial loans. The following table presents total non-U.S. commercial loans outstanding by class of financing receivable.

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Non-U.S. commercial loans:
Commercial and industrial	$	70,494	64,418	63,296	63,158	62,564
Real estate mortgage	7,004		7,056	6,801	7,049	6,731
Real estate construction	1,434		1,262	1,287	1,138	1,011
Lease financing	1,220		1,197	1,215	1,167	1,159
Total non-U.S. commercial loans	$	80,152	73,933	72,599	72,512	71,465

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)

(in millions)	Dec 31, 2019			Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,545		1,539	1,634	1,986	1,486
Real estate mortgage	573			669	737	699	580
Real estate construction	41			32	36	36	32
Lease financing	95			72	63	76	90
Total commercial	2,254			2,312	2,470	2,797	2,188
Consumer:
Real estate 1-4 family first mortgage	2,150			2,261	2,425	3,026	3,183
Real estate 1-4 family junior lien mortgage	796			819	868	916	945
Automobile	106			110	115	116	130
Other revolving credit and installment	40			43	44	50	50
Total consumer	3,092			3,233	3,452	4,108	4,308
Total nonaccrual loans (1)(2)	$	5,346		5,545	5,922	6,905	6,496
As a percentage of total loans	0.56		%	0.58	0.62	0.73	0.68
Foreclosed assets:
Government insured/guaranteed	$	50		59	68	75	88
Non-government insured/guaranteed	253			378	309	361	363
Total foreclosed assets	303			437	377	436	451
Total nonperforming assets	$	5,649		5,982	6,299	7,341	6,947
As a percentage of total loans	0.59		%	0.63	0.66	0.77	0.73

(1) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.

(2) 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

(in millions)	Dec 31, 2019		Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Total (excluding PCI)(1):	$	7,285	7,130	7,258	7,870	8,704
Less: FHA insured/VA guaranteed (2)	6,352		6,308	6,478	6,996	7,725
Total, not government insured/guaranteed	$	933	822	780	874	979
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	47	6	17	42	43
Real estate mortgage	31		28	24	20	51
Real estate construction	—		—	—	5	—
Total commercial	78		34	41	67	94
Consumer:
Real estate 1-4 family first mortgage	112		100	108	117	124
Real estate 1-4 family junior lien mortgage	32		35	27	28	32
Credit card	546		491	449	502	513
Automobile	78		75	63	68	114
Other revolving credit and installment	87		87	92	92	102
Total consumer	855		788	739	807	885
Total, not government insured/guaranteed	$	933	822	780	874	979

(1) PCI loans totaled $102 million, $119 million, $156 million, $243 million, and $370 million at December 31, September 30, June 30, and March 31, 2019, and December 31, 2018, respectively.

(1) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended December 31,					Year ended December 31,
(in millions)	2019			2018		2019		2018
Balance, beginning of period	$	10,613		10,956		10,707		11,960
Provision for credit losses	644			521		2,687		1,744
Interest income on certain impaired loans (1)	(35		)	(38	)	(147	)	(166	)
Loan charge-offs:
Commercial:
Commercial and industrial	(212		)	(220	)	(802	)	(727	)
Real estate mortgage	(10		)	(12	)	(38	)	(42	)
Real estate construction	—			—		(1	)	—
Lease financing	(35		)	(18	)	(70	)	(70	)
Total commercial	(257		)	(250	)	(911	)	(839	)
Consumer:
Real estate 1-4 family first mortgage	(28		)	(38	)	(129	)	(179	)
Real estate 1-4 family junior lien mortgage	(28		)	(38	)	(118	)	(179	)
Credit card	(436		)	(414	)	(1,714	)	(1,599	)
Automobile	(162		)	(217	)	(647	)	(947	)
Other revolving credit and installment	(177		)	(180	)	(674	)	(685	)
Total consumer	(831		)	(887	)	(3,282	)	(3,589	)
Total loan charge-offs	(1,088		)	(1,137	)	(4,193	)	(4,428	)
Loan recoveries:
Commercial:
Commercial and industrial	44			88		195		304
Real estate mortgage	6			24		32		70
Real estate construction	—			1		13		13
Lease financing	4			5		19		23
Total commercial	54			118		259		410
Consumer:
Real estate 1-4 family first mortgage	31			60		179		267
Real estate 1-4 family junior lien mortgage	44			48		184		219
Credit card	86			76		344		307
Automobile	75			84		341		363
Other revolving credit and installment	29			30		124		118
Total consumer	265			298		1,172		1,274
Total loan recoveries	319			416		1,431		1,684
Net loan charge-offs	(769		)	(721	)	(2,762	)	(2,744	)
Other	3			(11	)	(29	)	(87	)
Balance, end of period	$	10,456		10,707		10,456		10,707
Components:
Allowance for loan losses	$	9,551		9,775		9,551		9,775
Allowance for unfunded credit commitments	905			932		905		932
Allowance for credit losses	$	10,456		10,707		10,456		10,707
Net loan charge-offs (annualized) as a percentage of average total loans	0.32		%	0.30		0.29		0.29
Allowance for loan losses as a percentage of total loans	0.99			1.03		0.99		1.03
Allowance for credit losses as a percentage of total loans	1.09			1.12		1.09		1.12

(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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES

	Quarter ended
(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Balance, beginning of quarter	$	10,613		10,603		10,821		10,707		10,956
Provision for credit losses	644			695		503		845		521
Interest income on certain impaired loans (1)	(35		)	(34	)	(39	)	(39	)	(38	)
Loan charge-offs:
Commercial:
Commercial and industrial	(212		)	(209	)	(205	)	(176	)	(220	)
Real estate mortgage	(10		)	(2	)	(14	)	(12	)	(12	)
Real estate construction	—			—		—		(1	)	—
Lease financing	(35		)	(12	)	(12	)	(11	)	(18	)
Total commercial	(257		)	(223	)	(231	)	(200	)	(250	)
Consumer:
Real estate 1-4 family first mortgage	(28		)	(31	)	(27	)	(43	)	(38	)
Real estate 1-4 family junior lien mortgage	(28		)	(27	)	(29	)	(34	)	(38	)
Credit card	(436		)	(404	)	(437	)	(437	)	(414	)
Automobile	(162		)	(156	)	(142	)	(187	)	(217	)
Other revolving credit and installment	(177		)	(168	)	(167	)	(162	)	(180	)
Total consumer	(831		)	(786	)	(802	)	(863	)	(887	)
Total loan charge-offs	(1,088		)	(1,009	)	(1,033	)	(1,063	)	(1,137	)
Loan recoveries:
Commercial:
Commercial and industrial	44			62		46		43		88
Real estate mortgage	6			10		10		6		24
Real estate construction	—			8		2		3		1
Lease financing	4			4		8		3		5
Total commercial	54			84		66		55		118
Consumer:
Real estate 1-4 family first mortgage	31			36		57		55		60
Real estate 1-4 family junior lien mortgage	44			49		48		43		48
Credit card	86			85		88		85		76
Automobile	75			80		90		96		84
Other revolving credit and installment	29			30		31		34		30
Total consumer	265			280		314		313		298
Total loan recoveries	319			364		380		368		416
Net loan charge-offs	(769		)	(645	)	(653	)	(695	)	(721	)
Other	3			(6	)	(29	)	3		(11	)
Balance, end of quarter	$	10,456		10,613		10,603		10,821		10,707
Components:
Allowance for loan losses	$	9,551		9,715		9,692		9,900		9,775
Allowance for unfunded credit commitments	905			898		911		921		932
Allowance for credit losses	$	10,456		10,613		10,603		10,821		10,707
Net loan charge-offs (annualized) as a percentage of average total loans	0.32		%	0.27		0.28		0.30		0.30
Allowance for loan losses as a percentage of:
Total loans	0.99			1.02		1.02		1.04		1.03
Nonaccrual loans	179			175		164		143		150
Nonaccrual loans and other nonperforming assets	169			162		154		135		141
Allowance for credit losses as a percentage of:
Total loans	1.09			1.11		1.12		1.14		1.12
Nonaccrual loans	196			191		179		157		165
Nonaccrual loans and other nonperforming assets	185			177		168		147		154

(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.

- 36 -

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY

We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, goodwill, certain identifiable intangible assets (other than mortgage servicing rights) and goodwill and other intangibles on nonmarketable equity securities, net of applicable deferred taxes. These tangible common equity ratios are as follows:

• Tangible book value per common share, which represents tangible common equity divided by common shares outstanding; and

• Return on average tangible common equity (ROTCE), which represents our annualized earnings contribution as a percentage of tangible common equity.

The methodology of determining tangible common equity may differ among companies. Management believes that tangible book value per common share and return on average tangible common equity, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company’s use of equity.

The tables below provide a reconciliation of these non-GAAP financial measures to GAAP financial measures.

(in millions, except ratios)		Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Tangible book value per common share:
Total equity		$	187,984		194,416		200,037		198,733		197,066
Adjustments:
Preferred stock		(21,549		)	(21,549	)	(23,021	)	(23,214	)	(23,214	)
Additional paid-in capital on ESOP preferred stock		(71		)	(71	)	(78	)	(95	)	(95	)
Unearned ESOP shares		1,143			1,143		1,292		1,502		1,502
Noncontrolling interests		(838		)	(1,112	)	(995	)	(901	)	(900	)
Total common stockholders' equity	(A)	166,669			172,827		177,235		176,025		174,359
Adjustments:
Goodwill		(26,390		)	(26,388	)	(26,415	)	(26,420	)	(26,418	)
Certain identifiable intangible assets (other than MSRs)		(437		)	(465	)	(493	)	(522	)	(559	)
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)		(2,146		)	(2,295	)	(2,251	)	(2,131	)	(2,187	)
Applicable deferred taxes related to goodwill and other intangible assets (1)		810			802		788		771		785
Tangible common equity	(B)	$	138,506		144,481		148,864		147,723		145,980
Common shares outstanding	(C)	4,134.4			4,269.1		4,419.6		4,511.9		4,581.3
Book value per common share	(A)/(C)	$	40.31		40.48		40.10		39.01		38.06
Tangible book value per common share	(B)/(C)	33.50			33.84		33.68		32.74		31.86

		Quarter ended												Year ended
(in millions, except ratios)		Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018			Dec 31, 2019		Dec 31, 2018
Return on average tangible common equity:
Net income applicable to common stock	(A)	$	2,546		4,037		5,848		5,507		5,711			17,938		20,689
Average total equity		192,393			200,095		199,685		198,349		198,442			197,621		203,356
Adjustments:
Preferred stock		(21,549		)	(22,325	)	(23,023	)	(23,214	)	(23,463	)		(22,522	)	(24,956	)
Additional paid-in capital on ESOP preferred stock		(71		)	(78	)	(78	)	(95	)	(105	)		(81	)	(125	)
Unearned ESOP shares		1,143			1,290		1,294		1,502		1,761			1,306		2,159
Noncontrolling interests		(945		)	(1,065	)	(939	)	(899	)	(910	)		(962	)	(929	)
Average common stockholders’ equity	(B)	170,971			177,917		176,939		175,643		175,725			175,362		179,505
Adjustments:
Goodwill		(26,389		)	(26,413	)	(26,415	)	(26,420	)	(26,423	)		(26,409	)	(26,453	)
Certain identifiable intangible assets (other than MSRs)		(449		)	(477	)	(505	)	(543	)	(693	)		(493	)	(1,088	)
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)		(2,223		)	(2,159	)	(2,155	)	(2,159	)	(2,204	)		(2,174	)	(2,197	)
Applicable deferred taxes related to goodwill and other intangible assets (1)		807			797		780		784		800		��	792		866
Average tangible common equity	(C)	$	142,717		149,665		148,644		147,305		147,205			147,078		150,633
Return on average common stockholders' equity (ROE) (annualized)	(A)/(B)	5.91			9.00		13.26		12.71		12.89			10.23		11.53
Return on average tangible common equity (ROTCE) (annualized)	(A)/(C)	7.08			10.70		15.78		15.16		15.39			12.20		13.73

(1) 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.

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Wells Fargo & Company and Subsidiaries

COMMON EQUITY TIER 1 UNDER BASEL III (1)

		Estimated
(in billions, except ratio)		Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Total equity		$	188.0		194.4		200.0		198.7		197.1
Adjustments:
Preferred stock		(21.5		)	(21.5	)	(23.0	)	(23.2	)	(23.2	)
Additional paid-in capital on ESOP preferred stock		(0.1		)	(0.1	)	(0.1	)	(0.1	)	(0.1	)
Unearned ESOP shares		1.1			1.1		1.3		1.5		1.5
Noncontrolling interests		(0.8		)	(1.1	)	(1.0	)	(0.9	)	(0.9	)
Total common stockholders' equity		166.7			172.8		177.2		176.0		174.4
Adjustments:
Goodwill		(26.4		)	(26.4	)	(26.4	)	(26.4	)	(26.4	)
Certain identifiable intangible assets (other than MSRs)		(0.4		)	(0.5	)	(0.5	)	(0.5	)	(0.6	)
Goodwill and other intangibles on nonmarketable equity securities (included in other assets)		(2.1		)	(2.3	)	(2.3	)	(2.1	)	(2.2	)
Applicable deferred taxes related to goodwill and other intangible assets (2)		0.8			0.8		0.8		0.8		0.8
Other		0.2			0.3		0.4		0.3		0.4
Common Equity Tier 1 under Basel III	(A)	138.8			144.7		149.2		148.1		146.4
Total risk-weighted assets (RWAs) anticipated under Basel III (3)(4)	(B)	$	1,247.7		1,246.2		1,246.7		1,243.1		1,247.2
Common Equity Tier 1 to total RWAs anticipated under Basel III (4)	(A)/(B)	11.1		%	11.6		12.0		11.9		11.7

(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. The Basel III capital requirements for calculating CET1 and tier 1 capital, along with RWAs, are fully phased-in.

(2) 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.

(3) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach and the Advanced Approach applicable to certain institutions. Accordingly, in the assessment of our capital adequacy, we must report the lower of our CET1, tier 1 and total capital ratios calculated under the Standardized Approach and under the Advanced Approach. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of December 31, 2019, 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, 2019, and December 31, 2018, was calculated under the Basel III Standardized Approach RWAs.

(4) The Company’s December 31, 2019, RWAs and capital ratio are preliminary estimates.

- 38 -

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
	2019		2018	2019	2018		2019		2018		2019		2018		2019	2018
Quarter ended Dec 31,
Net interest income (3)	$	6,527	7,340	4,248	4,739		910		1,116		(485	)	(551	)	11,200	12,644
Provision (reversal of provision) for credit losses	522		534	124	(28	)	(1	)	(3	)	(1	)	18		644	521
Noninterest income	3,995		4,121	2,311	2,187		3,161		2,841		(807	)	(813	)	8,660	8,336
Noninterest expense	9,029		7,032	3,743	4,025		3,729		3,044		(887	)	(762	)	15,614	13,339
Income (loss) before income tax expense (benefit)	971		3,895	2,692	2,929		343		916		(404	)	(620	)	3,602	7,120
Income tax expense (benefit) (4)	497		637	197	253		85		231		(101	)	(155	)	678	966
Net income (loss) before noncontrolling interests	474		3,258	2,495	2,676		258		685		(303	)	(465	)	2,924	6,154
Less: Net income (loss) from noncontrolling interests	45		89	2	5		4		(4	)	—		—		51	90
Net income (loss)	$	429	3,169	2,493	2,671		254		689		(303	)	(465	)	2,873	6,064
Average loans	$	462.5	459.7	476.5	470.2		77.1		75.2		(59.6	)	(58.8	)	956.5	946.3
Average assets	1,039.3		1,015.9	877.6	839.1		85.5		83.6		(60.6	)	(59.6	)	1,941.8	1,879.0
Average deposits	794.6		759.4	447.4	421.6		145.0		155.5		(65.1	)	(67.6	)	1,321.9	1,268.9
Year ended Dec 31,
Net interest income (3)	$	27,610	29,219	17,699	18,690		4,037		4,441		(2,115	)	(2,355	)	47,231	49,995
Provision (reversal of provision) for credit losses	2,319		1,783	378	(58	)	5		(5	)	(15	)	24		2,687	1,744
Noninterest income	17,706		17,694	9,978	10,016		13,304		11,935		(3,156	)	(3,232	)	37,832	36,413
Noninterest expense	32,696		30,491	15,352	16,157		13,709		12,938		(3,579	)	(3,460	)	58,178	56,126
Income (loss) before income tax expense (benefit)	10,301		14,639	11,947	12,607		3,627		3,443		(1,677	)	(2,151	)	24,198	28,538
Income tax expense (benefit) (4)	2,426		3,784	1,246	1,555		904		861		(419	)	(538	)	4,157	5,662
Net income (loss) before noncontrolling interests	7,875		10,855	10,701	11,052		2,723		2,582		(1,258	)	(1,613	)	20,041	22,876
Less: Net income from noncontrolling interests	477		461	5	20		10		2		—		—		492	483
Net income (loss)	$	7,398	10,394	10,696	11,032		2,713		2,580		(1,258	)	(1,613	)	19,549	22,393
Average loans	$	459.4	463.7	475.3	465.7		75.6		74.6		(59.3	)	(58.8	)	951.0	945.2
Average assets	1,028.4		1,034.1	861.0	830.5		84.3		83.9		(60.3	)	(59.6	)	1,913.4	1,888.9
Average deposits	782.0		757.2	422.5	423.7		146.0		165.0		(64.2	)	(70.0	)	1,286.3	1,275.9

(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.

(2) Includes the elimination of certain items that are included in more than one business segment, 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.

(4) Income tax expense (benefit) for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $478 million and $486 million for the quarters ended December 31, 2019 and 2018, respectively, and $1.8 billion and $1.6 billion for the years ended December 31, 2019 and 2018, respectively.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)

								Quarter ended
(income/expense in millions, average balances in billions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
COMMUNITY BANKING
Net interest income (2)	$	6,527		6,769		7,066		7,248		7,340
Provision for credit losses	522			608		479		710		534
Noninterest income	3,995			4,470		4,739		4,502		4,121
Noninterest expense	9,029			8,766		7,212		7,689		7,032
Income before income tax expense	971			1,865		4,114		3,351		3,895
Income tax expense	497			667		838		424		637
Net income before noncontrolling interests	474			1,198		3,276		2,927		3,258
Less: Net income from noncontrolling interests	45			199		129		104		89
Segment net income	$	429		999		3,147		2,823		3,169
Average loans	$	462.5		459.0		457.7		458.2		459.7
Average assets	1,039.3			1,033.9		1,024.8		1,015.4		1,015.9
Average deposits	794.6			789.7		777.6		765.6		759.4
WHOLESALE BANKING
Net interest income (2)	$	4,248		4,382		4,535		4,534		4,739
Provision (reversal of provision) for credit losses	124			92		28		134		(28	)
Noninterest income	2,311			2,560		2,530		2,577		2,187
Noninterest expense	3,743			3,889		3,882		3,838		4,025
Income before income tax expense	2,692			2,961		3,155		3,139		2,929
Income tax expense (3)	197			315		365		369		253
Net income before noncontrolling interests	2,495			2,646		2,790		2,770		2,676
Less: Net income from noncontrolling interests	2			2		1		—		5
Segment net income	$	2,493		2,644		2,789		2,770		2,671
Average loans	$	476.5		474.3		474.0		476.4		470.2
Average assets	877.6			869.2		852.2		844.5		839.1
Average deposits	447.4			422.0		410.4		409.8		421.6
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)	$	910		989		1,037		1,101		1,116
Provision (reversal of provision) for credit losses	(1		)	3		(1	)	4		(3	)
Noninterest income	3,161			4,152		3,013		2,978		2,841
Noninterest expense	3,729			3,431		3,246		3,303		3,044
Income before income tax expense	343			1,707		805		772		916
Income tax expense	85			426		201		192		231
Net income before noncontrolling interests	258			1,281		604		580		685
Less: Net income (loss) from noncontrolling interests	4			1		2		3		(4	)
Segment net income	$	254		1,280		602		577		689
Average loans	$	77.1		75.9		75.0		74.4		75.2
Average assets	85.5			84.7		83.8		83.2		83.6
Average deposits	145.0			142.4		143.5		153.2		155.5
OTHER (4)
Net interest income (2)	$	(485	)	(515	)	(543	)	(572	)	(551	)
Provision (reversal of provision) for credit losses	(1		)	(8	)	(3	)	(3	)	18
Noninterest income	(807		)	(797	)	(793	)	(759	)	(813	)
Noninterest expense	(887		)	(887	)	(891	)	(914	)	(762	)
Loss before income tax benefit	(404		)	(417	)	(442	)	(414	)	(620	)
Income tax benefit	(101		)	(104	)	(110	)	(104	)	(155	)
Net loss before noncontrolling interests	(303		)	(313	)	(332	)	(310	)	(465	)
Less: Net income from noncontrolling interests	—			—		—		—		—
Other net loss	$	(303	)	(313	)	(332	)	(310	)	(465	)
Average loans	$	(59.6	)	(59.4	)	(59.2	)	(59.0	)	(58.8	)
Average assets	(60.6		)	(60.4	)	(60.2	)	(60.0	)	(59.6	)
Average deposits	(65.1		)	(62.7	)	(62.5	)	(66.5	)	(67.6	)
CONSOLIDATED COMPANY
Net interest income (2)	$	11,200		11,625		12,095		12,311		12,644
Provision for credit losses	644			695		503		845		521
Noninterest income	8,660			10,385		9,489		9,298		8,336
Noninterest expense	15,614			15,199		13,449		13,916		13,339
Income before income tax expense	3,602			6,116		7,632		6,848		7,120
Income tax expense	678			1,304		1,294		881		966
Net income before noncontrolling interests	2,924			4,812		6,338		5,967		6,154
Less: Net income from noncontrolling interests	51			202		132		107		90
Wells Fargo net income	$	2,873		4,610		6,206		5,860		6,064
Average loans	$	956.5		949.8		947.5		950.0		946.3
Average assets	1,941.8			1,927.4		1,900.6		1,883.1		1,879.0
Average deposits	1,321.9			1,291.4		1,269.0		1,262.1		1,268.9

(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.

(2) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets 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) Income tax expense for our Wholesale Banking operating segment included income tax credits related to low-income housing and renewable energy investments of $478 million, $422 million, $423 million, $427 million, and $486 million for the quarters ended December 31, September 30, June 30, and March 31, 2019, and December 31,2018, respectively.

(4) 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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING

	Quarter ended
(in millions)	Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	11,072		12,096		13,336		14,649		15,980
Servicing from securitizations or asset transfers (1)	654			538		400		341		449
Sales and other (2)	—			(4	)	(1	)	(281	)	(64	)
Net additions	654			534		399		60		385
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)	405			(718	)	(1,153	)	(940	)	(874	)
Servicing and foreclosure costs (4)	45			13		(22	)	12		763
Discount rates (5)	(34		)	188		(109	)	100		(821	)
Prepayment estimates and other (6)	(54		)	(445	)	206		(63	)	(314	)
Net changes in valuation model inputs or assumptions	362			(962	)	(1,078	)	(891	)	(1,246	)
Changes due to collection/realization of expected cash flows over time	(571		)	(596	)	(561	)	(482	)	(470	)
Total changes in fair value	(209		)	(1,558	)	(1,639	)	(1,373	)	(1,716	)
Fair value, end of quarter	$	11,517		11,072		12,096		13,336		14,649

(1) Includes impacts associated with exercising cleanup calls on securitizations as well as our right to repurchase delinquent loans from Government National Mortgage Association (GNMA) loan securitization pools. Total reported MSRs may increase upon repurchase due to servicing liabilities associated with these delinquent GNMA loans.

(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, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Amortized MSRs:
Balance, beginning of quarter	$	1,397		1,407		1,427		1,443		1,414
Purchases	35			25		16		24		45
Servicing from securitizations or asset transfers	69			33		33		26		52
Amortization	(71		)	(68	)	(69	)	(66	)	(68	)
Balance, end of quarter (1)	$	1,430		1,397		1,407		1,427		1,443
Fair value of amortized MSRs:
Beginning of quarter	$	1,813		1,897		2,149		2,288		2,389
End of quarter	1,872			1,813		1,897		2,149		2,288

(1) Commercial amortized MSRs are evaluated for impairment purposes by the following risk strata: agency (GSEs) for multi-family properties and non-agency. There was no valuation allowance recorded for the periods presented on the commercial amortized MSRs.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)

		Quarter ended
(in millions)		Dec 31, 2019			Sep 30, 2019		Jun 30, 2019		Mar 31, 2019		Dec 31, 2018
Servicing income, net:
Servicing fees (1)		$	780		806		830		841		925
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)	(A)	362			(962	)	(1,078	)	(891	)	(1,246	)
Changes due to collection/realization of expected cash flows over time		(571		)	(596	)	(561	)	(482	)	(470	)
Total changes in fair value of MSRs carried at fair value		(209		)	(1,558	)	(1,639	)	(1,373	)	(1,716	)
Amortization		(71		)	(68	)	(69	)	(66	)	(68	)
Net derivative gains (losses) from economic hedges (3)	(B)	(477		)	678		1,155		962		968
Total servicing income, net		$	23		(142	)	277		364		109
Market-related valuation changes to MSRs, net of hedge results (2)(3)	(A)+(B)	$	(115	)	(284	)	77		71		(278	)

(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, 2019			Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,063		1,083	1,107	1,125	1,164
Owned loans serviced (2)	343			346	340	331	334
Subserviced for others	2			3	5	26	4
Total residential servicing	1,408			1,432	1,452	1,482	1,502
Commercial mortgage servicing:
Serviced for others	566			551	548	552	543
Owned loans serviced	124			122	123	122	121
Subserviced for others	9			9	9	9	9
Total commercial servicing	699			682	680	683	673
Total managed servicing portfolio	$	2,107		2,114	2,132	2,165	2,175
Total serviced for others	$	1,629		1,634	1,655	1,677	1,707
Ratio of MSRs to related loans serviced for others	0.79		%	0.76	0.82	0.88	0.94
Weighted-average note rate (mortgage loans serviced for others)	4.25			4.29	4.33	4.34	4.32

(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.

(2) Excludes loans serviced by third parties.

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Wells Fargo & Company and Subsidiaries

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA

		Quarter ended
		Dec 31, 2019			Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018
Net gains on mortgage loan origination/sales activities (in millions):
Residential	(A)	$	503		461	322	232	245
Commercial		101			106	83	47	65
Residential pipeline and unsold/repurchased loan management (1)		156			41	76	65	48
Total		$	760		608	481	344	358
Application data (in billions):
Wells Fargo first mortgage quarterly applications		$	72		85	90	64	48
Refinances as a percentage of applications		51		%	50	44	44	30
Wells Fargo first mortgage unclosed pipeline, at quarter end		$	33		44	44	32	18
Residential real estate originations:
Purchases as a percentage of originations		50		%	60	68	70	78
Refinances as a percentage of originations		50			40	32	30	22
Total		100		%	100	100	100	100
Wells Fargo first mortgage loans (in billions):
Retail		$	27		27	26	14	16
Correspondent		33			30	27	18	21
Other (2)		—			1	—	1	1
Total quarter-to-date		$	60		58	53	33	38
Held-for-sale	(B)	$	42		38	33	22	28
Held-for-investment		18			20	20	11	10
Total quarter-to-date		$	60		58	53	33	38
Total year-to-date		$	204		144	86	33	177
Production margin on residential held-for-sale mortgage originations	(A)/(B)	1.21		%	1.21	0.98	1.05	0.89

(1) Primarily 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.