Diluted EPS of $1.03; Revenue Up 2 Percent from Prior Year

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

• Continued strong financial results:
  • Net income of $5.6 billion, compared with $5.8 billion in third quarter 2015
  • Diluted earnings per share (EPS) of $1.03, compared with $1.05
  • Revenue of $22.3 billion, up 2 percent
  • Pre-tax pre-provision profit1 of $9.1 billion, compared with $9.5 billion
  • Return on assets of 1.17 percent and return on equity of 11.60 percent
• Strong growth in loans and deposits:
  • Total average loans of $957.5 billion, up $62.4 billion, or 7 percent, from third quarter 2015
  • Total average deposits of $1.3 trillion, up $62.7 billion, or 5 percent
• Solid credit quality:
  • Net charge-offs of $805 million, up $102 million from third quarter 2015
    • Net charge-offs were 0.33 percent of average loans (annualized), up from 0.31 percent
  • Nonaccrual loans down $551 million, or 5 percent
  • No reserve build2 or release, consistent with third quarter 2015
• Maintained strong capital levels while continuing to return capital to shareholders:
  • Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent3
  • Period-end common shares outstanding down 24.6 million from second quarter 2016.

Sales Practices Settlements4

On September 8, 2016, Wells Fargo & Company (NYSE: WFC) reached agreements with the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the Office of the Los Angeles City Attorney, regarding allegations that some of its retail customers received products and services they did not request. The amount of the settlements, which the Company had fully accrued for as of June 30, 2016, totaled $185 million, plus $5 million in customer remediation. Key actions are being taken to ensure the Company's culture is wholly aligned with the interests of customers including:

• Eliminated product sales goals for retail banking team members as of October 1, 2016;
• Implemented procedures to send customers a confirmation email approximately an hour after opening any deposit account and an acknowledgement letter after submitting a credit card application;
• Attempting to contact all retail and small business deposit customers across the country, including those who have already received refunded fees, to invite them to review their accounts with their banker. Also contacting credit card customers identified as possibly having unauthorized accounts to confirm whether they need or want their credit card;
• Expanding the scope of our customer account review and remediation to include 2009 and 2010;
• The Independent Directors of the Board have launched an investigation into the Company’s retail banking sales practices and related matters
  • Independent Directors have retained the Shearman & Sterling law firm to assist in the investigation
  • John Stumpf forfeited unvested equity awards valued at approximately $41 million
  • Carrie Tolstedt has left the Company; will receive no severance; has forfeited unvested equity awards valued at approximately $19 million; will not exercise outstanding options during investigation
  • Neither executive will receive a bonus for 2016

Executive Leadership Changes

On October 12, 2016, former Chairman and CEO John Stumpf retired from the Company after 34 years of service. The Board elected Tim Sloan, the Company’s President and Chief Operating Officer, to succeed him as CEO, and Stephen Sanger, its Lead Director, to serve as the Board’s non-executive Chairman, and independent director Elizabeth Duke to serve as Vice Chair. Sloan also was elected to the Board.

President and CEO Tim Sloan said, “I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders, and community partners. We know that it will take time and a lot of hard work to earn back our reputation, but I am confident because of the incredible caliber of our team members. We will work tirelessly to build a stronger and better Wells Fargo for generations to come.”

Financial Results

Wells Fargo & Company (NYSE: WFC) reported net income of $5.6 billion, or $1.03 per diluted common share, for third quarter 2016, compared with $5.8 billion, or $1.05 per share, for third quarter 2015, and $5.6 billion, or $1.01 per share, for second quarter 2016.

Selected Financial Information
			Quarter ended
			Sep 30,					Jun 30,			Sep 30,
			2016					2016			2015
Earnings
Diluted earnings per common share			$	1.03				1.01			1.05
Wells Fargo net income (in billions)				5.64				5.56			5.80
Return on assets (ROA)				1.17	%			1.20			1.32
Return on equity (ROE)				11.60				11.70			12.62
Return on average tangible common equity (ROTCE)(a)				13.96				14.15			15.19
Asset Quality
Net charge-offs (annualized) as a % of average total loans				0.33	%			0.39			0.31
Allowance for credit losses as a % of total loans				1.32				1.33			1.39
Allowance for credit losses as a % of annualized net charge-offs				396				343			450
Other
Revenue (in billions)			$	22.3				22.2			21.9
Efficiency ratio				59.4	%			58.1			56.7
Average loans (in billions)			$	957.5				950.8			895.1
Average deposits (in billions)				1,261.5				1,236.7			1,198.9
Net interest margin				2.82	%			2.86			2.96
(a) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity, which utilizes tangible common equity, is a useful financial measure because it enables investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported solid results for the third quarter, reflecting the benefits of our diversified business model, our strong balance sheet and improved credit performance. Revenue increased linked quarter on higher net interest income, driven by growth in earning assets and increased investment in our securities portfolio, as well as solid mortgage banking results. While expenses increased from second quarter, credit results improved from the prior period led by strong performance in consumer real estate and improvements in our oil and gas portfolio. Capital remained strong and our net payout ratio5 was 61 percent in the quarter, as we returned $3.2 billion to shareholders through common stock dividends and net share repurchases. We will continue to monitor impacts from the recent sales practice settlements to our business activity levels.”

Net Interest Income

Net interest income in third quarter 2016 increased $219 million from second quarter 2016 to $12.0 billion, primarily due to growth in investment securities, loans, trading assets and mortgages held-for-sale. The third quarter also included one additional day, accounting for approximately one third of the increase in net interest income relative to the second quarter. The benefit to net interest income from asset growth was partially offset by increased interest expense from higher debt balances and a modest increase in commercial deposit costs.

Net interest margin was 2.82 percent, down 4 basis points from second quarter 2016 primarily due to growth in long-term debt and deposits, partially offset by the benefit of earning asset growth.

Noninterest Income

Noninterest income in the third quarter was $10.4 billion, in line with second quarter 2016. Third quarter noninterest income reflected strong mortgage banking results, as well as growth in trust and investment fees, higher gains from trading activities driven by higher deferred compensation plan investment results (largely offset in employee benefits expense) and higher service charges on deposit accounts. These increases were offset by a decline in other income, which in the second quarter included a $290 million gain from the sale of our health benefit services business, and lower gains on debt securities and equity investments. Equity gains in third quarter 2016 were down $780 million from an elevated level in third quarter 2015.

Trust and investment fees were $3.6 billion, up $66 million from the prior quarter, primarily due to higher asset-based fees and higher trust and investment management fees.

Mortgage banking noninterest income was $1.7 billion, up $253 million from second quarter 2016, driven by net gains on mortgage loan origination/sales activities. Residential mortgage loan originations were $70 billion in the third quarter, up from $63 billion in the second quarter. The production margin on residential held-for-sale mortgage loan originations6 was 1.81 percent, up from 1.66 percent in second quarter.

Noninterest Expense

Noninterest expense in the third quarter was $13.3 billion, compared with $12.9 billion in the prior quarter. Third quarter expenses included increased operating losses, reflecting higher litigation accruals, as well as higher salaries, a $107 million donation to the Wells Fargo Foundation and higher FDIC insurance expense. These increases were partially offset by gains on sales of foreclosed assets, as well as lower incentive compensation, and advertising and promotion. The efficiency ratio was 59.4 percent in third quarter 2016, compared with 58.1 percent in the prior quarter. The Company expects the efficiency ratio to remain at an elevated level.

Loans

Total loans were $961.3 billion at September 30, 2016, up $4.2 billion from June 30, 2016. Loan growth was driven by growth in commercial loans, including real estate mortgage and commercial and industrial, as well as growth in consumer loans, including real estate 1-4 family first mortgage, credit card and automobile. Total average loans were $957.5 billion in the third quarter, up $6.7 billion from the prior quarter.

Period-End Loan Balances
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Commercial			$	496,454			494,538			488,205			456,583			447,338
Consumer				464,872			462,619			459,053			459,976			455,895
Total loans			$	961,326			957,157			947,258			916,559			903,233
Change from prior quarter			$	4,169			9,899			30,699			13,326			14,774

Investment Securities

Investment securities were $390.8 billion at September 30, 2016, up $37.4 billion from second quarter, as approximately $57 billion of purchases, predominantly federal agency mortgage-backed securities in our available-for-sale portfolio, were partially offset by run-off, including accelerated prepayments of investment securities, and sales.

Net unrealized available-for-sale securities gains of $4.5 billion at September 30, 2016, declined $63 million from June 30, 2016, as modestly higher interest rates were partially offset by tighter credit spreads.

Deposits

Total average deposits for third quarter 2016 were $1.3 trillion, up 2 percent from the prior quarter, driven by both commercial and consumer growth. The average deposit cost for third quarter 2016 was 11 basis points, flat compared with the prior quarter.

Capital

Capital levels remained strong in the third quarter, with a Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent3, compared with 10.6 percent in the prior quarter. In third quarter 2016, the Company repurchased 38.3 million shares of its common stock, contributing to a net reduction in period-end common shares outstanding of 24.6 million shares. The Company paid a quarterly common stock dividend of $0.38 per share, up from $0.375 per share a year ago.

Credit Quality

“Credit results improved in the third quarter as our quarterly loss rate decreased to 0.33 percent (annualized),” said Chief Risk Officer Mike Loughlin. “The loan portfolio continued to perform well, led by strong performance in consumer real estate. Oil and gas portfolio performance during the quarter improved with lower credit losses and improved portfolio quality. The allowance for credit losses in the third quarter remained unchanged from the second quarter. Future allowance levels will be based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”

Net Loan Charge-offs

The quarterly loss rate of 0.33 percent (annualized) reflected commercial losses of 0.17 percent and consumer losses of 0.51 percent. Credit losses were $805 million in third quarter 2016, down $119 million, or 13 percent, from second quarter 2016. The decline was primarily due to a $94 million decrease in oil and gas losses. Consumer losses increased $23 million, driven by a $47 million increase in automobile losses from seasonally low losses in the second quarter, partially offset by a decrease in credit card losses of $25 million.

Net Loan Charge-Offs
			Quarter ended
			September 30, 2016									June 30, 2016									March 31, 2016
			Net loan					As a % of				Net loan					As a % of				Net loan					As a % of
			charge-					average				charge-					average				charge-					average
($ in millions)			offs					loans (a)				offs					loans (a)				offs					loans (a)
Commercial:
Commercial and industrial			$	259				0.32	%			$	368				0.46	%			$	273				0.36	%
Real estate mortgage				(28	)			(0.09	)				(20	)			(0.06	)				(29	)			(0.10	)
Real estate construction				(18	)			(0.32	)				(3	)			(0.06	)				(8	)			(0.13	)
Lease financing				2				0.04					12				0.27					1				0.01
Total commercial				215				0.17					357				0.29					237				0.20
Consumer:
Real estate 1-4 family first mortgage				20				0.03					14				0.02					48				0.07
Real estate 1-4 family junior lien mortgage				49				0.40					62				0.49					74				0.57
Credit card				245				2.82					270				3.25					262				3.16
Automobile				137				0.87					90				0.59					127				0.85
Other revolving credit and installment				139				1.40					131				1.32					138				1.42
Total consumer				590				0.51					567				0.49					649				0.57
Total			$	805				0.33	%			$	924				0.39	%			$	886				0.38	%
(a) Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased $1.1 billion from second quarter 2016 to $12.0 billion. Nonaccrual loans decreased $977 million from second quarter to $11.0 billion led by a $732 million decrease in consumer nonaccruals. Foreclosed assets of $1.0 billion were down $97 million from second quarter 2016.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
			September 30, 2016									June 30, 2016									March 31, 2016
								As a									As a									As a
								% of									% of									% of
			Total					total				Total					total				Total					total
($ in millions)			balances					loans				balances					loans				balances					loans
Commercial:
Commercial and industrial			$	3,331				1.03	%			$	3,464				1.07	%			$	2,911				0.91	%
Real estate mortgage				780				0.60					872				0.68					896				0.72
Real estate construction				59				0.25					59				0.25					63				0.27
Lease financing				92				0.49					112				0.59					99				0.52
Total commercial				4,262				0.86					4,507				0.91					3,969				0.81
Consumer:
Real estate 1-4 family first mortgage				5,310				1.91					5,970				2.15					6,683				2.43
Real estate 1-4 family junior lien mortgage				1,259				2.62					1,330				2.67					1,421				2.77
Automobile				108				0.17					111				0.18					114				0.19
Other revolving credit and installment				47				0.12					45				0.11					47				0.12
Total consumer				6,724				1.45					7,456				1.61					8,265				1.80
Total nonaccrual loans				10,986				1.14					11,963				1.25					12,234				1.29
Foreclosed assets:
Government insured/guaranteed				282									321									386
Non-government insured/guaranteed				738									796									893
Total foreclosed assets				1,020									1,117									1,279
Total nonperforming assets			$	12,006				1.25	%			$	13,080				1.37	%			$	13,513				1.43	%
Change from prior quarter:
Total nonaccrual loans			$	(977	)							$	(271	)							$	852
Total nonperforming assets				(1,074	)								(433	)								706

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $853 million at September 30, 2016, up from $788 million at June 30, 2016. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgage loans and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $11.2 billion at September 30, 2016, down from $11.6 billion at June 30, 2016.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.7 billion at September 30, 2016, which was unchanged from June 30, 2016. The allowance coverage for total loans was 1.32 percent, compared with 1.33 percent in second quarter 2016. The allowance covered 4.0 times annualized third quarter net charge-offs, compared with 3.4 times in the prior quarter. The allowance coverage for nonaccrual loans was 116 percent at September 30, 2016, compared with 107 percent at June 30, 2016. “We believe the allowance was appropriate for losses inherent in the loan portfolio at September 30, 2016,” said Loughlin.

Business Segment Performance

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

			Quarter ended
			Sep 30,				Jun 30,			Sep 30,
(in millions)			2016				2016			2015
Community Banking			$	3,227			3,179			3,560
Wholesale Banking				2,047			2,073			1,925
Wealth and Investment Management				677			584			606

Community Banking offers a complete line of diversified financial products and services for consumers and small businesses including checking and savings accounts, credit and debit cards, and auto, student, and small business lending. Community Banking also offers investment, insurance and trust services in 39 states and D.C., and mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Lending business units.

Selected Financial Information
			Quarter ended
			Sep 30,				Jun 30,			Sep 30,
(in millions)				2016			2016			2015
Total revenue			$	12,387			12,204			12,933
Provision for credit losses				651			689			668
Noninterest expense				6,953			6,648			6,778
Segment net income				3,227			3,179			3,560
(in billions)
Average loans				489.2			485.7			477.0
Average assets				993.6			967.6			898.9
Average deposits				708.0			703.7			655.6

Community Banking reported net income of $3.2 billion, up $48 million, or 2 percent, from second quarter 2016. Revenue of $12.4 billion increased $183 million, or 1 percent, from second quarter 2016 due to higher net interest income, mortgage banking revenue, trust and investment fees, deposit service charges, and other income (hedge ineffectiveness), partially offset by lower market sensitive revenue, primarily lower gains on sales of debt securities and equity investments. Noninterest expense increased $305 million, or 5 percent, compared with second quarter 2016, due to higher operating losses and a donation to the Wells Fargo Foundation, partially offset by lower personnel expense. The provision for credit losses decreased $38 million from the prior quarter.

Net income was down $333 million, or 9 percent, from third quarter 2015. Revenue decreased $546 million, or 4 percent, compared with a year ago due to lower gains on equity investments, partially offset by higher deferred compensation plan investment results (offset in employee benefits expense), higher gains on sales of debt securities, card fees, and deposit service charges. Noninterest expense increased $175 million, or 3 percent, from a year ago driven by higher deferred compensation plan expense (offset in trading revenue) and operating losses, partially offset by lower foreclosed assets expense. The provision for credit losses decreased $17 million from a year ago.

Regional Banking

• Retail Banking
  • Primary consumer checking customers7 up 4.7 percent year-over-year8
  • Primary consumer checking customers7 in September up 4.5 percent year-over-year
  • Debit card purchase volume9 of $76.0 billion in third quarter, up 8 percent year-over-year
  • Retail Banking household cross-sell ratio of 6.25 products per household, compared with 6.33 year-over-year8,10
• Small Business Banking
  • For the 14th consecutive year, America’s #1 small business lender and #1 lender to small businesses in low- and moderate-income areas (loans under $1 million; 2015 Community Reinvestment Act data, released August 2016)
  • As part of the Wells Fargo Works for Small BusinessSM initiative, the Company launched the new Business Credit Center at wellsfargoworks.com to help business owners better understand how to prepare for and manage credit
• Digital Banking
  • 27.4 million digital (online and mobile) active customers, including 18.8 million mobile active users8,11
  • #1 overall performance in Keynote Mobile Banking Scorecard; also best in “Functionality,” “Ease of Use,” and “Best App & Mobile Web Experiences” (September 2016)

Consumer Lending Group

• Home Lending
  • Originations of $70 billion, up from $63 billion in prior quarter
  • Applications of $100 billion, up from $95 billion in prior quarter
  • Application pipeline of $50 billion at quarter end, up from $47 billion at June 30, 2016
• Consumer Credit
  • Credit card purchase volume of $19.6 billion in third quarter, up 8 percent year-over-year
  • Credit card penetration in retail banking households rose to 45.4 percent, up from 44.8 percent in prior year8,12
  • Auto originations of $8.1 billion in third quarter, down 2 percent from prior quarter and prior year

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

Selected Financial Information
			Quarter ended
			Sep 30,				Jun 30,			Sep 30,
(in millions)			2016				2016			2015
Total revenue			$	7,147			7,284			6,326
Provision for credit losses				157			385			36
Noninterest expense				4,120			4,036			3,503
Segment net income				2,047			2,073			1,925
(in billions)
Average loans				454.3			451.4			405.6
Average assets				794.2			772.6			739.1
Average deposits				441.2			425.8			442.0

Wholesale Banking reported net income of $2.0 billion, down $26 million, or 1 percent, from second quarter 2016. Revenue of $7.1 billion decreased $137 million, or 2 percent, from prior quarter due to the $290 million gain on the sale of our health benefit services business in second quarter 2016, partially offset by higher net interest income, increased mortgage banking fees in multi-family capital and structured real estate, as well as higher commercial real estate brokerage fees. Noninterest expense increased $84 million, or 2 percent, from the prior quarter primarily due to higher FDIC insurance expense, personnel expense and operating losses. The provision for credit losses decreased $228 million from the prior quarter on lower oil and gas related net charge-offs.

Net income was up $122 million, or 6 percent, from third quarter 2015. Revenue increased $821 million, or 13 percent, from third quarter 2015, on strong loan growth, including the GE Capital portfolio acquisitions, higher customer accommodation trading, strong mortgage banking fees and increased investment banking fees, partially offset by lower insurance fees driven by the sale of our crop insurance business in first quarter 2016 and lower gains on debt securities and equity investments. Noninterest expense increased $617 million, or 18 percent, from a year ago primarily due to the GE Capital portfolio acquisitions and higher personnel expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $121 million from a year ago primarily due to higher oil and gas net charge-offs.

• Average loans increased 12 percent from third quarter 2015, on broad-based growth, including asset-backed finance, commercial real estate, corporate banking, equipment finance and structured real estate as well as the GE Capital portfolio acquisitions
• Treasury management revenue up 2 percent from third quarter 2015

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

Selected Financial Information
			Quarter ended
			Sep 30,				Jun 30,			Sep 30,
(in millions)			2016				2016			2015
Total revenue			$	4,099			3,919			3,878
Provision (reversal of provision) for credit losses				4			2			(6	)
Noninterest expense				2,999			2,976			2,909
Segment net income				677			584			606
(in billions)
Average loans				68.4			66.7			61.1
Average assets				212.1			205.3			192.6
Average deposits				189.2			182.5			172.6

Wealth and Investment Management reported net income of $677 million, up $93 million, or 16 percent, from second quarter 2016. Revenue of $4.1 billion increased $180 million, or 5 percent, from the prior quarter, primarily due to higher asset-based fees, net interest income, and higher deferred compensation plan investment results (offset in employee benefits expense). Noninterest expense increased $23 million, or 1 percent, from the prior quarter, largely driven by higher deferred compensation plan expense (offset in trading revenue) and higher broker commissions. The provision for credit losses increased $2 million from second quarter 2016.

Net income was up $71 million, or 12 percent, from third quarter 2015. Revenue increased $221 million, or 6 percent, from a year ago primarily driven by higher deferred compensation plan investment results (offset in employee benefits expense) and higher net interest income, as average loans increased $7.3 billion, or 12 percent, to $68.4 billion. Noninterest expense increased $90 million, or 3 percent, from a year ago, primarily due to higher deferred compensation plan expense (offset in trading revenue), partially offset by lower operating losses. The provision for credit losses increased $10 million from a year ago.

Retail Brokerage

• Client assets of $1.5 trillion, up 10 percent from prior year
• Advisory assets of $458 billion, up 12 percent from prior year, primarily driven by higher market valuations and positive net flows
• Strong loan growth, with average balances up 18 percent from prior year largely due to continued growth in non-conforming mortgage loans and security-based lending

Wealth Management

• Client assets of $230 billion, up 5 percent from prior year
• Average loan balances up 9 percent over prior year primarily driven by continued growth in non-conforming mortgage loans, commercial loans and security-based lending

Retirement

• IRA assets of $379 billion, up 10 percent from prior year
• Institutional Retirement plan assets of $347 billion, up 5 percent from prior year

Asset Management

• Total assets under management of $498 billion, up 4 percent from prior year primarily due to higher market valuations, and positive fixed income and money market net inflows, partially offset by equity outflows

Conference Call

The Company will host a live conference call on Friday, October 14, at 7 a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~101416.

A replay of the conference call will be available beginning at 10 a.m. PT (1 p.m. ET) on Friday, October 14 through Friday, October 28. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #31498547. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~101416.

Endnotes
1		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.
2		Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
3		See table on page 36 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.
4		Additional information is provided in our 3Q16 Quarterly Supplement.
5		Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.
6		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 41 for more information.
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 August 2016, comparisons with August 2015.
9		Combined consumer and business debit card purchase volume dollars.
10		Effective second quarter 2016, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. Additionally, we updated the products included to capture business products in addition to retail products that have the potential for revenue generation and long-term viability. Products and services that generally do not meet these criteria – such as ATM cards, online banking, bill pay and direct deposit – are not included. This change in methodology was the result of a long-term evaluation spanning 18 months to best align our cross-sell metric with our strategic focus of long-term retail banking relationships. Prior period metrics have been revised to conform with the updated methodology. Cross-sell metrics have not been adjusted to reflect the de minimis impact of approximately 2.1 million potentially unauthorized accounts identified in a review by an independent consulting firm. The maximum impact of these accounts to this reported metric in any one quarter was 0.02 products per household, or 0.3 percent.
11		Primarily includes retail banking, consumer lending, small business and business banking customers.
12		Credit card penetration defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. Effective second quarter 2016, Retail Banking households reflect only those households that maintain a retail checking account, which we believe provides the foundation for long-term retail banking relationships. This change in methodology was the result of a long-term evaluation spanning 18 months to best align our cross-sell metric with our strategic focus of long-term retail banking relationships. Prior period metrics have been revised to conform with the updated methodology. Credit card household penetration rates have not been adjusted to reflect the impact of the approximately 565,000 potentially unauthorized accounts identified by an independent consulting firm because the maximum impact in any one quarter was not greater than 86 basis points, or approximately 2 percent.

Forward-Looking Statements

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

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

• current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;
• our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;
• financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;
• the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;
• the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;
• negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;
• our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;
• the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;
• significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;
• the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;
• reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;
• a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;
• the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;
• fiscal and monetary policies of the Federal Reserve Board; and
• the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

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, 2015, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,600 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 27 on Fortune’s 2016 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially.

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
				Pages
Summary Information
Summary Financial Data				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)				25
Noninterest Income and Noninterest Expense				27
Balance Sheet
Consolidated Balance Sheet				30
Investment Securities				32
Loans
Loans				32
Nonperforming Assets				33
Loans 90 Days or More Past Due and Still Accruing				34
Purchased Credit-Impaired Loans				35
Pick-A-Pay Portfolio				36
Changes in Allowance for Credit Losses				38
Equity
Tangible Common Equity				39
Common Equity Tier 1 Under Basel III				40
Operating Segments
Operating Segment Results				41
Other
Mortgage Servicing and other related data				43

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
															% Change
			Quarter ended												Sep 30, 2016 from								Nine months ended
($ in millions, except per share amounts)			Sep 30, 2016					Jun 30,2016			Sep 30,2015				Jun 30,2016				Sep 30,2015				Sep 30, 2016					Sep 30,2015				%Change
For the Period
Wells Fargo net income			$	5,644				5,558			5,796				2	%			(3	)			$	16,664				17,319				(4	)%
Wells Fargo net income applicable to common stock				5,243				5,173			5,443				1				(4	)				15,501				16,267				(5	)
Diluted earnings per common share				1.03				1.01			1.05				2				(2	)				3.03				3.12				(3	)
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)				1.17	%			1.20			1.32				(3	)			(11	)				1.19	%			1.34				(11	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)				11.60				11.70			12.62				(1	)			(8	)				11.68				12.83				(9	)
Return on average tangible common equity (ROTCE)(1)				13.96				14.15			15.19				(1	)			(8	)				14.08				15.46				(9	)
Efficiency ratio (2)				59.4				58.1			56.7				2				5					58.7				58.0				1
Total revenue			$	22,328				22,162			21,875				1				2				$	66,685				64,471				3
Pre-tax pre-provision profit (PTPP) (3)				9,060				9,296			9,476				(3	)			(4	)				27,523				27,096				2
Dividends declared per common share				0.380				0.380			0.375				—				1					1.135				1.10				3
Average common shares outstanding				5,043.4				5,066.9			5,125.8				—				(2	)				5,061.9				5,145.9				(2	)
Diluted average common shares outstanding				5,094.6				5,118.1			5,193.8				—				(2	)				5,118.2				5,220.3				(2	)
Average loans			$	957,484				950,751			895,095				1				7				$	945,197				876,384				8
Average assets				1,914,586				1,862,084			1,746,402				3				10					1,865,694				1,727,967				8
Average total deposits				1,261,527				1,236,658			1,198,874				2				5					1,239,287				1,186,412				4
Average consumer and small business banking deposits (4)				739,066				726,359			683,245				2				8					726,798				674,741				8
Net interest margin				2.82	%			2.86			2.96				(1	)			(5	)				2.86	%			2.96				(3	)
At Period End
Investment securities			$	390,832				353,426			345,074				11				13				$	390,832				345,074				13
Loans				961,326				957,157			903,233				—				6					961,326				903,233				6
Allowance for loan losses				11,583				11,664			11,659				(1	)			(1	)				11,583				11,659				(1	)
Goodwill				26,688				26,963			25,684				(1	)			4					26,688				25,684				4
Assets				1,942,124				1,889,235			1,751,265				3				11					1,942,124				1,751,265				11
Deposits				1,275,894				1,245,473			1,202,179				2				6					1,275,894				1,202,179				6
Common stockholders' equity				179,916				178,633			172,089				1				5					179,916				172,089				5
Wells Fargo stockholders’ equity				203,028				201,745			193,051				1				5					203,028				193,051				5
Total equity				203,958				202,661			194,043				1				5					203,958				194,043				5
Tangible common equity (1)				149,829				148,110			143,352				1				5					149,829				143,352				5
Common shares outstanding				5,023.9				5,048.5			5,108.5				—				(2	)				5,023.9				5,108.5				(2	)
Book value per common share (5)			$	35.81				35.38			33.69				1				6				$	35.81				33.69				6
Tangible book value per common share (1)(5)				29.82				29.34			28.06				2				6					29.82				28.06				6
Common stock price:
High				51.00				51.41			58.77				(1	)			(13	)				53.27				58.77				(9	)
Low				44.10				44.50			47.75				(1	)			(8	)				44.10				47.75				(8	)
Period end				44.28				47.33			51.35				(6	)			(14	)				44.28				51.35				(14	)
Team members (active, full-time equivalent)				268,800				267,900			265,200				—				1					268,800				265,200				1
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER SUMMARY FINANCIAL DATA
			Quarter ended
($ in millions, except per share amounts)			Sep 30, 2016					Jun 30,2016			Mar 31,2016			Dec 31,2015			Sep 30,2015
For the Quarter
Wells Fargo net income			$	5,644				5,558			5,462			5,575			5,796
Wells Fargo net income applicable to common stock				5,243				5,173			5,085			5,203			5,443
Diluted earnings per common share				1.03				1.01			0.99			1.00			1.05
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)				1.17	%			1.20			1.21			1.24			1.32
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)				11.60				11.70			11.75			11.93			12.62
Return on average tangible common equity (ROTCE)(1)				13.96				14.15			14.15			14.30			15.19
Efficiency ratio (2)				59.4				58.1			58.7			58.4			56.7
Total revenue			$	22,328				22,162			22,195			21,586			21,875
Pre-tax pre-provision profit (PTPP) (3)				9,060				9,296			9,167			8,987			9,476
Dividends declared per common share				0.380				0.380			0.375			0.375			0.375
Average common shares outstanding				5,043.4				5,066.9			5,075.7			5,108.5			5,125.8
Diluted average common shares outstanding				5,094.6				5,118.1			5,139.4			5,177.9			5,193.8
Average loans			$	957,484				950,751			927,220			912,280			895,095
Average assets				1,914,586				1,862,084			1,819,875			1,787,287			1,746,402
Average total deposits				1,261,527				1,236,658			1,219,430			1,216,809			1,198,874
Average consumer and small business banking deposits (4)				739,066				726,359			714,837			696,484			683,245
Net interest margin				2.82	%			2.86			2.90			2.92			2.96
At Quarter End
Investment securities			$	390,832				353,426			334,899			347,555			345,074
Loans				961,326				957,157			947,258			916,559			903,233
Allowance for loan losses				11,583				11,664			11,621			11,545			11,659
Goodwill				26,688				26,963			27,003			25,529			25,684
Assets				1,942,124				1,889,235			1,849,182			1,787,632			1,751,265
Deposits				1,275,894				1,245,473			1,241,490			1,223,312			1,202,179
Common stockholders' equity				179,916				178,633			175,534			172,036			172,089
Wells Fargo stockholders’ equity				203,028				201,745			197,496			192,998			193,051
Total equity				203,958				202,661			198,504			193,891			194,043
Tangible common equity (1)				149,829				148,110			144,679			143,337			143,352
Common shares outstanding				5,023.9				5,048.5			5,075.9			5,092.1			5,108.5
Book value per common share (5)			$	35.81				35.38			34.58			33.78			33.69
Tangible book value per common share (1)(5)				29.82				29.34			28.50			28.15			28.06
Common stock price:
High				51.00				51.41			53.27			56.34			58.77
Low				44.10				44.50			44.50			49.51			47.75
Period end				44.28				47.33			48.36			54.36			51.35
Team members (active, full-time equivalent)				268,800				267,900			268,600			264,700			265,200
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity. For additional information, including a corresponding reconciliation to GAAP financial measures, see the "Tangible Common Equity" tables on page 35.
(2) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).
(3) Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.
(4) Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.
(5) Book value per common share is common stockholders' equity divided by common shares outstanding. Tangible book value per common share is tangible common equity divided by common shares outstanding.

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF INCOME
			Quarter ended September 30,									%				Nine months ended September 30,									%
(in millions, except per share amounts)			2016					2015				Change				2016					2015				Change
Interest income
Trading assets			$	593				485				22	%			$	1,761				1,413				25	%
Investment securities				2,298				2,289				—					6,736				6,614				2
Mortgages held for sale				207				223				(7	)				549				609				(10	)
Loans held for sale				2				4				(50	)				7				14				(50	)
Loans				9,978				9,216				8					29,377				27,252				8
Other interest income				409				228				79					1,175				732				61
Total interest income				13,487				12,445				8					39,605				36,634				8
Interest expense
Deposits				356				232				53					995				722				38
Short-term borrowings				85				12				608					229				51				349
Long-term debt				1,006				655				54					2,769				1,879				47
Other interest expense				88				89				(1	)				260				269				(3	)
Total interest expense				1,535				988				55					4,253				2,921				46
Net interest income				11,952				11,457				4					35,352				33,713				5
Provision for credit losses				805				703				15					2,965				1,611				84
Net interest income after provision for credit losses				11,147				10,754				4					32,387				32,102				1
Noninterest income
Service charges on deposit accounts				1,370				1,335				3					4,015				3,839				5
Trust and investment fees				3,613				3,570				1					10,545				10,957				(4	)
Card fees				997				953				5					2,935				2,754				7
Other fees				926				1,099				(16	)				2,765				3,284				(16	)
Mortgage banking				1,667				1,589				5					4,679				4,841				(3	)
Insurance				293				376				(22	)				1,006				1,267				(21	)
Net gains (losses) from trading activities				415				(26	)			NM					943				515				83
Net gains on debt securities				106				147				(28	)				797				606				32
Net gains from equity investments				140				920				(85	)				573				1,807				(68	)
Lease income				534				189				183					1,404				476				195
Other				315				266				18					1,671				412				306
Total noninterest income				10,376				10,418				—					31,333				30,758				2
Noninterest expense
Salaries				4,224				4,035				5					12,359				11,822				5
Commission and incentive compensation				2,520				2,604				(3	)				7,769				7,895				(2	)
Employee benefits				1,223				821				49					3,993				3,404				17
Equipment				491				459				7					1,512				1,423				6
Net occupancy				718				728				(1	)				2,145				2,161				(1	)
Core deposit and other intangibles				299				311				(4	)				891				935				(5	)
FDIC and other deposit assessments				310				245				27					815				715				14
Other				3,483				3,196				9					9,678				9,020				7
Total noninterest expense				13,268				12,399				7					39,162				37,375				5
Income before income tax expense				8,255				8,773				(6	)				24,558				25,485				(4	)
Income tax expense				2,601				2,790				(7	)				7,817				7,832				—
Net income before noncontrolling interests				5,654				5,983				(5	)				16,741				17,653				(5	)
Less: Net income from noncontrolling interests				10				187				(95	)				77				334				(77	)
Wells Fargo net income			$	5,644				5,796				(3	)			$	16,664				17,319				(4	)
Less: Preferred stock dividends and other				401				353				14					1,163				1,052				11
Wells Fargo net income applicable to common stock			$	5,243				5,443				(4	)			$	15,501				16,267				(5	)
Per share information
Earnings per common share			$	1.04				1.06				(2	)			$	3.06				3.16				(3	)
Diluted earnings per common share				1.03				1.05				(2	)				3.03				3.12				(3	)
Dividends declared per common share				0.380				0.375				1					1.135				1.100				3
Average common shares outstanding				5,043.4				5,125.8				(2	)				5,061.9				5,145.9				(2	)
Diluted average common shares outstanding				5,094.6				5,193.8				(2	)				5,118.2				5,220.3				(2	)
NM – Not meaningful

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions, except per share amounts)			2016				2016			2016			2015			2015
Interest income
Trading assets			$	593			572			596			558			485
Investment securities				2,298			2,176			2,262			2,323			2,289
Mortgages held for sale				207			181			161			176			223
Loans held for sale				2			3			2			5			4
Loans				9,978			9,822			9,577			9,323			9,216
Other interest income				409			392			374			258			228
Total interest income				13,487			13,146			12,972			12,643			12,445
Interest expense
Deposits				356			332			307			241			232
Short-term borrowings				85			77			67			13			12
Long-term debt				1,006			921			842			713			655
Other interest expense				88			83			89			88			89
Total interest expense				1,535			1,413			1,305			1,055			988
Net interest income				11,952			11,733			11,667			11,588			11,457
Provision for credit losses				805			1,074			1,086			831			703
Net interest income after provision for credit losses				11,147			10,659			10,581			10,757			10,754
Noninterest income
Service charges on deposit accounts				1,370			1,336			1,309			1,329			1,335
Trust and investment fees				3,613			3,547			3,385			3,511			3,570
Card fees				997			997			941			966			953
Other fees				926			906			933			1,040			1,099
Mortgage banking				1,667			1,414			1,598			1,660			1,589
Insurance				293			286			427			427			376
Net gains (losses) from trading activities				415			328			200			99			(26	)
Net gains on debt securities				106			447			244			346			147
Net gains from equity investments				140			189			244			423			920
Lease income				534			497			373			145			189
Other				315			482			874			52			266
Total noninterest income				10,376			10,429			10,528			9,998			10,418
Noninterest expense
Salaries				4,224			4,099			4,036			4,061			4,035
Commission and incentive compensation				2,520			2,604			2,645			2,457			2,604
Employee benefits				1,223			1,244			1,526			1,042			821
Equipment				491			493			528			640			459
Net occupancy				718			716			711			725			728
Core deposit and other intangibles				299			299			293			311			311
FDIC and other deposit assessments				310			255			250			258			245
Other				3,483			3,156			3,039			3,105			3,196
Total noninterest expense				13,268			12,866			13,028			12,599			12,399
Income before income tax expense				8,255			8,222			8,081			8,156			8,773
Income tax expense				2,601			2,649			2,567			2,533			2,790
Net income before noncontrolling interests				5,654			5,573			5,514			5,623			5,983
Less: Net income from noncontrolling interests				10			15			52			48			187
Wells Fargo net income			$	5,644			5,558			5,462			5,575			5,796
Less: Preferred stock dividends and other				401			385			377			372			353
Wells Fargo net income applicable to common stock			$	5,243			5,173			5,085			5,203			5,443
Per share information
Earnings per common share			$	1.04			1.02			1.00			1.02			1.06
Diluted earnings per common share				1.03			1.01			0.99			1.00			1.05
Dividends declared per common share				0.380			0.380			0.375			0.375			0.375
Average common shares outstanding				5,043.4			5,066.9			5,075.7			5,108.5			5,125.8
Diluted average common shares outstanding				5,094.6			5,118.1			5,139.4			5,177.9			5,193.8

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Quarter ended												Nine months ended
			September 30,									%			September 30,									%
(in millions)			2016					2015				Change			2016					2015				Change
Wells Fargo net income			$	5,644				5,796				(3)%			$	16,664				17,319				(4)%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains (losses) arising during the period				112				(441	)			NM				2,478				(2,017	)			NM
Reclassification of net gains to net income				(193	)			(439	)			(56)				(1,001	)			(957	)			5
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period				(445	)			1,769				NM				2,611				2,233				17
Reclassification of net gains on cash flow hedges to net income				(262	)			(293	)			(11)				(783	)			(795	)			(2)
Defined benefit plans adjustments:
Net actuarial losses arising during the period				(447	)			—				NM				(474	)			(11	)			NM
Amortization of net actuarial loss, settlements and other to net income				39				30				30				115				103				12
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period				(10	)			(59	)			(83)				27				(104	)			NM
Other comprehensive income (loss), before tax				(1,206	)			567				NM				2,973				(1,548	)			NM
Income tax (expense) benefit related to other comprehensive income				461				(268	)			NM				(1,110	)			544				NM
Other comprehensive income (loss), net of tax				(745	)			299				NM				1,863				(1,004	)			NM
Less: Other comprehensive income (loss) from noncontrolling interests				19				(22	)			NM				(24	)			125				NM
Wells Fargo other comprehensive income (loss), net of tax				(764	)			321				NM				1,887				(1,129	)			NM
Wells Fargo comprehensive income				4,880				6,117				(20)				18,551				16,190				15
Comprehensive income from noncontrolling interests				29				165				(82)				53				459				(88)
Total comprehensive income			$	4,909				6,282				(22)			$	18,604				16,649				12
NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
			Quarter ended
			Sep 30,					Jun 30,				Mar 31,				Dec 31,				Sep 30,
(in millions)			2016					2016				2016				2015				2015
Balance, beginning of period			$	202,661				198,504				193,891				194,043				190,676
Cumulative effect from change in consolidation accounting (1)				—				—				121				—				—
Wells Fargo net income				5,644				5,558				5,462				5,575				5,796
Wells Fargo other comprehensive income (loss), net of tax				(764	)			1,174				1,477				(2,092	)			321
Noncontrolling interests				14				(92	)			(5	)			(100	)			(123	)
Common stock issued				300				397				1,079				310				505
Common stock repurchased (2)				(1,839	)			(2,214	)			(2,029	)			(1,974	)			(2,137	)
Preferred stock released by ESOP				236				371				313				210				225
Common stock warrants repurchased/exercised				(17	)			—				—				—				(17	)
Preferred stock issued				—				1,126				975				—				975
Common stock dividends				(1,918	)			(1,930	)			(1,904	)			(1,917	)			(1,926	)
Preferred stock dividends				(401	)			(386	)			(378	)			(371	)			(356	)
Tax benefit from stock incentive compensation				31				23				149				22				22
Stock incentive compensation expense				39				139				369				204				98
Net change in deferred compensation and related plans				(28	)			(9	)			(1,016	)			(19	)			(16	)
Balance, end of period			$	203,958				202,661				198,504				193,891				194,043
(1) Effective January 1, 2016, we adopted changes in consolidation accounting pursuant to Accounting Standards Update 2015-02 (Amendments to the Consolidation Analysis). Accordingly, we recorded a $121 million net increase to beginning noncontrolling interests as a cumulative-effect adjustment.
(2) For the quarter ended December 31, 2015, includes $500 million related to a private forward repurchase transaction that settled in first quarter 2016 for 9.2 million shares of common stock.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Quarter ended September 30,
			2016														2015
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	299,351				0.50	%			$	373				250,104				0.26	%			$	167
Trading assets				88,838				2.72					605				67,223				2.93					492
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies				25,817				1.52					99				35,709				1.59					143
Securities of U.S. states and political subdivisions				55,170				4.28					590				48,238				4.22					510
Mortgage-backed securities:
Federal agencies				105,780				2.39					631				98,459				2.70					665
Residential and commercial				18,080				5.54					250				21,876				5.84					319
Total mortgage-backed securities				123,860				2.85					881				120,335				3.27					984
Other debt and equity securities				54,176				3.37					459				50,371				3.40					430
Total available-for-sale securities				259,023				3.13					2,029				254,653				3.24					2,067
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44,678				2.19					246				44,649				2.18					245
Securities of U.S. states and political subdivisions				2,507				5.24					33				2,151				5.17					28
Federal agency and other mortgage-backed securities				47,971				1.97					236				27,079				2.38					161
Other debt securities				3,909				1.98					19				5,371				1.75					24
Total held-to-maturity securities				99,065				2.15					534				79,250				2.30					458
Total investment securities				358,088				2.86					2,563				333,903				3.02					2,525
Mortgages held for sale (4)				24,060				3.44					207				24,159				3.69					223
Loans held for sale (4)				199				3.04					2				568				2.57					4
Loans:
Commercial:
Commercial and industrial - U.S.				271,226				3.48					2,369				241,409				3.30					2,005
Commercial and industrial - Non U.S.				51,261				2.40					309				45,923				1.83					212
Real estate mortgage				128,809				3.48					1,127				120,983				3.31					1,009
Real estate construction				23,212				3.50					205				21,626				3.39					184
Lease financing				18,896				4.70					223				12,282				4.18					129
Total commercial				493,404				3.42					4,233				442,223				3.18					3,539
Consumer:
Real estate 1-4 family first mortgage				278,509				3.97					2,764				269,437				4.10					2,762
Real estate 1-4 family junior lien mortgage				48,927				4.37					537				55,298				4.22					588
Credit card				34,578				11.60					1,008				31,649				11.73					936
Automobile				62,461				5.60					880				58,534				5.80					855
Other revolving credit and installment				39,605				5.92					590				37,954				5.84					559
Total consumer				464,080				4.97					5,779				452,872				5.01					5,700
Total loans (4)				957,484				4.17					10,012				895,095				4.11					9,239
Other				6,488				2.30					36				5,028				5.11					64
Total earning assets			$	1,734,508				3.17	%			$	13,798				1,576,080				3.21	%			$	12,714
Funding sources
Deposits:
Interest-bearing checking			$	44,056				0.15	%			$	17				37,783				0.05	%			$	5
Market rate and other savings				667,185				0.07					110				628,119				0.06					90
Savings certificates				25,185				0.30					19				30,897				0.58					44
Other time deposits				54,921				0.93					128				48,676				0.46					57
Deposits in foreign offices				107,072				0.30					82				111,521				0.13					36
Total interest-bearing deposits				898,419				0.16					356				856,996				0.11					232
Short-term borrowings				116,228				0.29					86				90,357				0.06					13
Long-term debt				252,400				1.59					1,006				180,569				1.45					655
Other liabilities				16,771				2.11					88				16,435				2.13					89
Total interest-bearing liabilities				1,283,818				0.48					1,536				1,144,357				0.34					989
Portion of noninterest-bearing funding sources				450,690				—					—				431,723				—					—
Total funding sources			$	1,734,508				0.35					1,536				1,576,080				0.25					989
Net interest margin and net interest income on a taxable-equivalent basis (5)								2.82	%			$	12,262								2.96	%			$	11,725
Noninterest-earning assets
Cash and due from banks			$	18,682													16,979
Goodwill				26,979													25,703
Other				134,417													127,640
Total noninterest-earning assets			$	180,078													170,322
Noninterest-bearing funding sources
Deposits			$	363,108													341,878
Other liabilities				63,777													67,964
Total equity				203,883													192,203
Noninterest-bearing funding sources used to fund earning assets				(450,690	)												(431,723	)
Net noninterest-bearing funding sources			$	180,078													170,322
Total assets			$	1,914,586													1,746,402
(1) Our average prime rate was 3.50% and 3.25% for the quarters ended September 30, 2016 and 2015, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.79% and 0.31% for the same quarters, respectively.
(2) Yields/rates and amounts include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) 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 $310 million and $268 million for the quarters ended September 30, 2016 and 2015, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Nine months ended September 30,
			2016														2015
												Interest													Interest
			Average					Yields/				income/					Average				Yields/				income/
(in millions)			balance					rates				expense					balance				rates				expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	292,635				0.49	%			$	1,076				264,218				0.27	%			$	543
Trading assets				83,580				2.86					1,792				65,954				2.91					1,437
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies				30,588				1.56					358				31,242				1.57					368
Securities of U.S. states and political subdivisions				52,637				4.25					1,678				46,765				4.18					1,468
Mortgage-backed securities:
Federal agencies				98,099				2.57					1,889				99,523				2.71					2,021
Residential and commercial				19,488				5.39					787				22,823				5.80					992
Total mortgage-backed securities				117,587				3.03					2,676				122,346				3.28					3,013
Other debt and equity securities				53,680				3.36					1,349				48,758				3.44					1,257
Total available-for-sale securities				254,492				3.18					6,061				249,111				3.27					6,106
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44,671				2.19					733				44,010				2.19					722
Securities of U.S. states and political subdivisions				2,274				5.34					91				2,064				5.16					80
Federal agency and other mortgage-backed securities				37,087				2.08					577				19,871				2.14					319
Other debt securities				4,193				1.94					61				6,139				1.72					79
Total held-to-maturity securities				88,225				2.21					1,462				72,084				2.22					1,200
Total investment securities				342,717				2.93					7,523				321,195				3.03					7,306
Mortgages held for sale (4)				20,702				3.53					549				22,416				3.62					609
Loans held for sale (4)				240				3.71					7				644				2.93					14
Loans:
Commercial:
Commercial and industrial - U.S.				266,622				3.44					6,874				233,598				3.31					5,788
Commercial and industrial - Non U.S.				50,658				2.29					867				45,373				1.88					638
Real estate mortgage				125,902				3.43					3,236				115,224				3.45					2,972
Real estate construction				22,978				3.53					608				20,637				3.68					567
Lease financing				17,629				4.86					643				12,322				4.77					441
Total commercial				483,789				3.38					12,228				427,154				3.26					10,406
Consumer:
Real estate 1-4 family first mortgage				276,369				4.01					8,311				267,107				4.12					8,243
Real estate 1-4 family junior lien mortgage				50,585				4.38					1,659				57,068				4.24					1,812
Credit card				33,774				11.58					2,927				30,806				11.74					2,704
Automobile				61,246				5.64					2,588				57,180				5.87					2,512
Other revolving credit and installment				39,434				5.94					1,755				37,069				5.91					1,638
Total consumer				461,408				4.99					17,240				449,230				5.03					16,909
Total loans (4)				945,197				4.16					29,468				876,384				4.16					27,315
Other				6,104				2.23					101				4,874				5.21					191
Total earning assets			$	1,691,175				3.20	%			$	40,516				1,555,685				3.21	%			$	37,415
Funding sources
Deposits:
Interest-bearing checking			$	40,858				0.13	%			$	41				38,491				0.05	%			$	15
Market rate and other savings				659,257				0.07					327				620,510				0.06					274
Savings certificates				26,432				0.37					73				32,639				0.66					160
Other time deposits				58,087				0.84					364				52,459				0.43					168
Deposits in foreign offices				100,783				0.25					190				107,153				0.13					105
Total interest-bearing deposits				885,417				0.15					995				851,252				0.11					722
Short-term borrowings				111,993				0.28					231				82,258				0.09					52
Long-term debt				235,209				1.57					2,769				183,130				1.37					1,879
Other liabilities				16,534				2.10					260				16,576				2.16					269
Total interest-bearing liabilities				1,249,153				0.45					4,255				1,133,216				0.34					2,922
Portion of noninterest-bearing funding sources				442,022				—					—				422,469				—					—
Total funding sources			$	1,691,175				0.34					4,255				1,555,685				0.25					2,922
Net interest margin and net interest income on a taxable-equivalent basis (5)								2.86	%			$	36,261								2.96	%			$	34,493
Noninterest-earning assets
Cash and due from banks			$	18,499													17,167
Goodwill				26,696													25,703
Other				129,324													129,412
Total noninterest-earning assets			$	174,519													172,282
Noninterest-bearing funding sources
Deposits			$	353,870													335,160
Other liabilities				62,169													69,167
Total equity				200,502													190,424
Noninterest-bearing funding sources used to fund earning assets				(442,022	)												(422,469	)
Net noninterest-bearing funding sources			$	174,519													172,282
Total assets			$	1,865,694													1,727,967
(1) Our average prime rate was 3.50% and 3.25% for the first nine months of 2016 and 2015, respectively. The average three- month London Interbank Offered Rate (LIBOR) was 0.69% and 0.28% 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, 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 $909 million and $780 million for the first nine months of 2016 and 2015, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
			Quarter ended
			Sep 30, 2016							Jun 30, 2016							Mar 31, 2016							Dec 31, 2015							Sep 30, 2015
			Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/
($ in billions)			balance				rates			balance				rates			balance				rates			balance				rates			balance				rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments			$	299.4			0.50	%		$	293.8			0.49	%		$	284.7			0.49	%		$	274.6			0.28	%		$	250.1			0.26	%
Trading assets				88.8			2.72				81.4			2.86				80.5			3.01				68.8			3.33				67.2			2.93
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies				25.8			1.52				31.5			1.56				34.4			1.59				34.6			1.58				35.7			1.59
Securities of U.S. states and political subdivisions				55.2			4.28				52.2			4.24				50.5			4.24				49.3			4.37				48.2			4.22
Mortgage-backed securities:
Federal agencies				105.8			2.39				92.0			2.53				96.5			2.80				102.3			2.79				98.4			2.70
Residential and commercial				18.1			5.54				19.6			5.44				20.8			5.20				21.5			5.51				21.9			5.84
Total mortgage-backed securities				123.9			2.85				111.6			3.04				117.3			3.23				123.8			3.26				120.3			3.27
Other debt and equity securities				54.2			3.37				53.3			3.48				53.6			3.21				52.7			3.35				50.4			3.40
Total available-for-sale securities				259.1			3.13				248.6			3.20				255.8			3.20				260.4			3.27				254.6			3.24
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44.6			2.19				44.6			2.19				44.7			2.20				44.7			2.18				44.6			2.18
Securities of U.S. states and political subdivisions				2.5			5.24				2.2			5.41				2.1			5.41				2.1			6.07				2.2			5.17
Federal agency and other mortgage-backed securities				48.0			1.97				35.1			1.90				28.1			2.49				28.2			2.42				27.1			2.38
Other debt securities				3.9			1.98				4.1			1.92				4.6			1.92				4.9			1.77				5.4			1.75
Total held-to-maturity securities				99.0			2.15				86.0			2.14				79.5			2.37				79.9			2.35				79.3			2.30
Total investment securities				358.1			2.86				334.6			2.93				335.3			3.01				340.3			3.05				333.9			3.02
Mortgages held for sale				24.1			3.44				20.1			3.60				17.9			3.59				19.2			3.66				24.2			3.69
Loans held for sale				0.2			3.04				0.2			4.83				0.3			3.23				0.4			4.96				0.6			2.57
Loans:
Commercial:
Commercial and industrial - U.S.				271.2			3.48				270.9			3.45				257.7			3.39				250.5			3.25				241.4			3.30
Commercial and industrial - Non U.S.				51.3			2.40				51.2			2.35				49.5			2.10				48.0			1.97				45.9			1.83
Real estate mortgage				128.8			3.48				126.1			3.41				122.7			3.41				121.8			3.30				121.0			3.31
Real estate construction				23.2			3.50				23.1			3.49				22.6			3.61				22.0			3.27				21.6			3.39
Lease financing				18.9			4.70				19.0			5.12				15.1			4.74				12.2			4.48				12.3			4.18
Total commercial				493.4			3.42				490.3			3.39				467.6			3.31				454.5			3.16				442.2			3.18
Consumer:
Real estate 1-4 family first mortgage				278.5			3.97				275.9			4.01				274.7			4.05				272.9			4.04				269.4			4.10
Real estate 1-4 family junior lien mortgage				48.9			4.37				50.6			4.37				52.2			4.39				53.8			4.28				55.3			4.22
Credit card				34.6			11.60				33.4			11.52				33.4			11.61				32.8			11.61				31.7			11.73
Automobile				62.5			5.60				61.1			5.66				60.1			5.67				59.5			5.74				58.5			5.80
Other revolving credit and installment				39.6			5.92				39.5			5.91				39.2			5.99				38.8			5.83				38.0			5.84
Total consumer				464.1			4.97				460.5			4.98				459.6			5.02				457.8			4.99				452.9			5.01
Total loans				957.5			4.17				950.8			4.16				927.2			4.16				912.3			4.08				895.1			4.11
Other				6.4			2.30				6.0			2.30				5.8			2.06				5.1			4.82				5.0			5.11
Total earning assets			$	1,734.5			3.17	%		$	1,686.9			3.20	%		$	1,651.7			3.22	%		$	1,620.7			3.18	%		$	1,576.1			3.21	%
Funding sources
Deposits:
Interest-bearing checking			$	44.0			0.15	%		$	39.8			0.13	%		$	38.7			0.12	%		$	39.1			0.05	%		$	37.8			0.05	%
Market rate and other savings				667.2			0.07				659.0			0.07				651.5			0.07				640.5			0.06				628.1			0.06
Savings certificates				25.2			0.30				26.2			0.35				27.9			0.45				29.6			0.54				30.9			0.58
Other time deposits				54.9			0.93				61.2			0.85				58.2			0.74				49.8			0.52				48.7			0.46
Deposits in foreign offices				107.1			0.30				97.5			0.23				97.7			0.21				107.1			0.14				111.5			0.13
Total interest-bearing deposits				898.4			0.16				883.7			0.15				874.0			0.14				866.1			0.11				857.0			0.11
Short-term borrowings				116.2			0.29				111.8			0.28				107.9			0.25				102.9			0.05				90.4			0.06
Long-term debt				252.4			1.59				236.2			1.56				216.9			1.56				190.9			1.49				180.6			1.45
Other liabilities				16.8			2.11				16.3			2.06				16.5			2.14				16.5			2.14				16.4			2.13
Total interest-bearing liabilities				1,283.8			0.48				1,248.0			0.45				1,215.3			0.43				1,176.4			0.36				1,144.4			0.34
Portion of noninterest-bearing funding sources				450.7			—				438.9			—				436.4			—				444.3			—				431.7			—
Total funding sources			$	1,734.5			0.35			$	1,686.9			0.34			$	1,651.7			0.32			$	1,620.7			0.26			$	1,576.1			0.25
Net interest margin on a taxable-equivalent basis							2.82	%						2.86	%						2.90	%						2.92	%						2.96	%
Noninterest-earning assets
Cash and due from banks			$	18.7							18.8							18.0							17.8							17.0
Goodwill				27.0							27.0							26.1							25.6							25.7
Other				134.4							129.4							124.1							123.2							127.6
Total noninterest-earnings assets			$	180.1							175.2							168.2							166.6							170.3
Noninterest-bearing funding sources
Deposits			$	363.1							353.0							345.4							350.7							341.9
Other liabilities				63.8							60.1							62.6							65.2							67.9
Total equity				203.9							201.0							196.6							195.0							192.2
Noninterest-bearing funding sources used to fund earning assets				(450.7	)						(438.9	)						(436.4	)						(444.3	)						(431.7	)
Net noninterest-bearing funding sources			$	180.1							175.2							168.2							166.6							170.3
Total assets			$	1,914.6							1,862.1							1,819.9							1,787.3							1,746.4
(1) Our average prime rate was 3.50% for the quarters ended September 30, June 30 and March 31, 2016, 3.29% for the quarter ended December 31, 2015 and 3.25% for the quarter ended September 30, 2015. The average three-month London Interbank Offered Rate (LIBOR) was 0.79%, 0.64%, 0.62%, 0.41% and 0.31% for the same quarters, respectively.
(2) Yields/rates include the effects of hedge and risk management activities associated with the respective asset and liability categories.
(3) Yields and rates are based on interest income/expense amounts for the period, annualized based on the accrual basis for the respective accounts. The average balance amounts represent amortized cost for the periods presented.

Wells Fargo & Company and Subsidiaries
NONINTEREST INCOME
			Quarter ended										Nine months ended
			September 30,							%			September 30,							%
(in millions)			2016				2015			Change			2016				2015			Change
Service charges on deposit accounts			$	1,370			1,335			3	%		$	4,015			3,839			5	%
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,344			2,368			(1	)			6,874			7,147			(4	)
Trust and investment management				849			843			1				2,499			2,556			(2	)
Investment banking				420			359			17				1,172			1,254			(7	)
Total trust and investment fees				3,613			3,570			1				10,545			10,957			(4	)
Card fees				997			953			5				2,935			2,754			7
Other fees:
Charges and fees on loans				306			307			—				936			920			2
Cash network fees				138			136			1				407			393			4
Commercial real estate brokerage commissions				119			124			(4	)			322			394			(18	)
Letters of credit fees				81			89			(9	)			242			267			(9	)
Wire transfer and other remittance fees				103			95			8				296			275			8
All other fees (1)(2)(3)				179			348			(49	)			562			1,035			(46	)
Total other fees				926			1,099			(16	)			2,765			3,284			(16	)
Mortgage banking:
Servicing income, net				359			674			(47	)			1,569			1,711			(8	)
Net gains on mortgage loan origination/sales activities				1,308			915			43				3,110			3,130			(1	)
Total mortgage banking				1,667			1,589			5				4,679			4,841			(3	)
Insurance				293			376			(22	)			1,006			1,267			(21	)
Net gains (losses) from trading activities				415			(26	)		NM				943			515			83
Net gains on debt securities				106			147			(28	)			797			606			32
Net gains from equity investments				140			920			(85	)			573			1,807			(68	)
Lease income				534			189			183				1,404			476			195
Life insurance investment income				152			150			1				455			440			3
All other (3)				163			116			41				1,216			(28	)		NM
Total			$	10,376			10,418			—			$	31,333			30,758			2
NM – Not meaningful
(1) Wire transfer and other remittance fees, reflected in all other fees prior to 2016, have been separately disclosed.
(2) All other fees have been revised to include merchant processing fees for all periods presented.
(3) Effective fourth quarter 2015, the Company's proportionate share of its merchant services joint venture earnings is included in All other income.

NONINTEREST EXPENSE
			Quarter ended Sep 30,							%			Nine months ended Sep 30,							%
(in millions)			2016				2015			Change			2016				2015			Change
Salaries			$	4,224			4,035			5	%		$	12,359			11,822			5	%
Commission and incentive compensation				2,520			2,604			(3	)			7,769			7,895			(2	)
Employee benefits				1,223			821			49				3,993			3,404			17
Equipment				491			459			7				1,512			1,423			6
Net occupancy				718			728			(1	)			2,145			2,161			(1	)
Core deposit and other intangibles				299			311			(4	)			891			935			(5	)
FDIC and other deposit assessments				310			245			27				815			715			14
Outside professional services				802			663			21				2,154			1,838			17
Operating losses				577			523			10				1,365			1,339			2
Outside data processing				233			258			(10	)			666			780			(15	)
Contract services				313			249			26				878			712			23
Postage, stationery and supplies				150			174			(14	)			466			525			(11	)
Travel and entertainment				144			166			(13	)			509			496			3
Advertising and promotion				117			135			(13	)			417			422			(1	)
Insurance				23			95			(76	)			156			391			(60	)
Telecommunications				101			109			(7	)			287			333			(14	)
Foreclosed assets				(17	)		109			NM				127			361			(65	)
Operating leases				363			79			359				950			205			363
All other				677			636			6				1,703			1,618			5
Total			$	13,268			12,399			7			$	39,162			37,375			5
NM - Not meaningful

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Service charges on deposit accounts			$	1,370			1,336			1,309			1,329			1,335
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,344			2,291			2,239			2,288			2,368
Trust and investment management				849			835			815			838			843
Investment banking				420			421			331			385			359
Total trust and investment fees				3,613			3,547			3,385			3,511			3,570
Card fees				997			997			941			966			953
Other fees:
Charges and fees on loans				306			317			313			308			307
Cash network fees				138			138			131			129			136
Commercial real estate brokerage commissions				119			86			117			224			124
Letters of credit fees				81			83			78			86			89
Wire transfer and other remittance fees				103			101			92			95			95
All other fees (1)(2)(3)				179			181			202			198			348
Total other fees				926			906			933			1,040			1,099
Mortgage banking:
Servicing income, net				359			360			850			730			674
Net gains on mortgage loan origination/sales activities				1,308			1,054			748			930			915
Total mortgage banking				1,667			1,414			1,598			1,660			1,589
Insurance				293			286			427			427			376
Net gains (losses) from trading activities				415			328			200			99			(26	)
Net gains on debt securities				106			447			244			346			147
Net gains from equity investments				140			189			244			423			920
Lease income				534			497			373			145			189
Life insurance investment income				152			149			154			139			150
All other (3)				163			333			720			(87	)		116
Total			$	10,376			10,429			10,528			9,998			10,418
(1) Wire transfer and other remittance fees, reflected in all other fees prior to 2016, have been separately disclosed.
(2) All other fees have been revised to include merchant processing fees for all periods presented.
(3) Effective fourth quarter 2015, the Company's proportionate share of its merchant services joint venture earnings is included in All other income.

FIVE QUARTER NONINTEREST EXPENSE
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Salaries			$	4,224			4,099			4,036			4,061			4,035
Commission and incentive compensation				2,520			2,604			2,645			2,457			2,604
Employee benefits				1,223			1,244			1,526			1,042			821
Equipment				491			493			528			640			459
Net occupancy				718			716			711			725			728
Core deposit and other intangibles				299			299			293			311			311
FDIC and other deposit assessments				310			255			250			258			245
Outside professional services				802			769			583			827			663
Operating losses				577			334			454			532			523
Outside data processing				233			225			208			205			258
Contract services				313			283			282			266			249
Postage, stationery and supplies				150			153			163			177			174
Travel and entertainment				144			193			172			196			166
Advertising and promotion				117			166			134			184			135
Insurance				23			22			111			57			95
Telecommunications				101			94			92			106			109
Foreclosed assets				(17	)		66			78			20			109
Operating leases				363			352			235			73			79
All other				677			499			527			462			636
Total			$	13,268			12,866			13,028			12,599			12,399

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
			Sep 30,				Dec 31,				%
(in millions, except shares)			2016				2015				Change
Assets
Cash and due from banks			$	19,287			19,111				1	%
Federal funds sold, securities purchased under resale agreements and other short-term investments				298,325			270,130				10
Trading assets				85,946			77,202				11
Investment securities:
Available-for-sale, at fair value				291,591			267,358				9
Held-to-maturity, at cost				99,241			80,197				24
Mortgages held for sale				27,423			19,603				40
Loans held for sale				183			279				(34	)
Loans				961,326			916,559				5
Allowance for loan losses				(11,583	)		(11,545	)			—
Net loans				949,743			905,014				5
Mortgage servicing rights:
Measured at fair value				10,415			12,415				(16	)
Amortized				1,373			1,308				5
Premises and equipment, net				8,322			8,704				(4	)
Goodwill				26,688			25,529				5
Other assets				123,587			100,782				23
Total assets			$	1,942,124			1,787,632				9
Liabilities
Noninterest-bearing deposits			$	376,136			351,579				7
Interest-bearing deposits				899,758			871,733				3
Total deposits				1,275,894			1,223,312				4
Short-term borrowings				124,668			97,528				28
Accrued expenses and other liabilities				82,769			73,365				13
Long-term debt				254,835			199,536				28
Total liabilities				1,738,166			1,593,741				9
Equity
Wells Fargo stockholders’ equity:
Preferred stock				24,594			22,214				11
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares				9,136			9,136				—
Additional paid-in capital				60,685			60,714				—
Retained earnings				130,288			120,866				8
Cumulative other comprehensive income				2,184			297				635
Treasury stock – 457,922,273 shares and 389,682,664 shares				(22,247	)		(18,867	)			18
Unearned ESOP shares				(1,612	)		(1,362	)			18
Total Wells Fargo stockholders’ equity				203,028			192,998				5
Noncontrolling interests				930			893				4
Total equity				203,958			193,891				5
Total liabilities and equity			$	1,942,124			1,787,632				9

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Assets
Cash and due from banks			$	19,287			20,407			19,084			19,111			17,395
Federal funds sold, securities purchased under resale agreements and other short-term investments				298,325			295,521			300,547			270,130			254,811
Trading assets				85,946			80,093			73,158			77,202			73,894
Investment securities:
Available-for-sale, at fair value				291,591			253,006			255,551			267,358			266,406
Held-to-maturity, at cost				99,241			100,420			79,348			80,197			78,668
Mortgages held for sale				27,423			23,930			18,041			19,603			21,840
Loans held for sale				183			220			280			279			430
Loans				961,326			957,157			947,258			916,559			903,233
Allowance for loan losses				(11,583	)		(11,664	)		(11,621	)		(11,545	)		(11,659	)
Net loans				949,743			945,493			935,637			905,014			891,574
Mortgage servicing rights:
Measured at fair value				10,415			10,396			11,333			12,415			11,778
Amortized				1,373			1,353			1,359			1,308			1,277
Premises and equipment, net				8,322			8,289			8,349			8,704			8,800
Goodwill				26,688			26,963			27,003			25,529			25,684
Other assets				123,587			123,144			119,492			100,782			98,708
Total assets			$	1,942,124			1,889,235			1,849,182			1,787,632			1,751,265
Liabilities
Noninterest-bearing deposits			$	376,136			361,934			348,888			351,579			339,761
Interest-bearing deposits				899,758			883,539			892,602			871,733			862,418
Total deposits				1,275,894			1,245,473			1,241,490			1,223,312			1,202,179
Short-term borrowings				124,668			120,258			107,703			97,528			88,069
Accrued expenses and other liabilities				82,769			76,916			73,597			73,365			81,700
Long-term debt				254,835			243,927			227,888			199,536			185,274
Total liabilities				1,738,166			1,686,574			1,650,678			1,593,741			1,557,222
Equity
Wells Fargo stockholders’ equity:
Preferred stock				24,594			24,830			24,051			22,214			22,424
Common stock				9,136			9,136			9,136			9,136			9,136
Additional paid-in capital				60,685			60,691			60,602			60,714			60,998
Retained earnings				130,288			127,076			123,891			120,866			117,593
Cumulative other comprehensive income				2,184			2,948			1,774			297			2,389
Treasury stock				(22,247	)		(21,068	)		(19,687	)		(18,867	)		(17,899	)
Unearned ESOP shares				(1,612	)		(1,868	)		(2,271	)		(1,362	)		(1,590	)
Total Wells Fargo stockholders’ equity				203,028			201,745			197,496			192,998			193,051
Noncontrolling interests				930			916			1,008			893			992
Total equity				203,958			202,661			198,504			193,891			194,043
Total liabilities and equity			$	1,942,124			1,889,235			1,849,182			1,787,632			1,751,265

Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			$	26,376			27,939			33,813			36,250			35,423
Securities of U.S. states and political subdivisions				55,366			54,024			51,574			49,990			49,423
Mortgage-backed securities:
Federal agencies				135,692			95,868			95,463			104,546			105,023
Residential and commercial				18,387			19,938			21,246			22,646			22,836
Total mortgage-backed securities				154,079			115,806			116,709			127,192			127,859
Other debt securities				54,537			53,935			51,956			52,289			51,760
Total available-for-sale debt securities				290,358			251,704			254,052			265,721			264,465
Marketable equity securities				1,233			1,302			1,499			1,637			1,941
Total available-for-sale securities				291,591			253,006			255,551			267,358			266,406
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies				44,682			44,675			44,667			44,660			44,653
Securities of U.S. states and political subdivisions				2,994			2,181			2,183			2,185			2,187
Federal agency and other mortgage-backed securities (1)				47,721			49,594			28,016			28,604			26,828
Other debt securities				3,844			3,970			4,482			4,748			5,000
Total held-to-maturity debt securities				99,241			100,420			79,348			80,197			78,668
Total investment securities			$	390,832			353,426			334,899			347,555			345,074
(1) Predominantly consists of federal agency mortgage-backed securities.
FIVE QUARTER LOANS
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Commercial:
Commercial and industrial			$	324,020			323,858			321,547			299,892			292,234
Real estate mortgage				130,223			128,320			124,711			122,160			121,252
Real estate construction				23,340			23,387			22,944			22,164			21,710
Lease financing				18,871			18,973			19,003			12,367			12,142
Total commercial				496,454			494,538			488,205			456,583			447,338
Consumer:
Real estate 1-4 family first mortgage				278,689			277,162			274,734			273,869			271,311
Real estate 1-4 family junior lien mortgage				48,105			49,772			51,324			53,004			54,592
Credit card				34,992			34,137			33,139			34,039			32,286
Automobile				62,873			61,939			60,658			59,966			59,164
Other revolving credit and installment				40,213			39,609			39,198			39,098			38,542
Total consumer				464,872			462,619			459,053			459,976			455,895
Total loans (1)			$	961,326			957,157			947,258			916,559			903,233
(1) Includes $17.7 billion, $19.3 billion, $20.3 billion, $20.0 billion, and $20.7 billion of purchased credit-impaired (PCI) loans at September 30, June 30, and March 31, 2016, and December 31, and September 30, 2015, respectively.
Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Commercial foreign loans:
Commercial and industrial			$	51,515			50,515			51,884			49,049			46,380
Real estate mortgage				8,466			8,467			8,367			8,350			8,662
Real estate construction				310			246			311			444			396
Lease financing				958			987			983			274			279
Total commercial foreign loans			$	61,249			60,215			61,545			58,117			55,717

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Nonaccrual loans:
Commercial:
Commercial and industrial			$	3,331			3,464			2,911			1,363			1,031
Real estate mortgage				780			872			896			969			1,125
Real estate construction				59			59			63			66			151
Lease financing				92			112			99			26			29
Total commercial				4,262			4,507			3,969			2,424			2,336
Consumer:
Real estate 1-4 family first mortgage				5,310			5,970			6,683			7,293			7,425
Real estate 1-4 family junior lien mortgage				1,259			1,330			1,421			1,495			1,612
Automobile				108			111			114			121			123
Other revolving credit and installment				47			45			47			49			41
Total consumer				6,724			7,456			8,265			8,958			9,201
Total nonaccrual loans (1)(2)(3)			$	10,986			11,963			12,234			11,382			11,537
As a percentage of total loans				1.14	%		1.25			1.29			1.24			1.28
Foreclosed assets:
Government insured/guaranteed			$	282			321			386			446			502
Non-government insured/guaranteed				738			796			893			979			1,265
Total foreclosed assets				1,020			1,117			1,279			1,425			1,767
Total nonperforming assets			$	12,006			13,080			13,513			12,807			13,304
As a percentage of total loans				1.25	%		1.37			1.43			1.40			1.47
(1) Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.

Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Total (excluding PCI)(1):			$	12,068			12,385			13,060			14,380			14,405
Less: FHA insured/guaranteed by the VA (2)(3)				11,198			11,577			12,233			13,373			13,500
Less: Student loans guaranteed under the FFELP (4)				17			20			24			26			33
Total, not government insured/guaranteed			$	853			788			803			981			872
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial			$	47			36			24			97			53
Real estate mortgage				4			22			8			13			24
Real estate construction				—			—			2			4			—
Total commercial				51			58			34			114			77
Consumer:
Real estate 1-4 family first mortgage (3)				171			169			167			224			216
Real estate 1-4 family junior lien mortgage (3)				54			52			55			65			61
Credit card				392			348			389			397			353
Automobile				81			64			55			79			66
Other revolving credit and installment				104			97			103			102			99
Total consumer				802			730			769			867			795
Total, not government insured/guaranteed			$	853			788			803			981			872
(1) PCI loans totaled $2.2 billion, $2.4 billion, $2.7 billion, $2.9 billion and $3.2 billion, at September 30, June 30, and March 31, 2016, and December 31, and September 30, 2015, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and still accruing.
(4) Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

Wells Fargo & Company and Subsidiaries
CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS
Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. PCI loans predominantly represent loans acquired from Wachovia that were deemed to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include statistics such as past due and nonaccrual status, recent borrower credit scores and recent LTV percentages. PCI loans are initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, the associated allowance for credit losses related to these loans is not carried over at the acquisition date.
As a result of PCI loan accounting, certain credit-related ratios cannot be used to compare a portfolio that includes PCI loans against one that does not, or to compare ratios across quarters or years. The ratios particularly affected include the allowance for loan losses and allowance for credit losses as percentages of loans, of nonaccrual loans and of nonperforming assets; nonaccrual loans and nonperforming assets as a percentage of total loans; and net charge-offs as a percentage of loans.
The excess of cash flows expected to be collected over the carrying value of PCI loans is referred to as the accretable yield and is accreted into interest income over the estimated lives of the PCI loans using the effective yield method. The accretable yield is affected by:
	•		Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;
	•		Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and
	•		Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.
The change in the accretable yield related to PCI loans since the merger with Wachovia is presented in the following table.
(in millions)						QuarterendedSep 30, 2016					Nine monthsendedSep 30, 2016				2009-2015
Balance, beginning of period						$	15,727				16,301				10,447
Addition of accretable yield due to acquisitions							(11	)			58				132
Accretion into interest income (1)							(324	)			(992	)			(14,212	)
Accretion into noninterest income due to sales (2)							—				(9	)			(458	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)							1,163				1,221				9,734
Changes in expected cash flows that do not affect nonaccretable difference (4)							(4,936	)			(4,960	)			10,658
Balance, end of period						$	11,619				11,619				16,301
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) At September 30, 2016, our carrying value for PCI loans totaled $17.7 billion and the remainder of nonaccretable difference established in purchase accounting totaled $936 million. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.
(4) Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

Wells Fargo & Company and Subsidiaries
PICK-A-PAY PORTFOLIO (1)
			September 30, 2016
			PCI loans																		All other loans
(in millions)			Adjustedunpaidprincipalbalance (2)					CurrentLTVratio (3)				Carryingvalue (4)					Ratio ofcarryingvalue tocurrentvalue (5)				Carryingvalue (4)					Ratio ofcarryingvalue tocurrentvalue (5)
California			$	14,852				66	%			$	11,643				51	%			$	8,330				48	%
Florida				1,701				76					1,266				55					1,740				61
New Jersey				697				80					509				57					1,142				67
New York				494				75					415				57					561				64
Texas				182				50					161				44					686				40
Other states				3,458				75					2,712				58					4,834				61
Total Pick-a-Pay loans			$	21,384				69				$	16,706				53				$	17,293				54
(1) The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2016.
(2) Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(3) The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.
(4) Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.
(5) The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended September 30,							Nine months ended September 30,
(in millions)			2016				2015			2016			2015
Balance, beginning of period			$	12,749			12,614			12,512			13,169
Provision for credit losses				805			703			2,965			1,611
Interest income on certain impaired loans (1)				(54	)		(48	)		(153	)		(150	)
Loan charge-offs:
Commercial:
Commercial and industrial				(324	)		(172	)		(1,110	)		(459	)
Real estate mortgage				(7	)		(9	)		(13	)		(48	)
Real estate construction				—			—			(1	)		(2	)
Lease financing				(4	)		(5	)		(25	)		(11	)
Total commercial				(335	)		(186	)		(1,149	)		(520	)
Consumer:
Real estate 1-4 family first mortgage				(106	)		(145	)		(366	)		(394	)
Real estate 1-4 family junior lien mortgage				(119	)		(159	)		(385	)		(501	)
Credit card				(296	)		(259	)		(930	)		(821	)
Automobile				(215	)		(186	)		(602	)		(531	)
Other revolving credit and installment				(170	)		(160	)		(508	)		(465	)
Total consumer				(906	)		(909	)		(2,791	)		(2,712	)
Total loan charge-offs				(1,241	)		(1,095	)		(3,940	)		(3,232	)
Loan recoveries:
Commercial:
Commercial and industrial				65			50			210			192
Real estate mortgage				35			32			90			97
Real estate construction				18			8			30			25
Lease financing				2			2			10			6
Total commercial				120			92			340			320
Consumer:
Real estate 1-4 family first mortgage				86			83			284			182
Real estate 1-4 family junior lien mortgage				70			70			200			195
Credit card				51			43			153			123
Automobile				78			73			248			249
Other revolving credit and installment				31			31			100			102
Total consumer				316			300			985			851
Total loan recoveries				436			392			1,325			1,171
Net loan charge-offs				(805	)		(703	)		(2,615	)		(2,061	)
Other				(1	)		(4	)		(15	)		(7	)
Balance, end of period			$	12,694			12,562			12,694			12,562
Components:
Allowance for loan losses			$	11,583			11,659			11,583			11,659
Allowance for unfunded credit commitments				1,111			903			1,111			903
Allowance for credit losses			$	12,694			12,562			12,694			12,562
Net loan charge-offs (annualized) as a percentage of average total loans				0.33	%		0.31			0.37			0.31
Allowance for loan losses as a percentage of total loans				1.20			1.29			1.20			1.29
Allowance for credit losses as a percentage of total loans				1.32			1.39			1.32			1.39
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Balance, beginning of quarter			$	12,749			12,668			12,512			12,562			12,614
Provision for credit losses				805			1,074			1,086			831			703
Interest income on certain impaired loans (1)				(54	)		(51	)		(48	)		(48	)		(48	)
Loan charge-offs:
Commercial:
Commercial and industrial				(324	)		(437	)		(349	)		(275	)		(172	)
Real estate mortgage				(7	)		(3	)		(3	)		(11	)		(9	)
Real estate construction				—			(1	)		—			(2	)		—
Lease financing				(4	)		(17	)		(4	)		(3	)		(5	)
Total commercial				(335	)		(458	)		(356	)		(291	)		(186	)
Consumer:
Real estate 1-4 family first mortgage				(106	)		(123	)		(137	)		(113	)		(145	)
Real estate 1-4 family junior lien mortgage				(119	)		(133	)		(133	)		(134	)		(159	)
Credit card				(296	)		(320	)		(314	)		(295	)		(259	)
Automobile				(215	)		(176	)		(211	)		(211	)		(186	)
Other revolving credit and installment				(170	)		(163	)		(175	)		(178	)		(160	)
Total consumer				(906	)		(915	)		(970	)		(931	)		(909	)
Total loan charge-offs				(1,241	)		(1,373	)		(1,326	)		(1,222	)		(1,095	)
Loan recoveries:
Commercial:
Commercial and industrial				65			69			76			60			50
Real estate mortgage				35			23			32			30			32
Real estate construction				18			4			8			12			8
Lease financing				2			5			3			2			2
Total commercial				120			101			119			104			92
Consumer:
Real estate 1-4 family first mortgage				86			109			89			63			83
Real estate 1-4 family junior lien mortgage				70			71			59			64			70
Credit card				51			50			52			52			43
Automobile				78			86			84			76			73
Other revolving credit and installment				31			32			37			32			31
Total consumer				316			348			321			287			300
Total loan recoveries				436			449			440			391			392
Net loan charge-offs				(805	)		(924	)		(886	)		(831	)		(703	)
Other				(1	)		(18	)		4			(2	)		(4	)
Balance, end of quarter			$	12,694			12,749			12,668			12,512			12,562
Components:
Allowance for loan losses			$	11,583			11,664			11,621			11,545			11,659
Allowance for unfunded credit commitments				1,111			1,085			1,047			967			903
Allowance for credit losses			$	12,694			12,749			12,668			12,512			12,562
Net loan charge-offs (annualized) as a percentage of average total loans				0.33	%		0.39			0.38			0.36			0.31
Allowance for loan losses as a percentage of:
Total loans				1.20			1.22			1.23			1.26			1.29
Nonaccrual loans				105			98			95			101			101
Nonaccrual loans and other nonperforming assets				96			89			86			90			88
Allowance for credit losses as a percentage of:
Total loans				1.32			1.33			1.34			1.37			1.39
Nonaccrual loans				116			107			104			110			109
Nonaccrual loans and other nonperforming assets				106			97			94			98			94
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
					Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions, except ratios)					2016				2016			2016			2015			2015
Tangible book value per common share (1):
Total equity					$	203,958			202,661			198,504			193,891			194,043
Adjustments:
Preferred stock						(24,594	)		(24,830	)		(24,051	)		(22,214	)		(22,424	)
Additional paid-in capital on ESOP preferred stock						(130	)		(150	)		(182	)		(110	)		(128	)
Unearned ESOP shares						1,612			1,868			2,271			1,362			1,590
Noncontrolling interests						(930	)		(916	)		(1,008	)		(893	)		(992	)
Total common stockholders' equity		(A)				179,916			178,633			175,534			172,036			172,089
Adjustments:
Goodwill						(26,688	)		(26,963	)		(27,003	)		(25,529	)		(25,684	)
Certain identifiable intangible assets (other than MSRs)						(3,001	)		(3,356	)		(3,814	)		(3,167	)		(3,479	)
Other assets (2)						(2,230	)		(2,110	)		(2,023	)		(2,074	)		(1,742	)
Applicable deferred taxes (3)						1,832			1,906			1,985			2,071			2,168
Tangible common equity		(B)			$	149,829			148,110			144,679			143,337			143,352
Common shares outstanding		(C)				5,023.9			5,048.5			5,075.9			5,092.1			5,108.5
Book value per common share		(A)/(C)			$	35.81			35.38			34.58			33.78			33.69
Tangible book value per common share		(B)/(C)				29.82			29.34			28.50			28.15			28.06

					Quarter ended																Nine months ended
					Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,			Sep 30,			Sep 30,
(in millions, except ratios)					2016				2016			2016			2015			2015			2016			2015
Return on average tangible common equity (1):
Net income applicable to common stock		(A)			$	5,243			5,173			5,085			5,203			5,443			15,501			16,267
Average total equity						203,883			201,003			196,586			195,025			192,203			200,502			190,424
Adjustments:
Preferred stock						(24,813	)		(24,091	)		(23,963	)		(22,407	)		(21,807	)		(24,291	)		(21,481	)
Additional paid-in capital on ESOP preferred stock						(148	)		(168	)		(201	)		(127	)		(147	)		(172	)		(142	)
Unearned ESOP shares						1,850			2,094			2,509			1,572			1,818			2,150			1,764
Noncontrolling interests						(927	)		(984	)		(904	)		(979	)		(1,012	)		(938	)		(1,071	)
Average common stockholders’ equity		(B)				179,845			177,854			174,027			173,084			171,055			177,251			169,494
Adjustments:
Goodwill						(26,979	)		(27,037	)		(26,069	)		(25,580	)		(25,703	)		(26,696	)		(25,703	)
Certain identifiable intangible assets (other than MSRs)						(3,145	)		(3,600	)		(3,407	)		(3,317	)		(3,636	)		(3,383	)		(3,953	)
Other assets (2)						(2,131	)		(2,096	)		(2,065	)		(1,987	)		(1,757	)		(2,097	)		(1,542	)
Applicable deferred taxes (3)						1,855			1,934			2,014			2,103			2,200			1,973			2,344
Average tangible common equity		(C)			$	149,445			147,055			144,500			144,303			142,159			147,048			140,640
Return on average common stockholders' equity (ROE)		(A)/(B)				11.60	%		11.70			11.75			11.93			12.62			11.68			12.83
Return on average tangible common equity (ROTCE)		(A)/(C)				13.96			14.15			14.15			14.30			15.19			14.08			15.46
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
				Estimated
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in billions, except ratio)				2016				2016			2016			2015			2015
Total equity				$	204.0			202.7			198.5			193.9			194.0
Adjustments:
Preferred stock					(24.6	)		(24.8	)		(24.1	)		(22.2	)		(22.4	)
Additional paid-in capital on ESOP preferred stock					(0.1	)		(0.2	)		(0.2	)		(0.1	)		(0.1	)
Unearned ESOP shares					1.6			1.9			2.3			1.3			1.5
Noncontrolling interests					(1.0	)		(1.0	)		(1.0	)		(0.9	)		(0.9	)
Total common stockholders' equity					179.9			178.6			175.5			172.0			172.1
Adjustments:
Goodwill					(26.7	)		(27.0	)		(27.0	)		(25.5	)		(25.7	)
Certain identifiable intangible assets (other than MSRs)					(3.0	)		(3.4	)		(3.8	)		(3.2	)		(3.5	)
Other assets (2)					(2.2	)		(2.0	)		(2.1	)		(2.1	)		(1.7	)
Applicable deferred taxes (3)					1.8			1.9			2.0			2.1			2.2
Investment in certain subsidiaries and other					(2.0	)		(2.5	)		(1.9	)		(0.9	)		(1.6	)
Common Equity Tier 1 (Fully Phased-In) under Basel III		(A)			147.8			145.6			142.7			142.4			141.8
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)		(B)		$	1,386.7			1,372.9			1,345.1			1,321.7			1,331.8
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)		(A)/(B)			10.7	%		10.6			10.6			10.8			10.6
(1) Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. These rules established a new comprehensive capital framework for U.S. banking organizations that implements the Basel III capital framework and certain provisions of the Dodd-Frank Act. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Fully phased-in regulatory capital amounts, ratios and RWAs are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position.
(2) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.
(4) The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of September 30, 2016, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for June 30 and March 31, 2016, and December 31 and September 30, 2015, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s September 30, 2016, RWAs and capital ratio are preliminary estimates.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
(income/expense in millions,average balances in billions)			CommunityBanking							WholesaleBanking						Wealth andInvestmentManagement						Other (2)						ConsolidatedCompany
			2016				2015			2016			2015			2016			2015			2016			2015			2016			2015
Quarter ended Sep 30,
Net interest income (3)			$	7,430			7,409			4,062			3,611			977			887			(517	)		(450	)		11,952			11,457
Provision (reversal of provision) for credit losses				651			668			157			36			4			(6	)		(7	)		5			805			703
Noninterest income				4,957			5,524			3,085			2,715			3,122			2,991			(788	)		(812	)		10,376			10,418
Noninterest expense				6,953			6,778			4,120			3,503			2,999			2,909			(804	)		(791	)		13,268			12,399
Income (loss) before income tax expense (benefit)				4,783			5,487			2,870			2,787			1,096			975			(494	)		(476	)		8,255			8,773
Income tax expense (benefit)				1,546			1,785			827			815			415			371			(187	)		(181	)		2,601			2,790
Net income (loss) before noncontrolling interests				3,237			3,702			2,043			1,972			681			604			(307	)		(295	)		5,654			5,983
Less: Net income (loss) from noncontrolling interests				10			142			(4	)		47			4			(2	)		—			—			10			187
Net income (loss)			$	3,227			3,560			2,047			1,925			677			606			(307	)		(295	)		5,644			5,796
Average loans			$	489.2			477.0			454.3			405.6			68.4			61.1			(54.4	)		(48.6	)		957.5			895.1
Average assets				993.6			898.9			794.2			739.1			212.1			192.6			(85.3	)		(84.2	)		1,914.6			1,746.4
Average deposits				708.0			655.6			441.2			442.0			189.2			172.6			(76.9	)		(71.3	)		1,261.5			1,198.9
Nine months ended Sep 30,
Net interest income (3)			$	22,277			21,833			11,729			10,639			2,852			2,545			(1,506	)		(1,304	)		35,352			33,713
Provision (reversal of provision) for credit losses				2,060			1,723			905			(99	)		(8	)		(19	)		8			6			2,965			1,611
Noninterest income				14,928			15,178			9,660			8,706			9,020			9,285			(2,275	)		(2,411	)		31,333			30,758
Noninterest expense				20,437			20,088			12,124			10,625			9,017			9,069			(2,416	)		(2,407	)		39,162			37,375
Income (loss) before income tax expense (benefit)				14,708			15,200			8,360			8,819			2,863			2,780			(1,373	)		(1,314	)		24,558			25,485
Income tax expense (benefit)				4,910			4,695			2,341			2,583			1,087			1,054			(521	)		(500	)		7,817			7,832
Net income (loss) before noncontrolling interests				9,798			10,505			6,019			6,236			1,776			1,726			(852	)		(814	)		16,741			17,653
Less: Net income (loss) from noncontrolling interests				96			183			(22	)		146			3			5			—			—			77			334
Net income (loss)			$	9,702			10,322			6,041			6,090			1,773			1,721			(852	)		(814	)		16,664			17,319
Average loans			$	486.4			473.9			445.2			390.7			66.4			59.1			(52.8	)		(47.3	)		945.2			876.4
Average assets				969.6			906.2			771.9			714.6			208.5			191.1			(84.3	)		(83.9	)		1,865.7			1,728.0
Average deposits				698.3			651.3			431.7			435.4			185.4			170.4			(76.1	)		(70.7	)		1,239.3			1,186.4
(1) The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment.
(2) Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.
(3) Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER OPERATING SEGMENT RESULTS (1)
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(income/expense in millions, average balances in billions)			2016				2016			2016			2015			2015
COMMUNITY BANKING
Net interest income (2)			$	7,430			7,379			7,468			7,409			7,409
Provision for credit losses				651			689			720			704			668
Noninterest income				4,957			4,825			5,146			4,921			5,524
Noninterest expense				6,953			6,648			6,836			6,893			6,778
Income before income tax expense				4,783			4,867			5,058			4,733			5,487
Income tax expense				1,546			1,667			1,697			1,507			1,785
Net income before noncontrolling interests				3,237			3,200			3,361			3,226			3,702
Less: Net income from noncontrolling interests				10			21			65			57			142
Segment net income			$	3,227			3,179			3,296			3,169			3,560
Average loans			$	489.2			485.7			484.3			482.2			477.0
Average assets				993.6			967.6			947.4			921.4			898.9
Average deposits				708.0			703.7			683.0			663.7			655.6
WHOLESALE BANKING
Net interest income (2)			$	4,062			3,919			3,748			3,711			3,611
Provision for credit losses				157			385			363			126			36
Noninterest income				3,085			3,365			3,210			2,848			2,715
Noninterest expense				4,120			4,036			3,968			3,491			3,503
Income before income tax expense				2,870			2,863			2,627			2,942			2,787
Income tax expense				827			795			719			841			815
Net income before noncontrolling interests				2,043			2,068			1,908			2,101			1,972
Less: Net income (loss) from noncontrolling interests				(4	)		(5	)		(13	)		(3	)		47
Segment net income			$	2,047			2,073			1,921			2,104			1,925
Average loans			$	454.3			451.4			429.8			417.0			405.6
Average assets				794.2			772.6			748.6			755.4			739.1
Average deposits				441.2			425.8			428.0			449.3			442.0
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)			$	977			932			943			933			887
Provision (reversal of provision) for credit losses				4			2			(14	)		(6	)		(6	)
Noninterest income				3,122			2,987			2,911			3,014			2,991
Noninterest expense				2,999			2,976			3,042			2,998			2,909
Income before income tax expense				1,096			941			826			955			975
Income tax expense				415			358			314			366			371
Net income before noncontrolling interests				681			583			512			589			604
Less: Net income (loss) from noncontrolling interests				4			(1	)		—			(6	)		(2	)
Segment net income			$	677			584			512			595			606
Average loans			$	68.4			66.7			64.1			63.0			61.1
Average assets				212.1			205.3			208.1			197.9			192.6
Average deposits				189.2			182.5			184.5			177.9			172.6
OTHER (3)
Net interest income (2)			$	(517	)		(497	)		(492	)		(465	)		(450	)
Provision (reversal of provision) for credit losses				(7	)		(2	)		17			7			5
Noninterest income				(788	)		(748	)		(739	)		(785	)		(812	)
Noninterest expense				(804	)		(794	)		(818	)		(783	)		(791	)
Loss before income tax benefit				(494	)		(449	)		(430	)		(474	)		(476	)
Income tax benefit				(187	)		(171	)		(163	)		(181	)		(181	)
Net loss before noncontrolling interests				(307	)		(278	)		(267	)		(293	)		(295	)
Less: Net income from noncontrolling interests				—			—			—			—			—
Other net loss			$	(307	)		(278	)		(267	)		(293	)		(295	)
Average loans			$	(54.4	)		(53.0	)		(51.0	)		(49.9	)		(48.6	)
Average assets				(85.3	)		(83.4	)		(84.2	)		(87.4	)		(84.2	)
Average deposits				(76.9	)		(75.3	)		(76.1	)		(74.1	)		(71.3	)
CONSOLIDATED COMPANY
Net interest income (2)			$	11,952			11,733			11,667			11,588			11,457
Provision for credit losses				805			1,074			1,086			831			703
Noninterest income				10,376			10,429			10,528			9,998			10,418
Noninterest expense				13,268			12,866			13,028			12,599			12,399
Income before income tax expense				8,255			8,222			8,081			8,156			8,773
Income tax expense				2,601			2,649			2,567			2,533			2,790
Net income before noncontrolling interests				5,654			5,573			5,514			5,623			5,983
Less: Net income from noncontrolling interests				10			15			52			48			187
Wells Fargo net income			$	5,644			5,558			5,462			5,575			5,796
Average loans			$	957.5			950.8			927.2			912.3			895.1
Average assets				1,914.6			1,862.1			1,819.9			1,787.3			1,746.4
Average deposits				1,261.5			1,236.7			1,219.4			1,216.8			1,198.9
(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 and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.
(3) Includes the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for Wealth and Investment Management customers served through Community Banking distribution channels.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
MSRs measured using the fair value method:
Fair value, beginning of quarter			$	10,396			11,333			12,415			11,778			12,661
Servicing from securitizations or asset transfers (1)				609			477			366			372			448
Sales and other (2)				4			(22	)		—			(9	)		6
Net additions				613			455			366			363			454
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)				39			(779	)		(1,084	)		560			(858	)
Servicing and foreclosure costs (4)				(10	)		(4	)		27			(37	)		(18	)
Prepayment estimates and other (5)				(37	)		(41	)		100			244			43
Net changes in valuation model inputs or assumptions				(8	)		(824	)		(957	)		767			(833	)
Other changes in fair value (6)				(586	)		(568	)		(491	)		(493	)		(504	)
Total changes in fair value				(594	)		(1,392	)		(1,448	)		274			(1,337	)
Fair value, end of quarter			$	10,415			10,396			11,333			12,415			11,778
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios.
(3) Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances)
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.
(6) Represents changes due to collection/realization of expected cash flows over time.
			Quarter ended
			Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)			2016				2016			2016			2015			2015
Amortized MSRs:
Balance, beginning of quarter			$	1,353			1,359			1,308			1,277			1,262
Purchases				18			24			21			48			45
Servicing from securitizations or asset transfers				69			38			97			49			35
Amortization				(67	)		(68	)		(67	)		(66	)		(65	)
Balance, end of quarter			$	1,373			1,353			1,359			1,308			1,277
Fair value of amortized MSRs:
Beginning of quarter			$	1,620			1,725			1,680			1,643			1,692
End of quarter				1,627			1,620			1,725			1,680			1,643

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
				Quarter ended
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)				2016				2016			2016			2015			2015
Servicing income, net:
Servicing fees (1)				$	878			842			910			872			990
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(A)			(8	)		(824	)		(957	)		767			(833	)
Other changes in fair value (3)					(586	)		(568	)		(491	)		(493	)		(504	)
Total changes in fair value of MSRs carried at fair value					(594	)		(1,392	)		(1,448	)		274			(1,337	)
Amortization					(67	)		(68	)		(67	)		(66	)		(65	)
Net derivative gains (losses) from economic hedges (4)		(B)			142			978			1,455			(350	)		1,086
Total servicing income, net				$	359			360			850			730			674
Market-related valuation changes to MSRs, net of hedge results (2)(4)		(A)+(B)		$	134			154			498			417			253
(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 changes due to collection/realization of expected cash flows over time.
(4) Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs.
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in billions)				2016				2016			2016			2015			2015
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others				$	1,226			1,250			1,280			1,300			1,323
Owned loans serviced					352			349			342			345			346
Subserviced for others					4			4			4			4			4
Total residential servicing					1,582			1,603			1,626			1,649			1,673
Commercial mortgage servicing:
Serviced for others					477			478			485			478			470
Owned loans serviced					130			128			125			122			121
Subserviced for others					8			8			8			7			7
Total commercial servicing					615			614			618			607			598
Total managed servicing portfolio				$	2,197			2,217			2,244			2,256			2,271
Total serviced for others				$	1,703			1,728			1,765			1,778			1,793
Ratio of MSRs to related loans serviced for others					0.69	%		0.68			0.72			0.77			0.73
Weighted-average note rate (mortgage loans serviced for others)					4.28			4.32			4.34			4.37			4.39
(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
				Quarter ended
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
				2016				2016			2016			2015			2015
Net gains on mortgage loan origination/sales activities (in millions):
Residential		(A)		$	953			744			532			600			736
Commercial					167			72			71			108			55
Residential pipeline and unsold/repurchased loan management (1)					188			238			145			222			124
Total				$	1,308			1,054			748			930			915
Application data (in billions):
Wells Fargo first mortgage quarterly applications				$	100			95			77			64			73
Refinances as a percentage of applications					55	%		46			52			48			44
Wells Fargo first mortgage unclosed pipeline, at quarter end				$	50			47			39			29			34
Residential real estate originations:
Purchases as a percentage of originations					58	%		60			55			59			66
Refinances as a percentage of originations					42			40			45			41			34
Total					100	%		100			100			100			100
Wells Fargo first mortgage loans (in billions):
Retail				$	37			34			24			27			32
Correspondent					32			28			19			19			22
Other (2)					1			1			1			1			1
Total quarter-to-date				$	70			63			44			47			55
Held-for-sale		(B)		$	53			46			31			33			39
Held-for-investment					17			17			13			14			16
Total quarter-to-date				$	70			63			44			47			55
Total year-to-date				$	177			107			44			213			166
Production margin on residential held-for-sale mortgage originations		(A)/(B)			1.81	%		1.66			1.68			1.83			1.88
(1) Primarily includes the results of GNMA loss mitigation activities, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.
(2) Consists of home equity loans and lines.
CHANGES IN MORTGAGE REPURCHASE LIABILITY
				Quarter ended
				Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,
(in millions)				2016				2016			2016			2015			2015
Balance, beginning of period				$	255			355			378			538				557
Provision for repurchase losses:
Loan sales					11			8			7			9				11
Change in estimate (1)					(24	)		(89	)		(19	)		(128	)			(17	)
Net reductions					(13	)		(81	)		(12	)		(119	)			(6	)
Losses					(3	)		(19	)		(11	)		(41	)			(13	)
Balance, end of period				$	239			255			355			378				538
(1) Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.

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Wells Fargo & Company

Media

Ancel Martinez, 415-222-3858

or

Investors

Jim Rowe, 415-396-8216

Source: Wells Fargo & Company