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

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

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8-K - FORM 8-K - WELLS FARGO & COMPANY/MN	d803270d8k.htm
EX-99.2 - EX-99.2 - WELLS FARGO & COMPANY/MN	d803270dex992.htm

Exhibit 99.1

LOGO

Tuesday, October 14, 2014

WELLS FARGO REPORTS $5.7 BILLION IN NET INCOME

Diluted EPS of $1.02, Up 3 Percent From Prior Year

•

Continued strong financial results:

Net income of $5.7 billion, up 3 percent from third quarter 2013

Diluted earnings per share (EPS) of $1.02, up 3 percent

Revenue of $21.2 billion, up 4 percent

Pre-tax pre-provision profit¹ of $9.0 billion, up 7 percent

Efficiency ratio of 57.7 percent, improved by 140 basis points

Return on assets (ROA) of 1.40 percent and return on equity (ROE) of 13.10 percent

•

Strong loan and deposit growth:

Total average loans of $833.2 billion, up $31.1 billion, or 4 percent, from third quarter 2013

Quarter-end loans of $838.9 billion, up $29.7 billion, or 4 percent

Quarter-end core loans of $775.8 billion, up $50.8 billion, or 7 percent²

Total average deposits of $1.1 trillion, up $101.5 billion, or 10 percent

•

Continued improvement in credit quality:

Net charge-offs of $668 million, down $307 million from third quarter 2013

Net charge-off rate of 0.32 percent (annualized), down from 0.48 percent

Nonperforming assets down $3.0 billion, or 15 percent

$300 million reserve release³ due to improvement in credit quality

•

Maintained strong capital levels⁴ and continued share repurchases:

Common Equity Tier 1 ratio under Basel III (General Approach) of 11.16 percent at September 30, 2014

Common Equity Tier 1 ratio under Basel III (Advanced Approach, fully phased-in) of 10.46 percent

Period-end common shares outstanding down 34.9 million in third quarter on 48.7 million of purchases

Entered into a forward repurchase transaction for an additional estimated 19.8 million shares expected to settle in fourth quarter 2014

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

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

³ Reserve release represents the amount by which net charge-offs exceed the provision for credit losses.

⁴ See tables on page 38 for more information on Common Equity Tier 1. Common Equity Tier 1 (Advanced Approach, fully phased-in) is estimated based on 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.

- 2 -

Selected Financial Information



				Quarter ended

	Sept. 30,			June 30,		Sept. 30,
	2014			2014		2013


Earnings
Diluted earnings per common share	$	1.02			1.01		0.99
Wells Fargo net income (in billions)		5.73			5.73		5.58
Return on assets (ROA)		1.40	%		1.47		1.53
Return on equity (ROE)		13.10			13.40		14.07

Asset Quality
Net charge-offs (annualized) as a % of avg. total loans		0.32			0.35		0.48
Allowance for credit losses as a % of total loans		1.61			1.67		1.93
Allowance for credit losses as a % of annualized net charge-offs		509			481		405

Other
Revenue (in billions)	$	21.2			21.1		20.5
Efficiency ratio		57.7	%		57.9		59.1
Average loans (in billions)	$	833.2			831.0		802.1
Average core deposits (in billions)		1,012.2			991.7		940.3
Net interest margin		3.06	%		3.15		3.39

SAN FRANCISCO – Wells Fargo & Company (NYSE:WFC) reported net income of $5.7 billion, or $1.02 per diluted common share, for third quarter 2014, up from $5.6 billion, or $0.99 per share, for third quarter 2013. For the first nine months of 2014, net income was $17.3 billion, or $3.08 per share, up from $16.3 billion, or $2.89 per share, for the same period in 2013.

“The Company’s third quarter results demonstrated strength in the fundamental drivers of our long-term growth,” said Chairman and CEO John Stumpf. “Loan and deposit growth was strong and diversified across both commercial and consumer businesses. Capital levels increased even as we returned more capital to shareholders through higher dividends and share repurchases from a year ago. We continue to see signs of a steadily improving economy, and I remain optimistic about the opportunities ahead for Wells Fargo. Our team remains committed to meeting the financial needs of our customers, and this focus will continue to drive our performance over the long term.”

Chief Financial Officer John Shrewsberry said, “This was a strong quarter for Wells Fargo and again demonstrated the benefits of our diversified business model. Despite the low interest rate environment, revenue and pre-tax pre-provision profit increased linked quarter, and we continued to operate within our target ranges for ROA, ROE, efficiency ratio, and capital return to shareholders. We also remain well positioned to benefit from higher rates in the future, and our balance sheet has never been stronger, with higher levels of capital and liquidity, and improved asset quality.”

Revenue

Revenue was $21.2 billion, up from $21.1 billion in second quarter 2014, reflecting an increase of $150 million in net interest income and stable noninterest income. Revenue sources remained balanced between spread and fee income and the sources of fee income were diversified among our consumer, commercial and brokerage businesses.

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Net Interest Income

Net interest income in third quarter 2014 increased $150 million on a linked-quarter basis to $10.9 billion. The increase in net interest income resulted from balance sheet growth driven by commercial and consumer loan originations, larger mortgages held for sale balances and higher interest income from trading assets, as well as higher purchased credit-impaired accretion. Net interest income also benefited from one additional business day in the quarter.

Net interest margin was 3.06 percent, down 9 basis points from second quarter 2014, primarily due to higher cash and short-term investment balances. Strong customer driven deposit growth, which is essentially neutral to net interest income, diluted net interest margin by approximately 4 basis points. Liquidity funding actions also diluted the margin by 4 basis points, but with minimal impact to net interest income. The net impact of all other balance sheet growth and repricing was minimal, causing approximately 1 basis point of dilution.

Noninterest Income

Noninterest income was $10.3 billion, unchanged from the prior quarter. Higher market sensitive revenue⁵, as well as higher mortgage origination gains and brokerage advisory fees were offset by lower mortgage servicing income and lower investment banking fees. Market sensitive revenue was $1.1 billion, up $231 million from second quarter, on increased net gains in debt securities and equity investments. Net gains from trading activities were down $214 million primarily due to lower deferred compensation gains (offset in employee benefits expense).

Trust and investment fees were $3.6 billion, down $55 million from the prior quarter. Increases in retail brokerage asset-based fees and trust and investment management fees were offset by lower investment banking fees.

Mortgage banking noninterest income was $1.6 billion, down $90 million from second quarter 2014. Mortgage origination gains were up largely due to an increase in the gain on sale margin, but this was more than offset by a decrease in servicing income, which was driven by lower net mortgage servicing rights (MSRs) results and an increase in unreimbursed direct servicing costs. During the third quarter, residential mortgage originations were $48 billion, up $1 billion linked quarter, while the gain on sale margin was 1.82 percent, compared with 1.41 percent in second quarter.

Noninterest Expense

Noninterest expense increased $54 million from the prior quarter to $12.2 billion. The increase included higher operating losses from litigation accruals and higher outside professional services costs. Personnel expense was down modestly linked quarter as lower employee benefits expense, driven by lower deferred compensation costs (offset in trading revenue), were largely offset by higher salaries and higher commission and incentive compensation expense. The efficiency ratio was 57.7 percent in third quarter 2014, an improvement from 57.9 percent in second quarter 2014. The Company expects to operate within its targeted efficiency ratio range of 55 to 59 percent in fourth quarter 2014.

⁵ Consists of net gains from trading activities, debt securities and equity investments.

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Income Taxes

Our effective tax rate was 31.6 percent for third quarter 2014, compared with 33.4 percent for second quarter 2014. The lower effective tax rate in third quarter 2014 was due primarily to tax benefits resulting from charitable donations of appreciated securities.

Loans

Total loans were $838.9 billion at September 30, 2014, up $9.9 billion from June 30, 2014, driven by growth in commercial and industrial, real estate construction, 1-4 family first mortgage, credit card, automobile, and other revolving credit and installment loans. Core loan growth was $12.2 billion, as non-strategic/liquidating portfolios declined $2.3 billion in the quarter.



	September 30, 2014							June 30, 2014

(in millions)	Core		Non-strategic and liquidating (1)			Total		Core		Non-strategic and liquidating			Total

Commercial	$	395,018		1,465			396,483		389,905		1,499			391,404
Consumer		380,773		61,627			442,400		373,693		63,845			437,538

Total loans	$	775,791		63,092			838,883		763,598		65,344			828,942


Change from prior quarter:	$	12,193		(2,252	)		9,941		15,149		(12,650	) (2)		2,499

(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.

(2)	The change from prior quarter was predominantly due to the transfer to loans held for sale of $9.7 billion of government guaranteed student loans, which were previously included in the Company’s non-strategic/liquidating loan portfolio.

Average total loans were $833.2 billion, up $2.2 billion from the prior quarter and $31.1 billion from a year ago. This growth was reduced by the transfer to loans held for sale at the end of the second quarter of $9.7 billion of government guaranteed student loans, which were previously included in the Company’s non-strategic/liquidating loan portfolio. Excluding this transfer, average total loans would have been up $12.0 billion, or 6 percent (annualized), from second quarter. Portfolios with double-digit year-over-year growth included asset backed finance, capital finance, commercial banking, commercial real estate, corporate banking, credit card, dealer services, government and institutional banking, mortgage core portfolios, personal lines and loans, retail brokerage, and wealth management.

Investment Securities

Investment securities were $289.0 billion at September 30, 2014, up $9.9 billion from second quarter. Approximately $25 billion of purchases were partially offset by run-off, mostly within the available-for-sale portfolio, which declined $710 million from prior quarter. Held-to-maturity securities were up $10.7 billion, primarily due to an increase in U.S. Treasury and federal agency debt.

The Company had net unrealized available-for-sale securities gains of $6.6 billion at September 30, 2014, down from $8.2 billion at June 30, 2014, primarily due to an increase in interest rates and realized securities gains.

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Deposits

Total average deposits for third quarter 2014 were $1.1 trillion, up 10 percent from a year ago and up 9 percent (annualized) from second quarter 2014, driven by both commercial and consumer growth. The average deposit cost for third quarter 2014 was 10 basis points, unchanged from prior quarter, but an improvement of 2 basis points from a year ago. Average core deposits were $1.0 trillion, up 8 percent from a year ago and up 8 percent (annualized) from second quarter 2014. Average mortgage escrow deposits were $30.7 billion, compared with $34.7 billion a year ago and $27.2 billion in second quarter 2014.

Capital

Capital levels continued to be strong in the third quarter, with Common Equity Tier 1 of $136.5 billion under Basel III (General Approach), or 11.16 percent of risk-weighted assets. The Common Equity Tier 1 ratio under Basel III (Advanced Approach, fully phased-in) was 10.46 percent⁴. In third quarter 2014, the Company purchased 48.7 million shares of its common stock and an additional estimated 19.8 million shares through a forward repurchase transaction expected to settle in fourth quarter 2014. The Company also paid a quarterly common stock dividend of $0.35 per share, up from $0.30 per share a year ago.



	Sept. 30,			June 30,		Sept. 30,
	2014 (1)			2014		2013

Common Equity Tier 1 (2)		11.16	%		11.31		10.60
Tier 1 capital		12.60			12.72		12.11
Tier 1 leverage		9.68			9.86		9.76

(1)	September 30, 2014, ratios are preliminary.

(2)	See tables on page 38 for more information on Common Equity Tier 1.

Credit Quality

“Credit quality continued to trend positively in the third quarter as loan losses remained at historic lows, nonperforming assets continued to decrease, delinquency rates were stable, and we continued to originate high quality loans,” said Chief Risk Officer Mike Loughlin. “Credit losses were $668 million in third quarter 2014, compared with $975 million in third quarter 2013, a 31 percent improvement. The quarterly loss rate (annualized) was 0.32 percent with commercial recoveries of 0.02 percent and consumer losses of 0.62 percent. Nonperforming assets declined by $406 million, or 9 percent (annualized), from last quarter. We released $300 million from the allowance for credit losses in the third quarter, reflecting further credit quality improvement. We continue to expect future reserve releases absent a significant deterioration in the economic environment, but expect a lower level of future releases as the rate of credit improvement slows and the loan portfolio continues to grow.”

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Net Loan Charge-offs

Net loan charge-offs improved to $668 million in third quarter 2014, or 0.32 percent (annualized) of average loans, compared with $717 million in second quarter 2014, or 0.35 percent (annualized) of average loans.

Net Loan Charge-Offs



	Quarter ended
	Sept. 30, 2014					June 30, 2014					Mar. 31, 2014

($ 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	$	65		0.12	%	$	54		0.11	%	$	45		0.09	%
Real estate mortgage		(37)		(0.14)			(10)		(0.04)			(22)		(0.08)
Real estate construction		(58)		(1.29)			(20)		(0.47)			(23)		(0.55)
Lease financing		4		0.10			1		0.05			1		0.03
Foreign		2		0.02			6		0.05			4		0.03

Total commercial		(24)		(0.02)			31		0.03			5		0.01


Consumer:
Real estate 1-4 family first mortgage		114		0.17			137		0.21			170		0.27
Real estate 1-4 family junior lien mortgage		140		0.90			160		1.02			192		1.20
Credit card		201		2.87			211		3.20			231		3.57
Automobile		112		0.81			46		0.35			90		0.70
Other revolving credit and installment		125		1.46			132		1.22			137		1.29

Total consumer		692		0.62			686		0.62			820		0.75

Total	$	668		0.32	%	$	717		0.35	%	$	825		0.41	%

(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 $406 million from second quarter to $17.7 billion. Nonaccrual loans decreased $607 million to $13.4 billion. Foreclosed assets were $4.3 billion, up from $4.1 billion in second quarter 2014 on higher government insured/guaranteed balances.

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Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)



	Sept. 30, 2014					June 30, 2014					Mar. 31, 2014

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


Commercial:
Commercial and industrial	$	586		0.28	%	$	693		0.34	%	$	630		0.32	%
Real estate mortgage		1,636		1.53			1,802		1.66			2,030		1.88
Real estate construction		217		1.21			239		1.40			296		1.78
Lease financing		25		0.21			28		0.24			31		0.26
Foreign		31		0.07			36		0.08			40		0.08

Total commercial		2,495		0.63			2,798		0.71			3,027		0.79


Consumer:
Real estate 1-4 family first mortgage		8,784		3.34			9,026		3.47			9,357		3.61
Real estate 1-4 family junior lien mortgage		1,903		3.13			1,964		3.14			2,072		3.24
Automobile		143		0.26			150		0.28			161		0.31
Other revolving credit and installment		40		0.12			34		0.10			33		0.08

Total consumer		10,870		2.46			11,174		2.55			11,623		2.61

Total nonaccrual loans		13,365		1.59			13,972		1.69			14,650		1.77


Foreclosed assets:
Government insured/guaranteed		2,617					2,359					2,302
Non-government insured/guaranteed		1,691					1,748					1,813

Total foreclosed assets		4,308					4,107					4,115

Total nonperforming assets	$	17,673		2.11	%	$	18,079		2.18	%	$	18,765		2.27	%


Change from prior quarter:
Total nonaccrual loans	$	(607)				$	(678)				$	(1,018)
Total nonperforming assets		(406)					(686)					(840)

(1)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

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 $946 million at September 30, 2014, compared with $897 million at June 30, 2014. 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 $17.4 billion at September 30, 2014, down from $17.7 billion at June 30, 2014.

Allowance for Credit Losses

The allowance for credit losses, including the allowance for unfunded commitments, totaled $13.5 billion at September 30, 2014, down from $13.8 billion at June 30, 2014. The allowance coverage to total loans was 1.61 percent, compared with 1.67 percent in second quarter 2014. The allowance covered 5.1 times annualized third quarter net charge-offs, compared with 4.8 times in the prior quarter. The allowance coverage to nonaccrual loans was 101 percent at September 30, 2014, compared with 99 percent at June 30, 2014. “We believe the allowance was appropriate for losses inherent in the loan portfolio at September 30, 2014,” 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

	Sept. 30,		June 30,		Sept. 30,
(in millions)	2014		2014		2013

Community Banking	$	3,470		3,431		3,341
Wholesale Banking		1,920		1,952		1,973
Wealth, Brokerage and Retirement		550		544		450

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

	Sept. 30,		June 30,		Sept. 30,
(in millions)	2014		2014		2013

Total revenue	$	12,828		12,606		12,244
Provision for credit losses		465		279		240
Noninterest expense		7,051		7,020		7,060
Segment net income		3,470		3,431		3,341

(in billions)
Average loans		498.6		505.4		497.7
Average assets		950.2		918.1		836.6
Average core deposits		646.9		639.8		618.2

Community Banking reported net income of $3.5 billion, up $39 million, or 1 percent, from second quarter 2014. Revenue of $12.8 billion increased $222 million, or 2 percent, from the prior quarter primarily due to higher net interest income, trust and investment fees, debit and credit card fees, and market sensitive revenue, mainly gains on sale of debt securities and equity investments, which were partially offset by lower mortgage banking revenue and lower gains on deferred compensation plan investments (offset in employee benefits expense). Noninterest expense rose slightly from the prior quarter due to higher operating losses, foreclosed assets expense, and project spending, partially offset by lower deferred compensation plan expense (offset in trading revenue). The provision for credit losses increased $186 million from the prior quarter primarily due to a lower reserve release.

Net income was up $129 million, or 4 percent, from third quarter 2013. Revenue increased $584 million, or 5 percent, from a year ago primarily due to higher net interest income, trust and investment fees, card fees, and market sensitive revenue, mainly gains on sale of debt securities and equity investments, partially offset by lower gains on deferred compensation plan investments (offset in employee benefits expense). Noninterest expense declined slightly from a year ago driven by lower mortgage volume-related expenses, and deferred compensation plan expense, partially offset by higher operating losses. The provision for credit losses increased $225 million from a year ago as the $290 million improvement in net charge-offs was more than offset by a lower reserve release.

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Regional Banking

•

Retail banking

Primary consumer checking customers⁶ up a net 4.9 percent year-over-year⁷

Retail Bank household cross-sell ratio of 6.15 products per household, unchanged year-over-year⁷

•

Small Business/Business Banking

Primary business checking customers⁶ up a net 5.6 percent year-over-year⁷

Combined Business Direct credit card, lines of credit and loan product solutions (primarily under $100,000 sold through our retail banking stores) were up 27 percent from the prior year

For the 12th consecutive year, America’s #1 small business lender (in both loans under $100,000 and under $1 million) and #1 lender to small businesses in low- and moderate-income areas (2013 CRA data, released August 2014)

•

Online and Mobile Banking

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

13.7 million active mobile customers, up 19 percent year-over-year⁷

#1 ranking in Keynote Mobile Banking Scorecard; best in “Ease of Use” and “Quality & Availability” (September 2014)

Consumer Lending Group

•

Home Lending

Originations of $48 billion, up from $47 billion in prior quarter

Applications of $64 billion, down from $72 billion in prior quarter

Application pipeline of $25 billion at quarter end, down from $30 billion at June 30, 2014

Residential mortgage servicing portfolio of $1.8 trillion; ratio of MSRs to related loans serviced for others was 82 basis points, compared with 80 basis points in prior quarter

Average note rate on the servicing portfolio was 4.47 percent, compared with 4.49 percent in prior quarter

•

Consumer Credit

Credit card penetration in retail banking households rose to 39.7 percent⁷, up from 36.0 percent in prior year

Auto originations of $7.6 billion, up 9 percent from prior year

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

⁷ Data as of August 2014, comparisons with August 2013.

- 10 -

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)	Sept. 30, 2014			June 30, 2014			Sept. 30, 2013

Total revenue	$	5,902			5,946			5,871
Reversal of provision for credit losses		(85	)		(49	)		(144	)
Noninterest expense		3,250			3,203			3,084
Segment net income		1,920			1,952			1,973

(in billions)
Average loans		316.5			308.1			287.7
Average assets		553.0			532.4			498.1
Average core deposits		278.4			265.8			235.3

(1)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wholesale Banking reported net income of $1.9 billion, down $32 million, or 2 percent, from second quarter 2014. Revenue of $5.9 billion decreased $44 million, or 1 percent, from prior quarter. Net interest income increased $54 million, or 2 percent, due to higher loan balances. Noninterest income decreased $98 million, or 3 percent, driven by the second quarter gain on the divestiture of 40 insurance offices as well as lower investment banking fees, trading revenue, and crop insurance fees (seasonal). Noninterest expense increased $47 million, or 1 percent, linked quarter as higher personnel costs were partially offset by seasonally lower insurance commissions. The provision for credit losses decreased $36 million from prior quarter due to an increase in net recoveries.

Net income was down $53 million, or 3 percent, from third quarter 2013. Revenue increased $31 million, or 1 percent, from third quarter 2013 on strong loan and deposit growth, strong treasury management fee growth and higher asset backed finance underwriting, commercial real estate brokerage and foreign exchange fees. Noninterest expense increased $166 million, or 5 percent, from a year ago primarily due to expenses related to growth initiatives, compliance, and regulatory requirements. The provision for credit losses increased $59 million from a year ago primarily due to a $62 million lower reserve release.

•

Average loans increased 10 percent in third quarter 2014, compared with third quarter 2013, on broad-based growth, including asset-backed finance, capital finance, commercial banking, commercial real estate, corporate banking, equipment finance, government and institutional banking, international, and real estate capital markets

•

Cross-sell of 7.2 products per relationship, up from 7.0 in third quarter 2013 driven by new product sales to existing customers

•

Treasury management revenue up 9 percent from third quarter 2013

•

Assets under management of $484 billion, up $9 billion from third quarter 2013, including an $11 billion increase in equity assets under management reflecting increased market valuations and net inflows

- 11 -

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

Selected Financial Information



	Quarter ended

(in millions)	Sept. 30, 2014			June 30, 2014			Sept. 30, 2013

Total revenue	$	3,553			3,550			3,307
Reversal of provision for credit losses		(25	)		(25	)		(38)
Noninterest expense		2,690			2,695			2,619
Segment net income		550			544			450

(in billions)
Average loans		52.6			51.0			46.7
Average assets		188.8			187.6			180.8
Average core deposits		153.6			153.0			150.6

Wealth, Brokerage and Retirement (WBR) reported net income of $550 million, up $6 million, or 1 percent, from second quarter 2014. Revenue of $3.6 billion increased $3 million from the prior quarter as increased asset-based fees and net interest income were partially offset by lower gains on deferred compensation plan investments (offset in compensation expense) and decreased brokerage transaction revenue. Noninterest expense decreased $5 million from the prior quarter driven by lower deferred compensation plan expense (offset in trading revenue), largely offset by increased broker commissions and non-personnel expenses.

Net income was up $100 million, or 22 percent, from third quarter 2013. Revenue increased $246 million, or 7 percent, from a year ago as strong growth in asset-based fees and higher net interest income was partially offset by lower gains on deferred compensation plan investments. Noninterest expense increased $71 million, or 3 percent, from a year ago primarily due to increased broker commissions and other expenses, which were partially offset by lower deferred compensation plan expense. The provision for credit losses increased $13 million from a year ago as lower reserve releases more than offset lower net charge-offs. The provision in third quarter 2014 included a $15 million reserve release, compared with $38 million a year ago.

Retail Brokerage

•

Client assets of $1.4 trillion, up 8 percent from prior year

•

Managed account assets of $409 billion, increased $59 billion, or 17 percent, from prior year, reflecting increased market valuations and net flows

•

Strong loan growth, with average balances up 19 percent from prior year on growth in first mortgage and security-based lending

- 12 -

Wealth Management

•

Client assets of $219 billion, up 7 percent from prior year

•

Strong loan growth, with average balances up 10 percent over prior year

Retirement

•

IRA assets of $354 billion, up 8 percent from prior year

•

Institutional Retirement plan assets of $314 billion, up 6 percent from prior year

WBR cross-sell ratio of 10.44 products per household, up from 10.41 a year ago

Conference Call

The Company will host a live conference call on Tuesday, October 14, at 7 a.m. PDT (10 a.m. EDT). You may participate by dialing 866-872-5161 (U.S. and Canada) or 706-643-1962 (International). The call will also be available online at wellsfargo.com/invest_relations/earnings and at https://engage.vevent.com/rt/wells_fargo_ao~101414.

A replay of the conference call will be available beginning at 10 a.m. PDT (1 p.m. EDT) on October 14 through Tuesday, October 21. Please dial 855-859-2056 (U.S. and Canada) or 404-537-3406 (International) and enter Conference ID #83804752. The replay will also be available online at wellsfargo.com/invest_relations/earnings and at https://engage.vevent.com/rt/wells_fargo_ao~101414.

- 13 -

Forward-Looking Statements

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

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

•

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

•

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

•

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

•

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

•

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

•

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

•

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

- 14 -

•

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

•

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

•

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

•

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

•

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

•

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

•

fiscal and monetary policies of the Federal Reserve Board; and

•

the other risk factors and uncertainties described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013.

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, 2013, 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 $1.6 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com), and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2014 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		19-20
Consolidated Statement of Comprehensive Income		21
Condensed Consolidated Statement of Changes in Total Equity		21
Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		22-23
Five Quarter Average Balances, Yields and Rates Paid (Taxable-Equivalent Basis)		24
Noninterest Income and Noninterest Expense		25-26

Balance Sheet
Consolidated Balance Sheet		27-28
Investment Securities		29

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

Equity
Five Quarter Risk-Based Capital Components		38
Common Equity Tier 1 Under Basel III		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 Sept. 30, 2014 from					Nine months ended

($ in millions, except per share amounts)	Sept. 30, 2014			June 30, 2014		Sept. 30, 2013		June 30, 2014			Sept. 30, 2013		Sept. 30, 2014		Sept. 30, 2013		% Change


For the Period
Wells Fargo net income	$	5,729			5,726		5,578		-	%		3	$	17,348		16,268		7	%
Wells Fargo net income applicable to common stock		5,408			5,424		5,317		-			2		16,439		15,520		6
Diluted earnings per common share		1.02			1.01		0.99		1			3		3.08		2.89		7
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA) (1)		1.40	%		1.47		1.53		(5)			(8)		1.48		1.53		(3)
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.10			13.40		14.07		(2)			(7)		13.60		13.92		(2)
Efficiency ratio (2)		57.7			57.9		59.1		-			(2)		57.9		58.2		(1)
Total revenue	$	21,213			21,066		20,478		1			4	$	62,904		63,115		-
Pre-tax pre-provision profit (PTPP) (3)		8,965			8,872		8,376		1			7		26,514		26,358		1
Dividends declared per common share		0.35			0.35		0.30		-			17		1.00		0.85		18
Average common shares outstanding		5,225.9			5,268.4		5,295.3		(1)			(1)		5,252.2		5,293.0		(1)
Diluted average common shares outstanding		5,310.4			5,350.8		5,381.7		(1)			(1)		5,339.2		5,374.7		(1)
Average loans (1)	$	833,199			831,043		802,134		-			4	$	829,378		799,080		4
Average assets (1)		1,617,942			1,564,003		1,446,965		3			12		1,569,621		1,425,836		10
Average core deposits (4)		1,012,219			991,727		940,279		2			8		992,723		934,131		6
Average retail core deposits (5)		703,062			698,763		670,335		1			5		697,535		666,393		5
Net interest margin (1)		3.06	%		3.15		3.39		(3)			(10)		3.13		3.45		(9)

At Period End
Investment securities	$	289,009			279,069		259,399		4			11	$	289,009		259,399		11
Loans (1)		838,883			828,942		809,135		1			4		838,883		809,135		4
Allowance for loan losses		12,681			13,101		15,159		(3)			(16)		12,681		15,159		(16)
Goodwill		25,705			25,705		25,637		-			-		25,705		25,637		-
Assets (1)		1,636,855			1,598,874		1,484,865		2			10		1,636,855		1,484,865		10
Core deposits (4)		1,016,478			1,007,485		947,805		1			7		1,016,478		947,805		7
Wells Fargo stockholders’ equity		182,481			180,859		167,165		1			9		182,481		167,165		9
Total equity		182,990			181,549		168,813		1			8		182,990		168,813		8
Capital ratios:
Total equity to assets (1)		11.18	%		11.35		11.37		(2)			(2)		11.18		11.37		(2)
Risk-based capital (6):
Tier 1 capital		12.60			12.72		12.11		(1)			4		12.60		12.11		4
Total capital		15.63			15.89		15.09		(2)			4		15.63		15.09		4
Tier 1 leverage (6)		9.68			9.86		9.76		(2)			(1)		9.68		9.76		(1)
Common Equity Tier 1 (6)(7)		11.16			11.31		10.60		(1)			5		11.16		10.60		5
Common shares outstanding		5,215.0			5,249.9		5,273.7		(1)			(1)		5,215.0		5,273.7		(1)
Book value per common share	$	31.55			31.18		28.98		1			9	$	31.55		28.98		9
Common stock price:
High		53.80			53.05		44.79		1			20		53.80		44.79		20
Low		49.47			46.72		40.79		6			21		44.17		34.43		28
Period end		51.87			52.56		41.32		(1)			26		51.87		41.32		26
Team members (active, full-time equivalent)		263,900			263,500		270,600		-			(2)		263,900		270,600		(2)

(1)

Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. Accordingly, we revised our commercial loan balances for year-end 2012 and each of the quarters in 2013 in order to present the Company’s lending trends on a comparable basis over this period. This revision, which resulted in a reduction to total commercial loans and a corresponding decrease to other liabilities, did not impact the Company’s consolidated net income or total cash flows. We reduced our commercial loans by $3.5 billion, $3.2 billion, $2.1 billion, $1.6 billion, and $1.2 billion at December 31, September 30, June 30, and March 31, 2013, and December 31, 2012, respectively, which represented less than 1% of total commercial loans and less than 0.5% of our total loan portfolio. Other affected financial information, including financial guarantees and financial ratios, has been appropriately revised to reflect this revision.

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

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

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

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

(6)	The September 30, 2014, ratios are preliminary.

(7)	See the “Five Quarter Risk-Based Capital Components” table for additional information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER SUMMARY FINANCIAL DATA



	Quarter ended

($ in millions, except per share amounts)	Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

For the Quarter
Wells Fargo net income	$	5,729			5,726		5,893		5,610		5,578
Wells Fargo net income applicable to common stock		5,408			5,424		5,607		5,369		5,317
Diluted earnings per common share		1.02			1.01		1.05		1.00		0.99
Profitability ratios (annualized):
Wells Fargo net income to average assets (ROA) (1)		1.40	%		1.47		1.57		1.48		1.53
Wells Fargo net income applicable to common stock to average Wells Fargo common stockholders’ equity (ROE)		13.10			13.40		14.35		13.81		14.07
Efficiency ratio (2)		57.7			57.9		57.9		58.5		59.1
Total revenue	$	21,213			21,066		20,625		20,665		20,478
Pre-tax pre-provision profit (PTPP) (3)		8,965			8,872		8,677		8,580		8,376
Dividends declared per common share		0.35			0.35		0.30		0.30		0.30
Average common shares outstanding		5,225.9			5,268.4		5,262.8		5,270.3		5,295.3
Diluted average common shares outstanding		5,310.4			5,350.8		5,353.3		5,358.6		5,381.7
Average loans (1)	$	833,199			831,043		823,790		813,318		802,134
Average assets (1)		1,617,942			1,564,003		1,525,905		1,505,766		1,446,965
Average core deposits (4)		1,012,219			991,727		973,801		965,828		940,279
Average retail core deposits (5)		703,062			698,763		690,643		679,355		670,335
Net interest margin (1)		3.06	%		3.15		3.20		3.27		3.39

At Quarter End
Investment securities	$	289,009			279,069		270,327		264,353		259,399
Loans (1)		838,883			828,942		826,443		822,286		809,135
Allowance for loan losses		12,681			13,101		13,695		14,502		15,159
Goodwill		25,705			25,705		25,637		25,637		25,637
Assets (1)		1,636,855			1,598,874		1,546,707		1,523,502		1,484,865
Core deposits (4)		1,016,478			1,007,485		994,185		980,063		947,805
Wells Fargo stockholders’ equity		182,481			180,859		175,654		170,142		167,165
Total equity		182,990			181,549		176,469		171,008		168,813
Capital ratios:
Total equity to assets (1)		11.18	%		11.35		11.41		11.22		11.37
Risk-based capital (6):
Tier 1 capital		12.60			12.72		12.63		12.33		12.11
Total capital		15.63			15.89		15.71		15.43		15.09
Tier 1 leverage (6)		9.68			9.86		9.84		9.60		9.76
Common Equity Tier 1 (6)(7)		11.16			11.31		11.36		10.82		10.60
Common shares outstanding		5,215.0			5,249.9		5,265.7		5,257.2		5,273.7
Book value per common share	$	31.55			31.18		30.48		29.48		28.98
Common stock price:
High		53.80			53.05		49.97		45.64		44.79
Low		49.47			46.72		44.17		40.07		40.79
Period end		51.87			52.56		49.74		45.40		41.32
Team members (active, full-time equivalent)		263,900			263,500		265,300		264,900		270,600

(1)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

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

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

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

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

(6)	The September 30, 2014, ratios are preliminary.

(7)	See the “Five Quarter Risk-Based Capital Components” table for additional information.

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME



	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%

(in millions, except per share amounts)	2014		2013		Change			2014		2013		Change


Interest income
Trading assets	$	427		331		29	%	$	1,208		998		21	%
Investment securities		2,066		2,038		1			6,288		5,997		5
Mortgages held for sale		215		320		(33)			580		1,069		(46)
Loans held for sale		50		3		NM			53		10		430
Loans		8,963		8,901		1			26,561		26,664		-
Other interest income		243		183		33			679		515		32

Total interest income		11,964		11,776		2			35,369		35,253		-


Interest expense
Deposits		273		318		(14)			827		1,040		(20)
Short-term borrowings		15		9		67			41		46		(11)
Long-term debt		629		621		1			1,868		1,950		(4)
Other interest expense		106		80		33			286		220		30

Total interest expense		1,023		1,028		-			3,022		3,256		(7)


Net interest income		10,941		10,748		2			32,347		31,997		1
Provision for credit losses		368		75		391			910		1,946		(53)

Net interest income after provision for credit losses		10,573		10,673		(1)			31,437		30,051		5


Noninterest income
Service charges on deposit accounts		1,311		1,278		3			3,809		3,740		2
Trust and investment fees		3,554		3,276		8			10,575		9,972		6
Card fees		875		813		8			2,506		2,364		6
Other fees		1,090		1,098		(1)			3,225		3,221		-
Mortgage banking		1,633		1,608		2			4,866		7,204		(32)
Insurance		388		413		(6)			1,273		1,361		(6)
Net gains from trading activities		168		397		(58)			982		1,298		(24)
Net gains (losses) on debt securities		253		(6)		NM			407		(15)		NM
Net gains from equity investments		712		502		42			2,008		818		145
Lease income		137		160		(14)			399		515		(23)
Other		151		191		(21)			507		640		(21)

Total noninterest income		10,272		9,730		6			30,557		31,118		(2)


Noninterest expense
Salaries		3,914		3,910		-			11,437		11,341		1
Commission and incentive compensation		2,527		2,401		5			7,388		7,604		(3)
Employee benefits		931		1,172		(21)			3,473		3,873		(10)
Equipment		457		471		(3)			1,392		1,417		(2)
Net occupancy		731		728		-			2,195		2,163		1
Core deposit and other intangibles		342		375		(9)			1,032		1,129		(9)
FDIC and other deposit assessments		229		214		7			697		765		(9)
Other		3,117		2,831		10			8,776		8,465		4

Total noninterest expense		12,248		12,102		1			36,390		36,757		(1)


Income before income tax expense		8,597		8,301		4			25,604		24,412		5
Income tax expense		2,642		2,618		1			7,788		7,901		(1)


Net income before noncontrolling interests		5,955		5,683		5			17,816		16,511		8
Less: Net income from noncontrolling interests		226		105		115			468		243		93

Wells Fargo net income	$	5,729		5,578		3		$	17,348		16,268		7

Less: Preferred stock dividends and other		321		261		23			909		748		22

Wells Fargo net income applicable to common stock	$	5,408		5,317		2		$	16,439		15,520		6


Per share information
Earnings per common share	$	1.04		1.00		4		$	3.13		2.93		7
Diluted earnings per common share		1.02		0.99		3			3.08		2.89		7
Dividends declared per common share		0.35		0.30		17			1.00		0.85		18
Average common shares outstanding		5,225.9		5,295.3		(1)			5,252.2		5,293.0		(1)
Diluted average common shares outstanding		5,310.4		5,381.7		(1)			5,339.2		5,374.7		(1)

NM - Not meaningful

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED STATEMENT OF INCOME




	Quarter ended

(in millions, except per share amounts)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Interest Income
Trading assets	$	427		407		374		378		331
Investment securities		2,066		2,112		2,110		2,119		2,038
Mortgages held for sale		215		195		170		221		320
Loans held for sale		50		1		2		3		3
Loans		8,963		8,852		8,746		8,907		8,901
Other interest income		243		226		210		208		183

Total interest income		11,964		11,793		11,612		11,836		11,776


Interest expense
Deposits		273		275		279		297		318
Short-term borrowings		15		14		12		14		9
Long-term debt		629		620		619		635		621
Other interest expense		106		93		87		87		80

Total interest expense		1,023		1,002		997		1,033		1,028


Net interest income		10,941		10,791		10,615		10,803		10,748
Provision for credit losses		368		217		325		363		75

Net interest income after provision for credit losses		10,573		10,574		10,290		10,440		10,673


Noninterest income
Service charges on deposit accounts		1,311		1,283		1,215		1,283		1,278
Trust and investment fees		3,554		3,609		3,412		3,458		3,276
Card fees		875		847		784		827		813
Other fees		1,090		1,088		1,047		1,119		1,098
Mortgage banking		1,633		1,723		1,510		1,570		1,608
Insurance		388		453		432		453		413
Net gains from trading activities		168		382		432		325		397
Net gains (losses) on debt securities		253		71		83		(14)		(6)
Net gains from equity investments		712		449		847		654		502
Lease income		137		129		133		148		160
Other		151		241		115		39		191

Total noninterest income		10,272		10,275		10,010		9,862		9,730


Noninterest expense
Salaries		3,914		3,795		3,728		3,811		3,910
Commission and incentive compensation		2,527		2,445		2,416		2,347		2,401
Employee benefits		931		1,170		1,372		1,160		1,172
Equipment		457		445		490		567		471
Net occupancy		731		722		742		732		728
Core deposit and other intangibles		342		349		341		375		375
FDIC and other deposit assessments		229		225		243		196		214
Other		3,117		3,043		2,616		2,897		2,831

Total noninterest expense		12,248		12,194		11,948		12,085		12,102


Income before income tax expense		8,597		8,655		8,352		8,217		8,301
Income tax expense		2,642		2,869		2,277		2,504		2,618


Net income before noncontrolling interests		5,955		5,786		6,075		5,713		5,683
Less: Net income from noncontrolling interests		226		60		182		103		105


Wells Fargo net income	$	5,729		5,726		5,893		5,610		5,578

Less: Preferred stock dividends and other		321		302		286		241		261


Wells Fargo net income applicable to common stock	$	5,408		5,424		5,607		5,369		5,317


Per share information
Earnings per common share	$	1.04		1.02		1.07		1.02		1.00
Diluted earnings per common share		1.02		1.01		1.05		1.00		0.99
Dividends declared per common share		0.35		0.35		0.30		0.30		0.30
Average common shares outstanding		5,225.9		5,268.4		5,262.8		5,270.3		5,295.3
Diluted average common shares outstanding		5,310.4		5,350.8		5,353.3		5,358.6		5,381.7

Wells Fargo & Company and Subsidiaries

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME



	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%

(in millions)	2014		2013		Change			2014		2013		Change

Wells Fargo net income	$	5,729		5,578		3	%	$	17,348		16,268		7	%

Other comprehensive income (loss), before tax:
Investment securities:
Net unrealized gains (losses) arising during the period		(944)		842		NM			3,866		(5,922)		NM
Reclassification of net gains to net income		(661)		(114)		480			(1,205)		(197)		512
Derivatives and hedging activities:
Net unrealized gains (losses) arising during the period		(34)		(7)		386			222		(10)		NM
Reclassification of net gains on cash flow hedges to net income		(127)		(69)		84			(348)		(225)		55
Defined benefit plans adjustments:
Net actuarial gains (losses) arising during the period		-		297		(100)			(12)		1,075		NM
Amortization of net actuarial loss, settlements and other to net income		18		59		(69)			56		221		(75)
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period		(32)		12		NM			(32)		(27)		19
Reclassification of net (gains) losses to net income		-		3		(100)			6		(12)		NM


Other comprehensive income (loss), before tax		(1,780)		1,023		NM			2,553		(5,097)		NM
Income tax (expense) benefit related to other comprehensive income		560		(265)		NM			(1,087)		2,002		NM


Other comprehensive income (loss), net of tax		(1,220)		758		NM			1,466		(3,095)		NM
Less: Other comprehensive income (loss) from noncontrolling interests		(221)		266		NM			(266)		266		NM

Wells Fargo other comprehensive income (loss), net of tax		(999)		492		NM			1,732		(3,361)		NM


Wells Fargo comprehensive income		4,730		6,070		(22)			19,080		12,907		48
Comprehensive income from noncontrolling interests		5		371		(99)			202		509		(60)


Total comprehensive income	$	4,735		6,441		(26)		$	19,282		13,416		44

NM - Not meaningful

FIVE QUARTER CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY




	Quarter ended

	Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
(in millions)	2014		2014		2014		2013		2013


Balance, beginning of period	$	181,549		176,469		171,008		168,813		163,777
Wells Fargo net income		5,729		5,726		5,893		5,610		5,578
Wells Fargo other comprehensive income (loss), net of tax		(999)		1,365		1,366		(903)		492
Common stock issued		402		579		994		353		581
Common stock repurchased (1)		(2,490)		(2,954)		(1,025)		(1,378)		(2,042)
Preferred stock released by ESOP		170		430		305		122		164
Preferred stock issued		780		1,995		-		828		1,707
Common stock dividends		(1,828)		(1,844)		(1,579)		(1,582)		(1,593)
Preferred stock dividends and other		(321)		(302)		(286)		(241)		(261)
Noncontrolling interests and other, net		(2)		85		(207)		(614)		410


Balance, end of period	$	182,990		181,549		176,469		171,008		168,813

(1)

For the quarter ended September 30, 2014, includes $1.0 billion related to a private forward repurchase transaction that is expected to settle in fourth quarter 2014 for an estimated 19.8 million shares of common stock. For the quarters ended June 30, 2014, December 31, 2013, and September 30, 2013, includes $1.0 billion, $500 million, and $400 million, respectively, related to private forward repurchase transactions that settled in subsequent quarters for 19.5 million, 11.1 million, and 9.6 million shares of common stock, respectively.

Wells Fargo & Company and Subsidiaries

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



	Quarter ended September 30,

							2014								2013

(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	$	253,231			0.28	%	$	180		155,888			0.31	%	$	121
Trading assets		57,439			3.00			432		44,809			3.02			339
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		8,816			1.69			38		6,633			1.69			28
Securities of U.S. states and political subdivisions		43,324			4.24			459		40,754			4.35			444
Mortgage-backed securities:
Federal agencies		113,022			2.76			780		112,997			2.83			800
Residential and commercial		25,946			5.98			388		30,216			6.56			496
Total mortgage-backed securities		138,968			3.36			1,168		143,213			3.62			1,296
Other debt and equity securities		47,131			3.45			408		55,404			3.27			455
Total available-for-sale securities		238,239			3.48			2,073		246,004			3.61			2,223
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies		23,672			2.22			133		-			-			-
Securities of U.S. states and political subdivisions		66			5.51			1		-			-			-
Federal agency mortgage-backed securities		5,854			2.23			32		-			-			-
Other debt securities		5,918			1.83			28		-			-			-
Total held-to-maturity securities		35,510			2.17			194		-			-			-
Total investment securities		273,749			3.31			2,267		246,004			3.61			2,223
Mortgages held for sale (4)		21,444			4.01			215		33,227			3.86			320
Loans held for sale (4)		9,533			2.10			50		197			7.25			3
Loans:
Commercial:
Commercial and industrial (5)		207,570			3.29			1,716		185,809			3.63			1,697
Real estate mortgage		107,769			3.52			957		104,637			4.12			1,086
Real estate construction		17,610			3.93			175		16,188			4.43			181
Lease financing		12,007			5.39			162		11,700			5.29			155
Foreign (5)		48,217			2.69			327		44,799			2.09			236
Total commercial (5)		393,173			3.37			3,337		363,133			3.67			3,355
Consumer:
Real estate 1-4 family first mortgage		262,134			4.23			2,773		254,082			4.20			2,670
Real estate 1-4 family junior lien mortgage		61,575			4.30			665		68,785			4.30			743
Credit card		27,713			11.96			836		24,989			12.45			784
Automobile		54,638			6.19			852		49,134			6.85			848
Other revolving credit and installment		33,966			6.03			516		42,011			4.83			512
Total consumer		440,026			5.11			5,642		439,001			5.04			5,557
Total loans (4)(5)		833,199			4.29			8,979		802,134			4.42			8,912
Other		4,674			5.41			64		4,279			5.62			61
Total earning assets (5)	$	1,453,269			3.34	%	$	12,187		1,286,538			3.71	%	$	11,979

Funding sources
Deposits:
Interest-bearing checking	$	41,368			0.07	%	$	7		34,499			0.06	%	$	5
Market rate and other savings		586,353			0.07			98		553,062			0.08			107
Savings certificates		37,347			0.84			80		47,339			1.08			129
Other time deposits		55,128			0.39			54		30,423			0.62			47
Deposits in foreign offices		98,862			0.14			34		81,087			0.15			30
Total interest-bearing deposits		819,058			0.13			273		746,410			0.17			318
Short-term borrowings		62,285			0.10			16		53,403			0.08			11
Long-term debt		172,982			1.46			629		133,397			1.86			621
Other liabilities		15,536			2.73			106		12,128			2.64			80
Total interest-bearing liabilities		1,069,861			0.38			1,024		945,338			0.43			1,030
Portion of noninterest-bearing funding sources (5)		383,408			-			-		341,200			-			-
Total funding sources (5)	$	1,453,269			0.28			1,024		1,286,538			0.32			1,030
Net interest margin and net interest income on a taxable-equivalent basis (5)(6)					3.06	%	$	11,163					3.39	%	$	10,949
Noninterest-earning assets
Cash and due from banks	$	16,189								16,350
Goodwill		25,705								25,637
Other		122,779								118,440
Total noninterest-earning assets	$	164,673								160,427

Noninterest-bearing funding sources
Deposits	$	307,991								279,156
Other liabilities (5)		57,979								57,324
Total equity		182,111								165,147
Noninterest-bearing funding sources used to fund earning assets (5)		(383,408	)							(341,200	)
Net noninterest-bearing funding sources	$	164,673								160,427
Total assets (5)	$	1,617,942								1,446,965

(1)	Our average prime rate was 3.25% for the quarters ended September 30, 2014 and 2013. The average three-month London Interbank Offered Rate (LIBOR) was 0.23% and 0.26% 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)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

(6)	Includes taxable-equivalent adjustments of $222 million and $201 million for the quarters ended September 30, 2014 and 2013, 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)


	Nine months ended September 30,

							2014								2013

(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	$	232,241			0.28	%	$	485		137,926			0.33	%	$	342
Trading assets		53,373			3.07			1,227		44,530			3.05			1,020
Investment securities (3):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		7,331			1.72			95		6,797			1.66			85
Securities of U.S. states and political subdivisions		42,884			4.29			1,380		39,213			4.38			1,288
Mortgage-backed securities:
Federal agencies		115,696			2.85			2,475		103,522			2.79			2,164
Residential and commercial		27,070			6.07			1,233		31,217			6.51			1,524
Total mortgage-backed securities		142,766			3.46			3,708		134,739			3.65			3,688
Other debt and equity securities		48,333			3.60			1,303		54,893			3.56			1,463
Total available-for-sale securities		241,314			3.58			6,486		235,642			3.69			6,524
Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies		11,951			2.22			198		-			-			-
Securities of U.S. states and political subdivisions		25			5.51			1		-			-			-
Federal agency mortgage-backed securities		6,034			2.70			122		-			-			-
Other debt securities		5,844			1.86			82		-			-			-
Total held-to-maturity securities		23,854			2.26			403		-			-			-
Total investment securities		265,168			3.47			6,889		235,642			3.69			6,524
Mortgages held for sale (4)		18,959			4.08			580		39,950			3.57			1,069
Loans held for sale (4)		3,302			2.15			53		172			7.88			10
Loans:
Commercial:
Commercial and industrial (5)		200,277			3.37			5,044		184,421			3.70			5,113
Real estate mortgage		107,746			3.53			2,849		105,367			3.96			3,121
Real estate construction		17,249			4.15			536		16,401			4.76			584
Lease financing		11,922			5.75			514		12,151			6.26			571
Foreign (5)		48,315			2.43			879		42,326			2.16			683
Total commercial (5)		385,509			3.41			9,822		360,666			3.73			10,072
Consumer:
Real estate 1-4 family first mortgage		260,538			4.20			8,207		252,904			4.24			8,044
Real estate 1-4 family junior lien mortgage		63,264			4.30			2,037		71,390			4.29			2,292
Credit card		26,811			12.08			2,423		24,373			12.54			2,285
Automobile		53,314			6.34			2,528		47,890			7.03			2,516
Other revolving credit and installment		39,942			5.32			1,589		41,857			4.76			1,489
Total consumer		443,869			5.05			16,784		438,414			5.06			16,626
Total loans (4)(5)		829,378			4.28			26,606		799,080			4.46			26,698
Other		4,622			5.62			195		4,229			5.45			172
Total earning assets (5)	$	1,407,043			3.42	%	$	36,035		1,261,529			3.79	%	$	35,835

Funding sources
Deposits:
Interest-bearing checking	$	39,470			0.07	%	$	20		35,704			0.06	%	$	16
Market rate and other savings		583,128			0.07			304		544,208			0.08			341
Savings certificates		38,867			0.86			251		51,681			1.18			457
Other time deposits		49,855			0.41			152		24,177			0.81			146
Deposits in foreign offices		94,743			0.14			100		73,715			0.15			80
Total interest-bearing deposits		806,063			0.14			827		729,485			0.19			1,040
Short-term borrowings		58,573			0.10			43		55,535			0.13			55
Long-term debt		162,073			1.54			1,868		128,691			2.02			1,950
Other liabilities		14,005			2.73			286		12,352			2.37			220
Total interest-bearing liabilities		1,040,714			0.39			3,024		926,063			0.47			3,265
Portion of noninterest-bearing funding sources (5)		366,329			-			-		335,466			-			-
Total funding sources (5)	$	1,407,043			0.29			3,024		1,261,529			0.34			3,265
Net interest margin and net interest income on a taxable-equivalent basis (5)(6)					3.13	%	$	33,011					3.45	%	$	32,570
Noninterest-earning assets
Cash and due from banks	$	16,169								16,364
Goodwill		25,681								25,637
Other		120,728								122,306
Total noninterest-earning assets	$	162,578								164,307
Noninterest-bearing funding sources
Deposits	$	296,066								277,820
Other liabilities (5)		54,057								58,788
Total equity		178,784								163,165
Noninterest-bearing funding sources used to fund earning assets (5)		(366,329	)							(335,466	)
Net noninterest-bearing funding sources	$	162,578								164,307
Total assets (5)	$	1,569,621								1,425,836

(1)	Our average prime rate was 3.25% for the nine months ended September 30, 2014 and 2013. The average three-month London Interbank Offered Rate (LIBOR) was 0.23% and 0.28% 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)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

(6)	Includes taxable-equivalent adjustments of $664 million and $573 million for the nine months ended September 30, 2014 and 2013, respectively, primarily related to tax-exempt income on certain loans and securities. The federal statutory tax rate was 35% for the periods presented.

Wells Fargo & Company and Subsidiaries

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


	Quarter ended

	Sept. 30, 2014							June 30, 2014							Mar. 31, 2014							Dec. 31, 2013							Sept. 30, 2013

($ 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	$	253.2			0.28	%	$		229.8			0.28	%	$		213.3			0.27	%	$		205.3			0.28	%	$		155.9			0.31	%
Trading assets		57.5			3.00				54.4			3.05				48.2			3.17				45.4			3.40				44.8			3.02
Investment securities (2):
Available-for-sale securities:
Securities of U.S. Treasury and federal agencies		8.8			1.69				6.6			1.78				6.6			1.68				6.6			1.67				6.6			1.69
Securities of U.S. states and political subdivisions		43.3			4.24				42.7			4.26				42.6			4.37				42.0			4.38				40.8			4.35
Mortgage-backed securities:
Federal agencies		113.0			2.76				116.5			2.85				117.6			2.94				117.9			2.94				113.0			2.83
Residential and commercial		26.0			5.98				27.3			6.11				28.0			6.12				29.2			6.35				30.2			6.56

Total mortgage-backed securities		139.0			3.36				143.8			3.47				145.6			3.55				147.1			3.62				143.2			3.62
Other debt and equity securities		47.1			3.45				48.7			3.76				49.2			3.59				55.4			3.43				55.4			3.27

Total available-for-sale securities		238.2			3.48				241.8			3.62				244.0			3.65				251.1			3.65				246.0			3.61

Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies		23.7			2.22				10.8			2.20				1.1			2.18				-			-				-			-
Federal agency mortgage-backed securities		5.9			2.23				6.1			2.74				6.2			3.11				2.7			3.11				-			-
Other debt securities		5.9			1.83				5.2			1.90				6.4			1.86				0.1			1.99				-			-

Total held-to-maturity securities		35.5			2.17				22.1			2.28				13.7			2.45				2.8			3.09				-			-

Total investment securities		273.7			3.31				263.9			3.51				257.7			3.59				253.9			3.65				246.0			3.61
Mortgages held for sale		21.5			4.01				18.8			4.16				16.6			4.11				21.4			4.13				33.2			3.86
Loans held for sale		9.5			2.10				0.2			2.55				0.1			6.28				0.1			8.21				0.2			7.25
Loans:
Commercial:
Commercial and industrial (3)		207.6			3.29				199.2			3.39				193.9			3.43				189.9			3.54				185.8			3.63
Real estate mortgage		107.8			3.52				107.7			3.56				107.8			3.52				105.8			3.85				104.6			4.12
Real estate construction		17.6			3.93				17.3			4.17				16.9			4.37				16.6			4.79				16.2			4.43
Lease financing		12.0			5.39				11.8			5.70				11.9			6.15				11.7			5.70				11.7			5.29
Foreign (3)		48.2			2.69				48.8			2.39				47.9			2.21				46.6			2.24				44.8			2.09

Total commercial (3)		393.2			3.37				384.8			3.42				378.4			3.43				370.6			3.59				363.1			3.67

Consumer:
Real estate 1-4 family first mortgage		262.1			4.23				260.0			4.20				259.5			4.17				257.2			4.15				254.1			4.20
Real estate 1-4 family junior lien mortgage		61.6			4.30				63.3			4.31				65.0			4.30				66.8			4.29				68.8			4.30
Credit card		27.7			11.96				26.4			11.97				26.2			12.32				25.9			12.23				25.0			12.45
Automobile		54.6			6.19				53.5			6.34				51.8			6.50				50.2			6.70				49.1			6.85
Other revolving credit and installment		34.0			6.03				43.0			5.07				42.9			5.00				42.6			4.94				42.0			4.83

Total consumer		440.0			5.11				446.2			5.02				445.4			5.02				442.7			5.01				439.0			5.04

Total loans (3)		833.2			4.29				831.0			4.28				823.8			4.29				813.3			4.36				802.1			4.42
Other		4.7			5.41				4.5			5.74				4.6			5.72				4.7			5.22				4.3			5.62

Total earning assets (3)	$	1,453.3			3.34	%	$		1,402.6			3.43	%	$		1,364.3			3.49	%	$		1,344.1			3.57	%	$		1,286.5			3.71	%

Funding sources
Deposits:
Interest-bearing checking	$	41.4			0.07	%	$		40.2			0.07	%	$		36.8			0.07	%	$		35.2			0.07	%	$		34.5			0.06	%
Market rate and other savings		586.4			0.07				583.9			0.07				579.0			0.07				568.7			0.08				553.1			0.08
Savings certificates		37.3			0.84				38.8			0.86				40.5			0.89				43.1			0.94				47.3			1.08
Other time deposits		55.1			0.39				48.5			0.41				45.8			0.42				39.7			0.48				30.4			0.62
Deposits in foreign offices		98.9			0.14				94.2			0.15				91.1			0.14				86.3			0.15				81.1			0.15

Total interest-bearing deposits		819.1			0.13				805.6			0.14				793.2			0.14				773.0			0.15				746.4			0.17
Short-term borrowings		62.3			0.10				58.9			0.10				54.5			0.09				52.3			0.12				53.4			0.08
Long-term debt		173.0			1.46				159.2			1.56				153.8			1.62				153.5			1.65				133.4			1.86
Other liabilities		15.5			2.73				13.6			2.73				12.9			2.72				12.8			2.70				12.1			2.64

Total interest-bearing liabilities		1,069.9			0.38				1,037.3			0.39				1,014.4			0.40				991.6			0.42				945.3			0.43
Portion of noninterest-bearing funding sources (3)		383.4			-				365.3			-				349.9			-				352.5			-				341.2			-

Total funding sources (3)	$	1,453.3			0.28		$		1,402.6			0.28		$		1,364.3			0.29		$		1,344.1			0.30		$		1,286.5			0.32

Net interest margin on a taxable-equivalent basis (3)					3.06	%						3.15	%						3.20	%						3.27	%						3.39	%

Noninterest-earning assets
Cash and due from banks	$	16.2							15.9							16.4							16.0							16.4
Goodwill		25.7							25.7							25.6							25.6							25.6
Other		122.7							119.8							119.6							120.0							118.4

Total noninterest-earnings assets	$	164.6							161.4							161.6							161.6							160.4

Noninterest-bearing funding sources
Deposits	$	308.0							295.9							284.1							287.4							279.2
Other liabilities (3)		57.9							51.1							52.9							57.1							57.3
Total equity		182.1							179.7							174.5							169.6							165.1
Noninterest-bearing funding sources used to fund earning assets (3)		(383.4	)						(365.3	)						(349.9	)						(352.5	)						(341.2	)

Net noninterest-bearing funding sources	$	164.6							161.4							161.6							161.6							160.4

Total assets (3)	$	1,617.9							1,564.0							1,525.9							1,505.7							1,446.9

(1)	Our average prime rate was 3.25% for quarters ended September 30, June 30 and March 31, 2014, and December 31 and September 30, 2013. The average three-month London Interbank Offered Rate (LIBOR) was 0.23%, 0.23%, 0.24%, 0.24% and 0.26% 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.

(3)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

NONINTEREST INCOME




	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%


(in millions)	2014		2013		Change			2014		2013		Change


Service charges on deposit accounts	$	1,311		1,278		3	%	$	3,809		3,740		2	%
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,327		2,068		13			6,848		6,245		10
Trust and investment management		856		811		6			2,538		2,439		4
Investment banking		371		397		(7)			1,189		1,288		(8)


Total trust and investment fees		3,554		3,276		8			10,575		9,972		6


Card fees		875		813		8			2,506		2,364		6
Other fees:
Charges and fees on loans		296		390		(24)			1,005		1,161		(13)
Merchant processing fees		184		169		9			539		497		8
Cash network fees		134		129		4			382		371		3
Commercial real estate brokerage commissions		143		91		57			314		209		50
Letters of credit fees		100		100		-			288		311		(7)
All other fees		233		219		6			697		672		4


Total other fees		1,090		1,098		(1)			3,225		3,221		-


Mortgage banking:
Servicing income, net		679		504		35			2,652		1,211		119
Net gains on mortgage loan origination/sales activities		954		1,104		(14)			2,214		5,993		(63)


Total mortgage banking		1,633		1,608		2			4,866		7,204		(32	)


Insurance		388		413		(6)			1,273		1,361		(6)
Net gains from trading activities		168		397		(58)			982		1,298		(24)
Net gains (losses) on debt securities		253		(6)		NM			407		(15)		NM
Net gains from equity investments		712		502		42			2,008		818		145
Lease income		137		160		(14)			399		515		(23)
Life insurance investment income		143		154		(7)			413		441		(6)
All other		8		37		(78)			94		199		(53)


Total	$	10,272		9,730		6		$	30,557		31,118		(2)

NM - Not meaningful NONINTEREST EXPENSE


	Quarter ended Sept. 30,				%			Nine months ended Sept. 30,				%


(in millions)	2014		2013		Change			2014		2013		Change

Salaries	$	3,914		3,910		-	%	$	11,437		11,341		1	%
Commission and incentive compensation		2,527		2,401		5			7,388		7,604		(3)
Employee benefits		931		1,172		(21)			3,473		3,873		(10)
Equipment		457		471		(3)			1,392		1,417		(2)
Net occupancy		731		728		-			2,195		2,163		1
Core deposit and other intangibles		342		375		(9)			1,032		1,129		(9)
FDIC and other deposit assessments		229		214		7			697		765		(9)
Outside professional services		684		623		10			1,889		1,765		7
Outside data processing		264		251		5			764		719		6
Contract services		247		241		2			730		674		8
Travel and entertainment		226		209		8			688		651		6
Operating losses		417		195		114			940		640		47
Postage, stationery and supplies		182		184		(1)			543		567		(4)
Advertising and promotion		153		157		(3)			458		445		3
Foreclosed assets		157		161		(2)			419		502		(17)
Telecommunications		122		116		5			347		364		(5)
Insurance		97		98		(1)			362		378		(4)
Operating leases		58		56		4			162		153		6
All other		510		540		(6)			1,474		1,607		(8)


Total	$	12,248		12,102		1		$	36,390		36,757		(1)

Wells Fargo & Company and Subsidiaries

FIVE QUARTER NONINTEREST INCOME




	Quarter ended


(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Service charges on deposit accounts	$	1,311		1,283		1,215		1,283		1,278
Trust and investment fees:
Brokerage advisory, commissions and other fees		2,327		2,280		2,241		2,150		2,068
Trust and investment management		856		838		844		850		811
Investment banking		371		491		327		458		397


Total trust and investment fees		3,554		3,609		3,412		3,458		3,276


Card fees		875		847		784		827		813
Other fees:
Charges and fees on loans		296		342		367		379		390
Merchant processing fees		184		183		172		172		169
Cash network fees		134		128		120		122		129
Commercial real estate brokerage commissions		143		99		72		129		91
Letters of credit fees		100		92		96		99		100
All other fees		233		244		220		218		219


Total other fees		1,090		1,088		1,047		1,119		1,098


Mortgage banking:
Servicing income, net		679		1,035		938		709		504
Net gains on mortgage loan origination/sales activities		954		688		572		861		1,104


Total mortgage banking		1,633		1,723		1,510		1,570		1,608


Insurance		388		453		432		453		413
Net gains from trading activities		168		382		432		325		397
Net gains (losses) on debt securities		253		71		83		(14)		(6)
Net gains from equity investments		712		449		847		654		502
Lease income		137		129		133		148		160
Life insurance investment income		143		138		132		125		154
All other		8		103		(17)		(86)		37


Total	$	10,272		10,275		10,010		9,862		9,730

FIVE QUARTER NONINTEREST EXPENSE


	Quarter ended


(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Salaries	$	3,914		3,795		3,728		3,811		3,910
Commission and incentive compensation		2,527		2,445		2,416		2,347		2,401
Employee benefits		931		1,170		1,372		1,160		1,172
Equipment		457		445		490		567		471
Net occupancy		731		722		742		732		728
Core deposit and other intangibles		342		349		341		375		375
FDIC and other deposit assessments		229		225		243		196		214
Outside professional services		684		646		559		754		623
Outside data processing		264		259		241		264		251
Contract services		247		249		234		261		241
Travel and entertainment		226		243		219		234		209
Operating losses		417		364		159		181		195
Postage, stationery and supplies		182		170		191		189		184
Advertising and promotion		153		187		118		165		157
Foreclosed assets		157		130		132		103		161
Telecommunications		122		111		114		118		116
Insurance		97		140		125		59		98
Operating leases		58		54		50		51		56
All other		510		490		474		518		540


Total	$	12,248		12,194		11,948		12,085		12,102

Wells Fargo & Company and Subsidiaries

CONSOLIDATED BALANCE SHEET



	Sept. 30,		Dec. 31,		%
(in millions, except shares)	2014		2013		Change


Assets
Cash and due from banks	$	18,032		19,919		(9)	%
Federal funds sold, securities purchased under resale agreements and other short-term investments		261,932		213,793		23
Trading assets		67,755		62,813		8
Investment securities:
Available-for-sale, at fair value		248,251		252,007		(1)
Held-to-maturity, at cost (fair value $40,915 and $12,247)		40,758		12,346		230
Mortgages held for sale (includes $15,755 and $13,879 carried at fair value) (1)		20,178		16,763		20
Loans held for sale (includes $1 and $1 carried at fair value) (1)		9,292		133		NM

Loans (includes $5,849 and $5,995 carried at fair value) (1)(2)		838,883		822,286		2
Allowance for loan losses		(12,681)		(14,502)		(13)


Net loans (2)		826,202		807,784		2

Mortgage servicing rights:
Measured at fair value		14,031		15,580		(10)
Amortized		1,224		1,229		-
Premises and equipment, net		8,768		9,156		(4)
Goodwill		25,705		25,637		-
Other assets (includes $1,964 and $1,386 carried at fair value) (1)		94,727		86,342		10


Total assets (2)	$	1,636,855		1,523,502		7


Liabilities
Noninterest-bearing deposits	$	313,791		288,117		9
Interest-bearing deposits		816,834		791,060		3

Total deposits		1,130,625		1,079,177		5
Short-term borrowings		62,927		53,883		17
Accrued expenses and other liabilities (2)		75,727		66,436		14
Long-term debt		184,586		152,998		21


Total liabilities (2)		1,453,865		1,352,494		7


Equity

Wells Fargo stockholders’ equity:
Preferred stock		19,379		16,267		19
Common stock – $1-2/3 par value, authorized 9,000,000,000 shares; issued 5,481,811,474 shares and 5,481,811,474 shares		9,136		9,136		-
Additional paid-in capital		60,100		60,296		-
Retained earnings		103,494		92,361		12
Cumulative other comprehensive income		3,118		1,386		125
Treasury stock – 266,802,983 shares and 224,648,769 shares		(11,206)		(8,104)		38
Unearned ESOP shares		(1,540)		(1,200)		28

Total Wells Fargo stockholders’ equity		182,481		170,142		7
Noncontrolling interests		509		866		(41)


Total equity		182,990		171,008		7


Total liabilities and equity (2)	$	1,636,855		1,523,502		7

NM - Not meaningful.

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

(2)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED BALANCE SHEET



(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Assets
Cash and due from banks	$	18,032		20,635		19,731		19,919		18,928
Federal funds sold, securities purchased under resale agreements and other short-term investments		261,932		238,719		222,781		213,793		182,036
Trading assets		67,755		71,674		63,753		62,813		60,203
Investment securities:
Available-for-sale, at fair value		248,251		248,961		252,665		252,007		259,399
Held-to-maturity, at cost		40,758		30,108		17,662		12,346		-
Mortgages held for sale		20,178		21,064		16,233		16,763		25,395
Loans held for sale		9,292		9,762		91		133		204

Loans (1)		838,883		828,942		826,443		822,286		809,135
Allowance for loan losses		(12,681)		(13,101)		(13,695)		(14,502)		(15,159)


Net loans (1)		826,202		815,841		812,748		807,784		793,976

Mortgage servicing rights:
Measured at fair value		14,031		13,900		14,953		15,580		14,501
Amortized		1,224		1,196		1,219		1,229		1,204
Premises and equipment, net		8,768		8,977		9,020		9,156		9,120
Goodwill		25,705		25,705		25,637		25,637		25,637
Other assets		94,727		92,332		90,214		86,342		94,262


Total assets (1)	$	1,636,855		1,598,874		1,546,707		1,523,502		1,484,865


Liabilities
Noninterest-bearing deposits	$	313,791		308,099		294,863		288,117		279,911
Interest-bearing deposits		816,834		810,478		799,713		791,060		761,960

Total deposits		1,130,625		1,118,577		1,094,576		1,079,177		1,041,871
Short-term borrowings		62,927		61,849		57,061		53,883		53,851
Accrued expenses and other liabilities (1)		75,727		69,021		65,179		66,436		69,118
Long-term debt		184,586		167,878		153,422		152,998		151,212


Total liabilities (1)		1,453,865		1,417,325		1,370,238		1,352,494		1,316,052


Equity
Wells Fargo stockholders’ equity:
Preferred stock		19,379		18,749		17,179		16,267		15,549
Common stock		9,136		9,136		9,136		9,136		9,136
Additional paid-in capital		60,100		59,926		60,618		60,296		60,188
Retained earnings		103,494		99,926		96,368		92,361		88,625
Cumulative other comprehensive income		3,118		4,117		2,752		1,386		2,289
Treasury stock		(11,206)		(9,271)		(8,206)		(8,104)		(7,290)
Unearned ESOP shares		(1,540)		(1,724)		(2,193)		(1,200)		(1,332)


Total Wells Fargo stockholders’ equity		182,481		180,859		175,654		170,142		167,165
Noncontrolling interests		509		690		815		866		1,648


Total equity		182,990		181,549		176,469		171,008		168,813


Total liabilities and equity (1)	$	1,636,855		1,598,874		1,546,707		1,523,502		1,484,865

(1)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER INVESTMENT SECURITIES



(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Available-for-sale securities:
Securities of U.S. Treasury and federal agencies	$	14,794		6,414		6,359		6,280		6,406
Securities of U.S. states and political subdivisions		45,805		44,779		44,140		42,536		42,293
Mortgage-backed securities:
Federal agencies		112,613		116,908		118,090		117,591		118,963
Residential and commercial		27,491		29,433		30,362		31,200		32,329


Total mortgage-backed securities		140,104		146,341		148,452		148,791		151,292
Other debt securities		45,013		48,312		50,253		51,015		55,828


Total available-for-sale debt securities		245,716		245,846		249,204		248,622		255,819
Marketable equity securities		2,535		3,115		3,461		3,385		3,580


Total available-for-sale securities		248,251		248,961		252,665		252,007		259,399


Held-to-maturity securities:
Securities of U.S. Treasury and federal agencies		28,887		17,777		5,861		-		-
Securities of U.S. states and political subdivisions		123		41		-		-		-
Federal agency mortgage-backed securities		5,770		6,030		6,199		6,304		-
Other debt securities		5,978		6,260		5,602		6,042		-


Total held-to-maturity debt securities		40,758		30,108		17,662		12,346		-


Total investment securities	$	289,009		279,069		270,327		264,353		259,399

FIVE QUARTER LOANS



(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Commercial:
Commercial and industrial (1)	$	212,370		206,055		196,768		193,811		188,593
Real estate mortgage		107,208		108,418		107,969		107,100		105,540
Real estate construction		17,880		17,056		16,615		16,747		16,413
Lease financing		11,675		11,908		11,841		12,034		11,688
Foreign (1)(2)		47,350		47,967		48,088		47,551		46,621


Total commercial		396,483		391,404		381,281		377,243		368,855

Consumer:
Real estate 1-4 family first mortgage		263,326		260,104		259,478		258,497		254,924
Real estate 1-4 family junior lien mortgage		60,844		62,455		63,965		65,914		67,675
Credit card		28,270		27,215		26,061		26,870		25,448
Automobile		55,242		54,095		52,607		50,808		49,693
Other revolving credit and installment		34,718		33,669		43,051		42,954		42,540


Total consumer		442,400		437,538		445,162		445,043		440,280


Total loans (3)	$	838,883		828,942		826,443		822,286		809,135

(1)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

(2)	Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign primarily based on whether the borrower’s primary address is outside of the United States.

(3)	Includes $24.2 billion, $25.0 billion, $25.9 billion, $26.7 billion and $27.8 billion of purchased credit-impaired (PCI) loans at September 30, June 30 and March 31, 2014, and December 31, and September 30, 2013, 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)	Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Nonaccrual loans:
Commercial:
Commercial and industrial	$	586			693		630		738		809
Real estate mortgage		1,636			1,802		2,030		2,252		2,496
Real estate construction		217			239		296		416		517
Lease financing		25			28		31		29		17
Foreign		31			36		40		40		47


Total commercial		2,495			2,798		3,027		3,475		3,886

Consumer:
Real estate 1-4 family first mortgage		8,784			9,026		9,357		9,799		10,450
Real estate 1-4 family junior lien mortgage		1,903			1,964		2,072		2,188		2,333
Automobile		143			150		161		173		188
Other revolving credit and installment		40			34		33		33		36

Total consumer		10,870			11,174		11,623		12,193		13,007

Total nonaccrual loans (1)(2)(3)		13,365			13,972		14,650		15,668		16,893

As a percentage of total loans (4)		1.59	%		1.69		1.77		1.91		2.09
Foreclosed assets:
Government insured/guaranteed (5)	$	2,617			2,359		2,302		2,093		1,781
Non-government insured/guaranteed		1,691			1,748		1,813		1,844		2,021


Total foreclosed assets		4,308			4,107		4,115		3,937		3,802


Total nonperforming assets	$	17,673			18,079		18,765		19,605		20,695


As a percentage of total loans (4)		2.11	%		2.18		2.27		2.38		2.56

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

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

(3)

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

(4)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

(5)

Consistent with regulatory reporting requirements, foreclosed real estate resulting from government insured/guaranteed loans are classified as nonperforming. Both principal and interest related to these foreclosed real estate assets are collectible because the loans were predominantly insured by the FHA or guaranteed by the VA. Previous enhancements to loan modification programs and release of an FHA foreclosure moratorium contributed to elevated levels of foreclosed assets in the latter half of 2013. As a result, the increase in balance at September 30, 2014, reflects an industry slowdown in meeting U.S. Department of Housing and Urban Development (HUD) conveyance requirements due to industry resource constraints to deal with the elevated levels, as well as other factors, including an increase in foreclosures in states with longer redemption periods, longer occupant evacuation periods, increased maintenance required for aging foreclosures and longer repair authorization periods.

Wells Fargo & Company and Subsidiaries

LOANS 90 DAYS OR MORE PAST DUE AND STILL ACCRUING



(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Loans 90 days or more past due and still accruing:
Total (excluding PCI)(1):	$	18,295		18,582		21,215		23,219		22,181
Less: FHA insured/guaranteed by the VA (2)(3)		16,628		16,978		19,405		21,274		20,214
Less: Student loans guaranteed under the FFELP (4)		721		707		860		900		917


Total, not government insured/guaranteed	$	946		897		950		1,045		1,050

By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	32		51		11		11		125
Real estate mortgage		37		53		13		35		40
Real estate construction		18		16		69		97		1
Foreign		4		2		2		-		1


Total commercial		91		122		95		143		167

Consumer:
Real estate 1-4 family first mortgage (3)		327		311		333		354		383
Real estate 1-4 family junior lien mortgage (3)		78		70		88		86		89
Credit card		302		266		308		321		285
Automobile		64		48		41		55		48
Other revolving credit and installment		84		80		85		86		78


Total consumer		855		775		855		902		883


Total, not government insured/guaranteed	$	946		897		950		1,045		1,050

(1)

The carrying value of purchased credit-impaired (PCI) loans contractually 90 days or more past due was $4.0 billion, $4.0 billion, $4.3 billion, $4.5 billion and $4.9 billion, at September 30, June 30, and March 31, 2014, and December 31, and September 30, 2013, 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)	Includes mortgages held for sale 90 days or more past due and still accruing.

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

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.




	Sept. 30,		December 31,


(in millions)	2014		2013		2008


Commercial:
Commercial and industrial	$	246		215		4,580
Real estate mortgage		973		1,136		5,803
Real estate construction		237		433		6,462
Foreign		403		720		1,859


Total commercial		1,859		2,504		18,704


Consumer:
Real estate 1-4 family first mortgage		22,271		24,100		39,214
Real estate 1-4 family junior lien mortgage		106		123		728
Automobile		-		-		151


Total consumer		22,377		24,223		40,093


Total PCI loans (carrying value)	$	24,236		26,727		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		213		-		-		213

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(1,512)		-		-		(1,512)
Loans resolved by sales to third parties (2)		(308)		-		(85)		(393)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(1,605)		(3,897)		(823)		(6,325)
Use of nonaccretable difference due to:
Losses from loan resolutions and write-downs (4)		(6,933)		(17,884)		(2,961)		(27,778)


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

Addition of nonaccretable difference due to acquisitions		13		-		-		13

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(27)		-		-		(27)
Loans resolved by sales to third parties (2)		(14)		-		-		(14)
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(116)		(1,954)		(19)		(2,089)
Use of nonaccretable difference due to:
Net recoveries (losses) from loan resolutions and write-downs (4)		(7)		22		15		30


Balance, September 30, 2014	$	114		2,772		196		3,082




Balance, June 30, 2014	$	140		2,771		200		3,111

Addition of nonaccretable difference due to acquisitions		-		-		-		-

Release of nonaccretable difference due to:
Loans resolved by settlement with borrower (1)		(9)		-		-		(9)
Loans resolved by sales to third parties (2)		-		-		-		-
Reclassification to accretable yield for loans with improving credit-related cash flows (3)		(13)		-		-		(13)
Use of nonaccretable difference due to:
Net recoveries (losses) from loan resolutions and write-downs (4)		(4)		1		(4)		(7)


Balance, September 30, 2014	$	114		2,772		196		3,082

(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 will result in increased interest income as a prospective yield adjustment over the remaining life of the loan or pool of loans.

(4)

Write-downs to net realizable value of PCI loans are absorbed by the nonaccretable difference when severe delinquency (normally 180 days) or other indications of severe borrower financial stress exist that indicate there will be a loss of contractually due amounts upon final resolution of the loan. Also includes foreign exchange adjustments related to underlying principal for which the nonaccretable difference was established.

Wells Fargo & Company and Subsidiaries

CHANGES IN ACCRETABLE YIELD RELATED TO PCI LOANS

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

•

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

•

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

•

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

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




(in millions)


Balance, December 31, 2008	$	10,447
Addition of accretable yield due to acquisitions		132
Accretion into interest income (1)		(11,184)
Accretion into noninterest income due to sales (2)		(393)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		6,325
Changes in expected cash flows that do not affect nonaccretable difference (3)		12,065


Balance, December 31, 2013		17,392
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(1,183)
Accretion into noninterest income due to sales (2)		(35)
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		2,089
Changes in expected cash flows that do not affect nonaccretable difference (3)		(284)


Balance, September 30, 2014	$	17,979




Balance, June 30, 2014	$	18,418
Addition of accretable yield due to acquisitions		-
Accretion into interest income (1)		(446)
Accretion into noninterest income due to sales (2)		-
Reclassification from nonaccretable difference for loans with improving credit-related cash flows		13
Changes in expected cash flows that do not affect nonaccretable difference (3)		(6)


Balance, September 30, 2014	$	17,979

(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 loan losses		1,641		-		107		1,748
Charge-offs		(1,615)		-		(103)		(1,718)


Balance, December 31, 2013		26		-		4		30
Reversal of provision for loan losses		(15)		-		-		(15)
Charge-offs		(3)		-		(1)		(4)

Balance, September 30, 2014	$	8		-		3		11




Balance, June 30, 2014	$	5		-		3		8
Provision (reversal of provision) for loan losses		4		-		(1)		3
Recoveries (charge-offs)		(1)		-		1		-

Balance, September 30, 2014	$	8		-		3		11

Wells Fargo & Company and Subsidiaries

PICK-A-PAY PORTFOLIO (1)



	September 30, 2014

	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	$	18,654		78	%	$	15,327		63	%	$	11,846		57	%
Florida		2,173		90			1,608		62			2,459		73
New Jersey		913		83			789		65			1,580		71
New York		573		78			529		65			731		68
Texas		241		64			213		56			960		51
Other states		4,363		83			3,591		66			6,756		69

Total Pick-a-Pay loans	$	26,917				$	22,057				$	24,332

(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 2014.

(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)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Commercial:
Legacy Wachovia commercial and industrial, commercial real estate and foreign PCI loans (1)	$	1,465		1,499		1,720		2,013		2,342


Total commercial		1,465		1,499		1,720		2,013		2,342


Consumer:
Pick-a-Pay mortgage (1)		46,389		47,965		49,533		50,971		52,805
Liquidating home equity		3,083		3,290		3,505		3,695		3,911
Legacy Wells Fargo Financial indirect auto		54		85		132		207		299
Legacy Wells Fargo Financial debt consolidation		11,781		12,169		12,545		12,893		13,281
Education Finance-government guaranteed (2)		-		-		10,204		10,712		11,094
Legacy Wachovia other PCI loans (1)		320		336		355		375		406


Total consumer		61,627		63,845		76,274		78,853		81,796


Total non-strategic and liquidating loan portfolios	$	63,092		65,344		77,994		80,866		84,138

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

(2)	The change from March 31, 2014, was predominantly due to the transfer of government guaranteed student loans to loans held for sale.

Wells Fargo & Company and Subsidiaries

CHANGES IN ALLOWANCE FOR CREDIT LOSSES


	Quarter ended Sept. 30,					Nine months ended Sept. 30,

(in millions)	2014			2013		2014		2013


Balance, beginning of period	$	13,834			16,618		14,971		17,477
Provision for credit losses		368			75		910		1,946
Interest income on certain impaired loans (1)		(52)			(63)		(163)		(209)
Loan charge-offs:
Commercial:
Commercial and industrial		(154)			(151)		(451)		(516)
Real estate mortgage		(12)			(44)		(47)		(153)
Real estate construction		(3)			(6)		(7)		(18)
Lease financing		(5)			(3)		(12)		(30)
Foreign		(3)			(4)		(16)		(23)


Total commercial		(177)			(208)		(533)		(740)


Consumer:
Real estate 1-4 family first mortgage		(167)			(303)		(583)		(1,170)
Real estate 1-4 family junior lien mortgage		(201)			(345)		(670)		(1,287)
Credit card		(236)			(239)		(769)		(771)
Automobile		(192)			(153)		(515)		(443)
Other revolving credit and installment		(160)			(191)		(508)		(558)


Total consumer		(956)			(1,231)		(3,045)		(4,229)


Total loan charge-offs		(1,133)			(1,439)		(3,578)		(4,969)


Loan recoveries:
Commercial:
Commercial and industrial		89			93		287		288
Real estate mortgage		49			64		116		149
Real estate construction		61			23		108		114
Lease financing		1			3		6		13
Foreign		1			6		4		23


Total commercial		201			189		521		587

Consumer:
Real estate 1-4 family first mortgage		53			61		162		171
Real estate 1-4 family junior lien mortgage		61			70		178		204
Credit card		35			32		126		95
Automobile		80			75		267		247
Other revolving credit and installment		35			37		114		119


Total consumer		264			275		847		836


Total loan recoveries		465			464		1,368		1,423


Net loan charge-offs (2)		(668)			(975)		(2,210)		(3,546)


Allowances related to business combinations/other		(1)			(8)		(27)		(21)


Balance, end of period	$	13,481			15,647		13,481		15,647


Components:
Allowance for loan losses	$	12,681			15,159		12,681		15,159
Allowance for unfunded credit commitments		800			488		800		488


Allowance for credit losses (3)	$	13,481			15,647		13,481		15,647

Net loan charge-offs (annualized) as a percentage of average total loans (2)		0.32	%		0.48		0.36		0.59
Allowance for loan losses as a percentage of total loans (3)(4)		1.51			1.87		1.51		1.87
Allowance for credit losses as a percentage of total loans (3)(4)		1.61			1.93		1.61		1.93

(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 $11 million and $22 million at September 30, 2014 and 2013, 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.

(4)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CHANGES IN ALLOWANCE FOR CREDIT LOSSES



	Quarter ended

(in millions)	Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Balance, beginning of quarter	$	13,834			14,414		14,971		15,647		16,618
Provision for credit losses		368			217		325		363		75
Interest income on certain impaired loans (1)		(52)			(55)		(56)		(55)		(63)
Loan charge-offs:
Commercial:
Commercial and industrial		(154)			(139)		(158)		(199)		(151)
Real estate mortgage		(12)			(15)		(20)		(37)		(44)
Real estate construction		(3)			(3)		(1)		(10)		(6)
Lease financing		(5)			(3)		(4)		(3)		(3)
Foreign		(3)			(8)		(5)		(4)		(4)


Total commercial		(177)			(168)		(188)		(253)		(208)


Consumer:
Real estate 1-4 family first mortgage		(167)			(193)		(223)		(269)		(303)
Real estate 1-4 family junior lien mortgage		(201)			(220)		(249)		(291)		(345)
Credit card		(236)			(266)		(267)		(251)		(239)
Automobile		(192)			(143)		(180)		(182)		(153)
Other revolving credit and installment		(160)			(171)		(177)		(195)		(191)


Total consumer		(956)			(993)		(1,096)		(1,188)		(1,231)


Total loan charge-offs		(1,133)			(1,161)		(1,284)		(1,441)		(1,439)


Loan recoveries:
Commercial:
Commercial and industrial		89			85		113		92		93
Real estate mortgage		49			25		42		78		64
Real estate construction		61			23		24		23		23
Lease financing		1			2		3		3		3
Foreign		1			2		1		4		6


Total commercial		201			137		183		200		189

Consumer:
Real estate 1-4 family first mortgage		53			56		53		74		61
Real estate 1-4 family junior lien mortgage		61			60		57		65		70
Credit card		35			55		36		31		32
Automobile		80			97		90		74		75
Other revolving credit and installment		35			39		40		34		37


Total consumer		264			307		276		278		275


Total loan recoveries		465			444		459		478		464


Net loan charge-offs		(668)			(717)		(825)		(963)		(975)


Allowances related to business combinations/other		(1)			(25)		(1)		(21)		(8)


Balance, end of quarter	$	13,481			13,834		14,414		14,971		15,647


Components:
Allowance for loan losses	$	12,681			13,101		13,695		14,502		15,159
Allowance for unfunded credit commitments		800			733		719		469		488


Allowance for credit losses	$	13,481			13,834		14,414		14,971		15,647

Net loan charge-offs (annualized) as a percentage of average total loans		0.32	%		0.35		0.41		0.47		0.48
Allowance for loan losses as a percentage of:
Total loans (2)		1.51			1.58		1.66		1.76		1.87
Nonaccrual loans		95			94		93		93		90
Nonaccrual loans and other nonperforming assets		72			72		73		74		73
Allowance for credit losses as a percentage of:
Total loans (2)		1.61			1.67		1.74		1.82		1.93
Nonaccrual loans		101			99		98		96		93
Nonaccrual loans and other nonperforming assets		76			77		77		76		76

(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)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company

FIVE QUARTER RISK-BASED CAPITAL COMPONENTS



			Under Basel III (General Approach) (1)							Under Basel I

(in billions)			Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Total equity			$	183.0			181.5		176.5		171.0		168.8
Noncontrolling interests				(0.5)			(0.6)		(0.8)		(0.9)		(1.6)


Total Wells Fargo stockholders’ equity				182.5			180.9		175.7		170.1		167.2


Adjustments:
Preferred stock				(18.0)			(17.2)		(15.2)		(15.2)		(14.3)
Cumulative other comprehensive income (2)				(2.5)			(3.2)		(2.2)		(1.4)		(2.2)
Goodwill and other intangible assets (2)(3)				(25.5)			(25.6)		(25.6)		(29.6)		(29.8)
Investment in certain subsidiaries and other				-			(0.1)		-		(0.4)		(0.6)


Common Equity Tier 1 (1)(4)	(A)			136.5			134.8		132.7		123.5		120.3


Preferred stock				18.0			17.2		15.2		15.2		14.3
Qualifying hybrid securities and noncontrolling interests				-			-		-		2.0		2.9
Other				(0.4)			(0.3)		(0.3)		-		-


Total Tier 1 capital				154.1			151.7		147.6		140.7		137.5


Long-term debt and other instruments qualifying as Tier 2				23.7			24.0		21.7		20.5		18.9
Qualifying allowance for credit losses				13.5			13.8		14.1		14.3		14.3
Other				(0.2)			-		0.2		0.7		0.6


Total Tier 2 capital				37.0			37.8		36.0		35.5		33.8


Total qualifying capital	(B)		$	191.1			189.5		183.6		176.2		171.3


Basel III Risk-Weighted Assets (RWAs) (5)(6):
Credit risk			$	1,171.7			1,145.7		1,120.3
Market risk				51.3			46.8		48.1

Basel I RWAs (5)(6):
Credit risk											1,105.2		1,099.2
Market risk											36.3		35.9


Total Basel III / Basel I RWAs	(C)		$	1,223.0			1,192.5		1,168.4		1,141.5		1,135.1


Capital Ratios (6):
Common Equity Tier 1 to total RWAs	(A)/	(C)		11.16	%		11.31		11.36		10.82		10.60
Total capital to total RWAs	(B)/	(C)		15.63			15.89		15.71		15.43		15.09

(1)

Basel III revises the definition of capital, increases minimum capital ratios, and introduces a minimum Common Equity Tier 1 (CET1) ratio. These changes are being fully phased in effective January 1, 2014 through the end of 2021 and the capital ratios will be determined using Basel III (General Approach) RWAs during 2014.

(2)	Under transition provisions to Basel III, cumulative other comprehensive income (previously deducted under Basel I) is included in CET1 over a specified phase-in period. In addition, certain intangible assets includable in CET1 are phased out over a specified period.

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

(4)

CET1 (formerly Tier 1 common equity under Basel I) is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews CET1 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.

(5)

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

(6)	The Company’s September 30, 2014, RWAs and capital ratios are preliminary.

COMMON EQUITY TIER 1 UNDER BASEL III (ADVANCED APPROACH, FULLY PHASED-IN) (1)(2)



(in billions)		Sept. 30, 2014


Common Equity Tier 1 (transition amount) under Basel III		$	136.5


Adjustments from transition amount to fully phased-in under Basel III (3):
Cumulative other comprehensive income			2.5
Other			(2.5)


Total adjustments			-


Common Equity Tier 1 (fully phased-in) under Basel III	(C)	$	136.5


Total RWAs anticipated under Basel III (4)	(D)	$	1,305.7


Common Equity Tier 1 to total RWAs anticipated under Basel III (Advanced Approach, fully phased-in)	(C)/(D)		10.46	%

(1)

CET1 is a non-GAAP financial measure that is used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews CET1 along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity, because of current interest in such information on the part of market participants.

(2)

The Basel III CET1 and RWA are estimated based on the Basel III capital rules adopted July 2, 2013, by the FRB. The rules establish a new comprehensive capital framework for U.S. banking organizations that implement the Basel III capital framework and certain provisions of the Dodd-Frank Act. The rules are being phased in effective January 1, 2014 through the end of 2021.

(3)	Assumes cumulative other comprehensive income is fully phased in and certain other intangible assets are fully phased out under Basel III capital rules.

(4)

The final Basel III capital rules provide for two capital frameworks: the Standardized Approach intended to replace Basel I, and the Advanced Approach applicable to certain institutions. Under the final rules, we will be subject to the lower of our CET1 ratio calculated under the Standardized Approach and under the Advanced Approach in the assessment of our capital adequacy. While the amount of RWAs determined under the Standardized and Advanced Approaches has been converging, management’s estimate of RWAs as of September 30, 2014, is based on the Advanced Approach, which is currently estimated to be higher than RWAs under the Standardized Approach, resulting in a lower CET1 compared with the Standardized Approach. Basel III capital rules adopted by the Federal Reserve Board incorporate different classification of assets, with risk weights based on Wells Fargo’s internal 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

	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013


Quarter ended Sept. 30,
Net interest income (3)	$	7,472		7,244		3,007		3,059		790		749		(328)		(304)		10,941		10,748
Provision (reversal of provision) for credit losses		465		240		(85)		(144)		(25)		(38)		13		17		368		75
Noninterest income		5,356		5,000		2,895		2,812		2,763		2,558		(742)		(640)		10,272		9,730
Noninterest expense		7,051		7,060		3,250		3,084		2,690		2,619		(743)		(661)		12,248		12,102


Income (loss) before income tax expense (benefit)		5,312		4,944		2,737		2,931		888		726		(340)		(300)		8,597		8,301
Income tax expense (benefit)		1,609		1,505		824		952		338		275		(129)		(114)		2,642		2,618


Net income (loss) before noncontrolling interests		3,703		3,439		1,913		1,979		550		451		(211)		(186)		5,955		5,683
Less: Net income (loss) from noncontrolling interests		233		98		(7)		6		-		1		-		-		226		105


Net income (loss) (4)	$	3,470		3,341		1,920		1,973		550		450		(211)		(186)		5,729		5,578


Average loans (5)	$	498.6		497.7		316.5		287.7		52.6		46.7		(34.5)		(30.0)		833.2		802.1
Average assets (5)		950.2		836.6		553.0		498.1		188.8		180.8		(74.1)		(68.5)		1,617.9		1,447.0
Average core deposits		646.9		618.2		278.4		235.3		153.6		150.6		(66.7)		(63.8)		1,012.2		940.3



Nine months ended Sep. 30,
Net interest income (3)	$	22,133		21,614		8,851		9,165		2,333		2,118		(970)		(900)		32,347		31,997
Provision (reversal of provision) for credit losses		1,163		2,265		(227)		(320)		(58)		(5)		32		6		910		1,946
Noninterest income		15,894		16,471		8,577		8,927		8,238		7,647		(2,152)		(1,927)		30,557		31,118
Noninterest expense		20,845		21,650		9,668		9,358		8,096		7,800		(2,219)		(2,051)		36,390		36,757


Income (loss) before income tax expense (benefit)		16,019		14,170		7,987		9,054		2,533		1,970		(935)		(782)		25,604		24,412
Income tax expense (benefit)		4,805		4,426		2,376		3,024		962		748		(355)		(297)		7,788		7,901


Net income (loss) before noncontrolling interests		11,214		9,744		5,611		6,030		1,571		1,222		(580)		(485)		17,816		16,511
Less: Net income (loss) from noncontrolling interests		469		234		(3)		8		2		1		-		-		468		243


Net income (loss) (4)	$	10,745		9,510		5,614		6,022		1,569		1,221		(580)		(485)		17,348		16,268


Average loans (5)	$	503.0		498.3		308.9		285.3		51.2		45.3		(33.7)		(29.8)		829.4		799.1
Average assets (5)		920.5		819.2		534.4		496.9		189.0		179.4		(74.3)		(69.7)		1,569.6		1,425.8
Average core deposits		637.8		620.1		267.8		230.0		154.2		148.8		(67.1)		(64.8)		992.7		934.1

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

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

(3)

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

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

(5)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER OPERATING SEGMENT RESULTS (1)


							Quarter ended

(income/expense in millions, average balances in billions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


COMMUNITY BANKING
Net interest income (2)	$	7,472		7,386		7,275		7,225		7,244
Provision for credit losses		465		279		419		490		240
Noninterest income		5,356		5,220		5,318		5,029		5,000
Noninterest expense		7,051		7,020		6,774		7,073		7,060


Income before income tax expense		5,312		5,307		5,400		4,691		4,944
Income tax expense		1,609		1,820		1,376		1,373		1,505


Net income before noncontrolling interests		3,703		3,487		4,024		3,318		3,439
Less: Net income from noncontrolling interests		233		56		180		96		98


Segment net income	$	3,470		3,431		3,844		3,222		3,341


Average loans	$	498.6		505.4		505.0		502.5		497.7
Average assets		950.2		918.1		892.6		883.6		836.6
Average core deposits		646.9		639.8		626.5		620.2		618.2



WHOLESALE BANKING
Net interest income (2)	$	3,007		2,953		2,891		3,133		3,059
Reversal of provision for credit losses		(85)		(49)		(93)		(125)		(144)
Noninterest income		2,895		2,993		2,689		2,839		2,812
Noninterest expense		3,250		3,203		3,215		3,020		3,084


Income before income tax expense		2,737		2,792		2,458		3,077		2,931
Income tax expense		824		838		714		960		952


Net income before noncontrolling interests		1,913		1,954		1,744		2,117		1,979
Less: Net income (loss) from noncontrolling interests		(7)		2		2		6		6


Segment net income	$	1,920		1,952		1,742		2,111		1,973


Average loans (4)	$	316.5		308.1		301.9		294.6		287.7
Average assets (4)		553.0		532.4		517.4		509.0		498.1
Average core deposits		278.4		265.8		259.0		258.5		235.3


WEALTH, BROKERAGE AND RETIREMENT
Net interest income (2)	$	790		775		768		770		749
Reversal of provision for credit losses		(25)		(25)		(8)		(11)		(38)
Noninterest income		2,763		2,775		2,700		2,668		2,558
Noninterest expense		2,690		2,695		2,711		2,655		2,619


Income before income tax expense		888		880		765		794		726
Income tax expense		338		334		290		302		275


Net income before noncontrolling interests		550		546		475		492		451
Less: Net income from noncontrolling interests		-		2		-		1		1


Segment net income	$	550		544		475		491		450


Average loans	$	52.6		51.0		50.0		48.4		46.7
Average assets		188.8		187.6		190.6		185.3		180.8
Average core deposits		153.6		153.0		156.0		153.9		150.6


OTHER (3)
Net interest income (2)	$	(328)		(323)		(319)		(325)		(304)
Provision for credit losses		13		12		7		9		17
Noninterest income		(742)		(713)		(697)		(674)		(640)
Noninterest expense		(743)		(724)		(752)		(663)		(661)


Loss before income tax benefit		(340)		(324)		(271)		(345)		(300)
Income tax benefit		(129)		(123)		(103)		(131)		(114)


Net loss before noncontrolling interests		(211)		(201)		(168)		(214)		(186)
Less: Net income from noncontrolling interests		-		-		-		-		-


Other net loss	$	(211)		(201)		(168)		(214)		(186)



Average loans	$	(34.5)		(33.5)		(33.1)		(32.2)		(30.0)
Average assets		(74.1)		(74.1)		(74.7)		(72.1)		(68.5)
Average core deposits		(66.7)		(66.9)		(67.7)		(66.8)		(63.8)



CONSOLIDATED COMPANY
Net interest income (2)	$	10,941		10,791		10,615		10,803		10,748
Provision for credit losses		368		217		325		363		75
Noninterest income		10,272		10,275		10,010		9,862		9,730
Noninterest expense		12,248		12,194		11,948		12,085		12,102


Income before income tax expense		8,597		8,655		8,352		8,217		8,301
Income tax expense		2,642		2,869		2,277		2,504		2,618


Net income before noncontrolling interests		5,955		5,786		6,075		5,713		5,683
Less: Net income from noncontrolling interests		226		60		182		103		105

Wells Fargo net income	$	5,729		5,726		5,893		5,610		5,578


Average loans (4)	$	833.2		831.0		823.8		813.3		802.1
Average assets (4)		1,617.9		1,564.0		1,525.9		1,505.8		1,447.0
Average core deposits		1,012.2		991.7		973.8		965.8		940.3

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

(2)

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

(4)	Financial information for certain periods prior to 2014 was revised to reflect our determination that certain factoring arrangements did not qualify as loans. See footnote (1) to the Summary Financial Data table on page 17 for more information.

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING



	Quarter ended

(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


MSRs measured using the fair value method:

Fair value, beginning of quarter	$	13,900		14,953		15,580		14,501		14,185

Servicing from securitizations or asset transfers		340		271		289		520		954


Net additions		340		271		289		520		954


Changes in fair value:

Due to changes in valuation model inputs or assumptions:
Mortgage interest rates (1)		251		(876)		(509)		1,048		61
Servicing and foreclosure costs (2)		(4)		23		(34)		(54)		(34)
Discount rates (3)		-		(55)		-		-		-
Prepayment estimates and other (4)		6		73		102		(11)		(240)


Net changes in valuation model inputs or assumptions		253		(835)		(441)		983		(213)


Other changes in fair value (5)		(462)		(489)		(475)		(424)		(425)


Total changes in fair value		(209)		(1,324)		(916)		559		(638)

Fair value, end of quarter	$	14,031		13,900		14,953		15,580		14,501

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

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

(3)	Reflects discount rate assumption change, excluding portion attributable to changes in mortgage interest rates.

(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)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Amortized MSRs:

Balance, beginning of quarter	$	1,196		1,219		1,229		1,204		1,176
Purchases		47		32		40		64		59
Servicing from securitizations or asset transfers		29		24		14		28		32
Amortization		(48)		(79)		(64)		(67)		(63)


Balance, end of quarter	$	1,224		1,196		1,219		1,229		1,204




Fair value of amortized MSRs:

Beginning of quarter	$	1,577		1,624		1,575		1,525		1,533
End of quarter		1,647		1,577		1,624		1,575		1,525

Wells Fargo & Company and Subsidiaries

FIVE QUARTER CONSOLIDATED MORTGAGE SERVICING (CONTINUED)




	Quarter ended

(in millions)	Sept. 30, 2014		June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Servicing income, net:
Servicing fees (1)	$	919		1,128		1,070		934		966
Changes in fair value of MSRs carried at fair value:
Due to changes in valuation model inputs or assumptions (2)		253		(835)		(441)		983		(213)
Other changes in fair value (3)		(462)		(489)		(475)		(424)		(425)


Total changes in fair value of MSRs carried at fair value		(209)		(1,324)		(916)		559		(638)
Amortization		(48)		(79)		(64)		(67)		(63)
Net derivative gains (losses) from economic hedges (4)		17		1,310		848		(717)		239


Total servicing income, net	$	679		1,035		938		709		504


Market-related valuation changes to MSRs, net of hedge results (2)+(4)	$	270		475		407		266		26

(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)	Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013

Managed servicing portfolio (1):
Residential mortgage servicing:
Serviced for others	$	1,430			1,451		1,470		1,485		1,494
Owned loans serviced		342			341		337		338		344
Subserviced for others		5			5		5		6		6


Total residential servicing		1,777			1,797		1,812		1,829		1,844


Commercial mortgage servicing:
Serviced for others		440			429		424		419		416
Owned loans serviced		107			109		108		107		106
Subserviced for others		7			7		7		7		11

Total commercial servicing		554			545		539		533		533


Total managed servicing portfolio	$	2,331			2,342		2,351		2,362		2,377


Total serviced for others	$	1,870			1,880		1,894		1,904		1,910
Ratio of MSRs to related loans serviced for others		0.82	%		0.80		0.85		0.88		0.82
Weighted-average note rate (mortgage loans serviced for others)		4.47			4.49		4.51		4.52		4.54

(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)	Sept. 30, 2014			June 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sept. 30, 2013


Application data:
Wells Fargo first mortgage quarterly applications	$	64			72		60		65		87
Refinances as a percentage of applications		40	%		36		39		42		36
Wells Fargo first mortgage unclosed pipeline, at quarter end	$	25			30		27		25		35




Residential real estate originations:
Wells Fargo first mortgage loans:
Retail	$	27			25		20		26		44
Correspondent		20			21		16		23		35
Other (1)		1			1		-		1		1


Total quarter-to-date	$	48			47		36		50		80

Total year-to-date	$	131			83		36		351		301

(1)	Consists of home equity loans and lines.

Wells Fargo & Company and Subsidiaries

CHANGES IN MORTGAGE REPURCHASE LIABILITY



	Quarter ended						Nine months ended

(in millions)	Sept. 30, 2014		June 30, 2014		Sept. 30, 2013		Sept. 30, 2014		Sept. 30, 2013

Balance, beginning of period	$	766		799		2,222		899		2,206
Provision for repurchase losses:
Loan sales		12		12		28		34		127
Change in estimate (1)		(93)		(38)		-		(135)		275


Total additions (reductions)		(81)		(26)		28		(101)		402

Losses		(16)		(7)		(829)		(129)		(1,187)


Balance, end of period	$	669		766		1,421		669		1,421

(1)	Results from changes in investor demand, mortgage insurer practices, credit and 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

September 30, 2014
Number of loans		426		322		233		981
Original loan balance (3)	$	93		75		52		220

June 30, 2014
Number of loans		678		362		305		1,345
Original loan balance (3)	$	149		80		66		295

March 31, 2014
Number of loans		599		391		409		1,399
Original loan balance (3)	$	126		89		90		305

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

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

(1)

Includes repurchase demands of 7 and $1 million, 14 and $3 million, 25 and $3 million, 42 and $6 million, and 1,247 and $225 million at September 30, June 30 and March 31, 2014, and December 31, and September 30, 2013, respectively, received from investors on mortgage servicing rights acquired from other originators. We generally have the right of recourse against the seller and may be able to recover losses related to such repurchase demands subject to counterparty risk associated with the seller.

(2)

As part of our representations and warranties in our loan sales contracts, we typically represent to GSEs and private investors that certain loans have mortgage insurance to the extent there are loans that have loan to value ratios in excess of 80% that require mortgage insurance. To the extent the mortgage insurance is rescinded by the mortgage insurer due to a claim of breach of a contractual representation or warranty, the lack of insurance may result in a repurchase demand from an investor. Similar to repurchase demands, we evaluate mortgage insurance rescission notices for validity and appeal for reinstatement if the rescission was not based on a contractual breach. When investor demands are received due to lack of mortgage insurance, they are reported as unresolved repurchase demands based on the applicable investor category for the loan (GSE or private).

(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