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

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - January 15, 2016

Attached files

Attached files

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8-K - 8-K - WELLS FARGO & COMPANY/MN	wfc4qer1-15x2016form8xk.htm
EX-99.2 - EXHIBIT 99.2 - WELLS FARGO & COMPANY/MN	wellsfargo4q15quarterlys.htm

Exhibit 99.1

Friday, January 15, 2016

WELLS FARGO REPORTS $5.7 BILLION IN QUARTERLY NET INCOME; DILUTED EPS OF $1.03

2015 Net Income of $23.0 Billion; Diluted EPS of $4.15


▪	Full year 2015:


◦	Net income of $23.0 billion, consistent with 2014


◦	Diluted earnings per share (EPS) of $4.15, up 1 percent


◦	Revenue of $86.1 billion, up 2 percent


◦	Pre-tax pre-provision profit¹ of $36.3 billion, up 3 percent


◦	Return on assets (ROA) of 1.32 percent and return on equity (ROE) of 12.68 percent


◦	Returned $12.6 billion to shareholders through dividends and net share repurchases


▪	Fourth quarter 2015:


◦	Net income of $5.7 billion, stable compared with fourth quarter 2014


◦	Diluted EPS of $1.03, up 1 percent


◦	Revenue of $21.6 billion, up 1 percent


◦	Pre-tax pre-provision profit¹ of $9.2 billion, up 4 percent


◦	ROA of 1.27 percent and ROE of 12.23 percent


◦	Total average loans of $912.3 billion, up $62.9 billion, or 7 percent


◦	Total average deposits of $1.2 trillion, up $67.0 billion, or 6 percent


◦	Net charge-off rate of 0.36 percent (annualized), up from 0.34 percent


◦	Nonaccrual loans down $1.5 billion, or 11 percent


◦	No reserve build or release², compared with a $250 million release in fourth quarter 2014


◦	Common Equity Tier 1 ratio (fully phased-in) of 10.7 percent³


◦	Period-end common shares outstanding down 16.3 million from third quarter 2015

¹ Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes that PTPP is a useful financial measure because it enables investors and others to assess the Company’s ability to generate capital to cover credit losses through a credit cycle.

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

³ See table on page 35 for more information on Common Equity Tier 1. Common Equity Tier 1 (fully phased-in) is a preliminary estimate and is calculated assuming the full phase-in of the Basel III capital rules.

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Selected Financial Information



				Quarter ended		Year ended Dec. 31,
	Dec 31, 2015			Sep 30, 2015	Dec 31, 2014	2015	2014
Earnings
Diluted earnings per common share	$	1.03		1.05	1.02	4.15	4.10
Wells Fargo net income (in billions)	5.71			5.80	5.71	23.03	23.06
Return on assets (ROA)	1.27		%	1.32	1.36	1.32	1.45
Return on equity (ROE)	12.23			12.62	12.84	12.68	13.41
Asset Quality
Net charge-offs (annualized) as a % of average total loans	0.36		%	0.31	0.34	0.33	0.35
Allowance for credit losses as a % of total loans	1.37			1.39	1.53	1.37	1.53
Allowance for credit losses as a % of annualized net charge-offs	380			450	452	433	447
Other
Revenue (in billions)	$	21.6		21.9	21.4	86.1	84.3
Efficiency ratio	57.4		%	56.7	59.0	57.8	58.1
Average loans (in billions)	$	912.3		895.1	849.4	885.4	834.4
Average deposits (in billions)	1,216.8			1,198.9	1,149.8	1,194.1	1,114.1
Net interest margin	2.92		%	2.96	3.04	2.95	3.11

SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported diluted earnings per common share of $4.15 for 2015, compared with $4.10 in 2014. Full year net income was $23.0 billion, compared with $23.1 billion in 2014. For fourth quarter 2015, net income was $5.7 billion, or $1.03 per share, compared with $5.7 billion, or $1.02 per share, for fourth quarter 2014, and $5.8 billion, or $1.05 per share, for third quarter 2015.

Chairman and CEO John Stumpf said, “Full year and fourth quarter 2015 results demonstrated the benefit of our diversified business model as we again generated strong financial results, maintained our risk discipline and continued to invest across the company for future growth. We remained focused on the building blocks of long-term shareholder value, with continued growth in loans, deposits and capital. For the 5th consecutive year, we returned more capital to shareholders than the prior year. I am proud of the dedication of our team members and their focus on helping our customers succeed financially."

Chief Financial Officer John Shrewsberry added, “Our performance in the fourth quarter reflected a continuation of the solid results we generated all year and the ability of our diversified business model to perform consistently across cycles. Compared with the prior quarter, we increased deposits and grew both commercial and consumer loans, while maintaining our credit and pricing discipline. Net interest income increased as we benefited from broad-based earning asset growth, and fee income remained diversified. We continued to have strong liquidity and capital levels, and our net payout ratio⁴ was stable at 59 percent."

⁴ Net payout ratio means the ratio of (i) common stock dividends and share repurchases less issuances and stock compensation-related items, divided by (ii) net income applicable to common stock.

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Net Interest Income

Net interest income in the fourth quarter increased $131 million from third quarter 2015 to $11.6 billion, largely driven by growth in earning assets. Income from variable sources, including periodic dividends, loan recoveries and fees included in interest income, also increased in the quarter. Net interest income also benefited modestly from the increase in short-term interest rates late in the quarter. These benefits to net interest income were partially offset by reduced income from seasonally lower balances of mortgages held-for-sale and increased interest expense from higher debt balances.

Net interest margin was 2.92 percent, down 4 basis points from third quarter 2015. Income from variable sources improved the net interest margin by approximately 2 basis points linked-quarter, but was more than offset by customer-driven deposit growth, which had a minimal impact to net interest income but was dilutive to the net interest margin by 3 basis points. All other growth, mix and repricing reduced the margin by 3 basis points, largely driven by increased debt balances, including funding raised in anticipation of closing the previously announced acquisitions of certain commercial lending businesses and assets from GE Capital.

Noninterest Income

Noninterest income in the fourth quarter was $10.0 billion, compared with $10.4 billion in third quarter 2015, down due to lower equity investment gains, which were elevated in the third quarter. Noninterest income benefited from higher debt securities gains, trading income (reflecting higher deferred compensation plan investment results which were largely offset in employee benefits expense), commercial real estate brokerage fees, mortgage banking, investment banking, card fees and insurance fees.

Mortgage banking noninterest income was $1.7 billion, up $71 million from third quarter, primarily driven by higher net servicing income. During the fourth quarter, residential mortgage loan originations were $47 billion, down $8 billion linked quarter on seasonality. The production margin on residential held-for-sale mortgage loan originations⁵ was 1.83 percent, compared with 1.88 percent in third quarter. Net mortgage servicing rights (MSRs) results were $417 million, compared with $253 million in third quarter 2015.

Noninterest Expense

Noninterest expense in the fourth quarter was $12.4 billion, stable compared with third quarter 2015. Fourth quarter expenses included typically higher equipment, outside professional services and advertising, as well as an increase in deferred compensation expense (included in employee benefits expense and largely offset in revenue). These higher expenses were offset by lower operating losses, commissions and incentive compensation, as well as lower charitable donations, which were elevated in the third quarter due to a $126 million contribution to the Wells Fargo Foundation. Foreclosed asset expense also declined in the quarter, driven primarily by commercial real estate recoveries. The efficiency ratio was 57.4 percent in fourth quarter 2015, compared with 56.7 percent in the prior quarter. The Company expects to operate at the higher end of its targeted efficiency ratio range of 55 to 59 percent for full year 2016.

⁵ Production margin represents net gains on residential mortgage loan origination/sales activities divided by total residential held-for-sale mortgage originations. See the Selected Five Quarter Residential Mortgage Production Data table on page 40 for more information.

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Loans

Total loans were $916.6 billion at December 31, 2015, up $13.3 billion from September 30, 2015. Fourth quarter loan growth was broad-based across all portfolios (other than real estate 1-4 family junior lien mortgages) and did not include any loan portfolio acquisitions. Core loan growth was $15.4 billion, or 2 percent, as non-strategic/liquidating portfolios declined $2.1 billion in the quarter. Total average loans were $912.3 billion in the fourth quarter, up $17.2 billion from the prior quarter.



	December 31, 2015					September 30, 2015
(in millions)	Core		Non-strategic and liquidating (a)		Total	Core	Non-strategic and liquidating		Total
Commercial	$	456,115	468		456,583	446,832	506		447,338
Consumer	408,489		51,487		459,976	402,363	53,532		455,895
Total loans	$	864,604	51,955		916,559	849,195	54,038		903,233
Change from prior quarter:	$	15,409	(2,083	)	13,326	17,095	(2,321	)	14,774


(a)	See table on page 32 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.

Investment Securities

Investment securities were $347.6 billion at December 31, 2015, up $2.5 billion from third quarter. The Company purchased approximately $25 billion of securities (mostly federal agency mortgage-backed securities and U.S. Treasury securities), which were offset by maturities, amortization and sales.

Net unrealized available-for-sale securities gains of $3.0 billion at December 31, 2015, declined from $4.9 billion at September 30, 2015, primarily due to rising rates and realized gains on debt and equity securities.

Deposits

Total average deposits for fourth quarter 2015 were $1.2 trillion, up 6 percent from a year ago, driven by both commercial and consumer growth. The average deposit cost for fourth quarter 2015 was 8 basis points, which was down 1 basis point from a year ago and unchanged from the prior quarter. The increase in deposits reflected strong account growth as the number of primary consumer checking customers⁶ increased 5.6 percent year-over-year⁷ and primary small business and business banking checking customers⁶ increased 4.8 percent year-over-year⁷.

Capital

Capital levels remained strong in the fourth quarter, with Common Equity Tier 1 (fully phased-in) of $142.5 billion, or 10.7 percent³. In fourth quarter 2015, the Company purchased 27.0 million shares of its common stock and entered into a $500 million forward repurchase transaction for an additional 9.2 million shares which settled early in first quarter 2016. The Company paid a quarterly common stock dividend of $0.375 per share, up from $0.35 per share a year ago.

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

⁷ Data as of November 2015, comparisons with November 2014.

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Credit Quality

“The trend of strong credit results continued in the fourth quarter," said Chief Risk Officer Mike Loughlin. "The quarterly loss rate (annualized) remained low at 0.36 percent and nonperforming assets declined by $497 million, or 15 percent (annualized), from the prior quarter. The allowance for credit losses in the fourth quarter was stable (no reserve build or release) as continued credit quality improvements in the residential real estate portfolio were offset by higher commercial reserves reflecting continued deterioration within the energy sector. Future allowance levels may increase or decrease based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”

Net Loan Charge-offs

The quarterly loss rate (annualized) of 0.36 percent reflected commercial losses of 0.16 percent and consumer losses of 0.56 percent. Credit losses were $831 million in fourth quarter 2015, compared with $703 million in the third quarter, mainly due to $90 million in higher oil and gas portfolio losses, as well as seasonal increases in the non-real estate consumer portfolios.

Net Loan Charge-Offs



	Quarter ended
	December 31, 2015					September 30, 2015					June 30, 2015
($ in millions)	Net loan charge- offs			As a % of average loans (a)		Net loan charge- offs			As a % of average loans (a)		Net loan charge- offs			As a % of average loans (a)
Commercial:
Commercial and industrial	$	215		0.29	%	$	122		0.17	%	$	81		0.12	%
Real estate mortgage	(19		)	(0.06	)	(23		)	(0.08	)	(15		)	(0.05	)
Real estate construction	(10		)	(0.18	)	(8		)	(0.15	)	(6		)	(0.11	)
Lease financing	1			0.01		3			0.11		2			0.06
Total commercial	187			0.16		94			0.08		62			0.06
Consumer:
Real estate 1-4 family first mortgage	50			0.07		62			0.09		67			0.10
Real estate 1-4 family junior lien mortgage	70			0.52		89			0.64		94			0.66
Credit card	243			2.93		216			2.71		243			3.21
Automobile	135			0.90		113			0.76		68			0.48
Other revolving credit and installment	146			1.49		129			1.35		116			1.26
Total consumer	644			0.56		609			0.53		588			0.53
Total	$	831		0.36	%	$	703		0.31	%	$	650		0.30	%


(a)	Quarterly net charge-offs as a percentage of average loans are annualized. See explanation on page 31 of the accounting for purchased credit-impaired (PCI) loans and the impact on selected financial ratios.

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Nonperforming Assets

Nonperforming assets declined by $497 million from third quarter 2015 to $12.8 billion. Nonaccrual loans decreased $155 million to $11.4 billion driven by improvements in commercial and consumer real estate portfolios, partially offset by an increase in commercial and industrial nonaccrual loans, primarily related to deterioration in the oil and gas portfolio. Foreclosed assets were $1.4 billion, down from $1.8 billion in third quarter 2015.

Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	December 31, 2015					September 30, 2015					June 30, 2015
($ in millions)	Total balances			As a % of total loans		Total balances			As a % of total loans		Total balances			As a % of total loans
Commercial:
Commercial and industrial	$	1,363		0.45	%	$	1,031		0.35	%	$	1,079		0.38	%
Real estate mortgage	969			0.79		1,125			0.93		1,250			1.04
Real estate construction	66			0.30		151			0.70		165			0.77
Lease financing	26			0.21		29			0.24		28			0.23
Total commercial	2,424			0.53		2,336			0.52		2,522			0.58
Consumer:
Real estate 1-4 family first mortgage	7,293			2.66		7,425			2.74		8,045			3.00
Real estate 1-4 family junior lien mortgage	1,495			2.82		1,612			2.95		1,710			3.04
Automobile	121			0.20		123			0.21		126			0.22
Other revolving credit and installment	49			0.13		41			0.11		40			0.11
Total consumer	8,958			1.95		9,201			2.02		9,921			2.20
Total nonaccrual loans	11,382			1.24		11,537			1.28		12,443			1.40
Foreclosed assets:
Government insured/guaranteed	446					502					588
Non-government insured/guaranteed	979					1,265					1,370
Total foreclosed assets	1,425					1,767					1,958
Total nonperforming assets	$	12,807		1.40	%	$	13,304		1.47	%	$	14,401		1.62	%
Change from prior quarter:
Total nonaccrual loans	$	(155	)			$	(906	)			$	(67	)
Total nonperforming assets	(497		)			(1,097		)			(438		)

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 $981 million at December 31, 2015, up from $872 million at September 30, 2015. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgage loans and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $13.4 billion at December 31, 2015, down from $13.5 billion at September 30, 2015.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $12.5 billion at December 31, 2015, compared with $12.6 billion at September 30, 2015. The allowance coverage for total loans was 1.37 percent, compared with 1.39 percent in third quarter 2015. The allowance covered 3.8 times annualized fourth quarter net charge-offs, compared with 4.5 times in the prior quarter. The allowance coverage for nonaccrual loans was 110 percent at December 31, 2015, compared with 109 percent at September 30, 2015. “We believe the allowance was appropriate for losses inherent in the loan portfolio at December 31, 2015,” said Loughlin.

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Business Segment Performance

Wells Fargo defines its operating segments by product type and customer segment. Effective fourth quarter 2015, we realigned our business banking and merchant payment services businesses from Community Banking to Wholesale Banking. Results for these operating segments were revised for prior periods to reflect the impact of this realignment. Segment net income for each of the three business segments was:



	Quarter ended
(in millions)	Dec 31, 2015		Sep 30, 2015	Dec 31, 2014
Community Banking	$	3,303	3,560	3,333
Wholesale Banking	2,104		1,925	2,095
Wealth and Investment Management	595		606	519

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
(in millions)	Dec 31, 2015		Sep 30, 2015	Dec 31, 2014
Total revenue	$	12,330	12,933	12,158
Provision for credit losses	704		668	506
Noninterest expense	6,693		6,778	6,827
Segment net income	3,303		3,560	3,333
(in billions)
Average loans	482.2		477.0	469.6
Average assets	921.4		898.9	891.2
Average deposits	663.7		655.6	629.4

Community Banking reported net income of $3.3 billion, down $257 million, or 7 percent, from third quarter 2015. Revenue of $12.3 billion decreased $603 million, or 5 percent, from third quarter 2015 due to lower equity investment gains and lower other income, partially offset by gains on deferred compensation plan investments (offset in employee benefits expense) and higher gains on sales of debt securities. Noninterest expense decreased $85 million, or 1 percent, due to a donation to the Wells Fargo Foundation in the prior quarter, as well as lower operating losses, partially offset by higher deferred compensation plan expense (offset in trading revenue), project-related expense, and advertising costs. The provision for credit losses increased $36 million from the prior quarter primarily due to higher net charge-offs.

Net income was down $30 million, or 1 percent, from fourth quarter 2014. Revenue was up $172 million, or 1 percent, compared with a year ago due to higher net interest income, market sensitive revenue, primarily equity investment gains and gains on sale of debt securities, mortgage banking fees, deposit service charges, debit and credit card fees, and trust and investment fees, partially offset by a gain on sale of government guaranteed student loans in the prior year. Noninterest expense decreased $134 million, or 2 percent, from a year ago driven by lower foreclosed assets expense, partially offset by higher equipment expenses and operating losses. The provision for

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credit losses increased $198 million from a year ago as the $48 million improvement in net charge-offs was more than offset by the absence of a reserve release in fourth quarter 2015.

Regional Banking


•	Retail Banking


◦	Primary consumer checking customers⁶ up 5.6 percent year-over-year⁷


◦	Debit card purchase volume⁸ of $73 billion in fourth quarter, up 8 percent year-over-year


◦	Retail Bank household cross-sell ratio⁹ of 6.11 products per household, compared with 6.17 year-over-year⁷


◦	Customers rated their overall experience, satisfaction with visit, and loyalty with Wells Fargo stores at all-time highs based on fourth quarter 2015 survey results


•	Online and Mobile Banking


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


◦	16.2 million active mobile customers, up 14 percent year-over-year⁷

Consumer Lending Group


•	Home Lending


◦	Originations of $47 billion, down from $55 billion in prior quarter


◦	Applications of $64 billion, down from $73 billion in prior quarter


◦	Application pipeline of $29 billion at quarter end, down from $34 billion at September 30, 2015


•	Consumer Credit


◦	Credit card purchase volume of $19 billion in fourth quarter, up 12 percent year-over-year


◦	Credit card penetration in retail banking households rose to 43.4 percent, up from 41.5 percent in prior year


◦	Highest ranking (A- grade) in Corporate Insight assessment of credit card issuer rewards redemption options (December 2015)


◦	Auto originations of $7.6 billion in fourth quarter, down 9 percent from prior quarter and up 13 percent from prior year

⁸ Combined consumer and business debit card purchase volume dollars.

⁹ November 2015 Retail Bank household cross-sell ratio includes the impact of the sale of government guaranteed student loans in fourth quarter 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 $5 million. Products and businesses include Business Banking, Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments and Asset Backed Finance.

Selected Financial Information



	Quarter ended
(in millions)	Dec 31, 2015		Sep 30, 2015	Dec 31, 2014
Total revenue	$	6,559	6,326	6,532
Provision (reversal of provision) for credit losses	126		36	(33	)
Noninterest expense	3,491		3,503	3,533
Segment net income	2,104		1,925	2,095
(in billions)
Average loans	417.0		405.6	369.0
Average assets	755.4		739.1	668.8
Average deposits	449.3		442.0	424.0

Wholesale Banking reported net income of $2.1 billion, up $179 million, or 9 percent, from third quarter 2015. Revenue of $6.6 billion increased $233 million, or 4 percent, from prior quarter. Net interest income increased $100 million, or 3 percent, primarily from broad based loan growth. Noninterest income increased $133 million, or 5 percent, on strong results in commercial real estate related businesses with growth in commercial real estate brokerage, multi-family capital, structured real estate and community lending, as well as higher investment banking fees, equity fund investments gains and crop insurance underwriting gains, partially offset by lower customer accommodation trading revenue. Noninterest expense decreased $12 million as higher variable compensation expenses were more than offset by lower operating losses and foreclosed assets expense. The provision for credit losses increased $90 million from prior quarter due to increased loan losses primarily related to the oil and gas portfolio.

Net income was up $9 million from fourth quarter 2014. Revenue increased $27 million from fourth quarter 2014, on $78 million, or 2 percent, growth in net interest income related to strong loan and deposit growth, offset by a $51 million, or 2 percent, decline in noninterest income. Noninterest income declined as higher commercial real estate brokerage, structured real estate, and multi-family capital results as well as increased equity fund investment gains and higher crop insurance underwriting gains were offset by lower customer accommodation trading revenues, energy portfolio write-downs and lower investment banking fees. Noninterest expense increased $42 million, or 1 percent, from a year ago primarily due to higher personnel expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $159 million from a year ago due to increased loan losses primarily related to the oil and gas portfolio.


•	Average loans increased 13 percent from fourth quarter 2014, on broad-based growth, including asset-backed finance, commercial banking, commercial real estate, corporate banking, equipment finance, and structured real estate

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•	Cross-sell of 7.3 products per relationship, up 0.1 from fourth quarter 2014¹⁰


•	Treasury management revenue up 7 percent from fourth quarter 2014


•	Wells Fargo Treasury Management Services' Wholesale Lockbox Network ranked as fastest in the United States¹¹

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

Selected Financial Information



	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Dec 31, 2014
Total revenue	$	3,947		3,878		3,913
Provision (reversal of provision) for credit losses	(6		)	(6	)	8
Noninterest expense	2,998			2,909		3,066
Segment net income	595			606		519
(in billions)
Average loans	63.0			61.1		54.8
Average assets	197.9			192.6		188.2
Average deposits	177.9			172.6		165.5

Wealth and Investment Management (WIM) reported net income of $595 million, down $11 million, or 2 percent, from third quarter 2015. Revenue of $3.9 billion increased $69 million, or 2 percent, from the prior quarter, primarily from higher gains on deferred compensation plan investments (offset in employee benefits expense) and higher net interest income, partially offset by lower asset-based fees. Noninterest expense increased $89 million, or 3 percent, from the prior quarter, primarily due to higher deferred compensation plan expense, partially offset by lower broker commissions. The provision for credit losses was flat from third quarter 2015.

Net income was up $76 million, or 15 percent, from fourth quarter 2014. Revenue increased $34 million, or 1 percent, from a year ago on growth in net interest income, partially offset by lower asset-based fees. Noninterest expense decreased $68 million, or 2 percent, from a year ago, due to lower broker commissions, as well as lower non-personnel expenses. The provision for credit losses decreased $14 million from a year ago.

Retail Brokerage


•	Client assets of $1.4 trillion, down 2 percent from prior year


•	Managed account assets of $420 billion, down 1 percent from prior year, as lower market valuations were partially offset by net flows

¹⁰ Cross-sell reported on a one-quarter lag and does not reflect Business Banking relationships. Business Banking realigned from Community Banking to Wholesale Banking effective fourth quarter 2015.

¹¹ Based on the 2015 Fall Phoenix-Hecht Mail Study. Phoenix-Hecht network rankings use all provider surveyed sites with an assumed locally disbursed check sample.

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•	Strong loan growth, with average balances up 24 percent from prior year largely due to continued growth in non-conforming mortgage loans and security-based lending

Wealth Management


•	Client assets of $225 billion, flat from prior year


•	Average loan balances up 11 percent over prior year primarily driven by continued growth in non-conforming mortgage loans, commercial loans and security-based lending

Retirement


•	IRA assets of $354 billion, down 2 percent from prior year


•	Institutional Retirement plan assets of $334 billion, down 2 percent from prior year

Asset Management


•	Total assets under management of $490 billion, down $6 billion from fourth quarter 2014 as equity outflows and lower market valuations were partially offset by fixed income net client inflows

Brokerage and Wealth cross-sell ratio of 10.55 products per household, up from 10.49 a year ago⁷

Conference Call

The Company will host a live conference call on Friday, January 15, at 7 a.m. PT (10 a.m. ET). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~011516.

A replay of the conference call will be available beginning at 10 a.m. PT (1 p.m. ET) on Friday, January 15 through Sunday, January 24. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #29684900. The replay will also be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and at https://engage.vevent.com/rt/wells_fargo_ao~011516.

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Forward-Looking Statements

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

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


•	current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and the overall slowdown in global economic growth;


•	our capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms;


•	financial services reform and other current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including the Dodd-Frank Act and other legislation and regulation relating to bank products and services;


•	the extent of our success in our loan modification efforts, as well as the effects of regulatory requirements or guidance regarding loan modifications;


•	the amount of mortgage loan repurchase demands that we receive and our ability to satisfy any such demands without having to repurchase loans related thereto or otherwise indemnify or reimburse third parties, and the credit quality of or losses on such repurchased mortgage loans;


•	negative effects relating to our mortgage servicing and foreclosure practices, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;


•	our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters;


•	the effect of the current low interest rate environment or changes in interest rates on our net interest income, net interest margin and our mortgage originations, mortgage servicing rights and mortgages held for sale;


•	significant turbulence or a disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased

- 13 -

funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our investment securities portfolio;


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


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


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


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


•	fiscal and monetary policies of the Federal Reserve Board; and


•	the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014.

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, 2014, 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.

- 14 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,700 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially.

# # #

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Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS




	Pages

Summary Information
Summary Financial Data	16

Income
Consolidated Statement of Income	18
Consolidated Statement of Comprehensive Income	20
Condensed Consolidated Statement of Changes in Total Equity	20
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	21
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)	23
Noninterest Income and Noninterest Expense	24

Balance Sheet
Consolidated Balance Sheet	27
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
Pick-A-Pay Portfolio	33
Non-Strategic and Liquidating Loan Portfolios	33
Changes in Allowance for Credit Losses	34

Equity
Common Equity Tier 1 Under Basel III	36

Operating Segments
Operating Segment Results	37

Other
Mortgage Servicing and other related data	39

- 16 -

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA



	Quarter ended					% Change Dec 31, 2015 from				Year ended
($ in millions, except per share amounts)	Dec 31, 2015			Sep 30, 2015	Dec 31, 2014	Sep 30, 2015		Dec 31, 2014		Dec 31, 2015		Dec 31, 2014	% Change
For the Period
Wells Fargo net income	$	5,709		5,796	5,709	(2	)%	—		$	23,028	23,057	—	%
Wells Fargo net income applicable to common stock	5,337			5,443	5,382	(2	)	(1	)	21,604		21,821	(1	)
Diluted earnings per common share	1.03			1.05	1.02	(2	)	1		4.15		4.10	1
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.27		%	1.32	1.36	(4	)	(7	)	1.32		1.45	(9	)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	12.23			12.62	12.84	(3	)	(5	)	12.68		13.41	(5	)
Efficiency ratio (1)	57.4			56.7	59.0	1		(3	)	57.8		58.1	(1	)
Total revenue	$	21,586		21,875	21,443	(1	)	1		$	86,057	84,347	2
Pre-tax pre-provision profit (PTPP) (2)	9,187			9,476	8,796	(3	)	4		36,283		35,310	3
Dividends declared per common share	0.375			0.375	0.35	—		7		1.475		1.35	9
Average common shares outstanding	5,108.5			5,125.8	5,192.5	—		(2	)	5,136.5		5,237.2	(2	)
Diluted average common shares outstanding	5,177.9			5,193.8	5,279.2	—		(2	)	5,209.8		5,324.4	(2	)
Average loans	$	912,280		895,095	849,429	2		7		$	885,432	834,432	6
Average assets	1,787,287			1,746,402	1,663,760	2		7		1,742,919		1,593,349	9
Average total deposits	1,216,809			1,198,874	1,149,796	1		6		1,194,073		1,114,144	7
Average consumer and small business banking deposits (3)	696,484			683,245	648,659	2		7		680,221		639,196	6
Net interest margin	2.92		%	2.96	3.04	(1	)	(4	)	2.95		3.11	(5	)
At Period End
Investment securities	$	347,555		345,074	312,925	1		11		$	347,555	312,925	11
Loans	916,559			903,233	862,551	1		6		916,559		862,551	6
Allowance for loan losses	11,545			11,659	12,319	(1	)	(6	)	11,545		12,319	(6	)
Goodwill	25,529			25,684	25,705	(1	)	(1	)	25,529		25,705	(1	)
Assets	1,787,632			1,751,265	1,687,155	2		6		1,787,632		1,687,155	6
Deposits	1,223,312			1,202,179	1,168,310	2		5		1,223,312		1,168,310	5
Common stockholders' equity	172,170			172,089	166,433	—		3		172,170		166,433	3
Wells Fargo stockholders’ equity	193,132			193,051	184,394	—		5		193,132		184,394	5
Total equity	194,025			194,043	185,262	—		5		194,025		185,262	5
Common shares outstanding	5,092.1			5,108.5	5,170.3	—		(2	)	5,092.1		5,170.3	(2	)
Book value per common share (4)	$	33.81		33.69	32.19	—		5		$	33.81	32.19	5
Common stock price:
High	56.34			58.77	55.95	(4	)	1		58.77		55.95	5
Low	49.51			47.75	46.44	4		7		47.75		44.17	8
Period end	54.36			51.35	54.82	6		(1	)	54.36		54.82	(1	)
Team members (active, full-time equivalent)	264,700			265,200	264,500	—		—		264,700		264,500	—


(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)	Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.


(4)	Book value per common share is common stockholders' equity divided by common shares outstanding.

- 17 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA



	Quarter ended
($ in millions, except per share amounts)	Dec 31, 2015			Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
For the Quarter
Wells Fargo net income	$	5,709		5,796	5,719	5,804	5,709
Wells Fargo net income applicable to common stock	5,337			5,443	5,363	5,461	5,382
Diluted earnings per common share	1.03			1.05	1.03	1.04	1.02
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)	1.27		%	1.32	1.33	1.38	1.36
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)	12.23			12.62	12.71	13.17	12.84
Efficiency ratio (1)	57.4			56.7	58.5	58.8	59.0
Total revenue	$	21,586		21,875	21,318	21,278	21,443
Pre-tax pre-provision profit (PTPP) (2)	9,187			9,476	8,849	8,771	8,796
Dividends declared per common share	0.375			0.375	0.375	0.35	0.35
Average common shares outstanding	5,108.5			5,125.8	5,151.9	5,160.4	5,192.5
Diluted average common shares outstanding	5,177.9			5,193.8	5,220.5	5,243.6	5,279.2
Average loans	$	912,280		895,095	870,446	863,261	849,429
Average assets	1,787,287			1,746,402	1,729,278	1,707,798	1,663,760
Average total deposits	1,216,809			1,198,874	1,185,304	1,174,793	1,149,796
Average consumer and small business banking deposits (3)	696,484			683,245	674,889	665,896	648,659
Net interest margin	2.92		%	2.96	2.97	2.95	3.04
At Quarter End
Investment securities	$	347,555		345,074	340,769	324,736	312,925
Loans	916,559			903,233	888,459	861,231	862,551
Allowance for loan losses	11,545			11,659	11,754	12,176	12,319
Goodwill	25,529			25,684	25,705	25,705	25,705
Assets	1,787,632			1,751,265	1,720,617	1,737,737	1,687,155
Deposits	1,223,312			1,202,179	1,185,828	1,196,663	1,168,310
Common stockholders' equity	172,170			172,089	169,596	168,834	166,433
Wells Fargo stockholders’ equity	193,132			193,051	189,558	188,796	184,394
Total equity	194,025			194,043	190,676	189,964	185,262
Common shares outstanding	5,092.1			5,108.5	5,145.2	5,162.9	5,170.3
Book value per common share (4)	$	33.81		33.69	32.96	32.70	32.19
Common stock price:
High	56.34			58.77	58.26	56.29	55.95
Low	49.51			47.75	53.56	50.42	46.44
Period end	54.36			51.35	56.24	54.40	54.82
Team members (active, full-time equivalent)	264,700			265,200	265,800	266,000	264,500


(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)	Consumer and small business banking deposits are total deposits excluding mortgage escrow and wholesale deposits.


(4)	Book value per common share is common stockholders' equity divided by common shares outstanding.

- 18 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME



	Quarter ended December 31,			%		Year ended December 31,			%
(in millions, except per share amounts)	2015		2014	Change		2015		2014	Change
Interest income
Trading assets	$	558	477	17	%	$	1,971	1,685	17	%
Investment securities	2,323		2,150	8		8,937		8,438	6
Mortgages held for sale	176		187	(6	)	785		767	2
Loans held for sale	5		25	(80	)	19		78	(76	)
Loans	9,323		9,091	3		36,575		35,652	3
Other interest income	258		253	2		990		932	6
Total interest income	12,643		12,183	4		49,277		47,552	4
Interest expense
Deposits	241		269	(10	)	963		1,096	(12	)
Short-term borrowings	13		18	(28	)	64		59	8
Long-term debt	713		620	15		2,592		2,488	4
Other interest expense	88		96	(8	)	357		382	(7	)
Total interest expense	1,055		1,003	5		3,976		4,025	(1	)
Net interest income	11,588		11,180	4		45,301		43,527	4
Provision for credit losses	831		485	71		2,442		1,395	75
Net interest income after provision for credit losses	10,757		10,695	1		42,859		42,132	2
Noninterest income
Service charges on deposit accounts	1,329		1,241	7		5,168		5,050	2
Trust and investment fees	3,511		3,705	(5	)	14,468		14,280	1
Card fees	966		925	4		3,720		3,431	8
Other fees	1,040		1,124	(7	)	4,324		4,349	(1	)
Mortgage banking	1,660		1,515	10		6,501		6,381	2
Insurance	427		382	12		1,694		1,655	2
Net gains from trading activities	99		179	(45	)	614		1,161	(47	)
Net gains on debt securities	346		186	86		952		593	61
Net gains from equity investments	423		372	14		2,230		2,380	(6	)
Lease income	145		127	14		621		526	18
Other	52		507	(90	)	464		1,014	(54	)
Total noninterest income	9,998		10,263	(3	)	40,756		40,820	—
Noninterest expense
Salaries	4,061		3,938	3		15,883		15,375	3
Commission and incentive compensation	2,457		2,582	(5	)	10,352		9,970	4
Employee benefits	1,042		1,124	(7	)	4,446		4,597	(3	)
Equipment	640		581	10		2,063		1,973	5
Net occupancy	725		730	(1	)	2,886		2,925	(1	)
Core deposit and other intangibles	311		338	(8	)	1,246		1,370	(9	)
FDIC and other deposit assessments	258		231	12		973		928	5
Other	2,905		3,123	(7	)	11,925		11,899	—
Total noninterest expense	12,399		12,647	(2	)	49,774		49,037	2
Income before income tax expense	8,356		8,311	1		33,841		33,915	—
Income tax expense	2,599		2,519	3		10,431		10,307	1
Net income before noncontrolling interests	5,757		5,792	(1	)	23,410		23,608	(1	)
Less: Net income from noncontrolling interests	48		83	(42	)	382		551	(31	)
Wells Fargo net income	$	5,709	5,709	—		$	23,028	23,057	—
Less: Preferred stock dividends and other	372		327	14		1,424		1,236	15
Wells Fargo net income applicable to common stock	$	5,337	5,382	(1	)	$	21,604	21,821	(1	)
Per share information
Earnings per common share	$	1.05	1.04	1		$	4.21	4.17	1
Diluted earnings per common share	1.03		1.02	1		4.15		4.10	1
Dividends declared per common share	0.375		0.35	7		1.475		1.35	9
Average common shares outstanding	5,108.5		5,192.5	(2	)	5,136.5		5,237.2	(2	)
Diluted average common shares outstanding	5,177.9		5,279.2	(2	)	5,209.8		5,324.4	(2	)

- 19 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME



	Quarter ended
(in millions, except per share amounts)	Dec 31, 2015		Sep 30, 2015		Jun 30, 2015		Mar 31, 2015	Dec 31, 2014
Interest income
Trading assets	$	558	485		483		445	477
Investment securities	2,323		2,289		2,181		2,144	2,150
Mortgages held for sale	176		223		209		177	187
Loans held for sale	5		4		5		5	25
Loans	9,323		9,216		9,098		8,938	9,091
Other interest income	258		228		250		254	253
Total interest income	12,643		12,445		12,226		11,963	12,183
Interest expense
Deposits	241		232		232		258	269
Short-term borrowings	13		12		21		18	18
Long-term debt	713		655		620		604	620
Other interest expense	88		89		83		97	96
Total interest expense	1,055		988		956		977	1,003
Net interest income	11,588		11,457		11,270		10,986	11,180
Provision for credit losses	831		703		300		608	485
Net interest income after provision for credit losses	10,757		10,754		10,970		10,378	10,695
Noninterest income
Service charges on deposit accounts	1,329		1,335		1,289		1,215	1,241
Trust and investment fees	3,511		3,570		3,710		3,677	3,705
Card fees	966		953		930		871	925
Other fees	1,040		1,099		1,107		1,078	1,124
Mortgage banking	1,660		1,589		1,705		1,547	1,515
Insurance	427		376		461		430	382
Net gains (losses) from trading activities	99		(26	)	133		408	179
Net gains on debt securities	346		147		181		278	186
Net gains from equity investments	423		920		517		370	372
Lease income	145		189		155		132	127
Other	52		266		(140	)	286	507
Total noninterest income	9,998		10,418		10,048		10,292	10,263
Noninterest expense
Salaries	4,061		4,035		3,936		3,851	3,938
Commission and incentive compensation	2,457		2,604		2,606		2,685	2,582
Employee benefits	1,042		821		1,106		1,477	1,124
Equipment	640		459		470		494	581
Net occupancy	725		728		710		723	730
Core deposit and other intangibles	311		311		312		312	338
FDIC and other deposit assessments	258		245		222		248	231
Other	2,905		3,196		3,107		2,717	3,123
Total noninterest expense	12,399		12,399		12,469		12,507	12,647
Income before income tax expense	8,356		8,773		8,549		8,163	8,311
Income tax expense	2,599		2,790		2,763		2,279	2,519
Net income before noncontrolling interests	5,757		5,983		5,786		5,884	5,792
Less: Net income from noncontrolling interests	48		187		67		80	83
Wells Fargo net income	$	5,709	5,796		5,719		5,804	5,709
Less: Preferred stock dividends and other	372		353		356		343	327
Wells Fargo net income applicable to common stock	$	5,337	5,443		5,363		5,461	5,382
Per share information
Earnings per common share	$	1.05	1.06		1.04		1.06	1.04
Diluted earnings per common share	1.03		1.05		1.03		1.04	1.02
Dividends declared per common share	0.375		0.375		0.375		0.35	0.35
Average common shares outstanding	5,108.5		5,125.8		5,151.9		5,160.4	5,192.5
Diluted average common shares outstanding	5,177.9		5,193.8		5,220.5		5,243.6	5,279.2

- 20 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



	Quarter ended Dec 31,					%	Year ended Dec 31,					%
(in millions)	2015			2014		Change	2015			2014		Change
Wells Fargo net income	$	5,709		5,709		—%	$	23,028		23,057		—%
Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains (losses) arising during the period	(1,301		)	1,560		NM	(3,318		)	5,426		NM
Reclassification of net gains to net income	(573		)	(327	)	75	(1,530		)	(1,532	)	—
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period	(684		)	730		NM	1,549			952		63
Reclassification of net gains on cash flow hedges to net income	(294		)	(197	)	49	(1,089		)	(545	)	100
Defined benefit plans adjustments:
Net actuarial losses arising during the period	(501		)	(1,104	)	(55)	(512		)	(1,116	)	(54)
Amortization of net actuarial loss, settlements and other to net income	11			18		(39)	114			74		54
Foreign currency translation adjustments:
Net unrealized losses arising during the period	(33		)	(28	)	18	(137		)	(60	)	128
Reclassification of net (gains) losses to net income	(5		)	—		NM	(5		)	6		NM
Other comprehensive income (loss), before tax	(3,380		)	652		NM	(4,928		)	3,205		NM
Income tax (expense) benefit related to other comprehensive income	1,230			(213	)	NM	1,774			(1,300	)	NM
Other comprehensive income (loss), net of tax	(2,150		)	439		NM	(3,154		)	1,905		NM
Less: Other comprehensive income (loss) from noncontrolling interests	(58		)	39		NM	67			(227	)	NM
Wells Fargo other comprehensive income (loss), net of tax	(2,092		)	400		NM	(3,221		)	2,132		NM
Wells Fargo comprehensive income	3,617			6,109		(41)	19,807			25,189		(21)
Comprehensive income (loss) from noncontrolling interests	(10		)	122		NM	449			324		39
Total comprehensive income	$	3,607		6,231		(42)	$	20,256		25,513		(21)

NM - Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY



	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Balance, beginning of period	$	194,043		190,676		189,964		185,262		182,990
Wells Fargo net income	5,709			5,796		5,719		5,804		5,709
Wells Fargo other comprehensive income (loss), net of tax	(2,092		)	321		(1,709	)	259		400
Noncontrolling interests	(100		)	(123	)	(51	)	301		353
Common stock issued	310			505		502		1,327		508
Common stock repurchased (1)	(1,974		)	(2,137	)	(1,994	)	(2,592	)	(2,945	)
Preferred stock released by ESOP	210			225		349		41		166
Common stock warrants repurchased/exercised	—			(17	)	(24	)	(8	)	(9	)
Preferred stock issued	—			975		—		1,997		—
Common stock dividends	(1,917		)	(1,926	)	(1,932	)	(1,805	)	(1,816	)
Preferred stock dividends	(371		)	(356	)	(355	)	(344	)	(327	)
Tax benefit from stock incentive compensation	22			22		55		354		75
Stock incentive compensation expense	204			98		166		376		176
Net change in deferred compensation and related plans	(19		)	(16	)	(14	)	(1,008	)	(18	)
Balance, end of period	$	194,025		194,043		190,676		189,964		185,262

(1)

For the quarter ended December 31, 2015, includes $500 million related to a private forward repurchase transaction that settled in first quarter 2016 for 9.2 million shares of common stock. For the quarters ended June 30 and March 31, 2015, and December 31, 2014, includes $750 million each quarter related to private forward repurchase transactions that settled in subsequent quarters for 13.6 million, 14.0 million, and 14.3 million shares of common stock, respectively.

- 21 -

Wells Fargo & Company and Subsidiaries

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



	Quarter ended December 31,
	2015							2014
(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	$	274,589		0.28	%	$	195	268,109		0.28	%	$	188
Trading assets	68,833			3.33		573		60,383		3.21		485
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	34,617			1.58		137		19,506		1.55		76
Securities of U.S. states and political subdivisions	49,300			4.37		539		43,891		4.30		472
Mortgage-backed securities:
Federal agencies	102,281			2.79		712		109,270		2.78		760
Residential and commercial	21,502			5.51		297		24,711		5.89		364
Total mortgage-backed securities	123,783			3.26		1,009		133,981		3.36		1,124
Other debt and equity securities	52,701			3.35		444		44,980		3.87		438
Total available-for-sale securities	260,401			3.27		2,129		242,358		3.48		2,110
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,656			2.18		246		32,930		2.25		187
Securities of U.S. states and political subdivisions	2,158			6.07		33		902		4.92		11
Federal agency mortgage-backed securities	28,185			2.42		170		5,586		2.07		29
Other debt securities	4,876			1.77		22		6,118		1.81		27
Total held-to-maturity securities	79,875			2.35		471		45,536		2.22		254
Total investment securities	340,276			3.05		2,600		287,894		3.28		2,364
Mortgages held for sale (4)	19,189			3.66		176		19,191		3.90		187
Loans held for sale (4)	363			4.96		5		6,968		1.43		25
Loans:
Commercial:
Commercial and industrial - U.S.	250,445			3.25		2,048		218,297		3.32		1,825
Commercial and industrial - Non U.S.	47,972			1.97		239		43,049		2.03		221
Real estate mortgage	121,844			3.30		1,012		112,277		3.69		1,044
Real estate construction	21,993			3.27		182		18,336		4.33		200
Lease financing	12,241			4.48		136		12,268		5.35		164
Total commercial	454,495			3.16		3,617		404,227		3.39		3,454
Consumer:
Real estate 1-4 family first mortgage	272,871			4.04		2,759		264,799		4.16		2,754
Real estate 1-4 family junior lien mortgage	53,788			4.28		579		60,177		4.28		648
Credit card	32,795			11.61		960		29,477		11.71		870
Automobile	59,505			5.74		862		55,457		6.08		849
Other revolving credit and installment	38,826			5.83		571		35,292		6.01		534
Total consumer	457,785			4.99		5,731		445,202		5.06		5,655
Total loans (4)	912,280			4.08		9,348		849,429		4.27		9,109
Other	5,166			4.82		61		4,829		5.30		64
Total earning assets	$	1,620,696		3.18	%	$	12,958	1,496,803		3.31	%	$	12,422
Funding sources
Deposits:
Interest-bearing checking	$	39,082		0.05	%	$	5	40,498		0.06	%	$	6
Market rate and other savings	640,503			0.06		93		593,940		0.07		99
Savings certificates	29,654			0.54		41		35,870		0.80		72
Other time deposits	49,806			0.52		64		56,119		0.39		55
Deposits in foreign offices	107,094			0.14		38		99,289		0.15		37
Total interest-bearing deposits	866,139			0.11		241		825,716		0.13		269
Short-term borrowings	102,915			0.05		12		64,676		0.12		19
Long-term debt	190,861			1.49		713		183,286		1.35		620
Other liabilities	16,453			2.14		88		15,580		2.44		96
Total interest-bearing liabilities	1,176,368			0.36		1,054		1,089,258		0.37		1,004
Portion of noninterest-bearing funding sources	444,328							407,545		—		—
Total funding sources	$	1,620,696		0.26		1,054		1,496,803		0.27		1,004
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.92	%	$	11,904			3.04	%	$	11,418
Noninterest-earning assets
Cash and due from banks	$	17,804						16,932
Goodwill	25,580							25,705
Other	123,207							124,320
Total noninterest-earning assets	$	166,591						166,957
Noninterest-bearing funding sources
Deposits	$	350,670						324,080
Other liabilities	65,223							65,672
Total equity	195,026							184,750
Noninterest-bearing funding sources used to fund earning assets	(444,328		)					(407,545	)
Net noninterest-bearing funding sources	$	166,591						166,957
Total assets	$	1,787,287						1,663,760


(1)	Our average prime rate was 3.29% and 3.25% for the quarters ended December 31, 2015 and 2014, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.41% and 0.24% for the same quarters, respectively.


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


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


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


(5)	Includes taxable-equivalent adjustments of $316 million and $238 million for the quarters ended December 31, 2015 and 2014, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

- 22 -

Wells Fargo & Company and Subsidiaries

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



	Year ended December 31,
	2015							2014
(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	$	266,832		0.28	%	$	738	241,282		0.28	%	$	673
Trading assets	66,679			3.01		2,010		55,140		3.10		1,712
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	32,093			1.58		505		10,400		1.64		171
Securities of U.S. states and political subdivisions	47,404			4.23		2,007		43,138		4.29		1,852
Mortgage-backed securities:
Federal agencies	100,218			2.73		2,733		114,076		2.84		3,235
Residential and commercial	22,490			5.73		1,289		26,475		6.03		1,597
Total mortgage-backed securities	122,708			3.28		4,022		140,551		3.44		4,832
Other debt and equity securities	49,752			3.42		1,701		47,488		3.66		1,741
Total available-for-sale securities	251,957			3.27		8,235		241,577		3.56		8,596
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,173			2.19		968		17,239		2.23		385
Securities of U.S. states and political subdivisions	2,087			5.40		113		246		4.93		12
Federal agency mortgage-backed securities	21,967			2.23		489		5,921		2.55		151
Other debt securities	5,821			1.73		101		5,913		1.85		109
Total held-to-maturity securities	74,048			2.26		1,671		29,319		2.24		657
Total investment securities	326,005			3.04		9,906		270,896		3.42		9,253
Mortgages held for sale (4)	21,603			3.63		785		19,018		4.03		767
Loans held for sale (4)	573			3.25		19		4,226		1.85		78
Loans:
Commercial:
Commercial and industrial - U.S.	237,844			3.29		7,836		204,819		3.35		6,869
Commercial and industrial - Non U.S.	46,028			1.90		877		42,661		2.03		867
Real estate mortgage	116,893			3.41		3,984		112,710		3.64		4,100
Real estate construction	20,979			3.57		749		17,676		4.21		744
Lease financing	12,301			4.70		577		12,257		5.63		690
Total commercial	434,045			3.23		14,023		390,123		3.40		13,270
Consumer:
Real estate 1-4 family first mortgage	268,560			4.10		11,002		261,620		4.19		10,961
Real estate 1-4 family junior lien mortgage	56,242			4.25		2,391		62,510		4.30		2,686
Credit card	31,307			11.70		3,664		27,491		11.98		3,294
Automobile	57,766			5.84		3,374		53,854		6.27		3,377
Other revolving credit and installment	37,512			5.89		2,209		38,834		5.48		2,127
Total consumer	451,387			5.02		22,640		444,309		5.05		22,445
Total loans (4)	885,432			4.14		36,663		834,432		4.28		35,715
Other	4,947			5.11		252		4,673		5.54		259
Total earning assets	$	1,572,071		3.20	%	$	50,373	1,429,667		3.39	%	$	48,457
Funding sources
Deposits:
Interest-bearing checking	$	38,640		0.05	%	$	20	39,729		0.07	%	$	26
Market rate and other savings	625,549			0.06		367		585,854		0.07		403
Savings certificates	31,887			0.63		201		38,111		0.85		323
Other time deposits	51,790			0.45		232		51,434		0.40		207
Deposits in foreign offices	107,138			0.13		143		95,889		0.14		137
Total interest-bearing deposits	855,004			0.11		963		811,017		0.14		1,096
Short-term borrowings	87,465			0.07		64		60,111		0.10		62
Long-term debt	185,078			1.40		2,592		167,420		1.49		2,488
Other liabilities	16,545			2.15		357		14,401		2.65		382
Total interest-bearing liabilities	1,144,092			0.35		3,976		1,052,949		0.38		4,028
Portion of noninterest-bearing funding sources	427,979			—		—		376,718		—		—
Total funding sources	$	1,572,071		0.25		3,976		1,429,667		0.28		4,028
Net interest margin and net interest income on a taxable-equivalent basis (5)				2.95	%	$	46,397			3.11	%	$	44,429
Noninterest-earning assets
Cash and due from banks	$	17,327						16,361
Goodwill	25,673							25,687
Other	127,848							121,634
Total noninterest-earning assets	$	170,848						163,682
Noninterest-bearing funding sources
Deposits	$	339,069						303,127
Other liabilities	68,174							56,985
Total equity	191,584							180,288
Noninterest-bearing funding sources used to fund earning assets	(427,979		)					(376,718	)
Net noninterest-bearing funding sources	$	170,848						163,682
Total assets	$	1,742,919						1,593,349


(1)	Our average prime rate was 3.26% and 3.25% for the year ended December 31, 2015 and 2014, respectively. The average three-month London Interbank Offered Rate (LIBOR) was 0.32% and 0.23% for the same periods, respectively.


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


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


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


(5)	Includes taxable-equivalent adjustments of $1.1 billion and $902 million for the year ended December 31, 2015 and 2014, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

- 23 -

Wells Fargo & Company and Subsidiaries

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



	Quarter ended
	Dec 31, 2015					Sep 30, 2015					Jun 30, 2015					Mar 31, 2015					Dec 31, 2014
($ 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	$	274.6		0.28	%	$	250.1		0.26	%	$	267.1		0.28	%	$	275.7		0.28	%	$	268.1		0.28	%
Trading assets	68.8			3.33		67.2			2.93		67.6			2.91		63.0			2.88		60.4			3.21
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	34.6			1.58		35.7			1.59		31.7			1.58		26.2			1.55		19.5			1.55
Securities of U.S. states and political subdivisions	49.3			4.37		48.2			4.22		47.1			4.13		44.9			4.20		43.9			4.30
Mortgage-backed securities:
Federal agencies	102.3			2.79		98.4			2.70		98.0			2.65		102.2			2.76		109.3			2.78
Residential and commercial	21.5			5.51		21.9			5.84		22.7			5.84		23.9			5.71		24.7			5.89
Total mortgage-backed securities	123.8			3.26		120.3			3.27		120.7			3.25		126.1			3.32		134.0			3.36
Other debt and equity securities	52.7			3.35		50.4			3.40		48.8			3.51		47.1			3.43		45.0			3.87
Total available-for-sale securities	260.4			3.27		254.6			3.24		248.3			3.25		244.3			3.32		242.4			3.48
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44.7			2.18		44.6			2.18		44.5			2.19		42.9			2.21		32.9			2.25
Securities of U.S. states and political subdivisions	2.1			6.07		2.2			5.17		2.1			5.17		1.9			5.16		0.9			4.92
Federal agency mortgage-backed securities	28.2			2.42		27.1			2.38		21.0			2.00		11.3			1.87		5.6			2.07
Other debt securities	4.9			1.77		5.4			1.75		6.3			1.70		6.8			1.72		6.1			1.81
Total held-to-maturity securities	79.9			2.35		79.3			2.30		73.9			2.18		62.9			2.19		45.5			2.22
Total investment securities	340.3			3.05		333.9			3.02		322.2			3.01		307.2			3.08		287.9			3.28
Mortgages held for sale	19.2			3.66		24.2			3.69		23.5			3.57		19.6			3.61		19.2			3.90
Loans held for sale	0.4			4.96		0.6			2.57		0.7			3.51		0.7			2.67		7.0			1.43
Loans:
Commercial:
Commercial and industrial - U.S.	250.5			3.25		241.4			3.30		231.5			3.36		227.7			3.28		218.3			3.32
Commercial and industrial - Non U.S.	48.0			1.97		45.9			1.83		45.1			1.93		45.1			1.88		43.0			2.03
Real estate mortgage	121.8			3.30		121.0			3.31		113.1			3.48		111.5			3.57		112.3			3.69
Real estate construction	22.0			3.27		21.6			3.39		20.8			4.12		19.5			3.52		18.3			4.33
Lease financing	12.2			4.48		12.3			4.18		12.4			5.16		12.3			4.95		12.3			5.35
Total commercial	454.5			3.16		442.2			3.18		422.9			3.33		416.1			3.26		404.2			3.39
Consumer:
Real estate 1-4 family first mortgage	272.9			4.04		269.4			4.10		266.0			4.12		265.8			4.13		264.8			4.16
Real estate 1-4 family junior lien mortgage	53.8			4.28		55.3			4.22		57.0			4.23		58.9			4.27		60.2			4.28
Credit card	32.8			11.61		31.7			11.73		30.4			11.69		30.4			11.78		29.5			11.71
Automobile	59.5			5.74		58.5			5.80		57.0			5.88		56.0			5.95		55.4			6.08
Other revolving credit and installment	38.8			5.83		38.0			5.84		37.1			5.88		36.1			6.01		35.3			6.01
Total consumer	457.8			4.99		452.9			5.01		447.5			5.02		447.2			5.05		445.2			5.06
Total loans	912.3			4.08		895.1			4.11		870.4			4.20		863.3			4.19		849.4			4.27
Other	5.1			4.82		5.0			5.11		4.8			5.14		4.7			5.41		4.8			5.30
Total earning assets	$	1,620.7		3.18	%	$	1,576.1		3.21	%	$	1,556.3		3.22	%	$	1,534.2		3.21	%	$	1,496.8		3.31	%
Funding sources
Deposits:
Interest-bearing checking	$	39.1		0.05	%	$	37.8		0.05	%	$	38.6		0.05	%	$	39.2		0.05	%	$	40.5		0.06	%
Market rate and other savings	640.5			0.06		628.1			0.06		619.8			0.06		613.4			0.06		593.9			0.07
Savings certificates	29.6			0.54		30.9			0.58		32.5			0.63		34.6			0.75		35.9			0.80
Other time deposits	49.8			0.52		48.7			0.46		52.2			0.42		56.5			0.39		56.1			0.39
Deposits in foreign offices	107.1			0.14		111.5			0.13		104.3			0.13		105.5			0.14		99.3			0.15
Total interest-bearing deposits	866.1			0.11		857.0			0.11		847.4			0.11		849.2			0.12		825.7			0.13
Short-term borrowings	102.9			0.05		90.4			0.06		84.5			0.09		71.7			0.11		64.7			0.12
Long-term debt	190.9			1.49		180.6			1.45		185.1			1.34		183.8			1.32		183.3			1.35
Other liabilities	16.5			2.14		16.4			2.13		16.4			2.03		16.9			2.30		15.6			2.44
Total interest-bearing liabilities	1,176.4			0.36		1,144.4			0.34		1,133.4			0.34		1,121.6			0.35		1,089.3			0.37
Portion of noninterest-bearing funding sources	444.3			—		431.7			—		422.9			—		412.6			—		407.5			—
Total funding sources	$	1,620.7		0.26		$	1,576.1		0.25		$	1,556.3		0.25		$	1,534.2		0.26		$	1,496.8		0.27
Net interest margin on a taxable-equivalent basis				2.92	%				2.96	%				2.97	%				2.95	%				3.04	%
Noninterest-earning assets
Cash and due from banks	$	17.8				17.0					17.5					17.1					16.9
Goodwill	25.6					25.7					25.7					25.7					25.7
Other	123.2					127.6					129.8					130.8					124.4
Total noninterest-earnings assets	$	166.6				170.3					173.0					173.6					167.0
Noninterest-bearing funding sources
Deposits	$	350.7				341.9					337.9					325.6					324.1
Other liabilities	65.2					67.9					67.6					72.0					65.7
Total equity	195.0					192.2					190.4					188.6					184.7
Noninterest-bearing funding sources used to fund earning assets	(444.3		)			(431.7		)			(422.9		)			(412.6		)			(407.5		)
Net noninterest-bearing funding sources	$	166.6				170.3					173.0					173.6					167.0
Total assets	$	1,787.3				1,746.4					1,729.3					1,707.8					1,663.8


(1)	Our average prime rate was 3.29% for the quarter ended December 31, 2015, and 3.25% for the quarters ended September 30, June 30 and March 31, 2015, and December 31, 2014. The average three-month London Interbank Offered Rate (LIBOR) was 0.41%, 0.31%, 0.28%, 0.26% and 0.24% for the same quarters, respectively.


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


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

- 24 -

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME



	Quarter ended Dec 31,				%		Year ended Dec 31,				%
(in millions)	2015			2014	Change		2015			2014	Change
Service charges on deposit accounts	$	1,329		1,241	7	%	$	5,168		5,050	2	%
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,288			2,335	(2	)	9,435			9,183	3
Trust and investment management	838			849	(1	)	3,394			3,387	—
Investment banking	385			521	(26	)	1,639			1,710	(4	)
Total trust and investment fees	3,511			3,705	(5	)	14,468			14,280	1
Card fees	966			925	4		3,720			3,431	8
Other fees:
Charges and fees on loans	308			311	(1	)	1,228			1,316	(7	)
Merchant processing fees (1)	18			187	(90	)	607			726	(16	)
Cash network fees	129			125	3		522			507	3
Commercial real estate brokerage commissions	224			155	45		618			469	32
Letters of credit fees	86			102	(16	)	353			390	(9	)
All other fees	275			244	13		996			941	6
Total other fees	1,040			1,124	(7	)	4,324			4,349	(1	)
Mortgage banking:
Servicing income, net	730			685	7		2,441			3,337	(27	)
Net gains on mortgage loan origination/sales activities	930			830	12		4,060			3,044	33
Total mortgage banking	1,660			1,515	10		6,501			6,381	2
Insurance	427			382	12		1,694			1,655	2
Net gains from trading activities	99			179	(45	)	614			1,161	(47	)
Net gains on debt securities	346			186	86		952			593	61
Net gains from equity investments	423			372	14		2,230			2,380	(6	)
Lease income	145			127	14		621			526	18
Life insurance investment income	139			145	(4	)	579			558	4
All other (1)	(87		)	362	NM		(115		)	456	NM
Total	$	9,998		10,263	(3	)	$	40,756		40,820	—
NM - Not meaningful
(1) Reflects deconsolidation of the Company's merchant services joint venture in fourth quarter 2015. The Company’s proportionate share of earnings is now reflected in all
other income.

NONINTEREST EXPENSE
	Quarter ended Dec 31,				%		Year ended Dec 31,				%
(in millions)	2015			2014	Change		2015			2014	Change
Salaries	$	4,061		3,938	3	%	$	15,883		15,375	3	%
Commission and incentive compensation	2,457			2,582	(5	)	10,352			9,970	4
Employee benefits	1,042			1,124	(7	)	4,446			4,597	(3	)
Equipment	640			581	10		2,063			1,973	5
Net occupancy	725			730	(1	)	2,886			2,925	(1	)
Core deposit and other intangibles	311			338	(8	)	1,246			1,370	(9	)
FDIC and other deposit assessments	258			231	12		973			928	5
Outside professional services	827			800	3		2,665			2,689	(1	)
Operating losses	332			309	7		1,671			1,249	34
Outside data processing	205			270	(24	)	985			1,034	(5	)
Contract services	266			245	9		978			975	—
Postage, stationery and supplies	177			190	(7	)	702			733	(4	)
Travel and entertainment	196			216	(9	)	692			904	(23	)
Advertising and promotion	184			195	(6	)	606			653	(7	)
Insurance	57			60	(5	)	448			422	6
Telecommunications	106			106	—		439			453	(3	)
Foreclosed assets	20			164	(88	)	381			583	(35	)
Operating leases	73			58	26		278			220	26

- 25 -



All other	462		510	(9	)	2,080		1,984	5
Total	$	12,399	12,647	(2	)	$	49,774	49,037	2

- 26 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME



	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015	Dec 31, 2014
Service charges on deposit accounts	$	1,329		1,335		1,289		1,215	1,241
Trust and investment fees:
Brokerage advisory, commissions and other fees	2,288			2,368		2,399		2,380	2,335
Trust and investment management	838			843		861		852	849
Investment banking	385			359		450		445	521
Total trust and investment fees	3,511			3,570		3,710		3,677	3,705
Card fees	966			953		930		871	925
Other fees:
Charges and fees on loans	308			307		304		309	311
Merchant processing fees (1)	18			200		202		187	187
Cash network fees	129			136		132		125	125
Commercial real estate brokerage commissions	224			124		141		129	155
Letters of credit fees	86			89		90		88	102
All other fees	275			243		238		240	244
Total other fees	1,040			1,099		1,107		1,078	1,124
Mortgage banking:
Servicing income, net	730			674		514		523	685
Net gains on mortgage loan origination/sales activities	930			915		1,191		1,024	830
Total mortgage banking	1,660			1,589		1,705		1,547	1,515
Insurance	427			376		461		430	382
Net gains (losses) from trading activities	99			(26	)	133		408	179
Net gains on debt securities	346			147		181		278	186
Net gains from equity investments	423			920		517		370	372
Lease income	145			189		155		132	127
Life insurance investment income	139			150		145		145	145
All other (1)	(87		)	116		(285	)	141	362
Total	$	9,998		10,418		10,048		10,292	10,263

(1) Reflects deconsolidation of the Company's merchant services joint venture in fourth quarter 2015. The Company’s proportionate share of earnings is now reflected in all
other income.
FIVE QUARTER NONINTEREST EXPENSE
	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015	Dec 31, 2014
Salaries	$	4,061		4,035		3,936		3,851	3,938
Commission and incentive compensation	2,457			2,604		2,606		2,685	2,582
Employee benefits	1,042			821		1,106		1,477	1,124
Equipment	640			459		470		494	581
Net occupancy	725			728		710		723	730
Core deposit and other intangibles	311			311		312		312	338
FDIC and other deposit assessments	258			245		222		248	231
Outside professional services	827			663		627		548	800
Operating losses	332			523		521		295	309
Outside data processing	205			258		269		253	270
Contract services	266			249		238		225	245
Postage, stationery and supplies	177			174		180		171	190
Travel and entertainment	196			166		172		158	216
Advertising and promotion	184			135		169		118	195
Insurance	57			95		156		140	60
Telecommunications	106			109		113		111	106
Foreclosed assets	20			109		117		135	164
Operating leases	73			79		64		62	58
All other	462			636		481		501	510
Total	$	12,399		12,399		12,469		12,507	12,647

- 27 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET



(in millions, except shares)	Dec 31, 2015			Dec 31, 2014		% Change
Assets
Cash and due from banks	$	19,111		19,571		(2	)%
Federal funds sold, securities purchased under resale agreements and other short-term investments	270,130			258,429		5
Trading assets	77,202			78,255		(1	)
Investment securities:
Available-for-sale, at fair value	267,358			257,442		4
Held-to-maturity, at cost	80,197			55,483		45
Mortgages held for sale	19,603			19,536		—
Loans held for sale	279			722		(61	)
Loans	916,559			862,551		6
Allowance for loan losses	(11,545		)	(12,319	)	(6	)
Net loans	905,014			850,232		6
Mortgage servicing rights:
Measured at fair value	12,415			12,738		(3	)
Amortized	1,308			1,242		5
Premises and equipment, net	8,704			8,743		—
Goodwill	25,529			25,705		(1	)
Other assets	100,782			99,057		2
Total assets	$	1,787,632		1,687,155		6
Liabilities
Noninterest-bearing deposits	$	351,579		321,963		9
Interest-bearing deposits	871,733			846,347		3
Total deposits	1,223,312			1,168,310		5
Short-term borrowings	97,528			63,518		54
Accrued expenses and other liabilities	73,231			86,122		(15	)
Long-term debt	199,536			183,943		8
Total liabilities	1,593,607			1,501,893		6
Equity
Wells Fargo stockholders’ equity:
Preferred stock	22,214			19,213		16
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares	9,136			9,136		—
Additional paid-in capital	60,714			60,537		—
Retained earnings	121,000			107,040		13
Cumulative other comprehensive income	297			3,518		(92	)
Treasury stock – 389,682,664 shares and 311,462,276 shares	(18,867		)	(13,690	)	38
Unearned ESOP shares	(1,362		)	(1,360	)	—
Total Wells Fargo stockholders’ equity	193,132			184,394		5
Noncontrolling interests	893			868		3
Total equity	194,025			185,262		5
Total liabilities and equity	$	1,787,632		1,687,155		6

- 28 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET



(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Assets
Cash and due from banks	$	19,111		17,395		19,687		19,793		19,571
Federal funds sold, securities purchased under resale agreements and other short-term investments	270,130			254,811		232,247		291,317		258,429
Trading assets	77,202			73,894		80,236		79,278		78,255
Investment securities:
Available-for-sale, at fair value	267,358			266,406		260,667		257,603		257,442
Held-to-maturity, at cost	80,197			78,668		80,102		67,133		55,483
Mortgages held for sale	19,603			21,840		25,447		23,606		19,536
Loans held for sale	279			430		621		681		722
Loans	916,559			903,233		888,459		861,231		862,551
Allowance for loan losses	(11,545		)	(11,659	)	(11,754	)	(12,176	)	(12,319	)
Net loans	905,014			891,574		876,705		849,055		850,232
Mortgage servicing rights:
Measured at fair value	12,415			11,778		12,661		11,739		12,738
Amortized	1,308			1,277		1,262		1,252		1,242
Premises and equipment, net	8,704			8,800		8,692		8,696		8,743
Goodwill	25,529			25,684		25,705		25,705		25,705
Other assets	100,782			98,708		96,585		101,879		99,057
Total assets	$	1,787,632		1,751,265		1,720,617		1,737,737		1,687,155
Liabilities
Noninterest-bearing deposits	$	351,579		339,761		343,582		335,858		321,963
Interest-bearing deposits	871,733			862,418		842,246		860,805		846,347
Total deposits	1,223,312			1,202,179		1,185,828		1,196,663		1,168,310
Short-term borrowings	97,528			88,069		82,963		77,697		63,518
Accrued expenses and other liabilities	73,231			81,700		81,399		90,121		86,122
Long-term debt	199,536			185,274		179,751		183,292		183,943
Total liabilities	1,593,607			1,557,222		1,529,941		1,547,773		1,501,893
Equity
Wells Fargo stockholders’ equity:
Preferred stock	22,214			22,424		21,649		21,998		19,213
Common stock	9,136			9,136		9,136		9,136		9,136
Additional paid-in capital	60,714			60,998		60,154		59,980		60,537
Retained earnings	121,000			117,593		114,093		110,676		107,040
Cumulative other comprehensive income	297			2,389		2,068		3,777		3,518
Treasury stock	(18,867		)	(17,899	)	(15,707	)	(14,556	)	(13,690	)
Unearned ESOP shares	(1,362		)	(1,590	)	(1,835	)	(2,215	)	(1,360	)
Total Wells Fargo stockholders’ equity	193,132			193,051		189,558		188,796		184,394
Noncontrolling interests	893			992		1,118		1,168		868
Total equity	194,025			194,043		190,676		189,964		185,262
Total liabilities and equity	$	1,787,632		1,751,265		1,720,617		1,737,737		1,687,155

- 29 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER INVESTMENT SECURITIES



(in millions)	Dec 31, 2015		Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	$	36,250	35,423	35,944	30,031	25,804
Securities of U.S. states and political subdivisions	49,990		49,423	48,298	47,380	44,944
Mortgage-backed securities:
Federal agencies	104,546		105,023	100,078	103,217	110,089
Residential and commercial	22,646		22,836	23,770	24,712	26,263
Total mortgage-backed securities	127,192		127,859	123,848	127,929	136,352
Other debt securities	52,289		51,760	50,090	48,759	46,666
Total available-for-sale debt securities	265,721		264,465	258,180	254,099	253,766
Marketable equity securities	1,637		1,941	2,487	3,504	3,676
Total available-for-sale securities	267,358		266,406	260,667	257,603	257,442
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies	44,660		44,653	44,645	44,244	40,886
Securities of U.S. states and political subdivisions	2,185		2,187	2,174	2,092	1,962
Federal agency mortgage-backed securities	28,604		26,828	27,577	14,311	5,476
Other debt securities	4,748		5,000	5,706	6,486	7,159
Total held-to-maturity debt securities	80,197		78,668	80,102	67,133	55,483
Total investment securities	$	347,555	345,074	340,769	324,736	312,925

FIVE QUARTER LOANS



(in millions)	Dec 31, 2015		Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Commercial:
Commercial and industrial	$	299,892	292,234	284,817	271,088	271,795
Real estate mortgage	122,160		121,252	119,695	111,848	111,996
Real estate construction	22,164		21,710	21,309	19,981	18,728
Lease financing	12,367		12,142	12,201	12,382	12,307
Total commercial	456,583		447,338	438,022	415,299	414,826
Consumer:
Real estate 1-4 family first mortgage	273,869		271,311	267,868	265,213	265,386
Real estate 1-4 family junior lien mortgage	53,004		54,592	56,164	57,839	59,717
Credit card	34,039		32,286	31,135	30,078	31,119
Automobile	59,966		59,164	57,801	56,339	55,740
Other revolving credit and installment	39,098		38,542	37,469	36,463	35,763
Total consumer	459,976		455,895	450,437	445,932	447,725
Total loans (1)	$	916,559	903,233	888,459	861,231	862,551


(1)	Includes $20.0 billion, $20.7 billion, $21.6 billion, $22.4 billion, and $23.3 billion of purchased credit-impaired (PCI) loans at December 31, September 30, June 30, and March 31, 2015, and December 31, 2014, respectively.

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



(in millions)	Dec 31, 2015		Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Commercial foreign loans:
Commercial and industrial	$	49,049	46,380	44,838	45,325	44,707
Real estate mortgage	8,350		8,662	9,125	5,171	4,776
Real estate construction	444		396	389	241	218
Lease financing	274		279	301	307	336
Total commercial foreign loans	$	58,117	55,717	54,653	51,044	50,037

- 30 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)



(in millions)	Dec 31, 2015			Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,363		1,031	1,079	663	538
Real estate mortgage	969			1,125	1,250	1,324	1,490
Real estate construction	66			151	165	182	187
Lease financing	26			29	28	23	24
Total commercial	2,424			2,336	2,522	2,192	2,239
Consumer:
Real estate 1-4 family first mortgage	7,293			7,425	8,045	8,345	8,583
Real estate 1-4 family junior lien mortgage	1,495			1,612	1,710	1,798	1,848
Automobile	121			123	126	133	137
Other revolving credit and installment	49			41	40	42	41
Total consumer	8,958			9,201	9,921	10,318	10,609
Total nonaccrual loans (1)(2)(3)	$	11,382		11,537	12,443	12,510	12,848
As a percentage of total loans	1.24		%	1.28	1.40	1.45	1.49
Foreclosed assets:
Government insured/guaranteed	$	446		502	588	772	982
Non-government insured/guaranteed	979			1,265	1,370	1,557	1,627
Total foreclosed assets	1,425			1,767	1,958	2,329	2,609
Total nonperforming assets	$	12,807		13,304	14,401	14,839	15,457
As a percentage of total loans	1.40		%	1.47	1.62	1.72	1.79


(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.

- 31 -

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING



(in millions)	Dec 31, 2015		Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Total (excluding PCI)(1):	$	14,380	14,405	15,161	16,344	17,810
Less: FHA insured/guaranteed by the VA (2)(3)	13,373		13,500	14,359	15,453	16,827
Less: Student loans guaranteed under the FFELP (4)	26		33	46	50	63
Total, not government insured/guaranteed	$	981	872	756	841	920
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	97	53	17	31	31
Real estate mortgage	13		24	10	43	16
Real estate construction	4		—	—	—	—
Total commercial	114		77	27	74	47
Consumer:
Real estate 1-4 family first mortgage (3)	224		216	220	221	260
Real estate 1-4 family junior lien mortgage (3)	65		61	65	55	83
Credit card	397		353	304	352	364
Automobile	79		66	51	47	73
Other revolving credit and installment	102		99	89	92	93
Total consumer	867		795	729	767	873
Total, not government insured/guaranteed	$	981	872	756	841	920


(1)	PCI loans totaled $2.9 billion, $3.2 billion, $3.4 billion, $3.6 billion and $3.7 billion, at December 31, September 30, June 30 and March 31, 2015, and December 31, 2014, respectively.


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


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


(4)	Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.

- 32 -

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PURCHASED CREDIT-IMPAIRED (PCI) LOANS

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

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

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


•	Changes in interest rate indices for variable rate PCI loans - Expected future cash flows are based on the variable rates in effect at the time of the quarterly assessment of expected cash flows;


•	Changes in prepayment assumptions - Prepayments affect the estimated life of PCI loans which may change the amount of interest income, and possibly principal, expected to be collected; and


•	Changes in the expected principal and interest payments over the estimated life - Updates to changes in expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows from loan modifications are included in the regular evaluations of cash flows expected to be collected.

The change in the accretable yield related to PCI loans is presented in the following table.



(in millions)
Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions	132
Accretion into interest income (1)	(12,783		)
Accretion into noninterest income due to sales (2)	(430		)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows	8,568
Changes in expected cash flows that do not affect nonaccretable difference (3)	11,856
Balance, December 31, 2014	17,790
Addition of accretable yield due to acquisitions	—
Accretion into interest income (1)	(1,429		)
Accretion into noninterest income due to sales (2)	(28		)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (4)	1,166
Changes in expected cash flows that do not affect nonaccretable difference (3)	(1,198		)
Balance, December 31, 2015	$	16,301

Balance, September 30, 2015	$	16,657
Addition of accretable yield due to acquisitions	—
Accretion into interest income (1)	(327		)
Accretion into noninterest income due to sales (2)	—
Reclassification from nonaccretable difference for loans with improving credit-related cash flows (4)	1,135
Changes in expected cash flows that do not affect nonaccretable difference (3)	(1,164		)
Balance, December 31, 2015	$	16,301


(1)	Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.


(2)	Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.


(3)	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.


(4)	At December 31, 2015, our carrying value for PCI loans totaled $20.0 billion and the remainder of nonaccretable difference established in purchase accounting totaled $1.9 billion. The nonaccretable difference absorbs losses of contractual amounts that exceed our carrying value for PCI loans.

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Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	December 31, 2015
	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	$	16,552	73	%	$	13,405	58	%	$	9,694	53	%
Florida	1,875		82		1,307		55		2,009		66
New Jersey	780		81		610		60		1,314		69
New York	526		77		465		62		638		67
Texas	204		57		185		51		781		44
Other states	3,834		79		3,066		62		5,591		65
Total Pick-a-Pay loans	$	23,771	75		$	19,038	59		$	20,027	59


(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 2015.


(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, 2015		Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Commercial:
Legacy Wachovia commercial and industrial and commercial real estate PCI loans (1)	$	468	506	592	699	1,125
Total commercial	468		506	592	699	1,125
Consumer:
Pick-a-Pay mortgage (1)(2)	39,065		40,578	42,222	43,745	45,002
Legacy Wells Fargo Financial debt consolidation (3)	9,957		10,315	10,702	11,067	11,417
Liquidating home equity	2,234		2,388	2,566	2,744	2,910
Legacy Wachovia other PCI loans (1)	221		240	262	276	300
Legacy Wells Fargo Financial indirect auto (3)	10		11	15	23	34
Total consumer	51,487		53,532	55,767	57,855	59,663
Total non-strategic and liquidating loan portfolios	$	51,955	54,038	56,359	58,554	60,788


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


(2)	Includes PCI loans of $19.0 billion, $19.7 billion, $20.4 billion, $21.0 billion and $21.5 billion at December 31, September 30, June 30, and March 31, 2015, and December 31, 2014, respectively.


(3)	When we refer to "Legacy Wells Fargo", we mean Wells Fargo excluding Wachovia Corporation (Wachovia).

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Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES



	Quarter ended December 31,					Year ended December 31,
(in millions)	2015			2014		2015		2014
Balance, beginning of period	$	12,562		13,481		13,169		14,971
Provision for credit losses	831			485		2,442		1,395
Interest income on certain impaired loans (1)	(48		)	(48	)	(198	)	(211	)
Loan charge-offs:
Commercial:
Commercial and industrial	(275		)	(161	)	(734	)	(627	)
Real estate mortgage	(11		)	(19	)	(59	)	(66	)
Real estate construction	(2		)	(2	)	(4	)	(9	)
Lease financing	(3		)	(3	)	(14	)	(15	)
Total commercial	(291		)	(185	)	(811	)	(717	)
Consumer:
Real estate 1-4 family first mortgage	(113		)	(138	)	(507	)	(721	)
Real estate 1-4 family junior lien mortgage	(134		)	(193	)	(635	)	(864	)
Credit card	(295		)	(256	)	(1,116	)	(1,025	)
Automobile	(211		)	(214	)	(742	)	(729	)
Other revolving credit and installment	(178		)	(160	)	(643	)	(668	)
Total consumer	(931		)	(961	)	(3,643	)	(4,007	)
Total loan charge-offs	(1,222		)	(1,146	)	(4,454	)	(4,724	)
Loan recoveries:
Commercial:
Commercial and industrial	60			79		252		369
Real estate mortgage	30			44		127		160
Real estate construction	12			28		37		136
Lease financing	2			2		8		8
Total commercial	104			153		424		673
Consumer:
Real estate 1-4 family first mortgage	63			50		245		212
Real estate 1-4 family junior lien mortgage	64			59		259		238
Credit card	52			35		175		161
Automobile	76			82		325		349
Other revolving credit and installment	32			32		134		146
Total consumer	287			258		1,138		1,106
Total loan recoveries	391			411		1,562		1,779
Net loan charge-offs (2)	(831		)	(735	)	(2,892	)	(2,945	)
Other	(2		)	(14	)	(9	)	(41	)
Balance, end of period	$	12,512		13,169		12,512		13,169
Components:
Allowance for loan losses	$	11,545		12,319		11,545		12,319
Allowance for unfunded credit commitments	967			850		967		850
Allowance for credit losses (3)	$	12,512		13,169		12,512		13,169
Net loan charge-offs (annualized) as a percentage of average total loans (2)	0.36		%	0.34		0.33		0.35
Allowance for loan losses as a percentage of total loans (3)	1.26			1.43		1.26		1.43
Allowance for credit losses as a percentage of total loans (3)	1.37			1.53		1.37		1.53


(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 $1 million and $11 million at December 31, 2015 and 2014, 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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES



	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Balance, beginning of quarter	$	12,562		12,614		13,013		13,169		13,481
Provision for credit losses	831			703		300		608		485
Interest income on certain impaired loans (1)	(48		)	(48	)	(50	)	(52	)	(48	)
Loan charge-offs:
Commercial:
Commercial and industrial	(275		)	(172	)	(154	)	(133	)	(161	)
Real estate mortgage	(11		)	(9	)	(16	)	(23	)	(19	)
Real estate construction	(2		)	—		(1	)	(1	)	(2	)
Lease financing	(3		)	(5	)	(3	)	(3	)	(3	)
Total commercial	(291		)	(186	)	(174	)	(160	)	(185	)
Consumer:
Real estate 1-4 family first mortgage	(113		)	(145	)	(119	)	(130	)	(138	)
Real estate 1-4 family junior lien mortgage	(134		)	(159	)	(163	)	(179	)	(193	)
Credit card	(295		)	(259	)	(284	)	(278	)	(256	)
Automobile	(211		)	(186	)	(150	)	(195	)	(214	)
Other revolving credit and installment	(178		)	(160	)	(151	)	(154	)	(160	)
Total consumer	(931		)	(909	)	(867	)	(936	)	(961	)
Total loan charge-offs	(1,222		)	(1,095	)	(1,041	)	(1,096	)	(1,146	)
Loan recoveries:
Commercial:
Commercial and industrial	60			50		73		69		79
Real estate mortgage	30			32		31		34		44
Real estate construction	12			8		7		10		28
Lease financing	2			2		1		3		2
Total commercial	104			92		112		116		153
Consumer:
Real estate 1-4 family first mortgage	63			83		52		47		50
Real estate 1-4 family junior lien mortgage	64			70		69		56		59
Credit card	52			43		41		39		35
Automobile	76			73		82		94		82
Other revolving credit and installment	32			31		35		36		32
Total consumer	287			300		279		272		258
Total loan recoveries	391			392		391		388		411
Net loan charge-offs	(831		)	(703	)	(650	)	(708	)	(735	)
Other	(2		)	(4	)	1		(4	)	(14	)
Balance, end of quarter	$	12,512		12,562		12,614		13,013		13,169
Components:
Allowance for loan losses	$	11,545		11,659		11,754		12,176		12,319
Allowance for unfunded credit commitments	967			903		860		837		850
Allowance for credit losses	$	12,512		12,562		12,614		13,013		13,169
Net loan charge-offs (annualized) as a percentage of average total loans	0.36		%	0.31		0.30		0.33		0.34
Allowance for loan losses as a percentage of:
Total loans	1.26			1.29		1.32		1.41		1.43
Nonaccrual loans	101			101		94		97		96
Nonaccrual loans and other nonperforming assets	90			88		82		82		80
Allowance for credit losses as a percentage of:
Total loans	1.37			1.39		1.42		1.51		1.53
Nonaccrual loans	110			109		101		104		103
Nonaccrual loans and other nonperforming assets	98			94		88		88		85


(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.

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Wells Fargo & Company and Subsidiaries

COMMON EQUITY TIER 1 UNDER BASEL III (FULLY PHASED-IN) (1)



		Estimated
(in billions)		Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Total equity		$	194.0		194.0		190.7		190.0		185.3
Noncontrolling interests		(0.9		)	(0.9	)	(1.1	)	(1.2	)	(0.9	)
Total Wells Fargo stockholders’ equity		193.1			193.1		189.6		188.8		184.4
Adjustments:
Preferred stock		(21.0		)	(21.0	)	(20.0	)	(20.0	)	(18.0	)
Goodwill and other intangible assets (2)		(28.7		)	(28.7	)	(29.1	)	(28.9	)	(29.0	)
Investment in certain subsidiaries and other		(0.9		)	(1.6	)	(0.6	)	(0.9	)	(0.7	)
Common Equity Tier 1 (Fully Phased-In) under Basel III (1)	(A)	142.5			141.8		139.9		139.0		136.7
Total risk-weighted assets (RWAs) anticipated under Basel III (3)(4)	(B)	$	1,334.9		1,331.8		1,325.6		1,326.3		1,310.5
Common Equity Tier 1 to total RWAs anticipated under Basel III (Fully Phased-In) (4)	(A)/(B)	10.7		%	10.6		10.6		10.5		10.4

(1)

Basel III capital rules, adopted by the Federal Reserve Board on July 2, 2013, revised the definition of capital, increased minimum capital ratios, and introduced a minimum Common Equity Tier 1 (CET1) ratio. These rules established a new comprehensive capital framework for U.S. banking organizations that implements the Basel III capital framework and certain provisions of the Dodd-Frank Act. The rules are being phased in through the end of 2021. Fully phased-in capital amounts, ratios and RWAs are calculated assuming the full phase-in of the Basel III capital rules. Fully phased-in regulatory capital amounts, ratios and RWAs are considered non-GAAP financial measures that are used by management, bank regulatory agencies, investors and analysts to assess and monitor the Company’s capital position. We have 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)	Goodwill and other intangible assets are net of any associated deferred tax liabilities.

(3)

The final Basel III capital rules provide for two capital frameworks: the Standardized Approach, which replaced Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we are subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. Because the final determination of our CET1 ratio and which approach will produce the lower CET1 ratio as of December 31, 2015, is subject to detailed analysis of considerable data, our CET1 ratio at that date has been estimated using the Basel III definition of capital under the Basel III Standardized Approach RWAs. The capital ratio for September 30, 2015, and June 30, 2015, was calculated under the Basel III Standardized Approach RWAs, and the capital ratio for March 31, 2015, and December 31, 2014, was calculated under the Basel III Advanced Approach RWAs.


(4)	The Company’s December 31, 2015, RWAs and capital ratio are preliminary estimates.

- 37 -

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)



(income/expense in millions, average balances in billions)	Community Banking			Wholesale Banking				Wealth and Investment Management				Other (2)				Consolidated Company
(income/expense in millions, average balances in billions)	2015		2014	2015		2014		2015		2014		2015		2014		2015	2014
Quarter ended Dec 31,
Net interest income (3)	$	7,409	7,149	3,711		3,633		933		811		(465	)	(413	)	11,588	11,180
Provision (reversal of provision) for credit losses	704		506	126		(33	)	(6	)	8		7		4		831	485
Noninterest income	4,921		5,009	2,848		2,899		3,014		3,102		(785	)	(747	)	9,998	10,263
Noninterest expense	6,693		6,827	3,491		3,533		2,998		3,066		(783	)	(779	)	12,399	12,647
Income (loss) before income tax expense (benefit)	4,933		4,825	2,942		3,032		955		839		(474	)	(385	)	8,356	8,311
Income tax expense (benefit)	1,573		1,484	841		864		366		318		(181	)	(147	)	2,599	2,519
Net income (loss) before noncontrolling interests	3,360		3,341	2,101		2,168		589		521		(293	)	(238	)	5,757	5,792
Less: Net income (loss) from noncontrolling interests	57		8	(3	)	73		(6	)	2		—		—		48	83
Net income (loss)	$	3,303	3,333	2,104		2,095		595		519		(293	)	(238	)	5,709	5,709

Average loans	$	482.2	469.6	417.0		369.0		63.0		54.8		(49.9	)	(44.0	)	912.3	849.4
Average assets	921.4		891.2	755.4		668.8		197.9		188.2		(87.4	)	(84.4	)	1,787.3	1,663.8
Average deposits	663.7		629.4	449.3		424.0		177.9		165.5		(74.1	)	(69.1	)	1,216.8	1,149.8

Year ended Dec 31,
Net interest income (3)	$	29,242	27,999	14,350		14,073		3,478		3,032		(1,769	)	(1,577	)	45,301	43,527
Provision (reversal of provision) for credit losses	2,427		1,796	27		(382	)	(25	)	(50	)	13		31		2,442	1,395
Noninterest income	20,099		20,159	11,554		11,325		12,299		12,237		(3,196	)	(2,901	)	40,756	40,820
Noninterest expense	26,781		26,290	14,116		13,831		12,067		11,993		(3,190	)	(3,077	)	49,774	49,037
Income (loss) before income tax expense (benefit)	20,133		20,072	11,761		11,949		3,735		3,326		(1,788	)	(1,432	)	33,841	33,915
Income tax expense (benefit)	6,268		6,049	3,424		3,540		1,420		1,262		(681	)	(544	)	10,431	10,307
Net income (loss) before noncontrolling interests	13,865		14,023	8,337		8,409		2,315		2,064		(1,107	)	(888	)	23,410	23,608
Less: Net income (loss) from noncontrolling interests	240		337	143		210		(1	)	4		—		—		382	551
Net income (loss)	$	13,625	13,686	8,194		8,199		2,316		2,060		(1,107	)	(888	)	23,028	23,057

Average loans	$	475.9	468.8	397.3		355.6		60.1		52.1		(47.9	)	(42.1	)	885.4	834.4
Average assets	910.0		853.2	724.9		636.5		192.8		186.1		(84.8	)	(82.5	)	1,742.9	1,593.3
Average deposits	654.4		614.3	438.9		404.0		172.3		163.5		(71.5	)	(67.7	)	1,194.1	1,114.1

(1)

The management accounting process measures the performance of the operating segments based on our management structure and is not necessarily comparable with other similar information for other financial services companies. We define our operating segments by product type and customer segment. Effective third quarter 2015, we realigned our asset management business from Wholesale Banking to Wealth and Investment Management (WIM) (formerly Wealth, Brokerage and Retirement), and realigned our reinsurance business from WIM and our strategic auto investments from Community Banking to Wholesale Banking. Effective fourth quarter 2015, we realigned our business banking and merchant payment services businesses from Community Banking to Wholesale Banking. Results for these operating segments were revised for prior periods to reflect the impact of these realignments.


(2)	Includes items not specific to a business segment and 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.

- 38 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)



								Quarter ended
(income/expense in millions, average balances in billions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
COMMUNITY BANKING
Net interest income (2)	$	7,409		7,409		7,277		7,147		7,149
Provision for credit losses	704			668		397		658		506
Noninterest income	4,921			5,524		4,690		4,964		5,009
Noninterest expense	6,693			6,778		6,719		6,591		6,827
Income before income tax expense	4,933			5,487		4,851		4,862		4,825
Income tax expense	1,573			1,785		1,620		1,290		1,484
Net income before noncontrolling interests	3,360			3,702		3,231		3,572		3,341
Less: Net income from noncontrolling interests	57			142		16		25		8
Segment net income	$	3,303		3,560		3,215		3,547		3,333
Average loans	$	482.2		477.0		472.3		472.2		469.6
Average assets	921.4			898.9		910.0		909.5		891.2
Average deposits	663.7			655.6		654.8		643.4		629.4
WHOLESALE BANKING
Net interest income (2)	$	3,711		3,611		3,591		3,437		3,633
Provision (reversal of provision) for credit losses	126			36		(84	)	(51	)	(33	)
Noninterest income	2,848			2,715		3,019		2,972		2,899
Noninterest expense	3,491			3,503		3,504		3,618		3,533
Income before income tax expense	2,942			2,787		3,190		2,842		3,032
Income tax expense	841			815		951		817		864
Net income before noncontrolling interests	2,101			1,972		2,239		2,025		2,168
Less: Net income (loss) from noncontrolling interests	(3		)	47		48		51		73
Segment net income	$	2,104		1,925		2,191		1,974		2,095
Average loans	$	417.0		405.6		386.2		380.0		369.0
Average assets	755.4			739.1		713.7		690.6		668.8
Average deposits	449.3			442.0		432.4		431.7		424.0
WEALTH AND INVESTMENT MANAGEMENT
Net interest income (2)	$	933		887		832		826		811
Provision (reversal of provision) for credit losses	(6		)	(6	)	(10	)	(3	)	8
Noninterest income	3,014			2,991		3,144		3,150		3,102
Noninterest expense	2,998			2,909		3,038		3,122		3,066
Income before income tax expense	955			975		948		857		839
Income tax expense	366			371		359		324		318
Net income before noncontrolling interests	589			604		589		533		521
Less: Net income (loss) from noncontrolling interests	(6		)	(2	)	3		4		2
Segment net income	$	595		606		586		529		519
Average loans	$	63.0		61.1		59.3		56.9		54.8
Average assets	197.9			192.6		189.1		191.6		188.2
Average deposits	177.9			172.6		168.2		170.3		165.5
OTHER (3)
Net interest income (2)	$	(465	)	(450	)	(430	)	(424	)	(413	)
Provision (reversal of provision) for credit losses	7			5		(3	)	4		4
Noninterest income	(785		)	(812	)	(805	)	(794	)	(747	)
Noninterest expense	(783		)	(791	)	(792	)	(824	)	(779	)
Loss before income tax benefit	(474		)	(476	)	(440	)	(398	)	(385	)
Income tax benefit	(181		)	(181	)	(167	)	(152	)	(147	)
Net loss before noncontrolling interests	(293		)	(295	)	(273	)	(246	)	(238	)
Less: Net income from noncontrolling interests	—			—		—		—		—
Other net loss	$	(293	)	(295	)	(273	)	(246	)	(238	)
Average loans	$	(49.9	)	(48.6	)	(47.4	)	(45.8	)	(44.0	)
Average assets	(87.4		)	(84.2	)	(83.5	)	(83.9	)	(84.4	)
Average deposits	(74.1		)	(71.3	)	(70.1	)	(70.6	)	(69.1	)
CONSOLIDATED COMPANY
Net interest income (2)	$	11,588		11,457		11,270		10,986		11,180
Provision for credit losses	831			703		300		608		485
Noninterest income	9,998			10,418		10,048		10,292		10,263
Noninterest expense	12,399			12,399		12,469		12,507		12,647
Income before income tax expense	8,356			8,773		8,549		8,163		8,311
Income tax expense	2,599			2,790		2,763		2,279		2,519
Net income before noncontrolling interests	5,757			5,983		5,786		5,884		5,792
Less: Net income from noncontrolling interests	48			187		67		80		83
Wells Fargo net income	$	5,709		5,796		5,719		5,804		5,709
Average loans	$	912.3		895.1		870.4		863.3		849.4
Average assets	1,787.3			1,746.4		1,729.3		1,707.8		1,663.8
Average deposits	1,216.8			1,198.9		1,185.3		1,174.8		1,149.8

(1)

(2)


(3)	Includes items not specific to a business segment and 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.

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Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING



	Quarter ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
MSRs measured using the fair value method:
Fair value, beginning of quarter	$	11,778		12,661		11,739		12,738		14,031
Servicing from securitizations or asset transfers	372			448		428		308		296
Sales and other (1)	(9		)	6		(5	)	(1	)	(7	)
Net additions	363			454		423		307		289
Changes in fair value:
Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (2)	560			(858	)	1,117		(572	)	(1,016	)
Servicing and foreclosure costs (3)	(37		)	(18	)	(10	)	(18	)	(5	)
Prepayment estimates and other (4)	244			43		(54	)	(183	)	(78	)
Net changes in valuation model inputs or assumptions	767			(833	)	1,053		(773	)	(1,099	)
Other changes in fair value (5)	(493		)	(504	)	(554	)	(533	)	(483	)
Total changes in fair value	274			(1,337	)	499		(1,306	)	(1,582	)
Fair value, end of quarter	$	12,415		11,778		12,661		11,739		12,738


(1)	Includes sales and transfers of MSRs, which can result in an increase of total reported MSRs if the sales or transfers are related to nonperforming loan portfolios.


(2)	Includes prepayment speed changes as well as other valuation changes due to changes in mortgage interest rates (such as changes in estimated interest earned on custodial deposit balances).


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


(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 and other external factors 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, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Amortized MSRs:
Balance, beginning of quarter	$	1,277		1,262		1,252		1,242		1,224
Purchases	48			45		29		22		38
Servicing from securitizations or asset transfers	49			35		46		50		43
Amortization	(66		)	(65	)	(65	)	(62	)	(63	)
Balance, end of quarter	$	1,308		1,277		1,262		1,252		1,242
Fair value of amortized MSRs:
Beginning of quarter	$	1,643		1,692		1,522		1,637		1,647
End of quarter	1,680			1,643		1,692		1,522		1,637

- 40 -

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)



		Quarter ended
(in millions)		Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Mar 31, 2015		Dec 31, 2014
Servicing income, net:
Servicing fees (1)		$	872		990		1,026		1,010		996
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)	(A)	767			(833	)	1,053		(773	)	(1,099	)
Other changes in fair value (3)		(493		)	(504	)	(554	)	(533	)	(483	)
Total changes in fair value of MSRs carried at fair value		274			(1,337	)	499		(1,306	)	(1,582	)
Amortization		(66		)	(65	)	(65	)	(62	)	(63	)
Net derivative gains (losses) from economic hedges (4)	(B)	(350		)	1,086		(946	)	881		1,334
Total servicing income, net		$	730		674		514		523		685
Market-related valuation changes to MSRs, net of hedge results (2)(4)	(A)+(B)	$	417		253		107		108		235


(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 economic hedges used to hedge the risk of changes in fair value of MSRs.



(in billions)	Dec 31, 2015			Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,300		1,323	1,344	1,374	1,405
Owned loans serviced	345			346	347	344	342
Subserviced for others	4			4	5	5	5
Total residential servicing	1,649			1,673	1,696	1,723	1,752
Commercial mortgage servicing:
Serviced for others	478			470	465	461	456
Owned loans serviced	122			121	120	112	112
Subserviced for others	7			7	7	7	7
Total commercial servicing	607			598	592	580	575
Total managed servicing portfolio	$	2,256		2,271	2,288	2,303	2,327
Total serviced for others	$	1,778		1,793	1,809	1,835	1,861
Ratio of MSRs to related loans serviced for others	0.77		%	0.73	0.77	0.71	0.75
Weighted-average note rate (mortgage loans serviced for others)	4.37			4.39	4.41	4.43	4.45


(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.

- 41 -

Wells Fargo & Company and Subsidiaries

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA



		Quarter ended
		Dec 31, 2015			Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014
Net gains on mortgage loan origination/sales activities (in millions):
Residential	(A)	$	600		736	814	711	605
Commercial		108			55	108	91	66
Residential pipeline and unsold/repurchased loan management (1)		222			124	269	222	159
Total		$	930		915	1,191	1,024	830
Application data (in billions):
Wells Fargo first mortgage quarterly applications		$	64		73	81	93	66
Refinances as a percentage of applications		48		%	44	45	61	52
Wells Fargo first mortgage unclosed pipeline, at quarter end		$	29		34	38	44	26
Residential real estate originations:
Purchases as a percentage of originations		59		%	66	54	45	60
Refinances as a percentage of originations		41			34	46	55	40
Total		100		%	100	100	100	100
Wells Fargo first mortgage loans (in billions):
Retail		$	27		32	36	28	27
Correspondent		19			22	25	20	16
Other (2)		1			1	1	1	1
Total quarter-to-date		$	47		55	62	49	44
Held-for-sale	(B)	$	33		39	46	37	31
Held-for-investment		14			16	16	12	13
Total quarter-to-date		$	47		55	62	49	44
Total year-to-date		$	213		166	111	49	175
Production margin on residential held-for-sale mortgage originations	(A)/(B)	1.83		%	1.88	1.75	1.93	1.94


(1)	Primarily includes the results of GNMA loss mitigation activities, interest rate management activities and changes in estimate to the liability for mortgage loan repurchase losses.


(2)	Consists of home equity loans and lines.

CHANGES IN MORTGAGE REPURCHASE LIABILITY



	Quarter ended							Year ended
(in millions)	Dec 31, 2015			Sep 30, 2015		Jun 30, 2015		Dec 31, 2015		Dec 31, 2014
Balance, beginning of period	$	538		557		586		615		899
Provision for repurchase losses:
Loan sales	9			11		13		43		44
Change in estimate (1)	(128		)	(17	)	(31	)	(202	)	(184	)
Total reductions	(119		)	(6	)	(18	)	(159	)	(140	)
Losses	(41		)	(13	)	(11	)	(78	)	(144	)
Balance, end of period	$	378		538		557		378		615


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

Ancel Martinez