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

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.1 - July 12, 2013

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8-K - FORM 8-K - WELLS FARGO & COMPANY/MN	d567089d8k.htm
EX-99.2 - EX-99.2 - WELLS FARGO & COMPANY/MN	d567089dex992.htm

Exhibit 99.1

LOGO

Friday, July 12, 2013

WELLS FARGO REPORTS RECORD QUARTERLY NET INCOME

Q2 Net Income of $5.5 Billion; EPS of $0.98, Up 20 Percent from Prior Year

•

Continued strong financial results:

Record Wells Fargo net income of $5.5 billion, up 19 percent from second quarter 2012

Record diluted earnings per share of $0.98, up 20 percent

Revenue of $21.4 billion, up $89 million

Noninterest expense of $12.3 billion, down $142 million

57.3 percent efficiency ratio, improved from 58.2 percent

Pre-tax pre-provision profit (PTPP)¹ of $9.1 billion, up 3 percent

Return on average assets (ROA) of 1.55 percent, up 14 basis points

Return on equity (ROE) of 14.02 percent, up 116 basis points

•

Continued loan and deposit growth:

Total average loans of $800.2 billion, up $32.0 billion from second quarter 2012

Quarter-end loans of $802.0 billion, up $26.8 billion

Quarter-end core loans² of $714.4 billion, up $42.3 billion

Total average core deposits of $936.1 billion, up $55.5 billion from second quarter 2012

Quarter-end core deposits of $941.2 billion, up $59.0 billion

•

Significant improvement in credit quality:

Net charge-offs of $1.2 billion, down $1.0 billion from second quarter 2012

Net charge-off rate of 0.58 percent (annualized), lowest since second quarter 2006³

Non-performing assets of $21.1 billion, down $3.8 billion from second quarter 2012

$500 million (pre-tax) reserve release⁴ due to continued strong credit performance

•

Strengthened capital levels; increased dividends and continued share repurchases:

Tier 1 common equity⁵ under Basel I increased $15.9 billion from second quarter 2012 to $117.6 billion, with Tier 1 common equity ratio of 10.73 percent under Basel I at June 30, 2013

Estimated Tier 1 common equity ratio of 8.54 percent under Basel III capital rules⁶

¹ See footnote (2) on page 17 for more information on pre-tax pre-provision profit.

² See table on page 4 for more information on core and non-strategic/liquidating loan portfolios.

³ As a result of the accounting for purchased credit-impaired (PCI) loans, substantially all related to the Wachovia merger, certain credit-related metrics may not be directly comparable with periods prior to the merger.

⁴ Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

⁵ See tables on page 38 for more information on Tier 1 common equity.

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

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Increased quarterly common stock dividend to $0.30 per share in second quarter 2013

Purchased 26.7 million shares of common stock in second quarter 2013 and an additional estimated 13 million shares through a forward repurchase transaction expected to settle in third quarter 2013

Selected Financial Information



				Quarter ended

	June 30,			Mar. 31,		June 30,
	2013			2013		2012


Earnings
Diluted earnings per common share	$	0.98			0.92		0.82
Wells Fargo net income (in billions)		5.52			5.17		4.62
Return on assets (ROA)		1.55	%		1.49		1.41
Return on equity (ROE)		14.02			13.59		12.86

Asset Quality
Net charge-offs (annualized) as a % of avg. total loans		0.58			0.72		1.15
Allowance as a % of total loans		2.07			2.15		2.41
Allowance as a % of annualized net charge-offs		360			299		211

Other
Revenue (in billions)	$	21.4			21.3		21.3
Efficiency ratio		57.3	%		58.3		58.2
Average loans (in billions)	$	800.2			798.1		768.2
Average core deposits (in billions)		936.1			925.9		880.6
Net interest margin		3.46	%		3.48		3.91

SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported record net income of $5.5 billion, or $0.98 per diluted common share, for second quarter 2013, up from $4.6 billion, or $0.82 per share, for second quarter 2012, and up from $5.2 billion, or $0.92 per share, for first quarter 2013. For the first six months of 2013, net income was a record $10.7 billion, or $1.90 per share, compared with $8.9 billion, or $1.57 per share, for the same period in 2012.

“Wells Fargo achieved outstanding results for the second quarter, with our diluted EPS growing for the 14^th consecutive quarter and our returns on assets and equity increasing from second quarter 2012 and first quarter 2013,” said Chairman and CEO John Stumpf. “Our results reflected the strength of our diversified business model. Compared with the prior quarter, we grew loans, deposits, and net interest income, and both our efficiency ratio and credit quality improved. Wells Fargo again demonstrated an ability to grow during a dynamic economic and interest rate environment, and we feel very well positioned to continue to perform for our shareholders over the long term.”

Chief Financial Officer Tim Sloan said, “Solid performance in the quarter reflected the strength of our broad and diverse franchise. Linked quarter we grew revenue, with higher net interest income as we grew loans and invested in securities. In addition, expenses and net charge-offs were lower in the quarter and we continued to grow capital. Our estimated Tier 1 common equity ratio under the Basel III capital rules adopted July 2, 2013, increased to 8.54 percent this quarter, despite the increase in market interest rates

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late in the quarter which reduced unrealized security gains and negatively impacted the ratio by 24 basis points. That’s a testament to the earnings power of Wells Fargo.”

Revenue

Revenue was $21.4 billion, up from $21.3 billion in first quarter 2013. Total revenue increased due to growth in net interest income, while growth in noninterest income fee categories, driven by trust and investment fees, was offset by lower market sensitive revenue⁷ and other income. Businesses generating year-over-year double-digit revenue growth included asset-backed finance, capital markets, corporate banking, credit card, personal credit management, real estate capital markets, retail brokerage, retail sales finance, retirement services, and small business administration loans.

Net Interest Income

Net interest income in second quarter 2013 increased $251 million on a linked-quarter basis to $10.8 billion largely due to higher interest income from the available-for-sale (AFS) securities portfolio as we purchased $21.1 billion in securities, largely consisting of agency mortgage-backed securities (MBS), during the quarter. The portfolio yield improved as prepayments of existing MBS slowed. In addition, we benefitted modestly from organic growth in consumer and commercial loans and income from purchased credit-impaired (PCI) loan resolutions which mitigated the impact of loan portfolio repricing. Net interest income also improved as deposit and long term funding interest expense declined $74 million, and we benefitted from an additional day in the quarter.

On a linked-quarter basis, the Company’s net interest margin declined 2 basis points to 3.46 percent. Linked-quarter deposit growth caused cash and short term investments to grow despite growth in other earning asset categories including loans and AFS securities. Although deposit growth has little impact on net interest income, it is dilutive to net interest margin and accounted for 6 basis points of compression. Approximately 2 basis points of the decline was offset by higher income from variable sources, including PCI loan resolutions and periodic dividends. The net impact of repricing and growth of the balance sheet this quarter also improved net interest margin approximately 2 basis points compared with the first quarter largely due to the benefit of higher AFS securities portfolio income and reduced funding costs.

Noninterest Income

Noninterest income was $10.6 billion, down slightly from first quarter 2013. Fee income was up in many of the Company’s core businesses, including solid increases in trust and investment fees, lease income, equity gains, card and other fees, service charges on deposit accounts, and insurance. These increases were more than offset by lower trading income, including lower deferred compensation gains (offset in employee benefits expense), and lower other income, primarily lower income from investments accounted for under the equity method and a first quarter gain on sale of PCI loans.

⁷ Includes net gains from trading activities, net gains (losses) on debt securities available for sale and net gains from equity investments.

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Mortgage banking noninterest income was $2.8 billion, in line with first quarter 2013. During the second quarter, residential mortgage originations were $112 billion, up slightly from $109 billion in first quarter 2013, however gain on sale margins declined as expected. The Company provided $65 million for mortgage loan repurchase losses, compared with $309 million in first quarter 2013 (included in net gains from mortgage loan origination/sales activities). Net mortgage servicing rights (MSRs) results were $68 million, compared with $129 million in first quarter 2013.

The Company had net unrealized securities gains of $5.1 billion at June 30, 2013, down from $11.2 billion at March 31, 2013, as market interest rates increased late in the quarter.

Noninterest Expense

Noninterest expense declined $145 million from the prior quarter primarily due to lower employee benefits which were seasonally elevated in first quarter 2013. This decline was partially offset by higher salaries, revenue-based incentive compensation, outside professional services, operating losses, and seasonally higher advertising and promotion expense. The efficiency ratio improved to 57.3 percent in second quarter 2013, compared with 58.3 percent in first quarter 2013. The Company expects to continue to operate within its targeted efficiency ratio range of 55 to 59 percent in third quarter 2013.

Loans

Total loans were $802.0 billion at June 30, 2013, up $2.0 billion from March 31, 2013, driven by growth in commercial and industrial, auto, foreign, credit card, and non-conforming first mortgage, partially offset by decreases in junior lien mortgage and commercial real estate mortgage, and a decline of $3.3 billion due to the continued runoff in the liquidating/non-strategic portfolio. Total average loans were $800.2 billion, up $2.2 billion from the prior quarter. The asset-backed finance, commercial banking, corporate banking, credit card, government and institutional banking, mortgage, personal credit management, real estate capital markets, retail brokerage, and retail sales finance portfolios all experienced year-over-year, double-digit growth.



	June 30, 2013							March 31, 2013

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

Commercial	$	360,940		2,532			363,472		358,944		2,770			361,714
Consumer		353,470		85,032			438,502		350,131		88,121			438,252

Total loans	$	714,410		87,564			801,974		709,075		90,891			799,966


Change from prior quarter:	$	5,335		(3,327	)		2,008		4,063		(3,671	)		392

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

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Deposits

Total average deposits were $1.0 trillion, up 9 percent from a year ago and up 10 percent (annualized) from first quarter 2013. Average core deposits were $936.1 billion, up 6 percent from a year ago and up 4 percent (annualized) from first quarter 2013. Average core checking and savings deposits were $883.5 billion, up 8 percent from a year ago and up 6 percent (annualized) from first quarter 2013. Average mortgage escrow deposits increased to $39.6 billion, compared with $35.4 billion a year ago and $38.8 billion in first quarter 2013. Average core checking and savings deposits were 94 percent of average core deposits. The average deposit cost for second quarter 2013 improved to 14 basis points, compared with 15 basis points in the prior quarter and 19 basis points a year ago. Average core deposits were 117 percent of average loans, up slightly from first quarter 2013.

Capital

Capital increased in the second quarter, with Tier 1 common equity of $117.6 billion under Basel I, or 10.73 percent of risk-weighted assets, compared with 10.08 percent in second quarter 2012 and 10.39 percent in first quarter 2013. Under the Basel III capital rules adopted July 2, 2013, the Tier 1 common equity ratio was an estimated 8.54 percent.⁸ In second quarter 2013, the Company purchased 26.7 million shares of its common stock and an additional estimated 13 million shares through a forward repurchase transaction expected to settle in third quarter 2013. The Company also increased its quarterly common stock dividend to $0.30 per share, up from $0.22 a year ago.



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

Ratios under Basel I (1):

Tier 1 common equity (2)		10.73	%		10.39		10.08
Tier 1 capital		12.14			11.80		11.69
Tier 1 leverage		9.63			9.53		9.25

(1)	June 30, 2013, ratios are preliminary.

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

Credit Quality

“Credit performance was very strong in the second quarter with improvement in all key metrics,” said Chief Risk Officer Mike Loughlin. “Credit losses were $1.2 billion in second quarter 2013, compared with $2.2 billion in second quarter 2012, representing a 48 percent year-over-year improvement. The quarterly loss rate fell to 0.58 percent with commercial losses of only 5 basis points and consumer losses of 1.01 percent. The consumer loss levels have improved rapidly due primarily to the positive momentum in the residential real estate market, with home prices improving faster and in more markets than expected. Nonperforming assets declined by $1.8 billion, or 8 percent from last quarter. We released $500 million from the allowance for credit losses in the second quarter, reflecting improvement in home prices and credit

⁸ Estimated based on management’s interpretation of final rules adopted July 2, 2013, by the Federal Reserve Board establishing a new comprehensive capital framework for U.S. banking organizations that would implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

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performance. We continue to expect future reserve releases absent a significant deterioration in the economic environment,” said Loughlin.

Net Loan Charge-offs

Net loan charge-offs improved to $1.2 billion in second quarter 2013, or 58 basis points of average loans, compared with $1.4 billion in first quarter 2013, or 72 basis points of average loans.

Net Loan Charge-Offs



	Quarter ended

	June 30, 2013					Mar. 31, 2013					Dec. 31, 2012

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


Commercial:
Commercial and industrial	$	77		0.17	%	$	93		0.20	%	$	209		0.46	%
Real estate mortgage		(5)		(0.02)			29		0.11			38		0.14
Real estate construction		(45)		(1.10)			(34)		(0.83)			(18)		(0.43)
Lease financing		18		0.57			(1)		(0.02)			2		0.04
Foreign		(1)		(0.01)			3		0.03			24		0.25

Total commercial		44		0.05			90		0.10			255		0.29


Consumer:
Real estate 1-4 family first mortgage		328		0.52			429		0.69			649		1.05
Real estate 1-4 family junior lien mortgage		359		2.02			449		2.46			690		3.57
Credit card		234		3.90			235		3.96			222		3.71
Automobile		42		0.35			76		0.66			112		0.97
Other revolving credit and installment		145		1.38			140		1.37			153		1.46

Total consumer		1,108		1.01			1,329		1.23			1,826		1.68

Total	$	1,152		0.58	%	$	1,419		0.72	%	$	2,081		1.05	%

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

Nonperforming Assets

Nonperforming assets decreased by $1.8 billion in the quarter to $21.1 billion, compared with $22.9 billion in first quarter 2013. Nonaccrual loans decreased to $17.9 billion from $19.5 billion in first quarter 2013. Foreclosed assets were $3.1 billion, down from $3.4 billion in first quarter 2013.

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Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	June 30, 2013					Mar. 31, 2013					Dec. 31, 2012

			As a					As a					As a
			% of					% of					% of
	Total		total			Total		total			Total		total
($ in millions)	balances		loans			balances		loans			balances		loans


Commercial:
Commercial and industrial	$	1,022		0.54	%	$	1,193		0.64	%	$	1,422		0.76	%
Real estate mortgage		2,708		2.59			3,098		2.92			3,322		3.12
Real estate construction		665		4.04			870		5.23			1,003		5.93
Lease financing		20		0.17			25		0.20			27		0.22
Foreign		40		0.10			56		0.14			50		0.13

Total commercial		4,455		1.23			5,242		1.45			5,824		1.61


Consumer:
Real estate 1-4 family first mortgage		10,705		4.23			11,320		4.49			11,455		4.58
Real estate 1-4 family junior lien mortgage		2,522		3.60			2,712		3.74			2,922		3.87
Automobile		200		0.41			220		0.47			245		0.53
Other revolving credit and installment		33		0.08			32		0.08			40		0.09

Total consumer		13,460		3.07			14,284		3.26			14,662		3.34

Total nonaccrual loans		17,915		2.23			19,526		2.44			20,486		2.56


Foreclosed assets:
GNMA		1,026					969					1,509
Non GNMA		2,114					2,381					2,514

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

Total nonperforming assets	$	21,055		2.63	%	$	22,876		2.86	%	$	24,509		3.07	%


Change from prior quarter:
Total nonaccrual loans	$	(1,611)				$	(960)				$	(558)
Total nonperforming assets		(1,821)					(1,633)					(744)

Loans 90 Days or More Past Due and Still Accruing

Loans 90 days or more past due and still accruing (excluding government insured/guaranteed) totaled $1.2 billion at June 30, 2013, compared with $1.4 billion at March 31, 2013. Loans 90 days or more past due and still accruing with repayments insured by the Federal Housing Administration (FHA) or predominantly guaranteed by the Department of Veterans Affairs (VA) for mortgages and the U.S. Department of Education for student loans under the Federal Family Education Loan Program were $21.0 billion at June 30, 2013, down slightly from $21.7 billion at March 31, 2013.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $16.6 billion at June 30, 2013, down from $17.2 billion at March 31, 2013. The allowance coverage to total loans was 2.07 percent, compared with 2.15 percent in first quarter 2013. The allowance covered 3.6 times annualized second quarter net charge-offs, compared with 3.0 times in the prior quarter. The allowance coverage to nonaccrual loans was 93 percent at June 30, 2013, compared with 88 percent at March 31, 2013. “We believe the allowance was appropriate for losses inherent in the loan portfolio at June 30, 2013,” said Loughlin.

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Business Segment Performance

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



					Quarter ended

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

Community Banking	$	3,245		2,924		2,535
Wholesale Banking		2,004		2,045		1,881
Wealth, Brokerage and Retirement		434		337		343

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

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

Selected Financial Information



					Quarter ended

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

Total revenue	$	12,942		12,899		13,092
Provision for credit losses		763		1,262		1,573
Noninterest expense		7,213		7,377		7,580
Segment net income		3,245		2,924		2,535

(in billions)
Average loans		498.2		498.9		483.9
Average assets		820.9		799.6		746.6
Average core deposits		623.0		619.2		586.1

Community Banking reported net income of $3.2 billion, up $321 million, or 11 percent, from first quarter 2013. Revenue increased $43 million, or 0.3 percent, primarily due to higher net interest income and mortgage banking revenue, growth in deposit service charges, and higher debit, credit and merchant card volumes, partially offset by lower deferred compensation plan investment gains (offset in employee benefits expense). Noninterest expense declined $164 million, or 2 percent, largely due to lower deferred compensation expense (offset in revenue) and seasonally lower employee benefit costs, partially offset by higher operating losses. The provision for credit losses was $499 million lower than first quarter 2013 as net-charge offs declined $183 million and portfolio credit performance improved, particularly in residential real estate.

Net income was up $710 million, or 28 percent, from second quarter 2012. Revenue decreased $150 million, or 1 percent, from second quarter 2012, due to lower net interest income, mortgage banking revenue and other noninterest income, mostly offset by growth in deposit service charges, higher trust and investment fees, and higher debit, credit and merchant card volumes. Noninterest expense declined $367 million, or 5 percent, largely driven by lower operating losses and FDIC deposit insurance assessments. The provision

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for credit losses decreased $810 million from a year ago as net-charge offs declined $765 million and portfolio credit performance improved, largely in the residential real estate portfolios.

Regional Banking

•

Retail banking

Retail Bank household cross-sell ratio of 6.14 products per household, up from 6.00 year-over-year⁹

Primary consumer checking customers¹⁰ up a net 3.5 percent year-over-year⁹

Consumer credit card, lines of credit and loan product solutions (sales) in the retail banking stores in second quarter were up 17 percent from the prior year

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

Platform banker FTE (active, full-time equivalent) grew by approximately 1,900 from the prior year

•

Small Business/Business Banking

Business checking accounts up a net 2.7 percent year-over-year⁹

Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) in second quarter were up 55 percent from the prior year

$9.3 billion in new loan commitments to small business customers (primarily with annual revenues less than $20 million) in first half of 2013, up 25 percent from the prior year

Named U.S. Small business Administration’s 2013 SBA 7(a) Large Lender of the Year

•

Online and Mobile Banking

22.7 million active online customers, up 8 percent year-over-year⁹

10.7 million active mobile customers, up 29 percent year-over-year⁹

Consumer Lending Group

•

Home Lending

Originations of $112 billion, compared with $109 billion in prior quarter

Applications of $146 billion, compared with $140 billion in prior quarter

Application pipeline of $63 billion at quarter end, compared with $74 billion at March 31, 2013

Residential mortgage servicing portfolio of $1.9 trillion; ratio of MSRs to related loans serviced for others was 81 basis points, compared with 70 basis points in prior quarter

Average note rate on the servicing portfolio was 4.59 percent, compared with 4.69 percent in prior quarter

•

Consumer Credit Solutions

Credit card penetration in retail banking households rose to 34.9 percent9, up from 31.0 percent in prior year

⁹ Data as of May 2013, comparisons with May 2012.

¹⁰ Customers who actively use their checking account with transactions such as debit card purchases, online bill payments, and direct deposit.

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Record auto originations of $7.1 billion, up 4 percent from prior quarter and up 9 percent from prior year

Wholesale Banking provides financial solutions to businesses across the United States and globally with annual sales generally in excess of $20 million. Products and business segments include Middle Market Commercial Banking, Government and Institutional Banking, Corporate Banking, Commercial Real Estate, Treasury Management, Wells Fargo Capital Finance, Insurance, International, Real Estate Capital Markets, Commercial Mortgage Servicing, Corporate Trust, Equipment Finance, Wells Fargo Securities, Principal Investments, Asset Backed Finance, and Asset Management.

Selected Financial Information



				Quarter ended

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

Total revenue	$	6,135			6,086			6,117
Provision (reversal of provision) for credit losses		(118	)		(58	)		188
Noninterest expense		3,183			3,091			3,113
Segment net income		2,004			2,045			1,881

(in billions)
Average loans		286.9			284.5			270.2
Average assets		499.9			496.1			478.4
Average core deposits		230.5			224.1			220.9

Wholesale Banking reported net income of $2.0 billion, down $41 million, or 2 percent, from first quarter 2013. Revenue of $6.1 billion increased $49 million, or 1 percent, from first quarter 2013 as strong growth across many businesses, including commercial banking, corporate banking, investment banking and international were partially offset by lower equity gains as well as lower sales and trading results. Noninterest expense increased $92 million, or 3 percent, from first quarter 2013 primarily from higher variable personnel expense.

Net income was up $123 million, or 7 percent, from second quarter 2012. Revenue increased $18 million, or 0.3 percent, from second quarter 2012 driven by business growth and strong loan and deposit growth, partially offset by a decline in PCI resolution income. Noninterest expense increased $70 million, or 2 percent, from second quarter 2012 due to higher personnel expenses related to revenue growth partially offset by lower foreclosed asset expenses. The provision for credit losses decreased $306 million from second quarter 2012 due to a $246 million reduction in credit losses and $60 million of additional reserve release. The second quarter 2013 provision included a $35 million reserve release, compared with a $25 million reserve build a year ago.

•

Six percent year-over-year average loan and 4 percent average asset growth in second quarter 2013. Growth came from nearly all portfolios, including asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking and government and institutional banking

•

Second quarter 2013 average core deposits up 4 percent from second quarter 2012

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•

Investment banking year-to-date 2013 revenue from commercial and corporate customers increased 34 percent from year-to-date 2012 due to attractive capital markets conditions and continued momentum in cross selling

•

Cross-sell of 6.9 products per relationship improved from 6.8 in prior quarter

•

Second quarter 2013 treasury management revenue up 12 percent from second quarter 2012

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

Selected Financial Information



	Quarter ended

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

Total revenue	$	3,261		3,197		2,971
Provision for credit losses		19		14		37
Noninterest expense		2,542		2,639		2,376
Segment net income		434		337		343

(in billions)
Average loans		45.4		43.8		42.5
Average assets		177.1		180.3		160.9
Average core deposits		146.4		149.4		134.2

Wealth, Brokerage and Retirement reported net income of $434 million, up 29 percent from first quarter 2013. Total revenue of $3.3 billion was up 2 percent from first quarter 2013 predominantly due to higher asset-based fees and net interest income, partially offset by lower gains on deferred compensation plan investments (offset in compensation expense). Total provision for credit losses increased $5 million from first quarter 2013. The provision in second and first quarter 2013 included a $5 million and $6 million credit reserve release, respectively. Noninterest expense decreased 4 percent from first quarter 2013. The decrease was primarily due to the seasonal impact of the first quarter 2013 personnel expenses and a decrease in deferred compensation plan expense (offset in trading income), partially offset by increased broker commissions.

Net income was up 27 percent from second quarter 2012. Total revenue was up 10 percent from second quarter 2012 driven by strong growth in asset-based fees and increased brokerage transaction revenue, partially offset by reduced securities gains in the brokerage business. Total provision for credit losses decreased $18 million from second quarter 2012; the provision in second quarter 2012 included a $10 million credit reserve release. Noninterest expense increased 7 percent from second quarter 2012 largely due to higher personnel expenses, primarily broker commissions.

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Retail Brokerage

•

Client assets of $1.3 trillion, up 9 percent from prior year

•

Managed account assets increased $52 billion, or 19 percent, from prior year driven by strong net flows and market performance

•

Strong deposit growth, with average balances up 13 percent from prior year

Wealth Management

•

Client assets of $203 billion, up 3 percent from prior year

Retirement

•

IRA assets of $315 billion, up 12 percent from prior year

•

Institutional Retirement plan assets of $277 billion, up 11 percent from prior year

Conference Call

The Company will host a live conference call on Friday, July 12, at 7 a.m. PDT (10 a.m. EDT). To access the call, please dial 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). No password is required. The call is also available online at wellsfargo.com/invest_relations/earnings and http://us.meeting-stream.com/wellsfargocompany_071213.

A replay of the conference call will be available beginning at approximately noon PDT (3 p.m. EDT) on July 12 through Friday, July 19. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #12657627. The replay will also be available online at wellsfargo.com/invest_relations/earnings.

- 13 -

Cautionary Statement about Forward-Looking Information

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. Forward-looking statements are not based on historical facts but instead represent our current expectations regarding future events, circumstances or results. In particular, these 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; (iv) the appropriateness of the allowance for credit losses; (v) our expectations regarding net interest income and net interest margin; (vi) loan growth or the reduction or mitigation of risk in our loan portfolios; (vii) future capital levels and our estimated Tier 1 common equity 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) the outcome of contingencies, such as legal proceedings; and (xii) the Company’s plans, objectives and strategies.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. While there is no assurance that any list of risks and uncertainties or risk factors is complete, important factors that could cause actual results to differ materially from those in the forward-looking statements include the following, without limitation:

•

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

•

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

•

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

•

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

•

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

•

negative effects relating to our mortgage servicing and foreclosure practices, including our obligations under the settlement with the Department of Justice and other federal and state government entities, as well as changes in industry standards or practices, regulatory or judicial requirements, penalties or fines, increased servicing and other costs or obligations, including loan modification requirements, or delays or moratoriums on foreclosures;

•

our ability to realize our efficiency ratio target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business

- 14 -

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;

•

a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, reduced investor demand for mortgage loans, a reduction in the availability of funding or increased funding costs, and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale portfolio;

•

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

•

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

•

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

•

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

•

fiscal and monetary policies of the Federal Reserve Board; and

•

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

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

For more information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.

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

- 15 -

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 275,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortune’s 2012 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

# # #

Wells Fargo & Company and Subsidiaries

QUARTERLY FINANCIAL DATA

TABLE OF CONTENTS


	Pages

Summary Information
Summary Financial Data		17-18

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

Balance Sheet
Consolidated Balance Sheet		26-27
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		28
Securities Available for Sale		29

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

Equity
Tier 1 Common Equity		38

Operating Segments
Operating Segment Results		39-40

Other
Mortgage Servicing and other related data		41-43

Wells Fargo & Company and Subsidiaries

SUMMARY FINANCIAL DATA



	Quarter ended							% Change June 30, 2013 from					Six months ended

($ in millions, except per share amounts)	June 30, 2013			March 31, 2013		June 30, 2012		March 31, 2013			June 30, 2012		June 30, 2013		June 30, 2012		% Change


For the Period
Wells Fargo net income	$	5,519			5,171		4,622		7	%		19	$	10,690		8,870		21	%
Wells Fargo net income applicable to common stock		5,272			4,931		4,403		7			20		10,203		8,425		21
Diluted earnings per common share		0.98			0.92		0.82		7			20		1.90		1.57		21
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.55	%		1.49		1.41		4			10		1.52		1.36		12
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		14.02			13.59		12.86		3			9		13.81		12.51		10
Efficiency ratio (1)		57.3			58.3		58.2		(2)			(2)		57.8		59.1		(2)
Total revenue	$	21,378			21,259		21,289		1			-	$	42,637		42,925		(1)
Pre-tax pre-provision profit (PTPP) (2)		9,123			8,859		8,892		3			3		17,982		17,535		3
Dividends declared per common share		0.30			0.25		0.22		20			36		0.55		0.44		25
Average common shares outstanding		5,304.7			5,279.0		5,306.9		-			-		5,291.9		5,294.9		-
Diluted average common shares outstanding		5,384.6			5,353.5		5,369.9		1			-		5,369.9		5,354.3		-
Average loans	$	800,241			798,074		768,223		-			4	$	799,164		768,403		4
Average assets		1,429,005			1,404,334		1,321,584		2			8		1,416,741		1,312,252		8
Average core deposits (3)		936,090			925,866		880,636		1			6		931,006		875,576		6
Average retail core deposits (4)		666,043			662,913		624,329		-			7		664,487		620,445		7
Net interest margin		3.46	%		3.48		3.91		(1)			(12)		3.47		3.91		(11)

At Period End
Securities available for sale	$	249,439			248,160		226,846		1			10	$	249,439		226,846		10
Loans		801,974			799,966		775,199		-			3		801,974		775,199		3
Allowance for loan losses		16,144			16,711		18,320		(3)			(12)		16,144		18,320		(12)
Goodwill		25,637			25,637		25,406		-			1		25,637		25,406		1
Assets		1,440,563			1,436,634		1,336,204		-			8		1,440,563		1,336,204		8
Core deposits (3)		941,158			939,934		882,137		-			7		941,158		882,137		7
Wells Fargo stockholders’ equity		162,421			162,086		148,070		-			10		162,421		148,070		10
Total equity		163,777			163,395		149,437		-			10		163,777		149,437		10
Capital ratios:
Total equity to assets		11.37	%		11.37		11.18		-			2		11.37		11.18		2
Risk-based capital (5):
Tier 1 capital		12.14			11.80		11.69		3			4		12.14		11.69		4
Total capital		15.06			14.76		14.85		2			1		15.06		14.85		1
Tier 1 leverage (5)		9.63			9.53		9.25		1			4		9.63		9.25		4
Tier 1 common equity (5)(6)		10.73			10.39		10.08		3			6		10.73		10.08		6
Common shares outstanding		5,302.2			5,288.8		5,275.7		-			1		5,302.2		5,275.7		1
Book value per common share	$	28.26			28.27		26.06		-			8	$	28.26		26.06		8
Common stock price:
High		41.74			38.20		34.59		9			21		41.74		34.59		21
Low		36.19			34.43		29.80		5			21		34.43		27.94		23
Period end		41.27			36.99		33.44		12			23		41.27		33.44		23
Team members (active, full-time equivalent)		274,300			274,300		264,400		-			4		274,300		264,400		4

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

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

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

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

(5)	The June 30, 2013, ratios are preliminary.

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

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA



	Quarter ended

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

For the Quarter
Wells Fargo net income	$	5,519			5,171		5,090		4,937		4,622
Wells Fargo net income applicable to common stock		5,272			4,931		4,857		4,717		4,403
Diluted earnings per common share		0.98			0.92		0.91		0.88		0.82
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA)		1.55	%		1.49		1.46		1.45		1.41
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		14.02			13.59		13.35		13.38		12.86
Efficiency ratio (1)		57.3			58.3		58.8		57.1		58.2
Total revenue	$	21,378			21,259		21,948		21,213		21,289
Pre-tax pre-provision profit (PTPP) (2)		9,123			8,859		9,052		9,101		8,892
Dividends declared per common share		0.30			0.25		0.22		0.22		0.22
Average common shares outstanding		5,304.7			5,279.0		5,272.4		5,288.1		5,306.9
Diluted average common shares outstanding		5,384.6			5,353.5		5,338.7		5,355.6		5,369.9
Average loans	$	800,241			798,074		787,210		776,734		768,223
Average assets		1,429,005			1,404,334		1,387,056		1,354,340		1,321,584
Average core deposits (3)		936,090			925,866		928,824		895,374		880,636
Average retail core deposits (4)		666,043			662,913		646,145		630,053		624,329
Net interest margin		3.46	%		3.48		3.56		3.66		3.91

At Quarter End
Securities available for sale	$	249,439			248,160		235,199		229,350		226,846
Loans		801,974			799,966		799,574		782,630		775,199
Allowance for loan losses		16,144			16,711		17,060		17,385		18,320
Goodwill		25,637			25,637		25,637		25,637		25,406
Assets		1,440,563			1,436,634		1,422,968		1,374,715		1,336,204
Core deposits (3)		941,158			939,934		945,749		901,075		882,137
Wells Fargo stockholders’ equity		162,421			162,086		157,554		154,679		148,070
Total equity		163,777			163,395		158,911		156,059		149,437
Capital ratios:
Total equity to assets		11.37	%		11.37		11.17		11.35		11.18
Risk-based capital (5):
Tier 1 capital		12.14			11.80		11.75		11.50		11.69
Total capital		15.06			14.76		14.63		14.51		14.85
Tier 1 leverage (5)		9.63			9.53		9.47		9.40		9.25
Tier 1 common equity (5)(6)		10.73			10.39		10.12		9.92		10.08
Common shares outstanding		5,302.2			5,288.8		5,266.3		5,289.6		5,275.7
Book value per common share	$	28.26			28.27		27.64		27.10		26.06
Common stock price:
High		41.74			38.20		36.34		36.60		34.59
Low		36.19			34.43		31.25		32.62		29.80
Period end		41.27			36.99		34.18		34.53		33.44
Team members (active, full-time equivalent)		274,300			274,300		269,200		267,000		264,400

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

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

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

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

(5)	The June 30, 2013, ratios are preliminary.

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

- 19 -

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME



	Quarter ended June 30,					%			Six months ended June 30,					%

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


Interest income
Trading assets	$	340			343		(1)	%	$	667			720		(7)	%
Securities available for sale		2,034			2,147		(5)			3,959			4,235		(7)
Mortgages held for sale		378			477		(21)			749			936		(20)
Loans held for sale		4			12		(67)			7			21		(67)
Loans		8,902			9,242		(4)			17,763			18,439		(4)
Other interest income		169			133		27			332			258		29

Total interest income		11,827			12,354		(4)			23,477			24,609		(5)


Interest expense
Deposits		353			443		(20)			722			900		(20)
Short-term borrowings		17			20		(15)			37			36		3
Long-term debt		632			789		(20)			1,329			1,619		(18)
Other interest expense		75			65		15			140			129		9

Total interest expense		1,077			1,317		(18)			2,228			2,684		(17)


Net interest income		10,750			11,037		(3)			21,249			21,925		(3)
Provision for credit losses		652			1,800		(64)			1,871			3,795		(51)

Net interest income after provision for credit losses		10,098			9,237		9			19,378			18,130		7


Noninterest income
Service charges on deposit accounts		1,248			1,139		10			2,462			2,223		11
Trust and investment fees		3,494			2,898		21			6,696			5,737		17
Card fees		813			704		15			1,551			1,358		14
Other fees		1,089			1,134		(4)			2,123			2,229		(5)
Mortgage banking		2,802			2,893		(3)			5,596			5,763		(3)
Insurance		485			522		(7)			948			1,041		(9)
Net gains from trading activities		331			263		26			901			903		-
Net losses on debt securities available for sale		(54	)		(61)		(11)			(9	)		(68)		(87)
Net gains from equity investments		203			242		(16)			316			606		(48)
Lease income		225			120		88			355			179		98
Other		(8	)		398		NM			449			1,029		(56)

Total noninterest income		10,628			10,252		4			21,388			21,000		2


Noninterest expense
Salaries		3,768			3,705		2			7,431			7,306		2
Commission and incentive compensation		2,626			2,354		12			5,203			4,771		9
Employee benefits		1,118			1,049		7			2,701			2,657		2
Equipment		418			459		(9)			946			1,016		(7)
Net occupancy		716			698		3			1,435			1,402		2
Core deposit and other intangibles		377			418		(10)			754			837		(10)
FDIC and other deposit assessments		259			333		(22)			551			690		(20)
Other		2,973			3,381		(12)			5,634			6,711		(16)

Total noninterest expense		12,255			12,397		(1)			24,655			25,390		(3)


Income before income tax expense		8,471			7,092		19			16,111			13,740		17
Income tax expense		2,863			2,371		21			5,283			4,699		12


Net income before noncontrolling interests		5,608			4,721		19			10,828			9,041		20
Less: Net income from noncontrolling interests		89			99		(10)			138			171		(19)

Wells Fargo net income	$	5,519			4,622		19		$	10,690			8,870		21

Less: Preferred stock dividends and other		247			219		13			487			445		9

Wells Fargo net income applicable to common stock	$	5,272			4,403		20		$	10,203			8,425		21


Per share information
Earnings per common share	$	1.00			0.83		20		$	1.93			1.59		21
Diluted earnings per common share		0.98			0.82		20			1.90			1.57		21
Dividends declared per common share		0.30			0.22		36			0.55			0.44		25
Average common shares outstanding		5,304.7			5,306.9		-			5,291.9			5,294.9		-
Diluted average common shares outstanding		5,384.6			5,369.9		-			5,369.9			5,354.3		-

NM - Not meaningful

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



	Quarter ended June 30,				%			Six months ended June 30,				%

(in millions)	2013		2012		Change			2013		2012		Change

Wells Fargo net income	$	5,519		4,622		19	%	$	10,690		8,870		21	%

Other comprehensive income, before tax:
Foreign currency translation adjustments:
Net unrealized losses arising during the period		(21)		(56)		(63)			(39)		(46)		(15)
Reclassification of net gains to net income		(15)		(10)		50			(15)		(10)		50
Securities available for sale:
Net unrealized gains (losses) arising during the period		(6,130)		831		NM			(6,764)		2,705		NM
Reclassification of net losses (gains) to net income		30		(23)		NM			(83)		(249)		(67)
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period		(10)		(3)		233			(3)		39		NM
Reclassification of net gains on cash flow hedges to net income		(69)		(99)		(30)			(156)		(206)		(24)
Defined benefit plans adjustments:
Net actuarial gains (losses) arising during the period		772		(12)		NM			778		(17)		NM
Amortization of net actuarial loss, settlements and other costs to net income		113		40		183			162		76		113


Other comprehensive income (loss), before tax		(5,330)		668		NM			(6,120)		2,292		NM
Income tax (expense) benefit related to other comprehensive income		1,979		(255)		NM			2,267		(866)		NM


Other comprehensive income (loss), net of tax		(3,351)		413		NM			(3,853)		1,426		NM
Less: Other comprehensive income (loss) from noncontrolling interests		(3)		-		NM			-		4		(100)

Wells Fargo other comprehensive income (loss), net of tax		(3,348)		413		NM			(3,853)		1,422		NM


Wells Fargo comprehensive income		2,171		5,035		(57)			6,837		10,292		(34)
Comprehensive income from noncontrolling interests		86		99		(13)			138		175		(21)


Total comprehensive income		$ 2,257		5,134		(56)			$ 6,975		10,467		(33)

NM - Not meaningful

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY


	Six months ended June 30,

(in millions)	2013		2012


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


Balance, beginning of period - adjusted		158,911		141,689
Wells Fargo net income		10,690		8,870
Wells Fargo other comprehensive income (loss), net of tax		(3,853)		1,422
Common stock issued		1,799		1,311
Common stock repurchased		(1,936)		(2,101)
Preferred stock released by ESOP		720		677
Preferred stock issued		610		-
Common stock dividends		(2,911)		(2,336)
Preferred stock dividends and other		(487)		(445)
Noncontrolling interests and other, net		234		350


Balance, end of period	$	163,777		149,437

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME




	Quarter ended

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


Interest income
Trading assets	$	340		327		339		299		343
Securities available for sale		2,034		1,925		1,897		1,966		2,147
Mortgages held for sale		378		371		413		476		477
Loans held for sale		4		3		3		17		12
Loans		8,902		8,861		9,027		9,016		9,242
Other interest income		169		163		178		151		133

Total interest income		11,827		11,650		11,857		11,925		12,354


Interest expense
Deposits		353		369		399		428		443
Short-term borrowings		17		20		24		19		20
Long-term debt		632		697		735		756		789
Other interest expense		75		65		56		60		65

Total interest expense		1,077		1,151		1,214		1,263		1,317


Net interest income		10,750		10,499		10,643		10,662		11,037
Provision for credit losses		652		1,219		1,831		1,591		1,800

Net interest income after provision for credit losses		10,098		9,280		8,812		9,071		9,237


Noninterest income
Service charges on deposit accounts		1,248		1,214		1,250		1,210		1,139
Trust and investment fees		3,494		3,202		3,199		2,954		2,898
Card fees		813		738		736		744		704
Other fees		1,089		1,034		1,193		1,097		1,134
Mortgage banking		2,802		2,794		3,068		2,807		2,893
Insurance		485		463		395		414		522
Net gains from trading activities		331		570		275		529		263
Net gains (losses) on debt securities available for sale		(54)		45		(63)		3		(61)
Net gains from equity investments		203		113		715		164		242
Lease income		225		130		170		218		120
Other		(8)		457		367		411		398

Total noninterest income		10,628		10,760		11,305		10,551		10,252


Noninterest expense
Salaries		3,768		3,663		3,735		3,648		3,705
Commission and incentive compensation		2,626		2,577		2,365		2,368		2,354
Employee benefits		1,118		1,583		891		1,063		1,049
Equipment		418		528		542		510		459
Net occupancy		716		719		728		727		698
Core deposit and other intangibles		377		377		418		419		418
FDIC and other deposit assessments		259		292		307		359		333
Other		2,973		2,661		3,910		3,018		3,381

Total noninterest expense		12,255		12,400		12,896		12,112		12,397


Income before income tax expense		8,471		7,640		7,221		7,510		7,092
Income tax expense		2,863		2,420		1,924		2,480		2,371


Net income before noncontrolling interests		5,608		5,220		5,297		5,030		4,721
Less: Net income from noncontrolling interests		89		49		207		93		99


Wells Fargo net income	$	5,519		5,171		5,090		4,937		4,622

Less: Preferred stock dividends and other		247		240		233		220		219


Wells Fargo net income applicable to common stock	$	5,272		4,931		4,857		4,717		4,403


Per share information
Earnings per common share	$	1.00		0.93		0.92		0.89		0.83
Diluted earnings per common share		0.98		0.92		0.91		0.88		0.82
Dividends declared per common share		0.30		0.25		0.22		0.22		0.22
Average common shares outstanding		5,304.7		5,279.0		5,272.4		5,288.1		5,306.9
Diluted average common shares outstanding		5,384.6		5,353.5		5,338.7		5,355.6		5,369.9

Wells Fargo & Company and Subsidiaries

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



	Quarter ended June 30,

							2013								2012

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


Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	136,484			0.33	%	$	113		71,250			0.47	%	$	83
Trading assets		46,622			2.98			347		42,614			3.27			348
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		6,684			1.73			29		1,954			1.60			8
Securities of U.S. states and political subdivisions		39,267			4.42			434		34,560			4.39			379
Mortgage-backed securities:
Federal agencies		102,007			2.79			711		95,031			3.37			800
Residential and commercial		31,315			6.50			509		33,870			6.97			591
Total mortgage-backed securities		133,322			3.66			1,220		128,901			4.32			1,391
Other debt and equity securities		55,533			3.84			531		48,915			4.39			535
Total securities available for sale		234,806			3.77			2,214		214,330			4.32			2,313
Mortgages held for sale (4)		43,422			3.48			378		49,528			3.86			477
Loans held for sale (4)		177			7.85			4		833			5.48			12
Loans:
Commercial:
Commercial and industrial		186,130			3.69			1,714		171,776			4.21			1,801
Real estate mortgage		105,261			3.92			1,029		105,509			4.60			1,208
Real estate construction		16,458			5.02			206		17,943			4.96			221
Lease financing		12,338			6.66			206		12,890			6.86			221
Foreign		42,273			2.23			235		38,917			2.57			249
Total commercial		362,460			3.75			3,390		347,035			4.28			3,700
Consumer:
Real estate 1-4 family first mortgage		252,558			4.23			2,671		230,065			4.62			2,658
Real estate 1-4 family junior lien mortgage		71,376			4.29			764		82,076			4.30			878
Credit card		24,023			12.55			752		22,065			12.70			697
Automobile		47,942			7.05			842		44,625			7.59			842
Other revolving credit and installment		41,882			4.74			495		42,357			4.51			475
Total consumer		437,781			5.05			5,524		421,188			5.29			5,550
Total loans (4)		800,241			4.46			8,914		768,223			4.83			9,250
Other		4,151			5.55			57		4,486			4.56			51
Total earning assets	$	1,265,903			3.80	%	$	12,027		1,151,264			4.37	%	$	12,534

Funding sources
Deposits:
Interest-bearing checking	$	40,422			0.06	%	$	6		30,440			0.07	%	$	5
Market rate and other savings		541,843			0.08			111		500,327			0.12			152
Savings certificates		52,552			1.23			161		60,341			1.34			200
Other time deposits		26,045			0.76			50		12,803			1.83			59
Deposits in foreign offices		68,871			0.15			25		65,587			0.17			27
Total interest-bearing deposits		729,733			0.19			353		669,498			0.27			443
Short-term borrowings		57,812			0.14			21		51,698			0.19			24
Long-term debt		125,496			2.02			632		127,660			2.48			789
Other liabilities		13,315			2.25			75		10,408			2.48			65
Total interest-bearing liabilities		926,356			0.47			1,081		859,264			0.62			1,321
Portion of noninterest-bearing funding sources		339,547			-			-		292,000			-			-
Total funding sources	$	1,265,903			0.34			1,081		1,151,264			0.46			1,321
Net interest margin and net interest income on a taxable-equivalent basis (5)					3.46	%	$	10,946					3.91	%	$	11,213
Noninterest-earning assets
Cash and due from banks	$	16,214								16,200
Goodwill		25,637								25,332
Other		121,251								128,788
Total noninterest-earning assets	$	163,102								170,320

Noninterest-bearing funding sources
Deposits	$	280,029								254,442
Other liabilities		57,959								58,441
Total equity		164,661								149,437
Noninterest-bearing funding sources used to fund earning assets		(339,547	)							(292,000	)
Net noninterest-bearing funding sources	$	163,102								170,320
Total assets	$	1,429,005								1,321,584

(1)	Our average prime rate was 3.25% for the quarters ended June 30, 2013 and 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.28% and 0.47% for the same quarters, respectively.

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

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

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

(5)	Includes taxable-equivalent adjustments of $196 million and $176 million for the quarters ended June 30, 2013 and 2012, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries

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



	Six months ended June 30,
							2013								2012

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

Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	128,797			0.35	%	$	221		63,635			0.49	%	$	156
Trading assets		44,388			3.07			681		43,190			3.39			731
Securities available for sale (3):
Securities of U.S. Treasury and federal agencies		6,880			1.65			56		3,875			1.13			22
Securities of U.S. states and political subdivisions		38,430			4.40			844		33,578			4.45			747
Mortgage-backed securities:
Federal agencies		98,705			2.77			1,365		93,165			3.43			1,597
Residential and commercial		31,726			6.48			1,028		34,201			6.89			1,178
Total mortgage-backed securities		130,431			3.67			2,393		127,366			4.36			2,775
Other debt and equity securities		54,634			3.71			1,008		49,658			4.10			1,015
Total securities available for sale		230,375			3.74			4,301		214,477			4.26			4,559
Mortgages held for sale (4)		43,367			3.45			749		48,218			3.88			936
Loans held for sale (4)		159			8.28			7		790			5.29			21
Loans:
Commercial:
Commercial and industrial		185,327			3.71			3,414		169,279			4.20			3,534
Real estate mortgage		105,738			3.88			2,035		105,750			4.33			2,280
Real estate construction		16,508			4.93			404		18,337			4.87			444
Lease financing		12,381			6.72			416		13,009			7.89			513
Foreign		41,093			2.19			448		40,042			2.54			507
Total commercial		361,047			3.75			6,717		346,417			4.22			7,278
Consumer:
Real estate 1-4 family first mortgage		252,305			4.26			5,374		229,859			4.66			5,346
Real estate 1-4 family junior lien mortgage		72,715			4.29			1,548		83,397			4.28			1,778
Credit card		24,060			12.58			1,502		22,097			12.81			1,408
Automobile		47,258			7.12			1,668		44,155			7.69			1,688
Other revolving credit and installment		41,779			4.72			977		42,478			4.54			958
Total consumer		438,117			5.08			11,069		421,986			5.31			11,178
Total loans (4)		799,164			4.47			17,786		768,403			4.82			18,456
Other		4,203			5.37			112		4,545			4.49			103
Total earning assets	$	1,250,453			3.83	%	$	23,857		1,143,258			4.38	%	$	24,962

Funding sources
Deposits:
Interest-bearing checking	$	36,316			0.06	%	$	11		31,299			0.06	%	$	10
Market rate and other savings		539,708			0.09			233		498,177			0.12			305
Savings certificates		53,887			1.23			328		61,515			1.35			413
Other time deposits		21,003			0.95			99		12,727			1.88			119
Deposits in foreign offices		69,968			0.15			51		65,217			0.16			53
Total interest-bearing deposits		720,882			0.20			722		668,935			0.27			900
Short-term borrowings		56,618			0.16			44		50,040			0.17			43
Long-term debt		126,299			2.11			1,329		127,599			2.54			1,619
Other liabilities		12,467			2.24			140		10,105			2.55			129
Total interest-bearing liabilities		916,266			0.49			2,235		856,679			0.63			2,691
Portion of noninterest-bearing funding sources		334,187			-			-		286,579			-			-
Total funding sources	$	1,250,453			0.36			2,235		1,143,258			0.47			2,691
Net interest margin and net interest income on a taxable-equivalent basis (5)					3.47	%	$	21,622					3.91	%	$	22,271
Noninterest-earning assets
Cash and due from banks	$	16,371								16,587
Goodwill		25,638								25,230
Other		124,279								127,177
Total noninterest-earning assets	$	166,288								168,994

Noninterest-bearing funding sources
Deposits	$	277,141								250,528
Other liabilities		60,784								57,821
Total equity		162,550								147,224
Noninterest-bearing funding sources used to fund earning assets		(334,187	)							(286,579	)
Net noninterest-bearing funding sources	$	166,288								168,994
Total assets	$	1,416,741								1,312,252

(1)	Our average prime rate was 3.25% for the six months ended June 30, 2013 and 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.28% and 0.49% for the same periods, respectively.

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

(3)	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 $373 million and $346 million for the six months ended June 30, 2013 and 2012, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME




	Quarter ended June 30,				%			Six months ended June 30,				%


(in millions)	2013		2012		Change			2013		2012		Change


Service charges on deposit accounts	$	1,248		1,139		10	%	$	2,462		2,223		11	%
Trust and investment fees:
Brokerage advisory, commissions and other fees (1)		2,127		1,845		15			4,177		3,675		14
Trust and investment management (1)		829		762		9			1,628		1,514		8
Investment banking		538		291		85			891		548		63


Total trust and investment fees		3,494		2,898		21			6,696		5,737		17


Card fees		813		704		15			1,551		1,358		14
Other fees:
Charges and fees on loans		387		427		(9)			771		872		(12)
Merchant processing fees		174		157		11			328		282		16
Cash network fees		125		120		4			242		238		2
Commercial real estate brokerage commissions		73		82		(11)			118		132		(11)
Letters of credit fees		102		108		(6)			211		220		(4)
All other fees		228		240		(5)			453		485		(7)


Total other fees		1,089		1,134		(4)			2,123		2,229		(5)


Mortgage banking:
Servicing income, net		393		679		(42)			707		931		(24)
Net gains on mortgage loan origination/sales activities		2,409		2,214		9			4,889		4,832		1


Total mortgage banking		2,802		2,893		(3)			5,596		5,763		(3)


Insurance		485		522		(7)			948		1,041		(9)
Net gains from trading activities		331		263		26			901		903		-
Net losses on debt securities available for sale		(54)		(61)		(11)			(9)		(68)		(87)
Net gains from equity investments		203		242		(16)			316		606		(48)
Lease income		225		120		88			355		179		98
Life insurance investment income		142		154		(8)			287		322		(11)
All other		(150)		244		NM			162		707		(77)


Total	$	10,628		10,252		4		$	21,388		21,000		2

NM - Not meaningful

(1)	The prior year periods have been revised to reflect all fund distribution fees as brokerage related income.

NONINTEREST EXPENSE




	Quarter ended June 30,				%			Six months ended June 30,				%


(in millions)	2013		2012		Change			2013		2012		Change

Salaries	$	3,768		3,705		2	%	$	7,431		7,306		2	%
Commission and incentive compensation		2,626		2,354		12			5,203		4,771		9
Employee benefits		1,118		1,049		7			2,701		2,657		2
Equipment		418		459		(9)			946		1,016		(7)
Net occupancy		716		698		3			1,435		1,402		2
Core deposit and other intangibles		377		418		(10)			754		837		(10)
FDIC and other deposit assessments		259		333		(22)			551		690		(20)
Outside professional services		607		658		(8)			1,142		1,252		(9)
Operating losses		288		524		(45)			445		1,001		(56)
Foreclosed assets		146		289		(49)			341		593		(42)
Contract services		226		236		(4)			433		539		(20)
Outside data processing		235		233		1			468		449		4
Travel and entertainment		229		218		5			442		420		5
Postage, stationery and supplies		184		195		(6)			383		411		(7)
Advertising and promotion		183		144		27			288		266		8
Telecommunications		125		127		(2)			248		251		(1)
Insurance		143		183		(22)			280		340		(18)
Operating leases		49		27		81			97		55		76
All other		558		547		2			1,067		1,134		(6)


Total	$	12,255		12,397		(1)		$	24,655		25,390		(3)

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME




	Quarter ended


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


Service charges on deposit accounts	$	1,248		1,214		1,250		1,210		1,139
Trust and investment fees:
Brokerage advisory, commissions and other fees (1)		2,127		2,050		1,962		1,887		1,845
Trust and investment management (1)		829		799		797		769		762
Investment banking		538		353		440		298		291


Total trust and investment fees		3,494		3,202		3,199		2,954		2,898


Card fees		813		738		736		744		704
Other fees:
Charges and fees on loans		387		384		448		426		427
Merchant processing fees		174		154		151		150		157
Cash network fees		125		117		112		120		120
Commercial real estate brokerage commissions		73		45		119		56		82
Letters of credit fees		102		109		107		114		108
All other fees		228		225		256		231		240


Total other fees		1,089		1,034		1,193		1,097		1,134


Mortgage banking:
Servicing income, net		393		314		250		197		679
Net gains on mortgage loan origination/sales activities		2,409		2,480		2,818		2,610		2,214


Total mortgage banking		2,802		2,794		3,068		2,807		2,893


Insurance		485		463		395		414		522
Net gains from trading activities		331		570		275		529		263
Net gains (losses) on debt securities available for sale		(54)		45		(63)		3		(61)
Net gains from equity investments		203		113		715		164		242
Lease income		225		130		170		218		120
Life insurance investment income		142		145		276		159		154
All other		(150)		312		91		252		244


Total	$	10,628		10,760		11,305		10,551		10,252

(1)	Prior year periods have been revised to reflect all fund distribution fees as brokerage related income.

FIVE QUARTER NONINTEREST EXPENSE




	Quarter ended


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

Salaries	$	3,768		3,663		3,735		3,648		3,705
Commission and incentive compensation		2,626		2,577		2,365		2,368		2,354
Employee benefits		1,118		1,583		891		1,063		1,049
Equipment		418		528		542		510		459
Net occupancy		716		719		728		727		698
Core deposit and other intangibles		377		377		418		419		418
FDIC and other deposit assessments		259		292		307		359		333
Outside professional services		607		535		744		733		658
Operating losses		288		157		953		281		524
Foreclosed assets		146		195		221		247		289
Contract services		226		207		235		237		236
Outside data processing		235		233		227		234		233
Travel and entertainment		229		213		211		208		218
Postage, stationery and supplies		184		199		192		196		195
Advertising and promotion		183		105		142		170		144
Telecommunications		125		123		122		127		127
Insurance		143		137		62		51		183
Operating leases		49		48		27		27		27
All other		558		509		774		507		547


Total	$	12,255		12,400		12,896		12,112		12,397

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET



	June 30,		Dec. 31,		%
(in millions, except shares)	2013		2012		Change


Assets
Cash and due from banks	$	17,939		21,860		(18)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		148,665		137,313		8
Trading assets		58,619		57,482		2
Securities available for sale		249,439		235,199		6
Mortgages held for sale (includes $35,402 and $42,305 carried at fair value)		38,785		47,149		(18)
Loans held for sale (includes $2 and $6 carried at fair value)		190		110		73

Loans (includes $6,088 and $6,206 carried at fair value)		801,974		799,574		-
Allowance for loan losses		(16,144)		(17,060)		(5)


Net loans		785,830		782,514		-

Mortgage servicing rights:
Measured at fair value		14,185		11,538		23
Amortized		1,176		1,160		1
Premises and equipment, net		9,190		9,428		(3)
Goodwill		25,637		25,637		-
Other assets (includes $556 and $0 carried at fair value)		90,908		93,578		(3)


Total assets	$	1,440,563		1,422,968		1


Liabilities
Noninterest-bearing deposits	$	277,648		288,207		(4)
Interest-bearing deposits		743,937		714,628		4

Total deposits		1,021,585		1,002,835		2
Short-term borrowings		56,983		57,175		-
Accrued expenses and other liabilities		74,843		76,668		(2)
Long-term debt (includes $0 and $1 carried at fair value)		123,375		127,379		(3)


Total liabilities		1,276,786		1,264,057		1


Equity

Wells Fargo stockholders’ equity:
Preferred stock		13,988		12,883		9
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares and 5,481,811,474 shares		9,136		9,136		-
Additional paid-in capital		59,945		59,802		-
Retained earnings		84,923		77,679		9
Cumulative other comprehensive income		1,797		5,650		(68)
Treasury stock – 179,654,752 shares and 215,497,298 shares		(5,858)		(6,610)		(11)
Unearned ESOP shares		(1,510)		(986)		53

Total Wells Fargo stockholders’ equity		162,421		157,554		3
Noncontrolling interests		1,356		1,357		-


Total equity		163,777		158,911		3


Total liabilities and equity	$	1,440,563		1,422,968		1

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET



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


Assets
Cash and due from banks	$	17,939		16,217		21,860		16,986		16,811
Federal funds sold, securities purchased under resale agreements and other short-term investments		148,665		143,804		137,313		100,442		74,635
Trading assets		58,619		62,274		57,482		60,592		64,419
Securities available for sale		249,439		248,160		235,199		229,350		226,846
Mortgages held for sale		38,785		46,702		47,149		50,337		50,462
Loans held for sale		190		194		110		298		853

Loans		801,974		799,966		799,574		782,630		775,199
Allowance for loan losses		(16,144)		(16,711)		(17,060)		(17,385)		(18,320)


Net loans		785,830		783,255		782,514		765,245		756,879

Mortgage servicing rights:
Measured at fair value		14,185		12,061		11,538		10,956		12,081
Amortized		1,176		1,181		1,160		1,144		1,130
Premises and equipment, net		9,190		9,263		9,428		9,165		9,317
Goodwill		25,637		25,637		25,637		25,637		25,406
Other assets		90,908		87,886		93,578		104,563		97,365


Total assets	$	1,440,563		1,436,634		1,422,968		1,374,715		1,336,204


Liabilities
Noninterest-bearing deposits	$	277,648		278,909		288,207		268,991		253,999
Interest-bearing deposits		743,937		731,824		714,628		683,248		674,934

Total deposits		1,021,585		1,010,733		1,002,835		952,239		928,933
Short-term borrowings		56,983		60,693		57,175		51,957		56,023
Accrued expenses and other liabilities		74,843		75,622		76,668		83,659		76,827
Long-term debt		123,375		126,191		127,379		130,801		124,984


Total liabilities		1,276,786		1,273,239		1,264,057		1,218,656		1,186,767


Equity
Wells Fargo stockholders’ equity:
Preferred stock		13,988		14,412		12,883		12,283		11,694
Common stock		9,136		9,136		9,136		9,105		9,054
Additional paid-in capital		59,945		60,136		59,802		59,089		58,091
Retained earnings		84,923		81,264		77,679		73,994		70,456
Cumulative other comprehensive income		1,797		5,145		5,650		6,435		4,629
Treasury stock		(5,858)		(6,036)		(6,610)		(5,186)		(4,638)
Unearned ESOP shares		(1,510)		(1,971)		(986)		(1,041)		(1,216)


Total Wells Fargo stockholders’ equity		162,421		162,086		157,554		154,679		148,070
Noncontrolling interests		1,356		1,309		1,357		1,380		1,367


Total equity		163,777		163,395		158,911		156,059		149,437


Total liabilities and equity	$	1,440,563		1,436,634		1,422,968		1,374,715		1,336,204

Wells Fargo & Company and Subsidiaries

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


	Quarter ended

	June 30, 2013							Mar. 31, 2013							Dec. 31, 2012							Sept. 30, 2012							June 30, 2012
($ in billions)	Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates				Average balance			Yields/ rates
Earning assets
Federal funds sold, securities purchased under resale agreements and other short-term investments	$	136.5			0.33	%	$		121.0			0.36	%	$		117.1			0.41	%	$		91.6			0.44	%	$		71.3			0.47	%
Trading assets		46.6			2.98				42.1			3.17				42.0			3.28				39.5			3.08				42.6			3.27
Securities available for sale (2):
Securities of U.S. Treasury and federal agencies		6.7			1.73				7.1			1.56				5.3			1.64				1.4			1.05				2.0			1.60
Securities of U.S. states and political subdivisions		39.3			4.42				37.6			4.38				36.4			4.64				35.9			4.36				34.5			4.39
Mortgage-backed securities:
Federal agencies		102.0			2.79				95.4			2.74				90.9			2.71				94.3			2.88				95.0			3.37
Residential and commercial		31.3			6.50				32.1			6.46				32.7			6.53				33.1			6.67				33.9			6.97

Total mortgage-backed securities		133.3			3.66				127.5			3.68				123.6			3.72				127.4			3.87				128.9			4.32
Other debt and equity securities		55.5			3.84				53.7			3.58				50.0			3.91				47.7			4.07				48.9			4.39

Total securities available for sale		234.8			3.77				225.9			3.70				215.3			3.87				212.4			3.98				214.3			4.32
Mortgages held for sale		43.4			3.48				43.3			3.42				47.2			3.50				52.1			3.65				49.5			3.86
Loans held for sale		0.2			7.85				0.1			8.83				0.1			9.03				0.9			7.38				0.9			5.48
Loans:
Commercial:
Commercial and industrial		186.1			3.69				184.5			3.73				179.5			3.85				177.5			3.84				171.8			4.21
Real estate mortgage		105.3			3.92				106.2			3.84				105.1			4.02				105.1			4.05				105.5			4.60
Real estate construction		16.4			5.02				16.6			4.84				17.5			4.97				17.7			5.21				17.9			4.96
Lease financing		12.3			6.66				12.4			6.78				12.4			6.43				12.6			6.60				12.9			6.86
Foreign		42.3			2.23				39.9			2.16				39.7			2.32				39.7			2.46				38.9			2.57

Total commercial		362.4			3.75				359.6			3.74				354.2			3.87				352.6			3.91				347.0			4.28

Consumer:
Real estate 1-4 family first mortgage		252.6			4.23				252.0			4.29				244.6			4.39				234.0			4.51				230.0			4.62
Real estate 1-4 family junior lien mortgage		71.4			4.29				74.1			4.28				76.9			4.28				79.7			4.26				82.1			4.30
Credit card		24.0			12.55				24.1			12.62				23.9			12.43				23.0			12.64				22.1			12.70
Automobile		47.9			7.05				46.6			7.20				46.0			7.34				45.7			7.44				44.6			7.59
Other revolving credit and installment		41.9			4.74				41.7			4.70				41.6			4.63				41.7			4.58				42.4			4.51

Total consumer		437.8			5.05				438.5			5.10				433.0			5.15				424.1			5.23				421.2			5.29

Total loans		800.2			4.46				798.1			4.49				787.2			4.58				776.7			4.63				768.2			4.83
Other		4.2			5.55				4.3			5.19				4.3			5.21				4.4			4.62				4.5			4.56

Total earning assets	$	1,265.9			3.80	%	$		1,234.8			3.86	%	$		1,213.2			3.96	%	$		1,177.6			4.09	%	$		1,151.3			4.37	%

Funding sources
Deposits:
Interest-bearing checking	$	40.4			0.06	%	$		32.2			0.06	%	$		30.9			0.06	%	$		28.8			0.06	%	$		30.4			0.07	%
Market rate and other savings		541.8			0.08				537.5			0.09				518.6			0.10				506.1			0.12				500.3			0.12
Savings certificates		52.6			1.23				55.2			1.22				56.7			1.27				58.2			1.29				60.4			1.34
Other time deposits		26.0			0.76				15.9			1.25				13.6			1.51				14.4			1.49				12.8			1.83
Deposits in foreign offices		68.9			0.15				71.1			0.14				69.4			0.15				71.8			0.16				65.6			0.17

Total interest-bearing deposits		729.7			0.19				711.9			0.21				689.2			0.23				679.3			0.25				669.5			0.27
Short-term borrowings		57.8			0.14				55.4			0.17				52.8			0.21				51.9			0.17				51.7			0.19
Long-term debt		125.5			2.02				127.1			2.20				127.5			2.30				127.5			2.37				127.7			2.48
Other liabilities		13.3			2.25				11.6			2.24				10.0			2.27				9.9			2.40				10.4			2.48

Total interest-bearing liabilities		926.3			0.47				906.0			0.51				879.5			0.55				868.6			0.58				859.3			0.62
Portion of noninterest-bearing funding sources		339.6			-				328.8			-				333.7			-				309.0			-				292.0			-

Total funding sources	$	1,265.9			0.34		$		1,234.8			0.38		$		1,213.2			0.40		$		1,177.6			0.43		$		1,151.3			0.46

Net interest margin on a taxable-equivalent basis					3.46	%						3.48	%						3.56	%						3.66	%						3.91	%

Noninterest-earning assets
Cash and due from banks	$	16.2							16.5							16.4							15.7							16.2
Goodwill		25.6							25.6							25.6							25.5							25.3
Other		121.3							127.4							131.9							135.5							128.8

Total noninterest-earnings assets	$	163.1							169.5							173.9							176.7							170.3

Noninterest-bearing funding sources
Deposits	$	280.0							274.2							286.9							267.2							254.5
Other liabilities		58.0							63.7							63.1							66.1							58.4
Total equity		164.7							160.4							157.6							152.4							149.4
Noninterest-bearing funding source sused to fund earning assets		(339.6	)						(328.8	)						(333.7	)						(309.0	)						(292.0	)

Net noninterest-bearing funding sources	$	163.1							169.5							173.9							176.7							170.3

Total assets	$	1,429.0							1,404.3							1,387.1							1,354.3							1,321.6

(1)	Our average prime rate was 3.25% for quarters ended June 30 and March 31, 2013, and December 31, September 30 and June 30, 2012. The average three-month London Interbank Offered Rate (LIBOR) was 0.28%, 0.29%, 0.32%, 0.43% and 0.47% for the same quarters, respectively.

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

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SECURITIES AVAILABLE FOR SALE



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

Securities of U.S. Treasury and federal agencies	$	6,383		6,884		7,146		1,869		1,493
Securities of U.S. states and political subdivisions		40,890		40,456		38,676		37,925		37,251
Mortgage-backed securities:
Federal agencies		110,561		105,472		97,285		102,713		101,863
Residential and commercial		33,423		35,179		35,899		36,098		35,646


Total mortgage-backed securities		143,984		140,651		133,184		138,811		137,509
Other debt securities		55,425		57,390		53,408		47,993		47,746


Total debt securities available for sale		246,682		245,381		232,414		226,598		223,999
Marketable equity securities		2,757		2,779		2,785		2,752		2,847


Total securities available for sale	$	249,439		248,160		235,199		229,350		226,846

FIVE QUARTER LOANS



(in millions)	June 30, 2013		Mar. 31, 2013		Dec. 31, 2012		Sept. 30, 2012		June 30, 2012
Commercial:
Commercial and industrial	$	188,758		185,623		187,759		178,191		177,646
Real estate mortgage		104,673		106,119		106,340		104,611		105,666
Real estate construction		16,442		16,650		16,904		17,710		17,594
Lease financing		11,766		12,402		12,424		12,279		12,729
Foreign (1)		41,833		40,920		37,771		39,741		40,417


Total commercial		363,472		361,714		361,198		352,532		354,052

Consumer:
Real estate 1-4 family first mortgage		252,841		252,307		249,900		240,554		230,263
Real estate 1-4 family junior lien mortgage		70,059		72,543		75,465		78,091		80,881
Credit card		24,815		24,120		24,640		23,692		22,706
Automobile		48,648		47,259		45,998		46,044		45,180
Other revolving credit and installment		42,139		42,023		42,373		41,717		42,117


Total consumer		438,502		438,252		438,376		430,098		421,147



Total loans (2)	$	801,974		799,966		799,574		782,630		775,199

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

(2)	Includes $28.8 billion, $29.7 billion, $31.0 billion, $32.5 billion and $33.8 billion of purchased credit-impaired (PCI) loans at June 30 and March 31, 2013, and December 31, September 30 and June 30, 2012, respectively. See the PCI loans table for detail of PCI loans.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONPERFORMING ASSETS (NONACCRUAL LOANS AND FORECLOSED ASSETS)



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

Nonaccrual loans:
Commercial:
Commercial and industrial	$	1,022			1,193		1,422		1,404		1,549
Real estate mortgage		2,708			3,098		3,322		3,599		3,832
Real estate construction		665			870		1,003		1,253		1,421
Lease financing		20			25		27		49		43
Foreign		40			56		50		66		79


Total commercial		4,455			5,242		5,824		6,371		6,924

Consumer:
Real estate 1-4 family first mortgage		10,705			11,320		11,455		11,195		10,368
Real estate 1-4 family junior lien mortgage		2,522			2,712		2,922		3,140		3,091
Automobile		200			220		245		295		164
Other revolving credit and installment		33			32		40		43		31

Total consumer (1)		13,460			14,284		14,662		14,673		13,654

Total nonaccrual loans (2)(3)(4)		17,915			19,526		20,486		21,044		20,578

As a percentage of total loans		2.23	%		2.44		2.56		2.69		2.65
Foreclosed assets:
Government insured/guaranteed (5)	$	1,026			969		1,509		1,479		1,465
Non-government insured/guaranteed		2,114			2,381		2,514		2,730		2,842


Total foreclosed assets		3,140			3,350		4,023		4,209		4,307


Total nonperforming assets	$	21,055			22,876		24,509		25,253		24,885


As a percentage of total loans		2.63	%		2.86		3.07		3.23		3.21

(1)

Includes $1.4 billion at September 30, 2012, resulting from implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.

(2)	Also includes nonaccrual mortgages held for sale and loans held for sale in their respective loan categories.

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

(4)

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.

(5)

Consistent with regulatory reporting requirements, foreclosed real estate securing government insured/guaranteed loans is classified as nonperforming. Both principal and interest for government insured/guaranteed loans secured by the foreclosed real estate are collectible because the loans are predominantly insured by the FHA or guaranteed by the VA.

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING



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

Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	22,197		23,082		23,245		22,894		22,872
Less: FHA insured/VA guaranteed (2)		20,112		20,745		20,745		20,320		20,368
Less: Student loans guaranteed under the FFELP (3)		931		977		1,065		1,082		1,144


Total, not government insured/guaranteed	$	1,154		1,360		1,435		1,492		1,360

By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	37		47		47		49		44
Real estate mortgage		175		164		228		206		184
Real estate construction		4		47		27		41		25
Foreign		-		7		1		2		3


Total commercial		216		265		303		298		256

Consumer:
Real estate 1-4 family first mortgage (4)		476		563		564		627		561
Real estate 1-4 family junior lien mortgage (4)		92		112		133		151		159
Credit card		263		306		310		288		274
Automobile		32		33		40		43		36
Other revolving credit and installment		75		81		85		85		74


Total consumer		938		1,095		1,132		1,194		1,104


Total, not government insured/guaranteed	$	1,154		1,360		1,435		1,492		1,360

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $ 5.4 billion, $5.8 billion, $6.0 billion, $6.2 billion and $6.6 billion, at June 30 and March 31, 2013, and December 31, September 30 and June 30, 2012, respectively. These amounts are excluded from the above table as PCI loan accretable yield interest recognition is independent from the underlying contractual loan delinquency status.

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

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

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

Wells Fargo & Company and Subsidiaries

PURCHASED CREDIT-IMPAIRED (PCI) LOANS

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

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

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

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




	June 30,		December 31,


(in millions)	2013		2012		2008


Commercial:
Commercial and industrial	$	195		259		4,580
Real estate mortgage		1,746		1,970		5,803
Real estate construction		602		877		6,462
Foreign		714		871		1,859


Total commercial		3,257		3,977		18,704


Consumer:
Real estate 1-4 family first mortgage		25,408		26,839		39,214
Real estate 1-4 family junior lien mortgage		134		152		728
Automobile		-		-		151


Total consumer		25,542		26,991		40,093


Total PCI loans (carrying value)	$	28,799		30,968		58,797

Wells Fargo & Company and Subsidiaries

CHANGES IN NONACCRETABLE DIFFERENCE FOR PCI LOANS

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



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


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

Addition of nonaccretable difference due to acquisitions		195		-		-		195

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


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

Addition of nonaccretable difference due to acquisitions		-		-		-		-

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(47)		-		-		(47)
Loans resolved by sales to third parties (2)		(5)		-		-		(5)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(41)		(866)		-		(907)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(18)		(486)		(60)		(564)


Balance, June 30, 2013	$	311		4,880		250		5,441


Balance, March 31, 2013	$	336		5,887		263		6,486

Addition of nonaccretable difference due to acquisitions		-		-		-		-

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(17)		-		-		(17)
Loans resolved by sales to third parties (2)		-		-		-		-
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(10)		(866)		-		(876)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		2		(141)		(13)		(152)

Balance, June 30, 2013	$	311		4,880		250		5,441

(1)

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

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

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

(4)	Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

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

•

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

•

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

•

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

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




(in millions)


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


Balance, December 31, 2012	$	18,548
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(905)
Accretion into noninterest income due to sales (2)		(151)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		907
Changes in expected cash flows that do not affect nonaccretable difference (3)		1,622


Balance, June 30, 2013	$	20,021


Balance, March 31, 2013	$	17,965
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(458)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		876

Changes in expected cash flows that do not affect nonaccretable difference (3)		1,638

Balance, June 30, 2013	$	20,021

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

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

(3)	Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.

CHANGES IN ALLOWANCE FOR PCI LOAN LOSSES

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



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

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


Balance, December 31, 2012		88		-		29		117
Provision for losses due to credit deterioration / (reversal of provision)		(34)		-		1		(33)
Charge-offs		(5)		-		(8)		(13)

Balance, June 30, 2013	$	49		-		22		71


Balance, March 31, 2013	$	53		-		27		80
Provision for losses due to credit deterioration / (reversal of provision)		(2)		-		1		(1)
Charge-offs		(2)		-		(6)		(8)


Balance, June 30, 2013	$	49		-		22		71

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	June 30, 2013

	PCI loans										All other loans

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


California	$	20,585		103	%	$	16,570		82	%	$	14,450		75	%
Florida		2,605		107			2,070		79			3,026		87
New Jersey		1,143		91			1,183		89			1,925		78
New York		657		88			667		85			866		77
Texas		285		76			270		71			1,183		61
Other states		5,002		97			4,347		82			8,198		81

Total Pick-a-Pay loans	$	30,277				$	25,107				$	29,648

(1)	The individual states shown in this table represent the top five states based on the total net carrying value of the Pick-a-Pay loans at the beginning of 2013.

(2)	Adjusted unpaid principal balance includes write-downs taken on loans where severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan.

(3)

The current LTV ratio is calculated as the adjusted unpaid principal balance divided by the collateral value. Collateral values are generally determined using automated valuation models (AVM) and are updated quarterly. AVMs are computer-based tools used to estimate market values of homes based on processing large volumes of market data including market comparables and price trends for local market areas.

(4)

Carrying value, which does not reflect the allowance for loan losses, includes remaining purchase accounting adjustments, which, for PCI loans may include the nonaccretable difference and the accretable yield and, for all other loans, an adjustment to mark the loans to a market yield at date of merger less any subsequent charge-offs.

(5)	The ratio of carrying value to current value is calculated as the carrying value divided by the collateral value.

NON-STRATEGIC AND LIQUIDATING LOAN PORTFOLIOS




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


Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	2,532		2,770		3,170		3,836		4,278


Total commercial		2,532		2,770		3,170		3,836		4,278


Consumer:
Pick-a-Pay mortgage (1)		54,755		56,608		58,274		60,080		62,045
Liquidating home equity		4,173		4,421		4,647		4,951		5,199
Legacy Wells Fargo Financial indirect auto		428		593		830		1,104		1,454
Legacy Wells Fargo Financial debt consolidation		13,707		14,115		14,519		15,002		15,511
Education Finance-government guaranteed		11,534		11,922		12,465		12,951		13,823
Legacy Wachovia other PCI loans (1)		435		462		657		732		818


Total consumer		85,032		88,121		91,392		94,820		98,850


Total non-strategic and liquidating loan portfolios	$	87,564		90,891		94,562		98,656		103,128

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

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES


	Quarter ended June 30,					Six months ended June 30,


(in millions)	2013			2012		2013		2012


Balance, beginning of period	$	17,193			19,129		17,477		19,668
Provision for credit losses		652			1,800		1,871		3,795
Interest income on certain impaired loans (1)		(73)			(82)		(146)		(169)
Loan charge-offs:
Commercial:
Commercial and industrial		(184)			(360)		(365)		(719)
Real estate mortgage		(49)			(114)		(109)		(196)
Real estate construction		(7)			(60)		(12)		(140)
Lease financing		(24)			(5)		(27)		(13)
Foreign		(8)			(17)		(19)		(46)


Total commercial		(272)			(556)		(532)		(1,114)


Consumer:
Real estate 1-4 family first mortgage		(392)			(772)		(867)		(1,600)
Real estate 1-4 family junior lien mortgage		(428)			(757)		(942)		(1,577)
Credit card		(266)			(286)		(532)		(587)
Automobile		(126)			(131)		(290)		(310)
Other revolving credit and installment		(185)			(187)		(367)		(381)


Total consumer		(1,397)			(2,133)		(2,998)		(4,455)


Total loan charge-offs		(1,669)			(2,689)		(3,530)		(5,569)


Loan recoveries:
Commercial:
Commercial and industrial		107			111		195		214
Real estate mortgage		54			33		85		69
Real estate construction		52			43		91		56
Lease financing		6			5		10		11
Foreign		9			6		17		21


Total commercial		228			198		398		371

Consumer:
Real estate 1-4 family first mortgage		64			29		110		66
Real estate 1-4 family junior lien mortgage		69			68		134		125
Credit card		32			46		63		105
Automobile		84			103		172		208
Other revolving credit and installment		40			45		82		99


Total consumer		289			291		561		603


Total loan recoveries		517			489		959		974


Net loan charge-offs (2)		(1,152)			(2,200)		(2,571)		(4,595)


Allowances related to business combinations/other		(2)			(1)		(13)		(53)


Balance, end of period	$	16,618			18,646		16,618		18,646


Components:
Allowance for loan losses	$	16,144			18,320		16,144		18,320
Allowance for unfunded credit commitments		474			326		474		326


Allowance for credit losses (3)	$	16,618			18,646		16,618		18,646

Net loan charge-offs (annualized) as a percentage of average total loans (2)		0.58	%		1.15		0.65		1.20
Allowance for loan losses as a percentage of total loans (3)		2.01			2.36		2.01		2.36
Allowance for credit losses as a percentage of total loans (3)		2.07			2.41		2.07		2.41

(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 $71 million and $212 million at June 30, 2013 and 2012, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES


	Quarter ended


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


Balance, beginning of quarter	$	17,193			17,477		17,803		18,646		19,129
Provision for credit losses		652			1,219		1,831		1,591		1,800
Interest income on certain impaired loans (1)		(73)			(73)		(70)		(76)		(82)
Loan charge-offs:
Commercial:
Commercial and industrial		(184)			(181)		(302)		(285)		(360)
Real estate mortgage		(49)			(60)		(86)		(100)		(114)
Real estate construction		(7)			(5)		(10)		(41)		(60)
Lease financing		(24)			(3)		(6)		(5)		(5)
Foreign		(8)			(11)		(30)		(35)		(17)


Total commercial		(272)			(260)		(434)		(466)		(556)


Consumer:
Real estate 1-4 family first mortgage		(392)			(475)		(694)		(719)		(772)
Real estate 1-4 family junior lien mortgage		(428)			(514)		(765)		(1,095)		(757)
Credit card		(266)			(266)		(259)		(255)		(286)
Automobile		(126)			(164)		(189)		(152)		(131)
Other revolving credit and installment		(185)			(182)		(192)		(184)		(187)


Total consumer (2)		(1,397)			(1,601)		(2,099)		(2,405)		(2,133)


Total loan charge-offs		(1,669)			(1,861)		(2,533)		(2,871)		(2,689)


Loan recoveries:
Commercial:
Commercial and industrial		107			88		93		154		111
Real estate mortgage		54			31		48		46		33
Real estate construction		52			39		28		40		43
Lease financing		6			4		4		4		5
Foreign		9			8		6		5		6


Total commercial		228			170		179		249		198

Consumer:
Real estate 1-4 family first mortgage		64			46		45		46		29
Real estate 1-4 family junior lien mortgage		69			65		75		59		68
Credit card		32			31		37		43		46
Automobile		84			88		77		77		103
Other revolving credit and installment		40			42		39		39		45


Total consumer		289			272		273		264		291


Total loan recoveries		517			442		452		513		489


Net loan charge-offs		(1,152)			(1,419)		(2,081)		(2,358)		(2,200)


Allowances related to business combinations/other		(2)			(11)		(6)		-		(1)


Balance, end of quarter	$	16,618			17,193		17,477		17,803		18,646


Components:
Allowance for loan losses	$	16,144			16,711		17,060		17,385		18,320
Allowance for unfunded credit commitments		474			482		417		418		326


Allowance for credit losses	$	16,618			17,193		17,477		17,803		18,646

Net loan charge-offs (annualized) as a percentage of average total loans		0.58	%		0.72		1.05		1.21		1.15
Allowance for loan losses as a percentage of:
Total loans		2.01			2.09		2.13		2.22		2.36
Nonaccrual loans		90			86		83		83		89
Nonaccrual loans and other nonperforming assets		77			73		70		69		74
Allowance for credit losses as a percentage of:
Total loans		2.07			2.15		2.19		2.27		2.41
Nonaccrual loans		93			88		85		85		91
Nonaccrual loans and other nonperforming assets		79			75		71		70		75

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

(2)

Includes $321 million and $567 million for the quarters ended December 31 and September 30, 2012, respectively, resulting from the implementation of OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER TIER 1 COMMON EQUITY UNDER BASEL I (1)



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


Total equity		$	163.8			163.4		158.9		156.1		149.4
Noncontrolling interests			(1.4)			(1.3)		(1.3)		(1.4)		(1.3)


Total Wells Fargo stockholders’ equity		$	162.4			162.1		157.6		154.7		148.1


Adjustments:
Preferred equity			(12.6)			(12.6)		(12.0)		(11.3)		(10.6)
Goodwill and intangible assets (other than MSRs)			(32.2)			(32.5)		(32.9)		(33.4)		(33.5)
Applicable deferred taxes			3.0			3.1		3.2		3.3		3.5
Deferred tax asset limitation			-			-		-		-		-
MSRs over specified limitations			(0.8)			(0.8)		(0.7)		(0.7)		(0.7)
Cumulative other comprehensive income			(1.8)			(5.1)		(5.6)		(6.4)		(4.6)
Other			(0.4)			(0.6)		(0.6)		(0.4)		(0.5)


Tier 1 common equity	(A)	$	117.6			113.6		109.0		105.8		101.7


Total risk-weighted assets (2)	(B)	$	1,095.8			1,094.3		1,077.1		1,067.1		1,008.6


Tier 1 common equity to total risk-weighted assets (2)	(A)/(B)		10.73	%		10.39		10.12		9.92		10.08

(1)

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

(2)

Under the regulatory guidelines for risk-based capital, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories according to the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar amount in each risk category is then multiplied by the risk weight associated with that category. The Company’s June 30, 2013, risk-weighted assets (RWA) and resulting Tier 1 common equity to total RWA are preliminary and reflect total estimated on-balance sheet and total estimated derivative and off-balance sheet RWA of $881.4 billion and $214.4 billion, respectively. Effective September 30, 2012, the Company refined its determination of the risk weighting of certain unused lending commitments that provide for the ability to issue standby letters of credit and commitments to issue standby letters of credit under syndication arrangements where the Company has an obligation to issue in a lead agent or similar capacity beyond its contractual participation level.

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



(in billions)		June 30, 2013


Tier 1 common equity under Basel I		$	117.6


Adjustments from Basel I to Basel III (3) (5):

Cumulative other comprehensive income related to AFS securities and defined benefit pension plans			1.6

Other			0.8

Total adjustments from Basel I to Basel III			2.4
Threshold deductions, as defined under Basel III (4) (5)			-


Tier 1 common equity anticipated under Basel III	(C)	$	120.0


Total risk-weighted assets anticipated under Basel III (6)	(D)	$	1,404.1


Tier 1 common equity to total risk-weighted assets anticipated under Basel III	(C)/(D)		8.54	%

(1)

(2)

The Basel III Tier 1 common equity and risk-weighted assets are estimated based on management’s interpretation of the Basel III capital rules adopted July 2, 2013, by the Federal Reserve Board. The rules establish a new comprehensive capital framework for U.S. banking organizations that implement the Basel III capital framework and certain provisions of the Dodd-Frank Act.

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

(4)	Threshold deductions, as defined under Basel III, include individual and aggregate limitations, as a percentage of Tier 1 common equity, with respect to MSRs, deferred tax assets and investments in unconsolidated financial companies.

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

(6)

The estimate of RWA reflects management’s interpretation of RWA determined under Basel III capital rules adopted by the Federal Reserve Board that incorporates different classifications of assets, with certain risk weights based on a borrower’s credit rating or Wells Fargo’s own models, along with adjustments to address a combination of credit/counterparty, operational and market risks, and other Basel III elements.

Wells Fargo & Company and Subsidiaries

OPERATING SEGMENT RESULTS (1)



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

	2013		2012		2013		2012		2013		2012		2013		2012		2013		2012


Quarter ended June 30,
Net interest income (3)	$	7,251		7,306		3,101		3,347		700		698		(302)		(314)		10,750		11,037
Provision (reversal of provision) for credit losses		763		1,573		(118)		188		19		37		(12)		2		652		1,800
Noninterest income		5,691		5,786		3,034		2,770		2,561		2,273		(658)		(577)		10,628		10,252
Noninterest expense		7,213		7,580		3,183		3,113		2,542		2,376		(683)		(672)		12,255		12,397


Income (loss) before income tax expense (benefit)		4,966		3,939		3,070		2,816		700		558		(265)		(221)		8,471		7,092
Income tax expense (benefit)		1,633		1,313		1,065		932		266		210		(101)		(84)		2,863		2,371


Net income (loss) before noncontrolling interests		3,333		2,626		2,005		1,884		434		348		(164)		(137)		5,608		4,721
Less: Net income from noncontrolling interests		88		91		1		3		-		5		-		-		89		99


Net income (loss) (4)	$	3,245		2,535		2,004		1,881		434		343		(164)		(137)		5,519		4,622

Average loans	$	498.2		483.9		286.9		270.2		45.4		42.5		(30.3)		(28.4)		800.2		768.2
Average assets		820.9		746.6		499.9		478.4		177.1		160.9		(68.9)		(64.3)		1,429.0		1,321.6
Average core deposits		623.0		586.1		230.5		220.9		146.4		134.2		(63.8)		(60.6)		936.1		880.6


Six months ended June 30,
Net interest income (3)	$	14,370		14,632		6,106		6,528		1,369		1,399		(596)		(634)		21,249		21,925
Provision (reversal of provision) for credit losses		2,025		3,451		(176)		283		33		80		(11)		(19)		1,871		3,795
Noninterest income		11,471		11,881		6,115		5,622		5,089		4,634		(1,287)		(1,137)		21,388		21,000
Noninterest expense		14,590		15,405		6,274		6,167		5,181		4,923		(1,390)		(1,105)		24,655		25,390


Income (loss) before income tax expense (benefit)		9,226		7,657		6,123		5,700		1,244		1,030		(482)		(647)		16,111		13,740
Income tax expense (benefit)		2,921		2,606		2,072		1,948		473		391		(183)		(246)		5,283		4,699


Net income (loss) before noncontrolling interests		6,305		5,051		4,051		3,752		771		639		(299)		(401)		10,828		9,041
Less: Net income from noncontrolling interests		136		168		2		3		-		-		-		-		138		171


Net income (loss) (4)	$	6,169		4,883		4,049		3,749		771		639		(299)		(401)		10,690		8,870


Average loans	$	498.6		485.0		285.7		269.4		44.6		42.5		(29.7)		(28.5)		799.2		768.4
Average assets		810.3		742.5		498.0		473.1		178.7		161.4		(70.3)		(64.7)		1,416.7		1,312.3
Average core deposits		621.1		580.7		227.3		220.9		147.9		134.9		(65.3)		(60.9)		931.0		875.6

(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. In first quarter 2012, we modified internal funds transfer rates and the allocation of funding.

(2)

Includes Wachovia integration expenses, through completion in the first quarter of 2012, and the elimination of items that are included in both Community Banking and Wealth, Brokerage and Retirement, largely representing services and products for wealth management customers provided in Community Banking stores.

(3)

Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to other segments. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of excess liabilities from another segment.

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

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)



							Quarter ended

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


COMMUNITY BANKING
Net interest income (2)	$	7,251		7,119		7,166		7,247		7,306
Provision for credit losses		763		1,262		1,757		1,627		1,573
Noninterest income		5,691		5,780		6,616		5,863		5,786
Noninterest expense		7,213		7,377		8,033		7,402		7,580


Income before income tax expense		4,966		4,260		3,992		4,081		3,939
Income tax expense		1,633		1,288		918		1,250		1,313


Net income before noncontrolling interests		3,333		2,972		3,074		2,831		2,626
Less: Net income from noncontrolling interests		88		48		205		91		91


Segment net income	$	3,245		2,924		2,869		2,740		2,535


Average loans	$	498.2		498.9		493.1		485.3		483.9
Average assets		820.9		799.6		794.2		765.1		746.6
Average core deposits		623.0		619.2		608.9		594.5		586.1



WHOLESALE BANKING
Net interest income (2)	$	3,101		3,005		3,092		3,028		3,347
Provision (reversal of provision) for credit losses		(118)		(58)		60		(57)		188
Noninterest income		3,034		3,081		2,901		2,921		2,770
Noninterest expense		3,183		3,091		3,007		2,908		3,113


Income before income tax expense		3,070		3,053		2,926		3,098		2,816
Income tax expense		1,065		1,007		892		1,103		932


Net income before noncontrolling interests		2,005		2,046		2,034		1,995		1,884
Less: Net income from noncontrolling interests		1		1		2		2		3


Segment net income	$	2,004		2,045		2,032		1,993		1,881


Average loans	$	286.9		284.5		279.2		277.1		270.2
Average assets		499.9		496.1		489.7		490.7		478.4
Average core deposits		230.5		224.1		240.7		225.4		220.9



WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	700		669		689		680		698
Provision for credit losses		19		14		15		30		37
Noninterest income		2,561		2,528		2,405		2,353		2,273
Noninterest expense		2,542		2,639		2,513		2,457		2,376


Income before income tax expense		700		544		566		546		558
Income tax expense		266		207		215		208		210


Net income before noncontrolling interests		434		337		351		338		348
Less: Net income from noncontrolling interests		-		-		-		-		5


Segment net income	$	434		337		351		338		343


Average loans	$	45.4		43.8		43.3		42.5		42.5
Average assets		177.1		180.3		171.7		163.8		160.9
Average core deposits		146.4		149.4		143.4		136.7		134.2



OTHER (3)
Net interest income (2)	$	(302)		(294)		(304)		(293)		(314)
Provision (reversal of provision) for credit losses		(12)		1		(1)		(9)		2
Noninterest income		(658)		(629)		(617)		(586)		(577)
Noninterest expense		(683)		(707)		(657)		(655)		(672)


Loss before income tax benefit		(265)		(217)		(263)		(215)		(221)
Income tax benefit		(101)		(82)		(101)		(81)		(84)


Net loss before noncontrolling interests		(164)		(135)		(162)		(134)		(137)
Less: Net income from noncontrolling interests		-		-		-		-		-


Other net loss	$	(164)		(135)		(162)		(134)		(137)


Average loans	$	(30.3)		(29.1)		(28.4)		(28.2)		(28.4)
Average assets		(68.9)		(71.7)		(68.5)		(65.3)		(64.3)
Average core deposits		(63.8)		(66.8)		(64.2)		(61.2)		(60.6)



CONSOLIDATED COMPANY
Net interest income (2)	$	10,750		10,499		10,643		10,662		11,037
Provision for credit losses		652		1,219		1,831		1,591		1,800
Noninterest income		10,628		10,760		11,305		10,551		10,252
Noninterest expense		12,255		12,400		12,896		12,112		12,397


Income before income tax expense		8,471		7,640		7,221		7,510		7,092
Income tax expense		2,863		2,420		1,924		2,480		2,371


Net income before noncontrolling interests		5,608		5,220		5,297		5,030		4,721
Less: Net income from noncontrolling interests		89		49		207		93		99

Wells Fargo net income	$	5,519		5,171		5,090		4,937		4,622


Average loans	$	800.2		798.1		787.2		776.7		768.2
Average assets		1,429.0		1,404.3		1,387.1		1,354.3		1,321.6
Average core deposits		936.1		925.9		928.8		895.4		880.6

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

(2)

(3)

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING



	Quarter ended

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


MSRs measured using the fair value method:

Fair value, beginning of quarter	$	12,061		11,538		10,956		12,081		13,578

Servicing from securitizations or asset transfers		1,060		935		1,094		1,173		1,139
Sales		(160)		(423)		-		-		(293)


Net additions		900		512		1,094		1,173		846


Changes in fair value:

Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (1)		2,223		1,030		388		(1,131)		(1,496)
Servicing and foreclosure costs (2)		(82)		(58)		(127)		(350)		(146)
Discount rates (3)		-		-		(53)		-		-
Prepayment estimates and other (4)		(274)		(211)		115		54		11


Net changes in valuation model inputs or assumptions		1,867		761		323		(1,427)		(1,631)


Other changes in fair value (5)		(643)		(750)		(835)		(871)		(712)


Total changes in fair value		1,224		11		(512)		(2,298)		(2,343)

Fair value, end of quarter	$	14,185		12,061		11,538		10,956		12,081

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

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

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

(4)	Represents changes driven by other valuation model inputs or assumptions including prepayment speed estimation changes and other assumption updates. Prepayment speed estimation changes are influenced by observed changes in borrower behavior that occur independent of interest rate changes.

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



	Quarter ended

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


Amortized MSRs:

Balance, beginning of quarter	$	1,181		1,160		1,144		1,130		1,074
Purchases		26		27		43		42		78
Servicing from securitizations or asset transfers		31		56		34		30		34
Amortization		(62)		(62)		(61)		(58)		(56)


Balance, end of quarter		1,176		1,181		1,160		1,144		1,130




Fair value of amortized MSRs:

Beginning of quarter	$	1,404		1,400		1,399		1,450		1,263
End of quarter		1,533		1,404		1,400		1,399		1,450

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)




	Quarter ended

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


Servicing income, net:
Servicing fees (1)	$	1,030		997		926		984		1,070
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		1,867		761		323		(1,427)		(1,631)
Other changes in fair value (3)		(643)		(750)		(835)		(871)		(712)


Total changes in fair value of MSRs carried at fair value		1,224		11		(512)		(2,298)		(2,343)
Amortization		(62)		(62)		(61)		(58)		(56)
Net derivative gains (losses) from economic hedges (4)		(1,799)		(632)		(103)		1,569		2,008


Total servicing income, net	$	393		314		250		197		679


Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	68		129		220		142		377

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

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

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

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



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

Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,487			1,486		1,498		1,508		1,499
Owned loans serviced		358			367		368		364		357
Subservicing		6			7		7		7		7


Total residential servicing		1,851			1,860		1,873		1,879		1,863


Commercial mortgage servicing:
Serviced for others		409			404		408		405		406
Owned loans serviced		105			106		106		105		106
Subservicing		11			14		13		13		13

Total commercial servicing		525			524		527		523		525


Total managed servicing portfolio	$	2,376			2,384		2,400		2,402		2,388


Total serviced for others	$	1,896			1,890		1,906		1,913		1,905
Ratio of MSRs to related loans serviced for others		0.81	%		0.70		0.67		0.63		0.69
Weighted-average note rate (mortgage loans serviced for others)		4.59			4.69		4.77		4.87		4.97

(1)	The components of our managed servicing portfolio are presented at unpaid principal balance for loans serviced and subserviced for others and at book value for owned loans serviced.

SELECTED FIVE QUARTER RESIDENTIAL MORTGAGE PRODUCTION DATA




	Quarter ended

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


Application data:
Wells Fargo first mortgage quarterly applications	$	146			140		152		188		208
Refinances as a percentage of applications		54	%		65		72		72		69
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	63			74		81		97		102




Residential real estate originations:
Wells Fargo first mortgage loans:
Retail	$	62			59		63		61		62
Correspondent/Wholesale		50			49		61		77		68
Other (1)		-			1		1		1		1


Total quarter-to-date	$	112			109		125		139		131

Total year-to-date	$	221			109		524		399		260

(1)	Consists of home equity loans and lines.

Wells Fargo & Company and Subsidiaries

CHANGES IN MORTGAGE REPURCHASE LIABILITY



	Quarter ended						Six months ended

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

Balance, beginning of period	$	2,317		2,206		1,444		2,206		1,326
Provision for repurchase losses:
Loan sales		40		59		72		99		134
Change in estimate (1)		25		250		597		275		965


Total additions		65		309		669		374		1,099

Losses		(160)		(198)		(349)		(358)		(661)


Balance, end of period	$	2,222		2,317		1,764		2,222		1,764

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

UNRESOLVED REPURCHASE DEMANDS AND MORTGAGE INSURANCE RESCISSIONS



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

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

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

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

September 30, 2012
Number of loans		6,525		1,513		817		8,855
Original loan balance (3)	$	1,489		331		183		2,003

June 30, 2012
Number of loans		5,687		913		840		7,440
Original loan balance (3)	$	1,265		213		188		1,666

(1)

Includes repurchase demands of 942 and $190 million, 674 and $147 million, 661 and $132 million, 534 and $111 million, and 526 and $103 million, for June 30 and March 31, 2013, and December 31, September 30, and June 30, 2012, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller. The number of repurchase demands from GSEs that are from mortgage loans originated in 2006 through 2008 totaled 89% at June 30, 2013.

(2)

As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private). Over the last year, approximately 15% of our repurchase demands from GSEs had mortgage insurance rescission as one of the reasons for the repurchase demand. Of all the mortgage insurance rescission notices received in 2012, approximately 75% have resulted in repurchase demands through June 2013. Not all mortgage insurance rescissions received in 2012 have been completed through the appeals process with the mortgage insurer and, upon successful appeal, we work with the investor to rescind the repurchase demand.

(3)

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

Investors

Mary Eshet