WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.2

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8-K - FORM 8-K - WELLS FARGO & COMPANY/MN	d803270d8k.htm
EX-99.1 - EX-99.1 - WELLS FARGO & COMPANY/MN	d803270dex991.htm

3Q14 Quarterly Supplement

October 14, 2014

Exhibit 99.2

Wells Fargo 3Q14 Supplement

Appendix

Non-strategic/liquidating loan portfolio

Purchased credit-impaired (PCI) portfolios

Residential mortgage trends

Real estate 1-4 family first mortgage portfolio

Real estate 1-4 family junior lien mortgage portfolio

Consumer credit card portfolio

Auto portfolios

Student lending portfolio

Common Equity Tier 1 under Basel III (General

Approach)

Common Equity Tier 1 under Basel III (Advanced

Approach, fully phased-in)

Forward-looking statements and

additional information

Table of contents

3Q14 Results

3Q14 Highlights

Page 2

Year-over-year results

Strong revenue diversification

Balance Sheet and credit overview (linked quarter)

Income Statement overview (linked quarter)

Loans

Broad-based, year-over-year loan growth

Commercial and Industrial diversified loan growth

Deposits

Net interest income

Noninterest income

Noninterest expense and efficiency ratio

Community Banking

Wholesale Banking

Wealth, Brokerage and Retirement

Credit quality

Capital position

Capital return

Summary

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.

Pages 21-32

Wells Fargo 3Q14 Supplement

3Q14 Highlights

Strong earnings of $5.7 billion, up $151 million,

or 3% year-over-year (YoY), and stable linked

quarter (LQ)

Diluted earnings per common share of $1.02, up

3% YoY and 1% LQ

Balanced revenue

Net interest income up 1% LQ

Noninterest income stable LQ

Solid loan and deposit growth, with core loans

(1)

up 2% and deposits up 1% LQ

Pre-tax pre-provision profit (PTPP)

(2)

up 1% LQ

Provision expense up $151 million LQ as lower net

charge-offs were more than offset by a lower

reserve release

Strong capital position and shareholder return

Returned $3.6 billion to shareholders through

common stock dividends and net share

repurchases including $1.0 billion forward share

repurchase expected to settle in 4Q14

Wells Fargo Net Income

($ in millions)

(1)

Diluted earnings per common share

$0.99

$1.00

$1.05

$1.01

$1.02

5,578

5,610

5,893

5,726

5,729

3Q13

4Q13

1Q14

2Q14

3Q14

(2)

See pages 7 and 22 for additional information regarding core loans and the non-strategic/liquidating portfolio, which is comprised of Pick-a-Pay, liquidating

home equity, legacy WFF indirect auto, legacy WFF debt consolidation, Education Finance-government guaranteed, and legacy Wachovia commercial &

industrial, commercial real estate, foreign and other PCI loan portfolios. At the end of 2Q14, $9.7 billion in Education Finance-government guaranteed loans

were transferred to loans held for sale.

Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes 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.

Wells Fargo 3Q14 Supplement

Year-over-year results

Pre-tax Pre-provision Profit

(2)

($ in millions)

Net Income

($ in millions, except EPS)

Diluted earnings per common share

Period-end Loans

(1)

($ in billions)

Net Interest Income

($ in millions)

Noninterest Income

($ in millions)

Period-end Deposits

($ in billions)

(1)

Please see page 1 for information on certain prior period revisions.

(2)

Pre-tax pre-provision profit (PTPP) is total revenue less noninterest expense. Management believes 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.

Mortgage banking

Noninterest income excluding Mortgage banking

Core Deposits

10,748

10,941

3Q13

3Q14

8,376

8,965

3Q13

3Q14

8,122

8,639

1,608

1,633

9,730

10,272

3Q13

3Q14

947.8

1,016.5

94.1

114.1

1,041.9

1,130.6

3Q13

3Q14

$0.99

$1.02

5,578

5,729

3Q13

3Q14

725.0

775.8

84.1

63.1

809.1

838.9

3Q13

3Q14

Non-strategic/liquidating loans

Core loans

Wells Fargo 3Q14 Supplement

Balanced Spread and

Fee Income

Diversified Fee Generation

Deposit Service Charges

13%

Card Fees

Total Mortgage Banking

16%

Insurance

Net Gains from Trading

All data is for 3Q14.

(1) Other noninterest income includes lease income, life insurance investment income and all other noninterest income.

Strong revenue diversification

Total Trust & Investment Fees 35%

Total Other Fees

10%

Net Gains from Equity Inv.

Net Interest

Income

Noninterest

Income

Other Noninterest Income

(1)

Net Gains on Debt Securities

$21.2

billion

$10.3

billion

Brokerage advisory,

commissions

and

other

Mortgage Orig./

Sales, net

Mortgage Servicing, net

Trust and investment

management

Investment banking

Charges and fees on loans

Merchant processing

1% Cash network

1% CRE brokerage commissions

1% Letters of credit

Card fees

Deposit service charges

Other noninterest income

(1)

Net gains from trading

Insurance

All other fees

Net gains from equity investments

Net gains on debt securities

13%

23%

48%

52%

Wells Fargo 3Q14 Supplement

Balance Sheet and credit overview (linked quarter)

Loans

Core loans

(1)

increased $12.2 billion, or 6% annualized, LQ on broad-based growth

Non-strategic/liquidating portfolio

(1)

decreased $2.2 billion

Short-term investments/

Fed funds sold

Up $23.2 billion primarily due to deposit growth and liquidity-related actions

Investment securities

Up $9.9 billion as gross purchases of ~$25 billion were partially offset by run-off

Deposits

Up $12.0 billion on strong consumer and small business growth and liquidity-related

fundings

Long term debt

Up $16.7 billion including $16.3 billion in liquidity-related issuance

Common stock

repurchases

Common shares outstanding down 34.9 million on net share repurchases

Purchased 48.7 million common shares in the quarter and entered into a $1.0 billion

forward

repurchase

transaction

that

expected

settle

for

estimated

19.8

million shares in 4Q14

Credit

Provision expense of $368 million, up $151 million

Net charge-offs of $668 million, or 32 bps, down $49 million

$300 million reserve release

(2)

vs. $500 million in 2Q14 on strong credit

performance

Period-end balances. All comparisons are 3Q14 compared with 2Q14.

(1)

See pages 7 and 22 for additional information regarding core loans and the non-strategic/liquidating portfolio, which is comprised of Pick-a-Pay,

liquidating home equity, legacy WFF indirect auto, legacy WFF debt consolidation, Education Finance-government guaranteed, and legacy

Wachovia commercial & industrial, commercial real estate, foreign and other PCI loan portfolios. At the end of 2Q14, $9.7 billion in Education

Finance-government guaranteed loans were transferred to loans held for sale.

(2)

Provision expense minus net charge-offs.

Wells Fargo 3Q14 Supplement

Income Statement overview (linked quarter)

Total revenue

Revenue of $21.2 billion, up $147 million

Net interest income

NII up $150 million driven by growth in earning assets, PCI accretion income and one extra

day in the quarter

NIM down 9 bps to 3.06% reflecting deposit growth and liquidity-related funding actions

Noninterest income

Noninterest income stable

Service charges on deposit accounts and card fees each up $28 million

Trust and investment fees down $55 million as lower investment banking was partially

offset by higher retail brokerage asset-based fees and trust and investment

management fees

Mortgage banking down $90 million as lower servicing income was partially offset by

higher production revenue

Market

sensitive

revenue

(1)

$231

million

Noncontrolling interest

(Reduces Net Income)

Minority interest up $166 million LQ reflecting strong equity gains from venture capital

businesses

Noninterest expense

Noninterest expense up $54 million

Personnel

expense

down

$38

million

lower

employee

benefits

expense

(2)

than

offset higher salaries expense and higher commission and incentive compensation

Operating

losses

$53

million

primarily

from

higher

litigation

accruals

Outside professional services up $38 million

Income tax

Tax expense down $227 million reflecting tax benefits primarily due to charitable donations of

appreciated securities

All comparisons are 3Q14 compared with 2Q14.

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

(2) Deferred compensation plan investment results are essentially P&L neutral as the employee benefits expense is hedged with offsetting trading revenue.

•

Net gains from trading down $214 million on $163 million lower deferred

compensation

plan

investment

results

(2)

(offset

employee

benefits

expense) and lower customer accommodation trading results

•

Net gains from debt securities up $182 million

•

Net gains from equity investments up $263 million from venture capital

businesses

Wells Fargo 3Q14 Supplement

Loans

(1)

(1) Please see page 1 for information on certain prior period revisions.

(2) See page 22 for additional information regarding the non-strategic/liquidating portfolio, which is comprised of Pick-a-Pay, liquidating home equity, legacy WFF

indirect auto, legacy WFF debt consolidation, Education Finance-government guaranteed, and legacy Wachovia commercial & industrial, commercial real estate,

foreign and other PCI loan portfolios. At the end of 2Q14, $9.7 billion in Education Finance-government guaranteed loans were transferred to loans held for sale.

Period–end Loans Outstanding

($ in billions)

(2)

Total average loan yield

Period-end

Commercial loans up $5.1 billion LQ

driven by growth in C&I and real estate construction

Consumer loans up $7.1 billion LQ on

growth in nonconforming mortgage, auto and credit

card

Average

Excluding the 2Q14 period-end transfer of $9.7 billion in

student loans to held for sale, average loans would have

been up $12.0 billion, or 6% annualized, LQ

Core loan yield excluding the non-strategic/

liquidating portfolio was down 3 bps

Non-strategic/liquidating portfolio yield

of 5.46%

725.0

741.4

748.4

763.6

775.8

84.1

80.9

78.0

65.3

63.1

809.1

822.3

826.4

828.9

838.9

3Q13

4Q13

1Q14

2Q14

3Q14

Core loans

Non-strategic/liquidating loans

4.42%

4.36%

4.29%

4.28%

4.29%

Core loans grew $50.8 billion, or 7%, YoY and $12.2

billion, or 6% annualized, LQ

Non-strategic/liquidating loans

(2)

down $21.0 billion

YoY and $2.2 billion from 2Q14

Total average loans of $833.2 billion up $31.1 billion

YoY and $2.2 billion LQ

Total average loan yield of 4.29%, up 1 bp LQ

Wells Fargo 3Q14 Supplement

Broad-based, year-over-year loan

growth

Growth in nonconforming mortgage

Strong originations, up 9%

Continued account growth

($ in billions)

Broad-based growth, see page 9 for

additional information

Trade finance growth and 3Q13 U.K.

CRE acquisition

(1)

Please see page 1 for information on certain prior period revisions.

(2)

Please see page 25 for additional information.

New originations

150

160

170

180

190

200

210

3Q13

3Q14

3Q13

3Q14

100

110

120

130

3Q13

3Q14

3Q13

3Q14

3Q13

3Q14

150

160

170

180

190

200

210

3Q13

3Q14

Core 1-4 Family First

Mortgage

(2)

Credit Card

Commercial Real Estate

Automobile

Foreign

(1)

Commercial and Industrial

(1)

Wells Fargo 3Q14 Supplement

3Q13

3Q14

Corporate

Banking

Govt. &

Institutional

Banking

Commercial

Banking

CRE

All

Other

C&I

Commercial and Industrial diversified loan growth

Capital

Finance

Equipment

Finance

Commercial

Dealer

Services

Period-end balances.

$188.6

212.4

$150

$160

$170

$180

$190

$200

$210

$220

Asset

Backed

Finance

Wells Fargo 3Q14 Supplement

Deposits

Average

Average retail core deposits up 5% YoY on new

customer account growth and up 2%

annualized, LQ

Average Deposits and Rates

($ in billions)

Average deposit cost

Average Core Deposits

(1)

($ in billions)

Deposits up $101.5 billion, or 10%, YoY and $25.6

billion, or 9% annualized, LQ

Average deposit cost of 10 bps, stable LQ and down 2

bps YoY

Core deposits of $1.0 trillion up $71.9 billion, or 8%,

YoY and up $20.5 billion, or 8% annualized, LQ

Primary consumer checking customers

(2)

up a net

4.9% YoY

Primary small business and business banking checking

customers

(2)

up a net 5.6% YoY

746.4

805.6

819.1

279.2

295.9

308.0

1,025.6

1,101.5

1,127.1

3Q13

2Q14

3Q14

Interest-bearing deposits

Noninterest-bearing deposits

0.12%

0.10%

940.3

991.7

1,012.2

3Q13

2Q14

3Q14

Period-end

Total period-end deposits of $1.1 trillion up $88.8

billion, or 9%, YoY and up $12.0 billion, or 4%

annualized, LQ

(1)

Core deposits are noninterest-bearing deposits, interest-bearing checking, savings certificates, certain market rate and other savings, and certain

foreign deposits (Eurodollar sweep balances).

(2)

Data as of August 2014, comparisons with August 2013; customers who actively use their checking account with transactions such as debit card

purchases, online bill payments, and direct deposits.

Wells Fargo 3Q14 Supplement

Net interest income (TE)

(1)

up $147 million LQ on

growth in earning assets, PCI accretion and one

additional day in the quarter

Average earning assets up $50.7 billion, or

4%, LQ

Short-term investments/fed funds sold up

$23.4 billion

Mortgages and loans held for sale up $12.0

billion

(3)

Investment securities up $9.8 billion

Trading assets up $3.1 billion

Loans up $2.2 billion

NIM of 3.06% down 9 bps from 2Q14 on:

Customer-driven deposit growth = (4) bps

Liquidity-related activity = (4) bps

Balance sheet repricing, growth and mix = (1) bp

Variable income = 0 bps

Net interest income

Net Interest Income (TE)

(1)

($ in millions)

Net Interest Margin (NIM)

(2)

10,949

11,022

10,832

11,016

11,163

3.39%

3.27%

3.20%

3.15%

3.06%

3Q13

4Q13

1Q14

2Q14

3Q14

(1)

Tax-equivalent net interest income is based on the federal statutory rate of 35% for the periods presented. Net interest income was

$10,748 million, $10,803 million, $10,615 million, $10,791 million and $10,941 million for 3Q13, 4Q13, 1Q14, 2Q14 and 3Q14

respectively.

(2)

Please see page 1 for information on certain prior period revisions.

(3)

At the end of 2Q14, $9.7 billion in Education Finance-government guaranteed loans were transferred to loans held for sale.

Wells Fargo 3Q14 Supplement

Noninterest income

Deposit service charges up $28 million LQ

Trust and investment fees down $55 million, or 2%,

LQ as higher retail brokerage asset-based fees and

trust and investment management fees were more

than offset by lower investment banking

Card fees up $28 million on higher transaction

volumes reflecting new customer growth

Other fees up $2 million as higher CRE brokerage

commissions were offset by the impact of the exit of

the direct deposit advance product

Mortgage banking down $90 million

Insurance down $65 million reflecting the impact of

the 2Q14 sale of insurance offices and seasonally

lower crop insurance

Trading gains down $214 million on $163 million

lower deferred compensation investment income (P&L

neutral) (($53) million in 3Q14 vs. $110 million in

2Q14) and lower customer accommodation trading

Debt gains up $182 million

Equity gains up $263 million from venture capital

businesses

Other income down $95 million from 2Q14 gain on

sale of 40 insurance offices

($ in millions)

3Q14

2Q14

3Q13

Noninterest income

Service charges on deposit accounts

1,311

Trust and investment fees

Brokerage advisory, commissions

and other fees

2,327

Trust and investment management

856

Investment banking

371

(24)

(7)

Card fees

875

Other fees

1,090

(1)

Mortgage banking

1,633

(5)

Insurance

388

(14)

(6)

Net gains from trading activities

168

(56)

(58)

Net gains on debt securities

253

n.m.

Net gains from equity investments

712

Lease income

137

(14)

Life insurance investment income

143

(7)

Other

(92)

(78)

Total noninterest income

10,272

Gain on sale revenue up $266 million reflecting

higher gain on sale margin and higher repurchase

reserve releases

Net servicing income down $356 million reflecting

higher unreimbursed direct servicing costs and lower

net MSR hedge results

8,122

8,292

8,500

8,552

8,639

1,608

1,570

1,510

1,723

1,633

9,730

9,862

10,010

10,275

10,272

3Q13

4Q13

1Q14

2Q14

3Q14

Mortgage banking

Noninterest income excluding Mortgage banking

Wells Fargo 3Q14 Supplement

Noninterest expense and efficiency ratio

(1)

Noninterest expense up $54 million LQ

Personnel expense down $38 million

•

Salaries up $119 million reflecting one extra

day in the quarter and higher staffing levels

•

Commission and incentive compensation up

$82 million and included $45 million higher

revenue-based incentive compensation

•

Employee benefits expense down $239 million

and included $163 million lower deferred

compensation expense (($47) million vs.

$116 million in 2Q14)

Outside professional services

(2)

up $38 million

Other expense

(2)

up $36 million

•

Operating losses up $53 million on higher

litigation accruals

•

Foreclosed asset expense up $27 million

•

Insurance down $43 million on crop insurance

seasonality

Efficiency ratio improved LQ to 57.7%

Expect to operate within targeted efficiency ratio

range of 55%-59% in 4Q14

12,102

12,085

11,948

12,194

12,248

3Q13

4Q13

1Q14

2Q14

3Q14

59.1%

58.5%

57.9%

57.7%

Efficiency Ratio

(1)

Efficiency ratio defined as noninterest expense divided by total revenue (net interest income plus noninterest income). Noninterest expense and our efficiency ratio

may be affected by a variety of factors, including business and economic cyclicality, seasonality, changes in our business composition and operating environment,

growth in our business and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters.

(2)

The sum of Outside professional services expense and Other expense ties to Other noninterest expense in the Consolidated Statement of Income, pages 19 and 20

of the press release.

($ in millions)

3Q14

2Q14

3Q13

Noninterest expense

Salaries

3,914

Commission and incentive compensation

2,527

Employee benefits

931

(20)

(21)

Equipment

457

(3)

Net occupancy

731

Core deposit and other intangibles

342

(2)

(9)

FDIC and other deposit assessments

229

684

Other

(2)

2,433

Total noninterest expense

12,248

Outside professional services

(2)

Wells Fargo 3Q14 Supplement

Community Banking

Net income of $3.5 billion, up 4% YoY and 1% LQ

reflecting growth in both net interest income and

noninterest income

Regional Banking

(1)

Primary consumer checking customers

(2)

up a

net 4.9% YoY

Primary business checking customers

(2)

up a net

5.6% YoY

Retail bank cross-sell of 6.15 products per

household; strong net household growth

Consumer Lending

Credit card penetration

(1) (3)

rose to 39.7%, up

from 39.0% in 2Q14 and 36.0% in 3Q13

Consumer auto originations of $7.6 billion, down

3% LQ and up 9% YoY

Mortgage originations of $48 billion, up 2% LQ

70% of originations were purchases, up from 59% in

3Q13

1.82% gain on sale margin

($ in millions)

3Q14

2Q14

3Q13

Net interest income

7,472

Noninterest income

5,356

Provision for credit losses

465

Noninterest expense

7,051

Income tax expense

1,609

(12)

Segment net income

3,470

($ in billions)

Avg loans, net

498.6

(1)

Avg core deposits

646.9

3Q14

2Q14

3Q13

Regional Banking

Primary consumer checking customers

(1)(2)

4.9

4.6

3.9

Primary business checking customers

(1)(2)

5.6

5.2

3.6

Retail Bank household cross-sell

(1)

6.15

6.17

6.15

($ in billions)

3Q14

2Q14

3Q13

Consumer Lending

Credit card payment volumes (POS)

15.9

Credit card penetration

(1)(3)

39.7

bps

367

Home Lending

Applications

(11)

(26)

Application pipeline

(17)

(29)

Originations

(40)

Gain on sale margin

1.82

bps

(1)

Metrics reported on a one-month lag from reported quarter-end; for example 3Q14 data as of August 2014 compared with August 2013.

(2)

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

(3)

Household penetration as of August 2014 and defined as the percentage of retail bank households that have a credit card with Wells Fargo.

Wells Fargo 3Q14 Supplement

Wholesale Banking

Net income of $1.9 billion, down 3% YoY and

2% LQ

Net interest income up 2% LQ reflecting average

loan growth of 3%

Noninterest income down 3% LQ on lower

investment banking and sales and trading, as well

as lower insurance (2Q14 sale of offices and

seasonality)

Noninterest expense up 1% LQ on higher

personnel expense

Cross-sell

Cross-sell of 7.2 products per relationship

(2)

from 7.0 in 3Q13

Treasury Management

Commercial card spend volume of $5.7 billion up

2% LQ and 15% YoY

Wholesale treasury management revenue up 1%

LQ and 9% YoY reflecting new product sales and

repricing

Investment Banking

U.S. investment banking market share

of 4.5%

(3)

Asset Management

Total AUM up $9 billion YoY, including an $11

billion increase in equity AUM reflecting higher

market valuations and net equity inflows

Equity AUM as a % of total AUM = 29%, up from

28% in 3Q13

(1) Please see page 1 for information on certain prior period revisions.

(2) Cross-sell reported on a one-quarter lag.

(3) Source: Dealogic U.S. investment banking fee market share.

($ in millions)

3Q14

2Q14

3Q13

Net interest income

3,007

(2)

Noninterest income

2,895

(3)

Reversal of provision for

credit losses

(85)

(41)

Noninterest expense

3,250

Income tax expense

824

(2)

(13)

Segment net income

1,920

(2)

(3)

($ in billions)

Avg loans, net

(1)

316.5

Avg core deposits

278.4

($ in billions)

3Q14

2Q14

3Q13

Key Metrics:

Cross-sell

(2)

7.2

Commercial card spend

volume

5.7

U.S. investment banking

market share %

(3)

4.5

bps

(120)

Total AUM

483.9

(1)

Advantage Funds AUM

233.7

(1)

Wells Fargo 3Q14 Supplement

Wealth, Brokerage and Retirement

Net income up 22% YoY and 1% LQ

Net interest income up 2% LQ; average loans

up 3%

Noninterest income flat LQ as higher asset-based

fees were partially offset by lower deferred

compensation gains and lower brokerage

transaction revenue

Brokerage managed account asset fees priced

at beginning of quarter, reflecting 6/30/2014

market valuations

Noninterest expense flat LQ as increased broker

commissions and non-personnel expenses were

partially offset by lower deferred compensation

plan expense

Retail Brokerage

Managed account assets of $409 billion, flat LQ;

up 17% YoY driven by market performance and

net flows

Wealth Management

Wealth Management client assets

down 1% LQ

and up 7% YoY

Retirement

IRA assets down 1% LQ and up 8% YoY

Institutional Retirement plan assets down 2% LQ

and up 6% YoY

(1) Includes deposits.

(2) Data as of August 2014.

($ in millions)

3Q14

2Q14

3Q13

Net interest income

790

Noninterest income

2,763

Reversal of provision for

credit losses

(25)

(34)

Noninterest expense

2,690

Income tax expense

338

Segment net income

550

($ in billions)

Avg loans, net

52.6

Avg core deposits

153.6

($ in billions, except where noted)

3Q14

2Q14

3Q13

Key Metrics:

WBR Client Assets

(1)

($ in trillions)

1.6

(1)

Cross-sell

(2)

10.44

Retail Brokerage

Financial Advisors

15,163

(1)

Managed account assets

409

Client assets

(1)

($ in trillions)

1.4

(1)

Wealth Management

Client assets

(1)

219

(1)

Retirement

IRA Assets

354

(1)

Institutional Retirement

Plan Assets

314

(2)

Wells Fargo 3Q14 Supplement

0.1

0.4

0.3

0.2

0.4

1.0

0.8

0.7

0.48%

0.47%

0.41%

0.35%

0.32%

3Q13

4Q13

1Q14

2Q14

3Q14

Provision Expense

Net Charge-offs

Net charge-off rate

16.9

15.7

14.7

14.0

13.4

3.8

3.9

4.1

4.3

20.7

19.6

18.8

18.1

17.7

3Q13

4Q13

1Q14

2Q14

3Q14

Nonaccrual loans

Foreclosed assets

Credit quality

Provision expense of $368 million, up $151 million

from 2Q14

Net charge-offs of $668 million, down $49 million,

or 7%, LQ

0.32% net charge-off rate

Commercial net recoveries of 2 bps, improved

5 bps LQ

Consumer losses of 0.62%, stable LQ

NPAs declined $406 million LQ

$607 million decline in nonaccrual loans

$201 million increase in foreclosed assets due to

growth in government insured/guaranteed

properties primarily in judicial states

Reserve release

(3)

of $300 million, down $200

million LQ

Continue to expect future reserve releases absent

significant deterioration in the economy, but

expect a lower level of future releases as the rate

of improvement in credit slows and the loan

portfolio continues to grow

Allowance for credit losses = $13.5 billion

Allowance covered 5.1x annualized 3Q14

net charge-offs

(1) Please see page 1 for information on certain prior period revisions.

(2) 30-89 days and 90 days or more past due and still accruing, and nonperforming loans, include held for sale loans reported on Balance Sheet.

(3) Provision expense minus net charge-offs.

Provision Expense and Net Charge-offs

($ in billions)

Nonperforming Assets

(2)

($ in billions)

(1)

Wells Fargo 3Q14 Supplement

Capital remained strong

Common Equity Tier 1 ratio under Basel III

(General Approach) of 11.16%, largely due to

balance sheet growth

Common Equity Tier 1 ratio under Basel III

(Advanced Approach, fully phased-in) of

10.46% at 9/30/14

(1)

Advanced approach is more risk-sensitive

than the general approach, and is our

constraining factor

Ratio improvement reflects strong capital

generation, better credit quality and data

refinements

Capital position

See pages 30-31 for additional information regarding common equity ratios.

3Q14 capital ratios are preliminary estimates.

Common Equity Tier 1 Ratio

Under Basel I

Basel III

(General Approach)

(1)

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.

10.60%

10.82%

11.36%

11.31%

11.16%

3Q13

4Q13

1Q14

2Q14

3Q14

Wells Fargo 3Q14 Supplement

Our

strong

capital

levels

have

allowed

return

capital

shareholders

Returned $3.6 billion to shareholders in 3Q14

Capital return

(1)

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

income applicable to common stock.

(2)

Dividends declared per common share as a percentage of diluted earnings per common share.

34%

26%

66%

2013

1Q14

2Q14

3Q14

Net Payout Ratio

(1)

(9)

(16)

(35)

(40)

(30)

(20)

(10)

2013

1Q14

2Q14

3Q14

Net Change in Ending Common

Shares Outstanding

(shares in millions)

Period-end common shares outstanding down 34.9 million LQ

Purchased 48.7 million common shares

Issued 13.8 million common shares

Entered

into

$1.0

billion

forward

repurchase

transaction

which

expected

settle

4Q14

for

estimated 19.8 million shares

29%

28%

34%

2013

1Q14

2Q14

3Q14

Dividend Payout Ratio

(2)

Wells Fargo 3Q14 Supplement

Summary

3Q14

Diluted EPS of $1.02, up 3%

ROA = 1.40%

ROE = 13.10%

Loans

(1)

up $29.7 billion, or 4%, with core loans up $50.8 billion, or 7%, on broad-based growth

Deposits up $88.7 billion, or 9%

Loan portfolio is balanced, diversified and high quality

•

Credit quality improved with net charge-offs of 0.32% (annualized), down 16 bps

Strengthened capital levels while returning more capital to shareholders

•

Returned $3.6 billion to shareholders through common stock dividends and net share repurchases including $1.0

billion forward repurchase transaction expected to settle in 4Q14

•

Net payout ratio

(2)

of 66%

Strong liquidity; significant amount of cash available to be deployed into high quality liquid assets

Strong earnings of $5.7 billion, up $151 million, or 3% from 3Q13

PTPP up 7% reflecting diversified business model

Solid returns

Strong loan and deposit growth

Balance sheet has never been stronger

Well positioned for the future

All comparisons are 3Q14 compared with 3Q13.

(1) Please see page 1 for information on certain prior period revisions.

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

income applicable to common stock.

Appendix

Wells Fargo 3Q14 Supplement

(1) Net of purchase accounting adjustments.

(2) At the end of 2Q14, $9.7 billion in Education Finance-government guaranteed loans were transferred to loans held for sale.

-$106.7

Non-strategic/liquidating loan portfolio

-$3.2

-$127.7

-$2.9

-$12.7

-$2.2

($ in billions)

3Q14

2Q14

1Q14

4Q13

3Q13

4Q08

Pick-a-Pay mortgage

(1)

46.4

48.0

49.5

51.0

52.8

95.3

Liquidating home equity

3.1

3.3

3.5

3.7

3.9

10.3

Legacy WFF indirect auto

0.1

0.2

0.3

18.2

Legacy WFF debt consolidation

11.8

12.2

12.6

12.9

13.3

25.3

Education Finance - gov't guaranteed

(2)

10.2

10.7

11.1

20.5

Legacy WB C&I, CRE and foreign PCI loans

(1)

1.5

1.7

2.0

2.3

18.7

Legacy WB other PCI loans

(1)

0.2

0.4

2.5

Total

63.1

65.3

78.0

80.9

84.1

190.8

Wells Fargo 3Q14 Supplement

Purchased credit-impaired (PCI) portfolios

Nonaccretable difference

Accretable yield

•

3Q14 accretable yield percentage of 6.15% increased from 4.98% LQ on the 2Q14 reclassification from

nonaccretable difference to accretable yield

Commercial accretable yield balance of $345 million; weighted average life of portfolio is 1.9 years

Pick-a-Pay accretable yield balance of $17.3 billion; weighted average life of 11.9 years

$3.1 billion remains to absorb losses on PCI loans

$446 million accreted into interest income in 3Q14 vs. $362 million in 2Q14

$18.0 billion expected to accrete to income over the remaining life of the underlying loans

(1)

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.

(2)

Reflects releases of $1.9 billion for loan resolutions and $8.4 billion from the reclassification of nonaccretable difference to the accretable yield, which will

result in increasing income over the remaining life of the loan or pool of loans.

($ in billions)

Adjusted

unpaid

principal

balance

(1)

December 31, 2008

29.2

62.5

6.5

98.2

September 30,2014

2.2

26.9

0.7

29.8

Nonaccretable

difference

rollforward

12/31/08 Nonaccretable difference

10.4

26.5

4.0

40.9

Addition of nonaccretable difference due to acquisitions

0.2

Losses from loan resolutions and write-downs

(6.9)

(17.9)

(2.9)

(27.7)

Release of nonaccretable difference since merger

(3.6)

(5.8)

(0.9)

(10.3)

(2)

9/30/14 Remaining nonaccretable difference

0.1

2.8

0.2

3.1

Life-to-date

net

performance

Additional provision since 2008 merger

(1.6)

(0.1)

(1.7)

Release of nonaccretable difference since 2008 merger

3.6

5.8

0.9

10.3

(2)

Net performance

2.0

5.8

0.8

8.6

Commercial

Pick-a-Pay

Other

consumer

Total

Wells Fargo 3Q14 Supplement

Residential mortgage trends

Mortgage production

70% of originations were purchases, compared with 74% in 2Q14

Mortgage repurchase liability

Total provision for repurchases losses: $81 million net reduction in 3Q14; primarily reflecting release of $93

million for change in estimate vs. $26 million net reduction in 2Q14, primarily reflecting release of $38 million

for change in estimate

Outstanding repurchase demands (dollars) down 25% LQ

Servicing portfolio

(1) Net gains on mortgage loan origination/or sales activities less repurchase reserve build/release divided by total originations.

Residential mortgage production trends

($ in billions)

3Q14

2Q14

1Q14

4Q13

3Q13

Applications

Pipeline

Originations

Refinance %

Purchase %

Gain on Sale

(1)

1.82

1.41

1.61

1.77

1.42

$48 billion of mortgage originations, up 2% LQ

$669 million balance

Residential servicing portfolio of $1.8 trillion

Wells Fargo servicing portfolio’s total delinquency and foreclosure ratio for 3Q14 was 5.80%, up 16 bps LQ and

down 53 bps YoY

Wells Fargo 3Q14 Supplement

Real estate 1-4 family first mortgage portfolio

First lien mortgage loans up 1% as growth in core

first lien mortgage was partially offset by continued

run-off in the liquidating portfolio

Core first lien up $5.2 billion, or 3%, reflecting

nonconforming mortgage originations

Nonconforming mortgages increased $8.5 billion

to $104.0 billion

(3)

First lien home equity lines and loans of $17.3

billion, down $258 million

Strong core first lien credit performance

Nonaccrual loans down $63 million LQ

Net charge-offs down $7 million LQ to 7 bps

Pick-a-Pay non-PCI portfolio

Loans down 4% LQ driven by loans paid-in-full

87% of portfolio current

79% of portfolio with LTV

(4)

80%, up from 72%

in 2Q14 as a result of improving home values

Nonaccrual loans decreased $160 million,

or 5%, LQ

Net charge-offs of $12 million down $7 million LQ

on improved portfolio performance and lower

severities

($ in millions)

3Q14

2Q14

Total real estate 1-4 family first mortgage

263,326

260,104

Less consumer non-strategic/liquidating portfolios:

Pick-a-Pay

non-PCI

first

lien

mortgage

(1)

24,332

25,301

PCI first lien mortgage

(1)

22,271

22,888

Debt consolidation first mortgage portfolio

11,558

11,930

Liquidating first lien home equity lines and loans

134

144

Core first lien mortgage

205,031

199,841

Nonaccrual loans

3,819

3,864

as % of loans

1.86 %

1.93

Net charge-offs

as % of loans

0.07 %

0.09

Non-PCI loans

Nonaccrual loans

2,953

3,113

as % of loans

12.13 %

12.30

Net charge-offs

as % of average loans

0.19 %

0.30

90+ days past due as % of loans

8.17

8.29

PCI loans carrying value

(1)

22,057

22,664

Nonaccrual loans

2,032

2,049

Net charge-offs

as % of loans

2.22 %

2.49

Legacy

WFF

debt

consolidation

first

mortgage

and

liquidating

first

lien

lines

and

loans

(2)

Pick-a-Pay first lien mortgage

Core first lien mortgage

(1)

The carrying value, which does not reflect the allowance for loan losses, includes purchase accounting adjustments, which, for PCI loans, are 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.

(2)

Ratios on Legacy WFF debt consolidation first mortgage loan portfolio only.

(3)

Nonconforming mortgages originated post February 2009.

(4)

Current LTV calculated as net carrying value divided by collateral value.

Wells Fargo 3Q14 Supplement

Real estate 1-4 family junior lien mortgage portfolio

Outstandings

down

High quality new originations with weighted

average CLTV of 66%, 775 FICO and 33% total

debt service ratio

Net charge-offs down $20 million, or 12 bps, LQ

2+ delinquencies increased $28 million, or 11 bps

Delinquency rate for loans with a CLTV >100%

decreased 4 bps

49% in junior lien position behind WFC owned or

serviced

lien

Current

lien,

Current

junior

lien

96.8%

Current

lien,

Delinquent

junior

lien

1.0%

Delinquent

lien,

Current

junior

lien

0.9%

Delinquent

lien,

Delinquent

junior

lien

1.3%

51%

junior

lien

position

behind

third

party

lien

(1)

CLTV is calculated based on outstanding balance plus unused lines of credit divided by estimated home value. Estimated home values are determined

predominantly based on automated valuation models updated through August 2014.

(2)

Unsecured balances, representing the percentage of outstanding balances above the most recent home value.

($ in millions)

3Q14

2Q14

Outstandings

60,844

62,455

Net charge-offs

140

160

as % of avg loans

0.90

1.02

2+ payments past due

1,517

1,489

as % of loans

2.50

2.39

% CLTV > 100%

(1)

2+ payments past due

3.08

2.79

% Unsecured balances

(2)

Wells Fargo 3Q14 Supplement

Consumer credit card portfolio

Credit card outstandings up 4% LQ and 11% YoY

reflecting continued new account growth

Credit card household penetration

(2)

of 39.7%,

up 70 bps LQ and 367 bps YoY

Purchase dollar volume up 3% LQ and 16% YoY

reflecting growth in the account base

POS transactions up 4% LQ and 16% YoY

Net charge-offs down $10 million, or 33 bps, LQ

(1)

Consumer credit card new account openings, excludes private label.

(2)

Household penetration as of August 2014 and defined as the percentage of retail banking deposit households that have a credit card with Wells Fargo.

($ in millions)

3Q14

2Q14

Credit card outstandings

28,270

27,215

Net charge-offs

201

211

as % of avg loans

2.87

3.20

Key Metrics:

Purchase volume

15,858

15,388

POS transactions (millions)

224

215

New accounts

(1)

546,640

601,631

Penetration

(2)

39.7

39.0

Wells Fargo 3Q14 Supplement

Auto portfolios

(1)

Consumer Portfolio

Auto outstandings of $55.2 billion up 2% LQ and

11% YoY

3Q14 originations of $7.6 billion down 3% LQ

on seasonality and up 9% YoY

Nonaccrual loans declined $7 million LQ and $45

million YoY

Net charge-offs were up $66 million LQ reflecting

seasonality, and up $34 million YoY on portfolio

growth

September Manheim index of 121.4 down 2%

LQ and 1% YoY

30+ days past due increased $147 million, or 23

bps, LQ reflecting seasonality and increased

$286 million, or 35 bps, YoY on portfolio mix and

aging

Commercial Portfolio

Loans of $8.5 billion down 3% LQ and up

13% YoY

(1)

The consumer auto portfolio includes the liquidating legacy Wells Fargo Financial indirect portfolio of $54 million.

($ in millions)

3Q14

2Q14

Auto outstandings

52,245

51,345

Nonaccrual loans

136

142

as % of loans

0.26

0.28

Net charge-offs

110

as % of avg loans

0.84

0.36

30+ days past due

1,090

944

as % of loans

2.09

1.84

Auto outstandings

2,997

2,750

Nonaccrual loans

as % of loans

0.23

0.29

Net charge-offs

as % of avg loans

0.28

0.05

30+ days past due

as % of loans

0.37

0.36

Commercial

Auto outstandings

8,470

8,705

Nonaccrual loans

as % of loans

0.21

Net charge-offs

as % of avg loans

n.m.

Indirect Consumer

Direct Consumer

Wells Fargo 3Q14 Supplement

Student lending portfolio

Private Portfolio

$11.9 billion private loan outstandings up 2%

LQ and 5% YoY

Average FICO of 753 and 80% of the total

outstandings have been co-signed

Net charge-offs down $3 million LQ

30+ days past due increased $35 million LQ

on seasonality

Government Portfolio

Transferred to held for sale at the end of 2Q14

($ in millions)

3Q14

2Q14

Private Portfolio

Private outstandings

11,916

11,633

Net charge-offs

as % of avg loans

1.03

1.14

30 days past due

230

195

as % of loans

1.93

1.68

Wells Fargo 3Q14 Supplement

Common Equity Tier 1 under Basel III (General Approach)

Wells Fargo & Company

FIVE QUARTER RISK-BASED CAPITAL COMPONENTS

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept 30,

2014

2013

183.0

181.5

176.5

171.0

168.8

(0.5)

(0.6)

(0.8)

(0.9)

(1.6)

182.5

180.9

175.7

170.1

167.2

(18.0)

(17.2)

(15.2)

(14.3)

(2.5)

(3.2)

(2.2)

(1.4)

(2.2)

(25.5)

(25.6)

(29.6)

(29.8)

(0.1)

(0.4)

(0.6)

(A)

136.5

134.8

132.7

123.5

120.3

18.0

17.2

15.2

14.3

2.0

2.9

(0.4)

(0.3)

154.1

151.7

147.6

140.7

137.5

23.7

24.0

21.7

20.5

18.9

13.5

13.8

14.1

14.3

(0.2)

0.2

0.7

0.6

37.0

37.8

36.0

35.5

33.8

(B)

191.1

189.5

183.6

176.2

171.3

1,171.7

1,145.7

1,120.3

51.3

46.8

48.1

1,105.2

1,099.2

36.3

35.9

(C)

1,223.0

1,192.5

1,168.4

1,141.5

1,135.1

(A)/(C)

11.16 %

11.31

11.36

10.82

10.60

(B)/(C)

15.63

15.89

15.71

15.43

15.09

(1)

(2)

(3)

(4)

(5)

(6)

(in billions)

Under Basel III

(General Approach) (1)

Under Basel I

Other

Total equity

Noncontrolling interests

Total Wells Fargo stockholders' equity

Adjustments:

Preferred stock

Cumulative other comprehensive income (2)

Goodwill and other intangible assets (2)(3)

Investment in certain subsidiaries and other

Common Equity Tier 1 (1)(4)

Preferred stock

Qualifying hybrid securities and noncontrolling interests

Market risk

Total Tier 1 capital

Long-term debt and other instruments qualifying as Tier 2

Qualifying allowance for credit losses

Other

Total Tier 2 capital

Total qualifying capital

Basel III Risk-Weighted Assets (RWAs) (5)(6):

Credit risk

Market risk

Basel I RWAs (5)(6):

Credit risk

Total Basel III / Basel I RWAs

Capital Ratios (6):

Common Equity Tier 1 to total RWAs

Total capital to total RWAs

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.

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.

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

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.

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

the

risk

weight

associated

with

that

category.

The

resulting

weighted

values

from

each

the

risk

WELLS FARGO & COMPANY/MN - FORM 8-K - EX-99.2 - October 14, 2014

Attached files