Diluted EPS of $1.07; Revenue of $22.2 billion

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

• Strong financial results:
  • Net income of $5.8 billion, up 5 percent from second quarter 2016
  • Diluted earnings per share (EPS) of $1.07, up 6 percent
  • Revenue of $22.2 billion
    • Net interest income of $12.5 billion, up $750 million, or 6 percent
  • Total average deposits of $1.3 trillion, up $64.5 billion, or 5 percent
  • Total average loans of $956.9 billion, up $6.1 billion, or 1 percent
  • Return on assets (ROA) of 1.21 percent and return on equity (ROE) of 11.95 percent
• Continued improvement in credit quality:
  • Provision expense of $555 million, down $519 million, or 48 percent, from second quarter 2016
    • Net charge-offs of $655 million, down $269 million
      • Net charge-offs were 0.27 percent of average loans (annualized), down from 0.39 percent
    • Reserve release1 of $100 million
  • Nonaccrual loans of $9.1 billion, down $2.9 billion, or 24 percent
• Strong capital position while returning more capital to shareholders:
  • Common Equity Tier 1 ratio (fully phased-in) of 11.6 percent2
  • Period-end common shares outstanding down 81.7 million from second quarter 2016
  • Returned $3.4 billion to shareholders in the second quarter through common stock dividends and net share repurchases
• Received a non-objection to the Company's 2017 Capital Plan submission from the Federal Reserve
  • As part of this plan, the Company expects to increase its third quarter 2017 common stock dividend to $0.39 per share from $0.38 per share, subject to approval by the Company's Board of Directors. The plan also includes up to $11.5 billion of gross common stock repurchases, subject to management discretion, for the four-quarter period from third quarter 2017 through second quarter 2018.

Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information.

Selected Financial Information
		Quarter ended
		Jun 30,				Mar 31,			Jun 30,
		2017				2017			2016
Earnings
Diluted earnings per common share		$	1.07			1.00			1.01
Wells Fargo net income (in billions)			5.81			5.46			5.56
Return on assets (ROA)			1.21	%		1.15			1.20
Return on equity (ROE)			11.95			11.54			11.70
Return on average tangible common equity (ROTCE)(a)			14.26			13.85			14.15
Asset Quality
Net charge-offs (annualized) as a % of average total loans			0.27	%		0.34			0.39
Allowance for credit losses as a % of total loans			1.27			1.28			1.33
Allowance for credit losses as a % of annualized net charge-offs			462			376			343
Other
Revenue (in billions)		$	22.2			22.0			22.2
Efficiency ratio (b)			61.1	%		62.7			58.1
Average loans (in billions)		$	956.9			963.6			950.8
Average deposits (in billions)			1,301.2			1,299.2			1,236.7
Net interest margin			2.90	%		2.87			2.86
(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.
(b) The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

Wells Fargo & Company (NYSE: WFC) reported net income of $5.8 billion, or $1.07 per diluted common share, for second quarter 2017, compared with $5.6 billion, or $1.01 per share, for second quarter 2016, and $5.5 billion, or $1.00 per share, for first quarter 2017.

Chief Executive Officer Tim Sloan said, "Second quarter 2017 results demonstrated the benefit of our diversified business model as we continued to generate strong financial results, invest for the future, and adhere to our prudent risk discipline. We remain committed to reducing expenses and improving the efficiency of our company, and we are very focused on our recently announced goals. As we work to improve our efficiency, we will also continue to innovate for the future. We recently advanced a number of important customer-focused initiatives, such as the launch of the ZelleSM person-to-person payment platform to our 28 million digital customers. As always, our success starts with our customers, and I appreciate the effort of our 271,000 team members in helping our customers succeed financially. We continued to make progress this quarter in our efforts to rebuild trust and build a better Wells Fargo and, while there is still more work ahead of us, we are on the right track and I am confident about our future."

Chief Financial Officer John Shrewsberry said, “Wells Fargo reported $5.8 billion of net income in the second quarter, up on a linked-quarter and year-over-year basis. Overall results were solid in a period with continued modest economic growth and included growth in net interest income and continued improvement in credit results. Second quarter 2017 also included discrete tax benefits totaling $186 million, or approximately $0.04 per share, primarily as a result of our agreement to sell Wells Fargo Insurance Services.

Our liquidity and capital positions remained strong, and we returned $3.4 billion to shareholders through common stock dividends and net share repurchases for a net payout ratio3 of 63 percent in the quarter. In addition, during the quarter we received a non-objection from the Federal Reserve to our 2017 Capital Plan, which included an increase, subject to board approval, in our quarterly common stock dividend rate in third quarter 2017, to $0.39 per share from $0.38 per share, as well as increased share repurchases."

Net Interest Income

Net interest income in second quarter 2017 increased $183 million from first quarter 2017 to $12.5 billion, as the benefit of repricing earning assets in response to higher short-term interest rates exceeded the cost of repricing liabilities, due in part to continued deposit pricing discipline. Second quarter results also benefited from one additional business day. These benefits more than offset the impact of lower average loan and investment securities balances.

Net interest margin was 2.90 percent, up 3 basis points from first quarter 2017. The benefit of higher short-term interest rates, disciplined deposit pricing, and a reduction in long-term debt was partially offset by the impacts from lower loan and investment securities balances.

Noninterest Income

Noninterest income in the second quarter was $9.7 billion, in line with first quarter 2017. Second quarter noninterest income included higher other income on a $309 million gain on the sale of a Pick-a-Pay purchased credit-impaired (PCI) loan portfolio, higher card fees on stronger credit card and debit card purchase volumes, and higher trust and investment fees reflecting stronger investment banking fees from both higher equity and debt originations. These increases were offset by lower market sensitive revenue4 and lower mortgage banking income.

• Mortgage banking noninterest income was $1.1 billion, compared with $1.2 billion in first quarter 2017. As expected, residential mortgage loan originations increased in the second quarter, up to $56 billion, from $44 billion in the first quarter. The production margin on residential held-for-sale mortgage loan originations5 was 1.24 percent, down from 1.68 percent in the first quarter due to increased price competition and a higher percentage of correspondent volume, which has lower production margins than retail originations. Mortgage servicing income was $400 million in the second quarter, down from $456 million in the first quarter, primarily due to lower net hedge results and higher prepayments.
• Market sensitive revenue was $545 million, compared with $878 million in first quarter 2017, as lower net gains from equity investments and trading activities were partially offset by higher gains on debt securities. Net gains from equity investments were down $215 million from the first quarter on lower venture capital gains. Net gains from trading activities were down $202 million linked quarter and included lower deferred compensation plan investment results (largely offset in employee benefits expense), as well as lower secondary trading results on reduced client activity and lower valuation adjustments.

Noninterest Expense

Noninterest expense in the second quarter declined $251 million from the prior quarter to $13.5 billion, primarily due to lower employee benefits and commission and incentive compensation, which were seasonally elevated in the first quarter. These declines were partially offset by increases in outside professional services and salaries, as well as higher operating losses, reflecting higher litigation accruals. In addition, the second quarter included a $94 million donation to the Wells Fargo Foundation. The efficiency ratio improved to 61.1 percent in second quarter 2017, compared with 62.7 percent in the prior quarter.

Income Taxes

The Company’s effective income tax rate was 27.7 percent for second quarter 2017, and included discrete tax benefits totaling $186 million, primarily related to the deferred income tax effect of investment basis differences recognized as a result of our agreement to sell Wells Fargo Insurance Services USA and related businesses. This compares with an effective income tax rate of 27.4 percent in first quarter 2017, which included discrete tax benefits totaling $197 million, of which $183 million reflected tax benefits associated with stock compensation activity during the quarter which was subject to ASU 2016-09 accounting guidance adopted in the first quarter. The Company currently expects the full-year 2017 tax rate to be approximately 29 percent.

Loans

Total average loans were $956.9 billion in the second quarter, down $6.8 billion from the first quarter. Period-end loan balances were $957.4 billion at June 30, 2017, down $982 million from March 31, 2017, reflecting an expected decline in auto loans as our tighter underwriting standards resulted in lower origination volume. Additionally, legacy junior lien mortgage loans continued to decline as expected. These declines were partially offset by growth in commercial and industrial loans, real estate first mortgage loans, and credit card loans.

Period-End Loan Balances
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2017				2017			2016			2016			2016
Commercial			$	505,901			505,004			506,536			496,454			494,538
Consumer				451,522			453,401			461,068			464,872			462,619
Total loans			$	957,423			958,405			967,604			961,326			957,157
Change from prior quarter			$	(982	)		(9,199	)		6,278			4,169			9,899

Investment Securities

Investment securities were $409.6 billion at June 30, 2017, up $2.0 billion from the first quarter, as approximately $37.1 billion of purchases, primarily federal agency mortgage-backed securities in the available-for-sale portfolio, were partially offset by sales and run-off.

Net unrealized gains on available-for-sale securities were $1.1 billion at June 30, 2017, compared with net unrealized losses on available-for-sale securities of $1.2 billion at March 31, 2017, primarily due to tighter credit spreads during the quarter and a modest benefit from lower long-term interest rates.

Deposits

Total average deposits for second quarter 2017 were $1.3 trillion, stable from the prior quarter, as growth in consumer and small business deposits was offset by lower commercial deposits. The average deposit cost for second quarter 2017 was 21 basis points, up 4 basis points from the prior quarter and 10 basis points from a year ago, primarily driven by an increase in commercial deposit rates.

Capital

Capital levels remained strong in the second quarter, with a Common Equity Tier 1 ratio (fully phased-in) of 11.6 percent2, compared with 11.2 percent in the prior quarter. In second quarter 2017, the Company repurchased 43.0 million shares of its common stock, which reduced period-end common shares outstanding by 30.0 million. The Company paid a quarterly common stock dividend of $0.38 per share. In addition, the Company received a non-objection to its 2017 Capital Plan from the Federal Reserve. As part of this plan, the Company expects to increase its third quarter 2017 common stock dividend to $0.39 per share, subject to approval by the Company's Board of Directors. The plan also includes up to $11.5 billion of gross common stock repurchases, subject to management discretion, for the four-quarter period from third quarter 2017 through second quarter 2018.

Credit Quality

Net Loan Charge-offs

The quarterly loss rate improved to 0.27 percent (annualized) from 0.34 percent in the prior quarter. Commercial and consumer losses improved to 0.06 percent and 0.51 percent, respectively. Credit losses were $655 million in second quarter 2017, down $150 million from first quarter 2017. Consumer losses decreased $82 million, driven by lower losses across all asset classes with the exception of credit card. Commercial losses were down $68 million, predominantly driven by lower losses in our oil and gas portfolio.

Net Loan Charge-Offs
		Quarter ended
		June 30, 2017							March 31, 2017							December 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		$	78			0.10	%		$	171			0.21	%		$	256			0.31	%
Real estate mortgage			(6	)		(0.02	)			(25	)		(0.08	)			(12	)		(0.04	)
Real estate construction			(4	)		(0.05	)			(8	)		(0.15	)			(8	)		(0.13	)
Lease financing			7			0.15				5			0.11				15			0.32
Total commercial			75			0.06				143			0.11				251			0.20
Consumer:
Real estate 1-4 family first mortgage			(16	)		(0.02	)			7			0.01				(3	)		—
Real estate 1-4 family junior lien mortgage			(4	)		(0.03	)			23			0.21				44			0.38
Credit card			320			3.67				309			3.54				275			3.09
Automobile			126			0.86				167			1.10				166			1.05
Other revolving credit and installment			154			1.58				156			1.60				172			1.70
Total consumer			580			0.51				662			0.59				654			0.56
Total		$	655			0.27	%		$	805			0.34	%		$	905			0.37	%
(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 $827 million from first quarter 2017 to $9.8 billion. Nonaccrual loans decreased $703 million from first quarter 2017 to $9.1 billion reflecting declines across all commercial asset classes, as well as continued lower consumer real estate nonaccruals.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)
			June 30, 2017							March 31, 2017							December 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			$	2,632			0.79	%		$	2,898			0.88	%		$	3,216			0.97	%
Real estate mortgage				630			0.48				672			0.51				685			0.52
Real estate construction				34			0.13				40			0.16				43			0.18
Lease financing				89			0.46				96			0.50				115			0.60
Total commercial				3,385			0.67				3,706			0.73				4,059			0.80
Consumer:
Real estate 1-4 family first mortgage				4,413			1.60				4,743			1.73				4,962			1.80
Real estate 1-4 family junior lien mortgage				1,095			2.56				1,153			2.60				1,206			2.61
Automobile				104			0.18				101			0.17				106			0.17
Other revolving credit and installment				59			0.15				56			0.14				51			0.13
Total consumer				5,671			1.26				6,053			1.34				6,325			1.37
Total nonaccrual loans				9,056			0.95				9,759			1.02				10,384			1.07
Foreclosed assets:
Government insured/guaranteed				149							179							197
Non-government insured/guaranteed				632							726							781
Total foreclosed assets				781							905							978
Total nonperforming assets			$	9,837			1.03	%		$	10,664			1.11	%		$	11,362			1.17	%
Change from prior quarter:
Total nonaccrual loans			$	(703	)					$	(625	)					$	(602	)
Total nonperforming assets				(827	)						(698	)						(644	)

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.1 billion at June 30, 2017, which was down $141 million from March 31, 2017. Second quarter 2017 included a $100 million reserve release1, reflecting continued strong credit performance. The allowance coverage for total loans was 1.27 percent, compared with 1.28 percent in first quarter 2017. The allowance covered 4.6 times annualized second quarter net charge-offs, compared with 3.8 times in the prior quarter. The allowance coverage for nonaccrual loans was 134 percent at June 30, 2017, compared with 126 percent at March 31, 2017. The Company believes the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2017.

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
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2017				2017			2016
Community Banking			$	2,993			3,009			3,179
Wholesale Banking				2,388			2,115			2,073
Wealth and Investment Management				682			623			584

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
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2017				2017			2016
Total revenue			$	12,289			12,093			12,204
Provision for credit losses				623			646			689
Noninterest expense				7,223			7,221			6,648
Segment net income				2,993			3,009			3,179
(in billions)
Average loans				477.2			482.7			485.7
Average assets				983.5			990.7			967.6
Average deposits				727.2			717.2			703.7

Community Banking reported net income of $3.0 billion, down $16 million, or 1 percent, from first quarter 2017. Revenue of $12.3 billion increased $196 million, or 2 percent, from first quarter 2017, driven by the gain on the sale of a Pick-a-Pay PCI loan portfolio, higher other income (reflecting the accounting impact of net hedge ineffectiveness), higher gains on sales of debt securities and higher card fees, partially offset by lower gains on equity investments, lower net interest income and lower mortgage banking revenue. Noninterest expense was flat, compared with first quarter 2017, as lower personnel expense offset higher professional services. The provision for credit losses decreased $23 million linked quarter.

Net income decreased $186 million, or 6 percent, from second quarter 2016. Revenue increased $85 million, or 1 percent, compared with a year ago due to the gain on the sale of a Pick-a-Pay PCI loan portfolio, higher net interest income, higher gains from deferred compensation plan investments (offset in benefits expense) and higher card fees, partially offset by lower mortgage banking revenue and gains on sales of debt securities. Noninterest expense increased $575 million, or 9 percent, from a year ago driven by higher personnel and professional services expense. The provision for credit losses decreased $66 million from a year ago primarily due to improvement in the consumer real estate portfolios.

Retail Banking and Consumer Payments, Virtual Solutions and Innovation

• With over 400,000 branch customer experience surveys completed during the second quarter, ‘Overall Satisfaction with Most Recent Visit’ and ‘Loyalty’ scores in June reached their highest levels since August 2016
• 5,977 retail bank branches as of the end of second quarter 2017, reflecting 54 branch consolidations in the quarter
• Primary consumer checking customers6,7 up 0.7 percent year-over-year
• Debit card point-of-sale purchase volume8 of $80.6 billion in second quarter, up 6 percent year-over-year
• Credit card point-of-sale purchase volume of $20.0 billion in second quarter, up 3 percent year-over-year
• Credit card penetration in retail banking households of 45.5 percent9
• 27.9 million digital (online and mobile) active customers in June, including 20.4 million mobile active users10
• Keynote's Banker Scorecard named Wells Fargo as tied for #1 in online performance (May 2017)
• Launched ZelleSM peer-to-peer payments experience to allow digital customers to send, receive, and request money with mobile banking customers across the U.S.

Consumer Lending

• Auto originations of $4.5 billion in second quarter, down 17 percent from prior quarter and down 45 percent from prior year, as proactive steps to tighten underwriting standards resulted in lower origination volume
• Home Lending
  • Originations of $56 billion, up from $44 billion in prior quarter
  • Applications of $83 billion, up from $59 billion in prior quarter
  • Application pipeline of $34 billion at quarter end, up from $28 billion at March 31, 2017

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
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2017				2017			2016
Total revenue			$	6,951			7,038			7,284
Provision (reversal of provision) for credit losses				(65	)		(43	)		385
Noninterest expense				4,078			4,225			4,036
Segment net income				2,388			2,115			2,073
(in billions)
Average loans				464.9			466.3			451.4
Average assets				817.3			807.8			772.6
Average deposits				463.0			466.0			425.8

Wholesale Banking reported net income of $2.4 billion, up $273 million, or 13 percent, from first quarter 2017, primarily due to the tax benefit resulting from our agreement to sell Wells Fargo Insurance Services USA and related businesses and lower noninterest expense. Revenue of $7.0 billion decreased $87 million, or 1 percent, from the prior quarter. Net interest income increased $130 million, or 3 percent, on higher trading related income, increased loan yields and one additional business day in the quarter. Noninterest income decreased $217 million, or 8 percent, as lower customer accommodation trading and lower principal investing results were partially offset by higher investment banking and commercial real estate brokerage fees. Noninterest expense decreased $147 million, or 3 percent, from the prior quarter due to seasonally higher personnel expenses in the first quarter. The provision for credit losses decreased $22 million from the prior quarter, primarily due to improvements in the oil and gas portfolio.

Net income increased $315 million, or 15 percent, from second quarter 2016, primarily due to the tax benefit in second quarter 2017 and lower loan loss provision. Revenue decreased $333 million, or 5 percent, from second quarter 2016, which included the gain on sale of our health benefit services business. Net interest income increased $359 million, or 9 percent, from second quarter 2016 on deposit and loan growth, including the GE Capital portfolio acquisitions in the second half of 2016, as well as the impact of rising interest rates. Noninterest income decreased $692 million, or 21 percent, from a year ago primarily due to the second quarter 2016 gain on the sale of our health benefit services business, lower customer accommodation trading results, and lower principal investing gains. Noninterest expense increased $42 million, or 1 percent, from a year ago primarily due to higher expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses decreased $450 million from a year ago primarily due to improvements in the oil and gas portfolio.

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

Selected Financial Information
			Quarter ended
			Jun 30,				Mar 31,			Jun 30,
(in millions)			2017				2017			2016
Total revenue			$	4,182			4,193			3,919
Provision (reversal of provision) for credit losses				7			(4	)		2
Noninterest expense				3,075			3,206			2,976
Segment net income				682			623			584
(in billions)
Average loans				71.7			70.7			66.7
Average assets				213.1			221.9			205.3
Average deposits				188.2			195.6			182.5

Wealth and Investment Management reported net income of $682 million, up $59 million, or 9 percent, from first quarter 2017. Revenue of $4.2 billion decreased $11 million from the prior quarter, primarily due to lower gains on deferred compensation plan investments (offset in employee benefits expense) and lower other fee income, partially offset by higher net interest income and higher asset-based fees. Noninterest expense decreased $131 million, or 4 percent, from the prior quarter, primarily driven by lower personnel expenses from seasonally-higher first quarter expense, lower other non-personnel expenses, and lower deferred compensation plan expense (offset in trading revenue), partially offset by higher operating losses.

Net income was up $98 million, or 17 percent, from second quarter 2016. Revenue increased $263 million, or 7 percent, from a year ago primarily driven by higher net interest income and asset-based fees, partially offset by lower transaction revenue. Noninterest expense increased $99 million, or 3 percent, from a year ago, primarily due to higher operating losses, broker commissions, and other personnel expenses.

• WIM total client assets reached a record-high of $1.8 trillion, up 8 percent from a year ago, driven by higher market valuations and continued positive net flows
• Second quarter 2017 average closed referred investment assets (referrals resulting from the WIM/Community Banking partnership) were up 12 percent from first quarter 2017

Retail Brokerage

• Client assets of $1.6 trillion, up 8 percent from prior year
• Advisory assets of $503 billion, up 13 percent from prior year, primarily driven by higher market valuations and positive net flows
• Strong loan growth, with average balances up 11 percent from prior year largely due to continued growth in non-conforming mortgage loans

Wealth Management

• Client assets of $236 billion, up 5 percent from prior year
• Average loan balances up 5 percent from prior year primarily driven by continued growth in non-conforming mortgage loans

Asset Management

• Total assets under management of $487 billion, up 1 percent from prior year, primarily due to higher market valuations, positive fixed income net flows and assets acquired during the prior year, partially offset by equity and money market net outflows
• Strong performance in active equity with 70 percent of active equity mutual funds outperforming their respective benchmarks year-to-date through the end of June

Retirement

• IRA assets of $390 billion, up 6 percent from prior year
• Institutional Retirement plan assets of $375 billion, up 11 percent from prior year

Conference Call

The Company will host a live conference call on Friday, July 14, at 7:00 a.m. PT (10:00 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 440-424-4922 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~34999396.

A replay of the conference call will be available beginning at 10:00 a.m. PT (1:00 p.m. ET) on Friday, July 14 through Friday, July 28. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #34999396. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and https://engage.vevent.com/rt/wells_fargo_ao~34999396.

Endnotes
1		Reserve build represents the amount by which the provision for credit losses exceeds net charge-offs, while reserve release represents the amount by which net charge-offs exceed the provision for credit losses.
2		See table on page 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.
3		Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.
4		Market sensitive revenue represents net gains from trading activities, debt securities and equity investments.
5		Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the Selected Five Quarter Residential Mortgage Production Data table on page 41 for more information.
6		Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.
7		Data as of May 2017, comparisons with May 2016.
8		Combined consumer and business debit card purchase volume dollars.
9		Credit card penetration defined as the percentage of Retail Banking households that have a credit card with Wells Fargo. 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. Credit card household penetration rates have not been adjusted to reflect the impact of the potentially unauthorized accounts identified by an independent consulting firm late in 2016 because the maximum impact in any one quarter was not greater than 86 basis points, or approximately 2 percent. Data as of May 2017.
10		Primarily includes retail banking, consumer lending, small business and business banking customers.

Forward-Looking Statements

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

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

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

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

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

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

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,500 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 271,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of America’s largest corporations.

Wells Fargo & Company and Subsidiaries
QUARTERLY FINANCIAL DATA
TABLE OF CONTENTS
			Pages
Summary Information
Summary Financial Data			16
Income
Consolidated Statement of Income			18
Consolidated Statement of Comprehensive Income			20
Condensed Consolidated Statement of Changes in Total Equity			20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			21
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)			23
Noninterest Income and Noninterest Expense			24
Balance Sheet
Consolidated Balance Sheet			26
Investment Securities			28
Loans
Loans			28
Nonperforming Assets			29
Loans 90 Days or More Past Due and Still Accruing			30
Purchased Credit-Impaired Loans			31
Pick-A-Pay Portfolio			32
Changes in Allowance for Credit Losses			34
Equity
Tangible Common Equity			35
Common Equity Tier 1 Under Basel III			36
Operating Segments
Operating Segment Results			37
Other
Mortgage Servicing and other related data			39

Wells Fargo & Company and Subsidiaries
SUMMARY FINANCIAL DATA
												% Change
		Quarter ended										Jun 30, 2017 from						Six months ended
($ in millions, except per		Jun 30,				Mar 31,			Jun 30,			Mar 31,			Jun 30,			Jun 30,				Jun 30,			%
share amounts)		2017				2017			2016			2017			2016			2017				2016			Change
For the Period
Wells Fargo net income		$	5,810			5,457			5,558			6	%		5			$	11,267			11,020			2	%
Wells Fargo net income applicable to common stock			5,404			5,056			5,173			7			4				10,460			10,258			2
Diluted earnings per common share			1.07			1.00			1.01			7			6				2.07			2.00			4
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.21	%		1.15			1.20			5			1				1.18	%		1.20			(2	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			11.95			11.54			11.70			4			2				11.75			11.72			—
Return on average tangible common equity (ROTCE)(1)			14.26			13.85			14.15			3			1				14.06			14.15			(1	)
Efficiency ratio (2)			61.1			62.7			58.1			(3	)		5				61.9			58.4			6
Total revenue		$	22,169			22,002			22,162			1			—			$	44,171			44,357			—
Pre-tax pre-provision profit (PTPP) (3)			8,628			8,210			9,296			5			(7	)			16,838			18,463			(9	)
Dividends declared per common share			0.380			0.380			0.380			—			—				0.760			0.755			1
Average common shares outstanding			4,989.9			5,008.6			5,066.9			—			(2	)			4,999.2			5,071.3			(1	)
Diluted average common shares outstanding			5,037.7			5,070.4			5,118.1			(1	)		(2	)			5,054.8			5,129.8			(1	)
Average loans		$	956,879			963,645			950,751			(1	)		1			$	960,243			938,986			2
Average assets			1,927,079			1,931,041			1,862,084			—			3				1,929,049			1,840,980			5
Average total deposits			1,301,195			1,299,191			1,236,658			—			5				1,300,198			1,228,044			6
Average consumer and small business banking deposits (4)			760,149			758,754			726,359			—			5				759,455			720,598			5
Net interest margin			2.90	%		2.87			2.86			1			1				2.89	%		2.88			—
At Period End
Investment securities		$	409,594			407,560			353,426			—			16			$	409,594			353,426			16
Loans			957,423			958,405			957,157			—			—				957,423			957,157			—
Allowance for loan losses			11,073			11,168			11,664			(1	)		(5	)			11,073			11,664			(5	)
Goodwill			26,573			26,666			26,963			—			(1	)			26,573			26,963			(1	)
Assets			1,930,871			1,951,564			1,889,235			(1	)		2				1,930,871			1,889,235			2
Deposits			1,305,830			1,325,444			1,245,473			(1	)		5				1,305,830			1,245,473			5
Common stockholders' equity			181,428			178,388			178,633			2			2				181,428			178,633			2
Wells Fargo stockholders’ equity			205,230			201,500			201,745			2			2				205,230			201,745			2
Total equity			206,145			202,489			202,661			2			2				206,145			202,661			2
Tangible common equity (1)			152,173			148,850			148,110			2			3				152,173			148,110			3
Common shares outstanding			4,966.8			4,996.7			5,048.5			(1	)		(2	)			4,966.8			5,048.5			(2	)
Book value per common share (5)		$	36.53			35.70			35.38			2			3			$	36.53			35.38			3
Tangible book value per common share (1)(5)			30.64			29.79			29.34			3			4				30.64			29.34			4
Common stock price:
High			56.60			59.99			51.41			(6	)		10				59.99			53.27			13
Low			50.84			53.35			44.50			(5	)		14				50.84			44.50			14
Period end			55.41			55.66			47.33			—			17				55.41			47.33			17
Team members (active, full-time equivalent)			270,600			272,800			267,900			(1	)		1				270,600			267,900			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
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
($ in millions, except per share amounts)		2017				2017			2016			2016			2016
For the Quarter
Wells Fargo net income		$	5,810			5,457			5,274			5,644			5,558
Wells Fargo net income applicable to common stock			5,404			5,056			4,872			5,243			5,173
Diluted earnings per common share			1.07			1.00			0.96			1.03			1.01
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)			1.21	%		1.15			1.08			1.17			1.20
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)			11.95			11.54			10.94			11.60			11.70
Return on average tangible common equity (ROTCE)(1)			14.26			13.85			13.16			13.96			14.15
Efficiency ratio (2)			61.1			62.7			61.2			59.4			58.1
Total revenue		$	22,169			22,002			21,582			22,328			22,162
Pre-tax pre-provision profit (PTPP) (3)			8,628			8,210			8,367			9,060			9,296
Dividends declared per common share			0.380			0.380			0.380			0.380			0.380
Average common shares outstanding			4,989.9			5,008.6			5,025.6			5,043.4			5,066.9
Diluted average common shares outstanding			5,037.7			5,070.4			5,078.2			5,094.6			5,118.1
Average loans		$	956,879			963,645			964,147			957,484			950,751
Average assets			1,927,079			1,931,041			1,944,250			1,914,586			1,862,084
Average total deposits			1,301,195			1,299,191			1,284,158			1,261,527			1,236,658
Average consumer and small business banking deposits (4)			760,149			758,754			749,946			739,066			726,359
Net interest margin			2.90	%		2.87			2.87			2.82			2.86
At Quarter End
Investment securities		$	409,594			407,560			407,947			390,832			353,426
Loans			957,423			958,405			967,604			961,326			957,157
Allowance for loan losses			11,073			11,168			11,419			11,583			11,664
Goodwill			26,573			26,666			26,693			26,688			26,963
Assets			1,930,871			1,951,564			1,930,115			1,942,124			1,889,235
Deposits			1,305,830			1,325,444			1,306,079			1,275,894			1,245,473
Common stockholders' equity			181,428			178,388			176,469			179,916			178,633
Wells Fargo stockholders’ equity			205,230			201,500			199,581			203,028			201,745
Total equity			206,145			202,489			200,497			203,958			202,661
Tangible common equity (1)			152,173			148,850			146,737			149,829			148,110
Common shares outstanding			4,966.8			4,996.7			5,016.1			5,023.9			5,048.5
Book value per common share (5)		$	36.53			35.70			35.18			35.81			35.38
Tangible book value per common share (1)(5)			30.64			29.79			29.25			29.82			29.34
Common stock price:
High			56.60			59.99			58.02			51.00			51.41
Low			50.84			53.35			43.55			44.10			44.50
Period end			55.41			55.66			55.11			44.28			47.33
Team members (active, full-time equivalent)			270,600			272,800			269,100			268,800			267,900
(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 June 30,							%			Six months ended June 30,							%
(in millions, except per share amounts)			2017				2016			Change			2017				2016			Change
Interest income
Trading assets			$	710			572			24	%		$	1,353			1,168			16	%
Investment securities				2,698			2,176			24				5,373			4,438			21
Mortgages held for sale				195			181			8				379			342			11
Loans held for sale				4			3			33				5			5			—
Loans				10,358			9,822			5				20,499			19,399			6
Other interest income				750			392			91				1,332			766			74
Total interest income				14,715			13,146			12				28,941			26,118			11
Interest expense
Deposits				683			332			106				1,220			639			91
Short-term borrowings				163			77			112				277			144			92
Long-term debt				1,278			921			39				2,461			1,763			40
Other interest expense				108			83			30				200			172			16
Total interest expense				2,232			1,413			58				4,158			2,718			53
Net interest income				12,483			11,733			6				24,783			23,400			6
Provision for credit losses				555			1,074			(48	)			1,160			2,160			(46	)
Net interest income after provision for credit losses				11,928			10,659			12				23,623			21,240			11
Noninterest income
Service charges on deposit accounts				1,276			1,336			(4	)			2,589			2,645			(2	)
Trust and investment fees				3,629			3,547			2				7,199			6,932			4
Card fees				1,019			997			2				1,964			1,938			1
Other fees				902			906			—				1,767			1,839			(4	)
Mortgage banking				1,148			1,414			(19	)			2,376			3,012			(21	)
Insurance				280			286			(2	)			557			713			(22	)
Net gains from trading activities				237			328			(28	)			676			528			28
Net gains on debt securities				120			447			(73	)			156			691			(77	)
Net gains from equity investments				188			189			(1	)			591			433			36
Lease income				493			497			(1	)			974			870			12
Other				394			482			(18	)			539			1,356			(60	)
Total noninterest income				9,686			10,429			(7	)			19,388			20,957			(7	)
Noninterest expense
Salaries				4,343			4,099			6				8,604			8,135			6
Commission and incentive compensation				2,499			2,604			(4	)			5,224			5,249			—
Employee benefits				1,308			1,244			5				2,994			2,770			8
Equipment				529			493			7				1,106			1,021			8
Net occupancy				706			716			(1	)			1,418			1,427			(1	)
Core deposit and other intangibles				287			299			(4	)			576			592			(3	)
FDIC and other deposit assessments				328			255			29				661			505			31
Other				3,541			3,156			12				6,750			6,195			9
Total noninterest expense				13,541			12,866			5				27,333			25,894			6
Income before income tax expense				8,073			8,222			(2	)			15,678			16,303			(4	)
Income tax expense				2,225			2,649			(16	)			4,282			5,216			(18	)
Net income before noncontrolling interests				5,848			5,573			5				11,396			11,087			3
Less: Net income from noncontrolling interests				38			15			153				129			67			93
Wells Fargo net income			$	5,810			5,558			5			$	11,267			11,020			2
Less: Preferred stock dividends and other				406			385			5				807			762			6
Wells Fargo net income applicable to common stock			$	5,404			5,173			4			$	10,460			10,258			2
Per share information
Earnings per common share			$	1.08			1.02			6			$	2.09			2.02			3
Diluted earnings per common share				1.07			1.01			6				2.07			2.00			4
Dividends declared per common share				0.380			0.380			—				0.760			0.755			1
Average common shares outstanding				4,989.9			5,066.9			(2	)			4,999.2			5,071.3			(1	)
Diluted average common shares outstanding				5,037.7			5,118.1			(2	)			5,054.8			5,129.8			(1	)

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME
			Quarter ended
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions, except per share amounts)			2017				2017			2016			2016			2016
Interest income
Trading assets			$	710			643			745			593			572
Investment securities				2,698			2,675			2,512			2,298			2,176
Mortgages held for sale				195			184			235			207			181
Loans held for sale				4			1			2			2			3
Loans				10,358			10,141			10,128			9,978			9,822
Other interest income				750			582			436			409			392
Total interest income				14,715			14,226			14,058			13,487			13,146
Interest expense
Deposits				683			537			400			356			332
Short-term borrowings				163			114			101			85			77
Long-term debt				1,278			1,183			1,061			1,006			921
Other interest expense				108			92			94			88			83
Total interest expense				2,232			1,926			1,656			1,535			1,413
Net interest income				12,483			12,300			12,402			11,952			11,733
Provision for credit losses				555			605			805			805			1,074
Net interest income after provision for credit losses				11,928			11,695			11,597			11,147			10,659
Noninterest income
Service charges on deposit accounts				1,276			1,313			1,357			1,370			1,336
Trust and investment fees				3,629			3,570			3,698			3,613			3,547
Card fees				1,019			945			1,001			997			997
Other fees				902			865			962			926			906
Mortgage banking				1,148			1,228			1,417			1,667			1,414
Insurance				280			277			262			293			286
Net gains (losses) from trading activities				237			439			(109	)		415			328
Net gains on debt securities				120			36			145			106			447
Net gains from equity investments				188			403			306			140			189
Lease income				493			481			523			534			497
Other				394			145			(382	)		315			482
Total noninterest income				9,686			9,702			9,180			10,376			10,429
Noninterest expense
Salaries				4,343			4,261			4,193			4,224			4,099
Commission and incentive compensation				2,499			2,725			2,478			2,520			2,604
Employee benefits				1,308			1,686			1,101			1,223			1,244
Equipment				529			577			642			491			493
Net occupancy				706			712			710			718			716
Core deposit and other intangibles				287			289			301			299			299
FDIC and other deposit assessments				328			333			353			310			255
Other				3,541			3,209			3,437			3,483			3,156
Total noninterest expense				13,541			13,792			13,215			13,268			12,866
Income before income tax expense				8,073			7,605			7,562			8,255			8,222
Income tax expense				2,225			2,057			2,258			2,601			2,649
Net income before noncontrolling interests				5,848			5,548			5,304			5,654			5,573
Less: Net income from noncontrolling interests				38			91			30			10			15
Wells Fargo net income			$	5,810			5,457			5,274			5,644			5,558
Less: Preferred stock dividends and other				406			401			402			401			385
Wells Fargo net income applicable to common stock			$	5,404			5,056			4,872			5,243			5,173
Per share information
Earnings per common share			$	1.08			1.01			0.97			1.04			1.02
Diluted earnings per common share				1.07			1.00			0.96			1.03			1.01
Dividends declared per common share				0.380			0.380			0.380			0.380			0.380
Average common shares outstanding				4,989.9			5,008.6			5,025.6			5,043.4			5,066.9
Diluted average common shares outstanding				5,037.7			5,070.4			5,078.2			5,094.6			5,118.1

Wells Fargo & Company and Subsidiaries
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
			Quarter ended June 30,							%			Six months ended June 30,							%
(in millions)			2017				2016			Change			2017				2016			Change
Wells Fargo net income			$	5,810			5,558			5	%		$	11,267			11,020			2	%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains arising during the period				1,565			1,571			—				1,934			2,366			(18	)
Reclassification of net gains to net income				(177	)		(504	)		(65	)			(322	)		(808	)		(60	)
Derivatives and hedging activities:
Net unrealized gains arising during the period				376			1,057			(64	)			243			3,056			(92	)
Reclassification of net gains on cash flow hedges to net income				(153	)		(265	)		(42	)			(355	)		(521	)		(32	)
Defined benefit plans adjustments:
Net actuarial and prior service losses arising during the period				—			(19	)		(100	)			(7	)		(27	)		(74	)
Amortization of net actuarial loss, settlements and other to net income				41			39			5				79			76			4
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period				31			(6	)		NM				47			37			27
Other comprehensive income, before tax				1,683			1,873			(10	)			1,619			4,179			(61	)
Income tax expense related to other comprehensive income				(624	)		(714	)		(13	)			(587	)		(1,571	)		(63	)
Other comprehensive income, net of tax				1,059			1,159			(9	)			1,032			2,608			(60	)
Less: Other comprehensive income (loss) from noncontrolling interests				(9	)		(15	)		(40	)			5			(43	)		NM
Wells Fargo other comprehensive income, net of tax				1,068			1,174			(9	)			1,027			2,651			(61	)
Wells Fargo comprehensive income				6,878			6,732			2				12,294			13,671			(10	)
Comprehensive income from noncontrolling interests				29			—			—				134			24			458
Total comprehensive income			$	6,907			6,732			3			$	12,428			13,695			(9	)
NM – Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
		Quarter ended
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Balance, beginning of period		$	202,489			200,497			203,958			202,661			198,504
Wells Fargo net income			5,810			5,457			5,274			5,644			5,558
Wells Fargo other comprehensive income (loss), net of tax			1,068			(41	)		(5,321	)		(764	)		1,174
Noncontrolling interests			(75	)		75			(13	)		14			(92	)
Common stock issued			252			1,406			610			300			397
Common stock repurchased (1)			(2,287	)		(2,175	)		(2,034	)		(1,839	)		(2,214	)
Preferred stock released by ESOP			406			—			43			236			371
Common stock warrants repurchased/exercised			(24	)		(44	)		—			(17	)		—
Preferred stock issued			677			—			—			—			1,126
Common stock dividends			(1,899	)		(1,903	)		(1,909	)		(1,918	)		(1,930	)
Preferred stock dividends			(406	)		(401	)		(401	)		(401	)		(386	)
Tax benefit from stock incentive compensation (2)			—			—			74			31			23
Stock incentive compensation expense			145			389			232			39			139
Net change in deferred compensation and related plans			(11	)		(771	)		(16	)		(28	)		(9	)
Balance, end of period		$	206,145			202,489			200,497			203,958			202,661
(1) For the quarter ended December 31, 2016, includes $750 million related to a private forward repurchase transaction that settled in first quarter 2017 for 14.7 million shares of common stock.
(2) Effective January 1, 2017, we adopted Accounting Standards Update 2016-09 (Improvements to Employee Share-Based Payment Accounting). Accordingly, tax benefit from stock incentive compensation is reported in income tax expense in the consolidated statement of income.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended June 30,
		2017											2016
									Interest										Interest
		Average				Yields/			income/				Average			Yields/			income/
(in millions)		balance				rates			expense				balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	281,619			0.99	%		$	698			293,783			0.49	%		$	359
Trading assets			98,086			2.95				722			81,380			2.86				582
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			18,099			1.53				69			31,525			1.56				123
Securities of U.S. states and political subdivisions			53,492			4.03				540			52,201			4.24				553
Mortgage-backed securities:
Federal agencies			132,032			2.63				868			92,010			2.53				583
Residential and commercial			12,586			5.55				175			19,571			5.44				266
Total mortgage-backed securities			144,618			2.89				1,043			111,581			3.04				849
Other debt and equity securities			48,962			3.87				472			53,301			3.48				461
Total available-for-sale securities			265,171			3.21				2,124			248,608			3.20				1,986
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,701			2.19				244			44,671			2.19				243
Securities of U.S. states and political subdivisions			6,270			5.29				83			2,155			5.41				29
Federal agency and other mortgage-backed securities			83,116			2.44				507			35,057			1.90				166
Other debt securities			2,798			2.34				16			4,077			1.92				20
Total held-to-maturity securities			136,885			2.49				850			85,960			2.14				458
Total investment securities			402,056			2.96				2,974			334,568			2.93				2,444
Mortgages held for sale (4)			19,758			3.94				195			20,140			3.60				181
Loans held for sale (4)			210			6.95				4			239			4.83				3
Loans:
Commercial:
Commercial and industrial - U.S.			273,073			3.70				2,521			270,862			3.45				2,328
Commercial and industrial - Non U.S.			56,426			2.86				402			51,201			2.35				300
Real estate mortgage			131,293			3.68				1,206			126,126			3.41				1,069
Real estate construction			25,271			4.10				259			23,115			3.49				200
Lease financing			19,058			4.82				230			18,930			5.12				242
Total commercial			505,121			3.67				4,618			490,234			3.39				4,139
Consumer:
Real estate 1-4 family first mortgage			275,108			4.08				2,805			275,854			4.01				2,765
Real estate 1-4 family junior lien mortgage			43,602			4.78				521			50,609			4.37				551
Credit card			34,868			12.18				1,059			33,368			11.52				956
Automobile			59,112			5.43				800			61,149			5.66				860
Other revolving credit and installment			39,068			6.13				596			39,537			5.91				581
Total consumer			451,758			5.13				5,781			460,517			4.98				5,713
Total loans (4)			956,879			4.36				10,399			950,751			4.16				9,852
Other			10,713			2.00				54			6,014			2.30				35
Total earning assets		$	1,769,321			3.41	%		$	15,046			1,686,875			3.20	%		$	13,456
Funding sources
Deposits:
Interest-bearing checking		$	48,465			0.41	%		$	50			39,772			0.13	%		$	13
Market rate and other savings			683,014			0.13				214			658,944			0.07				110
Savings certificates			22,599			0.30				17			26,246			0.35				23
Other time deposits			57,158			1.43				203			61,170			0.85				129
Deposits in foreign offices			123,684			0.65				199			97,525			0.23				57
Total interest-bearing deposits			934,920			0.29				683			883,657			0.15				332
Short-term borrowings			95,763			0.69				164			111,848			0.28				78
Long-term debt			249,518			2.05				1,278			236,156			1.56				921
Other liabilities			20,981			2.05				108			16,336			2.06				83
Total interest-bearing liabilities			1,301,182			0.69				2,233			1,247,997			0.45				1,414
Portion of noninterest-bearing funding sources			468,139			—				—			438,878
Total funding sources		$	1,769,321			0.51				2,233			1,686,875			0.34				1,414
Net interest margin and net interest income on a taxable-equivalent basis (5)						2.90	%		$	12,813						2.86	%		$	12,042
Noninterest-earning assets
Cash and due from banks		$	18,171										18,818
Goodwill			26,664										27,037
Other			112,923										129,354
Total noninterest-earning assets		$	157,758										175,209
Noninterest-bearing funding sources
Deposits		$	366,275										353,001
Other liabilities			53,654										60,083
Total equity			205,968										201,003
Noninterest-bearing funding sources used to fund earning assets			(468,139	)									(438,878	)
Net noninterest-bearing funding sources		$	157,758										175,209
Total assets		$	1,927,079										1,862,084
(1) Our average prime rate was 4.05% and 3.50% for the quarters ended June 30, 2017 and 2016, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.21% and 0.64% 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 $330 million and $309 million for the quarters ended June 30, 2017 and 2016, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Six months ended June 30,
		2017											2016
									Interest										Interest
		Average				Yields/			income/				Average			Yields/			income/
(in millions)		balance				rates			expense				balance			rates			expense
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	282,687			0.88	%		$	1,230			289,240			0.49	%		$	703
Trading assets			95,937			2.87				1,377			80,922			2.94				1,187
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			21,547			1.53				164			33,000			1.58				259
Securities of U.S. states and political subdivisions			52,873			4.03				1,066			51,357			4.24				1,088
Mortgage-backed securities:
Federal agencies			144,257			2.61				1,879			94,216			2.67				1,258
Residential and commercial			13,514			5.43				367			20,199			5.32				537
Total mortgage-backed securities			157,771			2.85				2,246			114,415			3.14				1,795
Other debt and equity securities			49,787			3.73				924			53,430			3.34				890
Total available-for-sale securities			281,978			3.13				4,400			252,202			3.20				4,032
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,697			2.20				487			44,667			2.19				487
Securities of U.S. states and political subdivisions			6,271			5.30				166			2,155			5.41				58
Federal agency and other mortgage-backed securities			67,538			2.46				831			31,586			2.16				341
Other debt securities			3,062			2.34				35			4,338			1.92				42
Total held-to-maturity securities			121,568			2.51				1,519			82,746			2.25				928
Total investment securities			403,546			2.94				5,919			334,948			2.97				4,960
Mortgages held for sale (4)			19,825			3.82				379			19,005			3.60				342
Loans held for sale (4)			161			6.08				5			260			3.97				5
Loans:
Commercial:
Commercial and industrial - U.S.			273,905			3.65				4,957			264,295			3.42				4,505
Commercial and industrial - Non U.S.			55,890			2.80				775			50,354			2.23				558
Real estate mortgage			131,868			3.62				2,370			124,432			3.41				2,109
Real estate construction			24,933			3.91				484			22,859			3.55				403
Lease financing			19,064			4.88				465			16,989			4.95				420
Total commercial			505,660			3.61				9,051			478,929			3.35				7,995
Consumer:
Real estate 1-4 family first mortgage			275,293			4.05				5,571			275,288			4.03				5,547
Real estate 1-4 family junior lien mortgage			44,439			4.69				1,036			51,423			4.38				1,122
Credit card			35,151			12.07				2,105			33,367			11.56				1,919
Automobile			60,304			5.45				1,628			60,631			5.66				1,708
Other revolving credit and installment			39,396			6.07				1,186			39,348			5.95				1,165
Total consumer			454,583			5.09				11,526			460,057			5.00				11,461
Total loans (4)			960,243			4.31				20,577			938,986			4.16				19,456
Other			8,801			2.37				104			5,910			2.18				65
Total earning assets		$	1,771,200			3.36	%		$	29,591			1,669,271			3.21	%		$	26,718
Funding sources
Deposits:
Interest-bearing checking		$	49,569			0.35	%		$	87			39,242			0.12	%		$	24
Market rate and other savings			683,591			0.11				371			655,247			0.07				217
Savings certificates			23,030			0.29				34			27,063			0.40				54
Other time deposits			56,043			1.37				381			59,688			0.80				236
Deposits in foreign offices			122,946			0.57				347			97,604			0.22				108
Total interest-bearing deposits			935,179			0.26				1,220			878,844			0.15				639
Short-term borrowings			97,149			0.58				279			109,853			0.27				145
Long-term debt			254,627			1.94				2,461			226,519			1.56				1,763
Other liabilities			18,905			2.12				200			16,414			2.10				172
Total interest-bearing liabilities			1,305,860			0.64				4,160			1,231,630			0.44				2,719
Portion of noninterest-bearing funding sources			465,340			—				—			437,641			—				—
Total funding sources		$	1,771,200			0.47				4,160			1,669,271			0.33				2,719
Net interest margin and net interest income on a taxable-equivalent basis (5)						2.89	%		$	25,431						2.88	%		$	23,999
Noninterest-earning assets
Cash and due from banks		$	18,437										18,407
Goodwill			26,668										26,553
Other			112,744										126,749
Total noninterest-earning assets		$	157,849										171,709
Noninterest-bearing funding sources
Deposits		$	365,019										349,200
Other liabilities			54,291										61,355
Total equity			203,879										198,795
Noninterest-bearing funding sources used to fund earning assets			(465,340	)									(437,641	)
Net noninterest-bearing funding sources		$	157,849										171,709
Total assets		$	1,929,049										1,840,980
(1) Our average prime rate was 3.92% and 3.50% for the first half of 2017 and 2016, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 1.14% and 0.63% 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 $648 million and $599 million for the first half of 2017 and 2016, respectively, predominantly related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries
FIVE QUARTER AVERAGE BALANCES, YIELDS AND RATES PAID (TAXABLE-EQUIVALENT BASIS) (1)(2)
		Quarter ended
		Jun 30, 2017							Mar 31, 2017							Dec 31, 2016							Sep 30, 2016							Jun 30, 2016
		Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/			Average				Yields/
($ in billions)		balance				rates			balance				rates			balance				rates			balance				rates			balance				rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments		$	281.6			0.99	%		$	283.8			0.76	%		$	273.1			0.56	%		$	299.4			0.50	%		$	293.8			0.49	%
Trading assets			98.1			2.95				93.8			2.80				102.8			2.96				88.8			2.72				81.4			2.86
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies			18.1			1.53				25.0			1.54				25.9			1.53				25.8			1.52				31.5			1.56
Securities of U.S. states and political subdivisions			53.5			4.03				52.2			4.03				53.9			4.06				55.2			4.28				52.2			4.24
Mortgage-backed securities:
Federal agencies			132.0			2.63				156.6			2.58				148.0			2.37				105.8			2.39				92.0			2.53
Residential and commercial			12.6			5.55				14.5			5.32				16.5			5.87				18.1			5.54				19.6			5.44
Total mortgage-backed securities			144.6			2.89				171.1			2.81				164.5			2.72				123.9			2.85				111.6			3.04
Other debt and equity securities			49.0			3.87				50.7			3.60				52.7			3.71				54.2			3.37				53.3			3.48
Total available-for-sale securities			265.2			3.21				299.0			3.05				297.0			3.03				259.1			3.13				248.6			3.20
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44.7			2.19				44.7			2.20				44.7			2.20				44.6			2.19				44.6			2.19
Securities of U.S. states and political subdivisions			6.3			5.29				6.3			5.30				4.7			5.31				2.5			5.24				2.2			5.41
Federal agency and other mortgage-backed securities			83.1			2.44				51.8			2.51				46.0			1.81				48.0			1.97				35.1			1.90
Other debt securities			2.8			2.34				3.3			2.34				3.6			2.26				3.9			1.98				4.1			1.92
Total held-to-maturity securities			136.9			2.49				106.1			2.54				99.0			2.17				99.0			2.15				86.0			2.14
Total investment securities			402.1			2.96				405.1			2.92				396.0			2.82				358.1			2.86				334.6			2.93
Mortgages held for sale			19.8			3.94				19.9			3.70				27.5			3.43				24.1			3.44				20.1			3.60
Loans held for sale			0.2			6.95				0.1			4.44				0.2			5.42				0.2			3.04				0.2			4.83
Loans:
Commercial:
Commercial and industrial - U.S.			273.1			3.70				274.8			3.59				272.8			3.46				271.2			3.48				270.9			3.45
Commercial and industrial - Non U.S.			56.4			2.86				55.3			2.73				54.4			2.58				51.3			2.40				51.2			2.35
Real estate mortgage			131.3			3.68				132.4			3.56				131.2			3.44				128.8			3.48				126.1			3.41
Real estate construction			25.3			4.10				24.6			3.72				23.9			3.61				23.2			3.50				23.1			3.49
Lease financing			19.0			4.82				19.1			4.94				18.9			5.78				18.9			4.70				19.0			5.12
Total commercial			505.1			3.67				506.2			3.54				501.2			3.45				493.4			3.42				490.3			3.39
Consumer:
Real estate 1-4 family first mortgage			275.1			4.08				275.5			4.02				277.7			4.01				278.5			3.97				275.9			4.01
Real estate 1-4 family junior lien mortgage			43.6			4.78				45.3			4.60				47.2			4.42				48.9			4.37				50.6			4.37
Credit card			34.9			12.18				35.4			11.97				35.4			11.73				34.6			11.60				33.4			11.52
Automobile			59.1			5.43				61.5			5.46				62.5			5.54				62.5			5.60				61.1			5.66
Other revolving credit and installment			39.1			6.13				39.7			6.02				40.1			5.91				39.6			5.92				39.5			5.91
Total consumer			451.8			5.13				457.4			5.06				462.9			5.01				464.1			4.97				460.5			4.98
Total loans			956.9			4.36				963.6			4.26				964.1			4.20				957.5			4.17				950.8			4.16
Other			10.6			2.00				6.8			2.96				6.7			3.27				6.4			2.30				6.0			2.30
Total earning assets		$	1,769.3			3.41	%		$	1,773.1			3.31	%		$	1,770.4			3.24	%		$	1,734.5			3.17	%		$	1,686.9			3.20	%
Funding sources
Deposits:
Interest-bearing checking		$	48.5			0.41	%		$	50.7			0.29	%		$	46.9			0.17	%		$	44.0			0.15	%		$	39.8			0.13	%
Market rate and other savings			683.0			0.13				684.2			0.09				676.4			0.07				667.2			0.07				659.0			0.07
Savings certificates			22.6			0.30				23.5			0.29				24.4			0.30				25.2			0.30				26.2			0.35
Other time deposits			57.1			1.43				54.9			1.31				49.2			1.16				54.9			0.93				61.2			0.85
Deposits in foreign offices			123.7			0.65				122.2			0.49				110.4			0.35				107.1			0.30				97.5			0.23
Total interest-bearing deposits			934.9			0.29				935.5			0.23				907.3			0.18				898.4			0.16				883.7			0.15
Short-term borrowings			95.8			0.69				98.5			0.47				124.7			0.33				116.2			0.29				111.8			0.28
Long-term debt			249.5			2.05				259.8			1.83				252.2			1.68				252.4			1.59				236.2			1.56
Other liabilities			21.0			2.05				16.8			2.22				17.1			2.15				16.8			2.11				16.3			2.06
Total interest-bearing liabilities			1,301.2			0.69				1,310.6			0.59				1,301.3			0.51				1,283.8			0.48				1,248.0			0.45
Portion of noninterest-bearing funding sources			468.1			—				462.5			—				469.1			—				450.7			—				438.9			—
Total funding sources		$	1,769.3			0.51			$	1,773.1			0.44			$	1,770.4			0.37			$	1,734.5			0.35			$	1,686.9			0.34
Net interest margin on a taxable-equivalent basis						2.90	%						2.87	%						2.87	%						2.82	%						2.86	%
Noninterest-earning assets
Cash and due from banks		$	18.2							18.7							19.0							18.7							18.8
Goodwill			26.7							26.7							26.7							27.0							27.0
Other			112.9							112.5							128.2							134.4							129.4
Total noninterest-earnings assets		$	157.8							157.9							173.9							180.1							175.2
Noninterest-bearing funding sources
Deposits		$	366.3							363.7							376.9							363.1							353.0
Other liabilities			53.6							54.9							64.9							63.8							60.1
Total equity			206.0							201.8							201.2							203.9							201.0
Noninterest-bearing funding sources used to fund earning assets			(468.1	)						(462.5	)						(469.1	)						(450.7	)						(438.9	)
Net noninterest-bearing funding sources		$	157.8							157.9							173.9							180.1							175.2
Total assets		$	1,927.1							1,931.0							1,944.3							1,914.6							1,862.1
(1) Our average prime rate was 4.05% for the quarter ended June 30, 2017, 3.80% for the quarter ended March 31, 2017, 3.54% for the quarter ended December 31, 2016 and 3.50% for the quarters ended September 30 and June 30, 2016. The average three-month London Interbank Offered Rate (LIBOR) was 1.21%, 1.07%, 0.92%, 0.79% and 0.64% 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 June 30,							%			Six months ended June 30,							%
(in millions)			2017				2016			Change			2017				2016			Change
Service charges on deposit accounts			$	1,276			1,336			(4	)%		$	2,589			2,645			(2	)%
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,329			2,291			2				4,653			4,530			3
Trust and investment management				837			835			—				1,666			1,650			1
Investment banking				463			421			10				880			752			17
Total trust and investment fees				3,629			3,547			2				7,199			6,932			4
Card fees				1,019			997			2				1,964			1,938			1
Other fees:
Charges and fees on loans				325			317			3				632			630			—
Cash network fees				134			138			(3	)			260			269			(3	)
Commercial real estate brokerage commissions				102			86			19				183			203			(10	)
Letters of credit fees				76			83			(8	)			150			161			(7	)
Wire transfer and other remittance fees				112			101			11				219			193			13
All other fees				153			181			(15	)			323			383			(16	)
Total other fees				902			906			—				1,767			1,839			(4	)
Mortgage banking:
Servicing income, net				400			360			11				856			1,210			(29	)
Net gains on mortgage loan origination/sales activities				748			1,054			(29	)			1,520			1,802			(16	)
Total mortgage banking				1,148			1,414			(19	)			2,376			3,012			(21	)
Insurance				280			286			(2	)			557			713			(22	)
Net gains from trading activities				237			328			(28	)			676			528			28
Net gains on debt securities				120			447			(73	)			156			691			(77	)
Net gains from equity investments				188			189			(1	)			591			433			36
Lease income				493			497			(1	)			974			870			12
Life insurance investment income				145			149			(3	)			289			303			(5	)
All other				249			333			(25	)			250			1,053			(76	)
Total			$	9,686			10,429			(7	)		$	19,388			20,957			(7	)
NONINTEREST EXPENSE
			Quarter ended June 30,							%			Six months ended June 30,							%
(in millions)			2017				2016			Change			2017				2016			Change
Salaries			$	4,343			4,099			6	%		$	8,604			8,135			6	%
Commission and incentive compensation				2,499			2,604			(4	)			5,224			5,249			—
Employee benefits				1,308			1,244			5				2,994			2,770			8
Equipment				529			493			7				1,106			1,021			8
Net occupancy				706			716			(1	)			1,418			1,427			(1	)
Core deposit and other intangibles				287			299			(4	)			576			592			(3	)
FDIC and other deposit assessments				328			255			29				661			505			31
Outside professional services				1,029			769			34				1,833			1,352			36
Operating losses				350			334			5				632			788			(20	)
Operating leases				334			352			(5	)			679			587			16
Contract services				349			283			23				674			565			19
Outside data processing				236			225			5				456			433			5
Travel and entertainment				171			193			(11	)			350			365			(4	)
Postage, stationery and supplies				134			153			(12	)			279			316			(12	)
Advertising and promotion				150			166			(10	)			277			300			(8	)
Telecommunications				91			94			(3	)			182			186			(2	)
Foreclosed assets				52			66			(21	)			138			144			(4	)
Insurance				24			22			9				48			133			(64	)
All other				621			499			24				1,202			1,026			17
Total			$	13,541			12,866			5			$	27,333			25,894			6

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONINTEREST INCOME
			Quarter ended
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2017				2017			2016			2016			2016
Service charges on deposit accounts			$	1,276			1,313			1,357			1,370			1,336
Trust and investment fees:
Brokerage advisory, commissions and other fees				2,329			2,324			2,342			2,344			2,291
Trust and investment management				837			829			837			849			835
Investment banking				463			417			519			420			421
Total trust and investment fees				3,629			3,570			3,698			3,613			3,547
Card fees				1,019			945			1,001			997			997
Other fees:
Charges and fees on loans				325			307			305			306			317
Cash network fees				134			126			130			138			138
Commercial real estate brokerage commissions				102			81			172			119			86
Letters of credit fees				76			74			79			81			83
Wire transfer and other remittance fees				112			107			105			103			101
All other fees				153			170			171			179			181
Total other fees				902			865			962			926			906
Mortgage banking:
Servicing income, net				400			456			196			359			360
Net gains on mortgage loan origination/sales activities				748			772			1,221			1,308			1,054
Total mortgage banking				1,148			1,228			1,417			1,667			1,414
Insurance				280			277			262			293			286
Net gains (losses) from trading activities				237			439			(109	)		415			328
Net gains on debt securities				120			36			145			106			447
Net gains from equity investments				188			403			306			140			189
Lease income				493			481			523			534			497
Life insurance investment income				145			144			132			152			149
All other				249			1			(514	)		163			333
Total			$	9,686			9,702			9,180			10,376			10,429
FIVE QUARTER NONINTEREST EXPENSE
			Quarter ended
			Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)			2017				2017			2016			2016			2016
Salaries			$	4,343			4,261			4,193			4,224			4,099
Commission and incentive compensation				2,499			2,725			2,478			2,520			2,604
Employee benefits				1,308			1,686			1,101			1,223			1,244
Equipment				529			577			642			491			493
Net occupancy				706			712			710			718			716
Core deposit and other intangibles				287			289			301			299			299
FDIC and other deposit assessments				328			333			353			310			255
Outside professional services				1,029			804			984			802			769
Operating losses				350			282			243			577			334
Operating leases				334			345			379			363			352
Contract services				349			325			325			313			283
Outside data processing				236			220			222			233			225
Travel and entertainment				171			179			195			144			193
Postage, stationery and supplies				134			145			156			150			153
Advertising and promotion				150			127			178			117			166
Telecommunications				91			91			96			101			94
Foreclosed assets				52			86			75			(17	)		66
Insurance				24			24			23			23			22
All other				621			581			561			677			499
Total			$	13,541			13,792			13,215			13,268			12,866

Wells Fargo & Company and Subsidiaries
CONSOLIDATED BALANCE SHEET
		Jun 30,				Dec 31,			%
(in millions, except shares)		2017				2016			Change
Assets
Cash and due from banks		$	20,248			20,729			(2	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments			264,706			266,038			(1	)
Trading assets			83,607			74,397			12
Investment securities:
Available-for-sale, at fair value			269,202			308,364			(13	)
Held-to-maturity, at cost			140,392			99,583			41
Mortgages held for sale			24,807			26,309			(6	)
Loans held for sale			156			80			95
Loans			957,423			967,604			(1	)
Allowance for loan losses			(11,073	)		(11,419	)		(3	)
Net loans			946,350			956,185			(1	)
Mortgage servicing rights:
Measured at fair value			12,789			12,959			(1	)
Amortized			1,399			1,406			—
Premises and equipment, net			8,403			8,333			1
Goodwill			26,573			26,693			—
Derivative assets			13,273			14,498			(8	)
Other assets			118,966			114,541			4
Total assets		$	1,930,871			1,930,115			—
Liabilities
Noninterest-bearing deposits		$	372,766			375,967			(1	)
Interest-bearing deposits			933,064			930,112			—
Total deposits			1,305,830			1,306,079			—
Short-term borrowings			95,356			96,781			(1	)
Derivative liabilities			11,636			14,492			(20	)
Accrued expenses and other liabilities			73,035			57,189			28
Long-term debt			238,869			255,077			(6	)
Total liabilities			1,724,726			1,729,618			—
Equity
Wells Fargo stockholders’ equity:
Preferred stock			25,785			24,551			5
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			60,689			60,234			1
Retained earnings			139,524			133,075			5
Cumulative other comprehensive income (loss)			(2,110	)		(3,137	)		(33	)
Treasury stock – 515,041,424 shares and 465,702,148 shares			(25,675	)		(22,713	)		13
Unearned ESOP shares			(2,119	)		(1,565	)		35
Total Wells Fargo stockholders’ equity			205,230			199,581			3
Noncontrolling interests			915			916			—
Total equity			206,145			200,497			3
Total liabilities and equity		$	1,930,871			1,930,115			—

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED BALANCE SHEET
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Assets
Cash and due from banks		$	20,248			19,698			20,729			19,287			20,407
Federal funds sold, securities purchased under resale agreements and other short-term investments			264,706			308,747			266,038			298,325			295,521
Trading assets			83,607			80,326			74,397			81,094			71,556
Investment securities:
Available-for-sale, at fair value			269,202			299,530			308,364			291,591			253,006
Held-to-maturity, at cost			140,392			108,030			99,583			99,241			100,420
Mortgages held for sale			24,807			17,822			26,309			27,423			23,930
Loans held for sale			156			253			80			183			220
Loans			957,423			958,405			967,604			961,326			957,157
Allowance for loan losses			(11,073	)		(11,168	)		(11,419	)		(11,583	)		(11,664	)
Net loans			946,350			947,237			956,185			949,743			945,493
Mortgage servicing rights:
Measured at fair value			12,789			13,208			12,959			10,415			10,396
Amortized			1,399			1,402			1,406			1,373			1,353
Premises and equipment, net			8,403			8,320			8,333			8,322			8,289
Goodwill			26,573			26,666			26,693			26,688			26,963
Derivative assets			13,273			12,564			14,498			18,736			20,999
Other assets			118,966			107,761			114,541			109,703			110,682
Total assets		$	1,930,871			1,951,564			1,930,115			1,942,124			1,889,235
Liabilities
Noninterest-bearing deposits		$	372,766			365,780			375,967			376,136			361,934
Interest-bearing deposits			933,064			959,664			930,112			899,758			883,539
Total deposits			1,305,830			1,325,444			1,306,079			1,275,894			1,245,473
Short-term borrowings			95,356			94,871			96,781			124,668			120,258
Derivative liabilities			11,636			12,461			14,492			13,603			15,483
Accrued expenses and other liabilities			73,035			59,831			57,189			69,166			61,433
Long-term debt			238,869			256,468			255,077			254,835			243,927
Total liabilities			1,724,726			1,749,075			1,729,618			1,738,166			1,686,574
Equity
Wells Fargo stockholders’ equity:
Preferred stock			25,785			25,501			24,551			24,594			24,830
Common stock			9,136			9,136			9,136			9,136			9,136
Additional paid-in capital			60,689			60,585			60,234			60,685			60,691
Retained earnings			139,524			136,032			133,075			130,288			127,076
Cumulative other comprehensive income (loss)			(2,110	)		(3,178	)		(3,137	)		2,184			2,948
Treasury stock			(25,675	)		(24,030	)		(22,713	)		(22,247	)		(21,068	)
Unearned ESOP shares			(2,119	)		(2,546	)		(1,565	)		(1,612	)		(1,868	)
Total Wells Fargo stockholders’ equity			205,230			201,500			199,581			203,028			201,745
Noncontrolling interests			915			989			916			930			916
Total equity			206,145			202,489			200,497			203,958			202,661
Total liabilities and equity		$	1,930,871			1,951,564			1,930,115			1,942,124			1,889,235

Wells Fargo & Company and Subsidiaries
FIVE QUARTER INVESTMENT SECURITIES
		Jun 30,			Mar 31,		Dec 31,		Sep 30,		Jun 30,
(in millions)		2017			2017		2016		2016		2016
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		$	17,896		24,625		25,819		26,376		27,939
Securities of U.S. states and political subdivisions			52,013		52,061		51,101		55,366		54,024
Mortgage-backed securities:
Federal agencies			135,938		156,966		161,230		135,692		95,868
Residential and commercial			12,772		14,233		16,318		18,387		19,938
Total mortgage-backed securities			148,710		171,199		177,548		154,079		115,806
Other debt securities			49,555		50,520		52,685		54,537		53,935
Total available-for-sale debt securities			268,174		298,405		307,153		290,358		251,704
Marketable equity securities			1,028		1,125		1,211		1,233		1,302
Total available-for-sale securities			269,202		299,530		308,364		291,591		253,006
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies			44,704		44,697		44,690		44,682		44,675
Securities of U.S. states and political subdivisions			6,325		6,331		6,336		2,994		2,181
Federal agency and other mortgage-backed securities (1)			87,525		53,778		45,161		47,721		49,594
Other debt securities			1,838		3,224		3,396		3,844		3,970
Total held-to-maturity debt securities			140,392		108,030		99,583		99,241		100,420
Total investment securities		$	409,594		407,560		407,947		390,832		353,426
(1) Predominantly consists of federal agency mortgage-backed securities.
FIVE QUARTER LOANS
		Jun 30,			Mar 31,		Dec 31,		Sep 30,		Jun 30,
(in millions)		2017			2017		2016		2016		2016
Commercial:
Commercial and industrial		$	331,113		329,252		330,840		324,020		323,858
Real estate mortgage			130,277		131,532		132,491		130,223		128,320
Real estate construction			25,337		25,064		23,916		23,340		23,387
Lease financing			19,174		19,156		19,289		18,871		18,973
Total commercial			505,901		505,004		506,536		496,454		494,538
Consumer:
Real estate 1-4 family first mortgage			276,566		274,633		275,579		278,689		277,162
Real estate 1-4 family junior lien mortgage			42,747		44,333		46,237		48,105		49,772
Credit card			35,305		34,742		36,700		34,992		34,137
Automobile			57,958		60,408		62,286		62,873		61,939
Other revolving credit and installment			38,946		39,285		40,266		40,213		39,609
Total consumer			451,522		453,401		461,068		464,872		462,619
Total loans (1)		$	957,423		958,405		967,604		961,326		957,157
(1) Includes $14.3 billion, $15.7 billion, $16.7 billion, $17.7 billion, and $19.3 billion of purchased credit-impaired (PCI) loans at June 30, and March 31, 2017, and December 31, September 30, and June 30, 2016, respectively.
Our foreign loans are reported by respective class of financing receivable in the table above. Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower's primary address is outside of the United States. The following table presents total commercial foreign loans outstanding by class of financing receivable.
		Jun 30,			Mar 31		Dec 31,		Sep 30,		Jun 30,
(in millions)		2017			2017		2016		2016		2016
Commercial foreign loans:
Commercial and industrial		$	57,825		56,987		55,396		51,515		50,515
Real estate mortgage			8,359		8,206		8,541		8,466		8,467
Real estate construction			585		471		375		310		246
Lease financing			1,092		986		972		958		987
Total commercial foreign loans		$	67,861		66,650		65,284		61,249		60,215

Wells Fargo & Company and Subsidiaries
FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Nonaccrual loans:
Commercial:
Commercial and industrial		$	2,632			2,898			3,216			3,331			3,464
Real estate mortgage			630			672			685			780			872
Real estate construction			34			40			43			59			59
Lease financing			89			96			115			92			112
Total commercial			3,385			3,706			4,059			4,262			4,507
Consumer:
Real estate 1-4 family first mortgage			4,413			4,743			4,962			5,310			5,970
Real estate 1-4 family junior lien mortgage			1,095			1,153			1,206			1,259			1,330
Automobile			104			101			106			108			111
Other revolving credit and installment			59			56			51			47			45
Total consumer			5,671			6,053			6,325			6,724			7,456
Total nonaccrual loans (1)(2)(3)		$	9,056			9,759			10,384			10,986			11,963
As a percentage of total loans			0.95	%		1.02			1.07			1.14			1.25
Foreclosed assets:
Government insured/guaranteed		$	149			179			197			282			321
Non-government insured/guaranteed			632			726			781			738			796
Total foreclosed assets			781			905			978			1,020			1,117
Total nonperforming assets		$	9,837			10,664			11,362			12,006			13,080
As a percentage of total loans			1.03	%		1.11			1.17			1.25			1.37
(1) Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.
(2) Excludes PCI loans because they continue to earn interest income from accretable yield, independent of performance in accordance with their contractual terms.
(3) Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans largely guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed. All remaining student loans guaranteed under the FFELP were sold as of March 31, 2017.

Wells Fargo & Company and Subsidiaries
LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Total (excluding PCI)(1):		$	9,716			10,525			11,858			12,068			12,385
Less: FHA insured/guaranteed by the VA (2)(3)			8,873			9,585			10,883			11,198			11,577
Less: Student loans guaranteed under the FFELP (4)			—			—			3			17			20
Total, not government insured/guaranteed		$	843			940			972			853			788
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial		$	42			88			28			47			36
Real estate mortgage			2			11			36			4			22
Real estate construction			10			3			—			—			—
Total commercial			54			102			64			51			58
Consumer:
Real estate 1-4 family first mortgage (3)			145			149			175			171			169
Real estate 1-4 family junior lien mortgage (3)			44			42			56			54			52
Credit card			411			453			452			392			348
Automobile			91			79			112			81			64
Other revolving credit and installment			98			115			113			104			97
Total consumer			789			838			908			802			730
Total, not government insured/guaranteed		$	843			940			972			853			788
(1) PCI loans totaled $1.5 billion, $1.8 billion, $2.0 billion, $2.2 billion and $2.4 billion, at June 30 and March 31, 2017 and December 31, September 30, and June 30, 2016, respectively.
(2) Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
(3) Includes mortgages held for sale 90 days or more past due and still accruing.
(4) Represents loans whose repayments are largely guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP. All remaining student loans guaranteed under the FFELP were sold as of March 31, 2017.

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

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

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

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

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

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

		Quarter					Six months
		ended					ended
		June 30,					June 30,
(in millions)		2017					2017				2009-2016
Balance, beginning of period		$	10,315				11,216				10,447
Change in accretable yield due to acquisitions			—				2				159
Accretion into interest income (1)			(374	)			(731	)			(15,577	)
Accretion into noninterest income due to sales (2)			(309	)			(334	)			(467	)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (3)			—				406				10,955
Changes in expected cash flows that do not affect nonaccretable difference (4)			(263	)			(1,190	)			5,699
Balance, end of period		$	9,369				9,369				11,216
(1) Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2) Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3) At June 30, 2017, our carrying value for PCI loans totaled $14.3 billion and the remainder of nonaccretable difference established in purchase accounting totaled $649 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)
		June 30, 2017
		PCI loans																		All other loans
																Ratio of									Ratio of
		Adjusted														carrying									carrying
		unpaid					Current									value to									value to
		principal					LTV				Carrying					current				Carrying					current
(in millions)		balance (2)					ratio (3)				value (4)					value (5)				value (4)					value (5)
California		$	12,263				63	%			$	9,511				48	%			$	7,077				45	%
Florida			1,540				70					1,146				51					1,502				56
New Jersey			609				77					447				56					995				63
New York			458				70					360				51					497				60
Texas			141				49					108				37					598				38
Other states			3,057				70					2,308				52					4,147				57
Total Pick-a-Pay loans		$	18,068				65				$	13,880				49				$	14,816				51
(1) The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2017.
(2) Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.
(3) The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.
(4) Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.
(5) The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

Wells Fargo & Company and Subsidiaries
CHANGES IN ALLOWANCE FOR CREDIT LOSSES
		Quarter ended June 30,							Six months ended June 30,
(in millions)			2017			2016			2017			2016
Balance, beginning of period		$	12,287			12,668			12,540			12,512
Provision for credit losses			555			1,074			1,160			2,160
Interest income on certain impaired loans (1)			(46	)		(51	)		(94	)		(99	)
Loan charge-offs:
Commercial:
Commercial and industrial			(161	)		(437	)		(414	)		(786	)
Real estate mortgage			(8	)		(3	)		(13	)		(6	)
Real estate construction			—			(1	)		—			(1	)
Lease financing			(13	)		(17	)		(20	)		(21	)
Total commercial			(182	)		(458	)		(447	)		(814	)
Consumer:
Real estate 1-4 family first mortgage			(55	)		(123	)		(124	)		(260	)
Real estate 1-4 family junior lien mortgage			(62	)		(133	)		(155	)		(266	)
Credit card			(379	)		(320	)		(746	)		(634	)
Automobile			(212	)		(176	)		(467	)		(387	)
Other revolving credit and installment			(185	)		(163	)		(374	)		(338	)
Total consumer			(893	)		(915	)		(1,866	)		(1,885	)
Total loan charge-offs			(1,075	)		(1,373	)		(2,313	)		(2,699	)
Loan recoveries:
Commercial:
Commercial and industrial			83			69			165			145
Real estate mortgage			14			23			44			55
Real estate construction			4			4			12			12
Lease financing			6			5			8			8
Total commercial			107			101			229			220
Consumer:
Real estate 1-4 family first mortgage			71			109			133			198
Real estate 1-4 family junior lien mortgage			66			71			136			130
Credit card			59			50			117			102
Automobile			86			86			174			170
Other revolving credit and installment			31			32			64			69
Total consumer			313			348			624			669
Total loan recoveries			420			449			853			889
Net loan charge-offs			(655	)		(924	)		(1,460	)		(1,810	)
Other			5			(18	)		—			(14	)
Balance, end of period		$	12,146			12,749			12,146			12,749
Components:
Allowance for loan losses		$	11,073			11,664			11,073			11,664
Allowance for unfunded credit commitments			1,073			1,085			1,073			1,085
Allowance for credit losses		$	12,146			12,749			12,146			12,749
Net loan charge-offs (annualized) as a percentage of average total loans			0.27	%		0.39			0.31			0.39
Allowance for loan losses as a percentage of total loans			1.16			1.22			1.16			1.22
Allowance for credit losses as a percentage of total loans			1.27			1.33			1.27			1.33
(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
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Balance, beginning of quarter		$	12,287			12,540			12,694			12,749			12,668
Provision for credit losses			555			605			805			805			1,074
Interest income on certain impaired loans (1)			(46	)		(48	)		(52	)		(54	)		(51	)
Loan charge-offs:
Commercial:
Commercial and industrial			(161	)		(253	)		(309	)		(324	)		(437	)
Real estate mortgage			(8	)		(5	)		(14	)		(7	)		(3	)
Real estate construction			—			—			—			—			(1	)
Lease financing			(13	)		(7	)		(16	)		(4	)		(17	)
Total commercial			(182	)		(265	)		(339	)		(335	)		(458	)
Consumer:
Real estate 1-4 family first mortgage			(55	)		(69	)		(86	)		(106	)		(123	)
Real estate 1-4 family junior lien mortgage			(62	)		(93	)		(110	)		(119	)		(133	)
Credit card			(379	)		(367	)		(329	)		(296	)		(320	)
Automobile			(212	)		(255	)		(243	)		(215	)		(176	)
Other revolving credit and installment			(185	)		(189	)		(200	)		(170	)		(163	)
Total consumer			(893	)		(973	)		(968	)		(906	)		(915	)
Total loan charge-offs			(1,075	)		(1,238	)		(1,307	)		(1,241	)		(1,373	)
Loan recoveries:
Commercial:
Commercial and industrial			83			82			53			65			69
Real estate mortgage			14			30			26			35			23
Real estate construction			4			8			8			18			4
Lease financing			6			2			1			2			5
Total commercial			107			122			88			120			101
Consumer:
Real estate 1-4 family first mortgage			71			62			89			86			109
Real estate 1-4 family junior lien mortgage			66			70			66			70			71
Credit card			59			58			54			51			50
Automobile			86			88			77			78			86
Other revolving credit and installment			31			33			28			31			32
Total consumer			313			311			314			316			348
Total loan recoveries			420			433			402			436			449
Net loan charge-offs			(655	)		(805	)		(905	)		(805	)		(924	)
Other			5			(5	)		(2	)		(1	)		(18	)
Balance, end of quarter		$	12,146			12,287			12,540			12,694			12,749
Components:
Allowance for loan losses		$	11,073			11,168			11,419			11,583			11,664
Allowance for unfunded credit commitments			1,073			1,119			1,121			1,111			1,085
Allowance for credit losses		$	12,146			12,287			12,540			12,694			12,749
Net loan charge-offs (annualized) as a percentage of average total loans			0.27	%		0.34			0.37			0.33			0.39
Allowance for loan losses as a percentage of:
Total loans			1.16			1.17			1.18			1.20			1.22
Nonaccrual loans			122			114			110			105			98
Nonaccrual loans and other nonperforming assets			113			105			101			96			89
Allowance for credit losses as a percentage of:
Total loans			1.27			1.28			1.30			1.32			1.33
Nonaccrual loans			134			126			121			116			107
Nonaccrual loans and other nonperforming assets			123			115			110			106			97
(1) Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Wells Fargo & Company and Subsidiaries
TANGIBLE COMMON EQUITY (1)
				Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions, except ratios)				2017				2017			2016			2016			2016
Tangible book value per common share (1):
Total equity				$	206,145			202,489			200,497			203,958			202,661
Adjustments:
Preferred stock					(25,785	)		(25,501	)		(24,551	)		(24,594	)		(24,830	)
Additional paid-in capital on ESOP preferred stock					(136	)		(157	)		(126	)		(130	)		(150	)
Unearned ESOP shares					2,119			2,546			1,565			1,612			1,868
Noncontrolling interests					(915	)		(989	)		(916	)		(930	)		(916	)
Total common stockholders' equity		(A)			181,428			178,388			176,469			179,916			178,633
Adjustments:
Goodwill					(26,573	)		(26,666	)		(26,693	)		(26,688	)		(26,963	)
Certain identifiable intangible assets (other than MSRs)					(2,147	)		(2,449	)		(2,723	)		(3,001	)		(3,356	)
Other assets (2)					(2,159	)		(2,121	)		(2,088	)		(2,230	)		(2,110	)
Applicable deferred taxes (3)					1,624			1,698			1,772			1,832			1,906
Tangible common equity		(B)		$	152,173			148,850			146,737			149,829			148,110
Common shares outstanding		(C)			4,966.8			4,996.7			5,016.1			5,023.9			5,048.5
Book value per common share		(A)/(C)		$	36.53			35.70			35.18			35.81			35.38
Tangible book value per common share		(B)/(C)			30.64			29.79			29.25			29.82			29.34

				Quarter ended																Six months ended
				Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,			Jun 30,			Jun 30,
(in millions, except ratios)				2017				2017			2016			2016			2016			2017			2016
Return on average tangible common equity (1):
Net income applicable to common stock		(A)		$	5,404			5,056			4,872			5,243			5,173			10,460			10,258
Average total equity					205,968			201,767			201,247			203,883			201,003			203,879			198,795
Adjustments:
Preferred stock					(25,849	)		(25,163	)		(24,579	)		(24,813	)		(24,091	)		(25,508	)		(24,027	)
Additional paid-in capital on ESOP preferred stock					(144	)		(146	)		(128	)		(148	)		(168	)		(145	)		(184	)
Unearned ESOP shares					2,366			2,198			1,596			1,850			2,094			2,282			2,302
Noncontrolling interests					(910	)		(957	)		(928	)		(927	)		(984	)		(934	)		(944	)
Average common stockholders’ equity		(B)			181,431			177,699			177,208			179,845			177,854			179,574			175,942
Adjustments:
Goodwill					(26,664	)		(26,673	)		(26,713	)		(26,979	)		(27,037	)		(26,668	)		(26,553	)
Certain identifiable intangible assets (other than MSRs)					(2,303	)		(2,588	)		(2,871	)		(3,145	)		(3,600	)		(2,445	)		(3,503	)
Other assets (2)					(2,160	)		(2,095	)		(2,175	)		(2,131	)		(2,096	)		(2,128	)		(2,081	)
Applicable deferred taxes (3)					1,648			1,722			1,785			1,855			1,934			1,685			1,974
Average tangible common equity		(C)		$	151,952			148,065			147,234			149,445			147,055			150,018			145,779
Return on average common stockholders' equity (ROE)		(A)/(B)			11.95	%		11.54			10.94			11.60			11.70			11.75			11.72
Return on average tangible common equity (ROTCE)		(A)/(C)			14.26			13.85			13.16			13.96			14.15			14.06			14.15
(1) Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling interests, and goodwill and certain identifiable intangible assets (including goodwill and intangible assets associated with certain of our nonmarketable equity investments but excluding mortgage servicing rights), net of applicable deferred taxes. The methodology of determining tangible common equity may differ among companies. Management believes that return on average tangible common equity and tangible book value per common share, which utilize tangible common equity, are useful financial measures because they enable investors and others to assess the Company's use of equity.
(2) Represents goodwill and other intangibles on nonmarketable equity investments, which are included in other assets.
(3) Applicable deferred taxes relate to goodwill and other intangible assets. They were determined by applying the combined federal statutory rate and composite state income tax rates to the difference between book and tax basis of the respective goodwill and intangible assets at period end.

Wells Fargo & Company and Subsidiaries
COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)
				Estimated
				Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in billions, except ratio)				2017				2017			2016			2016			2016
Total equity				$	206.1			202.5			200.5			204.0			202.7
Adjustments:
Preferred stock					(25.8	)		(25.5	)		(24.6	)		(24.6	)		(24.8	)
Additional paid-in capital on ESOP preferred stock					(0.1	)		(0.2	)		(0.1	)		(0.1	)		(0.2	)
Unearned ESOP shares					2.1			2.5			1.6			1.6			1.9
Noncontrolling interests					(0.9	)		(1.0	)		(0.9	)		(1.0	)		(1.0	)
Total common stockholders' equity					181.4			178.3			176.5			179.9			178.6
Adjustments:
Goodwill					(26.6	)		(26.7	)		(26.7	)		(26.7	)		(27.0	)
Certain identifiable intangible assets (other than MSRs)					(2.1	)		(2.4	)		(2.7	)		(3.0	)		(3.4	)
Other assets (2)					(2.2	)		(2.1	)		(2.1	)		(2.2	)		(2.0	)
Applicable deferred taxes (3)					1.6			1.7			1.8			1.8			1.9
Investment in certain subsidiaries and other					(0.2	)		(0.1	)		(0.4	)		(2.0	)		(2.5	)
Common Equity Tier 1 (Fully Phased-In) under Basel III		(A)			151.9			148.7			146.4			147.8			145.6
Total risk-weighted assets (RWAs) anticipated under Basel III (4)(5)		(B)		$	1,312.6			1,324.5			1,358.9			1,380.0			1,372.9
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (5)		(A)/(B)			11.6	%		11.2			10.8			10.7			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 June 30, 2017, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for March 31, 2017, and December 31, September 30 and June 30, 2016, was calculated under the Basel III Standardized Approach RWAs.
(5) The Company’s June 30, 2017, RWAs and capital ratio are preliminary estimates.

Wells Fargo & Company and Subsidiaries
OPERATING SEGMENT RESULTS (1)
(income/expense in millions,average balances in billions)		CommunityBanking								WholesaleBanking						Wealth andInvestmentManagement						Other (2)						ConsolidatedCompany
		2017					2016			2017			2016			2017			2016			2017			2016			2017			2016
Quarter ended Jun 30,
Net interest income (3)			$	7,548			7,379			4,278			3,919			1,127			932			(470	)		(497	)		12,483			11,733
Provision (reversal of provision) for credit losses				623			689			(65	)		385			7			2			(10	)		(2	)		555			1,074
Noninterest income				4,741			4,825			2,673			3,365			3,055			2,987			(783	)		(748	)		9,686			10,429
Noninterest expense				7,223			6,648			4,078			4,036			3,075			2,976			(835	)		(794	)		13,541			12,866
Income (loss) before income tax expense (benefit)				4,443			4,867			2,938			2,863			1,100			941			(408	)		(449	)		8,073			8,222
Income tax expense (benefit)				1,404			1,667			559			795			417			358			(155	)		(171	)		2,225			2,649
Net income (loss) before noncontrolling interests				3,039			3,200			2,379			2,068			683			583			(253	)		(278	)		5,848			5,573
Less: Net income (loss) from noncontrolling interests				46			21			(9	)		(5	)		1			(1	)		—			—			38			15
Net income (loss)			$	2,993			3,179			2,388			2,073			682			584			(253	)		(278	)		5,810			5,558
Average loans			$	477.2			485.7			464.9			451.4			71.7			66.7			(56.9	)		(53.0	)		956.9			950.8
Average assets				983.5			967.6			817.3			772.6			213.1			205.3			(86.8	)		(83.4	)		1,927.1			1,862.1
Average deposits				727.2			703.7			463.0			425.8			188.2			182.5			(77.2	)		(75.3	)		1,301.2			1,236.7
Six months ended June 30,
Net interest income (3)			$	15,175			14,847			8,426			7,667			2,201			1,875			(1,019	)		(989	)		24,783			23,400
Provision (reversal of provision) for credit losses				1,269			1,409			(108	)		748			3			(12	)		(4	)		15			1,160			2,160
Noninterest income				9,207			9,971			5,563			6,575			6,174			5,898			(1,556	)		(1,487	)		19,388			20,957
Noninterest expense				14,444			13,484			8,303			8,004			6,281			6,018			(1,695	)		(1,612	)		27,333			25,894
Income (loss) before income tax expense (benefit)				8,669			9,925			5,794			5,490			2,091			1,767			(876	)		(879	)		15,678			16,303
Income tax expense (benefit)				2,531			3,364			1,305			1,514			779			672			(333	)		(334	)		4,282			5,216
Net income (loss) before noncontrolling interests				6,138			6,561			4,489			3,976			1,312			1,095			(543	)		(545	)		11,396			11,087
Less: Net income (loss) from noncontrolling interests				136			86			(14	)		(18	)		7			(1	)		—			—			129			67
Net income (loss)			$	6,002			6,475			4,503			3,994			1,305			1,096			(543	)		(545	)		11,267			11,020
Average loans			$	479.9			485.0			465.6			440.6			71.2			65.4			(56.5	)		(52.0	)		960.2			939.0
Average assets				987.0			957.5			812.6			760.6			217.5			206.7			(88.1	)		(83.8	)		1,929.0			1,841.0
Average deposits				722.2			693.3			464.5			426.9			191.9			183.5			(78.4	)		(75.7	)		1,300.2			1,228.0
(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
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(income/expense in millions, average balances in billions)		2017				2017			2016			2016			2016
COMMUNITY BANKING
Net interest income (2)		$	7,548			7,627			7,556			7,430			7,379
Provision for credit losses			623			646			631			651			689
Noninterest income			4,741			4,466			4,105			4,957			4,825
Noninterest expense			7,223			7,221			6,985			6,953			6,648
Income before income tax expense			4,443			4,226			4,045			4,783			4,867
Income tax expense			1,404			1,127			1,272			1,546			1,667
Net income before noncontrolling interests			3,039			3,099			2,773			3,237			3,200
Less: Net income from noncontrolling interests			46			90			40			10			21
Segment net income		$	2,993			3,009			2,733			3,227			3,179
Average loans		$	477.2			482.7			488.1			489.2			485.7
Average assets			983.5			990.7			1,000.7			993.6			967.6
Average deposits			727.2			717.2			709.8			708.0			703.7
WHOLESALE BANKING
Net interest income (2)		$	4,278			4,148			4,323			4,062			3,919
Provision (reversal of provision) for credit losses			(65	)		(43	)		168			157			385
Noninterest income			2,673			2,890			2,830			3,085			3,365
Noninterest expense			4,078			4,225			4,002			4,120			4,036
Income before income tax expense			2,938			2,856			2,983			2,870			2,863
Income tax expense			559			746			795			827			795
Net income before noncontrolling interests			2,379			2,110			2,188			2,043			2,068
Less: Net loss from noncontrolling interests			(9	)		(5	)		(6	)		(4	)		(5	)
Segment net income		$	2,388			2,115			2,194			2,047			2,073
Average loans		$	464.9			466.3			461.5			454.3			451.4
Average assets			817.3			807.8			811.9			794.2			772.6
Average deposits			463.0			466.0			459.2			441.2			425.8
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)		$	1,127			1,074			1,061			977			932
Provision (reversal of provision) for credit losses			7			(4	)		3			4			2
Noninterest income			3,055			3,119			3,013			3,122			2,987
Noninterest expense			3,075			3,206			3,042			2,999			2,976
Income before income tax expense			1,100			991			1,029			1,096			941
Income tax expense			417			362			380			415			358
Net income before noncontrolling interests			683			629			649			681			583
Less: Net income (loss) from noncontrolling interests			1			6			(4	)		4			(1	)
Segment net income		$	682			623			653			677			584
Average loans		$	71.7			70.7			70.0			68.4			66.7
Average assets			213.1			221.9			220.4			212.1			205.3
Average deposits			188.2			195.6			194.9			189.2			182.5
OTHER (3)
Net interest income (2)		$	(470	)		(549	)		(538	)		(517	)		(497	)
Provision (reversal of provision) for credit losses			(10	)		6			3			(7	)		(2	)
Noninterest income			(783	)		(773	)		(768	)		(788	)		(748	)
Noninterest expense			(835	)		(860	)		(814	)		(804	)		(794	)
Loss before income tax benefit			(408	)		(468	)		(495	)		(494	)		(449	)
Income tax benefit			(155	)		(178	)		(189	)		(187	)		(171	)
Net loss before noncontrolling interests			(253	)		(290	)		(306	)		(307	)		(278	)
Less: Net income from noncontrolling interests			—			—			—			—			—
Other net loss		$	(253	)		(290	)		(306	)		(307	)		(278	)
Average loans		$	(56.9	)		(56.1	)		(55.5	)		(54.4	)		(53.0	)
Average assets			(86.8	)		(89.4	)		(88.7	)		(85.3	)		(83.4	)
Average deposits			(77.2	)		(79.6	)		(79.7	)		(76.9	)		(75.3	)
CONSOLIDATED COMPANY
Net interest income (2)		$	12,483			12,300			12,402			11,952			11,733
Provision for credit losses			555			605			805			805			1,074
Noninterest income			9,686			9,702			9,180			10,376			10,429
Noninterest expense			13,541			13,792			13,215			13,268			12,866
Income before income tax expense			8,073			7,605			7,562			8,255			8,222
Income tax expense			2,225			2,057			2,258			2,601			2,649
Net income before noncontrolling interests			5,848			5,548			5,304			5,654			5,573
Less: Net income from noncontrolling interests			38			91			30			10			15
Wells Fargo net income		$	5,810			5,457			5,274			5,644			5,558
Average loans		$	956.9			963.6			964.1			957.5			950.8
Average assets			1,927.1			1,931.0			1,944.3			1,914.6			1,862.1
Average deposits			1,301.2			1,299.2			1,284.2			1,261.5			1,236.7
(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
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
MSRs measured using the fair value method:
Fair value, beginning of quarter		$	13,208			12,959			10,415			10,396			11,333
Servicing from securitizations or asset transfers (1)			436			583			752			609			477
Sales and other (2)			(8	)		(47	)		(47	)		4			(22	)
Net additions			428			536			705			613			455
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (3)			(305	)		152			2,367			39			(779	)
Servicing and foreclosure costs (4)			(14	)		27			93			(10	)		(4	)
Prepayment estimates and other (5)			(41	)		(5	)		(106	)		(37	)		(41	)
Net changes in valuation model inputs or assumptions			(360	)		174			2,354			(8	)		(824	)
Changes due to collection/realization of expected cash flows over time			(487	)		(461	)		(515	)		(586	)		(568	)
Total changes in fair value			(847	)		(287	)		1,839			(594	)		(1,392	)
Fair value, end of quarter		$	12,789			13,208			12,959			10,415			10,396
(1) Includes impacts associated with exercising our right to repurchase delinquent loans from GNMA loan securitization pools.
(2) Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios.
(3) Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances)
(4) Includes costs to service and unreimbursed foreclosure costs.
(5) Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior and other external factors that occur independent of interest rate changes.
		Quarter ended
		Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)		2017				2017			2016			2016			2016
Amortized MSRs:
Balance, beginning of quarter		$	1,402			1,406			1,373			1,353			1,359
Purchases			26			18			34			18			24
Servicing from securitizations or asset transfers			37			45			66			69			38
Amortization			(66	)		(67	)		(67	)		(67	)		(68	)
Balance, end of quarter		$	1,399			1,402			1,406			1,373			1,353
Fair value of amortized MSRs:
Beginning of quarter		$	2,051			1,956			1,627			1,620			1,725
End of quarter			1,989			2,051			1,956			1,627			1,620

Wells Fargo & Company and Subsidiaries
FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)
				Quarter ended
				Jun 30,					Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)				2017					2017			2016			2016			2016
Servicing income, net:
Servicing fees (1)				$	882				882			738			878			842
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		(A)		(360		)			174			2,354			(8	)		(824	)
Changes due to collection/realization of expected cash flows over time				(487		)			(461	)		(515	)		(586	)		(568	)
Total changes in fair value of MSRs carried at fair value				(847		)			(287	)		1,839			(594	)		(1,392	)
Amortization				(66		)			(67	)		(67	)		(67	)		(68	)
Net derivative gains (losses) from economic hedges (3)		(B)		431					(72	)		(2,314	)		142			978
Total servicing income, net				$	400				456			196			359			360
Market-related valuation changes to MSRs, net of hedge results (2)(3)		(A)+(B)		$	71				102			40			134			154
(1) Includes contractually specified servicing fees, late charges and other ancillary revenues, net of unreimbursed direct servicing costs.
(2) Refer to the changes in fair value MSRs table on the previous page for more detail.
(3) Represents results from economic hedges used to hedge the risk of changes in fair value of MSRs.
				Jun 30,					Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in billions)				2017					2017			2016			2016			2016
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others				$	1,189				1,204			1,205			1,226			1,250
Owned loans serviced				343					335			347			352			349
Subserviced for others				4					4			8			4			4
Total residential servicing				1,536					1,543			1,560			1,582			1,603
Commercial mortgage servicing:
Serviced for others				475					474			479			477			478
Owned loans serviced				130					132			132			130			128
Subserviced for others				8					7			8			8			8
Total commercial servicing				613					613			619			615			614
Total managed servicing portfolio				$	2,149				2,156			2,179			2,197			2,217
Total serviced for others				$	1,664				1,678			1,684			1,703			1,728
Ratio of MSRs to related loans serviced for others				0.85		%			0.87			0.85			0.69			0.68
Weighted-average note rate (mortgage loans serviced for others)				4.23					4.23			4.26			4.28			4.32
(1) The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

Wells Fargo & Company and Subsidiaries
SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA
				Quarter ended
				Jun 30,					Mar 31,			Dec 31,			Sep 30,			Jun 30,
				2017					2017			2016			2016			2016
Net gains on mortgage loan origination/sales activities (in millions):
Residential		(A)		$	521				569			939			953			744
Commercial				81					101			90			167			72
Residential pipeline and unsold/repurchased loan management (1)				146					102			192			188			238
Total				$	748				772			1,221			1,308			1,054
Application data (in billions):
Wells Fargo first mortgage quarterly applications				$	83				59			75			100			95
Refinances as a percentage of applications				32		%			36			48			55			46
Wells Fargo first mortgage unclosed pipeline, at quarter end				$	34				28			30			50			47
Residential real estate originations:
Purchases as a percentage of originations				75		%			61			50			58			60
Refinances as a percentage of originations				25					39			50			42			40
Total				100		%			100			100			100			100
Wells Fargo first mortgage loans (in billions):
Retail				$	25				21			35			37			34
Correspondent				31					22			36			32			28
Other (2)				—					1			1			1			1
Total quarter-to-date				$	56				44			72			70			63
Held-for-sale		(B)		$	42				34			56			53			46
Held-for-investment				14					10			16			17			17
Total quarter-to-date				$	56				44			72			70			63
Total year-to-date				$	100				44			249			177			107
Production margin on residential held-for-sale mortgage originations		(A)/(B)		1.24		%			1.68			1.68			1.81			1.66
(1) Largely 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
				Jun 30,					Mar 31,			Dec 31,			Sep 30,			Jun 30,
(in millions)				2017					2017			2016			2016			2016
Balance, beginning of period				$	222				229			239			255			355
Provision for repurchase losses:
Loan sales				6					8			10			11			8
Change in estimate (1)				(45		)			(8	)		(7	)		(24	)		(89	)
Net additions (reductions)				(39		)			—			3			(13	)		(81	)
Losses				(5		)			(7	)		(13	)		(3	)		(19	)
Balance, end of period				$	178				222			229			239			255
(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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Source: Wells Fargo & Company