WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - January 14, 2014

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8-K - 8-K - WELLS FARGO & COMPANY/MN	d658780d8k.htm
EX-99.2 - EX-99.2 - WELLS FARGO & COMPANY/MN	d658780dex992.htm

Exhibit 99.1

LOGO

Tuesday, January 14, 2014

WELLS FARGO REPORTS RECORD FULL YEAR AND QUARTERLY NET INCOME

2013 Net Income of $21.9 Billion, Up 16% from 2012; EPS of $3.89

Q4 Net Income of $5.6 Billion, Up 10% YoY; EPS of $1.00

•

Continued strong financial results:

Full year 2013:

Net income of $21.9 billion, up 16 percent from 2012

Diluted earnings per share (EPS) of $3.89, up 16 percent

Revenue of $83.8 billion, compared with $86.1 billion

Return on average assets (ROA) of 1.51 percent, up 10 basis points

Return on equity (ROE) of 13.87 percent, up 92 basis points

Returned $11.4 billion to shareholders through dividends and share repurchases

Fourth quarter 2013:

Net income of $5.6 billion, up 10 percent from fourth quarter 2012

Diluted earnings per share of $1.00, up 10 percent

Revenue of $20.7 billion, compared with $21.9 billion

Noninterest expense of $12.1 billion, down $811 million

Efficiency ratio of 58.5 percent, improved by 30 basis points

ROA of 1.47 percent, up 1 basis point

ROE of 13.81 percent, up 46 basis points

•

Fourth quarter 2013 results included:

Strong loan and deposit growth:

Total loans of $825.8 billion, up $26.2 billion from fourth quarter 2012

Core loan portfolio up $39.9 billion¹

Total average core checking and savings deposits up $50.7 billion

Continued improvement in credit quality:

Net charge-offs of $963 million, down $1.1 billion from fourth quarter 2012

Net charge-off rate of 0.47 percent (annualized), compared with 1.05 percent

Nonperforming assets down $4.9 billion

$600 million reserve release² due to continued strong credit performance and improved economic conditions

¹ See table on page 5 for more information on core and non-strategic/liquidating loan portfolios.

² Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

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Strengthened capital levels:

Tier 1 common equity³ ratio under Basel I of 10.82 percent at December 31, 2013

Common Equity Tier 1 ratio under Basel III, using the advanced approach, of 9.78 percent⁴

Period end common stock share count declined 16.6 million from third quarter 2013 reflecting 30.0 million of purchases in the quarter

Purchased an additional estimated 11.3 million shares through a forward repurchase transaction expected to settle in first quarter 2014

Selected Financial Information



				Quarter ended

	Dec. 31,			Sept. 30,		Dec. 31,		Year ended Dec. 31,

	2013			2013		2012		2013		2012


Earnings
Diluted earnings per common share	$	1.00			0.99		0.91		3.89		3.36
Wells Fargo net income (in billions)		5.61			5.58		5.09		21.88		18.90
Return on assets (ROA)		1.47	%		1.53		1.46		1.51		1.41
Return on equity (ROE)		13.81			14.07		13.35		13.87		12.95

Asset Quality
Net charge-offs (annualized) as a % of avg. total loans		0.47			0.48		1.05		0.56		1.17
Allowance for credit losses as a % of total loans		1.81			1.93		2.19		1.81		2.19
Allowance for credit losses as a % of annualized net charge-offs		392			405		211		332		193

Other
Revenue (in billions)	$	20.7			20.5		21.9		83.8		86.1
Efficiency ratio		58.5	%		59.1		58.8		58.3		58.5
Average loans (in billions)	$	816.7			804.8		787.2		805.0		775.2
Average core deposits (in billions)		965.8			940.3		928.8		942.1		893.9
Net interest margin		3.26	%		3.38		3.56		3.39		3.76

SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $3.89 for 2013, up 16 percent from $3.36 in 2012. Full year net income was $21.9 billion, compared with $18.9 billion in 2012. For fourth quarter 2013, net income was $5.6 billion, or $1.00 per share, compared with $5.1 billion, or $0.91 per share, for fourth quarter 2012.

“Wells Fargo had another outstanding year in 2013, including strong growth in loans and deposits, and double-digit growth in earnings,” said Chairman and CEO John Stumpf. “In the five years since our merger with Wachovia, we have grown our businesses, invested in our franchise’s future and contributed to the U.S. economy’s recovery. Our 264,000 team members made it possible through their strong commitment to our consumer, small business and commercial customers, and the communities they serve around the world. Strong earnings power and capital levels, and an improving economic outlook are major reasons why we look ahead to 2014 with optimism.”

Chief Financial Officer Tim Sloan said, “The fourth quarter of 2013 was very strong for Wells Fargo, with record earnings, solid growth in loans, deposits and capital, and strong credit quality. We also grew both net

³ See tables on page 38 for more information on Tier 1 common equity.

⁴ Estimated based on management’s interpretation of final rules adopted July 2, 2013, by the Federal Reserve Board establishing a new comprehensive capital framework for U.S. banking organizations that would implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

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interest income and noninterest income during the quarter, despite a challenging rate environment and the expected decline in mortgage originations. Wells Fargo’s diversified model was again able to produce solid results for our shareholders.”

Revenue

Revenue in the fourth quarter was $20.7 billion, compared with $21.9 billion from a year ago. On a linked-quarter basis, revenue grew $187 million driven by increases in both net interest income and noninterest income. Revenue growth from the prior quarter was broad-based, with several businesses generating year-over-year double-digit growth, including retail brokerage, commercial real estate, credit card, insurance and asset-backed finance.

Net Interest Income

Net interest income in fourth quarter 2013 increased $55 million from the third quarter to $10.8 billion due to a larger securities portfolio, higher interest income on trading assets, lower deposit costs, and organic growth in commercial and consumer loans. These benefits were partially offset by lower interest income from mortgages held for sale. Income from variable sources, such as purchased credit-impaired (PCI) loan resolutions and loan fees included in interest income, was essentially flat on a linked quarter basis.

The Company’s net interest margin declined 12 basis points from the prior quarter to 3.26 percent resulting from two primary factors. First, actions taken in response to increased regulatory liquidity expectations – raising long-term debt and term deposits – increased cash and short-term investments. Although these actions had little impact on net interest income, they were dilutive to net interest margin, resulting in approximately 6 basis points of decline in the fourth quarter. Second, customer-driven deposit growth was very strong, which contributed to further growth in cash and short-term investments. While customer deposit growth was modestly accretive to net interest income, it diluted net interest margin an additional 6 basis points.

The net impact of balance sheet repricing and growth in the fourth quarter was neutral compared with third quarter as the benefits of securities purchases, lower deposit costs, and reduced debt yields offset the decline in mortgages held for sale income.

Noninterest Income

Noninterest income in the fourth quarter was $9.9 billion, down from $11.3 billion from a year ago, primarily due to lower mortgage banking revenue. On a linked-quarter basis, noninterest income grew $132 million driven by increases of $182 million in trust and investment fees and $72 million in market sensitive revenue.⁵ These increases were partially offset by a decline of $38 million in mortgage banking revenue as $205 million in higher servicing income was more than offset by lower production revenue.

⁵ Consists of net gains from trading activities, net gains (losses) on debt securities and net gains from equity investments.

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The increase in trust and investment fees was broad-based, reflecting higher assets under management in the Asset Management Group and in our Retail Brokerage business, in each case driven by strong market performance and higher net flows. In addition, increased investment banking revenues from our Wholesale Banking customers contributed to the higher level of trust and investment fees.

Mortgage banking noninterest income was $1.6 billion, down $38 million from third quarter 2013. During the fourth quarter, residential mortgage originations were $50 billion, down from $80 billion in third quarter 2013 while the gain on sale margin strengthened to 1.77 percent in the fourth quarter, compared with 1.42 percent in the third quarter. The Company provided $26 million for mortgage loan repurchase losses, compared with $28 million in third quarter 2013. As previously announced on December 30, 2013, the Company reached an agreement with the Federal National Mortgage Association (Fannie Mae), which was fully covered through previously established mortgage repurchase accruals, that resolved substantially all repurchase liabilities related to loans sold to Fannie Mae that were originated prior to January 1, 2009. Net mortgage servicing rights (MSRs) results were $266 million, compared with $26 million in third quarter 2013.

The Company had net unrealized securities gains of $3.9 billion at December 31, 2013, down from $5.8 billion at September 30, 2013, primarily driven by an increase in interest rates in the quarter.

Noninterest Expense

Noninterest expense of $12.1 billion decreased $811 million, or 6 percent, from fourth quarter 2012. On a linked-quarter basis, noninterest expense declined $17 million, as seasonally-higher costs for equipment (including software licenses) and outside professional services (including project spend on business investments and compliance and regulatory-related initiatives) were more than offset by lower salaries and mortgage-related incentive compensation. The efficiency ratio was 58.5 percent in fourth quarter 2013, compared with 59.1 percent in third quarter 2013. The Company expects to operate within its targeted efficiency ratio range of 55 to 59 percent in first quarter 2014.

Loans

Total loans were $825.8 billion at December 31, 2013, up $13.5 billion from September 30, 2013, driven by growth in all categories except for junior lien mortgages – a portfolio the Company has intentionally been reducing. Core loan growth was $16.7 billion, as non-strategic/liquidating portfolios declined $3.3 billion in the quarter. Total average loans were $816.7 billion, up $11.9 billion from the prior quarter, driven by commercial and industrial, 1-4 family first mortgages and the full quarter benefit of portfolio acquisitions in the third quarter (CRE and foreign).

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	December 31, 2013							September 30, 2013

(in millions)	Core		Liquidating (1)			Total		Core		Liquidating (1)			Total

Commercial	$	378,743		2,013			380,756		369,703		2,342			372,045
Consumer		366,190		78,853			445,043		358,484		81,796			440,280

Total loans	$	744,933		80,866			825,799		728,187		84,138			812,325


Change from prior quarter:	$	16,746		(3,272	)		13,474		13,777		(3,426	)		10,351

(1)	See table on page 35 for additional information on non-strategic/liquidating loan portfolios. Management believes that the above information provides useful disclosure regarding the Company’s ongoing loan portfolios.

Deposits

Total average deposits for fourth quarter 2013 were $1.1 trillion, up 9 percent from a year ago and up 13 percent (annualized) from third quarter 2013, driven by strong commercial and consumer growth. The average deposit cost for fourth quarter 2013 improved to 11 basis points, compared with 12 basis points in the prior quarter and 16 basis points a year ago. Average core deposits were $965.8 billion, up 4 percent from a year ago and up 11 percent (annualized) from third quarter 2013. Average core checking and savings deposits were $922.8 billion, up 6 percent from a year ago and up 13 percent (annualized) from third quarter 2013. Average mortgage escrow deposits decreased to $28.2 billion, compared with $42.2 billion a year ago and $34.7 billion in third quarter 2013.

Capital

Capital continued to strengthen in the fourth quarter, with Tier 1 common equity of $123.5 billion under Basel I, or 10.82 percent of risk-weighted assets, compared with 10.12 percent in fourth quarter 2012 and 10.60 percent in third quarter 2013. The Common Equity Tier 1 ratio under Basel III, using the advanced approach, was 9.78 percent.⁶ In fourth quarter 2013, the Company purchased 30.0 million shares of its common stock and an additional estimated 11.3 million shares through a forward repurchase transaction expected to settle in first quarter 2014. The Company also paid a quarterly common stock dividend of $0.30 per share, up from $0.22 a year ago.



	Dec. 31,			Sept. 30,		Dec. 31,
(as a percent of total risk-weighted assets)	2013			2013		2012

Ratios under Basel I (1):

Tier 1 common equity (2)		10.82	%		10.60		10.12
Tier 1 capital		12.33			12.11		11.75
Tier 1 leverage		9.60			9.76		9.47

(1)	December 31, 2013, ratios are preliminary.

(2)	See table on page 38 for more information on Tier 1 common equity.

Credit Quality

“Credit performance continued to be strong in the fourth quarter and we were pleased with the quality of the loans we originated. Losses remained at historical lows and non-performing assets decreased

⁶ Estimated based on management’s interpretation of final rules adopted July 2, 2013, by the Federal Reserve Board establishing a new comprehensive capital framework for U.S. banking organizations that would implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

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significantly,” said Chief Risk Officer Mike Loughlin. “Credit losses were $963 million in fourth quarter 2013, compared with $2.1 billion in fourth quarter 2012, a 54 percent year-over-year improvement. The quarterly loss rate was 0.47 percent with commercial losses of only 0.06 percent and consumer losses of 0.82 percent. The consumer loss levels continued to benefit from the improvement in the residential real estate market and the economy. Nonperforming assets declined by $1.1 billion, or 21 percent (annualized) from last quarter. We released $600 million from the allowance for credit losses in the fourth quarter, reflecting improvements in credit performance. Given these favorable conditions, we continue to expect future reserve releases absent a significant deterioration in the economic environment.”

Net Loan Charge-offs

Net loan charge-offs improved to $963 million in fourth quarter 2013, or 0.47 percent of average loans, compared with $975 million in third quarter 2013, or 0.48 percent of average loans.

Net Loan Charge-Offs



	Quarter ended

	Dec. 31, 2013					Sept. 30, 2013					June 30, 2013

($ in millions)	Net loan charge- offs		As a % of average loans (1)			Net loan charge- offs		As a % of average loans (1)			Net loan charge- offs		As a % of average loans (1)


Commercial:
Commercial and industrial	$	107		0.22	%	$	58		0.12	%	$	77		0.17	%
Real estate mortgage		(41)		(0.15)			(20)		(0.08)			(5)		(0.02)
Real estate construction		(13)		(0.32)			(17)		(0.41)			(45)		(1.10)
Lease financing		-		-			-		-			18		0.57
Foreign		-		-			(2)		(0.02)			(1)		(0.01)

Total commercial		53		0.06			19		0.02			44		0.05


Consumer:
Real estate 1-4 family first mortgage		195		0.30			242		0.38			328		0.52
Real estate 1-4 family junior lien mortgage		226		1.34			275		1.58			359		2.02
Credit card		220		3.38			207		3.28			234		3.90
Automobile		108		0.85			78		0.63			42		0.35
Other revolving credit and installment		161		1.50			154		1.46			145		1.38

Total consumer		910		0.82			956		0.86			1,108		1.01

Total	$	963		0.47	%	$	975		0.48	%	$	1,152		0.58	%

(1)	Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 32 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

Nonperforming Assets

Nonperforming assets decreased by $1.1 billion from the prior quarter to $19.6 billion. Nonaccrual loans decreased $1.2 billion from the prior quarter to $15.7 billion. Foreclosed assets were $3.9 billion, up from $3.8 billion in third quarter 2013, reflecting an increase in foreclosed assets insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA). This increase was primarily driven by enhancements to loan modification programs, slowing foreclosures in prior quarters.

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Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	Dec. 31, 2013					Sept. 30, 2013					June 30, 2013

			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	$	738		0.37	%	$	809		0.42	%	$	1,022		0.54	%
Real estate mortgage		2,252		2.10			2,496		2.36			2,708		2.59
Real estate construction		416		2.48			517		3.15			665		4.04
Lease financing		29		0.24			17		0.15			20		0.17
Foreign		40		0.08			47		0.10			40		0.10

Total commercial		3,475		0.91			3,886		1.04			4,455		1.23


Consumer:
Real estate 1-4 family first mortgage		9,799		3.79			10,450		4.10			10,705		4.23
Real estate 1-4 family junior lien mortgage		2,188		3.32			2,333		3.45			2,522		3.60
Automobile		173		0.34			188		0.38			200		0.41
Other revolving credit and installment		33		0.08			36		0.08			33		0.08

Total consumer		12,193		2.74			13,007		2.95			13,460		3.07

Total nonaccrual loans		15,668		1.90			16,893		2.08			17,915		2.23


Foreclosed assets:
Government insured/guaranteed		2,093					1,781					1,026
Non-government insured/guaranteed		1,844					2,021					2,114

Total foreclosed assets		3,937					3,802					3,140

Total nonperforming assets	$	19,605		2.37	%	$	20,695		2.55	%	$	21,055		2.63	%


Change from prior quarter:
Total nonaccrual loans	$	(1,225)				$	(1,022)				$	(1,611)
Total nonperforming assets		(1,090)					(360)					(1,821)

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $1.0 billion at December 31, 2013, compared with $1.1 billion at September 30, 2013. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $22.2 billion at December 31, 2013, up from $21.1 billion at September 30, 2013.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $15.0 billion at December 31, 2013, down from $15.6 billion at September 30, 2013. The allowance coverage to total loans was 1.81 percent, compared with 1.93 percent in third quarter 2013. The allowance covered 3.9 times annualized fourth quarter net charge-offs, compared with 4.0 times in the prior quarter. The allowance coverage to nonaccrual loans was 96 percent at December 31, 2013 compared with 93 percent at September 30, 2013. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2013,” said Loughlin.

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Business Segment Performance

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



					Quarter ended

	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2013		2013		2012

Community Banking	$	3,222		3,341		2,869
Wholesale Banking		2,111		1,973		2,032
Wealth, Brokerage and Retirement		491		450		351

More financial information about the business segments is on pages 39 and 40.

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

	Dec. 31,		Sept. 30,		Dec. 31,
(in millions)	2013		2013		2012

Total revenue	$	12,254		12,244		13,782
Provision for credit losses		490		240		1,757
Noninterest expense		7,073		7,060		8,033
Segment net income		3,222		3,341		2,869

(in billions)
Average loans		502.5		497.7		493.1
Average assets		883.6		836.6		794.2
Average core deposits		620.2		618.2		608.9

Community Banking reported net income of $3.2 billion, down $119 million, or 4 percent, from third quarter 2013. Revenue of $12.3 billion increased $10 million, or 0.1 percent, from the prior quarter primarily due to higher gains on equity investments. The provision for credit losses increased $250 million from the prior quarter as the $26 million improvement in net charge-offs was more than offset by a lower reserve release.

Net income was up $353 million, or 12 percent, from fourth quarter 2012. Revenue decreased $1.5 billion, or 11 percent, from a year ago due to lower mortgage banking revenue, partially offset by higher net interest income, trust and investment fees, and revenue from debit and credit card volumes. Noninterest expense declined $960 million, or 12 percent, from a year ago largely due to costs in 2012 associated with the OCC’s Independent Foreclosure Review settlement, and a $250 million contribution to the Wells Fargo Foundation. The provision for credit losses decreased $1.3 billion from a year ago driven by a $953 million decline in net charge-offs and a $314 million increase in the reserve release.

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Regional Banking

•

Retail banking

Retail Bank household cross-sell ratio of 6.16 products per household, up from 6.05 year-over-year⁷

Primary consumer checking customers⁸ up a net 4.7 percent year-over-year⁷

Customers rated their experience with Wells Fargo stores at an all-time high based on fourth quarter survey results

•

Small Business/Business Banking

Primary business checking customers⁸ up a net 4.7 percent year-over-year⁷

$18.9 billion in new loan commitments to small business customers (primarily with annual revenues less than $20 million) in 2013, up 18 percent from 2012

For fifth consecutive year, Wells Fargo was nation’s #1 SBA 7(a) small business lender in dollars, and for first three months of new federal fiscal year was #1 lender in dollars and units⁹

•

Online and Mobile Banking

22.9 million active online customers, up 7 percent year-over-year⁷

11.9 million active mobile customers, up 27 percent year-over-year⁷

Consumer Lending Group

•

Home Lending

Originations of $50 billion, compared with $80 billion in prior quarter

Applications of $65 billion, compared with $87 billion in prior quarter

Application pipeline of $25 billion at quarter end, compared with $35 billion at September 30, 2013

Residential mortgage servicing portfolio of $1.8 trillion; ratio of MSRs to related loans serviced for others was 88 basis points, compared with 82 basis points in prior quarter

Average note rate on the servicing portfolio was 4.52 percent, compared with 4.54 percent in prior quarter

•

Consumer Credit

Credit card penetration in retail banking households rose to 37.0 percent⁷, up from 33.1 percent in prior year

Auto originations of $6.8 billion, down 2 percent from prior quarter and up 26 percent from prior year

⁷ Data as of November 2013, comparisons with November 2012.

⁸ Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.

⁹ U.S. SBA data, federal fiscal year 2009-2013 (year ending September) and partial fiscal year 2014.

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Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products and business segments include 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, Asset Backed Finance, and Asset Management.

Selected Financial Information



				Quarter ended

(in millions)	Dec. 31, 2013			Sept. 30, 2013			Dec. 31, 2012

Total revenue	$	5,972			5,871			5,993
Provision (reversal of provision) for credit losses		(125	)		(144	)		60
Noninterest expense		3,020			3,084			3,007
Segment net income		2,111			1,973			2,032

(in billions)
Average loans		298.0			290.4			279.2
Average assets		512.3			500.7			489.7
Average core deposits		258.5			235.3			240.7

Wholesale Banking reported net income of $2.1 billion, up $138 million, or 7 percent, from third quarter 2013. Revenue of $6.0 billion increased $101 million, or 2 percent, from the prior quarter on strong growth across many areas including asset management, commercial real estate, corporate banking and investment banking as well as seasonally higher crop insurance revenue. Noninterest expense decreased $64 million, or 2 percent, from third quarter 2013, benefiting from lower FDIC expense, partially offset by higher variable personnel expense.

Net income was up $79 million, or 4 percent, from fourth quarter 2012. Revenue decreased $21 million, or 0.4 percent, from fourth quarter 2012 as business growth and strong loan and deposit growth was more than offset by lower sales and trading, equity funds gains and other income. Noninterest expense increased $13 million from a year ago due to higher personnel expenses and support costs. The provision for credit losses decreased $185 million from a year ago due to a $152 million reduction in credit losses and $33 million of additional reserve release. The fourth quarter 2013 provision included an $83 million reserve release, compared with a $50 million release a year ago.

•

Seven percent average loan growth in fourth quarter 2013 compared with fourth quarter 2012. The growth came from nearly all portfolios, including asset-backed finance, commercial real estate, and international

•

Investment banking full year 2013 revenue from Wholesale Banking customers increased 22 percent from full year 2012

•

Investment banking full year 2013 market share of 5.6 percent up from 5.0 percent for full year 2012

•

Cross-sell of 7.1 products per relationship up from 7.0 in prior quarter

•

Full year 2013 treasury management revenue up 8 percent from full year 2012

•

Fourth quarter assets under management up $12 billion from prior quarter to $487 billion, reflecting net client inflows and increased market valuation

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Wealth, Brokerage and Retirement provides a full range of financial advisory services to clients using a planning approach to meet each client’s needs. Wealth Management provides affluent and high net worth clients with a complete range of wealth management solutions, including financial planning, private banking, credit, investment management and fiduciary services. Abbot Downing, a Wells Fargo business, provides comprehensive wealth management services to ultra high net worth families and individuals as well as endowments and foundations. Brokerage serves customers’ advisory, brokerage and financial needs as part of one of the largest full-service brokerage firms in the United States. Retirement is a national leader in providing institutional retirement and trust services (including 401(k) and pension plan record keeping) for businesses, retail retirement solutions for individuals, and reinsurance services for the life insurance industry.

Selected Financial Information



	Quarter ended

(in millions)	Dec. 31, 2013			Sept. 30, 2013			Dec. 31, 2012

Total revenue	$	3,438			3,307			3,094
Provision (reversal of provision) for credit losses		(11	)		(38	)		15
Noninterest expense		2,655			2,619			2,513
Segment net income		491			450			351

(in billions)
Average loans		48.4			46.7			43.3
Average assets		185.3			180.8			171.7
Average core deposits		153.9			150.6			143.4

Wealth, Brokerage and Retirement reported net income of $491 million, up $41 million, or 9 percent, from third quarter 2013. Revenue of $3.4 billion increased $131 million, or 4 percent, from the prior quarter primarily driven by higher asset-based fees, as well as increases in net interest income and brokerage transaction revenue. Noninterest expense was up 1 percent over the prior quarter as increased broker commissions and other incentives, as well as higher non-personnel expenses, were mostly offset by lower FDIC expense. The provision for credit losses increased $27 million from third quarter 2013 due to reduced reserve releases. The provision in fourth and third quarters 2013 included $11 million and $38 million of reserve releases, respectively.

Net income was up $140 million, or 40 percent, from fourth quarter 2012. Revenue increased $344 million, or 11 percent, from a year ago primarily driven by strong growth in asset-based fees, as well as higher net interest income and higher gains on deferred compensation plan investments (offset in compensation expense). Noninterest expense increased $142 million, or 6 percent, from a year ago due to higher broker commissions, increased non-personnel expenses and an increase in deferred compensation plan expense (offset in trading income), partially offset by lower FDIC expense. The provision for credit losses decreased $26 million from a year ago; the provision in fourth quarter 2012 included an $8 million reserve release.

Retail Brokerage

•

Client assets of $1.4 trillion, up 12 percent from prior year

•

Managed account assets increased $71 billion, or 23 percent, from prior year driven by strong market performance and net flows

•

Strong deposit growth, with average balances up 9 percent from prior year

•

Average loan balances increased 24 percent from prior year

- 12 -

Wealth Management

•

Client assets of $218 billion, up 7 percent from prior year

•

Average loan balances up 9 percent from prior year

Retirement

•

IRA assets of $341 billion, up 15 percent from prior year

•

Institutional Retirement plan assets of $298 billion, up 12 percent from prior year

WBR cross-sell ratio of 10.42 products per household, up from 10.27 a year ago

Conference Call

The Company will host a live conference call on Tuesday, January 14, at 7 a.m. PDT (10 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargobankna_011414.

A replay of the conference call will be available beginning at approximately noon PST (3 p.m. EST) on January 14 through Tuesday, January 21. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #99204348. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

- 13 -

Forward-Looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, we may make forward-looking statements in our other documents filed or furnished with the SEC, and our management may make forward-looking statements orally to analysts, investors, representatives of the media and others. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In particular, forward-looking statements include, but are not limited to, statements we make about: (i) the future operating or financial performance of the Company, including our outlook for future growth; (ii) our noninterest expense and efficiency ratio; (iii) future credit quality and performance, including our expectations regarding future loan losses and allowance releases; (iv) the appropriateness of the allowance for credit losses; (v) our expectations regarding net interest income and net interest margin; (vi) loan growth or the reduction or mitigation of risk in our loan portfolios; (vii) future capital levels 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, the sovereign debt crisis and economic difficulties in Europe, 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, including our obligations under the settlement with the Department of Justice and other federal and state government entities, 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;

- 14 -

•

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;

•

a recurrence of significant turbulence or 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 available-for-sale portfolio;

•

the effect of a fall in stock market prices on our investment banking business and our fee income from our brokerage, asset and wealth management businesses;

•

reputational damage from negative publicity, protests, fines, penalties and other negative consequences from regulatory violations and legal actions;

•

a failure in or breach of our operational or security systems or infrastructure, or those of our third party vendors or other service providers, including as a result of cyber attacks;

•

the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin;

•

fiscal and monetary policies of the Federal Reserve Board; and

•

the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012.

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, 2012, 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.

- 15 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.5 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS


	Pages

Summary Information
Summary Financial Data		17-18

Income
Consolidated Statement of Income		19
Consolidated Statement of Comprehensive Income		20
Condensed Consolidated Statement of Changes in Total Equity		20
Five Quarter Consolidated Statement of Income		21
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		22-23
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		24
Noninterest Income and Noninterest Expense		25-26

Balance Sheet
Consolidated Balance Sheet		27-28
Investment Securities		29

Loans
Loans		29
Nonperforming Assets		30
Loans 90 Days or More Past Due and Still Accruing		31
Purchased Credit-Impaired Loans		32-34
Pick-A-Pay Portfolio		35
Non-Strategic and Liquidating Loan Portfolios		35
Changes in Allowance for Credit Losses		36-37

Equity
Tier 1 Common Equity		38

Operating Segments
Operating Segment Results		39-40

Other
Mortgage Servicing and other related data		41-43

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA



	Quarter ended							% Change Dec. 31, 2013 from					Year ended

($ in millions, except per share amounts)	Dec. 31, 2013			Sept. 30, 2013		Dec. 31, 2012		Sept. 30, 2013			Dec. 31, 2012		Dec. 31, 2013		Dec. 31, 2012		% Change


For the Period
Wells Fargo net income	$	5,610			5,578		5,090		1	%		10	$	21,878		18,897		16	%
Wells Fargo net income applicable to common stock		5,369			5,317		4,857		1			11		20,889		17,999		16
Diluted earnings per common share		1.00			0.99		0.91		1			10		3.89		3.36		16
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.47	%		1.53		1.46		(4)			1		1.51		1.41		7
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.81			14.07		13.35		(2)			3		13.87		12.95		7
Efficiency ratio (1)		58.5			59.1		58.8		(1)			(1)		58.3		58.5		-
Total revenue	$	20,665			20,478		21,948		1			(6)	$	83,780		86,086		(3)
Pre-tax pre-provision profit (PTPP) (2)		8,580			8,376		9,052		2			(5)		34,938		35,688		(2)
Dividends declared per common share		0.30			0.30		0.22		-			36		1.15		0.88		31
Average common shares outstanding		5,270.3			5,295.3		5,272.4		-			-		5,287.3		5,287.6		-
Diluted average common shares outstanding		5,358.6			5,381.7		5,338.7		-			-		5,371.2		5,351.5		-
Average loans	$	816,669			804,779		787,210		1			4	$	804,992		775,224		4
Average assets		1,509,117			1,449,610		1,387,056		4			9		1,448,305		1,341,635		8
Average core deposits (3)		965,828			940,279		928,824		3			4		942,120		893,937		5
Average retail core deposits (4)		679,355			670,335		646,145		1			5		669,657		629,320		6
Net interest margin		3.26	%		3.38		3.56		(4)			(8)		3.39		3.76		(10)

At Period End
Investment securities	$	264,353			259,399		235,199		2			12	$	264,353		235,199		12
Loans		825,799			812,325		799,574		2			3		825,799		799,574		3
Allowance for loan losses		14,502			15,159		17,060		(4)			(15)		14,502		17,060		(15)
Goodwill		25,637			25,637		25,637		-			-		25,637		25,637		-
Assets		1,527,015			1,488,055		1,422,968		3			7		1,527,015		1,422,968		7
Core deposits (3)		980,063			947,805		945,749		3			4		980,063		945,749		4
Wells Fargo stockholders’ equity		170,142			167,165		157,554		2			8		170,142		157,554		8
Total equity		171,008			168,813		158,911		1			8		171,008		158,911		8
Capital ratios:
Total equity to assets		11.20	%		11.34		11.17		(1)			-		11.20		11.17		-
Risk-based capital (5):
Tier 1 capital		12.33			12.11		11.75		2			5		12.33		11.75		5
Total capital		15.44			15.09		14.63		2			6		15.44		14.63		6
Tier 1 leverage (5)		9.60			9.76		9.47		(2)			1		9.60		9.47		1
Tier 1 common equity (5)(6)		10.82			10.60		10.12		2			7		10.82		10.12		7
Common shares outstanding		5,257.2			5,273.7		5,266.3		-			-		5,257.2		5,266.3		-
Book value per common share	$	29.48			28.98		27.64		2			7	$	29.48		27.64		7
Common stock price:
High		45.64			44.79		36.34		2			26		45.64		36.60		25
Low		40.07			40.79		31.25		(2)			28		34.43		27.94		23
Period end		45.40			41.32		34.18		10			33		45.40		34.18		33
Team members (active, full-time equivalent)		264,900			270,600		269,200		(2)			(2)		264,900		269,200		(2)

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

(2)	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.

(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).

(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.

(5)	The December 31, 2013, ratios are preliminary.

(6)	See the “Five Quarter Tier 1 Common Equity Under Basel I” table for additional information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA



	Quarter ended

($ in millions, except per share amounts)	Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

For the Quarter
Wells Fargo net income	$	5,610			5,578		5,519		5,171		5,090
Wells Fargo net income applicable to common stock		5,369			5,317		5,272		4,931		4,857
Diluted earnings per common share		1.00			0.99		0.98		0.92		0.91
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.47	%		1.53		1.55		1.49		1.46
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.81			14.07		14.02		13.59		13.35
Efficiency ratio (1)		58.5			59.1		57.3		58.3		58.8
Total revenue	$	20,665			20,478		21,378		21,259		21,948
Pre-tax pre-provision profit (PTPP) (2)		8,580			8,376		9,123		8,859		9,052
Dividends declared per common share		0.30			0.30		0.30		0.25		0.22
Average common shares outstanding		5,270.3			5,295.3		5,304.7		5,279.0		5,272.4
Diluted average common shares outstanding		5,358.6			5,381.7		5,384.6		5,353.5		5,338.7
Average loans	$	816,669			804,779		800,241		798,074		787,210
Average assets		1,509,117			1,449,610		1,429,005		1,404,334		1,387,056
Average core deposits (3)		965,828			940,279		936,090		925,866		928,824
Average retail core deposits (4)		679,355			670,335		666,043		662,913		646,145
Net interest margin		3.26	%		3.38		3.46		3.48		3.56

At Quarter End
Investment securities	$	264,353			259,399		249,439		248,160		235,199
Loans		825,799			812,325		801,974		799,966		799,574
Allowance for loan losses		14,502			15,159		16,144		16,711		17,060
Goodwill		25,637			25,637		25,637		25,637		25,637
Assets		1,527,015			1,488,055		1,440,563		1,436,634		1,422,968
Core deposits (3)		980,063			947,805		941,158		939,934		945,749
Wells Fargo stockholders’ equity		170,142			167,165		162,421		162,086		157,554
Total equity		171,008			168,813		163,777		163,395		158,911
Capital ratios:
Total equity to assets		11.20	%		11.34		11.37		11.37		11.17
Risk-based capital (5):
Tier 1 capital		12.33			12.11		12.12		11.80		11.75
Total capital		15.44			15.09		15.03		14.76		14.63
Tier 1 leverage (5)		9.60			9.76		9.63		9.53		9.47
Tier 1 common equity (5)(6)		10.82			10.60		10.71		10.39		10.12
Common shares outstanding		5,257.2			5,273.7		5,302.2		5,288.8		5,266.3
Book value per common share	$	29.48			28.98		28.26		28.27		27.64
Common stock price:
High		45.64			44.79		41.74		38.20		36.34
Low		40.07			40.79		36.19		34.43		31.25
Period end		45.40			41.32		41.27		36.99		34.18
Team members (active, full-time equivalent)		264,900			270,600		274,300		274,300		269,200

(1)	The efficiency ratio is noninterest expense divided by total revenue (net interest income and noninterest income).

(2)	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.

(3)	Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain foreign deposits (Eurodollar sweep balances).

(4)	Retail core deposits are total core deposits excluding Wholesale Banking core deposits and retail mortgage escrow deposits.

(5)	The December 31, 2013, ratios are preliminary.

(6)	See the “Five Quarter Tier 1 Common Equity under Basel I” table for additional information.

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME



	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%

(in millions, except per share amounts)	2013		2012		Change			2013		2012		Change


Interest income
Trading assets	$	378		339		12	%	$	1,376		1,358		1	%
Investment securities		2,119		1,897		12			8,116		8,098		-
Mortgages held for sale		221		413		(46)			1,290		1,825		(29)
Loans held for sale		3		3		-			13		41		(68)
Loans		8,907		9,027		(1)			35,571		36,482		(2)
Other interest income		208		178		17			723		587		23

Total interest income		11,836		11,857		-			47,089		48,391		(3	)


Interest expense
Deposits		297		399		(26)			1,337		1,727		(23)
Short-term borrowings		14		24		(42)			60		79		(24)
Long-term debt		635		735		(14)			2,585		3,110		(17)
Other interest expense		87		56		55			307		245		25

Total interest expense		1,033		1,214		(15)			4,289		5,161		(17)


Net interest income		10,803		10,643		2			42,800		43,230		(1)
Provision for credit losses		363		1,831		(80)			2,309		7,217		(68)

Net interest income after provision for credit losses		10,440		8,812		18			40,491		36,013		12


Noninterest income
Service charges on deposit accounts		1,283		1,250		3			5,023		4,683		7
Trust and investment fees		3,458		3,199		8			13,430		11,890		13
Card fees		827		736		12			3,191		2,838		12
Other fees		1,119		1,193		(6)			4,340		4,519		(4)
Mortgage banking		1,570		3,068		(49)			8,774		11,638		(25)
Insurance		453		395		15			1,814		1,850		(2)
Net gains from trading activities		325		275		18			1,623		1,707		(5)
Net losses on debt securities		(14)		(63)		(78)			(29)		(128)		(77)
Net gains from equity investments		654		715		(9)			1,472		1,485		(1)
Lease income		148		170		(13)			663		567		17
Other		39		367		(89)			679		1,807		(62)

Total noninterest income		9,862		11,305		(13)			40,980		42,856		(4)


Noninterest expense
Salaries		3,811		3,735		2			15,152		14,689		3
Commission and incentive compensation		2,347		2,365		(1)			9,951		9,504		5
Employee benefits		1,160		891		30			5,033		4,611		9
Equipment		567		542		5			1,984		2,068		(4)
Net occupancy		732		728		1			2,895		2,857		1
Core deposit and other intangibles		375		418		(10)			1,504		1,674		(10)
FDIC and other deposit assessments		196		307		(36)			961		1,356		(29)
Other		2,897		3,910		(26)			11,362		13,639		(17)

Total noninterest expense		12,085		12,896		(6)			48,842		50,398		(3)


Income before income tax expense		8,217		7,221		14			32,629		28,471		15
Income tax expense		2,504		1,924		30			10,405		9,103		14


Net income before noncontrolling interests		5,713		5,297		8			22,224		19,368		15
Less: Net income from noncontrolling interests		103		207		(50)			346		471		(27)

Wells Fargo net income	$	5,610		5,090		10		$	21,878		18,897		16

Less: Preferred stock dividends and other		241		233		3			989		898		10

Wells Fargo net income applicable to common stock	$	5,369		4,857		11		$	20,889		17,999		16


Per share information
Earnings per common share	$	1.02		0.92		11		$	3.95		3.40		16
Diluted earnings per common share		1.00		0.91		10			3.89		3.36		16
Dividends declared per common share		0.30		0.22		36			1.15		0.88		31
Average common shares outstanding		5,270.3		5,272.4		-			5,287.3		5,287.6		-
Diluted average common shares outstanding		5,358.6		5,338.7		-			5,371.2		5,351.5		-

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%

(in millions)	2013		2012		Change			2013		2012		Change

Wells Fargo net income	$	5,610		5,090		10	%	$	21,878		18,897		16	%

Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains (losses) arising during the period		(1,739)		(454)		283			(7,661)		5,143		NM
Reclassification of net (gains) losses to net income		(88)		19		NM			(285)		(271)		5
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period		(22)		(11)		100			(32)		52		NM
Reclassification of net gains on cash flow hedges to net income		(71)		(93)		(24)			(296)		(388)		(24)
Defined benefit plans adjustments:
Net actuarial gains (losses) arising during the period		458		(757)		NM			1,533		(775)		NM
Amortization of net actuarial loss, settlements and other costs to net income		55		33		67			276		144		92
Foreign currency translation adjustments:
Net unrealized losses arising during the period		(17)		(5)		240			(44)		(6)		633
Reclassification of net gains to net income		-		-		-			(12)		(10)		20


Other comprehensive income (loss), before tax		(1,424)		(1,268)		12			(6,521)		3,889		NM
Income tax (expense) benefit related to other comprehensive income		522		481		9			2,524		(1,442)		NM


Other comprehensive income (loss), net of tax		(902)		(787)		15			(3,997)		2,447		NM
Less: Other comprehensive income (loss) from noncontrolling interests		1		(2)		NM			267		4		NM

Wells Fargo other comprehensive income (loss), net of tax		(903)		(785)		15			(4,264)		2,443		NM


Wells Fargo comprehensive income		4,707		4,305		9			17,614		21,340		(17)
Comprehensive income from noncontrolling interests		104		205		(49)			613		475		29


Total comprehensive income		$ 4,811		4,510		7			$ 18,227		21,815		(16)

NM - Not meaningful

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY


	Year ended Dec. 31,

(in millions)	2013		2012


Balance, beginning of period	$	158,911		141,687
Cumulative effect of fair value election for certain residential mortgage servicing rights		-		2


Balance, beginning of period - adjusted		158,911		141,689
Wells Fargo net income		21,878		18,897
Wells Fargo other comprehensive income (loss), net of tax		(4,264)		2,443
Common stock issued		2,733		2,488
Common stock repurchased (1)		(5,356)		(3,918)
Preferred stock released by ESOP		1,006		888
Preferred stock issued		3,145		1,377
Common stock warrants repurchased		-		(1)
Common stock dividends		(6,086)		(4,658)
Preferred stock dividends and other		(989)		(898)
Noncontrolling interests and other, net		30		604


Balance, end of period	$	171,008		158,911

(1)

For the year ended December 31, 2013, includes $500 million related to a private forward repurchase transaction entered into in fourth quarter 2013 that is expected to settle in first quarter 2014 for an estimated 11.3 million shares of common stock. For the year ended December 31, 2012, includes $200 million related to a private forward repurchase transaction entered into in fourth quarter 2012 that settled in first quarter 2013 for 6 million shares of common stock.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME




	Quarter ended

	Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
(in millions, except per share amounts)	2013		2013		2013		2013		2012


Interest income
Trading assets	$	378		331		340		327		339
Investment securities		2,119		2,038		2,034		1,925		1,897
Mortgages held for sale		221		320		378		371		413
Loans held for sale		3		3		4		3		3
Loans		8,907		8,901		8,902		8,861		9,027
Other interest income		208		183		169		163		178

Total interest income		11,836		11,776		11,827		11,650		11,857


Interest expense
Deposits		297		318		353		369		399
Short-term borrowings		14		9		17		20		24
Long-term debt		635		621		632		697		735
Other interest expense		87		80		75		65		56

Total interest expense		1,033		1,028		1,077		1,151		1,214


Net interest income		10,803		10,748		10,750		10,499		10,643
Provision for credit losses		363		75		652		1,219		1,831

Net interest income after provision for credit losses		10,440		10,673		10,098		9,280		8,812


Noninterest income
Service charges on deposit accounts		1,283		1,278		1,248		1,214		1,250
Trust and investment fees		3,458		3,276		3,494		3,202		3,199
Card fees		827		813		813		738		736
Other fees		1,119		1,098		1,089		1,034		1,193
Mortgage banking		1,570		1,608		2,802		2,794		3,068
Insurance		453		413		485		463		395
Net gains from trading activities		325		397		331		570		275
Net gains (losses) on debt securities		(14)		(6)		(54)		45		(63)
Net gains from equity investments		654		502		203		113		715
Lease income		148		160		225		130		170
Other		39		191		(8)		457		367

Total noninterest income		9,862		9,730		10,628		10,760		11,305


Noninterest expense
Salaries		3,811		3,910		3,768		3,663		3,735
Commission and incentive compensation		2,347		2,401		2,626		2,577		2,365
Employee benefits		1,160		1,172		1,118		1,583		891
Equipment		567		471		418		528		542
Net occupancy		732		728		716		719		728
Core deposit and other intangibles		375		375		377		377		418
FDIC and other deposit assessments		196		214		259		292		307
Other		2,897		2,831		2,973		2,661		3,910

Total noninterest expense		12,085		12,102		12,255		12,400		12,896


Income before income tax expense		8,217		8,301		8,471		7,640		7,221
Income tax expense		2,504		2,618		2,863		2,420		1,924


Net income before noncontrolling interests		5,713		5,683		5,608		5,220		5,297
Less: Net income from noncontrolling interests		103		105		89		49		207


Wells Fargo net income	$	5,610		5,578		5,519		5,171		5,090

Less: Preferred stock dividends and other		241		261		247		240		233


Wells Fargo net income applicable to common stock	$	5,369		5,317		5,272		4,931		4,857


Per share information
Earnings per common share	$	1.02		1.00		1.00		0.93		0.92
Diluted earnings per common share		1.00		0.99		0.98		0.92		0.91
Dividends declared per common share		0.30		0.30		0.30		0.25		0.22
Average common shares outstanding		5,270.3		5,295.3		5,304.7		5,279.0		5,272.4
Diluted average common shares outstanding		5,358.6		5,381.7		5,384.6		5,353.5		5,338.7

Wells Fargo & Company and Subsidiaries

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



	Quarter ended December 31,

							2013								2012

(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense


Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	205,276			0.28	%	$	148		117,047			0.41	%	$	121
Trading assets		45,379			3.40			386		42,005			3.28			345
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		6,611			1.67			27		5,281			1.64			22
Securities of U.S. states and political subdivisions		42,025			4.38			460		36,391			4.64			422
Mortgage-backed securities:
Federal agencies		117,910			2.94			866		90,898			2.71			617
Residential and commercial		29,233			6.35			464		32,669			6.53			533
Total mortgage-backed securities		147,143			3.62			1,330		123,567			3.72			1,150
Other debt and equity securities		55,325			3.43			478		50,025			3.91			490
Total available-for-sale securities		251,104			3.65			2,295		215,264			3.87			2,084
Held-to-maturity securities (4)		2,845			3.09			22		-			-			-
Mortgages held for sale (5)		21,396			4.13			221		47,241			3.50			413
Loans held for sale (5)		138			8.21			3		135			9.03			3
Loans:
Commercial:
Commercial and industrial		193,211			3.48			1,696		179,493			3.85			1,736
Real estate mortgage		105,795			3.85			1,026		105,107			4.02			1,061
Real estate construction		16,579			4.79			200		17,502			4.97			218
Lease financing		11,744			5.70			167		12,461			6.43			201
Foreign		46,682			2.23			262		39,665			2.32			231
Total commercial		374,011			3.56			3,351		354,228			3.87			3,447
Consumer:
Real estate 1-4 family first mortgage		257,253			4.15			2,673		244,634			4.39			2,686
Real estate 1-4 family junior lien mortgage		66,774			4.29			721		76,908			4.28			826
Credit card		25,854			12.23			797		23,839			12.43			745
Automobile		50,213			6.70			849		45,957			7.34			848
Other revolving credit and installment		42,564			4.94			529		41,644			4.63			485
Total consumer		442,658			5.01			5,569		432,982			5.15			5,590
Total loans (5)		816,669			4.35			8,920		787,210			4.58			9,037
Other		4,728			5.22			61		4,280			5.21			56
Total earning assets	$	1,347,535			3.56	%	$	12,056		1,213,182			3.96	%	$	12,059

Funding sources
Deposits:
Interest-bearing checking	$	35,171			0.07	%	$	6		30,858			0.06	%	$	5
Market rate and other savings		568,750			0.08			110		518,593			0.10			135
Savings certificates		43,067			0.94			102		56,743			1.27			181
Other time deposits		39,700			0.48			47		13,612			1.51			51
Deposits in foreign offices		86,333			0.15			32		69,398			0.15			27
Total interest-bearing deposits		773,021			0.15			297		689,204			0.23			399
Short-term borrowings		52,286			0.12			15		52,820			0.21			28
Long-term debt		153,470			1.65			635		127,505			2.30			735
Other liabilities		12,822			2.70			87		9,975			2.27			56
Total interest-bearing liabilities		991,599			0.42			1,034		879,504			0.55			1,218
Portion of noninterest-bearing funding sources		355,936			-			-		333,678			-			-
Total funding sources	$	1,347,535			0.30			1,034		1,213,182			0.40			1,218
Net interest margin and net interest income on a taxable-equivalent basis (6)					3.26	%	$	11,022					3.56	%	$	10,841
Noninterest-earning assets
Cash and due from banks	$	15,998								16,361
Goodwill		25,637								25,637
Other		119,947								131,876
Total noninterest-earning assets	$	161,582								173,874

Noninterest-bearing funding sources
Deposits	$	287,379								286,924
Other liabilities		60,489								63,025
Total equity		169,650								157,603
Noninterest-bearing funding sources used to fund earning assets		(355,936	)							(333,678	)
Net noninterest-bearing funding sources	$	161,582								173,874
Total assets	$	1,509,117								1,387,056

(1)	Our average prime rate was 3.25% for the quarters ended December 31, 2013 and 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.24% and 0.32% for the same quarters, respectively.

(2)	Yield/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)	Includes $6.3 billion of federal agency mortgage-backed securities purchased during the fourth quarter of 2013 and $6.0 billion of auto asset-backed securities that were transferred near the end of 2013 from the available-for-sale portfolio.

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

(6)	Includes taxable-equivalent adjustments of $219 million and $198 million for the quarters ended December 31, 2013 and 2012, respectively, primarily 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)




	Year ended December 31,

							2013								2012

(in millions)	Average balance			Yields/ rates			Interest income/ expense		Average balance			Yields/ rates			Interest income/ expense


Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	154,902			0.32	%	$	489		84,081			0.45	%	$	378
Trading assets		44,745			3.14			1,406		41,950			3.29			1,380
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		6,750			1.66			112		3,604			1.31			47
Securities of U.S. states and political subdivisions		39,922			4.38			1,748		34,875			4.48			1,561
Mortgage-backed securities:
Federal agencies		107,148			2.83			3,031		92,887			3.12			2,893
Residential and commercial		30,717			6.47			1,988		33,545			6.75			2,264
Total mortgage-backed securities		137,865			3.64			5,019		126,432			4.08			5,157
Other debt and equity securities		55,002			3.53			1,940		49,245			4.04			1,992
Total available-for-sale securities		239,539			3.68			8,819		214,156			4.09			8,757
Held-to-maturity securities (4)		717			3.06			22		-			-			-
Mortgages held for sale (5)		35,273			3.66			1,290		48,955			3.73			1,825
Loans held for sale (5)		163			7.95			13		661			6.22			41
Loans:
Commercial:
Commercial and industrial		188,092			3.62			6,807		173,913			4.01			6,981
Real estate mortgage		105,475			3.93			4,147		105,437			4.18			4,411
Real estate construction		16,445			4.77			784		17,963			4.98			894
Lease financing		12,048			6.13			738		12,771			7.22			921
Foreign		43,447			2.18			946		39,852			2.47			984
Total commercial		365,507			3.67			13,422		349,936			4.06			14,191
Consumer:
Real estate 1-4 family first mortgage		254,000			4.22			10,716		234,619			4.55			10,671
Real estate 1-4 family junior lien mortgage		70,227			4.29			3,013		80,840			4.28			3,457
Credit card		24,747			12.46			3,083		22,772			12.67			2,885
Automobile		48,476			6.94			3,365		44,986			7.54			3,390
Other revolving credit and installment		42,035			4.80			2,019		42,071			4.57			1,923
Total consumer		439,485			5.05			22,196		425,288			5.25			22,326
Total loans (5)		804,992			4.42			35,618		775,224			4.71			36,517
Other		4,354			5.39			235		4,438			4.70			209
Total earning assets	$	1,284,685			3.73	%	$	47,892		1,169,465			4.20	%	$	49,107

Funding sources
Deposits:
Interest-bearing checking	$	35,570			0.06	%	$	22		30,564			0.06	%	$	19
Market rate and other savings		550,394			0.08			450		505,310			0.12			592
Savings certificates		49,510			1.13			559		59,484			1.31			782
Other time deposits		28,090			0.69			194		13,363			1.68			225
Deposits in foreign offices		76,894			0.15			112		67,920			0.16			109
Total interest-bearing deposits		740,458			0.18			1,337		676,641			0.26			1,727
Short-term borrowings		54,716			0.13			71		51,196			0.18			94
Long-term debt		134,937			1.92			2,585		127,547			2.44			3,110
Other liabilities		12,471			2.46			307		10,032			2.44			245
Total interest-bearing liabilities		942,582			0.46			4,300		865,416			0.60			5,176
Portion of noninterest-bearing funding sources		342,103			-			-		304,049			-			-
Total funding sources	$	1,284,685			0.34			4,300		1,169,465			0.44			5,176
Net interest margin and net interest income on a taxable-equivalent basis (6)					3.39	%	$	43,592					3.76	%	$	43,931
Noninterest-earning assets
Cash and due from banks	$	16,272								16,303
Goodwill		25,637								25,417
Other		121,711								130,450
Total noninterest-earning assets	$	163,620								172,170

Noninterest-bearing funding sources
Deposits	$	280,229								263,863
Other liabilities		60,500								61,214
Total equity		164,994								151,142
Noninterest-bearing funding sources used to fund earning assets		(342,103	)							(304,049	)
Net noninterest-bearing funding sources	$	163,620								172,170
Total assets	$	1,448,305								1,341,635

(1)	Our average prime rate was 3.25% for the year ended December 31, 2013 and 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.27% and 0.43% for the same periods, respectively.

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

(3)	The average balance amounts represent amortized cost for the periods presented.

(4)	Includes $6.3 billion of federal agency mortgage-backed securities purchased during the fourth quarter of 2013 and $6.0 billion of auto asset-backed securities that were transferred near the end of 2013 from the available-for-sale portfolio.

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

(6)	Includes taxable-equivalent adjustments of $792 million and $701 million for the year ended December 31, 2013 and 2012, respectively, primarily 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)


	Quarter ended

	Dec. 31, 2013							Sept. 30, 2013							June 30, 2013							Mar. 31, 2013							Dec. 31, 2012
($ in billions)	Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	205.3			0.28	%	$		155.9			0.31	%	$		136.5			0.33	%	$		121.0			0.36	%	$		117.1			0.41	%
Trading assets		45.4			3.40				44.8			3.02				46.6			2.98				42.1			3.17				42.0			3.28
Investment securities (2):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		6.6			1.67				6.6			1.69				6.7			1.73				7.1			1.56				5.3			1.64
Securities of U.S. states and political subdivisions		42.0			4.38				40.8			4.35				39.3			4.42				37.6			4.38				36.4			4.64
Mortgage-backed securities:
Federal agencies		117.9			2.94				113.0			2.83				102.0			2.79				95.4			2.74				90.9			2.71
Residential and commercial		29.2			6.35				30.2			6.56				31.3			6.50				32.1			6.46				32.7			6.53

Total mortgage-backed securities		147.1			3.62				143.2			3.62				133.3			3.66				127.5			3.68				123.6			3.72
Other debt and equity securities		55.4			3.43				55.4			3.27				55.5			3.84				53.7			3.58				50.0			3.91

Total available-for-sale securities		251.1			3.65				246.0			3.61				234.8			3.77				225.9			3.70				215.3			3.87
Held-to-maturity securities		2.8			3.09				-			-				-			-				-			-				-			-
Mortgages held for sale		21.4			4.13				33.2			3.86				43.4			3.48				43.3			3.42				47.2			3.50
Loans held for sale		0.1			8.21				0.2			7.25				0.2			7.85				0.1			8.83				0.1			9.03
Loans:
Commercial:
Commercial and industrial		193.2			3.48				188.4			3.58				186.1			3.69				184.5			3.73				179.5			3.85
Real estate mortgage		105.8			3.85				104.6			4.12				105.3			3.92				106.2			3.84				105.1			4.02
Real estate construction		16.6			4.79				16.2			4.43				16.4			5.02				16.6			4.84				17.5			4.97
Lease financing		11.7			5.70				11.7			5.29				12.3			6.66				12.4			6.78				12.4			6.43
Foreign		46.7			2.23				44.9			2.09				42.3			2.23				39.9			2.16				39.7			2.32

Total commercial		374.0			3.56				365.8			3.64				362.4			3.75				359.6			3.74				354.2			3.87

Consumer:
Real estate 1-4 family first mortgage		257.2			4.15				254.1			4.20				252.6			4.23				252.0			4.29				244.6			4.39
Real estate 1-4 family junior lien mortgage		66.8			4.29				68.8			4.30				71.4			4.29				74.1			4.28				76.9			4.28
Credit card		25.9			12.23				25.0			12.45				24.0			12.55				24.1			12.62				23.9			12.43
Automobile		50.2			6.70				49.1			6.85				47.9			7.05				46.6			7.20				46.0			7.34
Other revolving credit and installment		42.6			4.94				42.0			4.83				41.9			4.74				41.7			4.70				41.6			4.63

Total consumer		442.7			5.01				439.0			5.04				437.8			5.05				438.5			5.10				433.0			5.15

Total loans		816.7			4.35				804.8			4.41				800.2			4.46				798.1			4.49				787.2			4.58
Other		4.7			5.22				4.3			5.62				4.2			5.55				4.3			5.19				4.3			5.21

Total earning assets	$	1,347.5			3.56	%	$		1,289.2			3.70	%	$		1,265.9			3.80	%	$		1,234.8			3.86	%	$		1,213.2			3.96	%

Funding sources
Deposits:
Interest-bearing checking	$	35.2			0.07	%	$		34.5			0.06	%	$		40.4			0.06	%	$		32.2			0.06	%	$		30.9			0.06	%
Market rate and other savings		568.7			0.08				553.1			0.08				541.8			0.08				537.5			0.09				518.6			0.10
Savings certificates		43.1			0.94				47.3			1.08				52.6			1.23				55.2			1.22				56.7			1.27
Other time deposits		39.7			0.48				30.4			0.62				26.0			0.76				15.9			1.25				13.6			1.51
Deposits in foreign offices		86.3			0.15				81.1			0.15				68.9			0.15				71.1			0.14				69.4			0.15

Total interest-bearing deposits		773.0			0.15				746.4			0.17				729.7			0.19				711.9			0.21				689.2			0.23
Short-term borrowings		52.3			0.12				53.4			0.08				57.8			0.14				55.4			0.17				52.8			0.21
Long-term debt		153.5			1.65				133.4			1.86				125.5			2.02				127.1			2.20				127.5			2.30
Other liabilities		12.8			2.70				12.1			2.64				13.3			2.25				11.6			2.24				10.0			2.27

Total interest-bearing liabilities		991.6			0.42				945.3			0.43				926.3			0.47				906.0			0.51				879.5			0.55
Portion of noninterest-bearing funding sources		355.9			-				343.9			-				339.6			-				328.8			-				333.7			-

Total funding sources	$	1,347.5			0.30		$		1,289.2			0.32		$		1,265.9			0.34		$		1,234.8			0.38		$		1,213.2			0.40

Net interest margin on a taxable-equivalent basis					3.26	%						3.38	%						3.46	%						3.48	%						3.56	%

Noninterest-earning assets
Cash and due from banks	$	16.0							16.4							16.2							16.5							16.4
Goodwill		25.6							25.6							25.6							25.6							25.6
Other		120.0							118.4							121.3							127.4							131.9

Total noninterest-earnings assets	$	161.6							160.4							163.1							169.5							173.9

Noninterest-bearing funding sources
Deposits	$	287.4							279.2							280.0							274.2							286.9
Other liabilities		60.5							60.0							58.0							63.7							63.1
Total equity		169.6							165.1							164.7							160.4							157.6
Noninterest-bearing funding sources used to fund earning assets		(355.9	)						(343.9	)						(339.6	)						(328.8	)						(333.7	)

Net noninterest-bearing funding sources	$	161.6							160.4							163.1							169.5							173.9

Total assets	$	1,509.1							1,449.6							1,429.0							1,404.3							1,387.1

(1)	Our average prime rate was 3.25% for quarters ended December 31, September 30, June 30 and March 31, 2013, and December 31, 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.24%, 0.26%, 0.28%, 0.29% and 0.32% for the same quarters, respectively.

(2)	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 Dec. 31				%			Year ended Dec. 31,				%


(in millions)	2013		2012		Change			2013		2012		Change


Service charges on deposit accounts	$	1,283		1,250		3	%	$	5,023		4,683		7	%
Trust and investment fees:
Brokerage advisory, commissions and other fees (1)		2,150		1,962		10			8,395		6,386		31
Trust and investment management (1)		850		797		7			3,289		4,218		(22)
Investment banking		458		440		4			1,746		1,286		36


Total trust and investment fees		3,458		3,199		8			13,430		11,890		13


Card fees		827		736		12			3,191		2,838		12
Other fees:
Charges and fees on loans		379		448		(15)			1,540		1,746		(12)
Merchant processing fees		172		151		14			669		583		15
Cash network fees		122		112		9			493		470		5
Commercial real estate brokerage commissions		129		119		8			338		307		10
Letters of credit fees		99		107		(7)			410		441		(7)
All other fees		218		256		(15)			890		972		(8)


Total other fees		1,119		1,193		(6)			4,340		4,519		(4)


Mortgage banking:
Servicing income, net		709		250		184			1,920		1,378		39
Net gains on mortgage loan origination/sales activities		861		2,818		(69)			6,854		10,260		(33)


Total mortgage banking		1,570		3,068		(49)			8,774		11,638		(25)


Insurance		453		395		15			1,814		1,850		(2)
Net gains from trading activities		325		275		18			1,623		1,707		(5)
Net losses on debt securities		(14)		(63)		(78)			(29)		(128)		(77)
Net gains from equity investments		654		715		(9)			1,472		1,485		(1)
Lease income		148		170		(13)			663		567		17
Life insurance investment income		125		276		(55)			566		757		(25)
All other		(86)		91		NM			113		1,050		(89)


Total	$	9,862		11,305		(13)		$	40,980		42,856		(4)

NM - Not meaningful (1) Prior year periods have been revised to reflect all fund distribution fees as brokerage related income. NONINTEREST EXPENSE


	Quarter ended Dec. 31,				%			Year ended Dec. 31,				%


(in millions)	2013		2012		Change			2013		2012		Change

Salaries	$	3,811		3,735		2	%	$	15,152		14,689		3	%
Commission and incentive compensation		2,347		2,365		(1)			9,951		9,504		5
Employee benefits		1,160		891		30			5,033		4,611		9
Equipment		567		542		5			1,984		2,068		(4)
Net occupancy		732		728		1			2,895		2,857		1
Core deposit and other intangibles		375		418		(10)			1,504		1,674		(10)
FDIC and other deposit assessments		196		307		(36)			961		1,356		(29)
Outside professional services		754		744		1			2,519		2,729		(8)
Outside data processing		264		227		16			983		910		8
Contract services		261		235		11			935		1,011		(8)
Travel and entertainment		234		211		11			885		839		5
Operating losses		181		953		(81)			821		2,235		(63)
Postage, stationery and supplies		189		192		(2)			756		799		(5)
Advertising and promotion		165		142		16			610		578		6
Foreclosed assets		103		221		(53)			605		1,061		(43)
Telecommunications		118		122		(3)			482		500		(4)
Insurance		59		62		(5)			437		453		(4)
Operating leases		51		27		89			204		109		87
All other		518		774		(33)			2,125		2,415		(12)


Total	$	12,085		12,896		(6)		$	48,842		50,398		(3)

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME




	Quarter ended


(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Service charges on deposit accounts	$	1,283		1,278		1,248		1,214		1,250
Trust and investment fees:
Brokerage advisory, commissions and other fees (1)		2,150		2,068		2,127		2,050		1,962
Trust and investment management (1)		850		811		829		799		797
Investment banking		458		397		538		353		440


Total trust and investment fees		3,458		3,276		3,494		3,202		3,199


Card fees		827		813		813		738		736
Other fees:
Charges and fees on loans		379		390		387		384		448
Merchant processing fees		172		169		174		154		151
Cash network fees		122		129		125		117		112
Commercial real estate brokerage commissions		129		91		73		45		119
Letters of credit fees		99		100		102		109		107
All other fees		218		219		228		225		256


Total other fees		1,119		1,098		1,089		1,034		1,193


Mortgage banking:
Servicing income, net		709		504		393		314		250
Net gains on mortgage loan origination/sales activities		861		1,104		2,409		2,480		2,818


Total mortgage banking		1,570		1,608		2,802		2,794		3,068


Insurance		453		413		485		463		395
Net gains from trading activities		325		397		331		570		275
Net gains (losses) on debt securities		(14)		(6)		(54)		45		(63)
Net gains from equity investments		654		502		203		113		715
Lease income		148		160		225		130		170
Life insurance investment income		125		154		142		145		276
All other		(86)		37		(150)		312		91


Total	$	9,862		9,730		10,628		10,760		11,305

(1)	Quarter ended December 31, 2012, has been revised to reflect all fund distribution fees as brokerage related income.

FIVE QUARTER NONINTEREST EXPENSE




	Quarter ended


(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Salaries	$	3,811		3,910		3,768		3,663		3,735
Commission and incentive compensation		2,347		2,401		2,626		2,577		2,365
Employee benefits		1,160		1,172		1,118		1,583		891
Equipment		567		471		418		528		542
Net occupancy		732		728		716		719		728
Core deposit and other intangibles		375		375		377		377		418
FDIC and other deposit assessments		196		214		259		292		307
Outside professional services		754		623		607		535		744
Outside data processing		264		251		235		233		227
Contract services		261		241		226		207		235
Travel and entertainment		234		209		229		213		211
Operating losses		181		195		288		157		953
Postage, stationery and supplies		189		184		184		199		192
Advertising and promotion		165		157		183		105		142
Foreclosed assets		103		161		146		195		221
Telecommunications		118		116		125		123		122
Insurance		59		98		143		137		62
Operating leases		51		56		49		48		27
All other		518		540		558		509		774


Total	$	12,085		12,102		12,255		12,400		12,896

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET



	December 31,				%

(in millions, except shares)	2013		2012		Change


Assets
Cash and due from banks	$	19,919		21,860		(9)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		213,793		137,313		56
Trading assets		62,813		57,482		9
Investment securities:
Available-for-sale, at fair value		252,007		235,199		7
Held-to-maturity, at cost (fair value $12,247 and $0)		12,346		-		-
Mortgages held for sale (includes $13,879 and $42,305 carried at fair value) (1)		16,763		47,149		(64)
Loans held for sale (includes $1 and $6 carried at fair value) (1)		133		110		21

Loans (includes $5,995 and $6,206 carried at fair value) (1)		825,799		799,574		3
Allowance for loan losses		(14,502)		(17,060)		(15)


Net loans		811,297		782,514		4

Mortgage servicing rights:
Measured at fair value		15,580		11,538		35
Amortized		1,229		1,160		6
Premises and equipment, net		9,156		9,428		(3)
Goodwill		25,637		25,637		-
Other assets (includes $1,386 and $0 carried at fair value) (1)		86,342		93,578		(8)


Total assets	$	1,527,015		1,422,968		7


Liabilities
Noninterest-bearing deposits	$	288,117		288,207		-
Interest-bearing deposits		791,060		714,628		11

Total deposits		1,079,177		1,002,835		8
Short-term borrowings		53,883		57,175		(6)
Accrued expenses and other liabilities		69,949		76,668		(9)
Long-term debt (includes $0 and $1 carried at fair value) (1)		152,998		127,379		20


Total liabilities		1,356,007		1,264,057		7


Equity

Wells Fargo stockholders’ equity:
Preferred stock		16,267		12,883		26
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares and 5,481,811,474 shares		9,136		9,136		-
Additional paid-in capital		60,296		59,802		1
Retained earnings		92,361		77,679		19
Cumulative other comprehensive income		1,386		5,650		(75)
Treasury stock – 224,648,769 shares and 215,497,298 shares		(8,104)		(6,610)		23
Unearned ESOP shares		(1,200)		(986)		22

Total Wells Fargo stockholders’ equity		170,142		157,554		8
Noncontrolling interests		866		1,357		(36)


Total equity		171,008		158,911		8


Total liabilities and equity	$	1,527,015		1,422,968		7

(1)	Parenthetical amounts represent assets and liabilities for which we have elected the fair value option.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET



(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Assets
Cash and due from banks	$	19,919		18,928		17,939		16,217		21,860
Federal funds sold, securities purchased under resale agreements and other short-term investments		213,793		182,036		148,665		143,804		137,313
Trading assets		62,813		60,203		58,619		62,274		57,482
Investment securities:
Available-for-sale, at fair value		252,007		259,399		249,439		248,160		235,199
Held-to-maturity, at cost		12,346		-		-		-		-
Mortgages held for sale		16,763		25,395		38,785		46,702		47,149
Loans held for sale		133		204		190		194		110

Loans		825,799		812,325		801,974		799,966		799,574
Allowance for loan losses		(14,502)		(15,159)		(16,144)		(16,711)		(17,060)


Net loans		811,297		797,166		785,830		783,255		782,514

Mortgage servicing rights:
Measured at fair value		15,580		14,501		14,185		12,061		11,538
Amortized		1,229		1,204		1,176		1,181		1,160
Premises and equipment, net		9,156		9,120		9,190		9,263		9,428
Goodwill		25,637		25,637		25,637		25,637		25,637
Other assets		86,342		94,262		90,908		87,886		93,578


Total assets	$	1,527,015		1,488,055		1,440,563		1,436,634		1,422,968


Liabilities
Noninterest-bearing deposits	$	288,117		279,911		277,648		278,909		288,207
Interest-bearing deposits		791,060		761,960		743,937		731,824		714,628

Total deposits		1,079,177		1,041,871		1,021,585		1,010,733		1,002,835
Short-term borrowings		53,883		53,851		56,983		60,693		57,175
Accrued expenses and other liabilities		69,949		72,308		74,843		75,622		76,668
Long-term debt		152,998		151,212		123,375		126,191		127,379


Total liabilities		1,356,007		1,319,242		1,276,786		1,273,239		1,264,057


Equity
Wells Fargo stockholders’ equity:
Preferred stock		16,267		15,549		13,988		14,412		12,883
Common stock		9,136		9,136		9,136		9,136		9,136
Additional paid-in capital		60,296		60,188		59,945		60,136		59,802
Retained earnings		92,361		88,625		84,923		81,264		77,679
Cumulative other comprehensive income		1,386		2,289		1,797		5,145		5,650
Treasury stock		(8,104)		(7,290)		(5,858)		(6,036)		(6,610)
Unearned ESOP shares		(1,200)		(1,332)		(1,510)		(1,971)		(986)


Total Wells Fargo stockholders’ equity		170,142		167,165		162,421		162,086		157,554
Noncontrolling interests		866		1,648		1,356		1,309		1,357


Total equity		171,008		168,813		163,777		163,395		158,911


Total liabilities and equity	$	1,527,015		1,488,055		1,440,563		1,436,634		1,422,968

Wells Fargo & Company and Subsidiaries

FIVE QUARTER INVESTMENT SECURITIES



(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	$	6,280		6,406		6,383		6,884		7,146
Securities of U.S. states and political subdivisions		42,536		42,293		40,890		40,456		38,676
Mortgage-backed securities:
Federal agencies		117,591		118,963		110,561		105,472		97,285
Residential and commercial		31,200		32,329		33,423		35,179		35,899


Total mortgage-backed securities		148,791		151,292		143,984		140,651		133,184
Other debt securities		51,015		55,828		55,425		57,390		53,408


Total available-for-sale debt securities		248,622		255,819		246,682		245,381		232,414
Marketable equity securities		3,385		3,580		2,757		2,779		2,785


Total available-for-sale securities		252,007		259,399		249,439		248,160		235,199


Held-to-maturity securities:
Federal agency mortgage-backed securities		6,304		-		-		-		-
Other debt securities		6,042		-		-		-		-


Total held-to-maturity debt securities		12,346		-		-		-		-


Total investment securities	$	264,353		259,399		249,439		248,160		235,199

FIVE QUARTER LOANS



(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Commercial:
Commercial and industrial	$	197,210		191,738		188,758		185,623		187,759
Real estate mortgage		107,100		105,540		104,673		106,119		106,340
Real estate construction		16,747		16,413		16,442		16,650		16,904
Lease financing		12,034		11,688		11,766		12,402		12,424
Foreign (1)		47,665		46,666		41,833		40,920		37,771


Total commercial		380,756		372,045		363,472		361,714		361,198

Consumer:
Real estate 1-4 family first mortgage		258,497		254,924		252,841		252,307		249,900
Real estate 1-4 family junior lien mortgage		65,914		67,675		70,059		72,543		75,465
Credit card		26,870		25,448		24,815		24,120		24,640
Automobile		50,808		49,693		48,648		47,259		45,998
Other revolving credit and installment		42,954		42,540		42,139		42,023		42,373


Total consumer		445,043		440,280		438,502		438,252		438,376


Total loans (2)	$	825,799		812,325		801,974		799,966		799,574

(1)	Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower’s primary address is outside of the United States.

(2)	Includes $26.7 billion, $27.8 billion, $28.8 billion, $29.7 billion and $31.0 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30 and March 31, 2013, and December 31, 2012, respectively. See the PCI loans table for detail of PCI loans.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)



(in millions)	Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Nonaccrual loans:
Commercial:
Commercial and industrial	$	738			809		1,022		1,193		1,422
Real estate mortgage		2,252			2,496		2,708		3,098		3,322
Real estate construction		416			517		665		870		1,003
Lease financing		29			17		20		25		27
Foreign		40			47		40		56		50


Total commercial		3,475			3,886		4,455		5,242		5,824

Consumer:
Real estate 1-4 family first mortgage		9,799			10,450		10,705		11,320		11,455
Real estate 1-4 family junior lien mortgage		2,188			2,333		2,522		2,712		2,922
Automobile		173			188		200		220		245
Other revolving credit and installment		33			36		33		32		40

Total consumer		12,193			13,007		13,460		14,284		14,662

Total nonaccrual loans (1)(2)(3)		15,668			16,893		17,915		19,526		20,486

As a percentage of total loans		1.90	%		2.08		2.23		2.44		2.56
Foreclosed assets:
Government insured/guaranteed (4)	$	2,093			1,781		1,026		969		1,509
Non-government insured/guaranteed		1,844			2,021		2,114		2,381		2,514


Total foreclosed assets		3,937			3,802		3,140		3,350		4,023


Total nonperforming assets	$	19,605			20,695		21,055		22,876		24,509


As a percentage of total loans		2.37	%		2.55		2.63		2.86		3.07

(1)	Includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.

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

(3)

Real estate 1-4 family mortgage loans predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) and student loans predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program are not placed on nonaccrual status because they are insured or guaranteed.

(4)

Consistent with regulatory reporting requirements, foreclosed real estate resulting from government insured/guaranteed loans are classified as nonperforming. Both principal and interest related to these foreclosed real estate assets are collectible because the loans were predominantly insured by the FHA or guaranteed by the VA. Increase in balances at December 31 and September 30, 2013, reflects the impact of changes to loan modification programs, slowing foreclosures in prior quarters.

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING



(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	23,219		22,181		22,197		23,082		23,245
Less: FHA insured/VA guaranteed (2)(4)		21,274		20,214		20,112		20,745		20,745
Less: Student loans guaranteed under the FFELP (3)		900		917		931		977		1,065


Total, not government insured/guaranteed	$	1,045		1,050		1,154		1,360		1,435

By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	11		125		37		47		47
Real estate mortgage		35		40		175		164		228
Real estate construction		97		1		4		47		27
Foreign		-		1		-		7		1


Total commercial		143		167		216		265		303

Consumer:
Real estate 1-4 family first mortgage (4)		354		383		476		563		564
Real estate 1-4 family junior lien mortgage (4)		86		89		92		112		133
Credit card		321		285		263		306		310
Automobile		55		48		32		33		40
Other revolving credit and installment		86		78		75		81		85


Total consumer		902		883		938		1,095		1,132


Total, not government insured/guaranteed	$	1,045		1,050		1,154		1,360		1,435

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $4.5 billion, $4.9 billion, $5.4 billion, $5.8 billion and $6.0 billion, at December 31, September 30, June 30 and March 31, 2013 and December 31, 2012, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

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

(3)	Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP).

(4)	Includes mortgages held for sale 90 days or more past due and still accruing.

Wells Fargo & Company and Subsidiaries

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.

Under the accounting guidance for PCI loans, the excess of cash flows expected to be collected over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan, or pool of loans, in situations where there is a reasonable expectation about the timing and amount of cash flows expected to be collected. Accordingly, such loans are not classified as nonaccrual and they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for PCI loans and not to contractual interest payments. The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference.

Subsequent to acquisition, we regularly evaluate our estimates of cash flows expected to be collected. These evaluations, performed quarterly, require the continued usage of key assumptions and estimates, similar to the initial estimate of fair value. If we have probable decreases in the expected cash flows (other than due to decreases in interest rate indices and changes in prepayment assumptions), we charge the provision for credit losses, resulting in an increase to the allowance for loan losses. If we have probable and significant increases in the expected cash flows subsequent to establishing an additional allowance, we first reverse any previously established allowance and then increase interest income over the remaining life of the loan, or pool of loans.

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.




	December 31,


(in millions)	2013		2012		2008


Commercial:
Commercial and industrial	$	215		259		4,580
Real estate mortgage		1,136		1,970		5,803
Real estate construction		433		877		6,462
Foreign		720		871		1,859


Total commercial		2,504		3,977		18,704


Consumer:
Real estate 1-4 family first mortgage		24,100		26,839		39,214
Real estate 1-4 family junior lien mortgage		123		152		728
Automobile		-		-		151


Total consumer		24,223		26,991		40,093


Total PCI loans (carrying value)	$	26,727		30,968		58,797

Wells Fargo & Company and Subsidiaries

CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

The difference between the contractually required payments and the cash flows expected to be collected at acquisition, considering the impact of prepayments, is referred to as the nonaccretable difference. A nonaccretable difference is established in purchase accounting for PCI loans to absorb losses expected at that time on those loans. Amounts absorbed by the nonaccretable difference do not affect the income statement or the allowance for credit losses. Substantially all our commercial and industrial, CRE and foreign PCI loans are accounted for as individual loans. Conversely, Pick-a-Pay and other consumer PCI loans have been aggregated into several pools based on common risk characteristics. Each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Resolutions of loans may include sales to third parties, receipt of payments in settlement with the borrower, or foreclosure of the collateral. Our policy is to remove an individual loan from a pool based on comparing the amount received from its resolution with its contractual amount. Any difference between these amounts is absorbed by the nonaccretable difference. This removal method assumes that the amount received from resolution approximates pool performance expectations. The accretable yield percentage is unaffected by the resolution and any changes in the effective yield for the remaining loans in the pool are addressed by our quarterly cash flow evaluation process for each pool. For loans that are resolved by payment in full, there is no release of the nonaccretable difference for the pool because there is no difference between the amount received at resolution and the contractual amount of the loan. Modified PCI loans are not removed from a pool even if those loans would otherwise be deemed troubled debt restructurings (TDRs). Modified PCI loans that are accounted for individually are considered TDRs, and removed from PCI accounting, if there has been a concession granted in excess of the original nonaccretable difference. The following table provides an analysis of changes in the nonaccretable difference.



(in millions)	Commercial		Pick-a-Pay		Other consumer		Total


Balance, December 31, 2008	$	10,410		26,485		4,069		40,964

Addition of nonaccretable difference due to acquisitions		195		-		-		195

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(1,426)		-		-		(1,426)
Loans resolved by sales to third parties (2)		(303)		-		(85)		(388)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(1,531)		(3,031)		(792)		(5,354)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(6,923)		(17,222)		(2,882)		(27,027)


Balance, December 31, 2012		422		6,232		310		6,964

Addition of nonaccretable difference due to acquisitions		18		-		-		18

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(86)		-		-		(86)
Loans resolved by sales to third parties (2)		(5)		-		-		(5)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(74)		(866)		(31)		(971)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(10)		(662)		(79)		(751)


Balance, December 31, 2013	$	265		4,704		200		5,169




Balance, September 30, 2013	$	300		4,725		243		5,268

Addition of nonaccretable difference due to acquisitions		11		-		-		11

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(24)		-		-		(24)
Loans resolved by sales to third parties (2)		-		-		-		-
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(24)		-		(31)		(55)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		2		(21)		(12)		(31)

Balance, December 31, 2013	$	265		4,704		200		5,169

(1)

Release of the nonaccretable difference for settlement with borrower, on individually accounted PCI loans, increases interest income in the period of settlement. Pick-a-Pay and Other consumer PCI loans do not reflect nonaccretable difference releases for settlements with borrowers due to pool accounting for those loans, which assumes that the amount received approximates the pool performance expectations.

(2)	Release of the nonaccretable difference as a result of sales to third parties increases noninterest income in the period of the sale.

(3)	Reclassification of nonaccretable difference to accretable yield for loans with increased cash flow estimates will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.

(4)

Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when 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. Also includes foreign exchange adjustments related to underlying principal for which the nonaccretable difference was established.

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PCI 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 is presented in the following table.




(in millions)


Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions		131
Accretion into interest income (1)		(9,351)
Accretion into noninterest income due to sales (2)		(242)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		5,354
Changes in expected cash flows that do not affect nonaccretable difference (3)		12,209


Balance, December 31, 2012		18,548
Addition of accretable yield due to acquisitions		1
Accretion into interest income (1)		(1,833)
Accretion into noninterest income due to sales (2)		(151)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		971
Changes in expected cash flows that do not affect nonaccretable difference (3)		1,586


Balance, December 31, 2013	$	19,122




Balance, September 30, 2013	$	19,516
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(447)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		55

Changes in expected cash flows that do not affect nonaccretable difference (3)		(2)

Balance, December 31, 2013	$	19,122

(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)	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.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

When it is estimated that the expected cash flows have decreased subsequent to acquisition for a PCI loan or pool of loans, an allowance is established and a provision for additional loss is recorded as a charge to income. The following table summarizes the changes in allowance for PCI loan losses.



(in millions)	Commercial		Pick-a-Pay		Other consumer		Total

Balance, December 31, 2008	$	-		-		-		-
Provision for losses due to credit deterioration		1,693		-		123		1,816
Charge-offs		(1,605)		-		(94)		(1,699)


Balance, December 31, 2012		88		-		29		117
Reversal of provision for losses		(52)		-		(16)		(68)
Charge-offs		(10)		-		(9)		(19)

Balance, December 31, 2013	$	26		-		4		30




Balance, September 30, 2013	$	17		-		5		22
Provision for loan losses due to credit deterioration / (reversal of provision)		13		-		(1)		12
Charge-offs		(4)		-		-		(4)


Balance, December 31, 2013	$	26		-		4		30

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	December 31, 2013

	PCI loans										All other loans

(in millions)	Adjusted unpaid principal balance (2)		Current LTV ratio (3)			Carrying value (4)		Ratio of carrying value to current value (5)			Carrying value (4)		Ratio of carrying value to current value (5)


California	$	19,797		89	%	$	16,213		72	%	$	13,219		65	%
Florida		2,395		98			1,827		69			2,764		80
New Jersey		1,029		87			974		74			1,770		74
New York		609		84			592		73			797		73
Texas		266		70			241		62			1,081		56
Other states		4,704		89			4,001		74			7,492		75

Total Pick-a-Pay loans	$	28,800				$	23,848				$	27,123

(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 2013.

(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.

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS




(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	2,013		2,342		2,532		2,770		3,170


Total commercial		2,013		2,342		2,532		2,770		3,170


Consumer:
Pick-a-Pay mortgage (1)		50,971		52,805		54,755		56,608		58,274
Liquidating home equity		3,695		3,911		4,173		4,421		4,647
Legacy Wells Fargo Financial indirect auto		207		299		428		593		830
Legacy Wells Fargo Financial debt consolidation		12,893		13,281		13,707		14,115		14,519
Education Finance-government guaranteed		10,712		11,094		11,534		11,922		12,465
Legacy Wachovia other PCI loans (1)		375		406		435		462		657


Total consumer		78,853		81,796		85,032		88,121		91,392


Total non-strategic and liquidating loan portfolios	$	80,866		84,138		87,564		90,891		94,562

(1)	Net of purchase accounting adjustments related to PCI loans.

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES


	Quarter ended Dec. 31,					Year ended Dec. 31,


(in millions)	2013			2012		2013		2012


Balance, beginning of period	$	15,647			17,803		17,477		19,668
Provision for credit losses		363			1,831		2,309		7,217
Interest income on certain impaired loans (1)		(55)			(70)		(264)		(315)
Loan charge-offs:
Commercial:
Commercial and industrial		(199)			(302)		(715)		(1,306)
Real estate mortgage		(37)			(86)		(190)		(382)
Real estate construction		(10)			(10)		(28)		(191)
Lease financing		(3)			(6)		(33)		(24)
Foreign		(4)			(30)		(27)		(111)


Total commercial		(253)			(434)		(993)		(2,014)


Consumer:
Real estate 1-4 family first mortgage		(269)			(694)		(1,439)		(3,013)
Real estate 1-4 family junior lien mortgage		(291)			(765)		(1,578)		(3,437)
Credit card		(251)			(259)		(1,022)		(1,101)
Automobile		(182)			(189)		(625)		(651)
Other revolving credit and installment		(195)			(192)		(753)		(757)


Total consumer		(1,188)			(2,099)		(5,417)		(8,959)


Total loan charge-offs		(1,441)			(2,533)		(6,410)		(10,973)


Loan recoveries:
Commercial:
Commercial and industrial		92			93		380		461
Real estate mortgage		78			48		227		163
Real estate construction		23			28		137		124
Lease financing		3			4		16		19
Foreign		4			6		27		32


Total commercial		200			179		787		799

Consumer:
Real estate 1-4 family first mortgage		74			45		245		157
Real estate 1-4 family junior lien mortgage		65			75		269		259
Credit card		31			37		126		185
Automobile		74			77		321		362
Other revolving credit and installment		34			39		153		177


Total consumer		278			273		1,114		1,140


Total loan recoveries		478			452		1,901		1,939


Net loan charge-offs (2)		(963)			(2,081)		(4,509)		(9,034)


Allowances related to business combinations/other		(21)			(6)		(42)		(59)


Balance, end of period	$	14,971			17,477		14,971		17,477


Components:
Allowance for loan losses	$	14,502			17,060		14,502		17,060
Allowance for unfunded credit commitments		469			417		469		417


Allowance for credit losses (3)	$	14,971			17,477		14,971		17,477

Net loan charge-offs (annualized) as a percentage of average total loans (2)		0.47	%		1.05		0.56		1.17
Allowance for loan losses as a percentage of total loans (3)		1.76			2.13		1.76		2.13
Allowance for credit losses as a percentage of total loans (3)		1.81			2.19		1.81		2.19

(1)	Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

(2)	For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.

(3)	The allowance for credit losses includes $30 million and $117 million at December 31, 2013 and 2012, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES


	Quarter ended


(in millions)	Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Balance, beginning of quarter	$	15,647			16,618		17,193		17,477		17,803
Provision for credit losses		363			75		652		1,219		1,831
Interest income on certain impaired loans (1)		(55)			(63)		(73)		(73)		(70)
Loan charge-offs:
Commercial:
Commercial and industrial		(199)			(151)		(184)		(181)		(302)
Real estate mortgage		(37)			(44)		(49)		(60)		(86)
Real estate construction		(10)			(6)		(7)		(5)		(10)
Lease financing		(3)			(3)		(24)		(3)		(6)
Foreign		(4)			(4)		(8)		(11)		(30)


Total commercial		(253)			(208)		(272)		(260)		(434)


Consumer:
Real estate 1-4 family first mortgage		(269)			(303)		(392)		(475)		(694)
Real estate 1-4 family junior lien mortgage		(291)			(345)		(428)		(514)		(765)
Credit card		(251)			(239)		(266)		(266)		(259)
Automobile		(182)			(153)		(126)		(164)		(189)
Other revolving credit and installment		(195)			(191)		(185)		(182)		(192)


Total consumer (2)		(1,188)			(1,231)		(1,397)		(1,601)		(2,099)


Total loan charge-offs		(1,441)			(1,439)		(1,669)		(1,861)		(2,533)


Loan recoveries:
Commercial:
Commercial and industrial		92			93		107		88		93
Real estate mortgage		78			64		54		31		48
Real estate construction		23			23		52		39		28
Lease financing		3			3		6		4		4
Foreign		4			6		9		8		6


Total commercial		200			189		228		170		179

Consumer:
Real estate 1-4 family first mortgage		74			61		64		46		45
Real estate 1-4 family junior lien mortgage		65			70		69		65		75
Credit card		31			32		32		31		37
Automobile		74			75		84		88		77
Other revolving credit and installment		34			37		40		42		39


Total consumer		278			275		289		272		273


Total loan recoveries		478			464		517		442		452


Net loan charge-offs		(963)			(975)		(1,152)		(1,419)		(2,081)


Allowances related to business combinations/other		(21)			(8)		(2)		(11)		(6)


Balance, end of quarter	$	14,971			15,647		16,618		17,193		17,477


Components:
Allowance for loan losses	$	14,502			15,159		16,144		16,711		17,060
Allowance for unfunded credit commitments		469			488		474		482		417


Allowance for credit losses	$	14,971			15,647		16,618		17,193		17,477

Net loan charge-offs (annualized) as a percentage of average total loans		0.47	%		0.48		0.58		0.72		1.05
Allowance for loan losses as a percentage of:
Total loans		1.76			1.87		2.01		2.09		2.13
Nonaccrual loans		93			90		90		86		83
Nonaccrual loans and other nonperforming assets		74			73		77		73		70
Allowance for credit losses as a percentage of:
Total loans		1.81			1.93		2.07		2.15		2.19
Nonaccrual loans		96			93		93		88		85
Nonaccrual loans and other nonperforming assets		76			76		79		75		71

(1)	Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.

(2)

Includes $321 million for the quarter ended December 31, 2012, resulting from the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER RISK-BASED CAPITAL COMPONENTS UNDER BASEL I



(in billions)			Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Total equity			$	171.0			168.8		163.8		163.4		158.9
Noncontrolling interests				(0.9)			(1.6)		(1.4)		(1.3)		(1.3)


Total Wells Fargo stockholders’ equity				170.1			167.2		162.4		162.1		157.6


Adjustments:
Preferred stock				(15.2)			(14.3)		(12.6)		(12.6)		(12.0)
Cumulative other comprehensive income				(1.4)			(2.2)		(1.8)		(5.1)		(5.6)
Goodwill and other intangible assets (1)				(29.6)			(29.8)		(30.0)		(30.2)		(30.4)
Investment in certain subsidiaries and other				(0.4)			(0.6)		(0.5)		(0.6)		(0.6)


Tier 1 common equity (2)	(A	)		123.5			120.3		117.5		113.6		109.0


Preferred stock				15.2			14.3		12.6		12.6		12.0
Qualifying hybrid securities and noncontrolling interests				2.0			2.9		2.9		2.9		5.6


Total Tier 1 capital				140.7			137.5		133.0		129.1		126.6


Long-term debt and other instruments qualifying as Tier 2				20.5			18.9		18.0		18.4		17.2
Qualifying allowance for credit losses				14.3			14.3		13.8		13.8		13.6
Other				0.7			0.6		0.2		0.3		0.2


Total Tier 2 capital				35.5			33.8		32.0		32.5		31.0


Total capital	(B	)	$	176.2			171.3		165.0		161.6		157.6


Risk-weighted assets (3)(4):
Credit risk			$	1,103.7			1,099.2		1,061.1		1,056.5		1,066.2
Market risk				37.3			35.9		36.3		37.8		10.9


Total risk-weighted assets	(C	)	$	1,141.0			1,135.1		1,097.4		1,094.3		1,077.1


Capital Ratios (4):
Tier 1 common equity to total risk-weighted assets	(A	)/(C)		10.82	%		10.60		10.71		10.39		10.12
Total capital to total risk-weighted assets	(B	)/(C)		15.44			15.09		15.03		14.76		14.63

(1)	Goodwill and other intangible assets are net of any associated deferred tax liabilities.

(2)

Tier 1 common equity is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews Tier 1 common equity along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

(3)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total risk-weighted assets.

(4)	The Company’s December 31, 2013, risk-weighted assets (RWA) and capital ratios are preliminary.

COMMON EQUITY TIER 1 UNDER BASEL III (1) (2)



(in billions)		Dec. 31, 2013


Tier 1 common equity under Basel I		$	123.5


Adjustments from Basel I to Basel III (3) (5):
Cumulative other comprehensive income related to AFS securities and defined benefit pension plans			1.3
Other			1.2

Total adjustments from Basel I to Basel III			2.5
Threshold deductions, as defined under Basel III (4) (5)			-


Common Equity Tier 1 anticipated under Basel III	(C)	$	126.0


Total risk-weighted assets anticipated under Basel III (6)	(D)	$	1,288.7


Common Equity Tier 1 to total risk-weighted assets anticipated under Basel III	(C)/(D)		9.78	%

(1)

Common Equity Tier 1 is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews Common Equity Tier 1 along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

(2)

The Basel III Common Equity Tier 1 and RWA are estimated based on management’s interpretation of the Basel III capital rules adopted July 2, 2013, by the FRB. The rules establish a new comprehensive capital framework for U.S. banking organizations that implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

(3)	Adjustments from Basel I to Basel III represent reconciling adjustments, primarily certain components of cumulative other comprehensive income deducted for Basel I purposes, to derive Common Equity Tier 1 under Basel III.

(4)

Threshold deductions, as defined under Basel III, include individual and aggregate limitations, as a percentage of Common Equity Tier 1, with respect to MSRs (net of related deferred tax liability, which approximates the MSR book value times the applicable statutory tax rates), deferred tax assets and investments in unconsolidated financial companies.

(5)	Volatility in interest rates can have a significant impact on the valuation of cumulative other comprehensive income and MSRs and therefore, may impact adjustments from Basel I to Basel III, and MSRs subject to threshold deductions, as defined under Basel III, in future reporting periods.

(6)

The final Basel III capital rules provide for two capital frameworks: the “standardized” approach intended to replace Basel I, and the “advanced” approach applicable to certain institutions as originally defined under Basel II. Under the final rules, we will be subject to the lower of our Common Equity Tier 1 ratio calculated under the standardized approach and under the advanced approach in the assessment of our capital adequacy. Accordingly, the estimate of RWA reflects management’s interpretation of RWA determined under the advanced approach because management expects RWA to be higher using the advanced approach compared with the standardized approach. Basel III capital rules adopted by the Federal Reserve Board incorporate different classification of assets, with certain risk weights based on a borrower’s credit rating or Wells Fargo’s own models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements.

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)



(income/expense in millions, average balances in billions)	Community Banking				Wholesale Banking				Wealth, Brokerage and Retirement				Other (2)				Consolidated Company

	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012


Quarter ended Dec. 31,
Net interest income (3)	$	7,225		7,166		3,133		3,092		770		689		(325)		(304)		10,803		10,643
Provision (reversal of provision) for credit losses		490		1,757		(125)		60		(11)		15		9		(1)		363		1,831
Noninterest income		5,029		6,616		2,839		2,901		2,668		2,405		(674)		(617)		9,862		11,305
Noninterest expense		7,073		8,033		3,020		3,007		2,655		2,513		(663)		(657)		12,085		12,896


Income (loss) before income tax expense (benefit)		4,691		3,992		3,077		2,926		794		566		(345)		(263)		8,217		7,221
Income tax expense (benefit)		1,373		918		960		892		302		215		(131)		(101)		2,504		1,924


Net income (loss) before noncontrolling interests		3,318		3,074		2,117		2,034		492		351		(214)		(162)		5,713		5,297
Less: Net income from noncontrolling interests		96		205		6		2		1		-		-		-		103		207


Net income (loss) (4)	$	3,222		2,869		2,111		2,032		491		351		(214)		(162)		5,610		5,090

Average loans	$	502.5		493.1		298.0		279.2		48.4		43.3		(32.2)		(28.4)		816.7		787.2
Average assets		883.6		794.2		512.3		489.7		185.3		171.7		(72.1)		(68.5)		1,509.1		1,387.1
Average core deposits		620.2		608.9		258.5		240.7		153.9		143.4		(66.8)		(64.2)		965.8		928.8


Year ended Dec. 31,
Net interest income (3)	$	28,839		29,045		12,298		12,648		2,888		2,768		(1,225)		(1,231)		42,800		43,230
Provision (reversal of provision) for credit losses		2,755		6,835		(445)		286		(16)		125		15		(29)		2,309		7,217
Noninterest income		21,500		24,360		11,766		11,444		10,315		9,392		(2,601)		(2,340)		40,980		42,856
Noninterest expense		28,723		30,840		12,378		12,082		10,455		9,893		(2,714)		(2,417)		48,842		50,398


Income (loss) before income tax expense (benefit)		18,861		15,730		12,131		11,724		2,764		2,142		(1,127)		(1,125)		32,629		28,471
Income tax expense (benefit)		5,799		4,774		3,984		3,943		1,050		814		(428)		(428)		10,405		9,103


Net income (loss) before noncontrolling interests		13,062		10,956		8,147		7,781		1,714		1,328		(699)		(697)		22,224		19,368
Less: Net income from noncontrolling interests		330		464		14		7		2		-		-		-		346		471


Net income (loss) (4)	$	12,732		10,492		8,133		7,774		1,712		1,328		(699)		(697)		21,878		18,897


Average loans	$	499.3		487.1		290.0		273.8		46.1		42.7		(30.4)		(28.4)		805.0		775.2
Average assets		835.4		761.1		502.3		481.7		180.9		164.6		(70.3)		(65.8)		1,448.3		1,341.6
Average core deposits		620.1		591.2		237.2		227.0		150.1		137.5		(65.3)		(61.8)		942.1		893.9

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

(2)	Includes corporate items not specific to a business segment and the elimination of certain items that are included in more than one business segment, substantially all of which represents services for wealth management customers provided in Community Banking stores.

(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.

(4)	Represents segment net income (loss) for Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement segments and Wells Fargo net income for the consolidated company.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)


							Quarter ended

(income/expense in millions, average balances in billions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


COMMUNITY BANKING
Net interest income (2)	$	7,225		7,244		7,251		7,119		7,166
Provision for credit losses		490		240		763		1,262		1,757
Noninterest income		5,029		5,000		5,691		5,780		6,616
Noninterest expense		7,073		7,060		7,213		7,377		8,033


Income before income tax expense		4,691		4,944		4,966		4,260		3,992
Income tax expense		1,373		1,505		1,633		1,288		918


Net income before noncontrolling interests		3,318		3,439		3,333		2,972		3,074
Less: Net income from noncontrolling interests		96		98		88		48		205


Segment net income	$	3,222		3,341		3,245		2,924		2,869


Average loans	$	502.5		497.7		498.2		498.9		493.1
Average assets		883.6		836.6		820.9		799.6		794.2
Average core deposits		620.2		618.2		623.0		619.2		608.9



WHOLESALE BANKING
Net interest income (2)	$	3,133		3,059		3,101		3,005		3,092
Provision (reversal of provision) for credit losses		(125)		(144)		(118)		(58)		60
Noninterest income		2,839		2,812		3,034		3,081		2,901
Noninterest expense		3,020		3,084		3,183		3,091		3,007


Income before income tax expense		3,077		2,931		3,070		3,053		2,926
Income tax expense		960		952		1,065		1,007		892


Net income before noncontrolling interests		2,117		1,979		2,005		2,046		2,034
Less: Net income from noncontrolling interests		6		6		1		1		2


Segment net income	$	2,111		1,973		2,004		2,045		2,032


Average loans	$	298.0		290.4		286.9		284.5		279.2
Average assets		512.3		500.7		499.9		496.1		489.7
Average core deposits		258.5		235.3		230.5		224.1		240.7



WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	770		749		700		669		689
Provision (reversal of provision) for credit losses		(11)		(38)		19		14		15
Noninterest income		2,668		2,558		2,561		2,528		2,405
Noninterest expense		2,655		2,619		2,542		2,639		2,513


Income before income tax expense		794		726		700		544		566
Income tax expense		302		275		266		207		215


Net income before noncontrolling interests		492		451		434		337		351
Less: Net income from noncontrolling interests		1		1		-		-		-


Segment net income	$	491		450		434		337		351


Average loans	$	48.4		46.7		45.4		43.8		43.3
Average assets		185.3		180.8		177.1		180.3		171.7
Average core deposits		153.9		150.6		146.4		149.4		143.4



OTHER (3)
Net interest income (2)	$	(325)		(304)		(302)		(294)		(304)
Provision (reversal of provision) for credit losses		9		17		(12)		1		(1)
Noninterest income		(674)		(640)		(658)		(629)		(617)
Noninterest expense		(663)		(661)		(683)		(707)		(657)


Loss before income tax benefit		(345)		(300)		(265)		(217)		(263)
Income tax benefit		(131)		(114)		(101)		(82)		(101)


Net loss before noncontrolling interests		(214)		(186)		(164)		(135)		(162)
Less: Net income from noncontrolling interests		-		-		-		-		-


Other net loss	$	(214)		(186)		(164)		(135)		(162)


Average loans	$	(32.2)		(30.0)		(30.3)		(29.1)		(28.4)
Average assets		(72.1)		(68.5)		(68.9)		(71.7)		(68.5)
Average core deposits		(66.8)		(63.8)		(63.8)		(66.8)		(64.2)



CONSOLIDATED COMPANY
Net interest income (2)	$	10,803		10,748		10,750		10,499		10,643
Provision for credit losses		363		75		652		1,219		1,831
Noninterest income		9,862		9,730		10,628		10,760		11,305
Noninterest expense		12,085		12,102		12,255		12,400		12,896


Income before income tax expense		8,217		8,301		8,471		7,640		7,221
Income tax expense		2,504		2,618		2,863		2,420		1,924


Net income before noncontrolling interests		5,713		5,683		5,608		5,220		5,297
Less: Net income from noncontrolling interests		103		105		89		49		207

Wells Fargo net income	$	5,610		5,578		5,519		5,171		5,090


Average loans	$	816.7		804.8		800.2		798.1		787.2
Average assets		1,509.1		1,449.6		1,429.0		1,404.3		1,387.1
Average core deposits		965.8		940.3		936.1		925.9		928.8

(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)

(3)	Includes corporate items not specific to a business segment and the elimination of certain items that are included in more than one business segment, substantially all of which represents products and services for wealth management customers provided in Community Banking stores.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING



	Quarter ended

(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


MSRs measured using the fair value method:

Fair value, beginning of quarter	$	14,501		14,185		12,061		11,538		10,956

Servicing from securitizations or asset transfers		520		954		1,060		935		1,094
Sales		-		-		(160)		(423)		-


Net additions		520		954		900		512		1,094


Changes in fair value:

Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (1)		1,048		61		2,223		1,030		388
Servicing and foreclosure costs (2)		(54)		(34)		(82)		(58)		(127)
Discount rates (3)		-		-		-		-		(53)
Prepayment estimates and other (4)		(11)		(240)		(274)		(211)		115


Net changes in valuation model inputs or assumptions		983		(213)		1,867		761		323


Other changes in fair value (5)		(424)		(425)		(643)		(750)		(835)


Total changes in fair value		559		(638)		1,224		11		(512)

Fair value, end of quarter	$	15,580		14,501		14,185		12,061		11,538

(1)	Primarily represents prepayment speed changes due to changes in mortgage interest rates, but also includes other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).

(2)	Includes costs to service and unreimbursed foreclosure costs.

(3)	Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates; the fourth quarter 2012 change reflects updated broker input on market values for servicing fees in excess of the minimum that can be retained on loans sold to Freddie Mac and Fannie Mae.

(4)	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 that occur independent of interest rate changes.

(5)	Represents changes due to collection/realization of expected cash flows over time.



	Quarter ended

(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Amortized MSRs:

Balance, beginning of quarter	$	1,204		1,176		1,181		1,160		1,144
Purchases		64		59		26		27		43
Servicing from securitizations or asset transfers		28		32		31		56		34
Amortization		(67)		(63)		(62)		(62)		(61)


Balance, end of quarter		1,229		1,204		1,176		1,181		1,160




Fair value of amortized MSRs:

Beginning of quarter	$	1,525		1,533		1,404		1,400		1,399
End of quarter		1,575		1,525		1,533		1,404		1,400

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)




	Quarter ended

(in millions)	Dec. 31, 2013		Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Servicing income, net:
Servicing fees (1)	$	934		966		1,030		997		926
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		983		(213)		1,867		761		323
Other changes in fair value (3)		(424)		(425)		(643)		(750)		(835)


Total changes in fair value of MSRs carried at fair value		559		(638)		1,224		11		(512)
Amortization		(67)		(63)		(62)		(62)		(61)
Net derivative gains (losses) from economic hedges (4)		(717)		239		(1,799)		(632)		(103)


Total servicing income, net	$	709		504		393		314		250


Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	266		26		68		129		220

(1)	Includes contractually specified servicing fees, late charges and other ancillary revenues.

(2)	Refer to the changes in fair value MSRs table on the previous page for more detail.

(3)	Represents changes due to collection/realization of expected cash flows over time.

(4)	Represents results from free-standing derivatives (economic hedges) used to hedge the risk of changes in fair value of MSRs.



(in billions)	Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012

Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,485			1,494		1,487		1,486		1,498
Owned loans serviced		338			344		358		367		368
Subservicing		6			6		6		7		7


Total residential servicing		1,829			1,844		1,851		1,860		1,873


Commercial mortgage servicing:
Serviced for others		419			416		409		404		408
Owned loans serviced		107			106		105		106		106
Subservicing		7			11		11		14		13

Total commercial servicing		533			533		525		524		527


Total managed servicing portfolio	$	2,362			2,377		2,376		2,384		2,400


Total serviced for others	$	1,904			1,910		1,896		1,890		1,906
Ratio of MSRs to related loans serviced for others		0.88	%		0.82		0.81		0.70		0.67
Weighted-average note rate (mortgage loans serviced for others)		4.52			4.54		4.59		4.69		4.77

(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.

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA




	Quarter ended

(in billions)	Dec. 31, 2013			Sept. 30, 2013		June 30, 2013		Mar. 31, 2013		Dec. 31, 2012


Application data:
Wells Fargo first mortgage quarterly applications	$	65			87		146		140		152
Refinances as a percentage of applications		42	%		36		54		65		72
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	25			35		63		74		81




Residential real estate originations:
Wells Fargo first mortgage loans:
Retail	$	26			44		62		59		63
Correspondent/Wholesale		23			35		50		49		61
Other (1)		1			1		-		1		1


Total quarter-to-date	$	50			80		112		109		125

Total year-to-date	$	351			301		221		109		524

(1)	Consists of home equity loans and lines.

Wells Fargo & Company and Subsidiaries

CHANGES IN MORTGAGE REPURCHASE LIABILITY



	Quarter ended						Year ended

(in millions)	Dec. 31, 2013		Sept. 30, 2013		Dec. 31, 2012		Dec. 31, 2013		Dec. 31, 2012

Balance, beginning of period	$	1,421		2,222		2,033		2,206		1,326
Provision for repurchase losses:
Loan sales		16		28		66		143		275
Change in estimate (1)		10		-		313		285		1,665


Total additions		26		28		379		428		1,940

Losses (2)		(548)		(829)		(206)		(1,735)		(1,060)


Balance, end of period	$	899		1,421		2,206		899		2,206

(1)	Results from changes in investor demand and mortgage insurer practices, credit deterioration and changes in the financial stability of correspondent lenders.

(2)

Quarter and year ended September 30 and December 31, 2013, respectively, reflect $746 million as a result of the agreement with Freddie Mac that substantially resolves all repurchase liabilities related to loans sold to Freddie Mac prior to January 1, 2009. Quarter and year ended December 31, 2013, reflect $508 million as a result of the agreement with Fannie Mae that substantially resolves all repurchase liabilities related to loans sold to Fannie Mae that were originated prior to January 1, 2009.

UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS



($ in millions)	Government sponsored entities (1)		Private		Mortgage insurance rescissions with no demand (2)		Total

December 31, 2013
Number of loans		674		2,260		394		3,328
Original loan balance (3)	$	124		497		87		708

September 30, 2013
Number of loans		4,422		1,240		385		6,047
Original loan balance (3)	$	958		264		87		1,309

June 30, 2013
Number of loans		6,313		1,206		561		8,080
Original loan balance (3)	$	1,413		258		127		1,798

March 31, 2013
Number of loans		5,910		1,278		652		7,840
Original loan balance (3)	$	1,371		278		145		1,794

December 31, 2012
Number of loans		6,621		1,306		753		8,680
Original loan balance (3)	$	1,503		281		160		1,944

(1)

Includes repurchase demands of 42 and $6 million, 1,247 and $225 million, 942 and $190 million, 674 and $147 million, and 661 and $132 million at December 31, September 30, June 30 and March 31, 2013, and December 31, 2012, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller.

(2)

As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private). Over the last year, approximately 7% of our repurchase demands from GSEs had mortgage insurance rescission as one of the reasons for the repurchase demand. Of all the mortgage insurance rescission notices received in 2012, approximately 78% have resulted in repurchase demands through December 2013. Not all mortgage insurance rescissions received in 2012 have been completed through the appeals process with the mortgage insurer and, upon successful appeal, we work with the investor to rescind the repurchase demand.

(3)

While the original loan balances related to these demands are presented above, the establishment of the repurchase liability is based on a combination of factors, such as our appeals success rates, reimbursement by correspondent and other third party originators, and projected loss severity, which is driven by the difference between the current loan balance and the estimated collateral value less costs to sell the property.

Investors

Mary Eshet